hartalega holdings bhd - insage 5th annual general... · precise simulation of unlimited ......
TRANSCRIPT
YOUR LOGO
Hartalega Holdings Bhd
5th Annual General Meeting
YOUR LOGOPage 2
Content
Key strengths
High Tech Manufacturing
Nitrile Product Positioning
Financial Performance
Future Growth Plans
3
4
5
6
Corporate Resposibilty7
Awards1
2
YOUR LOGOPage 3
Forbes Asia
KPMG
Asia Money
“200 Best Under A Billion”
Rated No.1 in Industrial Markets Sector and
Overall Ranked 9th Malaysian Public Listed Company
Best Managed Small Cap Company in Malaysia
Hartalega’s Background
Awards
YOUR LOGOPage 4
Key Strengths
Advanced proprietary
equipment
Numerous patent
pending engineering
designs
Current capacity of 9.6
billion pieces, expanding
to 13.5 billion by FY
2015
High profit margin
Strong financial
performance
Largest Nitrile gloves
manufacturer in world
Reputable
quality producer
YOUR LOGOPage 5
Innovation
1st successful double former production line in the world
Patented
Highest production capacity in the world – 35,000 pcs/hr
Sophisticated process controls
Touch screen human machine interface
Consistent quality
Inventions
High Capacity Production Lines
YOUR LOGOPage 6
1st automated mechanical stripping system in the industry able to remove nitrile gloves of hand moulds
Proprietary technology in use since 1995
Performance is still unrivalled until today
Removing nitrile gloves off the moulds at 35,000pcs/hr
At that rate, it is humanly impossible
Glove Removal System
Innovation
Inventions
Photo Removed to Protect
Proprietary Technology
YOUR LOGOPage 7
Dipping Simulator
Robotic technology
Fully automatic
Precise simulation of unlimited
parameters
Accurate repeatability
Reduced product time to market
Innovation
Inventions
YOUR LOGOPage 8
Innovation and productivity
focus has resulted in
Hartalega having the highest
operating profit per
employee in the industry
Innovation
Highest Operating Profit Per Staff
(DBS Vickers, 2011)
Strong Innovation &
Productivity
YOUR LOGOPage 9
Key Strengths
Advanced proprietary
equipment
Numerous patent
pending engineering
designs
Current capacity of 9.6
billion pieces, expanding
to 13.5 billion by FY
2015
High profit margin
Strong financial
performance
Largest Nitrile gloves
manufacturer in world
Reputable
quality producer
YOUR LOGO
Nitrile Gloves – Strong Market Position
Page 10
Strecthy Nitrile – our
speciality
Most elastic nitrile glove in the world
Competitively priced
No protein allergy
YOUR LOGO
Sucessfully re-modelled company to be a major
nitrile glove producer, 90% of sales is nitrile gloves
Nitrile sales (pcs) increased by 29 times in 6 years
Largest OEM nitrile gloves producer in the world
with 13% nitrile gloves market share
Created switching momentum in the market from
natural rubber to nitrile gloves
Nitrile Gloves – Strong Market Position
85113
169209
353
425
509
FY
'05
FY
'06
FY
'07
FY
'08
FY
'09
FY
'10
FY
'11
RM
'00
0,0
00
USA & Canada Sales
206504
963
1,859
3,080
5,986
4,366
FY
'05
FY
'06
FY
'07
FY
'08
FY
'09
FY
'10
FY
'11
Glo
ves -
mil
lio
n p
cs
Nitirile Sales million pcs
1016 20 25
41
66
121F
Y'0
5
FY
'06
FY
'07
FY
'08
FY
'09
FY
'10
FY
'11
RM
'00
0,0
00
Europe
YOUR LOGOPage 12
Key Strengths
Advanced proprietary
equipment
Numerous patent
pending engineering
designs
Current capacity of 9.6
billion pieces, expanding
to 13.5 billion by FY
2015
High profit margin
Strong financial
performance
Largest Nitrile gloves
manufacturer in world
Reputable
quality producer
YOUR LOGO
Financial Performance
Revenue and Profit
110 160240 258
443
572
735
0
200
400
600
800
FY2005 FY2006 FY2007 FY2008 FY2009 FY2011 FY2011
Revenue (RM mil)
13 1937 40
85
143
190
0
50
100
150
200
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2010
Profit After Tax (RM mil)
6 years CAGR for revenue of 37%
6 years CAGR for profit afer tax of 56%
Strong Growth
* FYE2008 – Pre and post acquisition amounts without negative goodwill.
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Financial Performance
Revenue and Profit
3235
39
52
0
10
20
30
40
50
60
FY2008 FY2009 FY2010 FY2011
Earnings Per Share (sen)
20
33
4039
0
5
10
15
20
25
30
35
40
45
FY2008 FY2009 FY2010 FY2011
Return on Equity (%)
YOUR LOGO
Financial Performance
Page 15
The most efficient glove maker in the world through engineering innovation
Excellent track record of superior operating margins relative to peers
Highest Operating Margin
Among Peers
(DBS Vickers, 2011)
Most Efficient Glove Maker
YOUR LOGO
Dividend
Page 16
Payment Date Sen
Ist Interim Dec-10 4
2nd Interim Mar-11 5
3rd Interim Jun-11 6
Final Sep-11 6
21
Dividend Payment for FYE 2011
40% payout from earnings
4 payouts in a year
If shares were purchase in Nov-2010 to obtain the 4 payouts, the dividend yield would be, 0.21/5.48 = 3.8%
Average closing price for Nov-2010 = RM 5.48
Strong Dividend
YOUR LOGO
Dividend
Page 17
High Dividend Yield & Payout Ratio
One of the highest dividend
yield
Currently, highest payout ratio
together with Top Glove at 40%
Going forward we are setting a
dividend policy which aim to
distribute at least 45% of our
annual net profit as dividend
Projected dividend yield of
4.8% at today’s share price(DBS Vickers, 2011)
YOUR LOGOPage 18
Financial Performance
13
26
55
18
33
47
22
37
49
31
46
52
41
2009 2010 2011 2012
RM
(m
il)
Q1 Q2 Q3 Q4
Growth Rate
Growth of 32% over the previous year’s
corresponding quarter (FY2011, q1)
Quarterly profit
YOUR LOGO
Hartalega Holdings vs. FTSE BM KLCI Index (%)
Page 19
Since IPO
+332.7%
YOUR LOGOPage 20
Key Strengths
Advanced proprietary
equipment
Numerous patent
pending engineering
designs
Current capacity of 9.6
billion pieces, expanding
to 13.5 billion by FY
2015
High profit margin
Strong financial
performance
Largest Nitrile gloves
manufacturer in world
Reputable
quality producer
YOUR LOGOPage 21
Industry OutlookGrowing Market
1,9422,179
2,539
3,0752,923
3,724
2005 2006 2007 2008 2009 2010
World's Import of Examination Gloves (US$ mil)
Salient Points
World demand for rubber gloves grows at
a rate of about 14% per annum
Malaysia is the largest supplier of rubber
gloves for the world, commanding about
61% of the global market
World demand will remain resilient due to
emergence of diseases such
SARS, H1N1
Increase affluence and health awareness
of the world population also drives
demand
YOUR LOGOPage 22
Future Plans
Targetted Capacity
3,329
5,463
6,443
8,304
9,740
10,822
13,146
13,438
FY
E 2
00
8
FY
E 2
00
9
FY
E 2
01
0
FY
E 2
01
1
FY
E 2
01
2
FY
E 2
01
3
FY
E 2
01
4
FY
E 2
01
5
Glo
ves '000 p
cs
Capacity Expansion
Market driven capacity expansion –
progressive installation of 2 new
production lines at plant 5
10 new production lines in plant 6
(waiting for Majlis Daerah approval)
Decommision 10 lines at plant 1 to
replace with 6 high capacity lines for
emerging markets
Focus on nitrile and powder free
gloves
Sustainable double digit growth for
the next 4 years
YOUR LOGOPage 23
Corporate Resposibility
Environmental Preservation
YOUR LOGOPage 24
Clean Energy – Biomass Energy Plant
Technology imported from Belgium
Renewable energy
In operation since 2002
Fully automatic plant
Computerised monitoring
system
Good combustion and
emission controls
Due to its sophisticated
control system, cost to build
is 4 times that of other
systems
Total cost RM15 mil
YOUR LOGOPage 25
Environmental Preservation – Effluent Water Treatment
Technology Imported from Austria
Pioneer technology
Based on the Dissolved Air Flotation (DAF)
technology
Pioneered by Dr. Milos Krofta
Consistent performance
Meet standards enforced by Jabatan Alam Sekitar
Investment in effluent water treatment plants totals
to about RM 8 mil
YOUR LOGOPage 26
Expenses
Substantial commitment towards environmental controls
3140
29
Water Treatment
Scrubber Treatment
Sludge Disposal
DescriptionCost per
annum (RM)
Effluent water treatment 2,111,000
Scrubber tower treatment 1,515,000
Sludge disposal to Kualiti Alam 1,630,000
Total 5,256,000
YOUR LOGOPage 27
Corporate Resposibility
Community Care – Social Contributions
YOUR LOGOPage 28
Community Care – Social Contributions
As a profitable organisation, we feel compelled
to give back to the community
Contributions are given in the form of
gifts, construction of community
facilities, donations, relieve
aids, sponsorships, education assistance, sports
carnivals, etc.
Contribution Objectives
YOUR LOGOPage 29
Corporate Responsibility
Community
Donation to flood
relief centre
Gifts for orphanages
during festive seasons
Support to HIV victims at
Ozanam Shelter Homes
Support to fire victims at
Kg Rantau Panjang
YOUR LOGO
World Class Manufacturer
First Class Gloves
YOUR LOGO
Do You Have
Any Questions?