top glove corporation bhd corporate presentation june2018 · this document and any related...
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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
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
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.
Top Glove Corporation Bhd (“Top Glove”) at a glance
57.5 billion gloves pa
39 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
RM14.5bn
(USD 3.6bn)
Global leader in
medical and
surgical gloves
Source: Bloomberg
Notes:
(1) Include Aspion Sdn Bhd (“Aspion”)
(2) Market capitalisation as at 21 June 2018. Translated at FX rate of USD1:RM4.0120 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)
4
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”)
5
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
6
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
12.0
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
21 June 2018:
RM 11.36
27 March 2001:
RM 0.13(1)
(IPO price adjustedfor
bonus issue andshare
split since IPO)
Share
Price
(RM
) Total Shareholder Return:
9190%
99
Track record of delivering shareholder value
7
Total dividend payment of RM1,161 million since listing in year 2001
Number of shares held(1) Market value Accumulated
dividends
Investment cost
(as at 27 March 2001)
Capital
appreciation(2)
Total shareholder
return(as at 21 June 2018)
# RM RM RM RM %
20,384 231,562 19,264 (2,700) 248,126 9,190%
With initial investment of 1,000 shares made based on IPO price of RM2.70 on 27 March 2001, the return would be:
Divid
ends
(RM
mn)
Source: Bloomberg as of 21 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
103
127135
173
220
2005 2008 2011 2014 2018E
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 05-18:
6.0%
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: Malaysia Rubber Gloves Manufacturer Association, International Trade Centre and Company & www.worldmeters.info
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
9
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 factory
1 Condom Factory
Producing:
Latex & nitrile examination
gloves
Surgical, household,
cleanroom, CPE/TPEgloves
Former & Chemical
Manufacturing
Dental Dam
Condom
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
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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,
Latex
75 lines 4.8 bn
Total 31 glove factories 618 lines 57.5 bn
Expansion in progress :
Glove
F31 New factory (July 2018) Nitrile 30 lines 3.0 bn
F32 New factory (early 2019) Nitrile 44 lines 4.4 bn
Total expansion 74 lines 7.4 bn
Total by early 2019: 33 glovefactories 692 lines 64.9 bn
Expansion in progress:
Condom
F35CD New factory (June
2018)
Latex 2 lines 0.2 bn
Latex Processing
Top Glove: 2 latex plants Sourcing majority of the latex requirements
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 4% of revenue
Europe
30%
North America
25%
Latin America
11%
Asia ex-Japan 15%
Middle-East 8%
Japan 8%
3%
9M18 Sales VolumeBreakdown
(including Aspion)
Africa
Brazil
11
442
525484
395289
17.6% 18.2%
14.2% 11.5%13.2%
280361 329
234335
12.5%
9.6% 9.4%11.2%
334
434381
178
299
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 = 36.7%
2015
USD114mn
2016
USD136mn
2017
USD125mn
9M17
USD75mn
9M18
USD102mn
RMmn
11.1%
USD Equivalent(1)
2015
USD72mn
2016
USD93mn
2017
USD85mn
9M17
USD61mn
9M18
USD87mn
CAGR of 6.8%
Growth = 68.0%
2015
USD86mn
2016
USD112mn
2017
USD99mn
9M17
USD17mn
9M18
USD40mn
RMmn
YoY volume growth 8% 11% 7% 25%
CAGR of 16.5%
3,409 Growth =
2,5112,889 19.6%
2,9972,507
USD Equivalent(1)
2015USD650mn
2016USD747mn
2017USD882mn
9M17 9M18
USD649mn USD776mn
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 =
43.2%
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
0.18x
0.91x
31 Aug 15 31 Aug 16 31 Aug 17 31 May 17 31 May 18
146
636399 376 345
224 240 213 191
2069
670 479207 227 248
31 Aug 15 31 Aug 16
Cash Debt
31 Aug 17 31 May 17 31 May 18
Short-term investment securities
13
(180) (304) (71) (95) 1630
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
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
Aspion – A highly synergistic and transformational acquisitionHighly 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
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
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
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
18
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
4
5
3
2
1
19
Thank You
20
Appendix
21
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
22
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
23
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!
24