Top Glove Corporation Bhd Corporate presentation docx

The World’s Largest Rubber Glove Manufacturer... Listed in 2001 2QFY13 product mix by volume ¢ Comprehensive product range with 13 major types of rubber Powder free late Nitrile §o»br

The World’s Largest Rubber Glove Manufacturer

At a glance @

¢ Commenced operations in 1991

Listed in 2001 2QFY13 product mix by volume

¢ Comprehensive product range

with 13 major types of rubber Powder free late

Nitrile

(§o»br production foKhealth care Powdered 17%

sector and 20% for non-hea latex VT

¢ Produce 76% natural rubber glove

2%

¢ Target balance capacity mix of

natural rubber and synthetic

rubber glove

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¢ USA and EU27 with only 11% of world population consumed 68% of

global glove usage

¢ Other regions with 89% of world population consumed only 32% of

global glove usage

in 2009

% of world population

Geographically diversified đ@

¢ Exports to 185 countries with 2QFY13 revenue by geography

more than 1,800 customers

Rest of the

¢ Geographically diversified and ,

Srap y Middle East_ World 3%

no single biggest customer 59

constitutes more than 4% of

revenue Asia 11%

¢ Customers are mainly Lo

distributors in the respective Maaatee

North

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Key industry drivers

1 Medical gloves is a necessity in

healthcare industry

@ Asa barrier of protection

2 Increasing healthcare and hygiene

awareness

m Especially in developing countries

3 Ageing population

m As elderly are more susceptible to

higher risk diseases

4 Health regulations

m Healthcare regulations eg OSHA in US,

EU-OSHA in Europe, SESI in Brazil

5 Emergence of health threats

m £.g.A(H1N1), SARS, bird flu, Bio-

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24 manufacturing facilities across 3 countries Œ@

Production capacity expansion plan

(formerly known as F18, phase 2)

Total by April 2014 : 25 glove factories 538 lines 47.9 bil pcs p.a

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New Venture : Rubber Plantation @

= 1 Plantation land located in Indonesia, south

bad of Sumatera; Land size 30,772 ha

Concessions land tenure for 60 years, renewal for another 60 years

Target commencement of first phase of planting in Oct 2013

Expecting first tapping in 2020

With progressive planting over 8 years and

a gestation period of 7 years, full development is expected within 14 years Estimated investment cost around RM450m over 14 years period Positive cash flow expected from year 10

Natural Rubber Supply vs Demand @

mmt m@m@Supply (LHS) s=®Demand (LHS) —Supply surplus (RHS) mmt

source : International Rubber Study Group

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Costs breakdown GP

- Able to pass majority of latex cost increases to customers

¢ On-going internal cost improvement and efficiency measures offset cost increases

- Upstream production (latex concentrate plant) to provide greater control over latex supply

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Challenges in glove industry @

¢ Time lag in passing on to customers when USD weakens sharply

Crude oil price fluctuation/

Raw material price fluctuation

speculation

¢ Due to weather impact, crude oil

price movement, speculation,

competition with other usage

¢ Time lag in passing on to customers

when prices move up sharply

¢ Impact on energy cost, other raw materials and logistic cost

¢ Inflation

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3 months performance comparison @

1 Dec 12 - 1Dec11- (2Q13 vs 1 Sep 12 - (2Q13 vs

28 Feb 13 29 Feb 12 2Q12) 30 Nov 12 1Q13)

« Sales volume (quantity of gloves) up 20% 2Q13 vs 2Q12, up 3% 2Q13 vs 1Q13

¢ Latex price down 15% 2Q13 vs 2Q12, down 1% 2Q13 vs 1Q13

¢ Margin affected by the time lag of passing the minimum wage impact

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Half yearly performance comparison @œ

1 Sep 12 - 1 Sep 11 - (H13 vs 1 Mar 12 - (H13 vs

28 Feb 13 29 Feb 12 1H12) 31 Aug 12 2H12)

Sales volume (quantity of gloves) up 22% 1H13 vs 1H12, up 8% 1H13 vs 2H12

Latex price down 23% 1H13 vs 1H12, down 19% 1H13 vs 2H12

Improvement in margin

Lower tax expense due to recognition of deferred tax assets

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* Based on par value of RM0.50, adjusted for share split and bonus issue

# Restated to comply with FRS112 (deferred tax)

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Strong and healthy balance sheet @

As at 28 Feb 13 As at 31 Aug 12

Net cash flow from operating activities (RM’ mil)

Free cash flow before dividend (RM’ mil)

Net cash and short term investment (RM’ mil)

* Annualised

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Dividend - sustainable and steady growth ®

(Financial year ended 31 August) year (sen) dividend

Return on investment @

2206%)since IPO in Mar’01, assuming initial investment of 1,000 shares was made

during initial public offering price of RM2.70 on 27/03/01

* Adjusted for bonus issue and share split

If the bonus issues and share split are into consideration, the share price should be

RM5.35 x 1.3x 1.4x 1.4 x 2 x 2G RM54.53 per share

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Corporate culture @

Business Direction, Ethics, Rules & Philosophies

Must know, Must do, Must teach

Business direction Business rules

quality gloves at efficient low cost 2 Do not lose our health;

3 Do not lose our temper;

Investment direction

1 To earn 2 healthy dollars and invest 1

4 We work closely with our bankers, suppliers, business associates and friends

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Management focus going forward

¢ Further automate production line to reduce

workers & improve the efficiency

¢ Target balance capacity mix of natural

rubber and synthetic rubber glove

¢ Move upstream to rubber plantation

¢ Target 30% global market share

AN

Capture growth in emerging market demand + +^

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jou’ \ Top Glove Corporation Berhad