Riverstone Holdings Limited 3Q Results Briefing 2 November...

-Riverstone Holdings Limited –

3Q Results Briefing

2 November 2010

Disclaimer

The views expressed by Riverstone Holdings Ltd (the "External Party") on the occasion of Phillip

Security lunch presentation: Riverstone Holdings Ltd are the personal views and opinions of the

External Party (the "External Party's Views") and in no way reflect the views, opinions, expressions or

representations of Phillip Securities Pte Ltd.

Phillip Securities has no, and will not accept any, obligation to check or ensure (i) the reliability,

relevancy or fairness of the External Party's Views, or (ii) the accuracy or completeness of the External

Party's Views. Without prejudice to or derogating from the generality of the foregoing, no representation

or assurance is given by Phillip Securities Pte Ltd that the External Party's Views contain all information

that an investor may require. To the extent permitted by applicable law, Phillip Securities Pte Ltd, or any

of its affiliates, 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 External Party's Views

Investors are advised to make their own independent evaluation of the External Party's Views, consider

their own individual investment objectives, financial situation and particular needs and consult their own

professional and financial advisers as to the legal, business, financial, tax and other aspects as

investors may regard as relevant.

2

Agenda

Overview of Riverstone

Our Competitive Strengths

Our Track Record

3Q2010 and 9M2010 Update

Earnings Drivers and Outlook

3

What We Do

Riverstone is

a leading manufacturer of

High-Tech Cleanroom

and

Healthcare Gloves

OUR VISIONTo stay as the global leader in the manufacturing

of Cleanroom and Healthcare consumables

4

Products

• Other cleanroom

consumables

•Face pouches

•Hoods,Caps

•Jumpsuits

•Shoe covers

•Critical task wipes

•Swabs

Manufactured

Products

Source

& Market

Products

• Nitrile gloves

• Natural rubber gloves

• Other cleanroom

consumables

•Finger cots

•Packaging materials

•Facemasks

Riverstone

– An Integrated Cleanroom Supplier -

5

Our Market Position

RS

Cleanroom

Gloves

Riverstone is the company that focuses on

High-tech cleanroom gloves

Heathcare

Gloves

Industrial

Gloves

6

Our Market Position

Heathcare

Gloves

Profit

Margin

Cleanroom

Gloves

Profit

Margin

Riverstone is the company that focuses on

High-tech cleanroom gloves7

Our Manufacturing Facilities

Integrated manufacturing

operations

Malaysia (3), Thailand (1), China (1)

Internationally NEBB certified

class 10 & class 100 cleanroom

facilities

ISO 9000 and ISO 14000 certification

Annual Capacity as at 30 Sep 2010

1.4 billion gloves

More than 600 million pieces of finger

cots

More than 1,500 tonnes of cleanroom

packaging materials

Over 40 million pieces of face masks

Malaysia Plant in Bukit Beruntung,Selangor

China Plant

Thailand Plant

8

Product Mix

Product Revenue

contribution

Remark

Cleanroom Gloves 80.6% 1. Cleanroom glove

- Nitrile 12.5%

- Latex

- PVC 40%

- Cotton

2. Market Value = USD 1 billion

Healthcare Gloves 13.5% Annual global consumption – 145

billion pieces

Annual growth rate: 8-10%

Current RS production – 0.2% of

global consumption. Room to grow.

Other CR

consumables

5.9% Good potential to grow with new

facilities

Esp. Cleanroom packaging bags

9

The Industries We Serve In Cleanroom

High-Tech Electronics Manufacturing

Hard Disk Drives

Semiconductors

LCD

External Storage Devices

Consumer Electronic Devices

Medical Devices Manufacturing

Automobile

Pharmaceutical

Aerospace

Laboratory and Research

* 80.6% of our Business:

10

Riverstone’s Niche In Healthcare Gloves

Highly customised segments in the healthcare industry, for example:

Procedure gloves - for superior barrier protection,

High-risk gloves - for better protection in carrying out high risk, harzardous

tasks,

Hand specific gloves – for providing more comfort and better fitting,

Dental gloves – higher priced products and

Accelerator-free gloves - to minimise type IV allergic reaction.

* 13.5% of our Business

11

We Are Different

Riverstone Other Gloves Manufacturers

Cleanroom Gloves

Highly customized Mass Volume Standardized Products

Higher Barrier of Entry

1)3 processes

2)Qualification processes take longer time

3)Spec depends on functionality

Comparatively Lower Barrier of Entry

1) 1 process

Own Brand and Deal mainly Directly With End Users Mainly OEM

High-Tech Value Added To Products

(we provide ESD and contamination solution for our customers)

Innovative product development to meet customers’ requirements (meet customer

product life cycle requirement)

Flexible Production Lines To Meet Changing Demands

Sterile Gloves For Cleanroom and Pharmaceutical Manufacturing Applications

Healthcare Gloves

Premium gloves - Accelerator-Free Gloves

- Procedure Gloves

- Hand Specific Gloves

- Sterile product.

12

Network of

international sales

offices:

Singapore

Malaysia

Thailand

Philippines

PRC

US

Exported to :

Europe

Mexico

US

Canada

Singapore

Malaysia

Indonesia

Thailand

Philippines

Vietnam

PRC, Hong Kong

Japan

Korea

Taiwan

India

Europe

Asia

USA

Our products are exported worldwide

13

Our Competitive

Strengths

14

• Flexible manufacturing facilities

• Customisation is a key strength

Manufacturing Flexibility and

Products

Customization

• Sell direct to end-users of cleanroomgloves (mainly)- quick response time; good rapport, obtain earlier information on new product requirements

• Collaborate with customers on R&D and new products development

Strong Relationships

with Customers


15

• Pioneered nitrile gloves manufacturing in Malaysia

• Dedicated 20-men R&D team to develop customised solutions

Strong R&D Capabilities

• Integrated manufacturing facilities

• ISO9001:2000 and ISO 14001:2004 certified

• Advanced lab testing facilities certified by customers

High Quality Control and Production Standards


Financial Performance

3Q2010 and 9M2010

3Q2010 Financial Performance

Y/E 31 Dec

3Q 2009

(RM 000)

3Q 2010

(RM 000)% Chg

Revenue 44,791 54,697 22.1%

Qty of glove (pcs) million 240.1 319.9 33.3%

Gross Profit 15,682 16,246 3.6%

Profit before Tax 11,104 10,249 7.7%

Net Profit 9,920 9,923 n.m

Gross Profit Margin 35.0% 29.7%

Net Profit Margin 22.2% 18.1%

Product Mix82.6 (nitrile) 84.6% (nitrile)

17.4% (NR) 15.4% (NR)

Cleanroom 70.5% 82.6%

Healthcare 29.5% 17.4%

9M2010 Financial Performance

Y/E 31 Dec

9M2009

(RM 000)

9M2010

(RM 000)% Increase

Revenue 108,320 161,504 49.1%

Qty of glove (pcs) million 568.7 932.4 64.0%

Gross Profit 31,889 48,379 51.7%

Profit before Tax 20,493 32,867 60.4%

Net Profit 18,505 30,107 62.7%

Gross Profit Margin 29.4% 30.0%

Net Profit Margin 17.1% 18.6%

Product Mix77.6%(Nitrile) 84.2% (Nitrile)

22.4%(NR) 15.8% (NR)

Cleanroom 80.8% 77.8%

Healthcare 19.2% 22.2%

Behind 9MFY10 Performance

Unit sales of gloves up 64% to 932.4 million pieces; demand from new

customers and sustained demand from regular customers

Sales of healthcare gloves up 90%; driven by demand for customised

solutions

3Q somewhat affected by weaker USD

20

0

50

100

150

200

FY2007 FY2008 FY2009 9M2010

126.7141.4

155.7 161.5

Revenue (RM million)

0

5

10

15

20

25

30

35

FY2007 FY2008 FY2009 9M2010

22.824.4

29.5 30.1

Net Profit (RM Million)

Steady Margins

21

0%

10%

20%

30%

40%

FY2006 FY2007 FY2008 FY2009 9M2010

34.6% 33.9%

30.7% 31.5% 30.0%

GP Margin

0%

5%

10%

15%

20%

25%

FY2006 FY2007 FY2008 FY2009 9M2010

18.4% 18.0%17.2%

19.0% 18.6%

Net Profit Margin

Healthy Balance Sheet

As at 30 Sep 2010(RM m)

As at 31 Dec 2009(RM m)

Current Assets 115.9 103.8

Current Liabilities 28.5 18.7

Total Assets 229.7 195.6

Total Liabilities 33.7 24.2

Shareholders Equity 196.0 171.4

Gearing 0.2% 0.5%

Cash and Cash Equivalents 53.7 47.2

We believe in paying dividends!

2006 2007 2008 2009 2010

Dividend Per Share (Sen) 2.6 3.3 3.6 5.3 2.2(interim)

Earnings Drivers and

Outlook

Earnings Drivers

Cleanroom Glove Sector

Sustained demand from HDD &

semiconductor customers

Gained new customers in

Japan, Korea & US

Gained market share in

pharmaceutical industry

Healthcare Glove Sector

Established market niche in

premium healthcare gloves

Growing demand for

customised solutions

0

200

400

600

800

1000

1200

1400

1600

1800

2005 2006 2007 2008 2009 2010f

601

720780

900

1100

1800

Annual Production Capacity of gloves (million pieces)

RIVERSTONE HOLDINGS LIMITED

Thank YouInvestor Relations & Media Contact:

Juliet Ang, NRA Capital

Tel: 6236 6895 Email: [email protected]

Hu Junli, NRA Cpital

Tel: 6236 6894 Email: [email protected]
mailto:[email protected]:[email protected]

Riverstone Holdings Limited 3Q Results Briefing 2 November...

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