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TRANSCRIPT
Riverstone Holdings Limited
2QFY2014 Results Briefing
5 August 2014
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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.
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Group Financial Highlights
2Q and 1H 2014
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Results Overview
Revenue increased 7.1% yoy to record high of RM96.9 million in 2Q2014
Growing revenue from RM87.8 million in 1Q2014 or 10.4%
1H2014: RM184.7 million (1H2013: RM171.2 million) or 7.9%
Net profit increased 11.3% yoy to RM16.1 million in 2Q2014
Stable profit growth from RM16.0 million in 1Q2014
1H2014: RM32.1 million (1H2013: RM26.3 million) or 22.1%
Positive free cash flows since IPO in 2006, net cash position of RM89.2 million
Board of Directors declares interim dividend of 2.35 sen (RM) per share
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0
50
100
150
200
250
300
350
400
2010 2011 2012 2013 2014
52.8 64.4 73.3 80.8 87.8
54.065.5
78.390.4 96.954.7
71.079.0
94.0
60.0
71.8
79.2
92.7
1Q 2Q 3Q 4Q
Growing Revenues
272.8
221.5
(RM ‘million)
309.8
5
357.9
* Annual figures may have some discrepancy due to rounding
184.7
0
10
20
30
40
50
60
2010 2011 2012 2013 2014
10.5 9.4 9.7 11.816.0
9.7 10.3 11.014.4
16.19.9 10.0 10.5
15.710.3 8.9 8.4
16.0
1Q 2Q 3Q 4Q
Steady Net Profit
38.6 40.4
(RM ‘million)
39.7
6
58.0
* Annual figures may have some discrepancy due to rounding
32.1
Year End 31 Dec
As at 30 Jun 2014 (RM’000)
As at 31 Dec 2013 (RM’000)
Net cash and cash equivalents 89,187 114,004
Total borrowings 0 0
Net cash flow from operating activities 34,840 (1H2014)
20,813 (1H2014)
Shareholders equity 336,927 322,655
Net assets (RM Sen per share) 90.93 87.08
Return on equity (“ROE”) 19.0%* (1H2014)
16.3%* (1H2013)
Strong and Healthy Balance Sheet
7 * ROE has been annualized and rounded up
Consistent Dividends since IPO
2.583.32 3.56
5.35.9 5.9 6
6.8
2.35
0
2
4
6
8
2006 2007 2008 2009 2010 2011 2012 2013 2014
Dividend Declared (RM Sen/ Share)
Dividend Payout Ratio FY2013: 43.5% FY2012: 53.9% FY2011: 49.2% FY2010: 46.4% FY2009: 53.5%^ FY2008: 45.7% FY2007: 45.0% FY2006: 35.5% ^ including a special 1 sen tax-exempt dividend
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* An interim tax-exempt dividend of 2.35 sen (2Q2013: 2.30 sen) (RM) per ordinary
share for FY 2014 has been approved by the Board.
Outlook, Growth Plans &
Key Challenges
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Outlook
• First phase of expansion on 30-acre site in Taiping, Malaysia on track
• Expected to be operational in 4th Qtr 2014
• Strong take-up of cleanroom glove product line targeted at manufacturers of tablets and mobile devices
• Huge potential to grow in the healthcare segment (Especially nitrile gloves)
• At least 25% annual growth in volume
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Growth Plan - Production Capacity To Reach 4.2 billion gloves by 31 December 2014
601720 780
9001100
1800
2500
3100 3100
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011 2012 2013
No. of gloves at the end of each year Million pieces
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Key Challenges
Challenge Action
1) Competition Cleanroom: New product for cleanroom mobile/tablet
New marketing strategy (Cleancare & A Clean)
Healthcare : Focus on customize and premium product
2) US$ fluctuation
Natural hedge & conventional forward contract/financial
instruments
3) Increase in cost such as
raw material & labour
etc.
- Automation
- Improve productivity by Lean process and six sigma
- Reduce changeover time by install additional line
- Price adjustment
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RIVERSTONE HOLDINGS LIMITED
Thank You
“Greater opportunity to Grow”
“Growth is Sustainable”
“Risk can be mitigated”
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Q & A
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RIVERSTONE HOLDINGS LIMITED Thank You Media & IR Contacts:
Gabriel Tan
Associate Director
Tel: (65) 6438 2990
Fax: (65) 6438 0064
Tok Chong Yap
Consultant
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