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Riverstone Holdings Limited 2QFY2014 Results Briefing 5 August 2014 1

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Page 1: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

Riverstone Holdings Limited

2QFY2014 Results Briefing

5 August 2014

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Page 2: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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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Page 3: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

Group Financial Highlights

2Q and 1H 2014

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Page 4: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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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Page 5: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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

Page 6: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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

Page 7: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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

Page 8: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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.

Page 9: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

Outlook, Growth Plans &

Key Challenges

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Page 10: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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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Page 11: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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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Page 12: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

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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Page 13: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

RIVERSTONE HOLDINGS LIMITED

Thank You

“Greater opportunity to Grow”

“Growth is Sustainable”

“Risk can be mitigated”

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Page 14: Riverstone Holdings Limitedriverstone.listedcompany.com/newsroom/20140805... · 8/5/2014  · Gabriel Tan Associate Director gabriel@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65)

Q & A

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