Riverstone Holdings Limited 1QFY2015 Results Briefing 5 May 2015 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. 2 Group Financial Highlights 1QFY2015 3 Results Overview Revenue increased 44.8% to RM127.2 million in 1QFY2015 from RM87.8 million in 1QFY2014  4Q2014: RM112.0 million or 13.6% qoq increase of growth Net profit increased 68.6% to RM27.0 million in 1QFY2015 from RM16.0 million in 1QFY2014  4Q2014: RM22.4 million or 20.7% qoq increase of growth Positive free cash flows since IPO in 2006, net cash position of RM96.8 million 4 Growing Revenues 399.3 (RM ‘million) 400 357.9 309.8 350 112.0 92.7 272.8 300 79.2 221.5 250 71.8 94.0 200 60.0 102.7 79.0 71.0 150 100 50 54.7 54.0 52.8 65.5 90.4 78.3 96.9 127.2 64.4 80.8 73.3 87.8 0 2010 5 2011 2012 1Q 2013 2Q 3Q * Annual figures may have some discrepancy due to rounding 2014 4Q 2015 Three Years of Net Profit Growth (RM ‘million) 58.0 71.0 60 22.4 50 40 30 20 10 40.4 16.0 38.6 39.7 16.5 10.3 8.9 8.4 9.9 10.0 10.5 9.7 10.5 15.7 16.1 14.4 10.3 11.0 9.4 9.7 2011 2012 27.0 16.0 11.8 0 2010 1Q 2013 2Q 3Q 6 * Annual figures may have some discrepancy due to rounding 2014 4Q 2015 Strong and Healthy Balance Sheet 7 Year End 31 Dec As at 31 Mar 2015 (RM’000) As at 31 Dec 2014 (RM’000) Net cash and cash equivalents 96,778 79,432 Total borrowings 0 0 Net cash flow from operating activities 26,206 (1QFY2015) 9,689 (1QFY2014) Shareholders equity 403,080 371,552 Net assets (RM Sen per share) 108.78 100.27 Return on equity (“ROE”) 26.8%* 19.1% *Calculated on an annualised basis Consistent Dividends since IPO Dividend Declared (RM Sen/ Share) 8 6.80 6.90* 5.90 5.90 6.00 6 5.30 3.32 3.56 4 2.58 2 0 ^ including 2006 2007 2008 2009 2010 2011 2012 2013 2014 8 Dividend Payout Ratio FY2014: 36.1% FY2013: 43.5% FY2012: 53.9% FY2011: 49.2% FY2010: 46.4% FY2009: 53.5%^ FY2008: 45.7% FY2007: 45.0% FY2006: 35.5% a special 1 sen tax-exempt dividend * An interim tax-exempt dividend of 2.35 sen (RM) per ordinary share for FY 2014 was paid on 9 Oct 2014. A final dividend of 4.55 sen (RM) has been approved by the Board. Outlook, Growth Plans & Key Challenges 9 Outlook • Completed first phase of expansion plans in Taiping, Malaysia, bringing annual production capacity to 4.2 billion pieces of gloves • Second phase expected to be completed by end of FY2015; Additional 1 billion gloves to annual production capacity will be fully realised to meet increased demands • Strong demand for cleanroom gloves for manufacturers of tablets and mobile devices • Continue to tap on fast-growing market for healthcare gloves • At least 20% annual growth in volume 10 Expansion Plan No. of gloves at the end of each year Million pieces 6000 5200 5000 4200 4000 3100 3100 3000 2500 1800 2000 1000 601 720 780 900 1100 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11 Key Challenges Challenge 1) Competition Action 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. - 12 Automation Improve productivity by Lean process and six sigma Reduce changeover time by install additional line Price adjustment “Greater opportunity to Grow” “Growth is Sustainable” “Risk can be mitigated” RIVERSTONE HOLDINGS LIMITED Thank You 13 Q&A 14 RIVERSTONE HOLDINGS LIMITED Thank You Media & IR Contacts: 15 Tok Chong Yap Senior Consultant [email protected] Tel: (65) 6438 2990 Fax: (65) 6438 0064 Stephanie Chong Associate [email protected]