Riverstone Holdings Limited
FY2015 Results Briefing
25 February 2016
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
4QFY2015 and FY2015
3
Results Overview
Revenue increased 37.0% yoy to RM153.5 million for 4QFY2015
Growing revenue from RM150.6 million in 3QFY2015 or 1.9%
FY2015: RM560.2 million (FY2014: RM399.3 million) or 40.3%
Net profit increased 66.4% yoy to RM37.2 million for 4QFY2015
Growing net profit from RM35.3 million in 3QFY2015 or 5.4%
FY2015: RM126.5 million (FY2014: RM71.0 million) or 78.4%
Continues to generate positive operating free cash flow of RM13.8 million for 4QFY2015 and RM122.1 million for FY2015
Net cash position of RM128.7 million with zero debt
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0
100
200
300
400
500
600
2010 2011 2012 2013 2014 2015
52.8 64.4 73.3 80.8 87.8127.2
54.065.5
78.3 90.4 96.9
129.0
54.771.0
79.094.0
102.7
150.6
60.0
71.879.2
92.7112.0
153.5
1Q 2Q 3Q 4Q
Growing Revenues
272.8
221.5
(RM ‘million)
309.8
357.9
* Annual figures may have some discrepancy due to rounding
399.3
560.2
5
0102030405060708090
100110120130140
2010 2011 2012 2013 2014 2015
10.5 9.4 9.7 11.8 16.027.09.7 10.3 11.0 14.4
16.1
27.0
9.9 10.0 10.515.7
16.5
35.3
10.3 8.9 8.4
16.022.4
37.2
1Q 2Q 3Q 4Q
Net Profit Growth
38.6 40.4
(RM ‘million)
39.7
58.0
* Annual figures may have some discrepancy due to rounding
71.0
126.5
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Year End
31 Dec
As at
31 Dec 2015
(RM’000)
As at
31 Dec 2014
(RM’000)
Net cash and cash equivalents 128,682 79,432
Total borrowings 0 0
Net cash flow from operating activities
122,130
(FY2015)
62,834
(FY2014)
Shareholders equity 481,505 371,552
Net assets (RM Sen per share) 129.95 100.27
Return on equity (“ROE”)
26.3%
(FY2015)
19.1%
(FY2014)
Strong and Healthy Balance Sheet
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Consistent Dividends since IPO
2.583.32 3.56
5.305.90 5.90 6.00
6.80 6.906.45*
0
2
4
6
8
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend Declared (RM Sen/ Share)
Dividend Payout Ratio
FY2015: 37.8%
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%
^ including a special 1 sen
tax-exempt dividend
* An interim tax-exempt dividend of 2.40 sen (2Q2014: 2.35 sen) (RM) per ordinary share for
FY2015 was paid on 9 Oct 2015. A final dividend of 5.25 (FY2014: 2.30 sen) (RM) has also
been proposed by the Board. After adjusting for 371.2 million 1:1 bonus shares allotted and
issued on 1 February 2016 (bringing total number of shares to 742.5 million), the total full
year dividend was 6.45 sen (RM) 8
Outlook, Growth Plans &
Key Challenges
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Outlook
• Second phase expansion has been completed as at 4QFY2015; Bringing total annual production to 5.2 billion pieces
• Acceleration of Phase 3 commencement to meet increased demands from new and existing customers
• 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
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Expansion Plan
900 1100
1800
2500
3100 3100
4200
5200
6200
7200
8200
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
No. of gloves at the end of each year
Million pieces
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Key Challenges in Glove Industry
Challenge Action
1) Competition Cleanroom: New product for cleanroom mobile/tablet
New marketing strategy (Cleancare & A Clean)
Healthcare : Focus on customised and premium products
2) Increase in cost such as
raw material & labour
etc.
- Automation
- Improve productivity by Lean process and six sigma
- Reduce changeover time by installing an additional line
- Price adjustment
3) Currency fluctuations - Close monitoring of fx movements
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Q & A
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RIVERSTONE HOLDINGS LIMITED Thank You
Media & IR Contacts:
Tok Chong Yap
Senior Consultant
Tel: (65) 6438 2990
Fax: (65) 6438 0064
Stephanie Chong
Senior Associate
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