TOP GLOVE CORPORATION BHD

Investor Presentation
14th Apr 2023

REMAINING STEADFAST
IN CHALLENGING TIMES

Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR United States : TGLVY Page 1/27
 TOP GLOVE BUSINESS ETHICS CLAPS
Thumbs up, Ready, 1 2 3

Claps, 2x 3x 2x
Initiated By: Tan Sri Dr. Lim Wee Chai @ 17/07/2017
Revised By: Ng Kai Yee @ 21/09/2020
Verified By: Melissa Cheoh @ 21/09/2020 Page 2/27
 TOP GLOVE 5 HEALTHY WELLS CLAPS
Thumbs Up, Ready, 1 2 3
TOP GLOVE
CLEAN WELL
EAT WELL
WORK WELL
EXERCISE WELL
SLEEP WELL
Claps, 2x 3x 2x
Initiated By: Tan Sri Dr Lim Wee Chai @ 18/05/2021
Prepared By: Andy Ting @ 18/05/2021 HEALTHY! HEALTHY! HEALTHY!
Verified By: Melissa Cheoh @ 18/05/2021 Page 3/27
 ‘Top Glove’ at a glance

The World’s Largest Manufacturer of Gloves

The world’s largest

Market capitalisation(1) of
manufacturer of Nitrile,
RM9.2 bil, USD2.1 bil,
Natural Rubber and
as at 14 Apr 2023
Surgical gloves

Our Vision 100 billion gloves p.a.

To be your world class partner 2QFY23 Revenue capacity, 50 factories,
in gloves and healthcare RM 618 mil, USD 141 mil 812 production lines,
products as at Apr 2023

Our Mission
Ensuring safe human protection
globally Over 2,000 customers
About 13,000 employees
across 195 countries

Source: (1) Bloomberg Page 4/27

 From Humble Origins to Global Leader
1991 2001 2004 2011 2016 2019 2021
▪ Started as ▪ Commenced ▪ The World’s ▪ Acquired a ▪ Secondary ▪ Launched ▪ FY21 PAT of
a local operations in Largest marketing listing on BioGreen RM7.8 bil
business Thailand Manufacturer arm in Singapore Biodegradable exceeded past
enterprise ▪ Listed on the of Natural Germany to Stock Exchange Gloves 20 years PAT
Second Board of Rubber extend sales (“SGX”) ▪ Implemented ▪ Highest
Kuala Lumpur Gloves in Europe Manufacturing dividend
Execution System
Stock Exchange declared in
(MES) and
(“KLSE”) FY21 of
Advanced Auto
Packing Machine RM5.2 bil

1994 2002 2007 2013 2018 2020 2022

▪ First ▪ Commenced ▪ Revenue Established ▪ Revenue over RM4 bil ▪ The World’s ▪ Launched
overseas operations in over RM1 bil first dedicated ▪ Implementation of Sustainability
Artificial Intelligence
Largest
foray and China ▪ Acquisition Group R&D (AI) Empowered Vision Manufacturer Policy
established a ▪ Transferred to of a majority Centre to Inspection System of Nitrile Gloves ▪ Ranked Top
marketing the Main stake in drive ▪ Acquisition of Aspion, ▪ Commenced 10% amongst
arm in the Board of KLSE Medi-Flex innovation Eastern Press, the Healthcare
Duramedical
operations in
USA ▪ The World’s Largest Vietnam Sector on the
Manufacturer of DJSI ratings
Surgical Gloves

Page 5/27
 Healthcare Spending Will Continue to Increase in Emerging Market

Strong growth opportunity in developing countries on the back of large population

but current low glove usage
Glove per Capita Consumption in 2020, Pieces Population by Region in 2020, ‘mil People
High glove usage in Low glove usage in
developed countries developing countries
Asia and Pacific 4,346
300
[1]
Africa 1,307
208 [1]
180 Southeast Asia 663
133 Latin America and
the Caribbean 637
High Population in
Middle East 247 developing countries
14 9 7 6
United Germany United Japan Phillipines
Philippines China India Indonesia
Europe 743
States Kingdom
North America 500 Population in
Source: Frost and Sullivan, December 2021 developed countries
[1] Germany and United Kingdom refer to 2019 data

Source: Frost and Sullivan, December 2021 Page 6/27

 Distribution Across 195 Countries:
% of 2QFY23 Sales Volume by region
Distribution
Asia
Western Eastern ex Japan 25% ▪ 7 distribution hubs globally
North 29% Europe 12%
America 10% Europe ▪ Over 2,000 customers
Japan 6% ▪ An OEM manufacturer in
every region
▪ Top 5 customers represent
Germany c.11% of total revenue
USA ▪ No single customer
China contributes more than 5% of
revenue
Vietnam
▪ Comprising distributors
Thailand across 195 countries

Malaysia ▪ A geographically diverse

Latin
America 9% Brazil
customer base
Middle
East
6% Top Glove’s Distribution Hubs
Africa 3%
Page 7/27
 Diverse Range of Products to Align with Rapidly Changing Markets

% of Product Mix By Volume from FY11 to 1HFY23

60%

50%
55% 47% 47%
44% Nitrile gloves
43%
40%
39%

30% 27% Natural rubber

26% 27%
22% 23% powdered gloves
22%
26% Natural rubber
20% 23% 22%
11% 19% 20% powder-free gloves
10% 9% 8% 8%
7% 5% 5% Vinyl/TPE/CPE
1% 2% 3% 2%
0% 3% 4% Surgical gloves
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1HFY23
Page 8/27
 Manufacturing Facilities Across Four Countries

Top Glove’s Total Production Capacity Top Glove’s Manufacturing Capabilities

In Bil Pcs Total: 50 Factories[37 Glove + 13 Non Glove]
New expansion plans deferred Current Capacity: 100 bil pcs p.a. with 812 Production Lines

Capacity Dec 22 Dec 23 Dec 24 Dec 25 Malaysia Production:

▪ 32 Glove Factories 1. Nitrile Gloves
Current estimate, bil 100 100 104 115
▪ 3 Chemical Factories 2. Natural Rubber Gloves
Deferred in the year, bil Nil (10) (15) (16) ▪ 2 Packaging Factories 3. Surgical Gloves
▪ 1 Glove Former Factory 4. Cleanroom Gloves
▪ 1 Dental Dam Factory 5. CPE/TPE Gloves
Additional Capacity +11% ▪ 1 Condom Factory 6. Former and Chemical
+4% 11 bil 115 bil ▪ 1 Mask Factory 7. Dental Dam
▪ 1 Gamma Sterilization Plant 8. Condom
4 bil
100 bil 100 bil 100 bil ▪ 1 Rapid Test Kit Factory 9. Face Mask
10. Rapid Test Kit
90 bil Capacity expansion
will be aligned Thailand China
with demand and ▪ 3 Natural Rubber Glove ▪ 1 Vinyl Glove Factory
supply situation Factories
▪ 2 Latex Concentrate Plants
Vietnam
Dec Dec Dec Dec 2024 2025 Dec Production:
▪ 1 Vinyl Glove Factory
2020 2021 2022 2023 2025 1. Natural Rubber Gloves
2. Latex Concentrate
Page 9/27
 Raw Material Prices and Energy Costs Showing Mixed Trend

Nitrile & NR Latex Concentrate Prices 2QFY23 Production Cost Structure

USD/KG
2.42
Electricity
2.2 2.04 4%
Depreciation 6%
1.66 1.63 Raw
1.7 NR Latex Packaging 7%
Material Other Overhead 7%
1.22 36%
1.2 1.06 1.19 Chemical 8%
1.17 1.18 1.08 0.93
0.7 1.00 Nitrile Labour 14%
Jan/20 May/20 Sep/20 Jan/21 May/21 Sep/21 Jan/22 May/22 Sep/22 Jan/23 Apr/23
Fuel 18%

1. Raw material prices outlook:

Butadiene, Acrylonitrile & Crude Oil Prices ▪ Nitrile: Expected to decrease by 2% from Mar 2023 to an
Crude Oil, WTI, estimated USD0.93/kg for Apr 2023
USD/KG USD/bbl
2.68 ▪ Latex: Expect to normalize after wintering season ends in
3.0 125.36 Crude Oil 120.00
2.5
Acrylonitrile May
76.54 100.00 2. Natural gas tariff is expected to come down by approximately
2.0 1.79 80.00
1.41 16% in April 2023
1.5 61.16 1.23 1.56 -59% 60.00 3. Electricity tariff increase by approximately 42% effective
1.53
1.0 40.00 1 January 2023
0.5 0.89 24.68 0.76
1.22 20.00
0.32 0.64 Butadiene
0.0 0.00
Jan/20 May/20 Sep/20 Jan/21 May/21 Sep/21 Jan/22 May/22 Sep/22 Jan/23
Mar/23
Page 10/27
 2QFY23 quarterly results for the period 1/12/22 to 28/2/23
2QFY23 1QFY23 Variance 2QFY22 Variance
1/12/22 to 28/2/23 1/9 to 30/11/22 2QFY23 vs 1QFY23 1/12/21 to 28/2/22 2QFY23 vs 2QFY22
Revenue, RM’mil 618 633 1,479
(2%) (58%)
Revenue, USD’mil 141 137 352
(L) / EBITDA, RM’mil (59) (66) 193
11% (131%)
(L) / EBITDA, USD’mil (14) (14) 46
(L) / EBITDA margin (10%) (10%) 13%
(L) / PBT, RM’mil (146) (152) 112
4% (230%)
(L) / PBT, USD’mil (33) (33) 27
(L) / PBT margin (24%) (24%) 8%
(L) / PAT, RM’mil (155) (158) 102
2% (251%)
(L) / PAT, USD’mil (35) (34) 24
(L) / PAT margin (25%) (25%) 7%
(L) / EPS, sen (2.06) (2.10) 1.09

Page 11/27
 A Consistently High Growth Company Since Listing in 2001
Over 21 Years Since Listing in 2001
Compound Annual Growth Rate, CAGR
Average PAT Margin
Revenue PAT

in RM’mil 20% 15% 20% in RM’mil

31 August Financial Year End
in RM’mil 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Revenue 1,529.1 2,079.4 2,053.9 2,314.5 2,313.2 2,275.4 2,510.5 2,888.5 3,409.2 4,220.7 4,801.1 7,237.4 16,361.4 5,572.3
EBITDA 287.5 364.7 196.7 297.7 310.6 301.8 441.7 524.7 489.3 694.0 687.5 2,421.5 10,285.1 686.7
EBITDA 62.9% 12.3%
18.8% 17.5% 9.6% 12.9% 13.4% 13.3% 17.6% 18.2% 14.4% 16.4% 14.3% 33.5%
margin
PBT 222.0 305.0 145.5 240.7 242.2 216.3 363.5 442.2 393.4 522.8 423.6 2,165.6 10,033.8 358.4
PBT margin 14.5% 14.7% 7.1% 10.4% 10.5% 9.5% 14.5% 15.3% 11.5% 12.4% 8.8% 29.9% 61.3% 6.4%
Taxation 53.9 54.6 30.3 33.4 39.4 32.7 82.3 79.8 54.5 89.6 56.1 376.7 2,209.8 76.8
PAT 168.1 250.4 115.1 207.3 202.8 183.6 281.2 362.4 338.9 433.2 367.5 1,788.8 7,824.0 281.6
PAT margin 11.0% 12.0% 5.6% 9.0% 8.8% 8.1% 11.2% 12.5% 9.9% 10.3% 7.7% 24.7% 47.8% 5.1%
ROE, % 20.5% 22.4 % 10.1% 16.1% 14.8% 13.0% 17.4% 19.3% 16.4% 18.0% 14.4% 36.0% 131.3% 4.0%
Page 12/27
 A Consistently High Growth Company Since Listing in 2001
Over 21 Years Since Listing in 2001
Compound Annual Growth Rate, CAGR
Average PAT Margin
Revenue PAT

in USD’mil 20% 15% 20% in USD’mil

31 August Financial Year End
in USD’mil 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Revenue 362.4 492.8 486.8 548.5 548.2 539.2 595.0 684.5 807.9 1,000.3 1,137.8 1,715.1 3,968.2 1,305.1
EBITDA 68.1 86.4 46.6 70.6 73.6 71.5 104.7 124.3 116.0 164.5 162.9 573.8 2,494.5 160.8
EBITDA 62.9% 12.3%
18.8% 17.5% 9.6% 12.9% 13.4% 13.3% 17.6% 18.2% 14.4% 16.4% 14.3% 33.5%
margin
PBT 52.6 72.3 34.5 57.0 57.4 51.3 86.1 104.8 93.2 123.9 100.4 513.2 2,433.6 83.9
PBT margin 14.5% 14.7% 7.1% 10.4% 10.5% 9.5% 14.5% 15.3% 11.5% 12.4% 8.8% 29.9% 61.3% 6.4%
Taxation 12.8 12.9 7.2 7.9 9.3 7.7 19.5 18.9 12.9 21.2 13.3 89.3 536.0 18.0
PAT 39.8 59.3 27.3 49.1 48.1 43.5 66.6 85.9 80.3 102.7 87.1 423.9 1,897.6 65.9
PAT margin 11.0% 12.0% 5.6% 9.0% 8.8% 8.1% 11.2% 12.5% 9.9% 10.3% 7.7% 24.7% 47.8% 5.1%
ROE, % 20.5% 22.4 % 10.1% 16.1% 14.8% 13.0% 17.4% 19.3% 16.4% 18.0% 14.4% 36.0% 131.3% 4.0%
Page 13/27
 Bursa: Shareholder Value Track Record
Total Shareholders Return of 9,400% Over 21 Years Since Listing in Year 2001
Number of CDS and CDP Number of accounts Share Split History Bonus Issue History
accounts as at 28 February 2023 RM1 per share to FY2002 3 for 10
16/2/05
Total CDS Accounts, Bursa 131,880 RM0.50 per share FY2003 2 for 5
Total CDP Accounts, SGX 9,136 FY2007 2 for 5
Grand Total 141,016 FY2010 1 for 1
Source: Registrar of Depository FY2016 1 for 1
FY2019 1 for 1
FY2020 2 for 1
Bonus
Issue
122x
since
2002

With initial investment of 1,000 shares made based on IPO price of RM2.70 on 27 March 2001, the return would be:
Market value Accumulated Investment cost Capital Total shareholder
Number of shares held(1)
[as at 14 Apr 2023] Dividends [as at 27 March 2001] appreciation(2) return
# RM RM RM RM %
122,304 135,757 121,340 2,700 254,398 9,400%

Source: Reuters as at 14 Apr 2023

Notes: (1) 1,000 shares at IPO, adjusted for bonus issue and share split since IPO
(2) Calculated based on adding market value and accumulated dividends and subtracting the investment cost Page 14/27
 SGX: Share price appreciation
Total Shareholders Return of 130% over 6 years Since Listing in 28 Jun 2016

Number of CDP accounts

as at 28 February 2022
9,136
Source: Registrar of Depository

Source: Reuters as of 14 Apr 2023

Note: (1) adjusted for bonus issue and share split since IPO

Page 15/27
 Top Glove Convertible Bond Price Performance
Issued on 1st March 2019 and Fully Redeemed on 16th October 2020
Issuer: Top Glove Labuan Ltd
Isin: XS1941677764 Convertible Bond Price as at 16th Oct 2020:
490
Issuance size: USD200 million USD 452.12
Coupon: 2%
440
Issued Date: 1st March 2019
Maturity Date: 1st March 2024 (5 years)
390 Redemption Date: 16th Oct 2020
Bond Price

340
Top Glove Convertible Bond price
appreciated by 352.12% or 3.52 times
290

240

190

140 Convertible Bond Price as at 1st March 2019:

USD 100.00
90

Prepared by: Khoo Bee Hui

Date Verified by: Yap Rueh Yinn
Source: Thomson Reuters Eikon Date: 10 March 2021

Page 16/27
Bursa Top 100 Market Capitalization Listed Companies
Data as of last trading day close price on 14/4/2023 based on Thomson Reuters

Page 17/27
Bursa Top 100 Market Capitalization Listed Companies (Con’t)
Data as of last trading day close price on 14/4/2023 based on Thomson Reuters

Page 18/27
Bursa Top 100 Market Capitalization Listed Companies (Con’t)
Data as of last trading day close price on 14/4/2023 based on Thomson Reuters

Page 19/27
 Summary of Research Reports Rating
Target price (TP), Target PE and Projected Profit After Tax (PAT)

Summary of Research Reports Rating as at 14/4/2023

Num. Report Research New TP Prev TP Target PE based Proj PAT, RM'mil Call Previous
Date House RM RM FY23F FY24F FY23F FY24F rating Call
1 16-Mar-23 HSBC 1.05 1.05 52.5 21.0 147.0 412.0 Buy Buy
2 17-Mar-23 UOB Kay Hian 0.95 0.74 n.a. 55.9 (373.0) 141.0 Buy Hold
3 17-Mar-23 Apex 0.90 0.68 n.a. 47.4 (120.2) 150.4 Hold Sell
4 17-Mar-23 RHB 0.88 0.57 n.a. 88.0 (417.0) 43.0 Neutral Sell
5 17-Mar-23 Nomura 0.81 0.68 n.a. 26.0 (252.0) 256.0 Neutral Neutral
6 16-Mar-23 UBS 0.80 0.65 n.a. 80.0 (597.0) 43.0 Neutral Neutral
7 16-Mar-23 Citi 0.69 0.64 n.a. 69.0 (411.0) 63.0 Sell Sell
8 17-Mar-23 Public Investment 0.62 0.53 n.a. 34.4 (159.1) 141.9 Underperform Underperform
9 16-Mar-23 Credit Suisse 0.60 0.62 n.a. 60.0 (372.2) 78.0 Underperform Underperform
10 17-Mar-23 AmInvest 0.60 0.60 n.a. 19.4 (414.4) 245.2 Sell Sell
11 17-Mar-23 Kenanga 0.58 0.60 n.a. 116.0 (498.0) 121.0 Underperform Underperform
12 17-Mar-23 MBB 0.57 0.35 n.a. n.a. (507.0) (154.0) Sell Sell
13 17-Mar-23 Affin Hwang 0.55 0.55 n.a. n.a. (512.8) (19.5) Sell Sell
14 14-Mar-23 Macquarie 0.55 0.55 n.a. n.a. (412.3) (130.3) Underperform Underperform
15 17-Mar-23 MIDF 0.55 0.42 n.a. 61.1 (503.6) 69.4 Sell Sell
16 17-Mar-23 HLIB 0.53 0.53 n.a. n.a. (379.7) (13.4) Sell Sell
17 17-Mar-23 TA Securities 0.45 0.45 n.a. 26.5 (561.6) 141.1 Sell Sell
18 17-Mar-23 J.P. Morgan 0.45 0.45 n.a. n.a. (543.0) (115.0) Underweight Underweight
Total Average from rank 1 to 18 0.67 0.59 52.50 54.21 (382.61) 81.82
Page 20/27
 We Care for the Health of Our Employees

Top Glove has 37 Wellness Team Members as at 15th February 2023

6 Medical Doctors 3 Nurses
Medical 1 Dentist 3 Clinic Admins
25 Professionals & 1 Mental Health Counselors 2 Paramedics
2 Ambulances 7 Medical Assistants 1 Radiographer
1 Assistant Pharmacist

5 Nutritionists 1 Nurse
Wellness
9 Professionals
1 Dietitian
1 Naturopathy Wellness Consultant
1 Health Admin Executive

Fitness 1 Fitness Trainer

3 Professionals 2 Fitness Assistants

Page 21/27
 Top Glove’s Sustainability Roadmap FY2022 to FY2025
Completed
In progress
FY2022
Scope 1 and 2 emission
reduction targets are set & to
E include Employee Commuting in
Scope 3 reporting
Enhance Social Compliance and
Ethical Conduct Policies by
S referring to UNGP BHR &
develop Investigation Procedure
for grievance caseevelop In
Develop Sustainability Policy and
Grievance Handling Protocol; 1st
G tier natural rubber suppliers are
mapped for monitoring and
evaluating sustainability
performance
FY2023
Further expand Scope 3
reporting with Supply Chain and
set Scope 3 emission reduction
target; adopt circular economy
through recycling of waste
Conduct Human Rights Due
Diligence for contractors and
suppliers
Risk scenario analysis according
to Task Force on Climate-Related
Financial Disclosures ‘TCFD’;
Map 2nd tier natural rubber
suppliers; Use satellite imagery
to monitor suppliers
FY2024
Submission of Net Zero Carbon
to Science Based Target
Initiative; Develop Net Zero
Target Initiative, ‘NZTi’ Roadmap
50% of the identified critical
suppliers to undergo social
compliance audits by third party
auditor
Sustainable finance; Map 3rd tier
natural rubber suppliers;
Traceability audit on 1st & 2nd
tier suppliers
FY2025
To Achieve all Sustainability
Targets with FY2021 as
base year
Disclose internal carbon pricing;
Setting a TARGET YEAR to
achieve Net Zero Carbon
aspirations; Set new
Sustainability Targets for FY2030
100% of the identified critical
suppliers to undergo social
compliance audits by third party
auditor
Map 4th tier natural rubber
suppliers; Traceability audit on
3rd & 4th tier suppliers; Aim to
attain 70% traceability to
plantations of natural rubber
sourcing
Page 22/27
 Integrated Sustainability Policy to Uphold Best Practices

Scope of The Top Glove Sustainability Policy will serve as a guide

Top Glove Traceability Committee
Policy was established in April 2022 to
to ethical and responsible sourcing and procurement
ensure compliance and adherence
activity, setting forth the behaviour expected of Top
of suppliers and business partners
Glove, our suppliers and business partners. Crystalizes
to Top Glove’s Sustainability
all our efforts thus far and our future aspiration
Commitments
Goals

1 Transition into net zero carbon business

2 Promoting inclusivity & respecting human rights
3 Improving community livelihood
Strengthening good corporate governance &
4 responsible business culture

Emerging as a trusted company with sustainable

5 value chain
Sustainability Policy was launched on
15 June 2022, Wednesday Scan for TG Sustainability
Report 2022 Page 23/27
 Guiding principles for growth and success

Top Glove’s Business Direction, Ethics, Rules & Philosophies

Must know, Must do, Must teach

Business Direction Business Ethics Business Philosophies

1. Honesty 1. We work for our customers

To produce consistently high
2. Integrity
quality gloves at efficient low cost
3. Transparency
Investment Direction Business Rules
1. Do not lose our shareholders’
To invest 1 efficient dollar and money
earn 2 healthy dollars
2. Do not lose our health
3. Do not lose our temper
4. Do not lose our customers
2. We take care of the interest of
our shareholders
3. We ensure that our employees
continue to contribute
positively to the company and
we care for their well-being
4. We work closely with our
bankers, suppliers, business
associates and friends

Page 24/27
 Top Glove’s Medium and Long Term Objectives

OUR VISION OUR MISSION

To be your world class partner in gloves Ensuring safe human protection globally
and healthcare products supported by our values

Our People
Healthy workforce living 5 Wells
with quality and safety mindset
Ensure the well being of our
employees, our greatest assets
Our Products,
Process & Customers Our Financials
▪ Diversify to glove related and Good and Prudent Financial
healthcare businesses Discipline to achieve target
▪ Focus on Product Innovation, financial ratios
Operational Excellence to achieve
customer delight
▪ Embrace Industry 4.0 digital eco-
systems using the power of data
Deliver sustainable financial goals
and create value for our investors
and financial partners
Continue to innovate and deliver
world class products with
improved processes and ensure
ultimate customers satisfaction
Page 25/27
 Scan or click to access
TG Investor Relations webpage

Scan or click to access

TG Sustainability webpage

Thank You
Have A Nice Day!

www.topglove.com/ir-overview-en
invest@topglove.com.my +6012 505 6389
www.topglove.com/sustainability
 TOP GLOVE PEOPLE EXCELLENCE CLAPS
Thumbs Up, Ready, 1 2 3
TOP GLOVE
Top Talents

Top Optimization

Top Performance
Claps, 2x 3x 2x
Initiated By: Tan Sri Dr Lim WC @ 13/01/2023
IMPROVE! IMPROVE! IMPROVE!
Prepared By: Ng Kai Yee @ 13/01/2023 Page 27/27