Slides
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Hartalega FY 2027 1st Quarter Financial Results Hartalega Hartalega Holdings Berhad Analyst Briefing 4 August 2026 Staying the Course
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2 This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega. FY2027 Q1 Financial Results Overview Q1 FY27 Q4 FY26 Q1 FY26 YoY Sales Volume Utilisation Rate RM’mil Revenue Operating Profit Profit before tax Profit after tax % of Revenue OP Margin EBITDA Margin PBT Margin PAT Margin Revenue Performance: FY27Q1 revenue growth by 18% as compared to LQ despite volume decreased by 7% mainly driven by higher ASP resulting from Middle East conflict. Margin growth in both QoQ and YoY, driven by: 1. Higher ASP 2. Effective cost optimisation 3. Improved production efficiencies benefited from the ongoing automation projects. 4. Higher plant utilisation after hibernated plant 3 and 4. Strong Earnings From Higher ASP and Cost Optimisation QoQ 5.9 bil 65% 606 80 90 70 13% 21% 15% 12% 6.3 bil 70% 515 34 50 40 7% 15% 10% 8% (7%) (5%) 18% 135% 81% 75% 6.6pts 5.8pts 5.2pts 3.8pts 5.9 bil 67% 553 8 14 12 1% 10% 3% 2% 0% 2.0% 10% 938% 531% 468% 11.8pts 11.2pts 12.3pts 9.3pts
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3 This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega. FY2027 Q1 Key Financial Highlights Higher revenue from higher ASP ▪ Volume: 5.9 bln pcs QoQ volume declined by 7% ▪ ASP improved by 27% QoQ Robust Profit before Tax ▪ Improved cost efficiency and ongoing cost optimisation. ▪ Favourable foreign exchange results Profitability growth ▪ QoQ EBITDA increased to RM128 million from RM91 million (EBITDA margin of 21%) Strong liquidity position ▪ Strong net cash position RM1.1 billion as at end Jun’26 1 2 3 4
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4 This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega. Dividend per share (sen) Defending Profitability Amid Price and Cost Pressures to Uphold 60% Dividend Commitment 8.20 FY20 7.75 FY21 50.95 FY22 57.00 FY23 0.35 FY24 11.41 FY25 1.80 FY26
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5 This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega. Glove Sector Outlook Geopolitical tensions affecting market recovery
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6 This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega. Tariff-Driven Surge: Pre-emptive buying by US customers spiked demand in late 2024. Steady Demand: Market stabilising above pre- pandemic levels as inventory restocking continues. 2026 Growth Catalyst: 1H CY2026 demand set to rise, fueled by global healthcare recovery. Supply Chain Risk: Middle East tensions present a significant downside risk, as surging nitrile feedstock prices and shipping delays impact operational margins. Resilient Outlook: Long-term structural growth remains intact at a healthy ~6% CAGR. Global demand outlook Front Loading 367 384 3362022 2892023 3572024 3172025 330FC26 349FC27 (Source: International Trade Center and internal projection) Global Glove Volume (billion pieces) 370FC28
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7 This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega. Outlook: Navigating Growth Amidst Volatility Sustainable Recovery Ongoing Challenges Operating at Near-Full Capacity: Demand remains robust with utilisation rates consistently at 96% (excluding hibernated Plants 3 & 4). Market Share Expansion: Malaysian manufacturers continue to gain ground in the U.S. market Cost Leadership: combination of high utilisation, enhanced production efficiencies, and automation is driving down unit costs that provides the agility required to navigate market volatility effectively. Managing Cost-Price Dynamics: Geopolitical tensions have driven up raw material costs. Concurrently, a rapid correction in ASPs has outpaced the adjustment cycle of material input costs, putting temporary pressure on margin. Managing Input Uncertainty: Present significant cost volatility due to geopolitical instability. We remain focused on navigating these unpredictable price movement through agile procurement and proactive risk management to mitigate margin erosion.
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8 This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega. NGC Focusing on Key Priorities in Our Profitablity Transformation
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9 This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega. From Stability to Profitability Plant 9 Milestone: Now fully online, leveraging automation and vision systems to drive higher yields and lower labour costs. Smart Capacity Growth: Labour savings from Plant 9 are being utilised to restart and upgrade Plant 3. Plant 3 had three lines installed with the latest technology and automation. Bottom-Line Focus: Strategy aimed at structural cost reduction and sustained margin improvement. Installed capacity Current : 37 billion pcs p.a Scaling Automation and Process improvement to drive Cost Competitiveness
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Thank You