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ASIAN MICRO

Asian Micro Holdings Ltd( Company Registration No. 199701052K )

Analysts’ Briefing1H FY05 / Business Update

Tapping new frontiers in

plastics re-use and recycling

31 January 2005

ASIAN MICRO

Panelists

• Pang Kim HinChairman, Non-Executive Director

• Victor LimCEO & Group Managing Director

• Fiona LeeFinancial Controller

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ASIAN MICRO

Highlights

• Completed a strategic shift from Flexible Circuit Board Assembly (“FCBA”) to new core business with strong environmental protection focus

• Now offer total solutions in plastic packaging recycling – from collection, cleaning / washing, recycling, to end-products manufacturing

• Moving up the value chain, with higher margin businesses

ASIAN MICRO

Highlights

We are riding on an international trend of:

• growing demand for HDDs, and

• increasing need from HDD and semicon players to have eco-friendly, cost-efficient programmes to dispose of and manage packaging materials

Going forward:

• we have “wiped the slate clean” in 1H05, implemented first stage of transformation and completed write-offs begun over a year ago

• Generating profit from operations (and not exceptional items)

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ASIAN MICRO

Highlights

1H05 Results

• Turnover fell 14% to S$15.07m• Net profit up 223% to S$1.66m• Backed by strong profit from operations which rose 164% to S$1.82m

• Gearing fell 65% from 1.73x to 0.61x• Write-offs of S$0.3m for 1H05 compared to S$6.5m written off between FY03 and FY04

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ASIAN MICRO

1H Financial Performance1H Financial Performance1H Financial Performance1H Financial Performance

6 Months Ended 31 Dec 046 Months Ended 31 Dec 046 Months Ended 31 Dec 046 Months Ended 31 Dec 04

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Turnover

17.4717.4717.4717.47 15.0715.0715.0715.07

12.5012.5012.5012.50

0

5

10

15

20

25

30

35

FY04FY04FY04FY04 1H051H051H051H05

2H Results2H Results2H Results2H Results

1H Results1H Results1H Results1H Results

29.9729.9729.9729.97

S$S$S$S$’’’’mmmm

(14%)

ASIAN MICRO

Net Profit attributableto Shareholders

0.510.510.510.51

1.661.661.661.66

1.071.071.071.07

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

FY04FY04FY04FY04 1H051H051H051H05

2H Results2H Results2H Results2H Results

1H Results1H Results1H Results1H Results

1.581.581.581.58

S$S$S$S$’’’’mmmm

223%

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ASIAN MICRO

Profit from Operations

0.690.690.690.69

1.821.821.821.82

0.040.040.040.04

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

FY04FY04FY04FY04 1H051H051H051H05

2H Results2H Results2H Results2H Results

1H Results1H Results1H Results1H Results

S$S$S$S$’’’’mmmm

0.730.730.730.73 164%

ASIAN MICRO

Improving Margins

Margins

8.53%

7.95%

3.62%

28.06%

2H04

11.01%2.94%Net Profit

11.33%2.53%PBT

12.09%1.59%Profit from

Operations

29.58%19.47%Gross

1H051H04

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ASIAN MICRO

Turnover by Activity

Tray Recycling

80%

Trading 7%Manufacturing

13%

1H FY05

Tray Recycling

70%

Trading 6%Manufacturing

24%

1H FY04

ASIAN MICRO

Malaysia 9%

Thailand 7%

China / Hong

Kong 4%

USA 9%

Others 1%Singapore 70%

Turnover by Country

1H FY05

1H FY04

Malaysia 6%

Philippines 1%

Thailand 10%

Hong Kong 2%

USA 3%

Others 1%

Singapore 77%

Turnover is based on the location of customers regardless of where the goods are produced.

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ASIAN MICRO

Financial Ratios / Statistics

0.58 cent0.22 centEPS (fully diluted)

8.40%1.85%ROTA

18.28%9.67%ROE

0.601.73Total Debt / Equity

Profitability

Cash Flow

$0.63 m$1.60 mNet cash generated from operating activities

3.07 cents1.97 centsNTA

1.370.93Current Ratio

Balance Sheet

1H051H04

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ASIAN MICRO

How we did it:How we did it:How we did it:How we did it:

A change in core businessA change in core businessA change in core businessA change in core business

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2. Collect, clean room wash and recycle

� Vacuum Formed Trays

� Injection Mold Trays

� Media Cassettes

Our Core Business Activities

We provide plastic waste environmental management solutions

and manufacture clean room packaging products

1. Collect and re-use packaging materials

� Pallets

� Edge protectors

� Foam boxes

Finished Goods Foam Box

CassettesTrays

3. Manufacture clean room grade packaging (end-products)

� clear Amide and Silicon Free LDPE/HDPE packaging bags

� ESD Bags

� Aluminium Moisture Barrier Bags

� Stretch films

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Rationale for Transformation

• Enhanced profit margins vs. FCBA– Intense competition in HDD– “Secondary” business was profitable– Decision to shift business focus from Aug 2003 with better results in 1H05

• Strong potential for growth– Increasing environmental awareness offer opportunities for recycling– Recycling – not a cost centre

• Relatively low CAPEX investment– Use of existing precision tray recycling equipment and clean room facilities– A workforce well-suited for visual inspection work needed in assessing suitability for re-use / recycling

• Low collection risks

• Complete phase out and write-off of FCBA related business as 1H05

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3a. Tray Washing (Conveyorised)

4. Final ProductsWashed trays and media

cassettes have to undergo

a sampling audit, vacuum

sealing under Class 100

and packing into carton

boxes.

2. Visual Inspection100% pre-washing

screening is conducted.

Specification is per

customer’s QCIC and

requirements.

3b. Media Cassette Washing ( Ultrasonics )

Tray & Media Cassette Recycling

1. Collection

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Extruding of cleanroom packaging tubing

Sealing and Cutting of bags to correct sizes

Raw Materials(Resin material)

Cleanroom Bags(Finished Goods)

Clean Room Packaging Manufacturing

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ASIAN MICRO

Our Regional Network

Asian Micro (Thai) Co. Ltd.140 Moo 16 Bangpa-in Industrial Estate,

T.Bangkrasan, A. Bangpa-in, Ayutthaya

Thailand 13160

Tel: +66-35-258 998 / 258 999

Fax: +66-35- 258 996 / 258 991

Head OfficeAsian Micro (S) Pte LtdImpact Polythene Pte Ltd3 Tech Park Crescent,

Singapore 638129

Tel: +65-6862 7777Fax: +65-6862 6277

Asian Micro Technology (Suzhou) Co., LtdBuilding 1A, Export Processing Zone,

No. 200 Su Hong, Middle Road,

Suzhou Industrial Park

Suzhou P.R. China 215021

Tel: +86-512-6258 6877

Fax: +86-512-6258 6377

Shenzhen Bige Industrial Co., Ltd.Blg 10, Century Industrial District, Er Gong

Ling Ping Hu, Long Gang, Shenzhen,

China P.C.518111

Tel: +86-755-8401 2368

Fax: +86-755-8401 2398

ASIAN MICRO

Machine & Facility Capabilities

DI Water Plant

Ultrasonic Cleaning System Machine

Horizontal Loading Tray Cleaning System

Clean RoomTray Washing

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ASIAN MICRO

Machine & Facility Capabilities:Bag Manufacturing

LDPE Extrusion Machine

HDPE Extrusion Machine

Cutting Machine 2-Side Seal Machine

• 5 units of extrusion machine for LDPE

• 5 units of extrusion machine for HDPE

• 7 units of cutting machine

• 1 unit of 2-side seal machine

• 1 unit of 3-side seal machine

3-Side Seal Machine

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Products

Cassettes Trays Finished Goods

PalletsEdge Guard / Foam Box Carton Box

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ASIAN MICRO

Recent DevelopmentsRecent DevelopmentsRecent DevelopmentsRecent Developments

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Recent Developments

October 2004 to January 2005

July 2004 to January 2005

Fire at WuxiPlant

July 2004

JV with Shenzhen BIGE

Oct 2004

Increased stake in Micro BriteTechnology

Dec 2004

World Circuit Technology

Jan 2005

Proposed JV –Plastic Image

Jan 2005

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ASIAN MICRO

Shenzhen BIGE Industrial Co., Ltd.

� Volume manufacturing of precision disk cassettes for use in HDD:�In-process cassettes�Disk substrate cassettes�Magnetic disk cassettes�Storage cassettes for rejected disks

Growth Prospects� Existing contract to produce over 5m sets of cassettes worth S$17m over next 3 years

� Implement lease and buy-back programme in the future� Expect positive contribution from JV in the next 12 months

Core Business

Joint Venture

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Micro Brite Technology Pte Ltd

� Collection and cleaning of used clean room packaging trays, media cassettes and other packaging materials for customers in China.

Growth Prospects�We expect positive contribution from Micro Brite in the next 12 months.

Core Business of Subsidiary

Increased stake from 30% to 51%

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ASIAN MICRO

World Circuit Technology Pte Ltd

� Recover plastic waste and convert it into usable plastic resins� Begin by recovering plastic waste from trays recycling and cleanroom plastic packaging

Growth Prospects� Plan to recover and convert about 1,000 tons of waste in the next 12 months

� Expect positive contribution in the next 12 months

Core Business

Entering new business of Plastic Materials Recovery

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Plastic Image Pte Ltd

�Manufacturing of industrial packaging materials and products forlogistics companies, HDD and and semicon industries

�Manufacture environmentally friendly packaging materials, eg. stretch films

Growth Prospects� Expect positive contribution from Plastic Image in the next 18 months

Core Business

Proposed Joint Venture

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ASIAN MICRO

Looking Ahead

ASIAN MICRO

Industry Trends: Strong Demand for HDD

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

2003

Act.

2004

Fct.

2005

Fct.

2006

Fct.

2007

Fct.

(Units / Millions)

Traditional 3.5" Traditional 2.5" Traditional 1.8" Traditional <=1.0"

CE 3.5" CE 2.5" CE 1.8" CE <=1.0"

CAGR – 2003-2007(Traditional & CE)

3.5” - 9.3%2.5” - 22.2%1.8” - 44.5%<=1.0” - 89.4%Total - 13.2%

Growth inConsumerElectronics

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

2003

Act.

2004

Fct.

2005

Fct.

2006

Fct.

2007

Fct.

(Units / Millions)

CAGR = 91.1%

Source : Trend Focus

CAGR =

13.2%

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Industry Trends:Rising Environmental Consciousness

Source : The ISO Survey of ISO 9000 and ISO 14001 Certificates, 2003

ASIAN MICRO

Overview of Recycling in the HDD Industry

• We expect an increase in demand for HDD to lead to a corresponding increase in demand for our plastic packaging re-use and recycling services

– Production uptrend from major HDD manufacturers worldwide• Trickle down effect on media industry

– Rising costs of raw materials in HDD industry• Resin, metal prices have increased more than 20% in the last 2 years• HDD trays & cassettes prices have increased approximately 15%• Shortage of resin due to demand from China

– Significant savings in packaging costs through competitive recycling

• Savings range from 30% - 60%

– Rising environmental consciousness• Going green and recycling is become more widespread• ISO 14000 certifications hit a record 66,070 in 113 countries last year.

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Growth Strategies

• Proactive and aggressive marketing strategies

– To promote AMH products and services in all markets

• Continued focus on quality standards

– Optimise recovery of used packaging materials

• Penetration to Japanese HDD manufacturers

– via Japanese suppliers of major US-based HDD manufacturers

• Increased business volume from China and Thailand

• Collaboration with prime tray manufacturers for new business

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Future Plans

• Seek to further integrate core business

• Seek to form partnerships for future expansion

• New business areas expected to contribute positively to growth

– Manufacture of precision disk cassettes (“Shenzhen BIGE”)

– Convert plastic waste into usable plastic resins (“WCT”)

• Establish four areas of growth by end FY05

– Precision Tray and Cassettes Cleaning

– Manufacturing of Clean Room Bags and Cassettes

– Plastic Material Recovery

– Trading (of scrap plastic waste)

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New Business & Prospects

• Precision Tray and Cassette Cleaning– FY04 – Cleaned more than 2m sets of cassettes– 1H05 – Cleaned more than 2m sets– 2H05 – Target to clean more than 5m sets

• Manufacturing of Clean Room Bags and Cassettes– Expect minimum of 10% growth in contribution from JV with Shenzhen BIGE in the next 12 months

– Expect positive contribution from Plastic Image in the next 18 months

• Plastic Material Recovery– Expect positive contribution from WCT in next 12 months

• Expect net margins to improve over next 12 to 24 months

• Overall FY05 performance to be significantly better than FY04

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Q&AThank you