ELECTROELECTROTECH INVESTMENTS LIMITEDTECH INVESTMENTS...

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ELECTROELECTROTECH INVESTMENTS LIMITEDTECH INVESTMENTS LIMITED

3Q FY20073Q FY2007Results PresentationResults Presentation

International Contract Manufacturer to CapitalEquipment and Consumer Industries

International Contract Manufacturer to CapitalInternational Contract Manufacturer to CapitalEquipment and Consumer IndustriesEquipment and Consumer Industries

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This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. Investors canidentify some of these statements by forward-looking items such as ‘expect’, ‘believe’, ‘plan’, ‘intend’, ‘estimate’, ‘anticipate’, ‘may’,‘will’, ‘would’, and ‘could’ or similar words. However, you should note that these words are not the exclusive means of identifyingforward- looking statements. These forward-looking statements are based on current expectations, projections and assumptionsabout future events. Although ElectroTech Investments Limited believes that these expectations, projections, and assumptions arereasonable, these forward-looking statements are subject to the risks (whether known or unknown), uncertainties and assumptionsabout ElectroTech Investments Limited and its business operations.

Some of the key factors that could cause such differences are, among others, the following:

•changes in the political, social and economic conditions and regulatory environment in the jurisdictions where we conduct businessor expect to conduct business;

•the risk that we may be unable to realise our anticipated growth strategies and expected internal growth;

•changes in and new developments in technologies and trends;

•changes in currency exchange rates;

•changes in customer preferences and needs;

•changes in competitive conditions in our customers’ industries and our ability to compete under these conditions;

•changes in pricing for our products; and

•changes in our future capital needs and the availability of financing and capital to fund these needs.

Given these risks, uncertainties and assumptions, the forward-looking events referred to in this presentation may not occur and ctualresults may differ materially from those expressly or impliedly anticipated in these forward-looking statements. Investors are advised

not to place undue reliance on these forward-looking statements.

Investors should assume that the information in this presentation is accurate only as of the date it is issued. ElectroTech InvestmentsLimited’s business, financial conditions, results of operations and prospects may have changed since that day. ElectroTechInvestments Limited has no obligation to update or revise any forward-looking statement, whether as a result of new information,future events or otherwise, except as required by law.

3Q FY2007 Results Briefing

Important Notice

ElectroTech Investments Limited

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Financial ReviewFinancial Review

3Q FY20073Q FY2007

YTD Sept 2007YTD Sept 2007

Business Review and OutlookBusiness Review and Outlook

MechatronicsMechatronics DivisionDivision

EMS DivisionEMS Division

Questions and AnswersQuestions and Answers


AGENDA


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RevenueRevenue

(S$m)(S$m)

Gross Profit

Profit before Tax

Net ProfitNet Profit

64.3 54.464.3 54.4

Net Profit Margin

10.2 12.0

7.4 8.6

6.1 6.36.1 6.3

10% 12%

Effective Tax Rate 18% 26%

3Q FY2007 3Q FY2006 Chg3Q FY2007 3Q FY2006 Chg YoYYoY

18%18%18% MechatronicsDivision’s

revenue growthaffected by

higherproduction

costs and newproduct

introduction aswell as softpricing of

keypads atEMS

MechatronicsMechatronicsDivisionDivision’’ss

revenue growthrevenue growthaffected byaffected by

higherhigherproductionproduction

costs and newcosts and newproductproduct

introduction asintroduction aswell as softwell as softpricing ofpricing of

keypads atkeypads atEMSEMS

-15%-15%

-14%-14%

-4%-4%

-19%-19%

-33%-33%

3Q FY2007 – Financial Highlights



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Sequential Performance



(S$ million)

6.085.86

5.48

7.58

6.356.416.01

51.17

57.3954.43

59.16 56.79

61.4364.29

0

2

4

6

8

10

12

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

0

10

20

30

40

50

60

70

Net Profit Revenue

Caused by volatilityCaused by volatilityof keypad segmentof keypad segment

Structural shift in product mix forlong term stability at EMS Division

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+ 24%

+ 17%

33.9

3.5

10.3%

42.0

4.1

9.7%

Revenue

NPAT

Net ProfitMargin

3Q FY2007 3Q FY2006 % ChangeMechatronics(S$m)

% Contribution toMechatronics Division

30%

36%

27%

% Change

+ 12%

+ 44%

+ 29%

Semiconductor

Medical

Analytical

Revenue Breakdown by Business Segment

+ 8%

- 30%

20.6

3.0

14.7%

22.3

2.1

9.5%

Revenue

NPAT

Net ProfitMargin

3Q FY2007 3Q FY2006 % ChangeEMS(S$m)

% Contribution toEMS Division

48%

7%

18%

11%

% Change

- 22%

- 3%

+ 86%

+ 185%

Telco - Keypad

- Others

Office Automation

Automotive


3Q FY2007 – Division Highlights



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23.7%

19.7%

17.7%

18.8%

6.4%4.0%

9.7%

Revenue Breakdown by Division Revenue Breakdown by BusinessSegment

Semiconductor

Analytical

Telecommunications

Medical

Others

Automotive OfficeAutomation

65.3%

34.7%

Mechatronics

EMS

3Q FY2007 – Revenue Breakdown



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RevenueRevenue

(S$m)(S$m)

Gross Profit

Profit before Tax

Net ProfitNet Profit

182.5 163.0182.5 163.0

Net Profit Margin

30.9 34.7

21.7 24.7

17.4 18.817.4 18.8

10% 12%

Effective Tax Rate 20% 24%

YTD SeptYTD Sept20072007

MechatronicsDivision’s

revenue andnet profit

growth on trackwhile EMS

undergoes shiftin sales mix for

longer termearningsstability

MechatronicsMechatronics

DivisionDivision’’ssrevenue andrevenue and

net profitnet profitgrowth on trackgrowth on track

while EMSwhile EMSundergoes shiftundergoes shiftin sales mix forin sales mix for

longer termlonger termearningsearnings

stabilitystability

-11%-11%

-12%-12%

-7%-7%

-17%-17%

-17%-17%

YTD SeptYTD Sept20062006

Chg YOYChg YOY

12%12%12%

YTD Sept 2007 – Financial Highlights



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+ 22%

+ 24%

103.6

11.0

10.6%

125.9

13.6

10.8%

Revenue

NPAT

Net ProfitMargin

YTD Sept2007

% ChangeMechatronics(S$m)

% Contribution toMechatronics Division

34%

32%

27%

% Change

+ 26%

+ 28%

+ 24%

Semiconductor

Medical

Analytical


- 5%

- 52%

59.4

8.1

13.6%

56.6

3.9

7.0%

Revenue

NPAT

Net ProfitMargin

% ChangeEMS(S$m)

% Contribution toEMS Division

50%

6%

19%

9%

% Change

- 27%

- 25%

+ 52%

+ 150%

Telco - Keypad

- Others

Office Automation

Automotive


YTD Sept2006

YTD Sept2007

YTD Sept2006

YTD Sept 2007 – Division Highlights



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30 Sep 200730 Sep 2007 31 Dec 2006 % Change31 Dec 2006 % ChangeBalance Sheet HighlightsBalance Sheet Highlights (S$m)(S$m)

Shareholders’ Equity 171.3 159.8

Cash & Cash Equivalents * 38.8 46.2

Total Borrowings 1.5 1.0

3.0 17.4Net cash flow from operations

Capital expenditure 5.6 5.7

YTD Sep 07YTD Sep 07 YTD Sep 06YTD Sep 06 % Change% ChangeCash Flow HighlightsCash Flow Highlights (S$m)(S$m)

Balance Sheet HighlightsBalance Sheet Highlights (Days)(Days)

Inventories Turnover

Accounts Receivables Turnover

Accounts Payables Turnover

30 Sep 2007 31 Dec 200630 Sep 2007 31 Dec 2006

87 77

85 75

82 88

* Include short term funds with a financial institution

-83%-83%

-16%-16%

7%7%7%

Financial Highlights



50%50%50%

-2%-2%

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4%4%4%

14.0 17.2ROAE (%) - Annualised

EBIT interest coverage *

Earnings per share (cents)

Net assets per share (cents)

* EBIT interest coverage = Profit before interest & tax / Interest on borrowings

YTD SepYTD Sep 0707

290.2 278.2

5.71 6.16

56.22 49.57

Key Financial IndicatorsKey Financial Indicators

Represented by

Other Assets (78%)43.98 cts

Net Cash (22%)12.24 cts

-7%-7%

-19%-19%

18.7 23.4ROAE (ex-Net Cash) (%) - Annualised

YTD Sep 06YTD Sep 06 % Change% Change

-20%-20%

13%13%13%

Key Financial Indicators



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Business ReviewBusiness ReviewMechatronics DivisionMechatronics Division

Mechatronics DivisionBusiness Review


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13.514.8 15.5

16.8 16.415.7

13.7

15.416.4

18.8

16.7

18.9

20.6 20.8 20.3

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

(Euro millions)

+22%

Mechatronics DivisionSales – Quarterly Performance

2004 2005 2006 2007


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1.4

1.6 1.6 1.6

2.1

1.9

1.3

1.5

1.7

2.1

1.7

2.1

2.32.4

2.0


(Euro millions)

+18%


Mechatronics DivisionNet Profit After Tax – Quarterly Performance

2004 2005 2006 2007

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4.00

4.56 4.705.08

4.58

3.47

2.39

4.22

5.21

6.42

5.56

6.59

7.347.66

6.09


(Euro millions)

+10%

Revenue growth of +10% yoy and -20% over the previous quarter

In line with previous guidance that 2H FY2007 sales expected to be lower than 1H FY2007


Mechatronics DivisionSales Analysis – Semiconductor Segment

2004 2005 2006 2007

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4.01 3.82 3.90

4.53

3.85

4.484.92

6.00

5.025.44 5.23

5.60

6.13 6.06

7.36


(Euro millions)

+41%

Revenue growth of +41% yoy and +21% over the previous quarter

Launched mass production of major project for existing customer


Mechatronics DivisionSales Analysis – Medical Segment

2004 2005 2006 2007

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4.02

4.61 4.75

5.31

6.29 6.22

4.83

3.73

4.44

5.05

4.37

4.84

5.64 5.67 5.48


(Euro millions)

+25%

Revenue growth of +25% yoy and -3% over the previous quarter


Mechatronics DivisionSales Analysis – Analytical Segment

2004 2005 2006 2007

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Mechatronics DivisionCurrent Plans & Development (status update as at Nov 2007)

Expanded Assemblyand Warehouse

Facilities atFrencken

Mechatronics

Fully operational since June 2007

New facility is fully dedicated to the expanding medical business segment

CompletedRenovation and

Expansion ofFrencken Malaysia

Commercial production launch of assembly modules for the medicalbusiness segment has started in Oct 2007, with volume expected to growgradually from 4Q FY2007 onwards

Various new assembly projects are planned to be launched over the nextfew years

Operational andCapital Investments

Upgrading ERP system for optimized planning, inventory control and overalldelivery performance

Expanding “turning” process capacity to fulfill expectations of higherrequirements from existing customer

New investment in sheet metal CNC laser cutting machine to improveproductivity, precision and automation of operations

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Outlook remains good

Revenue in FY2007 expected to be around 15% to 20% higher than FY2006

Near-term concern that weakening USD could translate into selling price pressure


Mechatronics DivisionOutlook for FY2007 (status update as at Nov 2007)

Semiconductor

Sales revenue in 4Q FY2007 is expected to be marginally higher than 3Q FY2007

Revenue in FY2007 to be higher than FY2006

Medical

Strong growth in 3Q FY2007 is expected to continue into 4Q FY2007

Orders for a new customer and mass production launch of a major project for an existing customer

Revenue in FY2007 expected to be significantly higher than FY2006

Analytical

Current visibility indicates revenue in 4Q FY2007 to be at similar level to 3Q FY2007

Revenue in FY2007 to be higher than FY2006

Based on current visibility,

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To be the first choice design, development and production partner of highaccuracy industrial systems/equipment for OEMs

To do our utmost to enable our clients to be successful in their market

Mission Statement

Strategy

Market Focus:

Semiconductor Medical Analytical Others – such as energy and environment

Sustainable revenue growth of 10% to 20% year-on-year

Growth based on development and re-engineering products for existing and new customers Focus on assembly projects to expand revenue, while increasing outsourcing of machined components

Focus on the 3 Best OEM companies in each business and market segment

Aim to be the Best in Class Mechatronics company and stay ahead of our competitors


Mechatronics DivisionBusiness Strategy

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EMS Division

Business ReviewBusiness ReviewEMS DivisionEMS Division


EMS DivisionBusiness Review

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22.2

35.839.5

42.3 41.3

51.5

46.8 46.642.9 44.3

46.7 48.2

33.8

41.3

49.6


(RM millions)

+6%


EMS DivisionSales – Quarterly Performance

2004 2005 2006 2007

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0.4

4.3

7.6 7.7

5.9

7.4

8.9

7.7

6.7

5.3

7.4

8.1

2.0 2.0

4.9


(RM millions)

-34%


EMS DivisionNet Profit After Tax – Quarterly Performance

2004 2005 2006 2007

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7.30

20.14

23.72

25.53

23.20

28.23 28.54

30.88

28.98 28.75

31.66 32.71

20.9319.33

24.43


(RM millions)

-23%

Dip of 23% yoy and +26% as compared to the previous quarter

Improved turnover over the previous quarters of 2007 but market conditions remainchallenging due to volatile revenue, short visibility and lower margins


EMS DivisionSales Analysis – Keypad Segment

2004 2005 2006 2007

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9.13

7.45

8.72

9.74

11.82

14.82

9.53

3.33

5.48 5.415.16

6.40

4.97

9.68 9.40


(RM millions)

+82%

Revenue growth of 82% yoy and -3% as compared to the previous quarter

Revenue growth in FY2007 derived from existing products and customers


EMS DivisionSales Analysis – Office Automation Segment

2004 2005 2006 2007

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ContinuousUpgrading of

Facilities to matchFuture Business

Needs

New final test and assembly area with ESD flooring completed in October 2007.

Planning further expansion of the assembly area to cater for expected growth of

electro-mechanical products in the coming years.

New production area for “sputtering” process expected to be completed andoperational by December 2007.

IntegratedManufacturingServices (IMS)

Capital Investmentsto Expand our

Service Offerings


EMS DivisionCurrent Plans & Development (status update as at Nov 2007)

Target date of official integration may be delayed, subject to readiness of theERP system.

Completed consolidation of the Technical & Engineering departments which areundergoing expansion to cater for new projects in the automotive and officeautomation business segments.

Supply Chain, Human Resource and Quality Departments – transiting towardsthe consolidated group structure.

Two (2) units of sputtering machines together with supporting facilities will becommissioned and tested in Dec 2007/Jan 2008. Commercial productionscheduled to commence in 1QFY2008.

Additional 2 units of double injection moulding machine commissioned in earlyNovember 2007 (bringing the total no. to 4) to cater for additional demand fromthe automotive business segment.

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FY2007 revenue estimated to be lower than FY2006

Current visibility indicates 2H FY2007 revenue to be higher than 1H FY2007

Keypads

Anticipate slight improvement in sales revenue in 2H FY2007 as compared to 1H FY2007

Revenue in FY2007 estimated to be about 25% lower than FY2006

Envisage a more stable start in 1H FY2008 based on new models secured/under negotiation

Office Automation

Automotive


EMS DivisionOutlook for FY2007 (status update as at Nov 2007)

Revenue in FY2007 expected to be higher than FY2006

Mass production of one current development project to launch in Dec 2007.

New industrialisation programmes in the pipeline

Optimistic of longer term growth prospects

Steady revenue growth in FY2007, compared to FY2006

Progressive mass production launch of various new projects over the next 12 months will enhance revenuegrowth in 2008 and beyond

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To be the first choice supplier to our customers

Continuously strive to be the Best in Class in the markets we operate in

Mission Statement

Strategy

Market Focus:

Telecommunications Office Automation Automotive

In the midst of transition to achieve longer term stability

Continued focus on the automotive and high end office automation business segments requires longer industrialisation and qualification period for stable revenue and longer product life cycles

Shaping these two segments as the key growth drivers of the EMS Division in coming years

Short term decline – transiting to longer term stability


EMS DivisionBusiness Strategy

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EMS DivisionProgressive Shift in Revenue Mix (status update as at Nov 2007)

3.4%

12%19.2%

65.4%

FY2006 (Actual) FY2010 (Projected)

Keypads

OthersOA

Automotive

Keypads

Automotive

Others

OA

FY2007 (Estimated)

Keypads

Others

OA

Automotive

~ 50%

~ 10%

~ 20%

~ 30%

~ 20%

~ 20%

~ 30%

~ 20%

ENHANCE LONG-TERM STABILITYWITH A MORE BALANCED

REVENUE MIX

ENHANCE LONG-TERM STABILITYWITH A MORE BALANCED

REVENUE MIX

TRANSITIONALDIP

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EMS DivisionProjects in OA and Automotive segments

Some of the industrialisation programs include :

2008 2009 20102007

OA #1

OA #2

RM 15 – 20 million

RM 4 - 5 million

OA #3RM 14 - 17 million

RM 20 - 22 million

OA #4RM 10 – 12 million

Auto #1

RM 6 – 8 millionAuto #2

RM 12 – 14 million

Auto #3

ProductLife Cycle

5-7 years

5-7 years

5-7 years

5-7 years

5 years

3-5 years

5 years

*Estimated start of production and revenues are subject to change

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ThankThank YouYou

ElectroTech Investments LimitedEnd of Presentation


Investor Relations ContactOctant Consultingtel (65) 6220 [email protected] or [email protected]

ElectroTech Investments LimitedPlot 410, Lorong Perusahaan 8BPrai Industrial EstatePrai 13600, MalaysiaWebsite : www.electrotechgroup.com

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