Annual General Meeting FY2013

28 October 2013

MICRO-MECHANICS(HOLDINGS) LTD.

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3.00 pm – 3.20 pm : Presentation

3.20 pm – 3.30 pm : Q&A

3.30 pm – 4.30 pm : AGM Proceedings

4.30 pm : End of AGM

Agenda

CORPORATE HIGHLIGHTS

Mr. Chris Borch, CEOMr. Low Ming Wah, COO

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Corporate Overview

• Founded in 1983 in Singapore by CEO Chris Borch

• Listed on the Singapore Exchange (Main Board) since 2003

• Design and manufacture high precision tools, parts and assemblies for the semiconductor, medical, aerospace and other high technology industries

• Serve a worldwide base of customers from six facilities in Asia and the USA

• Semiconductor tooling business serves nearly all the chip manufacturers/assembly and test companies

• Committed to generating shareholder returns

“Perfect Parts and Tools. On-Time, Every Time”

5

Worldwide markets | Asia and USA bases

Year-on-Year Growth

Global Customer Base:China

MalaysiaUSA

EuropePhilippines

TaiwanSingaporeThailand

Japan

6

High Precision Tools for Semiconductor A&T

BROAD PRODUCT RANGE backed by strong proprietary know-how

RAISING BARRIERS from developing finer tools in line with chip package miniaturization

CONSUMABLE PRODUCTS require regular replacement

HUNDREDS OF CUSTOMERSin chip assembly & testing sector

FOCUS ON CYCLE TIMEfrom customer inquiry to delivery

Rubber and Plastic Pick-up TipsEjector Needles & Needle HoldersDispensing Nozzles

Wire bond clampsWedgesWire cuttersElectronic Flame Offs

DIE-ATTACH

WIRE-BONDING

Die collets / ultra-fine tools with small holes from 0.10mm and features from 0.05mm. For eutectic die attach, MEMS.

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Custom Machining & Assembly (CMA)

Year-on-Year Growth

Precision and complex parts / assemblies for Tier-1 capital equipment manufacturers

Semiconductor / Wafer Fabrication

Laser

Medical

Aerospace

24/7 MACHININGMaximising 168 available hoursZero online tool and fixture set-upRepeatable processes

INCREASED COMPETITIVENESSto meet customer needs’ in volatile marketplace

DIVERSIFICATIONinto other high-tech industries

GREATER REVENUE SCALABILITYthan semiconductor tooling business

24/7 MACHINING LINEFactory in the USA

Semiconductorindustry

CUSTOMER DIVERSIFICATION

8

Industry Landscape – Global Chip Industry

Year-on-Year Growth

-10%

-5%

0%

5%

10%

15%

21.0

22.0

23.0

24.0

25.0

26.0

27.0

Jan-

11

Feb

-11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Source: Semiconductor Industry Association

Glo

bal m

onth

ly c

hip

sale

s (U

S$

billi

on) Y

ear-on-Year G

rowth

Jan to June 13 sales up 1.5% yoy; Chip sales continued to improve in July and August 2013

9

Consistent Efforts to Build Value

PRODUCTDevelopment

SERVICE

MARKETINGCUSTOMER VALUE

PRODUCTIVTYIN PEOPLE

MULTI-DIRECTIONALBusiness Planning

STRATEGICThinking and Planning Skills

HIGHER AUTOMATION

OPTIMAL SIZE of Skilled Personnel

24/7 FUNDAMENTALS

IMPROVEQuality, Cost and Cycle Time

based on scalable, repeatable and cost-effective processes

Perfect Parts and Tools, On-Time, Every Time

10

Consistent Efforts to Build Value

CMAR&D PROJECT Developing 24/7 Machining

REACHED KEY MILESTONE with 100 parts engineered for production on new 24/7 Machining Line

RANKED AS BEST SUPPLIER by a key customer

APPLY R&D KNOWLEDGEto factories in Asia to enhance productivity

Semiconductor Tooling

meet ing market need forFAST, FLEXIBLE AND

COST-EFFECTIVE MACHINING

Achieve higher level of AUTOMATION AND IMPROVED production processes

Optimizing headcount

594

508

471

415

343

318

Jun-11

Jun-12

Jun-13

Production headcount Total heacount

LATEST UPDATES

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Shareholder Value

0.81.2

2.4

3.5

5.0 5.0

2.0

3.0 3.0 3.0 3.0

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

8

9

10

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Special dividend

Final dividend

Interim dividend

Dividend per share (cents)

NTA + cumulative dividend

TOTAL DIVIDENDS OF 31.9 CENTS PER SHARE SINCE LISTI NG(~S$44.2 million in total)

NTA and cumulative dividend per share (cents)

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Corporate Transparency

SINGAPORE CORPORATE AWARDS (companies with market cap of less than S$300M)

2013 Best Investor Relations Award (Silver)2012 Best Managed Board (Gold)2012 Best Investor Relations Award (Silver)2011 Best Investor Relations Award (Silver)2010 Best Investor Relations Award (Bronze)2008 Chief Financial Officer of the Year (Sesdaq)

SECURITIES INVESTORS ASSOCIATION SINGAPORE

2011 Most Transparent Company (Mainboard Small Caps )2010 Most Transparent Company (Mainboard Small Caps )2009 Most Transparent Company (Mainboard Small Caps )2008 Most Transparent Company (Mainboard Small Caps )2006 Corporate Governance Award (Sesdaq)2005 Most Transparent Company (Sesdaq) 2005

ASIAMONEY CORPORATE GOVERNANCE POLL

2010 Best for Shareholders' Rights and Equitable Tre atment in Singapore

2009 Best for Shareholders' Rights and Equitable Tre atment in Singapore

FORBES

2006 Asia 200 Best Under A Billion Companies

GTI - RANKED 18 th

out of 664 listed companies on the SGX

FINANCIAL REVIEWMr. Chow Kam Wing, CFO

14FY: Financial year ending 30 June

Group Revenue

11.7 9.3 11.7 10.4 9.9 11.1

9.09.8

11.48.7 9.3

5.4 10.1

11.1

9.4 9.2

7.0

11.8

11.1

10.3 10.8

0

40

80

120

160

200

240

280

320

0

10

20

30

40

50

60

FY2009 FY2010 FY2011 FY2012 FY2013 1Q14

4Q

3Q

2Q

1Q

33.1

41.0

45.3

38.8 39.2

Group Revenue (S$M)

Global Chip Sales Trend (US$B)

STEADY SALES IN FY2013; 1Q14 SALES UP 12.0%

24.332.9

37.032.5 33.8

9.4

8.8

8.18.3

6.3 5.4

1.7

0

10

20

30

40

50

60

FY2009 FY2010 FY2011 FY2012 FY2013 1Q14

CMA

SemiconductorTooling

Revenue Drivers

Global Chip Sales Trend according to FY. Data from Semiconductor Industry Association (SIA)

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8.2 7.7 9.6 8.8 8.6 9.4

6.4 8.09.5

7.4 8.13.9

8.09.0

7.7 7.85.8

9.2

8.9

8.6 9.3

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

4Q

3Q

2Q

1Q

24.3

32.937.0

32.5 33.8

(S$ mil)

Quarterly Revenue By Business SegmentsTOOLING AND CMA SALES IMPROVED IN 1Q14

3.41.6 2.0 1.6 1.3 1.7

2.6

1.8 2.01.4 1.2

1.6

2.12.1

1.61.5

1.2

2.6 2.2

1.71.4

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

8.88.1 8.3

6.35.4

Semiconductor Tooling CMA(S$ mil)

Semiconductor tooling business Sales in FY2013 and 1Q14 improved in tandem with industry recovery

CMA business Sales in FY2013 affected by slower business conditions. Revenue recovered in 1Q14 on the back of higher customer orders

0%

20%

40%

60%

80%

100%

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

CMA

SemiconductorTooling

Percentage of Revenue

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Revenue by Geographical Market

Singapore, 6%

Malaysia, 23%

Philippines, 9%Thailand,

5%

China, 21%

USA, 15%

Europe, 5% Japan, 3% Taiwan, 10%Rest of

world, 3%

Sales Breakdown for FY2013

DIVERSIFIED REVENUE STREAMS

MAJOR MARKETS FOR SEMICONDUCTOR

TOOLING

KEY MARKET FOR CMA

Sales Breakdown for 1Q14

Singapore, 8%

Malaysia, 22%

Philippines, 9%Thailand,

5%

China, 24%

USA, 14%

Europe, 6% Japan, 2%Taiwan, 8%

Rest of world, 2%

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Gross Profit Margin

38.8%

47.5%

45.9%

46.3%

49.1%

51.3%

0% 10% 20% 30% 40% 50% 60%

FY2009

FY2010

FY2011

FY2012

FY2013

1Q14

Group GPM

54.2%

59.2%

53.7%

53.4%

55.8%

56.7%

-3.8%

-0.4%

11.3%

9.7%

6.3%

20.7%

-10% 10% 30% 50% 70%

FY2009

FY2010

FY2011

FY2012

FY2013

1Q14

CMA

Semiconductortooling

GPM by Business Segments

Semiconductor toolingGPM improved to 55.8% in FY2013 and 56.7% in 1Q14 despite the constant price pressures typical of the industry

CMA FY2013 GPM affected by low capacity utilisation1Q14 GPM improved to 20.7% due to increased sales and improved productivity

MARGIN EXPANSION IN FY2013 AND 1Q14

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Group Net ProfitFY2013 PROFIT INCREASED 21.4%. 1Q14 PROFIT JUMPED 83.9%

2.11.4 2.0

1.2 1.22.2

0.20.7

1.8

0.7 1.0

-1.4

1.3

1.6

0.91.4

-0.4

1.4

1.4

1.4

1.5

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

4Q

3Q

2Q

1Q

0.5

4.8

6.8

4.2

5.1

(S$ mil) Net Profit After Tax

34.1%

31.2%

26.8%

31.4%

31.4%

27.0%

0% 10% 20% 30% 40%

FY2009

FY2010

FY2011

FY2012

FY2013

1Q14

Operating Expenses - Administrative, distribution and other operating expenses (inclusive of other income)

Operating Expenses / Revenue

Operating expenses / revenueExpense ratio declined in 1Q14 due to tight rein on expenses, coupled with increased sales and other income

Net profitFY2013 profit improved on higher GPMIncrease in 1Q14 profit due mainly to higher sales and GPM

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Operating Cash Flow and CAPEX

4.1

8.7 8.7 8.9 8.8

2.2

0

2

4

6

8

10

FY2009 FY2010 FY2011 FY2012 FY2013 1Q14

(S$ mil)

3.03.6

6.7 6.5

2.6

0.3

2.93.5

6.4 6.2

1.6

0.10

1

2

3

4

5

6

7

8

9

10

FY2009 FY2010 FY2011 FY2012 FY2013 1Q14

Capex Net Capex

(S$ mil)Track record of healthy

operating cash flow CAPEX

Net Capex – Capex less proceeds from disposal of fixed assets

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30 Sep 2013 30 June 2013

Cash Cash and cash equivalents S$11.2M S$9.2M#

Gearing Total borrowings Nil Nil

Trade Receivables

(Outstanding > 90days) / Total trade receivablesBad debt expense

0.2%S$8k

0.2%Nil

Inventory Inventory / Sales Inventory write-off

5.0%S$21k

5.5%S$72k

Equity Shareholders’ equityNAV per share

S$39.6M28.52 cents

S$37.9M#

27.29 cents#

# Paid dividends of S$4.2M (Final dividend for FY2012 and interim dividend for FY2013)

Balance Sheet

OUTLOOKMr. Chris Borch, CEOMr. Low Ming Wah, COO

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Industry Outlook

Global Chip Sales (US$ mil) Growth

0

100000

200000

300000

400000

2012 2013 2014 2015

IntegratedCircuitsSensors

Optoelectronics

291,562 297,766 312,906 324,903

WSTS Spring 2013 Forecasts

2.1% growth in 2013

5.1% growth in 2014

3.8% growth in 2015

“Global semiconductor sales have now increased for six consecutive months, and the industry is well ahead of last year’s pace, thanks largely to sustained growth in the Americas…… but this week’s government shutdown and a looming debate over the nation’s debt limit threaten to destabilize the economy and disrupt growth,”

-- SIA Press Release, 4 October 2013

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

0

100000

200000

300000

400000

2012 2013 2014 2015

Asia Pacific

Japan

Europe

Americas

Year-on-YearGrowth

291,562 297,766 312,906 324,903

Sources: Semiconductor Industry Association, World Semiconductor Trade Statistics

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Group Outlook and Plans

OPERATING ENVIRONMENT REMAINS VOLATILE • External headwinds and limited business visibility• Sluggish semiconductor industry growth• Cost, price and delivery lead time pressures

CMA • Developing new knowledge and improving unique

recipe for repeatable, scalable and cost-effective machining

• Building stable customer base in USA

SEMICONDUCTOR TOOLING• Shifting towards automated processes

• Leverage strengths in proprietary design and materials to develop consumable tools for changing market needs

PLANNED CAPEX• Around S$4M for FY2014

• Invest in additional equipment to enhance automation

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This presentation contains certain statements that are not statements of historical fact, i.e. forward-lookingstatements. Investors can identify 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 thatthese words are not the exclusive means of identifying forward-looking statements. These forward-looking statementsare based on current expectations, projections and assumptions about future events. Although Micro-Mechanics(Holdings) Ltd. believes that these expectations, projections, and assumptions are reasonable, these forward-lookingstatements are subject to the risks (whether known or unknown), uncertainties and assumptions about Micro-Mechanics (Holdings) Ltd. 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 weconduct business or 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 the semiconductor industry 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 notoccur and actual results may differ materially from those expressly or impliedly anticipated in these forward-lookingstatements. 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. Micro-Mechanics (Holdings) Ltd.’s business, financial conditions, results of operations and prospects may have changedsince that day. Micro-Mechanics (Holdings) Ltd. 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.

Safe Harbour for Forward-Looking Statements

Micro-Mechanics31 Kaki Bukit PlaceEunos TechparkSingapore 416209www.micro-mechanics.com

Investor Relations ContactOctant ConsultingTel (65) 6296 3583herman@octant.com.sg / lisa@octant.com.sg

MICRO-MECHANICS(HOLDINGS) LTD.