FY2013 Results Briefing

30 August 2013

MICRO-MECHANICS(HOLDINGS) LTD.

CORPORATE HIGHLIGHTS

Mr. Chris Borch, CEO

Mr. Low Ming Wah, COO

3

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”

4

Worldwide markets | Asia and USA bases

Year-on-Year

Growth

Global Customer Base:China

MalaysiaUSA

EuropePhilippinesTaiwan

SingaporeThailandJapan

5

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.

6

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 LINE

Factory in the USA

Semiconductor

industry

CUSTOMER DIVERSIFICATION

7

Market Landscape – Semiconductor Tooling

Year-on-Year

Growth

2011 2012 2013 2014 2015

Wedge Bonder

Copper Wire Bonder

Gold Wire Bonder

Die Bonder

CAGR 8%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

21.0

22.0

23.0

24.0

25.0

26.0

Source: Semiconductor Industry Association

~S$200M*

ANNUAL DEMAND FOR TOOLS USED IN

DIE-ATTACH AND WIRE-BONDING PROCESSES

80%of semiconductor A&T is carried out in Asia

BUSINESS DRIVERSChip production volumes

Base of die- and wire-bonding machinesMiniaturization of chip packages

* Based on internal estimates

Installed Base of Die and Wire-bonding Machines*

Global monthly chip sales

(US$ billion)

Year-o

n-Year G

rowth

Jan to June 13 sales up 1.5% yoy

8

Market Landscape – CMA Business

Year-on-Year

Growth

>S$500M*

OUR TOP 10 CUSTOMERS’ ANNUAL DEMAND FOR MACHINED COMPONENTS

BUSINESS DRIVERSCapital equipment spending

Flexible manufacturing capabilities

* Based on internal estimates

0.00

0.20

0.40

0.60

0.80

1.00

1.20

SEMICONDUCTOR EQUIPMENT BOOK-TO-BILL RATIO

Source: SEMI

• Overall slower business conditions in the capital equipment market, particularly for semiconductor equipment during FY2013

At or above

parity from Jan

to Jul 13

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 KNOWLEDGE

to factories in Asia to enhance productivity

Semiconductor Tooling

meeting market need for

FAST, 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

11

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 Treatment in Singapore

2009 Best for Shareholders' Rights and Equitable Treatment in Singapore

FORBES

2006 Asia 200 Best Under A Billion Companies

GTI - RANKED 18th

out of 664 listed companies on the SGX

FINANCIAL REVIEW

Mr. Chow Kam Wing, CFO

13

FY2013 in Review

• REVENUE UP 0.9%

• GROSS PROFIT MARGIN EXPANDED SIGNIFICANTLY TO 49.1%

• NET PROFIT UP 21%

• EPS IMPROVED TO 3.7 CENTS FROM 3.0 CENTS

• SOUND BALANCE SHEET WITH CASH OF S$9.1 MILLION AND ZERO DEBT

• TOTAL DIVIDENDS OF 3 CENTS PER SHARE FOR FY2013

• Dividends totaling 31.9 cents since IPO

39.2

19.2

6.95.1

19.9

12.3

0

1.8

FY2013 P&L Overview (S$ million)

14FY: Financial year ending 30 June

Group Revenue

11.7 9.3 11.7 10.4 9.9

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 10.7

0

40

80

120

160

200

240

280

320

0

10

20

30

40

50

60

FY2009 FY2010 FY2011 FY2012 FY2013

4Q

3Q

2Q

1Q

33.1

41.045.3

38.8 39.1

Group Revenue (S$M)

Global Chip Sales Trend (US$B)

STEADY SALES IN FY2013

24.3

32.937.0

32.5 33.8

8.8

8.1

8.3

6.3 5.3

0

10

20

30

40

50

60

FY2009 FY2010 FY2011 FY2012 FY2013

CMA

SemiconductorTooling

Revenue Drivers

Global Chip Sales Trend according to FY. Data

from Semiconductor Industry Association (SIA)

15

8.2 7.7 9.6 8.8 8.6

6.4 8.09.5

7.4 8.1

3.9

8.0

9.0

7.7 7.75.8

9.2

8.9

8.6 9.3

FY2009 FY2010 FY2011 FY2012 FY2013

4Q

3Q

2Q

1Q

24.3

32.9

37.0

32.533.8

(S$ mil)

Quarterly Revenue By Business SegmentsTOOLING BUSINESS GREW 3.8% IN FY2013

3.41.6 2.0 1.6 1.3

2.6

1.82.0

1.4 1.2

1.6

2.12.1

1.61.5

1.2

2.6 2.2

1.71.3

FY2009 FY2010 FY2011 FY2012 FY2013

8.88.1 8.3

6.35.3

Semiconductor Tooling CMA(S$ mil)

Semiconductor tooling business improved in tandem with industry recovery

CMA business affected by slower orders, especially from customers in the semiconductor equipment industry

0%

20%

40%

60%

80%

100%

FY2009 FY2010 FY2011 FY2012 FY2013

CMA

SemiconductorTooling

Percentage of Revenue

16

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

Malaysia, China, Taiwan, Philippines and Europesaw increased sales of semiconductor tools

USA market experienced slower sales due to CMA business

MAJOR MARKETS FOR SEMICONDUCTOR

TOOLING

KEY MARKET FOR CMA

17

Gross Profit Margin

38.8%

47.5%

45.9%

46.3%

49.1%

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

FY2009

FY2010

FY2011

FY2012

FY2013

Group GPM

54.2%

59.2%

53.7%

53.4%

55.8%

-3.8%

-0.4%

11.3%

9.7%

6.3%

-10% 10% 30% 50% 70%

FY2009

FY2010

FY2011

FY2012

FY2013

CMA

Semiconductortooling

GPM by Business Segments

Semiconductor tooling GPM improved to 55.8% despite constant price pressure typical of the industry

CMA GPMaffected by low capacity utilisation due to fixed manufacturing overheads

MARGIN EXPANSION IN FY2013

18

Group Net ProfitFY2013 NET PROFIT JUMPED 21.4%

2.11.4

2.01.2 1.2

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

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%

0% 10% 20% 30% 40%

FY2009

FY2010

FY2011

FY2012

FY2013

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

Operating Expenses / Revenue

Operating expenses / revenueRemained steady due to tight rein on expense structure

Net profitimproved on higher gross profit margin

19

EBITDA and Operating Cash Flow

4.7

9.9

12.3

9.7

11.2

5.4

9.310.0 10.2 10.3

0

2

4

6

8

10

12

14

FY2009 FY2010 FY2011 FY2012 FY2013

EBITDA Operating cash flow before interest and tax

(S$ mil)

1.2

5.1

2.32.8

7.3

0

2

4

6

8

10

12

14

FY2009 FY2010 FY2011 FY2012 FY2013

(S$ mil)

Track record of healthy operating cash flow

Positive Free Cash Flow

Free Cash Flow= net operating cashflow less capex

20

30 June 2013 30 June 2012

Cash Cash and cash equivalents S$9.2M# S$6.0 M

Gearing Total borrowings Nil Nil

Trade Receivables

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

0.2%Nil

0.2%Nil

Inventory Inventory / Sales Inventory write-off

5.5%S$72k

5.7%S$78k

Equity Shareholders’ equityNAV per share

S$37.9M#

27.29 cents# S$37.0M26.60 cents

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

Balance Sheet

OUTLOOK

Mr. Chris Borch, CEO

Mr. Low Ming Wah, COO

22

Industry Outlook

Global Chip Sales (US$ mil)

Growth

0

100000

200000

300000

400000

2012 2013 2014 2015

IntegratedCircuits

Sensors

Optoelectronics

291,562 297,766312,906 324,903

WSTS Spring 2013 Forecasts

2.1% growth in 2013

5.1% growth in 2014

3.8% growth in 2015

“There’s no question the global

semiconductor industry has picked

up steam through the first half of

2013. We have now seen

consistent growth on a monthly,

quarterly, and year-to-year basis,

with sales of memory products

showing particular strength.”

-- SIA Press Release, 5 August 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

291,562 297,766312,906 324,903

Sources: Semiconductor Industry Association, World Semiconductor Trade Statistics

23

Group Outlook and Plans

OPERATING ENVIRONMENT REMAINS CHALLENGING• 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

24

RECURRING INCOME STREAMS FROM PRECISION CONSUMABLE PRODUCTS

• Steady foundation and cost-effective operations which lead to high gross profit margin

CASH-GENERATIVE MODEL WITH NO DEBT

• Sound balance sheet management and sensible cost structure

LONG TRACK RECORD OF DIVIDENDS

• Total dividends of over S$40M since public listing

POSITIONED TO RIDE ON SEMICONDUCTOR INDUSTRY RECOVERY

• Tooling business correlates with the volume of chip production

• Developing CMA business to be a future growth catalyst

0

1

2

3

4

5

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

Special dividend

Final dividend

Interim dividend

Dividend per share (cents)

Investment Merits

25

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-Mechanics

31 Kaki Bukit Place

Eunos Techpark

Singapore 416209

www.micro-mechanics.com

Investor Relations Contact

Octant Consulting

Tel (65) 6296 3583

herman@octant.com.sg / lisa@octant.com.sg

MICRO-MECHANICS(HOLDINGS) LTD.