Q1FY17 Results Briefing15 August 2016

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Important Notice

This presentation contains forward-looking statements which can be identified by the context of the statement andgenerally arise when the Company is discussing its beliefs, estimates or expectations. Such statements may includecomments on industry, business or market trends, projections, forecasts, and plans and objectives of managementfor future operations and operating and financial performance, as well as any related assumptions.

Readers of this presentation should understand that these statements are not historical facts or guarantees of futureperformance but instead represent only the Company’s belief at the time the statements were made regardingfuture events, which are subject to significant risks, uncertainties and other factors, many of which are outside of theCompany’s control. Actual results and outcomes may differ materially from what is expressed or implied in suchforward-looking statements.

The Company cautions readers not to place undue reliance on any forward-looking statements included in thispresentation, which speak only as of the date made; and should any of the events anticipated by the forward-lookingstatements transpire or occur, the Company makes no assurances on what benefits, if any, the Company will derivetherefrom.

Investor Relations Contact:

Name: Mr Gerald Woon Name: Mr Andrew Nai

Email: woon@cogentcomms.com Email: andrewnai@cogentcomms.com

Tel: + 65 6704 9288

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Corporate Profile

At a Glance

• Electronic Manufacturing Services (“EMS”) player established in 1992 in Hong Kong

• Listed on Main Board of SGX on 28 March 2007

• Production facilities in Daya Bay & Danshui Town, Guangdong, PRC (60 minutes from Shenzhen)

Integrated EMS Provider

• Engineering Design & Development

• Product Design & Deployment

• Plastic Injection Moulding

• Tool Design and Tool Fabrication

• Metal Stamping & Machining

• Printed Circuit Box Assembly & Box Build Assembly

• Supply Chain Management

Accreditations

• ISO9001:2000, TL9000, ISO14001:1996, ISO13485

& TS16949

Employees • As at 30 Jun 2016, around 4,000

Bloomberg Code VALUE.SP

Reuters Code VLUE.SI

ISIN Code BN2

Issued shares (M) 380

Mkt cap (SG$M) (12 Aug 2016) 199.09

Share price (SG cents) (12 Aug 2016) 52.5

Avg volume 3-mth ('000) 1090

52 wk range (S$) 0.35 – 0.545

25.9%

69.0%

5.1%Shareholding

Executive Directors

Public Float

HSBC GlobalInvestment Funds

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Business Model

A Premier Design and Manufacturing Partner

Proactive deployment of Design & Development capabilities

Integrated Manufacturing Services

•SMT•Wire bonding•FG assembly•Metal part machining•Injection molding•Tool design & fabrication

Engaging in Customers Value Chain

•Design for manufacturing•Design & build test fixtures•Rapid prototyping•Regulatory compliances•Supply chain management services

Design & Development

•Mechanical & electrical engineering design from concept to mass production•Better manufacturability with enhancedfeatures & lower cost•Software development•Industrial design

Value Add

2008 2008 2009 2012 2014 2015

Became Phillips preferred supplier

for its Lighting segment

Completed Phase 1 construction of

Daya Bay Facility

Opened Daya Bay Facility, acquired medical business

Celebrated 20th

anniversary with revenue crossing

HKS2 billion

Adoption of formal dividend policy

Received TS16949 certification

1992 2002 2003 2005 2007

Headquartered in Hong Kong with manufacturing

facilities in Danshui Town PRC

Use of ROHS equipment and accredited with

TL9000

Adopted work cell management &

updated to ISO9001:2000

Became Philipspreferred supplier for its consumer lifestyle segment

Listed on SGX-Mainboard & commenced

construction for Daya Bay Facility

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Key Milestones

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Daya Bay Facility – Bird’s-Eye View

• Land use rights acquired in 2006 • Total site area > 110,000 sq m

• Ability to accommodate customers requirement for various volume, mix andcomplexity

• Customer base ranged from emerging enterprises in Northern American (low-volume complex custom product) to top global Multi-National Corporations(high-volume standards product)

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Customer & Product Portfolio

Industrial & Commercial Electronics

Consumer Electronics

Industrial & Commercial Electronics

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Transaction Printer for Slot, POS & Teller Station Machines

Thermal Label Printer for Industrial & Commercial Use

Printers Temperature Sensing Devices

Cold Chain Temperature Monitor for Industrial & Commercial Use

Electronic Thermostats

Nasdaq-listed Company Unit of a NYSE-listed MNC

Global Brand owned by NYSE-listed MNC Company owned by a UK PE Fund

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Taiwan-listed Company

Taiwan’s No.1 Business Communications Maker

Toronto-listed Company

High Precision GPS for Industrial Use

Communication Products

Company Based in North America

Industrial & Commercial Electronics

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Others

In-vitro Diagnostic Medical Equipment for Testing Human Tissue samples

Electronic Products forAutomotive industry

Tier 1 Automotive System Manufacturer

Data and media connectivity module

Industrial & Commercial Electronics

Consumer Electronics

1115W and 40W Bug Zappers

Subsidiary of Homax Group(Wholly-owned by PE firm)

PCBA for Shavers & Electric Toothbrushes for Consumer Use

Consumer Lifestyle Division of a Dutch MNCListed in Amsterdam & New York

Q1FY17 Financial Highlights

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Financial Highlights

Consumer Electronics

Industrial and Commercial Electronics

Revenue Contribution

50.9%

49.1%

Q1FY16

HK$270M

HK$280M

34.6%

65.4%

Q1FY17

HK$313M

HK$165M

HK$’M Q1FY17 Q1FY16 % Change

Revenue 477.5 550.0 (13.2)

Gross Profit 76.6 78.5 (2.4)

Gross Profit Margin

16.0% 14.3% 1.7pts

Net Profit for the period

29.6 33.5 (11.6)

Net Profit Margin 6.2% 6.1% 0.1pts

Revenue Trend

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1,683.6 1,581.4 1,653.3 1,473.0

824.6

280.2165.0

604.7628.8

780.0956.3

1,128.3

269.8312.5

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

FY12 FY13 FY14 FY15 FY16 Q1FY16 Q1FY17

Consumer Electronics Industrial & Commercial Electronics

2,429.3

550.0

HK$’ M

2,288.3 2,210.2

2,433.3

1,952.9

477.5

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Quarterly Revenue

383.9 402.4361.2 325.5

280.2239.0

141.0 164.4 165.0

242.7 225.2235

253.4269.8

287.5

293.5 277.5312.5

0

100

200

300

400

500

600

700

Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17

Consumer Electronics Industrial & Commercial Electronics

578.9626.6 627.6

596.2

550.0526.5

434.5 441.9

477.5

HK$’ M

53.9% 54.2% 51.8%

34.3% 37.3% 41.1%

11.8% 8.5% 7.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY15 FY16 Q1FY17

Europe

China & AsiaPacific

NorthAmerica

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Revenue by Shipment Destination

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Gross Profit & Net Profit Trend

80.3 82 83.785.4

78.5 77.070.5 71.5 76.6

33.9 36.3 39.2

39.8

33.5 32.2

25.229.5 29.6

12.8% 13.1%

14.0%14.8%

14.3%14.6%

16.2% 16.2% 16.0%

5.4% 5.8%

6.6% 6.9%

6.1% 6.1%5.8%

6.7% 6.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

0

10

20

30

40

50

60

70

80

90

Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17

Gross Profit Net Profit GP% Net Profit Margin

37

0.3 4

76

.2 56

8.4

59

2.2

72

6.6 80

8.5

85

7.3

88

8.3

32

2.2

50

0.5

51

1.4

47

9.3

74

0.3

99

2.7

98

1.7 1

12

6.7

13

9.9

98

.2 24

3.7

22

1.6

47

7.9

50

5.8

68

9.3

74

4.9

0

200

400

600

800

1000

1200

FY10 FY11 FY12 FY13 FY14 FY15 FY16 Q1FY17NAV Market Cap Net Cash balance

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Market Capitalisation & Net Cash Balance

HK’M

Earnings Per Share & Dividends Per Share

19

25

.5

15

.0 16

.7

34

.2

36

.5

21

.9

40

.6

40

.0

31

.9

7.8

4.5

7.0 14

.0

17

.0

8.0

20

.0

20

.0

20

.0

6.1%

11.8%

7.7%

9.8%

11.9%

6.0%

9.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

EPS Dividend per share Dividend Yield

7.5% 7.7%

We are committed to formal dividend policy of 30-50% payout ratio

HK cents

SharePrice

S$0.230 S$0.075 S$0.165 S$0.235 S$0.230 S$0.205 S$0.330 S$0.47 S$0.45

DividendPayout

30.1% 30.0% 41.9% 40.9% 46.6% 36.5% 49.3% 50.0% 63.0%

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Summary of Cash Flows

HK$’000 Q1FY17 Q1FY16

Operating Activities

Net cash generated from operating activities 47,565 59,379

Investing Activities

Net cash generated from/(used in) investing activities 8,326 (30,704)

Net increase in cash and cash equivalents 55,891 28,675

Effect of foreign exchange rate changes (212) (146)

Cash and Cash equivalents

At beginning of the period 689,260 505,847

At end of the period 744,939 534,376

Balance Sheet & Key Ratios

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HK$’M Q1FY17 FY16

Working capital

Inventories 249.9 198.7

Trade Receivables 376.9 343.2

Trade Payables (366.7) (286.2)

260.1 255.7

Net Current Assets 652.0 605.5

Net Cash 744.9 689.3

Net Assets 888.3 857.3

Turnover Days Q1FY17 FY16

Inventory 56.9 43.8

Trade Receivables 76.9 64.1

Trade Payables (83.5) (63.1)

50.3 44.8

Key Financial Ratios

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# Share price as at respective period end date

SGD/HKD Ex rate: Q1 FY17: 5.76Q4 FY16: 5.74Q1 FY16: 5.75

Q1FY17 FY16

Price (SGD) # 0.52 0.45

NAV per share (SGD) 0.41 0.39

Cash per share (SGD) 0.34 0.32

Cash to Mkt Cap ratio 66% 70%

Q1FY17 FY16

Current ratio 1.9 1.9

ROE 13.3% 14.0%

ROA 7.2% 8.0%

PB ratio 1.26 1.14

Business Outlook

• Continued sustainable double digit growth with new revenue streamfrom auto

• Will further pursue opportunities by providing enhanced value withour design and development capabilities

Overview

• Phased out and exited from mass market LED light bulb business since third quarter of FY2016

• Revenue from CE stabilizing at between HK$140 million to HK$165 million per quarter since second half of FY2016

• CE segment now comprises predominantly products with customized consumer applications for a portfolio of customers.

Consumer Electronics

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Industrial & Commercial Electronics

• Continued to benefit from the widened customer base in the ICE

• Significant growth in ICE segment has mitigated decline in CE revenue

• GP% improved with increased weightage in ICE segment

• Well positioned to take advantage of a widened product portfolio andopportunities in the pipeline

• However operating in an uncertain macro-economic environment, incommon with most manufacturers

• Remain mindful of the impact on overall business which may resultfrom a stronger US dollar and a further slowdown in China’s economy

Macro Economic

Environment