FY2010 Results Presentation

UMS Holdings Limited

24 January 2011

FY2010 Results Presentation

FY2010 Financial Highlights� Net profit soars to record S$28.7m, reversing from

FY2009 net loss

� Highest-ever total annual dividend payout of 5.0 cents per share

� Revenue up 173% to S$129.0m from S$47.3m in FY2009 on robust sales of higher-value systems, increased on robust sales of higher-value systems, increased outsourcing orders

� Semicon segment is largest revenue contributor at S$119.2m (from S$39.9m); Singapore is largest market at S$69.8m (from S$5.6m)

FY2010 Financial Highlights� Positive net cash from operations to S$31.3m from

$13.9m

� Strong cash balances of S$20.3m as at 31 December 2010

� EPS of 8.25 cents and NAV of 52.05 cents as at 31 December 2010December 2010

Financial Overview

UMS Holdings Limited

Financial Overview

4Q2010 Financial Highlights� Net profit soars 692% to S$9.1m, outpacing revenue

growth of 99% to S$33.8m

December 31

4Q2010S$’000

4Q2009S$’000

Change%

Turnover 33,803 16,996 99

CEM 1,479 340 335

Semicon 32,324 16,656 94Semicon 32,324 16,656 94

Net Profit

Before Tax 8,754 671 1205

After Tax 9,058 1,143 692

Basic EPS

(cents)2.63 0.32 722

FY2010 Financial Highlights� Net profit of S$28.7m reverses loss of S$24.3m in

FY2009 on 173% increase in FY2010 revenue to S$129.0m

December 31

FY2010S$’000

FY2009S$’000

Change%

Turnover 129,033 47,267 173

CEM 9,852 7,372 34

Semicon 119,181 39,895 199

Net Profit

Before Tax 33,289 (25,336)* N.M

After Tax 28,745 (24,328)* N.M

Basic EPS

(cents)8.25 (6.87) N.M

* Includes non-cash Goodwill write-off of S$20m

Financial Snapshot� Proposes final dividend of 2.0 cents and special

dividend of 1.0 cent, in addition 2Q10 and 3Q10 interim dividends of 1.0 cent each

� EPS rises to 2.63 cents in 4Q2010 from 0.32 cent in 4Q2009

� Net asset value per share increased to 52.05 cents as at � Net asset value per share increased to 52.05 cents as at 31 December 2010 from 45.97 cents as at 31 December 2009

� Cash flow from operations up 44.8% from S$9.1m in 4Q2009 to S$13.1m in 4Q2010

Financial Snapshot� S$53m capex FY2007-2009; reduced forward capex

(Malaysia expansion)

� Part of strategy to improve competency during downturn and now reaping success in improved profit, cash flow

31 Dec 2010 31 Dec 2009

Return of Asset 13.48% NM

Return on Equity 16.06% NM

Current Ratio 2.88 2.2

Debt Equity Ratio 0.04 0.13

Turnover

80

100

120

140

S$ in Million

0

20

40

60

80

4Q'09 4Q'10 FY'09 FY'10

CEM

SEMICON

Net Profit After Tax

10

20

30

1.1

9.1

28.7

S$ in Millions

-30

-20

-10

0

4Q2009 4Q2010 FY2009 FY2010

1.1

-24.3*

Goodwill write-off

* Includes non-cash Goodwill write-off of S$20m

Geographical Segment

40000

50000

60000

70000

Singapore

S$ ‘000

0

10000

20000

30000

40000

4Q2009 4Q2010 FY2009 FY2010

Singapore

United States

Others

Business Segment

4%

96%

4th Quarter 2010S$33.8m

4th Quarter 2009S$17.0m

2%98%CEM

Semicon

Business Segment

8%

92%

FY2010S$129.0m

FY2009S$47.3m

16%

84%

CEM

Semicon

Shareholder Value

2.63

8.25

2

4

6

8

10

2009

S$ cents

5254

52.05

Net Asset Value per share

0.32

-6.87-8

-6

-4

-2

0

2

4th Qtr Full Yr

2009

2010

424446485052

31 Dec 09 31 Dec 10

45.97

Earnings per share

Share Price

Cash Flow from Operations

20

25

30

3531.3

2009

S$ in Millions

0

5

10

15

20

4Q FY

9.1

13.913.1 2009

2010

Strategy Update

UMS Holdings Limited

Strategy Update

Strategy #1 From Components…

… To Systems

Significance of Strategy #1� Major customer is relocating more value-added

manufacturing to Asia

� Two years of process development with customer, reaping fruits only in 2H2010

� Strategic shift to position UMS as preferred supplier; commitment from customer to load business volumescommitment from customer to load business volumes

� Strategy lifted Semicon division revenue by 199% in FY2010, accounted for 92.4% of revenue in FY2010

Cont. Significance of Strategy #1� 11-fold hike in sales of Singapore reflects the shift to

systems from components (which are shipped to different markets)

� Singapore accounts for 54.09% of Group revenue for FY2010

� Moving forward, will seek to manufacture more � Moving forward, will seek to manufacture more systems to achieve higher economies of scale, improve margins

Strategy #2 Outsourcing Trend� Major Western semicon players are increasing

outsourcing of manufacturing and assembly to Asia

� Semicon support companies with presence in South Korea, Singapore positioned to benefit

� Outsourcing trend can offset any impact from global semicon slowdown if it happens in 2011semicon slowdown if it happens in 2011

Significance of Strategy #2� UMS has identified Korea as a market to expand its

spare parts and components business

� SME component players in Korea lack relationships with Western players or technology for advanced components

� UMS is exploring M&A of SMEs in Korea to raise their � UMS is exploring M&A of SMEs in Korea to raise their technological capabilities and increase market share in Korea

� Proposed dual listing in Korea is in line with this strategy

Why Korea?� Korea produces over 50% of the world’s DRAM

and flash chips and 10% of other chip types

� Korean government plans to more than double production of semiconductor output from US$29.1bn back in 2006 to US$61.2bn by 2015

� Korean Exchange has higher stock liquidity @ 149% vs 46.1% in SGX as of last year

� Strong valuation for IT and hi-tech industries

� Can increase P/E valuation of UMS share

� KDR is fungible compared to TDR

Forecast and Prospects� 1H2011 will remain on track with 2H2010

� Outlook for core business activities remains intact in FY2011, supported by ongoing growth initiatives, i.e. systems, outsourcing

� Customer orders for systems are strong for Q1,Q2 2011

� Pursue ongoing internal operating and financial � Pursue ongoing internal operating and financial efficiencies

� Korean expansion is new strategic thrust while proposed dual listing will raise funds and attract new group of investors

� On lookout for potential acquisitions in Korea to expand component business

Investment Merits� Leveraged competence in components to work with

major customer during financial crisis to develop higher-value integrated systems, expanding product portfolio

� Efforts began paying off significantly from 2H2010; major reason for profit increasemajor reason for profit increase

� South Korea will be area of focus for semiconductor spare parts and components; Proposed Korean secondary listing in line with this strategy

Corporate Profile

UMS Holdings Limited

Corporate Profile

About UMSFounded in 1984 by Chief Executive Officer Andy Luong atSilicon Valley, USA.

UMS Holdings Limited…

…the strategic integration partner in manufacturing andengineering for front-end original semiconductor equipmentmanufacturers in developing modular and integrationmanufacturers in developing modular and integrationsystems.

…also engaged in critical manufacturing of high-precisioncomponents, and complex electromechanical assembly andfinal testing for oil field precision component manufacturersand other industries.

…headquartered in Singapore, with production facilities in Singapore, Malaysia as well as an office in California, USA.

UMS Strengths� Ready Capacity

Our Penang Hub and Singapore headquarters provide more than 700,000 sq. ft. of space to expand production

� Entrenched Position

Our edge is in the semiconductor equipment industry, where we have a ready set of strategic customers and qualifications we have a ready set of strategic customers and qualifications to perform more than 70 special processes for the semiconductor industry.

� Close proximity to key customer

Upon the entry of its key customer into Singapore on April 2010, UMS has seen local sales growth.

Cont. UMS Strengths� Greater integration to shorten supply chain and improve margins

By integrating and testing systems as a one-stop shop, UMS shortens customers’ supply chains and provides them with cost efficiencies and faster time-to-end market. This increases customer-supplier reliance just as customers are streamlining their supplier base and also extending outsourcing activities.

� Cost Competitiveness, being located in Penang, Malaysia� Cost Competitiveness, being located in Penang, Malaysia

Since 2009, we have improved cost efficiencies by shifting part of production to the Penang Hub. Malaysian operations will enjoy 10-year tax holiday from 2011, better labour, utilities and land costs.

� Recurring Business from Spares

� Estimate of spares business to be about 15 - 20% of total revenue

� Reduce volatility in earnings

UMS’ Industry Positioning

Raw Materials / ComponentsSuppliers

>Electronic

Components

>Sheet Metal

>Robots

>Gas Box

>Standard Parts

Integrated CircuitProducers / Foundries

>Samsung

>TSMC

>Intel

Front End / Equipment Manufacturers

>Applied Materials

>Novellus

>Lam Research

Packaging Houses

>STATS

Machined ComponentsSubassemblies

>UMS

Back EndEquipment Manufacturers

>K&S

>ASM

>STATS

ChipPAC

>Amkor

>ASE

Soft ware

Corporate Data�Listed on 25 May 2001

� Share price at listing: S$0.21

� IPO Placement Shares: 33,800,000

Major Shareholders % of shares held

Andy Luong 32

Quest World Investment Limited

9

Applied Materials, Inc

6

Basic Share Data (as at 21 Jan 11)

Share Price (as at 21 Jan 11) S$0.605

Average Daily Volume (in

January 2011)

19,740,867

No. of Issued shares excluding

Treasury Shares

343,754,000

Estimated Free Float 52.68%

Market Capitalisation S$207.97M

Our Facilities

Factory in Penang(500,000 sq. ft.)for volume production

Headquarters in Singapore(211,500 sq. ft.)for R&D, engineering and other high-value activities

Our ProductsPrecision machined components, modular and

integration system for semiconductor and oil and

gas equipment manufacturers.

Q & A

UMS Holdings Limited

Thank You