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1 Investor Presentation M a y 2 0 1 3 Asia Pacific Wire & Cable Corp. LTD APWC

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Asia Pacific Wire & Cable Corp. LTD APWC. Investor Presentation M a y 2 0 1 3. Safe Harbor Statement. - PowerPoint PPT Presentation

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Page 1: Investor Presentation M a y   2 0 1 3

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Investor PresentationM a y 2 0 1 3

Asia Pacific Wire & Cable Corp. LTD

APWC

Page 2: Investor Presentation M a y   2 0 1 3

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Safe Harbor StatementSafe Harbor Statement

This presentation may contain forward-looking statements concerning Asia Pacific Wire & Cable Corporation. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control.

All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. Asia Pacific Wire & Cable Corporation undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this presentation.

Page 3: Investor Presentation M a y   2 0 1 3

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Equity Snapshot and Key Equity Snapshot and Key ffnn Metrics Metrics

APWC

Price (5/1/13): $3.95

Market capitalization: ~$55 M

Diluted shares outstanding: 13.8 M

TTM P/E: 4.8x

FY 2012 Revenues: $462.3 M ▼ 2.1%

FY 2012 Gross Profit: $51.8 M ▲ 18.0%

FY 2012 Net income: $10.9 M ▲ 301%

FY 2012 Diluted EPS: $0.79 ▲ 302%

Fiscal year ends: December 31*

* Company is an Foreign Private Issuer but files similar to a fully listed public company.

Page 4: Investor Presentation M a y   2 0 1 3

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Investment HighlightsInvestment Highlights

• Nasdaq-Listed since April 29, 2011

• Taiwan-based leader wire and cable manufacturer with sales in several Asian-Pacific markets

• Growing underlying market demand in the region and for APWCC products particularly for power and telecommunication cable

• Broad geographic coverage provides diversification

• Experienced and knowledgeable in-house sales, service & technical team

• Financial performance including increased profitability

• Strong balance sheet, cash flow, and an attractive valuation

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Global Industry OverviewGlobal Industry Overview

Wire & cable growth industry growth drivers include:• Energy-related infrastructure spending• Telecom-related infrastructure spending• Construction cycles• Industrial activity

Local presence required to succeed:• High transportation costs• Products need to meet regional and local specifications• Handling and logistics

~ 80% of manufacturing cost attributable to raw materials• Pass-through pricing generally utilized for long-term agreements• About one-half of business priced short cycle

Page 6: Investor Presentation M a y   2 0 1 3

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Company OverviewCompany Overview

• Founded in 1996

• Headquartered in Taipei, Taiwan with subsidiaries in China, Thailand, Singapore and Australia

• Core business includes the manufacturing and distribution of wire and cable products throughout Asia Pacific including Australia

• Additional services: distribution of a variety of 3rd party wire and cable product lines, project engineering of Supply, Delivery and Installation (SDI) services for power cables

• Total number of employees: ~1,413

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Products and Services PortfolioProducts and Services Portfolio

Revenue ($ millions) Gross Margin

Products 2009 2010 2011 2012 2011 2012

Telecom Cable $26.0 $45.0 $28.5 $22.5 22.8% 26.2%

Power Cable 103.0 148.3 200.7 206.3 13.2% 16.6%

Enameled Wire 135.1 202.8 200.2 172.2 4.9% 2.6%

Distributed Products 28.1 26.9 25.5 54.8 11.6% 6.1%

SDI Project Engineering Services 34.0 23.6 17.0 6.5 0.3% -15.7%

Total $326.2 $446.6 $471.9 $462.3 9.3% 11.2%

Page 8: Investor Presentation M a y   2 0 1 3

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THAILAND

AUSTRALIA

CHINA

SINGAPORE

Headquarters

360

810

151

77

15

25.0%

39.1%

13.0%

11.0%

Regional Locations and Facilities Regional Locations and Facilities

Others: Distributed products of 11.9% include Singapore, Australia, and Thailand.

TOTAL HEADCOUNT: ~1,413

As of December 31, 2012

• Pacific Electric Wire & Cable (Shenzhen) Co., Ltd.• Shanghai Yayang Electric Co., Ltd.• Shandong Pacific Rubber Cable Co., Ltd.• Shangdong HuaYu Fibre Optics Cable• CCH (Crown Century Holding) Hong Kong• Ningbo Pacific Wire Co., Ltd.

• Charoong Thai Wire & Cable Public Co., Ltd.• Siam Fiber Optics Co., Ltd.• Siam Pacific Electric Wire & Cable Co., Ltd.

• Australia Pacific Electric Cables Pty., Ltd.

• Sigma Cable Co., Pte Ltd.• Sigma-Epan International Pte.,

Ltd.SDI project engineeringPower cable

Distributed productsFiber optic cableEnameled wire

Employee headcount

% Revenue contribution (2012)

Factories/op units

Electronic wire

Page 9: Investor Presentation M a y   2 0 1 3

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APWC Subsidiaries’ Operations APWC Subsidiaries’ Operations

China• Shanghai Yayang is a joint venture in Shanghai incorporated in June 1998, now 100%

owned by APWC.• Pacific Electric Wire & Cable (Shenzhen) was established in Shenzhen in Dec. 1995.• Ningbo Pacific Cable Co., Ltd. (PEWNC) re-constructed July , 2011, and began

production in March, 2012.

Australia• APEC Cables was founded in Brisbane, Australia in 1996, with a goal to become the

one of the leading electrical supply companies in Australia.

Thailand• Charoong Thai is a publicly-traded Thai corporation listed on the Stock Exchange of

Thailand (“SET”). It was established in Thailand in 1967.• Siam Pacific was established in 1988 as a joint venture between PEWC and Italian-

Thai Development Plc (“Ital-Thai”), a third party, which at the time was the largest diversified construction company in Thailand, now 100% owned by CTW.

Singapore• Sigma Cable was established in Singapore in June 1964. • Project engineering team established in 1997 to undertake Supply, Deliver and Install

turnkey projects to SP PowerAssets Limited ( A member of Singapore Power in transmission and distribution of electrical energy).

Page 10: Investor Presentation M a y   2 0 1 3

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APWC in ChinaAPWC in China

High Quality Enameled Wire Supply to Eastern and Southern China

Top Customers• Toolmakers and appliances makers• Mining companies

Products• Enameled wire• Rubber cable• Electronic wire

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APWC in ThailandAPWC in Thailand

One of the Top-5 Cable Producers in Thailand

Top Customers• Local electric utilities companies• Engineering companies• Contractors• Telecom carriers

Products• Telecom cable• Power cable (Al, Cu, LV, HV)• Enameled wire• Fiber-optic cable

Page 12: Investor Presentation M a y   2 0 1 3

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APWC in SingaporeAPWC in Singapore

Leading Provider of Power Cable in Singapore

Top Customers• Electrical contractors• Distributors• Public utilities Board

Products• Power cable • SDI project engineering• Distributed products

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APWC in Australia APWC in Australia

Leading provider of power and construction cables

New opportunities for distribution due to free trade agreement of south east Asian countries

Top Customers• Contractors• Distribution Centers

Products• Low-voltage power cables• Construction cables

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Growth and Expansion Strategies by MarketGrowth and Expansion Strategies by Market

China• Top growth opportunity for APWC over the next 10 to 15 years• Increase capacity to meet market demand and maximize economy scale• Drive marketing penetration into Shandong, Henan, Guangxi Sichuan, and Chongqing

city, etc.• Develop new products such as electronic wire and expand domestic market

Australia• Continue upgrading production facilities to increase efficiency and capacity• Increase product portfolio through offering imported products such as fiber optic cable

Thailand• Develop new cable products for auto, solar or other types of alternative

energy solution• Form a possible new subsidiary to meet local minimum standards• Upgrade and expand facilities for new government projects

Singapore• Re-introduce Sigma's products to Southeast Asian markets such as Vietnam and Brunei• Explore new contractors/partners in China for incremental business opportunities

Page 15: Investor Presentation M a y   2 0 1 3

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Competitive AdvantagesCompetitive Advantages

Competitive Advantages

•Reliable product supply and distribution

•Superior product quality and performance

•Excellent customer service and knowledgeable sales and technical team

•Historical long presence in key local markets

Competitive Landscape

•Competitors include both independent domestic and foreign suppliers

•Local competitors have advantages in sales, R&D spending or financial resources

•Global competitors include Draka, Furukawa, Nexans, Prysmian, etc.

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History of Revenue GrowthHistory of Revenue Growth

$192 $197$241

$211

$294$337

$468$511 $501

$327

$447$472 $462

$0

$100

$200

$300

$400

$500

$600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

USD

mill

ion

CAGR = 8%

Growth Phase 1

Growth Phase 2

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Changes in Gross ProfitChanges in Gross Profit

0%

2%

4%

6%

8%

10%

12%

14%

-$10

$0

$10

$20

$30

$40

$50

$60

$70

2005 2006 2007 2008 2009 2010 2011 2012

USD

Milli

on

Gross Profit Inventory Adjustment Gross Margin

$36.6$57.3

$45.7

$35.9

$64.6 $57.0

$43.9

$51.8

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Changes in Net IncomeChanges in Net Income

($5.0)

$13.0

$4.8

($13.6)

$10.1

$14.1

($5.4)

$10.9

(3%)

(2%)

(1%)

0%

1%

2%

3%

4%

($20)

($15)

($10)

($5)

$0

$5

$10

$15

2005 2006 2007 2008 2009 2010 2011 2012

USD

Mill

ion

Net Income Net Margin

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Summary Income StatementSummary Income Statement

a. For 2008 through to 2011, income statements are restated to reflect SPFO operations being disposed of and excluded but grouped under Discontinued Operations

b. SP recognizes other income of Thai Baht 147.9 million (US$ 4,762K) from settlement of flood loss.

Year 12/31 (USD '000) 2010 2011 2012

Total Sales $446,594a $471,946a $462,265

Cost of Sales (389,571) (428,051) (410,450)

Gross Profit 57,023 43,895 51,815

Income from Operations 28,652 1,884 23,593b

Income Before Tax 31,832 636 27,293

Income (Loss) before taxes attributable to APWC

20,024 (2,447) 16,607

Income Taxes Expense attributable to APWC

(5,884) (2,992) (5,658)

Net Income (Loss) attributable to APWC

14,140 (5,439) 10,949

Basic and Diluted Income (Loss) per Share (USD)

$1.02 $(0.39) $0.79

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Summary Balance SheetSummary Balance Sheet

As of (USD ‘000) 12/31/2010 12/31/2011 12/31/2012

Cash and Cash Equivalents $63,217 $76,672 $72,816

Current Assets 329,461 288,697 330,208

Other Assets 57,462 48,592 59,176

TOTAL ASSETS 386,923 337,289 389,384

Bank Loans and Trust Receipts 67,351 52,813 57,845

Current Liabilities 158,808 117,741 146,494

Other Liabilities 2,403 4,859 8,279

Total Liabilities 161,211 122,600 154,773

Total Shareholders’ Equity 225,712 214,689 234,611

TOTAL LIABS and SHS’ EQUITY 386,923 337,289 389,384

Net Book Value Per Share 11.08 10.59 11.69

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Country Revenue and GP AnalysisCountry Revenue and GP Analysis

$186.0

$52.4$58.9

$132.2

$25.5 $17.0

$180.9

$44.6$60.0

$115.5

$54.8

$6.4

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Thailand Singapore Australia China Distributed SDI

Revenue ($Mil.)

2011 2012

$21.5

$4.5

$11.0

$5.8

$3.0$0.0

$21.6

$5.0

$13.7

$4.5 $3.4

-$0.1

-$5

$0

$5

$10

$15

$20

$25

Thailand Singapore Australia China Distributed SDI

Gross Profit ($Mil.)

20112 2012

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Summary Cash FlowSummary Cash Flow

As of (USD ‘000) 2010 2011 2012

Operating Activities (2,636) 22,624 11,648

Investing Activities (6,448) (13,904) (15,755)

Financing Activities 26,413 5,621 (62)

Net Cash Flow 21,683 13,455 (3,856)

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CAPEX SummaryCAPEX Summary

As of (USD ‘000) 2010 2011 2012

Capital Expenditure $3.7M $8.9M $10.1M

CAPEX Purpose:Production machinery and equipment for the CTW group in Thailand and for Ningbo Pacific Cable Co., Ltd. (“NPC”) in Ningbo, China, as well as the addition of a new plant at Shenzhen for the Chinese domestic market.

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Management TeamManagement Team

Andy C.C. CHENG – Chairman of the BoardMr. Andy C.C. CHENG was a member of the company’s Board of Directors from 2004 to 2005 and was re-elected in 2007. From 1987 to 2003, Mr. Cheng was the Vice President of procurement and later Executive Vice President and Chairman of the Investment division, all served at PEWC. Mr. Cheng was elected Chairman of the Board of APWC in October 2009.

Chun Tang YUAN – Chief Executive OfficerMr. Chun Tang YUAN also serves as Chairman of PEWC since 2004 and has been the Director of Pacific Construction Corp. Ltd since 2002. He served as the Director of Taiwan Co-generation Corp from 2005 to 2008. Mr. Yuan is also the Chairman of Taiwan Electric Wire and cable Industries Association since 2004. He has served as the Supervisor to Taipei Importers/Exporters Association as well as the Director of Chinese National Federation of Industries in Taiwan since 1998 and 2004 respectively.

Frank TSENG – Chief Financial OfficerMr. Frank TSENG has served as CFO since October 2009. Before joining APWC, he was the deputy CFO for ABB Taiwan and, prior to that, the APAC regional controller for Phoenix Technologies, a Silicon Valley-based company that is publicly traded on NASDAQ. Mr. Tseng holds a Masters Degree of Accountancy from Georgia State University. He is also a CPA by the State of Illinois.

William GONG – Chief Operating OfficerMr. William Gong has been appointed Chief Operating Officer effective April 1, 2013. He was first assigned to Charoong Thai Wire and Cable Pte. Co. Ltd. as Engineer, Assistant Plant Manager, and later consultant to high voltage cable division from 1991 to 2000. In April 2009 he was promoted General Manager of Sigma Cable in Singapore. Mr. Gong Wei holds a master’s degree from Asian Institute of Technology in Bangkok, Thailand.

Daphne HSU – Financial ControllerMs. Daphne HSU has been Financial Controller of the Company since March of 2005, prior to which she served as Financial Controller for ten years in Taiwan and China at a Thomson SA joint venture. Daphne graduated from National of Taipei College of Business with a major in accounting.

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Contact Us

CompanyFrank Tseng, CFOPhone: +886 (2) 2712 2558 [email protected]

AuditorErnst&Young TaiwanTWTC International Trade Building9F, 333, Keelung Road, Sec. 1TaipeiPhone: +886 2 2757 8888

Investor RelationsJohn Mattio, SVP – MZ GroupMain: 212-301-7130Direct: [email protected] www.mzgroup.us

Legal Fox Horan & CameriniMichael Hagan - PartnerMain: 212-480-4800Direct: [email protected]

Contact UsContact Us