{ CORPORATE PRESENTATION }

Karin Technology Holdings Limited FY2013 Half Year Results

{ KARIN GROUP AT A GLANCE }

► A leading HK-based electronic and

industrial components and IT solutions

distributor and services provider, as well

as consumer electronics products retailer

► Established track record since 1977

► Strong Asia Pacific presence and network

Over 400 staff across 25 subsidiaries and

offices in the region

► Established business and distribution

channels in Hong Kong, Beijing,

Hangzhou, Qingdao, Xiamen, Shanghai,

Shenzhen, Guangzhou, Chongqing,

Changsha, Xian and Singapore

► Diversified customer base of more than

1,000 cutting across various sectors

► Listed on SGX Mainboard in 2005

Components Distribution: 17.9%

IC Application Design: 3.0%

IT Infrastructure:23.1%

1HFY13 Revenue by Business (Total: HK$2.1 billion)

Consumer Electronics Products: 56.0%

Non-Toys

Toys

Professional

Services

IC Application

Design

Components

Distribution

System Integrated

Solutions

Components

IT

Infrastructure

Industrial Materials & Instrumentation

Electronic Components

Application Consultancy

Systems/ Storage/ Network & Security

Integrated Solutions

Product Solutions

{ CORE BUSINESS }

Retail

► Improvement due to increase in demand for network security, enterprise

software products, and consumer electronics products

► Proposing an interim dividend of HK$0.072 per share

► Based on the latest information on hand, the Group is cautiously optimistic of

its performance in the next reporting period and in the next 12 months

Six months ended 31 December (HK$’m) 1HFY13 1HFY12 % Change

Revenue 2,123.3 1,519.4 39.7

Gross profit 114.7 88.9 29.0

Profit before tax 48.1 28.4 69.2

Net profit to Owners of the Company 33.7 22.8 47.5

Gross margins (%) 5.4 5.9 -8.5

EPS (HK cts) 15.9 10.9 45.9

NAV per share (HK cts) 230.2 190.4 20.9

{ KEY HIGHLIGHTS IN FY2013 INTERIM }

{ REVENUE | Six Month Period }

619497 565 535

703 741908

986903

663757 805

901

1,266

1,519

1,713

2,123

0

500

1000

1500

2000

HK

$ [

mil

lio

n]

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

{ GROSS PROFIT | Six Month Period }

45.9 44.3 48.1

56.3

69.6 71.1

94.288.1

86.5

56.2

69.075.1

85.483.9

88.9 101.3

114.7

0

50

100

HK

$ [m

illio

n]

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

{ GROSS PROFIT MARGIN | Six Month Period }

7.4

8.98.5

10.5

9.9 9.6

10.4

8.9 9.6

8.59.1

9.3

9.5

6.6

5.9 5.9

5.4

0

1

2

3

4

5

6

7

8

9

10

11

12

Per

cen

tag

e (%

)

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

{ NET PROFIT TO OWNERS OF THE COMPANY | Six Month Period }

14.511.6

16.214.6

21.619.5

36.4

24.923.3

9.1 9.1

24.7

21.4

30.2

22.8

36.9

33.7

0

10

20

30

40

HK

$ [m

illio

n]

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

{ NET PROFIT MARGIN | Six Month Period }

2.3 2.3

2.9

2.6

3.0

2.6

4.1

2.62.5

1.2 1.2

3.1

2.4 2.4

1.5

2.2

1.6

0

1

2

3

4

5

Per

cen

tag

e (%

)

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

0

200

400

600

800

1000

1200

1400

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

HK

$ (m

illi

on

)

Consumer Electronic Product IT Infrastructure Components Distribution IC Application Design

{ REVENUE BY BUSINESS SEGMENTS | Six Month Period }

HK$ (million) 1H

FY05

2H

FY05

1H

FY06

2H

FY06

1H

FY07

2H

FY07

1H

FY08

2H

FY08

1H

FY09

2H

FY09

1H

FY10

2H

FY10

1H

FY11

2H

FY11

1H

FY12

2H

FY12

1H

FY13

Consumer electronic

productsw N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 758 962 1,188

IT

Infrastructure 263 219 255 234 344 362 438 554 461 366 416 444 510 902 423 398 492

Components

Distribution 235 180 224 213 240 239 312 300 290 216 267 258 302 280 262 277 380

IC Application

Design 121 98 86 88 119 140 158 132 152 81 74 103 89 84 76 76 63

6.0

3.3

3.7

4.3

4.8

5.1

8.1

5.2

5.4

3.2

5.0

5.0

7.0

7.0

7.1

7.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

HK

(cen

ts)

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

Interim+Special (if any) Final+Special (if any)

{ DIVIDEND PAYOUT HISTORY }

0

5

10

15

20

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

Sin

gap

ore

cen

ts

{ CUMULATED DIVIDEND PAID }

IPO Price

1.31

2.74

4.48

6.81

8.78

10.26

14.52

12.20

15.66

{ DIVIDEND PAYOUT HISTORY }

2005

S$’000

2006

S$’000

2007

S$’000

2008

S$’000

2009

S$’000

2010

S$’000

2011

S$’000

2012

S$’000

1HFY13

S$’000

Dividend 2,648 2,887 3,524 4,689 3,990 3,012 3,987 4,878 2,398

Dividend /

share S 1.31 cents S 1.43 cents S 1.74 cents S 2.32 cents S 1.98 cents S 1.48 cents S 1.94 cents S 2.32 cents S1.14 cents

Cumulated 2,648 5,535 9,059 13,748 17,738 20,749 24,736 29,614 32,011

Cumulated

dividend /

share

S 1.31 cents S 2.74 cents S 4.48 cents S 6.81 cents S 8.78 cents S 10.26 cents S 12.20 cents S 14.52 cents S15.66 cents

{ DIVIDEND PAYOUT | From 2005 to 2013 Interim }

Total dividend payout from 2005 to Interim 2013 S$32,011,142

Aggregate dividend per share in the last 8.5 years S$0.1566

Current share price S$0.3150

Total dividend paid per share to current share price 49.7%

IPO share price S$0.2000

Total dividend paid per share to IPO share price 78.3%

Gross proceeds from IPO S$10,400,000

% of cumulated dividend paid back to public shareholders 93.2%

{ CUMULATED NET PROFIT & DIVIDEND PAID SINCE LISTING }

12,120

26,260

44,642

71,306

92,814

109,523

134,210

164,174

179,375

26,080

56,901

98,018

159,352

191,703

225,506

277,105

336,802

370,500

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

HK

$'0

00

Cumulated Net Profit

Cumulated Dividend Paid

{ KEY INDICATORS }

2008

HK$’000

2009

HK$’000

2010

HK$’000

2011

HK$’000

2012

HK$’000

1HFY13

HK$’000

Net Asset

Value 238,298 249,905 299,579 382,603 456,390 485,926

YOY

increment 28.9% 4.9% 19.9% 27.7% 19.3% 6.5%

Increment

since listing

in 2005

N/A N/A N/A N/A N/A 256.4%

Earnings per

share

HK$0.30 /

S$0.053

HK$0.16 /

S$0.030

HK$0.16 /

S$0.029

HK$0.25 /

S$0.040

HK$0.29 /

S$0.047

HK$0.16/

S$0.025

ROA 36.2% 17.4% 15.9% 18.0% 18.6% 10.3%

{ 5.5 CONSECUTIVE YEARS FINANCIAL SUMMARY }

FY2008

HK$’000

FY2009

HK$’000

FY2010

HK$’000

FY2011

HK$’000

FY2012

HK$’000

1HFY13

HK$’000

Revenue 1,893,938 1,566,262 1,562,157 2,167,430 3,232,279 2,123,296

Gross profit 182,340 142,665 144,054 169,336 190,227 114,671

Profit before tax 73,754 36,429 42,375 60,613 76,593 48,068

Tax (11,583) (5,761) (9,508) (10,246) (12,705) (8,183)

Profit for the year 62,171 30,668 32,867 50,367 63,888 39,885

Minority interests 837 (1,683) (936) (1,232) 4,191 6,187

Profit for

shareholders 61,334 32,351 33,803 51,599 59,697 33,698

Dividends 26,664 21,412 16,805 24,687 29,964 15,201

{ 5.5 CONSECUTIVE YEARS FINANCIAL SUMMARY }

FY2008

HK$’000

FY2009

HK$’000

FY2010

HK$’000

FY2011

HK$’000

FY2012

HK$’000

1HFY13

HK$’000

Non-current assets 58,162 81,582 131,829 224,862 286,749 287,361

Current assets 644,139 368,193 449,974 529,615 609,708 887,589

Current liabilities 458,910 194,074 272,554 357,536 409,046 660,658

Non-current

liabilities 5,093 5,796 9,670 14,338 31,021 28,366

Net assets 238,298 249,905 299,579 382,603 456,390 485,926

Issued capital 20,200 20,200 20,478 20,683 21,143 21,213

Debtors turnover

(days) 66.7 76.2 54.9 46.3 34.1 29.0

Creditors turnover

(days) 45.0 47.3 35.3 35.6 28.3 28.1

Stock turnover

(days) 27.3 25.9 22.1 20.9 18.2 14.5

OUR BUSINESS

{ INVESTMENT MERITS }

Strong profit track record: Profitable for the last 36 years, even

during the financial crises of 1997 and 2009

Regular and attractive dividend payout: 93% of IPO proceeds

paid back to public shareholders from 2005 to date

Sound management philosophy: Good risk and financial control

strategy in place

Clear cut strategies to deliver growth: Continuous expansion of product and service ranges horizontally and vertically + exploitation of recession proof businesses

{ GROWTH STRATEGIES }

FUTURE GROWTH

• Expansion of product and service ranges horizontally and vertically

• Exploit recession-proof businesses such as energy saving and environmental protection

• Reinforce financial and operational controls

• Improve Human Capital and Company Value

• Development in new industries and industries not

yet covered in extended market regions

Improve

Profit Margins

Network Expansion

In PRC, HK

& ASEAN

Optimise

Operating

Efficiencies

• Extends into the consumer electronics products

and accessories retail market

FUTURE DIRECTION

Keep growing our

marketshare in our 2 core

business segments

Achieve sustainable double-

digit growth in both turnover

and profitability

Reward shareholders with

relative high dividend

payout ratio

Become a high

performance distributor and

solutions provider in the

respective business industries

{ KARIN’S OBJECTIVES }

Hardware Software

Professional

Services

{ TRENDS & FUTURE FOCUS }

Display technology shift

from TFT to OLED

Components

Distribution

• Home surveillance security system

• Power-saving, slim, see-through,

higher contrast ratio, wide operating

temperature range

• Used in Smartphone, Metering,

Industrial Control.

Growth of China

Rising popularity of

energy savings solutions

Industrial Materials

&

Instrumentation

Technology shift

from MCU to ARM core

IC Application

Design Solutions

Total solution

in both hardware

and software

IT Infrastructure

• Environmental / New Energy :

Wind Power, Energy Saving Application

(Electric Car, LED Lighting, Inverter, etc.)

• Infrastructure (including maintenance) of

PRC :

Airport, Railway, MTR & Highway

Network

• From Traditional 8-bit, 16-bit, 32-bit MCU

→ ARM core: ARM7, ARM9, Cortex M0

• Preference for ARM : more powerful and

cost effective

• Extending into software solutions and

professional services provider

• Clinching distributorship with various

global networking product vendors

• Further enhance solution offerings in

network security to our channel resellers

Stringent cost controls

Offer services with higher margins

Cable : Electrical control cables branded by KARIN

Strengthening of IC Application Design and IT Services : Business units

enhancing products with higher margins through IP and service

incremental

{ IMPROVE PROFIT MARGINS }

Promote skill-set development among staff

Introduce staff achievement awards for professionalism, skill-

sets, and technology

Upgrade in-house IT infrastructure to promote synergy

building among business units

Automated eWorkflow

Group Intranet

Enterprise Instant Messaging Environment

{ IMPROVE HUMAN CAPITAL & COMPANY VALUE }

Thank You