Q1FY18 Results Presentation

Note: This presentation is to be read in conjunction with the announcement issued on SGXNET on 11 August 2017.

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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: Ms Candy Soh

Email: woon@cogentcomms.com Email: candysoh@cogentcomms.com

Tel: + 65 6704 9288

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)

• Auditors: PricewaterhouseCoopers

Integrated EMS Provider

• Engineering Design & Development

• Product Design & Deployment

• Plastic Injection Moulding

• Tool Design and Tool Fabrication

• Metal Stamping & Machining

• Printed Circuit Box Assembly and Box Build Assembly

• Supply Chain Management

Accreditations

ISO9001:2008, ISO14001:2004,ISO013485: 2003

TL9000 R5.5, TS16949: 2009, IPC J-STD-001

IPC-A-610 QML Class 3

Employees • As at 30 June 2017, around 4,000

Bloomberg Code VALUE.SP

Reuters Code VLUE.SI

ISIN Code BN2

Issued shares (M) 423.8

Mkt cap (SG$M) (4 Aug 2017) 349.7

Share price (SG cent) (4 Aug 2017) 82.5

Avg volume 3-mth ('000) 2,097

52 wk range (S$) (4 Aug 2017) 0.45 – 0.88

25.7%

74.3%

Shareholding

Executive Directors

Public Float

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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 2009 2012 2014 2015 2017

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

Received 2016 Above & Beyond –Pinnacle Award for Supplier Excellence

from Delphi

1992 2002 2003 2005 2007 2008

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

Became Phillips preferred supplier

for its Lighting segment

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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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Industrial & Commercial Electronics (Cont’d)

High Precision GPS for Industrial Use

Communication Products

Taiwan-listed CompanyToronto-listed Company

Company Based in North America

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Industrial & Commercial Electronics (Cont’d)

Access Card Readers

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

Consumer Electronics

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15W and 40W Bug Zappers

PCBA for Shavers & Electric Toothbrushes for Consumer Use

Consumer Lifestyle Products

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

Consumer Lifestyle Division of a Dutch MNC

Consumer Electronics (Cont’d)

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Smart Lighting with IOT Features

Wireless lighting contain various LED specially chosen to produce wide range of intensities and over 16 million colours;Wirelessly controlled by mobile application

Lighting Division of a Dutch MNC

Q1FY18 Financial Highlights

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Financial Highlights

HK$’M Q1 FY2018 Q1 FY2017 % Change

Revenue 695.7 477.5 45.7

Gross Profit 104.3 76.6 36.2

Gross Profit Margin 15.0% 16.0% -1.0% pt

Net Profit for the period

48.7 29.6 64.8

Net Profit Margin 7.0% 6.2% 0.8% pt

-12%-16%

-27%

-24%

-13%

9%

35%

44% 46%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18

Comparable sales growth%

15

Return to Revenue Growth%

Financial Highlights

Consumer ElectronicsIndustrial and Commercial Electronics

Revenue Contribution

34.6%

65.4%

Q1FY17

HK$313M

HK$165M

45.5%54.5%

Q1FY18

HK$379M HK$317M

Revenue Trend

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1,581.4 1,653.3 1,473.0

824.6 987.1

165.0316.5

628.8

780.0956.3

1,128.3

1,287.8

312.5

379.2

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

FY13 FY14 FY15 FY16 FY17 Q1 FY17 Q1 FY18

Consumer Electronics Industrial & Commercial Electronics

2,429.3

477.5

695.7

HK$’ M

2,210.2

2,433.3

1,952.9

2,274.9

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Quarterly Revenue

239.0141.0 164.4 165.0

261.1 270.9 290.1 316.5

287.5

293.5 277.5 312.5

312.6 316.7346.0

379.2

0

100

200

300

400

500

600

700

800

Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18

Consumer Electronics Industrial & Commercial Electronics

434.5

573.7

526.5

695.7

441.9477.5

636.1587.6

HK$’ M

54.2%47.3%

56.0%

37.3%42.7%

33.9%

8.5% 10.0% 10.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY16 FY17 Q1FY18

Europe

China & AsiaPacific

NorthAmerica

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Revenue by Shipment Destination

77.0

70.5 71.576.6

83.5

91.0 90.6

104.3

32.225.2 29.5

29.6

38.1

42.943.5

48.7

14.6%

16.2% 16.2% 16.0%

14.6%15.5%

14.2%15.0%

6.1%5.8%

6.7%6.2% 6.6%

7.3%6.9% 7.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18

Gross Profit Net Profit GP% Net Profit Margin

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Gross Profit & Net Profit Trend

72

6.6

80

8.5

85

7.3

93

8.6

99

1.2

74

0.3

99

2.7

98

1.7

1,5

92

.6 1

,91

9.4

47

7.9

50

5.8 6

89

.3

75

2.9

71

9.3

0

200

400

600

800

1000

1200

1400

1600

1800

2000

FY14 FY15 FY16 FY17 Q1 FY18

NAV Market Cap Net Cash balance

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Market Capitalisation & Net Cash Balance

HK’M

Earnings Per Share & Dividends Per Share

22

23

.2

13

.6 15

.2

31

.1

33

.2

19

.9

36

.9 36

.4

29

.0

36

.8

7.8

4.5

7.0

14

.0

17

.0

8.0

20

.0

20

.0

20

.0

20

.0

6.1%

11.8%

7.7%

9.8%

11.9%

6.0%

9.8%

5.3%*

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 FY17#

EPS * Dividend per share Dividend Yield

7.7%7.5%

# Quantum of dividend has increased by 10% under 1:10 bonus issue

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

SharePrice* (S$) 0.21 0.07 0.15 0.21 0.21 0.19 0.30 0.43 0.41 0.68

DividendPayout 30% 30% 42% 41% 47% 37% 49% 50% 63% 55% *

* Adjusted for 1:10 bonus issue

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Summary of Cash Flows

HK$’000 Q1FY18 Q1FY17

Operating Activities

Net cash generated from operating activities 22,907 47,565

Investing Activities

Net cash (used in)/generated from investing activities (58,219) 8,326

Financing Activities

Net cash generated from financing activities 2,086 -

Net (decrease)/increase in cash and cash equivalents (33,226) 55,891

Effect of foreign exchange rate changes (382) (212)

Cash and Cash equivalents

At beginning of the period 752,941 689,260

At end of the period 719,333 744,939

Balance Sheet & Key Ratios

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HK$’M Q1 FY18 FY2017

Working capital

Inventories 358.1 291.9

Trade Receivables

562.6 486.3

Trade Payables

(570.1) (484.7)

350.6 293.5

Net CurrentAssets

727.8 734.0

Net Cash 719.3 752.9

Net Assets 991.2 938.6

Turnover Days Q1 FY18 FY2017

Inventory 55.3 55.1

TradeReceivables

73.8 78.0

Trade Payables

(88.0) (91.5)

41.1 41.6

Key Financial Ratios

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# Share price as at respective period or year end date

*Restated/adjusted based on 1:10 bonus issue

SGD/HKD Ex rate: Q1 FY2018: 5.66;FY2017: 5.56;

Q1 FY18 FY2017

Price (SGD) # 0.80 0.745

NAV per share (SGD)*

0.42 0.40*

Cash per share (SGD)*

0.30 0.32*

Cash to Mkt Cap ratio

37% 47%

Q1 FY18 FY2017

Current ratio 1.7 1.8

ROE 19.7% 16.4%

ROA 9.8% 8.5%

PB ratio 1.92 1.68

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Business Outlook

Overview• Strong performance across all segments in Q1

• Revenue increased by 45.7%

• Profit attributable to owners of the Company rose 64.8%

Capturing CE opportunities

• Strong growth in Q1 mainly driven by the smart LED lighting products with IOT features

• Remains optimistic on the growth prospects of the smart LED lighting product as IOT devices are gaining more popularity

Capturing ICE opportunities

• Growth driven by in-car connectivity modules used in the automotive industry and printers

• Recently qualified by another automaker of served by an existing automotive customer

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Business Outlook

Corporate strategy &

Macro environment

• Ride on successful penetration into the automotive industry to pursue further opportunities in this industry and expand product portfolio and customer base

• Like most manufacturers, operating in an uncertain macro-economic environment

• Be mindful of the possible business impact such as fluctuations in raw material price and lead time in procurement

Reader should refer to section 10 of the Results Announcements for the complete commentary at the date of the announcement ofthe significant trends and competitive conditions of the industry in which the Group operates and any known factors or events that may affect the Group in the next reporting period and the next 12 months.