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UMS HOLDINGS LTDA Sustainable Growth Story

Q12017 presentation

Forward Looking Statement This presentation contains forward looking statements which can be identified by the context of the statementand generally arising when the Company is discussing its beliefs, estimates or expectations. Such statementsmay include comments on industry, business or market trends, projections, forecasts, and plans and objectivesof management for future operations and operating and financial performance, as well as any relatedassumptions.

Readers of this presentation should understand that these statements are not historical facts or guarantees forfuture performance but instead represent only the Company’s belief at the time of the statement were maderegarding future events, which are subject to significant risks, uncertainties and other factors, many of whichare outside the Company’s control. Actual results and outcomes may differ materially from what is expressedor implied in such forward looking statements.

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

Q22017 presentation 2

PRESENTATION AGENDA

About UMS Holdings Ltd

Market Trends

Opportunities for UMS

UMS Core Businesses – Well-poised to capture growth

Financial Performance and Cash Position

Forward Plans


About UMS

Stock Code: 558.SI

Market Cap : 437.7M (as at June 30, 2017)

Founded : 1984

Headquarters: Singapore


Stock Code: 558.SI

Market Cap : S$472.06M(as at Oct 19, 2017)

Founded : 1984

Headquarters: Singapore

UMS – Key Financial Ratios (19 Oct 2017)

Share Price : $1.08

PE Ratio : 13.33 times*

Earnings/Share : 2.68 cents (2Q 2017)/5.28 cents (1H 2017)

Price/Revenue : 3.19 times*

Shares outstanding : 430m shares

Est dividend yield : about 6% ( Based on dividend of 6 cents paid for FY2016 )


*Source: Bloomberg

What Does UMS Do?


Front-end Semiconductor Equipment Manufacturing:

Precision Machining

Milling, Turning, Grinding, EDM, Wire-cut

Welding

TIG, MIG, Orbital

Metal Finishing Process

Approved for over 50 special processes

Assemblies

Module assemblies

Gas line manifold & gas boxes

System integration

Contract Manufacturing (EMS)

Factory automation equipment

Standalone equipment

Our Positioning in the Semicon Value Chain


OEM for front-

end

semiconductor

equipment

manufacturing

Chip Makers

Eg. Samsung,

Intel, TSMC

Semiconductor

equipment makers

Eg. Applied Materials Consumer Electronics

Eg. Apple, Samsung smart

phones (Mobile Phones)

UMS - Global Manufacturing Facilities


Procurement and purchasing centre

IMT’s gas line business: Close proximity to key

customers’ R&D function

California, USA

IMT’s gas line business: Close proximity to key

customers’ volume production facilities

Texas, USA

Corporate Headquarter

140,000sq. ft.

R&D, engineering and other high-value activities

Singapore

Volume production

500,000 sq. ft.

Malaysia

9

Competitive Strengths

Q22017 presentation

1. Highly Integrated Manufacturing Process

Deep + Integrated Engineering Capabilities

Qualified for more than 50 special processes in the production of components for semiconductor equipment manufacturers

Special processes include anodizing, plating, chemical cleaning, vacuum welding and tube bending services

Short lead time

Control over quality

System Integration and Vendor Managed Inventory

Profit margin

10Q22017 presentation

2. Entrenched Client Relationship

Serves a select group of leading global corporations (e.g. Applied Materials Inc)

Business partner with Applied Materials with EDI arrangement for more than 10 years

Deep & continuous collaborative effort from R&D to manufacturing of components to subassembly to surface finishing

High barrier of entry for competitors


3. Strong Recurring Income Base

12

Significant portion of revenue derived from consumables components

Approximately S$20 million worth of consumables business annually

Strong recurring income base mitigate the cyclical nature of the semiconductor industry

Q22017 presentation

4. Capacity for Growth Approximately 640,000 sq. ft. of combined space in

Singapore and Penang, Malaysia to meet new demands and customers

Relocated majority of production from Singapore to Malaysia which has a lower cost infrastructure to improve cost competitiveness and labour availability


5. Strong Cash Position

Cash and bank balances of S$44.05 million as at 30 June 2017

Ability to take advantage of M&A opportunities to drive growth forward


Market Trends


Semicon Equipment Market

Fab Tool Spending on Pace to Shatter a Six-year-old Record

• Total fab equipment spending is expected to grow 37 percent this year to reach $55 billion, according to the latest forecast from the SEMI trade association. This would obliterate the previous record for combined spending on new and refurbished equipment of $40 billion set in 2011.

• SEMI expects fab tool spending to increase by another 5 percent next year to reach $58 billion.

• Out of 296 front end fabs and lines tracked by SEMI, 30 are expected to spend more than $500 million on equipment this year, according to the trade association.

Source: “Fab Tool Spending on Pace to Shatter Record , EE Times, 20/9/2017


Supply of Silicon Wafers Stays Tight

The global supply of 12-inch silicon wafers will further tighten over the next two years, when new fabs in China are set to come online, according to industry sources.

• Demand for 12-inch silicon wafers has been driven by the memory industry transition to 3D NAND, China-based memory startups' new fab projects, and logic IC foundries' capacity expansions mainly in China, said the sources. Prices for 12-inch wafers have rallied as high as 50% since 2017.

• Prices for 8- and 12-inch silicon wafers will continue their growth in 2018, Formosa Sumco said.

Source: “Supply of 12-inch Silicon Wafers to Stay Tight Through 2019” Digitimes, 22/9/2017


Semicon Equipment Market

Financial Performance


Annual Revenue

19

114.4 113.2120.5

109.8 111.1104

84.5

0

20

40

60

80

100

120

140

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1HFY2017

S$M

Q22017 presentation

Annual Profit

20

27.6

17

28.8

24.9

34.3

22.6 22.4

0

5

10

15

20

25

30

35

40

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1H2017

S$M

24.1%

15.0%

23.9%

22.6%

30.8%

21.7% 26.5%

Q22017 presentation

Geographical Contribution (2011-2017)

21

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1H2017

Others 15.2 16.5 20.6 26.8 28.3 24.3 11.7

Malaysia 2.8 1.6 2 1.5

United States 24.2 19.3 22.6 22.6 26.6 10.8 8.7

Singapore 60.6 64.2 56.8 60.4 54.6 67.2 62.6

60.6 64.256.8 60.4 54.6

67.2 62.6

24.2 19.322.6

22.626.6

10.88.7

2.8 1.6 21.5

15.2 16.5 20.6

26.8 28.324.3

11.7

0

20

40

60

80

100

120

Q22017 presentation

Segmental Contribution (1HFY2017 vs 1HFY2016)

22

98.80%

1.20%

1HFY2017 Revenue

Semicon

Others

98.27%

1.73%

1HFY2016 Revenue

Semicon

Others

Q22017 presentation

Revenue – Sequential

23

25.4

34.5 34.3

28.7

24.822.1

27.5

31 30.7

21.920.4

23.626.1

34.2

41.8 42.7

0

5

10

15

20

25

30

35

40

45

3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

S$ M

Q22017 presentation

Net Profit – Sequential

24

4.8

11

8.6

7.2

5.5

3.7

7.58.3 8.5

10

3.4

6.5 6.86

11.2 11.3

0

2

4

6

8

10

12

3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

S$M

18.9%

31.9%

25.1%

25.1%

22.2%

16.7%

27.3%26.8% 27.7%

45.7%

16.7%

31.5%16.7%

26.8% 26.5%

17.5%

Q22017 presentation

Net Profit & Free Cashflow

25

27.6

17

28.9

24.9

34.3

22.6 22.5

31.729.3

25.8

28.931.3 31.2

17.1

0

5

10

15

20

25

30

35

40

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1HFY2017

S$SNet Profit Free Cash Flow

Q22017 presentation

Strong Dividend Track Record

26

FY20121 FY2013 FY20142 FY2015 FY2016

Dividend per

share

5.0 cents 6.5 cents 6.0 cents 6.0 cents 6.0 cents

Earnings per

share

4.94 cents 6.73 cents 5.81 cents 7.99 cents 5.26 cents

Dividend Yield

(based on share

price of S$0.545)

9.1% 11.9% 11.0% 11.0% 10.0%

1UMS has instituted a quarterly dividend policy since middle of 20122UMS had issued one (1) Bonus Share for every four (4) existing ordinary shares in June 2014

6.0 Singapore cent per share of dividend was declared for FY2016

Q22017 presentation

More Rewards for Shareholders (1HFY2017)

Special one-for-four bonus share issue

Tax-exempt interim dividend of 1 cent per share


Growth Opportunities &

Forward Plan


Accelerated Growth Drivers – Semicon Boom

Strategic Partner to AMAT, the global leader in materials engineering solutions for chip production and advanced display.

AMAT expects strong double-digit growth to extend to 2018

Capacity Expansion – about 640,000 sq. ft. of combined space in Singapore and Penang, Malaysia to meet new customer demands


Accelerated Growth Drivers – Diversification To expand beyond semiconductor industry – into high growth sectors

Acquired 10% stake in All Star Manufacturing – an aerospace metallic component manufacturing company in Malaysia in January 2016

Acquired 51% stake in Kalf Engineering Pte Ltd. (“Kalf”), a specialist in water and chemical engineering solutions for the offshore, power generation and chemical industries in March 2017.

Positive returns to Group’s top and bottom-lines expected as early as FY2017


Forward Plans Continue to drive growth in the existing semiconductor business

segment Ramp up production in Malaysia. New production facilities completed and

operational in 3Q 2017.

Increase production capacity by investing up to RM80 million in Penang over the next few years which includes building new cleanrooms, take advantage of a larger pool of talent and a more favorable tax status.

Grow sales – both integrated systems and components business


Forward Plans

Pursue diversification strategy with new business opportunities in potential growth areas

Utilize cash to invest in new businesses beyond semiconductor industry to enhance returns

Potential spin-offs of investments in the future to unlock shareholder value


Summary : Key Investment Merits

1. High Double-Digit Profit Margin

2. Strong positive cash generation ability

3. Strong recurring income base

4. Track record of high dividend pay-out ratio and dividend yield

5. Attractive valuation at the current share price level

6. Stable and proven management team

7. Bright long term prospects of global semiconductor equipment

8. New growth drivers from M&A/Diversification Strategy


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