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unlocking thehuman potential

Omni Mold Ltd annual report 2002

Omni Mold Ltd51 Joo Koon CircleSingapore 629069Telephone: 65 6861 1161Facsimile: 65 6861 0119Email: [email protected]://www.omni.com.sg

Om

ni Mold Ltd annual report 2002

written, designed & produced by LexiconDesign.com

contents

chairman’s statement 02operations review 05managing director’s interview 06board of directors 09unlocking the human potential

developing high performance teams 12nurturing a learning culture 14meeting high customer expectations 16

financial review 20value-added statements 22corporate information 24corporate governance

corporate governance statement 26profile of directors 33profile of management 36

financial statementsdirectors’ report 38statement by directors 46auditor’s report 47profit and loss accounts 48balance sheets 49statements of changes in equity 50consolidated cash flow statement 51notes to the financial statements 52statistics of shareholdings 74notice of annual general meeting 75notice of books closure date 78proxy form 79

corporate profile Incorporated in 1989 as Omni Mold Co Pte Ltd., Omni Mold Limited waslisted on the Singapore Exchange in 1994. We aim to be the premier ultra-precision mold manufacturer in Singapore, capable of designing, engineeringand producing sophisticated and finely detailed steel molds for applicationin stringent specification industries such as electronics, automotive, consumerIT, telecommunications and pharmaceuticals and medical devices. Growingrapidly with the demand for high cavitation, high precision plastics injectionmolds, our widening customer base now covers America, Europe, Chinaand the Asia Pacific region.

In 1998 The Tech Group Inc., a specialist in precision tooling based inScottsdale, Arizona and the premier custom molding company with 10manufacturing sites worldwide, took a strategic stake in Omni Mold. Ourclose association with our major shareholder is a key ingredient in our currentsuccess and future growth through the development of fresh, creativeengineering services and collaboration in design, prototyping andmanufacturing.

our vision Working together to create the most rewarding business environment forall stakeholders who include our customers, associates, suppliers, communityand investors

our mission To provide a one-stop turnkey solution at competitive prices for all plasticsengineering needs

our strategy To continually look for opportunities, investments and manufacturinglocations that meet the standards set out in our mission and vision andwhere we can leverage on new expertise and add value

cover picture (left to right)

Chua Keng Hock (Manufacturing Manager) • Vincent Lek (Engineer-CAD) • Johari (Assistant Engineer-CAD)

Omni Mold Ltd annual report 2002 01

Omni Mold’s vision is to be the best and most well-managed mold manufacturer in the region. Our focus ison continually challenging and improving the way we dothings to ensure total customer satisfaction. We recognisethat it is the quality of our people that will help us achievethis vision. In this report, we feature a series of initiativesthe Group has undertaken in order to meet the uniquechallenges we face in our business environment, andhow we are unlocking the human potential, throughemphasis on quality, training and empowerment.

02 Omni Mold Ltd annual report 2002

chairman’sstatement

from strength to strength

Following markedly higher fourth quarter sales, oursecond half sales showed a slight improvement overthe first half of the year. Gross profit improved by 4.2%to $6.86 million although net profit attributable toshareholders declined by 7.1% to $3.79 million.

This is a respectable result in a difficult environmentand illustrates the strength of Omni Mold’s growthstrategy of targeting niche business segments byinvesting in a highly skilled workforce and cost-effectiveadvanced technologies.

FINANCIAL RESULTSThe Group achieved a turnover of $28.4 million as atend of 2002, a decrease of 13.4% from $32.8 millionin 2001. The decreased turnover was mainly due tocustomers' caution in making investment in view ofthe weak economy and fierce competition. The UltraPrecision Division contributed $2.7 million of turnoverrepresenting 10% of the Group's turnover, comparedwith 18.5% in 2001.

The Group's net profit before taxation of $4.2 millionfor 2002 was 18% lower than in 2001 due to lowerturnover and bigger exchange losses. The weakeningof the US dollar against the Singapore dollar resulted

in a foreign exchange loss of $0.7 million. However,margin was slightly improved due to effective cost-control measures.

The taxation charge for the Group is lower than theamount determined by applying the 22% statutoryrate due to the benefit of investment allowance.

Geographically, contributions to our revenue fromSingapore, at $12.85 million, were slightly above thosereported by the Americas, at $12.27 million, followedby the Asia Pacific region with $2.89 million and Chinawith $0.38 million. China remains a small portion ofOmni Mold's customer base while the US has declinedby 42.8% over 2001.

OUTLOOK FOR 2003The overall recovery for the global electronics industryremains undecided reflecting the global economicdownturn as well as uncertainties of the duration andaftermath of the war in Iraq. Economic growth willalso be affected by the global health scare from theSARS respiratory virus which spread from mainlandChina across the region in March 2003, discouragingmany international air travellers.

Given our refocus on the P&M sector, we will strive to retain customers’loyalty through better service and delivery of the highest quality products,linked to a superior workforce and leading-edge technology, and workto improve the Group's profitability in 2003.


The business outlook in healthcare and pharmaceuticals,however, is expected to improve. As we move onwardsthe catalyst of our growth will increasingly be our abilityto move into the pharmaceutical and medical industries.

Given our refocus on the P&M sector, we will strive toretain customers’ loyalty through better service anddelivery of the highest quality products, linked to asuperior workforce and leading-edge technology, andwork to improve the Group's profitability in 2003.

Our wholly-owned subsidiary, Omni Tech (Suzhou) Co.,Ltd, incorporated in March 2003, will enable us toachieve lower production costs to compete moreeffectively in the electronics sector. The Group willcontinue to explore other new business opportunitiesand expansion plans in the region to become morecost-competitive.

DIVIDENDSThe Board recommends a final tax-exempt dividend of10% and a special tax-exempt dividend of 20% forthe year ended 31 December 2002. This proposed

final dividend, if approved at the Annual GeneralMeeting to be held on 21 May 2003, will be paid on12 June 2003.

APPRECIATIONIn September 2002 Mr Tsai Jui Fong resigned as anAlternate Director to Mr Chen Wu-Chang and I wouldlike to thank him for his advice at Board meetings.

On behalf of the Board, I wish to thank all our staff fortheir contributions to our performance and readinessto meet ever-more demanding customer requirements.I would also like to express my sincere appreciation toour customers, business associates, suppliers andshareholders. I am grateful to members of the AuditCommittee and my fellow Directors for their counseland commitment.

Steven UhlmannChairman

chairman’sstatement


We are continuing to look for partnerships withcompanies who can add value and exploring otherparts of the region, such as Thailand and Vietnam, aswell as Eastern Europe for possible strategic alliancesin manufacturing. This will enable us to enhanceSingapore as the Asia operational hub for precisionmanufacturing, R&D, employee training, programmemanagement and procurement.

CONSUMER ELECTRONICS SECTORThe IT consumer and computer peripherals industry stillaccounts for over 84% of our total revenues and wewill continue to relocate low-cost manufacturing activitiesoutside Singapore to tap on cost advantagesand proximity to our customers in this market sector.

I-Omni Precision, our custom molding and contractmanufacturing joint venture in the Philippines, producesfull assembly products for Philips CD-ReWritable drives.

Our subsidiary, Omni Tech Design Pte Ltd, startedoperations in the third quarter of 2002. It is buildingproduct expertise to deliver complete ODMproduct solutions from concept to end of life cycle inthe computer product, and consumer electronics productcategories. OTD's principle skills are multi-disciplinedengineering and project management. Supplementalskills are provided through strategic relationships andare project managed by OTD.

Omni Mold outsources some production work to TheTech Group’s Zhuhai factory in China, acquired inDecember 2000. With WTO membership and continuedstrong foreign direct investment, China is expected tobe an increasingly attractive location for many

manufacturing companies and we are positioning thebusiness to take advantage of this positive economicdevelopment by relocating uncompetitive activities fromSingapore to China.

In March 2003 we incorporated a wholly-ownedsubsidiary, Omni Tech (Suzhou) Co., Ltd in the SuzhouIndustrial Park which will enable us to meet existingcustomer demand and cost competitive objectives.Omni Tech Suzhou will also support our manufacturingactivities in product design and development, toolingand molding.

We also opened a Hong Kong sales and marketingoffice in 2002 as a bridge to Southern China to betterexploit business opportunities in this huge growth ITand consumer electronics market.

PHARMACEUTICAL AND MEDICAL SECTORIt is a very slow and hard process to penetrate themedical industry, but Omni Mold expects this industryto prosper and lead the company to the next phase ofgrowth. More than half of The Tech Group’s businesscomes from this market sector and we are able toleverage on our close collaboration with them to developour capabilities to attract more P&M customers.

So far, the P&M sector accounts for a small percentageof Omni Mold's sales and, due to the US marketslowdown in 2002, we did not succeed in maintainingour sales’ momentum from previous years. However,we are very confident that we can meet FDA regulatoryrequirements and that we have made the rightinvestments in manpower and equipment to succeedas market conditions improve.


operationsreview

Over the last three years, Omni Mold has been working towards transforming its businessactivities to concentrate on more technically challenging and niche markets outside its traditionalIT consumer and commodity segments. This change of direction raises a number of issues whichare addressed by Mr Neo Age Seng, Omni Mold’s Managing Director.

Q: Why is Omni Mold looking to focus on new market sectors for future growth?

A: Due to rapid industrialisation in China, cost and also lead time have increasingly become determining factors for many ofthe customers we serve. We need to find new business to replace businesses where our Singapore operation is no longercompetitive and to broaden our customer and profit margins. We have, therefore, taken the decision to concentrate onniche areas where we can add value and where no one else in Asia can compete with us. These are industries producinghighly sophisticated products with technically challenging and stringent quality requirements for manufacture and handling.

Our key target customers are in the 10-15%, high growth pharmaceutical and medical industries. Many governments inthe region, notably in Singapore, have strategies in place to promote the life sciences sector as a key pillar of nationaleconomic growth and have generous funding and incentive programmes to attract multinational healthcare companiesand support start-ups in biomedical science. This is a very exciting market for us with our strategic association with TheTech Group allowing new technologies to be transferred to Singapore.

managingdirector’sinterview

Q/A


Q: How do you plan to succeed in these new markets?

A: We will selectively compete in high-end engineering areas where we can add value through the quality of our people,systems and processes. Our close collaboration with the Tech Group gives us a cutting edge in entering demanding medicalmarkets and with their help we have been gearing up both in terms of new skills and equipment to establish our capabilityas reliable suppliers in Asia.

Industries with a high level of expectations and validation requirement best fit with Omni’s automated processes. Alreadyknown as an industry leader in exploiting advanced manufacturing technologies, we are moving towards the use of roboticautomation workcells and have pioneered the introduction of software to manage short product life cycle. We are in thebusiness of building sophisticated tools that customers can totally rely on.

Q: What measures have you taken to become more competitive in your traditionalbusiness area?

A: The electronics and telecommunications market still has huge potential for Omni and our strategy is to reduce our costsby relocating manufacturing for this low-margin business offshore while retaining high value-added manufacturing inSingapore. Accordingly we are actively investigating potential alliances in Asia Pacific and Eastern Europe. We already havea custom molding and contract manufacturing joint venture in the Philippines and are exploring Thailand and Vietnam.

China is of particular interest as many multinational manufacturers are relocating to the Chinese market and normallysource locally. We have already outsourced some production work to the Tech Group’s factory in Zhuhai and will relocatemore engineering resources to support product design and development, tooling and moulding to our new subsidiary OmniTech Suzhou so as to become more price-competitive and provide customers with closer support.


managingdirector’sinterview

Q/A

Q: How do you see your Singapore operation developing?

A: Our Singapore operation is focused on high value-add skills and technologically intensive operations which enhance ourcompetence in precision engineering. We are investing to further improve cost and performance through the applicationof leading-edge hardware and software technology - areas where Singapore is traditionally strong. Therefore, Singaporeis in an excellent position to be our high-end manufacturing hub in this region.

We have made heavy investments of over $10 million on highly automated systems. A significant purchase in 2002 wasa $1.5 million computer numerically controlled (CNC) flexible manufacturing machining centre from Japan that can helpimprove plant productivity by as much as 30 to 40%. The Makino A88e CNC machining centre has eight fully-automatedchanging pallets that allow the machine to operate 24 hours a day, 7 days a week. It works 10 times faster than the olderCNC machines installed six years ago and is currently operating at a high 85% usage. In September 2002 we made a$700,000 investment in EDS’ Team Center (PLM Solutions) to enhance data integration. This is an excellent manufacturingdiscipline goal which adds greatly to the repeatability and reliability of delivery.

Q: When do you expect to see the payoff from your strategy?

A: This is a long-term and not a short-term investment. The pharmaceutical and medical industries are naturally very carefulin selecting who they like to deal with. But when they get you involved, they are committed to developing long-termbusiness relationships with you. Certainly, we expect ongoing developments to start moving in 2004 and remain hopefulof increasing this sector's contribution to around 30% of our revenue over the next few years.


operationsreviewboardof directors

1. Steven Uhlmann Chairman

2. Chen Wu-Chang Vice-Chairman

3. Neo Age Seng Managing Director

4. Steven Tan Chee Chuan Independent Director

5. Prof. Ho Nai Choon Independent Director


1 2

3 4

5

unlockingthe humanpotential


“With global competition and the changingprofile of the precision engineering industry,the challenge in Omni Mold is to groom allemployees to become knowledge workers. Ouremployees must not only be technically skilledbut must also be intellectually competent if weare to differentiate ourselves from others.”

Lim Sook Luan, HR & Administration Manager


We have taken steps both to retain and develop excellentpeople and to attract them to the company by fosteringclose relationships with institutions of higher learningin Singapore and the US.

Our last sponsored EDB-PLE scholar completed hisMasters Degree in Engineering (Manufacturing Systems)from Stanford University in 2002 and joined our threeexisting EDB-PLE scholars in various departments atOmni Mold. The first batch of four trainees under theSkills Redevelopment Programme also completedtheir Diplomas in Precision Engineering at NanyangPolytechnic. Omni Mold is very proud and honouredthat our employee, Ng Keng Chong, emerged asthe top student in his cohort and that the teamof Ng Keng Chong/Vincent Lek was awarded thetop prize for the group project. As our studentemployees return to work, we have seen payback ofour investment in such key areas as managing costsand working with customers.

In 2002, we hosted 13 engineering and businessinterns for periods ranging from 8 to 24 weeksfrom various polytechnics and universities, includinga final year undergraduate studying Design andManufacturing Engineering from the SaarlandUniversity (Germany) for 13 weeks. At a time whenmany other companies were reducing their studentintake we increased ours as we believe that this is animportant way in which we can contribute to the futuresuccess of the industry as a whole – at the same timewe benefited from having vibrant young minds in ourmidst and the students gained practical knowledge thatwill help them in their career choices.

Omni Mold also contributed towards the Merit Awardfor the Diploma in Chemical Process Technology atSingapore Polytechnic to recognise the outstandingacademic achievement of engineering students incourses related to our industry.

developing highperformance teams

opposite page from top: Lim Sook Luan (HR & Administration Manager)

Left to right: Shen Zhi Gang (Assistant Engineering Manager) • Lim Boon Siong (Program Manager) • V Thanga (Engineer-CAM)


“At Omni Mold, I was given the opportunity toadvance from a machinist, moldmaker tobecome an Engineer-CAD/CAM. I can feel theeffects of the sponsored Diploma course on myprofessional performance. I have become moreanalytical and learnt to appreciate the more ‘in-depth’ knowledge of various engineering topics.This has helped me to become a more value-add employee.”

Ng Keng Chong, Engineer-CAD/CAM


Our investment in people and commitment to systematicstaff development was recognised by SPRING Singaporethrough the People Developer Award for Omni Moldin June 2002.

Our skilled workforce including experienced toolmakers,designers and machinists is an invaluable asset as wefocus increasingly on more technically challengingbusiness opportunities. It is their teamwork, cross-functional abilities and shared learning and skills thatenable us to guarantee to our customers that ourmanufacturing processes will be of a consistently highstandard.

Our structured and systematic approach to employeedevelopment very much mirrors the strategy advocatedby the People Developer Standard and is responsive toour business needs. Already we can see positive resultsfrom our investment in people during 2002 in theirgreater capacity to work as teams and to use theircombined abilities in engineering and design to makeus more competitive. This is also evident in the successof our internal Innovation and Creativity Award scheme.

nurturing alearning culture

opposite page from top (left to right):

Ng Keng Chong (Engineer-CAD/CAM) • Lin Hui (Supervisor-Assembly) • Huang Wei (Mold Maker)


“As they were a new customer, we had to defineexactly what they needed and, thanks to constantfeedback and our designer Ng Keng Chong'sattention to detail, they were very impressedwith our service. This was especially importantbecause, prior to visiting Singapore, they hadhad bad experiences in Taiwan and Malaysia.Our mold is able to run seven seconds fasterthan their existing mold and two seconds fasterthan the target that they set.”

Leong Wai Keong, Business Development Manager


In January 2002 we were re-certified to ISO 9001: 2000at all our sites in Singapore for design manufacturing.We are currently working towards QS9000 for theautomotive industry and EN4600 for the pharmaceuticaland medical industries.

Quality is an integral part of Omni's culture and is builtinto our core competencies - tool design and consultancy,programme management, mold construction andengineering. We are committed to creating a workingenvironment where the quality of output is dependenton the process and not on individuals. This entailsinvestment not only in people but in hi-tech, hi-speedequipment at the cutting-edge of technology.

Our dedicated commitment to excellent quality,comprehensive service and prompt delivery is shown

in our regular internal quality audits and also ourstringent audits of suppliers to ensure that they meetthe Omni Mold criteria.

In 2002 we made a huge dollar investment in systemsand equipment which affected our bottom line lastyear but will pay-off in the long-term as we start toincrease our customer base in the pharmaceutical andmedical industry and other sectors where added valueis a significant competitive advantage. With our fully-automated system process from order-taking to delivery,for example, Omni can be a key and valued supplier tothose companies requiring product lifecyclemanagement.

meeting highcustomer expectations

opposite page from top (left to right):

Wong Wee Len (QA Technician) • Jenny Goh (Engineer-QA/Management Representative) • Huang Dao Yong (Engineer-QA/Supervisor) •Chris Kam (Technician-QA)

Zhou Chong Hao (Assistant Manufacturing Manager) • Celest Yeo (Assistant Engineer-Project) • Mr Kenichiro Inoue (Canon Senior Engineer, Tooling/Die Promoting Project-

Asia, Office Imaging Products)


harnessingtechnology

Main Photo: Makino A88e CNC machining centre

Liong Siew Lan (Assistant Engineer-CNC)


financialreview


1 FINANCIAL PERFORMANCE

1.1 Turnover:The Group achieved a turnover of $28.4 million as at end of 2002, a decrease of 13.4% from $32.8 million in2001. The decrease in turnover was mainly due to customers’ caution in making investment and fierce competition.

1.2 Gross MarginDespite a lower turnover, the gross margin improved to 24% in 2002, compared with 20% in 2001. Theimprovement was due to effective cost-control measures.

1.3 Profit Before Tax and Minority Interest (PBTMI)The Group’s PBTMI of $4.2 million for 2002 was 17.9% lower than in 2001. This was mainly due to the weakeningof the US dollar against the Singapore dollar resulted in a foreign exchange loss of $0.7 million, as comparedto a foreign exchange gain of $1.2 million in 2001.

1.3 Cash FlowsIn 2002, the Group’s net cash generated from operating activities was $4.9 million, compared to $10.2 millionin 2001. The substantial decrease was due to working capital movement arising from higher debtor balances.

For the investing and financing activities, the group spent $3.3 million on purchase of fixed assets and paid outdividends of $1.1 million. In addition, there was a net drawdown of $1.7 million loan in 2002.

The net cash inflow for 2002 was $1.4 million, compared to a net cash inflow of $5.4 million in 2001. As at31 December 2002, the Group’s cash and cash equivalents has improved to $13.3 million.

1.4 Earnings Per Share (EPS)The basic and diluted EPS for 2002 was 3.51 cents and 3.44 cents respectively. Compared to 2001, the basicand diluted EPS decreased by 0.27 cents and 0.33 cents respectively. The lower EPS was a result of lower profitafter tax for 2002.

1.5 DividendsThe Board recommends a final tax-exempt dividend of 10% (i.e. $0.005 for each share of par value $0.05) anda special tax-exempt dividend of 20% (i.e. $0.010 for each share of par value $0.05) for the year ended 31December 2002. Payment of the dividends is subjected to the approval of the shareholders of the Company atthe forthcoming Annual General Meeting.

2 RISK MANAGEMENT

2.1 Operational RiskThe Group’s principal activities are in mold design and fabrication and the operations are mainly in Singapore.In addition, there is a risk of customer and industry concentration due to our dependence on the few multi-national corporations and the computer and computer peripheral’s industry.

As part of the Group’s business strategy, the Group is exploring the possibilities of setting up an operation beyondSingapore to lower its cost and broaden its customer base. The Group has also started its product design anddevelopment operations to expand its scope of activities and to secure new business opportunities from otherindustries such as the automotive, healthcare, pharmaceutical and food packaging industries.


2.2 Financial RiskThe group is exposed to market risk, including primarily changes in interest rates and currency exchange ratesand uses derivatives and other instruments in connection with its risk management activities. The group doesnot hold or issue derivative financial instruments for trading purposes.

The Board reviews and agrees policies for managing each of these risks as summarized below.

Interest Rate RisksThe group’s exposure to market risk for changes in interest rates relates primarily to the group’s fixed depositsand long-term debt obligations. The group’s policy is to manage its interest cost using a mix of fixed and variablerate debt.

Liquidity RiskTo manage liquidity risk, the group monitors its net operating cash flow, maintains a level of cash and cashequivalents and secured committed funding facilities from financial institutions. To ensure continuity of funding,the Group’s policy is that at least half of its borrowings should mature in 5 years’ time. Short-term funding isobtained from overdraft facilities.

Foreign Exchange RiskThe group’s major foreign exchange risk exposures results from sales transactions denominated in foreigncurrencies, primarily in US dollars. The Group does not have formal policies for managing its foreign exchangerisk. In addition to transactional exposures, the group is also exposed to foreign exchange movements on its netinvestment in foreign associates.

Credit RiskThe carrying amount of investments, trade and other receivables, and cash represent the Group’s maximumexposure to credit risk. No other financial assets carry a significant exposure to credit risk. It is the group’s policyto enter into financial instruments with a diversity of creditworthy counter parties. Thus, the Group has nosignificant concentrations of credit risk. Derivative instruments are entered into, and cash is placed, with substantialfinancial institutions.

Turnover(S$million)

98 99 00 01 02

14.1 23.0 33.4 32.8 28.4

Profit/Loss Before Tax(S$million)

98 99 00 01 02

0.9 2.3 3.5 5.1 4.2

Shareholders’ Funds(S$million)

98 99 00 01 02

11.5 13.7 16.4 20.2 22.8

Total Assets(S$million)

98 99 00 01 02

17.3 26.3 33.6 31.6 40.1


98 99 00 01 02

0.40 0.43 0.44 0.52 0.50

Value-added per $investment in fixed assets($)

98 99 00 01 02

7,289 9,463 11,974 15,223 15,251

98 99 00 01 02

Value-addedfrom operations($’000)

0.52 0.41 0.36 0.46 0.54

Value-addedper $ sales($)

value-addedstatements

98 99 00 01 02

63 76 84 103 101

Value-addedper employee($’000)

98 99 00 01 02

121 186 234 221 187

98 99 00 01 02

Turnoverper employee($’000)

1.41 1.56 1.62 1.73 1.95

Value-addedper $ employment cost($)

S$’000 1998 1999 2000 2001 2002

Turnover from operations 14,054 23,037 33,432 32,766 28,383Less: Purchase of goods and services 6,765 13,574 21,458 17,543 13,132

Value-added from operations 7,289 9,463 11,974 15,223 15,251

Other income 378 364 615 646 496Gain/(loss) on foreign exchange 279 317 992 1,171 (709)Share of profit/(loss) of associated company (93) 7 23 63 69Impairment loss on investment - - - (83) -

Total value-added available for distribution 7,853 10,151 13,604 17,020 15,107

Distributed as follows:To employees

Salaries and other staff costs 5,176 6,061 7,407 8,793 7,813

To governmentCorporate and property taxes 45 25 436 1,094 483Other levies 62 26 33 35 36 107 51 469 1,129 518

To providers of capitalInterest to banks & other lenders 153 152 249 261 142Dividends to shareholders 177 359 359 1,078 1,617

330 511 608 1,339 1,759Retained in the businessDepreciation 1,555 1,607 2,375 2,761 2,873Retained profits 685 1,921 2,745 2,998 2,145

2,240 3,528 5,120 5,759 5,017

Total value-added 7,853 10,151 13,604 17,020 15,107

Average no. of employees 116 124 143 148 152No. of employee (as at beginning) - - - 155 141No. of employee (as at close) 117 130 155 141 162

Fixed assets @ cost as at beginning 17,626 18,388 25,250 28,961 29,667Fixed assets @ cost as at close 18,388 25,250 28,961 29,667 31,622Average investment in fixed assets @ cost 18,007 21,819 27,106 29,314 30,644

Value-added per employee ($’000) 63 76 84 103 101Turnover per employee ($’000) 121 186 234 221 187Value-added per $ sales ($) 0.52 0.41 0.36 0.46 0.54Value-added per $ employment cost ($) 1.41 1.56 1.62 1.73 1.95Value-added per $ investment in fixed assets ($) 0.40 0.43 0.44 0.52 0.50


corporateinformation


DIRECTORSSteven Uhlmann Chairman

Chen Wu-Chang Vice-Chairman

Neo Age Seng Managing Director

Steven Tan Chee Chuan Independent Director

Ho Nai Choon Independent Director

AUDIT COMMITTEESteven Tan Chee Chuan Chairman

Ho Nai Choon Member

Steven Uhlmann Member

NOMINATING COMMITTEESteven Tan Chee Chuan Chairman

Ho Nai Choon Member

Neo Age Seng Member

REMUNERATION COMMITTEESteven Tan Chee Chuan Chairman

Ho Nai Choon Member

Steven Uhlmann Member

SECRETARYDorothy Ho

REGISTERED OFFICE51 Joo Koon CircleSingapore 629069Telephone: 65 6861 1161Facsimile: 65 6861 0119Email: [email protected]://www.omni.com.sg

SHARE REGISTRARLim Associates (Pte) Ltd10 Collyer Quay#19-08 Ocean BuildingSingapore 049315

AUDITORSErnst & YoungAudit Partner: Teo Li Ling (Since financial year 2002)

BANKERSUnited Overseas Bank Limited

2001 Final and bonus dividends paid 29 May 2002Announcement of 2002 half year results 29 August 2002Announcement of 2002 full year results 20 February 2003Annual General Meeting 21 May 2003Proposed 2002 final and special dividends payment date 12 June 2003

financialcalendar

written, designed & produced by LexiconDesign.com

contents

chairman’s statement 02operations review 05managing director’s interview 06board of directors 09unlocking the human potential

developing high performance teams 12nurturing a learning culture 14meeting high customer expectations 16

financial review 20value-added statements 22corporate information 24corporate governance

corporate governance statement 26profile of directors 33profile of management 36

financial statementsdirectors’ report 38statement by directors 46auditor’s report 47profit and loss accounts 48balance sheets 49statements of changes in equity 50consolidated cash flow statement 51notes to the financial statements 52statistics of shareholdings 74notice of annual general meeting 75notice of books closure date 78proxy form 79

corporate profile Incorporated in 1989 as Omni Mold Co Pte Ltd., Omni Mold Limited waslisted on the Singapore Exchange in 1994. We aim to be the premier ultra-precision mold manufacturer in Singapore, capable of designing, engineeringand producing sophisticated and finely detailed steel molds for applicationin stringent specification industries such as electronics, automotive, consumerIT, telecommunications and pharmaceuticals and medical devices. Growingrapidly with the demand for high cavitation, high precision plastics injectionmolds, our widening customer base now covers America, Europe, Chinaand the Asia Pacific region.

In 1998 The Tech Group Inc., a specialist in precision tooling based inScottsdale, Arizona and the premier custom molding company with 10manufacturing sites worldwide, took a strategic stake in Omni Mold. Ourclose association with our major shareholder is a key ingredient in our currentsuccess and future growth through the development of fresh, creativeengineering services and collaboration in design, prototyping andmanufacturing.

our vision Working together to create the most rewarding business environment forall stakeholders who include our customers, associates, suppliers, communityand investors

our mission To provide a one-stop turnkey solution at competitive prices for all plasticsengineering needs

our strategy To continually look for opportunities, investments and manufacturinglocations that meet the standards set out in our mission and vision andwhere we can leverage on new expertise and add value

cover picture (left to right)

Chua Keng Hock (Manufacturing Manager) • Vincent Lek (Engineer-CAD) • Johari (Assistant Engineer-CAD)

unlocking thehuman potential

Omni Mold Ltd annual report 2002

Omni Mold Ltd51 Joo Koon CircleSingapore 629069Telephone: 65 6861 1161Facsimile: 65 6861 0119Email: [email protected]://www.omni.com.sg

Om

ni Mold Ltd annual report 2002

unlocking the human potentialhow we are unlocking the human potential, through emphasis on quality,...

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