Transcript Document

ABOUT EXCELPOINT TECHNOLOGY LIMITED

Excelpoint Technology Ltd is a design and development engineering solutions provider serving OEMs, CMs and sub-contractors in various industries including telecommunications, consumer electronics, industrial and instrumentation electronics, automotive, computers and computer peripherals.

OUR BUSINESS MODEL

OEM / EMS Sub-System Manufacturing Design & Development Services Supply Chain Management Field Application Services Value Added Distribution Distribution

OUR ROLE IN THE CUSTOMER’S VALUE CHAIN

We are the “Solutions Partner”; providing ”One-Stop Solution” to meet customer requirement. A value chain service from product concept, development, attain international approval, manufacturing; till door-step delivery.

Client Product Concept Proto Develop ment H/W Develop ment S/W Develop ment Product Test & Qual Pre/Mass Production Mktg & Sales After Sales

Our Design & Development Services Option

Reference Design; Design Review, Services and Applications Production Test Plan & Systems Pre-testing International Type Approval & Qualifications Development, Prototype, Mass Production & Logistics Marketing & Sales Turnkey Project Management

A REVIEW OF OUR Q4 & FY 2004 FULL YEAR PERFORMANCE

*

Q4 FY2004

KEY CUSTOMERS

TCL MOBILE

SHANGHAI SUNCOM

FLEXTRONICS

BELL SYSTEMS

MIDAS COMMUNICATION

OUR BUSINESS STRATEGY

DESIGN-IN

Leverage and complement upon the strengths of our principal’s chipset solutions.

Focus on our value add on creating new applications, cost down, and productization.

Differentiate by controlling software embedded into our solutions.

OUR BUSINESS STRATEGY

DESIGN-IN

Provide risk sharing models with low Non Recurring Engineering charges (NRE) to encourage customers to adopt our solutions.

Develop innovative reference solutions to assist our customers to differentiate themselves from their competitors.

ENGINEER VS EMPLOYEE PROFILE

FY Q1-04 Q2-04 Q3-04 Q4-04 FY03 Var(%) No. of Employees 440 463 No. of Engineers 108 483 497 421 18 110 111 121 87 39

D&D AND FIELD ENGINEERS vs NON ENGINEERING STAFF

(nos of persons)

2004 121 2003 87 2002 292 88 2001 2000 0

* Forecast

40 50 54 194 253 100 150 200 250 300 D& D & Field Engineers Mgmt, Mktg & Others 334 350 376 400

OUR GEOGRAPHIC REACH

Excelpoint has a network of 36 subsidiaries and representative offices located across the Asia Pacific.

EXCELPOINT’S GEOGRAPHIC FOOTPRINTS SINGAPORE

Headquarter • • • • • • • • •

CHINA

Beijing Chengdu Xian Nanjing Qingdao Shanghai Xiamen Shenzhen Dong Guan •

HONG KONG

• •

MALAYSIA

Kuala Lumpur Penang

PHILIPPINES

Manila

THAILAND

Bangkok

• • • • •

INDIA

New Delhi Mumbai Pune Hyderabad Bangalore •

AUSTRALIA

Sydney

OUR FINANCIAL PERFORMANCE

1,100,000 900,000 700,000 500,000 300,000 100,000 -100,000

REVENUE

(in S$'000)

651,490 211,926 164,767 145,626 129,171 2003 Rev

Q1

50 %

Q2

976,542 184,868 245,557 287,455

Q3

258,662 2004 Rev

Q4

NET PROFIT AFTER TAX

(in S$'000)

15000

10,689

10000 5000 0 3,721

4,880 589 1,499

FY 2003 -5000

4,355 5,915

3,632 FY 2004

-1,722

Q1 Q2 Q3 Q4 Full Year

12,180

NET PROFIT AFTER TAX MARGIN (%) 2.5

2 1.5

1 0.5

0 -0.5

-1 -1.5

1.7

Q1FY04 2.1

Q2FY04 1.5

Q3FY04 Q4FY04 -0.9

CORE BUSINESSES Q404

• Design-in Services • Distribution Services

Distribution Services 49.6%*

* By Revenue

Design-in Services 50.4%*

300,000 200,000 100,000 0

REVENUE BY BUSINESS ACTIVITY

(in S$'000)

76,754 91,656 135,172 93,212 Q4 2003 Design-in Distribution Q4 2004

1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

REVENUE BY BUSINESS ACTIVITY

(in S$'000)

361,495 260,133 615,047 391,357 FY2003 Design-in FY2004 Distribution

India 6% REVENUE BY GEOGRAPHIC LOCATIONS

(S$ '000) - Q404

M'sia 7% Others 10% S'pore 17% China 60%

WORKING CAPITAL MANAGEMENT

(Days)

90 80 70 60 50 40 30 20 10 0 60 53 46 65 Debtors' T/O 81 63 52 70 Creditors' T/O 50 40 35 51 Inventory T/O 2002 2003 FY2004 Q4 FY2004

CASH FLOW

(S$ ‘000)

Operating cash flows before reinvestment in working capital

Net cash flows from/ (used in) operating activities

Net cash flows used in investing activities

Net cash flows used in financing activities

Cash & Cash equivalents at period end Q4 2004 (372) 5,180 (421) (30,490) 20,683 Q4 2003 6,989 8,786 (201) (2,432) 20,253

CASH FLOW

(S$ ‘000)

Operating cash flows before reinvestment in working capital

Net cash flows used in operating activities

Net cash flows used in investing activities

Net cash flows from financing activities (Includes net IPO proceeds of $34 million)

Cash & Cash equivalents at period end FY2004 20,188 (14,001) (1,413) 17,764 20,683 FY2003 17,064 (3,211) (971) 11,576 20,253

FY KEY FINANCIAL HIGHLIGHTS Q4-04 Q4-03 Var.(%) 2004 2003 Var.(%) Revenue (S$m) 184.9 211.9 12.8 976.5 651.5 49.9

Op Profit (S$m) -0.8

6.5 - 111.6 18.7 15.6 20.1

PAT (S$m) -1.7

4.9 - 135.3

12.2

10.7 13.9

EPS (cents) * ROE (%) - 0.35 1.40 -125.0 2.52 3.07 - 17.9

- 2.5

19.2 - 113.0 17.5 42.2 - 58.5

* For comparative purposes, EPS is calculated based on profit attributable to shareholders and the weighted average post-invitation share capital of 482,378,299 (Q4, FY2003: 347,971,200).