July 2011
1 This presentation may contain forward-looking statements concerning Asia Pacific Wire & Cable Corporation. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. Asia Pacific Wire & Cable Corporation undertakes no duty to revise or update any forward- looking statements to reflect events or circumstances after the date of this presentation. Safe Harbor Statement
2 Equity Snapshot NASDAQ CM Ticker:APWC Price (06/21/2011):$4.95 Market capitalization:$68 million Revenues (TTM):$486 million Net income (TTM):$23 million Diluted shares outstanding:13.8 million Diluted EPS (TTM):$1.66 Net book value per share (03/31/2011):$11.35 Fiscal year ends:December
3 Taiwan-based leader in several Asia-Pacific markets Strong and growing underlying market demand Broad geographic coverage offers diversification Experienced and knowledgeable in-house sales, service & technical team Improving financial performance including solid revenue growth Strong balance sheet, cash flow, and an attractive valuation Investment Highlights
4 Company Overview Founded in 1996 Headquartered in Taipei, Taiwan Subsidiaries: China, Thailand, Singapore and Australia Core business: manufacturing and distribution of wire and cable products Additional services: project engineering of Supply, Delivery and Installation (SDI) services for power cables Total number of employees: approximately 1,715 6
THAILAND AUSTRALIA CHINA SINGAPORE Headquarters % 42.0% 10.2% 12.3% Locations and Facilities Others:Distributed products of 4.8% include Singapore, Australia, and Thailand As of March 31, Pacific Electric Wire & Cable (Shenzhen) Co., Ltd. Shanghai Yayang Electric Co., Ltd. Shandong Pacific Fiber Optics Cable Co., Ltd. Shandong Pacific Rubber Cable Co., Ltd. Ningbo Pacific Wire and Cable Co., Ltd. CCH (Crown Century Holding) Hong Kong Charoong Thai Wire & Cable Public Co., Ltd. Siam Fiber Optics Co., Ltd. Siam Pacific Electric Wire & Cable Co., Ltd. Pacific-Thai Electric Wire & Cable Co., Ltd. Australia Pacific Electric Cables Pty., Ltd. Sigma Cable Co., Pte Ltd. Sigma-Epan Intemational Pte., Ltd. SDI project engineering Power cable Distributed products Fiber optic cable Enameled wire Employee headcount % Revenue contribution (1H09) Factories/op units
6 Global Industry Overview Wire & cable growth industry growth drivers Energy-related infrastructure spending Telecom-related infrastructure spending Construction cycle Industrial activity Local presence required High transportation costs Products need to meet regional specifications Handling and logistics ~ 80% of manufacturing cost attributable to raw materials Pass-through pricing generally utilized for long-term agreements About one-half of business priced short cycle Global Cable Production by Type Source: CRU estimates Global Fiber Optic Cable Market Growth Forecast (M f-km)
7 China Businesses Long-term partnership with China Unicom Products Enameled wire Telecom cable Fiber-optic cable Optical fiber (JV) Rubber cable Top Customers Telecom carriers Toolmakers and appliances makers Mining companies CAGR = 16.8%
8 Thailand Businesses Top-5 cable producer in Thailand Products Telecom cable Power cable (Al, Cu, HV) Enameled wire Fiber-optic cable Top Customers Local electric utilities companies Engineering companies Contractors Telecom carriers CAGR = 6.6%
9 Singapore Businesses Leading provider of power cable in Singapore Products Power cable SDI project engineering Distributed products Top Customers Electrical contractors Distributors Public utilities Board
10 Australia Businesses Leading provider of power and construction cables New opportunities for distribution due to pan – Asia trade agreement Top Customers Contractors Distribution Centers Products Low-voltage power cables Construction cables CAGR = 16.4%
11 Product and Service Portfolio Revenue ($ millions) % of Sales Revenue Gross Margin Products Months ended March 31, 2011 Telecom Cable$46.4$47.0$62.0$ %$ % Power Cable % % Enameled Wire % % Distributed Products %5.80.7% SDI Project Engineering Services %6.1(0.5%) Total$509.8$500.8$362.2$ %$ % * Weighted blended average
Quality Assurance ISO 9001: Quality Management System Certification ISO 14001: Environmental Management System Certification ISO 17025: Testing and Calibration Laboratories Certification UL: Japan Industrial Standard C.E.: Thailand Industrial Standard ISO: Australian Quality Accredited 12
13 Competitive Advantages Global competitors include Draka, Furukawa, Nexans, Prysmian, etc. Local competitors have advantages in sales, R&D spending or financial resources Competitors include both independent domestic and foreign suppliers Excellent customer service and knowledgeable sales and technical team Raw-material cost advantage over local producers Superior product quality and performance Reliable product supply and distribution Competitive Advantages Competitive Landscape First-mover advantage in key local markets
14 Growth and Expansion Strategy China Top growth opportunity for APWC over the next 10 to 15 years Increase capacity to meet market demand and maximize economy scale Drive marketing penetration into Shandong, Henan, Guangxi Sichuan, and Chongqing city, etc. Develop new products and expand capacity Australia Upgrade production facilities to increase efficiency and capacity Increase product portfolio through offering imported products Thailand Develop new cable products for auto, solar or other types of alternative energy solution Upgrade and expand facilities for new government projects Control production cost Singapore Re-introduce Sigma's products to Southeast Asian markets such as Vietnam and Brunei Offer complete solutions to our customers and improve response time to our customers Explore new contractors/partners in China for incremental business opportunities
15 History of Revenue Growth
Recovery in Gross Profit 16 USD Million
17 Rebound in Net Income USD Million
18 Summary Income Statement Year 12/31 (USD '000) month 2010 (unaudited) 3 month 2011 (unaudited Total Sales$500,798$362,231$469,330$104,868$121,801 Cost of Sales488,048315,840407,64293,442108,831 Gross Profit12,75046,39161,68811,42612,970 Income from Operations (16,294)18,45930,4945,1685,888 Income Before Taxes(20,068)19,57232,2785,7335,782 Net Income (Loss) attributable to APWC (13,649)10,08914,1403,7292,723 Basic and Diluted Income (Loss) per Share (USD) ($0.99)$0.73$1.02$0.27$0.20
19 Summary Balance Sheet As of (USD ‘000)12/31/200912/31/2010 3/31/2011 (unaudited) Cash and Cash Equivalents$41,53463,21774,866 Current Assets239,048329,461345,039 TOTAL ASSETS296,052386,923405,086 Bank Loans and Overdrafts(*)37,18567,35186,937 Other Current Liabilities74,72491,45784,075 Total Liabilities113,460161,211174,984 Total Shareholders’ Equity182,592225,712230,102 TOTAL LIABS and SHS’ EQUITY296,052386,923405,086 Current Ratio
20 Revenue and GP Analysis (unaudited) Revenue ($ Mil.) Gross Profit ($ Mil.)
21 Strong Management Team Andy C.C. CHENG – Chairman of the Board Mr. Andy C.C. CHENG was a member of the company’s Board of Directors from 2004 to 2005 and was re-elected in From 1987 to 2003, Mr. Cheng was the Vice President of procurement and later Executive Vice President and Chairman of the Investment division, all served at PEWC. Mr. Cheng was elected Chairman of the Board of APWC in October Chun Tang YUAN – Chief Executive Officer Mr. Chun Tang YUAN also serves as Chairman of PEWC since 2004 and has been the Director of Pacific Construction Corp. Ltd since He served as the Director of Taiwan Co-generation Corp from 2005 to Mr. Yuan is also the Chairman of Taiwan Electric Wire and cable Industries Association since He has served as the Supervisor to Taipei Importers/Exporters Association as well as the Director of Chinese National Federation of Industries in Taiwan since 1998 and 2004 respectively. Frank TSENG – Chief Financial Officer Mr. Frank TSENG has served as CFO since October Before joining APWCC, he was the deputy CFO for ABB Taiwan and, prior to that, the APAC regional controller for Phoenix Technologies, a Silicon Valley-based company that is publicly traded on NASDAQ. Mr. Tseng holds a Masters Degree of Accountancy from Georgia State University. He is also a CPA by the State of Illinois. Carson TIEN – Chief Operating Officer Mr. Carson TIEN serves as Chief Operating Officer since 2005 and has been with Pacific Electric Wire and Cable Group Companies since He started as engineer in PEWC's Tao Yuan plant in 1969 and later promoted to plant manager in 1977 and Assistant VP responsible for Engineering and Manufacturing in He transferred to APWC to head the Shenzhen plant in 1996 and was promoted to COO of APWC in Daphne HSU – Financial Controller Ms. Daphne HSU has been Financial Controller of the Company since March of 2005, prior to which she served as Financial Controller for ten years in Taiwan and China at a Thomson SA joint venture. Daphne graduated from National of Taipei College of Business with a major in accounting.
This Presentation of APWC was developed by the Company and CCG and is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company ’ s stock. This presentation is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not represented by APWC or CCG as being fully accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.