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Investor Presentation

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Presentation on theme: "Investor Presentation"— Presentation transcript:

1 Investor Presentation
Asia Pacific Wire & Cable Corp. LTD APWC Investor Presentation M a y

2 Safe Harbor Statement 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.

3 Equity Snapshot and Key fn Metrics
APWC Price (5/1/13): $3.95 Market capitalization: ~$55 M Diluted shares outstanding: 13.8 M TTM P/E: 4.8x FY 2012 Revenues: $462.3 M ▼ 2.1% FY 2012 Gross Profit: $51.8 M ▲ 18.0% FY 2012 Net income: $10.9 M ▲ 301% FY 2012 Diluted EPS: $0.79 ▲ 302% Fiscal year ends: December 31* * Company is an Foreign Private Issuer but files similar to a fully listed public company.

4 Investment Highlights
Nasdaq-Listed since April 29, 2011 Taiwan-based leader wire and cable manufacturer with sales in several Asian-Pacific markets Growing underlying market demand in the region and for APWCC products particularly for power and telecommunication cable Broad geographic coverage provides diversification Experienced and knowledgeable in-house sales, service & technical team Financial performance including increased profitability Strong balance sheet, cash flow, and an attractive valuation

5 Global Industry Overview
Wire & cable growth industry growth drivers include: Energy-related infrastructure spending Telecom-related infrastructure spending Construction cycles Industrial activity Local presence required to succeed: High transportation costs Products need to meet regional and local 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

6 Company Overview Founded in 1996
Headquartered in Taipei, Taiwan with subsidiaries in China, Thailand, Singapore and Australia Core business includes the manufacturing and distribution of wire and cable products throughout Asia Pacific including Australia Additional services: distribution of a variety of 3rd party wire and cable product lines, project engineering of Supply, Delivery and Installation (SDI) services for power cables Total number of employees: ~1,413

7 Products and Services Portfolio
Revenue ($ millions) Gross Margin Products 2009 2010 2011 2012 Telecom Cable $26.0 $45.0 $28.5 $22.5 22.8% 26.2% Power Cable 103.0 148.3 200.7 206.3 13.2% 16.6% Enameled Wire 135.1 202.8 200.2 172.2 4.9% 2.6% Distributed Products 28.1 26.9 25.5 54.8 11.6% 6.1% SDI Project Engineering Services 34.0 23.6 17.0 6.5 0.3% -15.7% Total $326.2 $446.6 $471.9 $462.3 9.3% 11.2%

8 Regional Locations and Facilities
As of December 31, 2012 Pacific Electric Wire & Cable (Shenzhen) Co., Ltd. Shanghai Yayang Electric Co., Ltd. Shandong Pacific Rubber Cable Co., Ltd. Shangdong HuaYu Fibre Optics Cable CCH (Crown Century Holding) Hong Kong Ningbo Pacific Wire Co., Ltd. CHINA 360 25.0% Headquarters 15 THAILAND Charoong Thai Wire & Cable Public Co., Ltd. Siam Fiber Optics Co., Ltd. Siam Pacific Electric Wire & Cable Co., Ltd. 39.1% 810 151 SINGAPORE 11.0% Sigma Cable Co., Pte Ltd. Sigma-Epan International Pte., Ltd. Factories/op units Employee headcount Power cable 77 SDI project engineering Distributed products Others: Distributed products of 11.9% include Singapore, Australia, and Thailand. TOTAL HEADCOUNT: ~1,413 Fiber optic cable AUSTRALIA Enameled wire 13.0% Australia Pacific Electric Cables Pty., Ltd. Electronic wire % Revenue contribution (2012)

9 APWC Subsidiaries’ Operations
China Shanghai Yayang is a joint venture in Shanghai incorporated in June 1998, now 100% owned by APWC. Pacific Electric Wire & Cable (Shenzhen) was established in Shenzhen in Dec Ningbo Pacific Cable Co., Ltd. (PEWNC) re-constructed July , 2011, and began production in March, 2012. Australia APEC Cables was founded in Brisbane, Australia in 1996, with a goal to become the one of the leading electrical supply companies in Australia. Thailand Charoong Thai is a publicly-traded Thai corporation listed on the Stock Exchange of Thailand (“SET”). It was established in Thailand in 1967. Siam Pacific was established in 1988 as a joint venture between PEWC and Italian-Thai Development Plc (“Ital-Thai”), a third party, which at the time was the largest diversified construction company in Thailand, now 100% owned by CTW. Singapore Sigma Cable was established in Singapore in June 1964. Project engineering team established in 1997 to undertake Supply, Deliver and Install turnkey projects to SP PowerAssets Limited ( A member of Singapore Power in transmission and distribution of electrical energy).

10 High Quality Enameled Wire Supply to Eastern and Southern China
APWC in China High Quality Enameled Wire Supply to Eastern and Southern China Top Customers Toolmakers and appliances makers Mining companies Products Enameled wire Rubber cable Electronic wire

11 One of the Top-5 Cable Producers in Thailand
APWC in Thailand One of the Top-5 Cable Producers in Thailand Top Customers Local electric utilities companies Engineering companies Contractors Telecom carriers Products Telecom cable Power cable (Al, Cu, LV, HV) Enameled wire Fiber-optic cable

12 Leading Provider of Power Cable in Singapore
APWC in Singapore Leading Provider of Power Cable in Singapore Top Customers Electrical contractors Distributors Public utilities Board Products Power cable SDI project engineering Distributed products

13 APWC in Australia Leading provider of power and construction cables
New opportunities for distribution due to free trade agreement of south east Asian countries Top Customers Contractors Distribution Centers Products Low-voltage power cables Construction cables

14 Growth and Expansion Strategies by Market
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 such as electronic wire and expand domestic market Australia Continue upgrading production facilities to increase efficiency and capacity Increase product portfolio through offering imported products such as fiber optic cable Thailand Develop new cable products for auto, solar or other types of alternative energy solution Form a possible new subsidiary to meet local minimum standards Upgrade and expand facilities for new government projects Singapore Re-introduce Sigma's products to Southeast Asian markets such as Vietnam and Brunei Explore new contractors/partners in China for incremental business opportunities

15 Competitive Advantages
Reliable product supply and distribution Superior product quality and performance Excellent customer service and knowledgeable sales and technical team Historical long presence in key local markets Competitive Landscape Competitors include both independent domestic and foreign suppliers Local competitors have advantages in sales, R&D spending or financial resources Global competitors include Draka, Furukawa, Nexans, Prysmian, etc.

16 History of Revenue Growth
Growth Phase 1 Growth Phase 2

17 Changes in Gross Profit

18 Changes in Net Income

19 Summary Income Statement
Year 12/31 (USD '000) 2010 2011 2012 Total Sales $446,594a $471,946a $462,265 Cost of Sales (389,571) (428,051) (410,450) Gross Profit 57,023 43,895 51,815 Income from Operations 28,652 1,884 23,593b Income Before Tax 31,832 636 27,293 Income (Loss) before taxes attributable to APWC 20,024 (2,447) 16,607 Income Taxes Expense attributable to APWC (5,884) (2,992) (5,658) Net Income (Loss) attributable to APWC 14,140 (5,439) 10,949 Basic and Diluted Income (Loss) per Share (USD) $1.02 $(0.39) $0.79 a. For 2008 through to 2011, income statements are restated to reflect SPFO operations being disposed of and excluded but grouped under Discontinued Operations b. SP recognizes other income of Thai Baht million (US$ 4,762K) from settlement of flood loss.

20 Summary Balance Sheet As of (USD ‘000) 12/31/2010 12/31/2011
12/31/2012 Cash and Cash Equivalents $63,217 $76,672 $72,816 Current Assets 329,461 288,697 330,208 Other Assets 57,462 48,592 59,176 TOTAL ASSETS 386,923 337,289 389,384 Bank Loans and Trust Receipts 67,351 52,813 57,845 Current Liabilities 158,808 117,741 146,494 Other Liabilities 2,403 4,859 8,279 Total Liabilities 161,211 122,600 154,773 Total Shareholders’ Equity 225,712 214,689 234,611 TOTAL LIABS and SHS’ EQUITY Net Book Value Per Share 11.08 10.59 11.69

21 Country Revenue and GP Analysis

22 Summary Cash Flow As of (USD ‘000) 2010 2011 2012 Operating Activities
(2,636) 22,624 11,648 Investing Activities (6,448) (13,904) (15,755) Financing Activities 26,413 5,621 (62) Net Cash Flow 21,683 13,455 (3,856)

23 CAPEX Summary As of (USD ‘000) 2010 2011 2012 Capital Expenditure
CAPEX Purpose: Production machinery and equipment for the CTW group in Thailand and for Ningbo Pacific Cable Co., Ltd. (“NPC”) in Ningbo, China, as well as the addition of a new plant at Shenzhen for the Chinese domestic market.

24 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 2009. 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 2008. Mr. Yuan is also the Chairman of Taiwan Electric Wire and cable Industries Association since 2004.  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 APWC, 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. William GONG – Chief Operating Officer Mr. William Gong has been appointed Chief Operating Officer effective April 1, He was first assigned to Charoong Thai Wire and Cable Pte. Co. Ltd. as Engineer, Assistant Plant Manager, and later consultant to high voltage cable division from 1991 to In April 2009 he was promoted General Manager of Sigma Cable in Singapore. Mr. Gong Wei holds a master’s degree from Asian Institute of Technology in Bangkok, Thailand. 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.

25 Contact Us Contact Us Company Frank Tseng, CFO
Phone: +886 (2) x66 Auditor Ernst&Young Taiwan TWTC International Trade Building 9F, 333, Keelung Road, Sec. 1 Taipei Phone: Investor Relations John Mattio, SVP – MZ Group Main: Direct: Legal Fox Horan & Camerini Michael Hagan - Partner Main: Direct:

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