July 2011
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July 2011July 2011
www.apwcc.com2
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 StatementSafe Harbor Statement
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Equity SnapshotEquity 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
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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 HighlightsInvestment Highlights
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Company OverviewCompany Overview
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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 1,7156
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THAILAND
AUSTRALIA
CHINA
SINGAPORE
Headquarters
587
893
151
72
12
30.7%
42.0%
10.2%
12.3%
Locations and FacilitiesLocations and Facilities
Others: Distributed products of 4.8% include Singapore, Australia, and Thailand
As of March 31, 2011
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• 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
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Global Industry OverviewGlobal 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
Winding Wire15%
Fiber Optic4%
Datacom11%
Telecom5%
Aluminum Power
5%Medium to
high voltage energy22%
Low Voltage Energy
38%
Global Cable Production by Type
Source: CRU estimates
Global Fiber Optic Cable Market Growth Forecast (M f-km)
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China BusinessesChina 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
Revenue ($ Millions)
$36$47 $46
$61
$91
$161 $169
$127
$103
$158$149
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
CAGR = 16.8%
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Thailand BusinessesThailand Businesses
Top-5 cable producer in Thailand
Products Telecom cable Power cable (Al, Cu, HV) Enameled wire Fiber-optic cable
Top Customers Local electric utilities companies Engineering companies Contractors Telecom carriers
Revenue ($ Millions)
$87 $81$107
$94
$130$149
$212
$249
$173
$97
$165
$0
$50
$100
$150
$200
$250
$300
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
CAGR = 6.6%
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Singapore BusinessesSingapore Businesses
Leading provider of power cable in Singapore
Products Power cable SDI project engineering Distributed products
Top Customers Electrical contractors Distributors Public utilities Board
Revenue ($ Millions)
$57 $58
$74
$35$42 $51 $49 $48
$87$95
$70
$0
$20
$40
$60
$80
$100
$120
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Manufactured Distributed SDI
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Australia BusinessesAustralia Businesses
Leading provider of power and construction cables
New opportunities for distribution due to pan – Asia trade agreement
Top Customers Contractors Distribution Centers
Products Low-voltage power cables Construction cables
Revenue ($ Millions)
$10 $11$14
$22
$30$35
$58$56
$63
$46
$35
$0
$10
$20
$30
$40
$50
$60
$70
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
CAGR = 16.4%
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Product and Service PortfolioProduct and Service Portfolio
Revenue ($ millions)% of Sales
RevenueGross Margin
Products 2007 2008 2009 2010 3 Months ended March 31, 2011
Telecom Cable $46.4 $47.0 $62.0 $67.4 10.6% $12.9 22.9%
Power Cable 188.8 179.8 103.0 148.3 35.0% 42.7 11.2%
Enameled Wire 258.5 221.1 135.1 202.7 44.5% 54.2 10.2%
Distributed Products
10.8 32.4 28.1 23.6 4.8% 5.8 0.7%
SDI Project Engineering
Services5.3 20.5 34.0 27.1 5.0% 6.1 (0.5%)
Total $509.8 $500.8 $362.2 $464.5 100.0% $121.8 10.9%
* Weighted blended average
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Quality AssuranceQuality 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
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Competitive AdvantagesCompetitive 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
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Growth and Expansion StrategyGrowth 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
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History of Revenue GrowthHistory of Revenue Growth
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Recovery in Gross ProfitRecovery in Gross Profit
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US
D M
illio
n
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Rebound in Net IncomeRebound in Net IncomeU
SD
Mill
ion
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Summary Income StatementSummary Income Statement
Year 12/31 (USD '000) 2008 2009 20103 month 2010(unaudited)
3 month 2011(unaudited
Total Sales $500,798 $362,231 $469,330 $104,868 $121,801
Cost of Sales 488,048 315,840 407,642 93,442 108,831
Gross Profit 12,750 46,391 61,688 11,426 12,970
Income from Operations
(16,294) 18,459 30,494 5,168 5,888
Income Before Taxes (20,068) 19,572 32,278 5,733 5,782
Net Income (Loss) attributable to APWC
(13,649) 10,089 14,140 3,729 2,723
Basic and Diluted Income (Loss) per Share (USD)
($0.99) $0.73 $1.02 $0.27 $0.20
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Summary Balance SheetSummary Balance Sheet
As of (USD ‘000) 12/31/2009 12/31/20103/31/2011
(unaudited)
Cash and Cash Equivalents $41,534 63,217 74,866
Current Assets 239,048 329,461 345,039
TOTAL ASSETS 296,052 386,923 405,086
Bank Loans and Overdrafts(*) 37,185 67,351 86,937
Other Current Liabilities 74,724 91,457 84,075
Total Liabilities 113,460 161,211 174,984
Total Shareholders’ Equity 182,592 225,712 230,102
TOTAL LIABS and SHS’ EQUITY 296,052 386,923 405,086
Current Ratio 2.14 2.07 2.01
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Revenue and GP Analysis (unaudited)Revenue and GP Analysis (unaudited)
Revenue ($ Mil.) Gross Profit ($ Mil.)
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Strong Management TeamStrong Management Team
Andy C.C. CHENG – Chairman of the BoardMr. Andy C.C. CHENG was a member of the company’s Board of Directors from 2004 to 2005 and was re-elected in 2007. 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 OfficerMr. Chun Tang YUAN also serves as Chairman of PEWC since 2004 and has been the Director of Pacific Construction Corp. Ltd since 2002. 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 OfficerMr. Frank TSENG has served as CFO since October 2009. 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 OfficerMr. Carson TIEN serves as Chief Operating Officer since 2005 and has been with Pacific Electric Wire and Cable Group Companies since 1969. 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 1990. He transferred to APWC to head the Shenzhen plant in 1996 and was promoted to COO of APWC in 2005.
Daphne HSU – Financial ControllerMs. 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.
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