Full year 2007Financial Results/Updates

5th February 2008

Full year 2007Financial Results/Updates

5th February 2008

AgendaAgenda

y Financial Reviewy Operational Review and Updatey New Productsy Strategy Moving Forwardy Corporate Updatesy Summary

22 Years of Growth22 Years of Growth

.‘86

.‘90

.‘92

.‘05

.‘96

.‘00

.‘06

.‘07

.‘94

Founded in Singapore

Establish Malaysia office

Establish Germany & USA office

Opening of new manufacturing plant in China

Listed on Singapore Stock Exchange

Launch broadband networking products

International Headquarters Status in Singapore

Establish Hong Kong office

•More than 2500 employees worldwide•6 offices worldwide•464,442sqft large manufacturing plant•In-house Research & Development

.‘08

Diversification into new business sector

yyyyFinancial Review pppp

Full Year TurnoverFull Year Turnover

152.14178.58

239.00

268.31

0

50

100

150

2 00

250

3 00

(S$’m)

2004 2005 2006 2007

Full Year Net Profit Full Year Net Profit

2004 2005 2006 2007

(S$’m)

6.43

10.13

20.0418.18

0

5

10

15

2 0

2 5

Full Year Financial HighlightsFull Year Financial Highlights

FY07 (S$'m)

FY06 (S$'m)

Change (%)

Turnover 268.31 239.00 12.3%Gross Profit 46.33 50.11 (7.5%)Gross Profit Margin 17.3% 21.0% (3.7%)Net Profit After Tax 18.18 20.04 (9.3%)Net Margin (%) 6.8% 8.4% (1.6%)EBITDA 31.29 32.44 (3.5%)Basic EPS (cents) 4.45 4.94 (9.9%)Dividend (cents per share) 1.75cts 1.5cts

Interim 0.75cts 0.5ctsFinal 1cts 0.5cts

Special - 0.5cts

Quarter Turnover Quarter Turnover

83.2

67.5

61.855.8

75.9

62.0

54.8

46.3

0

10

20

30

40

50

60

70

80

90

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006 2007

(S$’m)

5.6

3.6

5.2

3.8

7.8

5.05.1

2.1

0

1

2

3

4

5

6

7

8

9

(S$’m)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006 2007

Quarter Net Profit Quarter Net Profit

Quarter Financial HighlightsQuarter Financial Highlights

4QFY07 (S$'m)

4QFY06 (S$'m)

Change (%)

Turnover 83.18 75.97 9.5%Gross Profit 11.36 17.65 (35.7%)Gross Profit Margin 13.7% 23.2% (9.5%)Net Profit After Tax 5.56 7.80 (28.7%)Net Margin (%) 6.7% 10.3% (3.6%)EBITDA 9.71 11.83 (17.9%)Basic EPS (cents) 1.40 1.91 (26.7%)

4Q 2007 Profit4Q 2007 Profit

Attributed to :

y Growth of 9.5% in revenue in-line with seasonal demand

y An additional exchange loss of S$0.7million due to depreciation of US dollar against the Singapore dollar

y Group continue to be affected by � Higher operating costs � Appreciation of Chinese Renminbi and Singapore dollar

against the US dollar

y Gain on investment property: S$3.5 millionNet Gain on investment property : S$2.5 million (less tax).

Balance Sheet HighlightBalance Sheet Highlight

Current Assets 120.10 116.00 3.5%>>Including cash & bank balance 36.18 29.18 24.0%Currrent Liabilities 70.02 63.68 10.0%Working Capital 50.08 52.32 (4.7%)Non-Current Assets 48.49 34.19 41.8%Non-Current Liabilities 8.92 5.61 59.1%Total Assets 168.58 150.19 12.2%Total Liabilities 78.94 69.28 13.9%Shareholders' Funds 89.65 80.91 10.8%

Change (%)

FY07 (S$'m)

FY06 (S$'m)

Key IndicatorsKey Indicators

Debtors (S$'m) 44.2 48.0 7.9%Debtor turnover (Day) 63 61 3.3%Creditors (S$'m) 37.3 36.3 2.7%Creditors turnover (Day) 68 62 9.7%Inventory (S$'m) 36.1 36.6 (1.3%)Inventory turnover (Day) 67 74 (9.5%)Capital Expenditure (S$'m) 16.5 6.2 166.1%Current Ratio (x) 1.7 1.8 (5.6%)Quick Ratio (x) 1.2 1.2 0%Gearing Ratio (x) 0.31 0.25 24.0%

Change (%)

FY07 FY06

Cash FlowCash Flow

FY07 (S$'m)

FY06 (S$'m)

Change (%)

Profit before income tax 21.22 22.70 (6.5%)Depreciation & amortisation 8.49 7.81 8.7%Interest & tax paid (3.02) (3.46) (12.9%)Others 1.51 (3.92) n.mNet cash from operating activities 28.20 23.13 21.9%

Turnover by Business and RegionTurnover by Business and Region

38%

51%

11%

By Business Segments

OEM/ODM

Retail

CM

(S$'m) %OEM/ODM 137.22 51Contract Manufacturing 103.09 38Retail 28.00 11Total 268.31 100

38%

32%

24%

6%

Europe

AmericaAsia

Others

By Region

(S$'m) %North & South America 101.03 38Europe 86.49 32Asia Pacifc 65.03 24Others 15.76 6Total 268.31 100

yyyyOperational Review & Update pppp

Capital ExpenditureCapital Expenditure

Shenzhen office

FY07 (S$'m)

FY06 (S$'m)

Shenzhen office 8.9 0.0Costs of SMT lines 3.8 0.6Test equipment 2.0 2.3Other factory equipment 1.4 2.0Other office equipment 0.4 1.3Total 16.5 6.2

New Production systemNew Production system

• Higher Quality Standards in manufacturing

y Provides accurate quantitative data on the chemical composition of products

y Automated inspection of lead contents in productsy Achieve better compliance to RoHS standards

Shimadzu X-ray Fluorescence Spectrometer

yyyyProduct Update pppp

Product Status Product Status

200Mbps HomePlug with AC Pass through

Shipment March 08

200Mbps HomePlug Wireless Draft N 4-Port Router

Shipment March 08

Product Status Product Status

2.4GHz Digital RC Helicopter

6 Channel, Aluminum Body RC Helicopter

Shipment March 08

Shipment March 08

New Product New Product

• VDSL2/ADSL2+ Digital Residential Gateway

yyyyAll your DSL and networking needs in 1 device ADSL2+/VDSL2 modem built-in

yyyyWireless Draft N with 4-port router for home networking

yyyyIntegrated VoIP

yyyyBuilt-in 200Mbps HomePlug AV for powerlinenetworking

yyyy “Simple Connect ” for immediate Gateway set-up

yyyyUSB 2.0 Host for sharing a printer or network stora ge device

Shipment Q2 2008

New Product New Product

Wireless Multimedia Streamer

yyyyPackage includes 1x transmitter and 1x receiver

yyyyChoose 2.4GHz for wireless Internet surfing

yyyy Choose 5GHz for dedicated multimedia (HD) streaming

yyyySmart MIMO embedded antenna for wider area coverage

yyyy1 touch push button for wireless security set-up

yyyyStylish design to blend into any modern home living room

Shipment April 08

New Slender and Lustrous Looking

Media Players

Shiro VJ

2.4” LCD Media Player withMicro-SD Card Slot

Shiro MR

2.0” LCD Media Playerwith Touch Pad

Shiro MD

1.8” LCD SleekMedia Player

Shipment April 08

yyyyStrategy Moving Forward pppp

Aztech StrengthsAztech Strengths

Vertically integrated

manufacturingIn-house R&D Global sales

officesIn-house Industrial

Design+ + +

Key Drivers for Growth

Diversify into new business

•Complex CM products

•High margin products

•OEM/ODM for upgrade broadband market

•Superb ID product design

Managing Challenges AheadManaging Challenges Ahead

y More automation (e.g. latest high speed SMT machines, Automated Optical Inspection machine)yAdopt lean manufacturing solutions for diverse product mix (e.g. cell-based production lines)

1. High operating / labor / material costs

Challenges Approach

Managing Challenges AheadManaging Challenges Ahead

2. Appreciation of Renminbi and Singapore Dollar against the US dollar

Challenge Approach

yHedging management� Fixed amount of US dollar against

Singapore dollar and Renminbi � Only for the Group's monthly operating

expenses

Managing Challenges AheadManaging Challenges Ahead

3. Delivering feature-rich products

yDiversification of our business�Venturing into other industry sectors

yTapping on the worldwide broadband growth� Develop feature-rich products commanding

higher margin�ADSL2+/VDSL2 Residential Gateway�Wireless Multimedia Streamer

Challenges Approach

Order BookOrder Book

Year to Date orders (as of 4th Feb) $109.09 millionSame period last year $77.72 million

1H FY07 total sales $117 millionFY07 total sales $268 million

yyyyCorporate Updates pppp

Corporate Social ResponsibilityCorporate Social Responsibility

Singapore Children’s Society movie screening

July 2007

National Blood Donation Drive

August 2007

InIn--house Design by R&Dhouse Design by R&D

Wins 2007 red.dot Concept Design

� Wins Concept Design Award

� Awarded by one of the world’s leading and largest design competition

� In line with Group’s strategy to build a strong and creative ID

� ID’s creativity to add significant value to its customers and setting Aztech apart from others in this industry

SummarySummary

Healthy Business Model

yWell spread product offering yWide spread customer baseyDiversification into new business sectors

Shareholder Value

y Healthy net cash position

yGood track record of dividend payment

yEnhance shareholder value with share buy-back practices, amounting to a total of 9.79 million shares worth S$3.65 million in 2007 alone

Growth

y4 continuous years of increase in turnovery20 consecutive quarters of profitability yBroadband and home networking industry is vibrant and continues to grow

Thank YouThank You

Investor Relations contact: -

Gary Tan

gary.tan@aztech.com

6843 1218

www.aztech.com/investor