Asia Pacific Wire & Cable Corp. LTD
APWC
Investor Presentation
May 2013
1
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.
2
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:
$0.79 ▲ 302%
Fiscal year ends:
December 31*
* Company is an Foreign Private Issuer but files similar to a fully listed public company.
3
Investment Highlights
•
Nasdaq-Listed since April 29, 2011
•
Taiwan-based leader wire and cable manufacturer with sales in several Asian-Pacific
markets
•
Growing underlying market demand in the region and for APWCC products particularly
for power and telecommunication cable
•
Broad geographic coverage provides diversification
•
Experienced and knowledgeable in-house sales, service & technical team
•
Financial performance including increased profitability
•
Strong balance sheet, cash flow, and an attractive valuation
4
Global Industry Overview
Wire & cable growth industry growth drivers include:
•
Energy-related infrastructure spending
•
Telecom-related infrastructure spending
•
Construction cycles
•
Industrial activity
Local presence required to succeed:
•
High transportation costs
•
Products need to meet regional and local specifications
•
Handling and logistics
~ 80% of manufacturing cost attributable to raw materials
•
Pass-through pricing generally utilized for long-term agreements
•
About one-half of business priced short cycle
5
Company Overview
•
Founded in 1996
•
Headquartered in Taipei, Taiwan with subsidiaries in
China, Thailand, Singapore and Australia
•
Core business includes the manufacturing and
distribution of wire and cable products throughout
Asia Pacific including Australia
•
Additional services: distribution of a variety of 3rd
party wire and cable product lines, project
engineering of Supply, Delivery and Installation (SDI)
services for power cables
•
Total number of employees: ~1,413
6
Products and Services Portfolio
Revenue ($ millions)
Gross Margin
2009
2010
2011
2012
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%
$326.2
$446.6
$471.9
$462.3
9.3%
11.2%
Products
Total
7
Regional Locations and Facilities
As of December 31, 2012
CHINA
360
25.0%
Headquarters
•
•
•
•
•
•
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.
15
THAILAND
810
• Charoong Thai Wire & Cable Public Co., Ltd.
• Siam Fiber Optics Co., Ltd.
• Siam Pacific Electric Wire & Cable Co., Ltd.
39.1%
151
SINGAPORE
11.0%
• Sigma Cable Co., Pte Ltd.
• Sigma-Epan International Pte.,
Ltd.
Factories/op units
Employee headcount
77
Others: Distributed products of 11.9%
include Singapore, Australia,
and Thailand.
TOTAL HEADCOUNT: ~1,413
AUSTRALIA
13.0%
• Australia Pacific Electric
Cables Pty., Ltd.
Power cable
SDI project engineering
Distributed products
Fiber optic cable
Enameled wire
Electronic wire
% Revenue contribution (2012)
8
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. 1995.
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 ItalianThai 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).
9
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
10
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
11
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
12
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
13
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
14
Competitive Advantages
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.
15
History of Revenue Growth
$600
$500
USD million
$511 $501
CAGR = 8%
$468
$447
$472 $462
$400
$337
$294
$300
$241
$200
$327
$192 $197
$211
$100
$0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
16
Changes in Gross Profit
$70
$60
$36.6
$64.6
$57.3
$45.7
$51.8
12%
$43.9
$50
USD Million
14%
$57.0
10%
$35.9
$40
8%
$30
6%
$20
4%
$10
2%
$0
2005
2006
2007
2008
2009
2010
2011
2012
-$10
0%
Gross Profit
Inventory Adjustment
Gross Margin
17
Changes in Net Income
$15
$14.1
$13.0
4%
$10.9
$10.1
3%
$10
$4.8
USD Million
$5
2%
1%
$0
0%
($5)
($5.0)
($5.4)
($10)
(1%)
($15)
(2%)
($20)
2005
2006
2007
($13.6)
Net Income
2008
(3%)
2009
2010
2011
2012
Net Margin
18
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
$(0.39)
a.
For 2008 through to 2011, income statements are restated to reflect SPFO operations being disposed of and
excluded but grouped under Discontinued Operations
b.
SP recognizes other income of Thai Baht 147.9 million (US$ 4,762K) from settlement of flood loss.
$0.79
19
Summary Balance Sheet
As of (USD ‘000)
12/31/2010
12/31/2011
12/31/2012
Cash and Cash Equivalents
$63,217
$76,672
$72,816
Current Assets
329,461
288,697
330,208
57,462
48,592
59,176
386,923
337,289
389,384
67,351
52,813
57,845
158,808
117,741
146,494
2,403
4,859
8,279
Total Liabilities
161,211
122,600
154,773
Total Shareholders’ Equity
225,712
214,689
234,611
TOTAL LIABS and SHS’ EQUITY
386,923
337,289
389,384
11.08
10.59
11.69
Other Assets
TOTAL ASSETS
Bank Loans and Trust Receipts
Current Liabilities
Other Liabilities
Net Book Value Per Share
20
Country Revenue and GP Analysis
Revenue ($Mil.)
$200
Gross Profit ($Mil.)
$25
$186.0 $180.9
$21.5 $21.6
$180
$20
$160
$132.2
$140
$13.7
$15
$115.5
$120
$11.0
$100
$10
$80
$60
$52.4$44.6
$54.8
$58.9$60.0
$4.5
$5
$40
$25.5
$20
$17.0
$6.4
Thailand
Singapore
Australia
2011
China
2012
Distributed
SDI
$4.5
$3.0
$3.4
$0.0 -$0.1
$0
Thailand
$0
$5.8
$5.0
Singapore
Australia
China
Distributed
SDI
-$5
20112
2012
21
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)
22
CAPEX Summary
As of (USD ‘000)
2010
Capital Expenditure $3.7M
2011
2012
$8.9M
$10.1M
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.
23
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 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 Officer
Mr. 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 Officer
Mr. Frank TSENG has served as CFO since October 2009. 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, 2013. 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 2000. 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.
24
Contact Us
Contact Us
Company
Frank Tseng, CFO
Phone: +886 (2) 2712 2558 x66
frank.tseng@apwcc.com
www.apwcc.com
Auditor
Ernst&Young Taiwan
TWTC International Trade Building
9F, 333, Keelung Road, Sec. 1
Taipei
Phone: +886 2 2757 8888
Investor Relations
John Mattio, SVP – MZ Group
Main: 212-301-7130
Direct: 212-301-7131
john.mattio@mzgroup.us
www.mzgroup.us
Legal
Fox Horan & Camerini
Michael Hagan - Partner
Main: 212-480-4800
Direct: 212-709-0290
mjhagan@foxlex.com
25