2003 RESULTS

BRIEFING

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CORPORATE PROFILE

WHO WE ARE• One of the largest international traders of

electrical and electronic goods in Singapore with integrated logistics capabilities

• Specialist in global emerging markets – global network spanning 60 countries

• Brand development – house brand AKIRA

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OUR BUSINESSTwo Core Segments:• Retail & Distribution

– Public & Distributors / Dealers• Trading

– Sourcing and onward selling of electrical and electronics products to trading customers

Two Supplementary Segments:• Third-party Warehousing & Logistics Services

– Inventory management, cargo transportation, custom documentation, etc for clients;

– State-of-the-art Automated Storage and Retrieval System • Others: trading & processing of seafood products

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OUR BUSINESS

• Knowledge-based Business

• Brand Builder

• Diversified Global Operations, mostly in niche markets

• Integrated Trade and Logistics Solution provider

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OUR COMPETITIVE STRENGTHS

• Diversified Global Market– More than 60 countries worldwide– Diversification, the corner stone of our risk management

• Niche in serving emerging market economies– Higher economic growth and household formation rate– Stronghold in Indochina– Strong pioneering spirit

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OUR COMPETITIVE STRENGTHS

• Flexibility of Sourcing– More than 100 suppliers globally– Many established principals

• Complementary core businesses– Efficient one-stop logistics capabilities– Total supply chain management

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SOME OF OUR KEY MARKETSTTTT

OUR NETWORK OF SUBSIDIARIES

• Distribution Network (Subsidiaries):– Brunei– Cambodia – East and West Malaysia – Philippines – Myanmar – Singapore – Emirate of Dubai

– Vietnam

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OUR GLOBAL TRADING / RETAIL NETWORKS

• Trading Network: – ASEAN– East Asia– Africa and Middle East– CIS, Russia and Eastern Europe– Others

• Retail Network:– Cambodia, Myanmar and Singapore

• Comprehensive Range

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0

CustomersSuppliers

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THE WORLD IS OUR MARKET

Bulk Supply

Market Information

Loyalty

Customised services

Trade & Logistics Hub for customers and suppliers

- Int’l brands

- 9,000 models

- 100 suppliers

- > 60 countries

- Diversified markets

- 80% repeat

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Localized

Assembling

& ODM

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FY2003 FULL YEAR

RESULTS

FY2003 FULL YEAR RESULTS

FY 2003 FY 2002 % ChangeS$’ millions

Turnover 652.7 600.5 8.7%

Pretax Profit 15.6 12.7 22.4%

Pretax margin 2.4% 2.1%

Tax & MI (3.6) (2.4) 50.0%

Net Profit 12.0 10.3 16.5%Net margin 1.8% 1.7%

EPS (cts) 3.19 2.74 16.4%

NTA (cts) 25.9 23.4 10.7%

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Turnover

S$’millions

% of total % change

ASEAN 233.6 35.8 28.4%

East Asia & Others

93.2 14.3 (2.1)%

Africa & Middle East

229.0 35.1 9.8%

CIS, Russia & E. Europe

96.9 14.8 (15.6)%

Total 652.7 100.0

FY 2003 FULL YEAR TURNOVER BY REGION

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FY2003 FULL YEAR RESULTS HIGHLIGHTS

• Turnover up 8.7%– Broad-based growth, up in all regions except CIS, Russia &

Eastern Europe• Overall gross margin up 1%, contributed both by better-

priced branded electronics products and higher sales of “AKIRA” products.

• AKIRA up 76.2%– Sales increased to $136.0M from $77.2M– AKIRA contributed 21.7% of sales (vs 13.4% for 2002)

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FY2003 FULL YEAR RESULTS KEY FINANCIAL RATIOS

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2003 2002

Inventory Turnover 45 days 45 days

Debtors Turnover 53 days 55 days

Gearing (incl TR) 1.9 times 1.8 times

Gearing (excl TR) 0.8 times 0.6 times

Interest Coverage 3.5 times 2.5 times

ROA 13% 12.4%

GROWTH DRIVER-AKIRA• Developed as house brand in 1994 • Comprehensive range of consumer electronics

products which entails audio-visual, household and home appliances.

• Market presence increased from 23 countries in FY2000 to 60 countries worldwide in FY2003.

• Turnover jumped from S$19 million in FY2000 to S$136 million in FY2003.

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AKIRA SALESTTTT

$136M

$77M

$39M$19M

0

50

100

150

FY2000 FY2001 FY2002 FY2003

S$'M

CURRENT OUTLOOK

• Hope of post-Iraq War recovery dampened by impact of recent SARS outbreak

• Current challenging business environment to continue into FY2004

• Continue with present strategies for Branded Trading & Distribution and AKIRA business

• AKIRA: enhance quality, embark on own design

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ANNOUNCEMENTS - DEVELOPMENTS

STRATEGIES FOR GROWTH

ANNOUNCEMENTS

• TT International Awarded Global Trader Programme (GTP) Status– By IE Singapore– 5 years effective 1 October 2002– Concessionary tax of 10% on qualifying income

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ANNOUNCEMENTS

Strategic Acquisition• 49% stake in Cabletron Electronics (M) Sdn Bhd

– Manufacture of competitively priced CTV, VCD and DVD including OEM and ODM products

– Located in Sungei Petani, Kedah, Malaysia– Cost of Investment RM 1 million (with additional investment if

target is met)– Considered a subsidiary

• Rationale: Opportunity for TT to springboard a new core activity – Localised assembly– Original Design Manufacturing (ODM)

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CABLETRON PROFILE• ODM for a few hyper-stores in Malaysia

• Source, import and supply home appliances to hyper-stores

• Design of software and hardware solutions for CTV, working with Philips to offer design to CTV manufacturer

• Licensed Manufacturing Warehouse status & CEPT permit

• Most products qualify for ASEAN Free Trade Export status

• Strong in-house design capabilities complement TT core businesses

• Strategy:– Sell directly to hyperstores, e.g., Tesco, Giant, Mydin and The

Store– Opportunity from out-sourcing of after-sales and repairs by

hyper-stores

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AKIRA MILESTONES

FY1994 - Registered as house brand FY1999 - Launch of aggressive

marketing & brand buildingFY2000 - Sales expanded to 23 countriesFY2001 - Sales expanded to 31 countries

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AKIRA MILESTONES

FY2002 - Set up AKIRA International Marketing Division

- Set up spare parts & after-sales services team in Spore

- Incorporated 6 overseas entities to distribute AKIRA products

- Expanded QC team- Sales expanded to 43 countries

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AKIRA MILESTONES

FY2003 - Further expand distribution network with new overseas

entities- Strengthen AKIRA QC and

after-sales services - Sales expanded to 60 countries

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FOUNDATIONS FOR AKIRA’s GROWTH

• Strong market knowledge

• Established distribution network

• Logistics and support capabilities

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FUTURE PLANS

• Expand new markets

• Introduce new AKIRA product lines

• Strengthen AKIRA brand

• Forge strategic and synergistic alliances

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STRATEGIES FOR AKIRA

• Develop and strengthen AKIRA brand– Establish AKIRA International Marketing Division

in Spore to develop global marketing strategies and expand product range

– Establish spare parts & after sales services in Spore HQ to support global after sales services

– Establish QC team to ensure quality of products

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STRATEGIES FOR AKIRA

• Further increase existing market share of AKIRA & other brands in – Middle East & Africa– ASEAN (East & West Malaysia, Indonesia)– Russia & Eastern Europe

• To leverage on our knowledge of each market

• To expand market coverage of AKIRA to more than 60 countries

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OVERALLGROWTH STRATEGIES

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• Customer link • Entrenched distribution network in global markets based on niche

market know-how

• Supplier link • Locked-in win-win relationship with all suppliers based on niche

market know-how and market positioning strategy

• ODM link• To complement and further enhance the above two core activities

to form a seamless total supply chain management cycle

OVERALLGROWTH STRATEGIES

• Establishing a Third Pillar – TT becomes the vital link in the value chain of TT’s

Principals with the consumers in each local markets– Set up local sub-assemblies in regional hubs– Assimilated knowledge on workflows from current

experience for some principals– ODM Subsidiary Cabletron’s expertise and track record

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Thank You!

Q & A Session

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