ECS Corporate Presentation 3Q14 Financial Results Update

6 November 2014

Preferred Supplier of Choice for ICT Products & Value-added Services

CONTENTS

3Q14 Operations Highlights

3Q14 Financial Results

Growth Strategies

Investment Merits

Appendix

2

3Q14 OPERATIONS HIGHLIGHTS

3

Stronger consumer spending driving ICT Distribution

segment…gross margins impacted by slowdown in

Enterprise Systems segment

3Q14 OPERATIONS HIGHLIGHTS

• ICT Distribution continues to be driven by higher consumer

spending

– Improved sales on PCs and notebooks

– Smartphone sales continue to be robust

• Enterprise Systems sees slower sales in 3Q14

– Slower sales of servers, storage and software products

– Margins impacted due to product mix

4

3Q14 FINANCIAL RESULTS

5

Double digit growth in top and bottomline in 3Q14…

GP margin dip from product mix mitigated by lower

distribution expenses and gain from other income

Revenue & Profit Analysis 6

+13.9%

+27.0%

+37.9%

+18.1% +11.0%

+14.1%

7 3Q14 Segmental Revenue

+30.3%

YoY -22.7%

YoY

+384.2%

YoY

(RM’mil) Revenue Gross Profit

3Q13 3Q14 3Q13 3Q14

ICT Distribution 213.7 278.5 7.4 9.5

Enterprise Systems 127.4 98.5 11.0 7.1

ICT Services 3.1 15.0 1.1 2.2

Total 344.2 392.0 19.5 18.8

3Q14 Revenue: RM392.0 mil

+27.2%

YoY

-35.0%

YoY

+106.8%

YoY

3Q14 Gross Profit: RM18.8 mil

ICT Distribution Enterprise Systems ICT Services

ICT Services

Enterprise Systems

ICT Distribution

3Q14 Gross Profit Margin Breakdown

ICT Distribution segment recording fifth consecutive

quarters of growth year-on-year… Enterprise Systems note

decline on slower implementations of projects

8 9m14 Segmental Revenue

+29.6%

YoY -9.4%

YoY

+269.8%

YoY

(RM’mil) Revenue Gross Profit

9m13 9m14 9m13 9m14

ICT Distribution 611.2 792.0 23.8 31.4

Enterprise Systems 344.0 311.5 30.1 23.7

ICT Services 9.8 36.1 3.0 5.7

Total 965.0 1,139.6 56.9 60.8

9m14 Revenue: RM1.1 bil

+32.2%YoY -21.3%

YoY

+89.2%

YoY

9m14 Gross Profit: RM60.8 mil

ICT Distribution Enterprise Systems ICT Services

ICT Services

Enterprise Systems

ICT Distribution

9m14 Gross Profit Margin Breakdown

9m14 revenue boosted by higher sales of PCs, notebooks

and smartphones… mitigating slower sales of Enterprise

Systems products

9 Operations Statistics

Cash conversion cycle back to normal after 2Q14…

10 Revenue Trend

Group topline set to reach new heights with expanded smartphone distribution channel…

+13.9% yoy

+29.8% yoy

11 Profit Trend

FY13 ROE: 13.7% (FY12: 16.6%)

FY13 ROA: 7.9% (FY12: 9.1%)

+37.9% yoy

+36.7% yoy

4Q seasonally the strongest quarter for Group… FY2014

prospects also buoyed by smartphone sales which are

expected to double that of tablets

12

Balance sheet continues to strengthen…3Q14 cash per share at RM0.40 sen

Balance Sheet

(RM’mil) As at 30.09.14 As at 31.12.13 Comments

Plant & Equipment 3.4 4.0 -

Other Non-Current Assets 2.2 2.1 -

Current Assets 383.9 342.6 Increase mainly from receivables and

inventories with higher revenue

Current Liabilities 169.9 144.2 -

Non-Current Liabilities 0.0 0.0 -

Total Shareholders Equity 219.6 204.6 Increased retained earnings

Total Borrowings - - No borrowings

Cash & Cash Equivalents 72.7 83.7 Cash per share of 0.40 sen as at 3Q14

Gearing (net of cash) (x) Net cash Net cash Net cash position allows the Group to

undertake future expansion plans

Net Assets/share (RM)* 1.22 1.14 -

*Based on total number of shares of 180.0 mil shares of RM0.50 par

#Adjusted for 1-for-2 bonus issue *To be paid on 11 Dec 2014

Dividend History 13

Consistently distributing dividends higher than 30%

dividend policy… interim dividend of 3.0 sen to be paid on

11 December 2014

GROWTH STRATEGIES

14

15

Impending GST and Budget 2015 announcement to spur ICT industry’s growth…

Sector Opportunities

• ICT spending anticipated to grow 13% by year-end

(Source: Pikom– Sept 2014)

Growth pace revised upwards from 10-12% as reported earlier this year

ICT sales improving as consumers prepare for the upcoming GST implementation

• Emerging smartphone brands benefitting from last-mile accessibility to end-

users (Source: IDC)

Lenovo remains #2 player in terms of smartphone sales in 2Q14 (versus #4 in 4Q13);

ahead of Huawei, Sony and Microsoft

ASUS’ impressive smartphone sales elevates it to #7 in 2Q14 from #16 in 1Q14

• Budget 2015 – Tech Assistance for GST and Increasing High Speed Broadband

Capacity to spur ICT industry (Source: Various media)

Accelerated Capital Allowance to aid in the purchase of ICT equipment and software

RM2.7 billion allocated to boost HSSB is expected to increase the need for more data

centres

16 Growth Strategies

• To continue growing ICT Distribution portfolio with emerging and established brands

– Recently appointed by BenQ to distribute its new range of smartphones (F5 & T3) to the Malaysian market

– Currently in talks with other smartphone brands to further expand smartphone portfolio

• To enhance Enterprise Systems segment

– Recently began providing SoftwareONE with the full suite of IBM software for the last-mile delivery to enterprise market

– Working with System Integrators and vendors to enhance segment further

• To identify strategic opportunities to grow ICT Services segment

– On the lookout for opportunities to grow ICT Services segment; organically or inorganically

Continue to strengthen ICT Distribution and Enterprise

Systems segments…on the lookout for growth

opportunities in ICT Services

INVESTMENT MERITS

17

18 Valuation

Single digit valuation with high dividend yield…

Share Price (@ 31 Oct 2014) RM1.39

Market Cap (@ 31 Oct 2014) RM250.2 mil

Trailing PE Ratio 8.5x

Trailing PE Ratio (net of cash) 1 6.1x

Trailing EV/EBITDA 4.5x

Price to book ratio 2 1.1x

FY13 Net Dividend Yield 3 4.0%

1 Net of cash per share of RM0.40 per share (as at 30 Sep 2014)

2 Based on Net Assets per share of RM1.22 (as at 30 Sep 2014)

3 Based on total dividend of 5.5 sen per share in respect of FY13, translating into RM9.9 million dividend

payout or 36.8% of net profit (above the dividend policy of distributing minimum 30% of net profit)

19

Market leadership, growth catalysts and dividend policy underpin ECS’ investment case...

Investment Merits

Market leader in ICT distribution in Malaysia

Domestic ICT market continues expansionary mode

Mobility devices to be growth catalyst

Net cash position allows for future expansion

Dividend payout policy of 30% on net profit

Proxy to growing ICT spending with consistent dividend payout

Single digit PE valuation

THANK YOU Bursa Code: 5162

Bloomberg: ECS:MK www.ecsm.com.my

Appendix

21

CORPORATE PROFILE

22

23 Background

Malaysia’s leading ICT distribution hub...

• Established in 1985, ECS is in the business of distributing ICT products in Malaysia.

• ECS’ range of products include volume ICT products (notebooks, personal computers, smartphones, tablets, printers and software) and value enterprise systems (network, communication infrastructure, servers and enterprise software).

• ECS has working relationships with more than 30 global brands such as Hewlett Packard, Lenovo, Asustek, Dell, Oracle, Cisco, Microsoft, Apple, Samsung and IBM.

• ECS has a nationwide distribution network of more than 4,000 resellers consisting of retailers, system integrators and corporate dealers.

24 Vision and Mission

Aims to be at the centre of all things IT...

To be the leading provider of ICT products and value-

added services. We strive for sustainable growth to

achieve optimum returns to shareholders. VISION

• To be the preferred supplier of choice for ICT products and

value-added services by building stronger customer

relationships.

• To bring the best-of-breed ICT products and services to

enhance the competitiveness of our customers' businesses.

MISSION

25 Milestones

More than two decades in the ICT industry since the advent of personal computers...

1985 • Began business in marketing personal computers under K.U. Sistem Sdn Bhd (now known as ECS KU Sdn Bhd)

1986 • Management buy-out of K.U. Sistem Sdn Bhd by founders Foo Sen Chin and Dato’ Teo Chiang Quan

• Pericomp Sdn Bhd (now known as ECS Pericomp Sdn Bhd) was formed to distribute peripherals to dealers

1994 • Set up a branch office in Penang

1997/98 • KUS Holdings Sdn Bhd (now known as ECS Kush Sdn Bhd) won the inaugural Enterprise 50 award

• Astar Sdn Bhd (now known as ECS Astar Sdn Bhd) won the Enterprise 50 award

2000 • KUS Holdings Sdn Bhd (now ECS Kush Sdn Bhd) became a 60% subsidiary of ECS Holdings Limited of Singapore

2001 • Listing of ECS Holdings Limited on the SGX Mainboard

2004 • KUS Group of companies adopted the ‘ECS’ corporate identity

• ECS ICT Berhad was awarded MSC status by MDeC

2005 • Introduction of program to install credit card terminals at resellers’ sales points

2006 • Implemented Enterprise Knowledge Portal to improve information storage and sharing

2007 • Establishment of warehouses in Kota Kinabalu and Kuching

2008 • Installation of 720 credit card terminals with over 107 retailers to improve collections

• Implemented the FPX payment gateway which enables direct online payment from resellers

• Establishment of sales office in Johor Bahru and Kuantan

• Launch of our integrated corporate office and warehouse facility in Kota Damansara

2010 • Listing of ECS ICT Berhad on the Main Market of Bursa Malaysia Securities Berhad

2011

• Appointed strategic authorised distributor for Dell’s commercial & consumer products & solutions

• Appointed as Lenovo's distributor for 3 business segments: Consumer, Small & Medium Business and Relationship (corporate)

• Set up of ECS Technology Centre at ECS’ head office, showcasing Oracle Exadata Database machine, the first in Malaysia

• Nominated as one of the companies in "The Edge Billion Ringgit Club“

2012 • Appointed distributor for Google Nexus 7 and Asus Padfone tablet PCs; enters smartphone segment with Huawei Ascend P1 & first foray into cloud

computing

• Signs agreement to distribute Huawei’s entire range of enterprise systems products and services

• Undertook 1-for-2 Bonus Issue

2013 • Appointed distributor for Lenovo smartphones, Samsung smartphones (for enterprise systems segment), Microsoft Surface RT and Surface Pro

2014 • Appointed distributor for ASUS smartphones, Zebra printing solutions, Seagate storage solutions and BenQ smartphones.

26 Corporate Structure

Focused on the distribution of ICT products...

ECS ICT Berhad

ECS Kush Sdn Bhd

(100%)

ECS Astar Sdn Bhd

(100%)

ECS KU Sdn Bhd

(100%)

ECS Pericomp Sdn Bhd

(100%)

Management, Financial,

and Logistics services

Distribution of ICT

Products

Provision of ICT

Systems and Services

Distribution of Value ICT

Products

Investment holding and provision of

e-commerce systems and solutions

27 Market Positioning

Well-positioned to play and intermediary role in the ICT supply chain...

Direct Sales Two-Tier Distribution One-Tier Distribution

End Customers

Resellers

Resellers

Retailers, System

Integrators, Corporate

Dealers

ICT Distributors

ICT Principals

28 Business Model

“One-stop shop” ICT supplier for diverse customer base...

ICT DISTRIBUTORS

Channel Development and Management

Logistics

Finance

Services

Pre-sales

System Architecture

Implementation

Training

Post-sales

Maintenance

ICT PRINCIPALS

Value Products

Servers

Network Systems

Data Centers

Enterprise Software

Cloud Services

Volume Products

Notebooks

Personal Computers

Smartphones

Tablets

Printers & Supplies

Software

END USERS

Finance

Telco

Manufacturing

Services

Government

Corporate

Enterprises

Commercial

SME

Home

RESELLERS

System

Integrators

Solutions

Providers

Service

Providers

Corporate

Dealers

Retailers

Economies of

Scale and Better

Pricing

Aggregation

Total

solution

Single

Source

Supplier

After sales support

29 Product Portfolio

Principals are the “who’s who” of brands in the ICT industry...

30 Products and Services

ECS distributes a wide array of ICT products and Enterprise Systems... value added with strong technical support

ICT Products

• Notebooks

• Personal Computers

• Smartphones

• Tablets

• Printers & Supplies

• Software

Enterprise Systems

• Servers

• Network Systems

• Data Centers

• Enterprise Software

• Cloud Services

ICT Services

• More than 40 engineering

personnel providing support for

ICT products

• Over 200 certifications from 15

principals

31 Distribution Infrastructure

Established and efficient distribution infrastructure backed by advanced logistics centre...

• Purpose-built flagship warehouse in Kota Damansara spanning 40,000 sq ft

• Handles an average intake of 5 containers and output of 25 lorries per day

• Daily sales of RM5 mil to RM6 mil with 500-600 invoices/deliveries

32 Competitive Advantages

ECS’ leadership driven by established brand name, efficient distribution ability and strong relationships with principals ...

Partnership with Key ICT Players

• Long term track records with more

than 30 leading ICT principals

Wide range of ICT products

• More than 3,000 SKUs (Stock Keeping

Unit) sold in FY2013

Effective Financial Management

• Effective inventory management to

minimise product holding cost

• Credit card terminal programme, trade

card programme and ePayment

interfaces to improve collection and

reduce credit exposure

Time-tested Distribution Infrastructure

• Extensive network of more than 4,000

resellers

• Timely delivery supported by an

integrated ERP system

Strong Technical Support Team

• Team of 40 certified service personnel

with certifications from leading ICT

principals

Established Name in ICT Industry

• In business for 30 years since the

introduction of personal computers

1 2

3 4

5 6

33 Key Management

Led by industry veterans...

Mr. Foo Sen Chin, Managing Director

• Responsible for steering the Group’s overall corporate direction; instrumental in guiding ECS into a RM1 billion company • Has more than 30 years of experience in the ICT industry • Graduated with a Bachelor of Science in Electrical and Electronic Engineering from the University of Birmingham, UK; later obtained

an MBA from Cranfield School of Management, UK • A key figure in the ICT industry: served as councilor, treasurer, and deputy chairman of PIKOM from 1995 – 2005; on PIKOM’s board

of advisors from 2006 to present

Mr. Soong Jan Hsung, Executive Director

• Responsible for the development of new sales and marketing strategies • Contributed significantly to the Group’s success, especially in market development aspects • Has more than 20 years experience in ICT distribution • Graduated with a Bachelor in Science majoring in Mathematics from the University of Malaya

Mr. Tee Ang Kuan, General Manager

• Responsible for overseeing the Group’s operations such as developing business and marketing strategies, marketing and distribution of ICT products, and sales staff management

• Has more than 25 years of experience in the promotion and distribution of ICT products to end users as well as corporate customers

• Graduated with a Bachelors of Art (Honours) majoring in Economics from the University of Malaya

Mr. Chan Puay Chai, Financial Controller

• Responsible for the Group’s financial planning & control, financial compliances, credit management, risk management, and other finance related operations

• Has more than 20 years of experience in various key accounting positions • Is an associate member of the Charted Institute of Management Accountants (U.K.) and a registered accountant with the Malaysian

Institute of Accountants

34 Substantial Shareholders

Part of a leading regional ICT player that is listed on the SGX... 33% free float

ECS ICT Berhad

ECS Holdings Ltd Sengin

Sdn Bhd (1)

Oasis Hope

Sdn Bhd (2) Dasar Technologies

Sdn Bhd

(1) Deemed interest of Mr. Foo Sen Chin, Managing Director of ECS ICT Berhad

(2) Deemed interest of Dato’ Teo Chiang Quan, Chairman of ECS ICT Berhad

41.0% 12.2% 5.5%

Listed on SGX, Singapore Incorporated in Malaysia Incorporated in Malaysia Incorporated in Malaysia

8.6%

35 Future Growth Strategies

The four strategic thrusts for the next 3 years…

Mobility Cloud

Computing E-Commerce

ICT Services

Making good progress in smartphone distribution

• Group currently distributing emerging brands, namely Lenovo & ASUS

• To add more brands to strengthen portfolio

Expanding beyond mobility devices into other supporting components

• To expand into mobile applications, mobile security and Enterprise mobility solutions

36 Future Growth - Mobility

Setting a strong foothold in mobility products market… confident of capitalizing on rising smartphone demand

Source: On Device Research

Malaysia Mobile Phone Penetration

37 Future Growth – Cloud Computing

Investing in the Cloud Computing evolution… corporations moving from evaluation to implementation

Setting up an ECS Cloud Computing platform

• To be an aggregator and distributor of cloud computing services and products

• For our resellers to provide solutions to their customers

Source: IDC

38 Future Growth – E-Commerce

Harnessing the power of e-commerce for greater efficiency to enhance user experience…

To enhance existing B2B services

• To optimize existing platform to be low cost, efficient, user-friendly and integrated with ERP system for real-time accuracy

• Retailers and resellers will be able to purchase products and make payments seamlessly without human intervention

• Target to launch enhanced platform in 2H14

Looking to set up B2C services

• To build a B2C platform to enable selected retailers to sell ECS’ products online directly to their customers (consumers)

39 Future Growth – ICT Services

ICT Services potentially next growth market…

ICT Services spending to reach USD 2.6 billion in 2014, from

USD 2.3 billion in 2013 (Source: IDC)

• Intend to move beyond product support services into outsourcing and project oriented services

• Currently looking for M&A opportunities within the ICT Services sector

Source: IDC (July 2014)

40 Industry Statistics

Industry Statistics show growing market potential…

Source: IDC report published in July 2014 Data : Total Hardware and Software excluding Services