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Slide 1 - Asia Pacific Wire _ Cable Corp

VIEWS: 15 PAGES: 23

									July 2011
                        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.

                              1                                     www.apwcc.com
                      Equity 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



                              2                         www.apwcc.com
                           Investment Highlights



   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




                               3                                   www.apwcc.com
                                Company Overview


1   Founded in 1996


2   Headquartered in Taipei, Taiwan


3   Subsidiaries: China, Thailand, Singapore and Australia


    Core business: manufacturing and distribution of wire and cable
4   products

5   Additional services: project engineering of Supply,
    Delivery and Installation (SDI) services for power cables


6   Total number of employees: approximately 1,715




                                      4                               www.apwcc.com
                                        Locations and Facilities
      As of March 31, 2011
                                                        •   Pacific Electric Wire & Cable (Shenzhen) Co., Ltd.
                             CHINA                      •   Shanghai Yayang Electric Co., Ltd.
                 587                                    •
                            30.7%                           Shandong Pacific Fiber Optics Cable Co., Ltd.
                                                        •   Shandong Pacific Rubber Cable Co., Ltd.
                                                        •   Ningbo Pacific Wire and Cable Co., Ltd.
                                        Headquarters    •   CCH (Crown Century Holding) Hong Kong
                                              12

             THAILAND
                            42.0%                       •   Charoong Thai Wire & Cable Public Co., Ltd.
              893                                       •   Siam Fiber Optics Co., Ltd.
                                  151                   •   Siam Pacific Electric Wire & Cable Co., Ltd.
              SINGAPORE                                 •   Pacific-Thai Electric Wire & Cable Co., Ltd.
                           12.3%

 • Sigma Cable Co., Pte Ltd.                                                                 Factories/op units
 • Sigma-Epan Intemational                                                                   Employee headcount
   Pte., Ltd.                                  72                                            Power cable
                                                                                             SDI project
                                                                                                   engineering
                                                                                             Distributed products
Others: Distributed products of
        4.8% include Singapore,           AUSTRALIA                                          Fiber optic cable
        Australia, and Thailand                10.2%   • Australia Pacific Electric
                                                                                             Enameled wire
                                                                                          % Revenue
                                                         Cables Pty., Ltd.                    contribution
                                                                                              (1H09)

                                                5                                            www.apwcc.com
                                     Global Industry Overview

                                                                          Global Cable Production by Type
   Wire & cable growth industry growth drivers
                                                                                             Winding
        Energy-related infrastructure spending                                               Wire
                                                                                              15%
        Telecom-related infrastructure spending                                                      Fiber Optic
                                                                         Low
        Construction cycle                                             Voltage                           4%
                                                                        Energy                        Datacom
        Industrial activity                                             38%                            11%
                                                                                                      Telecom
                                                                                                        5%
   Local presence required                                                                        Aluminum
                                                                                                     Power
        High transportation costs                                                   Medium to
                                                                                                      5%
                                                                                    high voltage
        Products need to meet regional                                                energy
         specifications                                                                 22%
                                                       Global Fiber Optic Cable Market Growth Forecast (M f-km)
        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


                                                         Source: CRU estimates
                                            6                                                      www.apwcc.com
                         China Businesses

    Long-term partnership with China Unicom

                                                                     Top Customers
                                                            Telecom carriers
                                                            Toolmakers and appliances
                                                             makers
                                                            Mining companies


                                                              Revenue ($ Millions)
                                      $200
                                      $180                                                                       $169
                                                                                             $158 $161
                                      $160          CAGR = 16.8%                      $149
                                      $140                                                                $127
                                      $120
                                                                               $103
                                      $100                               $91
                                       $80
                                                                   $61
                                       $60             $47 $46
       Products                        $40
                                              $36
   Enameled wire                      $20
   Telecom cable                       $0
   Fiber-optic cable
                                             00

                                                   01

                                                         02

                                                               03

                                                                     04

                                                                           05

                                                                                  06

                                                                                         07

                                                                                                08

                                                                                                      09

                                                                                                             10
   Optical fiber (JV)
                                        20

                                                  20

                                                        20

                                                              20

                                                                    20

                                                                          20

                                                                                20

                                                                                       20

                                                                                              20

                                                                                                     20

                                                                                                           20
   Rubber cable
                              7                                                              www.apwcc.com
                                   Thailand Businesses

       Top-5 cable producer in Thailand                                   Top Customers
                                                         Local electric utilities companies
                                                         Engineering companies
                                                         Contractors
                                                         Telecom carriers




                                                                     Revenue ($ Millions)
                                             $300
                                                                                                      $249
                                             $250
                                                          CAGR = 6.6%                          $212
                                             $200                                                            $173         $165
                                                                                        $149
                                             $150                                $130
                                                                    $107
                                                     $87 $81               $94                                      $97
                                             $100
                  Products
       Telecom cable                         $50
       Power cable (Al, Cu, HV)               $0
       Enameled wire
                                                    00

                                                          01

                                                                02

                                                                       03

                                                                             04

                                                                                    05

                                                                                           06

                                                                                                  07

                                                                                                         08

                                                                                                                09

                                                                                                                      10
        Fiber-optic cable
                                               20

                                                         20

                                                               20

                                                                     20

                                                                            20

                                                                                  20

                                                                                         20

                                                                                                20

                                                                                                       20

                                                                                                              20

                                                                                                                     20
    



                                      8                                                               www.apwcc.com
                                  Singapore Businesses

       Leading provider of power cable in Singapore

                                                                             Top Customers
                                                           Electrical contractors
                                                           Distributors
                                                           Public utilities Board



                                                                       Revenue ($ Millions)
                                            $120
                                                                                                                  $95
                                            $100
                                                                                                           $87
                                                                      $74
                                             $80
                                                                                                                        $70
                                                    $57 $58
                                             $60
                                                                                          $49 $48
                                                                                  $42 $51
                                                                            $35
                                             $40

                                             $20
                  Products
       Power cable                           $0
       SDI project engineering
                                                   00

                                                            01

                                                                  02

                                                                        03

                                                                              04

                                                                                    05

                                                                                           06

                                                                                                 07

                                                                                                       08

                                                                                                             09

                                                                                                                    10
                                              20

                                                        20

                                                                 20

                                                                       20

                                                                             20

                                                                                   20

                                                                                         20

                                                                                                20

                                                                                                      20

                                                                                                            20

                                                                                                                   20
       Distributed products                                     Manufactured           Distributed         SDI


                                     9                                                               www.apwcc.com
                               Australia Businesses

       Leading provider of power and construction cables
       New opportunities for distribution due to pan – Asia trade agreement

                                                                 Top Customers
                                                    Contractors
                                                    Distribution Centers


                                                             Revenue ($ Millions)
                                           $70
                                                                                               $63
                                                                                   $58
                                           $60         CAGR = 16.4%                      $56
                                           $50
                                                                                                           $46
                                           $40                               $35                     $35
                                                                       $30
                                           $30
                                                                 $22
                                           $20             $14
                                                 $10 $11
                                           $10
                 Products
                                            $0
       Low-voltage power cables                 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
       Construction cables
                                   10                                                    www.apwcc.com
                                      Product and Service Portfolio

                                                                       % of                   Gross
                                       Revenue ($ millions)                      Revenue
                                                                       Sales                  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
                               10.8      32.4       28.1       23.6     4.8%        5.8        0.7%
                 Products

                SDI Project
                Engineering    5.3       20.5       34.0       27.1     5.0%        6.1       (0.5%)
                 Services

             Total            $509.8    $500.8     $362.2     $464.5   100.0%     $121.8      10.9%



* Weighted blended average
                                          11                                               www.apwcc.com
                              Quality 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




                               12                     www.apwcc.com
                          Competitive Advantages

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.

Competitive Advantages
Reliable product supply and distribution

Superior product quality and performance

Raw-material cost advantage over local producers

Excellent customer service and knowledgeable sales and technical team

First-mover advantage in key local markets


                                13                                      www.apwcc.com
                                Growth 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
                                       14                                         www.apwcc.com
                                            History of Revenue Growth

              $600

                                                                                $511 $501
              $500
                                                                        $468                           $465
                                            CAGR = 9%
              $400
                                                     $294 $337                                 $362
USD million




              $300
                             $197 $241
                     $192                    $211                                                               +16.2%
              $200

                                                                                                                        $122
                                                                                                               $105
              $100



                $0




                                                                                                                         3mo11
                      2000


                              2001


                                     2002


                                              2003


                                                          2004


                                                                 2005


                                                                         2006


                                                                                 2007


                                                                                        2008


                                                                                                2009


                                                                                                        2010


                                                                                                                3mo10
                                                     15                                                        www.apwcc.com
              Recovery in Gross Profit
USD Million




                 16                      www.apwcc.com
USD Million
              Rebound in Net Income




                 17                   www.apwcc.com
                                  Summary Income Statement

                                                             3 month 2010    3 month 2011
Year 12/31 (USD '000)    2008             2009     2010
                                                              (unaudited)     (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
                        (16,294)      18,459       30,494       5,168           5,888
Operations

Income Before Taxes     (20,068)      19,572       32,278       5,733           5,782


Net Income (Loss)
                        (13,649)      10,089       14,140       3,729           2,723
attributable to APWC


Basic and Diluted
Income (Loss) per       ($0.99)           $0.73    $1.02        $0.27           $0.20
Share (USD)



                                     18                                     www.apwcc.com
                               Summary Balance Sheet

                                                               3/31/2011
As of (USD ‘000)                   12/31/2009    12/31/2010
                                                              (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



                                  19                              www.apwcc.com
                                         Revenue and GP Analysis (unaudited)



                  Revenue ($ Mil.)                                           Gross Profit ($ Mil.)

$60.0                                                       $7.0
                         $55.3
                                                                                        $5.8
$50.0                                                       $6.0
                                                                                 $5.1
             $37.4                                          $5.0
$40.0                $37.1
        $34.3                                                             $3.9
                                                            $4.0
$30.0                                                              $3.3
                                 $23.7                      $3.0                                                    $2.4
$20.0                                $16.5
                                                    $12.6   $2.0                                             $1.6
                                                                                               $1.4
$10.0                                        $9.8                                                     $0.9
                                                            $1.0

 $0.0                                                       $0.0
          China       Thailand   Singapore   Australia              China        Thailand      Singapore     Australia

                      3M10        3M11                                             3M10           3M11




                                               20                                                     www.apwcc.com
                              Strong 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 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 Officer
    Mr. 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 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.
                                       21                                                         www.apwcc.com
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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