Aztech Systems Ltd.Aztech Systems Ltd.Full Financial Year 2006

Analyst & Media briefing(8th February 2007)

Data ComVoice Com

MultimediaODM/OEM

Contract Manufacturing

Retail Distribution

AgendaAgenda

1. 2006 Financial Highlights2. Factory Updates3. Outlook for 20074. New Products5. R&D Developments6 Corporate Events

7. Q&A Executive Management Team:Michael Mun, Chairman & CEO Patricia Ng, Senior VP & General Manager of Shiro Martin Chia, Senior VP, Sales & Product Marketing Herman So, VP - Finance

Michael Mun, Chairman & CEO

Comparing FY2006 with FY2005

A Resounding FY2006A Resounding FY2006

(Denominations in Singapore Dollar)

•Turnover up 34% to $239 million$239 million

•Net profit up 98% to $20 million$20 million

•EBITDA up 79% to $32 million$32 million

•Earning per share up 95% to 4.9 cents4.9 cents

•Final Dividend 1 cent per share1 cent per shareTotal payout FY2006 is 1.5 cents per ordinary share (including interim of 0.5 cent)

S$’m

FY2006 TurnoverFY2006 Turnover

152.1

178.6

118.0

239.0

0

50

100

150

200

250

FY2003 FY2004 FY2005 FY2006

FY2006 34% vs FY2005Continuous growth

S$’m

FY2006 Net ProfitFY2006 Net Profit

2.8

6.4

10.1

20.0

0

5

10

15

20

25

FY2003 FY2004 FY2005 FY2006

FY2006 98% vs FY2005Path of profitability

EBITDA EBITDA

S$’m

FY2006 79% vs FY2005

9.9

13.4

18.1

32.4

0

5

10

15

20

25

30

35

FY2003 FY2004 FY2005 FY2006

Healthy EPSEarnings Per ShareEarnings Per Share

Cents per share

0.71

1.61

2.53

4.94

0

1

2

3

4

5

6

FY2003 FY2004 FY2005 FY2006

Financial HighlightsFinancial Highlights

FY2006 FY2005 Growth(S$' m) (S$' m) (%)

Turnover 239.0 178.6 34%Gross Profit 50.1 31.7 58%Profit from Operations 25.1 11.9 110%Net Profit After Tax 20.0 10.1 98%Earnings per share - basic (cents) 4.94 2.53 95%EBITDA 32.4 18.1 79%Dividend (cents per share) Interim = 0.5cts 0.5cts

Final = 0.5ctsSpecial = 0.5cts

Catalyst for Improved PerformanceCatalyst for Improved Performance

• Improved profitability due to:

– Higher margin products (e.g, SkypeTM DECT, ADSL2+ wireless)

– Higher value added & sophisticated PCBA boards

– Continuous bill of materials cost down

• Efficiency of manufacturing:

– Vertical manufacturing operations and enhanced capacity utilizationat a single site (Dong Guan, China)

– Equipment layout and re-configuration for manufacturing optimization

– Effective costs control

– Long assembly production line for high volume products

– Cell based for high mix products

– Design optimization by R&D

FY2006 FY2005 Change(S$' m) (S$' m) (%)

Current Assets 116.0 80.2 45%Current Liabilities 63.7 56.1 14%Working Capital 52.3 24.1 117%Non-Current Assets 34.2 58.7 (42%)Non-Current Liabilities 5.6 18.1 (69%)Total Assets 150.2 138.8 8%Total Liabilities 69.3 74.2 (7%)Shareholders' Funds 80.9 64.6 25%

Balance SheetBalance Sheet

Key Financial RatiosKey Financial Ratios

FY2006 FY2005Net Profit Margin 8.4% 5.7%Current Ratio (x) 1.8 1.4Quick Ratio (x) 1.2 0.9Inventory (S$'m) 36.6 31.8Inventory turnover(Day) 74 80Debtors (S$'m) 48.0 31.9Debtor turnover(Day) 61 63Creditors (S$'m) 36.3 20.5Creditors turnover(Day) 62 71Gearing ratio (x) 0.25 0.67ROE 25% 16%ROA 13% 7%Capital Expenditure (S$'m) 6.2 22.0

FY2006 FY2005(S$,000) (S$,000)

Profit before income tax 22,696 10,224 Depreciation, amortisation & other items 11,812 10,053 Working capital changes (5,499) (12,343) Interest & tax paid (2,563) (1,583)

25,367 688

51,813 7,039Capital Expenditures (3,570) (11,610) Deferred Expenditures (4,185) (2,696)

(26,158) 13,935

Dividend paid (4,048) (1,000)

(37,961) (1,371)Net Cash Inflow 13,852 5,668

Proceeds from disposal of investments, plant & equipment

Net (repayment) proceeds of bank loan & finance lease obligation

Cash FlowCash Flow

Cash FlowCash Flow

(5,808)

1,566

5,668

13,852

(10,000)

(5,000)

-

5,000

10,000

15,000

FY2003 FY2004 FY2005 FY2006

S$,000

Steady improvements in cash flow

Turnover by Business SegmentsTurnover by Business Segments

(S$' m) % (S$' m) %ODM/OEM 92.6 39% 85.3 48% 9%Contract Manufacturing 115.1 48% 60.8 34% 89%Retail 31.3 13% 32.5 18% (4%)Total 239.0 100% 178.6 100% 34%

FY2006% Change

FY2005

39%

48%

13%

FY2006 FY2005

48%

34%

18%

ODM/OEMCM

Retail

ODM/OEMCM

Retail

Turnover by Geographical SegmentTurnover by Geographical Segment

(S$' m) % (S$' m) %Asia Pacific 109.2 46% 66.6 37% 64%Europe 70.4 29% 73.0 41% (4%)North & South America 46.0 19% 32.8 18% 40%Others 13.4 6% 6.2 4% 116%Total 239.0 100% 178.6 100% 34%

% ChangeFY2006 FY2005

FY2006 FY2005

46%

29%

6%

19% 37%

4%18%

41%

Europe

America Asia Pacific

Others

Europe

America Asia Pacific

Order BookOrder Book

(S$'m)Order books as of 7th Feb 2007 77.72(1H 2006 sales is S$101 million)

• Average capacity utilization rate for FY2006 is 70% (without over time)

Factory UpdatesFactory Updates

• Compliance with ROHS derivative for Europe market

• In progress to obtain TS16949 certification for automotive industry by end 2007

Dong Guan plant Long line configuration

(High Volume)

Cell based configuration

(High Mix)

Expansion PlansExpansion Plans

Agilent 5DX 3D inspectionSurface Mount Technology Chip On Board

ProjectionFY2007 FY2006(S$' m) (S$' m)

Cost of SMT machines 2.0 0.6New Dong Guan Factory 2.0 0.0Test Equipment 2.0 2.3Other Factory Equipment 1.0 2.0Other Office Equipment 1.0 1.3Total 8.0 6.2

Expansion into New MarketsExpansion into New Markets

Focus on South America & Eastern Europe

• Customer Network

• Fluctuation in prices of oil and raw materials

• Business environment in China

- Strong RMB - Tight labor supply

• Weakening of US dollar

Business Environment Outlook For 2007Business Environment Outlook For 2007

• Risk Factors

• New products which will be available in 1H FY2007

• PC-less Skype DECT

• DSL605 series - ADSL2+ products

• HL108E – Homeplug 200Mbps Audio/Video

• Skype Internet Speaker Phone

• USB Digital TV Receiver

Outlook For ODM/OEM productsOutlook For ODM/OEM products

• Demand for data & voice communications product

• ADSL 2+ driven by telco/ISP upgrade trend

• HomePlug driven by increasing popularity in IPTV - video

• Skype products driven by the increasing Skype users (136million)

• Global Contract Manufacturing industry remains upbeat

• Secure more new projects from existing customers

• Broaden current customer base

• Thorough selection of right type of customers to focus on higher

value added products

Outlook For Contract ManufacturingOutlook For Contract Manufacturing

• Bringing Aztech manufacturing to greater heights

• Production of higher margin products utilizing Aztech’s factory

sophisticated test set-up (eg, Agilent 5DX 3-D X-ray machine)

• Intensify marketing efforts to penetrate new markets

• Continue to heighten Aztech’s brand awareness

Outlook For Retail Outlook For Retail

• Expanding retail product line

• Broaden the range of Aztech Retail products

• Expanding Aztech’s retail distribution network

New ProductsNew Products

ADSL2/2+ Ethernet 4-Port Router

VoIP Wireless G++ 125Mbps 4-Port Router

Wireless G++ 125Mbps 4-Port Router

DSL605ER

DSL605EW

DSL605RG

DSL605E

DSL605EU

ADSL2+ USB & Ethernet Combo Router

ADSL2+ Ethernet Modem / Router

• DSL605 ADSL2+

New ProductsNew Products

DECT Phone

(Digital Enhanced Cordless Telephony)

• DECT

New ProductsNew Products

• Skype TM Products

Aztech PC-less Skype DECT

Direct connect to

Internet

New ProductsNew Products

• Skype TM Products

Aztech Skype Internet Speaker Phone

Direct connect to

Internet

Aztech HomePlug200Mbps

Audio/Video

New ProductsNew Products

• HomePlug

New ProductsNew Products

• Multimedia

Aztech USB Digital TV Receiver

New ProductsNew Products

• Retail DSL605 ADSL2+

Aztech ADSL2+ Ethernet Modem / Router

Aztech ADSL2+ Ethernet + USB Combo Router

New ProductsNew Products

• Retail DSL605 ADSL2+

Aztech Wireless G++ 4-Port Router

Aztech ADSL2+ 4-Port Router

New ProductsNew Products

• MP3 players

Music Series

Video Series

• The next generation of products

R&D developmentsR&D developments

– Low radiation, long range DECT

• Voice Communications Low radiation,

long range DECT

• Data Communications

– 3.5G wireless broadband adapter

– DVB-T set-top box

VDSL2

– VDSL2 100Mbps high speed modem

DVB-T set top box

– 1Gbps Fiber To The Home modem

Corporate EventsCorporate Events

• Upgrade to Mainboard on Singapore Stock Exchange

• Aztech’s shares commenced its trade on the Mainboardon Monday, 11 th September 2006

Sesdaq

Mainboard

• By Securities Investors Association of Singapore (“SIAS”) Investors’ Choice Award 2006 (Sesdaq category)

Corporate EventsCorporate Events

• Most Transparent Company Award 2006

• Spearheads R&D, sales & product marketing and provides corporate support to its 6 sales offices worldwide

• Enjoys tax incentives

Corporate EventsCorporate Events

• International Headquarters Status from EDB

Our National Service Our National Service

• Corporate Social Responsibility

•Reflect on the needs of the society and contribute to the less privileged

- RMB 100,000 to South China flood victims

• China

- S$20,000 to Singapore Children’s Cancer Foundation

- S$30,000 to Singapore Buddhist Free Clinic

- S$30,000 to Infant Jesus Homes & Children’s Centres

- S$20,000 to Stem Cell Technologies (i)

• Singapore

- HKD100, 000 to Hong Kong Children Cancer Foundation

• Hong Kong

Our National ServiceOur National Service

• Trainees from Industrial Attachment

• Contributing to society by supporting the tertiary institutions Industrial Attachment program

• FY2006 total trainees = 91

• From •National University of Singapore•National Technological University•Singapore Management University•Ngee Ann Polytechnic•Temasek Polytechnic•Singapore Polytechnic•Nanyang Polytechnic•Institute of Technical Education•Raffles Design•Hong Kong City University•Various Chinese Universities

Q&AQ&A

•Michael Mun, Chairman & CEO

•Patricia Ng, Senior VP & General Manager of Shiro

•Martin Chia, Senior VP of Sales & Product Marketing

•Herman So, VP of Finance

• Executive Management Team

Thank You

http://www.aztech.com

Visit www.aztech.com/investor.htmFor media releases, announcements and presentationsContact Gary Tan, Marcom ManagerE: gary.tan@aztech.comT: (65) -68431218

This Presentation is available on our website.