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FY2010 Results Briefing

28th February 2011

Presented byMr Steven Koh, Deputy CEO/Executive Director

Prepared by Grace Wong

Most Transparent Company Award2005 - 2010

Auto Component Mfg of The Year (Spore)2007 - 2010

Environmental, Health & SafetyManagement Systems

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Contents

• Introduction

• 2010 Performance Review

• Business Segmental Review

• Outlook

• Q&A

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Introduction

Armstrong Industrial Corporation Limited is a

leading foam and rubber components manufacturer

specializing in noise, vibration & heat management for

the automotive and electronics industries.

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Group Performance Review

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Performance Highlights - YoY

4Q2010 vs 4Q2009

Gross Profit increased by 15.7% to S$15.4 million from S$13.3million with improved Gross Margin

Net Profit attributable to shareholders maintained at S$6.2million.

Net profit margin declines 0.4% mainly due to JPY appreciationand USD depreciation against SGD.

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Key Financial Results – YoY

(S$’000) 4Q10 4Q09 % Chg

Turnover 56,234 50,362 11.7

Gross Profit 15,389 13,298 15.7

Gross Margin (%) 27.4 26.4

Operating Profit 8,389 7,715 8.7

Profit Before Tax 8,295 7,654 8.4

Net Profit 6,652 6,219 7.0

Net Profit attributable toshareholders

6,184 6,211 0.4

Net Profit Margin (%) 11.0 12.3

EPS (cents) 1.23 1.24 0.8

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Performance Highlights - YTD

FY2010 vs FY2009

Record Revenue & Net Profit achieved

Gross Profit increased by 40.5% to S$62.0 million from S$44.2 millionwith Gross Margin improving from 25.4% to 27.5%

Net Profit attributable to shareholders grew by 77.1% to S$24.9million.

Recommends final dividend of two Singapore cents to supplementinterim dividend of two Singapore cents, a yield of 10.4% based onclosing share price on 24 Feb 2011 of S$0.385

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(S$’000) FY10 FY09 % Chg

Turnover 225,449 173,683 29.8

Gross Profit 62,014 44,152 40.5

Gross Margin (%) 27.5 25.4

Operating Profit 33,605 19,070 76.2

Net Profit attributable toshareholders

24,903 14,059 77.1

Net Profit Margin (%) 11.0 8.1

EPS (cents) 4.97 2.81 76.9

EBITDA 39,041 24,492 59.4

Key Financial Results – YTD

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Key Financial Ratios - YTD

Ratios FY 2010 FY 2009

Cash Cycle (Days) 104 103

Liquidity Ratio

- Current Ratio (x) 2.28 2.33

- Gearing (Gross) 0.14 0.12

Return (%)

-ROE 25.60 15.75

-ROA 24.44 14.77

NTA (Cents) 19.91 18.57

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Cash Conversion Cycle

DaysFull Year ended

FY2010 FY2009

Receivables Turnover 84 87

Inventory Turnover 71 76

Payables Turnover 51 60

Cash Cycle (Annualised) 104 103

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Selected Balance Sheet Items

(S$’000) 31 Dec 2010 31 Dec 2009 % Chg

Fixed Assets 40,155 40,057 0.2

Working Capital

(CA-CL)

69,123 60,906 13.5

Total Assets 164,594 149,482 10.1

Cash 26,247 30,285 13.3

Total Borrowings 14,337 10,925 31.2

Total Equity 108,410 99,629 8.8

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Business Segmental Review

• GEOGRAPHICAL• INDUSTRY SEGMENTS

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Geographical Highlights

FY2010 vs FY2009 All geographical segments posted growth.

China spearheaded the growth of 51.2% accounting for32.1% of Group sales from 27.5%.

Overseas sales accounted for 71.1% of Group sales, anincrease from 65.6%.

4Q2010 vs 4Q2009 China overtook Singapore to become the largest

revenue contributor accounting for 31.8% with growth of29.7% driven by the Automotive & Consumer Electronicssegments.

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(S$’000) 4Q10 4Q09 % Chg

Singapore 16,053 17,872 10.2

China 17,888 13,786 29.7

Thailand 13,963 11,563 20.8

Indonesia 4,501 3,700 21.7

Malaysia 3,097 2,930 5.7

Vietnam 732 510 43.6

Total 56,234 50,362 11.7

Geography Turnover – YoY

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(S$’000) FY10 FY09 % Chg

Singapore 65,088 59,800 8.8

China 72,340 47,840 51.2

Thailand 55,363 40,685 36.1

Indonesia 15,753 13,533 16.4

Malaysia 13,971 10,102 38.3

Vietnam 2,934 1,722 70.4

Total 225,449 173,683 29.8

Geography Turnover – YTD

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4QYOY FY2010

Geography Turnover

China

31.8%Singapore

28.5%

Thailand

24.8%

Indonesia

8.0%

Malaysia

5.5%

Vietnam

1.3%

China32.1%

Singapore28.9%

Thailand24.6%

Indonesia7.0%

Malaysia6.2%

Vietnam1.3%

(+4.5%) (-7.0%)

(+1.9%)

(-0.3%)

(+0.7%)

(+0.3%)

(+4.6%) (-5.5%)

(+1.2%)

(+0.4%)

(-0.8%)

(+0.3%)

Note : Changes in contribution % are in brackets

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Industry Segments Highlights -YoY

4Q2010 vs 4Q2009

Data Storage sales down as the industry has normalized to asingle digit growth after a strong 1H2010.

Automotive sales grew 26.1% with all countries recorded salesimprovements.

FY2010 vs FY2009

All industry segments posted substantial growth.

Automotive continue to lead the business growth of 46.9%increasing its contribution from 27.4% to 31.0%.

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(S$’000) 4Q10 4Q09 % Chg

Automotive 17,529 13,896 26.1

Data Storage 13,534 15,310 11.6

Consumer Electronics 18,091 15,955 13.4

Office Automation 6,602 4,906 34.6

Others 479 294 63.0

Total 56,234 50,361 11.7

Industry Segments Turnover – YoY

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(S$’000) FY10 FY09 % Chg

Automotive 69,797 47,528 46.9

Data Storage 53,378 50.687 5.3

Consumer Electronics 77,250 56,683 36.3

Office Automation 23,341 17.735 31.6

Others 1,683 1,050 60.3

Total 225,449 173,683 29.8

Industry Segments Turnover – YTD

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4QYOY FY2010

Industry Segments Turnover

Data Storage

24.1%

Office

Automation

11.7%

Others

0.9%

Automotive

31.2%

Consumer

Electronics

32.2%(+0.5%) (+3.6%)

(-6.4%)

(+2.0%)

(+0.3%)

Data Storage

23.7%

Office

Automation

10.4%

Others

0.7%

Automotive

31.0%

Consumer

Electronics

34.3%

(+3.6%)(+1.7%)

(-5.5%)

(+0.2%)

(+0.1%)

Note : Changes in contribution % are in brackets