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Press Release FY2012 Results

ECS ANNOUNCES FY2012 NET PROFIT OF $29.6M ON REVENUE OF $3.64B; HIGHER-MARGIN ENTERPRISE SYSTEMS SEGMENT RECORDS HEALTHY GROWTH
FY2012 revenue increased 1.0% to $3.64 billion, driven by higher contribution from Enterprise Systems Enterprise Systems revenue up 20.8% in FY2012 to $1.11 billion; higher sales of storage and software products as 4Q12 revenue grew 81.4% year-on-year Total operating expenses lower in 4Q12 and FY2012 compared to a year earlier as improvements in operating and financial efficiencies kick in Proposes first and final dividend of 2.2 cents per share; representing 27.2% of the profit attributable to shareholders
Singapore, 26 February 2013 ECS Holdings Limited (ECS or the Group) announced today that its revenue for the financial year ended 31 December 2012 (FY2012) grew by 1.0% to $3.64 billion from a year earlier, driven by higher contributions from its higher-margin Enterprise Systems segment. The Singapore Exchange Mainboard-listed leading regional Info-Comm Technology (ICT) solutions provider representing best-of-class global brand names said the Enterprise Systems recorded 20.8% growth in revenue for FY2012 to $1.11 billion from $0.92 billion in FY2011, driven by higher sales of storage and software products. However, revenue for the Distribution segment declined 6.1% to $2.50 billion in FY2012 mainly due to lower sales of desktop PCs, notebooks and imaging products, partially offset by growth in sales of mobility devices, reflecting both the economic uncertainty and the clear shift in consumer IT patterns globally. ECS FY2012 net profit decreased 24.4% to $29.6 million from $39.2 million for FY2011 with gross profit of $143.8 million compared to $167.3 million, respectively. Gross profit margin narrowed to 3.9% from 4.6% over the comparative period due to the change in sales mix which resulted in higher revenue contribution from lowermargin mobility devices in FY2012. The Groups 4Q12 revenue grew 10.5% to $1.02 billion from $924.5 million in 4Q11, mainly due to the 81.4% revenue growth from Enterprise Systems segment led by
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higher sales of storage, software and networking hardware. This was partially offset by a 12.1% decline in the Distribution segment. Geographically, North Asia remained ECS largest revenue contributor at $589.6 million in 4Q12 (4Q11: $617.5 million), followed by South East Asia, which grew 40.5% to $431.5 million in 4Q12 (4Q11: $307.0 million). Net profit in 4Q12 declined 21.4% to $7.1 million from $9.0 million in 4Q11 as GP margin narrowed to 3.4% from 4.5%. This resulted from the change in sales mix, particularly in China and lower margin recorded from networking hardware. In addition provisions for inventory obsolescence of $0.8 million were incurred in 4Q12 compared to a $2.3 million reversal of inventory obsolescence in 4Q11. Total operating expenses were 8.9% lower in 4Q12 compared to 4Q11 mainly due to selling and distribution expenses declining by 16.2%, partially offset by a 11.1% increase in general and administrative expenses. Total operating expenses as a percentage of revenue improved to 2.8% in 4Q12 from 3.3% in 4Q11. Cash and bank balances stood at $108.2 million while bank borrowings stood at $243.0 million with net gearing at 0.40 times as at 31 December 2012. Earnings per share (EPS) declined to 8.10 cents in FY2012 from 10.74 cents in FY2011 while net asset value (NAV) per share increased to 92.83 cents as at 31 December 2012 from 89.37 cents a year earlier. ECS has proposed a first and final dividend of 2.2 cents per share, representing 27.2% of the profit attributable to shareholders. Mr. Ong Wei Hiam, Group Chief Executive Officer of ECS, said, ECS revenue has continued to grow even as we position ourselves for the consumer shift towards mobility devices instead of PCs. We are encouraged by the growth of the Enterprise Systems segment, especially in the fourth quarter, and will continue to focus efforts to strengthen momentum in this higher-margin business. Mr Tay Eng Hoe, Group Executive Chairman, said, Going forward, the Group will focus on emerging markets such as China and Indonesia to drive revenue and profitability growth in 2013. In addition, the Group will continue to strengthen working capital management, as well as improve operating and financial efficiencies. In view of the uncertainties in the overall global macro-economies, the Group is cautiously optimistic about its performance in 1Q13 and FY2013.
###end of release### Important This press release is to be read in conjunction with the Companys exchange filing of 4Q 2012 results announcement, which can be downloaded from www.sgx.com via listed company announcements.

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Issued on behalf of the Company by WeR1 Consultants Pte Ltd Investor Relations contact: WeR1 Consultants Pte Ltd 38A Circular Road, Singapore 049394 Tel: (65) 6737 4844, Fax: (65) 6737 4944 Josephine Auxilio, josephine@wer1.net Lai Kwok Kin, laikkin@wer1.net

About ECS Holdings Limited (ECS) Listed on Singapore Exchange Mainboard since 2001, ECS is a leading ICT products and services provider, serving a wide regional customer base. The Group has 67 offices in six countries namely China, Thailand, Malaysia, Singapore, Indonesia and the Philippines. The three main businesses are Enterprise Systems, IT Services and Distribution. Enterprise Systems Division designs, installs and implements IT infrastructure for companies, while IT Services Division provides a comprehensive range of professional, technical support and training services. Leading IT vendors use ECS network of over 23,000 channel partners in the region to distribute their products. ECS has a consistent profit track and a management that is focused on operational excellence to achieve sustainable profit growth and enhance shareholder returns. For more information, please log onto: http://www.ecs.com.sg

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