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Press Release FY2013 Results


FY2013 revenue rose to $4.20 billion from $3.64 billion; 4Q13 increased 7.1% to $1.1 billion FY2013 net profit improved to $34.4 million from $29.6 million; 4Q13 increased 19.7% to $8.5 million, with gross profit margin rising to 3.8% from 3.4% Generated strong positive operating cash flow of $18.9 million in FY2013 Proposed first and final dividend of 2.2 cents for third consecutive year

Singapore, 26 February 2014 Singapore Exchange Mainboard-listed ECS Holdings Limited (ECS or the Group) announced today that its net profit for the financial year ended 31 December, 2013 (FY2013) grew by 16.1% to $34.4 million, outpacing a 15.3% growth in revenue which hit $4.20 billion, the highest in the Companys history. The leading regional Info-Comm Technology (ICT) solutions provider representing best-of-class global brand names said FY2013 revenue rose by $0.56 billion from $3.64 billion, propelled by higher contributions from both South East (SE) Asia and North Asia. This resulted in a $4.8 million increase in FY2013 net profit from $29.6 million in FY2012. Geographically, SE Asia recorded 15.9% growth in revenue in FY2013 to $1.69 billion from $1.46 billion in FY2012, driven by higher sales of consumer storage, mobility devices, networking hardware and desktop PCs. North Asia also achieved 14.9% growth in revenue in FY2013 of $2.51 billion as compared to $2.18 billion a year ago. This was mainly due to increased sales of servers, mobility devices, networking hardware, and software products. The Groups revenue for the fourth quarter ended 31 December, 2013 (4Q13) increased 7.1% to $1.09 billion from $1.02 billion in 4Q12, mainly due to the 15.8% improvement from North Asia. 4Q13 revenue from North Asia increased to $682.7 million from $589.6 million, yearon-year, driven by stronger sales of servers, networking hardware, and phone devices. SE Asias revenue declined by 4.7% to $411.3 million from $431.5 million, over the comparative period, mainly due to decreased sales of enterprise storage.
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The Groups gross profit margin improved to 3.8% for 4Q13 compared to 3.4% for 4Q12, mainly due to higher contribution from higher margin enterprise systems products, especially for networking hardware and enterprise storage. This resulted in a 19.3% surge in gross profit to $41.7 million from $35.0 million, over the comparative period. Total operating expenses were 17.9% higher in 4Q13 compared to 4Q12 mainly as a result of higher provisions made for doubtful debts in 4Q13. Net profit in 4Q13 surged 19.7% to $8.5 million from $7.1 million in 4Q12, in tandem with the growth in revenue and gross profit margin. Additionally, 4Q13 net profit was improved by the lower finance costs by 6.4% to $2.3 million despite increase in revenue. The Group generated a positive operating cash flow of $25.6 million for 4Q13 contributing to the $18.9 million for FY2013, a reversal of the negative operating cash flow of $14.2 million recorded in FY2012. Cash and bank balances and bank borrowings stood at $120.9 million and $259.2 million, respectively, while net gearing improved to 0.37 times as at 31 December, 2013 compared to 0.40 times a year earlier. Earnings per share improved to 9.41 cents in FY2013 from 8.10 cents in FY2012 while net asset value per share increased to 101.59 cents as at 31 December, 2013 from 92.83 cents a year earlier. ECS has proposed a first and final dividend of 2.2 cents per share for the third consecutive year, representing 23.4% of the profit attributable to shareholders. Mr. Ong Wei Hiam, Group Chief Executive Officer, said, In passing the $4 billion annual revenue mark, ECS has crossed a significant milestone just four years after we hit $3 billion sales in FY2009. More importantly, our net profit outpaced revenue growth in FY2013, underscoring our relentless efforts to expand markets and product portfolio, while driving higher internal efficiencies. Mr. Tay Eng Hoe, Group Executive Chairman, said, The global technology landscape is accelerating its shift towards mobile devices and cloud-based services. ECS is determined to stay ahead of the game in this new IT era by investing more resources in these sectors. Barring any unforeseen circumstances, the Group is cautiously optimistic on its performance in 1Q14 and FY2014.

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Important This press release is to be read in conjunction with the Companys exchange filing of 4Q 2013 results announcement, which can be downloaded from via listed company announcements.

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, Ian Lau,

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 64 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:

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