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AC and Board Presentation of 2014 Year End Financial

Results

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　 2014 2013 YOY

Net Revenue 　 　 　

Thailand 166,864 $175,347 -4.84%

North Asia 114,836 69,347 65.60%

ROW 169,627 215,982 -21.46%

Total 451,327 460,676 -2.03%

Cost of sales (414,583) (408,860) 　

Gross profit 36,744 51,816 -29.09%

US$'000For the year ended December 31

Revenue and GP Summary

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Revenue Pie Chart

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Revenue Analysis

Revenue Changes

• Thailand – Revenue decreased by $8.4 million from $175.3 million in 2013 to $166.9 million in 2014, or 4.8%. The decrease was primarily attributable to the fact that the volatile political situation adversely impacted the level of infrastructure investment and customer demand for our products.

• North Asia – Total sales increased by $45.5 million, or 65.6%, from $69.3 million in 2013 to $114.8 million in 2014. The increase in sales was primarily due to the fact that starting November 2013, the region's export sales were no longer made through EPAN, and as a result, a substantial portion of the export sales was moved to the North Asia region. The increase in sales was also contributed by the increase in the sales of manufactured products due to a different sales strategy, which increased both domestic and export sales.

• ROW – Revenue decreased by $46.4 million, or 21.5%, from $216.0 million in 2013 to $169.6 million in 2014. The decrease was primarily because starting November 2013, a substantial portion of the export business was transferred to the North Asia region rather than being conducted through the ROW region. The decrease was also attributable to the decrease in sales in APEC due to stronger competition in the Australia market and the depreciation of the Australian dollar.

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　 2014 2013

　 Amount GP% Amount GP%

Gross Profit 　 　 　 　

Thailand $15,882 9.52% $26,385 15.05%

North Asia 4,441 3.87% 3,096 4.47%

ROW 16,421 9.68% 22,335 10.34%

Total 36,744 8.14% 51,816 11.25%

US$'000For the year ended December 31

Gross Profit Analysis

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Gross Margin Pie Chart

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Gross Profit Margin Analysis

Gross Profit Margin Changes

•Thailand – The gross margin was 9.52% in 2014, down from 15.05% in 2013, a decrease of 36.7%. Our major clients in this region included government entities, private sector participants in the infrastructure sector and agents for governmental entities. The unstable political environment adversely affected Thai government’s spending on infrastructure. The gross margin of the Thailand region was eroded by the decrease in sales to the public sector, from which our subsidiaries in the Thailand region enjoyed a higher profit margin.

•North Asia – The gross profit margin was down from 4.47% in 2013 to 3.87% in 2014. The Company’s main product in this region is enameled wire, as the technology required to manufacture the product is low and the manufacturing process is not sophisticated, the Company’s business in the region was adversely affected by competition in the local market. In order to maintain the market share without sacrificing the product quality, the Company lowered the selling price to match competitors’ prices.

•ROW – The gross profit margin decreased from 10.34% in 2013 to 9.68% in 2014. The decrease of the gross margin was primarily due to the competition in the Australia market, where the Company’s Australia subsidiary lowered the selling price to compete with similar products imported from China by other competitors.

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Headcount

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Summary Income Statement

　 2014 2013

Total Sales $451,327 $460,676

Cost of Sales (414,583) (408,860)

Gross Profit 36,744 51,816

Income from Operations 5,186 17,242

Income Before Tax 5,035 16,784

Net Income 2,761 11,266

Less: Net Income attributable to non-controlling interests

2,189 5,419

Net Income (Loss) attributable to APWC 572 5,847 Basic and Diluted Income (Loss) per Share (USD) $0.04 $0.42

US$'000For the year ended December 31

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Net Income Analysis

Net Income decreased from $11,266K to $2,761K for the

following reasons:

• The operating profit decreased by $12,056 due to a) decreased

revenue, b) increased costs of sales, c) inventory was written down

due to the drop in the copper price, and d) $2,215K Allowance for

Trade Receivables recognized in 2014 for SYE re: 營口億峰電線電纜有

限公司 & 韓東亞電子 (上海 )有限公司 .

• The exchange loss decreased by $1,039K.

• The income tax expense decreased by 3,244K.

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Summary Balance Sheet

　 2014/12/31 2013/12/31

Current Assets 317,992 302,249

Other Assets 60,680 62,386

TOTAL ASSETS 378,672 364,635

Current Liabilities 148,492 128,125

Other Liabilities 9,002 8,383

TOTAL LIABILITIES 157,461 136,508

Total Shareholders’ Equity 221,211 228,127TOTAL LIABS and SHS’ EQUITY 378,672 364,635

Net Book Value Per Share 11.07 11.38

US$'000

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Net Book Value Analysis

Net Book Value Changes

Net Book Value decreased from $11.38/share to $11.08/share mainly due to the exchange rate fluctuation

　US$ / AUD$ US$ / RMB$ US$ / SGD$

US$ / THB$

Dec 31, 2013 Closing Rate 1.1269 6.1122 1.2685 32.8637

Dec 31, 2014 Closing Rate 1.2218 6.2156 1.3221 32.7301

Appreciation (Depreciation) of local currency against USD

(8.42%) (1.69%) (4.23%) 0.41%

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Key Financial Ratios

　 APWC General Cable 大亞 萬泰

Current Assets / Current Liabilities 2.14 1.62 1.84 1.34

Total Liabilities / Total Assets 42% 84% 57% 57%

Total Liabilities / Total Equity 71% 539% 134% 134%

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