Market capitalisation of Catalist declined 59% compared to Main Board of 46%. Average market value of a Catalist company is $23 million compared to average value of $559 million for a Main Board company. An average Catalist company is only 4% of the market value of an average Main Board company.

1. Outlook on M&A Opportunities
Presented By : Tay Woon Teck
5 March 2009

2. Where Are The Opportunities ?
OPPORTUNITIES ARE NOWHERE
OPPORTUNITIES ARE NOW
OPPORTUNITIES ARE NO
HERE
WHERE

3. Catalist Market Capitalisation (Jan 2008 to February
2009)
Market Capitalisation of SGX Main Board and Catalist
Number of
companies
In billion In million
Mkt Cap Main Catalist Total Main Catalist Average
Jan‐08 $663.20 $655.57 $7.63 765 611 154 $866.93 $1,072.95 $49.53
Feb‐08 $689.00 $680.86 $8.14 768 614 154 $897.14 $1,108.90 $52.85
Mar‐08 $671.80 $664.58 $7.22 770 617 153 $872.47 $1,077.12 $47.16
Apr‐08 $694.60 $687.24 $7.36 770 618 152 $902.08 $1,112.04 $48.43
May‐08 $715.90 $707.79 $8.11 769 621 148 $930.95 $1,139.76 $54.81
Jun‐08 $661.20 $653.41 $7.80 772 623 149 $856.48 $1,048.80 $52.32
Jul‐08 $643.12 $635.92 $7.20 774 630 144 $830.90 $1,009.39 $50.00
Aug‐08 $596.96 $590.49 $6.46 776 631 145 $769.27 $935.80 $44.57
Sep‐08 $506.21 $500.81 $5.40 775 631 144 $653.18 $793.68 $37.50
Oct‐08 $382.87 $378.94 $3.94 770 632 138 $497.24 $599.58 $28.54
Nov‐08 $370.11 $366.57 $3.55 769 635 134 $481.29 $577.27 $26.46
Dec‐08 $384.60 $381.10 $3.50 767 633 134 $501.43 $602.05 $26.12
Jan‐09 $385.60 $382.19 $3.41 768 635 133 $502.08 $601.87 $25.67
Feb‐09 $358.70 $355.55 $3.15 768 636 132 $467.06 $559.04 $23.88
% drop 46% 46% 59%
Market capitalisation of Catalist declined 59% compared to Main Board of 46%.
Average market value of a catalist company is $23 million compared to average value of
$559 million for a Main Board company. An average catalist company is only 4% of the
market value of an average Main Board company.

4. Revenue Size of Catalist Companies
Revenue Size of Catalist Companies % of catalist
companies
Less than $30 million 46%
Between $30 million and $50 million 20%
Above $50 million 34%
Total 100%
About 66% of our catalist companies have revenue of less
than $50 million. In today’s global economy, without the
scale and size, it is hard to compete for business and
continue to attract serious blue chip investors.

5. CASE STUDY
PROPOSED MERGER OF
ELECTROTECH AND ETLA BY WAY
OF A SCHEME OF ARRANGEMENT
UNDER SECTION 210 OF THE
COMPANIES ACT.

6. Proposed Merger of ElectroTech & ETLA
The combined entity has a $300 million revenue with gross
profit of $42 million and potential significant cost savings
derived from operational synergies

7. Proposed Merger of ElectroTech & ETLA
In $ million Electrotech ETLA Combined
Data Storage $0 $46 $46
Semiconductor $29 $9 $38
Medical $68 $10 $78
Analytical $47 $0 $47
Electronics/Automation $70 $10 $80
Others $13 $5 $18
Total Revenue $227 $80 $306
Data Storage 0% 57% 15%
Semiconductor 13% 11% 12%
Medical 30% 12% 25%
Analytical 21% 0% 15%
Electronics/Automation 31% 13% 26%
Others 6% 6% 6%
Total Revenue 100% 100% 100%
The combined entity reduced their exposure in data storage
and semiconductor industries, and position them well in
recession resilence medical and analytical segments.

8. Proposed Merger of ElectroTech & ETLA
The combined entity has net cash of $20 million and
shareholders funds in excess of $200 million

9. Lessons From This Case Study

10. Learning to Love Recessions – McKinsey Quarterly 2002
Special Edition Risk and Resilence. By Richard F. Dobbs.
Tomas Karakolev and Francis Malige

11. Creating New Market Leader During Recession

12. Thank You!
TAY Woon Teck, Partner
(65) 65947803, wttay@stoneforest.com.sg