Heartland Boy | www.heartlandboy.

com

Company

1) History of Consistently Increasing Revenue and Profits

Year 2012 2013 2014

Revenue (S$ mil)
Net Profit (S$ mil)

2) Conservative Level of Debt (Net Long-Term Debt < 3 times of Net Profit)

Cash & Cash Equivalent

Long Term Debt
Net-Long Term Debt
Net-Long Term Debt over Net Profit

3) Consistent and High Return on Equity (ROE) over

Year 2012 2013 2014

ROE (%)

4) Share Price is Less Than Intrinsic Price

Total Outstanding Shares
Beta (Obtain from Reuters)
Discount Rate

Earning Per Share Year 2005

Earning Per Share Year 2015
Long-Term Growth Rate

Year 2016 2017 2018

Net Operating Cashflow (S$ mil) #DIV/0! #DIV/0!
Net Present Value #N/A

Intrinsic Price #N/A

Current Share Price

5) Sustainable Competitive Advantage

[Impute Y or N]
Market Leadership
Economics of Scale
Strong Brand Name
Patents/Technological Know-how
High Switching Costs

6) Future Growth Drivers

 [Impute Y or N]
New Product Launch
Expansion of production facilities
New Market Entry
 10
9
2015
8
7
6

f Net Profit) 5
Yr 2015 4
3

0 2
#DIV/0! 1
0
1 2 3 4
12%

2015 Beta Discount Rate

0.01 5.0%
0.8 5.0%
1 6.0%
1.1 6.8%
1.2 7.0%
1.3 7.9%
#N/A 1.4 8.0%
1.5 8.9%
1.6 9.0%

#DIV/0!

2019 2020 2021 2022 2023 2024 2025

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
 Revenue (S$ mil)
Net Profit (S$ mil)

4
Heartland Boy | www.heartlandboy.com

Company Micro-Mechanics

1) History of Consistently Increasing Revenue and Profits

Year 2012 2013 2014

Revenue (S$ mil) 38.8 39.2 43.9
Net Profit (S$ mil) 4.2 5.1 7.8

2) Conservative Level of Debt (Net Long-Term Debt < 3 times of Net Profit)

Cash & Cash Equivalent

Long Term Debt
Net-Long Term Debt
Net-Long Term Debt over Net Profit

3) Consistent and High Return on Equity (ROE) over

Year 2012 2013 2014

ROE (%) 11.30% 13.50% 19.00%

4) Share Price is Less Than Intrinsic Price

Total Outstanding Shares
Beta (Obtain from Reuters)
Discount Rate

Earning Per Share Year 2005

Earning Per Share Year 2015
Long-Term Growth Rate

Year 2016 2017 2018

Net Operating Cashflow (S$ mil) 14.1 15.3 16.5
Net Present Value 162.04

Intrinsic Price 1.17

Current Share Price 0.79

5) Sustainable Competitive Advantage

[Impute Y or N]
Market Leadership N
Economics of Scale N
Strong Brand Name Y
Patents/Technological Know-how Y
High Switching Costs Y

6) Future Growth Drivers

 [Impute Y or N]
New Product Launch N
Expansion of production facilities Y
New Market Entry N
icro-Mechanics

60
2015
52.2 50
12
40

f Net Profit) 30
Yr 2015
13.5
20
0
-13.5
-1.125 10

0
12% 1 2 3 4

2015 Beta Discount Rate

24.10% 0.01 5.00%
0.8 5.00%
1 6.00%
1.1 6.80%
139,031,881 1.2 7.00%
0.09 1.3 7.90%
5.00% 1.4 8.00%
1.5 8.90%
3.929 1.6 9%
8.646
8.21%

2019 2020 2021 2022 2023 2024

17.9 19.3 20.9 22.6 24.5 26.5
 Revenue (S$ mil)
Net Profit (S$ mil)

3 4

2025
28.7