Annual results 2009Amsterdam, March 2nd, 2010

Board of Directors

Vincent de BokHuub van der Vrande

Turnover fell by 22.4% to € 188,4 m

• Lack of demand in the semiconductor sector left a strong mark in the first 8 months, as from September notable recovery

• Also other sectors were hit and show volatility, but as from September positive on balance

• Order portfolio as of year-end 2009 56,0 m, a slight drop of 2% compared to 2008, but an increase of 7% compared to the end of June 2009

Net result excluding exceptional charges to -4,6 m (2008: 3,1 m)

• Strong decrease of cost base by reduction personnel; in average 385 FTE’s less than 2008

• Exceptional charges for integration NEA/NIS 1,1 m (net)

• Slight positive result in the 4th quarter after four loss-making quarters

Highlights 2009Course of events strongly influenced by negative economical developments, but from September onwards recovery started

Strong balance ratios

• Solvency 44,2% (year-end 2008: 45,3%)

• Decrease shareholders’ equity compensated to a large extent by decrease of inventory and limited investments

Net cash flow -1,8 m (2008 +6,5 m)

• Positive net cash flow in 2nd half 2009 of 8,1 m

• Strong reduction of working capital in the second half of the year

Course of events strongly influenced by negative economical developments, but from September onwards recovery started

Highlights 2009

Key figures 2009

* Excluding exceptional charges

(EUR m) 2009 2008

Mutation H1 2009

Gross turnover 206,3 267,2 -23% 102,1

Net turnover 188,4 242,8 -22% 93,4

Operating result* -4,0 5,9 -3,1

Exceptional charges -1,5 -4,5 -1,3

Net result* -4,6 3,1 -3,2

Net result -5,7 -0,5 -4,2

----------- ----------- -----------

Gross margin / net turnover 41,1% 41,0% 40,7%

Operating margin* -2,1% 2,4% -3,3%

Net margin* -2,4% 1,3% -3,4%

Net profit per ordinary share (EUR) -0,59 -0,05 -0,43

Positioning Neways

• Market: - Coremarket Benelux / Germany- Intentional focus on growth

segments industrial, semicon, medical, automotive, defence and “high-end” telecom

• Customers: - Industrial / professional market- B2B (OEM’s: Original Equipment Manufacturers)

• Specialisation: - Small complex / specialised series- Development / production of electronic

components to complete box build systems

- Product life cycle management/ one-stop-provider

• Core compentence: - Close to customers (Netherlands, Germany)- High added value / expertise and service

- Low production costs (Eastern Europe, China)

• As from September notable recovery of semicon sector

• Situation in other sectors remained volatile, but as from September positive on balance

• No loss of customers through crisis in 2009; new customers/orders: VDL Bus, Sensus

Development turnover and order bookOrder book (EUR m) at the end of

112139 130

93

127

142

113

95

2006 2007 2008 2009

H2

H157,3

52,6 56,0

74,8

2007 2008 H1 2009 2009

+7%

-2%

-22%

-28%

239

281

243

188

Net turnover (EUR m)

Smart Metering

Production

Calibration

Product application

COACH

Wiring harness platform

Product application

Flight simulator

Interactive flight control system

Net turnover per market sector

(EUR m) 2009 % H1 2009 % 2008 % 2007 %

Industrial 64 34 32 34 82 34 84 30

Medical 58 31 31 33 66 27 73 26

Semiconductor 27 14 10 11 41 17 75 27

Automotive 15 8 7 8 20 8 17 6

Defence 11 6 5 6 15 6 13 5

Telecom 10 5 6 6 12 5 8 3

Other 3 2 2 2 7 3 11 3

Total 188 100 93 100 243 100 281 100

4,77,8

1,9

-4,2

6,5

6,7

-2,4

-1,5

2006 2007 2008 2009

H2

H17,1

11,1

3,9

-4,4

9,6

9,9

-2,5

-1,1

2006 2007 2008 2009

H2

H1

Operating result* (EUR m) Net result* (EUR m)

* 2008 / 2009 incl. extraordinary expenses

Development of results

16,7

21,0

1,4

11,2

14,5

-0,5

• Restructuring costs of 1,5 m (gross)

• Cost-saving measures reduced the drop in the results

• Breakeven level (based on net turnover) decreased significantly from 220 m per year-end 2008 to 195 m per year-end 2009

• Operational result in the 4th quarter slightly positive

-5,5 -5,7

Development operating margin • Unprecedented drop in demand due to the

economic crisis

• Causes strong underoccupancy

• Demands strong decrease of cost base

* Excluding exception charges

7%

2006 2009H1 200920082007

EBIT MARGIN *

7,0% 7,5%

2,4%

-3,3%-2,1%

• Increase in turnover is most important driver for EBIT-margin recovery

Potential improvements operating margin

• Better occupancy

• Decrease of cost structure

• Suppliers reduction / preferred suppliership

• Extension of component purchase in Asia

• Expanding capacity Slovakia / China in people and resources (SMD-capacity / test equipment)

• Growth of development and engineering activities and prototyping

• Increase of intercompany deliveries by strengthening one-stop-providership / internal cooperation

• Growth in defence orders higher added value and more stability in turnover

Balance sheet

• Decrease in shareholders’ equity (-12%) caused by realized loss

• Decrease in balance sheet total (-10%) by strong decrease in inventory and limited investments

• Solvency adjusted for deferred tax and goodwill 41,5% (year-end 2008: 43.7%)

Solvency ratio*

* shareholders’ equity / total equity

* 2008/2009: guaranteed equity = total shareholders’ equity

43,9

45,3

44,2

41

2006 2007 2008 2009

Working capital

• Higher turnover rate of inventory due to recovery of demand

• Strong decrease of working capital utilisation in 2nd half of the year

(EUR m) per ultimo 2009 H1 2009 2008

Inventory 38,4 42,3 47,1

In days of turnover 67 77 76

Accounts receivable 32,2 32,0 33,7

In days of turnover 52 61 55

Working capital 36,2 45,2 40,0

• Strong decrease working capital 2nd half 2009

• Modern machinery; low investment level

• New production facility Neways Wuxi in China

Cash flow

Net cash flow (EUR m)

6,5

-9,9

-1,8

4

2007 2008 H1 2009 2009

(Bank)debts

(EUR m)

12121383 1301

1098 1115

885864

867

685 657

2006 2007 2008 2009 ult 2009

EasternEuropaandChina

WesternEurope *

Human resources

Average number of employees• Knowledge component more and more important

• Strong reduction of flexible workforce buffer

• Fixed employee redundancies

• Number of employees per year-end decreased by 9% van 1.946 to 1.772 (174 FTEs)

• Approx 40% of total number of employees working in Eastern-Europe and Asia

2097

* of which hired 212 306 151 58 96

22472168

1783 1772

Data per share

EUR 2009 2008 2007

Operating result -0,57 0,14 2,26

Net result -0,59 -0,05 1,56

Dividend - - 0,47

Shareholders’ equity 4,20 4,79 5,26

Number of outstanding shares (x 1.000 year-end) 9.644 9.644 9.299

EMS - markttrends

• International development / increase in outsourcing by OEMs (extra through the economic recession)

• Offering more added value; demand for life cycle management and earlier involvement in development (one-stop-providership)

• Shorter product life cycle

• Flexibility versus efficiency and cost reduction

• More and more production in low-wage countries (Eastern Europe / China)

• Increasing transparancy due to modern communication media / globalisation

• Growing demand for SMOI (Supplier Managed Owned Inventory)

• Further intensifying of partnerships / customer relations – importance of being close to the customer (Western-Europe)

• Realization of organic growth, supplemented by suitable acquisitions

• Expansion of one-stop-provider concept / increase in added value– Strenghtening of development side and systems assembly – Expansion of Electronic Mechanical Repair (EMR) activities

• More balanced spread of activities over market segments aimed at more stable turnover- and yield development

– Medical sector– Defence market

• Improvement in efficiency – Optimalisation production outsourcing to Eastern-Europe and China (own facilities)– Suppliers reduction/ better use of purchase advantages– Ongoing new cost control initiatives

Long term strategy

Starting position and points of interest 2010• Despite loss in a very challenging year 2009 the company is stable

– No loss of customers in difficult times

– Balance ratios / solvence strong

– Modern production facilities / equipment

– Break-even level strongly lowered by reduction of personnel and costs

– Integration NEA / NIS completed

– Extension of capacity in Asia (Neways Wuxi)

– Start prepartion implementation new ERP system

• Order portfolio significantly better

– Semiconductor / automotive

– VDL Bus as a new customer

– Acquisition Sensus Ludwigshafen system assembly activities

– Increase of overall number of tenders

– Limited recruitment of personnel

• But: Cost savings and working capital management continue to be key focal points

Outlook 2009

Clear recovery in semiconductor sector

Other market sectors still volatile, but as from September 2009 positive on balance

Development turnover and result in first two months 2010 in line with Q4 2009

Further increase of order portfolio in the first two months of 2010

Still too early to give a forecast for the total year 2010; worldwide economic developments still too uncertain