ZICOM GROUP LIMITED — Earnings Release 2014

Jan 16, 2014

ABN 62 009 816 871 Zicom Group Limited

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38 Goodman Place, Murarrie, Queensland 4172 • Tel: (07) 3908 6088 • Fax: (07) 3390 6898

17 January 2014

Market Announcement Office Australian Securities Exchange Level 6, 20 Bridge Street SYDNEY NSW 2000

Dear Sir,

PROFIT WARNING HALF YEAR 2014

Based on draft consolidated accounts subject to final audit, the Group wishes to advise that it expects its consolidated net results for the half year ended 31 December 2013 to reflect the adverse impact of the slow-down in the global economy. The results for this half year are expected to be as follows:-

• a) Consolidated Revenue Consolidated revenue is expected to be S$54m compared with S$63m in the corresponding period of the previous year.

• b) Consolidated Profits after tax Consolidated profits after tax are expected to be S$1m compared with S$4.2m in the corresponding period of the previous year.

Based on confirmed orders in hand, the slack is expected to pick up in the second half year and we are hopeful of maintaining profits of the full year at the same level as the previous year. Barring no unforeseen circumstances, the results could be improved.

1. The half year’s results have been impacted by the following factors:-

2. a) The grid-lock in the USA political system and the continuing slow-down in the global economy caused the global demand for semi-conductors to have shrunk about 13% in the calendar year ended 2013 according to SEMI, a global industry association serving the semi-conductor industry. SEMI has forecast a 23% growth to return in 2014. Our Precision Engineering sector which has been adversely impacted during the half year is currently experiencing a resurgence in orders in line with the expected recovery.

The Group’s increasing focus on technologies is making progress but the pace has been slow due the nature in commercialising disruptive technologies. Our orders for the fine pitch flip chip thermal bonding are subject to customers’ validation of the first unit being successfully integrated into their full production line. We anticipate that after some finetuning and customisation, the customers are expected to confirm execution of the orders in the fourth quarter of financial year ending June 2014.

The medtech technologies continue to encounter challenges which are being addressed. The regulatory approvals for the surgical robot are being updated to accommodate improvements made to the machine. Due to recent changes in regulations and the bureaucratic compliance processes involved, some delays are being experienced. The capability and performance of our drug development technology have been validated and gained acceptance by various research laboratories of global pharmaceutical leaders in USA, Europe, Japan and China. Adoption into their production lines that involves new capital commitments and some extent of restructuring will take some gestation time.

1 Profit Warning HY 2014

• b) The Marine and Offshore sector has a slow start but is expected to recover strongly in the second half. The contribution of the Construction sector in the half year has been better than the corresponding period of the previous year.

3. Confirmed Orders

Confirmed orders in hand as at 31 December 2013 amounted to S$80.6m of which S$52.3m are scheduled for delivery by June 2014 and S$28.3m scheduled for delivery in the financial year ending 30 June 2015.

4. Cash in Hand

The Group’s cash position remains strong. As at 31 December 2013, the total of the Group’s cash and cash equivalents amounted to S$25m.

Yours faithfully Zicom Group Limited

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-------------------------------G L Sim Chairman.

2 Profit Warning HY 2014