Ayala 180 Years 6 Chairman’S Message 10 President’S Report 12 Board of Directors 20 Management Committee 22

ELectronics Manufacturing services (EMS) Revenues in Billion US$ The rapid rise of post-PC platforms has led to startling changes in our wireless world. From phones to smartphones, from PCs to tablets, from car dashboards to wearables— technology today is pervasive and ubiquitous. This has led to an unprecedented surge in demand for electronics and has transformed the competitive landscape for global electronics manufacturing services. With total EMS industry revenues projected to hit at least US$283.9 billion by 2016, we at IMI are confident that we can capture a sizable proportion of the EMS market over the next several years. Already a globally respected Top 20 player, we continue to aggressively pursue new opportunities and accelerate our drive to expand across multiple markets. By leveraging our deep bench of industry experience, technical capabilities, and global footprint, we believe that IMI’s growth strategy is sustainable and will propel us into the elite ranks of the world’s top EMS providers by 2020. B INTEGRATED MICRO-ELECTRONICS, INC. 2013 Annual Report and Sustainability Report Contents ANNUAL REPORT About IMI 2 Ayala 180 Years 6 Chairman’s Message 10 President’s Report 12 Board of Directors 20 Management Committee 22 SUSTAINABILITY REPORT Good Governance 25 Workplace Initiatives 26 Corporate Social Responsibility 28 Environment, Health, and Safety Program 30 Green Manufacturing 32 GRI Indicators 34 FINANCIAL REPORT Report of the Audit Committee to the Board of Directors 38 Statement of Management’s Responsibility for the Financial Statements 39 Independent Auditors’ Report 40 Consolidated Financial Statements 41 Corporate Directory 119 2013 ANNUAL REPORT 1 2013 ANNUAL REPORT 1 Our Story We are a leading worldwide provider of electronics manufacturing services (EMS) and power semiconductor assembly and test service Proud to be a member of the Ayala group of companies, we play an active role in this Age of Electronics: We develop and manufacture electronic devices that impact our lives or that we use daily, whoever and wherever we are Our Expertise IMI’s comprehensive range of pioneering product and manufacturing services assist original equipment manufacturers in product realization Annual Revenues Support Design and NPI* Manufacturing and Engineering Fulfillment • Design and Development • Advanced Manufacturing • From PCB and FPCB Assembly Services to Engineering Complete Box Build • Materials Sourcing • Test and System • High-Volume Manufacturing • Logistics Solutions Development • Low-Volume, High-Mix Manufacturing • Product Reliability and • EMC Pre-certification • Complex Equipment Manufacturing Failure Analysis Solutions • Power Semiconductor Assembly and Test Solutions • Calibration • Custom Automation • Flexible Business Set-ups • Product Repair Services • Plastic Injection * New Product Introduction 2 INTEGRATED MICRO-ELECTRONICS, INC. Financial Highlights In US$ Million 2012 Variance % 2013 (As Restated) 13% 661.8 83.2 Revenues 745.0 11% 32.7 3.7 EBITDA 36.4 88% 5.6 4.9 Net income* 10.5 8% 453.3 34.9 Total assets 488.2 -1% 193.8 -1.2 Equity* 192.6 0.10 Book value per share 0.10 1.56 Current ratio 1.53 0.47 Debt-to-equity ratio 0.48 2.9% Return on equity* 5.4% *attributable to equity holders of the Parent Company 5%EBITDA MARGIN Annual Revenues In US$ Million $49.0M CASH BALANCE 745.0 661.8 13% 575.5 REVENUE • Materials Sourcing • Logistics Solutions • Product Reliability and Failure Analysis 412.3 • Calibration 395.5 • Product Repair Services NET INCOME 09 10 11 12 13 $5.6M $10.5M 2013 ANNUAL REPORT 3 4 INTEGRATEDINTEGRATED MICRO-ELECTRONICS,MICRO-ELECTRONICS, INC.INC. 2013 ANNUAL REPORT 55 SPECIAL SECTION A Brief History of the Philippines’ Oldest Business House yala in 2014 celebrates its 180th year. How it evolved into A one of the largest and most innovative Philippine conglomerates— with businesses ranging from real estate, financial services, and telecommunications to investments in water, electronics, automotive, business process outsourcing, power, and transport infrastructure—is the longest narrative in the country’s business history. The story begins in 1834 in what was Las Islas banking. Banco Español-Filipino—which issued the Filipinas. At a time when Manila’s business houses first Philippine paper currency—later became Bank of were engaged mainly in executing customers’ orders the Philippine Islands. for buying and selling of commodities for a fee, landowner and entrepreneur Domingo Roxas and his One of de Ayala’s sons-in-law was the multitalented young industrial partner Antonio de Ayala created a Jacobo de Zobel: businessman, numismatist, company that would engage in agribusiness. They archaeologist, writer; mayor of Manila at age 30; built a distillery to derive greater value from cane sugar. he read and spoke 11 languages, including Arabic It was small but it represented a Philippine step from and Etruscan. While engaged in the family business the purely agricultural to the little-unexplored realm and serving on the Banco Español-Filipino board, he of industry. introduced the first streetcar system in Manila. When it had grown and become well known, the After the turn of the 20th century, the tramcar service distillery exported various products to Europe and was sold to an American company that renamed it garnered awards and recognition for their quality. Manila Electric Railway and Light Co., or MERALCO. This showed that an enterprise in the rural and The distillery was also sold, to businessman Carlos remote Philippines could compete in the international Palanca; at the time, it had 3,000 employees, arena and win. Its best selling brand, Ginebra San including Filipino and French scientists. It had Miguel, remains today. become a de facto incubator of the country’s chemical industry. When a Spanish royal decree established El Banco Español-Filipino de Isabela II, Southeast Asia’s first private commercial bank, Antonio de Ayala was appointed director representing the Manila business community. Thus began the Ayala involvement in SPECIAL SECTION INTO MODERN TIMES A decision attributed to Roxas’ son Jose Bonifacio was the purchase of land in San Pedro de Makati that extended all the way to the banks of the Pasig River. The property was deemed to have little value and had undergone a series of ownership changes when the company bought it for P52,800 in 1851. When the family’s assets were apportioned in 1914, the Makati property went to the cousins Jacobo, Alfonso, and Mercedes Zobel de Ayala. They and their successors would bring Ayala to what it is today. Mercedes’ husband, Col. Joseph McMicking, provided a new vision for Ayala, and for developing what remained of the Makati property. The venture was uncertain and at first difficult. When success came, it signified an unprecedented leap in the evolution of local real estate development. From it emerged the Philippines’ first modern Central Business District. Ayala moved further from being a family business to being more corporate in character. After a century, it began to employ professional managers. It incorporated in 1968 and became publicly listed in 1976. With professional teams, Colonel McMicking and his successors in management—Jacobo’s son Enrique Zobel and Alfonso’s son Jaime Zobel—steered Ayala to great success in the 20th century. Today, Jaime Augusto and Fernando Zobel de Ayala share leadership of a modern conglomerate with a much broader impact on the life of the nation. BEYOND 180 YEARS: ENABLING ENTREPRENEURSHIP Ayala has found that the entrepreneurial spirit that has driven it for 18 decades is shared by many Filipinos, including merchants in its malls, retailers of Globe products, overseas workers’ families that bank with BPI, residents’ cooperatives in Manila Water’s distribution zone, and micro-entrepreneurs who benefit from BanKO’s microfinance services. As Ayala continues its expansion and diversification, it keeps an enthusiastic eye for the many thousands of people who will begin and build their own businesses through the ones it creates. “By emphasizing a social purpose, we achieve a more complete form of doing business and generate a cycle of prosperity,” says the chairman and chief executive officer, Jaime Augusto Zobel de Ayala. “We have always believed that the development of every individual foregrounds the development of the whole,” adds his brother Fernando, president and chief operating officer. Ayala’s reputation for integrity, product and service quality, financial strength and prudence, and high professionalism has made it a partner of choice for major international corporations and the employer of choice for many of the best and brightest talents. The respect and trust it enjoys is deemed to have been earned by few other businesses in the Philippines, and these are the core values that it treasures the most. The conglomerate’s leadership, with Jaime Zobel de Ayala as chairman emeritus, constantly promotes these values, including a deep commitment to Philippine development and to the Filipino. Ayala’s narrative of pioneering innovation continues into a future full of new opportunity and promise. Chairman’s Message Growth in the global economy in 2013 was challenged by the subdued to modest growth of advanced economies, and a slowdown in many emerging markets. As the year unfolded, the eurozone climbed out of recession, while consumers in Japan and the United States continued to mend their personal balance sheets. While China’s economy continued to expand, it did so at its most sluggish pace in 20 years. This in turn moderated growth across the region. The second half of the year, however, brought some reassurance that the world’s second-largest economy had averted a hard landing. While worldwide electronic equipment production declined and the global electronics outsourcing industry contracted, IMI was able to report higher revenues and profit. This, I believe, marks the first steps of renewed success in our company’s continuous transformation towards higher value products and services, driven by our operating expansion in Europe and the Philippines, and our effective diversification strategy.

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