SAM Engineering & Equipment (M) BHD

25th AGM Presentation

28th August 2019

Our Business

SAM EE Footprints

PE1 – Special Process (54K sqft)

SPA – Large Format Aerospace Machining

(140K sqft)

PE3 – Big Format Machining (131K sqft)

PE5 – Small Format Machining (131K sqft)

PE6 – Sheet Metal & Special Process

(177K sqft)

PE7 – Equipment Integration (148K sqft)

Tuas, Singapore (62K sqft)

Jurong, Singapore (180K sqft)

Ayuttaya, Thailand

Operations Update Equipment Aerospace

Equipment Aerospace

Semicon Equipment• Good progress on larger market share and higher level

integration for existing main assembly product. First articlein progress.

• Winning few new projects.

Storage Device Equipment• Big Data Generation for enterprise market has

driven bigger customer orders in a more consistent basis.

• Good progress made for the Semiconductor sector.

Equipment : Contract Manufacturing

Machining Technology

• Customer’s approval granted to run mass production for Semiconductor FrontEnd Business and complex parts on the new machines (4 units of 5 axismachines and 1 unit of turn-mill 9 axis).

Equipment : Machining

Aerospace Equipment

Aerospace Core Products

Nacelle Beams

Engine Cases

Officially opened by Minister of International Trade and Industry, Yang Berhormat Datuk Darell Leiking.

State-of-the-art flexible manufacturing system

Aerospace : Aerostructures

Aerospace : Casings

Automated Line at Singapore Tuas Facility

Machining DeburringNon Destructive Test MeasurementCoating

Towards Industry 4.0Robotic Applications

Deburring EquipmentCoating Equipment

Towards Industry 4.0

Digitalisation with IOT-enabled Production Environment

Full connectivity and visibility of all production operations enable seamless control of the physical production

Financial Highlights

Revenue

312 333 310371

460

140

287

227

248

295

452

620537

619

755

0

100

200

300

400

500

600

700

800

FY2015 FY2016 FY2017 FY2018 FY2019

Aerospace

EquipmentCAGR14%

RM’Mil+136

(+22%)

Revenue By Segment

60%

40%

FY2018

Aerospace Equipment

61%

39%

FY2019

RM619mil

RM755mil

Profit Before Tax

39

69

55

73

95

0

10

20

30

40

50

60

70

80

90

100

FY2015 FY2016 FY2017 FY2018 FY2019

RM’Mil

+22 (+30%)

CAGR24%

Capital Investments

25m

78m

103m

101m

Investment > RM300mil

Aerospace

Equipment

Milling machines & FMS line for A320neo and A350 Beams

Milling machines & FMS line for Leap Casings

Machines for Chambers

FY2016

FY2017

FY2018

FY2019

Machines for Prismatic Parts

Machines for Small Format

Machining

Business Outlook Equipment Aerospace

Equipment Aerospace

Key Industries for Equipment Business

61%

39%

FY2019

RM755mil

Semiconductor

Storage Devices• Solid State Drive• Hard Disk Drive

• Front End• Back End

Others• Medical • Automotive• Telecommunication

Semiconductor Equipment Market Outlook

Source: SEMI/SEAJ Worldwide Semiconductor Equipment Market Statistics report, July 2019

2019 2020

$52bil$59bil

$65bil

Forecast

-18% in 2019+12% in 2020

Storage Devices – Digitizing the World

• Consumer• Enterprise• Public Cloud

Data Demand Ever Expanding

Aerospace Equipment

Aerospace Products and Programs

777

C919

Aerostructure (Small to Large Size)

> 2 meter

Aero-Engine

• A220• A320neo• A350• B787

• A320ceo/neo• B737NG/max• B777• B787

• C919• Global

7500/8000

A220

A320neo

Aerospace Outlook

SAM Aerospace projected order book RM2.7 billion

• Airbus GMF 2018 projected industry growth CAGR 4% over the next 20 years

5,745(7.1 years*)(9.0 years*)7,198

• Healthy aircraft order book for Airbus and Boeing

*Based on 2018 production rate Source: Airbus & Boeing July’19

Boeing 737Max Aircraft

B737Max Crashes

1. Lion Air, JT 610, crashed

on 29th Oct 18 killing all

189 on board

2. Ethiopian Airlines, ET

302, crashed on 10th Mar

19 killing all 157 on boardStatus

1. Investigations on crashes still on-going

2. Boeing is working to fix its anti-stall flight control

software, as well as other issues identified by regulators,

including the FAA (Federal Aviation Administration)

Short Term Uncertainty – Boeing 737Max

13 March 2019737Max grounded by FAA

5 April 2019

Boeing announced production rate cut to 42 aircraft monthly (-20%)

26 June 2019FAA announced potential risks which Boeing need to mitigate

Boeing 737Max contributed <10%

of SAMEE FY2019 Revenue

FY 2019Revenue RM 755mil

25 July 2019

Boeing announced it expected the B737Max to be in operation by Oct 2019. It might further reduce production rate if the schedule changed

Thank You