Corporate Presentation AEM Holdings Ltd

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Safe Harbor for Forward-Looking Statements

This is a presentation of general information relating to the current activities of AEM Holdings Ltd (“AEM”). It is given in summary form and does not purport to be complete. In addition, the presentation may contain forward-looking statements relating to financial trends for future periods, compared to the results for previous periods. Some of the statements contained herein are not historical facts but are statements of future expectations relating to the financial conditions, results of operations and businesses and related plans and objectives. The information is based on certain views and assumptions and would thus involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in these forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies, shifts in customer demands, customers and partners, changes in operating expenses, governmental and public policy changes, and the continued availability of financing. Such statements are not and should not be construed as a representation as to the future of AEM and should not be regarded as a forecast or projection of future performance. No reliance should therefore be placed on these forward-looking statements, which are based on the current view of the management of AEM on future events. The presentation is also not to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. AEM accepts no responsibility whatsoever with respect to the use of this document or any part thereof.

Non-GAAP financials – the figures as presented are based on Singapore Financial Reporting Standards (“FRS”) and are therefore non-GAAP. In this presentation, all $ dollar amounts are in Singapore dollars unless otherwise specified.

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• Listed on the main board of Singapore Exchange since 2000 (SGX: AWX), AEM Holdings Ltd (AEM) focuses on delivering customized automation solutions for highly complex industrial applications.

• Over 480 employees in Singapore, Malaysia, China, N America, Central America and Vietnam.

• Over 160 engineers in R&D, Production Engineering and Field Service Engineering.

• Over 15 year supplier relationship to one of the largest semiconductor companies globally for their customized back-end test handlers.

• Global site engineering support with sophisticated spares/ RMA systems in Asia, N America, Europe, Middle East, and Central America.

• Ownership of IP of handlers.

• Private Equity involvement since 2011. 11 quarters of Y-o-Y revenue growth.

About AEM Holdings Ltd.

2017 Sales

S$221.6m

2017 PBT

S$36.8m

2017 PAT

S$31.5m

31Dec17 Net Cash S$46m

1H 2018 Sales backlog

S$115m

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Business highlights

• Leading global provider of high-end test handlers. Estimated TAM of S$1 billion per year.

• Stable, over 15 years’ relationship with marque customer spanning 4 test handler platforms

• Attractive and durable core business based on selling handler platforms

Test handlers provide significant benefits to customer, reducing costs and increasing product yield

Each handler platform represents a proven, multi-year life cycle of equipment, upgrades and consumables sales

New high-volume platform represents multi-year opportunity for AEM

• Defensible competitive position

Highly complex customized equipment

Early customer engagement at R&D level

Integrated Field Service Support and Spares organization across multiple geographies

• Strong growth momentum

Significant order book and backlog for new high density modular test handler tools

Known upgrade and consumables opportunities for existing platforms

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AEM’s solutions

AEM’s solutions cover logic, MEMS and RF, from wafer level to system level

Our solutions are the result of years of dedicated research and development, backed by intellectual property development and ownership

Semiconductor MEMS Test & Measurement

• High density modular automated test platform (HDMT)

• System level test Platform

• .AOI solutions – below 2 micron and 3D inspection

• Package and Wafer Level test solutions

• Pressure, Gyroscopic, Accelerometers, Humidity, Magnetometers, etc.

• Portable multi-mode vector network analyzers

• Cable testers

• Socket testers

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AEM’s global footprint

Turku

Chandler (US HQ) Austin

Costa Rica

Chengdu

Ho Chi Minh

Oregon

Philippines Kulim

★

Suzhou

Penang

Singapore

Global HQ

AEM subsidiary factories

Direct engineering support

3rd party engineering support

Afore Finland

AEM Global Footprint

Global platform provides merger synergies through both growth and global operating efficiencies

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New handler platform is in full commercial ramp up

• Multi-year investment in creating our next-generation handler is paying off with solid financial results

• We expect continued growth from sales of new equipment as well as recurring revenues

• We continue to see growth from our major customer

What has changed in the last 12 months?

Our business is on a solid growth footing as our investments continue to pay off

1

We see continued growth opportunities

• New engineering resources have been hired to work on non-semiconductor growth opportunities

• We continue to broaden our solutions footprint at our major customer

• Good execution on accretive and strategically diversified M&A (InspiRain, Afore, IRIS Solution)

3

Solid operational capability enhancement to drive customer satisfaction and operational excellence

• Rolling out extensive field service and quality organizations to support key customer 24/7 across multiple sites

• Continued opportunity to “lean” operations to drive productivity improvements

• Product improvement and cost reduction engineering initiatives

2

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Example of our growing importance of Modular Handlers

Testers

Burn In

Class Test

System Level

Automation platforms until recently

Handlers

Interface

Handlers

ATE

Handlers

Manufacturing process Near future

+

All-in-One

Modular, parallelized

high-performance

platform for:

• Pre-heat

• Class test

• Burn-in

• PPV

CO

NSO

LID

ATI

ON

AEM has gained market share by delivering a completely modular high-density handler platform for our customer

System Level (PPV)

9

Our full capabilities

We provide commercial products and services across the entire solution lifecycle, resulting in multi-year, diversified and recurring revenue streams

MULTI-YEAR EQUIPMENT LIFECYCLE

DESIGN ENGINEERING MANUFACTURING FIELD SUPPORT UPGRADES REPLACEMENT

1 2

3 6

4 5

1 2 3 4 5 6

• Automation research

• Automation design

• Revenue model: Services

• Tool engineering

• Kits development

• Revenue model: Services

• Equipment sales

• New Kits and Pans

• Revenue model: Equipment sales Services

• 24/7 site support

• Spares and RMA

• Revenue model: Recurring kit/ consumable sales Services

• Upgrade engineering

• Revenue model: Equipment sales Services

• Identify next-generation solution

• Start new equipment life cycle

• Revenue model: To capture next commercial lifecycle

10

AEM’s acquisition strategy drives market expansion & strong synergies

+ Acquisition of IRIS

deepens

engineering,

product &

technology

capabilities across

all segments for

AEM

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Our growth strategy

Update on InspiRain – Test and Measurement System

• AEM acquired InspiRain on 30 September 2017, a network infrastructure testing and measurement company with founding employees having developed 3 successful cable test products to worldwide markets over the last 14 years

• Successfully launched the following 3 products in BICSI Florida in February 2018 and received good response and review from customers, distributors and representatives:

• TestPro CV100 - the world’s first Multi-Gigabit Copper Cable Validator and Certifier for automotive industry;

• MMVNA (Multi-Mode Network Vector Analyzer); and

• Socket / Cable Test Automation

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Afore offers a range of fully-featured MEMS test solutions

• Wafer level test handler for environmental sensors with physical stimulus

• Motion simulator for sensor and end product testing

• Configurable design with 3 rotating axes

• High accuracy motion simulation

• Wafer-level test handler for motion sensors

• The only wafer level test solution in the world for motion sensors with real stimulus

Kronos Apollon Aiolos Metis Kronos Apollon

• Highest revenue product

• Strip level tri-temp test handler for motion sensors

• Designed for high-end automotive and industrial applications

Acceleration

Gyro

Temperature

Combo

Acceleration

Gyro

Magnetic

Temperature

Combo

Pressure

Humidity

Temperature

Combo

Acceleration

Gyro

Temperature

Combo

AFORE PRODUCT SUITE (KEY PRODUCTS)

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AEM adds +$100m TAM with entry into MEMS test handling

MEMS test handling is an attractive, US $100m market growing rapidly:

AEM+Afore combination is well positioned to grow Afore’s 6% market share

Source: AEM estimates

AEM+Afore well positioned to

grow share in MEMS test market:

• Afore’s solutions benefit from industry shift to

wafer-level testing: Afore is the only

commercial-scale wafer-level solution available

today

• AEM dramatically expands Afore’s sales &

marketing capabilities to access global market

• AEM provides global field support platform for

Afore

• Combined company enjoys global

manufacturing scale

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IRIS Solution company overview

Company Background

• IRIS Solution (“IRIS”) is a SG-based company that is involved in the business of machine vision solutions system development and integration.

• IRIS has solid technical competencies in the following areas:

o Software and algorithm development for machine vision, image processing, product handling control

o Optical and lighting design and assembly

o Mechanical and electronics design and assembly

• Its solutions have been delivered globally including to some of the world’s largest electronics and semiconductor companies.

• The company is founded in 2000.

Product Offering

• Advanced machine vision solutions system development and integration

• Integrated with automated optical wafer inspection systems, die bonders and semiconductor devices inspection systems Small scale testing service

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Selected Machine Vision System Product Portfolio

Wafer Inspection System for

Inkjet Manufacturing

Die Alignment Measurement

System for Inkjet Manufacturing

Flip Chip and Thermal Bonder

Machine Alignment

and Wafer Inspection Vision System

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IRIS clients span electronics, semiconductor, optical devices, and other industries

Attractive, diversified customer base broadens market access for AEM

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Our growth strategy

Core account growth

New account growth

New business

• Strong growth ramp for HDMT

• Continue recurring consumables/kits growth

• Grow share of wallet through next-gen solutions and supply chain capture

• Continue market penetration in solar, industrial and smart-card

• Invest in new resources to capture new industry verticals and solutions

• Adjacent product markets

• Selective M&A activity

0-12 months 12-24 months 24+ months

Diversified strategy provides growth resilience across both short- and long- term horizons

Financial Update

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• Continued positive execution on our growth strategy

• Revenue growth — ramp of high density modular test (HDMT) platform and related pans/kits; gain in market share and share-of-wallet at key customer

• Margin improvement — superior economies of scale as business ramps; improving mix as pans/kits revenue builds and new platform provides stronger margins.

4Q17 Financial Performance

$59.1m

+202%

$10.6m

+739%

Revenue PBT

vs. $19.6m year ago vs. $1.3m year ago

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• Consistent execution to strategy throughout 2017

• Declared final dividend of 6.5 cents payable in May 2018. Total dividend payout of 12 cents for FY2017. In line with dividend policy of paying dividend equivalent to 25% of PAT. (bonus shares will not be entitled to the dividend)

• Proposes 3 bonus shares for every 1 existing share to be issued in May 2018.

FY2017 Financial Performance

$221.6m

+216%

$36.8m

+505%

Revenue PBT

vs. $70.1m year ago vs. $6.1m year ago

at least

$255m

FY2017 Performance FY2018 Guidance

at least

$42m

Revenue PBT

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AEM has delivered 11 quarters of year-on-year revenue growth

YOY -10% 51% 58% 174% 32% 51% 70% 36% 245% 264% 173% 202%

Sequential 76% 23% 11% 15% -15% 40% 24% -8% 115% 48% -7% 2%

S$’M

Financial performance

AEM is delivering the third phase of its long-term strategy: building diversified global growth for the Company’s future.

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• Strong improvement in net income driven by strategic improvement in product mix, improvements in operating practices, additional engineering projects, positive return on product investments, and positive economies of scale as the business grows

Financial highlights – Key Performance Summary

(S$ ’000)

4Q2017 4Q2016

4Q17 v 4Q16

Change % 3Q2017

4Q17 v 3Q17

Change %

Revenue 59,048 19,552 202.0% 58,113 1.6%

Materials, consumables and inventory

changes, excluding stock obsolescence 37,190 12,661 193.7% 35,882 3.6%

Staff cost 7,974 4,016 98.6% 7,336 8.7%

Depreciation & amortisation expenses 228 186 22.6% 152 50.0%

Other operating expenses (exclude forex) 2,924 1,474 98.4% 2,337 25.1%

Profit before tax 10,619 1,266 738.8% 11,664 -9.0%

Profit after tax 9,713 837 1060.5% 9,427 3.0%

EBITDA 11,008 1,931 470.2% 11,795 -6.7%

Earnings per share (Singapore cents) 14.8 1.9 667.8% 14.3 3.4%

Profit after tax margin 16.4% 4.3% 12.2% 16.2% 1.4%

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Financial highlights – Key Performance Summary

(S$ ’000)

FY2017

Restated**

FY2016

FY17 v FY16

Change %

Revenue 221,622 70,123 216.0%

Materials, consumables and inventory

changes, excluding stock obsolescence 149,291 44,585 234.8%

Staff cost 25,338 13,562 86.8%

Depreciation & amortisation expenses 698 818 -14.7%

Other operating expenses (exclude forex) 8,201 4,980 64.7%

Profit before tax 36,836 6,091 504.8%

Profit after tax 31,489 4,657 576.2%

EBITDA 37,675 7,379 410.6%

Earnings per share (Singapore cents) 48.4 10.6 355.2%

Profit after tax margin 14.2% 6.6% 7.6%

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Financial performance

• Material margin decreased from 36.4% in FY2016 to 31.0% in FY2017 mainly due to higher machine/tool mix with higher Bill-of-Materials %.

• Material margins in2H17 was higher than 1H17 mainly due to better machine margins from cost reduction and favourable pricing, increased engineering service revenue for new projects and increased pans/kits revenue with better material margins.

Rev $46.8m

Rev $70.1m

Rev $42.1m

Rev $221.6m

Rev $63.2m

Rev $58.1m

Rev $59.1m

45.3%

36.4%

31.0%

26.9% 27.1%

38.3% 37.0%

10.4% 8.7%

16.1%

11.6% 15.5%

20.1% 18.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FY2015 FY2016 FY2017 1Q2017 2Q2017 3Q2017 4Q2017

Material margin

Profit before tax margin

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Financial performance

S$’

M

Period S$'M % of Total Sales S$'M % of Total Sales

1Q2017 23.2 55% 17.1 41%

2Q2017 34.9 56% 25.5 41%

3Q2017 23.3 40% 33.4 57%

4Q2017 22.8 39% 34.8 59%

FY2017 104.1 47% 110.7 50%

Tools / MachineKits, Spares & Services

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Financial highlights – Financial Position

• Increase in intangible assets and goodwill in 4Q2017 was mainly due to the acquisition of InspiRain Technologies

• Cash increased comparing 30 Sep and 31 Dec 2017 mainly due to S$12.3M operating profits and favourable working capital change of S$16.6M.

31-Dec-17 30-Sep-17 31-Dec-16

S$'000 S$'000 S$'000

Property, plant and equipment 3,623 2,225 2,226

Intangible assets and goodwill 3,449 48 65

Cash and cash equivalents 46,095 25,012 6,310

Current assets less current liabilites 47,173 43,828 23,691

Financial liabilities 7 26 85

Total equity 57,810 50,144 30,228

Net asset value per share (SG cents) 88.2 77.1 70.7

Net asset value per share (SG cents)

[adjusted for bonus issue]88.2 77.1 46.4

Financial position

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Financial – Guidance Vs Actual

Revenue

Guidance vs.

Actual

PBT

Guidance vs.

Actual

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Sales order book has grown consistently over the past 6 quarters

Growing Sales Order Book

76

100

115

53

80

89

20

40

60

80

100

120

140

160

180

200

30 Nov 17 / 30 Nov 16

20 Dec 17 / 20 Dec 16

31 Jan 18 / 31 Jan 17

S$'M

Date of record of sales orders

Sales Orders Received for 1H2018

1H2018 sales orders 1H2017 sales orders

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Rewarding shareholders • Declare final dividend of 6.5 cents payable on 31 May 18, bringing

to total dividend payout of 12 cents for FY2017 • Adopt dividend policy

• paying annual dividends, including interim dividends, of not less than 25% of profit after tax, excluding non-recurring, one-off and exceptional items

• subject to retained earnings, financial position, capital expenditure requirements, future expansion, investment plans and other relevant factors

• Proposed Bonus shares issue to be allotted in May 2018 • 3 bonus share for 1 existing shares • rationale:

• to increase the share capital base • to encourage trading liquidity of the Shares

Dividend and bonus issue

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Investment highlights

• Provider of highly differentiated high-end test handlers with proven, defensible competitive positioning

• Proven ability to service the most demanding large-scale manufacturing customers: microprocessors, solar, smart cards

• Strategic relationship with one of the world’s largest semiconductor companies for >15 years in developing and manufacturing customised test handlers and consumables

• Attractive, diversified revenue streams with long-term growth visibility and strong recurring revenue components

• Strong growth and profitability outlook backed by long-term order book

• Healthy financial position with low debt and capital expenditure requirement, generating positive cash from operation

Thank You

Investor relations contact :

Financial PR Pte Ltd

Romil SINGH / El LEE / Reyna Mei Tel: 6438 2990 / Fax: 6438 0064

E-mail: romil@financialpr.com.sg / el@financialpr.com.sg / reyna@financialpr.com.sg