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SAM Engineering & Equipment(M) Berhad

Investor Briefing21 May 2019

Kuala Lumpur

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Introduction

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Our Business

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Our Facilities

Aerospace & Equipment (Small Format Machining)

Penang, Malaysia

Aerospace(Casings)

Penang, Malaysia

Aerospace(Aerostructures)Penang, Malaysia

Aerospace(Casings)

Jurong & Tuas, Singapore

Equipment(Equipment Integration)

Penang, Malaysia

Equipment(Metal Fabrication & Special Process)

Penang, Malaysia

Aerospace & Equipment(Special Process)Penang, Malaysia

Equipment(Assembly of Equipment & Machining)

Ayutthaya, Thaliland

WE ARE IN PENANG, SINGAPORE & THAILAND

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Products & Services

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SAM AerospaceEngine Case • Airbus - A320, A320neo, A330, A380

• Boeing - B737NG/Max, B747-8, B767, B777, B787• Embraer - 170/175, 190/195• Bombardier - CRJ 700/900, Learjet 60• Dassault - Falcon 200EX• Cessna - Citation Jet, Envoy• Gulfstream 200• Raytheon - Horizon• AVIC - ARJ21

Aircraft Applications

• Nickel-based alloys• Titanium• Stainless steel

GENX High Pressure Combustor Case

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SAM Aerospace

Engine Case- Aluminum

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SAM Aerospace

Beams - A320neo & A350

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SAM Aerospace

Prismatic Parts

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SAM Equipment

Contract Manufacturing Products

Advanced Packaging

Wire Bonding Machine X-ray PCBA Inspection JEDEC Tray Test Handler HDD Tester Equipment

Vacuum Chamber Assembly Lithography Wafer Inspection

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SAM Equipment

Contract Manufacturing Services

PRODUCTION FLOOR – CLEANROOM ASSEMBLY

Small/Medium/Large Format Machining

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SAM Equipment

Metal Fabrication

CNC Machining

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SAM AerospaceBusiness Update

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FMS lines running at full capacity delivering > 1,000 beams average per year.

SAM Aerospace

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10 machines in-house and 4 more to be commissioned by Oct 2019.

SAM AerospaceNew Equipment at Singapore Tuas Facility

- Engine casings for B737max and A320neo

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Sensing Feedback

SAM Aerospace

Machining DeburringNon Destructive Test MeasurementCoating

Automation and Data transformation towards Industry 4.0

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SAM EquipmentBusiness Update

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Semicon Equipment• Pushing on larger market

share and higher level integration.• Winning new projects.

Storage Device Equipment• Enterprise Data Management and Big

Data Generation have driven bigger customer orders.

• Gaining more traction into the Semicon sector.

SAM Equipment

Technology and Equipment• Customer’s approval granted to run mass production for Semiconductor Front

End Business and complex parts on the new machines (3 units of 5 axismachines and 1 unit of turn-mill 9 axis).

SAM Equipment

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Market OutlookAerospace

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Source: Airbus Global Market Forecast 2018

• Air traffic double every 15 years• 4.4% growth p.a from 2017~ 2032

Long Term Air Traffic Growth

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Source: Airbus Global Market Forecast 2018

• Growth in passenger and freight aircraft• New generation of aircraft with better fuel efficiency, lower noise and

longer range

37,400 aircraft over next 20 years

Traffic Growth Drives Demand of New Aircraft

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Healthy order backlog for Airbus and Boeing

2018 Deliveries

806

2018 Deliveries

800 7,357

5,893

(9.2 years)

(7.3 years)

A220 471

A320 5,908

A330 290

A350 633

A380 55

737* 4,703

747-8 22

767 103

777 441

787 624

Source: Airbus & Boeing March 2019*Impact of grounding of B737max and monthly production rate to 42/month is still uncertain

Short to Mid Term Outlook

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Market OutlookEquipment

drives demand in storage devices

• Smart devices (home)• 5G Communications• Automotive & electric vehicle• IoT (Internet of Things)• Artificial Intelligence

Cloud Computing

Semiconductor Demand Drivers

Long Term Growth DriversEquipment business key industries: Storage Devices and Semiconductor

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

2019 2020

$53bil

$67bil$65bil

Forecast

-14% in 2019+27% in 2020

Semiconductor Equipment Market

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Financial Highlights

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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%)

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Revenue By Segment

60%

40%

FY2018

Aerospace Equipment

61%

39%

FY2019

RM619mil

RM755mil

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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%

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Capital Investments

25m

83m

93m

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

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Q & A

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Thank You