Investor Update
SAM Engineering & Equipment Minority Shareholders SAM Group 29.87% As at 3 Aug 2016 SAM Engrg & Equipment Malaysia Singapore Thailand Asia Operations SAM Suzhou China Aviatron Malaysia Europe Operations Germany Germany Germany Germany
SAM Engineering & Equipment Companies Thailand Ayu$aya SAM Aviatron manufacturing site SAM Engineering & Equipment manufacturing sites Bayan Lepas Bukit Minyak Singapore
Aerospace Product : Engine Case Fan Compressor & Combustor Turbine
Penang : Fan Cases CFM56-7 Engine for the Boeing 737 Aircra8 v Highly precise measurements v High tolerance to temperature and pressure requirements v Cri:cal failure component Fan Casing 5
Singapore : Compressor & Combustor Cases Aircraft Applications ENGINE CASES Airbus A320ceo, A320neo, A330, A340, A380 Boeing B737, B737Max, B747-8, B767, B777, B787 Embraer 170/175, 190/195 Bombardier CRJ 700/900, Learjet 60 Dassault Falcon 200EX Cessna Citation Jet, Envoy Gulfstream G200 AVIC ARJ21 Comac 919 6
Singapore : Engine Case (New) Today s Capability Fan Cases Compressor & Combustor Cases Turbine Cases New product for A320neo AircraD Hot Sec:on
Aerospace Product : Aerostructures
Penang : Prismatic Parts (New) Airbus 350, Boeing 787 & Bombardier C-Series Aircraft 9
Aerospace Product : Nacelle Beam (New) Nacelle Beam (Hinge) Airbus 320neo Nacelle Beam (Latch) 10
Our Products on All Major Aircraft Boeing Aircraft Family Airbus Aircraft Family
Global Aerospace Customers
Huge Aerospace Business Order Book Projected Contractual Backlogs > RM 3.5 billions Need another RM100 mil investment to meet customer demand
Characteristics of Aerospace Business 1. High entry barrier Long gesta:on period Heavy capital investment Stringent quality requirements Need strong cash flow 2. Long term contracts 3. Rela:vely small pool of compe:tors for niche products 4. Rela:vely steady demand
Resilient to external shocks
Market Outlook for Aircraft Industry Strong production rate driven by Airbus 320 and Boeing 737 Aircraft Families
Penang : Equipment Business Focus on High Value Equipment Integration
Penang : Equipment Business Focus on Semicon Front End Products Large format precision machining experience Wafer Fab Chamber Assembly
Penang : Front End Equipment Business (New) Wafer Processing Equipment
Global Equipment Customers
The Transformation Injecting Aerospace Business to mitigate revenue volatility RM700 mil RM600 mil Equipment Aerospace RM500 mil 54% RM400 mil RM300 mil RM200 mil 46% RM100 mil RM0 mil FY2008/09 FY2009/10 FY2010/11 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16
The Transformation More diversified products that are >90% export FY2009 RM158m FY 2016 RM620m 9% 5% 25% 25% 75% 54% Back-end Semicon Data Storage Aerospace Front-end Semicon
Historical Financial Data RM m 700 600 500 400 300 200 100 0 Revenue RM m 70 60 50 40 30 20 10 0 PAT -10 RM m 30 25 Capex % 20 15 ROE 20 15 10 10 5 5 0 0-5 -10
Our Vision The Crossover Project Growth through expansion and opportunistic Acquisition with Aerospace business as the key driver RM1 billion Organic 20% Acquisi:on RM620 mil RM308 mil RM303 mil RM531 mil RM453 mil RM452 mil RM383 mil 80% RM158 mil FY2008/09 FY2009/10 FY2010/11 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16 Aerospace Business Non-Aerospace Business FY2019/20
Disclaimer This Presenta:on is being presented to the recipients on a private and confiden:al basis for their informa:on. No part of this document may be reproduced or copied in any form or by any means without prior wri_en permission/consent of SAM Engineering & Equipment (M) Berhad or Singapore Aerospace Manufacturing Pte Ltd. All the informa:on in all publicly available sources are assumed to be accurate and reasonable. Accordingly, the informa:on has not been independently verified. Furthermore, certain forward looking statements such as earnings guidance and prospec:ve valua:ons, amongst others, are indica:ve and for purposes of illustra:on in this discussion. No warranty or representa:on, express or implied, is made with respect to the informa:on set out in this Presenta:on, nor will SAM Engineering & Equipment (M) Berhad or Singapore Aerospace Manufacturing Pte Ltd be responsible for the consequence of reliance on any informa:on, opinion or statement set out herein. 25