Presentation to Potential Investors 20170206
Transcript of Presentation to Potential Investors 20170206
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Investor Update
Feb 2017
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 SAM Engineering & Equipment
SAM Group
SAM Suzhou SAM Engrg & Equipment
Aviatron
China
Malaysia
Malaysia Singapore Thailand
Germany
Germany
Germany
Germany
Minority Shareholders
29.87% As at 3 Aug 2016
Europe Operations
Asia Operations
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 SAM Engineering & Equipment Companies
SAM Engineering & Equipment manufacturing sites
SAM Aviatron manufacturing site
Bayan Lepas
Bukit Minyak
�
Singapore
Thailand–Ayu$aya
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Aerospace Product : Engine Case
Fan
Compressor&
Combustor Turbine
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Penang : Fan Cases
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CFM56-7EnginefortheBoeing737Aircra8
v Highlyprecisemeasurements
v Hightolerancetotemperatureandpressurerequirements
v Cri:calfailurecomponentFanCasing
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Singapore : Compressor & Combustor Cases
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Aircraft Applications 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
ENGINE CASES
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Singapore : Engine Case (New)
FanCases
Compressor&CombustorCases
Today’sCapability
TurbineCases
HotSec:on
NewproductforA320neoAircraD
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Aerospace Product : Aerostructures
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Penang : Prismatic Parts (New)
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Airbus 350, Boeing 787 & Bombardier C-Series Aircraft
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Aerospace Product : Nacelle Beam (New)
NacelleBeam(Latch)
NacelleBeam(Hinge)
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Airbus 320neo
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Our Products on All Major Aircraft
Airbus Aircraft Family
Boeing Aircraft Family
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Global Aerospace Customers
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Huge Aerospace Business Order Book
Projected Contractual Backlogs > RM 3.5 billions
NeedanotherRM100milinvestmenttomeetcustomerdemand
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Characteristics of Aerospace Business
1. Highentrybarrier
• Longgesta:onperiod
• Heavycapitalinvestment
• Stringentqualityrequirements
• Needstrongcashflow
2. Longtermcontracts
3. Rela:velysmallpoolofcompe:torsfornicheproducts
4. Rela:velysteadydemand
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Resilient to external shocks
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Market Outlook for Aircraft Industry
Strong production rate driven by Airbus 320 and
Boeing 737 Aircraft Families
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017
Penang : Equipment Business
Focus on High Value Equipment Integration
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017
Penang : Equipment Business
Focus on Semicon Front End Products
• Large format precision machining experience
Wafer Fab Chamber Assembly
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017
Penang : Front End Equipment Business (New)
Wafer Processing Equipment
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017
Global Equipment Customers
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 The Transformation
RM0mil
RM100mil
RM200mil
RM300mil
RM400mil
RM500mil
RM600mil
RM700mil
FY2008/09 FY2009/10 FY2010/11 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16
Equipment Aerospace
Injecting Aerospace Business to mitigate revenue volatility
54%
46%
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 The Transformation
75%
25%
FY2009RM158m
Back-endSemiconDataStorageAerospaceFront-endSemicon
5%
25%
54%
9%
FY2016RM620m
More diversified products that are >90% export
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Historical Financial Data
0100200300400500600700RM’m
-10
0
10
20
30
40
50
60
70RM’m
-10
-5
0
5
10
15
20%
ROE
PAT Revenue
RM’m
Capex
0
5
10
15
20
25
30
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Our Vision – The Crossover Project
FY2008/09 FY2009/10 FY2010/11 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2019/20
RM383 mil RM453 mil RM452 mil
RM1 billion
RM531 mil
RM308 mil RM303 mil
RM158 mil
Non-Aerospace Business Aerospace Business
20%
80%
Organic
Acquisi:onRM620 mil
Growth through expansion and opportunistic Acquisition with
Aerospace business as the key driver
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SAM Engineering & Equipment Update
Strictly Private & Confidential Feb 2017 Disclaimer
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ThisPresenta:onisbeingpresentedtotherecipientsonaprivateandconfiden:albasisfortheirinforma:on.No part of this document may be reproduced or copied in any form or by any means without prior wri_enpermission/consentofSAMEngineering&Equipment(M)BerhadorSingaporeAerospaceManufacturingPteLtd.All the informa:on inallpubliclyavailablesourcesareassumedtobeaccurateandreasonable.Accordingly, theinforma:on has not been independently verified. Furthermore, certain forward looking statements such asearningsguidanceandprospec:vevalua:ons,amongstothers,areindica:veandforpurposesofillustra:oninthisdiscussion. Nowarrantyorrepresenta:on,expressorimplied,ismadewithrespecttotheinforma:onsetoutinthisPresenta:on,norwillSAMEngineering&Equipment(M)BerhadorSingaporeAerospaceManufacturingPteLtdberesponsiblefortheconsequenceofrelianceonanyinforma:on,opinionorstatementsetoutherein.