Sam Engineering & Equipment (m) Bhd · MYX:SAM
Sam Engineering & Equipment (m) Bhd — Corporate Update (August 2023)
33 slides from Sam Engineering & Equipment (m) Bhd's corporate update, Aug 23, 2023
Slide 1: Business Update 23rd August 2023
Business Update 23rd August 2023 Safe Harbour The information contained in this presentation reflect the views and opinions of the management of SAM Engineering & Equipment (M) Berhad (“SAMEE”) with regard to the sources referenced and is part of the group business update. All sources of information
Slide 2: SAMEE at a glance
SAMEE at a glance Proprietary Information of SAM 2
Slide 3: Our Manufacturing Sites
ayutthaya chon buri Our Manufacturing Sites Proprietary Information of SAM 3
Slide 4: Vertical Integration Model
Equipment Business Small/Med Machining PCBA/Wire Harness Vertical Integration Model Large Machining Integration, Assembly & Test Frame/Panel PRODUCTION FLOOR – Class 1k & 10k Cleanroom Assembly OEM Component Proprietary Information of SAM 4
Slide 5: Proprietary Information of SAM
Proprietary Information of SAM 5
Slide 6: Readiness for Mass Production – Thailand, Ayutthaya
Readiness for Mass Production – Thailand, Ayutthaya Proprietary Information of SAM 6
Slide 7: Readiness for Mass Production – Thailand, Chon Buri
Readiness for Mass Production – Thailand, Chon Buri Proprietary Information of SAM 7
Slide 8: In-Premise Free Trade Zone at Chon Buri
In-Premise Free Trade Zone at Chon Buri Customs signage Customs office Cargo truck weighing scale Proprietary Information of SAM 8
Slide 9: Financial Highlights
Financial Highlights Proprietary Information of SAM 9
Slide 10: Revenue Growth Trend
Revenue Growth Trend RM’ Mil 1,445 1,400 1,200 CAGR (2007 to 2023) : 15% 1,148 1,000 939 COVID 874 800 755 620 619 600 531 537 453 452 383 400 303 308 179 214 200 0 FY2007 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Revenue Note: FY2009 (1
Slide 11: Financial Highlights
Financial Highlights Revenue Profit Before Tax RM’ mil CAGR = 8% RM’ mil CAGR = 1% 1,445.4 115.0 100.5 81.8 94.8 99.7 1,147.6 938.7 873.7 49.2 62.3 755.0 1,116.3 112.1 116.9 104.0 489.1 895.8 295.4 25.1 701.8 45.6 307.9 37.4 16.6 8.5 459.6 -1.9 449.6 211.9 329.1 -11.6 251.8 -22.2 171.9 96.0 FY2019 F
Slide 12: Financial Highlights
Financial Highlights Profit For The Year/Period Basic Earnings Per Share RM’ mil Sen Annualised 15.16 88.8 16.41 78.5 79.8 14.52 14.76 75.5 13.94 59.7 11.04 20.5 3.79 FY2019 FY2020 FY2021 FY2022 FY2023 YTD Q1 FY2019 FY2020 FY2021 FY2022 FY2023 YTD Q1 FY2024 FY2024 12 Proprietary Information of SAM
Slide 13: Financial Highlights
Financial Highlights Return On Equity Net Gearing 0.56 0.55 15.6% 13.9% 11.4% 11.8% Annualised 9.8% 9.7% 0.26 0.14 2.5% 0.11 0.12 FY2019 FY2020 FY2021 FY2022 FY2023 YTD Q1 FY2024 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Jun-23 13 Proprietary Information of SAM
Slide 14: What is happening around the world?
What is happening around the world? Proprietary Information of SAM 14
Slide 15: Global Growth Rate
Global Growth Rate Projected to fall from an estimated 3.5% in 2022 to 3.0% in 2023 & 2024 • Inflation remains high and continues to erode household purchasing power • Global headline inflation is expected to fall from 8.7% in 2022 to 6.8% in 2023 and 5.2% in 2024 • Underlying (core) inflation is pr
Slide 16: Dark Clouds Ahead
Dark Clouds Ahead Proprietary Information of SAM
Slide 17: External Forces that are shaping the Global Outlook
External Forces that are shaping the Global Outlook Proprietary Information of SAM 17
Slide 18: Air Travel Recovery
Air Travel Recovery ASKs compared to 2019 levels North America US Europe Asia Pacific 99.5% 102.3% 92.8% 69.6% China 126.5% Middle East Intl. 91.7% Intl. Intl. Dom. Japan 100.9% Dom. Intl. India 100.9% World Latin America Brazil Africa Dom. 112.4% 105.7% 93.0% 91.1% Australia 100% 91.6% 102.4% 83.7%
Slide 19: Unbalanced Single and Twin Aisle Aircraft Growth Rates
Unbalanced Single and Twin Aisle Aircraft Growth Rates Airbus A330neo, A350XWB Boeing B777 B787 Airbus A220 A320neo Boeing B737Max Proprietary Information of SAM 19
Slide 20: Commercial Aerospace is recovering
Commercial Aerospace is recovering Projected Aircraft Production Rate (Source: Forecast International, July 2023) 2500 1,997 1,993 2,016 1,967 2,027 2000 1,937 1,928 1,742 1,606 1,513 1500 1,243 1,254 1,141 1000 951 532 723 500 0 2018 2019 2020 2021 2022 2023F 2024F 2025F 2026F 2027F 2028F 2029F 203
Slide 21: Strong Aircraft Order Backlogs
Strong Aircraft Order Backlogs 2022 2023 2022 2023 Full Year (YTD June) Full Year (YTD June) Deliveries 661 381 Deliveries 480 309 Backlog 7,329 7,959 Backlog 5,,430 5,588 Years of backlog Years of backlog 6.7 6.9 9.1 9.9 (2018 production rate) (2018 production rate) Deliveries are recovering Net Ai
Slide 22: Strong Demand Projections in the next 2 Decades
Strong Demand Projections in the next 2 Decades Both Airbus & Boeing predicted that >40,000 new aircraft are need from 2023 to 2042 Airbus (2023 to 2042) Forecast Boeing (2023 to 2042) Forecast Source: Airbus Global Market Forecast 2023 Source: Boeing Commercial Market Outlook 2023 Proprietary Infor
Slide 23: Semicon Equipment Outlook
Semicon Equipment Outlook “Despite current headwinds, the semiconductor equipment market is set to see a strong rebound in 2024 after an adjustment in 2023 following a historic multi- year run,” said Ajit Manocha, SEMI president and CEO. “Projections for robust long-term growth driven by high- perfo
Slide 24: Drivers for Demand
Drivers for Demand Proprietary Information of SAM 24
Slide 25: New Fabs under Construction
New Fabs under Construction Proprietary Information of SAM 25
Slide 26: Increase in Wafer Capacity
Increase in Wafer Capacity Proprietary Information of SAM 26
Slide 27: Semicon Equipment Outlook
Semicon Equipment Outlook SEMI (11 July 2023) Global sales of Semiconductor equipment • Hit record high of USD 107.4B in 2022 • Forecasted to dip to USD 87.4B in 2023 before recovering to USD99.4B in 2024 2024 recovery driven by both the front-end Dip in 2023 and back-end segments before recovery US
Slide 28: Our Growth Strategies
Our Growth Strategies Proprietary Information of SAM 28
Slide 29: Re-Balance Business Mix
Re-Balance Business Mix COVID-19 Impact Travel Gradual Recovery of Travel FY2020 FY2023 1Q FY2024 (Pre-COVID) 23% 31% RM939m 48% RM1.45b RM308m 52% 69% 77% Aerospace Equipment Aerospace Equipment Aerospace Equipment Explosive Growth for Equipment Softening of Semicon demand Proprietary Information o
Slide 30: Develop 3rd Revenue Stream
Develop 3rd Revenue Stream Leverage on our current manufacturing capabilities examples Proprietary Information of SAM 3
Slide 31: Next Major Milestone
Next Major Milestone Forecast 2x in 5 years RM’ Mil Double Revenue in 5 years 1600 1445 1400 1200 1148 2x in 6 years 1000 939 COVID-19 2x in 5 years 874 800 755 Thailand Flood 620 619 600 531 537 453 452 383 400 303 308 214 179 200 0 FY2007 FY2009* FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY
Slide 32: Summary
Summary 1. Our Thailand factories are ready when semiconductor equipment business recovers – 3 out of 4 factories have been qualified by customers 2. Positioning our Thailand factories for aerospace product manufacturing – Aerospace AS9100 certification expected by September 2023 – Marketing for Mad
Slide 33: Thank You
Thank You Proprietary Information of SAM 33
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