Aem Holdings Ltd. · SGX:AWX
Aem — Shareholder Meeting (April 2019)
38 slides from Aem's shareholder meeting presentation, Apr 29, 2019
Slide 1: Presentation to Shareholders
Presentation to Shareholders AEM Holdings Ltd | AGM 29 April 2019
Slide 2: Disclaimer
Disclaimer 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 perio
Slide 3: Agenda
Agenda • 2018 Financial Review • Overview of our Strategic Direction • Strategic Business Units Updates • AGM Resolutions 3
Slide 4: Financial Review
Financial Review 4
Slide 5: Financial Highlights for FY2018
Financial Highlights for FY2018 FY 2018 guidance delivered Revenue growth supported by increased deliveries of test handlers and pans/kits. S$’M Revenue (Full Year) S$’M Operating PBT & Margin (Full Year) 280.0 44.0 19.0% 42.0 42.6 18.0% 260.0 17.2% 262.3 40.0 17.0% 16.2% 240.0 38.0 16.0% 38.2 220
Slide 6: Cash and Cash Flow
Cash and Cash Flow S$'M Cash From Operations (before working capital changes) 14.0 12.4 Cash Generated (FY18) S$'M 11.7 12.0 10.8 Cash from operations (before 10.0 39.4 8.8 8.1 working capital changes) 8.0 6.0 4.0 Cash Paid (FY18) S$'M 2.0 M&A 8.3 - Dividend 8.4 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 Sh
Slide 7: Our Journey Continues
Our Journey Continues 7
Slide 8: FY 2018 delivered record financial performance
FY 2018 delivered record financial performance because we invested many years ago to develop technology and execution capabilities • Record FY2018 financial performance achieving revenue of S$262.3M and operating PBT of S$42.6M driven mainly by sales of test handlers and its related pans/kits • Core
Slide 9: AEM's transformation into a product company started in 2011
AEM’s transformation into a product company started in 2011 and continues... 2017 AEM acquired 2015 InspiRain Lab units of HDMT 2018 2012 AEM acquired delivered • SPIL invests into Afore Oy & IRIS substrates business 2016 • AEM taken off SGX HDMT test handlers Watchlist ramp 2014 2002 • Exit substra
Slide 10: Transformation into a Global Leader in the Test and Inspection Space
Transformation into a Global Leader in the Test and Inspection Space Phase III 2018 and beyond Phase II Apply core competencies 2016 - 2018 to grow Refine the vision and develop core Phase I competencies - Expand opportunities 2011 - 2016 with key customers of Re-build the original and acquired foun
Slide 11: How are we pulling our acquisitions together?
How are we pulling our acquisitions together? To enable our customers to deliver parts per billion assurance in an interconnected world with smarter testing The Interconnected 5G World IoT & AI, Cloud & Electric Mobile/ 5G Sensors Datacenters Vehicles/ AD Device & Infra Afore – MEMS, Wafer Level Cry
Slide 12: Grow Core Competencies and win new business
Grow Core Competencies and win new business 12
Slide 13: Outlook
Outlook 13
Slide 14: Focus on commercial development for Handler extensions, TMS and MEMS
Focus on commercial development for Handler extensions, TMS and MEMS Current generation of test handlers expected to hit maturity in 2019. Earnings will be driven by new handler platforms, consumables, new account programs, and new business units from 2019 and beyond 2017 2018 2019 • Strong growth r
Slide 15: SLTi
SLTi 15
Slide 16: Necessity in going into System Level Test
Necessity in going into System Level Test IC testing is heading towards an inflection point ! Mission Critical, it demands parts per billion System Level The world requirement in quality of 5G Testing o Safely related o Impacting life and life experience Connected, Mobile Complex device, multiple fe
Slide 17: Complex SiP devices will require new test paradigms
Complex SiP devices will require new test paradigms Future Test 1 (Memory) Test 2 (PMIC) Test 3 (MPU) Test Flow? Test 4 (All) SHIP 17
Slide 18: Automating the entire back-end test process
AEM’s equipment automated the entire Back-end Test process, and transformed the Cost-of-Test and Time-to-Market performance for Customer THE BIG DEAL - Automating the entire back-end test process eliminates re-correlation and enables big data analytics to Back-end Test process optimize test flows fo
Slide 19: AEM's solutions to system level testing
AEM’s solutions to system level testing o Been supporting customized System Level Test (SLT) solutions since 2001, with more than 700 units deployed globally. o With industry needing to get into SLT, AEM offers its customized solutions with its AMPS platform, which is, Modular and configurable wit
Slide 20: TMS
TMS 20
Slide 21: First Full Year at AEM
First Full Year at AEM TestPro, multifunction cable tester, launched in the market •Several awards received, showing industry’s acknowledgement of our new tester Extended international presence and brand building •New senior staff members in the USA, China, and Singapore add to our marketing strengt
Slide 22: TestPro CV100 Multifunction cable tester
TestPro CV100 Multifunction cable tester Handheld RF tester for certifying network cables Fastest test speed and widest frequency range in the industry Most versatile tester on the market for testing various copper and fiber optic cables 22
Slide 23: MMVNA for Manufacturing Test of Automotive Cables
MMVNA for Manufacturing Test of Automotive Cables RF test solution specifically for manufacturing testing Supports multi-port and high volume testing of RF components 23
Slide 24: WideOptix fiber test solution
WideOptix fiber test solution Fast, accurate test of multimode fiber optic cable bandwidth • PASS/FAIL result for suitability of fiber in 100G links 24
Slide 25: Huawei Engagement for WideOptix
Huawei Engagement for WideOptix Multimode High bandwidth of 100Gbps to enable high data rate and low fiber for front- latency for 5G devices in dense areas haul Lower cost compared to singlemode fiber Huawei’s Comprehensive bandwidth testing of cables required to Challenge ensure 5G quality No porta
Slide 26: Served Markets By AEM-TMS
Served Markets By AEM-TMS Premise Copper and fiber cable test Networks/ 2020 - 150M TAM (USD) Digital 2023 – 175M Automated Testing Infrastructure 2020: 535M Copper and fiber cable test Data 2023: 1B Copper connector and cord test automation 2020 - 50M Centers 2020 - 5M 2023 – 75M 2023 – 50M Exploit
Slide 27: Afore Oy
AFORE OY AEM AGM 2019 AFORE
Slide 28: 1st Year with AEM
1st YEAR WITH AEM ¢ Lot of positive effect: o Beinga part of bigger enterprise has increased Afore’s credibility -> New customers and opportunities o Afore benefits from AEM’s global field service, e.g. China, USA o Shared Marketing and Sales activities o CommonR8&D activities o Financial back-up AF
Slide 29: MEMS Market
MEMS MARKET AUTOMOTIVE: CONSUMER MARKET: ¢ Trade war and new emission ¢ IOT world demands a huge amount of standards has temporarily slowed small sized and economical MEMS down car sales. sensors ¢ Still, trend shows > 10% GAGR MEMS market for industrial loT | MEMS market for industrial loT by relev
Slide 30: MEMS is moving towards WLP
MEMS is moving towards WLP Growing signs the big MEMS players are moving towards advanced packaging (wafer level packaging, WLP, WL-CSP, CSP) Reasons: 1) Cost pressure, 2) smaller size of sensor At the moment concerns consumer MEMS Automotive MEMS may follow with FO-WLP Most of Afore’s new customer
Slide 31: Why WLP MEMS is important to Afore?
WHY WLP MEMS IS IMPORTANT TO AFORE? ¢ Afore is forerunner in wafer level final AIOLOS testing of MEMS. ¢« Afore technology brings tremendous savings in cost of test compared to traditional testing technologies 26 KRONOS O8 OO SIFORE 31 (AN AEM COMPANY ¢ Afore has platforms ready for both Inertial (m
Slide 32: New Market - Quantum Computing
NEW MARKET —- QUANTUM COMPUTING Part of connectivity of the |OT world and big data handling there is a demand for more powerful computers Quantum computing technology is stepping out of the labs after long development phase “The race” has begun Xr <S) Source:https Jthenextweb.com/contributors/2019/0
Slide 33: Quantum Computing and Afore
QUANTUM COMPUTING AND AFORE 2018 Afore in co-operation with another Finnish company, Bluefors, stepped into agreement with Intel to develop Cryogenic prober The system is first which enables testing of whole 300 mm wafers in temperatures close to absolute zero. Shifts the testing from single-chip la
Slide 34: R&D - Keeping Afore in Blue Ocean markets
R&D — Keeping Afore in Blue Ocean markets ¢ R&Dhas a big role in Afore’s growth i strategy is ¢ New features to current test handler platforms ¢ Expansionin new growing MEMS area: Photonics testing in wafer level. Afore has received remarkable funding from EU and aS Finnish Government ; - -> Afore i
Slide 35: Novoflex
Novoflex 35
Slide 36: NovoFlex Update
NovoFlex Update sAiLTM Customized Cards – unique logos, more secure, simpler manufacturing process, existing equipment. • Letter of Authorisation with MasterCard and VISA • Protected by global patents • Securing pilots with several banks globally with backing from MasterCard • Growing ecosystem of c
Slide 37: Summary
Summary Proven ability to innovate and deliver solutions on the global stage Strategic relationship with one of the world’s largest semiconductor companies for >18 years in developing and manufacturing leading –edge test handlers and consumables Strong financial position Low debt and capital expendi
Slide 38: Thank You
Thank You Investor relations contact : Financial PR Pte Ltd Romil SINGH / Reyna Mei Tel: 6438 2990 / Fax: 6438 0064 E-mail: romil@financialpr.com.sg / reyna@financialpr.com.sg