Sam Engineering & Equipment (m) Bhd · MYX:SAM
Sam Engineering & Equipment (m) Bhd — Investor Presentation (July 2022)
29 slides from Sam Engineering & Equipment (m) Bhd's investor presentation, Jul 28, 2022
Slide 1: Meeting with CIMB
SAM Engineering & Equipment (M) Berhad Meeting with CIMB 28 July 2022 Proprietary information of SAM, all rights reserved Proprietary Information of SAM 1
Slide 2: Safe Harbour
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 are believed to be factual and c
Slide 3: Agenda
Agenda Overview of SAMEE Group The Transformation Financial Highlights The Path Forward Proprietary Information of SAM 3
Slide 4: Overview of SAMEE Group
Overview of SAMEE Group Proprietary Information of SAM 4
Slide 5: SAM Engineering and Equipment (M) Berhad (SAMEE)
SAM Engineering and Equipment (M) Berhad (“SAMEE”) Minority SAM Group of Headquartered in Shareholders Companies ~28% Singapore ~72% Public listed Co 100% 100% 100% 100% SAM Engrg & Eqpt SAM Aerospace SAM Aerospace SAM Aerospace SAM Aerospace Malaysia Malaysia China United Kingdom Germany Key facts
Slide 6: SAMEE Group
SAM Engineering and Equipment (M) Berhad (“SAMEE”) SAMEE Group FY22 Revenue : RM 1.15B Total workforce > 1,600 Proprietary Information of SAM 6
Slide 7: SAMEE Factory locations
SAMEE Factory locations Malaysia Thailand Singapore Special Process Equipment Integration Equipment Integration Engine Cases Prismatic Nacelle Beams Equipment Integration Engine Cases SAMEE Corporate New Factory Engine Cases Proprietary Information of SAM 7
Slide 8: Aerospace Products
Aerospace Products Nacelle Beam Engine Nacelle (Covering for engine) Engine Cases Proprietary Information of SAM 8
Slide 9: Aircraft Programs
Aircraft Programs Single Aisle Aircraft Twin Aisle Aircraft Regional Aircraft • A220 • A350 • Embraer E2 190/195 • A320ceo/neo • B777/X • Bombardier CRJ700/900 • B737 Max • B787 • Gulfstream G200 • C919 • Dassault Falcon 200EX • AVIC ARJ21 Proprietary Information of SAM 9
Slide 10: Equipment Business
Equipment Business Our Equipment business is largely generated from: Semiconductor Storage Devices • Front End • Solid State Drive • Back End • Hard Disk Drive Proprietary Information of SAM 10
Slide 11: Vertical Integration Model
Equipment Business Small/Med Machining PCBA/Wire Harness Vertical Integration Model Large Machining Integration, Assembly & Test Frame/Panel PRODUCTION FLOOR –Class 10k Clean Room Assembly OEM Component Proprietary Information of SAM 11
Slide 12: Our Growth Journey
Our Growth Journey Proprietary Information of SAM 12
Slide 13: Our Key Strategies
Our Key Strategies 1. Focus on our core competence • Complex 5-axis machining and System integration 2. Focus on high value-add and high entry barrier products 3. Build complementary businesses to mitigate cyclical risk 4. Achieve critical mass in each business Proprietary Information of SAM
Slide 14: Revenue Growth
Revenue Growth RM’ Mil Record Year: FY22 1,200 1,148 1,000 939 CAGR (2027 to 2022) : 14% 874 800 755 620 619 600 531 537 453 452 383 400 303 308 214 179 200 0 Note: FY2009 (15 months results due to change in Financial Year End) Proprietary Information of SAM 14
Slide 15: The Transformation Effects
The Transformation Effects RM’ Mil Achieving revenue growth with 1,148 1,200 Ventured Ventured into muted cyclical effect into Still recovering 1,000 aerospace Semicon 939 Impact of 22% from COVID-19 Frontend COVID-19 800 Bulk up Divested aerospace 452 48% 600 Spike due to non-core low Thai Flood VA
Slide 16: The Transformation
The Transformation A more diversified engineering group with high value products and solutions FY2007 FY2015 FY2020 5% 15% 11% 2% 6% 25%* 25% 48% 73% 22% 68% RM 179 Mil RM 452 Mil RM 939 Mil Back-end Semicon Data Storage Aerospace Front-end Semicon Others Proprietary Information of SAM 16
Slide 17: The Transformation
The Transformation Investing for Growth Major Machines/Equipment Revenue (RM’Mil) CAPEX (RM’Mil) 1,200 300 1,000 250 Milling machines & FMS line for Beams Machines for Big Machined 800 200 Parts 600 150 400 100 Machines for Prismatic Parts Milling machines & FMS line for small/medium machined 200
Slide 18: Financial Highlights
Financial Highlights Proprietary Information of SAM 18
Slide 19: Financial Highlights
Financial Highlights Revenue Profit Before Tax RM’ mil CAGR = 13% RM’ mil CAGR = 7% 1,147.6 100.5 94.8 99.7 81.8 938.7 873.7 72.6 755.0 49.2 62.3 619.0 489.1 895.8 33.3 104.0 112.1 295.4 248.4 701.8 39.3 45.6 37.3 459.6 449.6 370.6 -11.6 251.8 -22.2 171.9 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY
Slide 20: Financial Highlights
Financial Highlights Profit For The Year/Period Basic Earnings Per Share RM’ mil Sen 78.5 79.8 14.52 14.76 75.5 13.94 62.9 12.02 59.7 11.04 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 20 Proprietary Information of SAM
Slide 21: Financial Highlights
Financial Highlights Return On Equity Net Gearing % 15.6% 0.26 13.7% 13.9% 11.4% 9.7% 0.14 0.12 0.11 Net Cash FY2018 FY2019 FY2020 FY2021 FY2022 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 21 Proprietary Information of SAM
Slide 22: The Path Forward
The Path Forward Proprietary Information of SAM 22
Slide 23: Air Travel Recovery
Air Travel Recovery Air travel gradually recovering Air Passenger Market - 2022 vs. 2019 (RPKs) 120% 100% 100% 100% 100% 80% 77% 64% 69% 60% 40% 20% 0% Domestic International Total May-19 May-22 May 2022 Proprietary Information of SAM 23
Slide 24: Recovery of Commercial Aerospace
Recovery of Commercial Aerospace Projected Aircraft Production Rate (Source: Forecast International, July 2022) Parameters Year Year Airbus Boeing Total 2020 2021 2500 Total Deliveries 723 951 2000 1885 1966 2007 2009 2036 1956 1970 1740 Total Net Orders -211 986 1606 1532 1500 Backlog as of Decembe
Slide 25: Positive Semicon Outlook
Positive Semicon Outlook IC Insights (10 Feb 2022) • Total semiconductor sales in 2022 are forecast to grow 11% and reach a record- high $680.6 billion after worldwide revenues climbed 25% in the 2021 • 7.1% CAGR expected from 2021 to 2026 IC Insights (1 June 2022) • Despite rampant inflation, soari
Slide 26: Positive Semicon Outlook
Positive Semicon Outlook Global sales of total semiconductor manufacturing equipment by OEMs forecasted to • Reach a record $117.5 billion in 2022 (up 14.7% from 2021), and • increase to $120.8 billion in 2023 Proprietary Information of SAM 26
Slide 27: When The Stars align
When The 2 Stars align …. 2 complementary pillars: Aerospace and Equipment Aerospace Equipment 500 1,000 450 Gradual recovery 900 from COVID-19 400 800 CAGR (FY18 to FY21) : 38% impact 350 700 300 600 RM’Mil 250 500 200 400 150 300 100 200 50 100 0 0 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019
Slide 28: Investing Ahead to Capture Growth
Investing Ahead to Capture Growth Total space > 180,000 sqft • Phase 1 : Mass production in Oct 2021 Thailand • Phase 2 : Targeting mass production in 2023 Full suite of manufacturing capabilities • Precision Machining • Sheet Metal Fabrication • Special Processes Mill-Turn Machines Milling Machine
Slide 29: Thank You
Thank You Proprietary Information of SAM 29
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