Sam Engineering & Equipment (m) Bhd · MYX:SAM
Sam Engineering & Equipment (m) Bhd — Investor Presentation (September 2020)
23 slides from Sam Engineering & Equipment (m) Bhd's investor presentation, Sep 23, 2020
Slide 1: Investor Briefing
SAM Engineering & Equipment (M) Berhad Investor Briefing 23 September 2020 Proprietary information of SAM, all rights reserved Proprietary Information of SAM 1
Slide 2: Disclaimers
Disclaimers 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 cu
Slide 3: Our Business
Our Business FY2020 Revenue ( Business Segment ) RM939mil 48% 52% Proprietary Information of SAM 3
Slide 4: Our Facilities
Our Facilities Aerospace & Equipment Equipment Equipment Aerospace & Equipment (Small Format Machining) (Metal Fabrication & Special Process) (Equipment Integration) (Special Process) Penang, Malaysia Penang, Malaysia Penang, Malaysia Penang, Malaysia Aerospace (Aerostructures) We are in Malaysia (P
Slide 5: Highlights of FY2020 Financials
Highlights of FY2020 Financials 5-year CAGR : 10.9% 5-year CAGR : 6.1% Equity attributable to owners of the Company : RM 610 mil Net Debt to Equity ratio : 0.1 Proprietary Information of SAM 5
Slide 6: Highlights of 1Q FY2021 Financials
Highlights of 1Q FY2021 Financials Revenue & Profit Before Tax RM’ mil ▪ Performance affected by COVID-19 FY2021 1st Quarter Results 180 171 ▪ Reduction in demand for 160 Aerospace products 140 131.5 120 ▪ Equipment segment affected 100 by Malaysia MCO 80 60 39.5 ▪ Order book is RM 2.4 Billion 40 16
Slide 7: Key Industries for Equipment Business
Key Industries for Equipment Business Semiconductor FY2020 Revenue ( Business Segment ) • Front End • Back End Aerospace 48% 52% Equipment Storage Devices • Solid State Drive • Hard Disk Drive Proprietary Information of SAM 7
Slide 8: Equipment Outlook – Long Term Growth Drivers
Equipment Outlook – Long Term Growth Drivers Semiconductor Demand Drivers •Smart devices (home) •5G Communications •Automotive & electric vehicle •IoT (Internet of Things) •Artificial Intelligence Cloud Computing drives demand in storage devices Proprietary Information of SAM 8
Slide 9: Equipment Outlook – Semiconductor
Equipment Outlook – Semiconductor SEMI (Sep 2020): • Upward revision of 2020 and 2021 fab spending (+2% from July Forecast) • +8% in 2020 and +13% in 2021 Proprietary Information of SAM 9
Slide 10: Equipment Outlook – Storage devices
Equipment Outlook – Storage devices • Installed base of storage capacity worldwide estimated to grow 16.6% to 6.8 zettabytes (ZB) in 2020. • Over the course of the 2019-2024 forecast, IDC expects the installed base of storage capacity to achieve a compound annual growth rate (CAGR) of 17.8%. • World
Slide 11: Equipment Outlook
Equipment Outlook SAMEE continues its expansion to support existing and new projects New manufacturing equipment Cleanroom expansion Proprietary Information of SAM 11
Slide 12: Aerospace Products and Programs
Aerospace Products and Programs Aerostructure Aero-Engine (Small to Large Size) • A320ceo/neo • B737NG/max • A220 • B777 • A320neo • B787 > 2 meter • A350 • B787 • C919 • Global 7500/8000 Single Aisle Twin Aisle Business Jet A220 777 A320neo C919 Proprietary Information of SAM 12
Slide 13: Aerospace Outlook
Aerospace Outlook Source: Teal Group (COVID-19 & Civil Aviation Markets Report, August 2020 edition) Single Aisles A220/ A320neo/ B737Max Twin Aisles A350/ B777/B787 __________ Teal Group, an US based aerospace and defence market analysis firm. It provides competitive intelligence to industry and go
Slide 14: Projection of Commercial aircraft deliveries
Projection of Commercial aircraft deliveries 90 1 Deliveries dip 40 - 50% in 2020 Pre- 80 COVID 19 2 Recovery from 2021, led by Deliveries in 2020 $Billions 70 Single Aisles (A320neo, B737max) 60 4 3 Recovery of Twin Aisles will 50 2 take a longer time 40 4 Overall deliveries expected to 30 recover
Slide 15: Actual flights made by Global Airlines
Actual flights made by Global Airlines Source: ICAO, August report Proprietary Information of SAM 15
Slide 16: Actual flights in Europe
Actual flights in Europe Source: ICAO, August report Proprietary Information of SAM 16
Slide 17: Domestic air travel in China
Domestic air travel in China Source: ICAO, Sep report Proprietary Information of SAM 17
Slide 18: Domestic air travel in US
Domestic air travel in US Source: ICAO, Sep report Proprietary Information of SAM 18
Slide 19: Airbus and Boeing Order Book
Airbus and Boeing Order Book Aircraft Order Book for Airbus & Boeing (August 2020) 2018 Deliveries 800 9.4 years* 7,501 2018 Deliveries 6.4 years* 806 5,160 *Based on 2018 delivery rate (not affected by grounding of 737max) *Impact of grounding of B737max and COVID-19 is still uncertain Source: Airb
Slide 20: Boeing 737Max Status
Boeing 737Max Status B737 Max crashes (Lion Air JT610 and Ethiopian Airlines ET 302) resulted in planes grounding by FAA • Mar 2019 B737 Max grounded by Federal Aviation Administration (FAA) • Apr 2019 Boeing announced production rate cut to 42 aircraft monthly (-20%) • Dec 2020 Boeing announced pro
Slide 21: Managing COVID-19 Impact
Managing COVID-19 Impact • Push out raw materials where possible Conserve • Only committed and necessary CAPEX are spent Cash • Financial support from governments • Implemented management pay cuts (5-10%) Reduce • Freeze Hiring, wage freeze, no over-time Operating • 4-day work week for Aerospace div
Slide 22: Thank You
Thank You Proprietary Information of SAM 22
Slide 23: Q&A
Q&A Proprietary Information of SAM 23
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