Aem Holdings Ltd. · SGX:AWX
Aem — Shareholder Meeting (April 2024)
20 slides from Aem's shareholder meeting presentation, Apr 24, 2024
Slide 1: Annual General Meeting Presentation to Shareholders
AEM Holdings Ltd. Annual General Meeting Presentation to Shareholders 24 April 2024 The SingPost Auditorium AEM 2024 AGM PRESENTATION
Slide 2: Disclaimer
Disclaimer This is a presentation of general information relating to the be construed as a representation as to the future of AEM, and current activities of AEM Holdings Ltd. (“AEM”). It is given in are not intended to be profit forecasts, estimations or summary form and does not purport to be compl
Slide 3: Contents
Industry Reviews Corporate Developments & Looking Contents Ahead Financial Review AEM 2024 AGM PRESENTATION
Slide 4: AEM is repositioning for the AI infrastructure future
AEM is repositioning for the AI infrastructure future New test demands require upgrading of existing equipment and new test flows with systems performance data Key Industry Developments AEM Initiatives Financials & Metrics • PC/ laptop: 8 quarter annual growth • Grow AI test socket Demand weakness i
Slide 5: Industry Review
Industry Review AEM 2024 AGM PRESENTATION
Slide 6: 2023 saw semiconductor demand decrease by 8.2% while test equipment market contracted 17%
2023 saw semiconductor demand decrease by 8.2% year-on-year *, while the semiconductor test equipment market contracted by 17% year-on-year ** With test equipment utilization rates remaining low through 2023, a recovery is expected 2H 2024 to 1H 2025 Semiconductor Market (US$B) 580 574.1 570 Semicon
Slide 7: The next wave of infrastructure investment is being driven by generative AI
The next wave of infrastructure investment is being driven by generative AI Today’s AI market value growth is derived from skyrocketing ASPs vs. unit volume growth. This is expected to change with the proliferation of AI to edge devices in 2025 and beyond, which is when demand for test equipment wil
Slide 8: Growth of AI unit volume brings about test challenges
Growth of AI unit volume brings about test challenges that will have a material impact on semiconductor companies’ bottom lines An innovative approach to testing is required to address these challenges while reducing overall cost of test. That approach is Test 2.0. Test Challenges Increasing Power R
Slide 9: Corporate Developments & Looking Ahead
Corporate Developments & Looking Ahead AEM 2024 AGM PRESENTATION
Slide 10: What is Test 2.0?
What is Test 2.0? Test 2.0 is an approach to test that features highly parallel, advanced intelligent automation, with a powerful thermal engine and application optimized test instrumentation to deliver a fully customized test flow that shifts Final Test test content into SLT, Burn-In, or Wafer Sort
Slide 11: AEM's key technology pillars enables it to deliver Test 2.0 solutions
AEM’s key technology pillars enables it to deliver Test 2.0 solutions Thermal Advanced Automation Application Optimized Test Instrumentation Advanced Software High-End Test Test Flow Highly Parallel Machine Vision Sockets Optimizer Architectures AEM 2024 AGM PRESENTATION 11
Slide 12: Continued investment in R&D results in key engagements despite industry slowdown
Continued investment in R&D results in key engagements despite industry slowdown Key Engagements R&D Expenses FY2023 S$24.4M Memory 1 Large memory IDM for HBM SLT Socket Technology Wafer Probe Machine Vision xPU Thermal Software 2 HPC / AI customers for AI Burn-In and HPC SLT Control Instrumentation
Slide 13: AEM's Test 2.0 paradigm is progressing
AEM’s Test 2.0 paradigm is progressing 2023 was challenging, yet we progressed well with our new accounts. 2024 will set the foundation for new test insertion win revenue to increase more than 5x from FY2023 to triple digit millions in FY2025 New Test Insertion Wins Update From 2023 to 2025 2023 202
Slide 14: Resolving key issues from 2023 to prepare for success in 2024 and beyond
Resolving key issues from 2023 to prepare for success in 2024 and beyond Settlement of Confidential Arbitration & Shortfall in Inventories Settlement of Shortfall in Inventories Confidential Arbitration • Settlement in confidential arbitration was • Shortfall in inventories discovered during reached
Slide 15: Organizing for success in 2024 and beyond
Organizing for success in 2024 and beyond Chua Tat Ming Lim Kim Hua Yeap Kian Yong Chief Operating Officer, Vice-President, Vice-President, Global Engineering Group Finance Global Manufacturing & Operations AEM 2024 AGM PRESENTATION 15
Slide 16: Financial Review
Financial Review AEM 2024 AGM PRESENTATION
Slide 17: FY2023 Financial Highlights - Summary
FY2023 Financial Highlights - Summary Semiconductor slowdown in 2023 resulted in push out of test equipment expenditures Revenue SG&A Expenses FY2023 FY2022 FY2023 FY2022 S$481.3M S$870.5M S$64.5M S$93.8M R&D Expenses PBT (including exceptional items) FY2023 FY2022 FY2023 FY2022 S$24.4M S$23.1M S$7.
Slide 18: FY2023 Financial Highlights - Revenue Mix
FY2023 Financial Highlights - Revenue Mix AEM’s revenue from Services increased year-on-year on the back of increased NRE and CM revenues S$M Revenue 870.5 242.0 (28%) 481.3 334.2 (38%) 288.5 (60%) Services comprises manufacturing, 131.2 294.3 (34%) (27%) engineering, and FSE revenue 61.6 (13%) FY20
Slide 19: FY2023 Financial Highlights - Balance Sheet
FY2023 Financial Highlights - Balance Sheet Sound capital structure, with a Debt / Equity ratio of 0.3x As at Dec’23 Dec’22 S$M S$M Cash 101.8 127.8 Inventories 328.6 367.7 Trade and other receivables (-S$34.1M) Trade and other receivables 58.8 92.9 Decreased mainly due to lower revenue towards the
Slide 20: Thank You!
Thank You! Investor Relations Contact Samir MOWLA samir.mowla@aem.com.sg Financial PR Pte Ltd Kamal SAMUEL / Shivam SARAF / Urvija DIWAN Tel: 6438 2990 / Fax: 6438 0064 kamal@financialpr.com.sg shivam@financialpr.com.sg urvija@financialpr.com.sg AEM 2024 AGM PRESENTATION