Proprietary Information of SAM 1

SAM Engineering & Equipment (M) Berhad

Investor Briefing

23 September 2020

1Proprietary information of SAM, all rights reserved

Proprietary Information of SAM

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 current as at 21 September 2020. SAMEE does not make anyrepresentation or warranty or guarantee regarding the accuracy, applicability, fitness or completeness of the informationreferenced or the analysis of subject discussed, or the content produced. All expressions and opinions in this video are subject tochange dependent upon updated research and public information received.

No content herein should be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell any of SAMEE securities.You are advised to always seek professional advice and conduct your own due diligence prior to committing to any actionregarding your investment.

Under no circumstances shall SAMEE or any of its personnel be held responsible or liable in any way for any content herein,including but not limited to, any errors or omissions in the content, or for any loss or damage of any kind incurred as a result ofany content communicated hererin. In no event shall SAMEE or any of its personnel be liable for any special, indirect orconsequential damages or any damages whatsoever resulting from the loss of use, data or profits arising out of or in connectionwith the availability, use or performance of any information communicated hererin. Any action that is taken in reliance of theinformation contained herein shall be at your own risk.

SAMEE reserves the right to edit, delete or modify any material within this presentation as it deems necessary.

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Disclaimers

Proprietary Information of SAM

FY2020 Revenue ( Business Segment )

48%52% RM939mil

Our Business

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Proprietary Information of SAM 4

Our Facilities

We are in Malaysia (Penang), Singapore & Thailand

Aerospace & Equipment (Small Format Machining)

Penang, Malaysia

Equipment(Metal Fabrication & Special Process)

Penang, Malaysia

Equipment (Equipment Integration)

Penang, Malaysia

Aerospace (Aerostructures) Penang, Malaysia

Aerospace & Equipment (Special Process) Penang, Malaysia

Aerospace (Casings) Penang, Malaysia

Equipment(Assembly of Equipment & Machining)

Ayutthaya, Thailand

Aerospace (Casings)Jurong & Tuas, Singapore

Proprietary Information of SAM

Highlights of FY2020 Financials

Equity attributable to owners of the Company : RM 610 milNet Debt to Equity ratio : 0.1

5-year CAGR : 10.9% 5-year CAGR : 6.1%

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Proprietary Information of SAM

Highlights of 1Q FY2021 Financials

Revenue & Profit Before TaxRM’ mil

▪ Performance affected by COVID-19

▪ Reduction in demand for Aerospace products

▪ Equipment segment affected by Malaysia MCO

▪ Order book is RM 2.4 Billion

▪ Net Debt to Equity Ratio is 0.1

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39.5

131.5

171

-5.2

16.9 11.7

-20

0

20

40

60

80

100

120

140

160

180

Aerospace Equipment Total

FY2021 1st Quarter Results

Revenue Profit before tax

Proprietary Information of SAM

Key Industries for Equipment Business

Semiconductor

Storage Devices• Solid State Drive• Hard Disk Drive

• Front End• Back End

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48%52%

Aerospace

Equipment

FY2020 Revenue ( Business Segment )

Proprietary Information of SAM 8

Cloud Computing drives demand in storage devices

Equipment Outlook – Long Term Growth Drivers

Semiconductor Demand Drivers •Smart devices (home) •5G Communications •Automotive & electric vehicle •IoT (Internet of Things) •Artificial Intelligence

Proprietary Information of SAM

SEMI (Sep 2020):

• Upward revision of 2020 and 2021 fab spending (+2% from July Forecast)

• +8% in 2020 and +13% in 2021

Equipment Outlook – Semiconductor

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Proprietary Information of SAM

Equipment Outlook – Storage devices

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• 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%.

• Worldwide SSD industry revenue to grow at a 2019–2024 CAGR of 18%

• Drivers - Increasing demand from client devices, enterprise storage customers, and cloud service providers

(Source: IDC, May 2020)

Proprietary Information of SAM

Equipment Outlook

SAMEE continues its expansion to support existing and new projects

Cleanroom expansion

New manufacturing equipment

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Proprietary Information of SAM

Aerospace Products and Programs

777C919

Aerostructure (Small to Large Size)

> 2 meter

Aero-Engine

• A220• A320neo• A350• B787

• A320ceo/neo• B737NG/max• B777• B787

• C919• Global 7500/8000

A220

A320neo

Single Aisle Twin Aisle Business Jet

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Proprietary Information of SAM 13

__________Teal Group, an US based aerospace anddefence market analysis firm. It providescompetitive intelligence to industry andgovernment worldwide.

Source: Teal Group (COVID-19 & Civil Aviation Markets Report, August 2020 edition)

Aerospace Outlook

Single AislesA220/ A320neo/ B737Max

Twin AislesA350/ B777/B787

Proprietary Information of SAM 14

Projection of Commercial aircraft deliveries

0

10

20

30

40

50

60

70

80

90

Single Aisles Twin Aisles

De

live

rie

s in

20

20

$B

illio

ns

1

Deliveries dip 40 - 50% in 2020 1

Recovery from 2021, led by

Single Aisles (A320neo, B737max)

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2

4 Overall deliveries expected to

recover to normal by 2024/25

Source: Teal Group - COVID-19 & Civil Aviation Markets Report, August 2020

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3 Recovery of Twin Aisles will

take a longer time

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Pre-COVID

19

Proprietary Information of SAM

Actual flights made by Global Airlines

Source: ICAO, August report

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Proprietary Information of SAM

Actual flights in Europe

Source: ICAO, August report

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Proprietary Information of SAM

Domestic air travel in China

Source: ICAO, Sep report

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Proprietary Information of SAM

Domestic air travel in US

Source: ICAO, Sep report

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Proprietary Information of SAM

Airbus and Boeing Order Book

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5,160

6.4 years*

9.4 years*

7,501

*Based on 2018 delivery rate (not affected by grounding of 737max)*Impact of grounding of B737max and COVID-19 is still uncertain

Source: Airbus & Boeing August’20

Aircraft Order Book for Airbus & Boeing (August 2020)

2018 Deliveries

800

2018 Deliveries

806

Proprietary Information of SAM

Boeing 737Max Status

Boeing 737Max contributed <10%

of FY2020 Revenue

FY 2020

Revenue RM 938.7 mil

• 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 production halt in January 2020

• May 2020 Boeing restarted 737 Max production at low rate

• Jul 2020 FAA completed test flights on 737 Max. Currently evaluating the test results. Boeing plans to ramp up 737 Max production to 31 Aircraft per month by 2022.

• Aug 2020 FAA published preliminary summary of the FAA’s Review of the B737 Max.

B737 Max crashes (Lion Air JT610 and Ethiopian Airlines ET 302) resulted in planes

grounding by FAA

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Proprietary Information of SAM

Managing COVID-19 Impact

Conserve Cash

Reduce Operating Costs

• Implemented management pay cuts (5-10%)

• Freeze Hiring, wage freeze, no over-time

• 4-day work week for Aerospace division

• Redeploy Aerospace manpower to support Equipment’s growth

• Push out raw materials where possible

• Only committed and necessary CAPEX are spent

• Financial support from governments

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Proprietary Information of SAM 22

Thank You

Proprietary Information of SAM 23

Q&A