Presentation to Shareholders. AEM Holdings Ltd AGM 26 April 2018

Transcription

1 Presentation to Shareholders AEM Holdings Ltd AGM 26 April 2018

2 Disclaimer This is a presentation of general information relating to the crrent activities of AEM Holdings Ltd ( AEM ). It is given in smmary form and does not prport to be complete. In addition, the presentation may contain forwardlooking statements relating to financial trends for ftre periods, compared to the reslts for previos periods. Some of the statements contained herein are not historical facts bt are statements of ftre expectations relating to the financial conditions, reslts of operations and bsinesses and related plans and objectives. The information is based on certain views and assmptions and wold ths involve risks and ncertainties. Actal ftre performance, otcomes and reslts may differ materially from those expressed in these forward-looking statements as a reslt of a nmber of risks, ncertainties and assmptions. Representative examples of these factors inclde (withot limitation) general indstry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies, shifts in cstomer demands, cstomers and partners, changes in operating expenses, governmental and pblic policy changes, and the contined availability of financing. Sch statements are not and shold not be constred as a representation as to the ftre of AEM and shold not be regarded as a forecast or projection of ftre performance. No reliance shold therefore be placed on these forward-looking statements, which are based on the crrent view of the management of AEM on ftre events. The presentation is also not to be relied pon as advice to investors or potential investors and does not take into accont the investment objectives, financial sitation or needs of any particlar investor. AEM accepts no responsibility whatsoever with respect to the se of this docment or any part thereof. 2

3 Bsiness highlights Leading global provider of high-end test handlers. Estimated global TAM of S$1 billion per year. Stable, 15+ year relationship with marqe cstomer spanning 4 test handler platforms Attractive and drable core bsiness based on selling handler platforms Test handlers provide significant benefits to cstomer, redcing costs and increasing prodct yield Each handler platform represents a proven, mlti-year life cycle of eqipment, pgrades and consmables sales New high-volme platform represents mlti-year opportnity for AEM Defensible competitive position Highly complex cstomized eqipment Early cstomer engagement at R&D level Integrated Field Service Spport and Spares organization across mltiple geographies Growth momentm Growing order book for new high density modlar test handler tools Known pgrade and consmables opportnities for existing platforms Note:- TAM means total addressable market 3

4 AEM s soltions AEM s soltions cover logic, MEMS and RF, from wafer level to system level Semicondctor MEMS Test & Measrement High density modlar atomated test platform (HDMT) System level test Platform AOI soltions below 2 micron and 3D inspection Package and Wafer Level test soltions Pressre, Gyroscopic, Accelerometers, Hmidity, Magnetometers, etc. Portable mlti-mode vector network analyzers Cable testers Socket testers Or soltions are the reslt of years of dedicated research and development, backed by intellectal property development and ownership Note:- MEMS means Micro-Electro-Mechanical Systems, RF means radio freqency, AOI means Atomated Optical Inspection 4

5 AEM s global footprint contribtes sales, manfactring, and field spport to acqired bsinesses AEM Global Footprint AEM sbsidiary factories Direct engineering spport 3 rd party engineering spport Afore Finland Trk Oregon Chandler (US HQ) Astin Israel Chengd Szho Costa Rica Penang Klim Ho Chi Minh Philippines Singapore Global HQ Global platform provides merger synergies throgh both growth and global operating efficiencies 5

6 What has changed in the last 12 months? Or bsiness is on a solid growth footing as or investments contine to pay off 1 New handler platform is in fll commercial ramp p and into replacement cycle of competitors eqipment Strong ramp in 2017 that is expected to contine in 2018 (as per or issed gidance) Expect to enter existing fleet replacement cycle from 2019 onwards with occasional qarterly ramps We expect contined reqirement for pans and kits over the lifetime of or tools 2 3 Solid operational capability enhancement to drive cstomer satisfaction and operational excellence Rolling ot extensive field service and qality organizations to spport key cstomer 24/7 across mltiple sites Contined opportnity to lean operations to drive prodctivity improvements Prodct improvement and cost redction engineering initiatives We see contine to seek diversification and growth opportnities New engineering resorces have been hired to work on System Level Test & Inspection opportnities We contine to broaden or soltions footprint at or major cstomer Good exection on accretive and strategically diversified M&A (InspiRain, Afore, IRIS Soltion) M&A program contines 6

7 A broader and technically deeper leadership team as the bsiness scales AEM s strategy and sccess have allowed s to attract more world-class talent Additions to the AEM leadership team since last AGM Vesa Hentonnen Harshang Pandya TM Cha Darren Lim CEO Afore GM of Test & Measrement VP Engineering Scientist of Vision Laboratory Pioneer and inventor in MEMS testing Fonder Afore Oy Patent holder Main designer at Conslting Engineering Firms before started Afore Co-fonder InspiRain Technologies R&D lead, Agilent technologies Sr Engineer Pixelmetrix Motorola Engineering Director, recognised as top 1.5% global engineers of Motorola 30 years indstry veteran Holds a US patent PMP and six sigma green belt holder Fonder, CEO IRIS Soltion 27 years indstry veteran Leader in machine vision systems and soltions Research engineer with Gintic Scaling the leadership team has been a priority for AEM as we evolve the bsiness into a diverse, mlti-platform global company 7

8 Ftre earnings growth throgh consmables, new programs and M&A HDMT program expected to hit matrity in Earnings growth will be driven throgh HDMT consmables, new key accont programs, and new bsiness nits from 2019 and beyond Core accont growth Strong growth ramp for HDMT HDMT replacement of old fleet Recrring consmables/kits growth Grow next-gen hybrid soltions New accont growth Contine market penetration in solar, indstrial and smart-cards Captre new Semicondctor segments in System Level Test New bsiness System Level Test soltions for nonsemicondctor markets Selective M&A activity 8

9 AEM s acqisition strategy drives market expansion & strong synergies + Acqisition of IRIS deepens engineering, prodct & technology capabilities across all segments for AEM 9

10 and also drives AEM s indstry leadership in a growing market Macro Drivers AEM s Roadmap 1 Smart + Connected everything Megatrends: AI, Big Data, IoT, 5G, Indstry 4.0, Clod Compting, Atonomos Driving Semicondctor Logic Non-Logic MEMS Wafer Package/ Component AMPS Afore System/ SIP 2 Drives innovation + complexity in semicondctors & electronics + software integration Cable + Connector RF TMS (InspiRain) 3 Semicondctors in everything drives the need for more comprehensive systems level testing at lower costs Complete Device Afore (Metis) AEM s IP Asynchronos + modlarity High parallelism + mlti-site testing Active thermal control Central control software Machine learning Vision + Pick & Bffer Low index times 10

11 What is AMPS by AEM AMPS Asynchronos Modlar Parallel Smart platform Singlar Test framework that spport for different testers or same testers/different-programs to coexist. Common, configrable test environment for both fnctional and system level test. Modlar handler strctre with advanced spport for ATC & intelligent vision. Scalability that enable rapid high parallelism for fast pace environment. Tester Ecosystem 3 rd party partners or cstomer in-hose soltions Cstomized to yor specific needs. Note:- ATC means active thermal control 11

12 AEM has proven ability to bild test platforms for large-scale global cstomers Cstomized Design: Concept to Prototype Volme Manfactring and Global Field Service Spport 1 Deep knowledge 2 In-hose 3 1 Competitive 4 2 Mass 5 Track record in 6 in next technologies engineering cost prodction global rollot and generation post 6 with stringent IP sites with 3 field service assembly test soltions framework world class qality spport Global spply chain and RMA Synchronos and Asynchronos test soltions IP for modlar and high density handler soltions Familiarity with leading tester platforms and track record with software integration Active Thermal Control Vision (AOI) Asynchronos Test Control Self-teach/ Machine Learning Thermal and Flid dynamics design MEMS RF US and Asia development sites for rond the clock development Strict NDAs and IP control Accelerated Life Testing for field reliability and preventive maintenance specifications Spplier Recognition Award Dal prodction sites Globally recognized qality systems Over 800 tools spplied globally across sites in N America, EMEA, Asia Extensive FSE network globally Global spply chain management inclding highly specialized sppliers from N America, Japan, Erope and Asia. 12

13 Test & Measrement

14 AEM Test and Measrement Soltions (AEM TMS) Jorney 2015 Startp InspiRain Technologies fonded by the team with strong RF test and measrement experience 2017 AEM acqires InspiRain to combine atomation and testing expertise 2018 RF soltion MMVNA sccessflly deployed at a major atomotive cable manfactri ng plant Lanch of world s first mlti gigabit link validator TestPro Note:- MMVNA means mixed mode vector network analyser 14

15 Traditional VNA AEM TMS: Comparison with Traditional RF Testers AEM MMVNA-100 Fewer ports, high cost/port >120dB noise floor, reqired only in some lab tests >50GHz freqency Blky, difficlt to handle in manfactring environment Large port cont at low cost Perfect mix of adeqate noise floor, port cont, size and cost Small size, cstomizable, ideally sited for manfactring test Innovative patent-pending measrement architectre Good for lab testing Good for manfactring testing 15

16 TMS Prodcts and soltions at trade-show Cstomers viewing demonstration of atomated Connector testing at AEM booth at BICSI show in Florida, Feb

17 Frther Updates on TMS progress Marketing efforts enhanced with AEM s global otreach, specifically in the USA throgh the Chandler office Leveraging synergies: Integrated R&D efforts nder way between TMS team AEM s System level test team to develop innovative atomation test soltion Beta testing of TestPro handheld nearing completion with positive feedback Mass prodction of TestPro starting Q2/Q Key distribtor agreements signed for the handheld tester 17

18 Thank Yo Investor relations contact : Financial PR Pte Ltd Romil SINGH / El LEE / Reyna Mei Tel: / Fax: romil@financialpr.com.sg / el@financialpr.com.sg / reyna@financialpr.com.sg