Proprietary Information of SAM 1

SAM Engineering & Equipment (M) BerhadBusiness Update

2nd 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 31 August 2020. SAMEE does not make any representationor warranty or guarantee regarding the accuracy, applicability, fitness or completeness of the information referenced or theanalysis of subject discussed, or the content produced. All expressions and opinions in this video are subject to change dependentupon 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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Disclaimer

Proprietary Information of SAM

FY2020 Revenue ( Business Segment )

48%52% RM939mil

Our Business

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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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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 backlog is RM 2.4 Billion

§ Net Debt to Equity Ratio is 0.1

5

39.5

131.5

171

-5.216.9 11.7

-200

20406080

100120140160180

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%AerospaceEquipment

FY2020 Revenue ( Business Segment )

Proprietary Information of SAM

SEMI (July 2020) projected:• Global revenue of Semiconductor equipment to increase 6% ($63.2 billion) in 2020 • Record high revenue of ~$70 billion in 2021

Equipment Outlook

6%11%$63.2B

$69.6B$59.6B

$64.5B

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Equipment Outlook

SAMEE continues its expansion to support existing and new projects

Cleanroom expansion

New manufacturing equipment

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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

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 11

__________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

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Projection of Commercial aircraft deliveries

0

10

20

30

40

50

60

70

80

90

20182019

20202021

20222023

20242025

20262027

20282029

Single Aisles Twin Aisles

Deliv

erie

s in

2020

$Bi

llion

s

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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

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Actual flights made by Global Airlines

Source: ICAO, August report13

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Actual flights in Europe

Source: ICAO, August report14

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Domestic air travel in China

Source: ICAO, August report15

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Domestic air travel in US

Source: ICAO, August report16

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Managing the crisis – Key Priorities

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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Thank You