Financial Highlights

$ 0
Current stock price
$ 0 B
Market cap
$ 0 m
2020 revenue
0
P/E ratio
0 %
CAGR
$ 0 m
PBT
$ 0 m
PAT
0 cents
Dividend per ordinary share

Pioneers in System Level Test

0 +
Systems Installed
10000 +
Test Cells Deployed

Innovations

YEAR

2000

World’s first production system with pressure stimulus

YEAR

2002

Designing & delivering System Level Test

YEAR

2007

World’s first rotating probing system for motion sensors

YEAR

2018

World’s first 300mm Cryogenic Probe Station

A Leader in Test Innovation

AEM is a global provider of semiconductor test solutions. Our comprehensive semiconductor and electronics test solutions cover multiple stages of the testing process over various testing types, for full-stack test capabilities for advanced engineering to high-volume manufacturing.

The solutions we provide are customized and application specific to meet our customer’s application needs. We set ourselves to redefine test through our Test Cell Solutions Business and Instrumentation Business.

AEM has a global presence across Asia, Europe, and the United States. With manufacturing plants located in Singapore, Malaysia (Penang), Indonesia (Batam), China (Suzhou), and Finland (Lieto), and a global network of engineering support, sales offices, associates, and distributors, we offer our customers a robust and resilient ecosystem of test innovation and support.

AEM Holdings Ltd is listed on the main board of the Singapore Exchange (Reuters: AEM. SI; Bloomberg: AEM SP). AEM’s head office is in Singapore.

Our Leadership

Non-Executive Chairman’s Message

“Hindsight is 20/20” is apropos to describe the year that we have recently completed. The scale and negative impact of the COVID-19 lockdowns was devastating for many on a global scale; it also accelerated many structural trends that have been positive for our company. The wholesale move to remote collaboration drove the demand for computing, networking and memory, and pushed for longer term investments in cloud infrastructure, 5G, Electric Vehicles, Artificial Intelligence, and Industrial IoT. The push to use integrated circuits (ICs) in evermore mission critical applications also highlighted the need for more robust and yet cost-effective testing of such ICs. As a result of the IC testing demand surge, AEM delivered our best results on record with S$519.0 million in revenue and S$97.6 million in profit after tax.

On the operations and organisation fronts, we have much to be grateful for as our teams stayed safe and even excelled through the innovative use of technology to keep pace with our customers’ new product introductions deployments. In 2020, Chok Yean Hung retired as our Chief Executive Officer (CEO) and we welcomed Chandran Nair as his successor.

We also welcomed Leong Sook Han as our Chief Financial Officer (CFO) and Samer Kabbani as our Chief Technology Officer (CTO). The smooth leadership transitions enabled us to complete several acquisitions globally, one in France and two in California, US. These acquisitions added key technology building blocks and in-country customer application engineering support as we embrace a world needing innovative solutions and a more resilient supply chain.

The past year also highlighted many inequalities in our global society and the need for companies to operate more responsibly and in a more sustainable manner. To that end, AEM will be expanding our Environmental, Social, and Governance (ESG) operating principles, even as we focus on innovation to truly transform our company as a global leader in semiconductor and electronics test solutions.

5G is widely seen as a critical enabler for several significant areas for automation, stimulating material changes for many applications in transportation, industry, healthcare, logistics, and other critical areas. Moreover, the spread of the COVID-19 has accelerated the disruptions to many industries. The shift to telecommuting, work-fromhome, and virtual learning has created an increase in demand for semiconductor chips for servers, PCs, and notebooks. As the industry becomes increasingly aware of the significance and benefits of System Level Testing to test more advanced chips, AEM has gained increased recognition among semiconductor customers. Our advanced semiconductor testing solutions have placed AEM in an advantageous position to tap on the growth of System Level Testing in Cloud, 5G, EV, IoT, and AI, especially in these critical times.

Over the past nine years, AEM has transformed itself from a niche automation company to a global semiconductor and electronics test solutions provider based on our own intellectual property. Our customers include the world’s largest semiconductor company, as well as global leaders in Micro Electro Mechanical Systems, optical cabling, and memory devices. We support our customers with various R&D teams in Singapore, France, Finland, and the US. With continuous re-investment into R&D and strategic technology acquisitions, AEM today offers leading-edge test solutions for the most demanding semiconductor ICs that power the world’s cloud computing and 5G infrastructure, as well as AI, autonomous driving, and quantum computing applications.

AEM achieved compound annual growth rates of 32.8% in revenue and 44.7% in profit before tax over the past four years and reported record profit before tax of S$113.8 million for FY2020. AEM’s market capitalisation has also increased many folds in the past 10 years to cross over 1 billion Singapore dollars.

These achievements have won us multiple awards, including The Enterprise Award in Singapore Business Awards 2020, the Singapore Business Review Technology Excellence Awards 2020, and the IR Magazine Awards. The Edge’s Billion Dollar Club (BDC) 2020 named AEM the Overall Sector Winner in the Centurion category, and extended the Highest Returns to Shareholders Over Three Years Award, and the Highest Return on Equity Over Three Years Award to AEM. In addition, we entered the Forbes Asia Best Under A Billion list for the second year in a row in 2020.

While we have grown significantly over the past years, what has not changed is the culture we have built based on our humility to listen to our customers, mutual respect for our colleagues and supply chain partners, and ultimately drive to deliver the best outcomes for our stakeholders.

As mentioned in my opening, the transition between Chok Yean Hung and our current CEO Chandran Nair has gone very smoothly. We planned the transition carefully, and by the time when Yean Hung retired on 30 June 2020, he joined the Board as a non-executive, non-independent director on 1 July 2020. Chandran had spent several months in the role as President of AEM, and by June 2020, he was well versed with AEM’s operations and ready to assume the CEO role. Chandran’s leadership, drawing on his decades of experience in electronics and semiconductor test, is well suited for our next phase of growth.

On 2 April 2020, we also set up a Strategy Committee, I being the chairman and our directors Lavi Lev, Loh Kin Wah, and Chok Yean Hung being members. The Strategy Committee works with AEM’s senior management on strategic planning and the review of its adequacy and implementation to ensure that AEM stays relevant and competitive in a rapidly evolving market.

In June 2020, Leong Sook Han was appointed as AEM’s Group CFO. Sook Han has over 20 years of financial management experience across electronics, engineering, and technology sectors, and I have confidence that she will continue to add to our leadership strength. In August 2020, Samer Kabbani, a veteran in the semiconductor capital equipment industry, joined AEM as our CTO to lead the development and organisation of AEM’s overall technology strategy. Over the past six months, I have been impressed with the way Chandran and Samer have been working together with the rest of our team to implement AEM’s strategic objectives and technology roadmap. I believe that our leadership is complete to take us through the new decade and beyond.

In March 2020, we completed the acquisition of Mu-TEST, which brought us application-specific ATE instrumentation and capabilities at optimised pricing. In July 2020, we acquired DB Design, which expanded AEM’s offerings to include the automation fixture and device kit markets. At the end of last year, we also acquired Lattice Innovation, based in California, US, to complement our extensive knowhow in Active Thermal Controls.

Together with the three other acquisitions that we made since 2017, AEM has brought together the core technologies to realise our SLT+ vision. By designing test systems with programmable logic and rethinking test flows for Machine Learning capabilities, AEM now offers a full suite of applicationspecific test solutions across MEMS, wafer sort, packaged ICs, and RF interconnects for the 5G economy.

In January 2021, AEM made a voluntary conditional offer for the acquisition of all the issued and paid-up ordinary shares of CEI Limited (CEI), which we view as a strategic fit for the AEM infrastructure. Upon the successful completion of the acquisition, we expect CEI to contribute to AEM’s vertical integration with a higher level of control over quality and agility along the entire supply chain, and provide AEM with a wider customer reach, the potential for cross-selling, and other synergistic benefits.

We remain foresightful and diligent as we expand strategically through mergers and acquisitions to solidify our position as a global leader offering application-specific intelligent system test and handling solutions for semiconductor and electronics companies serving mainly the advanced computing, 5G, and AI markets.

Finally, I would like to thank our customers and suppliers for their continued support and thank our management team and employees for their dedication and commitment to innovation and excellence. Our board directors provided valuable advice that contributed to our success, and I look forward to continuing to work with them. To our shareholders, thank you for your trust and confidence in AEM, and we look forward to your continued support as we prepare for our next phase of growth.

Loke Wai San

Non-Executive Chairman

CEO’s Message

2020 was a year of an unprecedented global health crisis that has changed the way we live, work, learn and play. Digital infrastructure usage surged as the global pandemic kept billions of people at home. It brought about years of change in the way companies do business and how employees work and collaborate. At AEM, we have worked hard to navigate a fast-changing market, supply chain disruptions, accelerated digitalisation, geopolitical challenges, and economic instability to meet our customers’ ever-evolving needs.

With our global network, localised support, and full-stack test and handling capabilities, we work closely with our customers to develop integrated test and handling solutions that accelerate their delivery cycles and enhance product quality.

Financial Year 2020 (FY2020) was our highest revenue year on record with S$519.0 million in revenue, up 60.6% year-on-year, S$113.8 million in profit before tax, up 78.6% year-on-year, and our market capitalisation crossed the S$1 billion mark.

The increase in revenue was driven primarily by the Equipment Systems Solutions (ESS) business with increased customer orders. The ESS segment saw revenue increase by S$193.3 million, which translates to an increase of 62.8% compared to FY2019. All other segments reported higher revenue except for Micro-Electro-Mechanical Systems (MEMS). MEMS recorded a decrease in revenue of 20.4%, from S$7.4 million a year ago to S$5.9 million due to lower demand from customers affected by COVID-19.

In FY2020, the Group generated an operating cashflow of S$125.3 million before accounting for working capital changes. The Group’s net profit margin increased from 16.3% for FY2019 to 18.8% for FY2020. Fully diluted earnings per share for FY2020 was 35.1 Singapore cents, compared to 19.4 Singapore cents for FY2019. The Group maintained a strong financial position as total equity increased by S$77.1 million from S$134.3 million as of 31 December 2019 to S$211.4 million in FY2020. As of 31 December 2020, the Group had cash and cash equivalents of S$134.8 million, an increase of S$27.1 million, net of dividend payout at S$22.2 million, and acquisition of subsidiaries for a sum of S$25.2 million.

The Group has proposed a final dividend of 4.0 Singapore cents per ordinary share for FY2020 (subject to shareholders’ approval at the forthcoming annual general meeting). Together with the interim dividend of 5.0 Singapore cents per share, the total dividend for the FY2020 would be 9.0 Singapore cents per share (FY2019: 5.1 Singapore cents per share), representing a 76.5% increase vis-àvis FY2019.

Despite the pandemic and disruptions to the supply chain, we successfully achieved a new delivery record and exceeded our 2020 shipment commitment. Our TestPro sales in the US grew more than 60%. We have opened a new market for Magnetic Sensor Testing in China. In addition, we have delivered the Cryogenic Wafer Prober, speeding up the quantum project remarkably, and seen positive progress in our next generation handlers.

To be able to test innovation, we must innovate test. We took significant steps in 2020 towards fulfilling our near-term objective of becoming a technology leader in the semiconductor and electronics test and handling industry. AEM is at the forefront of a paradigm shift in the way customers test - there is an accelerating shift towards System Level Testing (SLT), and we are uniquely positioned to drive that.

With our acquisition of DB Design, Inc, we have expanded our designs and application engineering capabilities for our consumables business. In 2020, we also completed the acquisition of MuTEST, giving us the ability to integrate test into our SLT platforms and grow our cost-effective tester solutions. As we expand our customer base for the AMPS (Asynchronous Modular Parallel Smart platform) and SLT-i (System Level Test and Inspection) business, Mu-TEST will provide a wider range of solutions, combining both handling and testing capabilities that cater to the diverse needs of our customers. We are in a strong position to offer full-stack capabilities for advanced engineering to high-volume manufacturing through our strategic acquisitions and homegrown technological capabilities.

We have also strengthened our leadership team and are excited to welcome Samer Kabbani, an industry veteran who joins us as our first Chief Technological Officer (CTO). Samer will lead our overall technology development. The CTO Office will focus on pathfinding activities that will serve as a critical pipeline to fuel future AEM products with clear market differentiation. Another valuable addition to our leadership team as Chief Financial Officer is Leong Sook Han. Sook Han’s vast and diversified knowledge and experience in financial management will be instrumental in strengthening AEM’s financial management in a global capacity as we continue to grow.

According to Deloitte, the global semiconductor sales revenue is set to increase to an estimated US$542.64 billion by next year. The growth of the semiconductor industry is driven by the mass adoption of semiconductor devices in a wide variety of applications. The semiconductor industry will continue to be a critical driver of success for a wide range of industries including mobility, communications, 5G, automotive, and computing. The semiconductor industry needs to meet the demands of these markets. Our role is to ensure that with every customer we partner with, we deliver test and handling solutions that will drive their success.

Our investments will be in areas that will allow us to stay ahead of the curve in the test and handling of semiconductor and electronic devices. We continue to invest in R&D and in our expertise in customising test solutions to meet each customer’s application needs. Our solutions will reduce the cost of testing, improve test coverage, reduce time to market for our customers. We continue to fine-tune our business continuity plans to ensure that we minimise the impact caused by supply chain interruptions or lockdowns.

Our mission is to provide the most comprehensive semiconductor and electronics test solutions based on the best-in-class technologies, processes, and customer support. Our core technology pillars and our expertise to engineer and deploy custom, application-specific systems at scale for our customers enable us to meet our customers’ current and future test and handling needs.

AEM has grown from strength to strength. Through strategic acquisitions in Singapore and worldwide, our aim is to become a critical node of the global value chain to deliver scalable, leadingedge, and resilient test solutions in an increasingly complex world. I am confident that we will continue contributing to the manufacturing and innovation capabilities that the semiconductor industry demands through operational excellence, customer intimacy, and product leadership.

Chandran Nair

Chief Executive Officer

Global Footprint

Representative Office of AEM Singapore Pte Ltd in Ho Chi Minh City
Lot T2-4, Ground Floor, D1 Road
Saigon Hi-Tech Park, District 9
Ho Chi Minh City, Vietnam
Tel: +84 093 748 1762
hien.nguyen@investors.aem.com.sg

AEM Microtronics (M) Sdn Bhd
368, Jalan Mayang Pasir
Taman Perindustrian Bayan Lepas, Fasa 2
11900 Bayan Lepas
Penang, Malaysia
Tel: +60 4 609 7200
Fax: +60 4 609 7210
AEM Microtronics (Suzhou) Co Ltd
83 Qunxing Yi Road, Suzhou Industrial Park
Jiangsu Province, China 215006
苏州永科电子设备有限公司
中国 苏州市 工业园区 群星一路83号
Tel: +86 512 6760 3000
Fax: +86 512 6760 5000
AEM Microtronics (Suzhou) Co Ltd
Shanghai Branch
656-658 Wuyi Road
Room 2353, 2nd Floor, Building 2
Changning District, Shanghai, China
苏州永科电子设备有限公司上海分公司
中国上海市 长宁区武夷路656-658号2幢2层2353室
Tel: +86 512 6760 3000
Fax: +86 512 6760 5000
Branch Office of AEM Singapore Pte Ltd
7F-10, No. 1, Sec 3, Gongdao 5th Rd
Hsinchu City, 30042, Taiwan
30042 新竹市公道五路三段1號7F-10
AEM International (US) Ltd
5560 West Chandler Blvd
Suite 3
Chandler, Arizona 85226
Main Office: +1 (480) 534-1230
Marc McCormick
marc.mccormick@investors.aem.com.sg
12131 Community Road,
Suite A Poway,
CA 92064
Tel: +1 (619) 701-6784
info_sandiego@aem.com.sg

48507 Milmont Drive
Fremont, CA 94538
Tel: +1 (408) 834-1400
info@dbdesign.com

AEM Costa Rica Ltd
Centro de negocios eurocenter
Frente a cenada
Barreal de Heredia, Ulloa
Oficina planta primera eu i.
40101-heredia Costa Rica
Tel: +506 4350-0160
Bâtiment 9, Parc de Métrotech
42650 Saint-Jean-Bonnefonds
France
Tel: +33 4 77 56 25 49
mu-test-enquiry@investors.aem.com.sg
Vakiotie 5, 21420 Lieto, Finland
Tel: +358 2 274 6040

AEM Holdings Ltd
AEM Singapore Pte Ltd
52 Serangoon North Ave 4
Singapore 555853
Tel. +65 6483 1811
Fax. +65 6483 1822

Accolades

Forbes Asia Best 200 under a billion 2019

2019

Forbes Asia Best 200 under a billion 2020

2020

Singapore Business Awards, The Enterprise Award 2019/2020

2020

Business Technology Excellence Awards 2020, Analytics – Semiconductor

2020

The Edge Centurion Awards, Centurion Club (Overall Sector Winner) 2020

2020

IR Magazine Southeast Asia IR Award, Best in Sector (Technology) 2020

2020

Intel Supplier Achievement Award 2020

2020
  • Intel Award for Commitment to Software Excellence 2021

  • Singapore Business Review National Business Award (2021) for Manufacturing Technology

2021

Building a high-potential, innovative portfolio

At AEM, we offer a growth-driven portfolio with a breadth of innovation capabilities. Our suite of test solutions propel innovation and assure better innovation outcomes for advanced industries. We are an agile, future-focused company with a clear and differentiated vision.

Our investors are key stakeholders to our company. We strive to provide our investors key financial information and corporate information that might be needed for their research.

For more detailed investor queries, please email: investor.relations@aem.com.sg.