Financial Year 2020 Highlights

DILUTED EARNINGS PER SHARE

(in cents)

NET ASSET VALUE PER ORDINARY SHARE

(in cents)

REVENUE BY PRODUCT TYPE

MARGINS

KEY PERFORMANCE SUMMARY

FY2018
S$'000
FY2019
S$'000
FY2020
S$'000
FY19 vs FY20
Change
Profit for the year33,49352,763 97,58785.0%
Revenue262,325323,130518,95960.6%
Materials, consumables and inventory changes, excluding stock obsolescence(173,448)(192,050)(315,415)-64.2%
Allowance for stock obsolescence reversed226(311) (76)75.6%
 
Staff costs(32,521) (47,423)(67,536) -42.4%
Depreciation and amortisation (1,871) (6,076)(8,415)-38.5%
 
Other expenses, net(14,965)(14,352)(14,359) -0.0%
Finance income, net 26035644825.8%
 
Total expenses net other income(222,319)(259,856)(405,353)-56.0%
 
Share of equity-accounted investee's (losses)/ profit (net of tax)(38)461 199-56.8%
 
Profit before taxation39,96863,735113,80578.6%
 
Tax expenses(6,475)(10,972)(16,218)-47.8%
* Increase/(Decrease) Earnings

FINANCIAL POSITION

31 Dec 2018
S$'000
31 Dec 2019
S$'000
31 Dec 2020
S$'000
Net asset value per share (SG cents)33.349.876.7
Property, plant and equipment5,7256,3928,127
Right of use assets-2,0519,509
Intangible assets and goodwill 17,71716,90546,646
Cash and cash equivalents58,890107,676134,785
Current assets less current liabilites 65,112108,277155,604
Borrowings156-1,868
Total equity89,504134,336 211,430

CASH FLOW STATEMENT

2018
S$'M
2019
S$'M
2020
S$'M
Net increase in cash11.649.730.6
Cash & cash equivalents58.9107.7 134.8
Net cash generated from operating activities34.067.786.3
Net cash used in investing activities(13.2)(2.8) (29.8)
Net cash used in financing activities(9.2)(15.2) (25.9)

An Agile & Future-Focused Organisation

“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.”

Chandran Nair,
Chief Executive Officer

“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.”

Loke Wai San,
Non-Executive Chairman

A Growth-Driven Portfolio With A Breadth Of Innovation Capabilities

An Industry Leader & Gamechanger

Acquisitions in 2020

MU-Test

In the first quarter of 2020, we completed our acquisition of Mu-TEST, a French-based provider of highly customisable, application-specific, FPGA-based testers. Mu-TEST’s strong team of highly experienced engineers complements AEM’s System Level Test (SLT) engineering team, enabling the delivery of AEM’s Asynchronous Modular Parallel Smart (AMPS)-based SLT+ solutions to the semiconductor and electronics markets.

DB Design

AEM closed its acquisition of California-based DB Design Group, Inc in July 2020. DB Design is a world-renowned supplier of automation fixtures, device kits, and other test-related products. This acquisition strengthens AEM’s design and application engineering capabilities in the consumables space, expands AEM’s customer portfolio in the semiconductor and electronics spaces, and gives AEM an expanded R&D and engineering presence in the US, enhancing AEM’s overall customer intimacy.

LATTICE
Innovation

Lattice Innovation, Inc is a California-based company with exceptional design, simulation, and process services in the active thermal control space. Lattice Innovation’s capabilities combined with AEM’s existing comprehensive thermal management, vision, and deep automation solutions ensure that AEM will continue to deliver exciting, industry-leading test solutions for the Computing, Automotive, Mobility, and Optical Electronics test markets.

With custom-native as our DNA combined with a singular focus on our customers, AEM is uniquely positioned to build and innovate application-specific solutions that meet our customers’ test needs. Our M&A programme will continue to be a strong complement to the organic growth of our technological talents and capabilities to drive AEM forward as a leader in the test industry.

From The CEO Office

It was exciting to share with the ministers some of the key solutions that my team and I had been working on. It was a proud moment that the team was acknowledged as part of a global technology company contributing to Singapore’s manufacturing industry.

Adrian Tan, Director

Being customer-centric means first investing in our people and culture.

  • Picture1 Talent Acquisition and Retention
  • Continue to reward and provide employees with competitive remuneration packages and welfare
  • A low turnover rate of 0.90% a month.
  • Picture2 Employee Well-Being
  • Emphasis on work safety and a healthy workforce through sports, social and health-related activities.
  • Zero fatality rate.
  • Picture3 Diversity and Inclusion
  • Encourage diversity in our workforce in terms of gender, race, and age groups.
  • Whistleblowing channels are in place for employees and various stakeholders.
  • Picture4 Learning and Development Initiative
  • Technical training programmes
  • Business training
  • Leadership training
  • Train-the-trainer programmes
  • Finance training
  • Operational management training
  • Enterprise resource planning training
  • Picture5 Covid-19 Initiative
  • Re-deploying workers from sectors such as aerospace engineering to be seconded to AEM
  • Contracts for fresh graduates under the SGUnited Traineeships Programme.

Being customer-centric means first investing in our people and culture.

Talent Acquisition and Retention

  • Continue to reward and provide employees with competitive remuneration packages and welfare
  • A low turnover rate of 0.90% a month.

Employee
Well-Being

  • Emphasis on work safety and a healthy workforce through sports, social and health related activities.
  • Zero fatality rate.

Diversity and Inclusion

  • Encourage diversity in our workforce in terms of gender, race, and age groups.
  • Whistleblowing channels are in place for employees and various stakeholders.

Learning and Development Initiative

  • Technical training programmes
  • Business training
  • Leadership training
  • Train-the-trainer programmes
  • Finance training
  • Operational management training
  • Enterprise resource planning training

Covid-19 Initiative

  • Re-deploying workers from sectors such as aerospace engineering to be seconded to AEM
  • Contracts for fresh graduates under the SGUnited Traineeships Programme.

Serving the community we work and live in

In 2019, we visited Lion Home at Bishan to engage with its residents.

Healthcare staff Changi General Hospital and Sengkang General Hospital received hampers, to appreciate them for who working long hours during COVID-19.

AEM organizes annual corporate social responsibility activities for our employees to participate. COVID-19 provided both an obstacle and opportunities for us to serve the community. Although we could not organize major charitable activities; we turned to other ways to reach out to the community.

  • Picture15 Employees can donate their vacation leave to convert to cash to help colleagues who faced financial difficulties due to the pandemic.
  • Picture16 Our US teams donated masks to several places of worships.

THK Nursing Home’s elderly residents receives milk powder from our company when they were visited by former CEO Chok Yean Hung.

Serving the community we work and live in

In 2019, we  visited Lion Home at Bishan to engage with its residents.

Healthcare staff Changi General Hospital and Sengkang General Hospital received hampers, to appreciate them for who working long hours during COVID-19.

AEM organizes annual corporate social responsibility activities for our employees to participate. COVID-19 provided both an obstacle and opportunities for us to serve the community. Although we could not organize major charitable activities; we turned to other ways to reach out to the community.

Employees can donate their vacation leave to convert to cash to help colleagues who faced financial difficulties due to the pandemic.

Our US teams donated masks to several places of worships.

Accolades

Engineering Success

Commitment To Sustainability

The Report summarises AEM’s key sustainability issues, our management approach, and our related performance concerning Environment, Social and Governance topics (“ESG”) across the Company’s operations. All information shown is for the Group’s operations in Asia, Europe, North and Central Americas unless stated otherwise. The Company has chosen the Global Reporting Initiative1 (“GRI”) Standards as it is the most established international sustainability reporting standard. This Report is prepared per the GRI standards “Core” option. The Report incorporates the primary components of report content as set out by the SGX’s “Comply or Explain” requirements on sustainability reporting under Listing Rules 711A and 711B.

Read our full Annual Report 2020