CHROMA — Call Transcript 2023

Nov 6, 2023

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2023.3Q Earnings Conference Call

Paul Ying, CFO

31[st] October, 2023

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Disclaimer

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This presentation contains some forward-looking statements that are subject to substantial risks and uncertainties. Typically, these statements contain words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “plan”, “forecast”, “project”, “predict”, “potential”, “continue”, “may”, “should”, “will”, and “would” or similar words. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events, and actual results may differ materially from those expressed or implied by such statements. The forward-looking statements in this presentation include, but are not limited to, growth rates for various markets estimated by third party sources, future products and technology development, widespread market acceptance of the hosted delivery model, future revenue growth and profitability. You should be cautioned that the forward-looking statements are no guarantee of our future performance. The forward-looking statements contained in this presentation are made only as of the date of this presentation and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law.

This presentation and the information contained herein are the property of Chroma Ate Inc.

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Agenda

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•
Financial Review
•
Operation Highlights
•
Q&A
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FINANCIAL REVIEW

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Year 2023.3Q Condensed Consolidated Income Statement
Condensed Consolidated P&L 2023.3Q % 2023.2Q % QoQ % 2022.3Q % YoY %
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	Condensed Consolidated P&L	2023.3Q	%	2023.2Q	%	QoQ %	2022.3Q	%	YoY %
	(In Million NTD, except for EPS in NTD)
	Net Sales	4,847	100%	4,416	100%	10%	6,660	100%	(27%)
	Consolidated Sales of Testing Equipment Business	4,627	96%	4,198	95%	10%	6,341	95%	(27%)
	Consolidated Sales of MAS	165	3%	167	4%	(1%)	233	4%	(29%)
	Others	55	1%	51	1%	8%	86	1%	(36%)
	Cost of Goods Sold	(2,084)	(43%)	(1,666)	(38%)	25%	(3,163)	(47%)	(34%)
	Gross Profit	2,763	57%	2,750	62%	-	3,497	53%	(21%)
	Operating Expenses:
	General & Administration	(1,088)	(22%)	(1,103)	(25%)	(1%)	(1,192)	(18%)	(9%)
	Research & Development	(437)	(9%)	(433)	(10%)	-	(524)	(8%)	(17%)
	Operating Income	1,238	26%	1,214	27%	2%	1,781	27%	(30%)
	Non-Operating Income (Expenses), net	307	6%	144	3%	113%	475	7%	(35%)
	Income (Loss) Before Tax	1,545	32%	1,358	30%	14%	2,256	34%	(32%)
	Income Tax	(291)	(6%)	(304)	(6%)	(4%)	(491)	(7%)	(41%)
	Net Income	1,254	26%	1,054	24%	19%	1,765	27%	(29%)
	Other Comprehensive Income (Losses)	280	6%	(11)	-	n/a	229	3%	22%
	Comprehensive Income	$ 1,534	32%	$ 1,043	24%	47%	$ 1,994	30%	(23%)
	Net Income (Losses) Attributable To:
	Shareholders of the Parent	1,225	25%	1,018	23%	20%	1,731	26%	(29%)
	Noncontrolling Interests	29	1%	36	1%	(19%)	34	1%	(15%)
		$ 1,254	26%	$ 1,054	24%	19%	$ 1,765	27%	(29%)
	EPS (Basic)	$ 2.91		$ 2.42		20%	$ 4.11		(29%)
	EPS (Diluted)	$ 2.89		$ 2.42		19%	$ 4.07		(29%)
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6 Year 2023.1~3Q Condensed Consolidated Income Statement Condensed Consolidated P&L (In Million NTD, except for EPS in NTD) 2023.1~3Q % 2022.1~3Q % YoY % Net Sales 13,652 100% 15,994 100% (15%) Consolidated Sales of Testing Equipment Business 12,875 94% 14,459 90% (11%) Consolidated Sales of MAS 615 5% 642 4% (4%) Consolidated Sales of New Material 0 0% 635 4% n/a Others 162 1% 258 2% (37%) Cost of Goods Sold (5,473) (40%) (7,410) (46%) (26%) Gross Profit 8,179 60% 8,584 54% (5%) Operating Expenses: General & Administration (3,233) (24%) (3,231) (20%) - Research & Development (1,307) (10%) (1,368) (9%) (4%) Operating Income 3,639 27% 3,985 25% (9%) Non-Operating Income (Expenses), net 509 3% 1,337 8% (62%) Income (Loss) Before Tax 4,148 30% 5,322 33% (22%) Income Tax (878) (6%) (1,014) (6%) (13%) Net Income 3,270 24% 4,308 27% (24%) Other Comprehensive Income (Losses) 233 2% 679 4% (66%) Comprehensive Income $ 3,503 26% $ 4,987 31% (30%) Net Income (Losses) Attributable To: Shareholders of the Parent 3,180 23% 4,243 27% (25%) Noncontrolling Interests 90 1% 65 - 38% $ 3,270 24% $ 4,308 27% (24%) EPS (Basic) $ 7.56 $ 10.09 (25%) EPS (Diluted) $ 7.50 $ 10.01 (25%) 2022/2Q included the gain from disposal of investment (ADLINK) of NTD 414 million plus revert the gain from disposal of property to ADLINK of NTD 90m.

Balance Sheet Highlights & Financial Ratio

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Consolidated (In Million NTD)		2023. Sept	2022. Dec	+ / - %
Balance Sheet Highlights
Cash & Short Term Investments		5,107	6,685	-	24%
Inventory		5,182	4,753		9%
Short Term Debt		3,564	2,024		76%
Long Term Debt		511	1,165	-	56%
Shareholders Equity		22,058	21,873		1%
Total Assets		34,170	33,828		1%
Inventory Turnover (Day)		245	148
AR Turnover (Day)		91	72
AP Turnover (Day)		140	101
Net Debt to Equity (%)		Net Cash	Net Cash
ROE (%)		19%	25%
ROA (%)		12%	16%
Cash Position	2023.1~3Q	2022.1~3Q	YoY
EBITDA	4,719	5,869	(20%)
Cash Flow from Operation	1,911	2,681	(29%)
Free Cash Flow	1,192	2,597	(54%)

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All ROE + ROA has been annualized.

Free Cash Flow = Net Cash Provided by Operating Activities + (Net Cash used by Investing Activities)

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OPERATION

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HIGHLIGHT

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2023.3Q & 1~3Q Annual Product Mix and Consolidated Sales Breakdown

		(Unit: Million NTD)	2023.3Q % QoQ YoY 2023.1~3Q % YoY	2022 %
		Test Instruments & Automatic Testing System (ATS)	1,938 59% (16%) (5%) 6,578 68% 26%	7,052 52%
		Semiconductor / Photonics Test Solutions	1,072 33% 70% (35%) 2,098 22% (47%)	4,523 34%
		Turnkey Solutions	66 2% (54%) 12% 283 3% (45%)	578 4%
		Service & Others	194 6% (22%) (55%) 669 7% (37%)	1,308 10%
		Total of Parent Company Sales	3,270 100% (2%) (22%) 9,628 100% (10%)	13,461 100%
		+ Sales from Overseas Operations & Related Subsidiaries	1,357 59% (37%) 3,247 (12%)	6,808
		Chroma Consolidated Testing Equipment Bi	4,627 96% 10% (27%) 12,875 94% (10%)	20,269 92%
		usness MAS Other Subsidiaries	165 3% (1%) (29%) 615 5% (4%) 55 1% 8% (36%) 162 1% (37%)	830 4% 333 1%
		Consolidated Sales (Continued Business Units)	4,847 100% 10% (27%) 13,652 100% (11%)	21,432 97%
		New Material – Discontinued Business Consolidated Sales	0 - n/a n/a 0 - n/a 4,847 100% 10% (27%) 13,652 100% (15%)	635 3% 22,067 100%

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Thank You

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