CHROMA — Call Transcript 2023

Apr 27, 2023

==> picture [141 x 48] intentionally omitted <==

==> picture [323 x 112] intentionally omitted <==

2023.1Q Earnings Conference Call

Paul Ying, CFO

27[th] April, 2023

1

Disclaimer

==> picture [141 x 48] intentionally omitted <==

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.

==> picture [917 x 37] intentionally omitted <==

2

Agenda

==> picture [141 x 48] intentionally omitted <==

==> picture [720 x 456] intentionally omitted <==

----- Start of picture text -----

•
Financial Review
•
Operation Highlights
•
Q&A
----- End of picture text -----

3

==> picture [15 x 439] intentionally omitted <==

FINANCIAL REVIEW

==> picture [671 x 11] intentionally omitted <==

==> picture [917 x 37] intentionally omitted <==

4

==> picture [960 x 60] intentionally omitted <==

----- Start of picture text -----

Year 2023.1Q Condensed Consolidated Income Statement
Condensed Consolidated P&L 2023.1Q % 2022.4Q % QoQ % 2022.1Q % YoY %
----- End of picture text -----

	(In Million NTD, except for EPS in NTD)
	Net Sales	4,388	100%	6,074	100%	(28%)	4,398	100%	-
	Consolidated Sales of Testing Equipment Business	4,049	92%	5,810	96%	(30%)	3,474	79%	17%
	Consolidated Sales of MAS	283	7%	188	3%	51%	221	5%	28%
	Consolidated Sales of New Material	0	0%	0	0%	n/a	618	14%	n/a
	Others	56	1%	76	1%	(26%)	85	2%	(34%)
	Cost of Goods Sold	(1,722)	(39%)	(3,300)	(54%)	(48%)	(2,214)	(50%)	(22%)
	Gross Profit	2,666	61%	2,774	46%	(4%)	2,184	50%	22%
	Operating Expenses:
	General & Administration	(1,042)	(24%)	(1,170)	(19%)	(11%)	(946)	(22%)	10%
	Research & Development	(437)	(10%)	(549)	(10%)	(20%)	(400)	(9%)	9%
	Operating Income	1,187	27%	1,055	17%	13%	837	19%	42%
	Non-Operating Income (Expenses), net	59	1%	65	1%	(9%)	167	4%	(65%)
	Income (Loss) Before Tax	1,246	28%	1,120	18%	11%	1,004	23%	24%
	Income Tax	(283)	(6%)	(206)	(3%)	37%	(147)	(3%)	93%
	Net Income	963	22%	914	15%	5%	858	20%	12%
	Other Comprehensive Income (Losses)	(36)	(1%)	(190)	(3%)	(81%)	288	6%	n/a
	Comprehensive Income	$ 927	21%	$ 724	12%	28%	$ 1,146	26%	(19%)
	Net Income (Losses) Attributable To:
	Shareholders of the Parent	937	21%	863	14%	9%	852	19%	10%
	Noncontrolling Interests	26	1%	51	1%	(49%)	6	1%	n/a
		$ 963	22%	$ 914	15%	5%	$ 858	20%	12%
	EPS (Basic)	$ 2.23		$ 2.05		9%	$ 2.03		10%
	EPS (Diluted)	$ 2.19		$ 2.00		10%	$ 2.02		8%
										5

Balance Sheet Highlights & Financial Ratio

==> picture [141 x 48] intentionally omitted <==

Consolidated (In Million NTD)		2023. March	2022. Dec	+ / - %
Balance Sheet Highlights
Cash & Short Term Investments		5,208	6,685	-	22%
Inventory		5,096	4,753		7%
Short Term Debt		980	2,024	-	52%
Long Term Debt		607	1,165	-	48%
Shareholders Equity		19,408	21,873	-	11%
Total Assets		32,690	33,828		- 3%
Inventory Turnover (Day)		257	148
AR Turnover (Day)		83	72
AP Turnover (Day)		145	101
Net Debt to Equity (%)		Net Cash	Net Cash
ROE (%)		18%	25%
ROA (%)		11%	16%
Cash Position	2023.1Q	2022.1Q	YoY
EBITDA	1,433	1,179	22%
Cash Flow from Operation	545	809	(33%)
Free Cash Flow	13	1,164	n/a

==> picture [9 x 9] intentionally omitted <==

All ROE + ROA has been annualized.

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

6

==> picture [15 x 439] intentionally omitted <==

OPERATION

==> picture [671 x 11] intentionally omitted <==

HIGHLIGHT

==> picture [917 x 37] intentionally omitted <==

7

2023.1Q & Annual Product Mix and Consolidated Sales Breakdown

==> picture [141 x 48] intentionally omitted <==

		(Unit: Million NTD)	2023.1Q % QoQ YoY	2023.1Q % QoQ YoY
		Test Instruments & Automatic Testing System (ATS)	2,330 77% 26% 49%	7,052 52%
		Semiconductor / Photonics Test Solutions	388 13% (28%) (56%)	4,523 34%
		Turnkey Solutions	72 2% 11% (59%)	578 4%
		Service & Others	226 8% (10%) (13%)	1,308 10%
		Total of Parent Company Sales	3,016 100% 12% 5%	13,461 100%
		+ Sales from Overseas Operations & Related Subsidiaries	1,033 (67%) 70%	6,808
		Chroma Consolidated Testing Equipment Business	4,049 92% (30%) 17%	20,269 92%
		MAS Other Subsidiaries	283 7% 51% 28% 56 1% (26%) (34%)
		Consolidated Sales (Continued Business Units)	4,388 100% (28%) 16%
			0 - n/a n/a 4,388 100% (28%) -

==> picture [141 x 48] intentionally omitted <==

==> picture [202 x 203] intentionally omitted <==

==> picture [585 x 195] intentionally omitted <==

Thank You

9 Copyright © 2023 Chroma ATE Inc. All rights reserved.