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CHROMA Call Transcript 2025

Mar 18, 2025

52029_rns_2025-03-18_75c4bb23-7ccd-4c4d-be41-675feab675db.pdf

Call Transcript

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2024.4Q Earnings Conference

Paul Ying, CFO Leo Huang, Chairman & CEO

24[th] February, 2025

1

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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2

Agenda

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Corporate ProfileFinancial ReviewOperation HighlightsQ&A

3

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CORPORATE

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PROFILE

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4

Consolidated Sales Breakdown

Corporate Profile

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Consolidated Chroma Ate Sales Others Consolidated MAS Sales

  • Chroma Group founded in 1984, a world leading own

brand and design of high precision test & measurement instruments, automated test systems, intelligent manufacturing systems and test & automation turnkey solutions provider. Businesses cover test and

measurement instruments and ATS for electronics, ICT and cleantech various industries.

  • Key success: Precision, Reliability, Innovation

  • Chroma group consolidated business units of Chroma Ate Inc. and Modular Assembly System (MAS).

  • 2024 Consolidated Sales : NT$ 21.6 billion

  • 2024 Net Income: NT$ 5.3 billion

  • Chroma Group total of 3,582 employees (as end of

December, 2024)

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21,604
21,431
1%
1%
4% 4%
18,676
1%
4%
14,779
3%
13,044 5%
3%
5%
92% 92% 95% 95% 95%
2020 2021 2022 2023 2024
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* For period of 2020 ~ 2022 to exclude the Chroma New Material Corp. due to business termination.

5

Financial Performance

Consolidated Sales & Gross Margin

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Parent Company Sales / Gross Margin / RD Expenses

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Sales Revenues Gross Margin
Consolidated Sales Gross Margin
R&D Expenses R&D Expenses in % of Sales Revenues
22,067 15,652
21,604
18,676 13,461
58% 59%
17,584 12,530
15,532 10,308
52% 55%
49% 53% 53% 54%
48% 52%
9,180
Chroma HQ Employees : 2,089  (R&D 37%)
13% 13%
12% 12% 12%
1,216 1,351 1,639 1,542 1,924
2020 2021 2022 2023 2024 2020 2021 2022 2023 2024
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6

Financial Performance

ROE

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25%
24%
22%
18%
15%
2020 2021 2022 2023 2024
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Dividend

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Basic EPS Cash dividend
Payout ratio
12.49
12.14
9.96 9.45
9.00
8.00
7.00
6.60
5.56
4.50
2020 2021 2022 2023 2024
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* Cash dividend for 2024 will be paid out after resolution of AGM

7

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FINANCIAL REVIEW

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8

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Year 2024.4Q Condensed Consolidated Income Statement

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Condensed Consolidated P&L 2024.4Q % 2024.3Q % QoQ % 2023.4Q % YoY %
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2024.4Q
%
2024.4Q
%
(In Million NTD, except for EPS in NTD)
Net Sales 6,039
100%
5,632
100%
7%
5,025
100%
20%
Consolidated Sales of Testing Equipment Business 5,755
95%
5,170
92%
11%
4,913
98%
17%
Consolidated Sales of MAS 211
4%
384
7%
(45%)
44
1%
380%
Others 73
1%
78
1%
(6%)
68
1%
7%
Cost of Goods Sold (2,432)
(40%)
(2,326)
(41%)
5%
(2,446)
(49%)
(1%)
Gross Profit 3,607
60%
3,306
59%
9%
2,579
51%
40%
Operating Expenses:
General & Administration
Research & Development
(1,364)
(23%)
(684)
(11%)
(1,290)
(23%)
6%
(1,094)
(22%)
25%
(508)
(9%)
35%
(451)
(9%)
52%
Operating Income 1,559
26%
1,508
27%
3%
1,034
20%
51%
Non-Operating Income (Expenses), net 380
6%
237
4%
60%
(16)
-
n/a
Income (Loss) Before Tax
Income Tax
1,939
32%
(403)
(7%)
1,745
31%
11%
1,018
20%
90%
(295)
(5%)
37%
(193)
(4%)
109%
Net Income 1,536
25%
1,450
26%
6%
825
16%
86%
Net Income (Losses) Attributable To:
Shareholders of the Parent
Noncontrolling Interests
1,476
24%
60
1%
1,426
25%
4%
799
16%
85%
24
1%
150%
26
-
131%
$ 1,536
25%
$ 1,450
26%
6%
$ 825
16%
86%
EPS (Basic) $ 3.49 $ 3.39
3%
$ 1.89
85%
EPS (Diluted) $ 3.45 $ 3.36
3%
$ 1.87
85%

9

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Year 2024 Condensed Consolidated Income Statement

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Condensed Consolidated P&L 2024 % 2023 % YoY %
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2024
%
2024
%
(In Million NTD, except for EPS in NTD)
Net Sales 21,604
100%
18,676
100%
16%
Consolidated Sales of Testing Equipment Business 20,419
95%
17,787
95%
15%
Consolidated Sales of MAS 872
4%
658
4%
33%
Others 313
1%
231
1%
35%
Cost of Goods Sold (8,858)
(41%)
(7,919)
(42%)
12%
Gross Profit 12,746
59%
10,757
58%
18%
Operating Expenses:
General & Administration
Research & Development
(5,065)
(23%)
(2,199)
(11%)
(4,327)
(23%)
17%
(1,757)
(10%)
25%
Operating Income 5,482
25%
4,673
25%
17%
Non-Operating Income (Expenses), net 1,226
6%
493
3%
149%
Income (Loss) Before Tax
Income Tax
6,708
31%
(1,308)
(6%)
5,166
28%
30%
(1,070)
(6%)
22%
Net Income 5,400
25%
4,096
22%
32%
Net Income (Losses) Attributable To:
Shareholders of the Parent
Noncontrolling Interests
5,264
24%
136
1%
3,979
21%
32%
117
1%
16%
$ 5,400
25%
$ 4,096
22%
32%
EPS (Basic) $ 12.49 $ 9.45
32%
EPS (Diluted) $ 12.38 $ 9.37
32%

10

Balance Sheet Highlights & Financial Ratio

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Consolidated
(In Million NTD)
Balance Sheet Highlights
Cash & Short Term Investments
Inventory
Short Term Debt
Long Term Debt
Shareholders Equity
2024. Dec
2023. Dec
+ / - %
5,040
4,794
5%
5,458
4,675
17%
1,417
2,136
- 34%
2,108
990
113%
25,450
22,517
13%
Total Assets 37,308
33,482
11%
Inventory Turnover (Day)
AR Turnover (Day)
AP Turnover (Day)
Net Debt to Equity (%)
209
217
87
87
118
128
Net Cash
Net Cash
ROE (%) 22%
18%
ROA (%) 15%
12%
Cash Position
EBITDA
Cash Flow from Operation
2024
2023
YoY
7,528
5,973
26%
4,784
3,408
40%
Free Cash Flow 2,893
2,014
44%

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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)

11

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OPERATION

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HIGHLIGHT

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12

2024.4Q & Annual Product Mix and Consolidated Sales Breakdown

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(Unit: Million NTD) 2024.4Q
%
QoQ
YoY
2024
%
YoY
2023
%
Test Instruments & Automatic Testing
System (ATS)
1,687
40%
(3%)
12%
6,825
44%
(16%)
8,078
64%
Semiconductor / Photonics Test Solutions 2,086
50%
14%
141%
6,974
45%
135%
2,963
24%
Turnkey Solutions 146
3%
39%
(15%)
685
4%
51%
454
4%
Service & Others 275
7%
(15%)
(25%)
1,168
7%
13%
1,035
8%
Total of Parent Company Sales 4,195
100%
5%
45%
15,652
100%
25%
12,530
100%
+ Sales from Overseas Operations &
Related Subsidiaries
1,560
31%
(22%)
4,767
(9%)
5,257
Chroma Consolidated Testing Equipment
Business
5,755
95%
11%
17%
20,419
95%
15%
17,787
95%
MAS
Other Subsidiaries
211
4%
(45%)
380%
73
1%
(6%)
7%
872
4%
33%
658
4%
313
1%
35%
231
1%
Consolidated Sales 6,039
100%
7%
20%
21,604
100%
16%
18,676
100%

13

Year 2025 Guidance

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In year 2024, Chroma total consolidated sales revenues of continuously operating businesses hit record high, reached 21.6 billion NTD, which presented a growth of 16% YoY. The Parent Company sales also hit record high reached 15.6 billion, presented a growth of 25% YoY. Semiconductor sector was the major growth driver, presented an increase of 135% YoY.

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Year 2025 Business Outlook:

  • ✓ The growth driver in 2025 will be mainly coming from semiconductor / photonics sector.

  • ✓ Qualified Metrology equipment for Advanced Packaging will start generating meaningful sales

  • revenues from 2025.

  • ✓ AI / HPC, new Auto / Gaming chips and capacity ramp from ASIC makers are key drivers for SLT demand.

  • ✓ The Test Instruments & ATS for power testing solutions start to bottom up.

  • ✓ New designed Turnkey Solution for AR glasses has been launched from second half of last year,

  • and will continue to deliver in 2025.

14

Green Revenue - Parent

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2023

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2024

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51.7% 48.3%
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Green Revenue General

Note: Revenues are classified according to FTSE Russell’s Green Revenues Classification System (GRCS).

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Technology & Solution Milestones High Precision Test Solutions

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Semiconductor Test Solutions

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3650-S2
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3380 MXADO
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768pin
• 12 slots
Designed for High Quality Audio Testing

15kVA • 8 WG and 8 WD channels

Floating •
6Vpp audioband
• LB electronics •
High-performance bandwidth: 100kHz

IC: SiC/Power/logic
(WG) and 22kHz (WD)
Applications:

Wired/wireless/Bluetooth audio devices,
headphones, speakers
2023 2024 2025
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2025
3650-S2 HTMU
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3680 HDRF2
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  • Internally Integrated

Advanced Performance for Timing Test

  • One-touch engagement

  • 4 Vector Signal Transceivers

  • 16 channels

  • 32 RF ports

  • High precision with nSeclevel accuracy

  • 6Ghz Software Defined Radio

  • 200Mhz bandwidth

    • Supports multiple testing modes

    • Applications:

  • Supports various protocols: Bluetooth

  • 5.2, Wi-Fi 6, LoRa, GPS

  • PMIC, industrial control chips, logic chips

IC: SiC / Power / Logic / Wireless

Semiconductor Measurement Solutions

7980

2D/3D Metrology Measurement System

7981

2D/3D Metrology Measurement System

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2D/3D Metrology

  • XY / Z Resolution: 30nm / 0.05nm

  • Sensor: BLiS Technology

  • Light Source: Multiple Light Sources

  • Applications:

  • ✓ Probe Mark

  • ✓ 3D Surface Profile

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2D/3D Metrology

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OVL
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  • XY / Z Resolution: 30nm / 0.05nm

  • Sensor: BLiS Technology

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  • Light Source: Multiple Light Sources

  • Applications:

  • ✓ RDL: ≧ 2 μm, AR3

  • ✓ TSV: ≧ 5 μm, AR15

  • ✓ OVL ≦ 0.2 μm

  • ✓ 8”, 12” Si Wafers

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2025
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2023 2024 2025
Advanced Packaging: InFO, CoWoS, 3D IC
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BLiS: Broadband Light integrated System Muti-Sensors with different functions are integrated.

IC System Level Test Solutions

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Temperature-forcing Systems

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  • -40℃~ +150℃ ​@Tc

  • • Up to 1,200W power dissipation

  • 2021 2023

  • -70℃~ +150℃ ​@Tc

  • • Up to 1,000W power dissipation

2024

  • -40℃~ +150℃ ​@Tc

  • • Up to 2,900W power dissipation 2025

Hybrid Tri-temp Test Handler ENG Single Site Test Module

FT & SLT Hybrid Test System

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  • 3x3~120x120mm

  • -70 ~ +150℃ @Tc, up to 1.2kw dissipation

  • 500 kgf contact

  • TSD (Tj) available

Model 3110 Gen2

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  • 3x3~120x120mm

  • -40 ~ +150℃ @Tc, up to 1.8kw dissipation

  • • 500 kgf contact

  • TSD (Tj) available

Model 3210

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  • 5x5~120x120mm

  • 4~24 sites

  • -40 ~ +150℃ @Tc, up to 1.5kw/site dissipation

  • 500 kgf/site contact

  • TSD (Tj) available

  • Warpage detection

  • OHT integration

Model 3200

Advanced packaging of AI/HPC, automotive, IoT, cloud, network and data center chips

Photonics Test/AOI Solutions – Quartz Crystal Wafer

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Test requirement trend:

  • ➢ Higher frequency

  • ➢ Thinner die thickness

  • ➢ Smaller die size and pad pitch

Frequency: <220MHz Die thickness: >7.6µm Die size: >0.7mmX0.6mm

2023 2024

Crystal Wafer Probing System

In-process Wafer Inspection System

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Model 58216 (250B VNA) Frequency: 220MHz Min. die pitch: 0.4mm

Model 7945 Depth of focus at 2X mag.: 90µm Min. die size: 0.075mmX0.075mm

Frequency: 300MHz Die thickness: 5.5µm Die size: 0.5mmX0.5mm

2025

Crystal Wafer Frequency Sorter

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Model 58217 Frequency :300 MHz Hardware Bin Number: 10 bins

Consumer/Automotive Sensing, LiDAR

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SiPh (Silicon Photonics) Active Components Burn-In Solutions

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Active SiPh Device LASER
Input coupler
Burn-In MICRO-
RING
Optical modulator
RESONATOR
PHOTODIODE
Optical waveguide
Couplers
Photonic crystal
Optical fiber
Reliability Test Series
DUT: SiPh Device
58604 Series 58606 Series
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Reliability Test Series

SiPh Electrical Test

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Model Optical & + 58604C Thermal Rack

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  • ° °

  • • 125 C / 200 C

  • °

  • • 200 C

  • ± 7 V / ± 7.5 V

  • ± 80 V

  • ± 500 mA

  • ± 2 mA

  • 1,792 channels

  • 1,792 channels

  • 1 nA meas. Res.

Light-feeding with Laser Source Module

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Co-Packaged Optics (CPO) Assembly & Sorting Solution

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OUTPUT
Optical Engines
Switch
ASIC
Rack
ASIC
CPO modules
deployed in switches
ASIC
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INPUT
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Optical Engines Fiber Array Unit
➔ ➔ ➔
FAU & EPIC Alignment Gel Dispensing UV Curing Binning
ASIC
Optical Engines
Model 58623
Photonics IC Assembly and Sorting System
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  • Auto FAU miniMT plug in/out

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ASIC
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  • Auto Passive + Active alignment

  • Auto gel dispensing + UV curing

  • Auto Binning

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Data Center
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  • Tier-1 High throughput solution in the market

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Technology & Solution Milestones High Power Test Solutions

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Power Electronics Test Solutions

Regenerative AC Load

Regenerative DC Load

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Model 63800R Series

  • Programmable AC Load with energy regen

  • High Power Density: 15kW/3UH, Eff:90%

  • 9kW-15kW, 350VLN

Model 63700 Series

  • Programmable DC Load with energy regen

  • High Power Density: 18kW/3UH, Eff:93%

  • 18kW, 600/1200/1800V

2022

2023

2024 2025

Regenerative Grid Simulator

Bidirectional DC Power Supply

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Model 61800-100HV

  • High power AC source with energy regen

  • Optional regen AC Load

  • Parallel up to 1MVA

  • 105kVA, 500VLN-800VLN

Model 62000D-HL Series

  • 8x Wide Range Output Dual Output Range ‒ High range: 2000V/480A/360kW ‒ Low range: 650V/1440A/360kW

  • High power density

  • Battery & Fuel Cell & Solar array simulation

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Server PSU, BBU Testing & EV Power Electronics, Green Energy (PV, ESS, PCS, Battery/Fuel Cell), Battery Storage

Battery Cell Test Solutions

High Power xEV Cell Test Solution

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High Power
xEV Cell Test Solution
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Battery Reliability Test System Model 17010H

Battery Reliability Test System Model 17010H

  • 6V, 300A,

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• 6V, 200A
• 600A (peak current) • 300A (peak current)
2023 2024 2025
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Auxiliary Measurement Solution

DVA Cell Test Solution

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Multi-channel voltage/temperature

Data Logger Model A172013/A172014

Ultra-high precision CDC

Prog. Charge/Discharge Tester Model 17208M-5-12C

  • 5V, 12A

Battery Cell/Lithium-ion Capacitor/Super Capacitor

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Battery Module/Pack Test Solutions

Regenerative Battery Pack Test System

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Model 17020E

  • 10kW, 60V

  • • 10kW, 100V • 10kW, 200V

Applications:

  • E-Scooter battery pack

  • • E-vehicle battery module

  • 2022 2024 2025

Regenerative Battery Pack Test System

Regenerative Battery Pack Test System

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Model 17040

  • 300kW 1000V 750A

  • 360kW 1000V 900A

  • 500kW 1000V 1200A

  • 600kW 1000V 1500A

Applications:

  • E-vehicle battery pack

Model 17040E

  • 200kW 1700V 400A

  • 200kW 850V 600A

Applications:

  • E-vehicle battery pack

  • ESS battery pack

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  • ESS battery pack

Battery Module/ Pack

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Turnkey Solution NED Test and Automation Turnkey Solution

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AR Glass & Automation Solutions

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+
Light Engine Sub Module
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Waveguide

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Waveguide/Eyepiece Projector Precision Assembly/
IQ Test System IQ Test System Testing System
Model 5742-F Model 5742-B Model 5742-A
• OMM: PA Alignment • Auto Contact • OMM: PA/ AA Alignment
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  • Projector: Light Source Simulation

  • OMM: BS AA Alignment

  • Precision Assembly

  • Auto Rx lens Changer

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Sub Module Sub Module
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Sub Module
IQ Test System
Model 5742-C
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  • OMM: PA Alignment

  • Projector: Light Source Simulation

  • Auto Rx lens Changer

Note: All the above equipment apply Chroma Colorimeter to proceed Image Quality Test

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