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CHROMA ATE INC.

2014.4Q Investor Conference

Paul Ying, CFO Leo Huang, Chairman & CEO

12[th] February, 2015

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1
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Disclaimer

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 forwardlooking 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.

Agenda

Corporate Profile
• Financial Review
• Operation Highlights
• Q&A

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CORPORATE PROFILE

Corporate Profile

Chroma Group founded in 1984, a world leading

own brand turnkey test & automation solution provider, specialized in electronics test and measurement instruments and ATS (auto test system). Businesses cover test and measurement instruments and ATS for various industries, and a turnkey solution as an integration of Test and Measurement , Automation and MES (manufacturing execution system).

Key success: Precision, Reliability, Innovation

• Chroma group encompass business unit of Chroma Ate Inc., Modular Assembly System (MAS) and Chroma New Material Corp (CNMC).

2014 Consolidated Sales : NT$10.31 billion
2014 Net Income: NT$1.32 billion
Chroma Group total of 2,268 employees (as Dec, 2014)

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Consolidated Chroma Ate Sales Others
Consolidated CNMC Sales
Consolidated MAS Sales
14,886
14,148
11%
8%
11,644
5% 10,307
10,171
7%
47% 48%
15%
48% 29%
34%
40% 41% 44% 47% 60%
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2010 2011

2012 2013 2014

Financial Performance

Consolidated Sales

Gross Margin

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Sales Revenues Gross Margin R&D Expenses R&D Expenses in % of Sales Revenues

Parent Only

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Consolidated
14,886
5,640 55%
54% 54%
14,148
5,338
55% 5,135
52%
11,644 37% 39%
4,174
3,926
10,307
10,171
29% 29%
28%
16%
15% 15%
12%
11%
755
603 630 637 631
Chroma Employees ： 1,394  (R&D 39%)
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
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Financial Performance

ROE

Dividend

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EPS Cash dividend
Stock dividend
5.05
25%
Payout ratio
4.06
19% 3.80
3.51
3.21
15%
14%
2.52 2.60
2.50 2.50
12%
2.00
0.40
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2010 2011 2012 2013 2014
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2010 2011 2012 2013 2014

Chroma Global Network

Global Employees ： 2,268  , Branch Offices x16, Distributors x65, Subsidiaries x6

Europe : Netherlands

US : Hong Kong : Neworld Irvine / Foothill Ranch, CA Tempe, AZ Japan: Shin Yokohama

China : Shenzhen / Dongguan / Xiamen / Suzhou

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FINANCIAL REVIEW

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Year 2014 Condensed Consolidated Income Statement

	Condensed Consolidated P&L (In Million NTD, except for EPS in NTD)		2014 %		10 10 2013 % YoY % 10,171 100% 1% 4,779 47% 29% 1,540 15% (56%) 3,409 34% (13%) 443 4% 6% (6,420) (63%) (2%) 3,751 37% 8% (1,868) (18%) 7% (714) (7%) 16% 1,169 12% 4% 249 2% 21% 1,418 14% 7% (238) (2%) (5%) 1,180 12% 10% 287 2% n/a $ 1,467 14% (12%) 1,205 12% 9% (25) - - $ 1,180 12% 10% $ 3.21 9%
	Net Sales		10,307 100%
	Consolidated Sales of Testing Business		6,175 60%
	Consolidated Sales of MAS		680 7%
	Consolidated Sales of New Material		2,983 29%
	Others		469 4%
	Cost of Goods Sold		(6,261) (61%)
	Gross Profit		4,046 39%
	Operating Expenses: General & Administration Research & Development		(1,996) (19%) (831) (8%)
	Operating Income		1,219 12%
	Non-Operating Income (Expenses), net		302 3%
	Income (Loss) Before Tax Income Tax		1,521 15% (227) (2%)
	Net Income		1,294 13%
	Other Comprehensive Income (Losses)		4 -
	Comprehensive Income		$ 1,298 13%
	Net Income (Losses) Attributable To: Shareholders of the Parent Noncontrolling Interests		1,316 13% (22) -
			$ 1,298 13%
	EPS (Basic)		$ 3.51

Balance Sheet Highlights & Financial Ratio

Consolidated (In Million NTD) Balance Sheet Highlights Cash & Short Term Investments Inventory Short Term Debt Long Term Debt Shareholders Equity		2014. Dec 4,129 1,605 423 2,488 9,391	2013. Dec + / - % 2,364 75% 1,531 5% 794 - 47% 819 n/a 8,717 8%

Total Assets		14,968	12,768 17%
Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%)		91 108 76 -	88 102 86 -
ROE (%)		14%	15%
ROA (%)		9%	10%
Cash Position EBITDA Cash Flow from Operation	2014 1,854 1,228	2013 1,745 940	YoY 6% 31%
Free Cash Flow	(407)	(262)	55%

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All ROE + ROA has been annualized.

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

11 11

Quarterly Highlights

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Sales Revenues Gross Margin
Operating Margin
1,604
1,345
1,249
56% 57%
56%
54% 53% 55% 53% 51%
1,072
1,033
1,001 937
821
24%
23%
21%
18% 19% 18%
17%
16%
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2014.4Q Key Points

Sales Revenue: $ 1,345 million,

down 16% QoQ, up 30% YoY

Gross Margin: 51%
Operating Margin: 16%
Net Income: NT$ 319 million,
down 35% QoQ, up 13% YoY
2014.4Q Highlights:
The fourth quarter sales revenues

mainly contributed from Test

Measurements and ATS, and

Semiconductor Test Solutions.

2013.1Q 2013.2Q 2013.3Q 2013.4Q 2014.1Q 2014.2Q 2014.3Q 2014.4Q

12 12

Year 2014.4Q Condensed Income Statement

Condensed P&L– Parent Only (In Million NTD, except for EPS in NTD)	2014.4Q %	2014.3Q % QoQ %	2013.4Q % YoY %
Net Sales	1,345 100%	1,604 100% (16%)	1,033 100.0% 30%
Cost of Goods Sold	(664) (49%)	(752) (47%) (12%)	(490) (47%) 36%
Gross Profit	681 51%	852 53% (20%)	543 53% 25%
Operating Expenses: General & Administration Research & Development	(259) (19%) (213) (16%)	(268) (17%) (3%) (202) (13%) 5%	(198) (19%) 31% (167) (17%) 28%
Operating Income	209 16%	382 23% (45%)	178 17% 17%
Non-Operating Income (Expenses), net	142 10%	168 11% (15%)	134 13% 6%
Income (Loss) Before Tax	351 26%	550 34% (36%)	312 30% 13%
Income Tax	(32) (2%)	(63) (4%) (49%)	(30) (3%) 7%
Net Income	$ 319 24%	$ 487 30% (35%)	$ 282 27% 13%
Other Comprehensive Income	102 7%	(65) (4%) n/a	111 11% (8%)
Comprehensive Income	$ 421 31%	$ 422 26% -	$ 393 38% 7%
EPS (Basic)	$ 0.85	$ 1.30 (35%)	$ 0.75 13%

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Non-operating Income included 100% owned subsidiaries’ income - New Material: 19m (QoQ ↑ 19%, YoY ↑ 27%), MAS: 31m (QoQ ↓ 44%, YoY ↓ 54%, ).

13 13

Year 2014 Condensed Income Statement

Condensed P&L– Parent Only (In Million NTD, except for EPS in NTD)	2014 %	2013 % YoY %
Net Sales	5,135 100.0%	3,926 100% 31%
Cost of Goods Sold	(2,382) (46%)	(1,772) (45%) 34%
Gross Profit	2,753 54%	2,154 55% 28%
Operating Expenses: General & Administration Research & Development	(948) (18%) (755) (15%)	(781) (20%) 21% (631) (16%) 20%
Operating Income	1,050 21%	742 19% 42%
Non-Operating Income (Expenses), net	432 8%	563 14% (23%)
Income (Loss) Before Tax	1,482 29%	1,305 33% 14%
Income Tax	(165) (3%)	(100) (2%) 65%
Net Income	$ 1,316 26%	$ 1,205 31% 9%
Other Comprehensive Income	2 -	286 7% n/a
Comprehensive Income	$ 1,318 26%	$ 1,491 38% (12%)
EPS (Basic)	$ 3.51	$ 3.21 9%

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Non-operating Income included 100% owned subsidiaries’ income - New Material: 64m (YoY ↑ 36%), MAS: 115m (YoY ↓ 68%).

14 14

Balance Sheet Highlights & Financial Ratio

Parent Only (In Million NTD) Balance Sheet Highlights Cash & Short Term Investment Inventory Short Term Debt Long Term Debt Shareholders Equity		2014. Dec 2,168 1,257 151 2,361 9,271	2013. Dec 406 1,174 630 700 8,578	+ / - % n/a 7% - 76% n/a 8%
Total Assets		13,290	10,989	21%
Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%)		186 141 71 5%	231 149 84 11%
ROE (%)		15%	15%
ROA (%)		11%	12%
Cash Position EBITDA Cash Flow from Operation	2014.4Q 397 187	2014.3Q 594 (4)	QoQ (33%) n/a	2014.A YoY 1,650 13% 823 33%
Free Cash Flow	412	297	39%	(484) n/a

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All ROE + ROA has been annualized.

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

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OPERATION HIGHLIGHT

Chroma Ate Inc. Sales Breakdown By Testing Solution

(Unit: Million NTD) Test Instruments & ATS Semiconductor Test Solutions Turnkey Solutions Service & Others		2014.4Q % 810 60% 291 22% 179 13% 65 5%		2014.3Q % QoQ 781 49% 4% 376 23% (23%) 407 25% (56%) 40 3% 63%	2013.4Q % YoY 623 60% 30% 170 16% 71% 199 19% (10%) 41 4% 59%
Total		1,345 100.0%		1,604 100.0% (16%)	1,033 100.0% 30%

17 17

Chroma Ate Inc. Sales Breakdown By Testing Solution

(Unit: Million NTD) Test Instruments & ATS Semiconductor Test Solutions Turnkey Solutions Service & Others	2014 % 2,919 57% 1,084 21% 936 18% 196 4%	2013 % YoY 2012 % 2,547 65% 15% 2,793 67% 824 21% 32% 695 17% 367 9% 155% 423 10% 188 5% 4% 263 6%
Total	5,135 100.0%	3,926 100.0% 31% 4,174 100.0%

18 18

Consolidated Sales Breakdown by Quarter

(Unit: Million NTD) Chroma Ate. Inc. included overseas affiliates MAS New Material Others		2014.A % YoY 6,175 60% 29% 680 7% (56%) 2,983 29% (13%) 469 4% 6%		2014.4Q % 1,667 64% 201 8% 623 24% 116 4%	2014.3Q % QoQ YoY 1,951 63.6% (15%) 29% 208 6.8% (3%) (38%) 781 25.5% (20%) (12%) 126 4.1% (8%) 9%
Consolidated Sales		10,307 100.0% 1%		2,607 100.0%	3,066 100.0% (15%) 7%

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Year 2015 Guidance

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In the year 2014, the Chroma parent sales revenues presented a growth of 31% YoY. This was mainly contributed from Turnkey Solutions which represented a strong growth of 155% YoY and Semiconductor Test Solutions, a consecutively annual growth of 32%, while Test Instruments & ATS also increased 15% compared to year 2013. Industrial Automation (IA) remains strong, the Company expected IA related businesses (Turnkey Solutions + MAS) to reach 20%+ of the group consolidated sales in year 2015 compared to 16% in 2014. Corporate strength in testing solutions and system integration enhance the penetration in IoT devices market. This would be the key driver in the near future.

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Corporate Growth Strategy

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(NT$ Million)
6,000
5,000
Turnkey Solutions
Semiconductor Test Solutions
4,000
Test Instruments & ATS
Others
3,000
2,000
1,000
1984
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21 21

Application Roadmap

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Emerging Industries Smart Factory Internet of Things

Growth Engines

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LED
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Photovoltaic
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Electric Vehicle
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Battery
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Power Passive Internet/
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Niche Market Niche Product

22 22

Test Solutions

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FPD/
Video &
Color
Optical Power
Devices Electronics
Passive
Turn- Component
Battery &
Electrical
Key
Safety
Solution
Provide
r
Semi-
Electric
conductor
Vehicle
/ IC
Photo- LED/
voltaic Lighting
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Turnkey Solutions for Smart Factory

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24 24

Turnkey Solutions in Smart Factory Application

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Automation Integration
Test & Manufacturing
Measurement Execution Sys.
3C Device Automatic Testing
Battery Pack Automatic Assembly
Passive Component Testing & Packing
LED Lighting Auto Assembly & Testing
Battery Cell Formation
Photovoltaic Automatic Testing & Sorting
Flat Panel Display Burn-in & Testing
IC (CIS) Automatic Testing & Sorting
2008 2009 2010 2011 2012 2013 2014 2015 2016
Solutions
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IoT Test Solutions

26 26

Semiconductor Testing in IoT Application

Sensor Layer Wireless MCU PMIC Sensors Applications • Connectivity (WiFi, • MCU • LDO • CIS Bluetooth, GPS) • MCU + ADDA • Regulators • Light Sensors
• Mobile (GSM, • MCU + E-MEM • DC/DC • Compass WCDMA, LTE) • MCU + RF • AC/DC • M Sensors
• PA / FEM • MCU + PMIC • PMIC • G Sensors
DUT • TV / FM Tuner • LED Driver • Gyro • Integrated Power • RF ID/Smart Card MOS • Temperature Sensor
• Motor Drive
PXI RF System
Test 36XX / 33xx Series 36XX Series 33XX Series
Solutions 3240Q RF IC Handler 3380P + 3270
31XX series VI45/PVI100 Integrated Solution
Adivic MP5800

27 27

Optical Device & Wireless Testing In IoT Application

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Network Layer
Wafer Package Wireless
Applications
● VCSEL ● TO-CAN ● WiFi
● EEL ● TOSA ● Bluetooth
● Photo Diode ● ROSA ● GPS
DUT ● BOSA ● LTE
● CoC
● CoS
Wireless Communication
Test System
TO-CAN package
Inspection System
Test Burn-In system VCSEL Tester
Bluetooth Tester
TO-CAN Laser Diode
Solutions Burn-In system
Wireless Test Station
GPS Simulator
Double Sides Wafer
Laser Diode
Inspection System
Characterization System
RF Recorder/Player
28
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Test Instruments & ATS in Wearable Device Application

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Adaptor/Charger ATS HF LCR Meter
Impulse Winding Tester
(Model: 11050)
(Model: 19301A)
(Model: 8020)
Electronic
Power Adaptor
Component/ Module
LCM Tester
WiFi /BT /LTE Testers
PXI RF System
(Model: 040200)
Wireless Chipset
( 52400 Series) Display Module
FPD AOI System
Bluetooth Tester
Battery/Coin Cell
(Model: MP2S01)
Batter Cell Tester
RF IC Handler
(Model: 7661)
(Model: 3240Q) (Model: 17011) 29
29
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www.chromaate.com

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let’s make a better world Thank You!

30 30

AI assistant

CHROMA Interim / Quarterly Report 2014

52029_rns_2015-02-12_9d735242-c9d7-47b8-9a81-f82fc328427d.pdf

Disclaimer

Agenda

CORPORATE PROFILE

Corporate Profile

Financial Performance

Parent Only

Financial Performance

ROE

Dividend

Chroma Global Network

FINANCIAL REVIEW

Year 2014 Condensed Consolidated Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

Quarterly Highlights

2014.4Q Key Points

Year 2014.4Q Condensed Income Statement

Year 2014 Condensed Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

OPERATION HIGHLIGHT

Chroma Ate Inc. Sales Breakdown By Testing Solution

Chroma Ate Inc. Sales Breakdown By Testing Solution

Consolidated Sales Breakdown by Quarter

Year 2015 Guidance

Corporate Growth Strategy

Application Roadmap

Growth Engines

Test Solutions

Turnkey Solutions for Smart Factory

Turnkey Solutions in Smart Factory Application

IoT Test Solutions

Semiconductor Testing in IoT Application

Optical Device & Wireless Testing In IoT Application

Test Instruments & ATS in Wearable Device Application

www.chromaate.com

let’s make a better world Thank You!

AI assistant

CHROMA — Interim / Quarterly Report 2014

52029_rns_2015-02-12_9d735242-c9d7-47b8-9a81-f82fc328427d.pdf

Disclaimer

Agenda

CORPORATE PROFILE

Corporate Profile

Financial Performance

Parent Only

Financial Performance

ROE

Dividend

Chroma Global Network

FINANCIAL REVIEW

Year 2014 Condensed Consolidated Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

Quarterly Highlights

2014.4Q Key Points

Year 2014.4Q Condensed Income Statement

Year 2014 Condensed Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

OPERATION HIGHLIGHT

Chroma Ate Inc. Sales Breakdown By Testing Solution

Chroma Ate Inc. Sales Breakdown By Testing Solution

Consolidated Sales Breakdown by Quarter

Year 2015 Guidance

Corporate Growth Strategy

Application Roadmap

Growth Engines

Test Solutions

Turnkey Solutions for Smart Factory

Turnkey Solutions in Smart Factory Application

IoT Test Solutions

Semiconductor Testing in IoT Application

Optical Device & Wireless Testing In IoT Application

Test Instruments & ATS in Wearable Device Application

www.chromaate.com

let’s make a better world Thank You!

More from CHROMA

CHROMA Interim / Quarterly Report 2014