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CHROMA ATE INC.

2016.2Q Investor Conference

Paul Ying, CFO Leo Huang, Chairman & CEO

28[th] July, 2016

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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).
2015 Consolidated Sales : NT$ 9.69 billion
2015 Net Income: NT$1.24 billion
Chroma Group total of 2,399 employees (as June, 2016)
Harvard Business Review (HBR) names Chroma CEO Leo Huang as “The Taiwan Best Performing CEO” (Rank 38).

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Consolidated Chroma Ate Sales Others Consolidated CNMC Sales Consolidated MAS Sales

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14,148
8%
11,644
5%
10,171 10,307
9,692
7%
48%
15%
13%
48% 29%
24%
34%
41% 44% 47% 60% 58%
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2011

2012 2013

2014 2015

Financial Performance

Consolidated Sales

Gross Margin

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

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Parent Only
Consolidated
56%
55%
54% 54%
14,148
5,338
5,135
52%
44%
4,539
11,644 37% 39%
4,174
3,926
10,307
10,171
28% 29% 9,692
17%
16%
15% 15%
12%
784
755
630 637 631
Chroma Employees ： 1,408  (R&D 39%)
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
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Financial Performance

ROE

Dividend

EPS Cash dividend Stock dividend Payout ratio

4.06

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19%
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3.51
3.28
3.21
15%
14%
13% 2.52 2.60
2.50 2.50
12% 2.40
2.00
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2011 2012 2013 2014 2015
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2011 2012 2013 2014 2015
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*** The dividend will be paid out after the resolutions of Annual General Shareholders meeting.**

Chroma Global Network

Global Employees ： 2,310  , Branch Offices x17, Distributors x68

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US :
Irvine/ Santa Clara/
Foothill Ranch, CA
Hong Kong : Neworld Tempe, AZ
Europe : Netherlands
SE Asia: Singapore Japan: Yokohama
China : Beijing / Nanjing / Shanghai / Suzhou
Chongqing / Xiamen / Shenzhen / Dongguan
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FINANCIAL REVIEW

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Year 2016.1H Condensed Consolidated Income Statement

Condensed Consolidated P&L (In Million NTD, except for EPS in NTD)	2016.1H %	2015.1H % YoY %
Net Sales	5,292 100%	4,633 100% 14%
Consolidated Sales of Testing Equipment Business	3,856 73%	2,434 53% 58%
Consolidated Sales of MAS	138 2%	825 18% (83%)
Consolidated Sales of New Material	1,104 21%	1,158 25% (5%)
Others	194 4%	216 4% (10%)
Cost of Goods Sold	(2,815) (53%)	(2,696) (58%) 4%
Gross Profit	2,477 47%	1,937 42% 28%
Operating Expenses: General & Administration Research & Development	(1,102) (21%) (482) (9%)	(975) (21%) 13% (414) (9%) 16%
Operating Income	893 17%	548 12% 63%
Non-Operating Income (Expenses), net	23 -	41 1% (44%)
Income (Loss) Before Tax Income Tax	916 17% (173) (3%)	589 13% 56% (104) (2%) 66%
Net Income	743 14%	485 11% 53%
Other Comprehensive Income (Losses)	(94) (2%)	(175) (4%) (46%)
Comprehensive Income	$ 649 12%	$ 310 7% 109%
Net Income (Losses) Attributable To: Shareholders of the Parent Noncontrolling Interests	764 14% (21) -	505 11% 51% (20) - 5%
	$ 743 14%	$ 485 11% 53%
EPS (Basic)	$ 2.02	$ 1.34 51%
EPS (Diluted)	$ 1.89	$ 1.28 48%
		~~10~~

10 ~~10~~

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		2016. June 5,660 2,017 709 2,865 9,466	2015. Dec + / - % 5,116 11% 1,636 23% 333 113% 3,142 - 9% 9,531 - 1%
Total Assets		17,399	16,060 8%
Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%)		117 90 102 Negative	108 108 91 Negative
ROE (%)		16%	13%
ROA (%)		9%	8%
Cash Position EBITDA Cash Flow from Operation	2016.1H 1,107 594	2015.1H 770 1,366	YoY 44% (57%)
Free Cash Flow	90	922	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)

11 11

Quarterly Highlights

2016.2Q Key Points

Sales Revenue: $ 1,589 million,

down 4% QoQ, up 41% YoY

Gross Margin: 55%
Operating Margin: 25%
Net Income: NT$ 443 million,
up 38% QoQ, up 16% YoY
2016.2Q Highlights:
The major growth driver came from Semiconductor test

solutions and Test instruments &

ATS, presented a growth of 155% and 29% QoQ respectively.

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Sales Revenues Gross Margin
Operating Margin
1,654
1,589
1,356
1,193
57% 1,126 57%
55%
53% 55%
50%
864
25%
23%
22%
20%
16%
13%
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2015.1Q 2015.2Q 2015.3Q 2015.4Q 2016.1Q 2016.2Q

12 12

Year 2016.2Q Condensed Income Statement

Condensed P&L– Parent Only (In Million NTD, except for EPS in NTD)	2016.2Q %	2016.1Q % QoQ %	2015.2Q % YoY %
Net Sales	1,589 100%	1,654 100% (4%)	1,126 100% 41%
Cost of Goods Sold	(721) (45%)	(821) (50%) (12%)	(524) (47%) 38%
Gross Profit	868 55%	833 50% 4%	602 53% 44%
Operating Expenses: General & Administration Research & Development	(255) (16%) (222) (14%)	(234) (14%) 9% (213) (13%) 4%	(229) (19%) 11% (198) (18%) 12%
Operating Income	391 25%	386 23% 1%	175 16% 123%
Non-Operating Income (Expenses), net	136 9%	(7) - n/a	225 20% (40%)
Income (Loss) Before Tax	527 34%	379 23% 39%	400 36% 32%
Income Tax	(84) (5%)	(58) (4%) 45%	(19) (2%) n/a
Net Income	$ 443 29%	$ 321 19% 38%	$ 381 34% 16%
Other Comprehensive Income	(74) (5%)	(20) (1%) n/a	(122) (11%) (39%)
Comprehensive Income	$ 369 24%	$ 301 18% 23%	$ 259 23% 42%
EPS (Basic)	$ 1.17	$ 0.85 38%	$ 1.01 16%
EPS (Diluted)	$ 1.09	$ 0.80 36%	$ 0.96 14%

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100% owned subsidiaries’ income - New Material: 14m (QoQ ↑ 17%, YoY ↑ 56%), MAS: 14m (QoQ n/a, YoY n/a) .

13 13

Year 2016.1H Condensed Income Statement

Condensed P&L– Parent Only (In Million NTD, except for EPS in NTD)	2016.1H %	2015.1H % YoY %
Net Sales	3,243 100%	1,990 100% 63%
Cost of Goods Sold	(1,543) (48%)	(894) (45%) 73%
Gross Profit	1,700 52%	1,096 55% 55%
Operating Expenses: General & Administration Research & Development	(490) (15%) (434) (13%)	(438) (22%) 12% (374) (19%) 16%
Operating Income	776 24%	284 14% 173%
Non-Operating Income (Expenses), net	130 4%	256 13% (49%)
Income (Loss) Before Tax	906 28%	540 27% 68%
Income Tax	(142) (4%)	(35) (2%) n/a
Net Income	$ 764 24%	$ 505 25% 51%
Other Comprehensive Income	(94) (3%)	(174) (8%) (46%)
Comprehensive Income	$ 670 21%	$ 331 17% 102%
EPS (Basic)	$ 2.02	$ 1.34 51%
EPS (Diluted)	$ 1.89	$ 1.28 48%

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Non-operating Income included 100% owned subsidiaries’ income - New Material: 26m (YoY ↑ 30%), MAS: 10m (YoY n/a).

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		2016. June 3,273 1,633 446 2,706 9,281	2015. Dec + / - % 2,703 21% 1,301 26% 101 342% 2,988 - 9% 9,410 - 1%
Total Assets		15,566	13,965 11%
Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%)		169 123 95 Negative	231 159 101 4%
ROE (%)		16%	13%
ROA (%)		11%	9%
Cash Position EBITDA Cash Flow from Operation	2016.2Q 573 415	2016.1Q 425 276	QoQ YoY 35% 28% 50% 121%
Free Cash Flow	456	(487)	n/a 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)

15 15

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OPERATION HIGHLIGHT

Chroma Ate Inc. Sales Breakdown by Testing Solutions

(Unit: Million NTD) Test Instruments & Automate Testing System (ATS) Semiconductor Test Solutions Turnkey Solutions Service & Others		2016.2Q % QoQ YoY 950 60% 29% 21% 367 23% 155% 99% 169 11% n/a 61% 103 6% 81% 106%		2016.1H % YoY 1,689 52% 18% 511 16% 52% 883 27% 564% 160 5% 82%	2015 % 3,029 67% 759 17% 532 12% 219 4%
Total		1,589 100% (4%) 41%		3,243 100% 63%	4,539 100%

17 17

Chroma Ate. Inc. Sales Mix Breakdown (YTD)

A Turnkey Solution and Intelligent Automation Line Provider

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4,174 3,926 5,135 4,539 3,243
Parent Only
6% 5% 4% 4% 5%
9% 12%
10% 18% 27%
Others
17% 21% 17%
Turnkey Solutions 21%
16%
Semiconductor Test Solutions
Test Instruments & ATS
63% 67% 65% 57% 52%
2012 2013 2014 2015 2016.1H
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18 18

Sales Breakdown by Consolidated Entities

(Unit: Million NTD) Chroma Ate. Inc.included overseas affiliates MAS New Material Others		2016.2Q % QoQ YoY 1,952 72% 3% 43% 97 4% 137% (85%) 536 20% (6%) (5%) 97 4% - (14%)		2016.1H % YoY 3,856 73% 58% 138 2% (83%) 1,104 21% (5%) 194 4% (10%)
Consolidated Sales		2,682 100% 3% (1%)		5,292 100% 14%

19 19

Year 2016.2H Guidance

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In the first half 2016, turnkey solutions and semiconductor testing solutions are the biggest drivers for Chroma parent sales, which presented a strong growth of 564% and 52% YoY respectively. Meanwhile, the core business of Test Instruments and ATS also presented a double digits growth of 18% compared to first half last year. Moving forward to the second half 2016, the Company expected the overall operation will be better than first half. The turnkey solutions will continue to drive the Company sales revenues growth, while test instruments & ATS and semiconductor testing solutions will continue steady growth in the second half.

20 20

Business Development Roadmap

Turnkey (Test & Measurement + Automation + MES)

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ICT Industries
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Industry 4.0

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Clean Tech. 2010 2016

21 21

I984

Test Instruments & ATS

TECHNOLOGY

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Power Wider Operation Voltage: Up to1200V 1~60 Series Cell Voltage Simulation
Testing Max. Power: 240kW (parallel) Active and Passive Balance Test
Wide Range Inductance:
Electrical
10~1,000V; 0.1uH~100uH
Safety
High speed: <18mS
FPD Testing 8K x 4K@60Hz 8K x 4K@120Hz
’16 ’16.2H
MARKET Server & Telecom Power/ EV/EVSE/Battery/UHD Display/ Mobile Phone/Power Choke
High Power DC Load
632XXA
BMS ATS
Impulse Winding Tester 8700
19301A
FPD Tester 8K FPD Tester
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SOLUTION

27014

2918

22 22

Test Instruments & ATS

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TECHNOLOGY
High Precision/High Speed
AOI
2D & 3D Measuring
2.5sec/pcs
New Application:
LED Testing
UVA, UVB, UVC
Optical Device Bar Type Sorting High Density Burn-in Module 6” VCSEL Wafer
Testing No Probing Mark 256Ch SMU/module NF &FF Testing
’16 ’16.2H
MARKET 3C Cosmetics/LED/Fiber Optical Communication
Multi-Functional
Dimension Measuring
System 7505
UV LED Chip Prober
58212-C
Laser Diode/Photo Diode Laser Diode Burn-In VCSEL Wafer Probing
Mapping Sorter Test System Test System
58205 58604 58630
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SOLUTION

23 23

Semiconductor Test Solutions

TECHNOLOGY

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Touch Sensor/Finger Printing IC testing
Analog Testing
256 I/O, 16 bits ADC/DAC
Compact Size, Best Cost Of Ownership
Logic Testing 256 digital pins, 100Mbps
IC Testing Thermal Engine
Handler Nitro-TEC (Liquid Nitrogen)
’16 ’16.2H
MARKET
IoT, Touch Sensor ICs, Finger Printing IC , MCU
VLSI Test System
3380D Full Range ATC Cold
Temperature Handler
3160C
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SOLUTION

24 24

Turnkey Solutions

TECHNOLOGY

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MES Intelligent Process System
Battery
Regenerative CH/DCH System ,
Formation Negative Pressure Formation
’15
‘16
MARKET Industry 4.0 – Battery Cell Formation
Intelligent Battery
Process System
Battery Cell Formation
System 17000
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SOLUTION

25 25

www.chromaate.com

let’s make a better world

Thank You!

26 26

AI assistant

CHROMA Interim / Quarterly Report 2016

52029_rns_2016-07-28_3e1b7fda-6dba-4fb5-a1b1-90c72c07594a.pdf

2016.2Q Investor Conference

Disclaimer

Agenda

CORPORATE PROFILE

Corporate Profile

Financial Performance

Financial Performance

ROE

Dividend

Chroma Global Network

FINANCIAL REVIEW

Year 2016.1H Condensed Consolidated Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

Quarterly Highlights

2016.2Q Key Points

Year 2016.2Q Condensed Income Statement

Year 2016.1H Condensed Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

OPERATION HIGHLIGHT

Chroma Ate Inc. Sales Breakdown by Testing Solutions

Chroma Ate. Inc. Sales Mix Breakdown (YTD)

A Turnkey Solution and Intelligent Automation Line Provider

Sales Breakdown by Consolidated Entities

Year 2016.2H Guidance

Business Development Roadmap

Test Instruments & ATS

TECHNOLOGY

SOLUTION

Semiconductor Test Solutions

TECHNOLOGY

TECHNOLOGY

www.chromaate.com

let’s make a better world

Thank You!

AI assistant

CHROMA — Interim / Quarterly Report 2016

52029_rns_2016-07-28_3e1b7fda-6dba-4fb5-a1b1-90c72c07594a.pdf

2016.2Q Investor Conference

Disclaimer

Agenda

CORPORATE PROFILE

Corporate Profile

Financial Performance

Financial Performance

ROE

Dividend

Chroma Global Network

FINANCIAL REVIEW

Year 2016.1H Condensed Consolidated Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

Quarterly Highlights

2016.2Q Key Points

Year 2016.2Q Condensed Income Statement

Year 2016.1H Condensed Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

OPERATION HIGHLIGHT

Chroma Ate Inc. Sales Breakdown by Testing Solutions

Chroma Ate. Inc. Sales Mix Breakdown (YTD)

A Turnkey Solution and Intelligent Automation Line Provider

Sales Breakdown by Consolidated Entities

Year 2016.2H Guidance

Business Development Roadmap

Test Instruments & ATS

TECHNOLOGY

SOLUTION

Semiconductor Test Solutions

TECHNOLOGY

TECHNOLOGY

www.chromaate.com

let’s make a better world

Thank You!

More from CHROMA

CHROMA Interim / Quarterly Report 2016