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CHROMA ATE INC.

2017.1Q Earnings Release

26[th] April, 2017

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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).
2016 Consolidated Sales : NT$ 11.6 billion
2016 Net Income: NT$1.7 billion
Chroma Group total of 2,567 employees (as

March, 2017)

Chroma Wins Fifth National Innovation Award –

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Consolidated Chroma Ate Sales Others Consolidated CNMC Sales Consolidated MAS Sales

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11,644 11,624
5% 3%
10,171 10,307
9,692
7% 20%
15%
13%
48%
29%
24%
34%
44% 47% 60% 58% 74%
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Distinguished Enterprise Innovation Award.

2012

2013

2014

2015

2016

Financial Performance

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Sales Revenues Gross Margin
Consolidated Sales
R&D Expenses
Gross Margin Consolidated R&D Expenses in % of Sales Revenues
Parent Only
7,233
11,644 11,624
10,171 10,307
9,692
56%
47% 55%
54% 54%
52%
5,135
39% 44%
4,539
37%
4,174
3,926
29%
16% 17%
15% 15%
13%
755 784 937
637 631
Chroma Employees ： 1,585  (R&D 39%)
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
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Financial Performance

ROE

Dividend

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EPS Cash dividend
Payout ratio
4.53
17%
15%
3.51 3.30
14%
3.28
3.21
13%
12%
2.52 2.60
2.50
2.40
2.00
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
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*** The dividend will be paid out after the resolutions of Annual General Shareholders meeting.**

Chroma Global Network

Global Employees ： 2,567  , Branch Offices x24, Distributors x72

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Europe :
Netherlands
Germany
US :
Irvine/
Foothill Ranch, CA
Hong Kong :
Neworld
SE Asia: Singapore
India / Thailand / Vietnam Japan: Shin-Yokohama
Malaysia / Philippines /
Indonesia
China : Beijing / Nanjing / Shanghai / Suzhou
Chongqing / Xiamen / Shenzhen / Dongguan
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FINANCIAL REVIEW

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Year 2017.1Q Condensed Consolidated Income Statement

Condensed Consolidated P&L (In Million NTD, except for EPS in NTD)	2017.1Q %	2016.1Q % YoY %
Net Sales	2,776 100%	2,610 100% 6%
Consolidated Sales of Testing Equipment Business	2,090 75%	1,904 73% 10%
Consolidated Sales of MAS	80 3%	41 2% 100%
Consolidated Sales of New Material	513 18%	568 22% (10%)
Others	93 4%	97 3% (4%)
Cost of Goods Sold	(1,409) (51%)	(1,456) (56%) (3%)
Gross Profit	1,367 49%	1,154 44% 18%
Operating Expenses: General & Administration Research & Development	(620) (22%) (279) (10%)	(533) (20%) 16% (237) (9%) 18%
Operating Income	468 17%	384 15% 22%
Non-Operating Income (Expenses), net	(118) (4%)	(12) (1%) n/a
Income (Loss) Before Tax Income Tax	350 13% (68) (3%)	372 14% (6%) (66) (2%) 3%
Net Income	282 10%	$ 306 12% (8%)
Other Comprehensive Income (Losses)	(178) (6%)	(21) (1%) n/a
Comprehensive Income	$ 104 4%	$ 285 11% (64%)
Net Income (Losses) Attributable To: Shareholders of the Parent Noncontrolling Interests	288 10% (6) -	321 12% (10%) (15) - (60%)
	$ 282 10%	$ 306 12% (8%)
EPS (Basic)	$ 0.75	$ 0.85 (12%)
EPS (Diluted)	$ 0.72	~~10~~ $ 0.80 (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		2017. March 5,099 2,004 1,100 1,386 11,906	2016. Dec + / - % 5,829 - 13% 1,906 5% 1,012 9% 2,765 - 50% 10,788 10%

Total Assets		17,784	18,633 - 5%
Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%)		125 96 112 Negative	104 88 101 Negative
ROE (%)		10%	17%
ROA (%)		6%	10%
Cash Position EBITDA Cash Flow from Operation	2017.1Q 435 (235)	2016.1Q 468 391	YoY (7%) n/a
Free Cash Flow	(476)	(240)	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

2017.1Q Key Points

Sales Revenue: $ 1,797 million,

up 11% QoQ, up 9% YoY

Gross Margin: 53%
Operating Margin: 23%
Net Income: NT$ 288 million,

down 25% QoQ, down 10% YoY

2017.1Q Highlights:
The major growth driver is

contributing from Semiconductor

Testing Solutions, presented a

growth of 89% QoQ and 338% YoY.

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Gross Margin Sales Revenues
Operating Margin
2,373
1,797
1,654
1,617
1,589
55%
54% 53%
50%
50%
26%
23% 25% 23%
21%
12
2016.1Q 2016.2Q 2016.3Q 2016.4Q 2017.1Q 12
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Year 2017.1Q Condensed Income Statement

Condensed P&L– Parent Only (In Million NTD, except for EPS in NTD)	2017.1Q %	2016.4Q % QoQ %	2016.1Q % YoY %
Net Sales	1,797 100%	1,617 100% 11%	1,654 100% 9%
Cost of Goods Sold	(850) (47%)	(741) (46%) 15%	(821) (50%) 4%
Gross Profit	947 53%	876 54% 8%	833 50% 14%
Operating Expenses: General & Administration Research & Development	(278) (16%) (252) (14%)	(283) (17%) (2%) (251) (16%) 1%	(234) (14%) 19% (213) (13%) 18%
Operating Income	417 23%	342 21% 22%	386 23% 8%
Non-Operating Income (Expenses), net	(76) (4%)	96 6% (179%)	(7) - n/a
Income (Loss) Before Tax	341 19%	438 27% (22%)	379 23% (10%)
Income Tax	(53) (3%)	(56) (3%) (5%)	(58) (4%) (9%)
Net Income	$ 288 16%	$ 382 24% (25%)	$ 321 19% (10%)
Other Comprehensive Income	(173) (10%)	(46) (3%) 276%	(20) (1%) n/a
Comprehensive Income	$ 115 6%	$ 336 21% (66%)	$ 301 18% (62%)
EPS (Basic)	$ 0.75	$ 0.99 (24%)	$ 0.85 (12%)
EPS (Diluted)	$ 0.72	$ 0.92 (22%)	$ 0.80 (10%)

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100% owned subsidiaries’ income - New Material: 0.7m (QoQ ↓ 95%, YoY ↓ 94%), MAS: (6m).

13 13

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		2017. March 3,217 1,567 900 1,231 11,745	2016. Dec 3,656 1,458 800 2,597 10,617	+ / - % - 12% 7% 13% - 53% 11%

Total Assets		16,374	16,586	- 1%
Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%)		160 119 116 Negative	145 100 91 Negative
ROE (%)		10%	17%
ROA (%)		7%	11%
Cash Position EBITDA Cash Flow from Operation	2017.1Q 385 (66)	2016.4Q 484 933	QoQ (20%) n/a	2016.1Q YoY 425 (9%) 276 n/a
Free Cash Flow	(326)	1,177	n/a	(487) 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)

14 14

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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		2017.1Q % QoQ YoY 972 54% 1% 32% 631 35% 89% 338% 102 6% (58%) (86%) 92 5% 24% 61%	2016 % 3,570 49% 1,209 17% 2,143 30% 311 4%
Total		1,797 100% 11% 9%	7,233 100%

16 16

Chroma Ate. Inc. Sales Mix Breakdown (YTD)

A Turnkey Solution and Intelligent Automation Line Provider

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3,926 5,135 4,539 7,233 1,797
Parent Only
5% 4% 4% 4% 5%
6%
9%
12%
18%
Others
30%
21% 17%
35%
Turnkey Solutions 21%
17%
Semiconductor Test Solutions
Test Instruments & ATS
67% 65% 67% 49% 54%
2013 2014 2015 2016 2017.1Q
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17 17

Sales Breakdown by Consolidated Entities

(Unit: Million NTD) Chroma Ate. Inc.included overseas affiliates MAS New Material Others		2017.1Q % QoQ YoY 2,090 75% 7% 10% 80 3% (32%) 100% 513 18% (16%) (10%) 93 4% (6%) (4%)	2016 % 8,587 74% 382 3% 2,269 20% 386 3%
Consolidated Sales		2,776 100% - 6%	11,624 100%

18 18

Year 2017.2Q Guidance

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In the first quarter 2017, parent company sales was the biggest contributor. The key driver for parent company growth is coming from semiconductor testing solutions, which presented a strong growth of 89% QoQ and 338% YoY. Meanwhile, the core business of Test Instruments and ATS also presented a double digits growth of 32% YoY.

The Company expected 2Q will be better than 1Q due to:

Increasing demand of power related components and battery cell / pack

testing equipment.

Semiconductor testing solution, by increasing demand of SLT and

delivery of Laser Diode (VCSEL) testing equipment.

19 19

Test Instruments & ATS

TECHNOLOGY

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Passive Impedance Measurement
Comp. Testing Wide Freq. range: 30MHz
Insulation Resistance Test
Battery Testing Simultaneous Partial Discharge detection
Hi-pot Test and PD Test function
Electrical
High accuracy current meter : 0.1uA ~ 100uA
Safety
Measure. range: 1pC ~2000pC, 0.1pC resolution
’16 ’17
MARKET Portable & Wearable Device/IoT Battery Cell Optical Coupler/Transistor/Motor
HF LCR Meter
11050-30M
Battery Cell Insulation Tester
11210-K
Partial Discharge Tester
19501-K
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SOLUTION

20 20

Battery Cell Manufacture Process

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Lamination
Test
between electrodes
Battery Cell Insulation Tester
11210-K
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Folding
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Test
between electrode and case
11210-K
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Package

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Test
between electrodes
11210-K
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Seal in aluminum film Case

21 21

Test Instruments & ATS

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TECHNOLOGY Independent 8K Graphics Core
HDMI 2.0a / DisplayPort 1.3
8K Pattern switch time <200ms
Video /FPD
Testing
8K x 4K@60Hz 8K x 4K@120Hz
High Precision/High Speed
AOI 2D & 3D Measuring
2.5sec/pcs
High Voltage : 50V – 1000V
Power High Power 30KW – 300KW (parallel)
High Power : 60KW – 300KW
Testing Active AC load, Regenerative to Grid
Regenerative to Grid
’16 ’17
MARKET Display UPS/ EVSE/ Micro Grid/ PCS/PV Inverter EV / ESS Battery Pack
8K Video Pattern Generator 8K FPD Tester
2238 2918
Multi-Functional
Dimension Measuring
System 7505
Regenerative AC Load Regenerative Battery
61800 Pack Test System
SOLUTION
17040
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22 22

Semiconductor Test Solutions – 1/2

TECHNOLOGY

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PXIe form factor, Best Cost Of Ownership
Logic Testing
32- 256 digital pins, 100Mbps
SoC/VLSI Full Application & Flexible Config.
RF Testing WiFi/BT/LTE/GPS/Connectivity IC
IC Testing Thermal Engine
Handler Nitro TEC + Hybrid Chiller
’16 ’17
MARKET RF/Connectivity ICs, IoT, MEMS, Sensors, PMIC, MCU
+
RF Tester MP5800
Model 33010
3380x VLSI/3650x SoC
Test System
Full Range Active Thermal Control
SOLUTION
SLT Handler 3260C
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23 23

Semiconductor Test Solution – 2/2

TECHNOLOGY

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Laser Diode 6” VCSEL Wafer High Density Burn-in Module
Testing NF & FF Testing 256Ch SMU/module, and Spike free
High Speed Double Side Inspection
Laser Diode
15 ms per chip
AOI
’16 ’17
MARKET Laser Diode/ Fiber Optical Communication 3C Cosmetics
VCSEL Wafer Probing Laser Diode Burn-In
Test System Test System
58635 58604
Wafer Chip Inspection System
7940
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SOLUTION

24 24

Innovation in Laser Diode Test Solution

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Wafer
New
New
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Module
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Package

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New
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New
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• VCSEL Wafer • Wafer Chip • Laser Diode • Laser Diode • TO-CAN Package
Probing Test System Inspection System Characterization System Burn In System Inspection System
58635 7940
Wafer
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• TOSA/BOSA Temperature
Control System
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Substrate
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Package
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Patterning

Dicing

25 25

www.chromaate.com

let’s make a better world

Thank You!

26 26

AI assistant

CHROMA Interim / Quarterly Report 2017

52029_rns_2017-05-08_095e9404-14d1-4cd4-8a2e-8efd48e4b450.pdf

Disclaimer

Agenda

CORPORATE PROFILE

Corporate Profile

Financial Performance

Financial Performance

ROE

Dividend

Chroma Global Network

FINANCIAL REVIEW

Year 2017.1Q Condensed Consolidated Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

Quarterly Highlights

2017.1Q Key Points

Year 2017.1Q 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

Test Instruments & ATS

TECHNOLOGY

Battery Cell Manufacture Process

Test Instruments & ATS

Semiconductor Test Solutions – 1/2

TECHNOLOGY

Semiconductor Test Solution – 2/2

TECHNOLOGY

Innovation in Laser Diode Test Solution

Package

www.chromaate.com

let’s make a better world

Thank You!

AI assistant

CHROMA — Interim / Quarterly Report 2017

52029_rns_2017-05-08_095e9404-14d1-4cd4-8a2e-8efd48e4b450.pdf

Disclaimer

Agenda

CORPORATE PROFILE

Corporate Profile

Financial Performance

Financial Performance

ROE

Dividend

Chroma Global Network

FINANCIAL REVIEW

Year 2017.1Q Condensed Consolidated Income Statement

Balance Sheet Highlights & Financial Ratio

All ROE + ROA has been annualized.

Quarterly Highlights

2017.1Q Key Points

Year 2017.1Q 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

Test Instruments & ATS

TECHNOLOGY

Battery Cell Manufacture Process

Test Instruments & ATS

Semiconductor Test Solutions – 1/2

TECHNOLOGY

Semiconductor Test Solution – 2/2

TECHNOLOGY

Innovation in Laser Diode Test Solution

Package

www.chromaate.com

let’s make a better world

Thank You!

More from CHROMA

CHROMA Interim / Quarterly Report 2017