CHROMA — Interim / Quarterly Report 2021

May 18, 2021

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CHROMA ATE INC.

2021.1Q Investor Web Conference

Paul Ying, CFO

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28[th] April, 2021

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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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Agenda

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• Financial Review

• • Operation Highlights

• • Q&A

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FINANCIAL REVIEW

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Year 2021.1Q Condensed Consolidated Income Statement

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Condensed Consolidated P&L 2021.1Q % 2020.1Q % YoY %
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Condensed Consolidated P&L	2021.1Q %	2020.1Q % YoY %
(In Million NTD, except for EPS in NTD)
Net Sales	4,273 100%	3,371 100% 27%
Consolidated Sales of Testing Equipment Business	3,346 78%	2,557 76% 31%
Consolidated Sales of MAS	143 3%	177 5% (19%)
Consolidated Sales of New Material	692 16%	559 17% 24%
Others	92 3%	78 2% 18%
Cost of Goods Sold	(2,168) (51%)	(1,625) (48%) 33%
Gross Profit	2,105 49%	1,746 52% 21%
Operating Expenses: General & Administration Research & Development	(850) (20%) (366) (8%)	(884) (26%) (4%) (314) (9%) 17%
Operating Income	889 21%	548 16% 62%
Non-Operating Income (Expenses), net	1,799 42%	59 2% 2949%
Income (Loss) Before Tax Income Tax	2,688 63% (430) (10%)	607 18% 343% (121) (4%) 255%
Net Income	2,258 53%	486 14% 365%
Other Comprehensive Income (Losses)	136 3%	(64) (2%) n/a
Comprehensive Income	$ 2,394 56%	$ 422 12% 467%
Net Income (Losses) Attributable To: Shareholders of the Parent Noncontrolling Interests	2,248 53% 10 -	471 14% 377% 15 - (33%)
	$ 2,258 53%	$ 486 14% 365%
EPS (Basic)	$ 5.36	$ 1.13 374%
EPS (Diluted)	$ 5.33	$ 1.12 376%

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Gain from disposal of property and plant of NTD 1,730 million with Capital gain tax of NTD 200 million.

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Year 2021.1Q Proforma Consolidated Income Statement Excluded Capital Gain

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Condensed Consolidated P&L 2021.1Q % 2020.1Q % YoY %
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	Condensed Consolidated P&L 2021.1Q % 2020.1Q % YoY %
	(In Million NTD, except for EPS in NTD) Net Sales 4,273 100% 3,371 100% 27% Consolidated Sales of Testing Equipment Business 3,346 78% 2,557 76% 31% Consolidated Sales of MAS 143 3% 177 5% (19%) Consolidated Sales of New Material 692 16% 559 17% 24% Others 92 3% 78 2% 18% Cost of Goods Sold (2,168) (51%) (1,625) (48%) 33% Gross Profit 2,105 49% 1,746 52% 21% Operating Expenses: General & Administration (850) (20%) (884) (26%) (4%) Research & Development (366) (8%) (314) (9%) 17%
	Operating Income 889 21% 548 16% 62% Non-Operating Income (Expenses), net 70 1% 59 2% 19% Income (Loss) Before Tax 959 22% 607 18% 58% Income Tax (230) (5%) (121) (4%) 90% Net Income 729 17% 486 14% 50% EPS (Basic) $ 1.74 $ 1.13 54% EPS (Diluted) $ 1.73 $ 1.12 54%

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Excluded capital gain from disposal of property and plant of NTD 1,730 million.

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Balance Sheet Highlights & Financial Ratio

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Consolidated (In Million NTD)		2021. March	2020. Dec	+ / - %
Balance Sheet Highlights
Cash & Short Term Investments		6,299	4,442		42%
Inventory		2,977	3,028		- 2%
Short Term Debt		2,373	3,187	-	26%
Long Term Debt		1,864	2,405	-	22%
Shareholders Equity		16,906	16,389		3%
Total Assets		28,767	28,129		2%
Inventory Turnover (Day)		125	130
AR Turnover (Day)		102	120
AP Turnover (Day)		105	122
Net Debt to Equity (%)		Net Cash	7%
ROE (%)		17%	15%
ROA (%)		10%	7%
Cash Position	2021.1Q	2020.1Q	YoY
EBITDA	2,817	732	285%
Cash Flow from Operation	650	619	5%
Free Cash Flow	3,099	442	601%

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All ROE + ROA has been annualized (excluded capital gain).

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

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Quarterly Highlights

2021.1Q Key Points

• Sales Revenue: $ 2,666 million,

• up 10% QoQ, up 30% YoY

• Gross Margin: 53%

• Operating Margin: 26%

• Net Income: NT$ 2,248 million, up 228% QoQ, up 377% YoY

• 2021.1Q Highlights:

• The major growth in first quarter is

contributed from Semiconductor /

Photonics sector, which presented a growth of 53% QoQ and 53% YoY respectively.

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Sales Revenues Gross Margin Operating Margin

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2,666
2,421
2,394
2,313
2,053
55% 55% 53%
52%
51%
27% 26%
25% 25%
22%
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2021.1Q

2020.1Q 2020.2Q 2020.3Q 2020.4Q

Year 2021.1Q Condensed Income Statement

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Condensed P&L – Parent Only 2021.1Q % 2020.4Q % QoQ 2020.1Q % YoY
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	2021.1Q %	2021.1Q %
(In Million NTD, except for EPS in NTD)		% %
Net Sales	2,666 100%	2,421 100% 10% 2,053 100% 30%
Cost of Goods Sold	(1,266) (47%)	(1,184) (49%) 7% (929) (45%) 36%
Gross Profit	1,400 53%	1,237 51% 13% 1,124 55% 25%
Operating Expenses: General & Administration Research & Development	(370) (14%) (333) (13%)	(365) (15%) 1% (342) (16%) 8% (329) (14%) 1% (278) (14%) 20%
Operating Income	697 26%	543 22% 28% 504 25% 38%
Non-Operating Income (Expenses), net	1,933 73%	275 11% 603% 63 3% 2968%
Income (Loss) Before Tax	2,630 99%	818 33% 222% 567 28% 364%
Income Tax	(382) (14%)	(132) (5%) 189% (96) (5%) 298%
Net Income	$ 2,248 85%	$ 686 28% 228% $ 471 23% 377%
Other Comprehensive Income	137 5%	105 4% 30% (61) (3%) n/a
Comprehensive Income	$ 2,385 90%	$ 791 32% 202% $ 410 20% 482%
EPS (Basic)	$ 5.36	$ 1.64 227% $ 1.13 374%
EPS (Diluted)	$ 5.33	$ 1.62 229% $ 1.12 376%

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100% owned subsidiaries’ income - New Material: 6m (YoY ↓ 45%), MAS: 23m (QoQ ↓ 15%, YoY n/a), .

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Balance Sheet Highlights & Financial Ratio

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Parent Only (In Million NTD)	2021. March	2020. Dec	+ / - %
Balance Sheet Highlights
Cash & Short Term Investment	2,506	902	178%
Inventory	2,260	2,331		- 3%
Short Term Debt	1,600	2,420	-	34%
Long Term Debt	1,650	2,230	-	26%
Shareholders Equity	16,571	16,063		3%
Total Assets	25,445	24,406		4%
Inventory Turnover (Day)	163	184
AR Turnover (Day)	90	106
AP Turnover (Day)	79	96
Net Debt to Equity (%)	4%	23%
ROE (%)	18%	15%
ROA (%)	12%	10%

Cash Position	2021. 1Q	2020. 1Q	YoY
EBITDA	2,698	629	329%
Cash Flow from Operation	304	378	(20%)
Free Cash Flow	2,999	120	2399%

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All ROE + ROA has been annualized (excluded capital gain).

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

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Capacity Expansion (New A7 HQ)

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Taiwan: Taoyuan A7 Headquarters

Taiwan: Taoyuan Huaya Headquarters

• Floor space: 58,199 ㎡

• Floor space: 104,141 ㎡

• Land utilization: 13,878 ㎡

• Transaction: NTD 3.08 billion

• (18% of total 78,028 ㎡ )

• Capital gain: NTD 1.99 billion (gross)

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1Q Free Cash Flow: NTD 3,099 million

(-) Cash Dividend: NTD 1,881 million (2020)

(-) Annual Maintenance Capex: NTD 400 million

Balance of NTD 818 million

• Total land cost: NTD 3,8 billion

Net Capital Gain of NTD 1.73 billion

• (-) Lease back 13,190 ㎡ of NTD 42

• A7 HQ Capex: NTD 4.1 billion

• M&A Project

million

• (-) Deferred capital gain of NTD 219

million due to ADLINK Equity holding of 11.26%

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• Capacity expansion

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OPERATION HIGHLIGHT

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2021.1Q Product Mix and Consolidated Sales Breakdown

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	(Unit: Million NTD)	(Unit: Million NTD)	2021.1Q % QoQ YoY	2020 %
		Test Instruments & Automatic Testing System (ATS)	1,142 43% (3%) (2%)	4,849 53%
		Semiconductor / Photonics Test Solutions	1,042 39% 53% 53%	3,025 33%
		Turnkey Solutions	212 8% (33%) 285%	456 5%
		Service & Others	270 10% 8% 82%	850 9%
		Total of Parent Company Sales	2,666 100% 10% 30%	9,180 100%
		+ Sales from Overseas Operations & Related Subsidiaries	680 (14%) 35%	2,865
	Chroma Consolidated Testing Equipment Business		3,346 78% 4% 31%	12,045 78%
	MAS New Material Other Subsidiaries Consolidated Sales		143 3% 31% (19%) 692 16% (10%) 24% 92 3% - 18%	618 4% 2,551 16% 318 2%
			4,273 100% 2% 27%	15,532 100%

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13

Year 2021 Guidance

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For the first quarter in 2021, Chroma total consolidated sales revenues reached 4.3 billion NTD, presented a growth of 27% YoY. The Parent Company sales revenues hit quarterly record high reached 2.7 billion, presented a growth of 30% YoY, mainly contributed from Semiconductor / Photonics testing solutions which increased by 53% compared to year 2020.

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2021 Business Outlook:

• Continue to see strong demand for Semiconductors / Photonics testing solutions, which is driven by global semiconductor chip shortage and development of 5G-related and high performance chip (HPC) applications. Key drivers are:

• High Reliability Testing Solutions : Burn-in Test, SLT Test with thermal control

• Wireless RF and MCU testing solutions

• CIS / VCSEL / ToF testing solutions

• Semiconductor inspection and metrology solutions

• The Test Instruments & ATS for power testing solutions continues benefit from green energy, included EV related components, battery cell / module / pack and smart-grid and 5G / Server related power testing.

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14

www.chromaate.com

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Keep going beyond

Thank You !

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Copyright © 2018 Chroma ATE Inc. All rights reserved.

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