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2024.4Q Earnings Conference Paul Ying, CFO Leo Huang, Chairman & CEO 24th February, 2025 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 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. 2
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Agenda • Corporate Profile • Financial Review • Operation Highlights • Q&A 3
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CORPORATE PROFILE 4
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Corporate Profile • 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) * For period of 2020 ~ 2022 to exclude the Chroma New Material Corp. due to business termination. 5 Consolidated Chroma Ate Sales Others Consolidated MAS Sales Consolidated Sales Breakdown 2023202220212020 2024 92% 13,044 5% 3% 92% 14,779 5% 3% 95% 4% 1% 21,431 95% 4% 1% 18,676 4% 1% 21,604 95%
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Financial Performance Consolidated Sales Gross Margin Consolidated Sales & Gross Margin 6 Sales Revenues Gross Margin R&D Expenses R&D Expenses in % of Sales Revenues Parent Company Sales / Gross Margin / RD Expenses 2023202220212020 2024 15,532 17,584 22,067 52% 49% 48% 58% 18,676 59% 21,604 2023202220212020 2024 Chroma HQ Employees：2,089 (R&D 37%) 1,216 9,180 10,308 1,351 1,639 53% 53% 52% 13,461 12,530 1,542 13% 13% 12% 12% 54% 15,652 55% 1,924 12%
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Financial Performance ROE Dividend Basic EPS Cash dividend Payout ratio * Cash dividend for 2024 will be paid out after resolution of AGM 7 202220212020 2023 24% 15% 25% 2024 18% 2023202220212020 2024 22% 5.56 4.50 9.96 7.00 12.14 8.00 9.45 6.60 9.00 12.49
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FINANCIAL REVIEW 8
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Year 2024.4Q Condensed Consolidated Income Statement Condensed Consolidated P&L (In Million NTD, except for EPS in NTD) 2024.4Q % 2024.3Q % QoQ % 2023.4Q % YoY % 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 (1,364) (23%) (1,290) (23%) 6% (1,094) (22%) 25% Research & Development (684) (11%) (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 1,939 32% 1,745 31% 11% 1,018 20% 90% Income Tax (403) (7%) (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 1,476 24% 1,426 25% 4% 799 16% 85% Noncontrolling Interests 60 1% 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 Condensed Consolidated P&L (In Million NTD, except for EPS in NTD) 2024 % 2023 % YoY % 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 (5,065) (23%) (4,327) (23%) 17% Research & Development (2,199) (11%) (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 6,708 31% 5,166 28% 30% Income Tax (1,308) (6%) (1,070) (6%) 22% Net Income 5,400 25% 4,096 22% 32% Net Income (Losses) Attributable To: Shareholders of the Parent 5,264 24% 3,979 21% 32% Noncontrolling Interests 136 1% 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
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Balance Sheet Highlights & Financial Ratio Consolidated (In Million NTD) Balance Sheet Highlights 2024. Dec 2023. Dec + / - % Cash & Short Term Investments 5,040 4,794 5% Inventory 5,458 4,675 17% Short Term Debt 1,417 2,136 - 34% Long Term Debt 2,108 990 113% Shareholders Equity 25,450 22,517 13% Total Assets 37,308 33,482 11% Inventory Turnover (Day) 209 217 AR Turnover (Day) 87 87 AP Turnover (Day) 118 128 Net Debt to Equity (%) Net Cash Net Cash ROE (%) 22% 18% ROA (%) 15% 12% Cash Position 2024 2023 YoY EBITDA 7,528 5,973 26% Cash Flow from Operation 4,784 3,408 40% Free Cash Flow 2,893 2,014 44% 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 HIGHLIGHT 12
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2024.4Q & Annual Product Mix and Consolidated Sales Breakdown (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 211 4% (45%) 380% 872 4% 33% 658 4% Other Subsidiaries 73 1% (6%) 7% 313 1% 35% 231 1% Consolidated Sales 6,039 100% 7% 20% 21,604 100% 16% 18,676 100% 13
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Year 2025 Guidance 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 . 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
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Green Revenue - Parent Note: Revenues are classified according to FTSE Russell’s Green Revenues Classification System (GRCS). 48.3%51.7% Green Revenue General 2023 2024
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Technology & Solution Milestones High Precision Test Solutions
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Semiconductor Test Solutions IC: SiC / Power / Logic / Wireless 3680 HDRF2 • Internally Integrated • One-touch engagement • 4 Vector Signal Transceivers • 32 RF ports • 6Ghz Software Defined Radio • 200Mhz bandwidth • Supports various protocols: Bluetooth 5.2, Wi-Fi 6, LoRa, GPS 2023 2024 2025 • 768pin • 12 slots • 15kVA • Floating • LB electronics • IC: SiC/Power/logic 3650-S2 3380 MXADO Designed for High Quality Audio Testing • 8 WG and 8 WD channels • 6Vpp audioband • High-performance bandwidth: 100kHz (WG) and 22kHz (WD) Applications: • Wired/wireless/Bluetooth audio devices, headphones, speakers 3650-S2 HTMU Advanced Performance for Timing Test • 16 channels • High precision with nSec- level accuracy • Supports multiple testing modes Applications: • PMIC, industrial control chips, logic chips
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Semiconductor Measurement Solutions 2023 2025 2D/3D Metrology • XY / Z Resolution: 30nm / 0.05nm • Sensor: BLiS Technology • Light Source: Multiple Light Sources • Applications: ✓ Probe Mark ✓ 3D Surface Profile 7980 2D/3D Metrology Measurement System Advanced Packaging: InFO, CoWoS, 3D IC BLiS: Broadband Light integrated System Muti-Sensors with different functions are integrated. 7981 2D/3D Metrology Measurement System 2024 OVL 2D/3D Metrology • XY / Z Resolution: 30nm / 0.05nm • Sensor: BLiS Technology • 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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IC System Level Test Solutions 2021 2023 • -40℃~ +150℃ @Tc • Up to 1,200W power dissipation • -40℃~ +150℃ @Tc • Up to 2,900W power dissipation • -70℃~ +150℃ @Tc • Up to 1,000W power dissipation • 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 • 3x3~120x120mm • -40 ~ +150℃ @Tc, up to 1.8kw dissipation • 500 kgf contact • TSD (Tj) available Model 3210 Temperature-forcing Systems ENG Single Site Test ModuleHybrid Tri-temp Test Handler FT & SLT Hybrid Test System Advanced packaging of AI/HPC, automotive, IoT, cloud, network and data center chips • 3x3~120x120mm • -70 ~ +150℃ @Tc, up to 1.2kw dissipation • 500 kgf contact • TSD (Tj) available Model 3110 Gen2 2024 2025
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Photonics Test/AOI Solutions – Quartz Crystal Wafer 2023 2024 Frequency: <220MHz Die thickness: >7.6µm Die size: >0.7mmX0.6mm Test requirement trend: ➢ Higher frequency ➢ Thinner die thickness ➢ Smaller die size and pad pitch Consumer/Automotive Sensing, LiDAR Crystal Wafer Probing System Model 58216 (250B VNA) Frequency: 220MHz Min. die pitch: 0.4mm In-process Wafer Inspection System Model 7945 Depth of focus at 2X mag.: 90µm Min. die size: 0.075mmX0.075mm 2025 Crystal Wafer Frequency Sorter Model 58217 Frequency :300 MHz Hardware Bin Number: 10 bins Frequency: 300MHz Die thickness: 5.5µm Die size: 0.5mmX0.5mm
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Input coupler Optical modulator Optical waveguide Couplers Photonic crystal LASER MICRO- RING RESONATORPHOTODIODE Optical fiber SiPh (Silicon Photonics) Active Components Burn-In Solutions Model 58604C • 200 °C • ± 80 V • ± 2 mA • 1,792 channels 58606 Series58604 Series • 125 °C / 200 °C • ± 7 V / ± 7.5 V • ± 500 mA • 1,792 channels • 1 nA meas. Res. Active SiPh Device Burn-In Reliability Test Series DUT: SiPh Device Light-feeding with Laser Source Module Optical & Thermal Rack SiPh Electrical Test +
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Co-Packaged Optics (CPO) Assembly & Sorting Solution Data Center Rack Switch Optical Engines ASIC INPUT Optical Engines ASIC … OUTPUT … CPO modules deployed in switches Fiber Array Unit FAU & EPIC Alignment Gel Dispensing UV Curing Binning ➔ ➔ ➔ ASIC Optical Engines ASIC ASIC * Tier-1 High throughput solution in the market Model 58623 Photonics IC Assembly and Sorting System • Auto FAU miniMT plug in/out • Auto Passive + Active alignment • Auto gel dispensing + UV curing • Auto Binning
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Technology & Solution Milestones High Power Test Solutions
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Power Electronics Test Solutions Model 61800-100HV • High power AC source with energy regen • Optional regen AC Load • Parallel up to 1MVA • 105kVA, 500VLN-800VLN 2023 20242022 Server PSU, BBU Testing & EV Power Electronics, Green Energy (PV , ESS, PCS, Battery/Fuel Cell), Battery Storage Regenerative AC Load Model 63800R Series • Programmable AC Load with energy regen • High Power Density: 15kW/3UH, Eff:90% • 9kW-15kW, 350VLN Regenerative Grid Simulator Regenerative DC Load Model 63700 Series • Programmable DC Load with energy regen • High Power Density: 18kW/3UH, Eff:93% • 18kW, 600/1200/1800V 2025 Bidirectional DC Power Supply 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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Battery Cell Test Solutions Battery Reliability Test System Model 17010H • 6V, 300A, • 600A (peak current) High Power xEV Cell Test Solution Ultra-high precision CDC Prog. Charge/Discharge Tester Model 17208M-5-12C • 5V, 12A DVA Cell Test Solution 2024 20252023 Battery Cell/Lithium-ion Capacitor/Super Capacitor Multi-channel voltage/temperature Data Logger Model A172013/A172014 Auxiliary Measurement Solution Battery Reliability Test System Model 17010H • 6V, 200A • 300A (peak current) High Power xEV Cell Test Solution
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Battery Module/Pack Test Solutions 2022 Battery Module/ Pack Model 17040 • 300kW 1000V 750A • 360kW 1000V 900A • 500kW 1000V 1200A • 600kW 1000V 1500A Applications: • E-vehicle battery pack • ESS battery pack Model 17020E • 10kW ,60V • 10kW ,100V • 10kW ,200V Applications: • E-Scooter battery pack • E-vehicle battery module Regenerative Battery Pack Test System 2024 2025 Regenerative Battery Pack Test System Model 17040E • 200kW 1700V 400A • 200kW 850V 600A Applications: • E-vehicle battery pack • ESS battery pack Regenerative Battery Pack Test System
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Turnkey Solution NED Test and Automation Turnkey Solution
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AR Glass & Automation Solutions Waveguide Waveguide/Eyepiece IQ Test System Model 5742-F • OMM: PA Alignment • Projector: Light Source Simulation • Auto Rx lens Changer Note: All the above equipment apply Chroma Colorimeter to proceed Image Quality Test Projector IQ Test System Model 5742-B • Auto Contact • OMM: BS AA Alignment Light Engine Precision Assembly/ Testing System Model 5742-A • OMM: PA/AA Alignment • Precision Assembly Sub Module Sub Module IQ Test System Model 5742-C • OMM: PA Alignment • Projector: Light Source Simulation • Auto Rx lens Changer Sub Module Sub Module +
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