CHROMA ATE INC Q Investor Conference. Paul Ying, CFO Leo Huang, Chairman & CEO

Transcription

1 CHROMA ATE INC Q Investor Conference Paul Ying, CFO Leo Huang, Chairman & CEO 28 th July,

2 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. 2 2

3 Agenda Corporate Profile Financial Review Operation Highlights Q&A 3 3

4 CORPORATE PROFILE 4 4

5 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) 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). Consolidated Chroma Ate Sales Others Consolidated CNMC Sales Consolidated MAS Sales 14,148 8% 11,644 48% 5% 10,171 10,307 9,692 7% 15% 13% 48% 29% 24% 34% 41% 44% 47% 60% 58%

6 Financial Performance Consolidated Sales Sales Revenues R&D Expenses Gross Margin Gross Margin R&D Expenses in % of Sales Revenues 14,148 11,644 37% 39% Consolidated 44% 5,338 54% 55% 52% 4,174 3,926 54% 5,135 Parent Only 56% 4,539 28% 29% 10,171 10,307 9,692 12% 15% 16% 15% 17% Chroma Employees:1,408 (R&D 39%)

7 Financial Performance ROE Dividend 19% 4.06 EPS Cash dividend Stock dividend Payout ratio % 12% 14% 13% * * The dividend will be paid out after the resolutions of Annual General Shareholders meeting. 7 7

8 Chroma Global Network Global Employees:2,310, Branch Offices x17, Distributors x68 Hong Kong : Neworld US : Irvine/ Santa Clara/ Foothill Ranch, CA Tempe, AZ Europe : Netherlands SE Asia: Singapore Japan: Yokohama China : Beijing / Nanjing / Shanghai / Suzhou Chongqing / Xiamen / Shenzhen / Dongguan 8 8

9 FINANCIAL REVIEW 9 9

10 Year H Condensed Consolidated Income Statement Condensed Consolidated P&L (In Million NTD, except for EPS in NTD) H % H % YoY % Net Sales 5, % 4, % 14% Consolidated Sales of Testing Equipment Business 3,856 73% 2,434 53% 58% Consolidated Sales of MAS 138 2% % (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 (1,102) (21%) (975) (21%) 13% Research & Development (482) (9%) (414) (9%) 16% Operating Income % % 63% Non-Operating Income (Expenses), net % (44%) Income (Loss) Before Tax % % 56% Income Tax (173) (3%) (104) (2%) 66% Net Income % % 53% Other Comprehensive Income (Losses) (94) (2%) (175) (4%) (46%) Comprehensive Income $ % $ 310 7% 109% Net Income (Losses) Attributable To: Shareholders of the Parent % % 51% Noncontrolling Interests (21) - (20) - 5% $ % $ % 53% EPS (Basic) $ 2.02 $ % EPS (Diluted) $ 1.89 $ % 10 10

11 Balance Sheet Highlights & Financial Ratio Consolidated (In Million NTD) Balance Sheet Highlights June Dec + / - % Cash & Short Term Investments 5,660 5,116 11% Inventory 2,017 1,636 23% Short Term Debt % Long Term Debt 2,865 3,142-9% Shareholders Equity 9,466 9,531-1% Total Assets 17,399 16,060 8% Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%) Negative Negative ROE (%) 16% 13% ROA (%) 9% 8% Cash Position H H YoY EBITDA 1, % Cash Flow from Operation 594 1,366 (57%) Free Cash Flow n/a All ROE + ROA has been annualized. Free Cash Flow = Net Cash Provided by Operating Activities + (Net Cash used by Investing Activities) 11 11

12 Quarterly Highlights Q Key Points Sales Revenues Gross Margin Operating Margin Sales Revenue: $ 1,589 million, 1,654 1,589 down 4% QoQ, up 41% YoY Gross Margin: 55% Operating Margin: 25% Net Income: NT$ 443 million, 57% 1,126 53% 1,356 55% 1,193 57% 50% 55% up 38% QoQ, up 16% YoY Q Highlights: The major growth driver came from Semiconductor test 22% 20% 23% 25% solutions and Test instruments & 13% 16% ATS, presented a growth of 155% and 29% QoQ respectively Q Q Q Q Q Q 12 12

13 Year Q Condensed Income Statement Condensed P&L Parent Only (In Million NTD, except for EPS in NTD) Q % Q % QoQ Q % YoY % % Net Sales 1, % 1, % (4%) 1, % 41% Cost of Goods Sold (721) (45%) (821) (50%) (12%) (524) (47%) 38% Gross Profit % % 4% % 44% Operating Expenses: General & Administration (255) (16%) (234) (14%) 9% (229) (19%) 11% Research & Development (222) (14%) (213) (13%) 4% (198) (18%) 12% Operating Income % % 1% % 123% Non-Operating Income (Expenses), net 136 9% (7) - n/a % (40%) Income (Loss) Before Tax % % 39% % 32% Income Tax (84) (5%) (58) (4%) 45% (19) (2%) n/a Net Income $ % $ % 38% $ % 16% Other Comprehensive Income (74) (5%) (20) (1%) n/a (122) (11%) (39%) Comprehensive Income $ % $ % 23% $ % 42% EPS (Basic) $ 1.17 $ % $ % EPS (Diluted) $ 1.09 $ % $ % 100% owned subsidiaries income - New Material: 14m (QoQ 17%, YoY 56%), MAS: 14m (QoQ n/a, YoY n/a)

14 Year H Condensed Income Statement Condensed P&L Parent Only (In Million NTD, except for EPS in NTD) H % H % YoY % Net Sales 3, % 1, % 63% Cost of Goods Sold (1,543) (48%) (894) (45%) 73% Gross Profit 1,700 52% 1,096 55% 55% Operating Expenses: General & Administration (490) (15%) (438) (22%) 12% Research & Development (434) (13%) (374) (19%) 16% Operating Income % % 173% Non-Operating Income (Expenses), net 130 4% % (49%) Income (Loss) Before Tax % % 68% Income Tax (142) (4%) (35) (2%) n/a Net Income $ % $ % 51% Other Comprehensive Income (94) (3%) (174) (8%) (46%) Comprehensive Income $ % $ % 102% EPS (Basic) $ 2.02 $ % EPS (Diluted) $ 1.89 $ % Non-operating Income included 100% owned subsidiaries income - New Material: 26m (YoY 30%), MAS: 10m (YoY n/a)

15 Balance Sheet Highlights & Financial Ratio Parent Only (In Million NTD) Balance Sheet Highlights June Dec + / - % Cash & Short Term Investment 3,273 2,703 21% Inventory 1,633 1,301 26% Short Term Debt % Long Term Debt 2,706 2,988-9% Shareholders Equity 9,281 9,410-1% Total Assets 15,566 13,965 11% Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%) Negative 4% ROE (%) 16% 13% ROA (%) 11% 9% Cash Position Q Q QoQ YoY EBITDA % 28% Cash Flow from Operation % 121% Free Cash Flow 456 (487) n/a n/a All ROE + ROA has been annualized. Free Cash Flow = Net Cash Provided by Operating Activities + (Net Cash used by Investing Activities) 15 15

16 OPERATION HIGHLIGHT 16 16

17 Chroma Ate Inc. Sales Breakdown by Testing Solutions (Unit: Million NTD) Q % QoQ YoY H % YoY 2015 % Test Instruments & Automate Testing % 29% 21% 1,689 52% 18% 3,029 67% System (ATS) Semiconductor Test Solutions % 155% 99% % 52% % Turnkey Solutions % n/a 61% % 564% % Service & Others 103 6% 81% 106% 160 5% 82% 219 4% Total 1, % (4%) 41% 3, % 63% 4, % 17 17

18 Chroma Ate. Inc. Sales Mix Breakdown (YTD) A Turnkey Solution and Intelligent Automation Line Provider Parent Only 4,174 3,926 5,135 4,539 3,243 6% 5% 4% 4% 5% Others 10% 9% 18% 12% 27% 17% 21% 17% Turnkey Solutions 21% 16% Semiconductor Test Solutions Test Instruments & ATS 63% 67% 65% 57% 52% H 18 18

19 Sales Breakdown by Consolidated Entities (Unit: Million NTD) Q % QoQ YoY H % YoY Chroma Ate. Inc. included overseas affiliates 1,952 72% 3% 43% 3,856 73% 58% MAS 97 4% 137% (85%) 138 2% (83%) New Material % (6%) (5%) 1,104 21% (5%) Others 97 4% - (14%) 194 4% (10%) Consolidated Sales 2, % 3% (1%) 5, % 14% 19 19

20 Year H Guidance 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

21 Business Development Roadmap Turnkey (Test & Measurement + Automation + MES) Industry 4.0 ICT Industries Clean Tech. I

22 Test Instruments & ATS TECHNOLOGY Power Testing Wider Operation Voltage: Up to1200v Max. Power: 240kW (parallel) 1~60 Series Cell Voltage Simulation Active and Passive Balance Test Electrical Safety Wide Range Inductance: 10~1,000V; 0.1uH~100uH High speed: <18mS FPD Testing 8K x 4K@60Hz 8K x 4K@120Hz H MARKET Server & Telecom Power/ EV/EVSE/Battery/UHD Display/ Mobile Phone/Power Choke High Power DC Load 632XXA Impulse Winding Tester 19301A BMS ATS 8700 SOLUTION FPD Tester K FPD Tester

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

24 Semiconductor Test Solutions TECHNOLOGY Analog Testing Touch Sensor/Finger Printing IC testing 256 I/O, 16 bits ADC/DAC Logic Testing Compact Size, Best Cost Of Ownership 256 digital pins, 100Mbps IC Testing Handler Thermal Engine Nitro-TEC (Liquid Nitrogen) H MARKET IoT, Touch Sensor ICs, Finger Printing IC, MCU SOLUTION VLSI Test System 3380D Full Range ATC Cold Temperature Handler 3160C 24 24

25 Turnkey Solutions TECHNOLOGY MES Intelligent Process System Battery Formation Regenerative CH/DCH System, Negative Pressure Formation MARKET 15 Industry 4.0 Battery Cell Formation 16 Intelligent Battery Process System Battery Cell Formation System SOLUTION 25 25

26 let s make a better world Thank You! Copyright 2016 Chroma ATE Inc