Corporate Profile. Quarterly Highlights. Financial Review. Operation Highlights

Transcription

1 Your Testing Quality is Our Commitment. CHROMA ATE INC Q Investor Conference Paul Ying, CFO Leo Huang, Chairman & CEO 22 nd February,

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

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

4 CORPORATE PROFILE 4

5 Corporate Profile Founded in 1984, a world leading own brand turnkey test & automation solution provider, specialized in electronics test and measurement instruments and system. Products cover test and measurement instruments and system for various industries, and a turnkey solution of an integration of test and measurement with automation and manufacturing execution systems (MES). Key success: Precision, Reliability, Innovation 2012 Sales Revenues: NT$4,174 million 2012 Net Income: NT$945 million Total 1,245 employees, 37% in R&D (as Dec, In Million NTD Sales Revenues R&D Expenses R&D Expenses in % of Sales Revenues 5,640 Parent Only 5,338 15% 14% 4,174 4,158 13% 12% 3,444 11% 2012) Named as top 10 Mittelstand of Taiwan, by Industrial Development Bureau, MoEA

6 Financial Performance Consolidated Testing Sales Consolidated NM Sales Consolidated MAS Parent Only Sales Others Net Profit Parent Only 1,812 Gross Margin Operating Margin 14,886 14,148 54% 51% 55% 1,523 54% In Million NTD, Except EPS in NTD 12,228 10,914 4,158 3,444 5,640 5,338 11,747 4,174 In Million NTD 1,105 24% % 29% 52% 25% %

7 Financial Performance ROE Dividend Parent Only 26% EPS 5.05 Cash dividend Stock dividend 20% % % 12% In NTD

8 Chroma Global Network Global Employees:1,639, Branch Offices x16, Distributors x58 Hong Kong : Neworld US : Irvine / Foothill Ranch, CA Tempe, AZ Europe : Netherlands / Finland Japan: Shin Yokohama China : Shenzhen / Dongguan / Xiamen / Suzhou Nanjing / Shanghai / Beijing / Chongqing 8

9 Product Mix A Turnkey Test and Automation Solution Provider Power Electronics 43.5% LCD Panel / Video 6.7% Power Electronics 50.8% LCD Panel / Video 10.8% Services & Others 7.4% * Customized System 1.6% Solar 18.2% LED 6.6% Passive Component 7.0% IC 9.0% Services & Others 6.3% * Customized System 1.7% Solar 2.8% LED 3.1% IC 16.7% Passive Component 7.8% Year 2011 Year 2012 * Services & Others included general services and government projects. 9

10 QUARTERLY HIGHLIGHTS FINANCIAL REVIEW 10

11 Quarterly Highlights 4Q 2012 Key Points Sales Revenue: $ 911 million, 1,694 Sales Revenues Gross Margin Operating Margin down 28% QoQ, up 2% YoY Gross Margin: 57% Operating Margin: 19% Net Income: NT$ 183 million, down 42% QoQ, up 6% YoY 4Q 2012 Highlights: In Million NTD 1,465 50% 26% 53% 29% 1,289 53% 24% 53% % % 56% 1,122 24% 1,266 52% 22% 57% % % of Sales Revenues Gross margin improved, the highest in 15% past eight quarters. The major sales driver is contributed from IC sector, up 17% QoQ. 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 11

12 4Q 2012 Income Statement (QoQ / YoY Comparison) Parent Only (In Million NTD, except for EPS in NTD) 4Q 2012 % 3Q 2012 % QoQ 4Q 2011 % YoY % % Net Sales % 1, % (28%) % 2% Cost of Goods Sold (396) (43.5%) (614) (48.5%) (36%) (421) (47.3%) (6%) Gross Profit % % (21%) % 10% Operating Expenses: General & Administration (191) (20.9%) (200) (15.8%) (5%) (186) (20.8%) 3% Research & Development (152) (16.7%) (177) (14.0%) (14%) (152) (17.1%) - Operating Income % % (37%) % 30% Non-Operating Income % % (51%) % (36%) Non-Operating Expenses (18) (2.0%) (15) (1.2%) 20% - - n/a Income (Loss) Before Tax % % (43%) % (2%) Income Tax (18) (2.0%) (41) (3.2%) (56%) (32) (3.6%) (44%) Net Income % % (42%) % 6% EPS $ 0.49 $ 0.84 (42%) $ % Non-operating Income included the gain from equity investments total of 6m (QoQ 87%), including 100% owned subsidiaries - New Material: 3m (QoQ 86%), MAS: 24m (QoQ 60%). Currency loss of 16m. 12

13 Year 2012 Income Statement ( YoY Comparison) Parent Only (In Million NTD, except for EPS in NTD) 2012 % 2011 % YoY % Net Sales 4, % 5, % (22%) Cost of Goods Sold (1,905) (45.6%) (2,562) (48.0%) (26%) Gross Profit 2, % 2, % (18%) Operating Expenses: General & Administration (757) (18.1%) (827) (15.5%) (8%) Research & Development (637) (15.3%) (630) (11.8%) 1% Operating Income % 1, % (34%) Non-Operating Income % % (37%) Non-Operating Expenses (40) (1.0%) (14) (0.3%) 186% Income (Loss) Before Tax 1, % 1, % (36%) Income Tax (151) (3.6%) (195) (3.7%) (23%) Net Income % 1, % (38%) EPS $ 2.52 $ 4.06 (38%) Non-operating Income included the gain from equity investments total of 116m (YoY 55%), including 100% owned subsidiaries - New Material: 43m (YoY 14%), MAS: 79m (YoY 28%). Currency loss of 34m. 13

14 Year 2012 Income Statement (Consolidated) Consolidated (In Million NTD, except for EPS in NTD) 2012 % 2011 % YoY % Net Sales 11, % 14, % (17%) Cost of Goods Sold (8,328) (70.9%) (10,231) (72.3%) (19%) Gross Profit 3, % 3, % (13%) Operating Expenses: General & Administration (1,655) (14.1%) (1,615) (11.4%) 2% Research & Development (681) (5.8%) (662) (4.7%) 3% Operating Income 1, % 1, % (34%) Non-Operating Income % % (25%) Non-Operating Expenses (66) (0.6%) (27) (0.2%) 144% Income (Loss) Before Tax 1, % 1, % (36%) Income Tax (223) (1.9%) (304) (2.2%) (27%) Net Income before Minority Interest % 1, % (37%) Minority Interest 4 0.0% % n/a Net Income % 1, % (38%) 14

15 Balance Sheet Highlights & Financial Ratio Parent Only (In Million NTD) Balance Sheet Highlights Dec Dec / - % Cash & Short Term Investment % Inventory 1,073 1,373-22% Short Term Debt % Long Term Debt Shareholders Equity 7,795 7,765 - Total Assets 9,559 9,547 - Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%) - - ROE (%) 12% 20% ROA (%) 10% 16% Cash Position 4Q Q 2012 QoQ 2012 YoY EBITDA (38%) 1,298 (32%) Cash Flow from Operation (72%) 1,213 (30%) Free Cash Flow (3) 543 n/a 415 (70%) All ROE + ROA has been annualized. Free Cash Flow = Net Cash Provided by Operating Activities + (Net Cash used by Investing Activities) 15

16 OPERATION HIGHLIGHT 16

17 Sales Breakdown By Testing Solution (Unit: Million NTD) 2012 % 2011 % YoY Power Electronics Testing 2, % 2, % (9%) Component Testing % % (12%) LCD Panel / Video Testing % % 25% IC Testing % % 44% LED Testing % % (63%) Solar Power Testing % % (88%) Customized System % % (17%) Service & Others % % (33%) Total 4, % 5, % (22%) 17

18 Sales Breakdown By Industries Innovation, Integration Capability, Market Penetration In million NTD / % of Sales $ 4,158 $ 3,444 $ 5,640 $ 5,338 $ 4, % 5% 17% 31% 35% 24% 80% 60% 40% 20% 48% 40% 44% 45% 47% 0% Other Sectors Clean IC Panel (Video & LCM) Power (Power & Component) * Clean Technology included solar, LED, battery cell formation and EV OEM business. 18

19 Year 2013 Guidance The year 2012 sales revenues were mainly contributed from IC and LCD display sectors, increased by 44% and 25% respectively, while the power electronics sector remains in solid position. Expected IC and LED to be the major drivers of year 2013 sales revenues, due to development of new IC package and accelerating transformation of LED lighting. Aggressively promoting the turnkey solutions for emerging market opportunity, particularly in LED lighting and battery pack industries. Sales contributed from US, Europe and Japan markets have increased by 18% to 21% of sales revenues in 2012, target to reach 30% through increase recognition from global top-tier customers with high customer satisfaction. Proposed the year 2012 dividend payout of NT2 in cash only. 19

20 Innovations in Test & Automation Solutions 20

21 The World for You & for Me Thank You! 21