Chunghwa Precision Test Tech. Co., Ltd.

CHPT

Investors Presentation

September, 2018

2

Disclaimer Certain of this release includes forward-looking statements, these forward-looking statements are based on our current expectations, projections and beliefs as of the date of this release and are subject to known and unknown risks, uncertainties and assumptions that may cause actual results to differ materially from what may be expressed or implied by such statements. All statements other than statements of historical fact in this release regarding our future performance, revenues, margins, market share and any future events or prospects, are forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CHPT (6510 TT)

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Outline

1 Industry Trend

2 Main Products

3 Competitive Advantages

4 Financial Results

CHPT (6510 TT)

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USD$M

Others include Microcomponents, discrete semiconductors, optoelectronics, sensors, and etc.

Source：IC Insights, WSTS, CHPT (2018/07)

CHPT (6510 TT)

54,500 70,376

39,785 49,100

78,539 96,194

178,772

241,622

351,596

457,293

2017 2021(F)

Analog Logic Memory Others Total IC

1-1 Global Integrated Circuits Market 2017~2021

1-2 Global Probe Card Market 2017~2021

CHPT (6510 TT)

USD$M

Source：VLSI Research, CHPT (2018/07)

794

443 320

1,557

1,039

565

364

1,968

Logic DRAM FLASH TOTAL

2017 2021(F)

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Outline

1 Industry Trend

2 Main Products

3 Competitive Advantages

4 Financial Results

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IC Design Finish

Goods IC Package

Wafer

Manuf.

Application

Final

Testing

Chip

Probing

Probe PCB

Interposer

Probe Head

Wafer IC

Socket

Load Board

2-1 Probe Card and Load Board

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2-2 Business Model & Sales by Customer Type

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Fabless

CHPT

CHPT (6510 TT)

2-3 AP Revenue by Process Nodes

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2-4 AP Revenue by C4 Pad Pitch

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AP, PMIC, RFIC

DRAM

Camera SoC

ASIC

GPU

TDDI

2-5 VPC Total Solution Applications

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2-6 Satellite PCB Features

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Outline

1 Industry Trend

2 Main Products

3 Competitive Advantages

4 Financial Results

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3-1 Multi-DUT Probe Card Capability

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Unit: min(s) / wafer

168

40

0

50

100

150

200

2 DUT 12 DUT

8 wafers/day

36 wafers/day

Lead time ---short

Product life---long

Product stability---high

Maintenance---easy

Cost---low

Mass production---quick

Business risk---low

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QMS

Probe Card Assembly

After-Sales Service

R & D

Design

Manuf.

PCBA

IN HOUSE, ONE STOP SHOP IN HOUSE, ONE STOP SHOP IN HOUSE, ONE STOP SHOP IN HOUSE, ONE STOP SHOP IN HOUSE, ONE STOP SHOP IN HOUSE, ONE STOP SHOP

3-2 Operation Model

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Short Term

Growth for PCB and interposer as customers

shifting to advance process nodes.

Medium / Long Term

Total solution (all-in-house) opportunities beyond

AP. Satellite PCB demand.

3-3 Growth Outlook

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3-4 Summary

Turnkey

Service

Leading

Technologies

Stable

Company's

Financial

Status

In house, one stop shop Delivery flexibility Stable quality Good reliability

TFMLO Pitch : 30 um Pin Count 40,000 Pins

PCB Aspect Ratio : 50

MEMS Probe Card

Chunghwa Telecom Group

Our customers are in the IC industry

Profit and company’s operation are stable In House, One Stop Shop

Time To Market

CHPT (6510 TT)

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Outline

1 Industry Trend

2 Main Products

3 Competitive Advantages

4 Financial Results

CHPT (6510 TT)

86%

86%81%

9%

9%

12%5%

5%

7%

2Q17 1Q18 2Q18

Service & Others

Load boards

Probe Cards

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Net Revenue $888,349 K (vs. $ 741,818 k Prior Qtr)

Gross Margin 55.5 % (vs. 55.4 % prior Qtr)

Operating Exp. Ratio 26% (vs. 27% Prior Qtr)

Operating Margin 29% (vs. 28% Prior Qtr)

Net Income $ 205,972 K (vs. 166,581 k Prior Qtr)

Net Profit Margin 23% (vs. 22% Prior Qtr)

EPS $6.28 (vs. $5.08 Prior Qtr)

2Q18 Financial Results

in NT$ Thousand 4-1 Financial Results

$888,349

$741,818

$839,680

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4-2 Annual Financial Results

2013 2014 2015 2016 2017

Net Revenue 705,739 1,064,966 1,725,149 2,595,197 3,109,675

Gross Margin 41% 48% 52% 52% 55%

Net Income 55,950 196,419 413,483 604,779 736,370

EPS(NT$) 2.62 8.35 14.77 20.04 23.51

Net Revenue

YoY 20%

Net Income

YoY 22%

705,739 1,064,966

1,725,149

2,595,197 3,109,675

41%

48% 52% 52% 55%

0%

10%

20%

30%

40%

50%

60%

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Net Revenue 888,349K ▲YoY 6%

Net Income 205,972K ▲YoY 1%

Apr - Jun 2018 Financial Results

Gross Margin 55.5% ▲YoY 0.1ppt

EPS $6.28 ▼YoY $0.34

NT$ thousand

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4-3 Balance Sheets & Key Indices ( in NT$ thousand) 6/30,2017 3/31,2018 6/30,2018

Balance Sheets Amount % Amount % Amount %

Cash and cash equivalents 1,125,702 29 3,737,539 55 3,968,669 55

Account receivable, net 425,884 11 419,541 6 490,250 7

Inventories 278,296 7 286,168 4 327,449 4

PP&E 1,926,476 50 2,222,861 33 2,358,575 33

Total Assets 3,828,960 100 6,772,944 100 7,252,061 100

Total current liabilities 967,291 25 842,287 12 1,442,429 20

Total noncurrent liabilities 1,305 0 1,173 - 1,173 -

Total Liabilities 968,596 25 843,460 12 1,443,602 20

Capital stock 307,890 8 327,890 5 327,890 5

Additional Paid-In Capital 1,388,597 36 3,926,471 58 3,926,471 54

Retained earnings 1,167,091 30 1,678,051 25 1,556,133 21

Total Equity 2,860,364 75 5,929,484 88 5,808,459 80

Key indices

A/R Turnover Days 46 54 53

Inventory Turnover Days 88 72 71

ROE 28% 11% 13%

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4-4 Cash Flow ( in NT$ Thousand) 2Q17 1Q18 2Q18

Beginning Balance 821,357 3,726,074 3,681,686

Cash generated from operations 473,715 194,118 418,377

Income tax paid (91,897) (353) (105,724)

Net cash provided operating

activities 381,818 193,765 312,653

Land & Buildings (7,856) (114,527) (20,949)

Equipment & Others (79,938) (114,647) (62,391)

Capital expenditures (87,794) (229,174) (83,340)

Investments and others (45,773) (8,979) 1,537

Ending Balance 1,069,608 3,681,686 3,912,536

Free Cash Flow 294,024 (35,409) 229,313

Depreciation 38,482 43,536 46,288

CHPT (6510 TT)

Chunghwa Precision Test Tech. Co., Ltd.

Thank you!!

www.cht-pt.com.tw investor@cht-pt.com.tw