Astro Corp. · TPEX:3064
Astro — Investor Presentation (April 2008)
43 slides from Astro's investor presentation, April 2008
Slide 1: Investor Briefing
Investor Briefing April 2008 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Astro Corp. These forward-looking statements represent Astro’s expectations or beliefs concerning fut
Slide 3: Agenda
AGENDA • Astro Overview • Product Development • Core Competitiveness • Strategy & Market Potentiality • Annex (I): R&D and Technological Capability • Annex (II): Financial Results 3
Slide 4: Astro Overview
ASTRO OVERVIEW 4
Slide 5: Company Profile
Company Profile • Established Date ：August 2nd, 2000 • Address： 10F, NO.111-1, Hsing De Rd., Sanchung 241,Taipei, Taiwan, R.O.C. • Paid-in Capital：NTD 559,845,430 (US$18.41 million) • Official Website：www.astrocorp.com.tw • Number of Staff：311 total employees, (257 employees in 6 market-oriented R&D
Slide 6: Human Resource
Human Resource Management Sales 5% 3% oo Pa Production va 11/% Master degree High School or below 26 % between more than 5 ~10 years 10 years 12 % 5% Education >>, Job Function between 2 ~5 years 52% Relative Industrial Working Experience
Slide 7: Corporation Highlight
Corporation Highlight • Astro Corp. is a company who strongly focus on Casino equipment and Gaming game development, marketing, and base of operation. With strong and unshakable place in the world of games, Astro Corp. became the first Arcade & Gaming game company to successfully publicly traded its
Slide 8: Product Development
PRODUCT DEVELOPMENT 8
Slide 9: Key factors in successful Gaming game development
Key factors in successful Gaming game development • Innovation products and related technology research • Design high income-generating products • Research and development new technology for the coming generation • Develop all kind of intergraded system, software and hardware constantly. • Connect w
Slide 10: Product Ranked by Graphic Resolution
Product Ranked by Graphic Resolution XGA VGA (IPC) Arcade, Casino AWP SVGA CGA (IPC) Arcade Casino 10
Slide 11: Own-brand Motherboard & IPC
Own-brand Motherboard & IPC 11
Slide 12: Own-brand Cabinets & ODM Machine
Own-brand Cabinets & ODM Machine ARTEMIS HERMIS PARADISE BOX Upright Dual Screen Slantop Dual Screen Upright Tri Screen 12
Slide 13: Product Application: Machine & Game Kit
Product Application : Machine & Game Kit Club Arcade Center Casino 13
Slide 14: Product Application: CMS & Jackpot system
Product Application : CMS & Jackpot system 14
Slide 15: Core Competitiveness
CORE COMPETITIVENESS 15
Slide 16: Significance of Core Technology to Gaming Industry
Significance of Core Technology to Gaming Industry • High Technical threshold industry, namely Digital gaming industry. • No technology; no future! • No technological innovation; no chance of surviving from the competition. 16
Slide 17: The Industry Chain of Video Gaming Products
The Industry Chain of Video Gaming Products NalWare rover Output Device Video System Audio System Jackpot Display Input Device Buttons Joystick Touch Panel Essential as Component Motherboard Cabinet IPC Interface Slot Machine Cash Handling Device Bill Validator Coin Selector / Hopper Card Reader / P
Slide 18: Astro's position in Digital Gaming Industry
Astro’s position in Digital Gaming Industry – We launch our own-brand gaming products to worldwide market. – We are neither a supplier of electronic components nor an OEM manufacturer. – We know all of the key know-how in gaming system developments. – We are one of the most professional gaming compa
Slide 19: Competitive analysis
Competitive analysis (ASTRO’s prime products VS. International competitors) • Strong R&D resource and technology, extraordinary mobility and flexibility in new product design, short lead time in introducing new products. • Product quality, reliability and technology application are equivalent or sup
Slide 20: S.W.O.T
S.W.O.T • Outstanding R&D teams; product • High requirements of R&D; time- development on a short time consuming to train qualified product schedule. designers. • Competitive cost and price. • Difficult to overcome great obstacles • High quality and efficiency products. caused by government regulati
Slide 21: Our Patents
Our Patents • Patent approved – Taiwan Patent：16 objects – Overseas Patent：2 object • Patent Filed – Taiwan Patent：20 objects – Overseas Patent：50 objects 21
Slide 22: Strategy & Market Potentiality
Strategy & Market Potentiality 22
Slide 23: North America
North America US (AWP or Redemption) • Market requiring still mostly CGA game contents. The outstanding profitability of Astro’s SVGA game generates strong demand for new, quality, Casino alike AWP machines. • Scheduled to release 12 new SVGA & XGA games in 2008 with competitive price structure. • C
Slide 24: Latin America
Latin America (Casino and Bingo Hall) • Strategic alliance with local distributors to compete with numerous worldwide suppliers • In process of acquiring homologation in Peru and Panama to accommodate Video Slot machines to regulated casino markets in the area. • Scheduled to release 12 new SVGA & X
Slide 25: Europe
Europe Italy (AWP) • The new Comma 6A regulation is expected to be implemented in Q2 2008 with potential expansion. • The operation permit of current registered machines will be expired in schedule. • Astro is well positioned to present three unique SVGA games to grasp immediately the new market sha
Slide 26: Japan
Japan (Amusement Medal Game) • Co working with local distributor to penetrate kinds of Amusement Medal Game market with customized, market-orientated products. • Received good responses from resent Japan AOU show, held in Feb. Sales started with 4 titles of SVGA Video Slot. • Proceeding long-term ma
Slide 27: Asia
Asia Regulated Casino • Obtained first GLI approval of Video Slot “Dragon Saga” for Macau jurisdiction by Nov. 2007. • 100 units of “Dragon Saga” in operation with Astro CMS at Paradise Casino Macau. • 10 new games including Dual Screen model are scheduled to be submitted for GLI gaming approval wit
Slide 28: China
China • A serial developing plans for Chinese lottery and gaming industry, the most flourishing market with huge potential. • Strategic alliances with major local key players in lottery and gaming industry in China. Highly promoted Astro’s image in the market and created business opportunities. • Se
Slide 29: Europe
EUROPE SPAIN ITALY NORTH AMERICA % SOUTHEAST.ASIA yn SOUTHIMERICA | y yg
Slide 30: FY07 Sales Breakdown
FY 07 Sales Breakdown by regional segment 30
Slide 31: YTD Sales Breakdown
YTD Sales Breakdown by regional segment 31
Slide 32: Annex I: R&D and Technological Capability
ANNEX I R&D and Technological Capability 32
Slide 33: Hardware Technologies
Hardware Technologies Own customized IPC motherboards with powerful abilities - A variety of specifications, to SXGA (1280*1024) at most Dual Processors Security technique to prevent games from being duplicated. - Game content is never cracked by the competitors successfully. Completed peripheral de
Slide 34: Software Ability
Software Ability Own customized version of Linux OS. - High security and help to decrease the cost by fully grasping the code. High efficiency and flexibility module component architecture. - Graphic, sound effects, system and peripheral device are completed in program module. Safe and friendly data
Slide 35: Network Technologies
Network Technologies Strong system Stable cross-platform network communication frame. - Base on UDP/TPC and support Win332/Linux environment. Meet up with international standard gaming machine linking frame and environment. - Not only support SAS protocol but also develop own communication protocol.
Slide 36: System Integration Technologies
System Integration Technologies CMS - Get real-time machine status and process automatic meter reading and data compiling at the same time. Jackpot Link System and Management System - Support Progressive/Mystery JP and External Bonus. Member Customer Service Management System and Cash Flow Managemen
Slide 37: Other Key Technologies
Other Key Technologies 3D Engine and 3D Animation - Include scenes, materials, terrains, objects, action management and images - Have the capability of collision detection and support related common math functions. Video Streaming - Images captured from video cameras can be sent instantly. Smart Car
Slide 38: Annex II: Financial Results
ANNEX Financial Results 38
Slide 39: Summaries of Financial Results FY07
Summaries of Financial Results FY 07 • 2007 year revenue totaled US$15.67 million compared to US$11.63 million in the prior year quarters • Gross profit of US$8.91 million, or 56.88% gross margin • Income from operations and related EPS, US$1.97 million and NT$1.07 • 35% growth in revenues year-to-d
Slide 40: Balance Sheet & Financial Statistics
Balance Sheet & Financial Statistics US/MILLION Dec-06 Dec-07 Cash, Equivalents & Investments 8.91 10.08 Inventory--net 2.27 3.88 - Turns 1.15X 1.54X Total Receivables, net 1.10 2.17 - ADSO 33days 44days Total Debt 5.54 7.89 Total Equity 18.82 21.94 Total Debt / EBITDA TTM 1.03X 3.11X Interest Cover
Slide 41: Profit and Loss Statement
Profit and Loss Statement 2005 2006 2007 UNIT :US MILLION Amount % Amount % Amount % SALES REVENUE $12.95 100.00 $11.63 100.00 $15.67 100.00 COST OF GOODS SOLD (3.58) (27.65) (2.72) (23.35) (6.76) (43.12) GROSS PROFIT 9.37 72.35 8.91 76.65 8.91 56.88 OPERATING EXPENSES (3.48) (26.90) (4.61) (39.63)
Slide 42: Financial results over the years: Revenue & Net Income
Financial results over the years Revenue & Net Income US/MILLION 15.67 US/MILLION 16 4.94 5 4.90 15 14 12.95 13 REVENUE 4 3.8011.17 NET INCOME 11.63 12 11 10 3 9 8 7 1.97 2 6 4.22 5 4 3 1 1.02 2 1 0 0 2003 2004 2005 2006 2007 42
Slide 43: Financial results over the years: Capital & EPS
Financial results over the years Capital & EPS US/MILLION NTD/EPS 20.00 4.97 5.00 18.41 4.95 18.00 4.50 CAPITAL EPS 16.00 4.00 14.16 14.00 3.46 3.50 12.00 3.00 9.98 10.00 2.50 8.00 7.34 7.64 2.00 6.00 1.58 1.50 4.00 1.07 1.00 2.00 0.50 0.00 0.00 2003 2004 2005 2006 2007 43