Castles Technology Co. Ltd. · TWSE:5258
Castles Technology — Investor Conference (November 2019)
34 slides from Castles Technology's conference presentation, November 2019
Slide 1: Investor Conference
Investor Conference [5258] CASTLES" TECHNOLOGY
Slide 2: Disclaimer
The information contained in this confidential document (”Presentation”) has been prepared by Castles Technology Co., Ltd (the “Company”).The Presentation and relevant information mentioned in this material including operating performance, financial performance and business outlook, have been compli
Slide 3: Agenda
Agenda • Company Introduction • Industry Overview • Core Business • Operation Overview • Financial Overview • Future Prospect
Slide 4: Company Introduction
Company In CASTLES” TECHNOLOGY
Slide 5: Company history and milestones
S1F2 Release 2016/12 Publicly Traded S1E UPT Release #1 ECR Merchant provider in Taiwan with 70,000 units New Top 5 Terminal Vega 3000 series #1 Provider of eCA and Provider Globally smart card #1 Terminal (Nilson Report) reader in Taiwan Provider Saturn in the Middle East Android Family QP3000 UPT
Slide 6: Key facts: units sold, employees, countries served
2.5 M+ 400+ 100+ 2016 Units sold in Global Employees Countries Served Publicly Traded 2018
Slide 7: Castles Global Footprint
Castles Global Footprint
Slide 8: Global Operation Base
Global Operation Base www.castlestech.com
Slide 9: Global Development Centers
Global Development Centers PF) Software Software Development Development Europe Europe Software Development Asia Pacific —, Kernels Development www.castlestech.com
Slide 10: Industry Overview
Industry Overview CASTLES” TECHNOLOGY
Slide 11: Industry trends in payment terminals
With the success of business strategy, more processor and acquirer want to build their own marketplace solution and get more recurring revenue from merchants. With the prevailing of e-payment, more and more stores are renewing their facilities to support diverse payment method. For example, paym
Slide 12: Core Business
Core Business CASTLES” TECHNOLOGY
Slide 13: Payment terminal product categories
Android Payment Terminal Linux Payment Terminal Unattended Payment Terminal mPOS
Slide 14: Android Payment Terminal
S1F2 S1L S1E S1F S7 • MSR, Contact, and Contactless Reader • PCI 5.x certified PIN on Touch Technology • Secure Android Platform • Barcode reader • Camera
Slide 15: Android solution customers
Provides end customers diverse payment+ECR POS solutions. Our global customers, has been introducing Castles Android solutions.
Slide 16: Linux Payment Terminal
V3UL V3P3 V3M2 V3CT2 V3CT V3M V3P • MSR, Contact and Contactless Reader • 3.5” Color Touch Screen or 2.4” Color TFT- LCD • Countertop, Portable and PINPad models • Secure Linux Platform • 2G/3G/4G, Wi-Fi, Bluetooth, Ethernet, Modem
Slide 17: Linux terminal applications
Widely used in coffee shop and convenience stores, delivering the ultimate purchase experiences to customers
Slide 18: Unattended Payment Terminal
U1L U1K U1M U1B U1F S1E UPT • MSR, Contact and Contactless Reader • 3.5” Color Touchscreen or 2.8”/2.4”/5” Color TFT- LCD • Secure Linux Platform / Android Platform • 2G/3G/4G, Bluetooth, Ethernet, RS-232 and USB
Slide 19: Unattended terminal applications
Widely used in vending machines and self-check system, delivering the ultimate purchase experiences to customers
Slide 20: mPOS
MP200 MP100R • MSR, Contact and Contactless Reader • Bluetooth, Wi-Fi, USB, 2G/3G/4G • Integrates to any iOS, Android or Windows devices • Long Lasting Battery
Slide 21: mPOS applications
Widely used in hospitality and retail industry delivering the ultimate purchase experiences to customers
Slide 22: Operation Overview
Operation Overview CASTLES” TECHNOLOGY
Slide 23: 2014~2019 Jan~Sep Consolidated Revenue
Units：NTD Millon 2014~2019 Jan~Sep Consolidated Revenue 3,500 3,173 3,000 2,627 2,611 2,500 2,327 2,334 2,000 1,778 1,500 1,000 500 - 2014 2015 2016 2017 2018 2019 Jan-Sep
Slide 24: Sales by Regions
Units：NTD Millon Sales by Regions 600 +158% 500 +288% 400 +24% -2% +182% -77% 300 +61% 200 100 - South America North Asia North America Taiwan West Asia Sutheast Asia Europe 2018 Jan-Sep 2019 Jan-Sep
Slide 25: Financial Overview
Financial Overview CASTLES” TECHNOLOGY
Slide 26: 2019 Jan-Sep income statement
Units：NTD Millon Items 2019 Jan-Sep % 2018 Jan-Sep % YoY Revenue 2,334.7 100% 1,575.0 100% 48% Gross profit 601.0 26% 474.4 30% 27% Operating expenses Selling expenses 167.5 7% 159.7 10% 5% Administrative 63.1 3% 52.7 3% 20% expenses Research and 248.2 11% 217.7 14% 14% development expenses Impairme
Slide 27: 2019 Q3 income statement
Units：NTD Millon 2019 Q3 2019 Q2 2018 Q3 Items QoQ YoY Amount % Amount % Amount % Revenue 779.6 100% 847.5 100% -8% 351.5 100% 122% Gross profit 195.1 25% 215.7 25% -10% 114.6 33% 70% Operating expenses 133.4 17% 306.0 36% -56% 170.2 49% -22% Net operating 61.7 8% (90.3) -11% 168% (55.5) -16% 211% i
Slide 28: Future Prospect
Future Prospect CASTLES” TECHNOLOGY
Slide 29: Strengths and strategic priorities
1. High development and integration skills in both software and hardware engineering 2. Expanding global branches 3. Provide localized integral payment service 4. Provide software as well as service, improve product competiveness 5. Provide cloud service for remote control
Slide 30: Payment Security is our DNA
Payment Security is our DNA Unattended Secure Android/Linux All Form of Payment P2PE Contact & Contactless OS Platform Payment Integration Kernels Global Security Design(PCI PTS) Communication Fiscal Key COS (Card OS) CTMS Remote (3G/4G, WiFi, Bluetooth) Memory Management System Management Integrati
Slide 31: Innovative technology transform to a wide range of product selection
Innovative technology transform to a wide range of product selection EFT Unattended Peripherals Terminal High Core Performance Technology CPU Comprehensive Secure Linux/Android Platform PIN Pad Tablet POS mPOS 31 Multilane
Slide 32: CTMS Market Place
Castles’ Cloud Services Customer Service Staff Market Place 2, Verification Q ; G © nies 2 [sia 1 Get. App App Publish Platform __ e = aia Application Auditor 4. Launch App Developers www.castlestech.com
Slide 33: 2020 focus
Looking into 2020, Castles Technology will focus on: 1. Europe, North America, and North-east Asia will still be the momentum of revenue growth 2. Optimize the cost to boost overall profit 3. The advantage of customization boosts the revenue share of software service. 4. Push the performance growth
Slide 34: Thank you
Thank you CASTLES" TECHNOLOGY
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