RESULTS FOR THE YEAR ENDED 30 APRIL 2018 10 July 2018
SERGE CRASNIANSKI C h i e f E x e c u t i ve O f f i c e r & D e p u t y C h a i r m a n OVERVIEW
Overview • Good financial performance • Continued progress on execution of the Group’s growth strategy • Revenue growth in all of Photo- Me’s territories, except Japan • Laundry business revenue growth of almost 70% year-on-year, contributing 16% of total Group revenue • Strategy in place to return Japanese subsidiary to profit, the very early stages have been positive • Restructuring of Photo-Me Retail now complete and delivering profitability • Remained highly cash-generative, supporting innovation in future growth and high returns to shareholders 3
Agenda • OUR BUSINESS MODEL • FINANCIAL HIGHLIGHTS • OPERATIONAL HIGHLIGHTS • FINANCIAL OVERVIEW • BUSINESS REVIEW • GROWTH STRATEGY AND INNOVATION 4
Our business model • 46,710 instant-service units focused on three principal areas • Investment in new technologies and complementary products and services • Leverage scale of operations to rapidly deploy new products at low incremental cost, providing rapid return on investment Our key strengths 5
Financial highlights • Another year of good progress • Expansion of the laundry business remains the primary growth driver (organic and by acquisition) • Further deployment of identification technology in key markets Reported revenue Profit before tax Reported EBITDA +4.4% to £50.2m +2.8% to £71.0m +7.1% to £229.8m Cash generated from Net cash position EBITDA margin operations £26.7m 30.9% £61.0m Earnings per share At constant currency Total ordinary dividend per Revenue +5.9% +14.2% to 10.60p share +20.1% to 8.44p Profit before tax +2.5% 6
Operational highlights • Continued profit growth and strong cashflow • Rollout of secure photo ID upload technology for passport applications launched EXPANDING IDENTIFICATION with HMPO in the UK PARTNERSHIPS WITH • Continued rollout of secure photo ID upload technology in France, Ireland, GOVERNMENTS Germany, and discussions ongoing with the Dutch government • Plan in place to restructure Japanese business, delivering positive results • Total Laundry revenue growth 69% • Total revenue from Revolution units up 49% CONTINUED RAPID GROWTH OF HIGHER MARGIN • Good contribution from UK B2B bolt-on laundry acquisitions LAUNDRY BUSINESS • Post-period acquisition of a leader in the high-growth potential Spanish launderette market • Revenue growth of 23.8% KIOSKS CONTINUE TO • Refocus of Photo-Me Retail completed, with improved profitability already DELIVER REVENUE GROWTH achieved • Continued investment in R&D FOCUSED INVESTMENT IN • Banking Booth and 3D Enrolment Kiosk awarded at TRUSTECH INNOVATION FOR FUTURE • Continued focus on new opportunities to extend our biometric and 3D capture GROWTH technology 7
STEPHANE GIBON C hief Financial Of f icer FINANCIAL REVIEW
Key financials REPORTED REVENUE £m 250 229.8 200 214.7 195.6 • 186.6 184.0 Reported revenue +7.1% 177.2 150 At constant currency 1 +5.9% to £216.9m • 100 50 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 £m EBITDA (excluding associates) 80 35% 70 30% 71.0 • 69.0 60 EBITDA +2.8% 25% 50 56.7 At constant currency 1 +1.0% to £70.4m 20% • 51.8 47.8 40 44.3 15% • 30 EBITDA margin was 30.9% 10% 20 5% 10 0 0% FY 2013 FY 2014 FY 2015* FY 2016 FY 2017 FY 2018 EBITDA EBITDA Margin 1 2017 trading results of overseas subsidiaries converted at 2018 exchange rates 9
Key financials REPORTED PROFIT BEFORE TAX £m 25% 60 • Reported profit before tax +4.4% 50 20% 50.2 48.0 Underlying profit before tax 2 +0.3% to £46.8m, at • 40 40.1 15% constant currency 1 was £47.5m, down 1.6% 35.0 30 30.1 • 10% Profit after tax +14.7% to £40.3m, due to reduction in 24.3 20 effective tax rate 5% 10 1 2017 trading results of overseas subsidiaries converted at 2018 exchange rates 0% 0 2 Underlying profit before tax is 2018 profit before tax adjusted to exclude the gain on the Group’s FY 2013 FY 2014 FY 2015* FY 2016 FY 2017 FY 2018 shareholding in Max Sight Group Holdings Limited, the profit on disposal of the former head PBT PBT Margin office building, and restructuring fees relating Photo-Me Retail. 2017 profit before tax is adjusted to exclude the translation reserve taken to profit on disposal of subsidiaries CASH GENERATED FROM OPERATIONS £m 70.0 60.0 61.3 61.0 50.0 51.4 • Remain highly cash generative 48.1 46.6 45.6 40.0 • Ongoing investment in innovation 30.0 20.0 10.0 0.0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 10
EPS and dividends DILUTED EPS 12.00 • 10.00 Diluted earning per share +14.2% 10.60 Pence per share 9.27 8.00 • Total ordinary dividend per share +20.1% 7.72 6.00 6.70 • £26.2m cash returned to shareholders by way 5.70 of dividends in the year 4.76 4.00 3.95 3.74 • Total dividend to be maintained for FY2019 2.00 0.00 2011 2012 2013 2014 2015 2016 2017 2018 DIVIDEND HISTORY 10.00 9.00 Pence per share 2.815 8.00 7.00 6.00 2.00 3.00 5.00 8.44 7.03 4.00 5.86 3.00 4.88 3.75 3.00 2.00 2.50 2.00 1.00 0.00 2011 2012 2013 2014 2015 2016 2017 2018 Ordinary dividend Special dividend 11
Results by geographic area CONTINENTAL EUROPE UK & IRELAND ASIA Austria, Belgium, France, Germany, Netherlands, United Kingdom and Ireland COUNTRIES China, Japan, Singapore, South Korea, Vietnam Poland, Portugal, Spain and Switzerland (Including Corporate) VENDING UNITS 24,550 units 12,055 units 10,105 units % OF THE 52.6% 25.8% 21.6% GROUP 2018 2017 Change 2017 1 2018 2017 Change 2017 1 2018 2017 Change 2017 1 REVENUE £121.1m £111.7m +8.5% £116.3m £63.6m £53.6m +18.8% £53.8m £45.0m £49.4m -8.8% £46.8m OPERATING £31.9m £33.9m -5.8% £35.3m £10.4m £7.3m +42.5% £7.3m £5.4m £8.4m -35.7% £8.0m PROFIT MARGIN 26.3% 28.8% -13.2% 30.3% 16.4% 13.6% +19.9% 13.5% 12% 17.4% -31.0% 17.5% • Continental Europe • Steady revenue growth driven by continued rollout of Revolution units • Operating profit decline reflected investments in long-term research and development projects • UK & Ireland • Operating profit growth includes acquisitions, a benefit from the sale of the head office, and a one-off charge of £2.6 million, relating to the restructuring of the Photo-Me Retail business. • Asia • Revenue decline reflected an oversupply of photobooths in the Japanese market 1 2017 trading results of overseas subsidiaries converted at 2018 exchange rates 12
Net cash FY 2018 investments comprise: £m Laundries £15.2m Kiosks £3.4m 140.0 Photobooth £13.4m Others £3.5m 61.3 (0.3) 120.0 100.0 (35.5) (3) 80.0 (1.4) (0.2) 39.2 60.0 (25.1) 26.7 40.0 (8.3) 20.0 - Opening cash at FX Operating CF Interest paid Investment in Capitalised R&D Acquisitions Dividends Tax Closing cash at Opening FX Operating Interest Investment Capitalised Acquisitions Dividends Tax Closing 30 April 2016 and Financing Estate and and SW 30 April 2017 Net Cash at infrastructure cash flow paid and estate and R&D and Net Cash at (Net) 30 April 2017 financing infrastructure SW 30 April 2018 13
Revenue and profit bridges £m 240 9.2 229.8 230 Revenue 5.8 2.3 2.8 (5) 220 214.7 210 200 190 180 FY2017 FY2018 FX Acquisitions Laundry Price My Number SG&A Finance Other NIM Other 56 3.5 54 Profit before tax 3.7 52 50.2 (1.1) 0.8 (0.9) 50 0.9 48 (0.7) 48 (2.9) (1.1) 46 44 42 40 38 14
ERIC MERGUI C hief Operat ing Of f icer BUSINESS REVIEW
Vending units in operation CONTINENTAL EUROPE UK & IRELAND ASIA 13,500 25,000 11,000 Number of vending units in operation 24,500 10,800 10,908 13,000 13,287 24,550 10,600 24,000 12,500 23,500 10,400 23,751 12 500 12,000 23,000 10,200 12,055 10,200 10,105 22,800 10,000 22,500 11,500 22,000 9,800 11,000 21,500 9,600 2016 2017 2018 2016 2017 2018 2016 2017 2018 • Photobooth estate +3.9%, while • Decline in units reflects restructuring • Steady growth driven by continued the decline in overall vending units of Photo-Me Retail, which is now deployment of Revolution units reflected the removal of old sticker delivering profitability machines 3.4% 0.9% 0.4% 10.8% Number of vending units in operation 18.5% 1.0% 53.6% 7.8% 28.3% (% of estate) 51.7% 95.3% 19.1% 3.8% 5.3% Photobooth Kiosk Laundry Children's rides Other 16
Identification - overview PHOTOBOOTH ESTATE • Established network of 29,015 photobooths , representing 62% of total vending estate • Presence in 18 countries • Integrated software to ensure conformity to ISO and ICAO photo ID regulations • Dedicated support maintenance and remote telemetry • Market-leading brands across all operating regions GROWTH DRIVERS • Demand from governments for cheaper and more secure services • Photo- Me’s major networks of photobooths can provide governments with customer points of contact across the country 17
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