Me Group International Plc · LSE:MEGP
Me Group International — Photo-Me International — H1 2018 Earnings Presentation
25 slides from Me Group International's earnings presentation, Dec 11, 2017
Slide 1: Interim Results for the Six Months Ended 31 October 2017
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2017 11 December 2017 INTERIM RESULTS
Slide 2: Overview - Serge Crasniansky, CEO
SERGE CRASNIANSKI, CEO OVERVIEW
Slide 3: Agenda
Agenda • Highlights • Financial Review • Business Review • Innovation & Growth Strategy • Conclusion INTERIM RESULTS 3
Slide 4: Overview: Financial highlights
OVERVIEW Financial highlights • Strong revenue growth and cash generation • 20.1% dividend growth, in line with progressive dividend policy • Ongoing investment for future growth Reported revenue Cash generated from Reported EBITDA operations +10.5% to £122.2m +11.4% to £44.9m £39.9m Net cash positi
Slide 5: Overview: Operational highlights
OVERVIEW Operational highlights Further progress in the • Continued rollout of encrypted photo ID upload technology in Ireland deployment of ID security technology • Positive conclusion to discussions with Her Majesty’s Passport Office • E-passport photobooth being rolled out across the UK from mid
Slide 6: Financial Review - Gabriel Pirona, CFO
GABRIEL PIRONA, CFO FINANCIAL REVIEW
Slide 7: Key financials
Key financials Revenue £m EBITDA £m 50 40% 140 120 40 122.2 122.2 113.3 35% 44.9 40.5 100 110.6 109.2 106.5 105.4 101.3 33.8 30 33.4 96.4 31.8 92.8 80 60 20 30% 40 10 20 0 0 25% H1 2014 H1 2015* H1 2016 H1 2017 H1 2018** H1 2014 H1 2015* H1 2016 H1 2017 H1 2018 Reported Constant currency (excl. mini
Slide 8: EPS and Dividends
EPS and Dividends Diluted EPS 7.00 6.00 6.40 5.84 Pence per share 5.00 4.98 4.73 4.00 4.27 3.00 2.00 • Diluted earning per share up 9.6% to 6.40p 1.00 • Interim dividend increased by 20.1% to 3.71p 0.00 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 per share • £34.6m paid in dividend in the last 12 months
Slide 9: Results by geographic area
Results by geographic area Continental Europe UK & Ireland Asia & ROW Austria, Belgium, France, United Kingdom and China, Japan, Singapore, Countries Germany, Italy, Netherlands, Poland, Republic of Ireland South Korea, Vietnam and USA Portugal, Spain and Switzerland (including Corporate) Vending un
Slide 10: Net cash
Net cash £m 85 2.8 0.4 39.9 75 65 (16.0) (1.3) (1.3) 55 (11.6) 45 (4.9) 47.1 39.2 (0.1) 35 Opening Cash Closing Proceeds Net Cash at generated Other non Investment Net Cash at FX from sale Acquisitions R&D Dividends Tax 30 April from operating in estate 31 October of assets 2017 operations 2017 INTE
Slide 11: Revenue and profit bridge
Revenue and profit bridge £m 130 5.5 125 8.2 Revenue (3.4) 120 (1.2) (0.3) 115 2.8 122.2 110 105 110.6 100 Laundry Impact of Net impact of Identification HY 2017 FX Acquisitions (excluding Japan investments on Other HY 2018 one offs* volume acquisitions) depreciation 38 37 Profit before tax 36 3.0 3
Slide 12: Summary
Summary • First half performance in line with the Board’s expectations • Investment of £18.6 million in future growth focused on laundry activities, through acquisitions and organic growth by expanding estate of owned and operation Revolution units and launderettes • As anticipated, some softening o
Slide 13: Business Review - Eric Mergui, COO
ERIC MERGUI, COO BUSINESS REVIEW
Slide 14: Vending units in operation
BUSINESS REVIEW Vending units in operation Continental Europe UK & Ireland Asia & ROW Number of vending units in operation 13,000 10,600 24,400 10,500 10,553 12,900 12,951 24,229 10,400 24,000 12,800 10,300 12,700 10,200 23,600 12,600 10,100 10,145 23,605 12,602 12,500 10,000 12,400 9,900 23,200 H1
Slide 15: Photobooths and Integrated Biometric Solutions
BUSINESS REVIEW PHOTOBOOTHS AND INTEGRATED BIOMETRIC SOLUTIONS Identification • Focus on identification solutions • Continued deployment of encrypted photo ID upload technology for Online Passport Applications in Ireland • 200 photobooths enabled since launch in April 2017 • On track to deploy a tot
Slide 16: Unattended Laundry Services
BUSINESS REVIEW UNATTENDED LAUNDRY SERVICES Laundry • 2,332 units in 12 countries • Successful expansion of laundry on track to reach medium term target by 2020 • Expansion primarily focused in France and Ireland • Increased output capacity by manufacturing partner to 150 Revolution machines per mon
Slide 17: Unattended Laundry Services: Growth in laundry units
BUSINESS REVIEW UNATTENDED LAUNDRY SERVICES Growth in laundry units Total number of deployed units Average takings per Laundry revenue owned unit (€)* (£m)* 2,500 2,332 1,520 1,508 20.0 17.3 2,000 1,579 1,480 15.0 1,500 9.9 1,440 10.0 1,400 1,000 1,400 5.0 500 1,360 0.0 0 1,320 H1 2017 H1 2018 H1 20
Slide 18: High-Quality Digital Printing
BUSINESS REVIEW HIGH-QUALITY DIGITAL PRINTING Kiosks • Continued expansion of SpeedLab Cube and SpeedLab Bio new generation kiosks in line with strategy • A further 311 machines deployed, compared with H1 2017 • Average monthly gross taking of £800 per machine across the global estate, reaching £1,5
Slide 19: Growth strategy to 2020
GROWTH STRATEGY & INNOVATION Growth strategy to 2020 \ BRAND CUSTOMER LONG-TERM TECHNOLOGY & STABLE CASH ESTABLISHED RECOGNITION EXPERIENCE PARTNERSHIPS INNOVATION FLOWS NETWORK Photo-Me’s products providing easy to use, with the leading continuous focus on utilised to fund R&D of engineers able to
Slide 20: Growth Strategy & Innovation: Innovation
GROWTH STRATEGY & INNOVATION Innovation • Continued investment in new technologies and products • Secure ID upload technology for governments installed in France and Ireland and rolling out in the UK from mid December • Focus on front-end retail banking services and proprietary 3D Capture and enrolm
Slide 21: Conclusion - Serge Crasniansky, CEO
SERGE CRASNIANSKI, CEO CONCLUSION
Slide 22: Conclusion
GROWTH STRATEGY & INNOVATION Conclusion • Strong first half performance in line with Board expectations • Good operational progress made against strategy • Steady expansion programme in all areas of laundry business • Board anticipates laundry revenue will continue to grow significantly as a proport
Slide 23: Appendix
APPENDIX
Slide 24: Business overview
GROWTH STRATEGY & INNOVATION Business overview • Photo-Me International PLC (Photo-Me), operates, sells and services a wide range of instant service equipment • 47,325 units in operation in 18 countries • International operations and technology innovation focused on three principal business areas: •
Slide 25: At a glance
GROWTH STRATEGY & INNOVATION At a glance Photo-Me estate by number of units Operations in 18 countries worldwide (% of total estate) Austria, Belgium, China, France, Germany, Ireland, Italy, Japan, Netherlands, Poland, 5,404 Portugal, Singapore, South Korea, Spain and Switzerland, Vietnam, UK, USA 5
Photo-Me International — H1 2018 Earnings Presentation on 6ix