Me Group International Plc · LSE:MEGP
Me Group International — Photo-Me International — H1 2011 Earnings Presentation
26 slides from Me Group International's earnings presentation, December 2010
Slide 1: Interim Results – Half-year to 31 October 2010
Interim Results – Half-year to 31 October 2010 PRESENTATION FOR INVESTORS AND ANALYSTS December 2010 1 Instantly Yours
Slide 2: Legal disclaimer
Legal disclaimer This presentation contains statements that are or may be forward-looking statements with respect to the financial condition, operations and businesses of Photo-Me. All statements other than statements of historical facts included in this presentation may be forward-looking statement
Slide 3: Highlights
HIGHLIGHTS • Strong increase in profitability – turnover +1%, PTP +56% • Progressive restructuring has led to lower costs and better efficiencies • Improvement led by Operations division • Orders for 1,300 Pocketbook Makers from OEMs • £10m rental (over 9 years) agreed for surplus building in Grenob
Slide 4: Financial Review
FINANCIAL REVIEW 4 Instantly Yours
Slide 5: Income Statement
INCOME STATEMENT 6m to 31 October (£m) 2010 2009 (on continuing operations) Revenue: 118.4 117.7 Change +0.6% EBITDA 28.5 27.1 Change +5.2% Operating profit 14.2 10.1 Change +40.1% PBT 14.0 9.0 Change +55.7% Adjusted PBT 14.0 11.2 Change +25.6% 5 Instantly Yours
Slide 6: By Division
BY DIVISION Revenue Operating Profit 6m to 31 October (£m) 2010 2010† 2009 2010 2010† 2009 (on continuing operations, excluding special items) Operations 97.1 96.1 93.9 15.4 15.5 11.6 Change +3.4% +2.4% +32.4% +33.1% Sales & Servicing 21.3 22.1 23.8 0.6 0.7 2.2 Change -10.7% -7.5% -72.7% -68.6% Grou
Slide 7: By Geographic Area
BY GEOGRAPHIC AREA Revenue Operating Profit 6m to 31 October (£m) 2010 2010† 2009 2010 2010† 2009 (on continuing operations, excluding special items) Continental Europe 66.5 68.9 68.8 10.3 10.6 9.9 Change -3.4% +0.1% +3.8% +7.7% UK & Ireland 30.4 30.5 30.5 2.2 2.2 1.2 Change -0.3% 0.0% +80.0% +80.0%
Slide 8: Cash Bridge
CASH BRIDGE 45 2.7 40 14..4 35 30 1.1 29.4 25 (10.2) (0.9) 14.2 20 15 8.1 10 5 0 Opening net Operating profit Depreciation & Movements in Capex Dividends Others Closing net cash cash in 2010 amortization w orking capital 8 Instantly Yours
Slide 9: Business Review
BUSINESS REVIEW 9 Instantly Yours
Slide 10: Operations
OPERATIONS Basics • 82% (80%) of total revenue • Total vending sites 44,200 (42,900) • Europe (mainly France) 18,300; UK & Ireland 17,500; Asia 8,400 sites • Photobooths ca 50% of sites but 83% of revenue Highlights • Revenue up 3.4%; Operating Profit up 32.4% • Profitability up in all three major t
Slide 11: Operations: Sites by Type
OPERATIONS: SITES BY TYPE 44,200 50,000 45,000 40,000 35,000 28,400 Number of units 30,000 25,000 20,000 15,000 71% 59% 50% 50% 49% 49% 50% 10,000 5,000 0 2005 2006 2007 2008 2009 2010 Oct-10 Photobooths Digital Media Kiosks Amusement Machines Others 11 Instantly Yours
Slide 12: Photobooths
PHOTOBOOTHS • Photo-Me is the world leader with a large installed base of 22,150 units • Very cash generative for Photo-Me and good returns for site owners • Strategic plan underway to optimise site locations • Reduction of commission payments also a priority – high operational gearing! • Intention
Slide 13: Extensive Operations Range
EXTENSIVE OPERATIONS RANGE PHOTOBOOTHS Easybooth Minibooth Universal booth Solar Booth Starbooth AMUSEMENT IX Simulator Kiddie Rides Boulie Machine Crane X-Factor SERVICES Digital Media Kiosk Business Card Machine Self-service launderettes MyPocketbook Photobook Maker 13 Instantly Yours
Slide 14: Operations – Other Products
OPERATIONS – OTHER PRODUCTS • Digital printing kiosk numbers now around 5,000 • Principal focus is French market, which remains positive • Amusement machine business (mainly in UK) is slightly decreasing • New product development continues 14 Instantly Yours
Slide 15: Sales & Servicing
SALES & SERVICING Basics • The creative area, centred around KIS subsidiary, based in Grenoble • Sales externally and to Photo-Me Operations for deployment • Production both in-house and outsourced • Business has been restructured over last 2 years and further R&D efficiencies likely Highlights • Re
Slide 16: Research and Development
RESEARCH AND DEVELOPMENT Photo-Me invests large amounts in research and development • £3.3m invested in 2009/10 • 50 R&D engineers and Team leaders • Mastering of technologies such as: Optoelectronic, digital, logistic, electronic, payment systems, 3-dimension etc … 16 16 Instantly InstantlyYours Yo
Slide 17: What Is a Photobook?
WHAT IS A PHOTOBOOK? Formats ranging from Different finish levels for 4”x6” to 8”x12” different occasions / markets Average # photos Hard cover Soft 46,5 43% cover Average # 57% pages 23,2 Gift Personal 46% use 54% According to InfoTrends, more than 90% of customers are willing to pay more for highe
Slide 18: Photobook Market Evolution in France
PHOTOBOOK MARKET EVOLUTION IN FRANCE 10€ < Consumer < 75€ 250€ < Professional < 1000€ Average selling prices Consumer Photobook 27€ Professional P’book to 450€ 18 Instantly Yours
Slide 19: Photobook Market Key Features
PHOTOBOOK MARKET KEY FEATURES Today, because of the lack of adapted offers, only 10% of photobooks are ordered at retail in Europe. Promotion happens on-line: invisible for a great part of the public. In terms of online photobooks, according to Kodak, 70% of their photobook orders have been cancelle
Slide 20: Photobook Summary
PHOTOBOOK SUMMARY • A new retail product with a low entry price point - £5/$5/€5 • Initial suite of products now developed: – Managed retail unit – Smartlab incorporating a Photobook Maker – Range of vending units • Further products under development • Protected by patents • OEM sales programme and
Slide 21: Outlook
OUTLOOK • Strong product pipeline • Lower cost base; better efficiency • Programme to re-energise core photobooth business through resiting/lower commission/new units • New growth platform in China • Significant potential for Photobook product suite • MOU signed with large OEM for 1000 Photobook Bui
Slide 22: Photo-Me Group
PHOTO-ME GROUP The world leader in photobooths Photo-Me International • Founded in 1954 and listed on the London Stock Exchange since 100% 100% 100% 1962 KIS Photomaton NAP Prontophot 100% France France Japan Belgium • World’s leading operator of photobooths with more than Fotofix 100% 22,000 worldw
Slide 23: Two Business Models: Sales and Operations
TWO BUSINESS MODELS: SALES AND OPERATIONS Sales & Servicing Operations Research and Operation of unattended Development vending equipment Manufacturing Photobooths Sales Digital Printing Kiosks After Sales Servicing Photobook Makers Amusement machines of Vending equipment and Photo processing equipm
Slide 24: Key Dates
KEY DATES 1981 Kis invents 1 hour photo development minilabs 1994 Photovision – First digital photobooth 2000 DKS digital minilabs 2004 Digital printing kiosks 2006 Photobook Pro album making machine 2009 Photobook Maker 2010 All-in-one kiosk and Pocketbook Maker 24 24 Instantly InstantlyYours Yours
Slide 25: Balance Sheet
BALANCE SHEET Unaudited Audited 31 October 30 April 2010 2010 £’000 £’000 Assets Non current assets (excl. cash equivalent) 81,488 84,460 Current assets (excl. cash) 35,445 42,488 Cash and cash equivalent 46,765 42,486 Total assets 173,698 169,434 Liabilities Non current liabilities (excl. Loans) 8,
Slide 26: Shareholders Structure
SHAREHOLDERS STRUCTURE Serge Crasnianski Others 22.11% 26.95% Legal & General Western Group Plc Management 3.03% Overseas Ltd Artemis Investment 18.28% Management Ltd 4.99% Schroder Investment Management Ltd Dan David 11.45% 13.19% 26 26 Instantly InstantlyYours Yours
Photo-Me International — H1 2011 Earnings Presentation on 6ix