Me Group International Plc · LSE:MEGP
Me Group International — Photo-Me International — H1 2020 Earnings Presentation
31 slides from Me Group International's earnings presentation, Dec 10, 2019
Slide 1: Interim Results for the Six Months Ended 31 October 2019
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2019 10 DECEMBER 2019
Slide 2: Overview
SERGE CRASNIANSKI CHIEF EXECUTIVE OFFICER & DEPUTY CHAIRMAN OVERVIEW
Slide 3: Agenda
AGENDA • FINANCIAL AND OPERATIONAL SUMMARY • OUR BUSINESS MODEL • FINANCIAL REVIEW • BUSINESS REVIEW • INNOVATION AND DIVERSIFICATION • CONCLUSION 3
Slide 4: Financial Summary
FINANCIAL SUMMARY • Further revenue and profit growth • Continued strong cash generation from operations • Interim dividend maintained at 3.71 pence per Ordinary share Reported Revenue up Underlying Revenue¹ Adjusted Profit before tax2 3.3% at £123.9m up 0.4% up 6.7% at £28.5m (H1 2019: £119.8m) (H1
Slide 5: Operational Summary
OPERATIONAL SUMMARY Continued expansion of Laundry business Identification remains resilient; underpinned by strong performance in France and Japan Kiosk revenue growth ‘KIS Food’ segment formed following acquisition of Sempa in April 2019 5
Slide 6: Business Model and Growth Strategy
BUSINESS MODEL AND GROWTH STRATEGY 6
Slide 7: Financial Review
STEPHANE GIBON CHIEF FINANCIAL OFFICER FINANCIAL REVIEW
Slide 8: Key Financials
KEY FINANCIALS £m REPORTED REVENUE 140 120 • Reported revenue up 3.3% at £123.9m 122.2 119.8 123.9 (up 1.8% at constant currency) 100 110.6 80 92.8 • Underlying revenue1 up 0.4%. 60 40 • Cash generated from operations 20 up 13.7% to £41.1m 0 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 £m EBITDA 50 40% •
Slide 9: Key Financials
KEY FINANCIALS £m REPORTED PROFIT BEFORE TAX % 35 30% • Reported profit before tax up 30 32.9 8.8% at £28.3m 25% 31.0 25 28.3 25.8 26.0 20% • Adjusted profit before tax2 up 20 6.7% at £28.5m; excluding H1 15% 15 2019 and H1 2020 adjustments 10% 10 5% • Reported profit before tax 5 margin increased t
Slide 10: Earnings per Share and Dividends
EARNINGS PER SHARE AND DIVIDENDS DILUTED EARNINGS PER SHARE 7.00 6.00 6.40 5.84 5.95 Pence per share 5.00 5.33 • Diluted earnings per share 6.0p 4.98 4.00 • Maintained interim dividend per share 3.00 of 3.71p 2.00 • £31.9m cash will be returned to 1.00 shareholders via dividend payments in 2020 0.00
Slide 11: Net Cash Bridge
NET CASH BRIDGE £m 120 68.3 100 80 (27.6) (1.7) 60 (10.2) 40 32.4 25.2 (31.9) 20 (4.1) 0 Opening Operating Investment in Capitalised Acquisitions Dividends Tax Closing Net Cash at cash flow estate and R&D and SW Net Cash at 30 October 2018 infrastructure 30 October 2019 • Excluding the acquisition o
Slide 12: Revenue Bridge
REVENUE BRIDGE £m 130 3.9 (0.2) 0.4 125 123.9 3.5 (2.6) (0.5) (0.4) 119.8 120 115 110 105 100 From Laundry H1 2019 B2B Photobooths Kiosks Other Sales H1 2020 acquisitions except B2B 12
Slide 13: Reported PBT Bridge
REPORTED PBT BRIDGE £m 31 0.2 30 1.0 29 0.5 (0.7) 28.3 1.8 (0.7) 28 (0.2) 27 0.2 26.0 26 25 24 Laundry Finance and H1 2019 FX Acquisitions Restructuring Kiosks Photobooth Sales H1 2020 except B2B Other Gains 13
Slide 14: Results by Geographic Area
RESULTS BY GEOGRAPHIC AREA CONTINENTAL EUROPE UK & REPUBLIC OF IRELAND ASIA Austria, Belgium, France, Germany, Netherlands, United Kingdom and Ireland China, Japan, Singapore, COUNTRIES Poland, Portugal, Spain and Switzerland (Including Corporate) South Korea, Vietnam VENDING UNITS 25,436 units 11,3
Slide 15: Business Review
ERIC MERGUI CHIEF OPERATING OFFICER BUSINESS REVIEW
Slide 16: Vending Units in Operation
VENDING UNITS IN OPERATION CONTINENTAL EUROPE UK & REPUBLIC OF IRELAND ASIA 13,000 10,500 Number of vending units in operation 26,000 10,000 24,000 12,000 10,061 25,436 10,105 9,500 10,037 12,055 24,787 11,909 24,550 22,000 11,000 11,357 9,000 20,000 10,000 8,500 18,000 9,000 8,000 16,000 8,000 7,50
Slide 17: Identification
IDENTIFICATION OVERVIEW • World’s largest operator of photobooths with H1 2020 H1 2019 Change market-leading brands across all operating regions Number of units in operation 28,439 28,421 +0.1% • Established network of 28,439 photobooths, Percentage of total Group vending estate 61.0% 61.0% represen
Slide 18: Laundry
LAUNDRY OVERVIEW H1 2020 H1 2019 Change • Rapidly expanding business area with 5,179 units in operation Total laundry units deployed 5,179 4,636 +11.7% (owned, sold and as a result of acquisitions) • Key growth driver for the Group Total revenue from laundry operations £25.6m £21.9m +16.9% • Three k
Slide 19: Kiosks
KIOSKS OVERVIEW Change • Network of 5,508 digital printing kiosks in H1 2020 H1 2019 % operation Number of units in operation 5,508 5,533 (0.5)% • Key markets of France, the UK and Switzerland Percentage of total Group vending estate 12.0% 12.0% - • Wide range of competitively priced print (number o
Slide 20: Innovation and Diversification
SERGE CRASNIANSKI INNOVATION AND DIVERSIFICATION
Slide 21: KIS Food
KIS FOOD OVERVIEW H1 2020 • Acquisition of Sempa marked entry into fresh fruit and Number of units in operation 2,788 vegetable juice market Revenue £3.5m • Photo-Me aims to become global leader in distribution of self-service fresh fruit juice machines Profit before tax £1.8m • Two-fold growth stra
Slide 22: Investment in Innovation
INVESTMENT IN INNOVATION OVERVIEW • Investment in innovation remains a core focus of the business, supported by in-house R&D capabilities focused on driving innovation and diversification EXTENDING FOOD • The Group is developing B2B and B2C product range including juice options alongside orange juic
Slide 23: Conclusion
CONCLUSION Further revenue and profit growth despite headwinds in the UK Laundry expansion continues to progress well New ‘Food’ segment expected to form significant part of Group’s growth strategy We remain confident that the Group will continue to perform well overall (subject to the macroeconomic
Slide 24: Questions
QUESTIONS
Slide 25: Appendices
APPENDICES
Slide 26: Income Statement
INCOME STATEMENT H1 2020 H1 2019 £ '000 £ '000 Revenue 123.9 119.8 Cost of sales (86,363) (84,587) Gross profit 37,498 35,174 Other operating income 645 788 Administrative expenses (9,152) (10,309) Share of post-tax profits from associates 53 30 Operating profit 28,991 25,683 Analysed as: Operating
Slide 27: Income Statement (Continued)
INCOME STATEMENT (CONTINUED) H1 2020 H1 2019 £’000 £’000 Profit for the year attributable to: Owners of the Parent 22,492 20,140 Non-controlling interests 47 67 22,539 20,207 Total comprehensive income attributable to: Owners of the Parent 22,657 21,593 Non-controlling interests 46 85 22,703 21,678
Slide 28: Cash Flow
CASH FLOW H1 2020 H1 2019 £'000 £'000 Cash flow from operating activities Profit before tax 28,343 26,015 Finance cost 714 238 Finance revenue (66) (10) Other gains - (560) Operating profit 28,991 25,683 Share of post- tax profit from associates (53) (30) Amortisation of intangible assets 1,592 1,37
Slide 29: Cash Flow (Continued)
CASH FLOW (CONTINUED) H1 2020 H1 2020 £’000 £’000 Net cash generated from investing activities (16,588) (11,527) Cash flows from financing activities Issue of Ordinary shares to equity shareholders - 134 Repayment of borrowings (7,886) (3,617) Repayment of capital element of finance leases (90) (86)
Slide 30: Balance Sheet
BALANCE SHEET H1 2020 H1 2019 £'000 £'000 Assets Non-current assets Goodwill 27,063 17,962 Other intangible assets 14,550 13,815 Property, plant & equipment 114,224 93,895 Investment property 640 676 Investment in - associates 409 429 Financial instruments held at FVTPL 1,473 - Financial assets held
Slide 31: Balance Sheet (Continued)
BALANCE SHEET (CONTINUED) H1 2020 H1 2019 £’000 £’000 Liabilities Non-current liabilities Financial liabilities 57,715 45,620 Post-employment benefit obligations 5,688 5,523 Deferred tax liabilities 5,585 2,741 Trade and other payables 331 - 69,319 53,884 Current liabilities Financial liabilities 18
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