Aucun titre de diapositive

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Preliminary Results Year to 30 April
2006 PRESENTATION TO ANALYSTS AND
INVESTORS 6 July 2006
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Legal disclaimer
This presentation contains statements that are
or may be forward looking statements with respect
to the financial condition, operations and
businesses of PMI. All statements other than
statements of historical facts included in this
presentation may be forward looking
statements.   These forward-looking statements
involve known and unknown risk, uncertainties and
other factors which may cause the actual
performance or achievements of PMI or industry
results, to be materially different from any
performance or achievements expressed or implied
by such forward-looking statements. These
forward-looking statements are based on numerous
assumptions regarding the present and future
business strategies of PMI and the environment in
which it will operate in the future which are not
necessarily indicative of future outcomes or the
financial performance of PMI and should not be
considered in isolation.
Legal disclaimer
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PRESENTERS
Vernon Sankey Introduction Conclusion Chairman

Serge Crasnianski Business Review Chief
Executive Officer
Jean-Luc Peurois Financial Review Group Finance
Director
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COMPANY OVERVIEW

• The specialist digital imaging company positioned
  to exploit the digital
• revolution
• Vending 35,200 sites over 85 in the UK,
  France and Japan
• Manufacturing unique and complete range of
  photo-processing equipment from wholesale labs,
  to minilabs, to end-consumer vending kiosks

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KEY POINTS

• PMIs second best ever result, after last years
  record
• Vending progressed
• Manufacturing did not repeat last years
  outstanding performance
• Strategic review may or may not lead to an offer

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STRATEGIC REVIEW

• 5 June 2006 announcement
• Followed press speculation
• Confirmed strategic review which may or may not
  lead to an offer
• Announced appointment of JPMorgan Cazenove to
  advise in this regard
• The process continues

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FINANCIAL REVIEW
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SUMMARY INCOME STATEMENT
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ACTIVITY ANALYSIS OF REVENUE AND PROFIT
before exceptional item
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GEOGRAPHICAL ANALYSIS OF REVENUE AND PROFIT
before exceptional item
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SUMMARY BALANCE SHEET
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SUMMARY CASH FLOW
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INTERNATIONAL FINANCIAL REPORTING STANDARDS

• Overall impact on 2005 pre-tax profit is a
  positive 0.9m
• Principal changes
• Abolition of goodwill amortisation increased
  profit by 0.6m
• Use of average rather than closing exchange rates
  increased profit by 0.3m
• No change
• Capitalisation of RD already applied under UK
  GAAP
• Equity excluding minority interests at 1 May 2005
  is increased by 4.6m, of which dividends 4.4m

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KEY POINTS OF FINANCIAL REVIEW

• Income Statement
• PMIs second best ever result, with good Vending
  performance
• Balance Sheet
• Total shareholders equity up 19
• Cash Flow Statement
• 21m cash outflow reflects high capex and
  atypical working capital outflows
• Dividends per Share
• Up 20

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BUSINESS REVIEW
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VENDING DIVISION SPLIT OF SITES BY TYPE

• Increasing offering beyond photobooths (71 of
  sites a year ago)
• Great majority of machines imaging-related

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VENDING DIVISION GEOGRAPHICAL SPLIT OF SITES

• 35,200 locations, up 6,800
• In c.20 industrialised countries
• Over 85 of sites in UK, France and Japan

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VENDING DIVISION -PHOTOBOOTHS

• Stable revenue at 144m (VAT included)
• 20,600 (2005 20,100) sites
• 88 (2005 83) digital
• Fairly predictable and cash generative business
• Improved UK market position, Japan cost base
• w.e.f. current year, regulatory benefits in Japan
  and France

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VENDING DIVISION - DIGITAL MEDIA KIOSKS

• Revenue up 169 to 7.5m
• 3,500 (2005 1,400) sites, of which 2,300 (2005
  1,000) in France
• Encouraging France roll-out
• Roll-out continues in current year

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VENDING DIVISION - OTHER VENDING EQUIPMENT

• Revenue up 42 to 15.7m
• 11,000 (2005 6,900) sites, of which 5,800 (2005
  2,800) UK kiddie rides
• Expansion of UK kiddie rides
• Possible further expansion in leisure sector

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VENDING DIVISION - STRATEGY

• Upgrade photobooths
• 11.0m spent on 2,100 units in 2006
• Roll out digital media kiosks
• 7.8m spent on 2,200 units in 2006
• Diversify into kiddie rides and other leisure
  areas leveraging off site network, customer
  relationships, and maintenance /cash collection
  infrastructure
• 4.6m spent on 2,900 units in 2006
• Expand into other territories, notably China

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MANUFACTURING DIVISION - UNIQUE AND
COMPREHENSIVE RANGE
Wholesale lab lt400,000
FASTPRINT
Professional lab lt70,000
FASTSCAN
DKS 3
Retail lab lt10,000
DKS 15XX
DKS 900
Consumer lab lt7,000
SYMPHONIA 2
lt1,000
lt 20,000
800-1,500
250-1,000
Prints per hour
2,000
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MANUFACTURING DIVISION MINILABS H1 TRADING

• Much reduced unit sales
• Market
• Print retail price wars and reduced demand
  softened demand for minilabs
• Some major chains were waiting for their analogue
  minilabs to be fully depreciated
• Some potential buyers were waiting for
  introduction of third generation minilabs
• Some companies exiting the business - AgfaPhoto,
  Kodak and Konica - were offloading minilabs
• PMI
• Kodak was no longer a customer
• PMI was reserving some minilabs for CVS

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MANUFACTURING DIVISION - MINILABS H2 TRADING

• H1 market weakness only partially reduced
• H1 niggling technical problems resolved
• Greatly increased unit sales, notably to CVS, at
  lower average margin

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MANUFACTURING DIVISION MINILABS THE FUTURE -
DKS 3

• High productivity, up to 2,000 prints/hour
• Print format up to 12 x 18
• Smallest footprint on the market for this
  performance level
• Best value for money on the market
• The basis for a new minilab range
• Volume production commences July 2006

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MANUFACTURING DIVISION - WHOLESALE LABS

• Trading
• Revenue up 13 and profit increased
• The AgfaPhoto acquisition
• Stock purchased for 6.1m in November 2005
• Little financial impact in year
• Positive contribution expected in current year
• Last substantial competitor eliminated

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THE MARKET - NUMBER OF DIGITAL CAMERAS
Forecast number of digital cameras and camphones
worldwide (m)
CAGR 36
CAGR 53
Photo-Me is well placed to benefit from this
expected growth with its suite of digital products
Source PMA Marketing Research (February 2005)
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THE MARKET QUALITY OF DIGITAL IMAGES
In 2008, more than 50 of camphones are expected
to have a minimum resolution of 3 mega pixels
Camphone resolution improvement (North America)
Other markets
Growth in 3m pixels resolution
55
Source PMA Marketing Research (February 2005)
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THE MARKET DIGITAL PRINTS
Imaging marketUSA
Today
Source PMA Marketing Research (February 2005)
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KEY POINTS OF BUSINESS REVIEW

• Vending - increased revenue and profit
• Manufacturing did not repeat last years
  outstanding result, notwithstanding much improved
  H2

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CONCLUSION
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CURRENT YEAR OUTLOOK

• Board confident in both Vending and Manufacturing
• Vending should benefit from recent capex and
  regulatory requirements in Japan and France
• Manufacturing
• wholesale labs will benefit from AgfaPhoto
  acquisition
• minilabs prospects uncertain as market in state
  of flux, but excellent new third-generation DKS3
  product

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BUSINESS STRENGTHS

• Digital market
• well positioned to benefit from trends in the
  digital market with growth in digital capture
  devices and digital printing
• Technological advantage
• PMI has a long history of technical leadership
  and has remained at the forefront of
  technological advancement in photo-processing
• Unrivalled network of sites
• A worldwide network of 35,200 sites - the imaging
  worlds largest in high footfall locations
• Strength of customer relationships
• Established customer relationships, supported
  contractually
• Limited direct competition
• in both Vending and Manufacturing
• Low-cost manufacture
• by sub-contractors, of both vending equipment and
  equipment for re-sale
• Product diversification
• A policy of diversification into alternative
  coin-operated equipment, benefiting from
  operational efficiencies associated with its
  service organisation
• Growth potential
• Growing need for identification
• Potential from the leisure market
• Expansion into new markets