investor visit - photo-me...
TRANSCRIPT
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Photo-Me International PlcInvestor Visit
Monday 6 February 2017 | Echirolles, France
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• Welcome
• Business overview
• Strategy 2017 to 2020
• New product innovation
• Security and the 3D enrolment booth
• Tour of KIS facility
• Product demonstrations
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Agenda
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Business overview
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• Photo-Me operates, sells and services a wide range of instant service vending equipment
• Operations and technology innovation focused on three principle areas: Photobooths, Laundry and Kiosks & Copiers
• Currently operates 46,760 unattended vending locations in 17 jurisdictions across Europe and Asia
• Benefit of scale with dedicated team of field engineers to support, maintain and upgrade estate
• Continued implementation of diversification strategy - investment and development of technologies with multiple product applications to be deployed across key geographies
• Long standing relationships with leading brands and site owners
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Photo-Me International PLC (“Photo-Me”)At a glance
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Photo-MeA snapshot
28,033 units(60% of estate)
1,768 units(4%)
5,549 units(12%)
5,265 units(11%)
6,137 units(13%)
Photobooths
Laundry machines operated
Digital printing kiosks
Childrens rides
Other vending units
Products: current Photo-Me estate by number of units
(as of 31 October 2016)
Geographic presence in 17 countries
To be inserted
With imminent expansion into Russia and Italy46,752 vending units in operation worldwide
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Overview
• World leading operator of photobooths with market leading brands in each jurisdiction
• Established network of c.28,000 units, offering four product models
• 4,700 next generation contemporary machines designed by Philippe Starck (c.17% of total photobooth estate)
• Significant opportunity to deploy digital security features across other geographies in addition to ANTS (Agence Nationale des Titres Sécurisés) in France and the Republic of Ireland
PhotoboothAn overview
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ICAO compliant ID photos
Aesthetic design results in
lower commissions charged
to Photo-Me by site owners
3D and ePhoto upgradable
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Market drivers
• Need for photographic ID on official documents
• Steady replacement rates
• Population growth
• Increasing travel linked to GDP growth
• Increased security/ID requirements
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PhotoboothAn overview
Photobooth estate growth
0
5,000
10,000
15,000
20,000
25,000
30,000
Units
Asia & ROWCAGR +2.0%
Europe CAGR+3.3%
UK CAGR +4.4%UK & Ireland
CAGR +4.4%
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Metropolitan Models Contest
• The recruitment of models for the Metropolitan Models Agency using Photomaton booths in France
• Casting from 1 February 2017
• Price: €10
PhotoboothMulti services – a case study
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All the booths located in
commercial centers and public
transport buildings in the biggest
cities of France
Photo and personal
information
The agency’s
FTP server
WHO CAN PARTICIPATE?
Girls aged 14 to 22 and
boys aged 16 to 22
Girls and boys
aged 5 to 14
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• Group operates nearly 5,500 printing kiosks in Europe, primarily in France, UK and Switzerland
• Easy photo printing from smartphones
• Printing capabilities fully integrated with major social media networks
• 700 units deployed in the first six months
– ASDA Stores, Morrisons
– Average takings (gross) = £4,000 - £5,000 pa, over €10,000 pa at Carrefour
• Relocating all kiosks at Carrefour in France: 1,000 units over 2017 - 2020
Market drivers
• Digital photo sharing across social media platforms
• Europe, US, Asia
• 80% of photos were taken by smartphones in 2016
Printing KiosksAn overview
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• Acquisition of UK photo division of ASDA Stores Limited completed November 2016
• Further strengthens Photo-Me’s market position in attractive, high footfall locations and enhances online photo-processing offering
• 170 self service photo corners
• 191 shops
• 400 Photo-Me digital photo printing kiosks set up
• £6.0 million investment
• Sites are being re-branded Me by Photo-Me
Photo-Me Retail – photo shopsAn overview
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The data is
transmitted via the
Photomaton® server
In case of an irregularity an email alert
is sent to the engineer’s smartphone
allowing immediate response
The status of each machine
can also be checked on a
desktop computer or tablet
The remote maintenance software
installed in each booth or kiosk
monitors the technical state of the
machine and transmits a number of
different data: maintenance data,
frequentation data and monitoring
data
• The Group is committed to ensure optimal availability of equipment and maintained high quality service for the duration of customer contracts
• Telemetry service provide automated feedback to help to enable quick intervention for repairs
• All Photomaton® machines (except photocopiers) are equipped with remote maintenance software that allows to monitor every machine installed in the field via a 3G or 4G+ connection.
• This remote maintenance software enables us to precisely analyse a number of parameters :
– Constant monitoring of consumables levels
– Warning of low consumables levels
– Constant monitoring of malfunctions: electricity supply problems, technical problems...
Telemetry softwareAutomated monitoring
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• 1,750 owned and operated laundry units in Europe to date
• Target of 6,000 deployed by 2020
• Extend geographic footprint
• Units are either owned/operated by Photo-Me or sold to site operators (target operating/sale ratio of 90/10)
• Outdoor self service launderette available 24/7 – two large washers (1 x 18kg capacity and 1 x 8kg capacity) and a dryer
• 30 minute wash cycles for rapid customer turn around, faster than the competition
• SMS alerts 5 minutes prior to wash cycle finishing, unique to Revolution
• Extending the Revolution range to include the Compact and Mini models
Laundry – RevolutionAn overview
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• Acquired in October 2015 for £2.2 million
• Performance from May to October 2016
– Turnover £1.9 million
– Profit before tax £0.4 million
• Provide Photo-Me with an entry into the commercial laundry rental market
• Provides B2B laundry services to hospitals, care homes, student accommodation
• Potential to expand into Continental Europe
Laundry – Fowler UKAn overview
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Strategy 2017 to 2020Research and Development
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Key priorities:
• Photobooths
– Extending the booths estate through expansion into new geographies including Italy, Vietnam, Poland, Russia
– Expanding the offering to multi service stations: copier, money transfer (MoneyGram, representing up to 8% of kiosk takings), e-Photo, voting station, competition enrolment
• Laundry - targeting 6,000 Revolutions by 2020
• Laundrette – targeting new openings in our existing geographies; 50 by 30 April 2017 with expansion through franchise and master franchise agreements
• Printing kiosks – taking sites/market share, particularly from Kodak
– Development of premium sites
– Developing new relationships with major retailers (CVS, Walgreen, Walmart)
• Investing in Photo-Me Retail and expanding the concept to continental Europe
Strategy 2017 to 2020
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PhotoboothsTurnkey secured voting system
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Vote & Sign Encrypted Vote
Receipt & IDPhotoPassport
scanning
Authentification Secured & encrypted vote
transmission
Real Time Results
and Monitoring
• Thanks to its wide photobooth estate, Photo-Me is able to develop a reliable automated turnkey votingsolution, quickly scalable to a complete territory
Solution 1 : 100% unmanned automated process through the enabled Starbooths
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PhotoboothsTurnkey secured voting system
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Solution 2 : Pre-vote registration & vote validation process
Solution 3 : Turnkey Voting solution
Enter
Vote Nb
Vote & Sign Encrypted Vote
Receip & ID
Take Photo ID Manual ID
control
Vote Validation Secured & encrypted
vote transmission
Real Time
Results and
Monitoring
Pre-vote registration Vote validation
Manual ID control
Voting MachineVote & Sign
Encrypted Vote
Receip & IDSecured & encrypted
vote transmission
Vote Validation
Option 2
Option 1
Real Time Results and
Monitoring
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• Four research and development (R&D) centres globally:
• Echirolles (France), Shanghai (China), Hanoi (Vietnam), Tokyo (Japan)
• Team of 60 highly experienced engineers specialised in:
• Software development, 3D technology, security, standards, design and unit upgrades
• Grenoble (15,000m2 site) is headquarters of KIS SAS, the Group’s manufacturing subsidiary
• Identification of new market opportunities
• New product industrialisation (pilot production and testing) prior to scaled production
• Continuous investment in refurbishment and upgrade of existing photobooth estate
• Supply and logistics supporting European operations
Research and development capabilitiesInnovation is at the core of the business
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Product overview
• Recently launched latest generation of high quality digital printing kiosks
• Designed in partnership with Philippe Starck
• Transfer of photos from smartphone directly to kiosk via WiFi
• Upload and print from social networks; Facebook, Instagram, Twitter
• Integrated editing software and customisation options
• Multi size compatibility
• New software being developed for photogift services – mugs, canvases, posters, jigsaws, acrylic panels, magnets and keyrings
• Deployed in France (Carrefour), UK (Asda, Morrisons)
Market opportunity
• Europe, US, Asia
• 100,000 Kodak kiosks worldwide becoming obsolete
Printing kiosksNew product development
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Product overview
• 100% self-service gift card kiosk developed in Grenoble
• Magnetic strip, chip or contactless, OR codes or barcodes technology available
• Gift cards can be customised by customers with images on the front and back
• Pre-defined value uploaded onto gift card for use in multi shops in a shopping centre or across a network of shopping centres
• New market opportunity leverage existing relationships with shopping centres
• Currently piloting in Switzerland
Market opportunity
• UK gift card and voucher market has a value of £5 billion every year1
• UK gift card market is estimated to grow annually between 5% to 8%2
• Drives customer loyalty, footfall and sales
Gift Card kioskNew product development
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1 UK Gift Card and Voucher Association2 Trifecta Research Group
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Product overview
• Selfie booths for special events (corporate and personal)
• Light weight, portable and easy assembly in three modules (head, pole, base)
• Selfie Booth can be customised to the event theme as well as homepage and language
• User friendly interface - fun, fast and easy to use
• Chromakey technology to superimpose photos onto themed background
• Direct sharing on social media platforms (Twitter, Facebook and/or by email
• Available with or without 4x6” glossy print option
• Product launched Q2 2016 in France
Market opportunity
• Product targeted at event organisers and photographic companies (for sale) and for private events hire
• Trend toward photo sharing on social media channels
Selfie Booth kioskNew product development
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Product overview
• 100% customised wallpaper printing
• In-store instant printing created in less than 10 minutes
• Bespoke printed wallpaper with your own pictures with photo enhance and editing options
• Choice of three paper finishes; pre-pasted, self-adhesive and canvas
• Trials underway in France and the UK
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Other new product initiativesNew product development
Better photo?
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Other new product initiativesNew product development
Product overview
• Partnership agreement with MoneyGram, the leader in money transfer
• Offers convenient 24/7 money transfer services through Photo-Me booths and kiosks for registered MoneyGram customers
• 20 MoneyGram dedicated kiosks and 80 transaction
kiosks in France (via Speedlab Cubes offering
MoneyGram services)
• Now owned by Alibaba and in discussions to expand the MoneyGram kiosk worldwide
• Representing up to 8% of the takings of the MoneyGram enabled kiosks
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Product overview
• Outdoor launderette comprising two machine and a dryer with a footprint of only 5m2, compared with 10m2 for current Revolution model, but same machine capacity and revenue opportunity
• No licence require in France for machine less then 5m2
• 100% self service, available 27/7
• Quick 30 minute wash cycle with SMS alert 5 minutes before the cycle finishes
• Production and roll out commenced December 2016
Market opportunity
• Leverage existing brand reputation
• Smaller unit enables more rapid roll-out in core markets
• Reduced size efficient machines, aimed at the Far East market
• Reduced planning permission requirements
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Laundry - Revolution CompactNew product development
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Product overview
• Self-service shops located in city centres and towns with no large supermarket nearby and limited competition
• Service includes washers, dryers, folding tables, detergent vending machines and comfy chairs whilst waiting for laundry
• New contemporary shop design being progressively rolled out in new locations
• Target to open 50 laundrettes by 30 April 2017, located in France, Spain, Portugal, Ireland, Japan
Market opportunity
• High density locations where there is no space for home owned laundry appliances
• Aiming to become the largest branded laundrette operator in Europe
• Well positioned to complete against launderettes and dry-cleaning services
LaunderettesNew product development
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Laundry – RevolutionFirst case study
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Portugal
First laundry installed in May 2014
69%76%
30%22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Nov-16 Dec-16
Weight of Laundry Revenue
Laundry Photobooths Other
1%
42%
57%
Turnover - FY17 (six months to 31/10/2016)
Other Photobooths Laundry
0%
20%
40%
60%
80%
100%
FY13 FY14 FY15 FY16 FY17
13%
52% 57%
95%96% 84%
46% 42%
Weight of Laundry Revenue
Other
Photobooths
Laundry
0
100
200
300
400
500
H1 - FY14 H1 - FY15 H1 - FY16 H1 - FY17E
uro
s (
'000)
PBT (6 months)
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Laundry – RevolutionSecond case study
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Ireland
First laundry installed in May 2014
20%
23%
57%
Turnover - FY17 (6 Months to 31/10/2016)
Other Photobooths Laundry
67% 69%
16% 10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Nov-16 Dec-16
Weight of Laundry Revenue
Laundry Photobooths Other
0%
20%
40%
60%
80%
100%
FY13 FY14 FY15 FY16 FY17
13%
41%57%54% 54%
47%
33%
23%
Weight of Laundry Revenue
Other
Photobooths
Laundry
0
50
100
150
200
250
300
350
400
450
H1 - FY14 H1 - FY15 H1 - FY16 H1 - FY17E
uro
s (
'000)
PBT (6 months)
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Technology
• New technologies enabling secure integrated solutions for governments
• Expert in facial image capture deployed through self-service equipment
• Group working closely with national institutions to fully understand the needs of government in terms of standards and security
• Biometric data capture solutions position Photo-Me to become a leader in security based applications
• Secure, direct transfer of data to secure government servers
• 3D enrolment booth showcased at TRUSTECH in Cannes, a large event dedicated to Trust Based Technology
Market opportunity
• Opportunity to further strengthen Photo-Me’s strong leadership position in ID photo booth market
• Geopolitical environment driving increasing concern around ID fraud and shift towards biometric data capture
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Security solutions and 3D enrolmentTechnology leadership
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Security solutions and 3D enrolmentTechnology developed and deployed to date
BIOMETRY IN FRANCE
We have deployed a national secure connected system to collect and digitize signatures and
ICAO compliant ID photos for driver licenses.
BIOMETRY IN SWITZERLAND
Public services buildings have been equipped with 380 enrolment stations to securely capture
and transfer photos, fingerprints and signatures.
DIGITAL COLLECTION IN GERMANY
We integrated a secure biometric data capture solution in our photo booths to securely transfer
ICAO compliant photos and signatures. Fully certified by german authorities.
INSTANT VERIFICATION IN CHINA
We have developed an intelligent photo booth that securely collects ICAO compliant photos,
fingerprints and official documents for validation.
MYNUMBER IN JAPAN
Our photo booths can scan the unique QR code every Japanese citizen has received, to match
the photos to the MyNumber card application.
SECURE DATA COLLECTION IN GEORGIA
In partnership with Oberthur Technologies, we implemented booths that transfer ICAO
compliant photos to the national civil registry sever.
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Successful partnership with the French government
• New driving licence requires enrolment of a digital photo and signature
• Photo-Me developed a national secure server to transfer all files from its photobooths to the Government server
• 2015/2016 Photo-Me’s secure photobooth technology was tested
• In February 2016, Photo-Me secured first agreement with ANTS (Agence Nationale des Titres Sécurisés, a national agency linked to the French Ministry of Transport and issuing secured official personal documents) to allow delivery of a digitised e-photo and e-signature
• Today, investment in software upgrades to all 7,800 photobooths in France
• Photo-Me worked closely with ANTS to develop its technology in line with evolving security requirements
Security solutions: ANTS in FranceA Case study
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Photo-Me existing photobooth market presence:
• Photo-Me has no competitors of scale in the Irish photobooth market
• 250 photobooths
• High footfall, long-standing retail partners
Security opportunity:
• Engagement with the Irish Government following successful roll out of ANTS photobooth technology in France
• Memorandum of Understanding agreed with Ministry of Foreign Affairs and Trade in the Republic of Ireland in November 2016 and trials of the technology commenced
• Trials in more than 100 photobooths due to start in February 2017 for a minimum of 2 months
• Photo-Me well positioned to leverage secure technology developed for ANTS in France
• Further opportunities to deploy technology, including ongoing discussions in the UK with Her Majesty’s Passport Office
Security solutions: Trials in Republic of IrelandAn active opportunity
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Passport application IrelandProcess flow
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• 3D portraits deliver a set of 3D points that give more and better information than a simple 2D print.
• 3D drastically increases the performance of facial recognition, in the day-to-day environment.
• 3D portraits are the natural next step to improve the security of ID, as they are even harder to fake or spoof.
Higher added-value 3D solutionsWhy changing ID from 2D to 3D portrait?
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• 2D photos remove a dimension we unconsciously use in our life to identify people. 3D portrait gives back this dimension in order to increase ease of identification.
• 3D photos give better details on some skin or head aspects, like face mole, nose shape, lips and chin, which are smoothed in 2D.
• 3D photos are numerical 3D files, that can dynamically be handled and rotated by the authority, to help the human brain build its own image of the face.
Higher added-value 3D solutions3D portraits is the natural portrait of the future
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Our brain works in 3D thanks to our stereoscopic vision:
just give it back this dimension to help it recognise a face!
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• Current facial recognition algorithm compares a live 2D face with a database 2D face:
– As the ICAO standards require straight frontal photos in optimal position and lighting situations, the official database, or the image available on the ID, are stored like this.
– The algorithm works most efficiently when a face is close to optimal positioning: straight frontal look, two fully visible eyes, clear chin and forehead
– Consequently facial recognition works well in a ‘collaborative situation’ when live 2D face images are taken with the knowledge and cooperation of the applicant.
– But, if the ‘live 2D face’ comes from a surveillance camera, its delivers facial images outside of the optimal positioning
Higher added-value 3D solutionsImprove efficiency of facial recognition
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Live vs database, in the case of Bruxelles Airport terrorist attack
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• Asymmetric 3D/2D process:
Higher added-value 3D solutionsImprove efficiency of facial recognition
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• 3D portrait is a digital file: there is no print that can be manipulated or morphed. The file shall be:
– Either directly stored encrypted, on an ID chip
– Or directly transmitted to the administration, encrypted, on a secured line
• Portrait manipulation are easy to do, and freely available, in 2D, NOT in 3D :
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Higher added-value 3D solutionsTo a fully 3D secured portrait
The third dimension, can not be fooled, without being noticed! It is an natural embedded security!
The 3D encrypted digital portrait is the ideal, secure ID solution