FINAL RESULTS

RESULTS FOR THE YEAR ENDED 30 APRIL 2017

27 JUNE 2017

SERGE CRASNIANSKI, CEOOVERVIEW

FINAL RESULTS

Agenda

• Highlights & Business Overview

• Financial Review

• Innovation & Growth Strategy

• Conclusion

3

FINAL RESULTS

OV

ER

VIE

WFinancial highlights

4

Reported revenue

+16.7% to £214.7m

At constant currency

Revenue +3.3%

Profit before tax + 4.2%

• Strong performance delivering record profits, record operating cash flow and double digit

earnings growth

• Continued good performance from identification and laundry business

Cash generated from

operation

+18.6% to £61.3m

Reported EBITDA

+ 22.0% to £69.2m

EBITDA margin

+140bpts to 32.2%Record Profit before tax

+19.7% to £48.0m

Net cash position £39.2m after distributions and

investment in future growth

(total of £73.5m)

Earnings per share

+20.1% to 9.27p

Total ordinary dividend per

share +20% to 7.03p

FINAL RESULTS

OV

ER

VIE

WOperational highlights

• Invested £40.3m for further growth

• Development of complementary products and technologies

• Focus on development of proprietary security biometric ID solutions

• Ongoing refurbishment and upgrade to support market leading position

5

Further progress in deployment

of security technologies in

photobooths

• Photobooth upgrades to ANTS technology in France

• 300 photobooths with encrypted photo ID upload technology being

rolled out in Ireland by end of 2017

• Progressive deployment of secure and direct data transfer technologies

in photobooths in Germany

Expansion of laundry business

continued on track to meet

target of 6,000 units by 2020

• 1,103 further laundry units deployed during the year

• 50 launderette shops open, including first shop in Japan, as at 30 April

Launch of reduced footprint Revolution unit, targeting locations with

limited space

Strengthened market position in

the digital printing segment

• Rollout of over 800 new SpeedLab Cube and SpeedLab Bio by Starck

• Acquisition of ASDA photo business for £3.3m

Focused investment in

innovation for future growth

FINAL RESULTS

OV

ER

VIE

WBusiness overview

6

• Photo-Me International PLC (Photo-Me), operates, sells and services a wide range of instant

service equipment

• 47,946 units in operation in 18 countries

• International operations and technology innovation focused on three principal segments:

• Identification: photobooths and integrated biometric identification solutions

• Laundry: unattended laundry services

• Kiosks: high-quality digital printing

• Business strategy focused on diversification of operations through investment and development of

technologies with multiple product applications to be deployed across key geographies

• Stable cash flow from long-established photobooth operations utilised to develop new and

complementary products to drive future growth

• Focus on getting the best yield out of automatic unattended vending machines estate

• Low fixed cost base with the same network of field engineers utilised across the entire estate

LONG-TERM

PARTNERSHIPS

with the leading

shopping malls in target

markets

BRAND

RECOGNITION

Photo-Me’s products

are household names

TECHNOLOGY &

INNOVATION

continuous focus on

diversification

ESTABLISHED

NETWORK

of engineers able to

support growth at

limited cost

CUSTOMER

EXPERIENCE

providing easy to use,

reliable, high quality,

value for money services

STABLE CASH

FLOWS

utilised to fund R&D

for future growth

FINAL RESULTS

OV

ER

VIE

WAt a glance

7

Operations in 18 countries worldwide

28,541, (60%)

1,965(4%)

5,872(12%)

5148(11%)

6,420(13%)

Identification Laundry

Kiosks Children's rides

Other vending units

Network and relationships

• Building relationships with site owners for over 50 years

• Strategically positioned in attractive, high footfall

locations

• Dedicated teams of approximately 700 regional field

engineers to support, maintain and upgrade estate

• Network connected via a sophisticated telemetry system

Focus on innovation and ID security biometrics

• Track record of collaborating with recognised

design and technology firms through mutually

beneficial partnerships

• Ongoing RD investment is a key tenet of the

business model

• Enhancing photobooth capabilities, particularly in

the area of biometrics identification

Photo-Me estate by number of units(% of total estate) Austria, Belgium, China, France, Germany, Ireland, Italy, Japan, Netherlands, Poland,

Portugal, Singapore, South Korea, Spain and Switzerland, Vietnam, UK, USA

GABRIEL PIRONA, CFOFINANCIAL REVIEW

FINAL RESULTS

Key financials

9

20

7.8

19

5.6

18

6.6

17

7.2

18

4.0 21

4.7

18

5.9

18

8.8

19

0.2

19

5.4

21

1.0

21

4.6

0

50

100

150

200

250

FY 2012 FY 2013 FY 2013 FY 2015 FY 2016 FY 2017

Revenue

Reported Constant currency (excl. minilab)

£m

44

.0

44

.3

47

.8 51

.8 56

.7

69

.2

0%

5%

10%

15%

20%

25%

30%

35%

0

10

20

30

40

50

60

70

80

FY 2012 FY 2013 FY 2014 FY 2015* FY 2016 FY 2017

EBITDA

EBITDA EBIDTA Margin

£m

20

.1 24

.3 30

.1 35

.0 40

.1

48

.0

0%

5%

10%

15%

20%

25%

0

10

20

30

40

50

60

FY 2012 FY 2013 FY 2014 FY 2015* FY 2016 FY 2017

Profit before tax

PBT PBT Margin

£m

42

.4 46

.6

45

.6

48

.1

51

.4

61

.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cash generated from operations£m

FINAL RESULTS

EPS and Dividends

10

2.00 2.50 3.003.75

4.885.86

7.03

3.00 2.00

2.815

0.00

2.00

4.00

6.00

8.00

10.00

2011 2012 2013 2014 2015 2016 2017

Dividend history

Ordinary dividend Special dividend

3.74 3.954.76

5.70

6.70

7.72

9.27

0.00

2.00

4.00

6.00

8.00

10.00

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Diluted EPS

• Diluted EPS +20% slightly better than PBT, due to lower effective tax rate

• Total ordinary dividend per share increased by 20% to 7.03p per share

• £32.6m cash returned to shareholders

• Progressive dividend strategy, with commitment to increase ordinary dividend by 20% for FY 2018

Pe

nce

per

sh

are

Pe

nce

per

sh

are

FINAL RESULTS

Continental Europe UK & Ireland Asia & ROW

Countries

Austria, Belgium, France, Germany,

Italy, Netherlands, Poland, Portugal,

Spain and Switzerland

United Kingdom and Ireland China, Japan, Singapore, South

Korea, Vietnam and USA

Vending units

% of the Group23,751 units

49%

13,287 units28%

10,908 units23%

Revenue

2017

£111.7m

20171

£97.6m

2016

£93.7m

Change

+19.2%

2017

£53.6m

20171

£53.1m

2016

£45.8m

change

+17.0%

2017

£49.4m

20171

£39.3m

2016

£44.5m

change

+11.0%

Operating Profit £33.9m £29.6m £24.1m +40.7% £7.3m £7.2m £8.0m -8.8% £8.4m £6.9m £10.7m -21.5%

Margin 30.4% 30.3% 25.8% +17.9% 13.6% 13.5% 17.4% -21.7% 17.4% 17.5% 24.0% -27.3%

Results by geographic area

11

1 For constant currency comparatives, average rates of exchange used were £/€ 1.18 (2016: 1.35), £/Yen 140 (2016: 178)

FINAL RESULTS

Net cash

12

62.4

39.2

2.0

61.3

(1.1 )

(33.8 )(3.3 )

(3.8)

(32.6 )

(12.0 )

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Opening cash at30 April 2016

FX Operating CF Interest paidand Financing

Investment inEstate and

infrastructure(Net)

Capitalised R&Dand SW

Acquisitions Dividends Tax Closing cash at30 April 2017

FY 2017 investments comprise:

Laundries £11.0m

Kiosks £4.5m

PMR £3.7m

Photobooths in China & Asia £3.8m

Launderettes £1.5m

Photobooths Ireland £1.5m

ANTS France £1.0m

£m

FINAL RESULTS

Revenue and profit bridge

13

Re

ve

nu

eP

rofi

t b

efo

re t

ax

FY2016 FX Acquisitions Laundry Price Volume My Number SG&A Finance Other NIM FY2017

184.0

24.75.3

9.6 1.2

(6.8)(3.1) (0.2)

214.7

160

170

180

190

200

210

220

230

40.1

6.2 (1.8)

5.30.8 (3.6)

(1.6) 2.00.9 (0.4) 48.0

38

40

42

44

46

48

50

52

54

56

£m

ERIC MERGUI, COOBUSINESS REVIEW

FINAL RESULTS

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Vending units in operation

15

• Total vending estate increased by 5.4% to 47,946 units (2016: 45,500)

• 554 additional laundry units deployed, 29 new laundry shops opened

• Deployment of more than 800 new SpeedLab and SpeedLab Bio by Starck, digital photo printing kiosks

• Expansion of photobooth presence into new locations in Asia

22,800

23,751

22,000

22,500

23,000

23,500

24,000

FY 2016 FY 2017

Continental Europe

+4.2%

12,500

13,287

12,000

12,500

13,000

13,500

FY 2016 FY 2017

10,200

10,908

9,800

10,000

10,200

10,400

10,600

10,800

11,000

FY 2016 FY 2017

UK & Ireland Asia & ROW

+6.3% +6.9%

Num

ber

of

vendin

g u

nits in

opera

tio

n

6,580, (49%)

992(8%)

499(4%)

3,928, (30%)

1,288, (10%)

Num

ber

of

vendin

g u

nits in

opera

tio

n

(% o

f esta

te)

12,682, (54%)

4,756(20%)

1,459(6%)

1,218, (5%)

3,636, (15%)

9,279, (85%)

1,496, (14%)

Children's’ ridesPhotobooth Kiosk Laundry Other

FINAL RESULTS

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Identification

• Established network of 28,541 photobooths, representing 59% of total estate

• integrated software to ensure conformity to ISO and ICAO photo ID regulations

• Starck booth, next generation photobooth, now accounts for 18% of photobooth estate

• c.10% higher monthly revenue than for traditional photobooth*

• Continued progress in deployment of ID solutions for government

• launch of secure digital upload system in Ireland for Online Passport Applications renewals, in partnership with Irish government

• investment in software upgrades to photobooths in France for secure transmission of e-photo and e-signature for driving licences applications

• technology currently deployed in 7 countries

• progressive rollout of secure data capture and transfer technology in Germany

• Price increases implemented in The Netherlands (from €5 to €6), Switzerland (CHF8 to CHF 10), and UK (£5 to £6)

• Adoption of My Number Card ID programme in Japan lower than the government initially anticipated - expected to become compulsory in the medium term (2020/2021)

16

Growth drivers

• Steady replacement rates of official documents

• Population growth supporting marginal expansion

• Increased travel linked to GDP

• Increasing appetite from governments for improved, digitalised security ID

PH

OT

OB

OO

TH

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ND

INT

EG

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IOM

ET

RIC

SO

LU

TIO

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* Company estimate

FINAL RESULTS

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Identification: case study

Encrypted photo ID technology launched in partnership with Irish Government

Secure digital upload technology was adopted by the Irish Government in March 2017 for digital transfer of ID photos as part of the Online Passport Application

17

PH

OT

OB

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TH

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ND

INT

EG

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• November 2016, a Memorandum of Understanding was signed with the Ministry of Foreign Affairs and Trade in the Republic of Ireland.

• Early 2017, Photo-Me’s technology system trialed in 100 photobooths in Ireland.

• March 2017, the Irish Government launched its new Online Passport Application Services, with ID photo requirement exclusively supported by Photo-Me’s secure digital upload system.

• February 2016, entered into discussions with the Irish Government to develop technology to enable the secure digital upload of ID photographs for Online Passport Applications to a secure government server.

FINAL RESULTS

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Laundry

18

UN

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ND

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LA

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DR

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VIC

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• Laundry business operates in 3 key segments; Outdoor self-service, Launderette shops, B2B

• 1,965 owned/operated units in 12 countries

• Outsourced units manufactured in Eastern Europe

• Continued expansion of laundry operations, focused on France, Belgium, Portugal, Ireland, UK

• 3,251 units deployed in FY 2017

• 95 units deployed in the UK as at 30 April 2015

• Revolution range extended to include two reduced footprint models (5m2 compared with 10m2), better suited to some target locations eg: Far East

• 27 launderette shops added to the estate in Europe, with encouraging results in FY 2017

• 50 launderette shops in total

• First launderette shop opened successfully in Japan, starting expansion into one of the largest markets in the world for launderettes

• Opportunity to expand B2B business in UK and Europe

Growth drivers

• Demand for high capacity laundry services

• Competitive pricing

• Convenience; prime locations, open 24/7

• Very limited competition

FINAL RESULTS

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Growth in laundry units

19

• Total laundry revenue increased by 79% to £21.7m (2016: £12.1m), reflecting our growth strategy

• Revenue from operated laundry estate up 89% to £14.3m (2016: £7.6m)

• Number of operated units was up 58%

• Average takings per owned unit increased by 8% year on year

1,084

2,148

3,251

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2015 2016 2017

Total number of deployed units

14,396

15,382

16,586

13,000

13,500

14,000

14,500

15,000

15,500

16,000

16,500

17,000

2015 2016 2017

Average takings per owned unit (€)*

* Average calculate only on machines in France, Ireland, Portugal with full month takings

UN

AT

TE

ND

ED

LA

UN

DR

Y S

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VIC

ES

6.3

12.1

21.7

0.0

5.0

10.0

15.0

20.0

25.0

2015 2016 2017

Laundry revenue(£m)

+98.2%

+51.4%

+6.9%

+7.8%

+92.1%

+79.3%

FINAL RESULTS

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Laundry: Revolution case study

20

UN

AT

TE

ND

ED

LA

UN

DR

Y S

ER

VIC

ES

61%

35%

16%

Turnover – FY 2017

Laundry Photobooths Other

Portugal: First laundry installed in May 2014

41%34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct-16 Apr-17

Weight of Laundry Revenue

Laundry Photobooths Other

0%

20%

40%

60%

80%

100%

FY14 FY15 FY16 FY17

35%

Weight of Laundry Revenue

Other

Photobooths

Laundry61%

0.14

0.290.23

0.80

0

0.2

0.4

0.6

0.8

1

FY 2014 FY 2015 FY 2016 FY 2017

Profit before tax*€m

13%

+456%

* Profit before tax and Group fees

41%

64%58%

FINAL RESULTS

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Laundry: Revolution case study

21

UN

AT

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ND

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LA

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VIC

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Ireland: First laundry installed in May 2014

66%

18%

16%

Turnover - FY17

Laundry Photobooths Other

17% 20%

16% 15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct-16 Apr-17

Weight of Laundry Revenue

Laundry Photobooths Other

0%

20%

40%

60%

80%

100%

FY14 FY15 FY16 FY17

18%

Weight of Laundry Revenue

Other

Photobooths

Laundry

0.12 0.140.19

1.01

0

0.2

0.4

0.6

0.8

1

1.2

FY 2014 FY 2015 FY 2015 FY 2016

Profit before tax*

€m

* Profit before tax and Group fees

+739%

13%

41%

66%

66%67%

FINAL RESULTS

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Kiosks

22

HIG

H-Q

UA

LIT

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IGIT

AL

PR

INT

ING

Growth drivers

• Increased use of smartphones; used to take 80% of photos in 2016

• Digital photo sharing across social media platforms

• Fragmented market, expansion opportunities across Europe, US and Asia

• 5,872 digital printing kiosks in operation and key geographic markets are Europe and Japan

• Wide range of competitively priced print formats and personalised products

• Latest generation kiosks fully integrated with all major social media networks

• Positioned in attractive high footfall locations

• In 2017, kiosks deployed in 363 selling points of the UK Photo Division of Asda Stores Limited, acquired on 31 October 2016

• Reconfiguration of layouts, equipment upgrades and operational measures expected to restore profitability of the business

• 3% increase in number of kiosks in Europe, driven by SpeedLab Cube and SpeedLab Bio kiosks, designed by Philippe Starck - results so far have been encouraging

• 120 SpeedLab Cube by Starck kiosks at Morrisons stores in UK

• Started the deployment at Carrefour replacing Kodak units

• 20 dedicated MoneyGram kiosks and 80 transaction kiosks operated in France

• Ongoing discussions with MoneyGram to extent partnership into other geographies

SERGE CRASNIANSKI, CEOGROWTH STRATEGY & INNOVATION

FINAL RESULTS

GR

OW

TH

ST

RA

TE

GY

& IN

NO

VA

TIO

N

Three year growth strategy (2017 – 2020)

24

FINAL RESULTS

GR

OW

TH

ST

RA

TE

GY

& IN

NO

VA

TIO

N

Innovation

Development capabilities

• Investment in innovation for future growth lies at the core of the business

• R&D capabilities in:

• Echirolles (France),

• Shanghai (China),

• Hanoi (Vietnam),

• Tokyo (Japan)

• Team of 60 highly experienced engineers specialising in:

• software development, 3D technology, ID security standards, design and unit upgrades

• Photo-Me is a leader in employing 3D facial image capture and facial recognition technology

25

FINAL RESULTS

GR

OW

TH

ST

RA

TE

GY

& IN

NO

VA

TIO

N

Innovation

Key areas of focus

• Refurbishment and upgrades

• Software upgrades and maintain to maintain market leading position

• Telemetry software provides automated monitoring to ensure optimal availability and high quality of service

• New product development

• Development of complementary products and services with attractive cash-based characteristics

• Leverage strong existing site owner relationships with all new products introduced

• Aim to achieve first year gross revenue equivalent to the cost of the investment

• New product in development with capability to provide front-end retail banking services via extensive network of photobooths

• Proprietary security biometric identification solutions

• Board believes next generation in identification will incorporate integrated 3D image capture, facial recognition, biometrics and enrolment technologies

• Currently the only company in the market employing instant 3D image capture

• Embedded security features in technologies enhance protection against counterfeit and fraudulent identification papers

26

FINAL RESULTS

GR

OW

TH

ST

RA

TE

GY

& IN

NO

VA

TIO

N

Conclusion

• Strong performance in 2017, delivering record profits, record operating cash flow and double digit earnings growth

• Commitment to 20% increase in dividend for FY 2018

• Remain focused on driving profitability from existing estate

• Steady expansion programme in all segments of laundry business

• Ongoing self-funded investment in technological innovation and complementary products to extend suite of services available through established estate

• Looking ahead, the Board anticipates another year of consistent underlying progress building further on key strengths

27

LONG-TERM

PARTNERSHIPS

with the leading

shopping malls in target

markets

BRAND

RECOGNITION

Photo-Me’s products

are household names

TECHNOLOGY &

INNOVATION

continuous focus on

diversification

ESTABLISHED

NETWORK

of engineers able to

support growth at

limited cost

CUSTOMER

EXPERIENCE

providing easy to use,

reliable, high quality,

value for money services

STABLE CASH

FLOWS

utilised to fund R&D

for future growth