Kinepolis Group NV · EURONEXT:KIN

Kinepolis Group NV — H1 2013 Earnings Presentation

40 slides from Kinepolis Group NV's earnings presentation, Aug 29, 2013

  1. Slide 1: Kinepolis Group Results Half 1 2013

    Kinepolis Group Results Half 1 2013 Analyst & Press Meeting August 29, 2013

  2. Slide 2: Business Review Half 1 2013

    Business Review Half 1 2013 CEO, Mr Eddy Duquenne 2

  3. Slide 3: Key Financials

    Key Financials €m H1 2013 H1 2012 Better / (Worse) Visitors (‘000) 8.369 9.414 (11,1)% Revenue 109,7 117,3 (6,5)% EBITDA 30,9 31,7 (2,4)% REBITDA € 3,66/Vis 30,7 € 3,41/Vis 32,1 (4,5)% REBITDA Margin 27,9% 27,4% EBIT 21,6 22,1 (2,5)% REBIT 21,0 22,2 (5,5)% REBIT Margin 19,1% 18,9% Net Earnings 14,3

  4. Slide 4: Highlights

    Highlights  Revenue down by 6,5%  Visitors –11,1%, due to bad weather, poor local film content and economic crisis in Spain  Increase Box Office per visitor to € 7,19  Increase In-theatre Sales spend per visitor to € 2,82  Decrease in Sales and Events (-6,5%)  Growth of Screen Advertising reve

  5. Slide 5: Major events

    Major events  H1 2013 results reflect Strategic Pillars set out in 2008  Best Marketer  Best Cinema Operator  Best Property Manager  Further development and implementation of Strategy in 2013  Positive result in proceedings with TPB (Belgium)  Sale of land in Poland (surplus value of € 0,9 m)

  6. Slide 6: Kinepolis complexes today

    Kinepolis complexes today KINEPOLIS GROUP Complexes Screens Belgium 11 138 France 7 87 Spain 3 64 Poland * 1 20 Switzerland 1 8 Total 23 317 11  Market Share: Belgium: to be announced** France: 3,4% Spain: 4,7%  297 digital screens (100% digitised***)  Of which 93 screens with 3D * Operated by IT

  7. Slide 7: Revenue by country

    Revenue by country Switzerland Poland Switzerland 2% Poland 2% Spain 12% Spain 15% France € 109,7 m € 117,3 m Belgium 26% Belgium France 57% 60% 26% H1 2012 H1 2013 29 augustus 2013 7

  8. Slide 8: Revenue by activity

    Revenue by activity Film Brightfish Distribution Film 4% Concessions 1% Brightfish Distribution 4% 4% 1% Concessions 4% B2B* B2B* 14% 14% Box Office Box Office € 109,7 m 55% € 117,3 m 56% In-theatre In-theatre Sales Sales 21% 22% H1 2012 H1 2013 * Including Cinema Screen Advertising 29 augustus 2013

  9. Slide 9: Visitors & Movies

    Visitors & Movies Visitors (000’s) H1 2013 % of Tot H1 2012 % of Tot % Δ YoY Belgium 4.051 48,4% 4.398 46,7% (7,9)% France 2.848 34,0% 3.106 33,0% (8,3)% Spain 1.398 16,7% 1.843 19,6% (24,1)% Switzerland 72 0,9% 67 0,7% 7,5% Total 8.369 100% 9.414 100% (11,1)% Top 5 Movies H1 2013 3D Visitors (000’s

  10. Slide 10: Ratios

    Ratios REBITDA Margin ROCE Gearing 35% 25% 120% 1,11 21,8% 19,8% 20,9% 100% 20% 30% 0,83 27,2% 27,9% 16% 27,0% 27,4% 80% 15% 0,67 12% 0,57 25% 60% 21,7% 0,43 10% 40% 20% 5% 20% 15% 0% 0% H1 H1 H1 H1 H1 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 H1* H1 *: 12 months rol

  11. Slide 11: Net Financial Debt Evolution

    Net Financial Debt Evolution €m 30 Jun 2013 31 Dec 2012 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 107,5 90,2 (17,3) (19,2)% Leverage ratio*: NFD / EBITDA 1,5 1,2 €m € 160 3,5 3,50 X € 140 3,0 € 120 2,5 € 100 2,0 € 80 1,5 € 60 1,0 € 40 € 20 0,5 €0 0,0 YE 07 YE 08 YE 09 YE 10 YE 11 H1 1

  12. Slide 12: Line-up Half 2 2013

    Line-up Half 2 2013 2D 3D Major sequels • Hunger Games: Catching Fire (Q4) • The Smurfs II (Q3) • Despicable Me II (Q3) • Monster University (Q3) • The Hobbit II: The Desolation of Smaug (Q4) New titles • The Lone Ranger (Q3) • World War Z (Q3) • The Wolverine (Q3) • Now you see me (Q3) • Elysium (Q

  13. Slide 13: Financial Review Half 1 2013

    Financial Review Half 1 2013 CFO, Mr Nicolas De Clercq 13

  14. Slide 14: Revenue by country

    Revenue by country €m H1 2013 % of Tot H1 2012 % of Tot % Δ YoY Belgium 65,4 59,6% 67,4 57,4% (2,9)% France 28,3 25,8% 29,9 25,5% (5,5)% Spain 13,8 12,6% 17,8 15,2% (22,8)% Switzerland & Poland 2,2 2,0% 2,2 1,9% 1,4% Total 109,7 100% 117,3 100% (6,5)% 14 29 augustus 2013

  15. Slide 15: Evolution Box Office & ITS

    Evolution Box Office & ITS Box office / Visitor ITS / Visitor 8,50 € 4,00 € +2,2% +7,4% 8,00 € 3,50 € 7,50 € 3,00 € 2,82 7,19 2,72 7,09 2,63 7,03 7,00 € 2,50 € 6,50 € 2,00 € 6,00 € 1,50 € 5,50 € 1,00 € H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 29 augustus 2013 15

  16. Slide 16: Revenue by Business

    Revenue by Business €m Cinema Revenue €m Sales & Events * €m Screen Advertising * 110 20 4,0 100 18 3,5 -7,9% +15,7% 90 16 -6,5% 3,0 14 80 12 2,5 70 10 2,0 60 8 1,5 50 6 1,0 40 4 30 2 0,5 20 0 0,0 H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 Visitors 9,4 10,4 8,4 * Excludi

  17. Slide 17: Revenue by Business (2)

    Revenue by Business (2) €m Concessions @ flat FX €m Film Distribution 4,8 2,0 -2,7% 4,3 1,6 -22,9% 3,8 1,2 3,3 0,8 2,8 0,4 2,3 1,8 0,0 H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 # 15 19 14 releases 29 augustus 2013 17

  18. Slide 18: Revenue by activity waterfall

    Revenue by activity waterfall -0,3% €m 140,0 -9,2% -4,5% -6,5% +15,7% -22,9% +7,6% -2,5% -6,5% 117,3 120,0 109,7 (6,1) (1,1) (0,9) +0,5 +0,4 (0,1) (0,0) 100,0 (0,3) 80,0 60,0 40,0 Business line Cinema 20,0 H1 2012 Box In-theatre Sales & Screen Film Brightfish Real Other & FX H1 2013 Office Sales Eve

  19. Slide 19: Operating Costs

    Operating Costs €m H1 2013 H1 2012 % Better / (Worse) Marketing & Selling Expenses (5,7) (6,0) 5,4% Administrative Expenses (7,1) (7,6) 7,2% Other Operating Income/(Costs) 1,6 0,8 96,1% Total Operating Costs (11,1) (12,8) 12,9% Non-Current 0,9 0,0 Current Operating Costs (12,0) (12,8) 6,4% 29 august

  20. Slide 20: Non-Current items

    Non-Current items €m H1 2013 H1 2012 Impacts Gain on sale land Poland 0,9 Transformation expenses (0,5) (0,4) Loss on disposal leasehold improvements (0,1) EBITDA former Brightfish offices EBITDA 0,3 (0,4) Write-down assets under construction (0,4) cancelled project Depreciation Depreciation (0,4) T

  21. Slide 21: REBITDA by Country

    REBITDA by Country REBITDA €m H1 2013 % of Total H1 2012 % of Total % Better/(Worse) Belgium 16,3 53,1% 16,2 50,6% 0,2% France 10,5 34,3% 10,3 32,0% 2,2% Spain 3,1 10,0% 4,9 15,1% (37,0)% Switzerland & Poland 0,8 2,6% 0,7 2,3 10,3% TOTAL 30,7 100% 32,1 100% (4,5)% H1 2013 H1 2012 REBITDA Margin % (o

  22. Slide 22: REBITDA Margin

    REBITDA Margin REBITDA € 3,13 € 3,57 € 3,41 € 4,03 € 3,66 /Visitor 38% 14.000 36% 11.643 12.000 10.385 34% 9.619 9.414 10.000 8.369 32% 30,5% 8.000 30% 29,2% 27,9% 6.000 28% 27,4% 27,0% 4.000 26% 24% 2.000 22% 0 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 Rebitda Margin Visitors ('000) 29 augustus 2013

  23. Slide 23: Financial Result

    Financial Result €m H1 2013 H1 2012 % Better/(Worse) Interest Expense (2,4) (2,2) (13,1)% Other (CNC, Tax Shelters, Derivatives, FX) (0,6) (0,3) (102,1)% Financial (Cost) / Income (3,1) (2,5) (24,3)% €m 0 -0,5 -1 -1,5 -2 -2,5 (2,5) -3 (0,2) (0,1) (0,3) +0,1 (3,1) (0,0) -3,5 H1 2012 Interest FX Write

  24. Slide 24: Taxes

    Taxes €m H1 2013 H1 2012 % Better /(Worse) Profit before Taxes 18,4 19,6 (5,9)% Taxes (4,1) (4,7) 11,6% Net Profit 14,3 14,9 (4,1)% Effective Tax Rate (‘ETR’) 22,4% 23,8% €m 0 ETR ETR ETR ETR 23,8% 23,9% 22,6% 22,4% -1 -2 -3 -4 -0,1 (4,0) (0,1) (4,1) +0,5 -5 (4,7) (4,7) +0,3 +0,0 -6 H1 2012 Non-curr

  25. Slide 25: Free Cash Flow Half 1 2013

    Free Cash Flow Half 1 2013 €m 35 29,1 (1,5) 30 (12,0) 25 20 (3,7) 15 (4,3) 10 7,6 5 0 EBITDA + Other Income Tax Working Capex - Maintenance Interest FCF Financial Result Paid Capital Paid H1 2013 (corrected for Movement non-cash items) 29 augustus 2013 25

  26. Slide 26: Free Cash Flow H1 2013 vs H1 2012

    Free Cash Flow H1 2013 vs H1 2012 €m 18 15,6 (3,1) 16 3,6 (2,7) 14 12,5 (1,7) 12 (0,9) (3,2) 10 7,6 8 6 4 2 0 Normalized Working Current FCF Cash EBITDA & Income Tax Working Capex - Interest FCF FCF Capital (one- Other Paid Capital Maintenance Paid H1 2013 H1 2012 timers) Financial Result 29 augustu

  27. Slide 27: Capex – Depreciation

    Capex – Depreciation Capex €m H1 2013 H1 2012 Digitiza Remode tion Belgium 2,9 3,4 ling 13% 33% 0,7 €m Mainten Mainten 1,8 €m H1 2013: France 1,6 0,7 ance H1 2012: ance 5,5 €m 67% Remod 5,7 €m 48% 3,7 €m 2,8 €m Spain 1,0 1,5 eling 39% 2,2 €m Other 0,0 0,1 TOTAL 5,5 5,7 €m Depreciations, Amortization

  28. Slide 28: Net Financial Debt Evolution

    Net Financial Debt Evolution €m 30 Jun 2013 31 Dec 2012 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 107,5 90,2 (17,3) (19,2)% Leverage ratio*: NFD / EBITDA 1,5 1,2 €m € 160 3,5 3,50 X € 140 3,0 € 120 2,5 € 100 2,0 € 80 1,5 € 60 1,0 € 40 € 20 0,5 €0 0,0 YE 07 YE 08 YE 09 YE 10 YE 11 H1 1

  29. Slide 29: Balance sheet

    Balance sheet €m 30 Jun % of 31 Dec % of €m 30 Jun % of 31 Dec % of 2013 Total 2012 Total 2013 Total 2012 Total Intangible assets 3,3 1% 3,3 1% Equity 97,3 32% 108,7 33% Goodwill 18,8 6% 18,8 6% LT financial debt 86,2 28% 81,7 25% Land & buildings 180,8 59% 184,6 56% Provisions(1) 3,0 1% 3,8 1% Othe

  30. Slide 30: Shareholders

    Shareholders 23/08/2013 19/01/2013 # Shares % # Shares % Total Shares outstanding 5.856.508 100 % 5.856.508 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 2.581.610 44,08% 2.581.610 44,08% Treasury shares (Own shares) 451.569 7,71% 311.885 5,33% Free Fl

  31. Slide 31: Share Buyback Program

    Share Buyback Program # shares €m Total shares outstanding as at 31/12/2012 5.856.508 Treasury shares (own shares) as at 31/12/2012 311.885 8,9 Share buy-back YTD 23/08/2013 146.884 15,2 Sale of shares (exercise stock options) (7.200) (0,1) Loss on sale of shares (0,1) Treasury shares (own shares) a

  32. Slide 32: Financial Calendar

    Financial Calendar Thursday 14/11/2013 Business update Q3 2013 Thursday 20/02/2014 Analysts and Press Meeting FY 2013 Thursday 15/05/2014 Business update Q1 2014 Friday 16/05/2014 Annual Shareholders’ Meeting 29 augustus 2013 32

  33. Slide 33: Q&A Thank You.

    Q&A Thank You. 29 augustus 2013 33

  34. Slide 34: Annexes Financial Statements

    Annexes Financial Statements Results Half 1 2013 34

  35. Slide 35: Consolidated Income Statement

    Consolidated Income Statement €m H1 2013 H1 2012 % Better / (Worse) Revenue 109,7 117,3 (6,5)% Cost of sales (77,0) (82,5) 6,6% Gross profit 32,7 34,9 (6,3)% Gross profit % 29,8% 29,7% Marketing & selling expenses (5,7) (6,0) 5,4% Administrative expenses (7,1) (7,6) 7,2% Other operating income and e

  36. Slide 36: Current Income Statement

    Current Income Statement €m H1 2013 H1 2012 % Better / (Worse) Revenue 109,7 117,3 (6,5)% Cost of sales (76,7) (82,3) 6,8% Gross profit 33,0 35,0 (5,8)% Gross profit % 30,1% 29,9% Marketing & selling expenses (5,7) (6,0) 5,1% Administrative expenses (6,9) (7,1) 4,0% Other operating income & expenses

  37. Slide 37: Consolidated Balance Sheet (1)

    Consolidated Balance Sheet (1) €m 30/06/2013 31/12/2012 % Better / (Worse) Intangible assets 3,3 3,3 1,0% Goodwill 18,8 18,8 0,0% Property, plant & equipment 209,8 214,4 (2,2)% Investment property 10,7 11,5 (6,8)% Deferred tax assets 0,9 0,7 23,9% Other receivables 13,6 13,2 3,7% Other financial ass

  38. Slide 38: Consolidated Balance Sheet (2)

    Consolidated Balance Sheet (2) €m 30/06/2013 31/12/2012 % Better / (Worse) Capital & Share premium 20,1 20,1 0,0% Consolidated reserves 79,2 89,8 (11,8)% Translation differences (2,0) (1,2) (71,5)% Equity attributable to equity holders of the parents 97,3 108,7 (10,5)% Non-controlling interests 0,0

  39. Slide 39: Cash Flow Statement

    Cash Flow Statement €m H1 2013 H1 2012 Better / (Worse) Cash flows from operating activities Profit before tax 18,4 19,6 (1,2) Adjustments for: Depreciation, amortization & provisions 9,4 9,6 (0,2) Government grants (0,3) (0,4) 0,1 Gains / losses on sale of PPE & financial assets (0,9) 0,0 (0,9) Fin

  40. Slide 40: Free Cash Flow

    Free Cash Flow €m H1 2013 H1 2012 Better / (Worse) Cash Flow before WC movements & tax paid 29,1 30,8 (1,7) Income taxes paid (1,5) (5,1) 3,6 Working capital (12,0) (6,2) (5,8) Capital exp – maintenance (3,7) (2,8) (0,9) Interest paid (4,3) (1,1) (3,2) Free cash flow 7,6 15,6 (8,0) Capital exp - dig

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