Kinepolis Group NV · EURONEXT:KIN
Kinepolis Group NV — H1 2021 Earnings Presentation
53 slides from Kinepolis Group NV's earnings presentation, Aug 19, 2021
Slide 1: Kinepolis Group Results H1 2021 Analyst Meeting
Kinepolis Group Results H1 2021 Analyst Meeting August 19, 2021 KINEPOLIS GROUP
Slide 2: Business review H1 2021
Business review H1 2021 CEO, Mr. Eddy Duquenne KINEPOLIS GROUP y
Slide 3: H1 2021 highlights: promising reopening of cinemas
❑ Promising reopening of cinemas worldwide: in June 2021 Kinepolis welcomed 50% of 2019 visitors in opened cinemas, evolving to 62% in July ❑ H1 2021 overall: 2,2 million visitors or 26,9% of visitors in H1 2020 ❑ Cinema revenue per visitor increased in nearly all countries, compared to 2019 ❑ Block
Slide 4: Further execution of Kinepolis' business strategy
❑ Further execution of Kinepolis’ business strategy ▪ Best Cinema Operator ▪ Best Marketer ▪ Best Real Estate Manager ❑ On track in execution of Entrepreneurship plan & start-up of Star plan to secure the Group’s future performance ❑ Highlights ▪ Successful reopening campaigns (f.e. BE) ▪ First nati
Slide 5: Kinepolis Metz Waves (FR), opened May 19
Kinepolis Metz Waves (FR), opened May 19 5
Slide 6: Kinepolis Leidschendam, opened June 5
Kinepolis Leidschendam, Westfield Mall of the Netherlands, opened June 5 6
Slide 7: Premiere Seating Landmark Edmonton Tamarack (CA), opened June 10
Premiere Seating Landmark Edmonton Tamarack (CA), opened June 10 7
Slide 8: H1 2021 vs H1 2020 key figures
€m H1 2021 H1 2020 % Better / -Worse Revenue 36,8 112,6 -67,3% Visitors (‘000) 2 188 8 139 -73,1% EBITDA -7,1 16,0 -144,4% EBITDA margin € -3,24/Vis -19,3% € 1,96/Vis 14,2% -3 348 bps EBITDAL -24,0 3,2 -845,5% EBITDAL margin € -10,97/Vis -65,2% € 0,40/Vis 2,9% -6 809 bps EBIT -48,0 -25,9 -85,5% EBIT
Slide 9: Cinema reopening dates: Belgium, France, Canada, Spain
❑ Belgium: ▪ Cinemas reopened as from June 9th, 2021 ❑ France: ▪ Cinemas reopened as from May 19th, 2021 ❑ Canada: ▪ British Columbia: cinemas reopened as from June 15th, 2021 ▪ Alberta: cinemas reopened as from June 10th, 2021 ▪ Saskatchewan: cinemas reopened as from May 30th, 2021 ▪ Manitoba: cine
Slide 10: Cinema reopening dates: Netherlands, USA, Luxembourg, Switzerland
❑ The Netherlands: ▪ Cinemas reopened as from June 5th, 2021 ❑ USA: ▪ Cinemas have been open during entire H1 2021 ❑ Luxembourg: ▪ Cinemas reopened as from January 13th, 2021 ❑ Switzerland: ▪ Cinemas reopened as from April 19th, 2021 10
Slide 11: Visitors by country
Visitors (000's) H1 2021 % of Tot H1 2020 % of Tot % ∆ YoY Belgium 230 10,5% 1 610 19,7% -85,7% France 368 16,8% 1 296 15,9% -71,6% Canada 231 10,6% 1 992 24,5% -88,4% Spain 487 22,3% 924 11,4% -47,3% The Netherlands 188 8,6% 1 135 13,9% -83,4% United States 579 26,5% 977 12,0% -40,7% Luxembourg 99
Slide 12: Countries, complexes, screens and market share
11 3 Market Complexes in Ownership Countries Complexes Screens Share ** # %Visitors Belgium 11 138 0% 10 90% France 14 +1 156 +6 0% 9 78% Canada 40 -5 325 -1 0% 4 1% Spain 8 137 0% 3 36% The Netherlands 20 +1 147 +11 0% 13 68% United States 10 164 0,0% 7 71% Luxembourg 3 22 0% 1 61% Switzerland 1 8
Slide 13: New-build pipeline projects
Country Project Name # Screens Est. Visitors / Year Estimated opening France Metz Amphithéâtre 8 0,3 mio H1 2022 Total 8 0,3 mio 13
Slide 14: Revenue by country
Luxembourg Luxembourg Switzerland 3,2% Switzerland 5,4% Poland Poland 1,4% USA 1,0% 10,0% Belgium USA 21,5% 20,8% Belgium The Netherlands 28,7% 14,4% € 36,8m € 112,6m France The Netherlands 12,9% Spain 9,2% 8,6% France 13,4% Canada 15,0% Canada Spain 13,8% 20,7% H1 2021 H1 2020 14
Slide 15: Revenue by activity
Brightfish Brightfish 0,9% Film Distribution 1,2% 2,3% Film Distribution Real Estate Real Estate 1,0% 11,5% B2B * 4,3% 9,3% B2B * Box Office 8,7% 46,9% € 36,8m € 112,6m Box Office In-theatre Sales 55,5% 28,7% In-theatre Sales 29,6% H1 2021 H1 2020 * Including Cinema Screen Advertising * Including Ci
Slide 16: Top 5 movies 2021 vs 2020
Top 5 Movies 2021 3D Visitors (000's) Top 5 Movies 2020 3D Visitors (000's) 1. The Conjuring: The Devil Made Me Do It 239 1. Bad Boys for Life ✓ 802 2. A Quiet Place Part II 149 2. 1917 782 3. Cruella 149 3. Sonic The Hedgehog 549 4. Godzilla vs. Kong ✓ 134 4. Star Wars: Episode IX - The Rise of Sky
Slide 17: Upcoming film releases Q3
Q3 KINEPOLIS"
Slide 18: Upcoming film releases Q4
Q4 10 11 hostbusters: Afterlife
Slide 19: Financial Review H1 2021
Meee Financial Review IY Ca H1 2021 CFO, Mr. Nicolas De Clercq KINEPOLIS GROUP
Slide 20: Revenue, EBITDAL and NFD evolution
❑ Revenue of € 36,8 million with 2,2 million visitors ▪ 26,9% of the visitors of H1 2020 ❑ EBITDAL of € -24,0 million ❑ NFD excl. lease liabilities increased from € 513,3 million per 31/12/2020 to € 542,3 million per 30/06/2021 or € -29,0 million, mainly due to: ▪ € -22,6 m from operations and payme
Slide 21: Liquidity: cash and credit lines
❑ Year 2021 started with 171,0 million (cash + credit lines) thanks to additional bullet loan of € 80,0 million ❑ H1 2021 ended with € 141,9 million cash + credit lines. Difference explained by: ▪ € -22,6 m operational cash burn ▪ € -8,5 m investments of which € -7,8 m in expansion ▪ € -4,8 m intere
Slide 22: Revenue by country
Revenue €m H1 2021 % of Tot H1 2020 % of Tot % ∆ YoY % ∆ Y Vis Belgium 7,9 21,5% 32,4 28,7% -75,6% -85,7% France 4,7 12,9% 15,1 13,4% -68,5% -71,6% Canada 5,5 15,0% 23,3 20,7% -76,2% -88,4% Spain 5,1 13,8% 9,7 8,6% -47,3% -47,3% The Netherlands 3,4 9,2% 16,2 14,4% -79,0% -83,4% United States 7,7 20,
Slide 23: Box office revenue and per visitor
46,9% OF REVENUE €m Box Office Box office* / Visitor 10,00 € 9,50 € 60 9,00 € 50 8,50 € 7,89 8,00 € 7,58 7,67 40 7,43 7,50 € 7,29 30 62,4 7,00 € 6,50 € 20 6,00 € 10 17,3 5,50 € 5,00 € 0 H1 H1 H1 H1 H1 H1 2020 H1 2021 2017 2018 2019 2020 2021 * Box Office revenue after deduction of indirect taxes, in
Slide 24: In-theatre sales and per visitor
29,6% OF REVENUE In-theatre Sales ITS* / Visitor €m 5,00 € 35 4,50 € 4,23 30 3,98 4,00 € 3,81 3,63 25 3,50 € 3,25 20 3,00 € 15 32,4 2,50 € 2,00 € 10 1,50 € 5 10,9 1,00 € 0 H1 H1 H1 H1 H1 H1 2020 H1 2021 2017 2018 2019 2020 2021 * Excl. ITS Delivery sales 24
Slide 25: Sales & Events and Screen Advertising
8,7% OF REVENUE €m Sales & Events (7,4%) €m Screen Advertising (1,3%) 9,0 2,5 8,0 7,0 2,0 6,0 1,5 5,0 4,0 8,2 2,2 1,0 3,0 2,0 0,5 2,7 1,0 0,5 0,0 0,0 H1 2020 H1 2021 H1 2020 H1 2021 * Excluding Brightfish 25
Slide 26: B2B revenue
11,5% OF REVENUE €m 6,0 5,0 4,0 3,0 4,9 2,0 4,2 1,0 0,0 H1 2020 H1 2021 26
Slide 27: Brightfish revenue
0,9% OF REVENUE €m 1,4 1,4 1,2 0,6 1,0 0,8 0,6 0,4 0,8 0,3 0,2 0,3 0,0 0,1 H1 2020 H1 2021 Screen Advertising Sales & Events 27
Slide 28: Film distribution revenue
2,3% OF REVENUE €m 1,2 1,0 0,8 0,6 1,1 0,4 0,9 0,2 0,0 H1 2020 H1 2021 28
Slide 29: Operating costs
€m H1 2021 H1 2020 % Better / -Worse Adjusted Marketing and Selling expenses -4,5 -7,0 36,4% Adjusted Administrative Expenses -8,9 -10,7 16,5% Adjusted Other Operating Income / Cost 10,3 5,0 105,1% Adjusted Operating Costs -3,1 -12,7 75,7% Adjustments Operating Costs -0,9 -0,3 -163,8% Total Operatin
Slide 30: EBITDAL by country
EBITDAL - €m H1 2021 % of Total H1 2020 % of Total % Better / -Worse % ∆ Y Vis Belgium -9,6 40,0% -0,4 -13,7% 2075,0% -85,7% France 0,0 0,1% 1,8 56,5% -102,0% -71,6% Canada -6,9 28,9% -2,6 -82,1% 162,7% -88,4% Spain -1,7 7,2% 0,8 25,2% -312,6% -47,3% The Netherlands -4,5 18,6% 3,6 110,7% -224,9% -83
Slide 31: Depreciation, amortization and provisions
€m H1 2021 H1 2020 % Better / -Worse Depreciation, amortization and provisions -27,1 -27,9 2,8% Depreciations on Right-of-Use Assets -13,7 -13,9 1,4% Total Depreciation, amortization and provisions -40,9 -41,8 2,3% €m 0,0 -10,0 -20,0 -30,0 -40,0 -41,8 1,6 -39,9 -0,9 -40,9 -0,1 -41,7 0,2 -50,0 H1 202
Slide 32: Financial result
€m H1 2021 H1 2020 % Better / -Worse Interest Expense -7,63 -7,22 -5,7% Financial charges IFRS 16 -5,20 -5,32 2,2% FX 0,41 0,07 507,1% Other (CNC, bank charges,...) -0,70 -1,16 39,6% Financial (Cost) / Income -13,13 -13,64 3,7% €m -1,0 -3,0 -5,0 -7,0 -9,0 -11,0 -13,0 -13,13 -13,64 -0,41 0,12 0,80 -1
Slide 33: Taxes and effective tax rate
€m H1 2021 H1 2020 % Better / -Worse Result before taxes -61,1 -39,5 -54,7% Taxes 15,3 9,8 55,9% Result -45,8 -29,7 -54,3% Effective Tax Rate ('ETR') 25,1% 24,9% 19 bps Tax effect on adjustments 0,2 0,1 83,2% Adjusted Effective Tax Rate ('Adj. ETR') 25,1% 24,9% 20 bps €m 5,3 0,1 15,1 0,2 15,3 15 Adj
Slide 34: EBITDAL to result bridge H1 2021
€m -5,0 -7,1 -15,0 -25,0 -24,0 16,9 -35,0 -45,0 -45,8 -40,9 -48,0 -55,0 -13,1 15,3 -65,0 EBITDAL Costs related to EBITDA Depr, Amort, Prov EBIT Financial result Taxes Result H1 2021 lease contracts H1 2021 H1 2021 H1 2021 34
Slide 35: Capital expenditure
€m €m H1 2021 H1 2020 12 Belgium 0,8 3,4 10,3 France 0,3 1,1 10 Canada 0,2 3,1 8 Spain 0,2 1,0 5,8 6,2 6 The Netherlands 0,3 1,1 4,5 United States 0,1 0,1 4 Luxembourg 0,2 0,4 1,4 2 0,7 Maintenance & Internal Expansion 2,1 10,3 0 External Expansion 6,2 10,3 MAINTENANCE INTERNAL EXPANSION EXTERNAL EX
Slide 36: Free cash flow bridge H1 2021
€m 0,0 -5,0 -10,0 -0,7 -15,0 -4,8 -15,5 7,3 -0,7 -20,0 -7,0 -21,4 -25,0 Cash flow before WC Income Working Capex - Maintenance Interest Payment of lease FCF H1 2021 movements and Tax Taxes Capital Paid liabilities paid 36
Slide 37: Quarterly cash flow overview
Average Q1 2021 Q2 2021 H1 2021 Q2 2021 OCF after lease payments -15 670 -6 883 -22 553 -2 294 Working capital -2 964 10 288 7 324 3 429 Income Taxes Paid / Received 174 - 829 - 655 - 276 Capital Exp – Maintenance - 457 - 258 - 715 - 86 Interest Paid / Received -3 563 -1 247 -4 809 - 416 Free Cash F
Slide 38: Net financial debt evolution
€m H1 2021 YE 2020 Better/-Worse NFD Evolution Net Financial Debt (NFD) excl. lease liabilities 542,3 513,3 -29,0 -5,7% Net Financial Debt (NFD) incl. lease liabilities 944,1 906,9 -37,2 -4,1% Leverage ratio*: NFD / EBITDA -160,38 52,76 Leverage ratio*: NFD excl. lease liabilities / EBITDAL -13,16 -
Slide 39: Debt maturity profile
€ 250.000.000 Priv. Plac. 7,5Y RCF 5Y* 225.000.000 225.000.000 120.000.000 200.000.000 175.000.000 150.000.000 125.000.000 Priv. Plac. 8Y (Dec) 100.000.000 Priv. Plac. 7Y 60.000.000 Priv Plac. 10Y 61.400.000 65.000.000 75.000.000 50.000.000 Term loan Term loan Bond 8Y (yearly) (yearly) 15.878.000 Bu
Slide 40: Balance sheet
€m 30/06/2021 % of Total 31/12/2020 % of Total €m 30/06/2021 % of Total 31/12/2020 % of Total Intangible assets 11,2 1,0% 11,7 1,0% Share capital & share premium 20,1 1,7% 20,1 1,7% Goodwill 166,5 14,3% 163,1 14,0% Consolidated reserves 77,8 6,7% 123,6 10,6% Property, plant & equipment 510,2 43,8% 5
Slide 41: Shares and shareholders
17/08/2021 23/02/2021 # Shares % # Shares % Total shares outstanding 27 365 197 100% 27 365 197 100% Reference Shareholders & Free Float # Shares % # Shares % Kinehold Bis, Pentascoop and Mr. Joost Bert 13 192 268 48,21% 13 192 268 48,21% Treasury shares 475 351 1,74% 480 851 1,76% Free Float 13 6
Slide 42: Financial calendar
Thursday 28/10/2021 Business update Q3 2021 Thursday 17/02/2022 Annual results 2021 Press & Analyst meeting Thursday 28/04/2022 Business update Q1 2022 Wednesday 11/05/2022 Annual Shareholders’ Meeting Kinepolis Group 42
Slide 43: Thank you - Q&A
Q&A Thank you KINEPOLIS GROUP y
Slide 44: Financial Statements Results H1 2021
" ou. | { Financial Statements par S> : Wy Results H1 2021 KINEPOLIS GROUP
Slide 45: Expansion projects: Spain and Netherlands
Country Project Name # Complexes # Screens Est. Visitors / Year Realized Spain Alicante 1 16 1,0 mio Q2 2014 Alcobendas - Madrid 1 12 Nevada – Granada 1 8 0,4 mio Q4 2016 El Punt 2 38 1,6 mio Q1 2019 The Netherlands Wolff Bioscopen 9 46 1,6 mio Q3 2014 Acq. Building Enschede (Wolff) Q2 2015 Dordrech
Slide 46: Expansion projects: France, Canada, USA
Country Project Name # Complexes # Screens Est. Visitors / Year Realized France Bourgoin 1 12 0,6 mio Q3 2015 Rouen 1 14 0,4 mio Q1 2016 Fenouillet (greenfield) 1 8 0,4 mio Q4 2016 Metz (Palace) (greenfield) 1 7 0,2 mio Q3 2018 Brétigny-sur-Orge (greenfield) 1 10 0,5 mio Q3 2018 Servon (greenfield)
Slide 47: Consolidated income statement
€m H1 2021 H1 2020 % Better / -Worse Revenue 36,8 112,6 -67,3% Cost of Sales -80,7 -125,4 35,6% Gross result -43,9 -12,8 -242,5% Gross result % -119,4% -11,4% Marketing and selling expenses -4,5 -7,0 36,2% Administrative expenses -9,8 -11,0 10,9% Other operating income and expenses 10,3 5,0 104,7% E
Slide 48: Consolidated balance sheet: assets
€m 30/06/2021 31/12/2020 % Better / -Worse Intangible assets 11,2 11,7 -3,9% Goodwill 166,5 163,1 2,0% Property, plant & equipment 510,2 521,1 -2,1% Right-of-use assets 364,8 362,5 0,6% Investment property 17,7 17,6 0,6% Deferred tax assets 20,8 14,8 40,6% Other receivables 6,3 6,3 -0,2% Non-current
Slide 49: Consolidated balance sheet: equity and liabilities
€m 30/06/2021 31/12/2020 % Better / -Worse Share capital & share premium 20,1 20,1 0,0% Consolidated reserves 77,8 123,6 -37,1% Translation reserve -8,4 -17,3 51,4% Equity attributable to the owners of the Company 89,5 126,5 -29,3% Non-controlling interests -0,09 0,00 -2250,0% Total equity 89,4 126,
Slide 50: Consolidated cash flow statement
€m H1 2021 H1 2020 Better / -Worse Result before tax -61,1 -39,5 -21,6 Adjustments for: Depreciation, amortization & provisions 40,9 41,7 -0,9 Government grants -0,7 -0,4 -0,3 Financial result & Share based payments 12,8 13,2 -0,4 Forgiveness of lessee's lease payments -7,4 -3,9 -3,5 Cash generated
Slide 51: Free cash flow overview
€m H1 2021 H1 2020 Better / -Worse Cash Flow before WC movements & tax paid -15,5 11,2 -26,7 Income taxes (paid) / received -0,7 -0,9 0,2 Working capital 7,3 -19,1 26,4 Capital exp – maintenance -0,7 -4,5 3,7 Interest (paid) / received -4,8 -3,8 -1,0 Payment of lease liabilities (capital portion + i
Slide 52: Glossary of Alternative Performance Measures
The glossary below contains Alternative Performance Measures (APMs) that are aimed to improve the transparency of the financial information. For the full glossary, we refer to the corporate website of Kinepolis. ❑ Adjusted operating result: Operating result after elimination adjustments; is used to
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