Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — Non-Deal Roadshow (November 2017)
56 slides from Kinepolis Group Nv's roadshow presentation, November 2017
Slide 1: Roadshow Private Placement November 2017
Roadshow Private Placement November 2017
Slide 2: Kinepolis in Europe
Kinepolis in Europe One theatre in Poland is operated by a third party Planned Greenfields: Den Bosch (NL) and Brétigny-sur-Orge (FR) 2
Slide 3: Key Figures
Key Figures 2016 VISITORS 23.8 million TURNOVER 324.9 million EUR CURRENT PROFIT 40.4 million EUR REBITDA 94.6 million EUR 3
Slide 4: Cinema Operations
© Concessions ¢ Projects Real Estate ¢ Construction ¢ Maintenance Kinepolis Film Distribution Cinema >/ * Sales Digital Operations Po) © Repair Services + : « Maintenance KINEPOLIS * Dealerships © Subdealerships ¢ Tax sheltering ¢ Development NC Brightfish 4 * Screen Advertising Shared =e) Center *
Slide 5: Three strategic pillars
Three strategic pillars Best marketer Best cinema operator Best real estate manager 55
Slide 6: Best cinema operator
Best cinema operator Budget Ownership Financial KPI’s Customer Satisfaction People Satisfaction “Micro-manage to get macro-results” 6
Slide 7: Best marketer
Best marketer Customer knowledge and segmentation Preference Centre Net Promotor Score Active Programming Digitization Ultimate movie experience 7
Slide 8: Best real estate manager
Best real estate manager 8
Slide 9: Return on Capital Employed
Return on Capital Employed 9
Slide 10: Return on Capital Employed
Return on Capital Employed 25,00% 22,90% 21,50% 21,80% 20,00% 19,80% 20,90% 17,90% 17,70% 16,00% 15,00% 12,00% 10,00% 10,00% 8,00% 5,00% 0,00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 2017 10
Slide 11: Financial Performance
Financial Performance 100 000 340 000 330 000 90 000 320 000 80 000 310 000 300 000 70000 290 000 60 000 280 000 270 000 50 000 260 000 40.000 250 000 240 000 30000 230 000 uss 20000 —_ a 220 000 210 000 10 000 200 000 (e) 190 000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ——= Visitors EBITDA
Slide 12: Financial leverage
financial leverage €m H1 2017 YE 2016 Better/ ‐Worse % Better/ ‐Worse Net Financial Debt (NFD) 195,0 169,8 ‐25,3 ‐14,9% Leverage ratio*: NFD / REBITDA 2,0 1,8 €m € 250 3,5 3,0 € 200 2,5 € 150 2,0 1,5 € 100 1,0 € 50 0,5 €0 0,0 YE 2013 YE 2014 YE 2015 YE 2016 H1 2017 Net Financial Debt REBITDA NFD/REB
Slide 13: Maturity profile financial debt
Maturity profile financial debt € 120 000 000 RCF 5y* 90.000.000 100 000 000 80 000 000 Bond 7y Priv. Plac. 7y 59.122.000 61 400 000 60 000 000 Priv. Plac. 10y 34 600 000 40 000 000 Bond 8y Term loan 15.878.000 20 000 000 5.943.000 (yearly) 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 * Revol
Slide 14: Balance sheet
Balance sheet €m 30/06/2017 % of Total 31/12/2016 % of Total €m 30/06/2017 % of Total 31/12/2016 % of Total Intangible assets 6,3 1,3% 5,9 1,2% Capital & share premium 20,1 4,3% 20,1 4,0% Goodwill 53,3 11,3% 53,3 10,6% Consolidated reserves 123,5 26,2% 130,9 26,0% Property, plant & equipment 319,6 6
Slide 15: Kinepolis ready for the future
Kinepolis ready for the future
Slide 16: Improvement potential
Key in our expansion strategy IMPROVEMENT POTENTIAL 16
Slide 17: Expansion
Expansion At. 4 07 \ a Le 1h iP KINEPOLIS"
Slide 18: Realized acquisitions and greenfields (2014–2017)
REALIZED ACQUISITIONS AND greenfields (2014 – 2017) Country City # 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 The Wolff Bioscopen 9 46 1,6 mio Q3 2014 Netherlands Acq. Building Enschede (Wolff) Q
Slide 19: Planned greenfields
planned greenfields* Country City # Screens Est. Visitors / Year Estimated opening The Netherlands Den Bosch 7 0,4 mio Q1 2018 France Brétigny‐sur‐Orge 10 0,5 mio Q2 2018 Total 17 0,9 mio * The listed planned greenfields are greenfields for which an irrevocable license was obtained Kinepolis Den Bos
Slide 20: Improvement potential: trade-off versus size
Key in our expansion strategy IMPROVEMENT POTENTIAL … trade-off versus size … 20
Slide 21: Landmark Cinemas Overview
Landmark Cinemas Overview 50+ Years >10 Million 303 44 2nd Largest in Industry Visitors Annually Screens Theatre Locations in Canada ► Continued investment to expand the network and enhance the customer experience. New and Modern ► Strategic theatre conversions to all-recliner seating and premium la
Slide 22: History of Landmark Cinemas
History of Landmark Cinemas 2005 1984 • Empire acquires 27 theatres from 2012 • Empire is formed through Cineplex located across Canada • Empire acquires 2014 Sobeys’ acquisition of the from BC to Ontario, as part of Atlantic assets of Canadian Cineplex’s acquisition of Famous Whitby and Kanata • Ad
Slide 23: Theatre Network Overview
Theatre Network Overview ► Landmark theatres are located across Central and Western Canada, including B.C., Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon Territory – totalling 44 theatres, 303 screens and more than 55,000 seats. Only two theatres British are located in competitive zones wh
Slide 24: Canadian Economy
Canadian Economy ► Western Canada and Ontario represent 75% of the Canadian economy (GDP), with a population of 25.2 million (of Canada’s total population of 35.9 million), and per capita GDP of $59,150 ($46,126 in Quebec, USD$53,042 in the US). ► Key demographics in the region are favourable for mo
Slide 25: Canadian Industry Landscape
Canadian Industry Landscape Top Canadian Exhibitors (2016) ► The Canadian marketplace is predominantly Exhibitor Theatres Market Share controlled by two exhibitors: Cineplex (79% 1 Cineplex 166 79.1% 2 Landmark Cinemas 44 9.9% market share) and Landmark (10% market 3 Guzzo 10 1.9% share). Guzzo, wit
Slide 26: N.A. Industry Trends – Driving Growth
N.A. Industry Trends – Driving Growth Comfort and Convenience ► Recliner seating ► Ticketing technology ► Reserved seating Screen Technology Enhanced Food & Beverage ► Premium Large Format ► Mobile concession ordering ► 4DX / D-BOX ► Premium concession options ► IMAX Industry Trends ► In-seat servic
Slide 27: Kinepolis Group Results H1 2017 & Q3 business update
Kinepolis Group Results H1 2017 & Q3 business update
Slide 28: Key Financials H1 2017
KEY FINANCIALS €m H1 2017 H1 2016 % Better / ‐Worse Visitors (‘000) 11.775 11.231 4,8% Revenue 160,1 148,3 7,9% EBITDA 42,9 38,3 12,2% REBITDA 44,0 39,6 11,2% REBITDA Margin € 3,74/Vis 27,5% € 3,52/Vis 26,7% 80 bps EBIT 28,2 23,8 18,6% REBIT 29,2 25,1 16,2% REBIT Margin 18,2% 16,9% 130 bps Profit 15
Slide 29: H1 2017 results reflect strategic pillars
major events H1 2017 results reflect Strategic Pillars set out in 2008 Best Marketer Best Cinema Operator Best Property Manager Further development and implementation of strategy in 2017 Eddy Duquenne received ‘International Exhibitor of the Year’ award at CineEurope Barcelona Belgian Comp
Slide 30: Revenue by country
revenue by country Switzerland Switzerland Luxembourg Luxembourg Poland Poland 4,6% 4,8% 1,6% 1,5% The Netherlands The Netherlands 13,2% 10,3% Belgium Belgium Spain 45,3% Spain 47,3% 12,8% 13,2% € 160,1 m € 148,3 m France France 22,9% 22,5% H1 2017 H1 2016 30
Slide 31: Revenue by activity
revenue by activity Brightfish Film Film Distribution Brightfish Distribution Real Estate 2,3% 1,1% Real Estate 2,8% 1,6% 4,3% 4,0% B2B* B2B* 12,8% 12,6% € 160,1 m Box € 148,3 m Box Office Office 55,8% 56,0% In-theatre In‐theatre Sales Sales 23,9% 22,8% H1 2017 H1 2016 * Including Cinema Screen Adve
Slide 32: Ratios: REBITDA margin, ROCE, gearing
ratio’s REBITDA Margin ROCE Gearing 35% 30% 1,60 1,32 1,37 1,40 30% 1,13 27,9% 26,8% 27,5% 25% 22,9% 1,13 26,7% 27,5% 20,9% 21,5% 1,20 25% 20% 1,00 17,9% 17,7% 0,84 0,80 20% 15% 0,60 0,40 15% 10% 0,20 10% 5% 0,00 2013 2014 2015 2016 H1 2013 2014 2015 2016 H1 2013 2014 2015 2016 H1 H1 H1* H1 H1 2017
Slide 33: Business update Q3 2017
Business update Q3 2017 KINEPOLIS GROUP |
Slide 34: Highlights
highlights Revenue up: Increased visitors (+ 5,8%) Increased Box Office Increased In-theatre sales Increased B2B Increased Sales and Events Increased Screen advertising Increased Brightfish Decreased Film Distribution Increased Real Estate REBITDA up: Increased revenue per vi
Slide 35: Visitors YTD Q3 2017
visitors YTD Q3 2017 Visitors (000's) YTD Q3 2017 % of Tot YTD Q3 2016 % of Tot % ∆ YoY Belgium 5.967 34,0% 5.816 35,1% 2,6% France 5.269 30,0% 4.994 30,1% 5,5% Spain 3.126 17,8% 3.027 18,3% 3,3% The Netherlands 2.324 13,3% 1.893 11,4% 22,8% Luxembourg 765 4,4% 757 4,6% 1,1% Switzerland 87 0,5% 91 0
Slide 36: Financial Review H1 2017
Financial Review H1 2017 KINEPOLIS GROUP |?"
Slide 37: Revenue by country
Revenue by country €m H1 2017 % of Tot H1 2016 % of Tot % Δ YoY % Δ Y Vis Belgium 72,5 45,3% 70,2 47,3% 3,4% ‐0,3% France 36,0 22,5% 33,9 22,9% 6,1% 4,1% Spain 20,5 12,8% 19,6 13,2% 4,7% 3,3% The Netherlands 21,1 13,2% 15,2 10,3% 38,5% 30,4% Luxembourg 7,4 4,6% 7,1 4,8% 3,3% ‐0,7% Other 2,5 1,6% 2,2
Slide 38: Evolution Box Office
Evolution Box OFFICE €m Box Office 100 10,00 € Box office* / visitor 89,2 90 83,0 +7,5% 9,50 € 80 9,00 € 70 8,50 € 60 8,00 € +2,6% 7,58 7,39 50 7,50 € 40 7,00 € 30 6,50 € 20 6,00 € 10 5,50 € 0 5,00 € H1 2016 H1 2017 H1 2016 H1 2017 * Box Office revenue after deduction of indirect taxes, including VP
Slide 39: Evolution In-theatre Sales
EVOLUTION ITS €m In‐theatre Sales 45 ITS / visitor 5,00 € 38,3 40 +13,4% 4,50 € 33,8 35 4,00 € 30 3,50 € +8,1% 3,25 25 3,01 3,00 € 20 2,50 € 15 10 2,00 € 5 1,50 € 0 1,00 € H1 2016 H1 2017 H1 2016 H1 2017 39
Slide 40: B2B revenue
B2B revenue €m Sales & Events* €m Screen Advertising* 18 4,0 +5,6% 16 3,5 14 +6,6% 3,0 12 2,5 10 3,4 3,6 2,0 8 15,7 16,6 1,5 6 1,0 4 2 0,5 0 0,0 H1 2016 H1 2017 H1 2016 H1 2017 * Excluding Brightfish * Excluding Brightfish 40
Slide 41: Brightfish
Brightfish -% €m 4,5 4,1 ‐9,9% 4,0 3,7 3,5 0,8 3,0 2,0 2,5 2,0 1,5 2,9 1,0 2,1 0,5 0,0 H1 2016 H1 2017 Screen Advertising Sales & Events 41
Slide 42: Real estate at flat fx
Real estate at flat fx €m 8 7 +16% 6 Kinepolis Dordrecht, NL 5 4 5,9 6,9 3 2 1 H1 2016 H1 2017 Kinepolis Den Bosch, NL 42
Slide 43: Film distribution
Film distribution €m 2,5 -26,7% 2,0 1,5 2,3 1,7 1,0 0,5 0,0 H1 2016 H1 2017 # releases 19 10 43
Slide 44: Current operating costs
Current operating costs €m H1 2017 H1 2016 % Better / ‐Worse Current Marketing & Selling Expenses ‐8,7 ‐7,7 ‐12,4% Current Administrative Expenses ‐9,7 ‐10,0 3,0% Other Current Operating Income/(Costs) 0,5 0,5 0,9% Current Operating Costs ‐17,9 ‐17,2 ‐3,8% Non‐Current Operating Costs ‐0,4 ‐0,9 53,2%
Slide 45: Evolution REBITDA per visitor
Evolution Rebitda* per visitor 7,00 € 6,46 6,00 € 5,94 5,00 € 3,74 4,09 4,00 € 3,52 +6,25% 3,33 3,41 3,35 3,01 3,00 € 2,67 2,44 2,56 2,00 € 1,00 € 0,00 € H1 2016 H1 2017 Belgium* France Spain The Netherlands Luxembourg Group * Per country excluding corporate entities, KFD & Brightfish revenue ; tota
Slide 46: REBITDA by country
Rebitda by country REBITDA €m H1 2017 % of Total H1 2016 % of Total % Better/‐Worse Belgium 18,0 40,9% 17,4 44,1% 3,3% France 12,4 28,2% 11,6 29,4% 6,3% Spain 5,3 12,0% 5,3 13,5% ‐1,2% The Netherlands 5,1 11,6% 2,8 7,2% 79,3% Luxembourg 2,2 5,0% 1,6 4,1% 34,8% Switzerland & Poland 1,0 2,3% 0,7 1,7%
Slide 47: Depreciation, amortization, provisions
Depreciation, amortization, provisions €m 0 ‐2 ‐4 ‐6 ‐8 ‐10 ‐12 ‐14 ‐14,46 ‐0,02 ‐14,48 ‐0,34 ‐14,82 0,12 ‐14,70 ‐16 H1 2016 Non‐current H1 Current Normal Current Non‐current H1 2017 2016 H1 2016 diff's H1 2017 H1 2017 47
Slide 48: Financial result
Financial result €m H1 2017 H1 2016 % Better/‐Worse Interest Expense ‐3,61 ‐3,65 ‐0,8% Other (CNC, Derivatives, FX, bank fees) ‐0,48 ‐0,46 3,8% Financial (Cost) / Income ‐4,10 ‐4,11 ‐0,3% €m 0,00 ‐0,50 ‐1,00 ‐1,50 ‐2,00 ‐2,50 ‐3,00 ‐3,50 ‐4,00 ‐4,11 0,03 ‐0,01 0,00 ‐4,10 ‐4,50 H1 2016 Interest FX Ot
Slide 49: Taxes
taxes €m H1 2017 H1 2016 % Better/‐worse Profit before taxes 24,1 19,7 22% Taxes ‐8,4 ‐6,6 ‐27% Profit form discontinuing operations 0,1 ‐100% Profit 15,8 13,2 20% Effective Tax Rate (‘ETR’) 34,6% 33,4% 120 bps 0 €m ‐1 ETR ETR ETR ETR 33,4% 33,3% 34,4% 34,6% ‐2 ‐3 ‐4 ‐5 ‐6 ‐7 ‐6,6 ‐0,4 ‐7,0 ‐8 ‐1,4
Slide 50: EPR
EPR • On 11 January 2016, The European Commission published a decision that a purported regime of Belgian tax rulings with regard to ‘Excess Profit’ (EPR) should be considered as illegal state aid. The European Commission’s decision requires the Belgian government to asses back taxes from companies
Slide 51: REBITDA to net result
Rebitda to net result €m 50,0 44,0 ‐14,8 45,0 40,0 35,0 29,2 ‐4,1 30,0 ‐8,6 25,0 20,0 ‐0,7 15,8 15,0 10,0 5,0 0,0 REBITDA H1 2017 Current REBIT H1 2017 Current Current Other Non‐current Result H1 2017 Depr, financial taxes items Amort, result Prov 51
Slide 52: Investments
investments €m €m H1 2017 H1 2016 40,0 39,0 Belgium 4,2 2,9 35,0 France 1,5 1,9 30,0 Spain 0,7 0,8 25,0 The Netherlands 1,3 1,0 20,0 Luxembourg 0,8 0,0 15,0 Other 0,2 0,1 10,0 6,3 Maintenance & Internal Expansion 8,7 6,7 4,8 4,2 3,9 2,5 5,0 External Expansion 6,3 39,0 ‐ TOTAL 15,0 45,7 Maintenance I
Slide 53: Free cash flow: H1 2017 vs H1 2016
Free cash flow: h1 2017 vs h1 2016 €m 16,0 5,1 ‐2,7 14,0 ‐2,4 12,0 9,8 10,0 ‐0,5 ‐0,5 8,7 ‐0,1 8,6 8,0 6,0 4,0 2,0 0,0 FCF H1 2016 EBITDA Income Tax Working Capex ‐ Interest FCF H1 2017 excl EPR payment FCF H1 2017 Paid (excl EPR Capital Maintenance Paid EPR payment payment) 53
Slide 54: Net financial debt evolution
Net financial debt evolution €m H1 2017 YE 2016 Better/‐Worse % Better/‐Worse Net Financial Debt (NFD) 195,0 169,8 ‐25,3 ‐14,9% Leverage ratio*: NFD / REBITDA 2,0 1,8 €m 0,0 ‐50,0 ‐100,0 42,2 ‐9,2 ‐12,7 ‐15,0 ‐150,0 ‐6,9 0,2 ‐23,7 ‐169,8 ‐200,0 ‐195,0 ‐250,0 NFD 2016 EBITDA + Taxes Working Investmen
Slide 55: Shareholders
shareholders 15/11/2017 23/08/2017 # Shares % # Shares % Total shares outstanding 27.365.197 100% 27.365.197 100% Reference Shareholders & Free Float # Shares % # Shares % Kinehold Bis, Pentascoop and Mr. Joos Bert 13.254.590 48,44% 13.254.590 48,44% Treasury shares (own shares) 132.346 0,48% 132.34
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