Kinepolis Group NV · EURONEXT:KIN
Kinepolis Group NV — FY2013 Earnings Presentation
42 slides from Kinepolis Group NV's earnings presentation, Feb 20, 2014
Slide 1: Kinepolis Group Results 2013
Kinepolis Group Results 2013 February 20, 2014
Slide 2: Business Review 2013
Business Review 2013 CEO, Mr Eddy Duquenne 2
Slide 3: Key Financials
Key Financials €m 2013 2012 Better / (Worse) Visitors (‘000) 18.232 19.799 (7,9)% Revenue 246,0 254,5 (3,3)% % EBITDA 75,0 72,3 3,8% REBITDA € 4,09/Vis 74,6 € 3,74/Vis 74,0 0,9% REBITDA Margin 30,3% 29,1% EBIT 55,1 51,7 6,6% REBIT 55,0 54,0 2,0% REBIT Margin 22,4% 21,2% Profit 37,5 35,7 5,1% Current
Slide 4: Highlights
Highlights Revenue down by 3,3% Visitors –7,9%, due to bad film weather conditions, poor local film content in France and economic crisis in Spain Increase Box Office per visitor to € 7,23 (+2,4%) Increase In-theatre Sales spend per visitor to € 2,85 (+6,4%) Sales and Events stable (-1,1%)
Slide 5: Major events
Major events 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 Settlement with TPB (Belgium) Sale of land in Poland (surplus value of € 0,9 m) Green Star report pu
Slide 6: Kinepolis complexes today
Kinepolis complexes today KINEPOLIS GROUP Complexes Screens Belgium 11 138 France 7 87 Spain 3 63 Poland * 1 18 Switzerland 1 8 Total 23 314 11 Market Share: Belgium: to be announced** France: 3,2% Spain: 4,4% 296 digital screens (100% digitised***) Of which 93 screens with 3D * Operated by IT
Slide 7: Revenue by country
Revenue by country Switzerland Poland Switzerland 2% Poland 2% Spain 12% Spain 15% France € 246,0 m € 254,5 m 24% France Belgium Belgium 24% 59% 62% 2012 2013 19 februari 2014 7
Slide 8: Revenue by activity
Revenue by activity Film Brightfish Distribution Film Concessions 4% 1% Brightfish Distribution 4% 4% 1% Concessions 4% B2B* B2B* 16% 15% Box Office Box Office € 246,0 m 54% € 254,5 m 55% In-theatre In-theatre Sales Sales 21% 21% 2012 2013 * Including Cinema Screen Advertising 19 februari 2014 8
Slide 9: Visitors & Movies
Visitors & Movies Visitors (000’s) 2013 % of Tot 2012 % of Tot % Δ YoY Belgium 9.185 50,4% 9.444 47,6% (2,7)% France 5.805 31,8% 6.328 32,0% (8,3)% Spain 3.099 17,0% 3.876 19,6% (20,0)% Switzerland 143 0,8% 151 0,8% (5,3)% Total 18.232 100% 19.799 100% (7,9)% Top 5 Movies 2013 3D Visitors (000’s) To
Slide 10: Ratios
Ratios REBITDA Margin ROCE Gearing 35% 30% 100% 0,83 0,84 30,3% 29,1% 25% 80% 30% 22,9% 27,8% 28,3% 21,8% 0,67 19,8% 0,57 25,1% 20% 60% 25% 16% 0,43 15% 12% 40% 20% 10% 20% 15% 5% 0% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 19 februari 2014 10
Slide 11: Net Financial Debt Evolution
Net Financial Debt Evolution €m 31 Dec 2013 31 Dec 2012 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 88,1 90,2 2,1 2,3% Leverage ratio*: NFD / EBITDA 1,2 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 YE 12 YE 13
Slide 12: Dividend payment
Dividend payment Dividend/Share Based on Net Current Income: 3,50 € 3,19 € € 37,4 m 3,00 € +35,2% Payout ratio: 45% 2,50 € 2,36 € 2,00 € 1,80 € # Dividend eligible shares: 5.282.131* 1,50 € 1,26 € 0,92 € € 3,19 per share / € 3,09 per share fully 1,00 € 0,64 € 0,65 € 0,66 € diluted* 0,50 € 0,
Slide 13: Line-up 2014
Line-up 2014 2D 3D Major sequels • Dawn of the Planet of the Apes (Q3) • Rio 2 (Q2) • The Hunger Games: Mockingjay – Part 1 • How to Train Your Dragon 2 (Q3) (Q4) • Transformers: Age of Extinction (Q3) • The Hobbit: There and Back again (Q4) New titles • The Wolf of Wall Street (Q1) • Maleficent (Q2
Slide 14: Financial Review 2013
Financial Review 2013 CFO, Mr Nicolas De Clercq 14
Slide 15: Revenue by country
Revenue by country €m 2013 % of Tot 2012 % of Tot % Δ YoY Belgium 152,5 62,0% 149,8 58,9% 1,8% France 58,7 23,9% 62,3 24,4% (5,8)% Spain 30,4 12,3% 37,6 14,8% (19,2)% Switzerland & Poland 4,4 1,8% 4,7 1,9% (7,8)% Total 246,0 100% 254,5 100% (3,3)% 15 19 februari 2014
Slide 16: Evolution Box Office & ITS
Evolution Box Office & ITS Box office* / visitor ITS / visitor 8,00 € 3,00 € +2,4% 2,85 7,50 € 7,23 +6,4% 7,01 7,07 2,80 € 2,68 7,00 € 6,82 2,60 € 2,50 6,36 6,50 € 2,37 2,40 € 6,00 € 2,22 2,20 € 5,50 € 2,00 € 5,00 € 4,50 € 1,80 € 4,00 € 1,60 € 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 * Box
Slide 17: Revenue by Business (1)
Revenue by Business (1) €m Cinema Revenue €m Sales & Events * €m Screen Advertising * 240 40 8,0 220 7,5 -2,6% 35 +26,8% +24,6% 7,0 200 30 6,5 180 25 6,0 160 ** 5,5 20 140 5,0 120 15 4,5 100 10 4,0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011* 2012* 2013* Visitors 22,0 21,3 21,3
Slide 18: Revenue by Business (2)
Revenue by Business (2) €m Concessions @ flat FX €m Film Distribution 10,0 4,0 +5,3% -1,8% 9,0 3,2 8,0 2,4 7,0 1,6 6,0 0,8 5,0 4,0 0,0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 # 43 46 31 34 31 releases 19 februari 2014 18
Slide 19: Revenue by activity waterfall
Revenue by activity waterfall -0,3% €m 270,0 -5,7% -2,0% -1,1% +11,9% +11,2% -0,6% +x,x% -1,7% -3,3% 260,0 254,5 250,0 246,0 (8,0) (1,1) (0,3) +0,8 +0,4 (0,1) (0,2) (0,0) 240,0 230,0 220,0 210,0 Business line Cinema 200,0 2012 Box In-theatre Sales & Screen Film Brightfish Real Other & FX 2013 Office
Slide 20: Operating Costs
Operating Costs €m 2013 2012 % Better / (Worse) Marketing & Selling Expenses (15,2) (16,2) 5,8% Administrative Expenses (13,6) (15,1) 9,7% Other Operating Income/(Costs) 1,8 0,7 153,2% Total Operating Costs (27,0) (30,5) 11,2% Non-Current 0,4 (0,9) Current Operating Costs (27,4) (29,6) 7,2% 19 febru
Slide 21: Non-Current items
Non-Current items €m 2013 2012 Impacts Gain on sale land Poland 0,9 Transformation expenses (0,5) (1,7) Loss on disposal leasehold improvements (0,1) EBITDA former Brightfish offices EBITDA 0,4 (1,7) Write-down disposed of fixed assets (0,2) (0,2) Write-down assets under construction (0,4) Depreciat
Slide 22: REBITDA by Country
REBITDA by Country REBITDA €m 2013 % of Total 2012 % of Total % Better/(Worse) Belgium 44,3 59,4% 39,4 53,2% 12,6% France 21,7 29,0% 22,3 30,2% (17,2)% Spain 7,1 9,6% 10,6 14,3% (2,9)% Switzerland & Poland 1,5 2,0% 1,7 2,3% (10,0)% TOTAL 74,6 100% 74,0 100% 0,9% 2013 2012 REBITDA Margin % (on a comp
Slide 23: REBITDA Margin
REBITDA Margin REBITDA € 2,64 € 3,12 € 3,37 € 3,74 € 4,09 /Visitor 38% 25.000 21.980 21.320 21.261 36% 19.799 18.232 20.000 34% 32% 15.000 30,3% 30% 29,1% 28,3% 27,8% 10.000 28% 26% 25,1% 5.000 24% 22% 0 2009 2010 2011 2012 2013 Rebitda Margin Visitors ('000) 19 februari 2014 23
Slide 24: Financial Result
Financial Result €m 2013 2012 % Better/(Worse) Interest Expense (4,8) (4,7) (1,2)% Other (CNC, Tax Shelters, Derivatives, FX) (1,2) (1,1) (7,4)% Financial (Cost) / Income (6,0) (5,9) (2,4)% €m -4 -4,5 -5 -5,5 -6 (5,9) (0,1) (0,1) +0,0 +0,1 (6,0) (0,0) -6,5 2012 Interest FX Write-down Refinancing Oth
Slide 25: Taxes
Taxes €m 2013 2012 % Better /(Worse) Profit before taxes 49,1 45,8 7,1% Taxes (11,5) (10,1) (14,0)% Profit 37,5 35,7 5,1% Effective Tax Rate (‘ETR’) 23,5% 22,1% €m -4 ETR ETR ETR ETR 22,1% 22,3% 23,8% 23,5% -6 -8 -10 (10,1) (0,6) (10,7) +0,2 -12 (11,6) +0,1 (11,5) (1,1) -14 2012 Non-current Current
Slide 26: Free Cash Flow 2013
Free Cash Flow 2013 €m 80 72,5 (9,2) 70 (4,3) (7,8) 60 (4,9) 46,3 50 40 30 20 10 0 EBITDA + Other Income Tax Working Capex - Maintenance Interest FCF Financial Result Paid Capital Paid 2013 (corrected for Movement non-cash items) 19 februari 2014 26
Slide 27: Free Cash Flow 2013 vs 2012
Free Cash Flow 2013 vs 2012 €m 60 54,1 (3,3) +1,7 (4,3) +0,3 50,1 +0,5 (2,7) 50 46,3 40 30 20 10 0 Normalized Working Current FCF Cash EBITDA & Income Tax Working Capex - Interest FCF FCF Capital (one- Other Paid Capital Maintenance Paid 2013 2012 timers) Financial Result 19 februari 2014 27
Slide 28: Capex – Depreciation
Capex – Depreciation Capex €m 2013 2012 Digitiza Remode tion 6% Belgium 6,3 7,8 ling 0,8 €m 35% Remod Mainten eling 4,2 €m France 3,4 2,3 2013: ance 29% 2012: 12,0 €m 65% 3,7 €m 12,8 €m Mainten Spain 2,1 2,5 7,8 €m ance 65% 8,3 €m Other 0,2 0,2 TOTAL 12,0 12,8 €m Depreciations, Amortizations & Provi
Slide 29: Net Financial Debt Evolution
Net Financial Debt Evolution €m 31 Dec 2013 31 Dec 2012 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 88,1 90,2 2,1 2,3% Leverage ratio*: NFD / EBITDA 1,2 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 YE 12 YE 13
Slide 30: Balance sheet
Balance sheet €m 31 Dec % of 31 Dec % of €m 31 Dec % of 31 Dec % of 2013 Total 2012 Total 2013 Total 2012 Total Intangible assets 3,0 1% 3,3 1% Equity 104,7 34% 108,7 33% Goodwill 18,8 6% 18,8 6% LT financial debt 87,9 28% 81,7 25% Land & buildings 180,3 58% 184,6 56% Provisions(1) 3,0 1% 3,8 1% Oth
Slide 31: Tax Shelters
Tax Shelters Tax Shelters 2013: € 1,1 m Tax Shelters 2012: € 1,1 m Halfweg Bingo Crimi clowns 82 days in April De welp Flying Home Morrocan gigolo’s Het vonnis Studio 100 (K3) De behandeling Brabançonne Trippel Trappel 19 februari 2014 31
Slide 32: Shareholders
Shareholders 14/02/2014 23/08/2013 # Shares % # Shares % Total Shares outstanding 5.582.654 100 % 5.856.508 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 2.581.610 46,24% 2.581.610 44,08% Treasury shares (Own shares) 303.603 5,44% 451.569 7,71% Free Fl
Slide 33: 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 buyback 2013 276.492 28,8 Sale of shares (exercise stock options) (14.000) (0,4) Cancellation (273.854) (28,5) Total shares outstanding as at 31/12/20
Slide 34: Financial Calendar
Financial Calendar Thursday 15/05/2014 Business update Q1 2014 Friday 16/05/2014 Annual Shareholders’ Meeting Monday 02/06/2014 Dividend payment Thursday 28/08/2014 Analysts and press meeting HY 2014 Friday 14/11/2014 Business update Q3 2014 19 februari 2014 34
Slide 35: Q&A Thank You
Q&A Thank You 19 februari 2014 35
Slide 36: Annexes Financial Statements
Annexes Financial Statements Results 2013 36
Slide 37: Consolidated Income Statement
Consolidated Income Statement €m 2013 2012 % Better / (Worse) Revenue 246,0 254,5 (3,3)% Cost of sales (163,9) (172,3) 4,9% Gross profit 82,1 82,2 (0,1)% Gross profit % 33,4% 32,3% Marketing & selling expenses (15,2) (16,2) 5,8% Administrative expenses (13,6) (15,1) 9,7% Other operating income and e
Slide 38: Current Income Statement
Current Income Statement €m 2013 2012 % Better / (Worse) Revenue 246,0 254,5 (3,3)% Cost of sales (163,5) (170,9) 4,4% Gross profit 82,5 83,6 (1,3)% Gross profit % 33,5% 32,8% Marketing & selling expenses (15,3) (16,0) 4,8% Administrative expenses (13,2) (14,3) 7,7% Other operating income & expenses
Slide 39: Consolidated Balance Sheet (1)
Consolidated Balance Sheet (1) €m 31/12/2013 31/12/2012 % Better / (Worse) Intangible assets 3,0 3,3 (9,0)% Goodwill 18,8 18,8 0,0% Property, plant & equipment 206,9 214,4 (3,5)% Investment property 12,0 11,5 5,3% Deferred tax assets 1,1 0,7 49,2% Other receivables 13,4 13,2 1,9% Other financial ass
Slide 40: Consolidated Balance Sheet (2)
Consolidated Balance Sheet (2) €m 31/12/2013 31/12/2012 % Better / (Worse) Capital & Share premium 20,1 20,1 0,0% Consolidated reserves 86,1 89,8 (4,0)% Translation differences (1,6) (1,2) (33,1)% Equity attributable to equity holders of the parents 104,7 108,7 (3,7)% Non-controlling interests 0,0 0
Slide 41: Cash Flow Statement
Cash Flow Statement €m 31/12/2013 31/12/2012 Better / (Worse) Cash flows from operating activities Profit before tax 49,1 45,8 3,3 Adjustments for: Depreciation, amortization & provisions 19,9 20,6 (0,7) Government grants (0,7) (0,8) 0,1 Gains / losses on sale of PPE & financial assets (0,9) (0,0) (
Slide 42: Free Cash Flow
Free Cash Flow €m 31/12/2013 31/12/2012 Better / (Worse) Cash Flow before WC movements & tax paid 72,5 70,8 1,7 Income taxes paid (9,2) (9,6) 0,4 Working capital (4,3) 3,3 (7,6) Capital exp – maintenance (7,8) (8,3) 0,5 Interest paid (4,9) (2,1) (2,8) Free cash flow 46,3 54,1 (7,8) Capital exp - dig