Slide 1: Kinepolis Group Results 2012
Kinepolis Group Results 2012 February 21, 2013 1
Slide 2: Business Review 2012
Business Review 2012 CEO, Mr Eddy Duquenne 2
Slide 3: Key Financials
Key Financials €m 2012 2011 Better / (Worse) Visitors (‘000) 19.799 21.261 (6,9)% Revenue 254,5 253,7 0,3% EBITDA 72,3 74,6 (3,1)% REBITDA € 3,74/Vis 74,0 € 3,37/Vis 71,7 3,2% REBITDA Margin 29,1% 28,3% EBIT 51,7 53,3 (3,1)% REBIT 54,0 51,2 5,5% REBIT Margin 21,2% 20,2% Net Earnings 35,7 36,5 (2,1)%
Slide 4: Highlights
Highlights Revenue up by 0,3% Visitors –6,9%, weak summer season due to Olympic Games and Spain visitor numbers under pressure In-theatre Sales again to record spend per visitor Ongoing strong growth in B2B and Events Strong growth of Screen Advertising revenue Increase Concessions reven
Slide 5: Major events
Major events 2012 results reflect Strategic Pillars set out in 2008 Best Marketeer Best Cinema Operator Best Property Manager Further development and implementation of Strategy in 2012 and 2013 Refinancing Credit facility ING Belgium, KBC Bank and BNP Paribas Fortis for € 90,0 m Bond
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: 3,6% Spain: 4,6% 297 digital screens (100% digitised***) Of which 93 screens with 3D * Operated by IT
Slide 7: Revenue by country
Revenue by country Switzerland Poland 2% Switzer- land, Poland 2% Spain 15% Spain 16% € 254,5 m € 253,7 m France Belgium Belgium 24% 59% France 56% 26% 2011 2012 7
Slide 8: Revenue by activity
Revenue by activity Film Brightfish Distribution Film Brightfish Concessions 4% 1% Distribution 1% 4% Concessions 1% 3% B2B* B2B* 15% 15% Box Office Box Office € 254,5 m 55% € 253,7 m 59% In-theatre Sales In-theatre 21% Sales 21% 2011 2012 * Including Cinema Screen Advertising 8
Slide 9: Visitors & Movies
Visitors & Movies Visitors (000’s) 2012 % of Tot 2011 % of Tot % Δ YoY Belgium 9.444 47,6% 9.891 46,5% (4,5)% France 6.328 32,0% 6.958 32,7% (9,1)% Spain 3.876 19,6% 4.247 20,0% (8,7)% Switzerland 151 0,8% 165 0,8% (8,5)% Total 19.799 100% 21.261 100% (6,9)% Top 5 Movies 2012 3D Visitors (000’s) Top
Slide 10: Real estate
Real estate €m Concessions Revenue @ flat FX 9.000 8.500 8.000 7.500 7.000 2009 2010 2011 2012 10
Slide 11: Ratios
Ratios REBITDA Margin ROCE Gearing 35% 25% 100% 21,8% 19,8% 0,83 29,1% 20% 80% 30% 28,3% 0,67 27,8% 16,0% 0,57 25,1% 15% 12,1% 60% 25% 0,43 10% 40% 20% 5% 20% 15% 0% 0% 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 11
Slide 12: Net Financial Debt Evolution
Net Financial Debt Evolution €m 31 Dec 2012 31 Dec 2011 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 90,2 76,5 (13,7) (17,9)% Leverage ratio*: NFD / EBITDA 1,2 1,0 €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 H1 11 YE 11
Slide 13: Dividend payment
Dividend payment Dividend/Share Based on Net Current Income: 2,50 € 2,36 € € 37,4 m +31,1% 2,00 € 1,80 € Payout ratio: 35 % 1,50 € 1,26 € # Dividend eligible shares: 5.544.623* 0,92 € 1,00 € 0,64 € 0,65 € 0,66 € € 2,36* per share 0,50 € 0,35 € 9th year consecutively increase 0,29 € 0,00 €
Slide 14: Line-up 2013
Line-up 2013 2D 3D Major sequels • Hunger Games: Catching Fire (H2) • The Hobbit II: The Desolation of Smaug • A Good Day to Die Hard (H1) (H2) • Fast and Furious VI (H1) • The Smurfs II (H2) • Hangover III (H1) • Despicable Me II (H2) • Mad Max IV (H2) • Monster University (H2) New titles • Django
Slide 15: Financial Review 2012
Financial Review 2012 CFO, Mr Nicolas De Clercq 15
Slide 16: Revenue by country
Revenue by country €m 2012 % of Tot 2011 % of Tot % Δ YoY Belgium 149,8 58,9% 142,7 56,2% 5,0% France 62,3 24,5% 65,7 25,9% (5,1)% Spain 37,6 14,8% 40,6 16,0% (7,4)% Switzerland & Poland 4,7 1,9% 4,7 1,9% (0,3)% Total 254,5 100% 253,7 100% 0,3% 16
Slide 17: Revenue by Business (1)
Revenue by Business (1) €m Cinema Revenue €m Sales & Events €m Screen Advertising 240 40 7,0 220 +2,3% 6,5 +11,3% 35 +28,1% 6,0 200 30 5,5 ** 180 25 5,0 160 4,5 20 140 4,0 120 15 3,5 100 10 3,0 * * * * 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 Visitors 22,0 21,3 21,3 19,8 * Excludi
Slide 18: Revenue by Business (2)
Revenue by Business (2) €m Concessions @ Flat FX €m Film Distribution 10 4,0 +7,1% -11,8% 9 3,2 8 2,4 7 1,6 6 0,8 5 4 0,0 2009 2010 2011 2012 2009 2010 2011 2012 # 43 46 31 34 releases 18
Slide 19: Revenue by activity waterfall
Revenue by activity waterfall -0,3% -0,2% 280 € m -6,2% -0,2% +4,5% +8,8% +32,6% +1,8% +0,3% 270 260 253,7 7,6 0,2 (0,3) 254,5 (9,2) 250 +1,4 +0,5 +0,7 (0,1) 240 230 220 210 Business line Cinema 200 2011 Box In-theatre B2B Screen Film Brightfish* Real Estate Other & FX 2012 Office Sales Advertising
Slide 20: Evolution Box Office & ITS
Evolution Box Office & ITS Box Office* / Visitor ITS / Visitor 8,00 € 2,80 € 2,68 7,50 € 2,60 € 2,50 7,01 7,07 7,00 € 6,82 2,37 2,40 € +7,2% 6,36 2,22 6,50 € +0,7% 2,20 € 6,00 € 2,00 € 5,50 € 1,80 € 5,00 € 4,50 1,60 € * Box €Office Revenue after deduction of direct taxes 4,00 € 1,40 € 2009 2010 2011
Slide 21: Operating Costs
Operating Costs €m 2012 2011 % Better / (Worse) Marketing & Selling Expenses (16,2) (14,9) (8,4)% Administrative Expenses (15,1) (14,9) (1,7)% Other Operating Income/(Costs) 0,7 3,5 (79,1)% Total Operating Costs (30,5) (26,3) (16,2)% Non-Current (0,9) 2,4 Transformation, Provision Gain on sale PPE G
Slide 22: Non-Current items
Non-Current items €m 2012 2011 Impacts Sale real estate (Gent) 2,9 Badwill Brightfish 0,3 Sale Opéra (Liège) (0,1) EBITDA Dismissal fees (0,5) Transformation expenses (1,2) (0,2) EBITDA (1,7) 2,9 Write-down old generation projectors (0,2) Write-down inventory 35 mm parts (0,2) Amortization Amortizat
Slide 23: REBITDA by Country
REBITDA by Country REBITDA €m 2012 % of Total 2011 % of Total % Better/(Worse) Belgium (incl. HQ) 39,4 53,2% 36,0 50,2% 9,4% France 22,3 30,1% 23,5 32,8% (5,1)% Spain 10,6 14,3% 10,6 14,8% 0,0% Switzerland & Poland 1,7 2,3% 1,6 2,2% 6,2% TOTAL 74,0 100% 71,7 100% 3,2% 2012 2011 REBITDA Margin % (on
Slide 24: REBITDA Margin Trend
REBITDA Margin Trend REBITDA € 2,64 € 3,12 € 3,37 € 3,74 /Visitor 80.000 30,0% 70.000 29,0% 29,1% 60.000 28,0% 28,3% 27,8% 50.000 27,0% 40.000 26,0% 30.000 25,0% 25,1% 20.000 24,0% 10.000 23,0% 0 22,0% 2009 2010 2011 2012 Visitors Rebitda Rebitda Margin Visitors (‘000) 21.980 21.320 21.261 19,799 RE
Slide 25: Financial Result
Financial Result €m 2012 2011 % Better/(Worse) Interest Expense (4,7) (2,5) (91,7)% Other (CNC, Tax Shelters, Derivatives, FX) (1,1) (0,7) (60,5)% Financial (Cost) / Income (5,9) (3,2) (84,9)% -2,0 €m -2,5 -3,0 -3,5 (3,2) -4,0 -4,5 -5,0 -5,5 (2,3) (0,2) -6,0 (0,2) +0,2 (0,2) (5,9) -6,5 2011 Interest
Slide 26: Taxes
Taxes €m 2012 2011 % Better /(Worse) Profit before Taxes 45,8 50,2 (8,7)% Taxes (10,1) (13,7) 26,2% Net Profit 35,7 36,5 (2,1)% Effective Tax Rate (‘ETR’) 22,1% 27,3% Recurring ETR 26% to 27% € -3 m m ETR ETR ETR ETR 27,3% 26,7% 22,3% 22,1% -5 -7 -9 -11 (10,1) (10,7) +0,6 +0,1 +0,8 -13 (12,8) +1,2 (
Slide 27: Free Cash Flow 2012
Free Cash Flow 2012 € m 80 70,8 (9,6) 70 3,3 (8,3) 60 (2,1) 54,1 50 40 30 20 10 0 EBITDA + Other Income Taxes Working Capex - Maintenance Interest FCF 2012 Financial Result Paid Capital Paid (Corrected for Movement non- cash items) 27
Slide 28: Free Cash Flow 2012 vs 2011
Free Cash Flow 2012 vs 2011 €m 70 +2,8 (0,3) 60 54,0 +0,5 (3,4) 54,1 +0,5 50 40 30 20 10 0 FCF 2011 Cash EBITDA & Other Income Tax Working Capex - Maintenance Interest FCF 2012 Financial Result Paid Capital Paid 28
Slide 29: Capex – Depreciation
Capex – Depreciation Capex €m 2012 2011 Digitization 6% 0,8 €m Digitization Belgium 7,8 7,9 24% 3,1 €m Maintenance Maintenance France 2,3 2,0 65% 2012: Remodeling 38% 2011: 8,3 €m € 12,8 m 29% 4,9 €m € 13,0 m 3,7 €m Spain 2,5 3,0 Remodeling 38% Other 0,2 0,1 5,0 €m TOTAL 12,8 13,0 €m Depreciation, A
Slide 30: Net Financial Debt Evolution
Net Financial Debt Evolution €m 31 Dec 2012 31 Dec 2011 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 90,2 76,5 (13,7) (17,9)% Leverage ratio*: NFD / EBITDA 1,2 1,0 €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 H1 11 YE 11
Slide 31: Balance sheet
Balance sheet €m 31 Dec % of 31 Dec % of €m 31 Dec % of 31 Dec % of 2012 Total 2011 Total 2012 Total 2011 Total Intangible assets 3,3 1% 3,4 1% Equity 108,7 33% 133,9 41% Goodwill 18,8 6% 18,8 6% LT financial debt 81,7 25% 38,5 12% Land & buildings 184,6 56% 192,1 59% Provisions 3,8 1% 3,5 1% Other
Slide 32: Tax Shelters
Tax Shelters Tax Shelters 2012: € 1,1 m Tax Shelters 2011: € 1,4 m Bingo Hasta La Vista 82 days in April The Loft Flying Home Broken Circle Breakdown Het vonnis Allez Eddy De behandeling K3 en de (B)Engeltjes Kamer 13 Galaxy Park II Brasserie Romantiek 32
Slide 33: Shareholders
Shareholders 20/2/2013 21/08/2012 # Shares % # Shares % Total Shares outstanding 5.856.508 100 % 6.581.355 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 2.581.610 44,08% 2.581.610 39,23 % Treasury shares (Own Shares) 311.885 5,33% 1.036.732 15,75 % Fre
Slide 34: Share Buyback Program
Share Buyback Program # shares €m Total shares outstanding as at 31/12/2011 6.581.355 Treasury shares (own shares) as at 31/12/2011 323.310 9,5 Share buyback during 2012 713.422 47,9 Cancellation during 2012 (724.847) (48,5) Total shares outstanding as at 31/12/2012 5.856.508 Treasury shares (own sh
Slide 35: Financial Calendar 2013
Financial Calendar 2013 Thursday 16/05/2013 Business update Q1 2013 Friday 17/05/2013 Annual Shareholders’ Meeting Monday 27/05/2013 Dividend Payment Thursday 29/08/2013 Analyst and Press Meeting HY 2013 Thursday 14/11/2013 Business update Q3 2013 35
Slide 36: Q&A Thank You
Q&A Thank You. 36
Slide 37: Annexes Financial Statements
Annexes Financial Statements Results 2012 37
Slide 38: Consolidated Income Statement
Consolidated Income Statement €m 2012 2011 % Better / (Worse) Revenue 254,5 253,7 0,3% Cost of sales (172,3) (174,1) 1,0% Gross profit 82,2 79,6 3,2% Gross profit % 32,3% 31,4% Marketing & selling expenses (16,2) (14,9) (8,4)% Administrative expenses (15,1) (14,9) (1,7)% Other operating income and e
Slide 39: Current Income Statement
Current Income Statement €m 2012 2011 % Better / (Worse) Revenue 254,5 253,7 0,3% Cost of sales (170,9) (173,8) 1,7% Gross profit 83,6 79,9 4,7% Gross profit % 32,8% 31,5% Marketing & selling expenses (16,0) (14,9) (7,4)% Administrative expenses (14,3) (14,6) 2,2% Other operating income & expenses 0
Slide 40: Consolidated Balance Sheet (1)
Consolidated Balance Sheet (1) €m 31/12/2012 31/12/2011 % Better / (Worse) Intangible assets 3,3 3,4 (1,5)% Goodwill 18,8 18,8 0,0% Property, plant & equipment 214,4 221,2 (3,1)% Investment property 11,5 12,8 (10,8)% Deferred tax assets 0,7 1,5 (51,9)% Other receivables 13,2 14,4 (8,5)% Other financ
Slide 41: Consolidated Balance Sheet (2)
Consolidated Balance Sheet (2) €m 31/12/2012 31/12/2011 % Better / (Worse) Capital & Share premium 20,1 20,1 0,0% Consolidated reserves 89,8 114,0 (21,3)% Translation differences (1,2) (2,0) 41,2% Equity attributable to equity holders of the parents 108,7 132,1 (17,8)% Non-controlling interests 0,0
Slide 42: Cash Flow Statement
€m Cash Flow Statement 31/12/2012 31/12/2011 Better / (Worse) Cash flows from operating activities Profit before tax 45,8 50,2 -4,4 Adjustments for: Depreciation, amortization & provisions 20,6 21,2 -0,6 Government grants (0,8) (0,8) 0 Gains / losses on sale of PPE & financial assets (0,0) (2,9) 2,9
Slide 43: Free Cash Flow
Free Cash Flow €m 31/12/2012 31/12/2011 Better / (Worse) Cash Flow before WC movements & tax paid 70,8 70,3 0,5 Income taxes paid (9,6) (12,4) 2,8 Working capital 3,3 3,6 (0,3) Capital exp – maintenance (8,3) (4,9) (3,4) Interest paid (2,1) (2,6) 0,5 Free cash flow 54,1 54,0 0,1 Capital exp - digita