Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — H1 2017 Earnings Presentation
52 slides from Kinepolis Group Nv's earnings presentation, Aug 24, 2017
Slide 1: Kinepolis Group Results H1 2017
Kinepolis Group Results H1 2017 Press & Analyst Meeting August 24, 2017
Slide 2: Slide 2
Slide 3: Business review H1 2017
Business review H1 2017 CEO, Mr. Eddy Duquenne
Slide 4: Key Financials
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 5: Revenue up by 7,9%, REBITDA up by 11,2%
highlights Revenue up by 7,9% Visitors (+4,8%) Increase Box Office (+7,5%) Increase In‐theatre Sales (+13,4%) Increase B2B (+5,8%) Increase Sales and Events (+5,6%) Increase Screen Advertising (+6,6%) Decrease Brightfish (‐9,9%) Decrease Film Distribution (‐26,7%) Increase Real Estate (+16
Slide 6: Revenue +7,9% with 4,8% more visitors and REBITDA +11,2%
highlights Revenue +7,9% with 4,8% more visitors and REBITDA +11,2% REBITDA margin at 27,5% (26,7% H1 2016) Current depreciation, amortization and provisions: € 14,8 m (€ 14,5 m H1 2016) Current profit at € 16,4 m (€ 14,0 m H1 2016) Free cash flow of € 8,6 m (€ 1,2 m lower) NFD at € 195,0 m (€
Slide 7: H1 2017 results reflect Strategic Pillars set out in 2008
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 8: Kinepolis complexes today
kinepolis complexes today Complexes in Ownership Countries Complexes Screens # % Visitors Belgium 11 ‐1 138 ‐11 10 98% France 11 128 9 96% Spain 6 99 2 48% The Netherlands 15 104 7 64% Poland * 1 18 1 n/a Switzerland 1 8 1 100% Luxembourg 3 22 1 64% Total 48 ‐1 517 ‐11 31 83% 15 11 3 Market Share:
Slide 9: 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 Netherlands Wolff Bioscopen 9 46 1,6 mio Q3 2014 Acq. Building Enschede (Wolff) Q
Slide 10: 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 11: 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 11
Slide 12: 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 13: Visitors
visitors Visitors (000’s) H1 2017 % of Tot H1 2016 % of Tot % Δ YoY Belgium 3.955 33,6% 3.967 35,3% ‐0,3% France 3.637 30,9% 3.494 31,1% 4,1% Spain 2.064 17,5% 1.998 17,8% 3,3% The Netherlands 1.522 12,9% 1.167 10,4% 30,4% Luxembourg 536 4,6% 540 4,8% ‐0,7% Switzerland 61 0,5% 65 0,6% ‐6,2% Total 11
Slide 14: Movies: Top 5 H1 2017 vs H1 2016
movies Top 5 Movies H1 2017 3D Visitors (000’s) Top 5 Movies H1 2016 3D Visitors (000’s) Beauty and the Beast ✓ 756 1. The Revenant 595 Fast & Furious 8 698 2. The Jungle Book ✓ 586 Fifty Shades Darker 575 3. Zootopia ✓ 542 Pirates of the Caribbean: Salazar’s ✓ 495 4. Deadpool 513 Revenge 5. Star Wa
Slide 15: 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 16: 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 € 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 REBIT
Slide 17: Line-up H2 2017
Line-up H2 2017 2D 3D Major sequels • Kingsman: The Golden Circle (Q4) • Cars 3 (Q3) • Thor: Ragnarok (Q4) • Despicable Me 3 (Q3) • Spider‐Man: Homecoming (Q3) • War for the Planet of the Apes (Q3) • Star Wars: Episode VIII (Q4) • Justice League (Q4) • Transformers: The Last Knight (Q3) • Paddington
Slide 18: Financial Review H1 2017
Financial Review H1 2017 CFO, Mr. Nicolas De Clercq
Slide 19: 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 20: 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 21: 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 21
Slide 22: 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 22
Slide 23: 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 23
Slide 24: 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 24
Slide 25: 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 25
Slide 26: Revenue by activity
Revenue by activity €m 180 13,4% 5,6% 5,6% -26,7% 16,4% 6,6% -9,9% 7,5% 160,1 160 148,3 4,5 0,9 0,2 ‐0,4 ‐0,6 1,0 140 6,3 +% 120 100 80 60 40 20 Business line Cinema 0 H1 2016 Box In‐theatre Sales & Screen Brightfish Film Real H1 2017 Office Sales Events Advertising Distribution Estate 26
Slide 27: 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 28: Non-current items
Non-Current items €m H1 2017 H1 2016 Dismissal fees ‐0,5 ‐0,5 Legal fees ‐0,4 ‐0,1 Expansion costs ‐0,0 ‐0,5 Gain/‐Loss on disposal PPE ‐0,1 ‐0,1 Other ‐0,1 ‐ Launch costs 0,0 ‐ EBITDA ‐1,1 ‐1,3 Depreciation ‐ ‐ Provision dismissal fees 0,1 0,0 Provisions 0,1 0,0 Income tax expense 0,3 0,4 Net impac
Slide 29: 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 30: 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 31: REBITDA & REBITDAR
Rebitda & REBITDAR 38,5% 39,5% * ** Belgium 39,5% 40,4% 34,0% 35,1% * France 34,3% 35,6% 26,9% 36,0% * Spain 25,6% 35,8% 18,6% 25,3% * The Netherlands 24,1% 28,5% 22,8% 26,3% * Luxembourg 29,7% 33,6% 30,5% Switz. & Poland 40,5% 26,7% 29,5% * Total 27,5% 30,4% H1 2017 Impact rent H1 2017 H1 2016 Impa
Slide 32: 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 32
Slide 33: 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 34: 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 35: 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 36: 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 36
Slide 37: 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 38: 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) 38
Slide 39: 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 40: 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 41: 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 42: Shareholders
shareholders 23/08/2017 10/05/2017 # Shares % # Shares % Total shares outstanding 27.365.197 100% 27.365.197 100% Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis, Pentascoop and Mr. Joost Bert 13.254.590 48,44% 13.254.590 48,44% Treasury shares (Own shares) 132.346 0,48% 132.346
Slide 43: Financial calendar
Financial calendar Thursday 16/11/2017 Business update Q3 2017 Thursday 22/02/2018 Annual results 2017 Press & analyst meeting Wednesday 09/05/2018 General Meeting Kinepolis Group 43
Slide 44: Q&A Thank you
Q&A Thank you KINEPOLIS GROUP | KINEPOLIS”
Slide 45: Annexes: Financial Statements
Annexes Financial Statements Results H1 2017
Slide 46: Consolidated income statement
Consolidated income statement €m H1 2017 H1 2016 % Better / ‐Worse Revenue 160,1 148,3 7,9% Cost of sales ‐113,5 ‐106,3 ‐6,8% Gross profit 46,5 42,0 10,9% Gross profit % 29,1% 28,3% Marketing & selling expenses ‐8,7 ‐7,7 ‐12,3% Administrative expenses ‐10,1 ‐10,8 6,8% Other operating income and expe
Slide 47: Consolidated balance sheet
Consolidated balance sheet €m 30/06/2017 31/12/2016 % Better / ‐Worse Intangible assets 6,3 5,9 7,4% Goodwill 53,3 53,3 0,0% Property, plant & equipment 319,6 321,5 ‐0,6% Investment property 17,7 31,0 ‐42,9% Deferred tax assets 1,0 0,9 11,4% Other receivables 11,8 11,6 2,0% Total non‐current assets
Slide 48: Consolidated balance sheet
Consolidated balance sheet €m 30/06/2017 31/12/2016 % Better / ‐Worse Capital & share premium 20,1 20,1 0,0% Consolidated reserves 123,5 130,9 ‐5,6% Translation differences ‐0,8 ‐1,1 27,9% Equity attributable to equity holders of the parents 142,8 149,9 ‐4,7% Non‐controlling interests 0,0 0,0 Total
Slide 49: Cash flow statement
Cash flow statement €m H1 2017 H1 2016 Better / ‐Worse Profit before tax 24,1 19,7 4,4 Adjustments for: Result from discontinuing operations 0,0 0,1 ‐0,1 Depreciation, amortization & provisions 14,5 14,2 0,3 Government grants ‐0,5 ‐0,5 0,0 Gains / losses on sale of PPE & financial assets 0,0 0,1 ‐0,
Slide 50: Free cash flow
Free cash flow €m H1 2017 H1 2016 Better / ‐Worse Cash Flow before WC movements & tax paid 42,2 37,1 5,1 Income taxes paid ‐9,2 ‐6,4 ‐2,8 Working capital ‐12,7 ‐10,3 ‐2,4 Capital exp – maintenance ‐4,8 ‐4,2 ‐0,5 Interest paid ‐6,9 ‐6,4 ‐0,5 Free cash flow 8,6 9,8 ‐1,2 Capital Exp ‐ Digitalization &
Slide 51: Slide 51
Slide 52: Kinepolis logo