Slide 1: Kinepolis Group Results 2014 Analyst & Press Meeting
Kinepolis Group Results 2014 Analyst & Press Meeting February 24, 2015
Slide 2: Business Review 2014
Business Review 2014 CEO, Mr Eddy Duquenne 2
Slide 3: Key financials
Key financials €m 2014 2013 Better / (Worse) Visitors (‘000) 19.691 18.232 8,0% Revenue 262,6 246,0 6,8% EBITDA 71,3 75,0 (4,9)% REBITDA € 3,77/Vis 74,3 € 4,09/Vis 74,6 (0,5)% REBITDA Margin 28,3% 30,3% EBIT 50,7 55,1 (8,0)% REBIT 53,2 55,0 (3,2)% REBIT Margin 20,3% 22,4% Profit 35,2 37,5 (6,3)% Cur
Slide 4: Highlights (1)
Highlights (1) Revenue up by 6,8% Visitors +8,0% Increase Box Office revenue (+6,8%) Increase In-theatre Sales (+7,7%) Increase Sales and Events (+2,3%) Decrease Screen Advertising revenue (-14,3%) Increase Real Estate revenue (+10,4%) Gross profit Increased operational efficiency
Slide 5: Highlights (2)
Highlights (2) REBITDA -0,5% Increased visitor numbers Improved operational efficiency Impact expansion Lower results from screen advertising and film distribution REBITDA margin at 28,3% (30,3% 2013) Current profit at € 35,6 m (€ 37,4 m 2013) Free cash flow of € 51,8 m (€ 5,5 m high
Slide 6: Major events
Major events 2014 results reflect Strategic Pillars set out in 2008 Best Marketer Best Cinema Operator Best Property Manager Further development and implementation of Strategy in 2014 First steps in expansion strategy H1 2014: Acquisition 2 cinemas in Spain (Alicante and Madrid) H2 2
Slide 7: Planned Greenfields
Planned Greenfields Country City # Screens Est. Visitors / Year The Netherlands Utrecht* 14 1,25 mio Dordrecht 6 0,3 mio Breda 10 0,45 mio France Brétigny-sur-Orge 10 0,5 mio * Following the opening of the new multiplex in Utrecht, the former complexes will be closed 25 februari 2015 7
Slide 8: Kinepolis complexes today
Kinepolis complexes today KINEPOLIS GROUP Complexes Screens Belgium * 12 148 France 7 87 Spain 5 91 The Netherlands 9 46 Poland * 1 18 9 Switzerland 1 8 12 Total 35 398 Market Share: Belgium: to be announced** France: 3,2% 5 Spain: 4,5% The Netherlands: 5,0% 370 digital screens (100% digitised**
Slide 9: Revenue by country
Revenue by country Switzerland The Netherlands Poland Switzerland 4% 1% Poland 2% Spain Spain 13% 12% € 262,6 m France € 246,0 m 24% France Belgium Belgium 23% 59% 62% 2013 2014 25 februari 2015 9
Slide 10: Revenue by activity
Revenue by activity Film Brightfish Distribution 4% Film Concessions 2% Brightfish Distribution 4% 4% 1% Concessions 4% B2B* B2B* 15% 16% Box Office Box Office € 262,6 m 54% € 246,0 m 54% In-theatre In-theatre Sales Sales 21% 21% 2013 2014 * Including Cinema Screen Advertising 25 februari 2015 10
Slide 11: Visitors & Movies
Visitors & Movies Visitors (000’s) 2014 % of Tot 2013 % of Tot % Δ YoY Belgium 8.967 45,6% 9.185 50,4% (2,4)% France 6.190 31,4% 5.805 31,8% 6,6% Spain 3.631 18,4% 3.099 17,0% 17,2% The Netherlands 778 4,0% 0 0,0% - Switzerland 125 0,6% 143 0,8% (12,6)% Total 19.691 100% 18.232 100% 8,0% Top 5 Movie
Slide 12: Ratios
Ratios REBITDA Margin ROCE Gearing 35% 30% 1,4 30,3% 1,2 1,13 29,1% 25% 30% 27,8% 28,3% 28,3% 21,8% 22,9% 20,9% 19,8% 1,0 20% 0,83 0,84 16% 25% 0,8 15% 0,57 0,6 20% 0,43 10% 0,4 15% 5% 0,2 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 25 februari 2015 12
Slide 13: Net Financial Debt Evolution
Net Financial Debt Evolution €m 31 Dec 2014 31 Dec 2013 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 118,6 88,1 (30,5) (34,6)% Leverage ratio*: NFD / EBITDA 1,7 1,2 €m € 140 3,5 3,50 X € 120 3,0 € 100 2,5 € 80 2,0 € 60 1,5 € 40 1,0 € 20 0,5 €0 0,0 YE 08 YE 09 YE 10 YE 11 YE 12 YE 13 YE 1
Slide 14: Dividend payment
Dividend payment Dividend Dividend/Share 0,8 € Based on Net Current Income: 0,69 € € 35,6 m 0,7 € 0,64 € 0,6 € +8,2% Payout ratio: 50 % 0,47 € 0,5 € # Dividend eligible shares: 0,4 € 0,36 € 25.811.606* 0,3 € 0,25 € 0,18 € € 0,69* per share 0,2 € 0,13 € 0,13 € 0,13 € 0,07 € 0,1 € 11th yea
Slide 15: Line-up 2015
Line-up 2015 2D 3D Major sequels • Insurgent (Q1) • Avengers: Age of Ultron (Q2) • Furious 7 (Q2) • Minions (Q3) • The Maze Runner: The Scorch Trials (Q3) • Star Wars: Episode VII – The Force Awakens (Q4) • The Fantastic Four (Q3) • The Hunger Games: Mockingjay – Part 2 (Q4) • Spectre (Q4) New title
Slide 16: Financial Review 2014
Financial Review 2014 CFO, Mr Nicolas De Clercq 16
Slide 17: Revenue by country
Revenue by country €m 2014 % of Tot 2013 % of Tot % Δ YoY Belgium 155,2 59,1% 152,5 61,9% 1,8% France 60,5 23,0% 58,7 23,9% 3,1% Spain 33,0 12,6% 30,4 12,4% 8,5% The Netherlands 9,9 3,8% 0,0 0,0% - Switzerland & Poland 4,0 1,5% 4,4 1,8% (8,1)% Total 262,6 100% 246,0 100% 6,8% 17 25 februari 2015
Slide 18: Evolution Box Office & ITS
Evolution Box Office & ITS Box office* / visitor ITS / visitor 8,50 € 3,20 € 8,00 € -1,1% -0,3% 3,00 € 2,85 2,84 7,50 € 7,23 7,15 7,01 7,07 2,80 € 6,82 2,68 7,00 € 2,60 € 2,5 6,50 € 2,37 2,40 € 6,00 € 2,20 € 5,50 € 5,00 € 2,00 € 4,50 € 1,80 € 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 * Box O
Slide 19: Revenue by Activity (1)
Revenue by Activity (1) €m Cinema Revenue €m Sales & Events* €m Screen Advertising * 240 40 8,0 220 +25,5% 7,5 +0,4% 35 +16,7% 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 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Visitors 21,3 21,3 19,8 18,2 19
Slide 20: Revenue by Activity (2)
Revenue by Activity (2) €m Real Estate @ flat FX €m Film Distribution 10,8 6,0 9,8 +11,9% 5,0 8,8 +58,8% 7,8 4,0 6,8 3,0 5,8 4,8 2,0 3,8 1,0 2,8 1,8 0,0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 # 46 31 34 31 38 releases 25 februari 2015 20
Slide 21: Revenue by activity
Revenue by activity -0,3% €m 330 +6,8% +7,7% +2,3% -14,3% +46,7% +11,2% +x,x% +10,4% +6,8% 280 262,6 246,0 +0,7 (1,1) +1,6 +1,3 +0,9 +0,2 +4,0 230 +9,0 180 130 Business line Cinema 80 2013 Box In-theatre Sales & Screen Film Brightfish Real Other & FX 2014 Office Sales Events Advertising Distribution
Slide 22: Operating Costs
Operating Costs €m 2014 2013 % Better / (Worse) Marketing & Selling Expenses (16,1) (15,2) (5,4)% Administrative Expenses (15,6) (13,6) (14,3)% Other Operating Income/(Costs) 0,5 1,8 (74,2)% Total Operating Costs (31,2) (27,0) (15,3)% Non-Current (1,3) 0,4 Current Operating Costs (29,8) (27,4) (8,6)
Slide 23: Non-Current items
Non-Current items €m 2014 2013 Impacts Expansion costs (0,7) Gain on sale land Poland 0,9 Transformation expenses (2,0) (0,5) EBITDA Loss on disposal property, plant and equipment (0,0) (0,1) Other costs (0,2) EBITDA (3,0) 0,4 Write-down disposed of fixed assets (0,4) (0,2) Write-down assets under c
Slide 24: REBITDA by Country
REBITDA by Country REBITDA €m 2014 % of Total 2013 % of Total % Better/(Worse) Belgium 41,6 56,0% 44,3 59,4% (6,2)% France 22,2 29,9% 21,7 29,0% 2,5% Spain 7,0 9,5% 7,1 9,6% (1,4)% The Netherlands 2,2 3,0% 0,0 0,0% - Switzerland & Poland 1,2 1,6% 1,5 2,0% (19,3)% TOTAL 74,3 100% 74,6 100% (0,5)% 201
Slide 25: REBITDA Margin
REBITDA Margin REBITDA € 3,12 € 3,37 € 3,74 € 4,09 € 3,77 /Visitor 38% 25.000 21.320 21.261 36% 19.799 19.691 18.232 20.000 34% 32% 15.000 30,3% 30% 29,1% 28,3% 28,3% 27,8% 10.000 28% 26% 5.000 24% 22% 0 2010 2011 2012 2013 2014 Rebitda Margin Visitors ('000) 25 februari 2015 25
Slide 26: Financial Result
Financial Result €m 2014 2013 % Better/(Worse) Interest Expense (4,3) (4,8) 11,0% Other (CNC, Tax Shelters, Derivatives, FX) (0,0) (1,2) 98,7% Financial (Cost) / Income (4,3) (6,0) 28,4% €m -3 -3,5 -4 -4,5 (0,3) (4,3) -5 -5,5 +1,4 +0,1 -6 (6,0) +0,5 -6,5 2013 Interest Write-down Fair value adj. Othe
Slide 27: Taxes
Taxes €m 2014 2013 % Better /(Worse) Profit before taxes 46,4 49,1 (5,5)% Taxes (11,2) (11,5) 2,8% Profit 35,2 37,5 (6,3)% Effective Tax Rate (‘ETR’) 24,2% 23,5% €m 0 ETR ETR ETR ETR 23,5% 23,8% 25,2% 24,2% -2 -4 -6 -8 -10 -12 (11,6) (0,3) (11,2) (11,5) (0,1) +0,5 (0,4) (0,3) +0,1 (12,0) +0,8 -14 20
Slide 28: Free Cash Flow 2014
Free Cash Flow 2014 €m 80 69,7 (11,3) 70 +5,8 (8,1) 60 (4,3) 51,8 50 40 30 20 10 0 EBITDA + Other Income Tax Working Capex - Maintenance Interest FCF Financial Result Paid Capital Paid 2014 (corrected for Movement non-cash items) 25 februari 2015 28
Slide 29: Free Cash Flow 2014 vs 2013
Free Cash Flow 2014 vs 2013 €m 60 55 +8,0 (0,3) +0,6 51,8 50 +2,1 48,4 (2,8) 46,3 (2,1) 45 40 35 30 25 20 Normalized Working Current FCF EBITDA Income Tax Working Capex - Interest FCF FCF Capital (one- Paid Capital Maintenance Paid 2014 2013 timers) 25 februari 2015 29
Slide 30: Investments
Investments Maintenance 19% €m 2014 2013 8,1 €m Belgium 10,4 6,3 Expansion 60% 2014: France 2,7 3,4 26,1 €m 43,2 €m Remodeling 21% Spain 3,2 2,1 9,0 €m The Netherlands 0,7 0,0 Other 0,1 0,2 Maintenance & Remodeling 17,1 12,0 Expansion 26,1 Remodeling TOTAL 43,2 12,0 35% 4,2 €m 2013: Maintenance 65%
Slide 31: Depreciation, Amortization, Provisions
Depreciation, Amortization, Provisions €m 0 -5 -10 -15 -20 (19,9) +0,3 (19,6) (1,4) (21,0) +0,4 (20,6) -25 2013 Non-current Current Normal Current Non-current 2014 2013 2013 diff's 2014 2014 25 februari 2015 31
Slide 32: Net Financial Debt Evolution
Net Financial Debt Evolution €m 31 Dec 2014 31 Dec 2013 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 118,6 88,1 (30,5) (34,6)% Leverage ratio*: NFD / EBITDA 1,7 1,2 €m € 140 3,5 3,50 X € 120 3,0 € 100 2,5 € 80 2,0 € 60 1,5 € 40 1,0 € 20 0,5 €0 0,0 YE 08 YE 09 YE 10 YE 11 YE 12 YE 13 YE 1
Slide 33: Balance sheet
Balance sheet €m 31 Dec % of 31 Dec % of €m 31 Dec % of 31 Dec % of 2014 Total 2013 Total 2014 Total 2013 Total Intangible assets 4,0 1% 3,0 1% Equity 104,7 30% 104,7 34% Goodwill 36,1 10% 18,8 6% LT financial debt 91,5 26% 87,9 28% Land & buildings 197,1 57% 180,3 59% Provisions(1) 2,5 1% 3,0 1% Ot
Slide 34: Shareholders
Shareholders 23/02/2015 1/07/2014 # Shares % # Shares % Total shares outstanding 27.365.197 100 % 27.913.270 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 12.908.050 47,17% 12.908.050 46,24% Treasury shares (Own shares) 1.553.591 5,68% 1.518.015 5,44%
Slide 35: Share Buyback Program
Share Buyback Program # shares €m Total shares outstanding as at 31/12/2013 27.913.270 Treasury shares (own shares) as at 31/12/2013 1.502.615 8,8 Share buyback until 23/02/2015 629.049 19,6 Sale of shares (exercise stock options) (30.000) (0,1) Cancellation (548.073) (19,6) Total shares outstanding
Slide 36: Financial Calendar
Financial Calendar Wednesday 13/05/2015 Business update Q1 2015 Wednesday 13/05/2015 Annual Shareholders’ Meeting Thursday 21/05/2015 Dividend payment Thursday 27/08/2015 Analyst and press meeting HY 2015 Tuesday 17/11/2015 Business update Q3 2015 25 februari 2015 36
Slide 37: Q&A Thank You
Q&A Thank You 25 februari 2015 37
Slide 38: Annexes Financial Statements
Annexes Financial Statements Results 2014 38
Slide 39: Consolidated Income Statement
Consolidated Income Statement €m 2014 2013 % Better / (Worse) Revenue 262,6 246,0 6,8% Cost of sales (180,8) (163,9) (10,3)% Gross profit 81,8 82,1 (0,3)% Gross profit % 31,2% 33,4% Marketing & selling expenses (16,1) (15,2) (5,4)% Administrative expenses (15,6) (13,6) (14,3)% Other operating income
Slide 40: Consolidated Balance Sheet (1)
Consolidated Balance Sheet (1) €m 31/12/2014 31/12/2013 % Better / (Worse) Intangible assets 4,0 3,0 32,6% Goodwill 36,1 18,8 92,5% Property, plant & equipment 215,4 206,9 4,1% Investment property 32,6 12,0 170,6% Deferred tax assets 1,3 1,1 17,5% Other receivables 12,7 13,4 (5,5)% Other financial a
Slide 41: Consolidated Balance Sheet (2)
Consolidated Balance Sheet (2) €m 31/12/2014 31/12/2013 % Better / (Worse) Capital & share premium 20,1 20,1 0,0% Consolidated reserves 86,3 86,1 0,2% Translation differences (1,7) (1,6) (6,1)% Equity attributable to equity holders of the parents 104,7 104,7 0,1% Non-controlling interests 0,0 0,0 0,
Slide 42: Cash Flow Statement
Cash Flow Statement €m 31/12/2014 31/12/2013 Better / (Worse) Cash flows from operating activities Profit before tax 46,4 49,1 (2,7) Adjustments for: Depreciation, amortization & provisions 20,6 19,9 0,7 Government grants (0,6) (0,7) 0,1 Gains / losses on sale of PPE & financial assets 0,0 (0,9) 0,9
Slide 43: Free Cash Flow
Free Cash Flow €m 31/12/2014 31/12/2013 Better / (Worse) Cash Flow before WC movements & tax paid 69,7 72,5 (2,8) Income taxes paid (11,3) (9,2) (2,1) Working capital 5,8 (4,3) 10,1 Capital exp – maintenance (8,1) (7,8) (0,3) Interest paid (4,3) (4,9) 0,6 Free cash flow 51,8 46,3 5,5 Capital exp - d