Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — H1 2023 Earnings Presentation
50 slides from Kinepolis Group Nv's earnings presentation, Aug 17, 2023
Slide 1: Kinepolis Group Results H1 2023
Kinepolis Group Results H1 2023 Kinepolis Group Results H1 2023 Audit Committee - Board of Directors [MMM DD, August 14,YYYY] 2023 Analyst Meeting August 17, 2023
Slide 2: Business review H1 2023
Business review H1 2023 CEO, Mr. Eddy Duquenne
Slide 3: Executive Summary
EXECUTIVE SUMMARY Record high revenue: +19,8% compared to H1 2019 (+25,1% vs H1 2022) with -5,3% visitors versus 2019 Impact of Entrepreneurship & STAR plans, combined with the further execution of the Kinepolis strategy Faster increase of revenue due to record high sales per visitor, driven b
Slide 4: Highlights
highlights Strategic pillars Best Marketer Best Cinema Operator Best Real Estate Manager Acquisition and successful integration of cinema in Belfort (FR) Expansion of partnership with IMAX, including 6 brand new IMAX theatres (Kirchberg (LU), Madrid (ES), Nîmes (FR), Liège (BE), Landmark
Slide 5: Acquisition Belfort (FR)
oa — ra c 6 = ov ira) Acquisition
Slide 6: Roll-out of Premiere Seats (CA) and VIP Seats (US)
Roll-out of Premiere Seats (CA) and VIP Seats (US) 8
Slide 7: ESG
ESG Green & resilient buildings & infrastructure → Towards Net Zero emissions by 2050 Roll-out of intelligent building management systems Appointment of international Efficiency Engineer to optimize energy management of technical installations 171 laser upgrades planned for 2023 (of which 104
Slide 8: Kinepolis Group
kinepolis group 11 3 Market Complexes in Ownership Countries Complexes *** Screens *** Share # %Visitors Belgium 11 138 0% 10 98% France 17 +1 190 +14 4% 11 79% Canada 38 312 13% 3 1% Spain 10 157 6% 3 30% The Netherlands 20 147 11% 13 66% United States 10 164 0% 7 72% Luxembourg 3 22 84% 1 65% Swit
Slide 9: Key financials
€m Revenue Visitors (‘000) EBITDA Adjusted EBITDA Adjusted EBITDA margin EBITDAL Adjusted EBITDAL Adjusted EBITDAL margin EBT Adjusted EBIT Adjusted EBIT margin Result Adjusted Result Result per share (in €) Free Cash Flow H1 2023 285,3 16 783 82,0 82,0 28,75 ERIS) 64,3 64,2 225% 43,1 43,1 15,1% 20,
Slide 10: Visitors
visitors Visitors (000's) H1 2023 % of Tot H1 2022 % of Tot % ∆ YoY Belgium 2 871 17,1% 2 629 19,1% 9,2% France 3 238 19,3% 2 418 17,7% 33,9% Canada 4 418 26,3% 3 618 26,5% 22,1% Spain 2 126 12,7% 1 582 11,6% 34,4% The Netherlands 1 658 9,9% 1 474 10,8% 12,4% United States 2 037 12,1% 1 608 11,8% 26
Slide 11: Revenue by country
revenue by country Luxembourg 3,2% Switzerland Luxembourg Switzerland Poland 2,9% Poland USA 0,8% USA 0,9% 10,7% 10,4% Belgium 27,5% Belgium 25,5% The Netherlands The Netherlands 11,7% 11,2% € 285,3m € 228,0m Spain Spain France 9,0% France 7,9% 13,8% 15,2% Canada Canada 24,3% 24,9% H1 2023 H1 2022 1
Slide 12: Revenue by activity
revenue by activity Brightfish 1,4% Brightfish Real Estate Film Distribution Real Estate 0,9% Film Distribution 2,3% 0,7% 2,6% 0,7% B2B * B2B * 9,8% 11,8% € 285,3m € 228,0m Box Office Box Office 52,9% In-theatre Sales 53,4% In-theatre Sales 32,3% 31,1% H1 2023 H1 2022 * Including Cinema Screen Adver
Slide 13: Movies
Movies Top 5 Movies 2023 3D Visitors (000's) Top 5 Movies 2022 3D Visitors (000's) 1. Super Mario Bros (2023) 2 132 1. Top Gun: Maverick 1 279 2. Avatar 2 1 728 2. Doctor Strange in the Multiverse of Madness 1 093 3. Guardians of the Galaxy Vol. 3 991 3. Spider-Man: No Way Home 1 049 4. Sp
Slide 14: Line-up 2023
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Slide 15: Line-up 2023
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Slide 16: Financial Review H1 2023
Financial Review H1 2023 CFO, Mr. Jeroen Mouton
Slide 17: Financial highlights
financial highlights Revenue of € 285,3 million with 16,8 million visitors versus H1 2019 119,8% of revenue 94,7% of visitors Revenue up by 25,1% with 22,8% more visitors Increase Box Office (+26,5%) Increase In-theatre Sales (+30,1%) Increase B2B (+3,8%) Decrease Sales and Events (-
Slide 18: Financial highlights
FINANCIAL HIGHLIGHTS NFD incl. lease liabilities decreased with € 10,6 million, from € 793,9 million per 31/12/2022 to € 783,3 million per 30/06/2023 NFD excl. lease liabilities decreased with € 0,9 million, from € 423,5 million per 31/12/2022 to € 422,6 million per 30/06/2023, mainly due to:
Slide 19: Revenue by country
Revenue by country Revenue €m H1 2023 % of Tot H1 2022 % of Tot % ∆ YoY % ∆ Y Vis Belgium 72,7 25,5% 62,8 27,5% 15,7% 9,2% France 43,5 15,2% 31,4 13,8% 38,6% 33,9% Canada 69,4 24,3% 56,7 24,9% 22,3% 22,1% Spain 25,7 9,0% 18,1 7,9% 42,5% 34,4% The Netherlands 31,8 11,2% 26,6 11,7% 19,5% 12,4% United
Slide 20: Evolution Box Office
Evolution Box OFFICE 53,4% OF REVENUE Box Office Box office* / Visitor €m 10,00 € 180 +3,0% 9,50 € 9,08 160 8,82 9,00 € 140 8,50 € + 26,5% 7,89 120 8,00 € 7,67 7,43 100 7,50 € 80 120,5 7,00 € 6,50 € 60 152,4 6,00 € 40 5,50 € 20 5,00 € 0 H1 H1 H1 H1 H1 H1 2022 H1 2023 2019 2020 2021 2022 2023 +15,8%
Slide 21: Evolution ITS
EVOLUTION ITS 32,3% OF REVENUE In-theatre Sales ITS* / Visitor €m 6,00 € +6,5% 5,42 100 5,50 € 5,09 90 5,00 € 80 + 30,1% 4,50 € 4,23 70 3,98 4,00 € 3,81 60 70,9 3,50 € 50 92,2 3,00 € 40 2,50 € 30 20 2,00 € 10 1,50 € 0 1,00 € H1 2022 H1 2023 H1 H1 H1 H1 H1 2019 2020 2021 2022 2023 +36,8% compared to
Slide 22: B2B revenue
B2B revenuE* 9,8% OF REVENUE €m Sales & Events (8,1%) €m Screen Advertising (1,7%) 25 -0,3% 5 20 +29,2% 23,2 23,1 4 15 3 3,8 4,9 10 2 5 1 0 0 H1 2022 H1 2023 H1 2022 H1 2023 +10,9% compared to H1 2019 -6,3% compared to H1 2019 * Excluding Brightfish 25
Slide 23: Real estate
Real estate 2,3% OF REVENUE €m 7 +10,2% 6 5 6,0 6,7 4 3 2 1 0 H1 2022 H1 2023 -3,6% compared to H1 2019 26
Slide 24: Brightfish
Brightfish 1,4% OF REVENUE €m 4,0 4,0 3,5 3,0 +92,9% 2,0 -17,8% compared to H1 2019 2,5 • Sales & Events: -8,4% 2,1 • Screen Advertising: -25,8% 2,0 0,6 1,5 1,0 1,9 1,4 0,5 0,0 H1 2022 H1 2023 Screen Advertising Sales & Events 27
Slide 25: Film distribution
Film distribution 0,7% OF REVENUE €m 2,0 +31,7% 1,5 1,6 2,1 1,0 0,5 0,0 H1 2022 H1 2023 +53,1% compared to H1 2019 # releases 8 9 28
Slide 26: Operating costs
operating costs €m H1 2023 H1 2022 % Better / -Worse H1 2019 Marketing and selling expenses -12,6 -9,4 -34,5% -11,7 Administrative expenses -14,0 -13,2 -6,1% -14,2 Other operating income / cost 0,6 3,6 -84,3% 0,6 Operating Costs -26,1 -19,0 -37,3% -25,3 29
Slide 27: EBITDA(L) by country 2023-2022
Ebitda(L) by country 2023-2022 30
Slide 28: Depreciation, amortisation, provisions
Depreciation, amortisation, provisions €m H1 2023 H1 2022 % Better / -Worse Depreciation, amortisation and provisions -24,9 -26,3 5,3% Depreciations on right-of-use assets -14,0 -14,1 0,6% Total depreciation, amortisation and provisions -38,9 -40,4 3,7% €m 0 -5 -10 -15 -20 -25 -30 -35 0,1 1,4 -40 -4
Slide 29: Financial result
Financial result €m H1 2023 H1 2022 % Better / -Worse Interest expense -7,71 -7,45 -3,5% Financial charges IFRS 16 -4,78 -5,21 8,4% FX -0,07 -0,66 89,6% Other (CNC, bank charges,...) -2,75 -2,24 -22,6% Financial (Cost) / Income -15,31 -15,57 1,7% €m 1 -1 -3 -5 -7 -9 -11 -13 0,44 0,09 -15 -15,57 -0,2
Slide 30: Taxes
taxes €m H1 2023 H1 2022 % Better / -Worse Result before taxes 27,8 12,3 125,9% - Current tax -6,5 -4,5 44,4% - Deferred tax -0,5 1,3 -138,5% Taxes -7,0 -3,2 -116,7% Result 20,8 9,1 129,1% Effective Tax Rate ('ETR') 25,2% 26,3% -107 bps €m 0,0 ETR ETR -1,0 26,3% 25,2% -2,0 -3,0 -3,2 -4,0 -5,0 -6,0 0
Slide 31: EBITDA to net result
Ebitda to net result €m 90 82,0 80 70 64,3 -17,7 60 50 43,1 40 -21,2 30 -15,3 20,8 20 -7,0 10 0 EBITDA Costs related to EBITDAL Depr, Amort, Prov, EBIT Financial result Taxes Result H1 2023 lease contracts H1 2023 Costs related to H1 2023 H1 2023 lease contracts 34
Slide 32: Investments
investments €m 12,0 10,2 10,0 8,0 7,5 6,0 5,5 3,8 4,0 2,7 2,0 1,2 0,0 MAINTENANCE INTERNAL EXPANSION EXTERNAL EXPANSION H1 2023 H1 2022 * Mainly Belfort acquisition & investments in improvements for 2022 M&A 35
Slide 33: Cash flow statement
CASH FLOW STATEMENT €m H1 2023 H1 2022 Better / -Worse Result before tax 27,8 12,3 15,5 Adjustments for: Depreciation, amortisation & provisions 38,9 40,4 -1,5 Government grants -0,4 -0,4 0,0 Adjustments to right-of-use assets and lease liabilities -0,1 0,0 -0,1 Financial result & share based paymen
Slide 34: Free cash flow
FREE CASH FLOW €m 90 79,0 80 70 -5,9 60 50 -19,8 40 -10,2 -3,4 30 22,3 20 -17,4 10 0 Cash flow before WC Income Working Capex - Interest Payment of lease FCF H1 2023 movements and Tax Taxes Capital Maintenance Paid liabilities paid 37
Slide 35: Free cash flow
Free cash flow €m H1 2023 H1 2022 Better / Worse H1 2019 OCF after lease payments 61,6 45,4 16,2 54,2 Working capital -19,8 -10,7 -9,1 -3,7 Income taxes paid -5,9 -0,6 -5,3 -6,4 Capital exp – maintenance -10,2 -3,8 -6,4 -12,4 Interest paid -3,4 -4,6 1,2 -6,6 Free cash flow 22,3 25,7 -3,4 25,0 Capita
Slide 36: Net financial debt evolution
Net financial debt evolution €m -300 -310 -320 -330 79,0 -340 -350 -5,9 -360 -370 -19,9 -380 -390 -23,2 -400 -3,6 -1,0 -410 -420 -17,4 -423,5 -0,1 -422,6 -430 NFD excl. lease EBITDA + Income Working Investments Interest & charges Payment of Treasury FX effect NFD excl. lease liabilities other financ
Slide 37: Maturity profile financial debt
Maturity profile financial debt ** € 250.000.000 Priv. Plac. 7,5Y 225.000.000 225.000.000 200.000.000 175.000.000 150.000.000 RCF * 120.000.000 125.000.000 Priv. Plac. 8Y (Dec) 100.000.000 Bullet loan 60.000.000 80.000.000 Priv Plac. 10Y 75.000.000 65.000.000 50.000.000 25.000.000 Priv Plac. 10Y (Ja
Slide 38: Balance sheet
Balance sheet €m 30/06/2023 % of Total 31/12/2022 % of Total €m 30/06/2023 % of Total 31/12/2022 % of Total Intangible assets 11,7 1,1% 11,4 1,0% Share capital & share premium 20,1 1,8% 20,1 1,7% Goodwill 176,4 15,8% 174,9 15,0% Consolidated reserves 142,2 12,7% 130,0 11,1% Property, plant & equipme
Slide 39: Shareholders
shareholders 17/08/2023 25/04/2023 # Shares % # Shares % Total shares outstanding 27 365 197 100% 27 365 197 100% Reference Shareholders & Free Float # Shares % # Shares % Kinehold Bis, Pentascoop and Mr. Joost Bert 13 092 268 47,84% 13 092 268 47,84% Treasury shares 489 753 1,79% 388 396 1,42% Fr
Slide 40: Financial calendar
Financial calendar Thursday 26/10/2023 Business update Q3 2023 Thursday 22/02/2024 Annual results 2023 Press & Analyst Meeting Thursday 25/04/2024 Business update Q1 2024 Wednesday 08/05/2024 Annual Shareholders’ Meeting Kinepolis Group 43
Slide 41: Annexes Financial Statements
Annexes Financial Statements Results H1 2023
Slide 42: Realised acquisitions and greenfields (2014 – 2023)
REALISED ACQUISITIONS AND greenfields (2014 – 2023) Country Project Name # 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 El Punt 2 38 1,6 mio Q1 2019 Mataró Parc 1 12 0,6 mio Q4 2022 La Cañada 1 8 0
Slide 43: Realised acquisitions and greenfields (2014 – 2023)
REALISED ACQUISITIONS AND greenfields (2014 – 2023) Country Project Name # Complexes # Screens Est. Visitors / Year Realized France Bourgoin 1 12 0,6 mio Q3 2015 Rouen 1 14 0,4 mio Q1 2016 Fenouillet (greenfield) 1 8 0,4 mio Q4 2016 Metz (Palace) (greenfield) 1 7 0,2 mio Q3 2018 Brétigny-sur-Orge (g
Slide 44: Consolidated income statement
Consolidated income statement €m H1 2023 H1 2022 % Better / -Worse Revenue 285,3 228,0 25,1% Cost of sales -216,1 -181,2 -19,3% Gross result 69,1 46,8 47,6% Gross result % 24,2% 20,5% Marketing and selling expenses -12,6 -9,4 -34,5% Administrative expenses -14,0 -13,2 -6,1% Other operating income an
Slide 45: Adjustments
ADJUSTMENTS €k H1 2023 H1 2022 EBITDA 37,6 50,9 Income tax expense 6,0 -13,1 Net impact of adjustments 43,6 37,8 50
Slide 46: Adjusted income statement
INTERNAL ADJUSTED income statement €m H1 2023 H1 2022 % Better / -Worse Revenue 285,3 228,0 25,1% Cost of Sales -216,1 -181,2 -19,3% Gross result 69,2 46,8 47,7% Gross result % 24,2% 20,5% Marketing and selling expenses -12,6 -9,4 -34,5% Administrative expenses -14,0 -13,1 -6,9% Other operating inco
Slide 47: Consolidated balance sheet
Consolidated balance sheet €m 30/06/2023 31/12/2022 Evolution Intangible assets 11,7 11,4 2,8% Goodwill 176,4 174,9 0,9% Property, plant & equipment 473,2 482,5 -1,9% Right-of-use assets 322,8 333,5 -3,2% Investment property 15,4 15,9 -2,9% Deferred tax assets 20,2 21,1 -4,7% Non-current tax assets
Slide 48: Consolidated balance sheet
Consolidated balance sheet €m 30/06/2023 31/12/2022 Evolution Share capital & share premium 20,1 20,1 0,0% Consolidated reserves 142,2 130,0 9,4% Translation reserve 5,7 7,6 -25,0% Equity attributable to the owners of the Company 168,0 157,7 6,5% Non-controlling interests 0,01 -0,09 -111,8% Total eq
Slide 49: Glossary
Glossary The glossary below contains Alternative Performance Measures (APMs) that are aimed to improve the transparency of the financial information. For the full glossary, we refer to the corporate website of Kinepolis. Adjusted operating result: Operating result after elimination adjustments; is
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