Slide 1: Kinepolis Group Results Half 1 2016
Kinepolis Group Results Half 12016 25 August 2016 KINEPOLIS GROUP
Slide 2: Business review H1 2016
Business review H1 2016 CEO, Mr. Eddy Duquenne KINEPOLIS GROUP y
Slide 3: H1 2016 key figures
€m H1 2016* H1 2015 Better / - Worse Visitors (‘000) 11.231 9.799 14,6% Revenue 148,3 130,2 13,9% EBITDA 38,3 34,8 10,0% REBITDA 39,6 35,8 10,4% REBITDA Margin € 3,52 /Vis 26,7% € 3,66 /Vis 27,5% -84 bps EBIT 23,8 23,6 0,9% REBIT 25,1 24,7 1,6% REBIT Margin 16,9% 19,0% -206 bps Profit 13,2 14,4 -8,2
Slide 4: Revenue up by 13,9%, REBITDA +10,4%
Revenue up by 13,9% Visitors (+14,6%) Increase Box Office (+15,7%) Increase In-theatre Sales (+16,4%) Increase B2B (+12,7%) • Increase Sales and Events (+11,7%) • Increase Screen Advertising (+17,4%) Decrease Brightfish (-29,4%) Increase Film Distribution (+81,8%) Increase Real Estate (+9,8%
Slide 5: REBITDA margin at 26,7%
REBITDA margin at 26,7% (27,5% H1 2015) Depreciation, amortization and provisions: € 14,5 m (€ 11,2 m H1 2015) Current profit at € 14,0 m (€ 15,1 m H1 2015) Free cash flow of € 9,8 m (€ 0,4 m higher) NFD at € 213,6 m (€ 51,6 m higher) Revenue growth and further cost efficiency of existing busi
Slide 6: H1 2016 results reflect Strategic Pillars set out in 2008
H1 2016 results reflect Strategic Pillars set out in 2008 Best Marketer Best Cinema Operator Best Property Manager Further development and implementation of strategy in 2016 Opening Kinepolis Dordrecht, NL Further steps in expansion strategy January 2016: Acquisition of Rouen (France) (€
Slide 7: Complexes, screens and market share by country
Countries Complexes Screens Complexes in Ownership # % Visitors Belgium * 12 148 11 98% France 10 +1 120 +14 8 96% Spain 5 91 2 53% The Netherlands 15 +2 94 +16 6 60% Poland * 1 18 1 n/a Switzerland 1 8 1 100% Luxembourg 3 22 1 64% 15 Total 47 +3 501 +30 30 83% 12 3 Market Share: Belgium: to be an
Slide 8: Expansion realized since 2014
Country City # Complexes # Screens Est. Visitors / Year Realized Spain Alicante 1 16 1,0 mio Q2 2014 Alcobendas - Madrid 1 12 The Netherlands Wolff Bioscopen 9 46 1,6 mio Q3 2014 Acq. Building Enschede (Wolff) Q2 2015 France Bourgoin 1 12 0,6 mio Q3 2015 Kinepolis Dordrecht, NL NL, LUX, FR Utopolis
Slide 9: Planned greenfield openings
Country City # Screens Est. Visitors / Year Estimated opening The Netherlands Utrecht** 14 1,2 mio Q1 2017 France Brétigny-sur-Orge 10 0,5 mio Q1 2018 Fenouillet 8 0,4 mio Q1 2017 Spain Nevada-Granada 8 0,4 mio Q4 2016 Total 40 2,5 mio * The listed planned greenfields are greenfields for which an ir
Slide 10: Revenue by country
Luxembourg Switzerland 4,8 % Poland 1,5% The Netherlands 10,3% The Netherlands Switzerland 7,4% Poland 1,8% Spain 13,9% Spain 13,2% € 148,3 m Belgium € 130,2 m Belgium 54,1% 47,3% France 22,8% France 22,9% H1 2015 H1 2016 10
Slide 11: Revenue by business line
Film Brightfish Distribution Concessions 2,8% 1,6% 4,0% Brightfish Film Concessions 4,5% B2B* Distribution 4,1% 12,8% 1,0% B2B* 13,0% Box Box € 148,3 m Office € 130,2 m Office 55,1% 56,0% In-theatre Sales 22,3% In-theatre Sales 22,8% H1 2015 H1 2016 * Including Cinema Screen Advertising 11
Slide 12: Visitors by country
Visitors (000’s) H1 2016 % of Tot H1 2015 % of Tot % Δ YoY Belgium 3.967 35,3% 4.048 41,3% -2,0% France 3.494 31,1% 3.015 30,8% 15,9% Spain 1.998 17,8% 1.933 19,7% 3,4% The Netherlands 1.167 10,4% 734 7,5% 59,0% Luxembourg 540 4,8% 0 0,0% 100,0% Switzerland 65 0,6% 69 0,7% -5,8% Total 11.231 100% 9.
Slide 13: Top 5 movies H1 2016
Top 5 Movies H1 2016 3D Visitors (000’s) Top 5 Movies H1 2015 3D Visitors (000’s) 1. The Revenant 595 1. Fast and Furious 7 700 2. The Jungle Book ✓ 586 2. Fifty Shades of Grey 635 3. Zootopia ✓ 542 3. Jurassic World ✓ 586 4. Deadpool 513 4. Avengers: Age of Ultron ✓ 494 5. Star Wars: Episode VII –
Slide 14: REBITDA margin, ROCE and gearing
REBITDA Margin ROCE Gearing 35% 30% 2,00 1,85 1,80 27,9% 30% 27,5% 26,7% 25% 22,9% 1,60 27,4% 26,8% 21,8% 1,32 20,9% 21,5% 1,40 25% 19,3% 1,13 20% 1,20 0,84 1,00 0,83 20% 15% 0,80 15% 0,60 10% 0,40 10% 0,20 2012 2013 2014 2015 2016 5% 0,00 H1 H1 H1* H1 H1 2012 2013 2014 2015 H1 2012 2013 2014 2015 H
Slide 15: Net Financial Debt
€m 30 June 2016 31 Dec 2015 Better/-Worse % Better/-Worse Net Financial Debt (NFD) 213,6 162,0 -51,6 -31,9% Leverage ratio*: NFD / EBITDA 2,3 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 2010 YE 2011 YE 2012 YE 2013 YE 2014 H1 2015 YE 2015 H1 2016 Net Financial Debt EBIT
Slide 16: Upcoming film slate
2D 3D Major sequels • Independence Day: Resurgence (Q3) • Ice Age: Collision Course (Q3) • Bridget Jones’s baby (Q3) • Ghostbusters (Q3) • Now you see me 2 (Q3) • Jason Bourne(Q3) • Star Trek Beyond (Q3) • Jack Reacher: Never Go Back (Q4) • Inferno (Q4) New titles • The magnificent 7 (Q3) • The Secr
Slide 17: Financial Review H1 2016
Nae Financial Review saci wae 1 2016 CFO, Mr. Nicolas De Clercq KINEPOLIS GROUP
Slide 18: Acquisition of the Belgian Utopolis cinemas
DISLOSURE IN THE CONDENSED INTERIM FINANCIAL STATEMENTS 2016 Acquisition of the Belgian Utopolis cinemas On 24 March 2016, the Belgian Competition Authority (BCA) approved the acquisition of the Belgian Utopolis cinemas by Kinepolis Group, on the condition that the complexes in Mechelen and Aarschot
Slide 19: Revenue by country
€m H1 2016 % of Tot H1 2015 % of Tot % Δ YoY % Δ Y Vis Belgium 70,2 47,3% 70,4 54,1% -0,3% -2,0% France 33,9 22,9% 29,7 22,8% 14,3% 15,9% Spain 19,6 13,2% 18,1 13,9% 8,3% 3,4% The Netherlands 15,3 10,3% 9,6 7,4% 58,5% 59,0% Luxembourg 7,1 4,8% 100,0% 100,0% Other 2,2 1,5% 2,4 1,8% -6,6% -5,8% Total
Slide 20: Box office
€m Box Office Box office* / visitor 84 83,0 10,00 € 82 9,50 € +15,7% 9,00 € 80 8,50 € 78 8,00 € +1,0% 76 7,32 7,39 7,50 € 74 7,00 € 71,7 72 6,50 € 70 6,00 € 68 5,50 € 66 5,00 € H1 2015 H1 2016 H1 2015 H1 2016 * Box Office revenue after deduction of indirect taxes, including VPF revenue 20
Slide 21: In-theatre sales
€m In-theatre Sales ITS / visitor 35 5,00 € 33,8 34 4,50 € 33 4,00 € +16,4% 32 3,50 € +1,6% 31 3,01 2,96 3,00 € 30 29,0 2,50 € 29 28 2,00 € 27 1,50 € 26 1,00 € H1 2015 H1 2016 H1 2015 H1 2016 21
Slide 22: Sales & Events and Screen Advertising
€m Sales & Events* €m Screen Advertising* 18 4 +11,7% 15,7 3,4 16 +17,4% 14,1 14 2,9 3 12 10 2 8 6 1 4 2 0 0 H1 2015 H1 2016 H1 2015 H1 2016 * Excluding Brightfish * Excluding Brightfish 26 september 2016 22
Slide 23: Real estate
€m 7 +10,4% 5,9 6 5,4 5 4 3 2 1 0 H1 2015 H1 2016 26 september 2016 23
Slide 24: Film distribution
€m 3 2,3 81,8% 2 1,3 1 0 H1 2015 H1 2016 # releases 14 19 26 september 2016 24
Slide 25: Brightfish
€m 7 5,8 6 -29,4% 5 4,1 4 3,3 3 2,0 2 2,5 1 2,1 0 H1 2015 H1 2016 Screen Events Advertising 26 september 2016 25
Slide 26: Revenue bridge H1 2015 to H1 2016
-0,3% €m +13,9% 160 +11,7% +17,4% +81,8% -29,4% +9,8% +16,4% +15,7% 148,3 140 +1,7 +0,5 +1,0 -1,7 +0,5 130,2 +4,8 120 +11,3 +% 100 80 60 40 20 Business line Cinema 0 H1 2015 Box In-theatre Sales & Screen Film Brightfish Real H1 2016 Office Sales Events Advertising Distribution Estate 26 september 20
Slide 27: Operating costs
€m H1 2016 H1 2015 % Better / -Worse Current Marketing & Selling Expenses -7,7 -6,6 -17,0% Current Administrative Expenses -10,0 -8,4 -19,6% Other Currrent Operating Income/(Costs) 0,5 0,4 16,4% Current Operating Costs -17,2 -14,5 -18,6% Non-Current Operating Costs -0,9 -0,7 -33,2% Total Operating C
Slide 28: Non-current items
€k H1 2016 H1 2015 Dismissal fees -639 -626 Legal fees -126 -286 Expansion costs -421 -87 Gain/-Loss on disposal PPE -128 -66 EBITDA -1.314 -1.065 Accelerated depr Camera / Mob Ticketing / Sound -61 Depreciation -61 Provision dismissal fees 23 10 Provisions 23 10 Income tax expense 407 362 Net impac
Slide 29: Revenue per visitor by country
7,00 € 6,00 € 5,69 5,94 5,00 € -3,6% 4,00 € 3,66 3,52 3,69 3,00 € 3,33 3,10 2,67 2,00 € 2,4 2,44 2,10 1,00 € 0,00 € H1 2015 H1 2016 Belgium* France Spain The Netherlands Luxembourg Group * Excluding corporate entities, KFD, Brightfish revenue 26 september 2016 29
Slide 30: REBITDA by country
REBITDA €m H1 2016 % of Total H1 2015 % of Total % Better/- Worse Belgium 17,4 44,1% 18,1 50,5% -3,7% France 11,6 29,4% 11,1 31,0% 4,8% Spain 5,3 13,5% 4,1 11,4% 31,4% The Netherlands 2,8 7,2% 1,8 4,9% 61,5% Luxembourg 1,6 4,1% Switzerland & Poland 0,7 1,7% 0,7 2,2% -13,5% TOTAL 39,6 100% 35,8 100,0
Slide 31: REBITDA margin by country
Belgium 38,5% 38,1% 34,6% ** France 36,9% 36,0% ** Spain 32,1% 26,3% ** Luxembourg ** The 25,2% Netherlands 28,4% Switz. 30,5% & Poland 32,6% 26,7% Total 27,5% H1 2016 H1 2015 ** REBITDAR (i.e. REBITDA excluding rent for Valencia, Plaza Mar 2 and Alcobendas in Spain, Rouen in France and complexes in
Slide 32: Depreciation, amortization and provisions
€m 0 -2 -4 -6 -8 -10 -12 -11,2 -0,1 -11,1 -1,5 -14 -1,9 -14,5 -0,0 -14,5 -16 H1 2015 Non-current Current Revaluation Normal Current Non-current H1 2016 H1 2015 H1 2015 Buildings Utopolis diff's H1 2016 H1 2016 26 september 2016 32
Slide 33: Financial result
€m H1 2016 H1 2015 % Better/-Worse Interest Expense -3,6 -3,2 -14,3% Other (CNC, Derivatives, FX) -0,5 -0,9 48,0% Financial (Cost) / Income -4,1 -4,1 -0,7% €m 0 -0,5 -1 -1,5 -2 -2,5 -3 -3,5 -4 -4,1 +0,1 -4,1 -4,5 +0,2 -0,5 +0,2 -5 H1 2015 Interest FX Change Other H1 2016 in acc. treatment Tax Shelte
Slide 34: Taxes and profit
€m H1 2016 H1 2015 % Better /-Worse Profit before taxes 19,7 19,5 0,9% Taxes -6,6 -5,2 -27,3% Profit from discontinuing operations 0,1 Profit 13,2 14,4 -8,2% Effective Tax Rate (‘ETR’) 33,4% 26,5% -690 bps €m 0,0 -1,0 -2,0 ETR ETR ETR ETR 26,5% 26,8% 33,3% 33,4 % -3,0 -4,0 -5,0 -5,2 -6,0 +0,4 -0,3 -
Slide 35: European Commission decision on Belgian tax rulings
• On 11 January 2016, The European Commission published a decision that a purported regime of Belgian tax rulings with regard to ‘Excess Profit’ should be considered as illegal state aid. On 22 March 2016, the Belgian government appealed against the European Commission’s decision before the European
Slide 36: From REBITDA to result H1 2016
€m 45 39,6 40 35 30 25,1 25 -14,5 20 -4,1 15 13,2 -7,0 10 -0,9 5 0 REBITDA H1 2016 Current REBIT H1 2016 Current Current Other Non-current Result H1 2016 Depr, financial taxes items Amort, result Prov 26 september 2016 36
Slide 37: Investments
€m €m H1 2016 H1 2015 45,0 39,0 Belgium 2,9 3,6 40,0 35,0 France 1,9 1,2 30,0 Spain 0,8 1,5 25,1 25,0 The Netherlands 1,0 0,2 20,0 Luxembourg 0,0 0 15,0 Other 0,1 0 10,0 3,0 4,2 3,5 5,0 2,5 Maintenance & Internal Expansion 6,7 6,5 - External Expansion 39,0 25,1 Maintenance Internal Expansion Externa
Slide 38: Free cash flow
€m 16 +1,8 -0,3 -1,2 14 +3,0 -2,3 12 9,3 -0,5 9,8 10 9,2 8 6 4 2 0 FCF H1 2015 Working Capital Current FCF EBITDA Income Tax Working Capex - Interest FCF (one-timers) Paid Capital Maintenance Paid H1 2016 38
Slide 39: Net financial debt bridge
€m 30 Jun 16 31 Dec 15 Better/-Worse % Better/-Worse Net Financial Debt (NFD) 213,6 162,0 -51,6 -31,9% Leverage ratio*: NFD / EBITDA 2,3 1,8 0 €m -50 -100 -6,4 -150 -10,3 -162,0 +37,1 -200 -45,7 -6,4 +0,2 +1,5 -21,5 -213,6 -250 NFD 31 Dec EBITDA + Taxes Working Investments Interest Disposal Treasury
Slide 40: Debt maturity profile
€ 120.000.000 RCF 5y 100.000.000 90.000.000 80.000.000 Priv. Plac. 7y Bond 7y 59.122.000 61.400.000 60.000.000 Priv. Plac. 10y 40.000.000 34.600.000 Exchange 8y; Term loan 20.000.000 15.878.000 5.943.000 (yearly) 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 40
Slide 41: Balance sheet
€m 30 Jun % of Total 31 Dec % of Total €m 30 Jun % of Total 31 Dec % of Total 2016 2015 2016 2015 Intangible assets 5,4 1,1% 5,1 1,0% Equity 115,6 24,1% 123,0 25,1% Goodwill 53,3 11,1% 53,3 10,9% LT financial debt 213,6 44,5% 214,0 43,6% Land & buildings 259,5 54,1% 259,5 52,9% Provisions(1) 6,8 1,4
Slide 42: Shareholders and free float
24/08/2016 10/05/2016 # 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% 169.846 0,62% Free F
Slide 43: Financial calendar
Thursday 17/11/2016 Business update Q3 2016 Thursday 16/02/2017 Annual results 2016 + press & analyst meeting Wednesday 10/05/2017 General Meeting Kinepolis Group 43
Slide 44: Thank you, Q&A
Q&A Thank you KINEPOLIS GROUP y
Slide 45: Slide 45