Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — FY2022 Earnings Presentation
57 slides from Kinepolis Group Nv's earnings presentation, Feb 16, 2023
Slide 1: Kinepolis Group Results 2022 Analyst Meeting
Kinepolis Group Results 2022 Analyst Meeting February 16, 2023 KINEPOLIS GROUP
Slide 2: Business review 2022
Business review 2022 CEO, Mr. Eddy Duquenne KINEPOLIS GROUP y
Slide 3: 2022 business highlights
❑ 72,7% of 2019 attendance in 2022 (+70,7% vs 2021), resulting in 90,6% of 2019 revenue ▪ Q1 still impacted by restrictive measures and closures ▪ Film calendar continues to be impacted (less Hollywood releases in 2022) ▪ 2023 will still be a transition year in terms of content ❑ Sales per visitor r
Slide 4: Strategic pillars and 2022 achievements
❑ Strategic pillars ▪ Best Marketer ▪ Best Cinema Operator ▪ Best Real Estate Manager ❑ Opening Kinepolis Metz Amphithéâtre (FR) ❑ Acquisition of cinemas in Barcelona, Marbella (ES) and Amnéville (FR) ❑ Roll-out of Kinepolis concepts in Canada and US ▪ Premiere Seats (CA) ▪ Laser ULTRA (CA, US) ▪ VI
Slide 5: Kinepolis Metz Amphithéâtre
Kinepolis Metz Amphithéâtre 5
Slide 6: Kinepolis Mataró and La Cañada
Kinepolis Mataró (Barcelona) Kinepolis La Cañada (Marbella) 6
Slide 7: Gaumont Amnéville (FR)
Gaumont Amnéville (FR) 7
Slide 8: Dividend 2022
❑ 2022: ▪ Based on Net Income: € 27,5 m ▪ # Dividend eligible shares: 26 967 801* ▪ € 0,26* gross dividend per share * Calculation based on number of treasury shares as at 13/02/2023 ❑ Due to the impact of the Covid-19 pandemic, there has been decided not to distribute a dividend for 2019-2021 8
Slide 9: Market complexes and screens by country
11 3 Market Complexes in Ownership Countries Complexes *** Screens *** Share # %Visitors Belgium 11 138 0% 10 98% France 16 +2 176 +20 4% 11 80% Canada 38 -2 312 -13 14% 4 1% Spain 10 +2 157 +20 7% 3 33% The Netherlands 20 147 13% 13 68% United States 10 164 0,4% 7 71% Luxembourg 3 22 83% 1 67% Swit
Slide 10: Key figures YE 2022
€m YE 2022 YE 2021 % Better / -Worse YE 2019 Revenue 499,9 266,4 87,7% 551,5 Visitors (‘000) 29 323 17 181 70,7% 40 341 EBITDA 150,2 72,7 106,8% 172,3 EBITDA margin € 5,12/Vis 30,1% € 4,23/Vis 27,3% 278 bps € 4,27/Vis 31,3% EBITDAL 114,0 38,5 196,0% 142,7 EBITDAL margin € 3,89/Vis 22,8% € 2,24/Vis 1
Slide 11: Key figures including adjusted measures
€m YE 2022 YE 2021 % Better / -Worse YE 2019 Revenue 499,9 266,4 87,7% 551,5 Visitors (‘000) 29 323 17 181 70,7% 40 341 EBITDA 150,2 72,7 106,8% 172,3 Adjusted EBITDA 151,0 72,3 108,9% 174,1 Adjusted EBITDA margin € 5,15/Vis 30,2% € 4,21/Vis 27,1% 307 bps € 4,32/Vis 31,6% EBITDAL 114,0 38,5 196,0% 1
Slide 12: ESG highlights
Customer experience excellence Wellbeing & development Green building & infrastructure of employees • CSI: 424 K surveys completed in 2022 (+35% • PSI: 81% response rate (+5% vs. 2021) vs. 2021); partial implementation in Canada • Carbon footprint measured since 2021 but (full roll-out in 2023) • Re
Slide 13: Cinema closures and restrictions timeline 2021-2022
2021 2022 JAN FEB MAR APR MAY JUN JUL AUG SEP oct Nov DEC JAN FEB SPAIN partially open FRANCE ‘SWITZERLAND ‘THE NETHERLANDS BELGIUM LUXEMBURG UNITED STATES Landmark Chae: : CANADA partially open partially open + _ for MOVIE LOVERS - + 20Cnemaeclosecin Ontaria LKINEPOUIS'
Slide 14: Visitors by country
Visitors (000's) YE 2022 % of Tot YE 2021 % of Tot % ∆ YoY Belgium 5 800 19,8% 3 209 18,7% 80,7% France 5 117 17,5% 3 224 18,8% 58,7% Canada 7 553 25,8% 3 597 20,9% 110,0% Spain 3 617 12,3% 2 519 14,7% 43,6% The Netherlands 3 205 10,9% 1 957 11,4% 63,8% United States 3 298 11,2% 2 198 12,8% 50,0% Lu
Slide 15: Revenue by country
Luxembourg 3,0% Switzerland Switzerland Poland Luxembourg Poland USA 0,7% 3,2% USA 1,0% 9,9% Belgium 10,8% 28,7% Belgium 28,5% The Netherlands The Netherlands 11,6% 12,1% € 499,9m € 266,4m Spain 8,3% France France Spain 9,9% 14,5% 13,6% Canada Canada 24,6% 19,8% YE 2022 YE 2021 15
Slide 16: Revenue by activity
Brightfish 1,5% Brightfish Real Estate Film Distribution Real Estate 2,4% Film Distribution 2,3% 1,0% 3,4% 0,8% B2B * B2B * 12,0% 9,0% € 499,9m € 266,4m Box Office Box Office 53,6% 52,2% In-theatre Sales In-theatre Sales 30,8% 31,0% YE 2022 YE 2021 * Including Cinema Screen Advertising * Including C
Slide 17: Top 5 movies 2022 and 2021
Top 5 Movies 2022 3D Visitors (000's) Top 5 Movies 2021 3D Visitors (000's) 1. Top Gun: Maverick 2 133 1. Spider-Man: No Way Home ✓ 1 352 2. Avatar: The Way of Water ✓ 1 599 2. No Time to Die ✓ 1 193 3. Minions: The Rise of Gru ✓ 1 410 3. Dune (2021) ✓ 704 4. Jurassic World: Dominion ✓ 1 194 4. Fast
Slide 18: Film calendar 2023 Q1
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Slide 19: Film calendar 2023 Q2
Q2 NO HARD FEELINGS
Slide 20: Film calendar 2023 Q3
Q3 ee THE NUN 2 THE EQUALIZER 3 NEXT GOAL WINS Taika Waititi KINEPOLIS"
Slide 21: Film calendar 2023 Q4
EXORCIST SEQUEL TROLLS EXPENDABLES MIGRATION GHOSTBUSTERS 3 4 SEQUEL
Slide 22: Financial Review
SSS Financial Review CFO, Mr. Jeroen Mouton KINEPOLIS GROUP
Slide 23: Revenue and EBITDAL highlights
❑ Revenue of € 499,9 million with 29,3 million visitors ❑ 90,6% of revenue 2019 ❑ 72,7% of visitors 2019 ❑ Revenue up by 87,7% with 70,7% more visitors ❑ Increase Box Office (+82,6%) ❑ Increase In-theatre Sales (+89,4%) ❑ Increase B2B (+150,8%) ❑ Increase Sales and Events (+168,3%) ❑ Increase Screen
Slide 24: Net financial debt evolution
❑ NFD excl. lease liabilities decreased from € 474,5 million per 31/12/2021 to € 423,5 million per 31/12/2022 or € -50,9 million, mainly due to: ▪ € +70,1 m free cash flow, of which: ▪ € +105,8 m from operations and payment of lease liabilities ▪ € -16,3 m interests paid ▪ € -13,9 m income taxes pai
Slide 25: Revenue by country
Revenue €m YE 2022 % of Tot YE 2021 % of Tot % ∆ YoY % ∆ Y Vis YE 2019 Belgium 142,3 28,5% 76,4 28,7% 86,3% 80,7% 167,0 France 67,9 13,6% 38,7 14,5% 75,5% 58,7% 81,7 Canada 122,8 24,6% 52,8 19,8% 132,4% 110,0% 137,7 Spain 41,4 8,3% 26,3 9,9% 57,6% 43,6% 61,4 The Netherlands 57,9 11,6% 32,4 12,1% 78,
Slide 26: Box Office
52,2% OF REVENUE €m Box Office Box office* / Visitor 10,00 € 275 +7,0% 9,50 € 250 9,00 € 8,90 225 200 8,50 € 8,32 + 82,6% 175 8,00 € 7,55 7,58 150 7,32 260,9 7,50 € 125 100 7,00 € 142,9 75 6,50 € 50 6,00 € 25 5,50 € 0 2021 2022 5,00 € 2018 2019 2020 2021 2022 -14,4% compared to 2019 * Box Office rev
Slide 27: In-theatre Sales
31% OF REVENUE In-theatre Sales ITS* / Visitor €m 6,00 € +13,0% 175 5,20 5,50 € 150 5,00 € 4,60 4,50 € 125 + 89,4% 3,86 3,81 4,00 € 3,67 100 3,50 € 155,2 75 3,00 € 50 2,50 € 82,0 2,00 € 25 1,50 € 0 1,00 € 2021 2022 2018 2019 2020 2021 2022 -0,4% compared to 2019 * Excl. ITS Delivery sales 27
Slide 28: Sales & Events and Screen Advertising
12% OF REVENUE €m Sales & Events (9,9%) €m Screen Advertising (2,1%) 50 11 45 10 40 9 8 35 + 168,3% 7 +91,3% 30 10,4 49,8 6 25 5 20 4 15 3 5,5 10 18,6 2 5 1 0 0 YE 2021 YE 2022 YE 2021 YE 2022 +3,4% compared to 2019 -18,2% compared to 2019 * Excluding Brightfish 28
Slide 29: Real Estate revenue
2,3% OF REVENUE €m 12 10 +26,3% 8 9,0 11,4 6 4 2 0 YE 2021 YE 2022 -17,7% compared to 2019 29
Slide 30: Brightfish revenue
1,5% OF REVENUE €m 8 7,4 7 +16,3% 6,4 6 3,9 3,3 -42,7% compared to 2019 5 • Screen Advertising: -36,8% 4 • Sales & Events: -48,7% 3 2 2,5 4,1 1 0 YE 2021 YE 2022 Screen Advertising Sales & Events 30
Slide 31: Film Distribution revenue
1% OF REVENUE €m 5 4 +127,5% 3 4,8 2 2,1 1 0 YE 2021 YE 2022 +49,7% compared to 2019 # releases 20 24 31
Slide 32: Operating costs
€m YE 2022 YE 2021 % Better / -Worse YE 2019 Marketing and selling expenses -23,5 -14,3 -64,5% -27,9 Administrative expenses -28,1 -22,4 -25,7% -30,3 Other operating income / cost 5,1 23,7 -78,3% 1,6 Operating Costs -46,5 -12,9 -259,7% -56,6 32
Slide 33: EBITDA and EBITDAL by country
EBITDA - €m YE 2022 % of Total YE 2021 % of Total % Better / -Worse % ∆ Y Vis Belgium 37,9 25,3% 9,4 12,9% 305,5% 80,7% France 25,5 17,0% 19,0 26,2% 33,9% 58,7% Canada 33,1 22,0% 16,5 22,7% 100,5% 110,0% Spain 11,7 7,8% 7,8 10,7% 50,5% 43,6% The Netherlands 21,5 14,3% 11,6 15,9% 85,9% 63,8% United S
Slide 34: Depreciation, amortisation and provisions
€m YE 2022 YE 2021 % Better / -Worse Depreciation, amortisation and provisions -53,6 -52,0 -3,1% Depreciations on right-of-use assets -28,7 -27,2 -5,4% Total depreciation, amortization and provisions -82,3 -79,2 -3,9% €m 0 -10 -20 -30 -40 -50 -60 -70 -80 -79,2 -1,5 -1,6 -82,3 -90 YE 2021 Right-of-Us
Slide 35: Financial result
€m YE 2022 YE 2021 % Better / -Worse Interest expense -15,23 -15,41 1,2% Financial charges IFRS 16 -10,37 -10,32 -0,4% FX -0,08 0,12 -165,4% Other (CNC, bank charges,...) -4,61 -2,75 -68,0% Financial (Cost) / Income -30,29 -28,36 -6,8% €m 0 -5 -10 -15 -20 -25 0,18 -30 -28,36 -0,05 -2,06 -30,29 -35 Y
Slide 36: Taxes and result
€m YE 2022 YE 2021 % Better / -Worse Result before taxes 37,7 -34,9 208,0% Taxes -10,2 9,4 -208,1% Result 27,5 -25,5 208,0% Effective Tax Rate ('ETR') 27,0% 26,9% 2 bps €m 15 9,4 10 ETR 5 26,9% 0 ETR -5 27% -10 -18,0 -0,8 -10,2 -0,8 -15 YE 2021 Higher pre-tax result Tax-exempt grants Other YE 2022 3
Slide 37: From EBITDAL to result YE 2022
€m 160 36,3 150,2 140 114,0 120 100 80 68,0 60 -82,3 40 -30,3 27,5 20 -10,2 0 EBITDAL Costs related to EBITDA Depr, Amort, Prov EBIT Financial result Taxes Result YE 2022 lease contracts YE 2022 YE 2022 YE 2022 37
Slide 38: Capital expenditure
€m YE 2022 YE 2021 YE 2019 €m €m Belgium 5,6YE 2022 2,2 YE 2021 14,4 16 14,1 13,2 France Belgium 2,4 5,6 0,9 2,2 6,7 14 Canada France 5,6 2,4 1,8 0,9 11,5 12 10,0 SpainCanada 1,7 0,3 10 5,6 1,8 2,7 8,3 The Netherlands Spain 1,7 1,7 0,7 0,3 5,3 8 United TheStates Netherlands 3,7 1,7 0,3 0,7 0,0 6 4,3
Slide 39: Free cash flow YE 2022
€m 160 142,2 7,7 140 120 -13,9 -13,2 100 -16,3 80 70,1 60 -36,4 40 20 0 Cash flow before WC Income Working Capex - Interest Payment of lease FCF YE 2022 movements and Tax Taxes Capital Maintenance Paid liabilities paid 39
Slide 40: Free cash flow by period
H1 2022 Q3 2022 Q4 2022 H2 2022 YE 2022 YE 2019 OCF after lease payments 45 387 23 311 37 066 60 377 105 765 140 949 Working capital -10 709 -13 522 31 980 18 458 7 749 8 776 Income taxes paid -563 -9 666 -3 651 -13 317 -13 880 -25 718 Capital exp – maintenance -3 842 -4 892 -4 463 -9 356 -13 197 -2
Slide 41: Net financial debt and leverage
€m YE 2022 YE 2021 Better/-Worse NFD Evolution Net Financial Debt (NFD) excl. lease liabilities 423,5 474,5 50,9 10,7% Net Financial Debt (NFD) incl. lease liabilities 793,9 865,0 71,1 8,2% Leverage ratio*: NFD / EBITDA 5,28 11,90 Leverage ratio*: NFD excl. lease liabilities / EBITDAL 3,72 12,32 €m
Slide 42: Debt maturity profile
€ 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) Bullet loan 60.000.000 100.000.000 80.000.000 Priv Plac. 10Y 75.000.000 65.000.000 50.000.000 Bond 8Y 25.000.000 Priv Plac. 10Y (Jan) 15.878.000 34.600.000 0
Slide 43: Balance sheet overview
€m 31/12/2022 % of Total 31/12/2021 % of Total €m 31/12/2022 % of Total 31/12/2021 % of Total Intangible assets 11,4 1,0% 11,1 0,9% Share capital & share premium 20,1 1,7% 20,1 1,7% Goodwill 174,9 15,0% 169,5 14,2% Consolidated reserves 130,0 11,1% 100,7 8,4% Property, plant & equipment 482,5 41,3%
Slide 44: Shares and shareholders
13/02/2023 25/10/2022 # 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 397 396 1,45% 397 396 1,45% Free Float 13 875
Slide 45: Financial calendar
Thursday 27/04/2023 Business update Q1 2023 Wednesday 10/05/2023 Annual Shareholders’ Meeting Kinepolis Group Thursday 17/08/2023 Semestrial results 2023 Press & Analyst Meeting Thursday 26/10/2023 Business update Q3 2023 45
Slide 46: Q&A Thank you
Q&A Thank you KINEPOLIS GROUP y
Slide 47: Annexes Financial Statements
Annexes 7 Financial Statements ults 2022 KINEPOLIS GROUP
Slide 48: Expansion projects Spain and The Netherlands
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 0,4 mio Q4 2022 The Netherlands Wolff Bioscopen 9 46
Slide 49: Expansion projects France, Canada and USA
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 (greenfield) 1 10 0,5 mio Q3 2018 Servon (greenfield)
Slide 50: Adjustments
€m YE 2022 YE 2021 YE 2019 EBITDA -0,7 0,4 -1,8 Depreciations and impairment losses -0,9 -1,2 -1,0 Provisions 0,1 0,0 -0,1 Income tax expense 0,4 0,2 1,3 Net impact of adjustments -1,1 -0,6 -1,6 50
Slide 51: Consolidated income statement
€m YE 2022 YE 2021 % Better / -Worse Revenue 499,9 266,4 87,7% Cost of sales -385,5 -260,0 -48,2% Gross result 114,4 6,4 1 696,4% Gross result % 22,9% 2,4% Marketing and selling expenses -23,5 -14,3 -64,5% Administrative expenses -28,1 -22,4 -25,7% Other operating income and expenses 5,1 23,7 -78,3%
Slide 52: Assets
€m 31/12/2022 31/12/2021 Evolution Intangible assets 11,4 11,1 2,5% Goodwill 174,9 169,5 3,2% Property, plant & equipment 482,5 498,1 -3,1% Right-of-use assets 333,5 353,3 -5,6% Investment property 15,9 17,4 -8,8% Deferred tax assets 21,1 23,8 -11,2% Non-current tax assets 1,7 0,0 0,0% Derivative fi
Slide 53: Equity and liabilities
€m 31/12/2022 31/12/2021 Evolution Share capital & share premium 20,1 20,1 0,0% Consolidated reserves 130,0 100,7 29,1% Translation reserve 7,6 -0,1 14 153,1% Equity attributable to the owners of the Company 157,7 120,7 30,6% Non-controlling interests -0,09 -0,08 15,6% Total equity 157,6 120,6 30,6%
Slide 54: Cash flow statement
€m YE 2022 YE 2021 Better / -Worse Result before tax 37,7 -34,9 72,6 Adjustments for: Depreciation, amortisation & provisions 82,3 79,2 3,1 Government grants -0,7 -1,4 0,7 Adjustments to right-of-use assets and lease liabilities -0,3 0,0 -0,3 Gains / losses on sale of PPE & financial assets -0,4 -0,
Slide 55: Free cash flow
€m YE 2022 YE 2021 Better / -Worse Cash Flow before WC movements & tax paid 142,2 57,1 85,1 Income taxes (paid) / received -13,9 4,5 -18,3 Working capital 7,7 27,4 -19,6 Capital exp – maintenance -13,2 -2,8 -10,4 Interest (paid) / received -16,3 -15,5 -0,8 Payment of lease liabilities (capital porti
Slide 56: Glossary of alternative performance measures
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 used to
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