Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — KBC S&M Cap Local Champions Conference (December 2022)
39 slides from Kinepolis Group Nv's conference presentation, Dec 14, 2022
Slide 1: KBC S&M Cap Local Champions Conference
KBC S&M Cap Local Champions Conference Brussels 14 December, 2022 KINEPOLIS GROUP
Slide 2: Business review YTD Q3 2022
Business review YTD Q3 2022 KINEPOLIS GROUP Ly
Slide 3: Strong recovery of operational result and free cash flow in H1 2022
Strong recovery of operational result and free cash flow in H1 2022 77,2% of 2019 attendance in H1 2022, resulting in 93,5%(1) of H1 2019 revenue and 74,3% of Q3 2019 attendance in Q3 2022, resulting in 90,1% of Q3 2019 revenue Weak summer line-up (‘Top Gun: Maverick’ most popular movie in Sep
Slide 4: Strategic pillars and Highlights H1 2022
Strategic pillars Best Marketer Best Cinema Operator Best Real Estate Manager Highlights H1 2022 Q1 still impacted by closures & restrictive measures Further roll-out of premium products in Europe, Canada and preparation for the United States 200 laser upgrades in 2022 Entrepreneur
Slide 5: Investments in a premium moviegoing experience
Investments in a premium moviegoing experience Introduction of ‘Premiere Seats’ in 10 additional Landmark cinemas (CA) Complete renovation of Landmark St. Catharines, Pen Centre (CA) Preparation to introduce ‘VIP seats’ and Laser ULTRA in USA in Q3 2022 St. Catharines, Pen Centre (CA) 5
Slide 6: Complexes in Ownership
11 3 Complexes in Ownership Countries Complexes Screens # %Visitors Belgium 11 138 10 98% France 14 156 9 79% Canada 40 325 4 1% Spain 10 +2*** 157 +20*** 3 34% The Netherlands 20 147 13 67% United States 10 164 7 71% Luxembourg 3 22 1 68% Switzerland 1 8 1 100% Poland * 1 18 1 n/a Total 110 1 135 4
Slide 7: H1 2022 key financials
€m H1 2022 H1 2021 % Better / -Worse H1 2019 Revenue 228,0 36,8 519,9% 238,1 Visitors (‘000) 13 668 2 188 524,7% 17 713 EBITDA 68,2 -7,1 1 062,2% 69,2 EBITDA margin € 4,99/Vis 29,9% € -3,24/Vis -19,3% 4 920 bps € 3,91/Vis 29,1% EBITDAL 50,4 -24,0 309,9% 55,3 EBITDAL margin € 3,68/Vis 22,1% € -10,97/
Slide 8: Quarterly results Q1 2022, Q2 2022, H1 2022
€m Q1 2022 Q2 2022 H1 2022 Q1 2019 Q2 2019 H1 2019 Revenue 94,4 133,6 228,0 115,7 122,4 238,1 Visitors (‘000) 5 936 7 732 13 668 8 820 8 893 17 713 EBITDA 20,7 47,6 68,2 33,1 36,1 69,2 EBITDA margin € 3,48/Vis 21,9% € 6,15/Vis 35,6% € 4,99/Vis 29,9% € 3,76/Vis 28,7% € 4,06/Vis 29,5% € 3,91/Vis 29,1%
Slide 9: Quarterly results corrected for one-off Covid-19 items
€m Q1 2022 Q2 2022 H1 2022 Q1 2019 Q2 2019 H1 2019 Revenue 95,4 127,2 222,6 115,7 122,4 238,1 Visitors (‘000) 5 936 7 732 13 668 8 820 8 893 17 713 EBITDA 18,6 37,9 56,5 33,1 36,1 69,2 EBITDA margin € 3,13/Vis 19,5% € 4,90/Vis 29,8% € 4,13/Vis 25,4% € 3,76/Vis 28,7% € 4,06/Vis 29,5% € 3,91/Vis 29,1%
Slide 10: Visitors by country H1 2022
Visitors (000's) H1 2022 % of Tot H1 2021 % of Tot % ∆ YoY Belgium 2 629 19,1% 230 10,5% 1 043,0% France 2 418 17,7% 368 16,8% 557,1% Canada 3 618 26,5% 231 10,6% 1 466,2% Spain 1 582 11,6% 487 22,3% 224,8% The Netherlands 1 474 10,8% 188 8,6% 684,0% United States 1 608 11,8% 579 26,5% 177,7% Luxemb
Slide 11: Take-over operation of two Spanish cinemas
Take-over operation of two Spanish cinemas (Barcelona and Marbella), effective from 3 and 7 November 2022 respectively TMS system Eikona Cinema Manager implemented in Belgium & the Netherlands (Spain and France planned for 2023) Launch CINE K in Belgium (September 2022) Launch Movie Club in
Slide 12: Visitors by country YTD Q3 2022
Visitors (000's) YTD Q3 2022 % of Tot YTD Q3 2021 % of Tot % ∆ YoY Belgium 3 816 18,1% 1 723 18,7% 121,5% France 3 559 16,9% 1 617 17,5% 120,1% Canada 5 817 27,6% 1 716 18,5% 239,0% Spain 2 578 12,2% 1 457 15,7% 77,0% The Netherlands 2 324 11,0% 1 242 13,4% 87,1% United States 2 513 11,9% 1 251 13,5
Slide 13: Film releases postponed from 2022 to 2023
Postponed from 2022 to 2023 12/22 -> 03/23 09/22 -> 04/23 12/22 -> 04/23 10/22 -> 06/23 11/22 -> 06/23 10/22 -> 07/23 12/22 -> 12/23 13
Slide 14: Upcoming film line-up
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Slide 15: Financial Review H1 2022
Vai aren Financial Review JF 1 EE Le H1 2022 KINEPOLIS GROUP
Slide 16: Revenue, EBITDAL and net financial debt evolution
Revenue of € 228,0 million with 13,7 million visitors 93,5% of revenue H1 2019, corrected for one-off Covid-19 related items 77,2% of visitors H1 2019 EBITDAL of € 50,4 million NFD excl. lease liabilities decreased from € 474,5 million per 31/12/2021 to € 450,0 million per 30/06/2022 or €
Slide 17: Cash and credit lines
YE 2021 ended with € 199,8 million cash + credit lines H1 2022 ended with € 163,2 million cash + credit lines. Difference explained by: € +25,7 m free cash flow, of which: € +45,4 m from operations and payment of lease liabilities € -10,7 m working capital € -4,6 m interests paid € -3,
Slide 18: Revenue by country
Revenue €m H1 2022 % of Tot H1 2021 % of Tot % ∆ YoY % ∆ Y Vis H1 2019 Belgium 62,8 27,5% 7,9 21,5% 696,4% 1 043,0% 70,0 France 31,4 13,8% 4,7 12,9% 561,0% 557,1% 38,2 Canada 56,7 24,9% 5,5 15,0% 925,6% 1 466,2% 63,4 Spain 18,1 7,9% 5,1 13,8% 255,1% 224,8% 27,5 The Netherlands 26,6 11,7% 3,4 9,2% 68
Slide 19: Box Office revenue
52,9% OF REVENUE €m Box Office Box office* / Visitor 9,00 € 8,82 125 +11,7% 8,50 € 7,89 100 8,00 € 7,67 7,43 7,50 € 7,29 75 7,00 € + 598,0% 120,5 50 6,50 € 6,00 € 25 5,50 € 17,3 0 5,00 € H1 2021 H1 2022 H1 H1 H1 H1 H1 2018 2019 2020 2021 2022 * Box Office revenue after deduction of indirect taxes 19
Slide 20: In-theatre Sales
31,1% OF REVENUE In-theatre Sales ITS* / Visitor €m 6,00 € 5,50 € 75 +20,3% 5,09 5,00 € 4,50 € 4,23 3,98 4,00 € 3,81 50 3,63 3,50 € + 551,4% 70,9 3,00 € 25 2,50 € 2,00 € 10,9 1,50 € 0 1,00 € H1 2021 H1 2022 H1 H1 H1 H1 H1 2018 2019 2020 2021 2022 * Excl. ITS Delivery sales 20
Slide 21: Sales & Events and Screen Advertising
11,8% OF REVENUE €m Sales & Events (10,2%) €m Screen Advertising (1,6%) 25 4 20 3 15 + 753,5% 2 +676,2% 23,2 3,8 10 1 5 2,7 0,5 0 0 H1 2021 H1 2022 H1 2021 H1 2022 +11,3% compared to H1 2019 -27,5% compared to H1 2019 * Excluding Brightfish 21
Slide 22: Revenue stream: 2,6% of revenue
2,6% OF REVENUE €m 6 +43,2% 4 4,2 6,0 2 0 H1 2021 H1 2022 -12,6% compared to H1 2019 22
Slide 23: Revenue stream: 0,9% of revenue
0,9% OF REVENUE €m 3 2,1 2 0,6 1 +517,8% 1,4 0,3 0,1 0,3 0 H1 2021 H1 2022 Screen Advertising Sales & Events -57,4% compared to H1 2019 • Screen Advertising: -44,3% • Sales & Events: -72,7% 23
Slide 24: Revenue stream: 0,7% of revenue
0,7% OF REVENUE €m 2 +83,5% 1 0,9 1,6 0 H1 2021 H1 2022 +16,3% compared to H1 2019 24
Slide 25: Operating costs
€m H1 2022 H1 2021 % Better / -Worse H1 2019 Marketing and selling expenses -9,4 -4,5 -109,5% -11,7 Administrative expenses -13,2 -9,8 -34,4% -14,2 Other operating income / cost 3,6 10,3 -64,8% 0,6 Operating Costs -19,0 -4,0 -372,1% -25,3 25
Slide 26: EBITDA and EBITDAL by country
EBITDA - €m H1 2022 % of Total H1 2021 % of Total % Better / -Worse % ∆ Y Vis Belgium 15,7 23,0% -8,4 118,7% 286,4% 1 043,0% France 10,7 15,7% 1,1 -15,7% 864,9% 557,1% Canada 17,7 25,9% 2,2 -30,9% 707,3% 1 466,2% Spain 4,4 6,4% 0,1 -2,1% 2 896,0% 224,8% The Netherlands 9,9 14,5% -2,6 36,6% 481,1% 68
Slide 27: Depreciation, amortisation and provisions
€m H1 2022 H1 2021 % Better / -Worse Depreciation, amortisation and provisions -26,3 -27,1 3,2% Depreciations on right-of-use assets -14,1 -13,7 -2,8% Total depreciation, amortization and provisions -40,4 -40,9 1,2% €m -5 -15 -25 -35 0,9 -40,9 -0,4 -40,4 -45 H1 2021 Right-of-Use Normal H1 2022 Asset
Slide 28: Financial result
€m H1 2022 H1 2021 % Better / -Worse Interest expense -7,45 -7,63 2,4% Financial charges IFRS 16 -5,21 -5,20 -0,2% FX -0,66 0,41 -263,3% Other (CNC, bank charges,...) -2,24 -0,70 -220,1% Financial (Cost) / Income -15,57 -13,13 -18,6% €m 0 -5 -10 0,18 -13,13 -0,01 -15 -2,61 -15,57 -20 H1 2021 Interes
Slide 29: Taxes and result
€m H1 2022 H1 2021 % Better / -Worse Result before taxes 12,3 -61,1 120,1% Taxes -3,2 15,3 -121,1% Result 9,1 -45,8 119,8% Effective Tax Rate ('ETR') 26,3% 25,1% 117 bps €m 20 15,3 15 10 ETR 25,1% 5 0 ETR 26,3% -18,4 -0,1 -3,2 -5 H1 2021 Higher pre-tax result Other H1 2022 29
Slide 30: EBITDAL to result bridge H1 2022
€m 68,2 17,9 70 60 50,4 50 40 27,9 30 -40,4 20 9,1 10 -15,6 -3,2 0 EBITDAL Costs related to EBITDA Depr, Amort, Prov EBIT Financial result Taxes Result H1 2022 lease contracts H1 2022 H1 2022 H1 2022 30
Slide 31: Capital expenditure
€m H1 2022 H1 2021 H1 2019 Belgium €m H11,7 2022 0,8 H1 2021 7,6 €m France 0,8 0,3 4,2 8 Belgium 1,7 0,8 Canada 2,1 0,2 6,8 6,2 France 0,8 0,3 Spain 0,7 0,2 1,7 6 Canada 2,1 0,2 TheSpain Netherlands 0,2 0,7 0,3 0,2 2,3 3,8 4 United TheStates Netherlands 0,8 0,2 0,1 0,3 2,7 Luxembourg United States 0
Slide 32: Free cash flow H1 2022
€m 70 63,3 60 -0,6 50 -10,7 -3,8 40 -4,6 30 25,7 -17,9 20 10 0 Cash flow before WC Income Working Capex - Interest Payment of lease FCF H1 2022 movements and Tax Taxes Capital Maintenance Paid liabilities paid 32
Slide 33: Cash flow overview
Q1 2022 Q2 2022 H1 2022 H1 2019 OCF after lease payments 10 743 34 645 45 387 54 166 Working capital -5 583 -5 126 -10 709 -3 747 Income Taxes Paid -525 -38 -563 -6 443 Capital Exp – Maintenance -946 -2 896 -3 842 -12 372 Interest Paid -3 337 -1 215 -4 552 -6 568 Free Cash Flow 353 25 369 25 722 25
Slide 34: Net financial debt evolution
€m H1 2022 YE 2021 Better/-Worse NFD Evolution Net Financial Debt (NFD) excl. lease liabilities 450,0 474,5 24,4 5,2% Net Financial Debt (NFD) incl. lease liabilities 852,9 865,0 12,1 1,4% Leverage ratio*: NFD / EBITDA 5,76 11,90 Leverage ratio*: NFD excl. lease liabilities / EBITDAL 3,99 12,32 €m -
Slide 35: 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 Term loan (yearly) Bond 8Y 25.000.000 Priv Plac. 10Y (Jan) 10.15
Slide 36: Balance sheet
€m 30/06/2022 % of Total 31/12/2021 % of Total €m 30/06/2022 % of Total 31/12/2021 % of Total Intangible assets 11,2 1,0% 11,1 0,9% Share capital & share premium 20,1 1,7% 20,1 1,7% Goodwill 176,3 15,0% 169,5 14,2% Consolidated reserves 110,9 9,5% 100,7 8,4% Property, plant & equipment 493,0 42,0% 4
Slide 37: Shareholders and free float
25/10/2022 16/08/2022 # 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 38: Financial calendar
Thursday 16/02/2023 Annual results 2022 Press & Analyst Meeting Thursday 27/04/2023 Business update Q1 2023 Wednesday 10/05/2023 Annual Shareholders’ Meeting Kinepolis Group 38
Slide 39: Slide 39
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