Slide 1: Kinepolis Group Results 2016
Kinepolis Group Results 2016 Press & Analyst Meeting 17 February 2017
Slide 2: Business review 2016
Business review 2016 CEO, Mr. Eddy Duquenne
Slide 3: Key Financials
KEY FINANCIALS €m 2016 2015 Better / ‐ Worse Visitors (‘000) 23.818 22.149 7,5% Revenue 324,9 301,6 7,7% EBITDA 91,7 88,7 3,3% REBITDA 94,6 91,0 4,0% REBITDA Margin € 3,97 /Vis 29,1% € 4,11 /Vis 30,2% ‐109 bps EBIT 63,2 65,2 ‐3,1% REBIT 66,7 67,6 ‐1,4% REBIT Margin 20,5% 22,4% ‐190 bps Profit 47,6 3
Slide 4: Highlights: Revenue up by 7,7%, REBITDA 4,0%
highlights Revenue up by 7,7% Visitors (+7,5%) Increase Box Office (+7,3%) Increase In‐theatre Sales (+9,6%) Increase B2B (+9,5%) Increase Sales and Events (+9,5%) Increase Screen Advertising (+9,2%) Decrease Brightfish (‐12,8%) Increase Film Distribution (+38%) Increase Real Estate (+11,3
Slide 5: Highlights
highlights Revenue +7,7% with 7,5% more visitors and REBITDA +4,0% REBITDA margin at 29,1% (30,2% 2015) Current depreciation, amortization and provisions: € 27,8 m (€ 23,3 m 2015) Current profit at € 40,4 m (€ 43,2 m 2015) Free cash flow of € 53,6 m (€ 12,4 m lower) NFD at € 169,8 m (€ 7,7 m h
Slide 6: Major events: strategic pillars and expansion steps
major events YTD 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 Further steps in expansion strategy January 2016: Acquisition of Rouen (France) (€ 0,4 m) February
Slide 7: Kinepolis complexes today
kinepolis complexes today Countries Complexes Screens Complexes in Ownership # % Visitors Belgium * 12 149 +1 11 98% France 11 +2 128 +22 9 96% Spain 6 +1 99 +8 2 48% The Netherlands 15 +3‐1 104 +24 ‐4 7 67% Poland * 1 18 1 n/a Switzerland 1 8 1 100% Luxembourg 3 22 1 65% 15 Total 49 +5 528 +51 32 8
Slide 8: Realized acquisitions and greenfields (2014–2016)
REALIZED ACQUISITIONS AND greenfields (2014 – 2016) Country City # 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 The Netherlands Wolff Bioscopen 9 46 1,6 mio Q3 2014 Acq. Building Enschede (Wolff) Q
Slide 9: Planned greenfields
planned greenfields* Country City # Screens Est. Visitors / Year Estimated opening The Netherlands Utrecht ** 14 1,2 mio Q1 2017 Den Bosch 7 0,4 mio Q1 2018 France Brétigny‐sur‐Orge 10 0,5 mio Q3 2018 Total 31 2,1 mio * The listed planned greenfields are greenfields for which an irrevocable license
Slide 10: Revenue by country
revenue by country Luxembourg Switzerland 4,4 % Poland 1,4% Switzerland Luxembourg The The Poland 1,1% Netherlands Netherlands 1,6% 11,1% 7,7% Spain 13,6% Spain Belgium 13,0% € 324,9 m Belgium € 301,6 m 54,7% 48,3% France 21,3% France 21,8% 2015 2016 10
Slide 11: Revenue by activity
revenue by activity Film Brightfish Distribution Film Real Estate 3,6% Brightfish 1,5% Distribution 3,8% 4,4% 1,2% Real Estate 3,6% B2B* 14,6% B2B* Box 14,4% Office 54,4% Box € 324,9 m Office 54,1% € 301,6 m In‐theatre Sales In‐theatre 22,0% Sales 22,4% 2015 2016 * Including Cinema Screen Advertisin
Slide 12: Visitors
visitors Visitors (000’s) 2016 % of Tot 2015 % of Tot % Δ YoY Belgium 8.432 35,4% 9.184 41,4% ‐8,2% France 7.036 29,5% 6.438 29,1% 9,3% Spain 4.420 18,6% 4.376 19,8% 1,0% The Netherlands 2.752 11,6% 1.754 7,9% 56,9% Luxembourg 1.052 4,4% 257 1,2% 309,3% Switzerland 126 0,5% 140 0,6% ‐10,0% Total 23.
Slide 13: Movies
movies Visitors Visitors Top 5 Movies 2016 3D Top 5 Movies 2015 3D (000’s) (000’s) 1. Finding Dory ✓ 622 1. Star Wars: Episode VII ‐ The ✓ 1.071 2. Fantastic Beasts And Where To Find Force Awakens ✓ 621 Them 2. Minions ✓ 925 3. The Jungle Book ✓ 612 3. Jurassic World ✓ 907 4. The Revenant 595 4. Spe
Slide 14: Ratios
ratios REBITDA Margin ROCE Gearing 35% 30% 1,40 1,32 30,3% 30,2% 1,13 29,1% 29,1% 1,20 1,13 30% 28,3% 25% 22,9% 21,8% 20,9% 21,5% 1,00 0,84 25% 0,83 20% 17,9% 0,80 20% 0,60 15% 15% 0,40 10% 0,20 10% 2012 2013 2014 2015 2016 5% 0,00 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 14
Slide 15: Net financial debt evolution
net financial debt evolution €m 2016 2015 Better/‐Worse % Better/‐Worse Net Financial Debt (NFD) 169,8 162,0 ‐7,8 ‐4,8% Leverage ratio*: NFD / REBITDA 1,8 1,8 €m € 180 3,5 € 160 3,0 € 140 2,5 € 120 € 100 2,0 € 80 1,5 € 60 1,0 € 40 0,5 € 20 €0 0,0 YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 YE 2015 YE 20
Slide 16: Dividend payment
dividend payment Dividend/Share +10,1% € 0,87 Based on Net Income: € 47,6 m 0,9 € € 0,79 0,8 € € 0,69 Payout ratio: 50 % 0,7 € € 0,64 0,6 € To be paid out: € 23.692.580 € 0,47 0,5 € € 0,36 0,4 € # Dividend eligible shares: 27.232.851* 0,3 € € 0,25 € 0,18 € 0,87* per share 0,2 € € 0,13 € 0,
Slide 17: Line-up 2017
Line-up 2017 2D 3D Major sequels • Fifty Shades Darker (Q1) • Guardians of the Galaxy Vol. 2 (Q2) • Logan (Q1) • Cars 3 (Q3) • Smurfs: The Lost Village (Q2) • Despicable Me 3 (Q3) • The Fate of the Furious (Q2) • Spider‐Man: Homecoming (Q3) • Alien: Covenant (Q2) • War for the Planet of the Apes (Q3
Slide 18: Financial Review 2016
Financial Review 2016 CFO, Mr. Nicolas De Clercq
Slide 19: Utopolis Belgium Acquisition (1/2)
Utopolis BelGium Acquisition (1/2) DISCLOSURE IN THE FINANCIAL STATEMENTS OF 31 DECEMBER 2016 Sale of the Belgian Utopolis cinemas Kinepolis Group NV completed the acquisition of Utopolis (Utopia SA), excluding the Belgian complexes, on 9 November 2015. The acquisition of the four Belgian complexes
Slide 20: Utopolis Belgium Acquisition (2/2)
Utopolis BelGium Acquisition (2/2) Profit from discontinued operations in K € ENTERPRISE VALUE 36.229 EQUITY VALUE 33.000 AHFS after repayment loan 26.362 Result of the Sale of Utopolis Belgium 6.638 Additional corrections (result April‐July profit 2.042 Utopolis, Taxes on statutory surplus value',
Slide 21: Revenue by country
Revenue by country Kinepolis Breda, NL Kinepolis Bourgoin, FR 21
Slide 22: Evolution Box Office
Evolution Box OFFICE €m Box Office 185 10,00 € Box office* / visitor 175,6 9,50 € 175 +7,3% 9,00 € 163,6 8,50 € -0,2% 165 8,00 € 7,39 7,37 155 7,50 € 7,23 7,15 7,07 7,00 € 145 6,50 € 6,00 € 135 5,50 € 125 5,00 € 2015 2016 2012 2013 2014 2015 2016 * Box Office revenue after deduction of indirect taxe
Slide 23: Evolution In-theatre Sales
EVOLUTION ITS €m In‐theatre Sales 80 ITS / visitor 72,9 5,00 € 70 66,5 +9,6% 4,50 € 60 4,00 € +1,9% 50 3,50 € 3,00 3,06 40 3,00 € 3,08 2,84 2,68 30 2,50 € 20 2,00 € 10 1,50 € 0 1,00 € 2015 2016 2012 2013 2014 2015 2016 23
Slide 24: B2B revenue
B2B revenue €m Sales & Events* €m Screen Advertising* 40 8 +9,5% +9,2% 35 7 30 6 25 5 20 39,8 4 7,8 36,3 7,2 15 3 10 2 5 1 0 0 2015 2016 2015 2016 * Excluding Brightfish * Excluding Brightfish 24
Slide 25: Brightfish
Brightfish €m 14 13,3 -12,8% 12 11,6 10 6,8 6,5 8 6 4 6,5 5,1 2 0 2015 2016 Screen Sales & Events Advertising 25
Slide 26: Real estate at flat fx
Real estate at flat fx €m 14 12 +11,9% 10 8 6 12,3 11,00 4 2 0 2015 2016 Kinepolis Breda, NL 26
Slide 27: Film distribution
Film distribution €m 5 +38,0% 4 3 4,9 2 3,6 1 0 2015 2016 # releases 29 34 27
Slide 28: Revenue by activity
Revenue by activity €m +11,3% +7,7% -0,3% 350 +9,5% +9,2% 324,9 +38,0% -12,8% 301,6 +7,3% +9,6% 300 0,6 ‐1,7 1,2 6,4 3,5 1,4 11,9 250 +% 200 150 100 50 Business line Cinema 0 2015 Box In-theatre Sales & Screen Film Brightfish Real 2016 Office Sales Events Advertising Distribution Estate 28
Slide 29: Current operating costs
Current operating costs €m 2016 2015 % Better / ‐Worse Current Marketing & Selling Expenses ‐18,0 ‐17,5 ‐2,6% Current Administrative Expenses ‐17,1 ‐16,2 ‐5,2% Other Currrent Operating Income/(Costs) 0,8 0,9 ‐16,4% Current Operating Costs ‐34,3 ‐32,8 ‐4,5% Non‐Current Operating Costs ‐2,7 ‐1,5 ‐78,3
Slide 30: Non-current items
Non-Current items €m 2016 2015 Dismissal fees ‐0,7 ‐0,9 Legal fees ‐0,4 ‐0,4 Expansion costs ‐1,3 ‐0,9 Reversal accrual Poland: penalty and zoning change fee 0,1 ‐ Gain/‐Loss on disposal PPE ‐0,1 ‐0,2 Launch costs new theatres ‐0,4 ‐ Other ‐0,1 0,1 EBITDA ‐2,9 ‐2,2 Accelerated depr Camera/Mob Ticket
Slide 31: Evolution REBITDA per visitor
Evolution Rebitda per visitor 7,00 € 6,53 6,18 6,00 € -3,3% 5,00 € 4,11 3,97 3,76 3,87 4,00 € 3,53 3,45 3,33 3,16 3,00 € 2,62 2,38 2,00 € 1,00 € 0,00 € 2015 2016 Belgium* France Spain The Netherlands Luxembourg Group * Excluding corporate entities, KFD, Brightfish revenue 31
Slide 32: REBITDA by country
Rebitda by country REBITDA €m 2016 % of Total 2015 % of Total % Better/‐Worse Belgium 43,8 46,4% 48,0 52,8% ‐8,7% France 24,8 26,3% 24,2 26,6% 2,6% Spain 11,6 12,2% 10,4 11,5% 10,8% The Netherlands 9,2 9,7% 5,6 6,1% 64,9% Luxembourg 3,6 3,8% 1,0 1,1% 265,1% Switzerland & Poland 1,5 1,6% 1,7 1,9% ‐10
Slide 33: REBITDA margin excl. corporate entities, KFD, Brightfish
Rebitda margin excl corporate entities, kfd, brightfish Belgium 40,8% 40,3% ** France 35,5% 37,2% ** Spain 36,2% 34,8% 29,0% ** Luxembourg 31,5% ** The 31,0% Netherlands 31,2% Switz. 32,5% & Poland 34,8% Total 29,1% 30,2% 2016 2015 ** REBITDAR (i.e. REBITDA excluding rent for Valencia, Plaza Mar 2 (
Slide 34: Depreciation, amortization, provisions
Depreciation, amortization, provisions €m 0 ‐5 ‐10 ‐15 ‐20 ‐25 +0,2 ‐23,3 ‐23,5 ‐30 ‐4,5 ‐27,8 ‐0,6 ‐28,4 ‐35 2015 Non‐current 2015 Current Normal Current Non‐current 2016 2015 diff's 2016 2016 34
Slide 35: Financial result
Financial result €m 2016 2015 % Better/‐Worse Interest Expense ‐6,8 ‐6,7 ‐1,7% Other (CNC, Derivatives, FX) ‐0,8 ‐1,1 23,3% Financial (Cost) / Income ‐7,6 ‐7,8 1,7% €m 0 ‐1 ‐2 ‐3 ‐4 ‐5 ‐6 ‐7 ‐8 ‐0,1 +0,2 ‐7,6 ‐7,8 ‐9 2015 Interest Other 2016 35
Slide 36: Taxes
taxes €m 2016 2015 % Better/‐Worse Profit before taxes 55,6 57,5 ‐3,3% Taxes ‐16,6 ‐25,2 34,1% Profit from discontinuing operations 8,7 Profit 47,6 32,3 47,7% Effective Tax Rate (‘ETR’) 29,9% 27,6% ‐2,3% €m 0,0 -5,0 ETR ETR ETR ETR 43,9% 27,6% 31,7% 29,9 % -10,0 -15,0 ‐16,7 +0,3 ‐16,6 -20,0 +2,1 ‐3,
Slide 37: EPR
EPR • On 11 January 2016, The European Commission published a decision that a purported regime of Belgian tax rulings with regard to ‘Excess Profit’ (EPR) should be considered as illegal state aid. The European Commission’s decision requires the Belgian government to asses back taxes from companies
Slide 38: REBITDA to net result
Rebitda to net result €m 100 ‐27,8 94,6 90 80 70 66,7 ‐0,4 ‐7,6 ‐18,7 60 8,7 ‐1,1 47,6 50 40 30 20 10 0 REBITDA 2016 Current REBIT 2016 Launch costs Current Current Result from Other Non- Result 2016 Depr, new theatres financial taxes discontinuing current Amort, result operations,net items Prov of
Slide 39: Investments
investments €m €m 2016 2015 90,0 79,9 Belgium 6,5 7,2 80,0 71,7 70,0 France 3,3 1,9 60,0 Spain 1,3 2,9 50,0 The Netherlands 1,5 1,9 40,0 Luxembourg 0,1 0 30,0 Other 0,1 0 20,0 6,8 8,2 7,1 Maintenance & Internal Expansion 12,8 13,9 10,0 4,6 ‐ External Expansion 71,7 79,9 Maintenance Internal Expansio
Slide 40: Free cash flow: 2016 vs 2015
Free cash flow: 2016 vs 2015 €m 70 ‐2,4 +2,2 66,0 ‐4,4 3,0 ‐1,5 63,6 ‐3,0 59,9 ‐6,3 60 53,6 50 40 30 20 10 0 FCF 2015 Working Current FCF EBITDA Income Tax Working Capex ‐ Interest FCF 2016 excl EPR payment FCF 2016 Capital (one‐ Paid (excl EPR Capital Maintenance Paid EPR payment timers) payment) 4
Slide 41: Net financial debt evolution
Net financial debt evolution €m 2016 2015 Better/‐Worse % Better/‐Worse Net Financial Debt (NFD) 169,8 162,0 ‐7,8 ‐4,8% Leverage ratio*: NFD / REBITDA 1,8 1,8 €m 0 ‐20 ‐40 ‐60 ‐80 ‐100 ‐26,8 +6,8 ‐120 ‐140 ‐160 +1,5 ‐162,0 +89,2 ‐180 ‐21,5 ‐84,5 ‐169,8 ‐7,4 +35,3 ‐200 NFD YE 2015 EBITDA + Taxes Work
Slide 42: Maturity profile financial debt
Maturity profile financial debt € 120.000.000 RCF 5y* 90.000.000 100.000.000 80.000.000 Bond 7y Priv. Plac. 7y 59.122.000 61.400.000 60.000.000 Priv. Plac. 10y 40.000.000 34.600.000 Bond 8y Term loan 20.000.000 5.943.000 15.878.000 (yearly) 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 * Revol
Slide 43: Balance sheet
Balance sheet €m 2016 % of Total 2015 % of Total €m 2016 % of Total 2015 % of Total Intangible assets 5,9 1,2% 5,1 1,0% Capital & share premium 20,1 4,0% 20,1 4,1% Goodwill 53,3 10,6% 53,3 10,9% Consolidated reserves 130,9 26,0% 103,7 21,1% Property, plant & equipment 321,5 63,9% 289,2 58,9% Transla
Slide 44: Shareholders
shareholders 17/02/2017 24/08/2016 # 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% 132.346
Slide 45: Financial calendar
Financial calendar Friday 07/04/2017 Annual Report 2016 available Wednesday 10/05/2017 General Meeting Kinepolis Group Business Update Q1 2017 Thursday 24/08/2017 Semestrial results 2017 press & analyst meeting Thursday 16/11/2017 Business update Q3 2017 45
Slide 46: Q&A Thank you
Q&A Thank you KINEPOLIS GROUP | KINEPOLIS”