Kinepolis Group Nv · EURONEXT:KIN

Kinepolis Group Nv — Q3 2023 Earnings Presentation

50 slides from Kinepolis Group Nv's earnings presentation, November 2023

  1. Slide 1: Kinepolis Group Business Update Q3 2023 Roadshow

    Kinepolis Group Results H1 2023 Kinepolis Group Audit Committee - Board of Directors [MMM DD, August 14,YYYY] 2023 Business Update Q3 2023 Roadshow November - December, 2023

  2. Slide 2: Business review YTD Q3 2023

    Business review YTD Q3 2023 CEO, Mr. Eddy Duquenne

  3. Slide 3: Executive Summary

    EXECUTIVE SUMMARY  On track for record year 2023 thanks to strong ‘Barbenheimer’ summer  Impact of Entrepreneurship & STAR plans, combined with the further execution of the Kinepolis strategy  Fast increase of revenue (outperforming 2019) due to record high sales per visitor, driven by a higher d

  4. Slide 4: Highlights

    highlights  Strategic pillars  Best Marketer  Best Cinema Operator  Best Real Estate Manager  Opening of 6 brand new IMAX theatres between 7 Oct and 9 Nov (Kirchberg (LU), Madrid (ES), Nîmes (FR), Liège (BE), Landmark Waterloo (CA) and MJR Southgate (US))  Further roll-out of premium products:

  5. Slide 5: First Date / Date Night

    FIRST DATE DATE NIGHT

  6. Slide 6: 6

    6

  7. Slide 7: Opening IMAX Kirchberg (LU), 17 Oct

    Opening IMAX Kirchberg (LU), 17 Oct 7

  8. Slide 8: 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

  9. Slide 9: 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 37 -1 300 -12 13% 3 1% Spain 10 157 6% 3 28% The Netherlands 20 147 11% 13 67% United States 10 164 0% 7 72% Luxembourg 3 22 83% 1 6

  10. Slide 10: Visitors

    visitors Visitors (000's) YTD Q3 2023 % of Tot YTD Q3 2022 % of Tot % ∆ YoY Belgium 4 725 17,3% 3 816 18,0% 23,8% France 4 973 18,2% 3 559 16,9% 39,7% Canada 7 323 26,8% 5 817 27,6% 25,9% Spain 3 703 13,6% 2 578 12,2% 43,7% The Netherlands 2 688 9,8% 2 324 11,0% 15,6% United States 3 204 11,7% 2 513

  11. Slide 11: Movies

    Movies Top 5 Movies 2023 3D Visitors (000's) Top 5 Movies 2022 3D Visitors (000's) 1. Super Mario Bros (2023)  2 196 1. Top Gun: Maverick 2 072 2. Barbie 2 112 2. Minions: The Rise of Gru  1 340 3. Avatar 2  1 728 3. Jurassic World: Dominion  1 184 4. Oppenheimer 1 381 4. Doctor Strange in the M

  12. Slide 12: Q4 2023 film slate

    Q4 2023 10 11 12 EXORCIST SEQUEL PAW PATROL 2 TROLLS THE HUNGER GAMES THE MARVELS NAPOLEON WONKA AQUAMAN 2 SEQUEL THE CREATOR SAW X KILLERS OF THE WISH FIVE NIGHTS AT MIGRATION THE IRON CLAW FLOWER MOON FREDDY’S THANKSGIVING 12

  13. Slide 13: Financial Review H1 2023

    Financial Review H1 2023 CFO, Mr. Jeroen Mouton

  14. Slide 14: 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,

  15. Slide 15: 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

  16. Slide 16: 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

  17. 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 (-

  18. 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: 

  19. 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

  20. 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%

  21. 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

  22. 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 22

  23. 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 23

  24. 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 24

  25. 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 25

  26. 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 26

  27. Slide 27: EBITDA(L) by country 2023-2022

    Ebitda(L) by country 2023-2022 27

  28. 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

  29. 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

  30. 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

  31. 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 31

  32. 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 32

  33. 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

  34. 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 34

  35. 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

  36. 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

  37. 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

  38. 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

  39. Slide 39: Shareholders

    shareholders 16/10/2023 17/08/2023 # 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 507 621 1,85% 420 373 1,54%  Fr

  40. Slide 40: Financial calendar

    Financial calendar 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 40

  41. Slide 41: Annexes Financial Statements

    Annexes Financial Statements Results H1 2023

  42. 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

  43. 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

  44. 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

  45. 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 45

  46. 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

  47. 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

  48. 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

  49. 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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