Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — H1 2024 Earnings Presentation
49 slides from Kinepolis Group Nv's earnings presentation, Aug 22, 2024
Slide 1: Kinepolis Group Results H1 2024 Analyst meeting
Kinepolis Group Results H1 2024 Analyst meeting 22/08/2024
Slide 2: 2
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Slide 3: Business review H1 2024
Business review H1 2024 CEO, Mr Eddy Duquenne
Slide 4: H1 2024 key figures
€m H1 2024 H1 2023 % Better / -Worse Revenue 242,8 285,3 -14,9% Visitors (‘000) 13 974 16 783 -16,7% EBITDA 54,4 82,0 -33,7% Adjusted EBITDA 54,4 82,0 -33,6% Adjusted EBITDA margin € 3,90/Vis 22,4% € 4,88/Vis 28,7% -631 bps EBITDAL 37,1 64,3 -42,3% Adjusted EBITDAL 37,2 64,2 -42,2% Adjusted EBITDAL
Slide 5: Executive Summary – part I
Executive Summary – part I H1 2024 • Despite strong headwinds (box office challenges posed by the 2023 strikes and inflation), Kinepolis remains profitable and financially stable • -16,7% visitors vs H1 2023 due to weak film slate until the beginning of June • From June onwards: turnaround thanks to
Slide 6: Top 5 Movies 2024 and 2023
Top 5 Movies 2024 3D Visitors (000's) 1. Dune: Part Two 1 071 2. Inside Out 2 1 062 3. Kung Fu Panda 4 760 4. Wonka 593 5. Kingdom of the Planet of the Apes 512 Top 5 3 997 Weight Top 5 28,6% Top 5 Movies 2023 3D Visitors (000's) 1. Super Mario Bros (2023) 2 132 2. Avatar 2 1 728 3. Guardian
Slide 7: Executive Summary – part II
Executive Summary – part II H1 2024 • Free cash flow decreased by 9,8 million, from € 22,4 million per H1 2023 to € 12,5 million per H1 2024. • NFD excl. lease liabilities increased with € 13,6 million, from € 378,3 million per 31/12/2023 to € 392,0 million per 30/06/2024 • Hollywood film offering e
Slide 8: Opening of new ScreenX and Laser ULTRA screens
• Opening of 12 new ScreenX screens since the start of 2024: Brussels (BE), Braine-l’Alleud (BE), Liège (BE), Brugge (BE), Kortrijk (BE), Brétigny-sur-Orge (FR), Nancy (FR), Béziers (FR), Enschede (NL), MJR Waterford (US), Landmark Guildford (CA) and Landmark St. Catharines (CA) • Opening of 6 new L
Slide 9: CineEurope 2024 Milestone Award
TO CHANGE CineEurope 2024 Milestone Award Landmark Premier Seats (CA) 9
Slide 10: Kinepolis Innovation Awards 2024
Kinepolis Innovation Awards 2024 10
Slide 11: Renovation Kinepolis Amnéville (FR)
TO CHANGE Renovation Kinepolis Amnéville (FR) 11
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Slide 13: Appointments and other highlights
• Appointment of Pieter-Jan Sonck as CFO of Kinepolis Group • Appointment of EDK Management, with Ms Els De Keukelaere as its permanent representative and Lupus Asset Management BV, with Mr Jo De Wolf as its permanent representative as directors Kinepolis Group NV • Agreement for opening of a new La
Slide 14: Core strategy: 3 pillar strategy
Core strategy 3 pillar strategy Best cinema operator Best marketer Best real estate manager 14
Slide 15: Key elements for future growth
Further recovery visitor numbers driven by Hollywood offering expected to be fully recovered by 2025/2026 Key elements Internal expansion (premium concepts) for future growth External expansion 15
Slide 16: ESG Focus areas
ESG Focus areas Best cinema operator Best marketer Best real estate manager Development & Employee well-being, Customer Experience Green and resilient building Responsible waste empowerment of employees diversity and inclusion excellence & infrastructure management 16
Slide 17: ESG Highlights H1 2024
Further roll-out of intelligent building management systems and transition to laser projection Commitment to SBTi Net-Zero Standard ESG and thus to setting a robust emissions reduction target at the pace and scale required by climate science Highlights Local partnerships: soil sealing reduction H1 2
Slide 18: Market and complexes in ownership
Market Complexes in Ownership Countries Complexes *** Screens *** Share # % Visitors Belgium 11 138 0% 10 98% France 18 199 4% 11 74% Canada 36 299 13% 3 0% Spain 10 157 6% 3 30% The Netherlands 19 144 9% 13 66% United States 10 164 0% 7 72% Luxembourg 3 22 83% 1 66% Switzerland 1 8 1% 1 100% Poland
Slide 19: Visitors by country
Visitors (000's) H1 2024 % of Tot H1 2023 % of Tot % ∆ YoY Belgium 2 429 17,4% 2 871 17,1% -15,4% France 2 876 20,6% 3 238 19,3% -11,2% Canada 3 619 25,9% 4 418 26,3% -18,1% Spain 1 681 12,0% 2 126 12,7% -20,9% The Netherlands 1 288 9,2% 1 658 9,9% -22,3% United States 1 698 12,2% 2 037 12,1% -16,6%
Slide 20: Revenue by country
Revenue €m H1 2024 % of Tot H1 2023 % of Tot % ∆ YoY Belgium 63,3 26,1% 72,7 25,5% -12,9% France 38,3 15,8% 43,5 15,2% -12,0% Canada 58,1 23,9% 69,4 24,3% -16,3% Spain 19,9 8,2% 25,7 9,0% -22,8% The Netherlands 25,1 10,3% 31,8 11,2% -21,2% United States 27,2 11,2% 30,6 10,7% -11,1% Luxembourg 8,6 3,
Slide 21: Revenue split by country H1 2024 vs H1 2023
Luxembourg 3,6% Switzerland Luxembourg Switzerland Poland 3,2% Poland USA 0,9% USA 0,8% 10,7% Belgium 11,2% 25,5% Belgium 26,1% The Netherlands The Netherlands 11,2% 10,3% € 242,8m € 285,3m Spain France 8,2% Spain 15,2% France 9,0% 15,8% Canada Canada 23,9% 24,3% H1 2024 H1 2023 21
Slide 22: Revenue split by activity
Real Estate Real Estate Film Distribution Film Distribution 3,0% 2,3% 0,7% 0,6% B2B* B2B* 11,9% 12,6% Box Office Box Office 52,7% € 285,3m 53,4% € 242,8m In-theatre Sales In-theatre Sales 32,3% 31,7% H1 2024 H1 2023 * Including Cinema Screen Advertising and Sales & Events 22
Slide 23: Movie line-up
International Movie line-up 23
Slide 24: Movie line-up international
HORIZON FLY ME TO DEADPOOL 3 HORIZON TRAP IT ENDS BEETLEJUICE 2 NEVER LET GO TRANSFORMERS ONE CHAPTER 1 THE MOON CHAPTER 2 WITH US DESPICABLE THE GARFIELD ALIEN: TWISTERS BORDERLANDS SPEAK NO ME 4 MOVIE ROMULUS THE CROW EVIL THE WILD ROBOT 24
Slide 25: Movie line-up international (continued)
HAROLD AND VENOM THE THE LORD OF THE MUFASA: THE JOKER: FOLIE A THE WILD GLADIATOR II SMILE 2 WICKED THE PURPLE LAST DANCE RINGS: THE WAR LION KING DEUX ROBOT CRAYON OP THE ROHIRRIM KRAVEN THE MOANA 2 CONCLAVE RED ONE SONIC 3 NOSFERATU HUNTER 25
Slide 26: Financial review H1 2024
Financial review H1 2024
Slide 27: Revenue of € 242,8 million with 14,0 million visitors
Revenue of € 242,8 million with 14,0 million visitors % Better / - Revenue down by -14,9% €m H1 2024 H1 2023 Worse with -16,7% less visitors Box Office 127,8 152,4 -16,1% Decrease Visitors (-16,7%) In-theatre Sales 77,0 92,2 -16,5% Decrease Box Office (-16,1%) Business-to-Business 29,3 31,9
Slide 28: Net financial debt evolution and maturity
NFD incl. lease liabilities increased with € 16,8 million, from € 735,9 million per 31/12/2023 to € 752,6 million per 30/06/2024 NFD excl. lease liabilities increased with € 13,6 million, from € 378,3 million per 31/12/2023 to € 392,0 million per 30/06/2024, mainly due to: € +12,5 m free cash
Slide 29: Box Office and box office per visitor
€m Box Office € 10,0 Box office* / Visitor 155 € 9,5 150 9,1 9,1 € 9,0 8,8 145 +0,7% 152,4 140 € 8,5 -16,1% 135 € 8,0 7,9 7,7 130 € 7,5 125 127,8 € 7,0 120 115 € 6,5 H1 2023 H1 2024 H1 H1 H1 H1 H1 2020 2021 2022 2023 2024 * Box Office revenue after deduction of indirect taxes 29
Slide 30: In-theatre Sales and per visitor
In-theatre Sales € 6,0 ITS* / Visitor €m 95 5,4 5,4 € 5,5 5,1 90 92,2 € 5,0 +0,1% 85 -16,5% € 4,5 4,2 80 4,0 € 4,0 75 77,0 € 3,5 70 € 3,0 65 H1 H1 H1 H1 H1 H1 2023 H1 2024 2020 2021 2022 2023 2024 * Excl. ITS Delivery sales 30
Slide 31: Sales & Events and Screen Advertising
€m Sales & Events (9,3%) Screen Advertising (2,8%) €m 25 -10,5% 7,0 +1,2% 20 6,0 25,1 22,5 5,0 15 6,8 6,9 4,0 10 3,0 2,0 5 5,8 1,0 Exchange Deals 3,1 0 0,0 H1 2023 H1 2024 H1 2023 H1 2024 31
Slide 32: Film Distribution
€m Film Distribution (0,6%) 2,0 2,1 -35,4% 1,5 1,0 1,3 0,5 0,0 H1 2023 H1 2024 32
Slide 33: Real Estate
€m 7,0 +8,5% 6,0 5,0 6,7 7,2 4,0 3,0 2,0 1,0 0,0 H1 2023 H1 2024 33
Slide 34: Operating costs
€m H1 2024 % of Sales H1 2023 % of Sales % Better/-Worse Marketing and selling expenses -12,5 5,1% -12,6 4,4% 1,3% Administrative expenses -14,8 6,1% -14,0 4,9% -5,8% Other operating income / cost 0,3 -0,1% 0,6 -0,2% -54,2% Operating Costs -27,0 11,1% -26,1 9,1% -3,6% 34 34
Slide 35: EBITDA and EBITDAL by country
EBITDA - €m H1 2024 H1 2024 margin H1 2024 % of Total H1 2023 H1 2023 margin H1 2023 % of Total Belgium 8,7 33,4% 16,0% 17,2 38,6% 21,0% France 11,4 29,7% 20,9% 15,5 35,8% 19,0% Canada 13,1 22,5% 24,0% 18,5 26,7% 22,6% Spain 3,5 17,7% 6,5% 7,6 29,3% 9,2% The Netherlands 6,4 25,7% 11,8% 9,8 30,7% 11,
Slide 36: Depreciation and financial result
€m H1 2024 H1 2023 % Better / -Worse Depreciations and amortisations -26,3 -26,5 0,6% Depreciations on right-of-use assets -14,1 -14,0 -0,7% Provisions and impairments 0,5 1,6 68,5% Total depreciation, amortisation and provisions -39,9 -38,9 -2,7% €m H1 2024 H1 2023 % Better / -Worse Interest expens
Slide 37: Result before taxes, taxes and result
€m H1 2024 H1 2023 % Better / -Worse Result before taxes 1,0 27,8 -96,3% - Current tax -1,3 -6,5 -79,9% - Deferred tax 0,4 -0,5 -174,7% Taxes -0,9 -7,0 86,8% Result 0,1 20,8 -99,4% Effective Tax Rate ('ETR') 88,7% 25,2% 252,2% €m 1,0 ETR 6,7 -1,5 ETR 25,2% 88,7% 0,0 -1,0 -0,9 -2,0 -3,0 -4,0 -5,0 0,9
Slide 38: EBITDA to result bridge
€m 60 54,4 -17,3 50 40 37,1 -22,7 30 20 14,4 -13,4 10 1,0 -0,9 0,1 0 EBITDA Costs related to EBITDAL Depr, Amort, EBIT Financial result EBT Taxes Result H1 2024 lease contracts H1 2024 Prov, Costs H1 2024 H1 2024 H1 2024 related to lease contracts 38
Slide 39: Capital expenditure
€m 12,0 10,2 10,0 8,0 7,1 7,4 7,5 6,0 5,5 4,0 3,1 2,0 0,0 MAINTENANCE INTERNAL EXPANSION EXTERNAL EXPANSION H1 2024 H1 2023 €m H1 2024 H1 2023 Belgium 4,3 3,2 France 2,7 1,3 Canada 3,1 4,2 Spain 1,1 2,1 The Netherlands 0,9 0,6 United States 1,7 3,6 Luxembourg 0,6 0,5 Other 0,1 0,1 Maintenance & Inte
Slide 40: Cash flow statement
€m H1 2024 H1 2023 Better / -Worse Result before tax 1,0 27,8 -26,7 Adjustments for: Depreciations and amortisations 40,4 40,5 -0,1 Provisions and impairments -0,5 -1,6 1,1 Government grants -0,8 -0,4 -0,4 Adjustments to right-of-use assets and lease liabilities -0,1 0,1 Gains / losses on sale of PP
Slide 41: Free cash flow bridge
€m 60 52,1 50 -5,7 40 -7,2 30 -7,1 -2,4 20 12,5 10 -17,2 0 Cash flow before WC Income Working Capex - Interest Payment of lease FCF H1 2024 movements and Tax Taxes Capital Maintenance Paid liabilities paid 41
Slide 42: Free cash flow overview
€m H1 2024 H1 2023 Better / -Worse Cash Flow before WC movements & tax paid 52,1 78,9 -26,9 Income taxes (paid) / received -5,7 -5,9 0,2 Working capital -7,2 -19,8 12,8 Capital exp – maintenance -7,1 -10,2 3,1 Interest (paid) / received -2,4 -3,4 0,8 Payment of lease liabilities (capital portion + i
Slide 43: Net financial debt and leverage
€m H1 2024 YE 2023 Better/-Worse NFD Evolution Gross Financial Debt excl. lease liabilities 438,9 479,8 40,9 8,5% Cash 46,8 101,4 54,6 -53,8% Net Financial Debt (NFD) excl. lease liabilities 392,0 378,3 -13,6 -3,6% Gross Financial Debt incl. lease liabilities 799,6 837,4 37,8 5,1% Net Financial Debt
Slide 44: 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* 125.000.000 120.000.000 Priv. Plac. 8Y (Dec) 60.000.000 100.000.000 Priv Plac. 10Y 75.000.000 65.000.000 50.000.000 25.000.000 Priv Plac. 10Y (Jan) 34.600.000 0 2025 2026 2027 * Commercial paper drawn for
Slide 45: Balance sheet
€m 30/06/2024 % of Total 31/12/2023 % of Total €m 30/06/2024 % of Total 31/12/2023 % of Total Intangible assets 10,5 0,9% 11,0 0,9% Share capital & share premium 20,1 1,8% 20,1 1,7% Goodwill 176,3 15,9% 174,8 15,0% Consolidated reserves 156,3 14,1% 171,5 14,7% Property, plant & equipment 456,1 41,2%
Slide 46: Shares and reference shareholders & free float
18/07/2024 19/02/2024 # Shares % # Shares % Total shares outstanding 27 365 197 100,0% 27 365 197 100,0% 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 616 582 2,25% 637 121 2,33% Free Float
Slide 47: Financial calendar
Thursday Half-Year Results 2024 22/08/2024 Press and Analyst Meeting Thursday 24/10/2024 Business Update Q3 2024 Financial calendar Thursday Annual Results 2024 20/02/2025 Press and Analyst Meeting 47
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Slide 49: Thank You – Q & A
Thank You Q & A 49