Kinepolis Group NV · EURONEXT:KIN
Kinepolis Group NV — H1 2013 Earnings Presentation
40 slides from Kinepolis Group NV's earnings presentation, Aug 29, 2013
Slide 1: Kinepolis Group Results Half 1 2013
Kinepolis Group Results Half 1 2013 Analyst & Press Meeting August 29, 2013
Slide 2: Business Review Half 1 2013
Business Review Half 1 2013 CEO, Mr Eddy Duquenne 2
Slide 3: Key Financials
Key Financials €m H1 2013 H1 2012 Better / (Worse) Visitors (‘000) 8.369 9.414 (11,1)% Revenue 109,7 117,3 (6,5)% EBITDA 30,9 31,7 (2,4)% REBITDA € 3,66/Vis 30,7 € 3,41/Vis 32,1 (4,5)% REBITDA Margin 27,9% 27,4% EBIT 21,6 22,1 (2,5)% REBIT 21,0 22,2 (5,5)% REBIT Margin 19,1% 18,9% Net Earnings 14,3
Slide 4: Highlights
Highlights Revenue down by 6,5% Visitors –11,1%, due to bad weather, poor local film content and economic crisis in Spain Increase Box Office per visitor to € 7,19 Increase In-theatre Sales spend per visitor to € 2,82 Decrease in Sales and Events (-6,5%) Growth of Screen Advertising reve
Slide 5: Major events
Major events H1 2013 results reflect Strategic Pillars set out in 2008 Best Marketer Best Cinema Operator Best Property Manager Further development and implementation of Strategy in 2013 Positive result in proceedings with TPB (Belgium) Sale of land in Poland (surplus value of € 0,9 m)
Slide 6: Kinepolis complexes today
Kinepolis complexes today KINEPOLIS GROUP Complexes Screens Belgium 11 138 France 7 87 Spain 3 64 Poland * 1 20 Switzerland 1 8 Total 23 317 11 Market Share: Belgium: to be announced** France: 3,4% Spain: 4,7% 297 digital screens (100% digitised***) Of which 93 screens with 3D * Operated by IT
Slide 7: Revenue by country
Revenue by country Switzerland Poland Switzerland 2% Poland 2% Spain 12% Spain 15% France € 109,7 m € 117,3 m Belgium 26% Belgium France 57% 60% 26% H1 2012 H1 2013 29 augustus 2013 7
Slide 8: Revenue by activity
Revenue by activity Film Brightfish Distribution Film 4% Concessions 1% Brightfish Distribution 4% 4% 1% Concessions 4% B2B* B2B* 14% 14% Box Office Box Office € 109,7 m 55% € 117,3 m 56% In-theatre In-theatre Sales Sales 21% 22% H1 2012 H1 2013 * Including Cinema Screen Advertising 29 augustus 2013
Slide 9: Visitors & Movies
Visitors & Movies Visitors (000’s) H1 2013 % of Tot H1 2012 % of Tot % Δ YoY Belgium 4.051 48,4% 4.398 46,7% (7,9)% France 2.848 34,0% 3.106 33,0% (8,3)% Spain 1.398 16,7% 1.843 19,6% (24,1)% Switzerland 72 0,9% 67 0,7% 7,5% Total 8.369 100% 9.414 100% (11,1)% Top 5 Movies H1 2013 3D Visitors (000’s
Slide 10: Ratios
Ratios REBITDA Margin ROCE Gearing 35% 25% 120% 1,11 21,8% 19,8% 20,9% 100% 20% 30% 0,83 27,2% 27,9% 16% 27,0% 27,4% 80% 15% 0,67 12% 0,57 25% 60% 21,7% 0,43 10% 40% 20% 5% 20% 15% 0% 0% H1 H1 H1 H1 H1 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 H1* H1 *: 12 months rol
Slide 11: Net Financial Debt Evolution
Net Financial Debt Evolution €m 30 Jun 2013 31 Dec 2012 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 107,5 90,2 (17,3) (19,2)% Leverage ratio*: NFD / EBITDA 1,5 1,2 €m € 160 3,5 3,50 X € 140 3,0 € 120 2,5 € 100 2,0 € 80 1,5 € 60 1,0 € 40 € 20 0,5 €0 0,0 YE 07 YE 08 YE 09 YE 10 YE 11 H1 1
Slide 12: Line-up Half 2 2013
Line-up Half 2 2013 2D 3D Major sequels • Hunger Games: Catching Fire (Q4) • The Smurfs II (Q3) • Despicable Me II (Q3) • Monster University (Q3) • The Hobbit II: The Desolation of Smaug (Q4) New titles • The Lone Ranger (Q3) • World War Z (Q3) • The Wolverine (Q3) • Now you see me (Q3) • Elysium (Q
Slide 13: Financial Review Half 1 2013
Financial Review Half 1 2013 CFO, Mr Nicolas De Clercq 13
Slide 14: Revenue by country
Revenue by country €m H1 2013 % of Tot H1 2012 % of Tot % Δ YoY Belgium 65,4 59,6% 67,4 57,4% (2,9)% France 28,3 25,8% 29,9 25,5% (5,5)% Spain 13,8 12,6% 17,8 15,2% (22,8)% Switzerland & Poland 2,2 2,0% 2,2 1,9% 1,4% Total 109,7 100% 117,3 100% (6,5)% 14 29 augustus 2013
Slide 15: Evolution Box Office & ITS
Evolution Box Office & ITS Box office / Visitor ITS / Visitor 8,50 € 4,00 € +2,2% +7,4% 8,00 € 3,50 € 7,50 € 3,00 € 2,82 7,19 2,72 7,09 2,63 7,03 7,00 € 2,50 € 6,50 € 2,00 € 6,00 € 1,50 € 5,50 € 1,00 € H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 29 augustus 2013 15
Slide 16: Revenue by Business
Revenue by Business €m Cinema Revenue €m Sales & Events * €m Screen Advertising * 110 20 4,0 100 18 3,5 -7,9% +15,7% 90 16 -6,5% 3,0 14 80 12 2,5 70 10 2,0 60 8 1,5 50 6 1,0 40 4 30 2 0,5 20 0 0,0 H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 Visitors 9,4 10,4 8,4 * Excludi
Slide 17: Revenue by Business (2)
Revenue by Business (2) €m Concessions @ flat FX €m Film Distribution 4,8 2,0 -2,7% 4,3 1,6 -22,9% 3,8 1,2 3,3 0,8 2,8 0,4 2,3 1,8 0,0 H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 # 15 19 14 releases 29 augustus 2013 17
Slide 18: Revenue by activity waterfall
Revenue by activity waterfall -0,3% €m 140,0 -9,2% -4,5% -6,5% +15,7% -22,9% +7,6% -2,5% -6,5% 117,3 120,0 109,7 (6,1) (1,1) (0,9) +0,5 +0,4 (0,1) (0,0) 100,0 (0,3) 80,0 60,0 40,0 Business line Cinema 20,0 H1 2012 Box In-theatre Sales & Screen Film Brightfish Real Other & FX H1 2013 Office Sales Eve
Slide 19: Operating Costs
Operating Costs €m H1 2013 H1 2012 % Better / (Worse) Marketing & Selling Expenses (5,7) (6,0) 5,4% Administrative Expenses (7,1) (7,6) 7,2% Other Operating Income/(Costs) 1,6 0,8 96,1% Total Operating Costs (11,1) (12,8) 12,9% Non-Current 0,9 0,0 Current Operating Costs (12,0) (12,8) 6,4% 29 august
Slide 20: Non-Current items
Non-Current items €m H1 2013 H1 2012 Impacts Gain on sale land Poland 0,9 Transformation expenses (0,5) (0,4) Loss on disposal leasehold improvements (0,1) EBITDA former Brightfish offices EBITDA 0,3 (0,4) Write-down assets under construction (0,4) cancelled project Depreciation Depreciation (0,4) T
Slide 21: REBITDA by Country
REBITDA by Country REBITDA €m H1 2013 % of Total H1 2012 % of Total % Better/(Worse) Belgium 16,3 53,1% 16,2 50,6% 0,2% France 10,5 34,3% 10,3 32,0% 2,2% Spain 3,1 10,0% 4,9 15,1% (37,0)% Switzerland & Poland 0,8 2,6% 0,7 2,3 10,3% TOTAL 30,7 100% 32,1 100% (4,5)% H1 2013 H1 2012 REBITDA Margin % (o
Slide 22: REBITDA Margin
REBITDA Margin REBITDA € 3,13 € 3,57 € 3,41 € 4,03 € 3,66 /Visitor 38% 14.000 36% 11.643 12.000 10.385 34% 9.619 9.414 10.000 8.369 32% 30,5% 8.000 30% 29,2% 27,9% 6.000 28% 27,4% 27,0% 4.000 26% 24% 2.000 22% 0 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 Rebitda Margin Visitors ('000) 29 augustus 2013
Slide 23: Financial Result
Financial Result €m H1 2013 H1 2012 % Better/(Worse) Interest Expense (2,4) (2,2) (13,1)% Other (CNC, Tax Shelters, Derivatives, FX) (0,6) (0,3) (102,1)% Financial (Cost) / Income (3,1) (2,5) (24,3)% €m 0 -0,5 -1 -1,5 -2 -2,5 (2,5) -3 (0,2) (0,1) (0,3) +0,1 (3,1) (0,0) -3,5 H1 2012 Interest FX Write
Slide 24: Taxes
Taxes €m H1 2013 H1 2012 % Better /(Worse) Profit before Taxes 18,4 19,6 (5,9)% Taxes (4,1) (4,7) 11,6% Net Profit 14,3 14,9 (4,1)% Effective Tax Rate (‘ETR’) 22,4% 23,8% €m 0 ETR ETR ETR ETR 23,8% 23,9% 22,6% 22,4% -1 -2 -3 -4 -0,1 (4,0) (0,1) (4,1) +0,5 -5 (4,7) (4,7) +0,3 +0,0 -6 H1 2012 Non-curr
Slide 25: Free Cash Flow Half 1 2013
Free Cash Flow Half 1 2013 €m 35 29,1 (1,5) 30 (12,0) 25 20 (3,7) 15 (4,3) 10 7,6 5 0 EBITDA + Other Income Tax Working Capex - Maintenance Interest FCF Financial Result Paid Capital Paid H1 2013 (corrected for Movement non-cash items) 29 augustus 2013 25
Slide 26: Free Cash Flow H1 2013 vs H1 2012
Free Cash Flow H1 2013 vs H1 2012 €m 18 15,6 (3,1) 16 3,6 (2,7) 14 12,5 (1,7) 12 (0,9) (3,2) 10 7,6 8 6 4 2 0 Normalized Working Current FCF Cash EBITDA & Income Tax Working Capex - Interest FCF FCF Capital (one- Other Paid Capital Maintenance Paid H1 2013 H1 2012 timers) Financial Result 29 augustu
Slide 27: Capex – Depreciation
Capex – Depreciation Capex €m H1 2013 H1 2012 Digitiza Remode tion Belgium 2,9 3,4 ling 13% 33% 0,7 €m Mainten Mainten 1,8 €m H1 2013: France 1,6 0,7 ance H1 2012: ance 5,5 €m 67% Remod 5,7 €m 48% 3,7 €m 2,8 €m Spain 1,0 1,5 eling 39% 2,2 €m Other 0,0 0,1 TOTAL 5,5 5,7 €m Depreciations, Amortization
Slide 28: Net Financial Debt Evolution
Net Financial Debt Evolution €m 30 Jun 2013 31 Dec 2012 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 107,5 90,2 (17,3) (19,2)% Leverage ratio*: NFD / EBITDA 1,5 1,2 €m € 160 3,5 3,50 X € 140 3,0 € 120 2,5 € 100 2,0 € 80 1,5 € 60 1,0 € 40 € 20 0,5 €0 0,0 YE 07 YE 08 YE 09 YE 10 YE 11 H1 1
Slide 29: Balance sheet
Balance sheet €m 30 Jun % of 31 Dec % of €m 30 Jun % of 31 Dec % of 2013 Total 2012 Total 2013 Total 2012 Total Intangible assets 3,3 1% 3,3 1% Equity 97,3 32% 108,7 33% Goodwill 18,8 6% 18,8 6% LT financial debt 86,2 28% 81,7 25% Land & buildings 180,8 59% 184,6 56% Provisions(1) 3,0 1% 3,8 1% Othe
Slide 30: Shareholders
Shareholders 23/08/2013 19/01/2013 # Shares % # Shares % Total Shares outstanding 5.856.508 100 % 5.856.508 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 2.581.610 44,08% 2.581.610 44,08% Treasury shares (Own shares) 451.569 7,71% 311.885 5,33% Free Fl
Slide 31: Share Buyback Program
Share Buyback Program # shares €m Total shares outstanding as at 31/12/2012 5.856.508 Treasury shares (own shares) as at 31/12/2012 311.885 8,9 Share buy-back YTD 23/08/2013 146.884 15,2 Sale of shares (exercise stock options) (7.200) (0,1) Loss on sale of shares (0,1) Treasury shares (own shares) a
Slide 32: Financial Calendar
Financial Calendar Thursday 14/11/2013 Business update Q3 2013 Thursday 20/02/2014 Analysts and Press Meeting FY 2013 Thursday 15/05/2014 Business update Q1 2014 Friday 16/05/2014 Annual Shareholders’ Meeting 29 augustus 2013 32
Slide 33: Q&A Thank You.
Q&A Thank You. 29 augustus 2013 33
Slide 34: Annexes Financial Statements
Annexes Financial Statements Results Half 1 2013 34
Slide 35: Consolidated Income Statement
Consolidated Income Statement €m H1 2013 H1 2012 % Better / (Worse) Revenue 109,7 117,3 (6,5)% Cost of sales (77,0) (82,5) 6,6% Gross profit 32,7 34,9 (6,3)% Gross profit % 29,8% 29,7% Marketing & selling expenses (5,7) (6,0) 5,4% Administrative expenses (7,1) (7,6) 7,2% Other operating income and e
Slide 36: Current Income Statement
Current Income Statement €m H1 2013 H1 2012 % Better / (Worse) Revenue 109,7 117,3 (6,5)% Cost of sales (76,7) (82,3) 6,8% Gross profit 33,0 35,0 (5,8)% Gross profit % 30,1% 29,9% Marketing & selling expenses (5,7) (6,0) 5,1% Administrative expenses (6,9) (7,1) 4,0% Other operating income & expenses
Slide 37: Consolidated Balance Sheet (1)
Consolidated Balance Sheet (1) €m 30/06/2013 31/12/2012 % Better / (Worse) Intangible assets 3,3 3,3 1,0% Goodwill 18,8 18,8 0,0% Property, plant & equipment 209,8 214,4 (2,2)% Investment property 10,7 11,5 (6,8)% Deferred tax assets 0,9 0,7 23,9% Other receivables 13,6 13,2 3,7% Other financial ass
Slide 38: Consolidated Balance Sheet (2)
Consolidated Balance Sheet (2) €m 30/06/2013 31/12/2012 % Better / (Worse) Capital & Share premium 20,1 20,1 0,0% Consolidated reserves 79,2 89,8 (11,8)% Translation differences (2,0) (1,2) (71,5)% Equity attributable to equity holders of the parents 97,3 108,7 (10,5)% Non-controlling interests 0,0
Slide 39: Cash Flow Statement
Cash Flow Statement €m H1 2013 H1 2012 Better / (Worse) Cash flows from operating activities Profit before tax 18,4 19,6 (1,2) Adjustments for: Depreciation, amortization & provisions 9,4 9,6 (0,2) Government grants (0,3) (0,4) 0,1 Gains / losses on sale of PPE & financial assets (0,9) 0,0 (0,9) Fin
Slide 40: Free Cash Flow
Free Cash Flow €m H1 2013 H1 2012 Better / (Worse) Cash Flow before WC movements & tax paid 29,1 30,8 (1,7) Income taxes paid (1,5) (5,1) 3,6 Working capital (12,0) (6,2) (5,8) Capital exp – maintenance (3,7) (2,8) (0,9) Interest paid (4,3) (1,1) (3,2) Free cash flow 7,6 15,6 (8,0) Capital exp - dig