Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — H1 2024 Earnings Presentation
64 slides from Kinepolis Group Nv's earnings presentation, September 2024
Slide 1: Kinepolis Group Results H1 2024
Kinepolis Group Results H1 2024 Roadshow Sept. 2024
Slide 2: Slide 2
Slide 3: Business review H1 2024
Business review H1 2024 CEO, Mr Eddy Duquenne
Slide 4: Slide 4
Slide 5: 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 6: 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 7: 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 8: 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 9: 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 10: CineEurope 2024 Milestone Award
TO CHANGE CineEurope 2024 Milestone Award Landmark Premier Seats (CA) 8
Slide 11: Kinepolis Innovation Awards 2024
Kinepolis Innovation Awards 2024 9
Slide 12: Renovation Kinepolis Amnéville (FR)
TO CHANGE Renovation Kinepolis Amnéville (FR) 10
Slide 13: New CFO and director appointments
• 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 12
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 13
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 14
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 complexes and 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
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 19
Slide 22: Revenue split by category
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 20
Slide 23: Movie line-up
International Movie line-up 21
Slide 24: Movie line-up
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 22
Slide 25: Movie line-up
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 MOANA 2 CONCLAVE RED ONE SONIC 3 NOSFERATU KRAVEN THE HUNTER 23
Slide 26: Slide 26
Slide 27: Financial review H1 2024
Financial review H1 2024
Slide 28: Revenue of €242.8 million
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 29: Net financial debt and covenants
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 30: Box Office
€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 27
Slide 31: In-theatre Sales
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 28
Slide 32: Sales & Events, 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 29
Slide 33: 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 30
Slide 34: 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 31
Slide 35: 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% 32 32
Slide 36: 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 37: 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 38: 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 39: 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 36
Slide 40: 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 41: 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 42: 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 39
Slide 43: 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 44: Net financial debt evolution
€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 45: 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 46: 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 47: Shares and shareholders
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 48: Financial calendar
Thursday Business Update Q3 2024 24/10/2024 Thursday Annual Results 2024 20/02/2025 Press and Analyst Meeting Financial calendar Wednesday 14/05/2025 General Meeting 45
Slide 49: Financial Statements Annexes
Financial Statements Annexes
Slide 50: Acquisitions and greenfields 2014-2024
Country Project Name # Complexes # Screens Est. Visitors / Year Realised/Closed 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 0,4 mio Q4 2022 The Netherlands Wolff Bioscope
Slide 51: Acquisitions and greenfields 2014-2024
Country Project Name # Complexes # Screens Est. Visitors / Year Realised/Closed NL, LUX, FR Utopolis Group 9 63 2,4 mio Q4 2015 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
Slide 52: Acquisitions and greenfields 2014-2024
Country Project Name # Complexes # Screens Est. Visitors / Year Realised/Closed Calgary Market Mall (greenfield) 1 5 0,3 mio Q4 2019 Regina (greenfield) 1 8 0,4 mio Q4 2019 Victoria -1 -4 Q3 2020 Dawson Creek -1 -1 Q2 2021 Airdrie -1 -2 Q2 2021 Yukon -2 -4 Q3 2021 Selkirk -1 -1 Q3 2021 Winnipeg Town
Slide 53: Adjustments to EBITDA and result
€k H1 2024 H1 2023 EBITDA -83,3 13,6 Income tax expense 20,8 -3,4 Net impact of adjustments -62,4 10,2 50
Slide 54: Adjusted income statement
INTERNAL €m H1 2024 H1 2023 % Better / -Worse Revenue 242,8 285,3 -14,9% Cost of Sales -201,4 -216,1 6,8% Gross result 41,4 69,2 -40,1% Gross result % 17,1% 24,2% Marketing and selling expenses -12,5 -12,6 1,3% Administrative expenses -14,8 -14,0 -5,5% Other operating income and expenses 0,3 0,6 -38
Slide 55: Assets
€m 30/06/2024 31/12/2023 Evolution Intangible assets 10,5 11,0 -4,2% Goodwill 176,3 174,8 0,9% Property, plant & equipment 456,1 462,4 -1,4% Right-of-use assets 320,0 318,5 0,5% Investment property 15,4 15,4 -0,4% Deferred tax assets 16,8 16,1 4,0% Non-current tax assets 1,7 1,7 Other receivables 5,
Slide 56: Equity and liabilities
€m 30/06/2024 31/12/2023 Evolution Share capital & share premium 20,1 20,1 Consolidated reserves 156,3 171,5 -8,9% Translation reserve 6,1 2,2 174,4% Equity attributable to the owners of the Company 182,4 193,8 -5,9% Non-controlling interests 0,0 -100,0% Total equity 182,4 193,8 -5,9% Loans and borr
Slide 57: Segment income statement
Others The United Not €m Belgium France Canada Spain Luxembourg (Poland, TOTAL Netherlands States allocated Switzerland) Segment revenue 59,1 38,3 58,1 19,9 25,1 27,2 8,6 2,3 238,6 Intersegment revenue 4,2 0,0 4,2 Revenue 63,3 38,3 58,1 19,9 25,1 27,2 8,6 2,3 242,8 Cost of sales -46,4 -30,5 -52,5 -1
Slide 58: Segment assets
Others The United Not €m Belgium France Canada Spain Luxembourg (Poland, TOTAL Netherlands States allocated Switzerland) Intangible assets 4,8 0,9 2,8 0,3 0,1 1,6 0,0 10,5 Goodwill 6,6 15,9 33,9 22,0 34,1 51,6 5,8 6,5 176,3 Property, plant and 54,1 83,7 66,3 44,9 115,8 72,4 11,1 7,7 456,1 Right-of-u
Slide 59: Segment equity and liabilities
Others The United Not €m Belgium France Canada Spain Luxembourg (Poland, TOTAL Netherlands States allocated Switzerland) Share capital and share premium 20,1 20,1 Consolidated reserves 156,3 156,3 Translation reserve 6,1 6,1 Equity attributable to the owners of the 182,4 182,4 Total equity 182,4 182
Slide 60: Capital expenditure by segment
Others The United Not €m Belgium France Canada Spain Luxembourg (Poland, TOTAL Netherlands States allocated Switzerland) CAPITAL EXPENDITURE 4,3 4,6 3,6 1,9 0,9 1,7 0,6 0,1 17,6 57
Slide 61: Depreciation by segment
Others The United €m Belgium France Canada Spain Luxembourg (Poland, TOTAL Netherlands States Switzerland) Depreciations 4,4 4,7 5,8 2,4 4,1 4,0 0,7 0,2 26,3 Depreciations on right-of-use 1,2 1,3 6,8 1,6 1,3 1,6 0,2 14,1 assets Provisions and amortisations -0,1 -0,4 0,1 0,0 0,0 0,0 -0,1 -0,5 Others
Slide 62: Glossary
Adjusted operating result Operating result after elimination adjustments; is used to reflect the operating result from normal operating activities. The glossary contains Alternative Performance Measures (APMs) that are aimed to improve the transparency of the financial information. For the full glos
Slide 63: Glossary
EBITDA Operating result + depreciations + amortisations + impairments + movements in provisions EBITDAL EBITDA less costs related to lease contracts (excl. rent abatements and common charges) Glossary Operating result (EBIT) Gross result – marketing and selling expenses ‐ administrative expenses + o
Slide 64: Thank you
KINEPOLIS