Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — H1 2014 Earnings Presentation
35 slides from Kinepolis Group Nv's earnings presentation, Aug 28, 2014
Slide 1: Kinepolis Group Results H1 2014
Kinepolis Group Results H1 2014 August 28, 2014
Slide 2: Business Review Half 1 2014
Business Review Half 1 2014 CEO, Mr Eddy Duquenne 2
Slide 3: Key financials
Key financials €m H1 2014 H1 2013 Better / (Worse) Visitors (‘000) 8.827 8.369 5,5% Revenue 115,1 109,7 4,9% % EBITDA 30,5 30,9 (1,5)% REBITDA € 3,56/Vis 31,4 € 3,66/Vis 30,7 2,6% REBITDA Margin 27,3% 27,9% EBIT 20,7 21,6 (3,8)% REBIT 21,3 21,0 1,5% REBIT Margin 18,5% 19,1% Profit 13,3 14,3 (7,0)% C
Slide 4: Highlights
Highlights Revenue up by 4,9% Visitors +5,5%, thanks to mild winter weather in Q1 and good international and local film content, partly offset by impact of World Cup football and nice summer weather in June Increase Box Office revenue (+4,3%) Increase In-theatre Sales (+3,6%) Increase Sale
Slide 5: Major events (1)
Major events (1) H1 2014 results reflect strategic pillars set out in 2008 Best Marketer Best Cinema Operator Best Property Manager Further development and implementation of strategy in 2014 First steps in expansion strategy H1 2014: Acquisition 2 cinemas in Spain (Alicante and Madrid)
Slide 6: Major events (2)
Major events (2) Strategic partnership Barco NEO-agreement Kinepolis Brussels Opening playground Madrid Real estate investment in Brussels Share split as from 1 July 2014 Each company share split into five Total shares outstanding from 5.582.654 to 27.913.270 shares Total treasury sh
Slide 7: Kinepolis complexes on 30/6
Kinepolis complexes on 30/6 KINEPOLIS GROUP Complexes Screens Belgium 11 138 France 7 87 Spain 5 91 Poland * 1 18 Switzerland 1 8 Total 25 342 11 Market Share: Belgium: to be announced** France: 3,1% Spain: 4,0% 5 324 digital screens (100% digitised***) Of which 96 screens with 3D*** * Operate
Slide 8: Kinepolis complexes today
Kinepolis complexes today KINEPOLIS GROUP Complexes Screens Belgium * 12 148 France 7 87 Spain 5 91 The Netherlands 9 46 Poland * 1 18 9 Switzerland 1 8 12 Total 35 398 Market Share: Belgium: to be announced** France: 3,1% 5 Spain: 4,0% 370 digital screens (100% digitised***) Of which 120 scre
Slide 9: Revenue by country
Revenue by country Switzerland Poland Switzerland 2% Poland 2% Spain 12% Spain 12% France € 115,1 m France € 109,7 m 26% Belgium 26% Belgium 60% 60% H1 2013 H1 2014 28 augustus 2014 9
Slide 10: Revenue by activity
Revenue by activity Film Brightfish Distribution Film 4% 3% Brightfish Distribution Concessions 4% 1% 4% Concessions 4% B2B* B2B* 14% 14% Box Office Box Office € 115,1 m 54% € 109,7 m 55% In-theatre In-theatre Sales Sales 22% 21% H1 2013 H1 2014 * Including Cinema Screen Advertising 28 augustus 2014
Slide 11: Visitors & Movies
Visitors & Movies Visitors (000’s) H1 2014 % of Tot H1 2013 % of Tot % Δ YoY Belgium 4.166 47,2% 4.051 48,4% 2,8% France 3.064 34,7% 2.848 34,0% 7,6% Spain 1.536 17,4% 1.398 16,7% 9,9% Switzerland 61 0,7% 72 0,9% (15,3)% Total 8.827 100% 8.369 100% 5,5% Top 5 Movies H1 2014 3D Visitors (000’s) Top 5
Slide 12: Ratios
Ratios REBITDA Margin ROCE Gearing 35% 30% 120% 25% 100% 0,97 30% 27,9% 21,8% 22,9% 22,5% 27,2% 0,83 27,0% 27,4% 27,3% 19,8% 0,84 20% 80% 16,0% 25% 0,57 15% 60% 0,43 20% 10% 40% 15% 5% 20% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 H1 H1 H1 H1 H1 H1* H1 *: 12 months r
Slide 13: Net Financial Debt Evolution
Net Financial Debt Evolution €m 30 Jun 2014 31 Dec 2013 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 97,9 88,1 (9,8) (11,1)% Leverage ratio*: NFD / EBITDA 1,3 1,2 €m € 140 3,5 3,50 X € 120 3,0 € 100 2,5 € 80 2,0 € 60 1,5 € 40 1,0 € 20 0,5 €0 0,0 YE 08 YE 09 YE 10 YE 11 YE 12 H1 13 YE 13
Slide 14: Line-up Half 2 2014
Line-up Half 2 2014 2D 3D Major sequels • The Expendables 3 (Q3) • How to Train Your Dragon 2 (Q3) • The Hunger Games: Mockingjay – Part 1 (Q4) • Transformers: Age of Extinction (Q3) • Step Up: All In (Q3) • Dawn of the Planet of the Apes (Q3) • The Hobbit: The Battle of the Five Armies (Q4) New tit
Slide 15: Financial Review Half 1 2014
Financial Review Half 1 2014 CFO, Mr Nicolas De Clercq 15
Slide 16: Revenue by country
Revenue by country €m H1 2014 % of Tot H1 2013 % of Tot % Δ YoY Belgium 69,5 60,3% 65,4 59,6% 6,2% France 29,6 25,7% 28,3 25,8% 4,5% Spain 14,1 12,3% 13,8 12,6% 2,7% Switzerland & Poland 1,9 1,7% 2,2 2,0% (13,2)% Total 115,1 100% 109,7 100% 4,9% 16 28 augustus 2014
Slide 17: Evolution Box Office & ITS
Evolution Box Office & ITS Box office* / visitor ITS / visitor 8,50 € 4,00 € 8,00 € -1,1% 3,50 € -1,7% 7,50 € 7,27 2,87 7,19 3,00 € 2,82 7,11 2,77 7,00 € 2,50 € 6,50 € 2,00 € 6,00 € 1,50 € 5,50 € 1,00 € H1 2013 H2 2013 H1 2014 H1 2013 H2 2013 H1 2014 * Box Office revenue after deduction of indirect
Slide 18: Revenue by Business (1)
Revenue by Business (1) €m Cinema Revenue €m Sales & Events * €m Screen Advertising * 120 20 5 +4,1% -9,8% 100 +1,6% 16 4 80 12 3 60 8 2 40 4 1 20 0 0 0 H1 2013 H2 2013 H1 2014 H1 2013 H2 2013 H1 2014 H1 2013 H2 2103 H1 2014 8,4 9,8 8,8 * Excluding Brightfish * Excluding Brightfish Visitors 28 augus
Slide 19: Revenue by Business (2)
Revenue by Business (2) €m Concessions @ flat FX €m Film Distribution 4,4 4,0 +0,1% 3,2 4,3 +241,5% 2,4 4,2 1,6 4,1 0,8 4,0 0,0 H1 2013 H2 2013 H1 2014 H1 2013 H2 2013 H1 2014 # 13 17 15 releases 28 augustus 2014 19
Slide 20: Revenue by activity waterfall
Revenue by activity waterfall €m 150 +4,3% +3,6% +1,6% -9,8% +241,5% -8,8% +x,x% +0,1% +4,9% 130 109,7 115,1 110 +2,3 +0,0 +0,2 +0,8 +0,2 (0,3) (0,4) +2,6 90 70 50 Business line Cinema 30 H1 2013 Box In-theatre Sales & Screen Film Brightfish Real Other & FX H1 2014 Office Sales Events Advertising Di
Slide 21: Operating Costs
Operating Costs €m H1 2014 H1 2013 % Better / (Worse) Marketing & Selling Expenses (6,3) (5,7) (10,8)% Administrative Expenses (7,7) (7,1) (8,7)% Other Operating Income/(Costs) 0,1 1,6 (91,7)% Total Operating Costs (13,8) (11,1) (24,0)% Non-Current (0,4) 0,9 Current Operating Costs (13,4) (12,0) (12
Slide 22: Non-Current items
Non-Current items €m H1 2014 H1 2013 Impacts Gain on sale land Poland 0,9 Transformation expenses (0,8) (0,5) Loss on disposal property, plant and (0,0) (0,1) equipment EBITDA Other costs (0,1) EBITDA (0,9) 0,3 Write-down disposed of fixed assets (0,2) (0,4) Depreciation Depreciation (0,2) (0,4) Tra
Slide 23: REBITDA by Country
REBITDA by Country REBITDA €m H1 2014 % of Total H1 2013 % of Total % Better/(Worse) Belgium 17,8 56,5% 17,0 55,6% 4,3% France 10,2 32,6% 10,1 32,8% 2,1% Spain 2,8 9,0% 2,8 9,1% 1,3% Switzerland & Poland 0,6 1,9% 0,8 2,5% (25,5)% TOTAL 31,4 100,0% 30,7 100% 2,6% H1 2014 H1 2013 REBITDA Margin % (on
Slide 24: REBITDA Margin
REBITDA Margin REBITDA € 3,41 € 4,03 € 3,66 € 4,46 € 3,56 /Visitor 38% 12.000 10.385 9.863 36% 9.414 10.000 8.369 8.827 34% 32,3% 8.000 32% 30,5% 30% 6.000 27,9% 28% 27,4% 27,3% 4.000 26% 2.000 24% 22% 0 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 Rebitda Margin Visitors ('000) 28 augustus 2014 24
Slide 25: Financial Result
Financial Result €m H1 2014 H1 2013 % Better/(Worse) Interest Expense (2,0) (2,4) 16,8% Other (CNC, Tax Shelters, Derivatives, FX) (0,6) (0,6) (8,1)% Financial (Cost) / Income (2,6) (3,1) 15,0% €m 0 -0,5 -1 -1,5 -2 -2,5 +0,2 (0,1) (2,6) -3 (3,1) +0,4 -3,5 H1 2013 Interest Write-down Other H1 2014 ta
Slide 26: Taxes
Taxes €m H1 2014 H1 2013 % Better /(Worse) Profit before taxes 18,1 18,4 (1,9)% Taxes (4,8) (4,1) (15,8)% Profit 13,3 14,3 (7,0)% Effective Tax Rate (‘ETR’) 26,4% 22,4% €m 0 ETR ETR ETR ETR 22,4% 22,6% 26,6% 26,4% -2 -4 0,1 (4,0) (4,1) (0,2) (0,3) (0,2) (4,8) (0,3) (5,0) +0,2 -6 H1 2013 Non-current
Slide 27: Free Cash Flow H1 2014
Free Cash Flow H1 2014 €m 35 29,5 (2,8) 30 (6,7) 25 (4,5) 20 (3,9) 15 11,6 10 5 0 EBITDA + Other Income Tax Working Capex - Maintenance Interest FCF Financial Result Paid Capital Paid H1 2014 (corrected for Movement non-cash items) 28 augustus 2014 27
Slide 28: Free Cash Flow H1: 2014 vs 2013
Free Cash Flow H1: 2014 vs 2013 €m 14 +3,4 (0,8) +0,4 11,6 12 +9,5 +0,4 (1,3) 10 +1,9 8 7,6 6 4 2 0 Normalized Working Current FCF EBITDA Income Tax Working Capex - Interest FCF FCF Capital (one- Paid Capital Maintenance Paid H1 2014 H1 2013 timers) 28 augustus 2014 28
Slide 29: Capex – Depreciation
Capex – Depreciation Capex €m H1 2014 H1 2013 Belgium 4,6 2,9 Remo- Mainte- Remo- deling deling nance 33% 40% France 1,4 1,6 3,0 €m H1 2014: 60% 1,8 €m H1 2013: 7,5 €m 4,5 €m 5,5 €m Mainte- Spain 1,4 1,0 nance 67% 3,7 €m Other 0,1 0,0 TOTAL 7,5 5,5 €m Depreciations, Amortizations & Provisions 0 -2 -
Slide 30: Net Financial Debt Evolution
Net Financial Debt Evolution €m 30 Jun 2014 31 Dec 2013 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 97,9 88,1 (9,8) (11,1)% Leverage ratio*: NFD / EBITDA 1,3 1,2 €m € 140 3,5 3,50 X € 120 3,0 € 100 2,5 € 80 2,0 € 60 1,5 € 40 1,0 € 20 0,5 €0 0,0 YE 08 YE 09 YE 10 YE 11 YE 12 H1 13 YE 13
Slide 31: Balance sheet
Balance sheet €m 30 Jun % of 31 Dec % of €m 30 Jun % of 31 Dec % of 2014 Total 2013 Total 2014 Total 2013 Total Intangible assets 3,3 1% 3,0 1% Equity 100,9 34% 104,7 34% Goodwill 19,3 7% 18,8 6% LT financial debt 78,9 26% 87,9 28% Land & buildings 184,3 62% 180,3 58% Provisions(1) 2,7 1% 3,0 1% Oth
Slide 32: Shareholders
Shareholders 1/07/2014 14/02/2014 # Shares % # Shares % Total shares outstanding 27.913.270 100 % 5.582.654 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 12.908.050 46,24% 2.581.610 46,24% Treasury shares (Own shares) 1.518.015 5,44% 303.603 5,44% Free
Slide 33: Share Buyback Program
Share Buyback Program # shares €m Total shares outstanding as at 31/12/2013 5.582.654 Treasury shares (own shares) as at 31/12/2013 300.523 8,8 Share buyback YTD 30/06/2014 3.080 0,4 Total shares outstanding as at 30/06/2014 5.582.654 Treasury shares (own shares) as at 30/06/2014 303.603 9,2 Dividen
Slide 34: Financial Calendar
Financial Calendar Friday 14/11/2014 Business update Q3 2014 Thursday 19/02/2015 Analyst and Press Meeting FY 2014 Wednesday 13/05/2015 Business update Q1 2015 Wednesday 13/05/2015 Annual Shareholders’ Meeting 28 augustus 2014 34
Slide 35: Q & A Thank You.
Q&A Thank You. 28 augustus 2014 35