Ratos Ab Class A · OMXSTO:RATO_A

Ratos Ab Class A — Finnkino — Investor Day (March 2013)

18 slides from Ratos Ab Class A's investor day presentation, Mar 14, 2013

  1. Slide 1: An introduction to Finnkino

    DRAFT – 23.10.2010 Ratos Capital Markets Day 14th March 2013 An introduction to Finnkino Liisi Jauho, CEO

  2. Slide 2: A leading cinema chain in Finland and the Baltics

    A leading cinema chain in Finland and the Baltics  Founded in 1986, Finnkino is the leading cinema chain in Finland and in the Baltic countries.  In Finland the company operates under the Finnkino brand and has 14 cinemas and 88 screens in 11 cities.  In the Baltics under the Forum Cinemas brand

  3. Slide 3: Finnkino in numbers 2009–2012

    Finnkino in numbers 2009–2012 Net sales (EUR million) Admissions (EUR million) 120 12 10,5 99,0 9,5 9,9 9,9 100 88,6 88,5 10 83,0 80 8 60 6 40 4 20 2 0 0 2009 2010 2011 2012 2009 2010 2011 2012 EBITDA (EUR million) Number of employees 25 22,4 1 000 829 855 794 762 20 800 15,9 16,2 14,5 15 600 10 400

  4. Slide 4: Finnkino by country (2012)

    Finnkino by country (2012) Sales (%) Number of employees LIT 400 376 11% 300 LAT 200 8% 137 138 111 FIN 100 EST 73% 8% 0 Finland Estonia Latvia Lithuania Admissions (EUR million) Market position (%) 7 100 5,8 79 6 80 70 5 4 60 50 48 3 2,4 40 2 1,3 1,1 20 1 0 0 Finland Estonia Latvia Lithuania Finlan

  5. Slide 5: Finnkino’s sources of income (2012)

    Finnkino’s sources of income (2012) Sales by segment (%) Average ticket price (EUR) Advertising Other 14,00 12,42 Sales Sales Distribution 2% 5% 12,00 10,81 6% 10,00 8,90 Concession 8,00 Sales 6,00 18% 3,90 4,10 4,00 3,40 Box Office 2,00 69% 0,00 Finland, Estonia, Latvia, Lithuania, Finnkino Group’s

  6. Slide 6: Box office sales

    Box office sales  Box office revenues is the largest source of income (69% in 2012)  Major studios have important role  In 2012, local movies represented 28% of admissions in Finland Market share of domestic film, Finnkino’s countries vs. Europe (%) 30,0 28,0 24,5 25,0 22,0 Finland 19,8 20,0 17,2

  7. Slide 7: Online becoming extremely important

    Online becoming extremely important Share of ticket sales  In the beginning of 2013 53% of all in Finland 2012 (%) the tickets were booked or bought online B-to-B sales  www.finnkino.fi ranked 8% among top 25 sites in Finland (*TNS Metrix) Retail partners Box 14% office 32%  Average online purcha

  8. Slide 8: Concession sales

    Concession sales  Concession sales has an increasingly important role as a revenue source (18% in 2012)  Concession sales concept developed to maximize spend: product development, customer flow, store renewals, etc. Concession sales per admission (EUR) 2,50 1,93 1,94 2,00 1,79 1,68 1,65 1,70 1,50

  9. Slide 9: Concession sales

    Concession sales Confidential 9

  10. Slide 10: Trends within the cinema business

    Trends within the cinema business  Digitalization – old news, but still processing  Finnkino units in Finland, Estonia and Latvia are fully digitalised, Lithuania will continue Q3/2013  Efficiency, cost savings, flexibility, quality  Virtual Print Fee (“VPF”) agreement  New technology  3D, Hig

  11. Slide 11: Strategic objectives

    Strategic objectives  Objectives  Leading cinema chain in existing markets  Further growth and profitability in the existing markets  Develop concession concept & sales channels  Increasing advertising sales  Enhance organizational resources and competencies  Planned new units  Finland: Kuop

  12. Slide 12: Stay tuned!

    Stay tuned! Contacts: Liisi Jauho, CEO, Finnkino liisi.jauho@finnkino.fi www.finnkino.fi Confidential 12

  13. Slide 13: Finnkino

    Finnkino Jan Pomoell 14 March 2013 1

  14. Slide 14: Ratos’s investment in Finnkino

    Ratos’s investment in Finnkino  Acquired from Sanoma in April 2011 - EV EUR 96.4m - Ratos investment EUR 45.1m - Ratos owns 98%  Book value 31 December 2012: SEK 445m  Ratos team - Jan Pomoell (responsible for holding) - Lina Arnesson 2

  15. Slide 15: Finnkino 2010-2012

    Finnkino 2010-2012 140 25 22.6 120 20 18.3 99 17.9 100 89 89 15 80 60 10 40 5 20 0 0 2010PF 2011PF 2012ACT Net sales (mEUR) EBITDA margin (%) 3

  16. Slide 16: Investment attractions

    Investment attractions  Stable, uncyclical market  Strong market positions  Relatively undeveloped markets with room for growth through new cinemas  Potential to increase concession and advertising sales  Normalization of the profits in the Baltics 4

  17. Slide 17: Key value creation opportunities going forward

    Key value creation opportunities going forward  Lower film rent  New distribution channels  Continued turn-around in the Baltics  Continued fine-tuning of the operations  Re-financing and sale-and-leasebacks of real estate 5

  18. Slide 18: RATOS

    RATS

Finnkino — Investor Day (March 2013) on 6ix