Slide 1: Kinepolis Group Results H1 2022 Analyst Meeting
Kinepolis Group Results H1 2022 Analyst Meeting August 18, 2022 KINEPOLIS GROUP
Slide 2: Business review H1 2022
Business review H1 2022 CEO, Mr. Eddy Duquenne KINEPOLIS GROUP y
Slide 3: Strong recovery of operational result and free cash flow
❑ Strong recovery of operational result and free cash flow ❑ 77,2% of 2019 attendance in H1 2022, resulting in 93,5%(1) of H1 2019 revenue ▪ Q1 still impacted by closures & restrictive measures ▪ Attendance driven by successful blockbusters, essentially in May and June ▪ June: 107,0% visitors vs 201
Slide 4: Strategic pillars and highlights H1 2022
❑ Strategic pillars ▪ Best Marketer ▪ Best Cinema Operator ▪ Best Real Estate Manager ❑ Highlights H1 2022 ▪ Q1 still impacted by closures & restrictive measures ▪ Further roll-out of premium products in Europe, Canada and preparation for the United States ▪ 200 laser upgrades in 2022 ▪ Entrepreneur
Slide 5: Appointment of Mr. Jeroen Mouton as CFO
❑ Appointment of Mr. Jeroen Mouton as CFO of Kinepolis Group, effective from 15 November 2022 5
Slide 6: Investments in a premium moviegoing experience
❑ Investments in a premium moviegoing experience ▪ Introduction of ‘Premiere Seats’ in 10 additional Landmark cinemas (CA) ▪ Complete renovation of Landmark St. Catharines, Pen Centre (CA) ▪ Preparation to introduce ‘VIP seats’ and Laser ULTRA in USA in Q3 2022 St. Catharines, Pen Centre (CA) ❑ Agre
Slide 7: New cinema project: Metz Amphithéâtre
Country Project Name # Screens Est. Visitors / Year Estimated opening France Metz Amphithéâtre 8 0,3 mio Q4 2022 Total 8 0,3 mio 7
Slide 8: Complexes in ownership by country
11 3 Complexes in Ownership Countries Complexes Screens # %Visitors Belgium 11 138 10 98% France 14 156 9 79% Canada 40 325 4 1% Spain 10 +2*** 157 +20*** 3 34% The Netherlands 20 147 13 67% United States 10 164 7 71% Luxembourg 3 22 1 68% Switzerland 1 8 1 100% Poland * 1 18 1 n/a Total 110 1 135 4
Slide 9: H1 2022 key financials
€m H1 2022 H1 2021 % Better / -Worse H1 2019 Revenue 228,0 36,8 519,9% 238,1 Visitors (‘000) 13 668 2 188 524,7% 17 713 EBITDA 68,2 -7,1 1 062,2% 69,2 EBITDA margin € 4,99/Vis 29,9% € -3,24/Vis -19,3% 4 920 bps € 3,91/Vis 29,1% EBITDAL 50,4 -24,0 309,9% 55,3 EBITDAL margin € 3,68/Vis 22,1% € -10,97/
Slide 10: Quarterly results Q1 and Q2 2022 vs 2019
€m Q1 2022 Q2 2022 H1 2022 Q1 2019 Q2 2019 H1 2019 Revenue 94,4 133,6 228,0 115,7 122,4 238,1 Visitors (‘000) 5 936 7 732 13 668 8 820 8 893 17 713 EBITDA 20,7 47,6 68,2 33,1 36,1 69,2 EBITDA margin € 3,48/Vis 21,9% € 6,15/Vis 35,6% € 4,99/Vis 29,9% € 3,76/Vis 28,7% € 4,06/Vis 29,5% € 3,91/Vis 29,1%
Slide 11: Results corrected for one-off Covid-19 items
€m Q1 2022 Q2 2022 H1 2022 Q1 2019 Q2 2019 H1 2019 Revenue 95,4 127,2 222,6 115,7 122,4 238,1 Visitors (‘000) 5 936 7 732 13 668 8 820 8 893 17 713 EBITDA 18,6 37,9 56,5 33,1 36,1 69,2 EBITDA margin € 3,13/Vis 19,5% € 4,90/Vis 29,8% € 4,13/Vis 25,4% € 3,76/Vis 28,7% € 4,06/Vis 29,5% € 3,91/Vis 29,1%
Slide 12: Visitors by country
Visitors (000's) H1 2022 % of Tot H1 2021 % of Tot % ∆ YoY Belgium 2 629 19,1% 230 10,5% 1 043,0% France 2 418 17,7% 368 16,8% 557,1% Canada 3 618 26,5% 231 10,6% 1 466,2% Spain 1 582 11,6% 487 22,3% 224,8% The Netherlands 1 474 10,8% 188 8,6% 684,0% United States 1 608 11,8% 579 26,5% 177,7% Luxemb
Slide 13: Revenue split by country
Luxembourg 2,9% Switzerland Switzerland Poland Luxembourg Poland USA 0,9% 5,4% Belgium 1,4% 10,4% 21,5% Belgium 27,5% USA The Netherlands 20,8% 11,7% € 228,0m € 36,8m France 12,9% Spain 7,9% France The Netherlands 13,8% 9,2% Canada Canada Spain 15,0% 24,9% 13,8% H1 2022 H1 2021 13
Slide 14: Revenue split by business line
Brightfish 0,9% Brightfish Real Estate Film Distribution 0,9% Film Distribution 2,6% 0,7% Real Estate 2,3% B2B * 11,5% 11,8% B2B * 8,7% € 228,0m € 36,8m Box Office 46,9% Box Office 52,9% In-theatre Sales 31,1% In-theatre Sales 29,6% H1 2022 H1 2021 * Including Cinema Screen Advertising * Including C
Slide 15: Top 5 movies 2022 and 2021
Top 5 Movies 2022 3D Visitors (000's) Top 5 Movies 2021 3D Visitors (000's) 1. Top Gun: Maverick 1 279 1. The Conjuring 3 239 2. Doctor Strange in the Multiverse of Madness ✓ 1 093 2. A Quiet Place Part II 149 3. Spider-Man: No Way Home ✓ 1 049 3. Cruella 149 4. The Batman 987 4. Godzilla vs. Kong ✓
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Slide 20: Financial Review
| Financial Review KINEPOLIS GROUP
Slide 21: Revenue, EBITDAL and net financial debt evolution
❑ Revenue of € 228,0 million with 13,7 million visitors ▪ 93,5% of revenue H1 2019, corrected for one-off Covid-19 related items ▪ 77,2% of visitors H1 2019 ❑ EBITDAL of € 50,4 million ❑ NFD excl. lease liabilities decreased from € 474,5 million per 31/12/2021 to € 450,0 million per 30/06/2022 or €
Slide 22: Cash and credit lines
❑ YE 2021 ended with € 199,8 million cash + credit lines ❑ H1 2022 ended with € 163,2 million cash + credit lines. Difference explained by: ▪ € +25,7 m free cash flow, of which: ▪ € +45,4 m from operations and payment of lease liabilities ▪ € -10,7 m working capital ▪ € -4,6 m interests paid ▪ € -3,
Slide 23: Revenue by country
Revenue €m H1 2022 % of Tot H1 2021 % of Tot % ∆ YoY % ∆ Y Vis H1 2019 Belgium 62,8 27,5% 7,9 21,5% 696,4% 1 043,0% 70,0 France 31,4 13,8% 4,7 12,9% 561,0% 557,1% 38,2 Canada 56,7 24,9% 5,5 15,0% 925,6% 1 466,2% 63,4 Spain 18,1 7,9% 5,1 13,8% 255,1% 224,8% 27,5 The Netherlands 26,6 11,7% 3,4 9,2% 68
Slide 24: Box office revenue
52,9% OF REVENUE €m Box Office Box office* / Visitor 9,00 € 8,82 125 +11,7% 8,50 € 7,89 100 8,00 € 7,67 7,43 7,50 € 7,29 75 7,00 € + 598,0% 120,5 50 6,50 € 6,00 € 25 5,50 € 17,3 0 5,00 € H1 2021 H1 2022 H1 H1 H1 H1 H1 2018 2019 2020 2021 2022 * Box Office revenue after deduction of indirect taxes 24
Slide 25: In-theatre sales
31,1% OF REVENUE In-theatre Sales ITS* / Visitor €m 6,00 € 5,50 € 75 +20,3% 5,09 5,00 € 4,50 € 4,23 3,98 4,00 € 3,81 50 3,63 3,50 € + 551,4% 70,9 3,00 € 25 2,50 € 2,00 € 10,9 1,50 € 0 1,00 € H1 2021 H1 2022 H1 H1 H1 H1 H1 2018 2019 2020 2021 2022 * Excl. ITS Delivery sales 25
Slide 26: Sales & Events and Screen Advertising
11,8% OF REVENUE €m Sales & Events (10,2%) €m Screen Advertising (1,6%) 25 4 20 3 15 + 753,5% 2 +676,2% 23,2 3,8 10 1 5 2,7 0,5 0 0 H1 2021 H1 2022 H1 2021 H1 2022 +11,3% compared to H1 2019 -27,5% compared to H1 2019 * Excluding Brightfish 26
Slide 27: B2B revenue
2,6% OF REVENUE €m 6 +43,2% 4 4,2 6,0 2 0 H1 2021 H1 2022 -12,6% compared to H1 2019 27
Slide 28: Brightfish revenue
0,9% OF REVENUE €m 3 2,1 2 0,6 1 +517,8% 1,4 0,3 0,1 0,3 0 H1 2021 H1 2022 Screen Advertising Sales & Events -57,4% compared to H1 2019 • Screen Advertising: -44,3% • Sales & Events: -72,7% 28
Slide 29: Film distribution revenue
0,7% OF REVENUE €m 2 +83,5% 1 0,9 1,6 0 H1 2021 H1 2022 +16,3% compared to H1 2019 29
Slide 30: Operating costs
€m H1 2022 H1 2021 % Better / -Worse H1 2019 Marketing and selling expenses -9,4 -4,5 -109,5% -11,7 Administrative expenses -13,2 -9,8 -34,4% -14,2 Other operating income / cost 3,6 10,3 -64,8% 0,6 Operating Costs -19,0 -4,0 -372,1% -25,3 30
Slide 31: EBITDA and EBITDAL by country
EBITDA - €m H1 2022 % of Total H1 2021 % of Total % Better / -Worse % ∆ Y Vis Belgium 15,7 23,0% -8,4 118,7% 286,4% 1 043,0% France 10,7 15,7% 1,1 -15,7% 864,9% 557,1% Canada 17,7 25,9% 2,2 -30,9% 707,3% 1 466,2% Spain 4,4 6,4% 0,1 -2,1% 2 896,0% 224,8% The Netherlands 9,9 14,5% -2,6 36,6% 481,1% 68
Slide 32: Depreciation, amortisation and provisions
€m H1 2022 H1 2021 % Better / -Worse Depreciation, amortisation and provisions -26,3 -27,1 3,2% Depreciations on right-of-use assets -14,1 -13,7 -2,8% Total depreciation, amortization and provisions -40,4 -40,9 1,2% €m -5 -15 -25 -35 0,9 -40,9 -0,4 -40,4 -45 H1 2021 Right-of-Use Normal H1 2022 Asset
Slide 33: Financial result
€m H1 2022 H1 2021 % Better / -Worse Interest expense -7,45 -7,63 2,4% Financial charges IFRS 16 -5,21 -5,20 -0,2% FX -0,66 0,41 -263,3% Other (CNC, bank charges,...) -2,24 -0,70 -220,1% Financial (Cost) / Income -15,57 -13,13 -18,6% €m 0 -5 -10 0,18 -13,13 -0,01 -15 -2,61 -15,57 -20 H1 2021 Interes
Slide 34: Taxes and result
€m H1 2022 H1 2021 % Better / -Worse Result before taxes 12,3 -61,1 120,1% Taxes -3,2 15,3 -121,1% Result 9,1 -45,8 119,8% Effective Tax Rate ('ETR') 26,3% 25,1% 117 bps €m 20 15,3 15 10 ETR 25,1% 5 0 ETR 26,3% -18,4 -0,1 -3,2 -5 H1 2021 Higher pre-tax result Other H1 2022 34
Slide 35: EBITDAL to result bridge H1 2022
€m 68,2 17,9 70 60 50,4 50 40 27,9 30 -40,4 20 9,1 10 -15,6 -3,2 0 EBITDAL Costs related to EBITDA Depr, Amort, Prov EBIT Financial result Taxes Result H1 2022 lease contracts H1 2022 H1 2022 H1 2022 35
Slide 36: Capital expenditures
€m H1 2022 H1 2021 H1 2019 Belgium €m H11,7 2022 0,8 H1 2021 7,6 €m France 0,8 0,3 4,2 8 Belgium 1,7 0,8 Canada 2,1 0,2 6,8 6,2 France 0,8 0,3 Spain 0,7 0,2 1,7 6 Canada 2,1 0,2 TheSpain Netherlands 0,2 0,7 0,3 0,2 2,3 3,8 4 United TheStates Netherlands 0,8 0,2 0,1 0,3 2,7 Luxembourg United States 0
Slide 37: Free cash flow bridge
€m 70 63,3 60 -0,6 50 -10,7 -3,8 40 -4,6 30 25,7 -17,9 20 10 0 Cash flow before WC Income Working Capex - Interest Payment of lease FCF H1 2022 movements and Tax Taxes Capital Maintenance Paid liabilities paid 37
Slide 38: Free cash flow by quarter
Q1 2022 Q2 2022 H1 2022 H1 2019 OCF after lease payments 10 743 34 645 45 387 54 166 Working capital -5 583 -5 126 -10 709 -3 747 Income Taxes Paid -525 -38 -563 -6 443 Capital Exp – Maintenance -946 -2 896 -3 842 -12 372 Interest Paid -3 337 -1 215 -4 552 -6 568 Free Cash Flow 353 25 369 25 722 25
Slide 39: Net financial debt evolution
€m H1 2022 YE 2021 Better/-Worse NFD Evolution Net Financial Debt (NFD) excl. lease liabilities 450,0 474,5 24,4 5,2% Net Financial Debt (NFD) incl. lease liabilities 852,9 865,0 12,1 1,4% Leverage ratio*: NFD / EBITDA 5,76 11,90 Leverage ratio*: NFD excl. lease liabilities / EBITDAL 3,99 12,32 €m -
Slide 40: 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 * 120.000.000 125.000.000 Priv. Plac. 8Y (Dec) Bullet loan 60.000.000 100.000.000 80.000.000 Priv Plac. 10Y 75.000.000 65.000.000 50.000.000 Term loan (yearly) Bond 8Y 25.000.000 Priv Plac. 10Y (Jan) 10.15
Slide 41: Balance sheet
€m 30/06/2022 % of Total 31/12/2021 % of Total €m 30/06/2022 % of Total 31/12/2021 % of Total Intangible assets 11,2 1,0% 11,1 0,9% Share capital & share premium 20,1 1,7% 20,1 1,7% Goodwill 176,3 15,0% 169,5 14,2% Consolidated reserves 110,9 9,5% 100,7 8,4% Property, plant & equipment 493,0 42,0% 4
Slide 42: Shares and shareholders
16/08/2022 14/02/2022 # Shares % # Shares % Total shares outstanding 27 365 197 100% 27 365 197 100% Reference Shareholders & Free Float # Shares % # Shares % Kinehold Bis, Pentascoop and Mr. Joost Bert 13 092 268 47,84% 13 192 268 48,21% Treasury shares 397 396 1,45% 407 447 1,49% Free Float 13
Slide 43: Financial calendar
Thursday 27/10/2022 Business update Q3 2022 Thursday 16/02/2023 Annual results 2022 Press & Analyst Meeting Thursday 27/04/2023 Business update Q1 2023 Wednesday 10/05/2023 Annual Shareholders’ Meeting Kinepolis Group 43
Slide 44: Thank you - Q&A
Q&A Thank you KINEPOLIS GROUP y
Slide 45: Annexes Financial Statements
Annexes 7 Financial Statements Results H1 2022 KINEPOLIS GROUP
Slide 46: Expansion projects realized: Spain and The Netherlands
Country Project Name # Complexes # Screens Est. Visitors / Year Realized 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 - Barcelona 1 12 0,6 mio Q4 2022 Marbella 1 8 0,4 mio Q4 2022 The Netherlands Wolff Bioscopen
Slide 47: Expansion projects realized: France, Canada, USA
Country Project Name # Complexes # Screens Est. Visitors / Year Realized 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 (greenfield) 1 10 0,5 mio Q3 2018 Servon (greenfield)
Slide 48: Consolidated income statement
€m H1 2022 H1 2021 % Better / -Worse Revenue 228,0 36,8 519,9% Cost of sales -181,2 -80,7 -124,5% Gross result 46,8 -43,9 206,6% Gross result % 20,5% -119,4% Marketing and selling expenses -9,4 -4,5 -109,5% Administrative expenses -13,2 -9,8 -34,4% Other operating income and expenses 3,6 10,3 -64,8%
Slide 49: Consolidated assets
€m 30/06/2022 31/12/2021 Evolution Intangible assets 11,2 11,1 0,5% Goodwill 176,3 169,5 4,0% Property, plant & equipment 493,0 498,1 -1,0% Right-of-use assets 364,9 353,3 3,3% Investment property 17,1 17,4 -1,6% Deferred tax assets 25,9 23,8 8,8% Other receivables 6,5 6,4 2,1% Non-current assets 1
Slide 50: Consolidated equity and liabilities
€m 30/06/2022 31/12/2021 Evolution Share capital & share premium 20,1 20,1 0,0% Consolidated reserves 110,9 100,7 10,1% Translation reserve 18,9 -0,1 35 190,7% Equity attributable to the owners of the Company 149,9 120,7 24,2% Non-controlling interests -0,07 -0,08 -15,2% Total equity 149,9 120,6 24,
Slide 51: Consolidated cash flow statement
€m H1 2022 H1 2021 Better / -Worse Result before tax 12,3 -61,1 73,4 Adjustments for: Depreciation, amortisation & provisions 40,4 40,9 -0,5 Government grants -0,4 -0,7 0,3 Financial result & share based payments 13,8 12,8 1,0 Forgiveness of lessee's lease payments -2,8 -7,4 4,6 Cash generated from
Slide 52: Free cash flow reconciliation
€m H1 2022 H1 2021 Better / -Worse Cash Flow before WC movements & tax paid 63,3 -15,5 78,8 Income taxes (paid) / received -0,6 -0,7 0,1 Working capital -10,7 7,3 -18,0 Capital exp – maintenance -3,8 -0,7 -3,1 Interest (paid) / received -4,6 -4,8 0,3 Payment of lease liabilities (capital portion + i
Slide 53: Glossary of alternative performance measures
The glossary below contains Alternative Performance Measures (APMs) that are aimed to improve the transparency of the financial information. For the full glossary, we refer to the corporate website of Kinepolis. ❑ EBITDAL: EBITDA less costs related to lease contracts (excl. rent abatements and commo
Slide 54: Kinepolis