Kinepolis Group NV · EURONEXT:KIN
Kinepolis Group NV — H1 2010 Earnings Presentation
32 slides from Kinepolis Group NV's earnings presentation, Aug 26, 2010
Slide 1: Kinepolis Group Results Half 1 – 2010
Kinepolis Group Results Half 1 – 2010 Analyst & Press Meeting 26/08/2010 1
Slide 2: Business Review H1 2010
Business Review H1 2010 CEO, Mr Eddy Duquenne Analyst & Press Meeting 26/08/2010 2
Slide 3: Key Financials
Key Financials €m H1 2010 H1 2009 Better / (Worse) Visitors (‘000) 10.319 9.843 4,8% Revenue , 112,9 100,7 , 12,1% , EBITDA 31,5 21,5 46,7% REBITDA 30,7 21,9 40,3% REBITDA Margin g 27,2% 21,7% EBIT 20,3 7,8 160,7% REBIT 18,9 9,9 91,9% g REBIT Margin 16,8% 9,8% Net Earnings 11,6 6,3 83,5% Current Net
Slide 4: Highlights
Highlights Execution strategic pilars Execution investment program Visitors up by 5%, Revenues up by 12% 3D breakthrough b kth h Q1 is “Grand Cru” thanks to Avatar, Q2 on track Strong g development p of REBITDA +40% due to topline p growth combined with strong cost management Real Esta
Slide 5: 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 Position: Belgium: 43%** France: , 3,3% Spain: 4,7% 220 digital screens (74% digitalized***) Of which 70 screens with 3D * Operated by ITIT **
Slide 6: Revenue by country H1
Revenue by country H1 Others 2% Others 2% Spain 19% Spain 19% € 112,9 m Belgium € 100,7 m Belgium 51% 52% France France 28% 27% 2009 2010 26 augustus 2010 6
Slide 7: Revenue by activity H1
Revenue by activity H1 Concessions 4% B2B* 12% Concessions B2B B2B* 4% 14% I Theatre In Th t € 112,9 m In Theatre € 100,7 m Sales Sales BoxOffice 21% 21% BoxOffice 60% 62% Film Distribution Film 1% Distribution 2009 1% 2010 * Including Screen Advertising 26 augustus 2010 7
Slide 8: Visitors
Visitors Visitors ((000’s)) H1 2010 % of Tot H1 2009 % of Tot % ∆ YoY Belgium 4.466 43,3% 4.108 41,7% 8,7% France 3.453 33,5% 3.338 33,9% 3,4% Spain 2.321 22,5% 2.318 23,5% 0,2% Switzerland 79 0,8% 80 0,8% (0,7%) Total 10.319 100% 9.843 100% 4,8% 26 augustus 2010 8
Slide 9: Line-up 2010
Line-up 2010 2D 3D Major sequels • Twilight 3: Eclipse • Shrek Forever After • Meet the Parents: Little Fockers • Toy Story 3 • Wall Street: Money Never Sleeps • Harry Potter 7.1 71 • Narnia 3 • Step Up 3 New titels • Inception • Piranha • Despicable Me • Tangled • Megamind Local • Zot van A (BE) •
Slide 10: Financial Review H1 2010
Financial Review H1 2010 CFO, Mr Henk Rogiers Analyst & Press Meeting 26/08/2010 10
Slide 11: Key Financials
Key Financials €m H1 2010 H1 2009 Better / (Worse) Visitors (‘000) 10.319 9.843 4,8% Revenue 112,9 100,7 12,1% EBITDA 31,5 21,5 46,7% REBITDA 30,7 21,9 40,3% REBITDA Margin 27,2% 21,7% EBIT 20,3 7,8 160,7% REBIT 18,9 9,9 91,9% REBIT Margin 16,8% 9,8% N t Earnings Net E i 11 6 11,6 63 6,3 83 5% 83,5%
Slide 12: Performance by Country
Performance by Country Visitors €m Revenue 000’s +12,1% +4,8% 140,0 Switz. 14.000 2,3 Switz. Switz. 94 120,0 i Spain 2,1 12.000 Switz. Switz. Switz. Spain 24,0 79 2,1 Spain 10.000 79 2.818 100,0 Spain Spain 21,2 Spain France 2.321 80,0 19,2 34,0 8.000 2.318 France France 3.811 France 31,0 FFrance Fr
Slide 13: Evolution Box Office & ITS
Evolution Box Office & ITS Average Box Office*/Visitor Average ITS Spent/Visitor 7,00 € 2,40 € 6 77 6,77 2 30 2,30 2,30 6,80 € +10,1% 2,30 € 6,60 € 6,43 2,20 € 2,13 6,40 € +7,8% 2 10 € 2,10 6,15 6,20 € 2,00 € 6,00 € 5,80 € 1,90 € 5,60 € 1,80 € H1 2009 H2 2009 H1 2010 H1 2009 H2 2009 H1 2010 * Box Of
Slide 14: Revenues by activity waterfall
Revenues by activity waterfall €m +15,3% +13,0% +6,1% -37,1% +27,9% +9,8% 120 + 2,7 + 0,7 (1,2) +0,3 +0,1 +0,3 112,9 +9,3 110 100 7 100,7 100 Min Guarantee Screenvision Belgium 90 80 70 60 50 H1 2009 Box In-theatre B2B Screen Film Real Estate Other & FX H1 2010 Office Sales Advertising Distribution
Slide 15: Operating Costs
Operating Costs €m H1 2010 H1 2009 % Better / (Worse) Marketing & Selling Expenses (4,4) (4,9) 9,9% Administrative Expenses (7,4) (7,6) 3,2% Other Operating Income/(Costs) 2,0 (1,0) 292,2% Total Operating Costs (9,8) (13,6) 27,9% Non-Current: 1,4 (2,1) H1 2010: Sale Block D, Release provision Poland
Slide 16: Non-Current items
Non-Current items €m H1 2010 H1 2009 Impacts Sale PPE (Gent) 0,9 EBITDA Transformation Expenses (0,4) Provision Litigation (0,2) Write-off Longdoz (0,5) Amortization Provision Screenvision Belgium (1 2) (1,2) Release Provision Poland 0,7 Realized Conversion Differences on (1,3) Liquidated Polish Sub
Slide 17: REBITDA by Country
REBITDA by Country REBITDA (1) €m H1 2010 % of Total H1 2009 % of Total Better/(Worse) Belgium 16,8 54,9% 11,9 54,5% 41,3% France 8,0 26,1% 6,2 28,5% 28,6% Spain 51 5,1 16 7% 16,7% 30 3,0 13 9% 13,9% 68 2% 68,2% Other * 0,7 2,3% 0,7 3,1% 3,9% TOTAL 30,6 100% 21,9 100% 40,3% H1 2010 H1 2009 REBITDA M
Slide 18: Financial Result Waterfall
Financial Result Waterfall €m H1 2010 H1 2009 Better/(Worse) % Better/(Worse) Interest Expense (2,4) (2,7) 0,3 10,7% Other (CxX, CNC, CTA Poland, Derivatives, FX) (1,2) 2,1 (3,3) (158,1%) Financial (Cost) / Income (3,6) (0,6) (3,0) (447,3%) €m 0 -0,5 Non- -1 (0,6) Current 2009 -1,5 2 -2 -2,5 -3 (2,0
Slide 19: Net Financial Debt Evolution
Net Financial Debt Evolution €m H1 2010 H1 2009 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 87,2 119,2 32,0 26,8% Leverage ratio: NFD / EBITDA 1,3 2,3 160 3,0 3,50 X 140 2,5 120 2,0 100 80 1,5 60 1,0 40 05 0,5 20 0 0,0 YE 07 YE 08 H1 09 YE 09 H1 10 Net Financial Debt EBITDA (12M rolling
Slide 20: Taxes
Taxes €m H1 2010 H1 2009 % Better /(Worse) Profit before Taxes 16,7 7,1 134,6% Taxes (5,1) (0,8) (522,4%) Net Profit 11,6 6,3 Effective Tax Rate (‘ETR’) 30,9% 11,6% € m 0 ETR ETR ETR 11,6% 17,5% 30,9% -1 (0,2) (0,8) (0,5) (1,3) -2 CxX no Tax -3 • Pre tax result up • Less TLCF -4 • NID stable -5 +3,6
Slide 21: Free Cash Flow H1 2010 vs H1 2009
Free Cash Flow H1 2010 vs H1 2009 Project based: advances Blijweert +1,4 +1 4 & inventory 3D glasses (FR/SP) -0,8 -0 8 Æ +0,6 +0 6 One off’s 2009: recovery VAT ‘07 Spain -1,1 & Screenvision AR up +1,2 Æ +0,1 Timing differences: AP payments -3,0; social security -1,1; CNC -1,0; other taxes € m 35 (Pr
Slide 22: Capex – Depreciation
Capex – Depreciation Capex €m H1 2010 H1 2009 Digitalization Belgium 3,1 5,4 32% Maintenance 44% France 2,5 1,4 Total: € 6,8 m Spain 1,1 1,3 Remodeling Other 0,1 0,1 24% TOTAL 6,8 8,2 € m 0 Depreciation Amortization & Provisions Depreciation, -2 -4 -6 Prov. Litigation –0,2 Write-off Longdoz 0,5 Rele
Slide 23: Shareholders
Shareholders 15/08/2010 15/02/2010 # Shares % # Shares % Total Shares outstanding 6.930.778 100 % 6.930.778 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 2.475.888 35,72 % 2.475.888 35,72 % Treasury Shares (Own Shares) 277.231 4,00 % 277.231 4,00 % Fre
Slide 24: Financial Calendar 2010
Financial Calendar 2010 Tuesday 16/11/2010 Business update Q3 2010 Thursday 24/02/2011 Press release and Presentation to press and analysts l t FY 2010 26 augustus 2010 24
Slide 25: Q&A Thank You
Q&A Thank You You. 26 augustus 2010 25
Slide 26: Annexes Financial Statements
Annexes Financial Statements Results Half 1 – 2010 26
Slide 27: Consolidated Income Statement
Consolidated Income Statement €m H1 2010 H1 2009 % Better / (Worse) Revenue 112,9 100,7 12,1% Cost of sales ((82,8) , ) ((79,3) , ) ((4,3%) , ) Gross Profit 30,1 21,4 40,8% Gross Profit % 26,6% 21,2% Marketing & Selling expenses (4,4) (4,9) 9,9% Administrative expenses (7,4) (7,6) 3,2% Other operati
Slide 28: Current Income Statement
Current Income Statement €m H1 2010 H1 2009 % Better / (Worse) Revenue 112,9 100,7 12,1% Cost of sales (82,8) (79,3) (4,3%) Gross Profit 30,1 21,4 40,9% Gross Profit % 26,7% 21,2% Marketing & Selling expenses (4,4) (4,9) 9,9% Administrative expenses (7,2) (7,2) 0,4% Other operating income & expenses
Slide 29: Consolidated Balance Sheet (1)
Consolidated Balance Sheet (1) €m 30/06/2010 31/12/2009 % Better / (Worse) Intangible assets 3,2 2,9 9,6% Goodwill 18 8 18,8 18 8 18,8 0 0% 0,0% Property, Plant & Equipment 231,3 235,6 (1,8%) Investment Property * 14,1 13,2 6,9% Deferred Tax Assets 1,6 1,5 2,3% Other Receivables 16,5 16,2 2,2% Other
Slide 30: Consolidated Balance Sheet (2)
Consolidated Balance Sheet (2) €m 30/06/2010 31/12/2009 % Better / (Worse) Capital and Share Premium 50,1 50,1 0,0% Consolidated reserves 88,9 82,5 7,7% Translation differences (0,4) (1,4) 70,8% Equity attributable to equity holders of the parents 138,6 131,2 5,6% Minority Interest 1,4 1,3 5,1% Tota
Slide 31: Cash Flow Statement
Cash Flow Statement €m H1 2010 H1 2009 % Better / (Worse) Cash flows from operating activities Profit before tax 16,7 7,1 134,6% Adjustments for: Depreciation, amortization & provisions 11,3 13,7 (17,9%) Government grants (0,4) (0,6) 28,8% Gains / losses on sale of PPE & Financial assets (0,9) (1,9)
Slide 32: Free Cash Flow
Free Cash Flow €m H1 2010 H1 2009 Better / (Worse) % Better / (Worse) Cash Flow before WC Movements and Tax Paid 29,7 20,7 9,0 43,5% Income Taxes Paid (5,2) (1,2) (4,0) (320,9%) Working Capital (8 6) (8,6) 42 4,2 (12 8) (12,8) (302 0%) (302,0%) Capital Exp – Maintenance (3,0) (2,1) (0,9) (42,9%) Int