Cineworld — H1 2018 Earnings Presentation
33 slides from Cineworld's earnings presentation, Aug 9, 2018
Slide 1: Cineworld Group H1 2018 Results
Cineworld Group H1 2018 Results 9 August 2018 0
Slide 2: Key Highlights
Key Highlights Strategic Progress Financial Review Operating Development Completion of milestone Group Pro Forma2 revenue of Continued investment in transaction $2,456m up 10.8%3 technology with ScreenX, 4DX and IMAX agreements Acquisition of Regal Group Pro Forma Adj. EBITDA1 of Entertainment for $
Slide 3: Cineworld Today
Cineworld Today Leading and global Cinema Group operating in 10 countries with 792 sites1 and 9,542 screens1 x sites x screens UK & Ireland Poland United States 121 1,094 Czech 35 385 558 7,306 Republic Slovakia 14 133 3 29 Hungary Romania 18 157 26 237 Bulgaria 6 65 Israel 11 136 43 121 130 1. As o
Slide 4: Financial Review
Financial Review
Slide 5: Group Pro Forma Performance summary
Group Pro Forma Performance summary Revenue by geography Revenue by product & services H1 2018 PF Admissions / Growth1 159m / +4.9% 9% 10% 15% 28% H1 2018 62% PF Revenue / Growth1 76% $2,456m / +10.8% United States Box office H1 2018 UK & Ireland Retail PF Adj. EBITDA / Margin / Growth1 CEE & I Othe
Slide 6: H1 Pro Forma Performance By Geography
H1 18 Pro Forma Performance By Geography Group United States UK & Ireland CEE & I Admissions: 159m 4.9% 110m 9.2% 26m -2.7% 23m -5.7% Revenue: $2,456m 10.8% $1,873m 14.3% $354m 2.5% cc $229m -1.3% cc Adj. EBITDA: $554m 14.1% $441m 20.0% $58m 3.2% cc $55m -11.1% cc EBITDA margin: 22.5% 0.7% 23.5% 1.1
Slide 7: Pro Forma Performance - United States
Pro Forma Performance - United States H1 2018 Pro Forma Revenues 558 7,306 United States UK & Ireland 76% CEE & I US pro forma revenue of $1,873m up 14.3% driven by Admissions growth +9.2% H1 2018 H1 2018 Box office revenue growth +14.3% PF Revenue / Growth PF EBITDA / Margin Retail revenue
Slide 8: United States - KPI
United States - KPI PF Admissions (m) PF ATP ($) PF SPP ($) +4.6% +4.0% +9.2% 110.1 10.0 10.4 4.7 4.9 100.8 H1 17 H1 18 H1 17 H1 18 H1 17 H1 18 7
Slide 9: H1 Performance – UK & Ireland
H1 18 Performance – UK & Ireland H1 2018 Revenues 15% United States UK & Ireland CEE & I 121 1,094 UK & Ireland revenue of $354m up 2.5% in cc driven by Admissions decline of -2.7% H1 2018 H1 2018 Revenue / Growth EBITDA / Margin Box office revenue growth +1.3% in cc $354m / 2.5% cc $58m / 16.
Slide 10: UK & Ireland - KPI
UK & Ireland - KPI Admissions (m) ATP1 ($) SPP1 ($) +4.1% +3.8% (2.7%) 26.3 25.6 8.7 9.1 3.3 3.2 H1 17 H1 18 H1 17 H1 18 H1 17 H1 18 1. Constant currency (“cc”) movements have been calculated by applying the 2018 average exchange rates to the 2017 performance 9
Slide 11: H1 Performance – CEE & I
H1 18 Performance – CEE & I H1 2018 Revenues 113 1,142 9% United States UK & Ireland CEE & I CEE & I revenue of $229m down -1.3% in cc driven by Admissions decline of -5.7% H1 2018 H1 2018 Revenue / Growth Box office revenue decline -3.2% in cc EBITDA / Margin $229m / -1.3% cc Retail revenue
Slide 12: CEE & I – KPI
CEE & I – KPI Admissions (m) ATP1 ($) SPP1 ($) +2.5% +8.2% (5.7%) 24.5 5.7 5.8 2.4 2.6 23.1 H1 17 H1 18 H1 17 H1 18 H1 17 H1 18 1. Constant currency (“cc”) movements have been calculated by applying the 2018 average exchange rates to the 2017 performance 11
Slide 13: Statutory Group Profit and Loss
Statutory Group Profit and Loss $m H1 2017 FY 2017 Includes $6.2m of share of profit from jointly controlled entities H1 2018 adjusted for undistributed profits of $4.8m Revenue 1,862.9 528.7 1,147.0 The $55.8m net exceptional items includes the following: Adjusted EBITDA 413.6 107.5 257.7 − $49.8m
Slide 14: Growth in the adjusted diluted EPS of 50.0%
Growth in the adjusted diluted EPS of 50.0% $m H1 2018 H1 2017 FY 2017 Profit after tax 128.4 50.6 129.5 The exceptional items includes the following: Adjustments: − $49.8m of transaction costs Amortisation 11.0 3.0 6.6 − $0.4m impairment costs Transaction and reorganisation costs 49.8 0.9 10.0 − $1
Slide 15: Net Debt Analysis
Net Debt Analysis Adjusted Net Debt1/ LTM Adjusted EBITDA: 3.8x $2,340m $3,852m $414m $371m $73m $5,786m $376m 1 1 Net Debt Acquisition of Regal Proceeds from Rights Adj. EBITDA Capex Others 2 Adjusted Net Debt 1 Jan 18 Issue 30 Jun 18 1. Includes $202m payable to Regal dissenting shareholders 2. In
Slide 16: Interim Dividend
Interim Dividend Cineworld declares $4.85c dividend per share Record Date Dividend Deadline for Payment declared currency election Currency election GBP (default) or USD 9 Aug 13 Sep 14 Sep 21 Sep 5 Oct GBP/USD Ex-Dividend Exchange rate Date determined 15
Slide 17: Financial Outlook
Financial Outlook Business on track to deliver synergy plans for 2018 and 2019 Total capital expenditure for 2018 expected to be approximately $220m-$240m on a statutory basis Normalised tax rate expected to trend towards 19%-20% Focus on cash generation with deleveraging profile on track Group to m
Slide 18: Business Update
Business Update
Slide 19: Integration Update
Integration Update People Strategy New management team in place from Day 1 Best practice sharing across all areas of the business: procurement and benchmarking initiatives New operating structure in the US with new regional heads Alignment of IT and reporting systems Global head office remains in Lo
Slide 20: Integration Benefits
Integration Benefits Expected Combination Benefits (excluding tax) Total run-rate synergies of $100m to be achieved in 2019 $60m costs reduction $100m $40m business initiatives Phasing: 40%-50% expected to be realised in $40m-$50m 2018 and 100% in 2019 Significant efficiencies achieved to date inclu
Slide 21: Continued Roll-out Across Europe…
Continued Roll-out Across Europe… Dover, UK Weston-Super-Mare, UK Ramnicu Valcea, Romania 20
Slide 22: …and the United States
…and the United States Lynbrook, NY Celebration Pointe, Florida Delta Shores, California 21
Slide 23: Next generation cinemas – refurbishments
Next generation cinemas – refurbishments Continued delivery of refurbishments with the following completed in H1 2018 Full refurbishment and 4DX of our flagship cinema in Leicester Square Refurbishment of our Enfield cinema in the UK Four new 4DX installed in Dublin, Middlesbrough, Castleford and Le
Slide 24: First Look: Refurbishments in the United States
First Look: Refurbishments in the United States Irvine, California
Slide 25: First Look: Refurbishments in the United States
First Look: Refurbishments in the United States Union Square, New York
Slide 26: Technology Investments
Technology Investments Investment into a wide range of new and exciting technologies including Digital Laser Projectors New 4DX (80 screens) and IMAX (55 screens) agreements ScreenX (100 screens): 270 degree panoramic film-viewing experience 25
Slide 27: Speke: Our First ScreenX
Speke: Our First ScreenX
Slide 28: «é >
«é >
Slide 29: What is coming?
What is coming? 12 sites, 111 screens planned to open in H2 2018 8 sites & 81 screens in the US 4 sites & 30 screens in the UK Further refurbishments planned in the UK (4 sites) and CEE & I (1 site in Hungary) Plans for first cinemas refurbishments in the US progressing well Further integration bene
Slide 30: Release Schedule: H2 2018
Release Schedule: H2 2018 29
Slide 31: 2019 and beyond – Key Titles
2019 and beyond – Key Titles 30
Slide 32: Q&A
Q&A Cineworld Group plc 31
Slide 33: Cineworld Group plc
32 Cineworld Group plc