Kinepolis Group Nv · EURONEXT:KIN
Kinepolis Group Nv — H1 2012 Earnings Presentation
33 slides from Kinepolis Group Nv's earnings presentation, Aug 23, 2012
Slide 1: Kinepolis Group Results Half 1 2012
Kinepolis Group Results Half 1 2012 Analysts & Press Meeting August 23, 2012 1
Slide 2: Business Review Half 1 2012
Business Review Half 1 2012 CEO, Mr Eddy Duquenne 2
Slide 3: Key Financials
Key Financials €m H1 2012 H1 2011 Better / (Worse) Visitors (‘000) 9.414 9.619 (2,1)% Revenue 117,3 111,5 5,3% EBITDA 31,7 30,5 3,7% REBITDA € 3,41/Vis 32,1 € 3,13/Vis 30,1 6,6% REBITDA Margin g 27,4% , 27,0% , EBIT 22,1 20,2 9,2% REBIT 22,2 19,8 12,1% REBIT Margin g 18,9% 17,8% Net Earnings 14,9 14
Slide 4: Highlights
Highlights Revenue up by 5,3% Visitors -2,1% Increased In-theatre Sales to record spend per visitor Strong growth in B2B and Events Strong growth of Screen Advertising revenue Concessions revenue up Positive impact acquisition Brightfish Further improved efficiency of operations RE
Slide 5: Major events
Major events H1 2012 results reflect Strategic Pillars set out in 2008 Best Marketeer Best B t Cinema Ci Operator O t Best Property Manager Further development p and implementation p of Strategy gy in 2012 Refinancing Credit facility ING Belgium, KBC Bank and BNP Paribas Fortis for € 9
Slide 6: 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 11 Total 23 317 Market Share: Belgium: 47,7%** F France: 3 0% 3,0% Spain: 4,8% 297 digital screens (100% digitised***) Of which 93 screens with 3D * Operated by ITIT
Slide 7: Revenue by country
Revenue by country Switzerland, Poland 2% Switzer- land, Poland 2% Spain 15% Spain 18% € 117,3 m € 111,5 m Belgium Belgium 54% France 57% 26% France 26% H1 2011 H1 2012 23 augustus 2012 7
Slide 8: Revenue by activity
Revenue by activity Film Brightfish Distribution Concessions 4% 1% Film Distribution 4% Concessions 1% 4% B2B* B2B* 14% 14% € 117,3 m Box Office € 111,5 m Box Office 56% In-theatre 60% Sales In-theatre 21% Sales 21% H1 2011 H1 2012 * Including Cinema Screen Advertising 23 augustus 2012 8
Slide 9: Visitors & Movies
Visitors & Movies Visitors (000’s) H1 2012 % of Tot H1 2011 % of Tot % Δ YoY Belgium 4.398 46,7% 4.377 45,1% 1,4% F France 3 106 3.106 33 0% 33,0% 3 099 3.099 32 2% 32,2% 0 2% 0,2% Spain 1.843 19,6% 2.097 21,8% (12,1)% Switzerland 67 0,7% 86 0,9% (22,1)% Total 9 414 9.414 100% 9 619 9.619 100% (2 1)
Slide 10: Ratios
Ratios REBITDA Margin g ROCE Gearing g 35% 25% 120% 1,10 21,8% 19,8% 100% 0,97 20% 30% 27,4% 16% 27,2% 27,0% 80% 15% 0 67 0,67 12% 25% 9,8% 60% 0,57 21,4% 21,7% 0,43 10% 40% 20% 5% 20% 15% 0% 0% H1 H1 H1 H1 H1 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 H1* H1 *: 12 mo
Slide 11: Net Financial Debt Evolution
Net Financial Debt Evolution €m 30 Jun 2012 31 Dec 2011 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 104,8 76,5 (28,3) (37,0)% Leverage ratio*: NFD / EBITDA 1,4 1,0 €m 160 3,5 3,50 X 140 3,0 120 2,5 100 2,0 80 1,5 60 1,0 40 20 0,5 05 0 0,0 YE 07 YE 08 YE 09 YE 10 H1 11 YE 11 H1 12 Net Fi
Slide 12: Line-up Half 2 2012
Line-up Half 2 2012 2D 3D Major sequels • Twilight 4.2 • Spiderman 4 • James Bond 23: Skyfall • Step Up 4 • The Th Dark D k Knight K i h Rises Ri • Expendables 2 • Bourne Legacy New titles • Jack Reacher • The Brave • Django Unchained • The Hobbit • Wreck it Ralph • Rise of the Guardians Local • Bra
Slide 13: Financial Review Half 1 2012
Financial Review Half 1 2012 CFO, Mr Nicolas De Clercq 13
Slide 14: Revenue by country
Revenue by country €m H1 2012 % of Tot H1 2011 % of Tot % Δ YoY Belgium 67,4 57,4% 60,1 53,9% 12,2% France 29,9 25,5% 29,0 26,0% 3,2% Spain 17,8 15,2% 19,9 17,8% (10,2)% Switzerland & Poland 22 2,2 1 9% 1,9% 25 2,5 2 3% 2,3% (12 9)% (12,9)% Total 117,3 100% 111,5 100% 5,3% 14 23 augustus 2012
Slide 15: Revenue by Business (1)
Revenue by Business (1) €m Cinema Revenue €m Sales & Events €m Screen Advertising 120 20 3,6 18 3,4 110 +0,7% +4,4% 3,2 16 10,5% 100 3,0 14 90 2,8 12 2,6 80 10 2,4 70 8 2,2 60 6 20 2,0 H1 2011 H2 2011 H1 2012 H1 2011 H2 2011 H1 2012* H1 2011 H2 2011 H1 2012* Visitors 9,6 11,6 9,4 * Excluding Brightf
Slide 16: Revenue by Business (2)
Revenue by Business (2) €m Concessions @ Flat FX €m Filmdistribution 6,0 1,3 5,5 +2,6% 1,2 -1,1% 5,0 1,1 4,5 1,0 4,0 0,9 3,5 0,8 3,0 2,5 0,7 20 2,0 06 0,6 H1 2011 H2 2011 H1 2012 H1 2011 H2 2011 H1 2012 # 18 15 15 releases 23 augustus 2012 16
Slide 17: Revenue by activity waterfall
Revenue by activity waterfall €m -0,9% +5,3% +4,4% +10,5% -1,1% +2,6% +5,3% 120 118 4,6 +0,1 (0,2) 117,3 116 114 +0,6 +0,3 (0,0) 111,5 (0,6) +1,2 112 110 108 106 104 102 Business line Cinema 100 H1 2011 Box In-theatre B2B Screen Film Brightfish* Real Estate Other & FX H1 2012 Office Sales Advertisin
Slide 18: Evolution Box Office & ITS
Evolution Box Office & ITS Box Office* / Visitor ITS / Visitor 4,00 € 8,50 € +1,3% +7,6% 3,50 € 8,00 € 7,50 € 3,00 € 2,63 7 07 7,07 7 03 7,03 2 44 2,44 2,54 6 95 6,95 7,00 € 2,50 € 6,50 € 2,00 € 6,00 € 1,50 € * Box Office Revenue after deduction of direct taxes 5,50 € 1,00 € H1 2011 H2 2011 H1 2012
Slide 19: Operating Costs
Operating Costs €m H1 2012 H1 2011 % Better / (Worse) Marketing & Selling Expenses (6,0) (5,9) (2,2)% Administrative Expenses (7,6) (7,0) (8,1)% Other Operating Income/(Costs) 0,8 0,9 (7,9)% Total Operating Costs (12,8) (12,0) (6,4)% Non-Current 0,0 0,4 Gain on sale PPE Gent Current Operating Costs
Slide 20: Non-Current items
Non-Current items €m H1 2012 H1 2011 Impacts Sale real estate (Gent) 0,4 Transformation T f ti expenses (0,4) (0 4) EBITDA EBITDA (0,4) 0,4 Transformation provisions 0,3 Provisions Provisions 03 0,3 Tax on above items 0,0 (0,1) Taxes Taxes 0,0 (0,1) Net impact p of non-current items (0,1) 0,3 Net Ea
Slide 21: REBITDA by Country
REBITDA by Country REBITDA €m H1 2012 % of Total H1 2011 % of Total % Better/(Worse) Belgium (incl. HQ) 20,3 63,3% 18,2 60,3% 11,9% France 7,8 24,3% 7,4 24,5% 5,8% Spain 3,4 10,5% 3,8 12,6% (11,1)% Switzerland & Poland 0,6 1,9% 0,8 2,6% (23,5)% TOTAL 32,1 100% 30,1 100% 6,6% H1 2012 H1 2011 REBITDA
Slide 22: REBITDA Margin Trend
REBITDA Margin Trend REBITDA € 2,22 € 2,16 € 2,08 € 2,71 € 2,22 € 2,98 € 2,97 € 3,26 € 3,13 € 3,57 € 3,41 /Visitor 45.000 35,0% 30,5% 40 000 40.000 28,4% 27,7% 27,2% 27,4% 30,0% 26,8% 27,0% 35.000 24,1% 25,0% 30.000 21,3% 21,4% 21,7% 25.000 20,0% 20.000 15,0% 15.000 10,0% 10.000 5 0% 5,0% 5.000 0 0,
Slide 23: Financial Result
Financial Result €m H1 2012 H1 2011 % Better/(Worse) Interest Expense (2,2) (1,2) (83,6)% Other (CNC, Tax Shelters, Derivatives, FX) (0,3) (0,5) (35,8)% Financial (Cost) / Income (2,5) (1,7) (47,3)% €m 0,0 -0,5 -1,0 -1,5 (1 0) (1,0) (1,7) -2,0 +0,4 (0,3) -2,5 +0,1 (2 5) (2,5) -3,0 H1 2011 Interest F
Slide 24: Taxes
Taxes €m H1 2012 H1 2011 % Better /(Worse) Profit before Taxes 19,6 18,5 5,8% Taxes (4,7) (4,5) (2,0)% Net Profit 14,9 14,0 7,0% Effective Tax Rate (‘ETR’) 23,8% 24,7% € € m m ETR ETR ETR -0,5 24,7% 24,5% 23,8% -1,5 -2,5 2,5 -3,5 -4,5 , +0,5 (0,4) (4 5) (4,5) +0 1 +0,1 (4 4) (4,4) (0 4) (0,4) (4,7)
Slide 25: Free Cash Flow H1 2012
Free Cash Flow H1 2012 € m 35 30,9 (5,1) 30 (6 3) (6,3) 25 (2,8) 20 (1,1) 15,6 0,0 15 10 5 0 EBITDA + Other Income Taxes Working Capex - Interest Sales PPE FCF H1 2012 Financial Result Paid Capital Maintenance Paid (Corrected for Movement non- cash items) 23 augustus 2012 25
Slide 26: Free Cash Flow H1 2012 vs H1 2011
Free Cash Flow H1 2012 vs H1 2011 € m 20 +2,1 (1,7) 18 (0,6) +1 5 +1,5 +0 1 +0,1 -0 0 -0,0 15 6 15,6 16 14,2 14 12 10 8 6 4 2 0 FCF H1 2011 Cash EBITDA & Income Tax Working Capex - Interest Sale PPE & FCF H1 2012 Other Financial Paid Capital Maintenance Paid Fin Assets Result 23 augustus 2012 26
Slide 27: Capex – Depreciation
Capex – Depreciation Capex €m H1 2012 H1 2011 Digitization 13% Digitization Belgium 3,4 3,7 Maintenance Maintenance 20% 39% 35% France 0,7 07 1,1 11 H1 2012: 2012 H1 2011: € 5,7 m € 6,2 m Spain 1,5 1,4 Remodeling Remodeling Other 0,1 0,0 48% 45% TOTAL 5,7 6,2 €m Depreciation, p , Amortization & Prov
Slide 28: Net Financial Debt Evolution
Net Financial Debt Evolution €m 30 Jun 2012 31 Dec 2011 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 104,8 76,5 (28,3) (37,0)% Leverage ratio*: NFD / EBITDA 1,4 1,0 €m 160 3,5 3,50 X 140 3,0 120 2,5 100 2,0 80 1,5 60 1,0 40 20 0,5 05 0 0,0 YE 07 YE 08 YE 09 YE 10 H1 11 YE 11 H1 12 Net Fi
Slide 29: Balance sheet
Balance sheet € €m J 30 Jun % off D 31 Dec % off € €m J 30 Jun % off D 31 Dec % off 2012 Total 2011 Total 2012 Total 2011 Total Intangible assets 3,4 1% 3,4 1% Equity 108,6 35% 133,9 41% Goodwill 18,8 6% 18,8 6% LT financial debt 87,9 28% 38,5 12% Land & buildings 188,9 60% 192,1 59% Provisions 3,1
Slide 30: Shareholders
Shareholders 21/08/2012 02/02/2012 # Shares % # Shares % Total Shares outstanding 6.581.355 100 % 6.581.355 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 2.581.610 39,23 % 2.581.610 39,23 % Treasury Shares (Own Shares) 1.036.732 15,75 % 405.916 6,17 %
Slide 31: Share Buy-back Program
Share Buy-back Program # shares €m Total shares outstanding as at 21/08/2012 6.581.355 Treasury shares (own shares) as at 31/12/2011 323.310 9,5 Share buy-back YTD 21/08/2012 713.422 47,9 Treasury shares (own shares) as at 21/08/2012 1.036.732 57,4 Readyy for cancellation as at 21/08/2012 724.847 48
Slide 32: Financial Calendar 2012
Financial Calendar 2012 Wednesday 14/11/2012 Business update Q3 2012 Thursday 21/02/2013 Analysts and Press Meeting FY 2012 Thursday 16/05/2013 Business update Q1 2013 Friday 17/05/2013 Annual Shareholders’ Meeting 23 augustus 2012 32
Slide 33: Q&A Thank You.
Q&A Thank You. 23 augustus 2012 33