Kinepolis Group Nv · EURONEXT:KIN

Kinepolis Group Nv — Non-Deal Roadshow (March 2024)

66 slides from Kinepolis Group Nv's roadshow presentation, March 2024

  1. Slide 1: Kinepolis Group Results 2023 Roadshow

    Kinepolis Group Results 2023 Roadshow February – March 2024

  2. Slide 2: Slide 2

  3. Slide 3: Business review 2023

    Business review 2023 CEO, Mr Eddy Duquenne

  4. Slide 4: Slide 4

  5. Slide 5: Key figures YE 2023 vs YE 2022

    €m YE 2023 YE 2022 % Better / -Worse Revenue 605,5 499,9 21,1% Visitors (‘000) 35 358 29 323 20,6% EBITDA 186,9 150,2 24,4% Adjusted EBITDA 185,9 151,0 23,2% Adjusted EBITDA margin € 5,26/Vis 30,7% € 5,15/Vis 30,2% 51 bps EBITDAL 151,4 114,0 32,8% Adjusted EBITDAL 150,4 114,7 31,2% Adjusted EBITDAL

  6. Slide 6: Executive Summary – part I

    Executive Summary – part I FY 2023  Record year 2023:  Record-high revenue: +21,1% vs 2022  Record-high EBITDAL: +32,8% vs 2022  Record-high net result: doubled vs 2022  Record-high sales per visitor, resulting from higher demand for & investments in premium moviegoing experiences  Strong resu

  7. Slide 7: Core strategy: 3 pillar strategy

    Core strategy 3 pillar strategy Best cinema operator Best marketer Best real estate manager 5

  8. Slide 8: Key elements for future growth

    Further recovery visitor numbers driven by Hollywood offering expected to be fully recovered by 2025/2026 Key elements Internal expansion (premium concepts) for future growth External expansion 6

  9. Slide 9: Executive Summary – part II

    Executive Summary – part II FY 2023  Strong balance sheet:  Higher solvency  Significant reduction of Net Financial Debt (NFD) and improved debt leverage ratio  The BOD proposes a gross dividend of €0,55 per share to the General Meeting 7

  10. Slide 10: Operational highlights and expansion

     Successful integration of newly acquired cinemas in Amnéville, Belfort and Béziers (FR)  Opening of six new IMAX screens (October 2023) in Canada, US, Spain, France, Luxembourg and Belgium  Agreement for 21 new ScreenX auditoriums, of which the first 5 will be open in Feb 2024  Further roll-out

  11. Slide 11: Premiere Seats, Landmark Waterloo

    Premiere Seats, Landmark Waterloo 9

  12. Slide 12: ScreenX, 270° viewing experience

    ScreenX, 270° viewing experience 10

  13. Slide 13: 11

    11

  14. Slide 14: Slide 14

  15. Slide 15: ESG Focus areas

    ESG Focus areas Best cinema operator Best marketer Best real estate manager Development & Employee well-being, Customer Experience Green and resilient building Responsible waste empowerment of employees diversity and inclusion excellence & infrastructure management 12

  16. Slide 16: Towards Net Zero emissions by 2050

    Roll-out of intelligent building mgmt systems Transition to laser projection: 59% laser per Towards end 2023 - Target: 66% by end of 2024 Net Zero emissions by 2050 Responsible waste management practices Carbon footprint scope 3 exercise ongoing Preparation CSRD-aligned reporting from 2024 13

  17. Slide 17: Employee wellbeing & development

    87% response rate People Satisfaction Index Resume self-learning company culture: Employee business ownership wellbeing & development Internal mobility: 1 in 3 vacancies filled internally Relaunch Innovation Lab (Europe) Managers Conference (Canada) 14

  18. Slide 18: Landmark Managers Conference, October 2023

    Landmark Managers Conference, October 2023 15

  19. Slide 19: Complexes and screens by country

    Market Complexes in Ownership Countries Complexes *** Screens *** Share # % Visitors Belgium 11 138 0% 10 98% France 18 +2 199 +23 4% 11 78% Canada 36 -2 299 -13 13% 3 1% Spain 10 157 6% 3 29% The Netherlands 19 -1 144 -3 11% 13 67% United States 10 164 0% 7 72% Luxembourg 3 22 82% 1 65% Switzerland

  20. Slide 20: Visitors by country

    Visitors (000's) YE 2023 % of Tot YE 2022 % of Tot % ∆ YoY Belgium 6 389 18,1% 5 800 19,8% 10,2% France 6 544 18,5% 5 117 17,5% 27,9% Canada 9 118 25,8% 7 553 25,8% 20,7% Spain 4 809 13,6% 3 617 12,3% 33,0% The Netherlands 3 487 9,9% 3 205 10,9% 8,8% United States 4 092 11,6% 3 298 11,2% 24,1% Luxem

  21. Slide 21: Revenue by country

    Revenue €m YE 2023 % of Tot YE 2022 % of Tot % ∆ YoY Belgium 163,1 26,9% 142,3 28,5% 14,7% France 88,3 14,6% 67,9 13,6% 30,2% Canada 144,5 23,9% 122,8 24,6% 17,7% Spain 56,2 9,3% 41,4 8,3% 35,7% The Netherlands 67,1 11,1% 57,9 11,6% 16,0% United States 62,2 10,3% 49,3 9,9% 26,2% Luxembourg 19,2 3,2%

  22. Slide 22: Visitors and revenue by country, comparable basis

    Visitors (000's) YE 2023 YE 2022 % ∆ YoY Revenue €m YE 2023 YE 2022 % ∆ YoY Belgium 6 389 5 800 10,2% Belgium 163,1 142,3 14,7% France 5 907 5 080 16,3% France 81,4 67,4 20,9% Canada 8 917 7 352 21,3% Canada 142,0 120,2 18,2% Spain 4 187 3 557 17,7% Spain 50,3 40,8 23,4% The Netherlands 3 479 3 181

  23. Slide 23: Revenue split by country

    Luxembourg 3,2% Switzerland Luxembourg Switzerland Poland 3,0% Poland USA 0,8% USA 0,7% 10,3% 9,9% Belgium Belgium 28,5% 26,9% The Netherlands The Netherlands 11,6% 11,1% € 605,5m € 499,9m Spain Spain 9,3% France France 8,3% 13,6% 14,6% Canada Canada 23,9% 24,6% YE 2023 YE 2022 20

  24. Slide 24: Revenue split by activity

    Brightfish** Brightfish 2,0% Real Estate 1,5% Film Distribution Real Estate Film Distribution** 2,3% 1,0% 2,2% 0,8% B2B * B2B * 12,0% 10,5% € 499,9m € 605,5m Box Office Box Office 52,2% 52,6% In-theatre Sales In-theatre Sales 31,0% 31,8% YE 2023 YE 2022 * Including Cinema Screen Advertising ** From

  25. Slide 25: Top 5 Movies 2023 and 2022

    Top 5 Movies 2023 3D Visitors (000's) 1. Super Mario Bros (2023)  2 199 2. Barbie 2 144 3. Avatar 2  1 728 4. Oppenheimer 1 441 5. Guardians of the Galaxy Vol. 3  1 025 Top 5 8 537 Weight Top 5 24,1% Top 5 Movies 2022 3D Visitors (000's) 1. Top Gun: Maverick 2 133 2. Avatar 2  1 599 3. Minions:

  26. Slide 26: Slide 26

  27. Slide 27: Movie line-up

    International Movie line-up 23

  28. Slide 28: International movie line-up

    THE GREAT THE WISE GUYS MADAME THE BEEKEEPER PRISCILLA ARGYLLE DUNE 2 KUNG FU PANDA 4 ESCAPER WEB POOR THINGS THE COLOR MEANGIRLS ANYONE BUT YOU BOB MARLEY ZONE OF DRIVE AWAY PURPLE ONE LOVE INTEREST DOLLS THE DEMON SLAYER NEXT GOAL WINS IO CAPITANO FERRARI HOLDOVERS 24

  29. Slide 29: International movie line-up

    GHOSTBUSTERS GODZILLA V. KONG THE FALL GUY KINGDOM OF BAD BOYS 4 BALLERINA A QUIET PLACE MONKEY MAN FURIOSA FIREHOUSE THE NEW EMPIRE THE PLANET OF DAY ONE THE APES UNTITLED DC EVENT FILM BACK TO BLACK IF INSIDE OUT 2 THE THE FIRST CHALLENGERS GARFIELD ABIGAIL OMEN WATCHERS HORROR SCOPE 25

  30. Slide 30: Slide 30

  31. Slide 31: Financial review 2023

    Financial review 2023 CFO, Mr Jeroen Mouton

  32. Slide 32: Revenue of €605,5 million with 35,4 million visitors

     Revenue of € 605,5 million with 35,4 million visitors  Revenue up by 21,1% with 20,6% more visitors  Increase Visitors (+20,6%)  Increase Box Office (+22,1%)  Increase In-theatre Sales (+24,2%)  Increase B2B (+5,5%) versus YE 2022  Increase Sales and Events (+3,8%) €m 2023 2022  Increase Sc

  33. Slide 33: Net financial debt decreased

     NFD incl. lease liabilities decreased with € 58,0 million, from € 793,9 million per 31/12/2022 to € 735,9 million per 31/12/2023  NFD excl. lease liabilities decreased with € 45,2 million, from € 423,5 million per 31/12/2022 to € 378,3 million per 31/12/2023, mainly due to:  € +85,5 m free cash

  34. Slide 34: Box Office

    €m Box Office € 10,0 Box office* / Visitor 350 € 9,5 +1,3% 300 + 22,1% 9,0 8,9 € 9,0 250 € 8,5 8,3 200 260,9 318,6 € 8,0 150 7,6 7,6 100 € 7,5 50 € 7,0 52,6% OF REVENUE 0 € 6,5 2022 2023 2019 2020 2021 2022 2023 * Box Office revenue after deduction of indirect taxes 29

  35. Slide 35: In-theatre Sales

    In-theatre Sales ITS* / Visitor €m € 6,0 3,5% 250 5,4 € 5,5 5,2 200 € 5,0 4,6 + 24,2% € 4,5 150 € 4,0 3,9 3,8 155,2 192,8 100 € 3,5 50 € 3,0 31,8% OF REVENUE € 2,5 0 2019 2020 2021 2022 2023 2022 2023 * Excl. ITS Delivery sales 30

  36. Slide 36: Sales & Events and Screen Advertising

    €m Sales & Events (8,5%) €m Screen Advertising (2%) 60 14 3,8% 12 50 +13,5% 10 40 49,8 51,6 8 10,4 11,8 30 6 20 4 10 2 10,5% OF REVENUE 0 0 * Excluding Brightfish YE 2022 YE 2023 YE 2022 YE 2023 31

  37. Slide 37: Real Estate revenue

    €m 14 12 +16,6% 10 11,4 13,3 8 6 2,2% OF REVENUE 4 2 0 YE 2022 YE 2023 32

  38. Slide 38: Brightfish revenue

    €m 14 12,4 12 10 +67,8% 8 7,4 7,1 6 3,3 2,0% OF REVENUE 4 5,3 2 4,1 0 YE 2022 YE 2023 Screen Advertising Sales & Events 33

  39. Slide 39: Film Distribution revenue

    €m 5,0 +0,8% 4,0 3,0 4,8 4,8 2,0 0,8% OF REVENUE 1,0 0,0 YE 2022 YE 2023 # releases 24 25 34

  40. Slide 40: Operating costs

    €m YE 2023 % of Sales YE 2022 % of Sales % Better/-Worse Marketing and selling expenses -28,1 4,6% -23,5 4,7% -19,7% Administrative expenses -30,2 5,0% -28,1 5,6% -7,4% Other operating income / cost 3,9 -0,6% 5,1 -1,0% -23,6% Operating Costs -54,4 9,0% -46,5 9,3% -17,0% 35 35

  41. Slide 41: EBITDA and EBITDAL by country

    EBITDA - €m YE 2023 YE 2023 margin YE 2023 % of Total YE 2022 YE 2022 margin YE 2022 % of Total Belgium 43,2 41,7% 23,1% 37,9 26,7% 25,3% France 35,8 40,6% 19,2% 25,5 37,6% 17,0% Canada 38,3 26,5% 20,5% 33,1 26,9% 22,0% Spain 17,8 31,7% 9,5% 11,7 28,2% 7,8% The Netherlands 23,1 34,4% 12,4% 21,5 37,2

  42. Slide 42: Depreciation and financial result

    €m YE 2023 YE 2022 % Better / -Worse Depreciations and amortisations -54,7 -53,3 -2,6% Depreciations on right-of-use assets -28,2 -28,7 1,9% Provisions and impairments 2,0 -0,2 935,9% Total depreciation, amortisation and provisions -80,9 -82,3 1,7% €m YE 2023 YE 2022 % Better / -Worse Interest expen

  43. Slide 43: Result before taxes and result

    €m YE 2023 YE 2022 % Better / -Worse Result before taxes 75,8 37,7 101,0% - Current tax -15,7 -8,4 86,9% - Deferred tax -4,0 -1,7 135,3% Taxes -19,7 -10,2 -93,9% Result 56,1 27,5 103,7% Effective Tax Rate ('ETR') 26,0% 27,0% -3,6% €m 0,0 ETR ETR 27% 26% -5,0 -10,0 -10,2 -15,0 0,1 -20,0 -9,5 -19,7 -2

  44. Slide 44: From EBITDA to result

    €m 200 186,9 180 160 151,4 -35,5 140 120 106,0 100 -45,4 80 75,8 -30,2 60 56,1 -19,7 40 20 0 EBITDA Costs related to EBITDAL Depr, Amort, EBIT Financial result EBT Taxes Result YE 2023 lease contracts YE 2023 Prov, Costs YE 2023 YE2023 YE 2023 related to lease contracts 39

  45. Slide 45: Capital expenditure

    €m 20,0 18,8 18,0 16,0 13,9 14,1 14,0 13,2 12,0 9,4 10,0 8,3 8,0 6,0 4,0 2,0 0,0 MAINTENANCE INTERNAL EXPANSION EXTERNAL EXPANSION YE 2023 YE 2022 €m YE 2023 YE 2022 Belgium 7,7 5,6 France 3,3 2,4 Canada 8,0 5,6 Spain 3,5 1,7 The Netherlands 1,7 1,7 United States 6,1 3,7 Luxembourg 2,1 0,6 Other 0,2

  46. Slide 46: Cash flow statement

    €m YE 2023 YE 2022 Better / -Worse Result before tax 75,8 37,7 38,1 Adjustments for: Depreciations and amortisations 82,9 82,0 0,8 Provisions and impairments -2,2 0,3 -2,5 Government grants -2,3 -0,7 -1,6 Adjustments to right-of-use assets and lease liabilities -0,1 -0,3 0,2 Gains / losses on sale o

  47. Slide 47: Free cash flow bridge

    €m 200 181,9 180 160 -20,5 140 -7,0 -18,8 120 -15,1 100 85,5 80 -34,9 60 40 20 0 Cash flow before WC Income Working Capex - Interest Payment of lease FCF YE 2023 movements and Tax paid Taxes Capital Maintenance Paid liabilities 42

  48. Slide 48: Free cash flow

    €m YE 2023 YE 2022 Better / -Worse Cash Flow before WC movements & tax paid 181,9 142,2 39,7 Income taxes (paid) / received -20,5 -13,9 -6,6 Working capital -7,0 7,7 -14,7 Capital exp – maintenance -18,8 -13,2 -5,6 Interest (paid) / received -15,1 -16,3 1,2 Payment of lease liabilities (capital port

  49. Slide 49: Net financial debt and leverage

    €m YE 2023 YE 2022 Better/-Worse NFD Evolution Gross Financial Debt excl. lease liabilities 479,8 491,6 11,8 2,4% Cash 101,4 67,8 -33,6 -49,6% Net Financial Debt (NFD) excl. lease liabilities 378,3 423,5 45,2 10,7% Gross Financial Debt incl. lease liabilities 837,4 861,9 24,5 2,8% Net Financial Debt

  50. Slide 50: Loan repayment January 2024

     January 8th, 2024, 80 mio € bullet loan was repaid to 4 core banks (ING, KBC, BNP & Belfius)  Repaid with current cash & credit lines: • 16 mio € via commercial paper • 30 mio € via RCF drawing  After the announcement of the annual 2023 results, discussions with our banks on our future financing

  51. Slide 51: 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) 100.000.000 Bullet loan (Jan) 60.000.000 80.000.000 Priv Plac. 10Y 75.000.000 65.000.000 50.000.000 25.000.000 Priv Plac. 10Y (Jan) 34.600.000 0 2024 2025 2026

  52. Slide 52: Balance sheet

    €m 31/12/2023 % of Total 31/12/2022 % of Total €m 31/12/2023 % of Total 31/12/2022 % of Total Intangible assets 11,0 0,9% 11,4 1,0% Share capital & share premium 20,1 1,7% 20,1 1,7% Goodwill 174,8 15,0% 174,9 15,0% Consolidated reserves 171,5 14,7% 130,0 11,1% Property, plant & equipment 462,4 39,6%

  53. Slide 53: Shareholders & Free Float

    19/02/2024 16/10/2023 # Shares % # Shares % Total shares outstanding 27 365 197 100,0% 27 365 197 100,0% Reference Shareholders & Free Float # Shares % # Shares % Kinehold Bis, Pentascoop and Mr. Joost Bert 13 092 268 47,84% 13 092 268 47,84% Treasury shares 637 121 2,33% 507 621 1,85%  Free Float

  54. Slide 54: Financial calendar

    Thursday 25/04/2024 Business update Q1 2024 Wednesday Annual Shareholders’ Meeting 08/05/2024 Kinepolis Group Financial calendar Thursday 22/08/2024 Half year results H1 2024 49

  55. Slide 55: Financial Statements Annexes

    Financial Statements Annexes

  56. Slide 56: Acquisitions and greenfields: Spain, Netherlands

    Country Project Name # Complexes # Screens Est. Visitors / Year Realised/Closed 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 Parc 1 12 0,6 mio Q4 2022 La Cañada 1 8 0,4 mio Q4 2022 The Netherlands Wolff Bioscope

  57. Slide 57: Acquisitions and greenfields: France, Canada

    Country Project Name # Complexes # Screens Est. Visitors / Year Realised/Closed NL, LUX, FR Utopolis Group 9 63 2,4 mio Q4 2015 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

  58. Slide 58: Acquisitions and greenfields: Canada, USA

    Country Project Name # Complexes # Screens Est. Visitors / Year Realised/Closed Calgary Market Mall (greenfield) 1 5 0,3 mio Q4 2019 Regina (greenfield) 1 8 0,4 mio Q4 2019 Victoria -1 -4 Q3 2020 Dawson Creek -1 -1 Q2 2021 Airdrie -1 -2 Q2 2021 Yukon -2 -4 Q3 2021 Selkirk -1 -1 Q3 2021 Winnipeg Town

  59. Slide 59: Adjustments

    €m YE 2023 YE 2022 EBITDA 0,9* -0,7 Depreciation & Impairment losses -1,2 -0,9 Provisions 0,1 Income tax expense 0,1 0,4 Net impact of adjustments -0,2 -1,1 *Mainly disposal assets: Protime (0,1), Kitchener (0,3) and ERP system (0,3) + ERTC US 54

  60. Slide 60: Adjusted income statement

    INTERNAL €m YE 2023 YE 2022 % Better / -Worse Revenue 605,5 499,9 21,1% Cost of Sales -444,2 -384,5 -15,5% Gross result 161,3 115,4 39,7% Gross result % 26,6% 23,1% Marketing and selling expenses -28,1 -23,5 -19,7% Administrative expenses -29,9 -27,3 -9,6% Other operating income and expenses 3,0 4,8

  61. Slide 61: Balance sheet: assets

    €m 31/12/2023 31/12/2022 Evolution Intangible assets 11,0 11,4 -4,0% Goodwill 174,8 174,9 -0,1% Property, plant & equipment 462,4 482,5 -4,2% Right-of-use assets 318,5 333,5 -4,5% Investment property 15,4 15,9 -2,8% Deferred tax assets 16,1 21,1 -23,7% Non-current tax assets 1,7 1,7 0,0 Derivative f

  62. Slide 62: Balance sheet: equity and liabilities

    €m 31/12/2023 31/12/2022 Evolution Share capital & share premium 20,1 20,1 0,0% Consolidated reserves 171,5 130,0 31,9% Translation reserve 2,2 7,6 -70,9% Equity attributable to the owners of the Company 193,8 157,7 22,9% Non-controlling interests 0,0 -0,1 -111,8% Total equity 193,8 157,6 23,0% Loan

  63. Slide 63: Slide 63

  64. Slide 64: Glossary

    Adjusted operating result Operating result after elimination adjustments; is used to reflect the operating result from normal operating activities. The glossary contains Alternative Performance Measures (APMs) that are aimed to improve the transparency of the financial information. For the full glos

  65. Slide 65: Glossary

    EBITDA Operating result + depreciations + amortisations + impairments + movements in provisions EBITDAL EBITDA less costs related to lease contracts (excl. rent abatements and common charges) Glossary Operating result (EBIT) Gross result – marketing and selling expenses ‐ administrative expenses + o

  66. Slide 66: Kinepolis

    * KINEPOLIS

Kinepolis Group — Non-Deal Roadshow (March 2024) on 6ix