Kinepolis Group NV · EURONEXT:KIN
Kinepolis Group NV — H1 2015 Earnings Presentation
44 slides from Kinepolis Group NV's earnings presentation, Aug 27, 2015
Slide 1: Kinepolis Group Results Half 1 2015
Kinepolis Group Results Half 1 2015 Analyst & Press Meeting 27 August 2015
Slide 2: Business Review Half 1 2015
Business Review Half 1 2015 CEO, Mr Eddy Duquenne 2
Slide 3: Key financials
Key financials €m H1 2015 H1 2014* Better / (Worse) Visitors (‘000) 9.799 8.827 11,0% Revenue 130,2 115,1 13,1% EBITDA 34,8 29,9 16,1% REBITDA € 3,66/Vis 35,8 € 3,50/Vis 30,9 16,0% REBITDA Margin 27,5% 26,8% EBIT 23,6 20,2 16,8% REBIT 24,7 20,8 18,9% REBIT Margin 19,0% 18,1% Profit 14,4 13,0 10,7% C
Slide 4: Highlights
Highlights Revenue growth and further cost efficiency of existing business (excluding 2014 expansion) Strong contribution to revenue and REBITDA of companies acquired in 2014 Revenue +13,1% and REBITDA +16,0% with 11% more visitors Higher interest charges due to prefinancing future expansion
Slide 5: Major events
Major events H1 2015 results reflect strategic pillars set out in 2008 Best Marketer Best Cinema Operator Best Property Manager Further development and implementation of strategy in 2015 Further steps in expansion strategy April 2015: Acquisition cinema building Enschede (the Netherlan
Slide 6: Kinepolis complexes today
Kinepolis complexes today KINEPOLIS GROUP Complexes Screens Belgium * 12 148 France 8 +1 99 +12 Spain 5 91 The Netherlands 8 -1 44 -2 Poland * 1 18 8 Switzerland 1 8 12 Total 35 0 408 +10 8 Market Share: Belgium: to be announced** France: 3,2% 5 Spain: 4,5% The Netherlands: 5,2% 380 digital scre
Slide 7: Planned greenfields
Planned greenfields Country City # Theaters Est. Visitors / Estimated Year opening The Netherlands Dordrecht 6 0,3 mio Q1 2016 Breda 10 0,45 mio Q3 2016 Utrecht 14 1,25 mio Q1 2017 France Brétigny-sur-Orge 10 0,5 mio Q4 2016 27 augustus 2015 7
Slide 8: Revenue by country
Revenue by country Switzerland Poland 1,8% The Netherlands Switzerland 7,4% Poland Spain 1,7% 12,3% Spain 13,9% € 130,2 m Belgium France € 115,1 m Belgium 60,3% 54,1% 25,7% France 22,8% H1 2014 H1 2015 27 augustus 2015 8
Slide 9: Visitors & Movies
Visitors & Movies Visitors (000’s) H1 2015 % of Tot H1 2014 % of Tot % Δ YoY Belgium 4.048 41,3% 4.166 47,2% (2,8)% France 3.015 30,8% 3.064 34,7% (1,6)% Spain 1.933 19,7% 1.536 17,4% 25,8% The Netherlands 734 7,5% 0,0 0,0% - Switzerland 69 0,7% 61 0,7% 13,1% Total 9.799 100% 8.827 100% 11,0% Top 5
Slide 10: Revenue by activity
Revenue by activity Film Brightfish Distribution Real Estate 4,5% 1,0% Film 4,1% Brightfish Distribution 3,9% 2,8% Real Estate 3,8% B2B* 13,0% B2B* 13,6% Box Office Box Office € 130,2 m 55,1% € 115,1 m 54,5% In-theatre In-theatre Sales Sales 21,3% 22,3% H1 2014 H1 2015 * Including Cinema Screen Adve
Slide 11: Ratios
Ratios REBIT & REBITDA ROCE Gearing 35% 30% 1,80 30% 1,47 27,0% 27,4% 27,9% 25% 26,8% 27,5% 21,8% 22,9% 1,40 19,8% 20,9% 20,7% 25% 1,13 20% 18,9% 19,1% 19,0% 1,00 0,84 20% 17,8% 18,1% 0,83 15% 15% 0,57 0,60 10% 10% 2011 2012 2013 2014 2015 5% 0,20 H1 H1 H1 H1* H1 2011 2012 2013 2014 2015 2011 2012 2
Slide 12: Net Financial Debt Evolution
Net Financial Debt Evolution €m 31 Jun 2015 31 Dec 2014 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 153,7 118,6 (35,1) (29,6)% Leverage ratio*: NFD / EBITDA 2,0 1,7 €m € 180 3,5 3,50 X € 160 3,0 € 140 2,5 € 120 € 100 2,0 € 80 1,5 € 60 1,0 € 40 0,5 € 20 €0 0,0 YE 09 YE 10 YE 11 YE 12 YE
Slide 13: Line-up Half 2 2015
Line-up Half 2 2015 2D 3D Major sequels • Mission Impossible – Rogue Nation (Q3) • Minions (Q3) • Ted 2 (Q3) • Terminator Genysis (Q3) • The Maze Runner: The Scorch Trials (Q3) • The Hunger Games: Mockingjay – Part 2 (Q4) • The Fantastic Four (Q3) • Star Wars: Episode VII – The Force Awakens (Q4) •
Slide 14: Financial Review Half 1 2015
Financial Review Half 1 2015 CFO, Mr Nicolas De Clercq 14
Slide 15: Change in accounting treatment
Change in accounting treatment Levies (property taxes) (IFRIC 21) €m H1 2015 H1 2014 Adjustments H1 2014 As restated As previously reported Revenue 130,2 115,1 115,1 REBITDA 35,8 30,9 (0,5) 31,4 REBITDA Margin 27,5% 26,8% 27,3% REBIT 24,7 20,8 (0,5) 21,3 REBIT Margin 19,0% 18,1% 18,5% Profit 14,4 13
Slide 16: Revenue by country
Revenue by country €m H1 2015 % of Tot H1 2014 % of Tot % Δ YoY Belgium 70,4 54,1% 69,5 60,3% 1,3% France 29,7 22,8% 29,6 25,7% 0,5% Spain 18,1 13,9% 14,1 12,3% 28,0% The Netherlands 9,6 7,4% 0,0 - - Switzerland & Poland 2,4 1,8% 1,9 1,7% 23,1% Total 130,2 100% 115,1 100% 13,1% 16 27 augustus 2015
Slide 17: Revenue by activity
Revenue by activity €m H1 2015 H1 2014 % Δ YoY Box Office 71,7 62,7 14,3% In-theatre Sales 29,0 24,5 18,6% Sales and Events 14,1 12,6 11,5% Screen Advertising 2,9 3,0 (2,7)% Real Estate 5,4 4,3 24,2% Brightfish 5,8 4,5 29,6% Film Distribution 1,3 3,2 (60,0)% Other 0,0 0,3 (94,3)% Total 130,2 115,1 1
Slide 18: Cinema Revenue
Cinema Revenue €m €m Box Office In-theatre Sales 74 30 62,7 +14,3% 71,7 24,5 +18,6% 29,0 72 29 70 28 68 27 66 26 64 25 62 24 60 23 58 22 H1 2014 H1 2015 H1 2014 H1 2015 27 augustus 2015 18
Slide 19: Evolution Box Office & ITS
Evolution Box Office & ITS Box office* / visitor ITS / visitor 10,00 € 5,00 € 9,50 € 4,50 € 9,00 € +2,9% 4,00 € +6,9% 8,50 € 3,50 € 8,00 € 2,96 7,32 7,50 € 3,00 € 2,77 7,11 7,00 € 2,50 € 6,50 € 2,00 € 6,00 € 1,50 € 5,50 € 5,00 € 1,00 € H1 2014 H1 2015 H1 2014 H1 2015 * Box Office revenue after deduc
Slide 20: B2B Revenue
B2B Revenue €m Sales & Events* €m Screen Advertising* 16 4 12,6 +11,5% 14,1 3,0 -2,7% 2,9 14 3 12 10 2 8 6 1 4 2 0 H1 2014 H1 2015 H1 2014 H1 2015 * Excluding Brightfish * Excluding Brightfish 27 augustus 2015 20
Slide 21: Real Estate at flat FX
Real Estate at flat FX €m 6 4,3 +23,8% 5,4 5 4 3 2 1 0 H1 2014 H1 2015 27 augustus 2015 21
Slide 22: Brightfish
Brightfish €m 8 4,5 +29,6% 5,8 6 4 3,3 1,5 2 3,0 2,5 0 H1 2014 H1 2015 Screen Events Advertising 27 augustus 2015 22
Slide 23: Film Distribution
Film Distribution €m 4 3,2 -60,0% 1,3 3 2 3,2 1 1,3 0 H1 2014 H1 2015 Belgium # releases 15 14 27 augustus 2015 23
Slide 24: Operating Costs
Operating Costs €m H1 2015 H1 2014 % Better / (Worse) Marketing & Selling Expenses (6,6) (6,3) (5,2)% Administrative Expenses (9,0) (7,7) (17,1)% Other Operating Income/(Costs) 0,4 0,1 161,8% Total Operating Costs (15,2) (13,8) (10,3)% Non-Current (0,7) (0,4) Current Operating Costs (14,5) (13,4) (8
Slide 25: Evolution REBITDA per Visitor
Evolution REBITDA per Visitor 7,00 € +4,5% 6,00 € 5,69 5,00 € 5,24 4,00 € 3,66 3,50 3,69 3,00 € 3,35 2,00 € 2,40 2,10 1,84 1,00 € 0,00 € H1 2014* H1 2015 Belgium** France Spain The Netherlands * H1 and H2 2014 restated due to the application of IFRIC 21 as from 1 January 2015 ** Excluding corporate
Slide 26: REBITDA by Country
REBITDA by Country €m H1 2015 % of Total H1 2014* % of Total % Better/(Worse) Belgium 18,1 50,5% 17,2 55,8% 5,0% France 11,1 31,0% 10,3 33,2% 8,3% Spain 4,1 11,4% 2,8 9,1% 44,3% The Netherlands 1,8 4,9% 0,0 0,0% - Switzerland & Poland 0,7 2,2% 0,6 1,9% 34,9% TOTAL 35,8 100,0% 30,9 100,0% 16,0% * H1
Slide 27: REBITDA margin
REBITDA margin excl. Corporate entities, KFD, Brightfish 38,1% Belgium 37,2% 36,9% France 34,3% ** Spain 32,1% 28,8% ** The 28,4% Netherlands Switz. 32,6% & Poland 29,6% 27,5% Total 26,8% H1 2015 H1 2014* * H1 2014 restated due to the application of IFRIC 21 as from 1 January 2015 ** REBITDAR (i.e.
Slide 28: Depreciation, Amortization, Provisions
Depreciation, Amortization, Provisions €m 0 -2 -4 -6 -8 -10 (9,7) (0,4) (10,1) -12 (1,0) (11,1) (0,1) (11,2) -14 H1 2014 Non-current Current Normal Current Non-current H1 2015 H1 2014 H1 2014 diff's H1 2015 H1 2015 27 augustus 2015 28
Slide 29: REBITDA to Net Result
REBITDA to Net Result €m 40 35,8 35 30 24,7 25 (11,1) 20 (4,1) 14,4 15 (5,5) (0,7) 10 5 0 REBITDA Current REBIT Current Current Non-current Result H1 2015 Depr, financial taxes items Amort, result Prov 27 augustus 2015 29
Slide 30: Financial Result
Financial Result €m 0,0 -0,5 -1,0 -1,5 -2,0 -2,5 -3,0 (2,6) -3,5 -4,0 (1,2) (0,1) (0,2) (4,1) -4,5 -5,0 H1 2014 Interest FX Other H1 2015 27 augustus 2015 30
Slide 31: Taxes
Taxes €m H1 2015 H1 2014* % Better /(Worse) Profit before taxes 19,5 17,6 11,2% Taxes (5,2) (4,6) (12,5)% Profit 14,4 13,0 10,7% Effective Tax Rate (‘ETR’) 26,5% 26,2% -3,0 €m -3,5 ETR ETR ETR ETR 26,2% 26,4% 26,8% 26,5% -4,0 -4,5 (4,6) -5,0 (0,2) (4,8) (5,2) -5,5 (5,5) +0,3 -6,0 (0,9) (0,1) +0,1 +0
Slide 32: Free Cash Flow H1: 2015 vs 2014
Free Cash Flow H1: 2015 vs 2014 €m 20 18 +5,1 (5,3) 16 14 +0,3 11,9 (3,6) 12 11,6 10 +1,4 (0,2) 9,3 8 6 4 FCF Working Current FCF EBITDA Income Tax Working Capex - Interest FCF H1 2014* Capital (one- Paid Capital Maintenance Paid H1 2015 timers) * H1 2014 restated due to the application of IFRIC 21
Slide 33: Investments
Investments 100% 79% 25,1 €m 80% 52% 60% 4,4 €m 35% 40% 3,1 €m 11% 13% 10% 20% 3,5 €m 1,1 €m 3,0 €m 0% Maintenance Internal Expansion External Expansion H1 2015 H1 2014 €m H1 2015 H1 2014 Belgium 3,6 4,2 France 1,2 1,4 Spain 1,5 1,8 The Netherlands 0,2 0,0 Other 0,0 0,1 Maintenance & Internal Expans
Slide 34: Net Financial Debt Evolution
Net Financial Debt Evolution €m 30 Jun 2015 31 Dec 2014 Better/(Worse) % Better/(Worse) Net Financial Debt (NFD) 153,7 118,6 (35,1) (29,6)% Leverage ratio*: NFD / EBITDA 2,0 1,7 * Not clubdeal definition €m 0 -20 -40 -60 -80 -100 (8,1) (9,5) -120 (118,6) +34,1 -140 (31,6) (4,1) +0,2 +7,0 -160 (23,0)
Slide 35: Maturity profile financial debt
Maturity profile financial debt € 100.000.000 RCF 5y 80.000.000 90.000.000 60.000.000 Bond 7y Priv. Plac. 7y 59.122.000 61.400.000 40.000.000 Priv. Plac. 10y 34.600.000 20.000.000 Exchange 8y 15.878.000 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 27 augustus 2015 35
Slide 36: Balance sheet
Balance sheet €m 30 Jun % of 31 Dec % of €m 30 Jun % of 31 Dec % of 2015 Total 2014 Total 2015 Total 2014 Total Intangible assets 4,5 1% 4,0 1% Equity 104,7 28% 104,7 30% Goodwill 35,9 10% 36,1 10% LT financial debt 179,9 48% 91,5 26% Land & buildings 218,0 58% 197,1 57% Provisions(1) 2,6 1% 2,5 1%
Slide 37: Shareholders
Shareholders 26/08/2015 23/02/2015 # Shares % # Shares % Total shares outstanding 27.365.197 100 % 27.365.197 100 % Refence Shareholders & Free Float # Shares % # Shares % Kinohold Bis and Mr. Joost Bert 13.254.590 48,44% 12.908.050 47,17% Treasury shares (Own shares) 269.221 0,98% 1.553.591 5,68% F
Slide 38: Financial Calendar
Financial Calendar Tuesday 17/11/2015 Business update Q3 2015 Thursday 18/02/2016 Analyst and Press Meeting FY 2015 Wednesday 11/05/2016 Business update Q1 2016 Wednesday 11/05/2016 Annual Shareholders’ Meeting 27 augustus 2015 38
Slide 39: Annexes Financial Statements
Annexes Financial Statements Results H1 2015 39
Slide 40: Consolidated Income Statement
Consolidated Income Statement €m H1 2015 H1 2014* % Better / (Worse) Revenue 130,2 115,1 13,1% Cost of sales (91,4) (81,1) (12,6)% Gross profit 38,8 34,0 14,2% Gross profit % 29,8% 29,6% Marketing & selling expenses (6,6) (6,3) (5,2)% Administrative expenses (9,0) (7,7) (17,1)% Other operating incom
Slide 41: Consolidated Balance Sheet (1)
Consolidated Balance Sheet (1) €m 30/06/2015 31/12/2014 % Better / (Worse) Intangible assets 4,5 4,0 11,1% Goodwill 35,9 36,1 (0,6)% Property, plant & equipment 236,7 215,4 9,9% Investment property 32,5 32,6 (0,5)% Deferred tax assets 1,2 1,3 (5,2)% Other receivables 12,9 12,7 2,2% Other financial a
Slide 42: Consolidated Balance Sheet (2)
Consolidated Balance Sheet (2) €m 30/06/2015 31/12/2014 % Better / (Worse) Capital & share premium 20,1 20,1 0,0% Consolidated reserves 84,9 86,3 (1,7)% Translation differences (0,3) (1,7) 83,8% Equity attributable to equity holders of the parents 104,7 104,7 (0,1)% Non-controlling interests 0,0 0,0
Slide 43: Cash Flow Statement
Cash Flow Statement €m H1 2015 H1 2014* Better / (Worse) Cash flows from operating activities Profit before tax 19,5 17,6 1,9 Adjustments for: Depreciation, amortization & provisions 11,2 9,7 1,5 Government grants (0,3) (0,3) 0,0 Gains / losses on sale of PPE & financial assets 0,1 0,0 0,1 Financial
Slide 44: Free Cash Flow
Free Cash Flow €m H1 2015 H1 2014* Better / (Worse) Cash Flow before WC movements & tax paid 34,1 29,0 5,1 Income taxes paid (8,1) (2,8) (5,3) Working capital (9,5) (6,2) (3,3) Capital exp – maintenance (3,1) (4,5) 1,4 Interest paid (4,1) (3,9) (0,2) Free cash flow 9,3 11,6 (2,3) Capital exp - digit