Cineworld — FY2017 Earnings Presentation
24 slides from Cineworld's earnings presentation, Mar 15, 2018
Slide 1: Cineworld Group 2017 Results
Cineworld Group 2017 Results 15th March 2018
Slide 2: Overview
Overview
Slide 3: Summary of 2017 – another record year
Summary of 2017 – another record year ➢ Reached the milestone of 100m admissions ❖ Group➢ revenue growth Overall strong of performance financial 11.6% for the❖ Adjusted Group, diluted EBITDA growth EPS growth of of 13.2%, 8.4% in constant currency 12.1% to 38.9p ➢ Record growth achieved in Poland, R
Slide 4: Financial Review
Financial Review
Slide 5: Financial Highlights
Financial Highlights Group Group Statutory ➢ Statutory revenue growth of 11.6% (constant 2017 2016 Movement currency at 8.0%) Admissions 103.8m 100.3m 3.5% ➢ Statutory Adjusted EBITDA(1) growth of 12.7% £m £m (constant currency 7.4%) Box office 553.7 500.9 10.5% ➢ Adjusted diluted EPS up 12.1% to 38
Slide 6: Performance summary
Performance summary ➢ Group revenue growth UK & Ireland ROW Group of 8.0% 2017 Movement 2017 Movement 2017 Movement versus 2016 versus 2016 versus 2016 ➢ 2.3% increase in the UK box office revenues Admissions 53.0m 2.3% 50.8 4.7% 103.8 3.5% (total market increased £m £m £m by 1.4% - source IBOE) Box
Slide 7: Box Office & Retail Performance
Box Office & Retail Performance UK 2017 Admissions Bu ➢ Admissions = 53.0m +2.3% Ro ➢ ATP = £6.51 +4.0% Is UK - 53.0m Poland 17.7m ➢ SPP = £2.27 +4.4% Ro Hungary - 9.4m Romania - 8.5m UK Israel - 6.6m Hu ROW (constant currency) UK Hu Czech - 5.1m ➢ Admissions = 50.8m +4.7% Bulgaria -2.1m Po Is ➢ ATP
Slide 8: Other income
Other income ➢ Other income includes revenue from advertising, distribution, screen and event hire and online booking fees ➢ Overall it has increased by 9.9% (8.0% on a constant currency basis) ➢ UK & Ireland performance + 2.3% ➢ Advertising performed well benefitting from increase in admissions ➢ D
Slide 9: Group profit and loss
Group profit and loss Includes £5.1m of amortisation related to intangible £m 2017 2016 assets which were identified as part of the Cinema City business combination. Revenue 890.7 797.8 Adjusted EBITDA 198.2 175.8 The £1.9m net exceptional items includes the following items: Depreciation and amortis
Slide 10: Growth in the adjusted diluted EPS of 12.1%
Growth in the adjusted diluted EPS of 12.1% £m 2017 2016 £m 2017 2016 Adjusted EBITDA 198.2 175.8 Adjusted items Depreciation and amortisation (68.1) (54.0) Amortisation of Cinema City intangibles 5.1 4.6 Adjusted Operating profit 130.1 121.8 Exceptional items 3.9 4.4 Finance expense (2.6) (10.4) Fo
Slide 11: Cash flow statement and net debt
Cash flow statement and net debt £m Cash Bank Other Net loans Debt ➢ Of the net £56.6m non-cash movement, Opening position at 1 January 2017 55.8 (322.0) (16.1) (282.3) £68.1m relates to the add back of Operating profit 128.2 - - 128.2 depreciation and amortisation Non-cash movements 56.6 (1.4) (1.0
Slide 12: Financial Outlook
Financial Outlook ➢ Strong film slate for 2018 ➢ Encouraging performance for January and February across all territories ➢ Capital expenditure for 2018 expected to be approximately £80m for the UK/ROW ➢ Focus on cash generation to reduce the net debt to adjusted EBITDA ratio ➢ Cost of debt expected
Slide 13: Business Update
Business Update
Slide 14: Key Achievements
Key Achievements ❖ 103.8m admissions ❖ Nine new openings ❖ Acquisition of Empire ❖ Completion post year Newcastle end of Regal Entertainment acquisition ❖ Six ❖ Leading refurbishments technological completed innovation
Slide 15: Next generation cinemas – new screens
Next generation cinemas – 109 new screens UK & Ireland ➢ Leeds – 11 screens ➢ Ely – 6 screens ➢ South Ruislip – 11 screens ➢ Bracknell – 12 screens ROW ➢ Zichron – Israel – 12 screens ➢ Galata – Romania – 8 screens ➢ Bialoleka – Poland – 11 screens ➢ Chodov – Czech Republic – 18 screens ➢ Wroclaw –
Slide 16: Next generation cinemas – refurbishments
Next generation cinemas – refurbishments Continued delivery of refurbishments with the following completed in 2017 ➢ Ipswich – Extension and refurbishment ➢ Northampton – Refurbishment including a Superscreen ➢ Solihull – Refurbishment including Superscreen and Starbucks ➢ Hemel Hempstead – one of t
Slide 17: Technological Innovation
Technological Innovation 2016 NEW 2016 NEW 2016 NEW 33 + 2 9 + 2 27 + 11 2017 2017 2017 35 11 38
Slide 18: Retail Offerings
Retail Offerings 2016 NEW 2016 NEW 24 + 5 9 + 3 2017 2017 29 12
Slide 19: The New Cineworld
The New Cineworld
Slide 20: Regal acquisition
Regal acquisition ➢ Acquisition completed on 28th February 2018 ➢ Cineworld Group is now the second largest Cinema chain in the world (by number of screens) ➢ Encouraging performance for US box office in January and February ➢ Integration plan progressing as expected
Slide 21: What is coming?
What is coming? ➢ 19 sites, (3 already opened),176 screens (27 already opened)planned to open in 2018 ➢ 10 (1 opened) sites in the US ➢ 6 (2 opened) sites in the UK ➢ 3 sites in the ROW ➢ Further refurbishments planned in the UK and ROW ➢ Plans for first cinema refurbishments progressing well ➢ Cont
Slide 22: 2018 – Key Titles
2018 — Key Titles HOTEL. TRANSILVANI SS} —~ ane - y
Slide 23: 2019 and beyond – Key Titles
2019 and beyond — Key Ane atenrry 2 DECADES = 10 FILMS | 1SAGA s a” 2 tJ 27 w,
Slide 24: Q&A
Q&A Cineworld Group plc