Kinepolis Group Nv · EURONEXT:KIN

Kinepolis Group Nv — H1 2020 Earnings Presentation

55 slides from Kinepolis Group Nv's earnings presentation, Aug 20, 2020

  1. Slide 1: Kinepolis Group Results H1 2020 Analyst Meeting

    Kinepolis Group Results H1 2020 Analyst Meeting August 20, 2020

  2. Slide 2: Business review H1 2020

    Business review H1 2020 CEO, Mr. Eddy Duquenne

  3. Slide 3: Executive Summary

    EXECUTIVE SUMMARY  Until the closure of all cinemas from mid March, visitor numbers increased (+12,0%) and financial results were in good shape, mainly thanks to the addition of the US activities  The closure of all cinemas from mid March, followed by a limited reopening in some territories in the

  4. Slide 4: Visitors

    VISITORS Visitors (000's) 12/03/2020 % of Tot 12/03/2019 % of Tot % ∆ YoY Belgium 1 610 20,4% 1 564 22,2% 2,9% France 1 258 15,9% 1 601 22,7% ‐21,4% Canada 1 923 24,3% 1 960 27,8% ‐1,9% Spain 910 11,5% 799 11,3% 13,8% The Netherlands 1 051 13,3% 912 12,9% 15,2% United States 952 12,0% Luxembourg 177

  5. Slide 5: Key Financials - YTD February

    KEY FINANCIALS - YTD FEBRUARY €m YTD Feb 2020 YTD Feb 2019 % Better / Worse Revenue 95,0 75,1 26,6%  BO/VIS: € 7,78 or + 4,3% Visitors (‘000) 7 054 5 645 25,0%  ITS/VIS: € 4,02 or + 11% EBITDAL 20,6 16,5 24,7% Adjusted EBITDAL 20,9 16,6 25,6% Adjusted EBITDAL margin € 2,96/Vis 21,9% € 2,94/Vis 22,

  6. Slide 6: Impact Covid-19 on Theaters

    Impact Covid-19 on Theaters  Closing of all theatres in all countries between 13th and 16th of March  Re‐opening of theatres during June / July in most countries with capacity restrictions  The Netherlands: 1st of June, all theatres open, in June with max 30 vis/screen, as from the 1st of July, s

  7. Slide 7: COVID-19 Measures: Protect the Customer, Employees, Company

    COVID-19 MEASURES: Protect the Customer, Employees, Company “Prepare for the worst, hope for the best”  Manage the closure of the cinemas  Scale down of all operations and employees in one week, in the theatres as well as in the local and international headquarters  Priority was to protect employ

  8. Slide 8: COVID-19 Measures: Manage the liquidity

    COVID-19 MEASURES: Protect the Customer, Employees, Company “Prepare for the worst, hope for the best”  Manage the liquidity of the company:  Maintain the strong financial position of the company  Cancellation of the 2019 dividend  Postponed payment of bonuses 2019 and the wages of the Executive

  9. Slide 9: COVID-19 Measures: Re-opening of the theatres

    COVID-19 MEASURES: Protect the Customer, Employees, Company  Re‐opening of the theatres  ‘Kinepolis’ re‐opening protocols defined and adopted per country according to local restrictions and rules  Staff has been trained to operate our theatres under the new protocols  Welcome marketing campaigns

  10. Slide 10: Line-up 2020

    LINE-UP 2020 10

  11. Slide 11: Line-up 2021

    LINE-UP 2021 11

  12. Slide 12: Key Financials

    KEY FINANCIALS €m H1 2020 H1 2019 % Better / ‐Worse Revenue 112,6 238,1 ‐52,7% Visitors (‘000) 8 139 17 713 ‐54,1% EBITDA 16,0 69,2 ‐76,9% Adjusted EBITDA 16,4 70,1 ‐76,6% Adjusted EBITDA margin € 2,01/Vis 14,5% € 3,96/Vis 29,4% ‐1489 bps EBITDAL 3,2 55,1 ‐94,2% Adjusted EBITDAL 3,6 55,9 ‐93,6% Adju

  13. Slide 13: Highlights H1 2020

    highlights h1 2020  Highlights H1 2020  Further roll‐out laser projection, including 4 new Laser ULTRA screens in Canada, and RealD 3D  Execution new‐build projects (Haarlem (NL), Leidschendam (NL), Metz Waves (FR) & South East Edmonton (CA)) is going according to plan  Remodeling of acquired ci

  14. Slide 14: Visitors

    visitors Visitors (000's) H1 2020 % of Tot H1 2019 % of Tot % ∆ YoY Belgium 1 610 19,7% 3 467 19,6% ‐53,6% France 1 296 15,9% 3 577 20,2% ‐63,8% Canada 1 992 24,5% 5 480 30,8% ‐63,6% Spain 924 11,4% 2 690 15,2% ‐65,7% The Netherlands 1 135 13,9% 1 996 11,3% ‐43,1% United States 977 12,0% 0 0,0% 100,

  15. Slide 15: Kinepolis Group Market Complexes in Ownership

    kinepolis group 11 3 Market Complexes in Ownership Countries Complexes Screens Share ** # %Visitors Belgium 11 138 0% 10 99% France 13 150 3% 9 83% Canada 45 ‐1 326 ‐4 13% 9 2% Spain 8 137 6% 3 37% The Netherlands 18 130 12% 12 77% United States 10 164 0,4% 7 71% Luxembourg 3 22 81% 1 63% Switzerlan

  16. Slide 16: Planned Greenfields

    planned greenfields Country Project Name # Screens Est. Visitors / Year Estimated opening The Netherlands Schalkwijk Haarlem 6 0,3 mio Q4 2020 Mall of The Netherlands 11 0,5 mio TBC France Metz Waves 6 0,3 mio Q1 2021 Metz Amphithéatre 8 0,3 mio TBC Canada SE Edmonton (Alberta) 8 0,4 mio TBC Total 3

  17. Slide 17: Financial Review H1 2020

    Financial Review H1 2020 CFO, Mr. Nicolas De Clercq

  18. Slide 18: Financial Highlights

    financial highlights  Revenue down by ‐52,7% with ‐54,1% less visitors ; Revenue down by ‐52,7% at constant FX rate  Decrease Visitors (‐54,1%)  Decrease Box Office (‐52,5%)  Decrease In‐theatre Sales (‐52%)  Decrease B2B (‐60%)  Decrease Sales and Events (‐60,5%)  Decrease Screen Adve

  19. Slide 19: Financial Highlights: Cash and Liquidity

    FINANCIAL HIGHLIGHTS  At the start of the crisis (End of Feb): € 195,6 million available cash + credit lines  Cash available at 30th of June: € 143,4 million or cash burn of € 52,1 million of which:  € 20,6 million operational cash burn  € 15,7 million working capital  € 1,0 million interests p

  20. Slide 20: Revenue by Country

    Revenue by country Revenue €m H1 2020 % of Tot H1 2019 % of Tot % ∆ YoY % ∆ Y Vis Belgium 32,4 28,7% 70,0 29,4% ‐53,8% ‐53,6% France 15,1 13,4% 38,2 16,0% ‐60,5% ‐63,8% Canada 23,3 20,7% 63,4 26,7% ‐63,3% ‐63,6% Spain 9,7 8,6% 27,5 11,5% ‐64,8% ‐65,7% The Netherlands 16,2 14,4% 28,7 12,1% ‐43,7% ‐43

  21. Slide 21: Evolution Box Office

    Evolution Box OFFICE 55,5% OF REVENUE * Box Office revenue after deduction of indirect taxes, including VPF revenue 21

  22. Slide 22: Evolution ITS

    EVOLUTION ITS 28,7% OF REVENUE 22

  23. Slide 23: B2B Revenue

    B2B revenuE* 9,3% OF REVENUE * Excluding Brightfish 23

  24. Slide 24: Real Estate at Flat FX

    Real estate at flat fx 4,3% OF REVENUE 24

  25. Slide 25: Brightfish

    Brightfish 1,2% OF REVENUE 25

  26. Slide 26: Film Distribution

    Film distribution 1% OF REVENUE # releases 11 4 26

  27. Slide 27: Adjusted Operating Costs

    ADJUSTED operating costs €m H1 2020 H1 2019 % Better / ‐Worse Adjusted Marketing and Selling expenses ‐7,0 ‐11,7 40,1% Adjusted Administrative Expenses ‐10,7 ‐13,4 20,2% Adjusted Other Operating Income / Cost 5,0 0,2 2417,3% Adjusted Operating Costs ‐12,7 ‐24,9 49,1% Adjustments Operating Costs ‐0,3

  28. Slide 28: Adjustments

    ADJUSTMENTS €m H1 2020 H1 2019 EBITDA ‐0,4 ‐0,8 Depreciations and impairment losses ‐0,3 0,0 Provisions 0,1 0,0 Income tax expense 0,1 0,8 Net impact of adjustments ‐0,4 0,0 28

  29. Slide 29: Evolution Adjusted EBITDA per Visitor

    Evolution ADJUSTED ebitda* per visitor Adjusted EBITDA per visitor evolution: ‐49,2% 8,00 € 7,00 € 6,87 6,59 6,00 € 5,05 5,00 € 4,67 3,92 3,96 4,03 4,00 € 3,68 3,63 2,91 ‐49,2% 3,00 € 2,52 2,15 2,01 2,00 € 1,69 1,23 1,00 € 0,00 € H1 2019 H1 2020 Belgium* France Canada Spain The Netherlands United St

  30. Slide 30: Adjusted EBITDA by Country

    ADJUSTED ebitda by country €m H1 2020 % of Total H1 2019 % of Total % Better / ‐Worse % ∆ Y Vis Belgium 1,1 6,9% 16,4 23,4% ‐93,1% ‐53,6% France 2,8 17,0% 14,0 20,0% ‐80,1% ‐63,8% Canada 3,4 20,6% 15,9 22,8% ‐78,8% ‐63,6% Spain 2,3 14,2% 9,8 13,9% ‐76,2% ‐65,7% The Netherlands 4,6 28,0% 10,1 14,4% ‐

  31. Slide 31: Adjusted EBITDA margin by country

    ADJUSTED ebitda * Belgium 39,9% 26,5% France 36,7% 18,5% Canada 25,1% 14,5% Spain 35,5% 24,1% The Netherlands 35,1% 28,3% United States 0,0% 10,6% Luxembourg 36,9% 18,9% Switz. & Poland 41,3% 26,3% Total 29,4% 14,5% H1 2019 H1 2020 *Excluding corporate entities, KFD & Brightfish 31

  32. Slide 32: Depreciation, Amortization, Provisions

    Depreciation, amortization, provisions €m H1 2020 H1 2019 % Better / ‐Worse Depreciation, amortization and provisions ‐27,9 ‐22,0 ‐27,0% Depreciations on Right‐of‐Use Assets ‐13,9 ‐11,1 ‐25,4% Total Depreciation, amortization and provisions ‐41,8 ‐33,1 ‐26,5% €m 0 ‐10 ‐20 ‐30 ‐33,1 0,0 ‐33,0 ‐2,8 ‐4

  33. Slide 33: Financial Result

    Financial result €m H1 2020 H1 2019 % Better / ‐Worse Interest Expense ‐7,22 ‐4,17 ‐73,1% Financial charges IFRS 16 ‐5,32 ‐4,36 ‐22,0% FX 0,07 ‐0,08 180,2% Other (CNC, bank charges,...) ‐1,16 ‐1,38 16,1% Financial (Cost) / Income ‐13,64 ‐10,00 ‐36,3% €m 0,0 ‐2,0 ‐4,0 ‐6,0 ‐8,0 ‐10,0 ‐10,00 ‐12,0 ‐2,

  34. Slide 34: Taxes

    taxes €m H1 2020 H1 2019 % Better / ‐Worse Profit before taxes ‐39,5 26,2 ‐250,9% Taxes 9,8 ‐7,4 233,7% Profit ‐29,7 18,8 ‐257,7% Effective Tax Rate ('ETR') 24,9% 28,1% ‐320 bps Tax effect on adjustments 0,1 0,8 ‐84,2% Adjusted Effective Tax Rate ('Adj. ETR') 24,9% 30,2% ‐536 bps €m 2,0 9,7 0,1 9,8

  35. Slide 35: Adjusted EBITDAL to Net Result

    ADJUSTED ebitdaL to net result €m 20,0 16,4 ‐41,7 10,0 3,6 12,8 ‐25,3 ‐29,7 0,0 ‐10,0 ‐20,0 ‐13,6 9,7 ‐0,4 ‐30,0 ‐40,0 ‐50,0 Adjusted Lease Adjusted EBITDA Adjusted Depr, Adjusted EBIT Adjusted Adjusted Other Result H1 2020 EBITDAL H1 Payments Amort, Prov H1 2020 financial result taxes Adjustments 2

  36. Slide 36: Investments

    investments €m H1 2020 H1 2019 €m Belgium 3,4 7,6 35 30,8 France 1,1 4,2 30 Canada 3,1 6,8 25 Spain 1,0 1,7 The Netherlands 1,1 2,3 20 United States 0,1 0,0 15 12,4 12,1 10,3 Luxembourg 0,4 1,5 10 Other 0,0 0,3 5,8 4,5 Maintenance & Internal Expansion 10,3 24,5 5 External Expansion 10,3 30,8 0 TOTAL

  37. Slide 37: Free Cash Flow: H1 2020 vs H1 2019

    Free cash flow: H1 2020 vs H1 2019 €m 30,0 20,0 10,0 0,0 25,0 ‐10,0 ‐20,0 ‐30,0 ‐56,3 0,9 ‐29,4 5,6 2,8 ‐40,0 ‐15,4 7,9 ‐50,0 FCF H1 2019 EBITDA Income Tax Working Capex ‐ Interest Payment of lease FCF H1 2020 Paid Capital Maintenance Paid liabilities* * The payment of lease liabilities is included

  38. Slide 38: Net Financial Debt Evolution

    Net financial debt evolution €m H1 2020 YE 2019 Better/‐Worse NFD Evolution Net Financial Debt (NFD) excl. lease liabilities 462,8 417,0 ‐45,9 ‐11,0% Net Financial Debt (NFD) incl. lease liabilities 863,3 833,1 ‐30,2 ‐3,6% Leverage ratio*: NFD / Adj. EBITDA 7,17 4,78 Leverage ratio*: NFD excl. lease

  39. Slide 39: Net Financial Debt Evolution

    net financial debt evolution €m H1 2020 YE 2019 Better/‐Worse NFD Evolution Net Financial Debt (NFD) excl. lease liabilities 462,8 417,0 ‐45,9 ‐11,0% Net Financial Debt (NFD) incl. lease liabilities 863,3 833,1 ‐30,2 ‐3,6% Leverage ratio*: NFD / Adj. EBITDA 7,17 4,78 Leverage ratio*: NFD excl. lease

  40. Slide 40: Ratios

    RATIOS H1 2020 excl. 2019 excl. H1 2020 2019 lease payments lease payments Adjusted EBITDA 16 366 70 069 3 602 55 926 Note that all ratios are compared to the ratios per 31/12/2019 except for the Revenue 112 575 238 080 112 575 238 080 adjusted EBITDA margin which is compared to 30/06/2019. Adjusted

  41. Slide 41: Ratios: EBITDA Margin, ROCE, Gearing

    ratios Adjusted EBITDA Margin ROCE* Gearing** 25% 3,00 35% 29,4% 2,60 30% 20% 2,50 25% 17,9% 17,3% 26,7% 27,5% 16,3% 16,6% 23,4% 23,5% 1,97 20% 2,00 14,5% 15% 1,56 15% 1,50 1,27 10% 1,13 10% 5% 1,00 3,2% 0% 5% 6,7% 0,50 H1 H1 H1 H1 H1 2016 2017 2018 2019 2020 0% 0,00 Adjusted EBITDAL margin 2016 201

  42. Slide 42: Maturity Profile Financial Debt

    Maturity profile financial debt** € 250.000.000 Priv. Plac 7,5Y 225.000.000 225.000.000 200.000.000 175.000.000 150.000.000 RCF 5Y* 120.000.000 125.000.000 Priv. Plac. 8Y (Dec) 100.000.000 Priv. Plac. 7Y 60.000.000 Priv Plac. 10Y 61.400.000 65.000.000 75.000.000 50.000.000 Term loan Term loan Term l

  43. Slide 43: Balance Sheet

    Balance sheet €m 30/06/2020 % of Total 31/12/2019 % of Total €m 30/06/2020 % of Total 31/12/2019 % of Total Intangible assets 12,7 1,0% 13,0 1,0% Share capital & share premium 20,1 1,5% 20,1 1,6% Goodwill 168,1 12,9% 169,4 13,2% Consolidated reserves 162,6 12,5% 191,4 14,9% Property, plant & equipme

  44. Slide 44: Shareholders

    shareholders 20/08/2020 18/02/2020 # Shares % # Shares % Total shares outstanding 27 365 197 100% 27 365 197 100% Reference Shareholders & Free Float # Shares % # Shares % Kinehold Bis, Pentascoop and Mr. Joost Bert 13 192 268 48,21% 13 192 268 48,21% Treasury shares (own shares) 480 851 1,76% 480 8

  45. Slide 45: Financial Calendar

    Financial calendar Thursday 12/11/2020 Business Update Q3 2020 Thursday 25/02/2021 Annual results 2020 Press & Analyst meeting Wednesday 12/05/2021 Business update Q1 2021 Annual Shareholders’ Meeting Kinepolis Group 45

  46. Slide 46: Q&A Thank you

    Q&A Thank you KINEPOLIS GROUP YY

  47. Slide 47: Annexes Financial Statements

    Annexes Financial Statements Results H1 2020

  48. Slide 48: Realized Acquisitions and Greenfields (2014 – 2020)

    REALIZED ACQUISITIONS AND greenfields (2014 – 2020) Country City # Complexes # Screens Est. Visitors / Year Realized 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 The Netherlands Wolff Bioscopen 9 46 1,6 mio Q3 2014 Acq

  49. Slide 49: Consolidated Income Statement

    Consolidated income statement €m H1 2020 H1 2019 % Better / ‐Worse Revenue 112,6 238,1 ‐52,7% Cost of Sales ‐125,4 ‐176,6 29,0% Gross profit ‐12,8 61,5 ‐120,9% Gross profit % ‐11,4% 25,8% Marketing and selling expenses ‐7,0 ‐11,7 40,1% Administrative expenses ‐11,0 ‐14,2 22,5% Other operating income

  50. Slide 50: Consolidated Balance Sheet

    Consolidated balance sheet €m 30/06/2020 31/12/2019 % Better / ‐Worse Intangible assets 12,7 13,0 ‐2,2% Goodwill 168,1 169,4 ‐0,7% Property, plant & equipment 532,1 542,3 ‐1,9% Right‐of‐use assets 379,4 397,2 ‐4,5% Investment property 16,3 16,9 ‐3,3% Deferred tax assets 2,5 1,2 104,7% Other receivab

  51. Slide 51: Consolidated Balance Sheet

    Consolidated balance sheet €m 30/06/2020 31/12/2019 % Better / ‐Worse Share capital & share premium 20,1 20,1 0,0% Consolidated reserves 162,6 191,4 ‐15,0% Translation reserve ‐5,0 ‐0,6 ‐760,3% Equity attributable to the owners of the Company 177,7 211,0 ‐15,8% Non‐controlling interests 0,1 0,3 ‐48,

  52. Slide 52: Cash Flow Statement

    Cash flow statement €m H1 2020 H1 2019 Better / ‐Worse Profit before tax ‐39,5 26,2 ‐65,6 Adjustments for: Depreciation, amortization & provisions 41,7 33,1 8,7 Government grants ‐0,4 ‐0,4 0,0 Gains / losses on sale of PPE & financial assets 0,0 ‐0,3 0,3 Financial result & Share based payments 13,2

  53. Slide 53: Free Cash Flow

    Free cash flow €m H1 2020 H1 2019 Better / ‐Worse Cash Flow before WC movements & tax paid 11,2 67,5 ‐56,3 Income taxes paid ‐0,9 ‐6,4 5,6 Working capital ‐19,1 ‐3,7 ‐15,4 Capital exp – maintenance ‐4,5 ‐12,4 7,9 Interest paid ‐3,8 ‐6,6 2,8 Payment of lease liabilities (capital portion + interest),

  54. Slide 54: Glossary

    Glossary The glossary below contains Alternative Performance Measures (APMs) that are aimed to improve the transparency of the financial information. For the full glossary, we refer to the corporate website of Kinepolis.  Adjusted operating profit: Operating profit after elimination adjustments; is

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