Kinepolis Group NV · EURONEXT:KIN
Kinepolis Group NV — FY2006 Earnings Presentation
46 slides from Kinepolis Group NV's earnings presentation, Mar 9, 2007
Slide 1: Kinepolis Group Results 2006
KINEPOLIS GROUP RESULTS 2006 1
Slide 2: Key Figures (IFRS)
Key Figures (IFRS) KEY FIGURES in '000 € 31/12/2006 31/12/2005 %change Total admissions 23,913 22,574 6% Revenue 211,191 192,812 10% EBITDA 48,720 42,660 14% Profit from operations 26,507 20,728 28% Net finance cost -6,693 -7,365 -9% Profit before tax 19,814 13,364 48% Income tax expense -5,179 -5,2
Slide 3: Construction Project Bruges 2006
Construction Project Bruges 2006 8 halls, 1607 seats Investment incl. land: € 10M 350 000 visitors/year Market position & profitability Start construction: Dec 2005 Opening: July 2006 Concept 3
Slide 4: Construction Project Ostend 2007
Construction Project Ostend 2007 8 halls, 1800 seats Investment incl. land: € 10M 350 000 visitors/year Market position & profitability Building permit: July 2006 Start construction: Jan 2007 Opening: mid 2007 Concept 4
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Slide 6: AW) fc
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Slide 7: Kinepolis
* KINEPOLIS
Slide 8: Total remodeling
Total remodeling New cinema concept: Seat reservation system Seat detection Open foyer New shops Kinepolis Bruges Kinepolis Kortrijk (summer 2007) Kinepolis Ostend 8
Slide 9: Full renovation, seat reservation system, new ticketing application
Full renovation Seat reservation system New ticketing application Kinepolis Braine, Hasselt, Leuven (March 2007) Kinepolis Ghent & Liège (April 2007) Metropolis Antwerp & Kinepolis Brussels (May) 9
Slide 10: Digital Cinema
Digital Cinema Digitalisation Kinepolis Belgium fully digital by end 2007 Better quality + more alternative content 10
Slide 11: XL Gaming
XL Gaming XL Gaming Since November @ Kinepolis Bruges Soon @ Kinepolis Belgium Demo after presentation 11
Slide 12: Kinepolis TV
Use of brand Kinepolis from Cinema Kinepolis TV to living room 12
Slide 13: Kinepolis Group Annual Results 2006
Kinepolis Group Annual Results 2006 Kinepolis Brugge Jan Staelens CFO 13
Slide 14: Kinepolis complexes today
Kinepolis complexes today KINEPOLIS GROUP Complexes Screens Belgium 10 131 France 7 87 Spain 3 64 Poland 1 20 Switzerland 1 8 Total as per 31/12/2006 22 310 July 2006: Opening Kinepolis Bruges (8 screens, 1.605 seats) Market Position in Europe: Belgium: 45,4% 10 1 France: 3,5% Spain: 4,5% 7 11
Slide 15: Kinepolis today
Kinepolis today Tenzij anders vermeld, i: > / 100% dochterbedrijf Kinepolis Group N.V. KF.S.NV. Kinepolis Multi N.V. |} Kinepolis Mega N.V. Kinepolis Immo Liége S.A. << Decatron N.V. Kinepolis Liege S.A. Kinepolis Braine S.A. = Megatix N.V. Kinepolis Immo Hasselt N.V. Kinepolis Immo Multi N.V. 19% |
Slide 16: Stakeholders
Stakeholders Shareholders at 28/02/2007 Total shares outstanding 6.930.778 Of which Family owned 2.724.038 (39.30%) Bestinver Gestion SA 780.375 (11.26%) Schröder Investment Management Ltd. 338.417 (4.88%) Free Float 2.898.014 (41.81%) Treasury Shares (own shares) 189.934 (2.75%) Warrants outstandin
Slide 17: Key Figures 2006 in '000 €
Key Figures 2006 in ‘000 € Key Figures ( in '000 €) 31/12/2006 31/12/2005 %∆ 31/12/2006** 31/12/2005 %∆ Comparable basis Total Visitors 23.913 22.574 5,9% 23.088 22.460 2,8% Revenues 211.191 192.812 9,5% 204.093 191879 6,4% Operating profit, EBIT 26.507 20.728 27,9% 27.070 21.656 25,0% Net Profit 14
Slide 18: Visitors
Visitors % of Visitors (in '000) 31/12/2006 % of Tot 31/12/2005 Tot %∆ Belgium 10.641 44% 9.936 44% 7% France 6.688 28% 6.076 27% 10% Spain 5.273 22% 5.362 24% -2% Other (*) 1.310 6% 1.200 5% 9% Total visitors 23.913 100% 22.574 100% 6% Comparable basis (**) 23.088 22.460 3% (*) Other = Poland + Swi
Slide 19: Segment 1 - Revenues - geographical
Segment 1 - Revenues - geographical Revenues (in '000 €) 31/12/2006 % of Tot 31/12/2005 % of Tot %∆ Belgium 109.958 52% 100.074 52% 10% France 51.271 24% 45.461 23% 13% Spain 40.204 19% 38.409 20% 5% Other 9.759 5% 8.867 5% 10% Revenues - geographical 211.191 100% 192.812 100% 10% • Increase in Reve
Slide 20: Segment 2 - Revenues - business
Segment 2 - Revenues - business Revenues (in '000 €) 31/12/2006 % of Tot 31/12/2005 % of Tot %∆ Cinema: 201.910 96% 185.380 96% 9% Tickets 128.891 61% 119.138 62% 8% Food & Beverage 44.166 21% 39.478 20% 12% Media & Events 28.853 14% 26.765 14% 8% Film Distribution 2.479 1% 2.088 1% 19% Concessions
Slide 21: Ticket prices
Ticket prices Ticketprice evolution (in €) 2002 2003 2004 2005 2006 Belgium 5,37 5,63 5,67 5,70 5,87 France 4,70 4,90 4,95 5,03 5,09 Spain 4,61 4,72 4,79 4,91 4,97 Poland 3,90 3,43 3,39 3,64 3,83 Switzerland 9,07 8,86 9,61 9,72 9,61 Total 5,04 5,18 5,19 5,28 5,39 Exclusive of currency effects Poland
Slide 22: Spent F&B
Spent F&B F&B per capita (in €) 2002 2003 2004 2005 2006 Belgium 1,67 1,85 2,02 2,13 2,23 France 1,00 1,11 1,19 1,24 1,34 Spain 1,38 1,44 1,51 1,62 1,74 Poland 1,02 0,94 0,96 1,24 1,34 Switzerland 3,62 3,50 3,53 4,01 3,97 Total 1,44 1,55 1,64 1,75 1,85 Exclusive of currency effects Poland 1,29 Switz
Slide 23: Gross Profit
Gross Profit Gross Profit (in '000 €) 31/12/2006 % of Tot 31/12/2005 % of Tot %∆ Belgium 30.967 62% 26.441 64% 17% France 7.170 14% 5.423 13% 32% Spain 9.203 19% 8.039 19% 14% Other 2.268 5% 1.483 4% 53% GROSS PROFIT (in '000 €) 49.608 100% 41.387 100% 20% % Gross Profit-margin 31/12/2006 31/12/2005
Slide 24: Kinepolis Film Distribution
Kinepolis Film Distribution Before interco elimination (in '000 €) 31/12/2006 31/12/2005 Difference Revenues 6.310 4.009 +57% Gross Profit 174 -76 +329% EBITDA 176 -107 +264% Operating Profit 164 -114 +243% Net Profit 160 -107 +249% Kinepolis Film Distribution • 2006: Positive evolution due to: Perf
Slide 25: Costs
Costs Costs (in '000 €) 31/12/2006 % of Tot 31/12/2005 % of Tot %∆ Marketing & Selling Expenses -10.737 46% -10.000 48% 7% Administrative Expenses -14.472 63% -12.490 60% 16% Other Operating Income & Cost 2.109 -9% 1.831 -9% 15% Total -23.101 100% -20.659 100% 12% • Increase in Administrative Expens
Slide 26: Marketing & Selling Expenses
Marketing & Selling Expenses Costs (in ‘000 €) 31/12/2006 % of Tot 31/12/2005 % of Tot %∆ Marketing & Selling Expenses -10.737 46% -10.000 48% 7% • Publicity (Including start-up Bruges) • Promotions • Marketing and Sales department 26
Slide 27: Administrative Expenses
Administrative Expenses Costs (in ‘000 €) 31/12/2006 % of Tot 31/12/2005 % of Tot %∆ Administrative Expenses -14.472 63% -12.490 60% 16% • Increase administrative expenses through one-off reorganisation • Powerful accounting and reporting systems • Management Information Systems + Studies • Cost sav
Slide 28: Other Operating Income & Cost
Other Operating Income & Cost Costs (in ‘000 €) 31/12/2006 % of Tot 31/12/2005 % of Tot %∆ Other Operating Income & Cost 2.109 -9% 1.831 -9% 15% • CNC-grant (partially, also impact on financial results) • Results Sale Property, Plant & Equipment • Other non-current items 28
Slide 29: EBITDA & EBITDA-margin Comparable
EBITDA & EBITDA-margin Comparable EBITDA (in '000 €) 31/12/2006 % of Tot 31/12/2005 % of Tot %∆ Belgium 22.737 49% 20.267 48% 12,2% France 11.362 24% 9.875 24% 15,1% Spain 9.868 21% 9.617 23% 2,6% Other 2.836 6% 2.042 5% 38,9% Total EBITDA 46.803 100% 41.802 100% 12,0% % EBITDA-margin 31/12/2006 31/
Slide 30: EBITDA Analysis Comparable
EBITDA Analysis Comparable EBITDA Analysis (in '000 €) 31/12/2006 2006 Margin 2005 Margin %∆ EBITDA 2005 41.802 Volume Variance 2.499 Price Variance 3.613 EBITDA after Volume and Price Variance 47.914 23,5% 21,8% 7,7% Increase other expenses -1.111 -0,5% EBITDA 2006 46.803 22,9% 21,9% 5,2% • Positiv
Slide 31: Depreciations
Depreciations Depreciations (in '000 €) 31/12/2006 % of TOT 31/12/2005 % of TOT %∆ Belgium 9.073 41,5% 8.357 38,6% 8,6% France 6.976 31,9% 6.686 30,9% 4,3% Spain 4.306 19,7% 4.235 19,6% 1,7% Other 1.496 6,8% 2.377 11,0% -37,1% Total Depreciations 21.850 100,0% 21.654 100,0% 0,9% 31
Slide 32: Margin analysis 2006 vs 2005
Margin analysis 2006 vs 2005 2006 vs 2005 %∆ 2006 vs 2005 %∆ Visitors comparable basis 2,8% Revenues comparable basis 6,4% Revenues comparable basis 6,4% EBITDA comparable basis 10,3% Revenues comparable basis 6,4% EBITDA comparable basis 12,0% and corrected for non- current items Belgium 6,6% Belgi
Slide 33: Financial Result & Debts
Financial Result & Debts Financial result (in '000 €) 31/12/2006 31/12/2005 %∆ Interests -7.081 -7.048 0% Other (CNC, derivatives, exchange results, bank charges) +389 -317 223% Financial result (in '000 €) -6.693 -7.365 9% Net Financial Debt 136.570 149.657 -9% Financial Leverage (in '000 €) 31/12/
Slide 34: Net Financial Debt
Net Financial Debt Mio € 280 263 260 240 250 220 205 200 180 160 157 160 150 144 137 140 120 2000 2001 2002 2003 2004 2005 30/06/2006 31/12/2006 34
Slide 35: Other Financial Result
Other Financial Result Impact exchange results + currency hedge results = +/- 0 Fair value adjustments financial instruments: Impact = interest hedge 35
Slide 36: Taxes
Taxes Net Profit (in '000 €) 31/12/2006 31/12/2005 %∆ Profit before tax 19.814 13.364 48% Current Taxes -5.472 -5.565 Deferred taxes 292 306 Total Taxes -5.179 -5.259 -2% Average Tax percentage -26% -39% Net Profit 14.635 8.105 80,6% • Decrease in Average tax percentage • Notional intrest deduction,
Slide 37: Deferred taxes: Temporary Differences
Deferred taxes: Temporary Differences in '000 € 31/12/2006 31/12/2005 Temporary differences -39.151 -40.438 Fixed Assets (*) -55.369 -49.215 CNC (*) 3.697 1.056 Provisions and other receivables -483 -472 Financial Instruments -1.289 478 Tax loss carry forward + Investment deduction (*) 14.293 7.714
Slide 38: Capital Expenditures
Capital Expenditures CAPEX 31/12/2006 31/12/2005 Belgium 14.447 5.866 France 3.045 15.427 Spain 1.510 1.056 Other 125 760 TOTAL 19.127 23.109 • 2005: Construction Kinepolis Nancy: € 13 mio. • 2005: Kinepolis Bruges: € 2.0 mio • 2006: Kinepolis Bruges: € 10,5 mio 38
Slide 39: Cash Flow
Cash Flow Consolidated Cash Flow (in '000 €) 31/12/2006 31/12/2005 Cash flow from operating activities Cash generated from operating results 46.176 41.329 Movement trade & other receivables -973 -2.620 Movement inventories -306 -141 Movement trade & other payables 986 991 Cash generated from operati
Slide 40: Cash Flow (Continued)
Cash Flow (Continued) Consolidated Cash Flow (in '000 €) 31/12/2006 31/12/2005 Cash flow from/to financing activities New Loans 1.678 57.783 Loan repayments -27.749 -61.452 Treasury shares -372 -77 Dividends -2.390 -1.981 Net cash from/to financing activities -28.833 -5.727 Net cash flow -12.768 3.3
Slide 41: Income Statement
Income Statement Consolidated Income Statement 31/12/2006 31/12/2005 %∆ (in '000 €) Revenues 211.191 192.812 9,5% Cost of Sales -161.584 -151.425 Gross Profit 49.608 41.387 19,9% Marketing & Selling Expenses -10.737 -10.000 Administrative Expenses -14.472 -12.490 Other Operating Income & Expenses 2.
Slide 42: Tax Shelter
Tax Shelter Tax Shelter 2006 (in '000 €) 1000 Plop, Piet Piraat, K3 (Studio 100) Dagen Zonder lief Ben X Man zoekt vrouw Tax Shelter 2007 (in '000 €) 1.450 Ben X Fly Me To The Moon Suske en Wiske Los Oud België 42
Slide 43: Real Estate
Real Estate Book value: € 236 Mio. Valued at € 300 – 350 Mio. (Going Concern) 860 000 m² in ownership 360 000 m² cinema buildings 60 000 m² leased out for concessions Rest: parking lots and free spaces 43
Slide 44: Forecast 2007
Forecast Forecast 2007 Visitors Cfr. 2006 Remodeling investments € 11 mio. Capex Kinepolis Ostend € 10 mio. Digitalisation € 10 mio. NTA, Seat Reservation € 5 mio. Replacement investment € 5 mio. 44
Slide 45: Dividend results 2006
Dividend results 2006 Payout ± 30 % Dividend per share € 0,64 45
Slide 46: Q&A
Q&A 46