Annual Report 2017 Contents
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KINEPOLIS ANNUAL REPORT www.kinepolis.com/corporate Registered offi ce: Kinepolis Group NV Eeuwfeestlaan 20 2017 1020 Brussels, Belgium ANNUAL REPORT 2017 CONTENTS Our people Our customers LIJMZONE 01 02 03 KEY FIGURES ANNUAL GREEN STAR AND RATIOS SUMMARY 2 Key fi gures 4 Word from the Chairman 34 Sustainable investment in 3 Ratios and CEOs people and planet 8 2017 at a glance 38 Our customers 10 Kinepolis Group in brief 42 Our people 14 Organization and strategy: 46 Our environment: - Our mission and strategy - Sustainable property - The Kinepolis concept - Sustainable technology - Innovation in the - Waste sorting spotlight 50 Integrity in business - Our organization - Expansion 32 General market information CONTENTS KINEPOLIS GROUP ANNUAL REPORT 2017 CONTENTS Our people Our customers Expansion Real estate LIJMZONE 01 02 03 04 05 06 KEY FIGURES ANNUAL GREEN STAR MANAGEMENT SHARE FINANCIAL AND RATIOS SUMMARY REPORT INFORMATION REPORT 2 Key fi gures 4 Word from the Chairman 34 Sustainable investment in 52 Discussion of the 76 The Kinepolis Group share 80 Consolidated financial 3 Ratios and CEOs people and planet results statements 8 2017 at a glance 38 Our customers 58 Corporate governance 88 Notes to the consolidated 10 Kinepolis Group in brief 42 Our people statement financial statements 14 Organization and strategy: 46 Our environment: 74 Other information 142 Statutory auditor’s report - Our mission and strategy - Sustainable property 75 Declaration with regard to 148 Condensed financial - The Kinepolis concept - Sustainable technology the information contained in statements - Innovation in the - Waste sorting this annual report of Kinepolis Group nv spotlight 50 Integrity in business 150 Glossary - Our organization 151 Financial calendar - Expansion 2018-2019 32 General market information CONTENTS KINEPOLIS GROUP ANNUAL REPORT 2017 KINEPOLIS GROUP ANNUAL REPORT 2017 CONTENTS 1 KEY FIGURES 01 AND RATIOS KEY FIGURES NUMBER OTHER (1) (2) BELGIUM FRANCE CANADA SPAIN NETHERLANDS LUXEMBOURG (POLAND & TOTAL OF COMPLEXES SWITZERLAND) 2017 11 11 44 6 17 3 2 94 VISITORS BELGIUM FRANCE CANADA SPAIN NETHERLANDS LUXEMBOURG SWITZERLAND TOTAL (MILLIONS) (3) 2016 8.4 7.0 0.0 4.4 2.8 1.1 0.1 23.8 2017 8.4 7.1 1.1 4.4 3.2 1.0 0.1 25.3 2017 vs 2016 0.0% 0.2% -0.5% 15.4% -0.8% -4.0% 6.2% CONSOLIDATED INCOME 2013 2014 2015 2016 2017 STATEMENT (IN ’000 €) Revenue 245 980 262 619 301 571 324 938 355 427 EBITDA 75 006 71 303 88 739 91 650 103 186 REBITDA 74 634 74 264 90 958 94 574 104 292 Gross profit 82 111 81 843 99 578 100 209 113 395 Operating profit 55 069 50 665 65 245 63 207 72 915 Net finance expense -5 998 -4 295 -7 754 -7 619 -8 213 Profit before tax 49 071 46 370 57 491 55 588 64 702 Profit 37 541 35 167 32 255 47 646 49 067 Current profit 37 395 35 589 43 207 40 413 44 745 ANNUAL 2013 2014 2015 2016 2017 GROWTH RATES Revenue -3.3% 6.8% 14.8% 7.7% 9.4% EBITDA 3.8% -4.9% 24.5% 3.3% 12.6% REBITDA 0.9% -0.5% 22.5% 4.0% 10.3% Gross profit -0.1% -0.3% 21.7% 0.6% 13.2% Operating profit 6.6% -8.0% 28.8% -3.1% 15.4% Profit 5.1% -6.3% -8.3% 47.7% 3.0% Current profit 0.0% -4.8% 21.4% -6.5% 10.7% CONSOLIDATED STATEMENT 2013 2014 2015 2016 2017 OF FINANCIAL POSITION (IN ’000 €) Non-current assets 255 239 302 068 392 075 424 122 514 518 Current assets 55 072 44 996 98 624 79 324 206 437 TOTAL ASSETS 310 311 347 064 490 699 503 446 720 955 Equity 104 657 104 732 123 033 149 898 176 394 Provisions and deferred tax liabilities 20 525 18 352 27 029 25 531 35 849 Non-current loans and borrowings 87 917 91 471 214 000 207 278 342 106 Current loans and borrowings and bank overdrafts 19 332 44 095 8 714 6 996 39 873 Trade and other payables 70 487 79 651 97 090 100 160 116 466 Other 7 393 8 763 20 833 13 582 10 267 TOTAL EQUITY AND LIABILITIES 310 311 347 064 490 699 503 446 720 955 (1) Including Cinema City Poznań (Poland), operated by Cineworld. (2) Number of complexes on publication date. (3) Excluding Cinema City Poznań (Poland). 2 01 / KEY FIGURES AND RATIOS KINEPOLIS GROUP ANNUAL REPORT 2017 35.0 35 32.5 30.3% 30.2% 30.0 29.3% 30 29.1% 27.5 28.3% 25.0 25 2013 2014 2015 2016 2017 DATA PER SHARE (4) 2013 2014 2015 2016 2017 Revenue 9.06 9.99 11.26 11.94 13.05 EBITDA 2.76 rebitda/opbrengsten2.71 20173.31 3.37 3.79 REBITDA 2.75 2.82 3.40 3.48 3.83 Profit 1.38 1.34 1.20 1.75 1.80 Current profit 1.38 1.35 1.61 1.48 1.64 Equity share of the Group 3.85 3.89 4.59 5.51 6.48 Gross dividend (5) (6) 0.64 0.65 0.79 0.87 0.90 Pay-out ratio 45% 50% 50% 50% 50% RATIOS 1,5 1.5 1.32 1.27 35.0 35 PROFITABILITY RATIOS 2013 2014 2015 2016 2017 1,2 1.2 EBITDA / Revenue 32.5 30.5% 27.2% 29.4% 1.13 28.2% 1.13 29.0% REBITDA / Revenue 30.3% 30.3% 28.3% 30.2% 29.1% 29.3% 0,9 30.2% 0.9 Gross profit / Revenue 30.0 33.4% 31.2%29.3% 33.0% 30.8% 31.9% 30 0.84 Operating profit / Revenue 22.4% 29.1% 19.3% 21.6% 19.5% 20.5% 0,6 27.5 28.3% 0.6 Profit / Revenue 15.3% 13.4% 10.7%2013 2014 14.7%2015 2016 13.8%2017 25.0 25 2013 2014 2015 2016 2017 FINANCIAL STRUCTURE RATIOS 2013 2014 2015 2016 2017 Net financial debt 88Netto 141 financiële118 schuld 645 / eigen162 vermogen 008 2017169 751 224 310 Net financial debt / EBITDA 1.18 1.66 1.83 1.85 2.17 rebitda/opbrengsten 2017 Net financial debt / REBITDA 1.18 1.60 1.78 1.79 2.15 Net financial debt / Equity 0.84 1.13 1.32 1.13 1.27 Equity / Total equity and liabilities 33.7% 30.2% 25.1% 29.8% 24.5% Current Ratio 0.62 0.36 0.85 0.71 1.30 ROCE 22.9% 20.9% 21.5% 17.9% 17.3% REBITDA / REVENUE NET FINANCIAL DEBT / EQUITY ROCE 1,5 35.0 1.5 25 22.9% 35 21.5% 1.32 1.27 20 32.5 20.9% 17.3% 1,2 1.2 30.3% 30.2% 15 17.9% 30.0 29.3% 1.13 1.13 30 10 0,9 29.1% 0.9 27.5 28.3% 0.84 5 0,6 25.0 0.6 0 25 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Roce 2017 rebitda/opbrengsten(4) Calculation 2017 based onNetto the weighted financiële average numberschuld of /shares eigen for thevermogen relevant period, 2017 multiplied by five for the period 2011 through 2013, to take account of the share split in 2014 and enable a comparison of the figures. (5) Calculation based on the number of dividend eligible shares. For the year 2013 divided by 5, bearing in mind the splitting of each share in five shares on 1 July 2014 for the sake of comparison. (6) An additional exceptional dividend of € 0.20 per share was paid out for the fiscal year 2014. KINEPOLIS GROUP ANNUAL REPORT 2017 01 / KEY FIGURES AND RATIOS 3 1,5 1.5 1.32 1.27 25 22.9% 21.5% 1,2 1.2 20 1.13 1.13 20.9% 17.3% 15 17.9% 0,9 0.9 0.84 10 0,6 0.6 2013 2014 2015 2016 2017 5 0 2013 2014 2015 2016 2017 Netto financiële schuld / eigen vermogen 2017 Roce 2017 25 22.9% 21.5% 20 20.9% 17.3% 15 17.9% 10 5 0 2013 2014 2015 2016 2017 Roce 2017 ANNUAL 02 SUMMARY Word from the Chairman and CEOs Eddy Duquenne, CEO, Philip Ghekiere, Chairman of the Board of Directors and Joost Bert, CEO 4 02 / ANNUAL SUMMARY KINEPOLIS GROUP ANNUAL REPORT 2017 Ladies and gentlemen, dear shareholder, customer and employee, In 2017 we celebrated our 20th anniversary since Current EBITDA rose by 10.3% to € 104.3 million, the merger and foundation of Kinepolis Group in growing faster than either the visitor numbers or sales. 1997. The anniversary year did not pass unnoticed, not least because of the acquisition of the Canadian Current profit in the year under review was € 44.7 cinema group Landmark Cinemas. With this million, a rise of 10.7% compared with 2016, due to acquisition we have taken a major step in the the higher operating result and in spite of higher execution of our expansion strategy, in terms of depreciations and financial costs as a consequence both the number of complexes and the geographical of the expansion. Total profit increased by 3.0% to spread of our activities, with the entry onto the first € 49.1 million, due, among other things, to the non-European market.