KINO POLSKA TV S.A. CAPITAL GROUP – BUSINESS AND FINANCIAL RESULTS 2015 DISCLAIMER
This presentation (the "Presentation") has been prepared by Kino Polska TV S.A. (the "Company", "KPTV") and is for informational purposes only. Its purpose is to present selected data on Kino Polska TV S.A. Capital Group (the "Group") and its prospects for development. It may not be regarded as part of an invitation or offer to acquire securities or to make investments. This presentation does not constitute or form part of any offer or invitation to conduct other transactions in securities.
The information contained in this Presentation not arising directly from the periodical reports published by companies belonging to Kino Polska TV S.A. Capital Group has not been independently verified, and therefore there is no guarantee that it is complete and fully reflect the actual state. This Presentation contains statements relating to the future. These statements contain the words such as "anticipate", "intend", "estimate", "be", "expect", "assess" and words of similar meaning. All statements, other than these relating to historical facts, contained in this Presentation, including, among others, statements regarding the Group's financial position, its business strategy, plans and objectives of the management boards for future operations (including development plans and objectives relating to the Group's products and services) are forward-looking statements. Such forward-looking statements are subject to known and unknown risks, are characterized by inherent uncertainties and are subject to other important factors that could cause those actual results or achievements of the Group's operations would be materially different from any future results, operations or achievements expressed directly or implied in these forward-looking statements. These statements are based on numerous assumptions regarding present and future business strategies of the Group and the environment in which it will be operating in the future. The statements contained herein, have been prepared solely as at the Presentation day. The Company expressly waives any duties or obligations to disseminate any updates or revisions of any statements that are contained herein, designed to reflect changes in the Company's expectations or changes in events, conditions or circumstances on which any such statement has been based, unless the applicable laws require otherwise. The Company hereby reserves that the forward-looking statements are not guarantees of future performances and that its actual financial position, business strategy, plans and objectives of the management boards for future operations may differ materially from these described or implied in such statements contained in this Presentation. Moreover, even if the financial position, business strategy, plans and objectives of management boards for future operations of the Group are consistent with the forward-looking statements in this Presentation, those results or developments may not provide any indication as to the results or events in subsequent periods.
The Company undertakes no obligation to publish any updates, changes or corrections of information, data or statements contained in this Presentation, unless such an obligation is provided by applicable laws.
The Group is not responsible for the results of the decisions which were taken after reading of this Presentation.
The only reliable source on the financial results of Kino Polska TV S.A. Capital Group are current and periodic reports, submitted by the companies of Kino Polska TV S.A Capital Group in performing its information obligations arising under relevant Polish laws.
2 AGENDA
Key Business Facts
FilmBox Premium
FilmBox Basic & Extended Basic
Kino Polska Channels
Market share of the channels
Number of active subscribers
Stopklatka TV
Key presumptions
Financial results 3 Key Business Facts Key Business Facts The best year in history! The best year in the history!
Kino Polska Group is currently #9 largest tv advertising player on the Polish market.
Kino Polska TV S.A. paid the dividend to the shareholders of the Company for 2014 in the amount of PLN 1.00 per share.
Expansion of VOD cooperation and conclusion of significant, lucrative agreement with UPC Polska on the base of which KPTV will provide UPC’s MY PRIME SVOD with more than 400 movie titles during a period of 3 years.
FilmBox Premium channels’ rebranding in September 2015
5 Key Business Facts
Signing new content deals with major studios:
ITV Studios Global Entertainment
Freeman Entertainment
New Films International
The Walt Disney Studios
Two new members were appointed to the Management Board: Marcin Kowalski and Alber Uziyel.
Katarzyna Woźnicka joined the Supervisory Board and Justyna Strysik-Lewandowska became new Financial Director.
Kino Polska TV S.A. made a decision to withdraw its investment from the teleshopping company - TV Okazje Sp. z o.o.
6 Key Business Facts
Local News | Movies | TV Series Documentaries | Shows
Grupa PIKSEL Kino Polska Onet.pl S.A. Foundation TV S.A.* Partner
*Kino Polska TV S.A. will take up shares representing 49% of the CTN&P (which is Zoom TV owner) for PLN 10 mln.
7 FilmBox Premium FilmBox Premium Rebranding - rebranding FilmBox HD and FilmBox Extra
Rebranding FilmBox HD (CEE & exYUGO Republics) and FilmBox Extra (Poland/Romania) was implemented on 29th of September 2015 – goal: to clearly distinguish our flagship premium channel and also to make it easier for subscribers to navigate within the FilmBox channel offer.
9 FilmBox Premium – Global Expansion
Rapid growth of FilmBox Premium subscribers in Czech Republic and Hungary.
Premium package was launched on:
Telekom Srbija (Serbia) MTL Montenegro MTL Bosnia & Herzegovina Bulsatcom (Bulgaria) Blizoo (Bulgaria) Total TV – SBB (Balkan Countries) Radijus Vektor (Serbia) Digi (Hungary) Take TV (Israel) North Vest Union (Bulgaria)
Additionally in Autumn - FilmBox Extra HD was added to UPC DTH (Czech Republic, Slovakia, Hungary, Romania)
10 FilmBox Basic & Extended Basic FilmBox Basic – Global Expansion Basic package was launched on:
D-Smart (Turkey) Turkcell (Turkey) Volia (Ukraine) Telekom Srbija (Serbia) Total TV – SBB (Balkan Countries) MTL Montenegro MTL Bosnia & Herzegovina Bulsatcom (Bulgaria) Blizoo (Bulgaria) North Vest Union (Bulgaria) Sprint (Bulgaria) Digi (Hungary) SIA Lattelecom (Latvia) SIA Livas (Latvia) Take TV (Israel) Post (Luxembourg)
12 FilmBox Basic – Awards & Development 2015/2016
FilmBox Arthouse was awarded the Eutelsat TV Award 2015
FilmBox Arthouse was added to Vectra & nc+ (Poland) offers in 1Q 2016
13 Kino Polska Channels Kino Polska Group
Our former business decisions led us to achieving 2015 targets
We have reworked our programming to attract more viewers (new slots, movies and series).
Outstanding non-standard promotional campaigns are in progress (e.g. viral marketing).
2016 – „Krzysztof Kieślowski year” on Kino Polska
Further development of Kino Polska Muzyka reach – the channel was added to Orange TV offer.
15 Market share of the channels Kino Polska Group – market share of the channels – Poland 16-49 group
Kino Polska Group
2,00% 1,75% 1,61% 1,59% 1,60% 1,53% Increase in viewership
1,20% AMR 2014 AMR 2015 40 739 42 027 0,80% 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 2015
Source: NAM , 01.01.2015-31.12.2015, SHR 16-49 17 NUMBER OF ACTIVE SUBSCRIBERS Number of active subscribers Poland
Number of active Number of active POLAND CHANGE % subscribers as at subscribers as at 31.12.2015 31.12.2014 filmbox premium 16% 2 433 2 090 package
Filmbox basic 3% 5 668 5 498
KINO POLSKA 0,7% 8 251 8 311
Kino Polska 4% 6 792 6 505 Muzyka
(in thousands)
19 Number of active subscribers Romania, Slovakia, Czech Republic, Hungary
Number of active Number of active CHANGE % subscribers as at subscribers as at 31.12.2015 31.12.2014 FILMBOX 51% 252 167 premium FILMBOX 31% 640 490 EXTRA HD
FILMBOX FAMILY 67% 286 171
FILMBOX BASIC 12% 3 054 3 485
FILMBOX PLUS 31% 865 662
(in thousands)
20 Stopklatka TV Stopklatka TV
– development Market share of Stopklatka TV in 16-49 group
1,00% 0,96% 0,96% 0,95% Stopklatka TV is a strong #2 movie channel in Poland! 0,93% 0,90% 0,81% 0,80% 0,78% TOP 20 in Poland! - #17
0,60%
The channel is constantly developed by: 0,40%
strengthening the content – new content 0,20% agreements (BBC etc.) 0,08% 0,00% 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
strengthening the staff – the most experienced 2014 2015 marketing, programming and acquisitions people from Polish TV industry
launching of Hbb TV service
marketing campaigns – e.g. September 2015 - promoting ”Luther” (Emmy’s Award Series) & March 2016 – „Saving Hope”
22 Key presumptions – 2016
Investments: Zoom TV, 4K/UHD technology, broadcasting system
Further development of the company by intensifying sales-related marketing activities:
incentive systems for call centers (Poland)
B2C Promotion
Door2Door Activity
Open Window Promotion
new local PR agencies (Romania, Hungary, Turkey, Bulgaria, Balkan Countries)
Immense revenue growth in following countries:
Turkey (FilmBox Turkiye - D-Smart)
Bulgaria
Balkan Countries
23 Financial results
24 Financial highlights
FROM CONTINUED OPERATIONS
NET PROFIT EBITDA REVENUE 17,8 45,1 100,4 107,1 40,0 14,2
2014 2015 2014 2015 2014 2015
in millions PLN
25 Financial highlights
2014 2015 VALUE %
REVENUE* 100,4 107,1 6,7 6,7%
EBITDA* 40,0 45,1 5,1 12,8%
NET PROFIT* 14,2 17,8 3,6 25,4%
CASH AT THE END OF THE YEAR** 21,7 7,2 (14,5) (66,8%)
in millions PLN *from continued operations, without TV Okazje Sp. z o.o., which was sold on February 26, 2016 **Kino Polska TV S.A. took up shares of Stopklatka S.A. (PLN 6,1 M)
26 Revenue
diff 6,7m, 6,7% 120.0
8,3 (0,6) (1,0) 107,1 100,4 100.0
80.0
60.0
40.0
20.0
2014 FilmBox and thematic Licence Other 2015 channels broadcast sale and advertising in millions PLN
27 Revenue
FilmBox Kino Polska and thematic diff 8,3m, 16,5% diff (2,7m), (8,1%) channels channels 58,5 33,5 6,0 30,8 50,2 3,7 18,1 15,5
46,5 52,5
15,4 15,3
2014 2015 2014 2015
advertising FilmBox and thematic channels advertising Kino Polska channels broadcasting FilmBox and thematic channels broadcasting Kino Polska channels in millions PLN
28 EBITDA
2014 2015 diff 5,1m, 12,8%
2,0 EBIT 16,7 20,7 (3,2) 50.0 1,7 Adjustment: 6,7 (2,1) 23,3 24,4 45,1 45.0 - Amortisation 13,0 13,3 40,0 40.0 - Amortisation of short term 4,0 8,4 programming assets 35.0 - Impairment of assets 1,8 -
30.0 - Results on disposal 2,8 1,1 of Stopklatka S.A. 25.0 - Exchange differences 1,4 1,4
20.0 - Revenues from interests paid 0,2 0,1
15.0 - Budget interest expense 0,1 0,1
10.0 EBITDA 40,0 45,1
2014 Revenue STK Other Costs Salaries 2015 of emission in millions PLN
29 Net profit
diff 3,6m, 25,4% 30.0 0,4 2,6 (5,1)
2,6 25.0 (3,2) 1,7 6,7 (2,1) 20.0
17,8
15.0 14,2
10.0
2014 Revenue STK Value Other Other Amortisation Costs Salaries 2015 of goods amortisation of program- of emission and materials ming assets sold in millions PLN
30 Dividend for 2015
Recommendation of the Management Board of Kino Polska TV S.A.
PLN 1 gross per share PLN 19,821,404.00
31 Kino Polska TV S.A. – 5 years on stock exchange
EBITDA
45.0 45,1 Why? 40.0 40,0 EV/EBITDA 5,5 35.0 34,8 EV/EBITDA - trade 11,0 30.0 EV/EBITDA TVN 15,5 25.0 27,6
20.0 price of issue 9,50 15.0 15,4 dividend from 2011 to 2015 4,45
10.0 47%
2011 2012 2013 2014 2015
in millions PLN
32 THANK YOU!