Kinepolis Group NV

Cover kinepolis GB
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Cover kinepolis GB
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Contents
1.
Kinepolis concept
2.
Foreword from the Chief Executive Officers
3.
Board Management Supervision
1. Committee of Directors
3.
P.4
Profile of the Group
1. Significant Events
4.
Discussion of key figures
5.
Prospects
6.
P u rch a s e o f ow n s h a r e s
7.
K i n e t i ck e t
8.
D e ve l o p m e n t o f a c t iv i t i e s p e r B u s i n e s s U n i t
1. Cinema Operation
9.
P.5
P.15
H u m a n R e s o u rc e s
1 0 . C o r p o ra t e g ove r n a n c e
1. Capital Structure
P.31
11. Discussion of the consolidated figures
1. Presentation of the consolidated key figures
2. Comments on the consolidated balance sheet and results for 2001
P.38
P.39
1 2 . C o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s o f K i n e p o l i s G r o u p n . v.
1. Consolidated Balance Sheet Kinepolis Group
2. Consolidated Profit and Loss Account Kinepolis Group
3. Notes to the Consolidated Financial Statements
P.56
P.58
P.60
1 3 . R e p o r t o f t h e Au d i t o r
1 4 . O r d i n a r y Fi n a n c i a l S t a t e m e n t s
1. Comments on the Ordinary Financial Statements
2. Ordinary Balance Sheet Kinepolis Group
3. Ordinary Profit and Loss Account Kinepolis Group
4. Appropriation of result
5. Social balance sheet
P.78
P.80
P.82
P.83
P.94
1 5 . R e p o r t o f t h e S t a t u t o r y Au d i t o r o n t h e s t a t u t o r y a c c o u n t s
1 6 . Fi n a n c i a l C a l e n d a r
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Kinepolis Group NV
In 000 EUR
2001
2000
Kine Group
Number of Kinepolis visitors
Number of CinemaxX visitors
Operating income
Turnover
EBITDA
Ebitda margin/operating income
EBITDA exc. Decatron (1)
Depreciation and other amounts written off
EBIT
EBIT excl. Decatron
Result on ordinary activities
Financial result (2)
Result before tax
Third party interests
Net consolidated profit Group after taxes
Current result before taxes
Net current result (3)
26.000
22.446
221.483,7
218.546,5
44.055,9
19,89%
46.353,3
30.681,4
13.374,6
16.349,9
13.374,6
-32.427,7
-20.659,2
-1.706,5
-20.754,5
4.514,8
2.642,7
179.714,0
173.980,7
42.049,5
23,40%
39.391,4
27.818,6
14.230,9
12.951,7
14.230,9
-7.193,5
8.251,7
-652,4
4.351,8
11.515,5
6.888,7
1999
CxX (@ 25%)
Totaal
Kine Group
19.106
16.595
42.026,8
35.887,4
-1.155,9
-2,75%
-1.155,9
3.153,9
-4.309,9
-4.309,9
-4.309,9
-364,0
-73.526,1
-247,6
-73.143,7
-4.516,8
-4.382,0
22.446
16.595
221.740,8
209.868,1
40.893,6
18,44%
38.235,5
30.972,6
9.921,0
8.641,8
9.921,0
-7.557,5
-65.274,5
-900,0
-68.791,8
6.998,6
2.506,7
149.496,2
140.118,6
36.281,3
24,27%
34.033,0
23.546,5
12.734,8
11.939,3
12.734,8
-4.410,8
8.756,3
-103,0
3.628,8
13.056,0
7.880,8
CxX (@ 30%)
Totaal
9.400
27.471,1
24.569,0
2.449,5
8,92%
2.449,5
1.564,1
885,4
885,4
885,4
11,8
1.291,2
-19,6
1.290,6
966,2
949,7
19.106
9.400
176.967,3
164.687,6
38.730,7
21,89%
36.482,4
25.110,6
13.620,1
12.824,7
13.620,1
-4.399,0
10.047,4
-122,6
4.919,3
14.022,2
8.830,5
(1) Comme Decatron génère un chiffre d’affaires non susceptible d’élimination en construisant pour des tiers ou des entreprises en joint-venture (Nîmes 2000) ou en fournissant ces tiers ou entreprises,
ou encore via une opération sale and rent back (Valence 2001) - ce qui n’entraîne aucune marge opérationnelle -, la marge totale de Kinepolis Group s’en trouve affectée. C’est pourquoi le Groupe
a également fait état de chiffres « Ebitda hors Decatron » .
(2) Le résultat financier comprend la réduction de valeur des actions CinemaxX pour un montant de 18 Mio.
(3) Résultats, y inclus les prélèvements sur les impôts différés et latences fiscales, corrigés des éléments exceptionnels, amortissements sur les frais immobilisés des augmentations de capital, amortissements
sur écarts de consolidation et variation exceptionnelle des en-cours de fabrication, des produits finis et commandes en cours d’exécution de Decatron.
In 000 EUR
Intangible Assets and Formation expenses
Goodwill
Tangible Assets
Affiliated companies
Amounts receivable after more than one year
Stocks and orders in progress
Trade debtors
Other receivables
Short-term investments and Cash at bank and in hand
Prepayments and accrued income
Total assets
Shareholders’ equity
Minority interests
Provisions for liabilities and charges
Amounts payable after one year
Financial debts within one year
Trade debts
Other debts
Accrued charges and deferred income
Total liabilities
2001
2000
1999
5 316
15 798
320 178
1 109
24 655
1 463
16 275
21 864
15 011
6 159
427 828
71 924
551
9 730
174 304
102 800
38 310
17 059
13 150
427 828
6 640
18 748
309 274
1 331
25 226
4 150
16 732
20 110
34 739
5 294
442 244
93 152
3 496
12 426
122 318
139 582
38 672
25 227
7 371
442 244
7 105
39 871
240 632
4 026
18 634
3 508
15 973
31 195
7 694
1 749
370 385
95 598
489
10 715
84 836
104 788
44 574
22 248
7 138
370 385
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Information for the shareholders
Share price
Number of Kinepolis visitors (in 000)
High
25,15
Low
10,25
Closing price at end of December
18,25
Average number of shares traded per day
3106
Total number of shares traded during the year 773.920
Capitalisation
31.308.642 EUR
Belgium
Foreign
Key figures per share (consolidated)
Number of shares 31/12
Net result for the year per share
Net current result for the year per share
Dividend
6.930.778
-2,99
0,38
0
Share price evolution + volume
Split of revenues per division
Volume
Share price
Existing Complexes
Koers
Non Mature Complexes
Volume
Decatron + Holdings
Services (KFD,KFP,RMBe)
18/02/02
15/04/98
EBITDA
Split of revenues per
activity
(1)
+17,7%
Box office
Food & Beverage
Media Sales
KFD/KFP
Rent Concessions
(1)
En 2001, des amortissements non récurrents sur immobilisations en cours pour des projets de
Decatron ont été actés à hauteur de 1,9 million de BEF. Pour en éliminer les effets, la croissance de
l’excédent brut d’exploitation (EBITDA) est exprimée ici hors Decatron et CinemaxX (pour l’exercice 2000)
Cover kinepolis GB
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Structure
Group S.A.
Page 7
Cover kinepolis GB
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FINANCIAL CALENDAR
2002 Annual General Meeting
Announcement of interim results
Announcement of full-year results for 2002
17/05/2002
26/09/2002
maart 2003
CONTACT
* Holding by law of Luxemburg
** Company by law of the Netherlands
Kinepolis Group SA
Tine Duyck, CFO Assistant
Bld du Centenaire, 20
B – 1020 Brussels
[email protected]
www.kinepolis.com
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Page 1
IN MEMORIAM
After a rich and full life as the co-founder of
Kinepolis Group, Albert Bert, the driving force
behind the renewal of cinema in Belgium, passed
away suddenly on 21 May 2002 at the age of 74.
In 1970 Albert Bert converted the Cinema Majestic
in Harelbeke, which he has taken over from his
father, into a two screen cinema, Belgium’s first
duplex.
One year later, together with his sister-in-law Rose
Claeys-Vereecke, he developed the first purposebuilt multiplex, the Trioscoop in Hasselt, followed in
1975 by the 5-screen Pentascoop in Kortrijk. The
‘multiplex’ concept took on its full meaning when
he built the 10-screen Decascoop in Ghent in 1981.
In the same year he founded Decatron NV to develop and build cinema complexes.
In 1988 the Bert and Claeys families decided to
combine forces to develop the world’s first
megaplex in Brussels, an initiative repeated in 1993
with the opening of Metropolis Antwerp.
Under Albert Bert’s inspiration the European
expansion programme was continued with the construction of Kinepolis complexes at Madrid,
Thionville, Mulhouse, Nîmes, Schaffhausen,
Pioltello, Valencia and Poznan (Poland).
Albert Bert was also:
■ Co-Chairman of the Board of Directors, Member
of the Remuneration Committee and Member
of the Audit Committee of Kinepolis Group NV
■ Chairman of the Board of Directors of France
Mega Cinema SA, Kinepolis – Le Château du
Cinéma SA, France Mega Cinema Immo SA
■ Chief Executive Officer of Majestiek
International SA
■ Director of Eden Panorama SA, Kinepolis
Thionville SA, Kinepolis Immo Thionville SA,
Kinepolis Saint-Julien-lès-Metz SA, Kinepolis
Mulhouse SA, European Mega Cinema SA,
Kinepolis Holding BV, Kinepolis Zeeland BV,
Kinepolis España SA
■ Honorary citizen of Harelbeke
Apart from this cooperation the Bert and Claeys
family companies developed a number of other
projects on their own. In 1995 the Bert family constructed the Kinepolis Saint-Julien-lès-Metz and in
1996 Kinepolis Le Château du Cinéma in Lomme
close to Lille.
On 19 December 1997 the Bert and Claeys families
merged their businesses to form Kinepolis Group
NV. In the same year Albert Bert’s entrepreneurship was honoured with three prestigious prizes:
Cinema Expo in Amsterdam proclaimed him “Best
Exhibitor of the Year”, Knack chose him as its
“Manager of the Year” and he received the “Insead
Innovator Prize” from the French business school
Insead.
On 9 April 1998 Kinepolis Group was listed on the
Brussels stock exchange (now Euronext).
ANNUAL
KINEPOLIS
®
REPORT
2002
-
1
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PAG E
2
LETTER
FROM THE BOARD TO
THE SHAREHOLDERS
Dear Shareholder, Client, Employee,
2002 was a year of debt reduction and break in the
investment programme of Kinepolis Group.
Debt reduction
In 2002 Kinepolis Group put its investment programme on hold and concentrated on reducing its
debt level. A number of assets were sold: a 5.3
hectare site in Warsaw, the cinema complex at
Pioltello (Italy) and the Dutch subsidiary Kinepolis
Zeeland, with its 35% minority interest in the
Vlissingen project, were all disposed of. These
divestments and the realised free cash flow served
to reduce debt by 22% to EUR 198 million. EUR 34
million of short-term debt was also converted into
long-term debt.
Visitor number and Net
Result
Kinepolis Group welcomed 27.3 million visitors in
2002, 5.1% more than in 2001. The largest part of
this growth comes from the Kinepolis complexes
which opened in 2001 in Valencia, Poznan, Pioltello
and Schaffhausen.
Despite the successful debt reduction and rising
visitor number, Kinepolis Group suffered in 2002 a
net consolidated loss (Group’s share) of EUR 5.7
million. This is due primarily to foreign exchange
losses and the cost of hedging the Polish zloty,
amounting together to EUR 3 million, start-up losses of new complexes, additional provisions and
higher taxes in Belgium and Spain.
Strategy
In 2002 Kinepolis took the decision to concentrate in
future primarily on its key markets of Belgium, France
and Spain, in which it currently operates some 20 cinema complexes.
In Belgium the group holds 50.8% of the Belgian
market, with 1/3 of all seating capacity and 1/4 of
screens. This strong position will be maintained.
With this in mind Kinepolis is planning to refurbish
one of its two cinemas in downtown Liège. Option
contracts have also been signed to acquire sites in
Bruges and Ostend for two multiplexes.
In order to construct these multiplexes, whilst
remaining within the provisions of competition law,
the group has sold Pentascoop at Kortrijk and is
planning to divest of one of its two cinemas in
downtown Liège. The seats available in this way
will then be allotted to these new projects.
In France and Spain, Kinepolis is looking to further expand its market position.
A 10-screen, 2970-seat complex is scheduled to
open at Nancy in 2004, and a new 15 screen, 4700seat complex will come into operation at Granada
at the end of 2003.
In the “other countries” Kinepolis has decided to
sell its interests in Italy and Switzerland. In Poland
and the Netherlands it is keeping all options open.
In terms of cinema operation, Kinepolis will in the
future concentrate on:
■ reviewing its pricing structure to increase visitor frequency and loyalty,
■ new partnerships with a further increase in
Food & Beverage income,
■ reviewing visitor flows and cinema concepts at
existing complexes to create additional space
for renting out,
■ further development of the entertainment and
fun shopping concept at the complexes,
■ putting the finishing touch to its ticketing system for Business to Business customers,
■ continuing to expand internet sales and sales
via the Kineticket automatic machines.
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Outlook for 2003
In 2003 Kinepolis Group will do everything possible to continue the debt reduction programme and
in so doing improve the balance sheet structure.
Debt has already been reduced by EUR 9 million in
January 2003. It should, however, be stated here
that the opening of the new complex at Granada
(Spain) in late 2003 will increase debt by EUR 13
million.
With the recent sale of Kinepolis Pioltello (Italy)
and a number of other disposals, Kinepolis Group
expects lower visitor numbers and turnover in
2003, both though with a positive effect on net
result through lower depreciation and the further
debt reduction with divestments. Moreover
Kinepolis will continue its cost reduction programme. The group keeps on holding substantial
property assets (book value of EUR 260 million) in
its portfolio.
The group is determined to do everything possible
in 2003 to achieve the above objectives. In so
doing the company can count on the commitment
of all its employees.
In this perspective Kinepolis Group thanks all its
shareholders and employees for the confidence
they continue to show in the company and its activities.
Brussels, 5 April 2003
Florent Gijbels
CEO
Joost Bert
CEO
Baron Hugo Vandamme
Chairman of the Board of Directors
ANNUAL
KINEPOLIS
®
REPORT
2002
-
3
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Page 4
B O A R D , M A N A G E M E N T,
S
U
P
E
R
V
I
S
I
O
N
Gilbert Deley,
COO
Jan Staelens,
CFO
Joost Bert,
CEO
SIGNIFICANT
Florent Gijbels,
CEO
E
February 2002 :
Sale of a 5.3 hectare site in Warsaw.
May 21st 2002 :
Decease of Albert Bert, co-founder of Kinepolis
Group, co-chairman of the Board of Directors.
June 2002 :
Sale of the Dutch subsidiary Kinepolis Zeeland,
which holds a 35% minority interest in the
Vlissingen project.
Kinepolis signs a preliminary, conditional purchase contract for a site adjacent to the Ostend
racecourse, with the intention of building a multiplex.
November 2002 :
The Kinepolis Group NV Board unanimously
elects Baron Hugo Vandamme as Executive
Chairman of Kinepolis Group NV.
V
E
N
T
S
December 2002 :
Kinepolis and Screenvision sign an agreement
for screen advertising and digital screen advertising.
Sale of Kinepolis Pioltello (Italy), in line with the
strategic decision to focus on the key markets of
Belgium, France and Spain.
Kinepolis sells the 5-screen Pentascoop in downtown Kortrijk (Belgium).
Kinepolis Group NV takes back from Deficom its
13.4% stake in Kinepoleast.
Kinepoleast is the holding company for the
Polish activities. The company was founded to
develop and operate Kinepolis Poznan (Poland).
January 2003 :
Kinepolis signs an options contract for the purchase of a site in Bruges.
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C O M PA N Y
PROFILE
Kinepolis Group cinemas
Complex
City
Belgium
Kinepolis
Ghent
Opéra
Liège
Palace
Liège
Kinepolis IMAX
Brussels
Kinepolis
Brussels
Metropolis
Antwerp
Kinepolis
Hasselt
Kinepolis
Courtrai
Kinepolis
Louvain
Kinepolis
Liège
Kinepolis Imagibraine
Braine L'Alleud
Total
France
Kinepolis St-Julien-lès-Metz
Metz
Kinepolis Le Château du Cinéma
Lomme
Max Linder
Paris
Kinepolis
Thionville
Kinepolis
Mulhouse
Forvm Kinepolis
Nîmes
Forvm Nîmes
Nîmes
Total
Switzerland
Kinepolis
Schaffhausen
Total
Spain
Kinepolis
Madrid
Kinepolis Paterna
Valencia
Total
Italy
Cine City
Treviso
Total
Poland
Kinepolis
Poznan
Total
Total
Year opened
number of
screens
number of
seats
1981
1981
1983
1988
1988
1993
1996
1997
1997
1997
2000
12
6
6
1
24
24
14
10
7
16
10
130
3,658
1,192
1,305
450
7,097
8,368
3,421
2,712
1,730
4,595
2,450
36,978
1995
1996
1998
1999
1999
2000
2000
14
23
1
10
14
12
4
78
4,014
7,286
616
2,930
4,612
2,500
865
22,823
2000
8
8
1,540
1,540
1998
2001
25
24
49
9,195
8,194
17,389
2000
12
12
2,500
2,500
2001
20
20
297
7,338
7,338
88,568
ANNUAL
KINEPOLIS
®
REPORT
2002
-
5
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Page 6
DISCUSSION
OF
K
G
E
Y
F
I
U
R
E
S
In 2002 Kinepolis Group opened its doors
t o 2 7. 3 m i l l i o n v i s i t o r s , 5 . 1 % m o r e t h a n i n
2001.
EBITDA rose by 2.8% to EUR 45.3
million.
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Page 7
The net consolidated loss (group’s share) of EUR
5.7 million is due primarily to foreign exchange
losses and the costs of hedging the Polish zloty,
amounting in all to EUR 3 million, start-up losses at
new complexes, additional provisions and higher
taxes in Belgium and Spain.
EUR 57 million of debt was repaid, reducing the
debt burden by 22% to EUR 198 million in 2002. A
substantial portion of the short-term debt (EUR 34
million) was also converted to long-term debt. A
further EUR 9 million were repaid in early January
2003.
Visitor numbers rose by 5.1% in 2002.
• Most of this growth comes from Kinepolis complexes opened in 2001 at Valencia, Poznan,
Pioltello and Schaffhausen.
• Visitor numbers in France fell slightly, due mainly to a shortage of
French films.
• Visitor numbers in Belgium
remained stable.
Global group turnover reduced by
5.2% compared to 2001, due mainly
to the disappearance of Decatrons’
building activities for third parties in
2002.
Total operating revenues excluding
Decatron rose by 3.98%.
Cinema operating turnover rose by 3.5%.
• Significant growth at Kinepolis Valencia, Poznan,
Pioltello and Schaffhausen
• Lower turnover at the French complexes
• Status quo in Belgium
Film distribution experienced a weak year owing to
a lower number of available films. The fact that no
films were produced in 2002 reduced turnover by
no less than EUR 1.6 million.
EBITDA rose by 2.8% to EUR 45.3million.
• Significant growth at Kinepolis Valencia, Poznan,
Pioltello and Schaffhausen
• Reduction for the French complexes
• Almost no change in Belgium
The EDITDA / Operating Revenues margin excluding Decatron fell slightly.
EBIT amounted to EUR 10.7 million compared to
EUR 13.4 million in 2001. This reduction is
explained by the rise in provisions, write downs and
depreciations to EUR 34.6 million in 2002 as
against EUR 30.7 million in 2001.
• Provisions set up in 2002 for contractor claims
against Kinepolis Poznan (EUR 0.9m)
• Write downs in 2002 with the termination of a
number of secondary activities in France.
• Increased depreciations on the 2001 new starters
(EUR 1.8m) and on existing complexes
Financial results for 2002 were EUR – 16.6 million
compared with EUR – 32.4 million in 2001.
The difference of EUR 15.8m between the two
years is explained by:
• The concluding of a partially hedged Euro-loan in
Poland leaving an open exchange
risk on the Polish zloty. The weakening of the EUR/PLN exchange rate in
2002 produced a translation loss
(translation losses on the outstanding financial debt plus hedging
costs together totalling EUR 3 million). Additional hedging contracts
will be concluded in 2003.
• Additional financial charges relating to the complexes opened in
2001 (EUR 1.6m).
• Lower interest charges following the debt reduction in 2002 (EUR 2.0 m).
• The impact of the deconsolidations in 2001, a.o.
• In 2001 the financial result included the writedown on CinemaxX (EUR 18m).
Aside from the write-off of CinemaxX and the foreign exchange loss on Polish zloty, financial
results improved by 5.5%.
As part of its planned debt reduction programme
and following the strategic choice to focus in future
on the key markets of Belgium, France and Spain,
Kinepolis Group sold its interests in Italy (Pioltello),
the Netherlands (several smaller participations)
and Belgium (Pentascoop). The resulting capital
gain amounted to more than EUR 2 million. The
sale of sites in Spain and Poland also produced capital gains.
ANNUAL
KINEPOLIS
®
REPORT
2002
-
7
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Page 8
PAG E
8
DISCUSSION
OF
K
G
E
Y
F
I
U
R
E
S
Taxes (included deferred taxes) rose in 2002 by
EUR 3 million to EUR 5 million, due mainly to the
one-off EUR 2.3m reversal of latent tax liabilities
recorded in 2001.
2002 by 22% from EUR 255m to EUR 198m, EUR
23 million in the first half, and a further EUR 34 million in the second half. Around EUR 16m of this
amount is due to the disposals.
The net consolidated result for 2002 amounts to
EUR – 7.8 million of which EUR – 5.7 million is the
group’s share.
In addition to this debt reduction, a debt restructuring package was negotiated, allowing a number
of short-term debts to be refinanced long-term.
Without the additional provision for contractor
claims in Poland (EUR 0.9 million) the group’s share
of net result would have reached break-even in the
second half.
In 2003 Kinepolis Group will again do everything
possible to continue the debt reduction programme and so improve the balance sheet structure. In this context, debt was further reduced by
EUR 9 million in January 2003. It should, however,
be stated here that the opening of the new complex
at Granada (Spain) in late 2003 will increase debt
by EUR 13 million.
The global net financial debt position (financial
debt less GIMV subordinated loan, cash at bank and
in hand and cash investments) was reduced in
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Page 9
A P P R O P R I AT I O N
O F T H E R E S U LT
In its proposals to the General Meeting concerning
the appropriation of the result, the Board of
Directors takes into account various factors, including the company’s financial situation, the operating
results, current and expected future resources and
expansion plans.
Table 1.2
Appropriation of result at 31 December 2002 (in .000 EUR) of the Kinepolis Group NV
Profit to be appropriated for the year
Loss brought forward from previous year
Withdrawal from equity
to the capital and share premiums
to the reserves
Addition to equity
allocation to legal reserves
to the other reserve
Profit to be carried forward
3 004,19
-97 223,34
97 223,34
1 736,23
-150,21
-1 012,69
3 577,52
ANNUAL
KINEPOLIS
®
REPORT
2002
-
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Page 10
DEVELOPMENT
P
E
R
B
U
S
OF ACTIVITIES
I
N
E
S
S
The past 15 years Kinepolis has set
the tone and given a new impetus to
the cinema operating business.
U
N
I
T
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Page 11
1. Cinema operation
Several Kinepolis complexes broke their visitor
records towards the end of the year:
■ During the Christmas holidays Kinepolis
Hasselt passed the magic boundary of 10,000
visitors in one day for the first time since 1
November 2000!
■ In 2001 Kinepolis Schaffhausen
welcomed some 218,000 visitors,
in 2002 over 270,000 and in 2003
we are hoping to pass the
300,000 visitor mark.
With 24 comfortable, high-tech theatres and its
Imax theatre, Kinepolis Brussels has undoubtedly
added an innovative, if not revolutionary dimension
to the cinema world.
Kinepolis Brussels is now both the standard for the
sector, and the basis for Kinepolis Group’s expansion, with top quality facilities across
Europe.
With over 50% of the Brussels cinema
market, Kinepolis regularly wins
prizes for innovation and quality.
■ Kinepolis Courtrai has broken its
all-time visitor record, with
826,000 visitors in one year, up
from under 800,000 in 2001.
■ Metropolis Antwerp can also look back on a
record year, with just over 3,032,000 visitors to
our Antwerp complex in 2002.
Belgium
When in September 1988 Kinepolis Brussels, the
world’s first megaplex, opened its doors, nobody
could image that its profile would prove so strong
and its success so great that 14 years later the 40
millionth visitor would be choosing which film to
view.
During all these years Kinepolis has set the tone
and given a new impetus to the cinema operating
business.
At the end of 2002 (26 December
2002 to be precise) we had reached
the magic number. The 40 millionth
visitor was expected for the 20.00 h
film show, to be greeted in style by Kinepolis
Group senior management: a star was added in the
Walk of Fame and the lucky visitor received a VIP
pass for an unlimited number of films in 2003, as
well as the right to organise a private viewing,
offered by Kinepolis Film Distribution, for up to 40
of his/her friends and acquaintances.
No less than 200 free vouchers were also scattered
amongst the waiting mass of people following the
40 millionth visitor.
2002 also was an eventful year at Kinepolis
Courtrai :
■ Kinepolis Courtrai celebrated its fifth birthday
in style, including a balloon happening, a party
for all visitors, Donna’s summer tour and
sideshows.
■ The Euro introduction went very smoothly.
Today 40% of visitors pay electronically.
■ Each Kinepolis complex is regularly renovated
to make it more welcoming and comfortable for
visitors. In Courtrai this year the carpeting was
replaced and the foyer totally renovated, freeing
up additional space for commercial use.
■ The parking lot was also improved, with better
signalling, a re-arrangement of parking spaces
and green zones.
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Visitor numbers at Kinepolis Courtrai have grown
every year, taking us in 2002 past the 800,000 mark.
We will maintain this figure by taking care of our very
family audience and our many event visitors.
Since 1 December 2002 the ‘Decascoop’ has been
renamed ‘Kinepolis Ghent’, to emphasis the
Kinepolis group identity and the uniform nature of
the Kinepolis complexes.
In fact the name ‘Decascoop’ dates back to 1975,
when Albert Bert built the first 10-screen (Deca = 10)
complex in cinema history. The memory of the
‘Decascoop’ and of our founder ‘Albert Bert’ have
been maintained by naming two of the theatres the
‘Albert Bert Theatre’ and the ‘Decascoop Theatre’.
The name also appears in the recent foyer renovation
in Ghent. To improve visitor fluctuation and to
enhance the cinema experience the old ‘Decascoop’
foyer has been remodelled into a see-through foyer
with higher ceilings, a friendly seating corner, new
carpeting and lighting and clearer and more legible
signing.
France
The French market proved highly competitive in
2002. Even with increased theatre capacity,
Kinepolis France was unable to avoid a 0.4% fall in
its share of the French market.
Two factors made 2002 an exceptional year for the
French cinema industry. First of all cinema-going was
unusually weak in March, April and September.
Secondly, French films represented just 34.2% of the
market (41.5% in 2001), with no new French films,
apart from Asterix and Obelix.
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In 2003 several innovative programmes will be introduced to increase customer loyalty. In addition to
this, the infrastructures of Kinepolis Mulhouse and
Kinepolis Lomme will be adapted in the direction of
customer-focused film + fun entertainment centres.
Italy
Kinepolis Pioltello ended the year with more than
905.000 visitors, failing to meet its budget for the
year (-4,6%). Compared with last year (9.5 months
only), visitor figures are up by around 74%.
Cinecity Treviso ended the year on budget with
900,000 visitors, equalling the 2001 figure. For 2003
we are again planning on 900,000 visitors. Even
though several new projects are planned in the vicinity, experience shows that Treviso can rely on an
extremely faithful customer base.
On 20 December 2002 the Kinepolis group decided
to dispose of its interests in Italy. An agreement was
signed with Europlex Cinemas for the sale of the 14screen complex in Pioltello with immediate effect.
The stake in the complex in Treviso (55%) will also be
sold; negotiations with various parties are currently
ongoing.
An additional reason for selling the interests in Italy is
the current favourable climate in the Italian market,
which means Kinepolis can guarantee itself a capital
gain.
The sale of the complex in Pioltello will lead to a
reduction in debt of more than EUR 25 million.
Switzerland
Kinepolis Schaffhausen finished the year with
270,000 visitors, 24% up on 2001 and above budget.
Table 1.3
Overview of the cinema sector by geographical market 2001
Belgium
France
Spain
Poland
No. of complexes
123
2 186
1 254
156
No. of screens
493
5 241
3 747
360
No. of seats
109 059
1 072 113
13 078 000
seats/screen
221
205
349
no. of tickets
24 000 000 185 816 000 146 810 000 20 940 000
tickets/screen
46 682
35 454
39 181
58 167
tickets/seat
220
173
112
no. of inhabitants
10 262 000
59 521 000
40 121 700
10 262 700
inhabitants/screen
20 815
11 357
10 708
22 311
tickets/inhabitant
2.34
3.12
3.66
2.04
Source: mediasalles 2002
U
Italy Switzerland
2 243
334
3 198
508
108 025
213
105 538 000
17 113 000
33 001
33 687
158
57 844 000
7 204 100
18 088
14 181
1.82
2.38
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The reasons lie both in the better choice of films
(Spiderman, Die Another Day…) and in initiatives
directed at clearly defined target groups (a new youth
card, programming of original version films, etc.).
Further explanation can also be found in Kinepolis
Schaffhausen’s higher profile in the region. For 2003
we are looking for continuing growth and 300,000
visitors. Supporting this is a good film line-up (including Matrix 2 and 3, Harry Potter 3, …), whilst activities around the cinema have been further developed
with the arrival of a bowling alley, a restaurant and a
pub.
Poland
Kinepolis Poznan counted 1.1 million visitors in its
first full operating year after opening in July 2001. It
remains, however, 43% under budget. The first reason lies in the general economic crisis that has hit
Poland hard (unemployment of over 20%, inflation
up around 10%). Secondly a number of films drew
fewer visitors than expected (Spiderman, Star Wars,
etc.).
major Polish films) and efforts to attract specific target groups (schools and students).
Spain
Kinepolis’ Spanish success story continues. With 3.5
million visitors Kinepolis Madrid remains the world’s
largest and most successful cinema.
Kinepolis Valencia has grown very strongly since
opening in 2001, and is now, after Madrid, Spain’s second largest cinema. In 2002 Kinepolis Paterna had a
market share of 30% in Valencia.
Kinepolis Spain’s popularity is again demonstrated in
the list of Spain’s 25 most popular cinemas. Eight of
the theatres in this list belong to Kinepolis.
Another important record in 2002 relates to the
launch of the Lord of the Rings, where Kinepolis
Spain took no less than 50,000 advance bookings.
Kinepolis Poznan did, however, drastically improve
its market share (from 55% at the time of opening to
70% at the end of 2002). The complex is developing
increasingly into an entertainment centre with bars,
shops, restaurants, gaming facilities, etc. These concessions bring in an annual income of around EUR
400,000. With further projects in the pipeline (carting, bowling, etc.), we expect this figure to grow by
50% in 2003. We expect visitor numbers to increase
in 2003 and think we will end up at 1.4 million.
Supporting this are the cinema’s growing regional
function, the film line-up (Harry Potter, a number of
Table 1.4
Geographic distribution of Kinepolis Group visitors
1997
1998
1999
2000
2001
2002
Total Kinepolis Group
14 546 000
17 861 000
19 106 000
22 446 000
26 000 000
27 334 000
Belgium
10 945 000
12 430 000
11 291 000
12 203 000
12 440 000
12 376 000
France
3 601 000
4 683 000
4 629 000
5 980 000
6 580 000
6 370 000
Spain
48 000
3 186 000
3 340 000
4 600 000
5 345 000
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923 000
2 380 000
3 243 000
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2. Food & Beverage
The Kinepolis F&B Department can look back with
satisfaction at 2002. The introduction of the Euro
was passed without any technicals or operational
problems. Pricing-wise we made a conscious choice
to convert existing prices into Euro without any
price rises. We did, though, introduce in Belgium
and France on 1 January (and in December 2002 in
Spain) a totally new menu package with an emphasis on the sale of combos (drink and snack for a single price). These combo sales have positively
impacted popcorn and crisps sales.
Our ongoing cooperation agreements in Belgium
with Coca Cola, Interbrew and Nestle were renewed
in 2002. Several multi-annual partnerships were resigned with Unilever, Lay’s and Masterfoods. The
big newcomer to our drinks selection was the
Bacardi Breezer from Bacardi-Martini.
Total F&B turnover of Kinepolis Group in 2002: EUR
36,810,209.
overview popcorn consumption
15 000 000
12 000 000
9 000 000
6 000 000
With regular sales support actions, good category
management, strong infrastructure backing and
optimal pricing policy, the Belgian F&B increased
the turnover by cinema visitor by over 7%, and the
French turnover by over 8%.
3 000 000
0
3. Screen advertising
In December 2002 Kinepolis and Screenvision
(Carlton Advertising & Thompson) signed an agreement relating to screen advertising production and
digital screen advertising. Screenvision and
Kinepolis Group are launching a pilot project as a
result of which Kinepolis screen advertising will be
fully digitised.
1997
1998
1999
2000
2001
2002
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4. Booking & Programming
The Booking and Programming Department is
internationally responsible for
- selecting films and negotiating rental agreements with film distributors (booking)
- efficient programming based on cinema and
screen capacity (programming).
Every available analysis of the Belgian cinema market is collected and processed in this department.
The crucial question at the start of 2002 was: will
the films that promise so much on paper in fact
meet expectations?
The huge records established in the United States
failed to convince European audiences, and visitors
did not stream into the cinemas in the same way.
The one record broken was the opening weekend of
“Harry Potter and the Chamber of Secrets”.
Only a few titles made it past the EUR 2,500,000
box office mark:
Spiderman (which annihilated all records in the
USA) with EUR 4,105,826, Star Wars episode 2 with
EUR 3,280,035, Ocean’s Eleven with EUR 4,143,811,
whilst Asterix & Obelix, a European product, produced box office takings of EUR 4,508,859. Ice
Age brought in EUR 2.600.102.
The first Harry Potter and Lord of the Rings both of
course far exceeded this figure, but the figures are
spread over two years.
Films that came close to EUR 2,500,000 were: A
Beautiful Mind with EUR 2,185,305, 40 Days and 40
Nights with EUR 2,071,839 and Men in Black 2 with
EUR 2,256,567. Monsters Inc. brought in EUR
2,432,645.
‘Soft films’ and children’s films scored particularly
well. A Beautiful Mind also benefited from its Best
Film Oscar. War films and ‘heavy’ subjects were
avoided by the general public.
The trend of smaller films taking a larger share of
the cake continued in 2002, with a huge number of
‘small’ releases. This allows us to spread our offering much more evenly over the year, without the
huge peaks and troughs that we saw in the 1990s.
Audience demand makes us place more and more
trailers, i.e. we show more and more prints of one
and the same film, as today’s young people want to
see what’s new (and in particular cannot wait till
tomorrow).
This is a development that can be seen right across
Europe. Its effect is to shorten film cycles. A blockbuster that could previously easily run for 15
weeks, is now truncated to 10. Small films run for
no more than 6 weeks in our multiplexes.
The traditional peak weeks remain, concentrated
around the November and December holidays.
2003 looks good with a number of sequels including Matrix 2 and 3, Lord of the Rings 3, American
Pie 3, Bad Boys 2 and Charlie’s Angels 2. The fashion that began with Superman of cartoon characters coming to life on the screen, as in
Spiderman and Men in Black 2, continues in the
coming year with the Hulk and Daredevil.
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BELGIUM
Partnerships
Bacardi Breezer and Kinepolis have signed a 3year preferred partnership, a key reason being that
Kinepolis’s young, trendy audiences represent an
attractive target group for Bacardi. Bacardi
Breezer entered Kinepolis in original style with a
through-the-line campaign featuring fastlane visibility, shows, bannering campaign and advertisements in Movies 2 See.
Proximus too was much in evidence in 2002, for
example :
■ Star Wars on 16.5.2002: 3250 people were
invited to an exclusive pre-release showing
of Star Wars ‘Attack of the Clones’ at
Kinepolis Brussels. All level 2 theatres were
used for this event.
A contract has been signed
with Hewlett Packard for
close cooperation on the
updated Kinepolis ticket
platform (Kineticket).
■ Minority Report on 29 and 30.9 and 1.10 at
Kinepolis Brussels. Over 12,000 Proximus
clients enjoyed an exclusive pre-release
showing of ‘Minority Report’, with free soft
drinks for all visitors.
Unilever’s Iglo Ola division
has renewed its contract
for a further 3 years,
extending it to include Bi-Fi.
■ Treasure Planet at Kinepolis Brussels.
Almost 30,000 Proximus clients were invited to a pre-release showing at Kinepolis,
followed by a show in Expo Palace 12, where
Proximus had installed a Treasure Planet fun
park for the children.
Coca Cola and Kinepolis have cooperated in a wide
range of areas in 2002:
■ Saint Nickolas party for schools
(Kinescola): Coca Cola and Kinepolis
together surprised pupils on 5 and 6
December with a free drink + dance
acts.
■ Christmas action: a surprising
Christmas action began on 9
December with Christmas decorations in all Kinepolis complexes, and
visitor entertainment combined with
special food and drink offers
■ other activities directed at students
(Chill Out Events), as well as a new
Business to Business approach.
■ Another 6 Proximus
Film Experience evenings
in 2002, with visitors able
to watch a film of their
choice on Monday at 20.00
for just EUR 4.00, and with
Proximus paying the difference.
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B2B activities and incentives
A first digital newsletter in html was sent in April
2002 to around 2,500 addresses. By November
this figure had risen to almost 6000. This newsletter, with information on events, news titbits, new
releases, customer testimonials, etc. is sent monthly to all Business to Business contacts.
Two news flashes were also sent this year: one for
the Film Festival and one for James Bond.
Kinepolis enjoys several key advantages when
organising seminars, congresses and product presentations, among them a spacious, free parking
area, easy road and metro access, theatres with
“stadium seating” and comfortable armchairs,
large screens and ample audiovisual facilities, multipurpose reception rooms for coffee breaks,
lunches, cocktails, small exhibitions, etc. These
B2B activities clearly have wind in their sails. To
consolidate – or even increase this growth – the
Regional Sales Promoters undertook a phone
prospecting campaign between May and August,
aimed at inviting prospects to the cinema complex
to experience “live” the opportunities Kinepolis
has to offer.
A CD Rom presenting “Kinepolis as location” was
left with or sent to prospects. 820 companies were
contacted this way and the first bookings have
already been taken.
■ The Metropolis, well known in the congress
sector for its Business & Communication
Centre, is in a class apart from Antwerp’s
other congress locations. In 2002 a folder
was produced to get the Business &
Communication Centre even better known.
Events held there in 2002 included:
■ Exhibitions: City of Antwerp, The Lonely
Mountain (games), Navajo, Microsoft, ...
■ Medical congresses: The Flemish Obstetrics
and Gynaecology Association
■ Federations: VEV (Federation of belgian
Enterprises), Flemish Quality Management
Centre
■ Film + exhibition: ROR Telecom
■ Seminars: PriceWaterhouseCoopers, Creyfs
Interim, .....
In 2003 and the coming years every effort will be
made to grow the Metropolis Business &
Communication Center into a key player on the
congress market.
A mailing featuring year-end and new year events
was sent to around 4,200 B2B clients. Special
emphasis was placed on specific films, among
them the main autumn releases: Harry Potter,
Treasure Planet, James Bond. This mailing was
immediately followed by a number of concrete
bookings, as well as various inquiries, some of
them for 2003 already.
New this year was a secretary’s day event, along
with the existing gift programme (i.e. good wishes
card and mini-film box). This year managers could
reserve dual tickets for their secretaries and their
partners for a particular pre-release showing. On
entering the theatre all visitors received a CocaCola light and an attractive goodie bag full of little
gadgets.
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In 2002 two new Corporate Spots were introduced:
■ a Corporate high-tech spot, using loudspeakers, flashes and lenses to emphasise the three
Kinepolis Group qualities: 'sounds good', 'looks
good' and 'feels good':
■ a Corporate Zen-spot: a trip through the woods
(very dark, obscure images with corresponding
musical accompaniment) to the treetops (with
lots of light, colourful images and relaxing music),
the aim being to create a pleasant, restful sensation for visitors.
One of the two spots is shown for every film you
watch!
At the end of 2002 Van Gansewinkel and Kinepolis
signed a cooperation agreement to enhance visitor
awareness of the problem of litter, the aim being to
get visitors to place their litter in bins provided and
not leave it strewn around the theatre.
This spot too is shown before the start of every
film.
Trade Channels
Happy Sundays: On 1 September, the 3rd Happy
Sundays season began with another varied selection of films, aimed at families with children aged 3
to 12.
The aim is to offer an attractive film morning, every
first Sunday of the month, in all Kinepolis cinemas,
combining children’s entertainment + film. Each
time two films are offered, with a special emphasis
on one of them. The number of visitors varies each
time between 4,000 and 9,000.
Following its overwhelming success last year and
the start of this year, it was essential to reopen the
Robijn Kine Crèche. In all 800 children visited this
well equipped crèche facility. Reactions from the
general public and from parents were all very positive. The crèche, for children aged 0 to 5 is available totally free of charge, every Sunday morning
at Kinepolis Brussels.
Everything is on hand to welcome parents and children: a crèche manager with a team of child carers,
a Robin clown to entertain the children, a GSM with
buzzer function to contact parents in the event of
problems…
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The existing KineScola programme (teacher’s box
with a wide range of film-related teaching material,
school presentations, teacher Infodays, 4 mailings
a year to teachers, school projects including cooperation with the Youth&Peace movement, VTM)
was continued with a number of innovations:
■ KineScola Filmfestival:
Films are programmed every month at fixed
dates in the individual cinema complexes, from
October through to June, giving teachers additional possibilities for educational excursions.
The December edition, for example, focused on
Saint Nickolas (see below) and the February 2003
edition, in the middle of Belgium’s carnival season, will have a strong carnival feel to it.
informative, user friendlier, more intuitive and
faster site. So popular has this site proved that we
measured as many pageviews in December 2002
as in the whole of 2000. 100,000 trailers were
watched in this month.
The weekly ‘My Kinepolis’ email newsletter
launched at the start of 2002 is already received
by 25,000 regular subscribers. Anyone can subscribe to this letter at any time without obligation,
providing a basis for pure ‘permission-based’ marketing.
■ KineScola Calendar:
All school projects, information on the KineScola
Film Festival and the regular film programme
were combined into one calendar per cinema.
In early October we launched the Guido-Kinepolis
Student Card, entitling students to reductions at
Kinepolis, for the fourth year in a row. Further
benefits were added to the card by XL Call, CocaCola, Hoegaarden, McDonald’s, Connections and
other partners.
This Student Card can now also be requested via
the Internet.
Sales Promotions
Year-end campaign: developed under the theme
‘we offer our clients emotion’ to feature our year
end sales promotions.
Extra sales promo: James Bond boxes with two sets
of James Bond playing cards + 4 vouchers, to mark
the 40th anniversary of the first Bond film.
Internet / Content International
The Kinepolis site is clearly popular. With over 24
million pageviews in 2002 (double the 2001 figure
and 4 times that of 2000) we can only say that our
visitors are mad keen on the internet and on the
Kinepolis site.
To give visitors even better information we
launched in November 2002 a brand new, more
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Sales
Partnerships: in 2003 partnership signings are
planned with Masterfoods, Interbrew and Scalbert
Dupont. The partnership with La Tête dans les
Nuages was extended for all our complexes.
It was important to create a loyalty programme for
the works councils. Simpler pricing, more suitable
products, a loyalty programme with cumulative
points, good customer relationships through prerelease showings and more film information form
the basis of this programme.
Sales
"Kinepolis Madrid: home of the stars"
Kinepolis Madrid received definitive recognition in
2002 as the ideal cinema for prestigious prerelease showings. Several of the world’s top stars,
among them Will Smith, Tommy Lee Jones, Samuel
L. Jackson, Wesley Snipes, Britney Spears and
Robin Williams visited Kinepolis Madrid to mark
the launch of their latest films on the Spanish market.
Marketing
Matinées Magiques: A Matinée Magique product
was launched in France on the model of the Happy
Sundays in Belgium. Every first Sunday of the
month a pre-release showing is offered for the entire
family, preceded by children’s entertainment, etc.
Each matinee now draws an average 2,500 visitors
at the Lomme, Metz, Mulhouse and Thionville complexes.
Secret Movie: For visitors who are uncertain which
film to view, Kinepolis offers a pre-release showing
of a “Secret Movie” once a week, along with varied
entertainment and visitor gifts.
Summer ticket: Following the success of the 2001
Summer Ticket campaign, in which film tickets
were offered at EUR 5.00, no less than 58,607
Summer Tickets were sold in 2002.
Advertising contracts signed.
Three multi-annual contracts were signed in 2002,
generating significant additional income for
Kinepolis Spain:
■ Cemusa outdoor with Kinepolis Madrid (10
years, total income € 700,000 + free outdoor
furniture and media exchange). A pre-agreement
is in the pipelines with Kinepolis Granada.
■ Indoor Media (= new name of Promocentro)
with Kinepolis Madrid and Valencia (advertising
on indoor video circuits, 3-year contract, total
income € EUR 560,000).
■ Media pictures movie billboard with Kinepolis
Madrid and Valencia (large film boards on outside
walls, 2 year contract, total income of EUR
176,800).
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Launch of Kinepremium
As Spain’s leading cinema chain, Kinepolis Spain
profiles itself professionally to the business community as the ideal partner for promotions, incentives, B2B events etc. The Kinepremium product
has been successfully launched in this context.
Kinepremium allows the business world to organise
film events with catering and entertainment in its
favourite Kinepolis cinemas. This formula, successful for many years already in Kinepolis
Belgium and France, is now catching on in Spain
Revival of below-the-line promotions
After a significant fall in 2001, income again rose
sharply from the hiring of space for below-the-line
promotions. A key factor here is the saturation and
high price of traditional Spanish advertising media
like television and newspapers. Experience tells us
that the Kinepolis leisure environment is extremely suited to below-the-line promotions.
Pre-sales campaigns
In 2002 every ‘blockbuster’ release was preceded
by a pre-sales campaign to keep one step ahead of
the competition. Kinepolis Spain for example presold more than 53,000 tickets for “The Lord of the
Rings: The Two Towers” before the first performance.
Added Value campaigns
Partnerships with local attraction parks, theatres
and video distributors have enabled Kinepolis
Spain to offer attractive premiums to over tens of
thousands of customers throughout the year.
Kinepolis is much more than cinema!
Cooperation with Spanish film producers
Given the importance of local film products for the
Spanish cinema world, Kinepolis Spain decided to
tighten its links with Spanish film producers. This
strategy has also resulted in the organisation of a
large number of pre-release showings in the presence of key personalities from Spanish social and
cultural life. Oscar winner J.M. Garci, Spanish premier José María Aznar and well-known investigating magistrate Garzón are just a few of the high
profile guests that Kinepolis has already welcomed
to these events.
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B2B
We have begun exploring the Business to Business
market. Strong interest has already been signalled
from the motor car industry, the pharmaceuticals
sector and banks and insurance companies.
Many of them are already making use of the integrated media mix opportunities within Kinepolis
Poznan: product placement, animations and samplings, advertising on the back of the ticket, mentions in our weekly programming flyer, etc.
Certain companies have already understood that
Kinepolis offers the best location for holding seminars.
Marketing
Trade Channels
This year we began to work on a number of interesting target group programmes.
Schools
In 2002 we probed whether Kinepolis Poznan is
interesting for schools as pure entertainment. In an
initial approach 10 mailings were sent to 3,000
schools. Based on these mailings alone we have
already welcomed 130,000 school pupils this year.
A success that represented over 10% of all visitors
in 2002.
Families
In Poland too we started our Magic Mornings in
September. Various partners, among them CocaCola, Nestlé, Dynamix and Fawor, were immediately interested in this programme and cooperated
with free samplings of their products within the
complex.
This programme has proved so popular that we
shall certainly be repeating it in 2003.
Students
In May we also launched our student card. With the
Kinepolis student card you pay just 12 PLN for a
film, as well as enjoying a wide range of additional
benefits from the card’s partners.
Already 30,000 out of a total of 107,000 students
carry Kinepolis student cards.
Kinepolis Poznan’s first birthday
On 5 July 2002 Kinepolis Poznan was one year
old! This was celebrated during the weekend of 28
to 30 June with a number of special pre-release
showings at special rates, entertainment and gifts
for young and old.
Football on the big screen:
During this year’s World Cup, supporters could
watch Poland’s football matches on the big screen,
with proceeds going to fund Poznan’s junior team.
Content
New internet site:
In November we also launched the Polish version of
the Kinepolis website.
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ITALY
SWITZERLAND
Sales
B2B
We have started to explore the Business to
Business market. A cooperation agreement has
been signed with a specialist agency that organises events for companies in the cinema complex
only.
Sales
B2B
We have begun examining the Business to Business
market. Certain companies have already discovered us as a location for seminars, product placements, etc. The generally younger audience is
ideal for putting new products onto the market.
Marketing
Trade Channels
This year we have begun work on a number of
interesting targeted programmes.
Marketing
Trade Channels
This year we have begun work on a number of
interesting targeted programmes.
Students
In September we launched our student card here
too. Over 1,200 students already have this card.
Teens
In September we launched the Teens Card (13-24
years). With this card young people pay less for
their film entertainment, as well as enjoying a
whole range of additional benefits from the card’s
partners. Over 700 students already carry this
card.
Kinepolis Pioltello’s first birthday
23 March was Kinepolis Pioltello’s first birthday.
This was celebrated in genuine Hollywood style
with a number of look-alikes, bodyguards, photographers, and every visitor given red carpet treatment. Various stands offered mini-massages, free
products, a free eye tests, etc, plus a wealth of surprises and entertainment for vistors large and
small.
Content
New internet site
In November we also launched the new Italian version of Kinepolis website.
2nd birthday at Kinepolis Schaffhausen:
On 15 December Kinepolis Schaffhausen celebrated its second anniversary! This was celebrated on
23 November with a huge Hollywood festival with
various look-alikes, bodyguards, photographers,
and of course the red carpet. This was followed in
the afternoon by an additional children’s show
based on Harry Potter II, and in the evening by the
exclusive pre-release showing of James Bond with
a number of little extras for visitors.
Content
New internet site
In November we also launched the new German
language of the website.
ANNUAL
KINEPOLIS
®
REPORT
2002
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PAG E
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DEVELOPMENT
P
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B
U
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OF ACTIVITIES
I
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5. Film distribution
6. Film production
Kinepolis Film Distribution had a disappointing
year in 2002. Income was down owing to a lack of
films, with several film projects postponed after the
September 11, 2001 events. Another contributing
factor was the distribution problems of Miramax
Films, KFD’s leading supplier, in France. In mid2002 Miramax decided to end its contract with
French distributor BAC films and to set up its own
distribution arm in cooperation with TF1. TFM
became operational in October 2002. One positive
effect was KFD’s success with local productions.
Kinepolis Film Production ceased operations on 1
January 2003, with all existing projects, including
the filming of Thea Beckman’s book ‘Crusade in
Jeans’ and the children’s film ‘De Zusjes Kriegel’
transferred to EC Company. EC Company is a totally independent company, unrelated in any way to
the Kinepolis Group, with Eric Caroen (former
manager of Kinepolis Film Production) as its
Managing Director.
Overhead costs were pared back. Savings were
achieved, and continue to be made, on personnel
costs, general overheads and marketing costs.
More than ever before the cost/benefit ratio is
being optimised. Combined with rising expenditure
this should produce a positive balance in 2003.
In 2003 we are already certain that a sufficient
number of films will be released. The year got off to
a good start with Gangs of New York, Martin
Scorsese’s new film with a star-studded cast
(Leonardo diCaprio, Cameron Diaz and Daniel DayLewis), whilst other productions promise to be of
exceptionally high box office quality. Purchases
have increased, a number of films originally
planned for 2002 are finally ready for release, the
French distribution problems have been solved and
local acquisition policy is running at full steam.
MMG’s new Belgian productions (Flikken,
Windkracht 10, Hector, Max, Koko Flanel) promise
to be a hit.
7. Decatron
Decatron is the Kinepolis Group’s Project
Development arm. It also provides Projection &
Sound Support, Facility Management & Internal
Support, IT and technical support for F&B.
Kinepolis Project Development consists of the
development and management of new cinema projects. In 2002 this included preparatory work for
the Kinepolis Granada (opening at the end of
2003), but also the negotiations for the building
and realisation of future projects, including
Kinepolis Nancy (opening scheduled for 2004),
Kinepolis Ostend and Kinepolis Bruges (openings
scheduled for 2005-2006).
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8. Rentals
This activity consists of leasing adjacent sites
space and/or real estate to third parties wishing to
set up and operate restaurants, licensed premises,
and video and entertainment centres.
future to acquire new rental income without having
to cut back existing sources. The complexes
abroad, with their larger surface areas, are more
suited to this approach.
These premises are operated at optimal profitability in close consultation with the concession holders. Various concepts are designed to produce perfect complementarity, in which rival energy gives
way to creative retailing. A total leisure programme
with its specific activities commands constant
media attention and of course promotes the attractiveness of the site. This should help attract more
film visitors to Kinepolis, whilst producing spin-off
income both before and after cinema visits.
In October 2002 a Fyzix facility opened its doors in
the Kinepolis complex in Liège.
At the request of concession-holders special
events are put on in quieter cinema periods. At
Kinepolis Kortrijk, for example a hot air balloon
event was organised, and at the Metropolis
Antwerp the annual “4th of July” American Movie
Day. Other recent examples are the open-air
appearance of an opera singer and the “Image
Storm” project.
Concretely Kinepolis is developing an action plan
with its partners directed at visitors’ needs. It is
examining the possibility of combining the cinema
experience with sport and recreation, by for example including fitness and indoor children’s play
parks in its facilities. To achieve this, it is important
that the concept of cinema be interpreted more
widely by the law than simply film showings. For
this reason work began in 2002 on a study of the
zoning plans for the various complexes. Kinepolis
assumes that tomorrow’s consumer wants to be
offered a Total Leisure Program on one and the
same site, with a variety of services, facilities and
leisure opportunities. A well thought-out and varied range of activities stimulates Kinepolis’s concession-holders to do business successfully in a
unique discipline. This will enable Kinepolis in
Visitors to these events can also purchase cinema
tickets from restaurants and other facilities on the
Kinepolis site via the Kineticket system. This represents an additional service for Kinepolis visitors,
and at the same time an additional incentive to
visit these facilities.
ANNUAL
KINEPOLIS
®
REPORT
2002
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H
U M A N
R
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S
O
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S
Kinepolis Group wishes to attract
and motivate talented people who
embody its values of “quality” and
“customer focus”.
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Kinepolis Group’s employees are key contributors
to its success, and the group seeks to recognise
them appropriately. The group’s attention to its
employees also benefits its customers and other
stakeholders.
A HR Mission Statement has now been developed
from the Business Mission:
■ to be a multinational department with an
international, transparent and innovative dimension;
■ to strive for operational quality, efficiency
and flexibility
■ to represent added value for
management and employees
■ to stress the proper implementation of corporate policy and
legal obligations.
Health and safety at work
In September 2002 the external safety advisor was
succeeded by an internal safety advisor, whilst an
internal “basic safety” training programme was
organised for the hierarchical line. This training
allowed safety deputies to be officially appointed to
support the internal Accident Prevention and Work
Protection Department.
The key objective for 2003 is the monthly control
round of the complexes, aimed at guaranteeing
maximum safety for both staff and customers.
Projects for 2003
As the most important projects we
can already mention the expansion of
the Intranet and the Kinepolis
Academy (quality management and
internal training programmes).
Kinepolis Group wishes to attract
and motivate talented people who
embody its values of “quality” and
“customer focus”. At the same time
the group emphasises team spirit,
sense of responsibility and personal
development.
Temporary employees : 788
Training
An extensive training programme, consisting of
both theoretical and practical components, was
organised prior to the euro switchover at the start
of 2002. Thanks to this training initiative, Kinepolis
Group customers enjoyed good service and minimum waiting times during the switchover weeks.
Full time employees : 1 127
Geographical distribution of employees
Geographical area
At december 31 st
2002
Belgium
992
France
355
Spain
340
Poland
125
Italy
58
Switzerland
45
Total
1 915
Employees
2001
946
364
446
103
58
44
1 961
ANNUAL
KINEPOLIS
®
2000
865
340
237
3
3
/
1 448
REPORT
1999
931
328
210
2
/
/
1 471
2002
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Amendments to the
Articles of Association
The Extraordinary General Meeting of 17 May 2002
decided to increase capital by EUR 66,639,876.13
through the incorporation of the share premium
account, without the issue of new shares.
Immediately thereafter capital was decreased by
offsetting it against past losses of EUR
97,223,343.98, and by booking out the incorporated revaluation surplus of EUR 2,478,935.25.
Following these movements the capital of the company amounts to EUR 47,442,919.65.
The statutory authorisation granted
to the Board of Directors to increase
the issued capital in an amount of
EUR 47,442,919.65 in one or more
instalments was renewed by
the above-mentioned Extraordinary
General Meeting for a period of 5
years. At the same time the statutory
authorisation granted to the Board of
Directors to increase capital in an
amount of EUR 47,442,919.65 in one or more
instalments as from the date of publication of a
public take-over offer, was extended for three
years.
Companies’ Code at a price that may not be lower
than the fractional value per share of 115% of the
closing price at which these shares are listed on
Euronext Brussels on the day preceding the purchase or exchange.
This authorisation is valid for a period of 18
months.
Under the terms of the “Market Maintenance
Agreement” with stock market company “Bank
Dewaay” and subject to the conditions of the resolution of the Extraordinary General Meeting of 17
May 2002, a total of 76,403 shares
were purchased last year and 51,119
shares were sold.
The agreement in question was terminated on 31 January 2003.
On 4 March 2003 Kinepolis Group
concluded
a
new
“Market
Maintenance Agreement” with Delta
Lloyd Securities nv to promote the
liquidity and negotiability of the
Kinepolis Share.
At 31 December 2002 Kinepolis Group NV held
53,726 of its own shares, representing 0.78 % of
the total number of shares, with a capital value of
EUR 367,768.
Buy-in of own shares
The Extraordinary General Meeting of 17 May 2002
renewed the authorisation granted to the Board of
Directors:
■ To acquire the company’s own shares or profitsharing certificates and to dispose of them if such
acquisition or disposal is necessary to avoid an
imminent and serious disadvantage for the company.
This authorisation is valid for a period of three
years.
■ To acquire the number of the company’s own
shares permitted under article 620 of the
ANNUAL
KINEPOLIS
®
REPORT
2002
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PAG E
30
Conflict of interests
procedure
Per 31 December 2002 Kinepolis Group NV sold its
participating interst in Pentascoop NV to BVBA
Aljonic in formation, represented by Messrs
Alexander, Jonathan and Nicolas Bert, the sons and
grandsons respectively of directors Mr Joost Bert
and Mrs Marie-Suzanne Vereecke, who in turn are
indirect co-shareholders in Kinohold bis NV, in turn
is a co-shareholder of Kinepolis Group NV.
The Board of Directors, meeting on 6 December
2002, whilst of the opinion that the procedure of
article 524 of the Companies’ Act is not strictly
applicable, nonetheless resolved, given the abovementioned family ties, to avoid subjectivity of any
kind and to follow the procedure 523 of the
Companies’ Act in question.
The Board of Directors, meeting on 31 December
2002, resolved, after studying the report of the
independent directors and also the report of the
independent expert, to sell the shares held in
Pentascoop nv to BVBA Aljonic.
Other mandates given to
the auditor
The auditor of Kinepolis Group NV is BCV Klynveld
Peat Marwick Goerdeler Bedrijfsrevisoren, represented by Mr Ludo Ruysen.
During 2002 a total of EUR 382,435 was paid to the
Auditor, KPMG Bedrijfsrevisoren and its affiliates,
in fees for additional work.
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O R P O R AT E
O
V
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N
A
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C
E
Board of directors and
special committees
Capital structure
The authorized capital of the company amounted at
31 December 2002 to EUR 47,442,919.65, represented by 6,930,778 shares without nominal value, all
enjoying the same rights.
The authorisation of the Board of Directors to
increase capital was extended by the Extraordinary
General Meeting of 17 May 2002.
The Board is therefore empowered, until 17 July
2007, to increase the capital of the company in one
or more instalments by a maximum amount of EUR
47,442,919.65. The above-mentioned General
Meeting also empowered the Board of Directors until
17 July 2005 to increase the issued capital following
publication of a public take-over bid.
Shareholders structure
A shareholders agreement has been concluded
between the Bert (Kinohold) and Claeys (CCM&H)
families which contains arrangements relating to
the structuring and anchoring of control of the
Kinepolis Group, the composition of the administrative bodies and the Group’s industrial strategy.
A second shareholders agreement contains
arrangements between the Bert and Claeys families on the one hand and GIMV on the other. These
concern mainly restrictions on the transfer of
voting securities. In this way transfers of shares by
GIMV are subject to a preferential right of purchase
in favour of the Bert and Claeys families.
Composition of the Board of Directors
The Articles of Association state that the Board of
Directors can consist of up to 10 members, at least
two of whom should be regarded as independent of
the reference shareholders.
Provision is also made that, as long as Kinohold SA
and/or CCM&H NV, as well as all entities directly or
indirectly controlled by them own, either alone or
jointly, at least 35% of the shares of the company,
8 directors shall be appointed from among candidates put forward by Kinohold and CCM&H.
Where the shareholding percentage is less than
35%, Kinohold and/or CCM&H are entitled to put
forward one candidate per tranche of shares representing 5% of the capital.
Directors are appointed for a maximum term of 6
years and may be reappointed.
The Articles of Association do not impose any age
limit on the appointments of directors.
The Board of Directors, meeting on 12 June 2002,
accepted the resignation of Mr Jan Staelens and
co-opted NV HRV, represented by Baron Hugo
Vandamme, as director. It also co-opted Mrs MarieSuzanne Bert-Vereecke as a director to complete
the mandate of the late Mr Albert Bert.
On 8 November 2002, the Board of Directors of
Kinepolis Group appointed Baron Hugo Vandamme
as Chairman. Mrs Marie-Rose Claeys-Vereecke
remains Co-Chairman, while Mrs Marie-Suzanne
Bert-Vereecke will bear the title of Honorary
Chairman.
Shareholders structure at 31 December 2002:
Shareholder
Kinohold bis and CCM&H
GIMV NV
Kinepolis Group
Public
Total
Number of shares
4 419 313
767 797
53 726
1 689 942
6 930 778
ANNUAL
KINEPOLIS
®
%
63.76%
11.08%
0,78 %
24,38%
100%
REPORT
2002
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C
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holders and the management.
Per 31 December 2002 the Board of Directors consists therefore of 9 persons, four of whom should
be seen as independent of the reference share-
Directors
Mrs Marie-Suzanne Bert-Vereecke, Honorary Chair (1) (4)
Baron Hugo Vandamme, permanent representative of HRV NV, Chair (1) (2)
Mrs Marie-Rose Claeys-Vereecke, Co-Chair (1)(4)
Mr Joost Bert, Chief Executive Officer (4)
Mr Florent Gijbels, Chief Executive Officer (4)
Mr Marc Vercruysse, Director (1) (5)
Mr André Meers, Director (1) (3)
Mr Philippe Haspeslagh, permanent representative of Euro Invest Management NV, Director
Mr Gerard Van Acker, permanent representative of Gerard Van Acker BVBA, Director (1) (7)
(1) (6)
End of mandate
2003
2003
2003
2003
2003
2003
2004
2005
2003
1. Non-executive director
2. Chairman of the Board of Directors of Roularta Media Group nv, Vice-Chairman of the Board of Barco NV, Director of Generale Maatschappij NV,
Director of Maaschappij van de Brugse Zeevaartinrichtingen NV, Member of the Supervisory Board of Sara Lee
3. Independent director, also General Manager of the Machiels Group and lecturer at the UFSIA
4. Represent the majority shareholders
5. Represents GIMV, also a Director of Barco NV, NV Tunnel Liefkenshoek, Domus Flandria NV, Portinvest, Finimmo NV and of GIMV
operating companies
6. Independent director, Professor INSEAD and Vlerick Management School, Chairman of the Board of Directors of Dujardin Foods NV, Quest
Management NV, Brains in Motion NV and Director of Quest for Growth NV, Capricorn Venture Capital Partners and INSEAD.
7. Independent director, Chairman of the Board of Directors of NV Belgische Betonmaatschappij, Director and Chairman of the Audit Committee at
Carestel Groep, Director and member of the audit committee of NV Real Software, Chairman of the Board of Directors of NV Language &
Computing, Chairman of the Board of Directors of NV Sabena Technics, Director at NV Bofort and at NV Watt Plus.
Operation of the Board of Directors
As the highest management body, the Board of
Directors is responsible, in addition to its statutory
tasks, for developing the general policy and investment plan.
Its also supervises the daily management and
appoints the members of the Executive Committee.
Since 2000 the Board of Directors has met in principle every two months. Each meeting’s agenda
includes:
■ the monthly financial results of Kinepolis Group
and its subsidiaries;
■ newly proposed projects
■ the progress of ongoing projects.
Once a year the Board also draws up the annual
accounts, sets the investment budgets for the following financial year, determines the Group’s short
and long-term strategy and establishes the general remuneration policy.
According to the articles of association, resolutions
are taken by a majority of votes cast,
but in practice decisions are reached by consensus.
The Board of Directors met ten times in 2002.
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The Remuneration Committee
The Remuneration Committee, set up in 1998 from
members of the Board of Directors, is made up of the
following non-executive directors:
Mrs Marie-Rose Claeys-Vereecke
Mrs Marie-Suzanne Bert-Vereecke
Baron Hugo Vandamme, permanent representative
of NV HRV
Mr André Meers
Mr Marc Vercruysse
The chairman is Mr André Meers.
Mrs Marie-Suzanne Bert-Vereecke was appointed to
this committee by the Board of Directors, meeting on
6 December 2002, to replace Mr Albert Bert. The
same board meeting also proceeded to appoint
Baron Hugo Vandamme, permanent representative
of NV HRV, to the executive committee.
The Remuneration Committee advises the Board of
Directors on general remuneration policy and establishes the fees of the members of the Executive
Committee.
The Remuneration Committee met three times in
2002.
The Audit Committee
The Audit Committee, which was set up in 2001, consists of:
Mrs Marie-Rose Claeys-Vereecke
Mrs Marie-Suzanne Bert-Vereecke
Mr Gerard Van Acker, permanent representative of
BVBA Gerard Van Acker
Mr Philippe Haspeslagh, permanent representative of
NV Euro Investment Management
■ the internal financial and accounting control system
■ the rules and procedures to be followed in drawing up the annual accounts;
■ the company’s audit, accounting and financial
reporting processes.
The auditor and the Chief Financial Officer attend the
meetings of the Audit Committee.
In 2002 the Audit Committee met five times under
the chairmanship of Mr Gerard Van Acker.
Remuneration
In 2002 Kinepolis Group NV paid, a total of EUR
315,065 to the non-executive members of the
Board of Directors.
Executive Committee
The Executive Committee of Kinepolis Group NV
consists of:
Mr Joost Bert, Chief Executive Officer
Mr Florent Gijbels, Chief Executive Officer
Mr Gilbert Deley, Chief Operations Officer
Mr Jan Staelens, Chief Financial Officer
The Executive Committee meets weekly under the
chairmanship of the CEO’s and, together with
them, sets day-to-day policy, proposes strategic
options to the Board of Directors and sets specific
policy lines.
In 2002 Kinepolis Group NV paid EUR 203,594 to
the Members of the Executive Committee as a
global compensation.
The Audit Committee advises and assists the Board
of Directors in fulfilling its responsibilities in the
organisation and control of:
ANNUAL
KINEPOLIS
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2002
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CONTENTS
1. Comments on the consolidated accounts
1. Presentation of the consolidated key figures
2. Comments on the consolidated balance sheet
and income statement for 2002
P.37
2. Consolidated financial statements of Kinepolis Group
1. Consolidated balance sheet of Kinepolis Group
2. Consolidated income statement of Kinepolis Group
3. Notes to the consolidated financial statements
P.48
P.50
P.52
3. Auditor's report on the consolidated financial statements
P.67
4. Ordinary financial statements
1. Comments on the ordinary financial statements
2. Ordinary balance sheet of Kinepolis Group
3. Ordinary income statement of Kinepolis Group
4. Appropriation of the result
5. Social balance sheet
P.68
P.70
P.72
P.73
P.83
5. Financial calendar
P.91
KINEPOLIS
®
P.36
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PRESENTATION
OF THE
CONSOLIDATED KEY FIGURES
FINANCIAL YEAR ENDED 31 DECEMBER
(IN EUR MILLION)
TOTAL OPERATING INCOME
EBITDA (1)
EBITDA on turnover
EBITDA excluding Decatron (2)
EBITDA on total operating income
Result after tax (group share)
Cash flow from ordinary activities (3)
Participating interests of third parties (4)
Long-term financial debt (5)
Short-term financial debt
Other liabilities
Balance sheet total
2002
2001
2000
213,47
45,31
21,9%
44,26
21,2%
-5,74
68,12
2,36
154,43
56,91
76,41
358,23
221,49
44,06
20,2%
46,35
19,9%
-20,76
79,36
0,55
166,87
102,80
78,25
427,83
221,74
40,90
19,5%
38,24
18,4%
-68,79
100,59
3,50
114,88
139,58
83,69
442,24
(1) EBITDA (earnings before interest, taxes, depreciation and amortisation) refers to the operating result excluding depreciation and write-downs.
(2) As Decatron creates non-eliminable turnover either by building for or delivering to third parties or for companies in joint ventures (Nîmes 2000) or
through sale and lease-back (Valencia 2001) and there is no operating margin on these activities, the overall margin of the Kinepolis Group is affected.
That is why “Ebitda excluding Decatron” is also mentioned
(3) Equity including the GIMV subordinated bond loan in the amount of EUR 5.95m in 2002, EUR 7.44m in previous years.
(4) Comprises 18.6% of the participating interest held by Deficom Group nv (2001/2000: 32%) held in Kinepoleast nv and 45% of Cinecity Treviso held by
Furlan Cinema Teatri Group.
(5) Excluding GIMV for an amount of EUR 5.95 million in 2002, EUR 7.44 million in 2000 and 2001
Kinepolis group reduced its indebtedness by 22% in 2002. The debts were reduced by EUR 58 million. A significant
proportion of the short-term debt (EUR 34m) was also converted into long-term debt. The EBITDA, operating profit before depreciation, write-downs and provisions, rose by 2.8% as compared with 2001. The net consolidated loss
(group share) of EUR 5.7m was mainly due to an exchange rate loss and the cost of hedging against the Polish Zloty
amounting to EUR 3m. Start-up losses for new complexes, additional provisions and an increased burden of tax in
Belgium and Spain account for the rest of the loss.
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COMMENTS
Page 37
ON THE CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT FOR
2002.
Consolidated balance sheet: Commentary on assets
Formation expenses
Formation expenses fell by EUR 1.7 million mainly due to depreciation during the financial year.
Intangible fixed assets
Intangible assets amounted to EUR 1.56m at the end of 2002. These consisted mainly of goodwill eligible for depreciation held in relation to the Forvm Kinepolis Nîmes cinema complex in France and newly developed software in
connection with the Kineticket platform.
The remainder mainly consists of small licences and concessions held by the various companies in the group.
Positive consolidation differences
This heading includes the positive consolidation differences arising from the initial consolidation on 1 January 1996
and resulting from the takeover of minority interests at the end of 1997 and 1998. The goodwill created after the
takeover of minority interests held by GIMV pending restructuring of the Group was calculated on the basis of the
equity position according to Group valuation rules at the end of 1997, the date that comes closest to the actual
takeover date. A number of positive consolidation differences also arose from the takeover of certain other participating interests.
In 2002 there was a rise in this item by EUR 3.2m, due to a change in the percentage holdings in Polish companies
Kinopoleast (company governed by Dutch law), Kinepolis Poznan and Kinepolis Spzoo.
In line with the Group valuation rules the depreciation period was set at ten years for all positive consolidation differences. This depreciation gives rise to a total cost of EUR 2.5 million. The net book value at the end of the year
was therefore EUR 16.5m.
Tangible fixed assets
Tangible fixed assets fell in 2002 from EUR 320.2m to EUR 260.3m.
Investments during the financial year amounted to EUR 13.8m and mainly related to the new complexes in Granada
(Spain) and Nancy (France) and the installation of the Kineticket platform, plus the completion of the recent complexes (Poznan, Valencia, Pioltello) and a few replacement investments. Disinvestments and decommissioning
amounted to EUR 14.8m and mostly related to sales of land in Warsaw (Poland) and Granada (Spain).
Depreciation of EUR 27.9m was at a similar level to last year. Due to a significant fall in the Polish zloty exchange
rate, the effect of translation differences was EUR -5.3m.
Companies removed from the consolidation scope during the financial year (mainly Pioltello and Pentascoop)
accounted for the remaining difference of EUR 25.6m.
ANNUAL
REPORT
2002
-
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PAG E
38
PRESENTATION
OF THE CONSOLIDATED KEY FIGURES
Financial fixed assets
Enterprises accounted for by the equity method
Last year this item included a sum of EUR 0.73m relating exclusively to the participating interest in the cinema complex at Vlissingen, with the associated Cinécafé. This participating interest was sold during the financial year as part
of a change in strategy.
Other enterprises
This includes some smaller participating interests amounting to EUR 0.05m.
Amounts receivable after 1 year
The amounts receivable after 1 year mainly comprise the long-term component of investment grants to be received
and which the Company received in the past by the French public authorities via Centre National de la
Cinématographie, (C.N.C.) for the “Le Château du Cinéma” project in Lomme, the Max Linder complex in Paris,
Kinépolis St-Julien-lès-Metz, as well as new subsidies for the Forvm Kinépolis complex in Nîmes
These investment grants are included, after deducting deferred taxes, under the equity heading ‘Investment grants’
and released to the income statement at the depreciation rate for the various underlying investments. Actual payment of the investment grants by the C.N.C. is directly linked to the taxes paid on cinema tickets sold.
Stocks and contracts in progress
Stocks
Consolidated stocks can be broken down into those directly related to cinema operations and on the hand the stock
of technical goods for resale which is held:
(IN 000 EUR)
Cinema operations
Raw materials and consumables
Goods for resale, cinema operations
Technical goods for resale
Total
2002
2001
2000
147,31
681,22
773,35
1 601,88
219,44
565,39
678,05
1 462,88
89,76
622,54
2 448,07
3 160,37
Raw materials and consumables consist of maintenance materials and materials for minor repairs held by the various operating companies. Goods for resale associated with cinema operations comprise the limited stocks of drinks
and confectionery held at the various complexes at the year end.
The stock of technical goods for resale which is held by Decatron NV include stocks of spare parts for repairs and
maintenance of sound, projection and information technology equipment and also goods and materials purchased
in connection with the implementation of new projects through Decatron NV. The amount of this last type of stock
fluctuates depending on the number and extent of projects in progress on the balance sheet date. At the end of
2002 the stock of technical goods for resale comprised the projection equipment for the complex at Pioltello, which
was under construction.
Contracts in progress
Contracts in progress relate to the costs of projects at the pre-development stage, which are being carried out by
Decatron for the account of Kinepolis Group. The capitalized costs of future projects are shown under the heading
‘Fixed assets under construction’. In view of the decision by the Board of Directors in mid-2001 to make a temporary pause in the investment programme, this currently consists mainly of costs relating to the Granada and Nancy
projects.
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Amounts receivable within one year
Trade debtors
The following table shows a comparison between trade debtors over the last two financial years, broken down by
type of activity :
(IN 000 EUR)
Cinema operations
Other activities
Total
2002
2001
6 282.96
7 279.10
13 562.06
7 956.81
8 318.05
16 274.86
Debtors from cinema operations relate to invoicing for vouchers, exchange deals, sponsor deals, events and advertising, and also to the hire of commercial premises ("concessions") to third parties outstanding at the year end.
Trade debtors from other activities consist mainly of the outstanding receivables of Decatron NV and also the global group receivables centralized for the Kinepolis Group.
The fall in Cinema operations debtors was mainly due to companies excluded from the consolidation during the
financial year and the writing off of bad debts in France. The fall in other activities was mainly due to the movements in debtors relating to the Group's real estate activities (project development) and overall amounts receivable
by the Kinepolis group.
Other amounts receivable
Other receivables at the year-end comprise the balance of VAT still to be recovered by various companies and any
overpayment of corporation tax to be recovered. The short-term component of investment grants to be received for
Kinépolis Le Château du Cinéma in Lomme, Max Linder in Paris, Kinépolis St-Julien-les-Metz and Forvm Kinépolis
(Nîmes) are also included under this item.
The fall was mainly the result of companies deconsolidated during the financial year and a fall in recoverable VAT
credits. That is because a significant proportion of the recoverable VAT credits at the end of 2001, mainly arising
from the building of new complexes, were received during 2002. Nevertheless there were still some large amounts
receivable at the end of 2002, particularly in Spain, Poland and Italy.
Short-term investments and cash at bank and in hand
The value of the company's own shares held by the Kinepolis Group NV was EUR 0.43 million in all on 31 December
2002. This value takes into account the share price on the closing date.
A cash pooling system ensures that cash shortages in one company are supplemented from temporary surpluses in
others, according to the so-called 'zero balancing system'. As a result there were no short-term investments in foreign group companies on 31 December 2002.
Money from the sale of participating interests was mainly used to reduce debts.
The shares in CinemaxX AG (3m shares or 25%) were fully written off last year and are therefore no longer on the
balance sheet. The sale of these CinemaxX shares is still taking place, although in quite difficult market conditions.
Deferred charges and accrued Income
This item consists mainly of costs of insurance and maintenance agreements relating to future periods and interest
receivable at the year-end.
ANNUAL
REPORT
2002
-
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PAG E
40
PRESENTATION
OF THE CONSOLIDATED KEY FIGURES
Consolidated balance sheet : commentary on liabilities
Of the liabilities on the balance sheet, EUR 62.17 million relates to the consolidated equity of Kinepolis Group, out
of a balance sheet total of EUR 358.23 million.
Equity
The following table gives a view of the composition of the consolidated equity of Kinepolis Group NV and its evolution in 2002:
(IN 000 EUR)
Capital
Share premium account
Consolidated reserves
Result for the year
Consolidation differences
Translation differences
Investment grants
TOTAL
31.12.2001
80 505.32
66 639.88
-93 461.51
+
66 639.88
99 702.51
4 014.99
1 531.52
12 694.07
71 924.26
99 702.28
66 639.88
166 342.39
31.12.2002
47 442.92
5 745.27
956.85
1 627.95
1 422.36
6 241.00
-5 745.27
3 058.14
-96.43
11 271.71
176 094.59
62 172.07
It can be deduced from the table above that the consolidated equity fell by some EUR 9.7m
The loss for the financial year amounting to EUR 5.7m accounts for the largest portion of this.
The write-off of negative consolidation differences on Pentascoop (deconsolidated) and Decatron account for the
EUR 0.9m movement in this item.
The fall in translation differences was mainly due to the fall in the PLN as compared with the EURO.
The investment grants comprise the part not yet included in the result, after deduction of relevant deferred taxation, of investment grants received from the Belgian government for the cinema complex in Hasselt and the investment grants received from the French government (C.N.C.) for the projects ‘Kinepolis le Château du Cinéma’ in
Lomme, Max Linder in Paris, and Kinepolis St.-Julien-les-Metz and Forvm Kinepolis Nîmes. Incorporation in the result
is being carried out via the financial result in accordance with the depreciation rate for the various elements of
underlying investments and at 31 December 2002 it amounted to approximately EUR 1.4 million.
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Provisions for liabilities and charges and deferred taxes
Provisions for liabilities and charges include the provisions made by the individual companies for pensions, major
repair and maintenance works, costs in the context of the future expiry of concession agreements and for disputes.
In 2002 additional provisions were made amounting to EUR 1.4m. The largest provision was made in Poland and
relates to a dispute with contractors in connection with the building of the complex in Poznan.
The provision for deferred taxes amounted to EUR 5.90 million at the end of 2002 and related exclusively to the
future tax effect of the release of the investment grants at C.C.E. Limburg (Kinepolis Hasselt), Kinepolis Le Château
du Cinéma, Max Linder, Kinepolis St.-Julien-lès-Metz and Forvm Kinépolis Nîmes.
Latent tax liabilities fell from EUR 0.76m to EUR 0.65m, mainly due to the lowering of the corporation tax rate in
Belgium, partly offset by rises in these tax liabilities in newer complexes (Braine-l'Alleud, Poznan and Valencia).
Amounts payable after more than 1 year and amounts payable within 1 year
Debts payable after one year
At the end of 2002 the subordinated loans related to the amount of subordinated loans underwritten by GIMV and
payable after more than one year, which was EUR 5.95m.
Total long-term debts excluding the aforementioned subordinated loan amounted to 154.43m at the end of 2002
(EUR 166.87m at the end of 2001). The long-term amounts owed to credit institutions consisted of loans obtained
from various financial institutions in the past to finance the different existing complexes. In the context of a debt
restructuring programme a debt of EUR 34m was converted from short-term to long-term debt during the financial
year. Companies deconsolidated during the financial year, the most important of which was Pioltello (Italy), gave rise
to a fall in long-term debts of EUR 16m.
Debts payable within one year
Financial short-term debts fell by EUR 45.87m to EUR 56.92m. This amount included the share of the subordinated
loan from GIMV (EUR 1.4m) which was scheduled for repayment within one year. Overall reduction in financial debts
therefore amounted to more than EUR 58m.
Trade debts encompass both the amounts due for the supply of goods and services within the context of investments made during the past financial year and current debts to suppliers at the end of the year within the framework of effective operations. Trade creditors were in line with last year, taking into account the companies deconsolidated during the year.
Advances received on contracts in progress fell to EUR 0.14m, mainly as a result of the loss of projects.
Other debts, including debts in relation to taxation, wages and social security fell by EUR 2.14m, mainly due to the
companies excluded from the consolidation during the financial year.
Accrued charges and deferred income
Accrued charges and deferred income consist mainly of vouchers not yet redeemed at the year-end to be carried
forward, and accrued interest charges for the financial year. Interest charges attributable to the financial year made
up the majority of the remainder.
ANNUAL
REPORT
2002
-
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PAG E
42
PRESENTATION
OF THE CONSOLIDATED KEY FIGURES
Consolidated income statement
In 2002 Kinepolis Group succeeded in reducing the consolidated loss (group share) to EUR 5.74m (2001: EUR 20.75m).
This loss is mainly due to an exchange rate loss and the cost of hedging against the Polish zloty amounting to EUR
3m. Start-up losses for new complexes, additional provisions and higher taxes account for the rest of the loss. In comparison with the 2001 financial year it should be pointed out that 2001 was strongly influenced by the write-off of the
participating interest in the German cinema group Cinemaxx AG (see also investments).
Operating results
The table of company results set out below gives an overview of developments during the past 3 years. It should be
noted that 2000 included the results of CinnemaxAG on a proportional basis for 11 months.
(IN 000 EUR)
Operating income
A. Turnover
B. Changes in contracts in progress
C. Fixed assets - own construction capitalized
D. Other operating income
Operating charges
A. Goods for resale
B. Services and other goods
C. Remuneration
D. Depreciation and amounts written off
E. Amounts written off stocks, contracts
in progress and trade debtors
F. Provisions for liabilities and charges
G. Other operating charges
H. Operating costs capitalised as restructuring costs
I. Amortization of positive consolidation differences
Operating profit/loss
(1)
11 months proportional inclusion of CinemaxX 25%
2002
2001
20001
213 474.27
207 176.18
604.39
828.81
4 864.89
221 483.70
218 546.55
(5 665.61)
2 532.97
6 069.80
221 740.81
209 868.10
(938.62)
3 323.48
9 487.85
(202 751.18)
74 096.52
47 372.86
34 755.60
30 137.71
(208 109.12)
89 213.54
44 911.79
32 964.10
27 646.40
(211 819.81)
77 297.29
58 620.92
36 255.94
26 660.09
809.32
1 165.97
11 939.79
289.90
75.37
10 338.34
558.99
134.36
8 673.05
2 473.41
2 669.69
3 619.17
10 723.09
13 374.58
9 921.00
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In order to gain a correct view of the evolution of operating results, they must be considered separately for each activity. In 2001 the turnover still included a significant proportion arising from the group's construction activities. Following
the decision by the Board of Directors in mid-2001 to reduce the pace of investments temporarily, no new complexes
were opened in 2002 and consequently there was virtually no income from this activity. The fall in operating income is
fully accounted for by this. When Decatron, the company that covered these activities, is excluded, operating income
rose by almost 4%.
Recent complexes which are not yet achieving their full capacity are responsible for the largest proportion of the fall
in operating income. Certain additional provisions, mainly in Poland and France, accounted for the rest of the fall.
Operating income
Turnover
(IN 000 EUR)
Cinema operations of the Kinepolis group
Existing cinemas
Non-mature cinemas
Cinema operations for CinemaxX AG
Technical services and project development (2)
Other, including film distribution and production
Total
2002
%
2001
%
2000(1)
%
151.58
43.43
73%
21%
142.75
45.73
65%
21%
2.01
10.16
207.18
1%
5%
22.28
7.80
218.55
10%
4%
134.51
18.12
35.89
10.71
10.66
209.87
64%
9%
17%
5%
5%
(1) 11 months proportional inclusion of CinemaxX 25%
(2) The turnover from project development for 2001 includes the realization of the sale and rent back project in Paterna and for 2000 it includes the realization of the joint venture project in Nîmes.
The fall in turnover from EUR 218.55m to EUR 207.18m was entirely due to the fall in turnover from the provision of
technical services and project development (Decatron). Last year the turnover from a sale and rent back operation
involving the complex in Valencia was also included.
Turnover from cinema operations rose by 3.5% to more than EUR 195m. The increase in turnover from existing complexes is mainly due to the additional turnover from the Thionville and Mulhouse complexes, which were still in the
non-mature group in 2001. As a result the proportion of turnover from mature cinemas rose to 73% (2001: 65%) of
total turnover. It is noticeable that the non-mature cinemas, despite the fact that not a single new complex was
opened in 2002 and despite the aforementioned transition from Thionville and Mulhouse to the existing mature cinemas, achieved virtually the same turnover as in 2001. The proportion of turnover from non-mature cinemas was
therefore unchanged at 21%.
Turnover from other activities also rose.
ANNUAL
REPORT
2002
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PAG E
44
PRESENTATION
OF THE CONSOLIDATED KEY FIGURES
Operation of cinema complexes
Within cinema operations, the turnover was further subdivided as follows:
(in million EUR)
Box Office (Ticket Sales)
Food & Beverage
Screen advertising
Partnerships
Other media sales
2002
%
2001
%
137.79
39.25
8.46
2.55
6.96
195.01
70.6
20.1
4.3
1.3
3.7
131.26
35.76
8.06
2.95
10.45
188.48
69.6
18.9
4.3
1.6
5.6
The breakdown in turnover from cinema operations was comparable with the previous year. Income from Food &
beverage rose and now accounts for more than 20% of total turnover. Income from partnerships and other media
sales (events, exchange agreements etc.) in the cinemas fell slightly. It should be pointed out here, however, that a
proportion of this income is now received by a holding company and is therefore included under "Other income".
The geographical breakdown of the turnover from cinema operations is as follows:
(in million EUR)
Belgium
France
Spain
Italy
Poland
Other (Switzerland and Netherlands)
%
2001
%
94.53 48.5%
41.89 21.5%
33.93 17.4%
14.27 7.3%
6.56 3.4%
3.83
1.9%
195.01
2002
93.76
43.10
31.82
11.43
3.67
4.70
188.48
49.7%
22.9%
16.9%
6.1%
1.9%
2.5%
It is clear from the above table that the proportion from non-mature cinemas is still growing: there were significant
increases in turnover in Spain, Poland and Italy. In the Belgian domestic market the company was able to maintain
its strong leading position with turnover remaining at a similar level. Turnover in France fell slightly, mainly as a
result of the poorer French films on offer. Finally, a welcome rise took place in Switzerland. In 2002 there was no
longer any turnover in the Netherlands due to the sale of the participating interest in Ede in late 2001. Finally it
should be pointed out that the complex in Pioltello was sold in late 2002.
Architectural advice and technical assistance
These activities are carried out by the subsidiaries Decatron NV and Devicos NV, mainly on behalf of the other companies in the group. By analogy with the previous year, the turnover realized on the basis of project development
was eliminated by offsetting against fixed assets – own construction and direct costs within Decatron. Due to the
decision by the Board of Directors in mid-2001 to take a temporary pause in the intensive investment programme
seen in recent years, the construction department was scaled down. Decatron's main activity in 2002 therefore consisted of providing assistance with facility management, projection and sound, food & beverage equipment and IT
support, mainly for the group's own complexes. Nevertheless, third parties are also still benefiting from Decatron's
unique knowledge in this specific area and thus, among other things, the projection and sound equipment for a project in Turnhout was supplied and installed by Decatron in 2002.
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Other activities
Turnover figures include the activities carried out for third parties by a number of associate companies, such as the
distribution of film rights, media sales issued by the Kinepolis Group and film production. Turnover from film distribution fell sharply in 2001 due to a poor supply of films. Since there were no film productions in 2002, no turnover
was generated either. The rise in other activities was therefore entirely attributable to the rise in media sales in the
Kinepolis Group.
Other operating income
The other operating income mainly consists of rental income realized by the various group companies for the rental
of concessions, car parks and advertising space.
Operating costs
Total operating costs amounted to EUR 203m as compared with EUR 208m last year. The sharp fall in purchases of
goods for resale, raw materials and consumables could be explained by the ending of construction activities as
already discussed under turnover. The rise in services and miscellaneous goods, personnel costs, depreciation and
other operating costs was mainly due to the recent complexes (Pioltello, Valencia, Poznan): in comparison with 2001
costs were now in the accounts for a full year, which was not the case last year.
Operation of cinema complex
The main elements of operating costs are purchases of film hire and Food & Beverage and services and miscellaneous goods.
Municipal taxes and copyright charges were paid on box office takings. Film rental charges to the holders of the film
rights also have to be paid on the remainder.
In addition to these specific costs, the operating companies incur liabilities of which the most significant are:
• Purchases for events: depending on the selling prices for catering activities;
• Rental charges: these are limited since the majority of land and buildings are owned. Rent is paid in Brussels,
Metropolis (Antwerp), Max Linder (Paris), Lomme, Valencia and Treviso.
• Property taxes and duties: on all kinds of movable and real estate property;
• Maintenance and decorative repairs;
• Electricity, gas and oil.
Other activities: Kinepolis Film Distribution (KFD) and Kinepolis Film Productions (KFP)
Under other activities, production costs and royalties from Kinepolis Film Distribution should be mentioned in particular. Due to the lower turnover at KFD, these costs were also significantly lower in comparison with last year.
Since KFP did not have any productions, virtually no costs were recorded either.
Depreciation and amounts written off
Depreciation relates mainly to assets used in the operating companies. The opening of new multiplexes in 2000 and
in 2001 (Treviso, Nîmes, Schaffhausen, Ede, Pioltello, Paterna and Poznan) led to a rise in depreciation charges in
recent years. Complexes which became operational during the financial year are not depreciated for a full year. This
largely accounts for the rise in depreciation from EUR 27m in 2001 to EUR 30m in 2002 The remainder of the
increase can be accounted for by additional depreciation due to the cessation of a number of auxiliary activities in
France.
ANNUAL
REPORT
2002
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PAG E
46
PRESENTATION
OF THE CONSOLIDATED KEY FIGURES
Provisions for liabilities and charges
The largest component of this item related to a provision that was made for a dispute in Poland with a number of
contractors concerning the building of the complex in Poznan.
Amortization of goodwill
In accordance with Group valuation rules the depreciation period for all goodwill was fixed at ten years. This resulted
in a depreciation charge for 2002 of EUR 2.47 million. Last year, following a decision by the Board of Directors, an additional special write-down of EUR 1.53m was entered in the accounts.
Financial results
(IN 000 EUR)
2002
2001
5 756.15
350.74
1 484.11
3 921.30
4 153.82
88.79
853.38
3 211.65
Financial charges
A. Debt charges
B. Amortization of positive consolidation differences
C. Amounts written off current assets
D. Other financial charges
(22 390.75)
15 226.86
0
668.60
6 495.29
36 581.49
15 774.55
0
18 064.06
2 742.88
Financial result
(16 634.60)
Financial income
A. Income from financial fixed assets
B. Income from current assets
C. Other financial income
(32 427.67)
The financial loss improved from EUR -32m in 2001 to EUR -16m in 2002. In 2002, however, this figure included a
write-down of EUR 18m on the CinemaxX participating interest.
Interest payable and similar charges fell slightly to EUR 15.2m. Additional interest of EUR 1.6m on loans for the new
complexes opened during 2001 was offset by lower interest charges thanks to the debt reduction that took place
during 2002. The remainder of the difference can be accounted for by the companies excluded from the consolidation during 2001.
The other financial profit and loss items mainly consisted of the effect of exchange losses and costs of hedging
against the Polish zloty amounting to EUR 3m.
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Extraordinary results
(IN 000 EUR)
Extraordinary income
A. Adjustments to depreciation and
write-downs on intangible and tangible assets
B. Write-back of consolidation differences written off
C. Write back of amounts written off financial assets
D. Adjustments to provisions for extraordinary liabilities and charges
E. Capital gain on the disposal of fixed assets
F. Other extraordinary income
Extraordinary charges
A. Extraordinary depreciation of and amounts
written off formation expenses, intangible and tangible assets
B. Extraordinary depreciation on positive consolidation differences
C. Amounts written off financial assets
D. Provision for extraordinary charges
E. Losses on the disposal of fixed assets
F. Other extraordinary expenses
Extraordinary result
2002
20011
4 035.72
5 658.61
280.39
3 592.81
162.52
420.54
1 697.84
3 540.23
(994.42)
(7 264.74)
24.04
2 705.41
1 527.75
261.66
123.46
585.26
100.20
1 532.87
1 398.52
3 041.30
(1 606.13)
The extraordinary income items mainly consisted of capital gains realised on participating interests: Pentascoop
(Belgium), Kinepolis Pioltello (Italy), Kinepolis Zeeland with the subsidiary participating interest in VOF Palais du
cinéma Alhambra and the associated Cinecafé (project in Vlissingen, the Netherlands). Capital gains were also
realised on the sale of land in Warsaw (Poland) and Granada (Spain).
The remainder of the extraordinary income can be accounted for by additional depreciation due to the cessation of
a number of auxiliary activities in France.
Withdrawals from and transfers to deferred taxes and latent taxes
This refers mainly to movements in latent tax liabilities, which are calculated from the differences between the economical and fiscal depreciation of tangible fixed assets held by the various companies.
In 2001 a merger in Belgium gave rise to a write-back of deferred tax liabilities amounting to EUR 2.28m, which largely accounts for the difference with the current financial year.
Taxation
Taxation rose from EUR 4.2m in 2001 to EUR 5.6m in 2002. This rise mainly arises in Belgium (EUR +0.9m) and
Spain (EUR +0.4m).
Discussion of the ordinary accounts at 31 December 2002 and 2001
see below “Ordinary financial statements”.
ANNUAL
REPORT
2002
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PAG E
48
CONSOLIDATED
CONSOLIDATED
FINANCIAL STATEMENTS
BALANCE SHEET OF
ASSETS (IN .000 EUR)
FIXED ASSETS
Formation expenses
Intangible assets
Positive consolidation differences
Tangible fixed assets
A. Land and buildings
B. Plant, machinery and equipment
C. Furniture and vehicles
D. Leasing & similar rights
E. Other tangible assets
F. Assets under construction and advance payments
Financial fixed assets
A. Enterprises accounted for using the equity method
1. Participating interests
2. Amounts receivable
B. Other enterprises
1. Participating interests and shares
2. Amounts receivable and cash guarantees
CURRENT ASSETS
Amounts receivable after 1 year
A. Trade debtors
B. Other amounts receivable
Stocks and contracts in progress
A. Stocks
1. Raw materials and consumables
2. Work in progress
3. Finished goods
4. Goods purchased for resale
5. Real estate property intended for resale
6. Advance payments
B. Contracts in progress
Amounts receivable within one year
A. Trade debtors
B. Other amounts receivable
Investments
A. Own shares
B. Other investments and deposits
Cash at bank and in hand
Deferred charges and accrued income
TOTAL ASSETS
KINEPOLIS GROUP
2002
2001
2000
280 570.83
1 746.65
1 559.98
16 515.50
260 324.89
195 701.84
34 980.34
3 800.94
21 097.16
286.95
4 457.66
423.81
342 400.70
3 402.30
1 913.88
15 797.67
320 178.19
242 638.52
46 148.53
3 933.06
21 841.96
585.74
5 030.38
1 108.66
731.23
731.23
335 992.93
4 159.93
2 480.47
18 747.79
309 273.87
220 572.96
42 965.97
4 798.30
1 223.21
977.69
38 735.74
1 330.87
715.82
715.82
423.81
65.38
358.43
377.44
52.53
324.91
615.05
496.65
118.39
77 655.80
24 205.34
85 426.93
24 654.70
106 251.40
25 226.04
24 205.34
1 716.75
1 601.88
147.31
24 654.70
1 462.88
1 462.88
219.44
25 226.04
4 149.59
3 160.37
89.76
1 454.57
1 243.44
3 070.58
114.87
32 016.72
13 562.06
18 454.66
430.35
430.35
38 139.17
16 274.87
21 864.30
519.07
519.07
12 732.42
6 554.22
14 491.63
6 159.48
358 226.63
989.24
36 842.33
16 731.97
20 110.36
22 598.99
576.55
22 022.41
12 140.36
5 294.09
427 827.63 442 244.30
Chiffre Kine GB
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Page 49
LIABILITIES (IN .000 EUR)
2002
2001
2000
62 172.07
47 442.92
47 442.92
71 924.26
80 505.32
80 505.32
66 639.88
93 152.30
80 505.33
80 505.33
66 639.88
495.72
3 058.14
(93 461.51)
4 014.99
(71 707.99)
4 003.11
(96.43)
11 271.71
1 531.52
12 694.07
243.93
13 468.13
2 361.11
2 361.11
550.62
550.62
3 495.55
3 495.55
10 271.97
3 719.94
129.17
9 729.52
2 316.56
12 425.56
1 786.32
20.82
62.63
3 528.14
6 552.03
211.79
2 104.77
7 412.96
211.80
1 553.70
10 639.24
CREDITORS
Amounts payable after one year
A. Financial debts
1. Subordinated loans
2. Unsubordinated loans
3. Leasing and other similar obligations
4. Credit institutions
5. Other loans
Amounts payable within one year
A. Current portion of amounts payable within one year
B. Financial debts
1. Credit institutions
2. Other loans
C . Trade debt
1. Suppliers
D. Advances received on contracts in progress
E. Taxes, remuneration and social security
1. Taxes
2. Remuneration and social security
F. Other amounts payable
Accrued charges and deferred income
283 421.49
160 383.15
160 383.15
5 949.45
345 623.23
174 304.04
174 304.04
7 436.81
333 170.83
122 317.61
122 317.61
7 833.44
19 247.72
134 725.85
460.13
108 495.85
26 669.33
30 245.24
29 915.35
329.89
37 059.37
37 059.37
144.13
11 823.72
6 142.87
5 680.85
2 554.06
14 542.49
22 734.16
135 998.46
8 134.61
158 168.99
18 016.76
84 783.24
84 776.89
6.35
38 309.64
38 309.64
548.31
13 141.54
7 306.99
5 834.55
3 369.50
13 150.20
640.43
105 972.42
7 871.31
203 481.76
13 430.42
126 152.17
125 997.21
154.93
38 672.38
38 672.38
10 140.92
11 623.01
9 513.88
2 109.13
3 462.87
7 371.49
TOTAL LIABILITIES
358 226.63
CAPITAL AND RESERVES
Capital
A. Issued capital
Share premium account
Revaluation surpluses
Consolidated reserves
Consolidation differences
Imputed positive consolidation differences (-)
Translation differences
Investment grants
MINORITY INTERESTS
Minority interests
PROVISIONS, DEFERRED TAX AND
LATENT TAX LIABILITIES
A. Provisions for liabilities and charges
1. Pensions and similar obligations
2. Taxation
3. Major repairs and maintenance
4. Other liabilities and charges
B. Deferred tax and latent tax
ANNUAL
427 827.63 442 244.30
REPORT
2002
-
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PAG E
50
CONSOLIDATED INCOME
KINEPOLIS GROUP
STATEMENT OF
HEADINGS (IN .000 EUR)
2002
2001
2000
213 474.27
207 176.18
221 483.70
218 546.55
221 740.81
209 868.10
604.39
828.81
4 864.89
(5 665.61)
2 532.97
6 069.79
(938.62)
3 323.48
9 487.85
Operating charges
(202 751.18)
A. Raw materials, consumables and goods for resale
74 096.52
1. Purchases
74 405.31
2. Increase/decrease in stocks
(308.79)
B. Services and other goods
47 372.86
C. Remuneration, social security costs and pensions
34 755.60
D. Depreciation and amounts written off
intangible and tangible fixed assets
30 137.71
E. Amounts written off stocks, orders in
progress and trade debtors.
809.31
F. Increase/decrease in provisions for liabilities and charges
1 165.97
G. Provisions for liabilities and charges
11 939.79
H. Operating charges capitalized as restructuring costs
I. Amortization of positive consolidation differences
2 473.41
(208 109.12)
89 213.54
87 379.09
1 834.45
44 911.78
32 964.10
211 819.81
77 297.29
79 041.20
(1 743.91)
58 620.92
36 255.94
27 646.40
26 660.08
289.90
75.37
10 338.34
558.98
134.38
8 673.05
2 669.69
3 619.17
10 723.09
13 374.58
9 921.00
Operating income
A. Turnover
B. Increase/decrease in stocks of finished goods,
works and contracts in progress
C. Fixed assets – own construction
D. Other operating income
OPERATING PROFIT/LOSS
Financial
A.
B.
C.
income
Income from financial fixed assets
Income from current assets
Other financial income
5 756.15
350.74
1 484.11
3 921.30
4 153.82
88.79
853.38
3 211.65
6 928.33
761.70
1 454.04
4 712.56
Financial
A.
B.
C.
D.
charges
(22 390.75)
Interests and other debt charges
15 226.85
Amounts written off positive consolidation differences
Increase/decrease in amounts written off current assets
668.60
Other financial charges
6 495.29
(36 581.49)
15 774.55
18 064.06
2 742.88
14 485.83
12 547.70
139.81
868.49
929.80
(19 053.09)
2 363.49
Result from ordinary activities before tax
(5 911.50)
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Page 51
HEADINGS (IN .000 EUR)
2002
2001
2000
Extraordinary income
4 035.72
A. Adjustments to depreciation of and to other amounts
written off intangible and tangible fixed assets
B. Adjustments to amounts written off consolidation differences 280.39
C. Adjustments to amounts written off financial fixed assets
D. Adjustments to provisions
for extraordinary liabilities and charges
E. Gain on disposal of fixed assets
3 592.81
F. Other extraordinary income
162.52
5 658.61
13 634.22
420.54
1 697.84
3 540.23
5 205.09
2 532.60
5 252.00
Extraordinary charges
(994.42)
A. Extraordinary depreciation of and amounts
written off formation expenses, intangible and tangible fixed assets
B. Extraordinary amounts written off positive
consolidation differences
24.05
C. Amounts written off financial fixed assets
D. Provisions for extraordinary liabilities and charges
261.66
E. Loss on disposal of fixed assets
123.46
F. Other extraordinary charges
585.26
G. Extraordinary charges capitalized as restructuring costs
H. Negative consolidation differences
(7 264.74)
81 272.16
2 705.41
1 481.63
1 527.75
69 191.44
100.20
1 532.87
1 398.51
17.90
10 581.21
644.52
Net profit for the financial year before tax
Transfer from deferred tax and latent tax
Transfer to deferred tax and latent tax
(2 870.20)
1 017.13
(412.78)
(20 659.22)
3 347.12
(1 032.31)
(65 274.46)
1 453.65
397.30
Income taxes
A. Income taxes
B. Adjustment of income taxes
and write-back of tax provisions
(5 573.84)
(5 573.84)
(4 186.89)
(4 190.94)
(5 548.30)
(5 561.54)
4.05
13.24
Consolidated result
Share in the results of the enterprises
accounted for using the equity method:
Consolidated result
(7 839.68)
(22 531.30)
(69 766.41)
69.75
(7 769.94)
70.32
(22 460.98)
74.57
(69 691.82)
(2 024.66)
(5 745.27)
(1 706.51)
(20 754.47)
(900.00)
(68 791.82)
A. Share of minority interests
B. Share of the group
ANNUAL
REPORT
2002
-
5 1
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PAG E
52
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
I.A. Consolidation criteria
All Group and associated companies are included in the Kinepolis Group consolidation
according to the following consolidation methods :
-
Full consolidation : this method is applied to those companies where Kinepolis Group NV holds more than half
the shares or over which it exercises de facto control.
Proportional consolidation : this method is applied to those companies, which are controlled by the Kinepolis
Group together with other shareholders.
Equity method : this method is applied to those companies where the Kinepolis Group has a significant influence in guiding policy.
I.B. Changes to the scope of consolidation during 2001
1. Enterprises included in the scope of consolidation during the financial year
Nil
2. Changes in the holding percentage
The following dissolutions/liquidations took place in 2002 :
Châteaulom sa (France)
Kinepolis Avion SA (France)
Kinepolis Noisy le Grand SA (France)
Kinepolis Rennes SA (France)
Decatron Consulting (Spain)
The following merger took place in late 2002:
Kinepolis Warszawa merged with Kinepolis Spzoo.
Changes in the participation percentage during 2002:
In late 2002, 13.36% of the shares in Kinepoleast, the holding company which owns the Polish companies (Kinepolis
Poznan and Kinepolis Spzoo) were taken over from Deficom group nv. As a result the percentage of the participating interest in these companies increased from 68% to 81.36%.
Participating interests sold during the financial year:
Kinepolis Zeeland bv, with its subsidiary participating interests VOF Palais du Cinéma Alhambra (Vlissingen) and the
associated Cinecafé.
Pentascoop nv
Kinepolis Pioltello srl
3. Name changes
Nihil
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II. Scope of consolidation
II.A. List of fully consolidated subsidiaries
Kinepolis Mega N.V.* (1)
Regionale Uitgeversmaatschappij (R.U.M.) N.V.
in liquidation**
Decatron N.V
Majestiek International S.A
European Mega Cinema (EMC) S.A.
France Méga Cinéma (FMC) S.A.
Kinepolis Saint-Julien-Lès-Metz S.A. *
France Méga Cinéma Immo (FMCI) SAS
Kinepolis Le Château du Cinéma S.A. *
Kinepolis Mulhouse S.A.
C.C.I.& H. N.V.
Immo den Ouden Bampt N.V.
Bruvision N.V.
Kinepolis Film Distribution N.V. (KFD)
C.C.E. Liège S.A. *(2)
Immo Roc S.A.
Kinepolis España S.A. *
Kinepolis Film Productions B.V.B.A. (KFP)
Kinepolis Multi N.V. *(3)
Devicos NV in liquidation **
Frontline BVBA in liquidation **
Kinepolis Thionville S.A. *
Kinepolis Immo Thionville S.A.
Eden Panorama S.A. *
Kinepolis Nancy SAS*
Kinepolis Prospection SAS*
Kinepoleast BV
Kinepolis Holding BV
Kinepolis Poznan Sp.z.o.o.*
Kinepolis Sp.z.o.o.
Megatix NV Brussels
Kine-Invest SA
Kinepolis Schweiz AG*
Kinepolis Madrid SA*
Kinepolis Paterna SA*
Kinepolis Granada SA*
Kinepolis Jerez SA*
Cinecity S.p.a.*
Imagibraine SA*
Imagisoft SA
Kinepolis Nacka
Brussels
B
BE 430.277.746
100.00%
Kortrijk
Brussels
Luxembourg
Luxembourg
Metz
Metz
Metz
Lomme
Mulhouse
Herk-de-Stad
Herk-de-Stad
Brussels
Brussels
Liège
Herk-de-Stad
Madrid
Kortrijk
Kortrijk
Brussels
Antwerp
Thionville
Thionville
Paris
Lomme
Lomme
Amstelveen
Amstelveen
Poznan
Warschau
B
B
LUX
LUX
FR
FR
FR
FR
FR
B
B
B
B
B
B
S
B
B
B
B
FR
FR
FR
FR
FR
NL
NL
PL
PL
B
S
CH
S
S
S
S
I
B
B
SE
BE 421.962.371
BE 424.519.114
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
81.36%
100.00%
81.36%
81.36%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
55.00%
100.00%
100.00%
100.00%
Madrid
Schaffhausen
Madrid
Madrid
Madrid
Madrid
Treviso
Braine l’Alleud
Braine l’Alleud
Stockholm
LU 19942205972
FR 20399716083
FR 43398364331
FR 51398364331
FR 60387674484
FR 18404141384
BE 455.740.543
BE 455.729.358
BE 418.314.676
BE 445.372.530
BE 459.469.796
BE 459.466.234
ESA 814.87027
BE 459.997.061
BE 434.861.589
BE 444.192.197
BE 451.171.051
FR 09419251459
FR 10419162672
FR 02340483221
FR 00428192819
FR 45428192058
NL 807225605B01
NL 807760420B01
NIP 5252129575
NIP 5252184717
BE 462.123.341
ESA 82489659
CH 2903013216-5
ESA 828.149.06
ESA 828.149.14
ESA 828.149.55
ESA 828.149.22
03138230275
BE 462.688.911
BE 464.594.861
556 589 2295
* Companies in which a cinema operation is included or planned.
** Liquidations, fully consolidated
(1) Kinepolis Mega NV comprises the activities of Kinepolis NV and Metropolis NV.
(2) C. C. E. Liège SA : Opéra Liège SA Palace Liége SA and Group Claeys R. SA
(3) Kinepolis Multi NV comprises the activities of Leuven, Hoog-Kortrijk, Ghent and C. C. E. Limburg NV.
ANNUAL
REPORT
2002
-
5 3
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PAG E
54
II.B. List of the shared subsidiaries included via proportional consolidation
Forvm Kinepolis SA
RMB Entertainment N.V.
Nîmes
Brussels
FR
B
FR 864.210.385.48
BE 464.742.935
50.00%
50.00%
III. List of unconsolidated subsidiaries and associated companies for which the
equity method is not applied.
Kinepolis Ceszka
Praha
CZ
-
100.00%
The reason for non-consolidation of these companies is their minimal impact on consolidation. Inclusion would
also involve disproportionate costs.
CinemaxX AG
Germany
The reason for non-consolidation of these companies,
is that these shares are subject to a future sale.
DE
-
25.00%
V. List of other companies in which the Group holds a share of at least 10%
Eurocasino N.V.
Brussels
B
BE 467.730.238
19.00%
VI.A. Accounting and valuation rules applied in preparing the consolidated financial statements
A. General
The accounting principles and valuation rules used in preparing the consolidated accounts comply with the Belgian
accountancy legislation and the provisions of the Royal Decree of 6 March 1990. The consolidated financial statements were prepared on 31 December, the balance sheet date of the parent company Kinepolis Group NV and all
consolidated companies. The consolidated financial statements are prepared after the distribution of profits by
Kinepolis Group NV. The financial statements of the other consolidated companies are included before appropriation of profits.
The valuation rules used for the consolidation are those of the parent company Kinepolis Group NV, supplemented
by certain rules specific to the consolidation. Where there are significant differences, recalculations are always carried out for companies included by the full and proportional consolidation methods. This has only given rise to
adjustments in connection with the depreciation of tangible fixed assets. The other valuation rules are virtually the
same for the entire Kinepolis Group and the remaining departures have no material influence on the consolidated
position as indicated below.
After merging the balance sheets and income statements, as recalculated in accordance with the group valuation
rules, the intercompany balances and transactions and the associated results are eliminated. By analogy with last
financial year, the turnover made by Decatron NV was offset against the fixed assets produced and the immediate
costs within Decatron. This concerns invoices issued for specific Kinepolis projects undertaken by Decatron.
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B. Valuation Rules
Formation expenses and intangible fixed assets
Formation expenses and the costs of increases in capital were valued at cost and depreciated at 20% per year. Loan
costs, if any, are depreciated over the term of the loan. Intangible fixed assets are included on the balance sheet at
cost. Annual depreciation is applied by the straight-line method at 20% per year starting from the first year.
Consolidation differences
The consolidation differences represent the divergence between the purchase cost on the one hand and the corresponding share of net equity on the other. Insofar as these differences originate in the over- or undervaluation of
certain asset or liability items, they are appropriately allocated. The remaining difference is included in the consolidated accounts under "Consolidation differences" in the reported assets or liabilities depending on whether the
price is greater or less than the share in equity (recalculated if necessary).
When drafting of Kinepolis Group NV’s first consolidated financial statements as at 31 December 1996, the opportunity was taken to calculate the initial goodwill from the starting date of the financial year to which the first consolidated financial year relates, in this case 1 January 1996 (art. 50 of the Royal Decree of 6 March 1990).
Goodwill is normally amortized on a straight-line basis over a period of 10 years, but the period actually adopted
depends on an individual assessment by the Board of Directors in relation to the anticipated economic useful life.
Additional or exceptional amortization is applied to goodwill when, as a result of changes in economic circumstances, the original values can no longer be justifiably retained on the consolidated balance sheet. Negative consolidation differences remain unchanged up to the point when the participating interest concerned is sold, if at all.
Tangible fixed assets
Tangible fixed assets are valued at cost including acquisition expenses or at contributed value less cumulative
depreciation plus the respective capitalized interest, where this relates to the period before they became operational. Straight-line depreciation is applied for consolidation purposes on the basis of the anticipated economic useful life of the assets concerned, without taking account of any residual value of these assets.
Car parks
Buildings
Furnishings
Computers
Plant and machinery
Furniture and vehicles
3.33 %
5%
6.67 to 20 %
33 %
10 to 20 %
10 to 33 %
Investments in a completely new complex are depreciated pro rata from the month in which they become ready for
use. Other investments are depreciated for the full year, from the year of acquisition.
Expenditure on extensions, major renovations and improvements is capitalized. Expenditure on repairs, maintenance and replacements that does not materially extend the economic life of the assets is recorded as costs.
Financial Fixed Assets
The book value of participating interests in companies to which the equity method is applied is adjusted to the proportional share of the net equity of these companies, determined according to the consolidation rules.
The participating interests mentioned under the heading ‘Other companies’ are valued at purchase cost after applying a write-down, where applicable, where the reduction in value is permanent.
ANNUAL
REPORT
2002
-
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PAG E
56
Stocks
Stocks are valued at cost or at market value (realizable value) if lower. The purchase cost is determined by the FIFO
method.
Contracts in progress are valued at production price by the ‘completed contract method’.
Receivables and debts
Receivables and debts are valued on a nominal value basis. Provisions are made for receivables that are wholly or
partly uncertain or doubtful.
Short-term investments and cash in hand and at bank
Fixed-interest securities, shares and units are valued at purchase cost, including additional charges, or at their market value if it is lower.
Deferred charges and accrued income
These accounts are recorded and valued at purchase cost and included in the balance sheet for the component
which is carried forward to next year.
Consolidated reserves
Group reserves include the reserves and transferred results of the consolidated company, plus the Group’s share in
the results of the other fully and proportionally consolidated companies and companies to which the equity method
has been applied, after deducting any distributions.
Translation differences
For financial statements of subsidiaries expressed in a currency other than EUR, all items on the balance sheet are
converted at the closing rate and those on the income statement at the average rate. Capital and reserves are
retained at their historic value in EUR. The difference that therefore arises in relation to the closing rate is transferred to the translation differences account. The difference between the closing rate and the average rate for the
results is also transferred to this account.
Provisions for liabilities and charges
On the basis of a cautious estimate, the Board of Directors decides which provisions should be made to cover the
cost of major repairs and extensive maintenance and any other liabilities and charges that are probable or certain
on the balance sheet date, but whose extent is not yet precisely known.
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Deferred taxes and latent tax
Deferred taxes are calculated on the temporary differences between the fiscal result and the result calculated
according to Group rules, at the applicable rates for the companies concerned. This provision is made by the ‘full
provision’ method and is revised each year to take into account any movement in the taxable base and any changes
in legislation. No latent tax assets are included in the Kinepolis Group’s consolidated accounts. Any latent tax assets
in the company accounts of foreign or other subsidiaries are reversed to the extent that they exceed tax liabilities.
The provision for deferred taxes on capital gains achieved and investment grants is fully retained as entered on the
company financial statements.
Conversion of foreign currency
Receivables and debts expressed in foreign currency are converted at the end of the financial year at the closing
rate. The resulting translation differences are charged to the income statement if the calculation per currency gives
rise to a negative difference and are included under accrued charges and deferred income if the calculation for that
currency gives rise to a positive difference.
Derivative financial products
To date the Group has not used derivative financial investments. No transactions of a speculative nature have been
undertaken.
C. Change in the valuation rules
There has been no change in the valuation rules at the consolidated level as compared with last year.
VI.B. Deferred taxes and liabilities (in .000 EUR)
Breakdown of liabilities item XI B.
Deferred taxes (Deferred taxes (in accordance with Article 35 of the Royal Decree
of 8 October 1976, as introduced by the Royal Decree of 30 December 1991)
Tax liabilities (in accordance with Article 40 of the Royal Decree of 6 March 1990)
ANNUAL
REPORT
6 552.03
5 899.57
652.46
2002
-
5 7
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PAG E
58
VII. Statement of formation expenses (in .000 EUR)
Net carrying value at the end of the preceding period
Movements for the period:
-new expenses for the period
-other changes
-amortisation
-translation differences
3 402.30
143.29
(1 558.43)
(15.01)
(195.49)
Net carrying value at the end of the period
of which:
-incorporation and capital increase expenses,
loan issue expenses and other formation expenses
1 746.65
1 746.65
VIII. Statement of intangible fixed assets (in 000 EUR)
A. Acquisition cost
-At the end of the preceding period
Movements during the period:
-acquisitions including fixed assets, own construction
-sales and disposals
-transfers from one heading to another
-translation differences
-other movements
At end of the period
C. Depreciation and amounts written off
At the end of the preceding period
Movements during the period:
-recorded
-acquired from third parties
-written off after sales and disposals
-transfers from one heading to another
-translation differences
-other changes
At the end of the period
D. Net book value at the end of the period
CONCESSIONS, PATENTS, LICENCES, ETC.
5 941.37
601.12
(338.72)
201.97
(11.83)
(211.90)
6 182.02
4 027.50
649.26
(10.20)
151.59
4.81
(200.91)
4 622.04
1 559.98
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IX. Statement of tangible fixed assets (in .000 EUR)
A. Acquisition cost
At the end of the preceding period
Movements during the period :
- acquisitions including fixed assets - own construction
- transfers and withdrawals from service
- transfers from one heading to another
- translation differences
- other changes
At the end of the period
C. Depreciation and amounts written down
At the end of the preceding period
Movements during the period:
- recorded
- cancelled following sales and disposals
- transferred from one heading to another
- translation differences
- other changes
At the end of the period
D. Net book value at the end of the period
LAND AND
BUILDINGS
PLANT ,
MACHINERY
AND EQUIPMENT
325 674.07
100 395.83
4 091.43
(9 799.08)
(3 936.68)
(2 760.83)
(24 015.21)
289 253.70
3 868.72
(2 226.07)
(4 161.51)
(669.54)
(3 158.34)
94 049.09
83 035.55
54 247.30
14 332.06
(1 915.54)
2 065.54
(76.68)
(3 889.07)
93 551.86
8 674.14
(102.22)
(1 943.63)
(47.20)
(1 759.64)
59 068.75
195 701.84
34 980.34
ANNUAL
REPORT
2002
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PAG E
60
FURNITURE AND
VEHICLES
LEASING AND
SIMILAR RIGHTS
9 940.40
26 241.85
154.90
(73.04)
2 327.69
(121.60)
(1 339.08)
10 889.27
264.48
(16.58)
4 224.36
(1 635.36)
(133.87)
28 944.88
6 007.34
4 399.88
1 250.07
(49.98)
695.47
(26.28)
(788.29)
7 088.33
2 452.87
(12.82)
1 211.25
(69.60)
(133.86)
7 847.72
3 800.94
21 097.16
OTHER TANGIBLE
FIXED ASSETS
ASSETS IN PROGRESS
AND PREPAYMENTS
A. Acquisition cost
At the end of the preceding period
Movements during the period:
- acquisitions including fixed assets - own construction
- sales and disposals
- transfers from one heading to another
- translation differences
- other movements
At the end of the period
C. Depreciation and amounts written off
At the end of the preceding period
Movements during the period:
- recorded
- cancelled following sales and disposals
- transferred from one heading to another
- translation differences
- other movements
At the end of the period
D. Net book value at the end of the period
A. Acquisition cost
At the end of the preceding period
Movements during the period:
- acquisitions including fixed assets - own construction
- sales and disposals
- transfers from one heading to another
- translation differences
- other movements
At the end of the period
C. Depreciation and amounts written off
At the end of the preceding period
Movements during the period:
- recorded
- cancelled following sales and disposals
- transfers from one heading to another
- translation differences
- other movements
At the end of the period
D. Net book value at the end of the period
5 302.01
5 030.38
657.97
(159.97)
(482.68)
4 742.94
(4 748.86)
(226.21)
(340.58)
(38.25)
5 279.08
4 457.67
4 716.26
1 190.89
(138.98)
(767.07)
(8.97)
4 992.13
286.95
4 457.67
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Page 61
X. Statement of financial fixed assets (in .000 EUR)
ENTERPRISES ACCOUNTED FOR
USING THE EQUITY METHOD
1. Participating interests
A. Acquisition cost
At the end of the preceding period
Movements during the period:
- acquisitions
- sales and disposals
- transfers from one heading to another
- translation differences
- at the end of the period
- share of result for the financial year
At the end of the period
OTHER ENTERPRISES
731.23
52.53
12.88
(731.23)
(0.03)
65.38
2. Amounts receivable
Net book value at the end of the preceding period
Movements during the period:
- additions
- reimbursements
- translation differences
- other
At the end of the period
324.91
48.25
(14.73)
358.43
XI. Statement of consolidated reserves (in .000 EUR)
Consolidated reserves at the end of the preceding period
Movements during the period:
- Group share in consolidated profit
- Write-down of revaluation surplus for Pentascoop building
Consolidated reserves at the end of the period
ANNUAL
(93 461.51)
(5 745.27)
99 702.50
495.72
REPORT
2002
-
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PAG E
62
XII. Statement of consolidation differences and differences after application of the
equity method (in .000 EUR)
CONSOLIDATION DIFFERENCES
POSITIVE
NEGATIVE
A. Consolidation differences in fully and proportionally consolidated companies
Net book value at the end of the preceding period
15 797.67
Movements during the period:
- rise in percentage of participating interest
3 215.29
- fall in percentage of participating interest
- amortisation
(2 497.46)
- other changes
Net book value at the end of the period
16 515.50
B. Differences resulting from the application of the equity method
- net book value at the end of the preceding period
- movements during the period
Net carrying value at the end of the period
3 907.23
(676.45)
(280.39)
8.46
2 958.85
–
107.75
(8.46)
99.29
–
XIII. Statement of Amounts Payable (in .000 EUR)
A. Breakdown of amounts originally payable after one year, by residual term
DEBTS WITH A RESIDUAL TERM OF
MAXIMUM ONE YEAR
MORE THAN ONE
MORE THAN
YEAR BUT
FIVE YEARS
MAXIMUM FIVE YEARS
Financial debts
1. subordinated loans
2. unsubordinated loans
3. leasing and other similar obligations
4. credit institutions
5. other loans
Total
1 487.36
5 949.44
2 550.43
22 589.04
42.50
26 669.33
18 254.10
84 933.85
190.82
109 328.21
993.62
49 792.00
269.31
51 054.93
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Page 63
XIV. Results from the period and the preceding period (in .000 EUR)
A.2 Aggregate turnover of the group in Belgium
(total sales achieved by the group in Belgium)
2002
2001
106 466.60
126 347.53
B. Average number of persons employed, and personnel charges in thousands of Euro
(total sales achieved by the group in Belgium)
B.1. Average number of persons employed
- Blue-collar workers
- White-collar employees
- Manager
- Other
Total
B.2. Personnel charges
- Remuneration and social charges
B.3. Average number of persons
- Employed in Belgium by enterprises of the Group
2002
2001
875
464
28
865
485
26
1 367
1 376
34 755.60
32 436.42
710
692
ANNUAL
REPORT
2002
-
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PAG E
64
XV. Rights and obligations not reflected in the balance sheet (in .000 EUR)
2002
A.2 Amounts of real guarantees, given or irrevocably promised by the enterprises included in
the consolidation as collateral security to secure liabilities and commitments of:
consolidated companies
A.5 Other rights and commitments:
Put option in favour of Furlan Cinema e Teatri on all the shares in Cinecity S.p.a. or at least 18% of these
shares, to be exercised between June 2003 and June 2007
Put option in favour of Deficom group NV on 18.63% of the shares in Kinepoleast bv for a sum of
EUR 5,535,000, to be exercised between 20.12.03 and 31.12.03
Kinepolis has an obligation to purchase a plot of land at Nancy (France).
Kinepolis has a number of IRS (Interest Rate Swap) contracts outstanding in a total amount of
EUR 37,184,028, on which it pays interest at a fixed rate and receives interest at a floating rate.
Kinepolis has entered into a hedge contract for PLN to cover debts in Poland incurred in EUR.
To do so PLN have been sold to obtain EUR worth a total of 6,555,457 EUR
XVII. Financial relationships with directors of the consolidating company
(parent company) (in .000 EUR) )
2002
A. Total amount of remuneration granted in respect of their work for the consolidating company,
its subsidiaries and its associated enterprises, including the amounts in respect of retirement
pensions granted to former directors or managers
B. Total amount of advances and loans granted by the consolidating company,
by a subsidiary or by an associated enterprise.
1 130
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Page 65
Cash flow statement (in .000 EUR)
OPERATING ACTIVITIES
Operating profit
Depreciation and amounts written off fixed assets
Amortisation of positive consolidation differences
Amounts written off stocks and trade debtors
Provisions for liabilities and charges
Extraordinary charges and income
Gross self-financing margin
Taxes and result of the year
Changes in operating capital
Net cash flow from operating activities
INVESTMENTS
Net investments / disposals (positive)
Changes in debts as a result of investment
Investment grants received
Net cash flow from investments
FINANCIAL INVESTMENTS
Financial investments
Income from financial fixed assets
Interest on current assets
Net cash flow from financial investments
FINANCING ACTIVITIES
Capital increase
Financing through long-term debt
Current financial liabilities
Interest charged on financing
Other financial charges
Dividends paid to third parties
Net cash flow from financing activities
NET INCREASE IN CASH FLOW
(excl. cancellation of shares in CinemaxX AG and own shares)
2002
2001
2000
10 723.09
30 137.71
2 473.41
809.32
1 165.97
3 046.61
48 356.11
(5 573.84)
37 474.61
80 256.88
13 374.58
27 646.40
2 669.69
289.90
75.37
2 306.69
46 362.63
(4 186.89)
5 410.32
47 586.07
9 920.00
26 660.08
3 619.17
558.98
134.38
5 307.65
46 201.25
(5 548.30)
(7 539.04)
33 113.91
803.20
(7 151.92)
(6 348.72)
(43 771.85)
(6 612.14)
774.06
(49 609.93)
(98 071.74)
(1 086.96)
1 850.77
(97 307.93)
684.83
350.74
1 484.11
2 519.68
293.08
88.79
853.38
1 235.28
(18 943.18)
761.70
1 454.04
(16 727.43)
(13 920.89)
(45 885.44)
(15 226.85)
(2 573.99)
51 986.44
(36 782.57)
(15 774.55)
(305.29)
40 573.55
62 003.65
(12 547.70)
62.87
(77 607.17)
(875.98)
89 966.63
(1 179.33)
(1 664.59)
9 045.19
REPORT
2002
ANNUAL
-
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Page 66
PAG I N A
66
AVAILABLE FUNDS
Beginning of the year
Short-term investments
Cash at bank and in hand
Total available funds at the beginning of the year
Year end
Short-term investments
Shares in CinemaxX AG
Cash at bank and in hand
Total available funds at the end of the year
2002
2001
2000
519.07
14 491.63
15 010.70
22 598.98
12 140.37
34 739.35
2 252.19
5 441.98
7 694.17
430.35
519.07
12 732.42
13 162.77
14 491.63
15 010.70
4 599.00
18 000.00
12 140.36
34 739.35
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Page 67
AUDITOR’S
REPORT ON THE CONSOLIDATED
FINANCIAL STATEMENTS
Statutory Auditor's report on the consolidated accounts of the société anonyme/naamloze vennootschap
(public limited company) Kinepolis Group presented to the to the General Meeting of Shareholders.
Consolidated annual accounts for the year ended on 31 December 2002
In accordance with legal and statutory requirements, we are pleased to report to you on the audit work that was
entrusted to us.
We have audited the consolidated financial statements for the year ended December 31, 2002 with a balance sheet
total of EUR 358.227.(000) and a share of the group in the loss for the year of EUR 5.745.(000). These consolidated financial statements have been prepared under the responsibility of the Board of Directors of the Company. In
addition we have reviewed the directors’ report.
Unqualified audit opinion on the consolidated financial statements
Our audit was performed in accordance with the standards of the Institut des Reviseurs d'Entreprises-Instituut der
Bedrijfsrevisoren. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free of material misstatement, taking into account the
Belgian legal and regulatory requirements relating to the consolidated financial statements.
In accordance with these standards we have considered the administrative and accounting organisation of the
group as well as the system of internal control. The group’s management have provided us with all explanations
and information, which we required for our audit. We have examined on a test basis, the evidence supporting the
amounts included in the consolidated financial statements. We have assessed the accounting policies used, the
basis for consolidation and the significant accounting estimates made by the Company and the overall presentation
of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements of Kinepolis Group for the year ended December 31, 2002 present fairly the financial position of the group and the consolidated results of its operations, in conformity with the
prevailing legal and regulatory requirements, and the disclosures made in the notes to the consolidated financial
statements are adequate.
Additional certification
As required by generally accepted auditing standards the following additional certification is provided. This assertion does not alter our audit opinion on the consolidated financial statements.
- The consolidated directors’ report contains the information required by law and is in accordance with the
consolidated financial statements.
Antwerp, 30 April 2003
Klynveld Peat Marwick Goerdeler
Company Auditors, Statutory Auditors
represented by
Ludo Ruysen
Company Auditor
ANNUAL
REPORT
2002
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68
ORDINARY
COMMENTS
FINANCIAL STATEMENTS
ON THE ORDINARY FINANCIAL STATEMENTS
Comments on the ordinary annual accounts of the Kinepolis Group NV
The Kinepolis Group’s shareholders’ equity amounted to EUR 55.49 million on 31 December 2002 compared with
EUR 54.96 million at the end of 2001. This increase of EUR 0.53 million is primarily due to the profit for the financial year partly neutralised by the implemented capital reduction amounting to EUR 2,478,935.25. The company’s
balance sheet total fell to EUR 213,029,523 compared with EUR 222,002,183 in 2001. On the assets side of the balance sheet, the fall is almost totally ascribable to a reduction in the other debtors item. On the liabilities side, this
fall mainly relates to a reduction in debts.
1. ORDINARY
BALANCE SHEET: DISCUSSION OF THE MOST IMPORTANT ASSETS
1.1. Formation expenses
The change in the formation expenses is explained by the write-off of costs relating to the stock exchange fluctuations (IPO and SPO), mainly costs for drawing up the prospectus, fees for external advisers, the audiovisual presentation and the share placement commission. The relevant costs are being written off over five years.
1.2 Financial fixed assets
The main changes in the financial year concern:
- a capital increase in the Dutch holding company Kinepoleast
- sale of the stake in Kinepolis Pioltello
- sale of the stake in Pentascoop
An increase of EUR 1.1 million was noted as a result.
1.3 Amounts receivable within one year
Trade debtors: The increase is primarily ascribable to an increase in inter-company amounts receivable.
Other amounts receivable: the fall is mainly the result of the conversion of the intercompany current account into
capital.
1.4 Current investments and cash at bank and in hand
No major change.
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2. ORDINARY
Page 69
BALANCE SHEET: DISCUSSION OF THE MOST IMPORTANT
BALANCE SHEET ITEMS
2.1 Capital, share premium account and profit carried forward
The fall in the capital by EUR 33 million is ascribable to a capital reduction which was used to compensate the loss
carried forward and to charge off the incorporated revaluation surplus after an incorporation of the share premium
as capital.
2.2 Amounts payable after one year
The increase is due to a debt reorganisation where EUR 33 million in short-term debt was converted to long-term debt.
2.3 Amounts payable within one year
The fall in financial debts can be ascribed to the above-mentioned debt rescheduling increased by the normal reimbursements in the financial year.
The other debts also fall.
3. DISCUSSION OF THE ORDINARY
ON 31 DECEMBER 2002
INCOME STATEMENT
The result for the financial year increases by EUR 20.8 million from EUR – 17.8 million to EUR 3.0 million. The result
for the previous financial year included an exceptional result of EUR 1.1 million and a financial reduction in value of
EUR 18 million. In 2002, the exceptional result amounted to EUR 8 million and a financial reduction in value amounting to EUR 4.1 million was booked.
The result without these above-mentioned one-off elements thus remained equal to EUR – 0.9.
The operating result fell in comparison to the previous year to EUR 1.8 million, which is mainly ascribable to an
increase in the services, other goods and wage costs item.
The financial result, without taking account of the financial reduction in value increased from EUR – 3.9 million to
EUR –2.5 million, principally due to the receipt of an intra-group dividend.
STATUTORY AUDITOR’S
REPORT
on the annual accounts submitted to the General Meeting of Shareholders of the
public limited company Kinepolis Group
Our statutory auditor issued an unqualified certification on the ordinary annual accounts.
ANNUAL
REPORT
2002
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70
ORDINARY
FINANCIAL STATEMENTS
ORDINARY BALANCE
KINEPOLIS GROUP
SHEET OF
ASSETS (IN .000 EUR)
2002
2001
81 366.95
556.46
81 118.40
1 419.49
102.13
89.85
265.44
221.70
36.95
6.79
334.85
252.95
75.10
6.79
Financial fixed assets
A. Associated enterprises
1. Participating interests
B. Other enterprises linked by participating interests
1. Participating interests, shares and deposit certificates
80 442.92
80 393.34
80 393.34
49.58
49.58
79 274.21
79 236.41
79 236.41
37.80
37.80
CURRENT ASSETS
Amounts receivable within one year
A. Trade debtors
B. Other amounts receivable
131 662.58
85 427.30
19 063.49
66 363.81
140 883.78
93 514.88
11 101.72
82 413.16
430.35
430.35
519.07
519.07
45 396.30
46 447.20
408.63
402.64
213 029.53
222 002.18
FIXED ASSETS
Formation expenses
Intangible fixed assets
Tangible fixed assets
B. Plant, machinery and equipment
C. Furniture and vehicles
E. Other tangible fixed assets
Short-term investments
A. Own shares
B. Other investments
Cash at bank and in hand
Deferred charges and accrued income
TOTAL ASSETS
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Page 71
LIABILITIES (IN .000 EUR)
CAPITAL AND RESERVES
Capital
A. Issued capital
Share premium account
Reserves
A. Legal reserves
B. Reserves not available for distribution
1. In respect of own shares held
D. Reserves available for distribution
Accumulated profits/losses
2002
2001
55 486.41
47 442.92
47 442.92
54 961.16
80 505.32
80 505.32
66 639.88
5 039.30
841.27
1 349.31
1 349.31
2 848.72
4 465.97
991.48
625.77
625.77
2 848.72
3 577.52
(97 223.34)
52.00
52.00
52.00
PROVISIONS FOR LIABILITIES AND CHARGES
A. Provisions for liabilities and charges
1 Pensions and similar obligations
CREDITORS
Amounts payable after one year
A. Financial debts
1. Subordinated loans
4. Credit institutions
157 491.12
37 667.54
37 667.54
5 949.44
31 718.09
167 041.03
10 908.73
10 908.73
7 436.81
3 471.93
Amounts payable within one year
A. Current portion of amounts payable after one year
B. Financial debts
1. Credit institutions
2. Other loans
C. Trade debts
1. Suppliers
E. Taxes, remuneration and social security
1. Taxes
2. Remuneration and social security
F. Other amounts payable
Accrued charges and deferred income
117 732.62
7 041.20
101 250.29
101 250.29
155 022.05
746.51
141 877.02
4 321.58
4 321.58
1 039.98
454.23
585.75
4 079.57
2 090.96
9 147.38
9 147.38
789.38
279.29
510.09
2 461.76
1 110.25
213 029.53
222 002.18
TOTAL LIABILITIES
ANNUAL
REPORT
2002
-
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Page 72
PAG I N A
72
ORDINARY
ORDINARY
FINANCIAL STATEMENTS
INCOME STATEMENT OF
KINEPOLIS GROUP
(IN .000 EUR)
Operating income
A. Turnover
D. Other operating income
Operating charges
A. Raw materials, consumables and goods for resale
1. Purchases
B. Services and other goods
C. Remuneration, social security costs and pensions
D. Depreciation and amounts written off formation expenses,
intangible and tangible fixed assets
E. Amounts written off stocks, contracts in progress and trade debtors
F. Provisions for liabilities and charges
G. Other operating charges
Operating result
Financial income
A. Income from financial fixed assets
B. Income from current assets
C. Other financial income
Financial charges
A. Increase/ decrease in amounts written off current assets
B. Losses on current assets
C. Other financial charges
Profit on ordinary activities before tax
(IN .000 EUR)
Extraordinary income
D. Gain on disposal of fixed assets
E. Other extraordinary income
Extraordinary charges
D. Loss on disposal of fixed assets
Result for the period before taxes
Income taxes
A. Taxes
B. Adjustment of income taxes and
write-back of tax provisions
Result for the period
2002
2001
23 834.12
17 398.14
6 435.98
(22 056.05)
151.20
151.20
15 546.62
5 066.87
21 510.15
15 367.12
6 143.03
(18 720.46)
1 225.92
1 235.35
(73.31)
52.00
13.44
1 778.07
6 635.65
1 598.05
5 016.54
21.06
(13 346.27)
8 279.33
4 150.22
916.72
(4 932.56)
13 322.84
4 219.97
15.62
2 789.68
5 639.99
5 613.71
26.28
(27 482.58)
8 151.21
18 064.06
1 267.31
(19 052.91)
2002
2001
8 000.08
8 000.08
1 163.69
1 161.00
2.68
(0.14)
0.14
(17 889.37)
0.60
3 067.52
(63.34)
(63.34)
3 004.19
0.60
(17 888.77)
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ORDINARY
Page 73
APPROPRIATION OF THE RESULT
(IN .000 EUR)
A. PROFIT TO BE APPROPRIATED
1. Profit (loss) for the period available for appropriation
2. Profit brought forward from previous year
B. TRANSFERS FROM CAPITAL AND RESERVES
1 . Allocation to capital and share premium
2. To the reserves
C. APPROPRIATIONS TO CAPITAL AND RESERVES
2. Allocation to legal reserves
3. To other reserves
D. RESULT TO BE CARRIED FORWARD
2. Profit/Loss to be carried forward
2002
2001
(94 219.16)
3 004.19
(97 223.34)
98 959.57
97 223.34
1 736.23
(1 162.90)
150.21
1 012.69
(97 341.50)
(17 888.77)
(79 452.73)
197.14
(3 577.52)
97 223.34
I. STATEMENT OF FORMATION EXPENSES
Net book value at end of the preceding period
Movements during the year:
- New expenses during the period
- Depreciation
Net book value at the end of the period:
of which: - expenses linked to incorporation and the capital increase, loan issue
- expenses and other formation expenses
197.14
(78.98)
78.98
1 419.49
49.03
(912.06)
556.46
556.46
II. STATEMENT OF INTANGIBLE FIXED ASSETS
CONCESSIONS, PATENTS,
LICENCES, ETC.
A. ACQUISITION COST
At the end of the preceding period:
Movements during the period:
- acquisitions including fixed assets - own construction
At the end of the period
C. DEPRECIATION AND AMOUNTS WRITTEN OFF
At the end of the preceding period
Movements during the period:
- recorded
At the end of the period
D. NET BOOK VALUE AT END OF FINANCIAL YEAR (A) - (C)
323.65
93.05
416.70
233.80
80.77
314.57
102.13
ANNUAL
REPORT
2002
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PAG E
74
III. STATEMENT OF TANGIBLE FIXED ASSETS (IN .000 EUR)
PLANT, MACHINERY
AND EQUIPMENT
FURNITURE AND
VEHICLES
854.08
356.34
158.76
1 012.84
4.92
361.27
601.13
281.24
190.01
791.14
221.70
43.08
324.32
36.95
A. ACQUISITION COST
At the end of the preceding period
Movements during the period
- Acquisitions including fixed assets - own construction
At the end of the period
C. DEPRECIATION AND AMOUNTS WRITTEN OFF
At the end of the preceding period
Movements during the period:
- Recorded
At the end of the period
D. NET BOOK VALUE AT THE END OF THE PERIOD (b) - (c)
OTHER TANGIBLE
FIXED ASSETS
A. ACQUISITION COST
At the end of the preceding period:
At the end of the period
D. NET BOOK VALUE AT THE END OF THE PERIOD (a) - (c)
6.79
6.79
6.79
IV. STATEMENT OF FINANCIAL FIXED ASSETS (IN .000 EUR)
AFFILIATED
ENTERPRISES
COMPANIES WITH
PARTICIPATING INTEREST
OTHER ENTERPRISES
1. Participations and shares
A. ACQUISITION COST
At the end of the preceding period
Movements during the period
Acquisitions
Sales and disposals
At the end of the period
79 236.41
37.80
41 458.37
(40 301.44)
80 393.34
11.80
49.58
NET BOOK VALUE AT THE END OF THE PERIOD
80 393.34
49.58
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A. PARTICIPATING INTERESTS AND CORPORATE RIGHTS IN OTHER ENTERPRISES
Corporate rights
Data obtained from last available
held by
NAME AND REGISTERED OFFICE
l'entreprise
financial statement
subsidiaries
(directement)
Qty
NV DECATRON
Kampioenschapslaan 1
1020 Brussels, BELGIUM
BE 424.519.114
Ordinary shares
82 467
NV REGIONALE UITGEVERSMAATSCHAPPIJ (‘RUM’) “in liquidation”
Wikingerhof 7
8500 Kortrijk, BELGIUM
BE 421.962.371
Ordinary shares
249
NV KINEPOLIS MEGA
Eeuwfeestlaan 20
1020 Brussels, BELGIUM
BE 430.277.530
Ordinary shares
20 333
NV KINEPOLIS FILM DISTRIBUTION
Eeuwfeestlaan 20
1020 Brussels, BELGIUM
BE 445.372.746
Ordinary shares
199
NV MAJESTIEK INTERNATIONAL
Val Sainte Croix, 7
L 1371 Luxembourg.
LUXEMBOURG
Ordinary shares
449
NV EUROPEAN MEGA CINEMA
Val Sainte Croix, 7
L 1371 Luxembourg
LUXEMBOURG
Ordinary shares
16 999
BVBA KINEPOLIS FILM PRODUCTIONS
Wikingerhof 7
8500 Kortrijk, BELGIUM
BE 459.997.061
Shares without nominal value
749
Financial
Currency
statement as at
Capital and
Net
reserves
result
%
%
(+) of (-)
99.99
0.01
31/12/2001
EUR
99.60
0.40
31/12/2001
EUR
99.99
0.01
31/12/2001
EUR
99.50
0.50
31/12/2001
EUR
356 513
(155 511)
99.78
0.22
31/12/2001
EUR
2 335 917
30 643
99.99
0.01
31/12/2001
EUR
3 601 461
(179 513)
99.87
0.13
31/12/2001
EUR
ANNUAL
3 839 192 (556 055)
149 548
(9 070)
19 483 830 4 547 037
(340 993) (235 106)
REPORT
2002
-
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PAG E
76
Corporate rights
Data obtained from last available
held by
NAME AND REGISTERED OFFICE
the company
financial statement
subsidiaries
(directly)
Qty
NV C. C. I.& H.
Sint- Truidersteenweg 26
3540 Herk-de-Stad,
BELGIUM
BE 455.740.543
Ordinary shares
NV C. C. E. LIEGE
Place Saint Paul 6
4000 Liège 1, BELGIUM
BE 459.469.796
Ordinary shares
NV IMMO ROC
Sint- Truidersteenweg 26
3540 Herk-de-Stad, BELGIUM
BE 459.466.234
Ordinary shares
NV KINEPOLIS MULTI
President Kennedylaan 100b
8500 Kortrijk, BELGIUM
BE 434.861.589
Ordinary shares
NV BRUVISION
Kampioenschapslaan, 1
1020 Brussel, BELGIUM
BE 418.314.676
Ordinary shares
BV KINEPOLEAST
Burgemeester Rijnderslaan 10
1185 Amstelveen, NL
Ordinary shares
NV DEVICOS “in liquidation”
Kampioenschapslaan 1
1020 Brussel, BELGIUM
BE 444.192.197
Ordinary shares
Financial
Currency
statement as at
%
%
Capital and
Net
reserves
result
(+) of (-)
248
99.20
0.80
31/12/2001
EUR
855 240
(572)
13 471
99.95
0.05
31/12/2001
EUR
998
99.80
0.20
31/12/2001
EUR
78 803
99.89
0.01
31/12/2001
EUR
22 639 134 4 420 049
2
0.05
99.95
31/12/2001
EUR
(41 593) (221 562)
11 880 013
68.01
13.36
31/12/2001
EUR
(229 202) (834 650)
2 999
99.97
0.03
31/12/2001
EUR
4 323 949 (477 700)
321 769
391 582
(873)
(23 601)
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Corporate rights
Data obtained from last available
held by
NAME AND REGISTERED OFFICE
the company
financial statement
subsidiaries
(directly)
NV IMAGIBRAINE
Boulevard de France
1420 Braine l’Alleud, BELGIUM
BE 462.688.911
Ordinary shares
NV IMAGISOFT
Boulevard de France
1420 Braine-l’Alleud, BELGIUM
BE 464.594.861
Ordinary shares
NV EUROCASINO
Steylsstraat 119
1020 Brussel BELGIUM
Ordinary shares
SA Kine Invest
Calle Edgar neville
Pozuelo de Alarcon
28223 Madrid, SPAIN
Ordinary shares
NV Kinepolis ESPANA
Calle Edgar neville
Pozuelo de Alarcon
28223 Madrid, SPAIN
Ordinary shares
BVBA Frontline Productions
Eeuwfeestlaan 20
1020 Brussels, BELGIUM
BE 451 171 051
Ordinary shares
NV Megatix
Eeuwfeestlaan 20
1020 Brussels, BELGIUM
BE 462 123 341
Ordinary shares
SA Decatron Consulting
in liquidation
Carretera de Madrid a Boadilla
28223 Madrid, SPAIN
Ordinary shares
Financial
Currency
statement as at
Capital and
Net
reserves
result
Qty
%
%
(+) of (-)
99 999
99.99
0.01
31/12/2001
EUR
963 054
(102 187)
4
0.16
99.84
31/12/2001
EUR
79 964
8 202
1 900
19.00
31/12/2001
EUR
16 120
159 931
29 747
99.16
0.84
31/12/2001
EUR
9 066 534
(451 011)
20 495
99.99
0.01
31/12/2001
EUR
9 066 534
(451 011)
1
0.13
99.87
31/12/2001
EUR
(27 675)
(28 302)
499
99.80
0.20
31/12/2001
EUR
242 606
(53 950)
1 800
90.00
10.00
31/12/2001
EUR
86 932
(15 654)
ANNUAL
REPORT
2002
-
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Corporate rights
Data obtained from last available
held by
NAME AND REGISTERED OFFICE
the company
financial statement
subsidiaries
(directly)
NV RMBe
Kolonel Bourgstr. 133
1000 Brussels, BELGIUM
BE 464.742.935
Ordinary shares
KINEPOLIS Nacka
Västra. Hamngatan 24
41117 Göteborg
SWEDEN
Ordinary shares
S.p.a. Cinecity
Corso del Popolo 30
30172 Mestre – Venice, ITALY
Financial
Currency
statement as at
Qty
%
14 880
50.00
1 000
99.99
550 000
55.00
%
0.01
Capital and
Net
reserves
result
(+) of (-)
31/12/2001
EUR
31/12/2001
SEK
31/12/2001
EUR
35 736 (160 383)
100 000
3 760 557 (139 655)
VII. DEFERRED CHARGES AND ACCRUED INCOME
2002
Costs to be carried forward
Interest receivable
Other
93.84
280.59
34.20
VIII. STATEMENT OF CAPITAL (IN .OOO EUR)
CAPITAL
A. SHARE CAPITAL
1. Issued capital
At end of the preceding period
Changes during the period:
- Capital increase *
- Capital decrease write down losses
- Capital decrease
- at the end of the period
2. Structure of the capital
2.1 Types of shares
Ordinary shares without indication of nominal value
2.2 Registered or bearer shares
Registered shares
Bearer shares
* Incorp. premiums
NUMBER OF SHARES
80 505.32
66 639.88
(97 223.34)
(2 478.94)
47 442.92
47 442.92
6 930 778
5 172 554
1 758 224
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CAPITAL
C. OWN SHARES HELD BY:
- the company
NUMBER OF SHARES
367.77
D. COMMITMENTS TO ISSUE SHARES
2. following the exercise of subscription rights
- Outstanding subscription rights
- Amount of capital to be issued
- Maximum number of shares to be issued
53 726
55 590
1 970.60
83 916
E. AUTHORISED CAPITAL NOT ISSUED
47 442.92
G. SHAREHOLDER STRUCTURE OF THE COMPANY AT BALANCE SHEET DATE, as evidenced by the
declarations received by the company
SHAREHOLDER
NUMBER OF SHARES
%
Kinohold (bis) and C. C. M.& H.
4 419 313
63.76%
GIMV NV
767 797
11.08%
Kinepolis Group
53 726
0.78 %
Public
1 689 942
24.38%
Total
6 930 778
100%
IX. PROVISIONS FOR LIABILITIES AND CHARGES (IN .OOO EUR)
2002
Breakdown of point 163/5 when an important amount occurs
- Pensions and similar obligations
52.00
X. STATEMENT OF AMOUNTS PAYABLE (IN .OOO EUR)
A. Breakdown of amounts originally payable
after more than one year, by residual term
DEBTS WITH A RESIDUAL TERM OF
MAXIMUM
ONE YEAR
7 041.20
Financial debts
1 487.36
1. Subordinated loans
5 553.83
4. Credit institutions
7 041.20
TOTAL
C. Liabilities concerning taxes, remuneration and social security
MORE THAN
ONE YEAR BUT
MAX. FIVE YEARS
27 564.17
5 949.45
21 614.72
27 564.17
MORE
THAN FIVE
YEARS
10 103.37
10 103.37
10 103.37
2002
1. Taxes
b) Non-lapsed tax liabilities
2. Remuneration and social security
b) Other payroll and social security liabilities
454.23
585.75
ANNUAL
REPORT
2002
-
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XI. ACCRUED CHARGES AND DEFERRED INCOME (IN .OOO EUR)
Interest to be appropriated
Income to be carried forward
2002
517.03
1 573.94
XII. OPERATING RESULTS
C1. Employees entered on the personnel register
a) Total number at balance sheet date
b) Average workforce in full-time equivalents
c) No. of hours actually worked
2002
2001
71
69.6
118 688
71
65.1
110 692
C2. Personnel costs (IN .OOO EUR)
a) Remuneration and direct social benefits
b) Employer's contribution for social security
c) Employer's premium for extra statutory insurance
d) Other personnel charges
3 571,92
1 028.31
127.59
339.06
3 076.96
897.24
C3. Provisions for pensions
Increase, cost, written back
52.00
D. Depreciation and amounts written down
2. Trade debtors
Written back
E. Other liabilities and charges
Increase
F. Other operating charges
Taxes and duties on the conduct of the business
Other
G. Temporary staff and persons placed at the company's disposal
2. Average number calculated in full time equivalents
No. of hours actually worked
Frais pour l'entreprise
XIII. FINANCIAL RESULTS
A. Other financial income
Positive exchange differences
Other financial income
245.77
(73.31)
52.00
5.33
8.11
10.21
5.41
1.6
3 152
181.86
1.2
932
52.69
2002
2001
6.38
14.68
13.86
12.42
4 150.22
18 064.06
D. Depreciation and amounts written down on intangible assets
Recorded
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E. Other financial charges
Bank charges
Other financial charges
Negative exchange differences
Depreciation after sales of intangible assets
2002
2001
163.65
36.55
716.53
520.49
58.63
647.93
40.27
XIV. EXTRAORDINARY RESULTS (IN .OOO EUR)
A. Breakdown of other extraordinary charges if material
- Gain on disposal of fixed assets
8 000.08
XV. INCOME TAXES (IN .OOO EUR)
A. Breakdown
1. Taxes on the results of the financial year
a. taxes and withholding tax due or paid
63.33
63.33
B. Main sources of differences between profit before taxes and the estimated taxable profit
- Capital gains on shares
- Rejected expenditure
1 202.54
8 000.08
XVI. OTHER TAXES AND TAXES SUPPORTED BY THIRD PARTIES
(IN .OOO EUR)
A. Value added taxes charged:
1. To the company (deductible)
2. By the company
B. Amounts retained on behalf of third parties for:
1. Payroll withholding taxes
2002
2001
2 905.99
3 998.31
3 093.66
4 320.86
1 278.57
1 117.78
2002
2001
XVII. OFF- BALANCE- SHEET RIGHTS AND COMMITMENTS (IN .OOO EUR)
Real guarantees given or irrevocably promised by the company on
its own assets as security for debts and commitments
Pledge of other assets:
Book value of assets pledged
944 821,38
XIX. FINANCIAL RELATIONSHIPS (IN .OOO EUR)
2002
C. Other companies included in the consolidation or affiliated enterprises
controlled by managers mentionned in point B
4. Direct and indirect remuneration and pensions included in the income statement to the directors,
as long as this disclosure does not concern exclusively or mainly the situation of a single identifiable
person:
- to directors and general managers
474
ANNUAL
REPORT
2002
-
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XVIII. RELATIONSHIPS WITH ASSOCIATED UNDERTAKINGS AND UNDERTAKINGS IN WHICH THE
COMPANY HAS A PARTICIPATING INTEREST. (IN .OOO EUR)
ASSOCIATED
ENTERPRISES
1. FINANCIAL FIXED ASSETS
- Participating interests
- Subordinated assets
2. AMOUNTS RECEIVABLE
- For a term not exceeding 1 year
4. AMOUNTS PAYABLE
- For a term not exceeding 1 year
2002
80 393.34
80 393.34
2001
79 236.41
79 236.41
81 524.11
81 524.11
4 818.83
4 818.83
89 630.43
89 630.43
8 928.38
8 928.38
ENTERPRISES IN WHICH
THE COMPANY HAS A
PARTICIPATING INTEREST
2002
2001
49.58
37.80
49.58
37.80
ASSOCIATED ENTERPRISES
2002
2001
7. FINANCIAL RESULTS
- Income from financial fixed assets
- Income from current assets
- Other financial income
- Other financial income
- Other financial debts
8. FIXED ASSETS
- Gain on disposal
- Depreciation
1 598.05
5 016.54
21.06
8 279.33
916.72
8 000.08
5 613.71
26.28
8 151.21
1 267.31
1 161.00
0.14
DECLARATION CONCERNING THE CONSOLIDATED FINANCIAL STATEMENT
The company prepares a consolidated financial statement and a consolidated annual report in accordance with the
Royal Decree of 6 March 1990.
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SOCIAL BALANCE SHEET
I. STATEMENT OF PERSONS EMPLOYED
A. Employees entered on the register of personnel
1. During the year and in the previous year
1.FULL-TIME
2. PART-TIME
PARTIEL
2002
2002
65.2
111 345
4 753.40
Average number of employees
No. of hours actually worked
Personnel costs (in .000 EUR)
Benefits in addition to wages
3. TOTAL (T)
OR TOTAL IN
FULL-TIME
EQUIVALENTS
(FTE)
2002
4. TOTAL (T) OR
TOTAL IN
FULL-TIME
EQUIVALENTS
(FTE)
2001
6.3
7 343
313.48
69.6
118 688
5 066.87
69.95
65.1
110 692
4 219.97
66 .10
1. FULL- TIME
2. PART- TIME
3. TOTAL
65
6
69.2
64
1
6
68.2
1.0
2. On balance sheet date
a. No. of employees entered on
the register of personnel
b. By nature of contract of employment
Permanent contract
Fixed-term contract
c. By sex
Men
Women
d. By occupational category
White-collar
Other
29
36
6
29.0
40.2
65
6
69.2
B. Temporary employees and employees on permanent contract
During the year
Average number of employees
No. of hours actually worked
Personnel costs (EUR thousands)
TEMPORARY
EMPLOYEES
EMPLOYEES ON
PERMANENT
CONTRACT
1.0
2 015
52.50
0.6
1 137
129.35
ANNUAL
REPORT
2002
-
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II. SCHEDULE OF PERSONNEL MOVEMENTS DURING THE YEAR
1. FULL-TIME
2. PART-TIME
3. TOTAL IN
FULL-TIME
EQUIVALENTS
28
1
28.8
20
8
1
20.8
8.0
A. ENTERING SERVICE
a. No. of employees added to the register of
personnel during the year
b. By nature of contract of employment
Contract for an indefinite period
Fixed-term contract
c. By sex and educational level
Men:
Non-university higher education
University education
Women:
Non-university higher education
University education
8
5
8.0
5.0
9
6
1
9.8
6.0
1. FULL- TIME
2. PART-TIME
3. TOTAL IN
FULL-TIME
EQUIVALENTS
26
4
28.3
17
9
4
19.3
9.0
9
5
1
9.5
5.0
9
3
3
10.8
3.0
6
20
2
2
7.4
20.9
B. LEFT SERVICE
a. No. of employees with a date entered
in the register of personnel on which their
contract was terminated during the year
b. By type of contract of employment
Contract for an indefinite period
Fixed-term contract
c. By sex and educational level
Men:
Higher non-university education
University education
Women:
Higher non-university education
University education
d. According to the reason for terminating the contract
Dismissal
Other reason
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III. STATEMENT ON THE USE OF MEASURES ON BEHALF OF
EMPLOYMENT DURING THE FINANCIAL YEAR
Measures on behalf of employment
Measures
1.1 Advantage job plan (to encourage
the hire of jobseekers belonging
to risk groups)
1.6 Structural reduction in
social security contributions
1.8 Service jobs
Number of employees affected by one or more
measures on behalf of employment
Total for financial year
Total for previous financial year
NUMBER OF EMPLOYEES CONCERNED
1.NUMBER
2.IN FULL-TIME
3.FINANCIAL
EQUIVALENTS
ADVANTAGE
(IN .000 EUR)
1
0.8
0.49
82
1
80.6
0.8
81.55
10.34
84
2
82.2
2.0
ANNUAL
REPORT
2002
-
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VALUATION
RULES
1. Principle
The valuation rules are determined in accordance with the provisions of Chapter II of the Royal Decree of 8 October
1976 concerning company financial statements.
2. Special Rules
Formation expenses
Formation expenses and the cost of capital increases are valued at cost and depreciated on a straight-line basis over
a period of five years. Loan expenses, if any, can be capitalized and written off annually in relation to the period of
the loan.
Intangible fixed assets
Intangible fixed assets are shown on the balance sheet at cost. Annual depreciation is applied by the straight-line
method at 20% per year.
Tangible fixed assets
Acquisitions of tangible fixed assets are valued at cost plus additional expenses such as non- deductible VAT.
Depreciation is applied on the basis of the anticipated useful life of the assets concerned.
Depreciation recorded during the year
ASSETS
Industrial, administrative
or commercial buildings
2. Plant, machinery and equipment
METHOD
BASIS
L (STRAIGHT
NR (NON
LINE
REVALUED)
DEPRECIATION PERCENTAGE
CAPITAL
ADDITIONAL
SUM MIN- MAX
COSTS
1.
L
NG
5% - 20%
5% - 20%
(on lease)
3. Vehicles
4. Office equipment and furniture
L
L
L
L
L
L
L
NG
NG
NG
NG
NG
NG
NG
10% - 10 %
20% - 20 %
25% - 25 %
50% - 50 %
33% - 33 %
20% - 20%
20% - 33%
20% - 20%
Accelerated or reducing-balance depreciation is applied with due regard to the tax provisions. Expenditure on conversions, important renewals and improvements is capitalized. Expenditure on repairs, maintenance and replacements that do not significantly extend the economic useful life of the assets concerned is entered as expenses.
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Financial fixed assets
Participating interests and shares are valued at cost. Additional expenses relating to their acquisition are not capitalized but transferred to the ‘Other financial expenses’ item for the year in which they are incurred. Adjustments
are made if the estimated value of participating interests, shares is lower than their book value and if the reduced
value thus ascertained appears permanent. The estimated value of each participating interest or share is fixed at
the end of each financial year according to one or more criteria. In general the value of the last published balance
sheet is taken into account, unless more significant data is available.
Stocks
Goods for resale are valued at cost calculated by the FIFO method or at market value on the balance sheet date if
lower.
Amounts receivable within one year
Debtors are shown on the balance sheet at nominal value. Fixed-income securities are valued at cost. Adjustments
are made if there is uncertainty regarding all or part of the receivable as to payment of the claim on the due date
or if the market value on the balance sheet date is lower than the nominal or book value.
Short-term investments and cash at bank an in hand
Fixed-income securities and shares are valued at the lower of purchase price or market value.
Deferrals and accruals
Deferrals and accruals are recorded and valued at cost and shown on the balance sheet in the section relating to
the next financial year (costs) or are allocated to the present year (income).
Provisions for liabilities and charges
Provisions for liabilities and charges are made to meet the requirements of caution, integrity and good faith. The
amount of the provisions is decided by the company’s governing body on the basis of a cautious estimate
Foreign currency
Credits, debts and obligations in foreign currency are converted at a fixed exchange rate, which is adjusted monthly. Exchange rate income or charges therefore occur when these are settled. In addition, credits and liabilities in currency on the balance sheet are converted at the closing rate on the balance sheet date. The results of this conversion are recorded:
- if the result is a profit: under "accruals and deferred income" in liabilities
- if the result is a loss: under "other financial expenses" in the income statement.
ANNUAL
REPORT
2002
-
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