Vue International Q1 FY2018 Noteholder Presentation 17 April 2018 Peter Rabbit Premiere March 2018
Important Information IMPORTANT: You must read the following before continuing PRESENTATION OF FINANCIAL DATA On 12 August 2016 Vougeot Bidco plc changed its name to Vue International Bidco plc. This presentation refers to market information obtained from third party sources. “Market Admissions” for UK, Italy and the Netherlands are a measure of paid and unpaid box office admissions and are sourced from the Cinema Advertising Association (“CAA”), Cinetel and Rentrak respectively. Market Admissions for Germany and Poland includes only paid admissions and the sources are Rentrak through www.IBOE.com and www.boxoffice.pl respectively. Gross Box Office Revenue (“GBOR”) measures box office revenue including local sales taxes by film and in aggregate. Market GBOR refers to total GBOR for markets referred to. “Major Territories” and “Vue Major Territories” specifically refer to UK, Germany, Poland, Italy and the Netherlands being the major markets in which Bidco operates. Major Territories Total Market GBOR and Vue Major Territories GBOR are aggregated measures of GBOR for the total market and for Bidco. “Market Share” is Vue Major Territories GBOR as a proportion of Major Territories Total Market GBOR. Market and Vue GBOR information for UK & Ireland, Germany and the Netherlands is sourced from Rentrak through www.IBOE.com, Poland from www.boxoffice.pl and Italy from Cinetel. The Pro Forma financial information presented in this report has been derived from the consolidated financial statements of Bidco, and the pre-acquisition consolidated financial information of Tulip UK NewCo Limited and its subsidiaries which includes Vue Nederland B.V. (together “VNL”), adjusted to give pro forma effect to the € 120m Term Loan B which was issued in July 2016, and the application of the proceeds therefrom. The Pro Forma financial information also includes the Pro Forma savings resulting from the strategic decision made by the board of directors of the Company to purchase certain contractual digital equipment related to the projection of 3D Films. This decision will result in significant savings in costs and an associated increase in consolidated EBITDA. The Company currently has license arrangements on rolling 5 year terms and where such licenses have terminated or will terminate within the next 24 months the Company has added back the associated cost savings in arriving at Consolidated EBITDA. At 28 February 2018 the increase in Consolidated LTM EBITDA resulting from this reduction in administration expenses is £5.1m comprising £3.1m of actual savings already achieved and £2.0m of annualised pro forma savings which will be achieved on licenses expiring in the next 24 months. Effective from 28 th November 2014, the Company has elected to adopt International Financial Reporting Standards (“IFRS”) . All financial information in this presentation has been prepared in accordance with IFRS. A summary of the financial information on the Pro Forma basis and the Bidco “As Acquired” basis is set out in the Appendices. A reconciliation between the Bidco As Acquired Profit and Loss Account and the audited Statutory Consolidated Profit and Loss Account for Vue International Bidco plc is also provided within the Appendices. DISCLAIMER This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy securities. This presentation does not contain all of the information that is material to an investor. Forward-Looking Statements This presentation contains “forward -looking statements” as that term is defined by the U.S. federal securities laws and within the meaning of the securities laws of certain other jurisdictions. These forward-looking statements include, without limitation, those regarding our intentions, beliefs or current expectations concerning our future financial condition and performance, results of operations and liquidity; our strategy, plans, objectives, prospects, growth, goals and targets; future developments in the markets in which we participate or are seeking to participate; and anticipated regulatory changes in the industry in which we operate. These statements often include words such as “anticipate,” “believe,” “could,” “estimates,” “expect,” “forecast,” “intend,” “August,” “plan,” “projects,” “should,” “suggests,” “targets,” “would,” “will,” and other similar expressions. These statements are not guarantees of performance or results. Many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections. We undertake no obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. Vue International Bidco plc and its shareholders continue to evaluate all of the strategic options and opportunities available. This includes a potential sale or IPO, however no decisions have been made and nothing has been ruled out. 2
Agenda and Today’s Speakers Highlights Q1 2018 Market Update Key Financials Current Trading Update and Outlook Summary Q&A Tim Richards Alison Cornwell Steve Knibbs CEO CFO COO 3
Highlights Q1 2018 • Highest UK admissions for five years, third Variance Q1 2018 Q1 2017 highest group admissions ever ` As Reported Constant C. Turnover (£m) 246.3 236.6 4.1% 1.6% • 4.1% increase in Turnover driven by the UK and Consolidated EBITDA (£m) 55.5 56.3 (1.4)% (4.3)% Poland Consolidated EBITDA % 22.5% 23.8% (1.3)ppt (1.4)ppt • Lower ATP on a constant currency basis reflecting selective pricing initiatives and the mix impact of Admissions (m) 25.3 24.6 2.9% 2.9% admissions growth in lower ATP territories such ATP (£) 6.32 6.31 0.1% (2.3)% as Poland SPP (£) 2.30 2.16 6.4% 3.7% • Increased SPP following the trend of recent years and continued investment in concessions (£125.7m in constant currency) LTM EBITDA (£m) 125.1 offerings Net Leverage 4.9x (also 4.9x in constant currency) • LTM EBITDA of £125.7m in constant currency • Major refurbishments completed at Łódź and Poznań Stary Browar in Poland and Den Bosch in the Netherlands • Two additional screens added in the Netherlands • Net leverage remains at 4.9x in constant currency • Laying a foundation to capture business opportunities in the Kingdom of Saudi Arabia 4
Market Performance – UK & Ireland Top Titles Q1 2018 - UK & Ireland GBOR (£m) 3D Local Admissions (UK only) 6.5% 6.5% Star Wars: The Last Jedi 82.4 Yes No (m) 49.9 49.9 Jumanji: Welcome To The Jungle 37.3 Yes No 46.9 46.9 Greatest Showman, The 33.7 No No Black Panther 30.9 Yes No Darkest Hour 23.0 No Yes Total Top 5 207.3 3 1 Other 203.7 Q1 2017 Q1 2018 YTD 2017 YTD 2018 Total Market 411.0 Top 5 as a % of total market 50.4% Top Titles Q1 2017 - UK & Ireland GBOR (£m) 3D Local GBOR (UK only) Rogue One: A Star Wars Story 66.0 Yes No 9.1% 9.1% (£m) Fantastic Beasts And Where To Find Them 33.4 Yes No 383 383 351 351 La La Land 28.8 No No Sing 25.1 Yes No The LEGO Batman Movie 20.2 Yes No Total Top 5 173.4 4 0 Other 204.1 Q1 2017 Q1 2018 YTD 2017 YTD 2018 Total Market 377.5 Top 5 as a % of total market 45.9% Source: DCM for admissions, IBOE / Rentak for GBOR • UK Market Admissions 6.5% higher than Q1 2017 due to the strength of the latest Star Wars instalment, Star Wars: The Last Jedi, compared to it’s spin off predecessor Rogue One: A Star Wars Story • UK/IR Market GBOR up 9.1% due to a lower proportion of kids titles in Q1 2018 compared to the previous year which featured both Sing and The LEGO Batman Movie • Other notable titles outside of the top five include Paddington 2 (£18.5m) and Oscar winners Coco (£16.7m) and Three Billboards Outside Ebbing, Missouri (£12.6m) 5
Market Performance – Germany Top Titles Q1 2018 - Germany GBOR ( €m ) 3D Local Admissions (8.4)% (8.4)% Star Wars: The Last Jedi 68.4 Yes No (m) Fifty Shades Freed 21.3 No No 34.2 34.2 31.4 31.4 Jumanji: Welcome to the Jungle 18.6 Yes No Dieses bescheuerte Herz 16.3 No Yes Coco 9.9 Yes No Total Top 5 134.5 3 1 Other 146.4 Q1 2017 Q1 2018 YTD 2017 YTD 2018 Total Market 280.9 Top 5 as a % of total market 47.9% GBOR Top Titles Q1 2017 - Germany GBOR ( €m ) 3D Local (5.4)% (5.4)% Rogue One: A Star Wars Story 43.6 Yes No ( € m) Fifty Shades Darker 22.9 No No 297 297 281 281 Sing 18.5 Yes No Fantastic Beasts And Where To Find Them 16.0 Yes No Moana 15.2 Yes No Total Top 5 116.3 4 0 Other 180.8 Q1 2017 Q1 2018 YTD 2017 YTD 2018 Total Market 297.1 Top 5 as a % of total market 39.1% Source: IBOE / Rentrak • Market Admissions lower by 8.4% in Q1 2018 due to the weaker performance of titles outside the top 5 • Market GBOR lower by 5.4% due to a lower proportion of kids titles in the market in Q1 2018 • Two local content titles appeared in the top 10 during the period including the comedy Dieses bescheuerte Herz ( € 16.3m) and Die kleine Hexe ( € 7.1m) • Other notable titles include Black Panther ( € 9.6m) and Pitch Perfect 3 ( € 8.2m) 6
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