Welcome everyone for the presentation of the year results 2025 for Kinepolis Group. What was 2025?

In a background of weaker visitors, we are still proud about the solid financial performance of the group, based on more premiumisation, more experience that is still delivering. We organized as well our second Innovation Lab Summit, more about that later on.

2025 was as well important in terms of the refinancing of the group. We refinanced or we renegotiated the RCF, and we organized a successful retail bond issue.

We are more and more future-proofing and preparing our organization for the future with two new chief positions, two executive positions, more about that later on. Then, more than a cherry on the cake, we started again with the expansion strategy of the group and doing the first acquisition, the biggest acquisition since the pandemic for the industry as well, with Imagine, a transaction we closed last week.

This is the content table for the presentation, but let's first have a look at our top-performing movies for 2025. On the agenda we have so first business review, then Pieter-Jan will follow up with the financial review and I will come back for the outlook, and then we are available for Q&A.

First business review. We made 5.8% less tickets.

The background of that is essentially France where we had strong local content in 2024, L'Amour Ouf, Un P'tit Truc en Plus, and The Count of Monte Cristo that we didn't had last year. Can tell you that right now with Marsupilami and the lineup for this year we started very strong in France again.

Then of course, Michael that was postponed to the month of April. 5.8% less tickets, only 2.3% less revenue, impacted as well by currency impacts, lower conversion from US and Canadian dollar, will come back on that later on as well.

Still a solid €128.2 million EBITDAL or 3.4% lower. Net profit almost at the same level of the year before, we will show you later on, without the FX impacts as well.

Strong free cash flow generation and coming at the end of the year at a financial debt leverage of 2.1 with €287 million net financial debt. As already elaborated a bit before, yeah, a little bit less blockbusters.

We are still confronted with less blockbusters. I will tell you a little bit more about that when we are at the outlook and what we observe, what is going on today in Hollywood.

Of course, with less releases, you still have weaker periods. Strong local content again this year in France, but last year, and that's not new, pre-pandemic as well, one of the reasons why we expanded to several countries to level out the impact of local content, which doesn't come with a stable output.

North America, where of course the local content is as well the Hollywood content remain relatively stable. The revenue generation per visitor was strong, with almost again a higher spend per visitor despite a little bit proportionally less blockbusters, because blockbusters always consume more in our shops and consume as well more in premiumisation.

Despite that, a strong growth there as well, and we will come back as well on next steps into premiumisation. Operational fundamentals, cost control remains strong.

The adjusted EBITDAL decreased by 3.4% to €128 million, as said before, €130 million at flat FX. Our debt position went further down.

Last week, we closed the deal in Michigan with Imagine. Even then, Pieter Jan will come back on that, the debt leverage remains on a very conservative level.

Here you see the results at flat FX rate, almost the same revenue, almost the same EBITDAL, almost the same adjusted results. Incremental costs as well in the background of a couple of important projects we are working on: a new website that we will release this year, supported by a new app as well.

We are working on a new finance ERP as well. We worked as well on the organization structure.

We invested there as well in new positions. I will come back on that as well in a second.

Voilà, that says it all, huh? Top five movies, 1.7 million less.

Again, we had this morning to explain to the press that there's nothing structural going on. If Avatar would have been a month earlier, together with The Housemaid, another very successful movie next to Zootopia, that probably the year would have looked very different.

You see that the top five movies, the weight was only 19.7%. You see they are waiting for more blockbusters.

We had years in pre-pandemic that it was easily 25%, even up to 29%. This shows as well that behind those blockbuster movies, we have still a lot of mid-sized movies.

What is exceptional, that we, since three months now, we are essentially performing very strongly with those mid-sized movies. The blockbusters started up again the engine of traffic to the cinema, but right now as we speak, we are very, very happy about the start of the year.

Of course, still 10 and a half months to go, don't jump to conclusions, but a good start is always a good start, of course. A lot of marketing actions and a lot of things making cinema becoming more event mental and contributing to that experience, and we have some footage to show you, and then I will be back with key takeaways.

Here you see the performance in visitor numbers and in the revenue. Again, we added for Canada and for the US at fixed rate, and so there you see clearly the premiumisation impact: 8.3% less visitors, for instance, in Belgium, still resulting in only 0.5% less of revenue.

In that background, business-to-business, screen advertising, real estate income were all in progress or performing very well. Then of course, yeah, what we said before, France, lack of good local content, not able to compensate.

You see as well that there as well the contribution in growth per visitor in Canada and in the United States, where we did a lot of investments in copy-pasting concepts we developed in Europe, are still very well performing and contributing. We continue to work on our three-pillar strategy for those who are following us already for a longer time, that's since 2008, and we still think that there is a lot of potential in all of these pillars.

I think that almost making the same result and revenue with 5.8% visitors demonstrate that our so-called 5% exercise, which is key in our cinema operator approach, is still working very strongly. Best marketer, because behind all these figures, we see a lot of other dynamics.

For instance, CineK is growing very fast. It's more the crossover movie, some art house movies, but those programs are developing very fast in many countries, and a lot of of new initiatives for the next presentations to follow.

Real estate works very well. We just reinforced the team.

I will come back on that as well to give some more color to what to expect and what we aim for. We made a lot of progress as well in the execution of our ESG strategy, and that ESG strategy is designed in a way that it supports the execution of the company's strategy as well, that there is not an opposite interest, which makes that, because, we all know that ESG is perceived a little bit differently on a political level and on the in the industry as we speak, but we continue with our program.

We defined what to do, we are able to measure all of that, we have SteerCos and subcommittees for each of the the E, the S, and the G's ongoing on, and so we are in full execution, and we are confident that the plan that we set up to 2032 and 2035, that we are on track to make that happen. Here a little bit more about a couple of other highlights as such, so that premiumisation strategy, which is one of the key contributors in the value creation, and as well one of the elements feeding our 5% exercise, because, yeah, we still become smarter and more sophisticated in cost management, but the 5% exercise comes more from new businesses and more revenue per visitor.

Successful opening of eight new IMAX screens, performing very well; four new ScreenXs, together we have now a portfolio of 29 ScreenX theaters, and we were able to set that up with a very limited investment as such; six new Laser ULTRA screens, our own PLF, which remains to be successful; and as well the the release of these concepts and products in new markets remain very successful, as well in the United States, where we will continue to roll out new ones. Further rollout of premium seating, we are working as well and testing as well in several theaters in the meantime with what we call Lux Loungers, a kind of daybeds on the first row, works very well.

Then themed theaters as well in collaboration and co-financing often with studios to promote and to give more experience around their movie, and often in the first week of release, is is something that is, yeah, making us, let's say, supporting us on social media essentially, and we clearly see that it attracts more customers. One of the flagships we have in France, Kinepolis Lomme, was completely renovated, very beautiful, we plan maybe to organize later on again a Capital Market Day, you will be able to discover it if we do it in Lomme.

As well, we are continuing with renovations and adding new concepts in the Canadian and American theaters. That's an image of such an, let's say, completely decorated, and the entrances are decorated as well for the release of Jurassic World, the collaboration with the studios, and, yeah, creating a lot of buzz around the movie, translating in more market share, the IMAX in Lomme, which is opened very successfully.

We continue to execute our strategy. The Kinepolis Innovation Lab Summit is supposed to, yeah, to to to make a start working and develop ideas that we will execute and that will contribute in the execution of our strategy two, three years later.

The concept is that everyone, every country sends in their idea, and so it's a little bit inspired on the the organization of the Eurovision Song Contest, it's the winning country organizes next year, every country can vote, there's a jury, and we have a an award for the most impactful idea, because, yeah, the smart idea is always good, but it's an idea needs to have impact, so that's what we stimulate. We have as well an award for the most creative idea, and we have as well an the prize of the jury and of the public, everyone can vote.

We combine that, of course, with a get-together and trying to explain a little bit better and what the next steps will be in execution of our strategy. We have external speakers and so on, but it's quite quite successful and very excited about that.

The first edition was very strong, so, yeah, then of course the bar is high, but the second was even stronger, and we are working for June on this third edition. It's essentially their ideas that we develop that we could roll out later on.

Coming from an idea box and groups that work on on projects, we we just feel that you have all the disciplines and all the talents in a country fighting together for that award. It it just makes it more effective.

Next time, I promise you, we will make you taste our Kinepolis beer, which is one of the results coming out of this. It's based on popcorn, Kinepils, exciting.

We released as well, together with Telenet and Play, Play Kinepolis, a TVOD platform, where there is only one goal for Kinepolis behind all of this, that is creating more awareness, more buzz around what we have on the screen, and so that's essentially the agreement we made with Telenet and Play. We will create a community of influencers.

The first candidates have been selected for that, and they will follow up on everything that's happening in and around a movie and expect those guys to meet as well in television programs like De Tafel van Gert or De Slimste Mens, essentially in and around Play. The only goal is to create more awareness, and essentially around mid-sized movies.

We have a couple of movies that will be released next week. Dust is the first movie based on the story of [Leen Dendievel?]

, later on the story about the disaster that happened in the Heysel. It are typically those kind of movies and other mid-sized movies, because, as I told you before, today we are essentially successful with mid-sized movies, which is very promising for the future.

The customer is discovering that more and more, but those movies don't come with big marketing campaigns from Hollywood. That's where we try in a smart way to support and create as much awareness as we can.

We appointed Hans Van Acker in a new position. He is he becomes or is has became Chief Strategic Businesses and Developments.

Hans was running Kinepolis Film Distribution for us, he will oversee from now on or since August he oversees and Kinepolis Film Distribution and Brightfish, but is responsible as well for new developments, and that would, let's say, take too much attention away from the daily business for the teams that operate and market our theaters, and the only goal is to to be able to come with an shorter time to market for new ideas, new concepts, and essentially where we would try to roll out faster new ideas within the company. That's the responsibility of Hans.

Hans is one of the inspiratives and guys behind Play Kinepolis as well, a quick start in his position. Tom is on board since the 1st of January.

Is an outsider who has been working for a long time and a lot of experience in real estate development. We call his position the real estate entrepreneur.

Essentially, he will be responsible for the third strategic pillar, where we already had an building and engineering team and a portfolio management team, but Tom will oversee that, and so his job is to redevelop, to monetize the underlying underlying, let's say, untapped capacity of our real estate. Could be outdoors: parkings, other pieces of land we have; or indoors, redeveloping excess capacity within our theaters as such.

Later on, we are working as well on a split, a soft split, but I told you before that we need first finalize and go live with our new finance ERP, but we plan in '27 to be able to give a little bit more transparency about the real estate portfolio next to the operational activity, and so Tom will be responsible for that real estate aspect. 2026, and we talked about that already two years ago, was an important year in terms of an important retail bond, €225 million coming to maturity end of this year.

In the geopolitical unstable world we're living in, we preferred already in '25 to start with a refinancing of the group. The first step was a renegotiation and an extension of our RCF that we expanded from €120 to €160 million and welcoming as well a new French bank, LCL, on board in in the club.

An RCF with possibilities to extend and in duration and in amount. That club financed already the acquisition of Imagine in the meantime as well.

Then we issued a retail bond end of the year, very successfully. We were in the market for €150 million for 5 years, and after 1 day, we had more than three and a half times more demand than what we could take.

A warming sign of confidence in the market about what Kinepolis and what the team is doing as such. Very important elements and steps for the group.

Here you see then the acquisition of Imagine, 14 theaters. We are very excited about that.

We were chasing after it already since 2019 that we were making the first offers. We, yeah, we made it happen last year.

It's been a long process, negotiation period of more than 6 months, and, yeah, then we we always go deep in our due diligences. We never had surprises in the past, and we want to try to keep it that way.

We acquired 14 luxury theaters in that way, good for 6 million visitors last year, and there's an overlap in terms of market with the theaters we have. As I already explained to some of you, if you would translate it in hotel terms, I think this is more a five-star hotel, while the MJR theaters we have is more the four-star, very well maintained, both circuits.

They they will live together and will keep both brands as well in that market, because we attract another customer with that. Completely reclined, very happy and tastes like more.

Stay tuned. I think it's the first acquisition again in post-pandemic of this size for us, but as well in the industry, it's the biggest transaction in the industry since the pandemic.

We were quite active pre-pandemic, we have clearly the ambition to continue again, and on the path of the pre-pandemic, we do have the balance sheet, we do have the team, that's one of the reasons why we are reinforcing our teams. Not announcing anything, but stay tuned.

Here the rationale behind this: healthy and well-maintained asset, very complementary as well, already very fact- and figure-driven, don't ask me immediately what the improvement potential will be. We will have integration potential, of course, we will have improvement potential, but it's always difficult to find out what is the starting point for a target, how well is it already going, what else can you do, but there's certainly improvement potential.

We bought it at a very conservative multiple compared to pre-pandemic level, we are as well there absolutely excited about the immediate, yeah, contribution to shareholder value creation that it will bring. That's the new footprint then with 14 theaters more, 170 screens on top.

Then the dividend for 2025 result, payable in 2026. We have decided together with the board to increase our dividend by €0.10 per share, bringing it up to €0.65 per share, and that's what will be proposed to the general assembly, and is as well as a sign of confidence in the future, sign of strength, and a sign of thank you to our shareholders.

That's pretty much from my side what I had to tell you, and so I'm giving the floor to Pieter-Jan, who will walk you through the financials. Thank you very much.

Good afternoon everybody and welcome from my side. The financials.

You have been seeing, Eddy has been talking a lot of activities, actions, we have not been laying back in '25, a lot of things have been done that also resulted in our financial performance, which includes a lot of dynamics. Revenue-wise, in that background of that drop of 5.8%, we also dropped in revenue.

If we go deeper in that revenue decline, you see our cinema operations still accounts for 83% of our total sales, of which 51% is box office. That drop had a significant impact in our sales.

In total, sales of cinema operations went down €50 million, but in that €50 million, we had a drop of almost €31 million related to lower visitors. That is the result of that minus 5.8%.

Nevertheless, we managed to almost compensate that fully by increasing our prices to compensate for inflation, but also the increase in premiumisation helped us to compensate part of that drop in sales. On top of that, also we saw quite a nice spend per visitor in our shops.

A lot of actions going on in our shops. One of them that is very successful is the themed popcorn buckets, which also helps us in increasing our spend per visitor.

Some small impacts from scope changes, and then an important element, certainly as visitors are not impacted by FX translations, if we translate our Canadian and American dollar to euros, it is. There you see an impact of €11.1 million on our sales, which is quite significant.

Excluding that, our revenue is almost in line with last year. Our other activities, B2B did quite well.

Brightfish, our screen advertising activity, also had an increase, which is not a big activity, but the €700,000 is quite significant for that activity. Film distribution also had an increase.

The successful release of Paddington in Peru contributed to that. Then our real estate, also inflation and less vacant spaces also resulted in an increase of around €300,000, which is in the total not huge, but it's an increase, it's important.

Diving further, one of the KPIs, there's a lot of things we control, there are also a lot of things we don't control. The things we control actually we succeeded in, that's the spend per visitor, increasing our prices to compensate for inflation, and that's what you see here.

If you see on the left side and right side, you see the increase in spend per visitor in box office and in ITS. You see that we went up with 2.3% for box office per visitor and 3.6% even for ITS per visitor from '24 to '25.

If you exclude also here that impact of a weakening dollar and Canadian dollar, then even our box office per visitor went up 4.4%, and even our ITS spend, which is an impressive increase of 6.3%. We really saw a nice spend there by our customers in the shops throughout our group.

More important, profitability, rentability, EBITDA, EBITDAL, also here, despite the background of the drop in visitors, we maintained our EBITDA percentage almost, at 28.8%, equaling last year, and even on our EBITDAL performance, we almost reached the same level of 23% on sales this year. Also here we had an impact which is quite significant, that we almost had an impact of around €3 million of the weakening dollar and Canadian dollar, as our operations are quite significant also in Canada and America, and will become more significant after the acquisition of Imagine.

Bringing us to the net result, there, virtually almost in line, a little bit lower at €41.1 million adjusted net result. We consider this as certainly in that drop of visitors as a performance we can be proud on.

Yes, all those actions that cost of course money. One important part is our maintenance program where we try to keep our complexes very up to date, also important in the whole experience that we strive for.

There, again a nice program, around €23 million we invested, a little bit more than last year. Then further also the expansion, internal expansion mainly: IMAX, ScreenX, premium seatings, renovation of shops, it all costs money.

There we spent around just €20 million, almost million dollars. Also investments that will return us some additional EBITDAL going forward.

Important to keep on investing. Despite increased investments, despite a little lower EBITDAL, we still show steady operating cash flows, €70 million for '24, a little bit less than '24, but in '24 we had a bit of tailwind as we had a huge benefit from improved working capital.

In '25, our working capital is at the same level, we didn't had that one-off improvement, so as such we didn't have that tailwind. Nevertheless, given the slightly lower EBITDAL, we still have €70 million of operating cash flow and showing a cash conversion of 55%, in line with '23.

That allows us, of course, to lower our debt from €319 to €287 [million], so, yeah, a nice deleveraging again, which brings us to a leverage today, according to the calculation of our RCF, at 2.1, 2.1, so that's a nice decrease versus last year, where we ended the year with 2.25. We did have some challenges in maturity profile and in refinancing, three important milestones in 20 in '25 to cope with that.

You also see that in today the cash availability we have, but also the liquidity headroom. That gives us enough room and flexibility, end of the year we had a liquidity headroom of almost €320 million, so that allows us also to further invest and also partly cover the maturing private placement end of December of €225 million.

We also repaid two private placements in the course of '25, one of €34.6 million, to be exact, in January, and then we had another repayment in December '25 of €60 million. Proving our maturity, how did we do that?

Three important elements. The first one that Eddy mentions is the RCF, on the one hand we increased it from €120 to €160 [million] at quite good terms and competitive terms, maturity there of 5 years, possible extension of 2 years.

Another one that actually is under the RCF documentation, that we financed the acquisition with €100 million with a 6-year amortizing loan, also spreading our maturity. Then, of course, the last thing where we are very proud on is the successful issuance of the retail bond, 5-year maturity, €150 million is what we did, very proud of that.

Brings us to the summary. What is important?

Our adjusted EBITDAL per visitor, we keep on increasing that. We went from €4.08 per visitor to €4.18, another nice increase.

This is not a given, this is the result of hard work and keeping our costs under control, returning then an EBITDAL a little bit lower than '24, but still at a very decent €128.2 million, and a net loss that almost equal with '24. On the other KPIs also we kept them more in line with '24: return on capital employed, our solvency even improved without IFRS 16, we went to 28%.

If we look at our balance sheet today, we find it's a very healthy situation in terms of leverage, in terms of structuring of the balance sheet, which gives us room to do more in terms of capital allocation, meaning, okay, expansion internal or external. Which brings me already to the end, but maybe more important, the outlook for '26.

Eddy, what do you have in store?

A lot this time. The rest of the release calendar for this year looks at least on paper, you know that we are always prudent and don't do too much predictions, but look, if you don't have anything to be released, you won't do anything with it.

We have a lot to be released this year and very exciting movies to come, but in the meantime, we had really a very strong start of the year. Still 10 and a half months to go, I know, but today we have in the top five movies for the month like Marsupilami, Goat, Heights, still Zootopia and Avatar, Nuremberg is going very strong, we see as well more and more, let's say, appetite for those mid-sized movies, and we are thinking as well how could we in the future even create more awareness and support the release of such movies better.

We are working on a little bit restructuring of our box office sales and marketing organization, but the Play Kinepolis initiative I was talking about fits into that as well. This is not for the first time that we show you that slide, but that self-learning organization, 5.8% less visitors, almost the same revenue and result, takes that first box, and we are still going strong in what we call internal expansion and often those premium concepts with rather short paybacks and rather high returns on investment.

I can tell you, and that's some color we give every year as well, that the 2026 profit plan again has been based on an approach, not as a target again, but as an approach: 5% less tickets must result in the same EBITDAL. Exciting to see that after all those years, the talents we have been developing on the floor succeed to come with ideas, approaches to compensate that 5% visitors.

Of course, we have a strong and important operational leverage that goes in both ways, if this year we would be more successful in top-line growth in a like-for-like basis, that would be very exciting. External growth, there our ambition is clear to come back to the rhythm of pre-pandemic.

I'm not announcing anything, but it's just like the movies you have on your billboards. If you don't have movies, you'll have nothing to show.

If you're not working on opportunities, you won't do nothing. We are working on opportunities.

Will we succeed? God knows.

We will let you know as soon as we will be committed on these, but it's clear for us that we want to come back to the rhythm of expansion of the group of pre-pandemic. I think that Pieter-Jan demonstrated as well that we have the strength to go for that.

Maybe a brief industry update. We have been consulted a lot by the press and essentially the international press on if we do have a preference for Paramount or Netflix buying Warner Bros.

Only thing that we observe and that we explained before is that, yeah, the dynamic that Hollywood is rediscovering is that if you succeed to amortize your investment in a movie in a theatrical window, that you support your after-theatrical windows, not only in terms of success, word-of-mouth is created in a theatrical window, but as well from a financial point of view. Most of the streamers, their platforms are very successful, but are not that profitable.

It took Netflix 15 years to become cash break-even, and most of those platforms are not cash break-even. If you succeed to amortize your movie in a theatrical window, you resolve your profitability issue on your streaming platform.

It's not a coincidence that companies and smart people like Amazon and Apple, who had nothing to do with studios or with cinema before, come into our market to bring us content. We are more than happy that the Formula One movie last year for Apple was their first in success, and so both studios are working on more.

I guess that, yeah, that's the rationale as well behind the move of Netflix. I don't know if I would pay $83 billion for a back catalog or for studio capacity, because that's a variable cost for them.

145 million extra subscribers, of which 80% overlap, I don't know. I think that they just want to participate in the economic model that if you can already amortize your most expensive content, blockbuster movies, into a theatrical window, that it opens, of course, for them the world to join a business model that makes the platform only even more profitable.

Skydance and Paramount have another approach, just more capacity. If you ask me, I think that it will take more a couple of months still before we will know who will be the winner.

I expect new bids to come, but that's going on, that's not so new. Antitrust authorities will need to do their thing into this, but one thing is certain, and that's what all the studios rediscovered: word-of-mouth is created in a theatrical window, and that's something that we all concluded since Black Widow that failed completely on premium VOD.

You make your money in a theater and you resolve your profitability problem of your home entertainment platform through a theatrical release, and so that's what is going on, that's what is happening today. Paramount is recapitalized in the meantime, as the plan to come with more content in the coming months already, and they told us that they started immediately, even before the closing of the deal, and that 18 months from thereon they would expect to come with more content.

Warner will be recapitalized as well. To give you an idea, and that's an information we didn't had coming out of the pandemic, we all thought, okay, it's two years, two years and a half, extended by the strikes, and we will be back in content lineup.

Little did we know that most of the studios, essentially those who invested in streaming, came out from a financial point of view very weakened. Talking to the executives of Warner Bros.

who were releasing 23, 24 movies pre-pandemic, told us two years ago, we don't have the capacity financially to go over 14, 15. That's the recapitalization that is going on right now, and we will probably end up with more capacity if you look as well at the studios below the line.

Yeah. Hopefully that '26 will demonstrate for the first time the impact of all this and followed by '27.

We will probably at the end of the year organize again a Capital Market Day and visiting some of the studios and explaining them as well that they need to be more vocal and be more transparent on what's coming from their side. Two of them already committed to join for that Capital Market Day, and that would be very exciting, of course, if you could hear both sides of the globe, we call them those from the dark side.

If they could come out on our side to explain what's going on, that would be very exciting, so that's what we will plan end of the year. Let's now look at what is coming up for next year and then we are ready for your Q&A.