19 July 2016 - Vue International › uploads › Corporate › Q2 2016... · 19 July 2016 Lenders Presentation First Vue branded site in the Netherlands opened in Alkmaar in February

19 July 2016

Lenders Presentation

First Vue branded site in the Netherlands opened in Alkmaar in February 2016

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Important Information

IMPORTANT: You must read the following before continuing

PRESENTATION OF FINANCIAL DATA

This presentation should be read in conjunction with the Vougeot Bidco plc (“Bidco”) Quarterly Report (the “Report”) to Noteholders for the period ended 26 May 2016 (“Q2 2016”) released on Tuesday 19th July 2016 and in particular the statements made on page 2 of the Report (which are incorporated into this presentation). This report is available on our website at http://corporate.myvue.com/home/investor-relations

This document and the information contained herein (the “Company Presentation”) has been prepared solely for the purpose of discussions between Bidco, its advisers and certain lenders in relation to the proposed transactions referred to in this Company Presentation and should not be used by any recipient (each a “Recipient”) for any other purpose. The Company Presentation is not intended to be (and should not be used as) the sole basis of any credit analysis or decision or other evaluation, it does not purport to be all-inclusive or to contain all of the information that a prospective participant may require and should not be considered as a recommendation by any person that any Recipient should participate in any transaction described in this Company Presentation (or any other transaction). In receiving and retaining the Company Presentation, you are deemed to have accepted and agreed to the terms hereof.

None of Bidco, or any of its respective affiliates, makes any representation or warranty that the Company Presentation is sufficient for any such credit analysis or decision.

The Company Presentation, and any proposals contained in the document, are indicative only, they are not binding, do not create any legal obligations, do not constitute or act as an inducement to enter into any contract or commitment and should not be considered as an offer, or invitation or recommendation by Bidco or its affiliates to participate in the proposals.

The information in the Company Presentation has not been independently verified, and it should not be relied upon and the information in this document addresses certain specific circumstances as at the date they were prepared. No representation or warranty (whether express or implied) is given by Bidco or any of its affiliates or its affiliates’ respective directors, officers, employees, agents, partners, representatives or professional advisers make any representation or warranty or undertaking of any kind, express or implied, nor do they accept or assume any responsibility or liability of any kind as to the correctness or completeness of this Company Presentation in particular in respect of forward-looking statements, including the achievement or reasonableness of management estimates, opinions, targets or other future projections. Any such forward-looking statements or future projections are subject to various risks and uncertainties, many of which are difficult to predict, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements and future projections. Accordingly, there can be no assurance that any estimates, targets or projections are attainable or will be realized. In the event any of the assumptions used in this Company Presentation do not prove to be true, results are likely to vary substantially from those discussed herein.

The delivery of this Company Presentation to any person at any time after the date hereof does not imply, and is not intended to imply, that the information contained herein is correct at any time after the date of this Company Presentation or that there has been no change in the business, financial condition, prospects, credit worthiness, status or affairs of Bidco or its affiliates since the date of this Company Presentation.

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Agenda and Today’s Speakers

Section 1: JT Bioscopen Acquisition (Q3 FY2015)

Section 2: JT Bioscopen Acquisition Refinancing (Q3 FY2016)

Q&A

Tim Richards CEO

Alan McNair Deputy CEO

Steve Knibbs COO

Alison Cornwell CFO

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Agenda



Q&A

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Transaction Rationale Continuation of Vue’s Strategy to Expand Into Attractive European Markets

• Expansion into an attractive and growing market

– The Netherlands has seen growing admissions, GBOR and screen / site figures over the last decade

– Screen penetration still remains below most Western European markets

• High-quality asset with strong management in place

– JT Bioscopen’s circuit is well-maintained and has been at the forefront of technological development

– Enthusiastic, smart and motivated senior team with significant experience in the sector

• Significant value creation opportunity

– Vue will generate additional value through areas including pricing strategies, procurement, EEC and further new site development

– Business integration followed a process similar to the “100 day plan” which was successfully adopted for The Space Cinemas

• Strengthening of Vue’s position in the European Cinema market

– Successful track-record of identifying and integrating acquisition opportunities

– Transaction strengthens Vue Group’s position in Europe with presence in ten countries, 210 sites and 1,866 screens at the end of May 2016

– Further reduces slate risk through international diversification

Reinforce Vue Positioning in the European Market…

# of Screens (Latest Reported)

1,753

2,238 2,011 1,866

1,008

504 499 491

…While Ensuring Further Geographic Diversification

Revenue by Country (Pro-forma FY2015)

48%

25%

9%

17%

1%

UK & Ireland Germany & Denmark Poland & Baltics

Italy Netherlands Taiwan

46%

23%

8%

17%

5%

1%

Source: Company Data

Includes 113 screens from JT

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4.8

12.5

4.6 7.1 8.6

5.7 10.7

6.3 6.2 8.4

5.5 8.6 8.6 6.8 5.9

NetherlandsUSA

BelgiumDenmark

FranceGermany

IrelandItaly

LuxembourgNorway

PortugalSpain

SwedenSwitzerland

UK

Attractive and Growing Dutch Cinema Market Growing Admissions, GBOR and Screen / Site Over the Last Decade

Source: Dodona, IHS, Euromonitor (1) Admissions, GBOR and Screens data from Dodona to FY2013. Data for 2014 and 2015 from IHS (2) Screens per capita data per IHS and Eurostat (2015) (3) Average ticket price

• Dutch admissions have shown an upwards trajectory over the last 11 years, whereas other Western European countries, including the UK and Germany, have remained broadly flat with annual spikes / troughs driven by the film slate

• Screen / site numbers have also been increasing with a net 177 screens having been added, an increase of 28.4% since 2004, an average of 16 screens each year

• Despite the increase, screen penetration levels remain below almost all other Western European markets at 4.8 screens per 100k population, compared to 5.9 in the UK and 5.7 in Germany, indicating potential for further roll out

• The average number of cinema visits per person per year has increased across the same period to 2.0 as of 2015, well below France (3.1) and the UK (2.7), and broadly in line with Belgium (1.9), Sweden (1.8), Germany (1.7) and Italy (1.6)

• Market ATP(3) is comparable to the UK and Germany, higher than the majority of other markets in which Vue operates and higher than France and other Benelux markets

Admissions (m) (1)

23.0 20.6 23.4 23.1 23.5 27.3 28.2 30.5 30.6 30.8 30.8 33.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GBOR (m) (1)

Screens (1)

Screens per 100k Population (2)

154 135 156 160 165 201 219 240 245 250 250 276

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

623 625 629 630 649 661 707 721 738 756 771 800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

+177

+122

+10

Average: 7.4

2.3% CAGR ’04-’15A

5.4% CAGR ’04-’15A

3.3% CAGR ’04-’15A

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Strong Contribution & Diversification from Local Content Nearly 20% of GBOR in the Netherlands Is Generated Through Local Content

Source: Screen Digest, NVB / NVF

• Netherlands, in keeping with most European territories, has developed in recent years a vibrant local film production industry that supplies successful commercial local language films to the market

• Local productions are supported by the Netherlands Film Fund, which has provided over €30m per annum over recent years, mainly to fund Dutch movie productions, as well as other areas including distribution. In 2014, the Dutch Government announced a new incentive adding an additional €20m of annual funding

19% 15%

42%

23% 28%

19%

22% 22%

NetherlandsBelgium

FranceGermany

ItalySpain

SwedenPoland

Local Content Penetration across Europe Average 2011 to 2015

Average: 23%

Dutch GBOR €m Admits m

1 Alles is Familie 5.2 0.64

2 Mees Kees 3.9 0.57

3 Allen Maar Nette Mensen 2.6 0.32

4 De Marathon 2.3 0.29

5 Achtse Groupers Hulien Niet 2.0 0.28

Other 21.2 2.89

Total 37.2 4.99

International

1 Skyfall 17.1 1.98

2 Intouchables (France) 9.7 1.21

3 The Hobbit 8.2 0.79

4 Ice Age 4 7.5 0.88

5 The Dark Knight Rises 6.9 0.76

Other 158.8 20.04

Total 208.2 25.66

Total Dutch and International 245.4 30.65

Dutch Proportion % 15.2% 16.3%

2012 2013

2014 2015


1 Verliefd op Ibiza 5.8 0.71

2 De Nieuwe Wildernis 5.2 0.69

3 Spijt 3.1 0.42

4 Mannenharten 3.1 0.38

5 Soof 2.5 0.31

Other 28.3 3.82

Total 48.0 6.32

International

1 The Hobbit 2 8.1 0.78

2 Despicable Me 2 7.7 0.92

3 The Hunger Games 2 5.9 0.68

4 Fast & Furious 6 5.3 0.62

5 The Smurfs 2 5.1 0.63

Other 169.3 20.85

Total 201.4 24.48




1 Gooische Vrouwen 2 10.1 1.18

2 Toscaanse Bruiloft 4.5 0.56

3 Soof 3.8 0.47

4 Pak van mijn Hart 3.4 0.42

5 Hartenstraat 3.2 0.40

Other 24.1 3.38

Total 49.0 6.41

International

1 The Hobbit 3 8.5 0.83

2 Wolf of Wall Street 5.9 0.67

3 The Hunger Games 3 5.7 0.67

4 Rio 2 4.7 0.58

5 How to Train Your Dragon 2 4.3 0.53

Other 171.6 21.06

Total 200.8 24.35




1 Gooische Vrouwen 2 6.8 0.81

2 Michiel de Ruyter 5.9 0.69

3 Ja, Ik wil 3.1 0.37

4 Bon Bini Holland 2.6 0.31

5 Bloed, Zweet en Tranen 2.3 0.28

Other 13.8 1.9

Total 34.5 4.31

International

1 Spectre 19.1 2.04

2 Minions 12.9 1.58

3 Jurassic World 9.9 1.00

4 Fast & Furious 7 9.1 0.86

5 Star Wars: The Force Awakens 8.4 0.96

Other 178.0 21.06

Total 237.5 27.98



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JT Bioscopen – Market Overview

JT Bioscopen Is the #2 Player in the Netherlands - 2015

Number of Cinemas 22 21 13

Number of Screens 174 113 78

Number of Seats 36,093 21,054 15,073

Avg. Screens / Site 7.9 5.4 6.0

Avg. Seats / Screen 207 186 193

Market share (GBOR) 41.1% 12.4% 8.2%

Market share Rank #1 #2 #3

• Concentrated market with top 3 players with a combined market share of c. 62% of GBOR:

– Pathe (4th largest operator in Europe) is the #1 operator with a 41% GBOR market share. Primarily focused on main metropolitan hubs (Amsterdam and Rotterdam)

– JT Bioscopen (now Vue Netherlands) is the #2 operator with 21 sites, 1 fewer than Pathe. However, JT Bioscopen’s GBOR market share at 12.4% is lower driven by a fewer number of screens per site, lower number of seats per screen and due to Pathe having more IMAX (5) and 3D screens driving higher admissions prices

– Kinepolis (Belgium's largest operator) is the #3 operator with 13 sites and 8.2% GBOR market share. Kinepolis Netherlands circuit is an amalgamation of Wolff Cinemas and Utopolis cinemas

JT Bioscopen Locations

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JT Bioscopen – New Site Development & Re-Branding

JT Bioscopen is being re-branded Vue

Vue Kerkrade

Vue Hoorn

Vue Hilversum

Vue Alkmaar – just before opening in February

• The roll out will be complete by October 2016 • Rebrand includes new signage (internal & external), re-decoration,

new carpets where required, digital point of sale and new uniforms

JT Bioscopen Development

• JT Bioscopen is the #2 cinema operator in the Netherlands with 21 sites, 113 screens and 12.4% GBOR market share

• JT Bioscopen has grown quickly opening 46 screens in the last five years, equal to 36% of total screens opened, solidifying its position as the second largest player in the market

• JT Bioscopen is looking to build on successful recent new site openings such as Hilversum, Hoorn, Eindhoven and Alkmaar while developing further new opportunities

• New site development strategies include:

– Replacement of existing older sites with new multiplexes, as was the case in Alkmaar

– New sites where there are primary growth opportunities

– Vue would like to have new sites in high population density areas where there is still an under supply of new, modern multiplexes. This could include Amsterdam and Rotterdam where JT have been under represented to date

• New site opening in Alkmaar in February 2016 – replacement of an old 5 screen cinema with a new 7 screen stadium seated multiplex on outskirts of town centre

– First cinema branded Vue in the Netherlands as part of brand change

– Introduction of Vue’s highly successful VIP seat along with the newly introduced Recliner seats

– New retail concepts with more products available and with self-serve options

– Cinema admissions have grown over 100% compared to prior year with the old cinema

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JT Bioscopen Progress Post Acquisition

• Vue Brand – decision taken to re-brand the JT Bioscopen brand to Vue. ‘JT Bioscopen’ was not a well established cinema name in the Dutch market as the circuit was an amalgamation of different circuits over the past few years

• VIP Seating – is being rolled out to all Vue Netherlands sites. Project will be complete by September 2016

• Additional Screens – Vue has identified opportunities at 10 sites to add c.14 screens with no increases in property costs

• Lease Re-gears – we are negotiating with the leading landlord in the market to re-gear several sites with new leases and capital investment support to improve business performance

• Procurement – Vue Group Procurement Executive working with local management to realise savings in procurement of items such as beer, soft drinks and tea. Further savings will be realised as other contracts expire

• Pricing – we are introducing successful Vue pricing strategies such as regional pricing, Kids shows, Blockbuster and Life Cycle pricing and seat layout optimisation

• Head Office – in June 2016 the local team relocated from temporary space inside the cinema at Amersfoort (45 minutes from Amsterdam) to central Amsterdam allowing easier access to film distributors and suppliers and better working conditions

• Operational Efficiencies – Vue is working with local management on staffing and energy usage efficiencies with the same operational Best Practice model applied successfully in other territories

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JT Bioscopen: Performance Over Time

Source: Company Information

FY2014 – H1 FY2016: Income Statement and KPIs

• Growth in 2015 driven by strong slate including local title Gooische Vrouwen 2 which was released in Q1 2015

and generated €16m market GBOR to be #4 title of all time in the Netherlands and Spectre which was released

in Q4 2015 and became #1 title of all time in the Netherlands

• During the period above the old five screen Meppel site closed in Q1 2015 and several new sites were opened

including; Hoorn in Q3 FY14, Hilversum in Q4 2014, Eindhoven in Q1 2015 and the new Alkmaar site replaced

the old Alkmaar site in Q1 2016

€m, FYE Nov FY2014 FY2015 H1 FY2015 H1 FY2016

KP

Is

Admissions ('000s) 3,075 3,920 2,181 1,992

Number of Sites 21 21 21 21

Number of Screens 105 111 111 113

ATP (€) 7.93 8.43 8.31 8.69

SPP (£) 3.72 3.87 3.79 4.02

Total Revenue Per Person (£) 12.38 13.16 12.91 13.60

P&

L

Revenue 38.1 51.6 28.2 27.1

Gross Profit 23.5 32.2 17.6 16.8

Gross Profit % 61.7% 62.4% 62.7% 62.0%

Operating Expenses (Excl. Rent) (10.3) (12.3) (6.6) (6.3)

EBITDAR 13.2 19.8 11.0 10.5

EBITDAR % 34.8% 38.5% 39.2% 38.9%

Rent (7.0) (8.5) (4.2) (4.4)

Company EBITDA 6.3 11.3 6.8 6.1

Company EBITDA % 16.5% 21.9% 24.1% 22.6%

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Agenda



Q&A

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The purpose of the current transaction is to raise a €120m Cov-Lite Term Loan B to fund the consideration for the

acquisition of JTB into the Restricted Group and raise a strategic reserve

• The New €120m Cov-Lite Term Loan B will rank pari passu with existing senior secured notes and be borrowed

within the restricted group

– The new term loan will have a 7-year maturity

– The loan documentation will be based on the existing super senior RCF documentation

– Covenants and baskets will mirror the existing bonds

• Excess proceeds above the JTB acquisition consideration provide a strategic reserve for liquidity, general

corporate purposes and small in-territory bolt-on opportunities

• Adjusted for the JT Bioscopen acquisition, LTM to May 2016 EBITDA increases from £130.2m to £138.0m and Pro

forma net leverage increases from 4.2x to 4.4x

• Simultaneous with the proposed transaction we have also agreed an increase in the committed size of the

existing super senior RCF from £50 MM to £60 MM whilst also allowing our existing €15 MM local Italian facilities

to expire

• Vue's existing corporate ratings are B2/ B which have remained unchanged since its acquisition in 2013

Transaction Overview

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(1) EUR/GBP of 1.3148 as at end of Q2 2016 (2) Cash on balance sheet as of May (3) Q2 2016 as of May

Sources & Uses and Capitalisation Table

14

Sources and Uses (1)

Sources €m £m Uses €m £m

New Cov-Lite Term Loan B 120.0 91.3 Refinance JTB Bridge 91.0 69.2

JTB/Midco Cash on Balance Sheet (2) 7.1 5.4 Illustrative fees & expenses 3.0 2.3

Cash on Balance Sheet 33.1 25.2

Total Sources 127.1 96.7 Total Uses 127.1 96.7

Vue Current and Pro Forma Capital Structure

YE Nov £m

x LTM

EBITDA £m £m

x LTM

EBITDA Rating Margin Maturity

Unrestricted Cash (49.9) (0.4x) (25.2) (75.1) (0.5x) - - -

Super Senior RCF Drawing (£60m) - - - - - - - Jul-19

Vue Senior Secured Notes (£300m) 294.6 2.3x - 294.6 2.1x B2 / B 7.875% Jul-20

Vue Senior Secured Notes (€360m) 265.1 2.0x - 265.1 1.9x B2 / B E+525 Jul-20

Cov-Lite Term Loan B - - 91.3 91.3 0.7x - E+550 7 year

Unamortised Financing Fees (0.7) (0.0x) (2.3) (3.0) (0.0x)

Other Debt 36.4 0.3x 1.5 37.9 0.3x - - -

Total Gross Debt 595.4 4.6x 685.9 5.0x

Total Net Debt 545.5 4.2x 610.8 4.4x

LTM EBITDA 130.2 7.9 138.0

Q2 2016 Vue Standalone ( 3 ) Adj. Pro Forma for JTB Consolidation

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Simplified Transaction Structure

New €120m Cov-Lite Term Loan B

Vougeot Holdco Limited

Vougeot Finco Limited

Vougeot Midco Limited

Vougeot Bidco Plc

Vue Entertainment International Limited

Vue Holdings (Jersey) Limited

Vue Holdings (UK) Limited

Vue Entertainment Investment Limited

Vue Entertainment Holdings Limited

Vue Entertainment Holdings (UK) Limited

Vue Entertainment Limited

Tulip UK Newco

Vue Nederland B.V.

Jogchem’s Theater B.V.

Other Subsidiaries

Dutch Subsidiaries

Restricted Group

Facilities secured and guaranteed on a pari passu basis

£60m Super Senior Revolving Credit Facility

£300m Senior Secured Notes

€360m Senior Secured Notes

Proceeds Loan

Steps: 1. Tulip UK Newco is incorporated (or acquired off-

the-shelf) by Vue Entertainment Limited and becomes a member of the Restricted Group

2. Vougeot Bidco PLC borrows TLB €120m 3. Vougeot Bidco PLC lends the proceeds of TLB to

in an amount equivalent to the acquisition price to Tulip UK Newco

4. Tulip UK Newco uses the proceeds to acquire the shares in (and loan receivables against) Vue Nederland B.V. from Vougeot Midco Limited

5. Vougeot Midco Limited applies the proceeds received from Tulip UK Newco towards repayment of the existing JT debt

6. Transaction costs paid by Vougeot Bidco Plc

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Borrower • Vougeot Bidco Plc

Guarantors • As per existing notes

Purpose • Refinance existing debt at JTB, pay transaction expenses, general corporate purposes

Existing Corporate Rating • B2 / B

Ranking • Pari passu with existing notes

Security • As per existing notes

Majority Lenders • 50.1%

Mandatory Prepayments • As per existing notes (no excess cash flow sweep)

Covenants • As per existing notes

Governing Law • English law provided New York law for covenants and event of default (where these follow existing notes)

Voluntary Prepayments • As per RCF

Joint Bookrunners • Morgan Stanley (Co-ordinator), Lloyds Bank PLC

Admin Agent • Lloyds Bank PLC

Security Agent • Lloyds Bank PLC

Intercreditor Principles • As per existing notes

Type and Amount

Term Loan B

Amount

€120m

Maturity (Years)

7.0

Floor

0.00%

Repayment

Bullet

Ranking

1st Lien Sr Secured

Interest

Floating

Initial Margin

E+550

16

Optional Redemption • Soft call @ 101 for 6 months

Summary of Key Terms

OID

99.5

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Q&A

Further questions can be addressed to

[email protected]

[email protected]

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Appendices

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Vue Financial Information – Performance Over Time (Excluding JT Bioscopen)

FY2014 – H1 FY2016: Summary Financials

UK GAAP IFRS

£m, FYE Nov FY2014 FY2015 FY2015 H1 FY2015 H1 FY2016

KP

Is

Admissions (m) 76.2 81.2 81.2 43.2 42.2

Number of Sites 187 189 189 188 189

Number of Screens 1,737 1,753 1,753 1,748 1,753

ATP (£) 5.70 5.65 5.65 5.60 5.97

SPP (£) 1.88 1.88 1.88 1.85 1.96

Total Revenue Per Person (£) 8.66 8.60 8.60 8.47 9.05

P&

L

Group Revenue 660.3 697.9 697.9 365.7 381.8

Gross Profit 413.0 431.8 431.8 227.1 236.7

Gross Profit % 62.5% 61.9% 61.9% 62.1% 62.0%

Operating Expenses (Excl. Rent) (194.6) (191.7) (191.7) (95.6) (100.8)

EBITDAR 218.3 240.1 240.1 131.5 135.9

EBITDAR % 33.1% 34.4% 34.4% 36.0% 35.6%

Rent (126.4) (122.3) (114.2) (57.9) (58.1)

Company EBITDA 91.9 117.8 126.0 73.6 77.8

Company EBITDA % 13.9% 16.9% 18.1% 20.1% 20.4%

Cas

h F

low

Capex (26.1) (19.5) (19.5) (10.0) (12.8)

Operating Cash Flow 47.8 84.6 84.6 42.0 30.9

External Net Debt 564.8 497.4 528.9 555.2 545.5

Gross Leverage (x) 6.8x 4.6x 4.6x 5.3x 4.6x

Net Leverage (x) 6.1x 4.2x 4.2x 5.1x 4.2x

EUR/GBP 1.24 1.38 1.38 1.40 1.30

19

R: 0 G: 32 B: 96

R: 0 G: 112 B: 192

R: 197 G: 217 B: 241

R: 255 G: 192 B: 0

R: 237 G: 145 B: 49

R: 112 G: 173 B: 71

R: 193 G: 42 B: 42

R: 217 G: 151 B: 149 20

Vue Financial Information – Capital Structure and Leverage Development (Excluding JT Bioscopen)

£m, FYE Nov Q4

FY2014 Q1

FY2015 Q2

FY2015 Q3

FY2015 Q4

FY2015 Q1

FY2015 Q2

FY2015 Q3

FY2015 Q4

FY2015 Q1

FY2016 Q2

FY2016

Sterling fixed rate notes (net of unamortised financing costs under IFRS)

300.0 300.0 300.0 300.0 300.0 293.3 293.5 293.8 294.0 294.3 294.6

Euro floating rate notes (net of unamortised financing costs under IFRS)

285.1 262.8 256.4 263.0 252.9 251.7 246.0 253.4 244.2 275.2 265.1

Revolving Credit Facility 18.1 - 0.3 5.3 - - 0.3 5.3 - - -

Finance Leases and other loans 36.4 4.9 4.5 3.9 3.4 41.2 39.5 38.7 36.0 39.1 36.4

Unamortised financing fees (17.6) (16.8) (16.0) (15.3) (14.5) (1.0) (0.9) (0.9) (0.8) (0.8) (0.7)

Total external debt net of fees (£m) 622.1 550.9 545.2 556.9 541.8 585.2 578.4 590.4 573.4 607.8 595.4

Cash 61.3 41.1 26.9 25.5 49.9 41.1 26.9 25.5 49.9 78.0 55.8

Restricted cash (4.1) (3.8) (3.7) (4.7) (5.5) (3.8) (3.7) (4.7) (5.5) (6.1) (5.9)

Unrestricted cash and cash equivalents (£m) 57.3 37.4 23.2 20.8 44.4 37.4 23.2 20.8 44.4 71.8 49.9

Total external net debt (£m) 564.8 513.5 522.0 536.1 497.4 547.8 555.2 569.6 528.9 536.0 545.5

Gross leverage (x) 6.8x 5.9x 5.4x 5.3x 4.6x 5.7x 5.3x 5.3x 4.6x 4.5x 4.6x

Net leverage (x) 6.1x 5.5x 5.2x 5.1x 4.2x 5.4x 5.1x 5.1x 4.2x 4.0x 4.2x

LTM Pro Forma Consolidated EBITDA (£m) 91.9 93.7 100.5 104.1 117.8 102.1 108.7 112.3 126.0 134.6 130.2

• Significant increase in LTM EBITDA from £91.9m at the end of FY2014 to £117.8m at the end of FY2015 (both

on a like for like UK GAAP basis)

• Further increase in LTM EBITDA under IFRS from £126.0m at the end of FY2015 to £130.2m at Q2 FY2016

• Reduction in Net Leverage to 4.2x at the end of Q2 FY2016 from the peak of 6.1x at the end of FY2014

• Impact of conversion from UK GAAP to IFRS leverage neutral (EBITDA higher due to lower rent costs, debt

higher due to certain leases being accounted for as finance leases rather than operating leases)

UK GAAP IFRS IFRS

20

R: 0 G: 32 B: 96

R: 0 G: 112 B: 192

R: 197 G: 217 B: 241

R: 255 G: 192 B: 0

R: 237 G: 145 B: 49

R: 112 G: 173 B: 71

R: 193 G: 42 B: 42

R: 217 G: 151 B: 149 21

Vue At A Glance As At 26 May 2016

As at 26 May

2016 UK & Ireland

Germany &

Denmark

Poland &

Baltics (1) Italy Taiwan Netherlands Group

Sites 84 33 35 36 1 21 210

Multiplex % (2) 98.8% 97.0% 94.3% 100.0% 100.0% 71.4% 95.2%

Screens 803 289 283 362 16 113 1,866

% screens with

stadium seating 96.0% 99.7% 100.0% 99.4% 100.0% 66.4% 96.1%

(1) Baltics consists of our operations in Latvia and Lithuania (2) Multiplex cinema site defined as a site with five or more screens

Dublin

Inverness

Aberdeen

Glasgow Edinburgh

London

Cardiff

Birmingham

Manchester

Aarhus

Odense Copenhagen

Berlin

Magdeburg

Halle

Dresden

Regensburg

Augsburg

Munich

Kiel

Wolfsburg

Hamburg Oldenburg

Bremen

Mulheim Essen Krefeld

Wuppertal Trier

Offenbach

Stuttgart

Heilbronn

Sindelfingen

Freiburg

Germany

Denmark

Gottingen

Wurzburg

Hannover Bielefeld

Elbląg Gdańsk

Sopot Gdynia

Rumia Słupsk

Koszalin Szczecìn

Bydgoszcz

Poznań Poland Wloclawek

Lódź Radom

Warsaw

Kielce

Rzeszów Kraków

Rybnik

Zabrze

Wrocław Zgorzelec

Tychy

Czechowice

Lublin

Katowice

Olsztyn

Cagliari

Cagliari Sestu

Catania

Catanzaro Lamezia

Surbo

Bari

Salerno Nola

Napoli

Montesilvano

Magliana Moderno

Guidonia

Terni Perugia

Novoli

Bologna

Grosseto

Livorno

Parma Parma Campus

Genova

Beinasco

Rozzano Torino

Cerro Vimercate

Odeon

Trieste

Udine Treviso

Padova

Vicenza Verona

Montabello Hoogezand

Steenwijk

Hoogeveen Hoorn

Heerhugowaard

Alkmaar

Amsterdam Purmerend

Hilversum Deventer Apeldoorn

Amersfoort Arnhem Doetinchem

Nijmegen

Alphen aan den Rijn

Vlaardingen Gorinchem

Den Bosch

Eindhoven

Kerkrade

21

R: 0 G: 32 B: 96

R: 0 G: 112 B: 192

R: 197 G: 217 B: 241

R: 255 G: 192 B: 0

R: 237 G: 145 B: 49

R: 112 G: 173 B: 71

R: 193 G: 42 B: 42

R: 217 G: 151 B: 149 22

Financial Information – Pro-Forma Performance Over Time (Including JT Bioscopen)

£m, FYE Nov FY2014 FY2015 H1 FY2015 H1 FY2016

KP

Is

Admissions (m) 79.3 85.1 45.4 44.2

Number of Sites 208 210 209 210

Number of Screens 1,842 1,864 1,859 1,866

ATP (£) 5.73 5.67 5.63 6.00

SPP (£) 1.92 1.93 1.89 2.01

Total Revenue Per Person (£) 8.71 8.65 8.52 9.11

P&

L

Group Revenue 691.1 735.5 386.6 402.6

Gross Profit 432.0 455.3 240.2 249.6

Gross Profit % 62.5% 61.9% 62.1% 62.0%

Operating Expenses (Excl. Rent) (202.9) (200.7) (100.4) (105.6)

EBITDAR 229.1 254.6 139.7 144.0

EBITDAR % 33.1% 34.6% 36.1% 35.8%

Rent (132.0) (120.4) (61.1) (61.5)

Company EBITDA 97.1 134.2 78.7 82.5

Company EBITDA % 14.0% 18.3% 20.3% 20.5%

FY2014 – H1 FY2016: Group Summary Financials Pro-Forma for JT

Source: Company Information

UK GAAP IFRS

22

19 July 2016 - Vue International › uploads › Corporate › Q2 2016... · 19 July 2016 Lenders Presentation First Vue branded site in the Netherlands opened in Alkmaar in February

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