Kinepolis Group

4 Mission and strategy 6 History8 The Kinepolis concept10 Our core businesses18 Our people 22 Green Star

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Kinepolis Group was formed in 1997 as a result of two family cinema groups and has been listed since 1998. Kinepolis stands for an innovative cinema concept, which serves as a pioneering model within the industry, and does everything within its power to give its visitors the ‘ultimate movie experience’.

Kinepolis operates various multiplexes in Belgium, France, the Netherlands, Luxembourg, Spain, Switzerland and Poland. In addition to its cinema operations, the Group is also active in film distribution, event organization, screen advertising and property management. In recent years Kinepolis has expanded strongly, through acquisitions and new-build projects.

The company is characterized by a flat organization structured according to its geographical markets. CEOs Eddy Duquenne and Joost Bert have been at the head of Kinepolis Group since 2008.

❞ The strength is in the experience. Cinema is an experience that is increasingly personalized to suit the visitor.We aim to be the ‘sommelier’ of film; visitors must be able to take for granted that we will always offer something they will like.”

Kinepolis in brief

CEOs Joost Bert and Eddy Duquenne

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KINEPOLIS WANTS TO BE THE BEST CINEMA OPERATORKinepolis is committed to

giving visitors unique entertainment and business experiences in the best possible conditions. In doing so, Kinepolis pursues top technical and logistical quality to create a unique cinema experience.

KINEPOLIS WANTS TO BE THE BEST MARKETERKinepolis is committed to

meeting the needs and wants of the audience as much as possible through intensive interac-tion with its visitors and tailored content. Kinepolis is committed to positioning itself as the best marketer by responding to the expectations of various target groups.

Mission and strategy

KINEPOLIS WANTS TO BE THE BEST REAL ESTATE MANAGER

Kinepolis is committed to managing, using and developing its unique real estate portfolio optimally.

All pillars are focused on creating the ultimate movie experience, a cinema concept that revolves around the total experience of the visitor. Kinepolis’ efforts were rewarded with a Global Achievement in Exhibition Award in 2014 as the world’s best cinema operator.

Kinepolis wants to offer movie and culture lovers a unique experience and pursues a personalized program for various target groups. Kinepolis wants to create sustainable value for its customers, employees, shareholders, partners and the community. The three pillars of its strategic model go hand in hand with sustainable enterprise.

Global Achievement in Exhibition Award 2014.

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Optimal management and development of cinema property. (photo: Kinepolis Breda, NL)

Successful event formulas, such as ‘Ladies at the Movies’.

State-of-the-art cinema infrastructure.Self-service shop with wide range.

Attractive coffee corner.

Discover ‘The ultimate movie experience’

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Once upon a time

1972Opening Trioscoop in Hasselt (3 screens)

1988First megaplex: Opening Kinepolis Brussels (25 screens)

1995First foreign complex (Saint-Julien-Lès-Metz, France)

1960sAlbert Bert takes over the ‘Majestic’ in Harelbeke from his father

1970Albert Bert turns it into a duplex (2 screens)

1975Opening Pentascoop in Kortrijk (5 screens)

1981Opening Decascoop in Ghent (10 screens)

1996Opening Kinepolis Lomme (France, 23 screens)

1993Opening Metropolis Antwerp (24 screens)

1927Family Bert begins operating a cinema.

1997Merger of two family-run cinema groups (Claeys-Vereecke and Bert): foundation of Kinepolis Group

Kinepolis LOmme

Albert Bert

Majestic Harelbeke Rose Claeys-Vereecke

and albert bert

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1998Opening Kinepolis Madrid (25 screens, 9200 seats): largest cinema worldwide

2002Launch online ticket sales

2006Claeys-Vereecke family sells all shares in Kinepolis Group

2008Appointment of Eddy Duquenne as CEO, together with Joost Bert

2014Acquisitions in the Netherlands and Spain. Entry on the Dutch market with the acquisition of Wolff Bioscopen

1998IPO, change of name to Kinepolisand start of international expansion

1999-2007Expansion into France, Switzerland, Spain and Belgium

2003Start digitization

2014‘Global Achievement in ExhibitionAward 2014’: best cinema operator worldwide

Joost Bert and Eddy Duquenne

Kinepolis Schaffhausen

UTOpolis EmmenKinepolis

Madrid

2015Acquisition of Utopolis Group (NL, FR, LUX). Entry on the Luxembourg market

2016Opening of 5 new-build projects in the Netherlands, France and Spain

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LASER ULTRAWith Laser ULTRA Kinepolis combines the unique image quality of Barco’s best laser projector with the immersive sound system of Dolby Atmos. Together, these two technologies give visitors an even more intense film experi-ence, a feeling that they are in the center of the action.

OPERA & ART IN THE CINEMA In recent years Kinepolis has developed an impressive alternative program of opera, ballet, theatre and art exhibitions. There are regular screenings in Belgium, France, Spain, Switzerland, the Netherlands and Luxembourg, in association with partners such as the MET, the Royal Opera House and the Bolshoi. Opera is now firmly established, attracting more than 30,000 visitors per year at the Belgian Kinepolis cinemas alone.

COSY SEATINGSince 2015, visitors can choose Cosy Seating in various Kinepolis cinemas. Cosy seats are even more comfortable seats, with wider armrests, a handy table for drinks and snacks and a coat hook.

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The Kinepolis concept

CUSTOMER-ORIENTED INNOVATIONKinepolis sets trends and constantly invests in innovation and an optimal customer experience. In recent years this drive to innovate has led to the rapid digitization of the cinema, seat reservation, the latest projection and sound technologies, mobile ticketing, trend-setting events and refreshing marketing approaches.

RELATIONSHIP MARKETINGAs a film expert, Kinepolis is committed to providing the best possible response to the preferences of its visitors. Kinepolis is committed to offering the ultimate movie experience, based on a thorough understanding of its customers – making use of an innovative digital relationship marketing system – and a tailored offering. Millions of customers receive film and event recommendations via e-mail, based on their personal preferences.

ACTIVE PROGRAMMINGThe Kinepolis offering is not limited to current international blockbusters. In recent years Kinepolis has made the switch from passive to active programming. In doing so, Kinepolis selects films based on the preferences of its customers, which means they can differ according to the complex. Kinepolis’ goal is to offer something to each of its target groups at all times during the year.

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Our core businesses

BOX OFFICE Box Office comprises the sale of cinema tickets. Kinepolis reaches a wide range of movie lovers and culture vultures by constantly optimizing theatre capacity and seat occupancy with a varied film and cultural offering. With its active programming approach Kinepolis’ goal is to offer something to various target groups at all times during the year. The classic film offering is permanently complemented with events (such as ‘Ladies at the Movies’ and ‘Cinema Deluxe’) and alternative content, such as art, opera and ballet.

IN-THEATRE SALES In-theatre sales (ITS) comprises all activities relating to the sale of beverages and snacks in the cinema. This business has become more important in recent years due to innovations in infrastructure and offering.

A large number of Kinepolis complexes now have a self-service shop, which is a decisive factor in the success of ITS. The shop offer is complemented with specific local initiatives in each country or region.

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Kinepolis wants to create a unique

experience, including before and after

the movie.

New shop and interior concepts.

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BUSINESS-TO-BUSINESSKinepolis’ business-to-business (B2B) activity is built upon a privileged relationship with the business community and an innovative offering. Since the digitization, Kinepolis cinemas, with their advanced, flexible infra-structure, are also ideal B2B venues for conferences, premieres and corporate events. Kinepolis’ B2B teams launch and run cam-paigns in association with companies and stimulate the sale of events and cinema vouchers.

FILM DISTRIBUTIONKinepolis Film Distribution (KFD) focuses on distributing international and domestic films in Belgium and Luxembourg. As a specialist in Flemish films KFD has earned a strong position in Belgium. Through KFD Kinepolis also stimulates the production and promotion of Flemish film in its role as a media company.

SCREEN ADVERTISINGWith the acquisition of the advertising agency Brightfish at the end of 2011, Kinepolis launched a new core business in Belgium. The transaction ensured a stable screen advertising partner for the cinema industry. Brightfish offers a wide range of media channels in and around the cinema for everyone who wishes to communicate with cinema visitors in a targeted way.

Kinepolis cinemas present themselves as ideal B2B venues.

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Kinepolis Ghent as loyal partner of Film Fest Ghent (BE). Cinemas have become versatile multimedia centers since the digitization (Madrid, ES).

Kinepolis offers professional facilities for events, conferences and business purposes.

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Kinepolis owns the vast majority of its real estate, a situation that sets it apart from many other cinema operators.

The Magic Forest in Madrid (ES). Kinepolis Enschede (NL).

Kinepolis Dordrecht (NL), opened in February 2016.

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REAL ESTATEReal Estate is a separate business unit within Kinepolis tasked with coordinating the management, utilization and development of the Group’s real estate portfolio. Kinepolis has a unique real estate position, a situation that sets it apart from many other cinema opera-tors. The Group owns the vast majority of its real estate and a lot of space is let to third parties. Footfall at these businesses (mostly shops and restaurants) is generated by the presence of the cinema.

Leonidas Chocolates Café in Kinepolis Antwerp (BE).

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DIGITAL CINEMA SERVICESDigital Cinema Services (DCS) comprises all technical expertise at Kinepolis in digital projection and sound. This expertise is primarily used in-house, but Kinepolis DCS also provides technological services to third parties.

Kinepolis Breda (NL): first European cinema fully equipped with laser projectors. The projectors are not placed in a projection booth, but on a stage in the centre aisle of the cinema.

In 2014, Kinepolis launched ‘Laser ULTRA’, a combination of the best laser projection and multidimensional Dolby Atmos sound.

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Kinepolis pursues top technical

and logistical quality to create a unique

cinema experience.

Kinepolis Breda (NL): first European cinema fully equipped with laser projectors. The projectors are not placed in a projection booth, but on a stage in the centre aisle of the cinema.

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As an employer, Kinepolis aspires to get the best out of its employees, our motto is ‘Plus est en Nous’.

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Our people

2 300 employees devote themselves to ensuring that millions of cinema-goers have an unforgettable experience. The talent and engagement of those employees are the key to Kinepolis’ success.

PLUS EST EN NOUSKinepolis wants to be a self-learning organization, which means that people are responsible for departmental targets and budgets, and are given the opportunity to show initiative and learn from each other. As an employer, Kinepolis aspires to get the best out of its employees, our motto is ‘Plus est en Nous’.

K VALUES‘Client Focus’, ‘Teamwork’, ‘Operational Excellence’, ‘Flexibility’ and ‘Hands-on’ are the behavioral values that every Kinepolis employee works hard to put into practice. Every individual and every team is expected to ensure the customer is central, to work together towards a shared goal, to do his or her job properly and efficiently, to deal with change in a flexible way and show a sense of initiative and entrepreneurship.

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KINEPOLIS TALENT FACTORYKinepolis has launched a Talent Factory to identify and evaluate talents in the company with an eye to development opportunities and succession plans. Training is also an important aspect of the Human Capital philosophy. Kinepolis Academy helps employees to improve their personal skills through e-learn-ing, among other things. There are also personal coaching courses for managers through the Kinepolis University.

Talent Factory encourages internal mobility.

Employee talent and commitment are the key to the success of Kinepolis.

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innovation_lab_logos_samen.indd 1 17/03/16 14:29

INNOVATION LABThe world is evolving all the time, as is the behavior of current and potential Kinepolis visitors, the relevant market and the possibili-ties of responding to this. The Kinepolis Innovation Lab was created, based on the conviction that new, surprising ideas are the oxygen a company needs to remain successful and the realization that Kinepolis has more than 2 000 people in house and many of them may have some good ideas. The introduction of an Innovation Lab stimulates everyone at Kinepolis – from student to manager – to think outside the box and dare to be ‘entrepreneurial’. Every quarter, the best ideas are selected and teams are put together to flesh them out and implement them. The Innovation Lab also ensures that employees work together more, regardless of their department.

‘Focus on the customer’: the first of five behavioural values at Kinepolis.

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Green Star

Kinepolis Jaarbeurs (Utrecht, NL).

Within a broad social context, Kinepolis prioritizes the potential ecological, cultural or social consequences of its operations. Kinepolis is conscious of its social role and possible impact on all interest groups. The Kinepolis sustainability project is known as ‘Green Star’.

ECOLOGICAL FOOTPRINT Next to the comfort of visitors and employees, the green parameters are also central concerns for the design of new complexes and the renovation of existing ones. Kinepolis strives to minimize its ecological footprint in its choice of energy sources and building materials and by using spaces flexibly.

WELLBEING OF EMPLOYEES Green Star is also about employee satisfaction. Kinepolis seeks to develop personal talents and teams and measures employee satisfaction every year (People Satisfaction Index, PSI). Kinepolis stimulates learning networks and as such also a working environment that revolves around feedback and entrepreneurship.

SOCIOCULTURAL RESPONSIBILITY Kinepolis is also conscious of its sociocultural responsibilities, with regard to both program-ming and facilities in its complexes. Facilitating wheelchair access and programming content that meets the wishes of cultural minorities are examples of how Kinepolis is working on integrating minorities even more. Kinepolis also supports various charities by sponsoring, patronage and benefit campaigns, or by stimulating social employment.

Read more about the sustainability policy at Kinepolis in our Green Star brochure.

Participation of Kinepolis in the ‘Wings for Life’ charity run.

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Ecological, social and environmental aspects

are given the fullest consideration in new-build projects.

Kinepolis Jaarbeurs (Utrecht, NL).

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www.kinepolis.com/corporateKINEPOLIS GROUP Corporate Communicationcorporatecommunication@kinepolis.com+32 (0)9 241 00 16

Investor Relationsinvestor-relations@kinepolis.com+32 (0)9 241 00 22

January 2017 - EN