Contents Kinepolis at a glance 2 Our mission and strategy 4 Our concept 6 Green Star 8 Our people 10 Corporate Governance 12 Our core businesses 14 KINEPOLIS CORPORATE 1 Kinepolis at a glance Kinepolis Group was formed through the merger of two cinema groups and has been listed since 1998. Kinepolis Group stands for an innovative cinema concept, a new blueprint for the industry. Kinepolis has 35 multiplexes in Belgium, The Netherlands, France, 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. 2,100 employees devote themselves to ensuring that millions cinemagoers per year have an unforgettable experience. COUNTRY CINEMAS SCREENS SEATS Belgium 12 (*) 148 36,697 France 7 87 24,657 Spain 5 91 27,320 The Netherlands 9 46 9,292 Switzerland 1 8 1,555 Poland 1 (**) 18 Total 35 398 99,506 (*) One cinema is operated by third parties (**) Operated by third parties 1 9 12 7 5 2 KINEPOLIS CORPORATE 1 35 cinemas in Europe 398 screens Our organization The structure of Kinepolis is tailored to its geographic markets and is characterized by a flat organization in which decisions can be taken 99,506 seats quickly. The organization is supported by five operating entities: cinema operations, real estate, Kinepolis Film Distribution (KFD), Brightfish for screen advertising and Digital Cinema Services for technological support. KINEPOLIS CORPORATE 3 Our mission and strategy Kinepolis wants to give film and culture lovers a unique experience. It puts together a personalized program for diverse target groups. Kinepolis wants to create sustainable value for film lovers, employees, shareholders, partners and the community. To this end, the three pillars of its strategic model are integrated into the principles of sustainable enterprise. 4 KINEPOLIS CORPORATE THE BEST MARKETER Kinepolis is committed to meeting the evolving needs and wants of the audience as much as possible through intensive interaction with its visitors and innovative content. Kinepolis is committed to positioning itself as the best marketer by providing an optimal response to the expectations of all of its target groups. THE BEST CINEMA OPERATOR Kinepolis is committed to giving its audience unique relaxation opportunities and business experiences. Kinepolis is committed to being the best cinema operator and pursues supreme technical and logistical quality that can only be experienced in a Kinepolis environment. In 2014 CEO Eddy Duquenne was presented with the ‘Global Achievement Award in Exhibition’ in Las Vegas. He dedicated this prize to the whole Kinepolis team. THE BEST REAL ESTATE MANAGER Kinepolis is committed to being the best cinema real estate manager by optimally managing, enhancing and developing its unique real estate position. KINEPOLIS CORPORATE 5 Our concept OUR DRIVE FOR INNOVATION The Kinepolis concept is characterized by constant innovation and customer focus. KINEPOLIS IS THE FIRST CINEMA GROUP WORLDWIDE TO LAUNCH LASER ULTRA, AN INNOVATION COMBINING TWO REVOLUTIONARY TECHNOLOGIES: BARCO LASER PROJECTION AND DOLBY ATMOS. Kinepolis sets trends. At technology level, this has As regards content, a permanent offering led to full digitization at a fast pace, seat reserva- of sporting, cultural and social events tions, the latest projection and sound technologies, complements the traditional movie program. including laser projection and sound environment, In addition to innovations to enhance the film mobile ticketing, innovative marketing and experience, Kinepolis also works hard to trendsetting events. improve the pre- and post-movie experience, and constantly designs new shop and interior concepts. As a film expert, Kinepolis is committed to providing the best possible response to the preferences of its visitors. By presenting the right films Kinepolis adds an extra dimension to the best cinema experience it has always delivered. Kinepolis wants to give film and culture lovers the ultimate movie experience. THE MAGIC FOREST AT KINEPOLIS MADRID: AN ENCHANTING PLAY EXPERIENCE FOR CHILDREN 6 KINEPOLIS CORPORATE COSY SEATING: ROOMY SEATS WITH LITTLE TABLE AND FOLDING ARMRESTS LEONIDAS CHOCOLATES CAFE KINEPOLIS ANTWERP MOBILE TICKETING KINEPOLIS CORPORATE 7 Green Star Within a broader social context, Kinepolis prioritizes the potential ecological, cultural or social consequences of its operations. As a sustainable enterprise, the Group is committed to taking its overall social role and the potential impact on all stakeholders seriously. The Kinepolis sustainable business project is known as ‘Green Star’. 8 KINEPOLIS CORPORATE Green Star is the guiding principle, the lodestar of sustainable policy at Kinepolis. Green Star, in all its facets, carries increasing weight in the daily decision processes and operational management. When designing or renovating multiplexes, Kinepolis monitors not only the comfort of all social target groups but also the green character of its buildings. Kinepolis does this through construction materials and applications that limit the The breakthrough in online transactions also ecological footprint. results in greener operations, now that smartphone users are able to retrieve their tickets A unique film experience is not possible without digitally. Various measures have helped drive a unique employee experience: As an employer, down the consumption of electricity and gas. Kinepolis wants to get the best out of every Waste flows and water consumption are reduced employee. For the development of Green Star, and channeled better. the interaction with employees is essential. All social target groups get constant attention in A milestone in the sustainability policy was the cinema programming and conceptualization. digitization of the projection systems, which made Kinepolis expresses its social engagement in its the chemical production of film and the transport film programming and through various of voluminous rolls of film superfluous. social projects. KINEPOLIS CORPORATE 9 Our people ‘PLUS EST EN NOUS’ Kinepolis does this by creating working conditions: Kinepolis is building a reputation ★★ In which talents can be optimally deployed ★★ As a learning organization ★★ As a company with excellent operational management ★★ As an attractive employer for current and potential employees and developed ★★ In which efficiency and customer-oriented teamwork are central ★★ In which the Kinepolis values are not just words but are acted out to. ★★ As a company with a can-do culture and open communication, with satisfied employees KINEPOLIS AS A SELF-LEARNING ORGANIZATION The unique customer experience that Kinepolis Kinepolis is committed to continuously growing Group promises demands the full commitment and as a self-learning organization with the target talent of our people. That is because the of maximum customer satisfaction. experience of the Kinepolis visitors depends to a In doing so, Kinepolis emphasizes: great degree on the enthusiasm and talents of all Kinepolis employees. ★★ Stimulating interaction ★★ Room for initiative The unique work experience of a Kinepolis employee is directly or indirectly translated into a unique customer experience. Kinepolis works to bring the best out of everyone, under the motto ‘Plus est en Nous’. 10 KINEPOLIS CORPORATE ★★ Employee satisfaction and engagement KINEPOLIS AS A TALENT FACTORY The establishment of the ‘Talent Factory’ helps Kinepolis to identify talent at all times and deploy it at the right time so that the whole organization and all employees continue to be satisfied. Kinepolis gives due attention to selecting, identifying, evaluating, developing, mobilizing, deploying and captivating talent. KINEPOLIS ACADEMY Continuous learning is important for Kinepolis. Kinepolis Academy runs various training courses, which among other things are available online. Employees have plenty of options to constantly refine and enhance their personal skills. KINEPOLIS CORPORATE 11 Corporate Governance Kinepolis values the principles of corporate governance highly and does its utmost to organize relations within the company as efficiently as possible. This particularly concerns the structures and channels used by management to check this and protect stakeholders. Kinepolis is committed to applying the principles of the Belgian Corporate Governance Code wherever possible, without prejudice to the individuality of the company. The Board of Directors of Kinepolis Group is made up of seven members, four of whom are independent of the main shareholders and management. The Executive Management is made up of the two CEO’s, Eddy Duquenne and Joost Bert. CEO’S EDDY DUQUENNE AND JOOST BERT. 12 KINEPOLIS CORPORATE KINEPOLIS CORPORATE 13 Our core businesses The general public knows Kinepolis as a cinema operator. However, Kinepolis’ business interests are wider and more diverse. ★★ ★★ ★★ ★★ ★★ ★★ Box office In-theater sales (ITS) Business-to-business (B2B) Film distribution Screen advertising Real estate BOX OFFICE Box office ensues from the sale of cinema tickets. The number of visitors is decisive here and is highly dependent on a number of key factors, including content, weather and holiday periods. At Kinepolis the goal is to involve the customer even more and optimize the customer relationship, partly through online and mobile services. Customers showed their appreciation for continuing investments in customer experience, such as digitization, facilities and self-service. Kinepolis targets the highest quality standard Kinepolis constantly optimizes visitor numbers when it comes to facilities, comfort, organiza- in its multiplexes and megaplexes. Through its tion and technology, which has resulted in wide offering of films it reaches diverse groups some striking innovations in recent years. of film and culture lovers. Kinepolis continues to surprise its audience with its program. Kinepolis looks to identify customer preferences through the employment of an effective, innovative relationship marketing system. 14 KINEPOLIS CORPORATE IN-THEATER SALES (ITS) In-theatre sales (ITS) comprises all revenue from the sale of beverages, snacks and merchandise in the multiplexes. Far-reaching measures in terms of facilities, sales concepts and content have pushed up revenue in this area in recent years. Most of our multiplexes now have their own large Mega Candy self-service shop, a decisive factor in the increasing success of ITS. This concept has been supplemented by specific local initiatives in certain countries. The coffee corner has acquired a prominent place. In addition to the extensive movie offering, which is specially designed to appeal to different target groups, an extensive range of refreshments is offered to meet the tastes of each of those groups. KINEPOLIS CORPORATE 15 BUSINESS-TO-BUSINESS (B2B) Business-to-business (B2B) revenue is generated through privileged relationships and partnerships with the business world. The range of products and services is continually refreshed and diversified. B2B revenue is independent from movie ticket sales. Digitization has transformed cinemas into multimedia auditoria, an innovative channel for business. Digital projectors, tailored conferencing infrastruc- Kinepolis makes its professional facilities available ture and service, more energetic prospecting, for conferences, movie premieres, corporate intensive media campaigns and successful events and staff parties. B2B teams work to partnerships make Kinepolis complexes ideal promote event and cinema voucher sale with B2B locations. intensive campaigns. The cinema is also the perfect location for specific publicity campaigns to promote corporate brands. Screen advertising, sampling, digital screens in the foyers and advertising panels also play their part in that. FILM DISTRIBUTION Kinepolis Film Distribution (KFD) focuses on distributing international and domestic movies in Belgium and Luxembourg. As a specialist in Flemish movies KFD has earned a strong position in Belgium. Through KFD Kinepolis stimulates Flemish film. 16 KINEPOLIS CORPORATE SCREEN ADVERTISING With the acquisition of advertising agency Brightfish Kinepolis launched a new core business in Belgium at the end of 2011. The transaction triggered a consolidation on the Belgian screen advertising market. At the same time, Kinepolis ensured that the Belgian cinema industry once again had a stable partner for screen advertising. REAL ESTATE Real Estate is a separate business unit tasked with managing and developing Kinepolis’ property portfolio. Kinepolis owns the vast majority of its real estate, a situation that sets the Group apart from many other cinema operators. When this brochure was published Kinepolis had a portfolio of 35 complexes, comprising 398 screens and 99,506 seats. Over 57,000 m² is let to third parties. Footfall at these businesses (mostly shops and cafes) is often generated by the attraction of the Kinepolis complex. Kinepolis makes maximum use of its portfolio and continuously expands its property portfolio. Kinepolis recently entered the Dutch market, is pursuing further growth in Spain and France, and regularly announces new-build projects. The Group constantly strengthens its organization to support this expansion. Kinepolis wants to introduce its concept in new markets and for new target groups to help create additional value for all stakeholders. KINEPOLIS CORPORATE 17 In 2014 CEO Eddy Duquenne was presented with the ‘Global Achievement Award in Exhibition’ in Las Vegas. kinepolis.com
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