Kinemax is a French company founded in 2009 that owns a chain of children's cinema multiplexes across Europe and has expanded into Turkey and Brazil. It has grown significantly through acquisitions and new openings, with revenues increasing over 14% annually between 2011-2013. Kinemax aims to continue penetrating existing markets like Turkey and Brazil and expand into new European countries.

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Kinemax – Case Study
Company presentation

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2
Index 1
2
4
5
6
7
8
Group Structure 3
Historical Timeline 4
Geographical Footprint 6
Country Comparison 7
Future Growth Prospects 8
Financials at a Glance 9
Summary Table 10
3 Business Formula 5

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Group Structure
Kinemax Sarl
Kinemax Group:
Legend:
Kinemax
Italia Spa
Kinemax
UK ltd
Kinemax
Deutschland
Saar
Kinemax
Turkey A.S
Kinemax
Brasil
LTDA
2009
2010 2010
2011 2011
2012
Kinemax Group Perimeter
Parent Company
Subsidiaries
Joint Venture
*% Percentage held by
Parent Company
*100% *100%
*100% *80%
*49%
Group Structure Timeline Business Formula
Geographical
Footprint
Country
comparison
Growth
Prospects
Financials Summary table
Kinemax Group
– Kinemax Sarl was founded in 2009 by a prominent
French entrepreneur. The company owns a chain of
cinema multiplexes, targeted at children audiences.
Kinemax tries to take advantage of the fastest growing
niche within the cinema market
International expansion
– Soon after the company started its operations in
France, it started looking abroad. Currently, the
company is present in 5 foreign markets – mainly in
Europe
– Two of Kinemax’s most recent investments are related
to the fast growing markets of Turkey and Brazil. The
company owns a majority stake in its investment in
Turkey (80%), and decided to form a Joint Venture in
order to access the Brazilian market
Structure of the Group
– Kinemax Sarl, the French legal entity, is the Group’s
owner. The company has direct participation in all of
the other companies
– Kinemax consolidates fully all of its subsidiaries, given
that the company is the major shareholder in all five of
them and is able to exercise control
Accounting principles
– All legal entities within the Kinemax Group prepare
their financial figures under IFRS

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Historical Timeline
Group Structure Timeline Business Formula
Geographical
Footprint
Country
comparison
Growth
Prospects
Financials Summary table
Company was
founded
June
2009
Country
opening
February
2010
Country
opening
March
2011
Country
opening
November
2010
Country
opening
July
2011
Country
opening
November
2012
Financing, 2009
First Round
€50 million
Acquisition
Moviez - €25 million
Financing, 2010
Second Round
€50 million
Financing, 2012
Third Round
€40 million
Future Developments
New Service
Line, 2014
Event rooms

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Business Formula
Group Structure Timeline
Business
Formula
Geographical
Footprint
Country
comparison
Growth
Prospects
Financials Summary table
Target a Niche
Market
International
Presence
Access Growth
Markets
Extended Service
Line
Strong Bargaining
Power
Partnerships with
Local Players
Organize Promotional
Events
Leverage Customer
Behavior
Kinemax’s
Business Model

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Geographical Footprint
Group Structure Timeline Business Formula
Geographical
Footprint
Country
comparison
Growth
Prospects
Financials Summary table
Kinemax UK
Headcount: 192
Kinemax Brasil
Headcount: 38
Kinemax Turkey
Headcount: 124
Kinemax Deutschland
Headcount: 134
Kinemax Sarl
Headcount: 342
Kinemax Italia
Headcount: 156
Kinemax operates on 3 continents and in 6 countries;
The company has a Headcount of 986 employees and its Total Revenues amount to €307.2m
Total Revenues
€52.5m
Total Revenues
€43.4m
Total Revenues
€24.8m
Total Revenues
€135.7m
Total Revenues
€4.4m
Total Revenues
€46.3m

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Country Comparison
Group Structure Timeline Business Formula
Geographical
Footprint
Country
comparison
Growth
Prospects
Financials Summary table
CountriesofOperation
France
Italy
Germany
UK
Kinemax
Revenue
percentage
Market
Penetration
Cinema
Revenues
Percentage
vs. Total
Customers Gross
Margin
35 % of Revenues
17 % of Revenues
18 % of Revenues
56 % vs.
44%
51 % vs.
49%
54 % vs.
46%
High
Medium
Medium
Under
14
14-30
Over
30
56% 12% 32%
50% 15% 35%
54% 9% 37%
0% 20% 40% 60% 80%100%
26% Gross
Margin
25% Gross
Margin
30% Gross
Margin
14 % of Revenues
50 % vs.
50%
Medium 46% 21% 32%
32% Gross
Margin
Turkey
Brazil
13 % of Revenues
62 % vs.
38%
Low 57% 16% 27%
22% Gross
Margin
3 % of Revenues
68 % vs.
32%
Low 61% 7% 32%
19% Gross
Margin
26%
25%
30%
32%
22%
19%

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Future Growth Prospects
Group Structure Timeline Business Formula
Geographical
Footprint
Country
comparison
Growth
Prospects
Financials Summary table
• Kinemax plans to start operations in the
Netherlands, Spain and in Norway
• The firm has acquired experience from its
activities in other European countries
New European Markets
• Kinemax plans to introduce a new service in its
locations: “Event rooms”
• Similar service lines reinforce its image as the
place to be for children in the “under 14” segment
Extension of offered Services
• The South American Market is one of the prime
opportunities ahead of Kinemax
• The firm has already acquired some limited
experience from its Joint Venture in Brazil
• The South American Market is expected to grow in
double figures in the next 5 years
South American Market
• Cinemax will likely step up its effort to solidify its
leadership position in the markets, in which the
company is already present
• There is significant room for growth in Turkey and
in Brazil
Penetration in existing Markets
Kinemax Growth
Prospects

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Financials at a Glance
€ in million
FY11
Act
FY12
Act
FY13
Act
Var %
FY11-FY12
Var %
FY12-FY13
Cinema revenues 135.3 152.5 169.1 12.7% 10.9%
Other revenues 102.6 119.6 138.2 16.6% 15.6%
Total Revenues 237.9 272.1 307.3 14.4% 12.9%
Cost of Sales (183.9) (207.3) (229.1) 12.8% 10.5%
Gross Margin 54.0 64.8 78.2 19.9% 20.8%
Operating expenses (35.9) (40.5) (46.6) 12.9% 14.9%
EBITDA 18.1 24.2 31.7 33.9% 30.7%
Operating Cash Flow 16.1 22.8 24.1 41.4% 5.6%
KPIs
Cinema revenues % 56.9% 56.1% 55.0%
Other revenues % 43.1% 43.9% 45.0%
Gross Margin % 22.7% 23.8% 25.5%
EBITDA % 7.6% 8.9% 10.3%
Cash conversion % 89.3% 94.3% 76.20%
Revenues development
– Kinemax’s revenues experienced a double digit
growth throughout the period under analysis
– Both cinema and other revenues grew by more
than 10%, although other revenues outpaced
the growth of cinema revenues (16% vs. 11%)
– It seems that the company’s revenue mix is
heading to a 50/50 split between Cinema and
Other revenues
Gross Margin
– Higher revenues transferred into a higher Gross
Margin % (22.7% in FY11 vs. 25.5% in FY13)
– Kinemax is able to sell its products at a good
margin
– Gross Margin % could be further improved by
ramping up the investments in Turkey and Brazil
EBITDA
– Kinemax improved its EBITDA margin as well in
the period under analysis (from 7.6% in FY11 to
10.3% in FY13)
– Operating expenses did not increase as fast as
Gross Margin, thus EBITDA increased
Cash Conversion Ratio
– The ratio between Operating Cash Flow and
EBITDA varied between 76.2% and 94.3%
– It was lower in FY13 due to investments in new
projects
135.3
152.5 169.1
102.6
119.6
138.2
22.0%
23.0%
24.0%
25.0%
26.0%
0.0
100.0
200.0
300.0
400.0
FY11
Act
FY12
Act
FY13
Act
Euroinmillions
Revenues and GM% development: FY11-FY13
Cinema revenues Other revenues Gross Margin %
Group Structure Timeline Business Formula
Geographical
Footprint
Country
comparison
Growth
Prospects
Financials Summary table

10. © 365careers, 2014
10
Summary Table
Group Structure Timeline Business Formula
Geographical
Footprint
Country
comparison
Growth
Prospects
Financials Summary table
KinemaxGroup
Kinemax
Sarl
France Holding
Not
applicable
June 2009 43.9% 5.5€ 26.3%
Kinemax Italia Spa Italy Subsidiary 100% February 2010 37.4% 5.9€ 24.8%
Kinemax UK Ltd
United
Kingdom
Subsidiary 100%
November
2010
37.1% 6.1€ 29.8%
Kinemax
Deutschland Saar
Germany Subsidiary 100% March 2011 42.3% 6.5€ 32.3%
Kinemax Turkey A.S. Turkey Subsidiary 80% July 2011 42.9% 4.8€ 22.7%
Kinemax Brasil LTDA Brasil Joint Venture 49%
November
2012
29.3% 3.9€ 18.6%
Legal Entity Country Company type
Owned
at
Fill rate
%
Avg. Ticket
Price
Gross
Margin %
Start of
Operations