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25. Operating leases

Leases as Lessee

Non-cancellable operating lease rentals are payable as follows:

IN ’000 € 2012 2013

Less than one year 4 461 4 525 Between one and fve years 12 051 13 038 More than five years 12 849 10 653 TOTAL 29 361 28 216 Minimum lease payments in the income statement with regard to operating leases 4 783 4 855 Contingent lease payments in the income statement with regard to operating leases 210 199

IN ’000 € 2012 2013

Less than one year 6 097 5 710 Between one and fve years 9 250 8 525 More than five years 2 057 2 026 TOTAL 17 404 16 261 Minimum lease payments in the income statement with regard to operating leases 6 742 6 881 Contingent lease payments in the income statement with regard to operating leases 142 120

The multiplex in Valencia (Spain) is leased for a period of 40 years since May 2001. There is an option to terminate the contract after 20 years. The contract does not provide for a purchase option.

The Group also leases the complex in the centre of Nîmes (France) and a complex in the centre of Liège (Belgium). The term of these leases is nine years (renewable). A fxed rent is always charged.

The Group also leases the land on which a number of complexes have been built and the adjacent car park for a remaining period of 15 years in Belgium and 49 years in France (long lease construction). The paid rent is partly fxed and partly variable, based on the number of tickets sold.

A number of car parks are also leased in Belgium for a period of 1 to 26 years (renewable). A fxed rent is always charged.

The Group also leases offce space for a period of nine years (renew-able). The rent is always fxed.

Finally, the Group leases cars for some of its employees. These con-tracts have a term of 3 to 5 years (sometimes renewable). All lease sums are fxed.

Leases as lessor

The Group has leased out parts of its property under operating leases. The future minimum lease payments under non-cancellable leases are as follows:

IN ’000 €

2012 2013

LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 1 LEVEL 2 LEVEL 3

Cash flow hedging Interest

Interest rate swaps -634 -31 Currency

Foreign exchange forward contracts -29 TOTAL -634 -60

Fair value hierarchy

The table below provides an overview of the fnancial instruments car-ried at fair value by valuation method. The different levels have been defned as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observ-able market data (unobservable input).

KINEPOLIS GROUP ANNUAL REPORT 2013 05 Financial Report 80