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Technological risks
Cinema has become a highly computerized and automated
sector in which the correct technological choices and
optimal functioning of projection systems and other ICT
systems are critical to be able to offer customers optimal
service. Kinepolis Group manages these risks by closely
following the latest technological developments, regularly
analyzing system architecture and, where necessary,
optimizing and implementing best ICT practices.
Employee risks
As a service company, Kinepolis Group largely depends on
its employees to provide high-quality service. Hiring and
retaining the right managers and employees with the
requisite knowledge and experience in all parts of the
Company is therefore a constant challenge. Kinepolis
accepts this challenge by offering attractive terms of
employment, good knowledge management and a pleasant
working atmosphere. Kinepolis measures employee
satisfaction on the basis of employee surveys and where
necessary improves its policies.
Risks arising from exceptional events
Events of an exceptional nature, including but not limited to
extreme weather, political unrest and terrorist attacks, in a
country where Kinepolis Group is active and that result in
material damage to one of the multiplexes, a fall in the
number of customers or disruption in the delivery of
products can have a negative impact on activities.
Kinepolis strives to minimize the potential impact of such
risks through a combination of preventive (such as con-
struction decisions, evacuation planning) and detection
measures (such as fire detection systems) and by taking out
proper insurance.
Environmental liability and property risks
The property that Kinepolis Group owns and leases is
subject to regulations with regard to environmental liability
and potential property risks. In addition to the above
mentioned measures to control political and regulatory
risks, Kinepolis will take appropriate measures to prevent
environmental damage and limit property risks.
Other risks
After the acquisition by KP Immo Brussel NV (a subsidiary
of Kinepolis Group NV) of the premises in Galerie Toison
d’Or (Guldenvlieslaan/Avenue de la Toison d’Or 8) in
Brussels (Belgium), which are leased to the cinema operator
UGC Belgium, Kinepolis Group NV and its subsidiary were
served with a summons by the aforementioned tenant
before the Commercial Court in Brussels to declare the
aforementioned transaction null and void due to alleged
breaches of the Economic Law Book and one of the
conditions imposed on Kinepolis Group by the Belgian
Competition Authority in 1997. UGC Belgium also filed a
complaint with this Competition Authority at year-end 2014.
In The Grand Duchy of Luxembourg the country’s competi-
tion authority is investigating an alleged abuse of the
dominant position by Utopia SA with regard to the acquisi-
tion in 2013 of the shares of Cine Belval SA (now Utopolis
Belval SA), the operator of the cinema complex in Belval, in
which the auditor demands the disposal of the complex.
Finally Kinepolis has launched proceedings obtain the
missing operating license for a recently acquired
cinema complex.
Kinepolis is confident that above mentionned proceedings
will end satisfactorily.
Utopolis Belval (LU)
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03 / MANAGEMENT REPORT
KINEPOLIS GROUP
ANNUAL REPORT 2015