Ipic Entertainment Inc · OTC:IPIC
Ipic Entertainment — Reg A Offering (January 2018)
139 slides from Ipic Entertainment's offering presentation, January 2018
Slide 1: Exhibit 13.1 Testing the Waters Materials
([KLELW EXHIBIT 13.1 "TESTING THE WATERS" MATERIALS
Slide 2: iPic Website
iPIC WEBSITE
Slide 3: We're Going Public
URL: https://www.ipictheaters.com/#/invest/ WE'RE GOING PUBLIC. Make history with us and become a shareholder in our I.P.O. iPic Entertainment IPO I CR CONFERENCE PRESENTATION WEBCAST iPic® Entertainment Inc. will be presenting at the 20th Annual ICR Conference at the JW Marriott Orlando Grande Lake
Slide 4: Indicate Interest
O ur facilites: iPic’s world-class environment and ambiance We build architecturally unique entertainment destinations that successfully compete against other out-of-home choices, and provide a shared-experience alternative to in-home entertainment options. The comfort and privacy of our patent-pend
Slide 5: BANQ Website
BANQ WEBSITE
Slide 6: iPic Entertainment Inc. offering listing
URL: http://banq.co/listings/ipic REINVENTING CAPITAL MA ABOUT US HOW TO INVEST/ TRADE BROWSE DEALS REG A+ CONTACT US OPEN AN ACCOUNT LOGIN OVERVIEW O F F E R I N G D E TA I LS D O C U M E N TA T I O N REQUEST MORE INFO INVEST NOW INITIAL PUBLIC OFFERING TESTING THE WATER » NASDAQ iPic Entertain
Slide 7: Company Highlights: Investment Considerations
$ 462.50 Minimum INVEST NOW iPic Entertainment IPO COMPANY HIGHLIGHTS Investment Considerations • IPIC’S BUSINESS MODEL IS LIKE OTHER DISRUPTIVE DESTINATION BRANDS + iPic believes destination dinner is the US restaurant industry’s highest-returning customer occasion and the most competitively defens
Slide 8: Seasoned Management Team and Shareholder Base
• SEASONED MANAGEMENT TEAM + iPic is led by a strong management team with extensive experience with national brands in all aspects of casual-dining and entertainment operations. + iPic’s founder and CEO has been in the theatrical entertainment business for over 30 years, and has successfully founded
Slide 9: Legal Disclaimer
The owering will be made only by means of an owering circular. An owering statement on Form 1-A relating to these securities has been filed with the Securities and Exchange Commission but has not yet become qualified. This posting shall not constitute an ower to sell or the solicitation of an ower t
Slide 10: Summary Disclosure Statement
1450 Broadway, 26th Floor New York, NY 10018 S U M M A R Y D I S C L O S U R E S T A T E M E N T A L L S E C U R I T I E S A R E O N LY O F F E R E D B Y T R I P O I N T G L O B A L E Q U I T I E S . B A N Q I S T H E O N L I N E D I V I S I O N O F T R I P O I N T GLOBAL EQUITIES , LLC IMPORTANT DI
Slide 11: Press Release
PRESS RELEASE
Slide 12: iPic to List on Nasdaq via Regulation A+
iPic® Entertainment To List On Nasdaq for Initial Public Offering via JOBS Act Regulation A+ Shares of Premium Entertainment Experience Will Soon Be Available for Trading NEWS PROVIDED BY iPic Entertainment Dec 27, 2017, 08:00 ET BOCA RATON, Fla., Dec. 27, 2017 /PRNewswire/ --ÅiPic® Entertainment
Slide 13: Legal Disclaimer
the expectations reected in these forward-lookingÅstatements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary st
Slide 14: Management Presentation Invite and Slideshow
MANAGEMENT PRESENTATION INVITE AND SLIDESHOW
Slide 15: Management presentation event invitation
THURSDAY, NOVEMBER 16 AT iPic FULTON MARKET, NYC 5:30PM - COCKTAIL RECEPTION 6:30PM - MANAGEMENT PRESENTATION 7:30PM - ADVANCE SCREENING OF JUSTICE LEAGUE
Slide 16: Management Presentation November 2017
Management Presentation November 2017
Slide 17: Lights, Camera, Action!
Lights, Camera, Action! 7 | PP ersemecresssnern
Slide 18: Agenda
Agenda Top-Down Market Positioning 1 Company Overview 2 Our Business Model 3 Investor Metrics 4 3
Slide 19: New-Age Market Positioning: 1 + 1 + 1 = 4
1a iPic New-Age Market Positioning: 1 + 1 + 1 = 4 We Like iPic’s Positioning in the Marketplace Four-Hour Restaurant Mixology -Inspired Theater Customer Business Lounge Business Business Experience Our Business 1 + 1 + 1 = 4 + + = Entire Night Out Within a Single Location Polished-Casual Farm-to-Gla
Slide 20: Similar Models Performing Well in the Marketplace
1a iPic New-Age Market Positioning: 1 + 1 + 1 = 4 We Observe Similar Models Performing Well in the Marketplace Restaurant Bar Experience Business Business Business Golf Driving Range = Top Consumer Growth Company = ~+40% Growth In Per-Store Profits Over Past 7 Years Gaming 5
Slide 21: Eat-ertainment Brand
1a iPic New-Age Market Positioning: Eat-ertainment Brand We Like Potential Size and Composition of the One-Stop Night-Out Business $260 Billion US Full-Service Restaurant Business Kitchen-Substitute Experiential-Dining Occasion Occasion Enabled Creation of Specialized Business-Models to Focus on One
Slide 22: Competitive Defensibility of the One-Stop Night-Out Business
1a iPic New-Age Market Positioning: 1 + 1 + 1 = 4 We Like Potential Competitive Defensibility of the One-Stop Night-Out Business Because we believe it is hard for many existing restaurants and theaters to copy iPic’s positioning Restaurants adding Theaters? Theaters adding Restaurants? Facility Hurd
Slide 23: iPic is NOT Like a Traditional Movie Theater
1b iPic New-Age Business Model: iPic is NOT Like a Traditional Movie Theater iPic Generates Revenue from Different Yet Complementary Profit Centers 2016 Revenue Theater Competitors (1) Sponsorship/ Other Branding/ Income VIP Fees 5% 18% Theatrical Box Office 31% Theatrical Box Office 64% Food & Beve
Slide 24: iPic is a Membership-Driven Model
1b iPic New-Age Business Model: iPic is a Membership-Driven Model Quantity Quality Comparison to Leading Membership Brands Key Demographic Highlights Ɣ 60% Female, 40% Male Members Ɣ 34 – 39 median age Percentage of Total System Sales Ɣ $180K Average HHI / $120K Median HHI Ɣ 90% of guests between th
Slide 25: New-Age Market Positioning + New Age Business Model
1b iPic Story: New-Age Market Positioning + New Age Business Model Food-&-Beverage Entertainment Social Business Basic Restaurant Special-Event Business Sponsorship/ Profile (Lunch/Dinner) + (Corporate/Personal) + Branding Average Store-Level ROICs Cash-on-Cash + Incremental + Incremental ROICs Basi
Slide 26: Strategic Priority: Local-Level Scale in Key Markets
1b iPic Strategic Priority: To Achieve Local-Level Scale in Key Markets We Believe the US Restaurant Industry is a Market-Level ROIC Business Near-Term Priority: Ongoing Priority: Achieve Local Scale in Key Targeted Markets1 Achieve National Scale • G&A Leverage Profit/ Store • Greater Purchasing Po
Slide 27: Conclusion: Top-Down Marketing
Conclusion: Top-Down Marketing Top-Down Market Positioning 1 Our New-Age Market Positioning 1 + 1 + 1 = 4 Business 2 Our New-Age Business Model Membership-Driven 3 A Top Strategic Priority Achieve Local-Level Scale 12
Slide 28: Agenda
Agenda Top-Down Market Positioning 1 Company Overview 2 Our Business Model 3 Investor Metrics 4 13
Slide 29: iPic is Anything But Ordinary
2 Company Overview: iPic is Anything But Ordinary Page from New iPic Deck AFFORDABLE ASPIRATIONAL EXPERIENTIAL SOCIAL LUXURY iPic is the perfect destination The iPic audience enjoys a The typical iPic experience iPic is a fraction of the cost for a date night or group night out with a level of lasts
Slide 30: Unrivalled Out-of-Home Entertainment Experience
2 Company Overview: iPic Offers an Unrivalled Out-of-Home Entertainment Experience Family Bars / Entertainment Movie Theaters Bowling Alleys Entertainment Restaurants Venues Restaurants / Bars Consumer Brand 9 9 9 9 99 Affordable Luxury / Special Experience 9 9 99 99 High Quality Food and Beverage 9
Slide 31: Better Experience, Better Metrics
1. 2 Company Overview: Better Experience, Better Metrics Traditional Movie Theaters Screens per Location 6–8 18 – 24 Seats per Location 244 – 760 2,000 – 2,500 Average Occupancy Rate (1) Overall ~23% ~15% Premium seats similarly priced to traditional Some “premium” conversions, but mainly focused Pr
Slide 32: iPic is in a League of its Own
3 Company Overview: iPic is in a League of its Own for Theater Occasions High End High End Premium Movie Theaters Destinations Budget vs. Premium Traditional Low End Theaters Dine-in Theaters Low End Movie Full Only Destination Movie Theaters vs. Entertainment Destinations iPic is uniquely positione
Slide 33: Agenda
Agenda Top-Down Market Positioning 1 Company Overview 2 Our Business Model 3 Investor Metrics 4 18
Slide 34: Restaurant-Led Business Model and Market Positioning
3 Our Model: Restaurant-Led Business Model and Market Positioning Restaurants Driving Strong Topline Performance 2016 Revenue Sponsorship/ • Award-Winning Culinary Team Branding/ VIP Fees 18% • Variety of Concepts Tailored to Environment: Local Tastes Theatrical Box Office 31% • Favorable Per Person
Slide 35: Award Winning Culinary Staff
3a Our Restaurants: Award Winning Culinary Staff Sherry Yard Adam Seger Chief Operating Officer Master Mixologist • Three-time winner of the James Beard Award • Certified Culinary Professional, Court of Master Sommeliers Advanced Sommelier • Oversees all restaurant and food and beverage concepts for
Slide 36: Renowned Cuisine and Cocktails
3a Our Restaurants: Renowned Cuisine and Cocktails Dine In The Dark Tuck Hospitality Group Three On-Trend Restaurant Concepts • iPic’s answer to the • Seasonal American Dining • Garden-fresh Italian • Intimate gastro-lounge concession stand artisanal cuisine and cocktail driven • Fresh, sustainable
Slide 37: Renowned Cuisine and Cocktails
3a Our Restaurants: Renowned Cuisine and Cocktails iPic Express Concessions and In-Theater Dining Across All Theaters Tuck Hospitality Group Multiple Concepts Offer Flexibility to Tailor Attached Restaurant at Select Theaters to Local Tastes (1) All-American dining Italian artisanal dining Shared pl
Slide 38: Favorable Per Person Spending vs. Restaurant Peers
3a Our Restaurants: Favorable Per Person Spending vs. Restaurant Peers iPic’s F&B spend per patron is significantly higher than peers with favorable alcohol mix at 44% of check Average Check Across Restaurant Industry June 2017 YTD, ($) $49.00 $45.00 (2) $17.15 $36.45 $11.97 $30.93 (1) $25.42 $26.00
Slide 39: Other Movie Theater Chains Not Close in F&B Spend
3a Our Restaurants: Other Movie Theater Chains Not Close in F&B Spend F&B Spend Per Patron June 2017 YTD, ($) $24.21 $18.45 $8.65 $4.16 $4.64 $3.95 (1) (In-Theater Dining (Overall) Only) Source: Public Filings Note 1. Cinemark US operations only 24
Slide 40: Highly Rated Restaurant Experience
3a Our Restaurants: Highly Rated Restaurant Experience iPic Restaurants Selected Winners of Open Table’s Diner’s Choice 2017 Open Table’s Diner’s Choice Winner Overall Rating (1) 4.2 City Perch (4): Feb/Apr/May 2017 Food: 4.0 Tanzy (2): Feb/Apr 2017 Service: 4.2 Tuck Room Tavern (2): Feb/May Ambianc
Slide 41: A Truly Differentiated Theater Experience
3b Our Theaters: A Truly Differentiated Theater Experience Strong Theatrical Box Office Performance 2016 Revenue Sponsorship/ • Differentiated Luxury Theater Branding/ Experience VIP Fees 18% Environment: • Strong Box Office Performance Theatrical Box Office 31% • Desirable Customer Base Food, Bever
Slide 42: Experience Catering to Key 21-54 Demographic
3b Our Theaters: Experience Catering to Key 21-54 Demographic 27
Slide 43: A Truly Differentiated Theater Experience
3b Our Theaters: A Truly Differentiated Theater Experience 28
Slide 44: A Truly Differentiated Theater Experience
3b Our Theaters: A Truly Differentiated Theater Experience 29
Slide 45: Spend: Other Theater Chains Not Even Close
3b Our Theaters: Spend – Other Theater Chains Not Even Close iPic’s average revenue per screen is 156% higher than the rest of the industry 2016 Revenue per Screen1 (000’s) $1,692 $1,449 $235 $217 $956 $946 $128 $799 $578 $440 $498 $505 $489 $30 $24 $27 $28 $182 $169 $160 $128 $511 $432 $366 $318 $3
Slide 46: Industry-Leading Performance
3b Our Theaters: Industry-Leading Performance Meaningfully Higher Ticket Price… …With Significantly Larger F&B Contribution 2017 YTD 2017 YTD Avg. Ticket Price (per person) Avg. Food & Beverage Spend (per person) $20.15 $24.21 $8.95 $4.89 (1) (1) iPic Theater Peers Industry Theater Peers Premium ele
Slide 47: Unique Offering Drives Strong Customer Loyalty
3b Our Theaters: Unique Offering Drives Strong Customer Loyalty iPic’s Loyalty Snapshot - Theaters (1) Our Customers Promote the Brand 83% Likely to Recommend “For my 1600th review I have been thinking about what I wanted to write This is the best #movie theater experience EVER and what place has ch
Slide 48: Innovation Drives Stable LT Industry Growth
3b Our Theaters: Innovation Drives Stable LT Industry Growth U.S. Box Office Revenue Reached a Record $11.4 Bn in 2016 ($MM) $11,000 $8,250 $5,500 $2,750 $0 Theater Multiplex Era Megaplex Era Destination Era Evolution VCR 500 Channel Cable Disruptive DVD Technology High-Speed Internet Recession Year
Slide 49: 2018 Slate to Drive Strong Box Office Results
3b Our Theaters: 2018 Slate to Drive Strong Box Office Results Oct YTD Industry Box Strong Finish Predicted for Nov / Dec 2017 Office Comparison Expected Gross: Expected Gross: Expected Gross: $ Billions $950M $450M $175M 9.22 -5.4% 8.73 Star Wars: Episode Justice League Jumanji YTD '16 YTD '17 VIII
Slide 50: Three Sources of Brand-Related Revenue
3c Our Social Business: Three Sources of Brand-Related Revenue iPic Media Has Room to Grow 2016 Revenue Sponsorship/ • Membership Revenue and Gift Branding/ 18% Cards VIP Fees Environment: • iPic Life Theatrical Box Office 31% • Alternative Content Food, Beverage & Service 51% 35
Slide 51: Three Sources of Brand-Related Revenue
3 Our Social Business: Three Sources of Brand-Related Revenue 36
Slide 52: iPic Access' Fast-Growing Membership Model
3 Our Social Business: iPic Access’ Fast-Growing Membership Model iPic Access Membership Program Member Growth Ɣ Currently at ~1.8 Million members and growing (1) Silver Level 1,800,000 • Free to join • Special pricing on all movie tickets • Weekly newsletters • 1.7 million members 1,600,000 Gold Le
Slide 53: Highly Desirable Membership Profile
3b Our Social Business: iPic is a Membership Model, Attracting a Large and Highly Desirable Membership Profile iPic Member Annual Dollar Spend Key Demographic Highlights Ɣ 60% Female, 40% Male $7,862 Ɣ 34 – 39 median age Ɣ $180K Average HHI / $120K Median HHI Ɣ 90% of guests between the ages of 21 a
Slide 54: Brand Partnerships, Alternative Content, and Gift Cards
3 Our Social Business: iPic Media’s Brand Partnerships, Proprietary Alternative Content, and Gift Cards BROAD SPECTRUM OF LIVE EVENT CAPABILITIES Ɣ Brand Partnerships – Brand partnerships and talent promotion offering exposure to products and local artists – Partnerships negotiated on a case-by-case
Slide 55: Continuous Innovation: Software, Mobile App
3 Our Social Business: Continuous Innovation: Software, Mobile App iPic’s Empowered Hospitality Culture “No company, consumer brand or Customer Functionality otherwise, can exist today without being a tech company inside that enterprise” Ɣ Software and app developed in house to address Howard Shultz
Slide 56: Agenda
Agenda Top-Down Market Positioning 1 Company Overview 2 Our Business Model 3 Investor Metrics 4 41
Slide 57: Attractive Development Whitespace Opportunity
4a Growth Objectives: Attractive Development Whitespace Opportunity Significant Upside to Current Pace of New Openings Massive Whitespace Potential Redmond, WA 2010 Glendale, WI 225 (Bayshore) Dobbs Ferry, NY Fort Lee, NJ (Hudson Lights) New York, NY 2009 (Fulton St.) Barrington, IL 2016 2016 Westwo
Slide 58: Near Term Expansion Plans
4a Growth Objectives: iPic’s Near Term Expansion Plans iPic Future Locations 6 Newly Opened or Under Development Sites in LOI or At Lease South Street Seaport, NY Dobbs Ferry, NY Opened October 2016 Opened May 2017 Under LOI / At Lease Projected Open Date Under LOI / At Lease Projected Open Date CA
Slide 59: Beyond the Core Model: Acquisitions, iPic-Life, International
4a Growth Objectives: Beyond the Core Model Acquisitions, iPic-Life and International Opportunity Potential Potential Date to Achieve • At least three PE-backed chains that represent near-term, actionable opportunities Acquisitions 2018 • Highly fragmented market of smaller, upscale chains throughou
Slide 60: Historical Performance and Targeted Year-Three Unit Economic Model
4b Financials: Historical Performance Targeted Year-Three Unit Economic Model Targeted Unit Economic Model (Year 3) Revenue ($MM) Construction Costs 126 Leasehold Improvement $9.0 – 10.0MM 101 72 77 FF&E Costs $6.0 – 6.5MM 58 38 Soft Costs (4) ~$2.5MM 2011 2012 2013 2014 2015 2016 Total Development
Slide 61: Historical Performance, Favorable Operating Trends
4b Financials: Historical Performance, Favorable Operating Trends Increasing Revenue per Screen (1) Rapidly Rising Attendance ($000’s) (000’s) 1,181 1,238 1,074 1,035 2,916 893 2,489 1,897 1,907 645 1,521 1,010 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Growing Spend per Visit ($) 4
Slide 62: Improving Unit Level Operating Margins
4b Financials: Improving Unit Level Operating Margins Other Revenue Improving Unit Level Other Revenue as % Operating Margins of Total Revenue 18.3% 14.6% 13.5% 16.1% 16.0% 13.0% 2014 2015 2016 2014 2015 2016 Unit Level Other Cash Flow $10.1M $13.7M $18.4M Revenue $12.5M $16.2M $23.1M Other Revenue
Slide 63: Management: A-List Team
6. Management: A-List Team 4c Executive Position Experience Executive Position Experience Hamid Hashemi Founder / • 30+ years in theatrical exhibition Paul Safran Sr. VP, • 25+ years experience practicing law Chief • Founded Muvico I in 1984, grew to 100+ General Executive screens, sold to Regal in
Slide 64: Investor Highlights: Strong Ownership Group
6. Investor Highlights: Strong Ownership Group 4c iPic Holdings Village Roadshow ERS & TRS Regal Cinemas 36% 27% 27% 6% Ɣ Group of High Net Ɣ Employees’ Ɣ One of the leading and Ɣ A diversified multinational Worth individuals led by Retirement Systems of most geographically entertainment company Ham
Slide 65: Investor Highlights: Key Conclusions
4c Investor Highlights: Key Conclusions: Industry-Leading, Ultimate Entertainment Experience Theater Anchor Tenant of Choice Uniquely Diversified Revenue Base Exceptional Financial Performance and Unit Economics Sky’s The Limit Growth Story A-List Management Team and Ownership Group 50
Slide 66: Advertisements
ADVERTISEMENTS
Slide 67: IPO coming soon banner ads
7 Pic ENTERTAINMENT IPIC ENTERTAINMENT IPO COMING SOON LEARN MORE 7 Pic ENTERTAINMENT IPIC ENTERTAINMENT IPO COMING SOON LEARN MORE
Slide 68: IPO coming soon banner ads
iPic IPIC ENTERTAINMENT IPO COMING SOON - } THecatrteae = Pe rT - ite Bay 4 . Cy =e —" LEARN MORE | cain wena a we - IPIC ENTERTAINMENT IPO COMING SOON LEARN MORE
Slide 69: IPO coming soon banner ads
. . VI 1C ENTERTAINMENT IPIC ENTERTAINMENT IPO COMING SOON a 4, bs tae iPic 4 = THEATERS a LEARN MORE . . VI 1C ENTERTAINMENT IPIC ENTERTAINMENT IPO COMING SOON LEARN MORE
Slide 70: IPO coming soon banner ads
° -—. _ IPIC ENTERTAINMENT IPO iPic COMING SOON LEARN MORE ENTERTAINMENT - PD... IPIC ENTERTAINMENT IPO iPic COMING SOON LEARN MORE ENTERTAINMENT 2 Pic Pe eT ENTERTAINMENT IPIC ENTERTAINMENT IPO COMING SOON LEARN MORE IPIC ENTERTAINMENT IPO COMING SOON LEARN MORE Pie IPI ENTERTAINMENT IP Z COMING SO
Slide 71: Ad Set #1
Ad Set #1 iPic |Pic Theaters wie Like Page 1.8 million members have enjoyed iPic Entertainment & soon, you can become a shareholder. Take the lead in our IPO iPic Entertainment IPO coming soon. Go beyond the screen with iPic like never... Learn More iP ‘Pic Theaters tle Like Page Moviegoers spend do
Slide 72: Ad Set #3 and #4
Ad Set #3 Pp, iPic Theaters th Like Page iPic pioneered the luxury moviegoing experience. Own a piece of our disruptive brand. Take the lead in our IPO iPic Entertainment IPO coming soon. Go beyond the screen with iPic like never {Pe ‘Pic Theaters ti Like Page Become a shareholder in the fastest gro
Slide 73: Ad Set #5 and #6
Ad Set #5 iPic Theaters P, the Like Page @ iPic operates 16 locations in 10 states & plans to expand to over 200 locations in the US. Take the lead in our IPO iPic Entertainment IPO coming soon. Go beyond the screen with iPic like never iPic Theaters th Like Page iPic Discover what makes iPic Entert
Slide 74: Social Media
SOCIAL MEDIA 18
Slide 75: Social media posts
iPic iPic Theaters You know our brand, but soon you can invest in our business. Indicate your interest today before our IPO hits the big screen 92 http://bit.ly/iPicEntertainment >. iPic Theaters i Pic Grab some (jj and take the lead in our IPO! The iPic Entertainment IPO is coming soon! @& http://b
Slide 76: Post 1 and Post 2
Post 1 Platform | Time Copy iPic Entertainment is going public which means you can go beyond the screen like never Facebook 12:00 PM before. Take the lead in our upcoming IPO % http://bit ly/iPicEntertainment iPic Entertainment is going public which means you can go beyond the screen like never befo
Slide 77: Post 3 and Post 4
Platform | Time Copy iPic ENTERTAINMENT IPO Coming Soon Our upcoming Reg A+ IPO means everyone can invest in iPic’s luxury entertainment Facebook 10:00 AM experience. indicate your interest in our IPO @ hitp://bit.ly/iPicEntertainment Our upcoming Reg A+ IPO means everyone can invest in iPic’s luxur
Slide 78: Post 5 and Post 6
Sip, savor, and see alll that iPic has to offer. Facebook 1:00 PM Become a shareholder in our IPO ® http://bit.ly/iPicEntertainment Sip, savor, and see all that iPic has to offer. Become a shareholder in our IPO W http://bit.ly/iPicTheatres #iPic #1PO Twitter 1:00 PM #DinnerAndAMovie #investment ‘Sa
Slide 79: Post 7
Post 7 fFacebook [Twitter Instagram Platform It Time Copy It's almost showtime! Own a piece of iPic Entertainment - IPO coming soon @ 10:00 AM hitp://bit.ly/iPicEntertainment It's almost showtime! Own a piece of iPic Entertainment - IPO coming soon @ 10:00 AM hittp://bit.ly/iPicTheatres #iPic #1PO #
Slide 80: Emails
EMAILS
Slide 81: Email #1A: Gold+ Members
12/28 - Email #1A: Gold+ Members active in last 12 months Email not displaying correctly? View it in your browser Dear [First Name], You’re invited to go beyond the screen with iPic like never before! As one of our most loyal and valued members, you’ve experienced everything iPic has to offer; from
Slide 82: Email footer and offering legend
To ensure that you do not miss any important updates, please add equity@ipic.com to your email contacts. Sincerely, Hamid Hashemi iPic Entertainment, Founder & CEO Privacy Policy Ň Terms And Conditions Ň Unsubscribe An offering statement regarding this offering has been filed with the SEC. The SEC h
Slide 83: Email #1B: Silver Members
Email #1B: Silver Members active in last 12 months Email not displaying correctly? View it in your browser Dear [First Name], You’re invited to go beyond the screen with iPic like never before! As an Access Silver member, you’ve experienced everything iPic has to offer; from chef-driven cuisine and
Slide 84: Email footer and offering legend
To ensure that you do not miss any important updates, please add equity@ipic.com to your email contacts. Sincerely, Hamid Hashemi iPic Entertainment, Founder & CEO Privacy Policy Ň Terms And Conditions Ň Unsubscribe An offering statement regarding this offering has been filed with the SEC. The SEC h
Slide 85: Email #1C: Inactive Silver Members
Email #1C: Inactive Silver Members Email not displaying correctly? View it in your browser Dear [First Name], If it’s been awhile since we’ve seen you, we have big news. You’re invited to go beyond the screen with iPic like never before! We believe iPic’s multifaceted dining, drinking, and movie-wat
Slide 86: Email signature and offering legend
Sincerely, Hamid Hashemi iPic Entertainment, Founder & CEO Privacy Policy Ň Terms And Conditions Ň Unsubscribe An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement which only means that iPic Entertainment Inc may make sales of the s
Slide 87: Email #2: All Members
1/2 - Email #2: All Members - indicated interest from Email #1 Email not displaying correctly? View it in your browser Dear [First Name], We believe iPic’s multifaceted dining, drinking, and movie-watching experiences are unmatched in creating memorable experiences for everyone, and we hope you agre
Slide 88: Luxury Theater Auditoriums and High-Tech Customer Experience
LUXURY THEATER AUDITORIUMS AND HIGH- TECH CUSTOMER EXPERIENCE Patent-pending Premium Plus seating pods and an innovative iPic app With revenues having grown by 22 percent over the last 4 years, we can confidently say we’re at the forefront of something incredible. Soon, you’ll have the opportunity t
Slide 89: Offering legend
the offering statement. You may obtain a copy of the offering circular that is part of that offering statement here. You should read the offering circular before making any investment. The offering will be made only by means of an offering circular. An offering statement on Form 1-A relating to thes
Slide 90: Email #3: Meet the CEO
1/4 - Email #3: All Members - indicated interest from Email #1 & 2 Email not displaying correctly? View it in your browser Dear [First Name], The moment you step inside our doors, it becomes clear that iPic Entertainment is much more than a movie theater. We’d like to introduce you to the man behind
Slide 91: Offering legend
An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement which only means that iPic Entertainment Inc may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the mer
Slide 92: Drip Email #1A to members
ACTIVE - Drip Email #1A to members *trigger-sent after indicating interest Email not displaying correctly? View it in your browser Dear [First Name], Thank you for indicating your interest to invest in iPic Entertainment! We are thrilled to have our members on board, as it is your love for iPic’s de
Slide 93: Email footer and offering legend
To ensure that you do not miss any important updates, please add equity@ipic.com to your email contacts. Sincerely, Hamid Hashemi iPic Entertainment, Founder & CEO Privacy Policy Ň Terms And Conditions Ň Unsubscribe An offering statement regarding this offering has been filed with the SEC. The SEC h
Slide 94: Drip Email #1B to non-members
ACTIVE - Drip Email #1B to non-members *trigger-sent after indicating interest Email not displaying correctly? View it in your browser Dear [First Name], Thank you for indicating your interest to invest in iPic Entertainment! You are joining a community of 1.8 million members who have experienced iP
Slide 95: Offering commencement and account instructions
The offering is expected to commence at the beginning of 2018, at which time you may subscribe by opening an account at www.banq.co. You will receive specific instructions at that time, in addition to the full offering details. To stay connected, if you haven’t already, be sure to add equity@ipic.co
Slide 96: Slide 96
Slide 97: Drip Email #2
ACTIVE - Drip Email #2: *trigger-send 1 day after 1st email Email not displaying correctly? View it in your browser Dear [First Name], The iPic IPO has it all; action, adventure, an A-list management team. Now we invite you to take the lead in our IPO. Here’s what you need to know: 1. iPic’s busines
Slide 98: Email signature and offering legend
5. iPic operates five distinct restaurant brands under the leadership of three-time James Beard Award winning chef and Food Network TV personality, Sherry Yard. Our IPO won’t be the same without you. Sincerely, Hamid Hashemi iPic Entertainment, Founder & CEO Privacy Policy Ň Terms And Conditions Ň U
Slide 99: January 2018 Management Presentation
JANUARY 2018 MANAGEMENT PRESENTATION
Slide 100: Management Presentation January 2018
Management Presentation January 2018
Slide 101: Investor Considerations
Investor Considerations This presentation may include ''forward-looking statements.'' To the extent that the information presented in this presentation discusses financial projections, information, or expectations about iPic Entertainment Inc.’s business plans, results of operations, products or mar
Slide 102: What is iPic?
What is iPic? • 4+ hour entertainment experience • Affordable luxury • Pioneered the dining and Movie experience • We lead the industry in innovation 3
Slide 103: Current Operations
Current Operations • 16 locations, 121 screens • 2016 Revenue of $124.8 million and Store-Level EBITDA of $15.2 million • 1.8 million members 4
Slide 104: Investment Consideration
Investment Consideration • Proven track record • Attractive targeted unit economics • Positive macro economics • Experienced management team 5
Slide 105: Lights, Camera, Action! Testing the Waters
Lights, Camera, Action! 2 Pic TESTING THE WATERS: iPic Entertainment, Inc. is “Testing the Waters" under Regulation A under the Securities Act of 1933. This process allows companies to determine whether there may be interest in an eventual offering of its se- curities. iPic Entertainment, Inc. is no
Slide 106: iPic is Anything but Ordinary
Company Overview: iPic is Anything but Ordinary AFFORDABLE ASPIRATIONAL EXPERIENTIAL SOCIAL LUXURY The iPic audience iPic is the perfect iPic is a fraction of the The typical iPic experience enjoys a night out destination for a date cost of box seats at a lasts over 4.5 hours; the with a level of ni
Slide 107: iPic Offers an Unrivaled Entertainment Experience
iPic Offers an Unrivaled Entertainment Experience Movie Bowling Family Bars & Entertainment Theaters Alleys Entertainment Restaurants Venues Consumer Brand Affordable Luxury / Special Experience High Quality Food & Beverage Engaging Activity Attractive Demographics Corporate Events Live Events Innov
Slide 108: iPic is in a Premium Dining and Theater Destination
iPic is in a Premium Dining and Theater Destination High End High End Premium Movie Budget vs. Premium Theaters Destinations Traditional Low End Theaters Dine-in Theaters Low End Movie Full Only Destination Movie Theaters vs. Entertainment Destinations 9
Slide 109: Company Overview, Business Model, Investor Metrics
Company Overview 1 Our Business Model 2 Investor Metrics 3 Strategic Positioning 4 10
Slide 110: Restaurant-Led & Market Positioning
Our Model: Restaurant-Led & Market Positioning Restaurants Driving Strong Topline Performance 2016 Revenue Theater Competitors (1) Other Income Other Income 2% 5% Environment: Theatrical Box Office Theatrical 46% Box Office 64% Food, Beverage & Service 52% Food & Beverage 31% 1. Competitors include
Slide 111: Award Winning Culinary Staff
Our Restaurants: Award Winning Culinary Staff Adam Seger Sherry Yard Master Mixologist Chief Operating Officer • Certified Culinary Professional, Court of Master Sommeliers • 3x winner of the James Beard Award Advanced Sommelier • Oversees all restaurant, food, and beverage concepts • Dubbed “Spirit
Slide 112: In-Theater Culinary Experience
Our In-Theater Culinary Experience: Renowned Cuisine and Cocktails Dining in the Dark: Chef-Inspired Cuisine Offered Across All Theaters • iPic’s answer to the concession stand • Prepared to order, chef-driven menu and craft cocktails similar to that of the 3 restaurants • Available as carry-in for
Slide 113: Renowned Cuisine & Cocktails
Our Restaurants: Renowned Cuisine & Cocktails • Seasonal American Dining • Garden-fresh Italian • Intimate gastro-lounge • Fresh, sustainable artisanal cuisine and cocktail driven ingredients for shareable • Perfect gathering place for restaurant plates friends, creating a unique • Skillfully crafte
Slide 114: Favorable Per Person Spending
Our Restaurants: Favorable Per Person Spending iPic’s F&B spend per patron is significantly higher than peers with favorable beverage mix at 35% of check Average Check Across Restaurant Industry June 2016 YTD, ($) $49.00 $45.00 (2) $36.45 $17.15 $11.97 $30.93 $26.00 $26.17 $16.02 $16.02 $24.21 (1) $
Slide 115: Other Movie Theater Chains Not Close in F&B Spend
Our Restaurants: Other Movie Theater Chains Not Close in F&B Spend F&B Spend Per Patron June 2017 YTD, ($) $24.21 $24.21 $18.46 $18.46 $8.65 $3.95 $4.16 $4.64 (1) (In-Theater (Overall) Dining Only) Source: Public Filings 1. Cinemark US operations only 16
Slide 116: Highly Rated Restaurant Experience
Our Restaurants: Highly Rated Restaurant Experience Open Table’s Diner’s Choice Winner Overall Rating (1) 4.2 City Perch (3): Feb/Apr/May 2017 Food: 4.0 Tanzy (2): Feb/Apr 2017 Service: 4.2 Tuck Room Tavern (2): Feb/May 2017 Ambiance: 4.3 8-Time Winner in 2017 Ratings Distribution Diner Would Recomm
Slide 117: Truly Differentiated Theater Experience
Our Theaters: Truly Differentiated Theater Experience 2016 Revenue Theater Competitors (1) Other Income Other Income 2% 5% Environment: Theatrical Box Office Theatrical 46% Box Office 64% Food, Beverage & Service 52% Food & Beverage 31% 1. Competitors include AMC, Regal and Cinemark 18
Slide 118: Spend: Other Theater Chains Not Even Close
Our Theaters: Spend Other Theater Chains Not Even Close iPic’s average revenue per screen is 135% higher than the rest of the industry $1,674 1 2017 Revenue per Screen $264 (000’s) $1,367 $213 $923 $830 $146 $768 $578 $499 $506 $440 $411 $182 $169 $160 $128 $487 $366 $386 $284 $306 $319 $273 Average
Slide 119: Truly Differentiated Theater Experience
Our Theaters: Truly Differentiated Theater Experience 20
Slide 120: Industry-Leading Performance
Our Theaters: Industry-Leading Performance Meaningfully Higher Ticket Price… …With Significantly Larger F&B Contribution Avg. Ticket Price (per person) Avg. Food & Beverage Spend (per person) $20.15 $24.21 $8.95 $4.89 (1) (1) Theater Peers Theater Peers Premium elements of iPic’s iPic’s high-end din
Slide 121: Unique Offering Drives Strong Customer Loyalty
Our Theaters: Unique Offering Drives Strong Customer Loyalty iPic’s Loyalty Snapshot - Theaters (1) Our Customers Promote the Brand Yes 85% Likely to Recommend 85% “For my 1600th review I have been thinking about what I wanted to write and This is the best #movie what place has changed my life and I
Slide 122: Innovation Drives Stable LT Industry Growth
Our Theaters: Innovation Drives Stable LT Industry Growth 2017 Box Office was 2nd highest on record at $11.1 Bn ($MM) $11,000 $8,250 $5,500 $2,750 $0 Theater Multiplex Era Megaplex Era Destination Era Evolution VCR 500 Channel Cable Disruptive DVD Technology High-Speed Internet Netflix / Hulu Recess
Slide 123: 2018 Slate Could Drive Strong Box Office Results
Our Theaters: 2018 Slate Could Drive Strong Box Office Results Industry Box Office Grosses 2018 to feature a strong stable of ($ Billions) tentpole releases, including: 11.4 3% Year- A Star Wars Story: Jurassic World: Fallen Over-Year Han Solo Fifty Shades: Freed Kingdom Decline 11.1 2016 2017 Deadp
Slide 124: 3 Sources of Brand-Related Revenue
Our Social Business: 3 Sources of Brand-Related Revenue 2016 Revenue Theater Competitors (1) Other Income Other Income 2% 5% Environment: Theatrical Box Office Theatrical 46% Box Office 64% Food, Beverage & Service 52% Food & Beverage 31% 1. Competitors include AMC, Regal and Cinemark 25
Slide 125: Brand Partnerships, Alternative Content & Membership
Our Social Business: Brand Partnerships, Alternative Content & Membership ● Brand Partnerships – $1.8MM in sponsorship income in 2017 ● Alternative Content – Live performances: magic, comedy, and music – Exclusive Netflix partnership – Video game competitions (Minecraft, League of Legends) – Private
Slide 126: Sources of Brand-Related Revenue
Our Social Business: 3 Sources of Brand-Related Revenue 27
Slide 127: iPic Access Fast-Growing Membership Model
Our Social Business: iPic Access Fast-Growing Membership Model iPic Access Membership Program Member Growth Currently at ~1.8 Million members and growing (1) Silver Level 1,800,000 • Free to join • Special pricing on all movie tickets • Weekly newsletters 1,600,000 Gold Level • $29 per year • Earn 1
Slide 128: Company Overview, Business Model, Investor Metrics
Company Overview 1 Our Business Model 2 Investor Metrics 3 Strategic Positioning 4 29
Slide 129: Attractive Whitespace Opportunity
Growth Objectives: Attractive Whitespace Opportunity Significant Upside to Current Pace of New Openings Massive Whitespace Potential # of Units 200+ 44 16 20 2017 2019 2025 Long-Term Potential Source: Management Analysis 30
Slide 130: Targeted Year-3 Unit Economic Model
Financials: Historical Performance Targeted Year-3 Unit Economic Model Targeted Unit Economic Model (Year 3) Construction Costs Leasehold Improvement $9.0 – 10.0MM FF&E Costs $6.0 – 6.5MM Soft Costs ~$2.5MM Total Development Costs $17.5 – 19.0MM Less: Landlord Tenant Improvement $6.5 – 7.5MM Contrib
Slide 131: Historical Performance: Revenue per Screen, Attendance, Spend
Financials: Historical Performance Targeted Year-3 Unit Economic Model Increasing Revenue per Screen (1) Rising Attendance ($000’s) (000’s) 1,181 1,278 1,074 1,035 2,916 893 2,489 1,897 1,907 645 1,521 1,010 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Growing Spend per Visit ($) 44.3
Slide 132: Company Overview, Business Model, Investor Metrics
Company Overview 1 Our Business Model 2 Investor Metrics 3 Strategic Positioning 4 33
Slide 133: New-Age Market Positioning
4 Hour Restaurant Lounge Theater Customer Business + Business + Business = Experience 1 New-Age 1 1 Market Positioning 4 Polished Casual Restaurants 1 + 1 + 1Luxury Farm-to-Glass Lounges/Bars = 4 Theater Experience Entire Night Out in a Single Location 34
Slide 134: Big Growth Opportunity For Eat-ertainment Brand
Big Growth Opportunity For: Eat-ertainment Brand Given Size and Composition of US Full-Service Restaurant Business $260 Billion US Whitespace Potential 200+ US Full-Service Restaurant Business 44 16 20 $2.6 Billion = iPic’s 200+ US Growth Potential # of Units 2017 2019 2025 Long-Term Potential 1% Ta
Slide 135: Big Growth Opportunity For Eat-ertainment Brand
Big Growth Opportunity For: Eat-ertainment Brand Given Size and Composition of US Full-Service Restaurant Business $260 Billion US Full-Service Restaurant Business Kitchen Substitute Experiential-Dining Occasion Occasion Specialized Business-Models and Facilities Focused on One of these Two Occasion
Slide 136: iPic is a Membership Model
Our Social Business: iPic is a Membership Model Membership: iPic Members: Percent of Total System Sales Annual Dollar Spend 1 45% $7,862 2 36% 3 25% $3,011 $431 $156 iPic Starbucks Domino's Elite Platinum Gold Silver ● Key Demographic Highlights ● 60% Female, 40% Male ● 34 – 39 median age ● $119K Av
Slide 137: Investor Highlights: Strong Ownership Group
Investor Highlights: Strong Ownership Group iPic Holdings Village Roadshow ERS & TRS Regal Cinemas PVR Cinemas 37% 27% 27% 7% 2% ● Group of High Net Worth ● A diversified ● Employees’ Retirement ● One of the leading and ● The largest and the most individuals led by Hamid multinational Systems of Ala
Slide 138: Reg A+ IPO: $40M Selling Agents
Reg A+ IPO: $40M Selling Agents Lead Institutional Co-Manager Managing Placement Selling Agent Book-Running Agent 39
Slide 139: Investor Highlights: Key Conclusions
Investor Highlights: Key Conclusions Industry-Leading, Ultimate Entertainment Experience Theater Anchor Tenant of Choice Uniquely Diversified Revenue Base Solid Financial Performance and Unit Economics Strong Growth Potential A-List Management Team and Ownership Group 40