Reading International Inc · NASDAQ:RDI
Reading International — Shareholder Meeting (December 2021)
66 slides from Reading International's shareholder meeting presentation, Dec 13, 2021
Slide 1: Annual Meeting of Stockholders, December 8, 2021
/, READING ANNUAL MEETING OF STOCKHOLDERS DECEMBER 8, 2021
Slide 2: Disclaimers
READING DISCLAIMERS ‘Our comments today may contain forwardlooking statements ‘and management may make additional forardooking ‘statements in response to your questions Such wrtton and oral -sclosures are made pursuant to the'Safe Harbor provision of the Private Securities tigation Reform Actof 995,
Slide 3: Financial Reconciliations
FINANCIAL RECONCILIATIONS ‘We use EBITDA in the evaluation of our Company’ performance since webelive that EBITDA provides a useful measure of financial performance and valve. We belive thie principally forthe folowing reason= ‘We beliovethat EBITDA is an accepted industry-wide comparative measure o
Slide 4: Australia, New Zealand and United States portfolio
AUSTRALIA TIBNSSF 3mixed-use centers anchored by Reading Cinemas and 69 other thi party tenants +888243F 2parcels improved with Reading Cinemas +8986SF Office building in Melbourne CBD lone thirdparty tenant) AUSTRALIA + 26 locations /202 screens += iblargest exhibitor n terms of box afice™ + Brands
Slide 5: Real Estate & Cinema Revenue
REAL ESTATE & CINEMA REVENUE SYNERGISTIC DIVERSIFICATION STRATEGY KEY TO BRIDGING COVID-19 PANDEMIC 2020 soL08AL PROPERTY scLoBAL CINEMA Q3 2021 unrreD, AUSTRAUA STATES "NEW ZEALAND “cLowat PROPERTY unrrep ‘STATES sc108AL CINEMA AUSTRALIA ‘NEW ZEALAND
Slide 6: Our Mission
OUR MISSION STRATEGICALLY DRIVE THE DEVELOPMENT AND OPERATION OF OUR GLOBAL REAL ESTATE & CINEMA ASSETS. TO CREATE LONG-TERM STOCKHOLDER VALUE IN 2020-2021, WE PROTECTED OUR STOCKHOLDERS BY MONETIZING FIVE STRATEGICALLY SELECTED PROPERTIES TO SHIELD THE MAJORITY OF OUR CASH GENERATING ASSETS THROUGH
Slide 7: Generated $142.1 Million in Gross Sales Proceeds
GENERATED $142.1 MILLION IN GROSS SALES PROCEEDS BY MONETIZING FIVE REAL ESTATE ASSETS UNDEVELOPED LAND. UNDEVELOPED LAND. MANUKAU, NEW ZEALAND COACHELLA, CALIFORNIA, March 4, 2021 March 5, 2021 GROSS SALES PROCEEDS = $56.1M ($54.5M Net) GROSS SALES PROCEEDS = $5.5M ($5.3M Net) AUBURN/REDYARD CENTRE
Slide 8: Strong Response to Unprecedented COVID-19 Crisis
STRONG RESPONSE TO UNPRECEDENTED COVID-19 CRISIS Unlike other cinema and real estate companies, we protected our stockholders and did not issue equity thereby diluting existing stockholder positions (except nominal amounts under existing compensation programs}. Within the first eight months of 2021,
Slide 9: Dual Business Strategy: Real Estate & Cinemas
DUAL BUSINESS STRATEGY Pre-COVID, our relatively stable cinema cash flow allowed us to grow aur real estate portfolio without Real Estate & Cinemas disproportionately increasingourdebtlevels. ‘Through COVID, and without our stable cinema cash flows, we monetized five real estate assets whose values
Slide 10: Audiences returning to movie theaters
a As our cinemas were permitted to open following COVID-9 closures, audiences have demonstrated an increasing willingness to retum to movie theaters when quality, properly marketed Hollywood movies, were available Global moviegoers will continue to embrace the ‘shared community experience of movieso
Slide 11: Global Real Estate Strategy 2022-2023
GLOBAL REAL ESTATE STRATEGY 2022-2023 Taking into account experiences from the 2020- 2021 COVID19 pandemic, we will execute operational, marketing, leasing and capital investment strategies to engage with our communities and increase the value of our real estate assets. Complete the leasing of 44 Un
Slide 12: AU/NZ Real Estate Portfolio
AU/NZ REAL ESTATE PORTFOLIO ‘7 multi-tenanted properties featuring 270,680 RSF (25,147 m2) of third-party space 73 existing third-party tenants occupying 254,641 SF (23,657 m?) 94% occupancy in key AU/NZ multi-tenanted centers 6 land parcels improved with Reading Cinemas
Slide 13: Newmarket Village
newmarket VILLAGE MIXED-USE DEVELOPMENT ANCHORED BY CINEMA IN BRISBANE CITY (QLD) SN . ~ NEWMARKET VILLAGE ANCHORS AU REAL ESTATE PORTFOLIO Third PartyTenants 45 ry Anchor Tenants Coles Supermarket we Reading Cinemas Ww Newmarket Hotel by ALH \ Net Rentable Square Feet 164,991 SF (15,328 m2) 1 256%
Slide 14: Cannon Park
i Meza m 208% 210% mare 32% N 36% We Leisure Reading Cinemas Food & Beverage Service Government Tenant Vacant CANNON PARK CINEMA ANCHORED CENTER IN TOWNSVILLE (QLD) Third Party Tenants Anchor Tenants Net Rentable Square Feet Average Occupancy as of 9/30/2021 Weighted Average Lease Term ‘1 New Lease
Slide 15: Belmont Common
: BELMONT B common CINEMA ANCHORED CENTER IN PERTH (WA) Third PartyTenants 5 = Anchor Tenants Reading Cinemas \ Dome i Net Rentable Square Feet 60,118 SF (5,585 mm?) 750% Reading Cinemas Average Occupancy as of 9/50/2021 94.3%" — = omer TT Weighted Average Lease Term = 4.85 years** ae ‘1 New Lease -
Slide 16: AU Property Portfolio Strengthens Through COVID
Slide 17: AU/NZ Property Portfolio Strengthens Through COVID
AU/NZ PROPERTY PORTFOLIO STRENGTHENS THROUGH COVID + Despite the COVID-19 impacts, during 2020 and 2021 we continued to enhance our property portfolio with new leases/lease renewals, resulting in a 94% occupancy rate across our AU/NZ Real Estate Portfolio. + Between April 2020 and September 2021, we
Slide 18: AU Property Portfolio Strengthens Through COVID
AU PROPERTY PORTFOLIO STRENGTHENS THROUGH COVID annon Park and Belmont Common. 021, 13 new leases (31312 SF/2909
Slide 19: AU Property Portfolio Strengthens Through COVID
AU PROPERTY PORTFOLIO STRENGTHENS THROUGH COVID At Newmarket Village, Cannon Park and Belmont Common, between April 2020 and September 2021, 8 existing tenants (18794 SF/1,746 m?) in AU exercised lease options and invested in new fitouts providing a foundation for long-term growth
Slide 20: AU Property Rent Collections
AU PROPERTY RENT COLLECTIONS oe. , PROACTIVELY MANAGED THROUGH 2020-2021 + We supported our eligible third-party AU property tenants with rent abatements and/or deferrals, in line with Code of Conduct legislation. The legislation was further extended in VIC and NSW due to the latest COVID-19 Delta o
Slide 21: Key Property Assets: Wellington
KEY PROPERTY ASSETS WELLINGTON, CAPITAL OF NEW ZEALAND On a consolidated basis and through various subsidiaries, we own 161,071 SF of land of which 85,000 SF is improved with the Courtenay Central building, which includes Reading Cinemas (temporarily closed for seisrnic reasons) and 53,755 SF of ret
Slide 22: Key Property Assets: Wellington, Capital of New Zealand
KEY PROPERTY ASSETS WELLINGTON, CAPITAL OF NEW ZEALAND Wellington remains a resilient global city, and although COVID-19 has impacted retail and commercial markets, the leasing market is showing signs of recovery Te Aro is a neighborhood with a vibrant café culture, world- class dining, breweries, r
Slide 23: Key Property Assets: Wellington development
KEY PROPERTY ASSETS - WELLI = Without incurring material development funds during the 2020-2021 COVID-19 pandemic, we continued to work through options to determine feasible development strategies. + In cooperation with the Wellington City Council: © We obtained, through our relevant subsidiaries, a
Slide 24: Elevating Community by Engagement
ELEVATING COMMUNITY BY ENGAGEMENT REMAINS CORE TO OUR PROPERTY PORTFOLIO STRATEGY Despite the impacts and uncertainty of COVID-19, ‘we continue to engage with our communities. We prioritize giving back to our local communities and loyal customers by marketing to their needs through the creation of m
Slide 25: Continued Strengthening of Our Internal Property Team
CONTINUED STRENGTHENING OF OUR INTERNAL PROPERTY TEAM + Following an earlier transition of bringing our property management in-house, in April 2020 we also transitioned our property portfolio lease administration in-house. + This resulted in financial efficiencies, improved third-party tenant relati
Slide 26: US Real Estate Portfolio
gaa US REAL ESTATE PORTFOLIO Up to 7313 SF of net leasable area (inclusive of potential BOMA adjustments) comprised of retail & office ‘75% interest in a 21,000 SF NYC cinema building (with development potential of 80,000 SF, plus additional 16,000 SF of air rights) - Cinemas 123 9,000 SF Off Broadw
Slide 27: New York City - Off-Broadway Theatres
NEW YORK CITY - OFF-BROADWAY THEATRES COMPANY OWNS LAND & BUILDINGS MINETTA LANE THEATRE (aj Nyctot
Slide 28: Union Square
44 UNION SQUARE UP TO 73,113 SF OF RETAIL/OFFICE SPACE IN UNION SQUARE AREA OF NYC + Weare working with a leading national retailer to take three floors to create a flagship store with a targeted rent start of 2022 + With respect to the remaining floors, the NYC leasing market is showing signs of re
Slide 29: Sepulveda
SEPULVEDA 24,000 SF OFFICE BLDG. IN CULVER CITY, CA + Culver City and neighboring Playa Vista are now home % Google, Facebook, Microsoft, IMAX, Vevo, Verizon, Electronic n, HBO and Tik full. flo rrently serves as one of thi tional and administrative centers and th leased to WWP Inc, a leading beauty
Slide 30: Cinemas 123 and Reading Viaduct
CINEMAS 123 NEW YORK CITY PROPERTY ACROSS FROM BLOOMINGDALES + 7.900 SF gross land area + With inclusionary rights, we can build up toa maximum of approx. 96,000 RSF above grade. + Though NYC commercial markets have been heavily impacted by COVIDA8, ‘we are confident in the long-term outlook for NYC
Slide 31: Global Cinema Strategy 2022-2023
GLOBAL CINEMA STRATEGY 2022-2023 + Proactively adjust our operating, programming and marketing strategies to take into account ‘the wide-ranging impacts of the 2020-2021 COVID-19 crisis, including building long-term guest confidence in a safe and responsible cinema environment. Improve operating inc
Slide 32: Global Cinema Portfolio
GLOBAL CINEMA PORTFOLIO SS
Slide 33: International Portfolio
INTERNATIONAL PORTFOLIO. TH AvciInea nevenu AU AND NZ ARE TWO STABLE ECONOMIES WITH STRONG LOCAL FILM eS PRODUCTION, ENHANCING PROGRAMMING LED BY HOLLYWOOD MOVIES BE USCINEMA REVENUE + 60% of our Total Theater Revenues generated in AU and NZ* ‘OWNERSHIP VS. LEASING (ce REDUCES MONTHLY OCCUPANCY COST
Slide 34: Global Cinemas 2020-2021 Timeline
GLOBAL CINEMAS 2020 - 2021 TIMELINE ‘COVID-19 RELATED TEMPORARY CLOSURES AND RE-OPENINGS AT MONTH'S END* e o & US. OPENINGS SAU OPENINGS mNZ OPENINGS
Slide 35: Global Cinemas Operational Status as of December 7, 2021
GLOBAL CINEMAS OPERATIONAL STATUS AS OF DECEMBER 7, 2021 PROOF OF ‘CINEMA COUNTRY OPERATIONAL STATUS VACCINATION a ¢ APPLICABLE SEATING DIVISION NATION RATE | OPERATIONALSTATUS = peOUiREMENTS REQUIREMENTS RESTRICTION: (GUESTS & STAFF) ‘Australia | 86.93%0f people 2+ fully |100% of circuit re-opened.
Slide 36: 2021 Global Industry Box Office Recovering
2021 GLOBAL INDUSTRY BOX OFFICE RECOVERING COVID-19 DECIMATED THE 2020 INDUSTRY BOX OFFICE, BUT 2021 IS BOUNCING BACK YTD NOVEMBER 2021 2020 BOX OFFICE Boxeeriee $122 billion $173 billion Global (down 72% vs. 2019) (down 60% vs. 2019) $2.3 billion $36 billion North America (down 81 0 (down 64% vs, 2
Slide 37: Anticipated Blockbusters Premiering in Last Days of 2021
2021 GLOBAL INDUSTRY BOX OFFICE RECOVERING ANTICIPATED BLOCKBUSTERS PREMIERING IN LAST DAYS OF 2021
Slide 38: Each Cinema Division Box Office Outperforms Industry
EACH CINEMA DIVISION BOX OFFICE OUTPERFORMS INDUSTRY ON % BASIS AS OF YTD ENDED NOV. 2021 (VS SAME PERIOD 2020) UNITED STATES AUSTRALIA NEW ZEALAND Market mReading
Slide 39: 2022 Global Movie Line-Up
2022 GLOBAL MOVIE LINE-UP EXCITING AND ENCOURAGING a i Bs FANTASTIC gat BETS
Slide 40: Angelika - Our Specialty Brand
= ANGELIKA - OUR SPECIALTY BRAND ANGELIKA Film CENTER & CAFE SPECIALTY FILM TITLES HAVE SHOWED STRENGTH IN 2021 =e Ws ) as E ee THE FRENCH DISPATCH LcORICE PIZZA ROADRUNNER $143,000-Opening Week Box Office at $15,000 - Opening Week Box Office at $63,000 -Opening Week Box Office at Angelika NYC- Eigh
Slide 41: Quality specialty releases
‘~ ae i / — ee am QUALITY SPECIALTY, RELEASES WILL SUP ANGELIKA CIRCUIT INTO EARLY 202 GEDY-OF: MA&SETH
Slide 42: AU/NZ Film Production Supports Local Box Office
2020-2021 - AU/NZ FILM PRODUCTION SUPPORTS LOCAL BOX OFFICE WE ANTICIPATE AN INCREASING FUTURE CONTRIBUTION BY AU/NZ FILM PRODUCTION TO LOCAL EXHIBITORS ‘x THE DRY PENGUIN BLOOM RAMS savacE ‘cousINS ‘with A$20.8 milion ‘With A875 milion in box Generated AS4.7m in With NZ$16 milion in \With NZ$16 mil
Slide 43: The Evolving Theatrical Window
THE EVOLVING THEATRICAL WINDOW + Major Studios/Specialty Distributors continue to publicly and privately recognize that the event of watching a movie in a Big Screen environment with a shared audience has played and will continue to play an essential part in the distribution of entertainment. + Econ
Slide 44: Box Office Impacted, But Bounces Back
FICE IMPACTED, BUT BOUNCES'BACK Due to the various 2021 COVID lockdowns in AU, our AU Reading Cinemas circuit was negatively impacted by (i) 431 days of cinema closures and (ii) studio movie release changes. As of October 29, 2021, all Reading Cinemas in Australia had re-opened. Movies releasing in
Slide 45: Comscore quote on the movie theatre experience
“The immersive bigger-than-life movie theatre experience remains a singular, essential and relevant part of the entertainment diet of consumers around the world. The gold standard experience created by cinemas combined with amazing studio films will continue to draw enthusiastic crowds now and in th
Slide 46: After Significant Investment in Our Cinema Portfolio
AFTER SIGNIFICANT INVESTMENT IN OUR CINEMA PORTFOLIO SINCE 2015, CIRCUIT IS READY FOR POST COVID-19 RECOVERY RECLINER SEATING + 4696.0f US screens feature Luxury Recliner Seating + 31% of AU/NZ screens feature Luxury Recliner Seating PREMIUM LARGE FORMAT (PLF) SCREENS. + 53% of US theaters feature a
Slide 47: US Cinemas Upgraded Through COVID-19
US CINEMAS UPGRADED THROUGH COVID-19 TWO CONSOLIDATED THEATRES IN HAWAII RENOVATED + Consolidated Theatres at the Kahala Mall re-opened November 2021 © Alleightscreens converted to luxury recliners © F&Belevatedwith creation of dinein Café & Bar © Lobbyrenovated + Consolidated Theatres at Kapolei En
Slide 48: F&B Focus Drives Record Spend Per Patron Again
2021 =i 021 - F&B FOCUS DRIVES RECORD SPEND PER PATRON AGAIN RECORD F&B SPEND PER PATRON SET BY EACH DIVISION YTD AS OF 9/30/2021 . (VS. YTD 9/30/2020) oNio US___US$7.70__(up 35% SOUP [=z i AU___AU$6.57__(up 20% NZ NZ$5.57 (up 15%) THE ETERNAL 2e a. COCKTAIL ae ‘GY SOAKED BLUEBERRIES, WHITE RUM, } S
Slide 49: Reading Cinemas Development Pipeline Continues in AU
READING CINEMAS DEVELOPMENT PIPELINE CONTINUES IN AU THROUGH cov EJ TWO NEW READING CINEMAS OPENED, ONE SCHEDULED TO OPEN BEFORE YEAR END AND ONE ANNOUNCED TITAN LUX jth TTTANLUXE at b
Slide 50: Future Focus on Expanding Angelika Brand
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND THE CURATED FOCUS OF THE ANGELIKA IS ON INDEPENDENT AND GLOBAL FILM, DOCUMENTARIES & THE MORE SPECIALIZED MOVIES FROM MAJOR STUDIOS be ANGELIKA FILM CENTER & CAFE = Repositioned select theaters to incorporate Angelika branding + First new international state-
Slide 51: Future Focus: Rebranded Certain Theaters
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND REBRANDED CERTAIN THEATERS In 2021, we rebranded certain existing theaters with a strong and historic focus on curated specialty programming consistent with Angelika’s mission. Rebranding offers operational efficiencies and increased global audience for more
Slide 52: First New International Angelika to Open
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND FIRST NEW INTERNATIONAL STATE-OF-THE-ART ANGELIKA TO OPEN + First international Angelika Film Centre ‘opens in Brisbane area (QLD) in late 2022 in the sophisticated mixed-use development, South City Square + 8 screens featuring all luxury recliners + Elevated
Slide 53: Angelika Anywhere Streaming Service Launches AU/NZ
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND STREAMING SERVICE LAUNCHES AU/NZ ‘ANGELIKA’ 27 ANYWHERE Co bby forthe films. Not subscription based or ad-supported, \uring the first half of 201
Slide 54: Membership Program Launches in US
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND MEMBERSHIP PROGRAM LAUNCHES IN US A [Ee ety A +The State Cinema by Angelika Membership Program is a paid annual membershi rogram. STATE CINEMA Peres BY ANGELIKA During QI 2022, an Angelika Membership Program will launch in the US. EMBERSHIP
Slide 55: Continuation of COVID-19 Initiatives: Contactless Transactions
CONTINUATION OF CERTAIN COVID-19 INITIATIVES: CONTACTLESS TRANSACTIONS. "e798. + As communities faced COVID-19 challenges, we attempted to provide contact free alternatives in our cinemas. + In Q4 2020, we launched ordering F&B online on our US based app. We are SKIP THE LINE & further refining the
Slide 56: Continuation of COVID-19 Initiatives: Private Watch Parties
CONTINUATION OF CERTAIN COVID-19 INITIATIVES: PRIVATE WATCH PARTIES. As communities faced COVID-19 challenges, we took into account the varying comfort levels of different audience members and created a range of private auditorium rental options. US website/app modifications completed to allow guest
Slide 57: Continuation of COVID-19 Initiatives: Creative Programming
CONTINUATION OF CERTAIN COVID-19 INITIATIVES: CREATIVE PROGRAMMING AND EXPERIENCES LIVE MUSIC DINING OUTDOORS SAT FEB 27 8 PM POPCORN SALES FRI TO SAT 4 [6.8 SUN 2 To 6| TOBER #2" ‘en dies TUESDAY ANY MOVIE ANY SHOW. OT > 503 Thats 8 50s Ww 50x Due to lack of major studio content during the COVID-9
Slide 58: Executive Vice President, Chief Financial Officer & Treasurer
EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER & TREASURER
Slide 59: Summary Financial Data
SUMMARY FINANCIAL DATA NINE MONTHS ENDED STATEMENT OF OPERATIONS MONEE (S in thousands, except per share data) 2020 Revenues $992 S$ e2B41 $207,886 Operating Income (Loss) 67461) (66610) 7209 Interest Expense, net 10.487) (6176) 6324) Cain (Loss on Sale of Assets and Other Income (Expense) 96581 87)
Slide 60: Summary Financial Data
SUMMARY FINANCIAL DATA STATEMENT OF OPERATIC YEAR ENDED Dt (Sin thousands, except per share data) 2020 Revenues $ 77862 $276,768 ‘Operating Income (Loss) (ass) 9723 Interest Expense, net (9354) (7.904) Gain (Loss) on Sale of Assets and Other Income (Expense) 292 323 Income Tax (Expense) Benefit 4967
Slide 61: Summary Balance Sheet
SUMMARY BALANCE SHEET ‘Cash and Cash Equivalents $ 90887 $25,826 $1235 Receivables 2565 2.438 7085 (Other Current Assets R038 27203 79799 Total Current Assets 105.485 56.467 26999 (Operating Property, Net 305510 353125 25838 Operating Lease Right Of-Use Assets 226,855 220503 223873 Investment and De
Slide 62: Reading International Debt
READING INTERNATIONAL DEBT DEBT SUMMARY AS OF SEPTEMBER 30, 2021 | AS OF DECEMBER 31, 2020 ‘Corporate and/or Expiration Contractual Capacity Unused ntractual © Capacity Unused Property Year Capacity Used Capacity Used Capacity Debt ($in thousands) ‘Trust Preferred Securities $798 s 798 15995 Sepulve
Slide 63: Amended loan agreements subsequent to September results
SUBSEQUENT TO OUR SEPTEMBER RESULTS, WE AMENDED THE FOLLOWING LOAN AGREEMENTS: Bank of America © On November 8, 2021, we amended our credit agreement with Bankof America. Thisnew amendment replaces all of the required covenants with a single liquidity covenant and the loan has now been converted int
Slide 64: 2001-Sep 2021 TTM Yearly Financial Trend
2001-SEP 2021 TTM YEARLY FINANCIAL TREND in US$ Revenue & Adj EBITDA $350.00 300,000 | s2so,c00 | 200,000, | 3 $150,000 $200.00 $50000 st { $480,000) + Seonfn) TT aor zs | 206 | 207 ae Proforma 1 fms 3170595 | $162.72 | $272866 | $230707 | $953057 | S2a5781 | Sbeeors | SB7is70 | Seo6.aK7 8588 72.308
Slide 65: The Core Values & Guiding Principles
THE CORE VALUES & GUIDING PRINCIPLES INSPIRED BY OUR FOUNDER SUPPORTED US THROUGH COVID-19 CRISIS AND RECOVERY EMPATHETIC approach to our stakeholders ENTREPRENEURIAL approach to our business EDUCATED analysis underpins our strategies ENGAGING our guests is paramount to our success EXECUTION is a fo
Slide 66: Still Here
READING STILL HERE OUR REAL ESTATE IS STRONG OUR CINEMAS ARE RECOVERING
Reading International — Shareholder Meeting (December 2021) on 6ix