Imax China Holding Inc · HKEX:1970

Imax China — Investor Presentation (March 2021)

26 slides from Imax China's investor presentation, March 2021

  1. Slide 1: IMAX China (1970 HK) Investor Presentation

    IMAX China (1970 HK) Investor Presentation March 2021 ® IMAX 1 Corp.

  2. Slide 2: Disclaimer

    Disclaimer This document is not intended to form or provide any basis of any decision in connection with IMAX China Holding, Inc. (the "Company") or any other entity in which it directly or indirectly holds any interest (together with the Company, hereinafter referred to as the "Group"). It does not

  3. Slide 3: Ecosystem, Business Model, Investment Thesis, Financials

    • Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 3

  4. Slide 4: Unique Position in the Greater China Entertainment Ecosystem

    Unique Position in the Greater China Entertainment Ecosystem Upstream Downstream ECOSYSTEM Filmmakers Studios Exhibitors Audience The IMAX IMAX IMAX Digital IMAX Theatre Media Experience TECHNOLOGY Camera Systems Technology Remastering Technology (DMR) “Films to the Fullest” Content Content Content

  5. Slide 5: Chinese Film Market Sees Room for Growth From Both Demand and Supply Perspective

    Chinese Film Market Sees Room for Growth From Both Demand and Supply Perspective Movie admission per capita No. of cinema screen per 100,000 population 80 14.0 2,000 5.00 70 70 12.3 12.0 1,800 1,716 1,727 4.50 1,620 60 60 1,600 4.00 10.0 3.78 51 1,360 1,340 1,374 1,400 1,270 1,320 1,314 1,304 3.50 5

  6. Slide 6: Business Model

    • Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 6

  7. Slide 7: Our Business Model - Diversifying Monetization

    Our Business Model - Diversifying Monetization IMAX China business models Technology Network Business • Film revenue (from studios) Box office-based • Revenue sharing fee (from JV + revenue Hybrid exhibitors) Technology Sales & Maintenance Business • Maintenance revenue (from all Network-based exhib

  8. Slide 8: Our Network Effect Drives Higher Recurring Revenue Mix

    Our Network Effect Drives Higher Recurring Revenue Mix Increasing mix of recurring revenue Installation-based Network-based Box office-based 41.7% 39.2% 48.3% 49.8% 17.7% 18.2% 11.0% 13.3% 61% 40.6% 40.6% 42.6% 36.9% FY2016 FY2017 FY2018 FY2019 Note: Recurring revenue refers to box office and networ

  9. Slide 9: Investment Thesis

    • Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 9

  10. Slide 10: Why IMAX China is Well-Positioned in a Post-Pandemic Theatrical Industry

    Why IMAX China is Well-Positioned in a Post-Pandemic Theatrical Industry Demonstrated Demand IMAX Beyond COVID Upon Reopening Accelerating Structural Tailwinds Differentiated positioning ❑ Box office market share gain to 3.6% in 2H20, ❑ “Blockbusterization” effect in content ❑ China’s largest premiu

  11. Slide 11: IMAX China Leads Industry Recovery Despite Capacity Constraint and Temporary Delay in Hollywood Slate

    IMAX China Leads Industry Recovery Despite Capacity Constraint(1) and Temporary Delay in Hollywood Slate IMAX China Admission/ Box Office IMAX China Local Language Box Office Market Share as % of 2H 2019 Level (2) 90% 3.0% 2.7% 79% 77% 80% 2.5% 70% 59% 61% 2.0% 60% 2.0% 1.8% 50% 1.6% 1.5% 40% 30% 1.

  12. Slide 12: Theatrical Business Increasingly Centered Around Blockbusters

    Theatrical Business Increasingly Centered Around Blockbusters IMAX titles that surpassed a RMB1 billion box office milestone Total box office of top five grossing movies since theatre reopening 30,000 (in RMB millions) 60% 47% 50% 25,000 40% 20,000 31% 25% 25% 30% Detective Chinatown 3 (Feb 2021) Th

  13. Slide 13: Higher Indexing as Local Content Gravitates towards IMAX Genres

    Higher Indexing as Local Content Gravitates towards IMAX Genres with Rising Production Value Detective Chinatown 3 (Feb 2021) The Eight Hundred (Aug 2020) ▪ Filmed with IMAX cameras ▪ Filmed with IMAX cameras ▪ 5th highest-grossing title in China film history ▪ 11th highest-grossing movie in China f

  14. Slide 14: Early Success in Local Language Programming Drives Market Share Gain

    Early Success in Local Language Programming Drives Market Share Gain… IMAX Box Office Market Share IMAX China National Holiday(1) Box Office & Market Share 140 3.5% 3.2% 8.0% 128 7.3% 6.8% 7.0% 120 3.0% 7.0% 104 6.0% 5.8% 100 2.5% 2.2% 2.4% 2.1% 5.0% 80 1.9% 2.1% 2.0% 4.0% 60 1.7% 58 1.5% 3.0% 2.7%

  15. Slide 15: And Rising Box Office Contribution From Local Language Titles

    …And Rising Box Office Contribution From Local Language Titles IMAX China box office distribution (Hollywood vs. Local) China box office distribution (Hollywood vs. Local) Hollywood box office Hollywood box office Local language box office Local language box office 16.3% 33.6% 36.0% 42.0% 40.0% 46.4

  16. Slide 16: Strong Film Slate Empowered with IMAX DNA

    Strong Film Slate Empowered with IMAX DNA (as of March 5, 2021) SHANG-CHI GODZILLA Black FAST & Top Gun: and the Legend VS. KONG Widow FURIOUS 9 Maverick of the Ten March 2021 May 2021 June 2021 July 2021 Rings July 2021 No Time to SPIDER- THE MISSION Dune MAN: No Oct 2021 Die ETERNALS IMPOSSIBLE: 7

  17. Slide 17: Proven Opportunity to Gain Market Share in Local Language Titles

    Proven Opportunity to Gain Market Share in Local Language Titles The Eight Hundred (Aug 2020) Legend of Deification (Oct 2020) Shockwave 2 (Dec 2020) Detective Chinatown 3 (Feb 2021) A Writer’s Odyssey (Feb 2021) • First local-language title shot • Best 4-day IMAX opening • 6th highest-grossing loca

  18. Slide 18: Promising Pipeline of Potential Local Language Titles

    Promising Pipeline of Potential Local Language Titles Mozart From Creation of the The Battle at Lake Space (1) Changjin Chinese Doctors Gods I (2) (1): Filmed in IMAX (2): First installment of Fengshen Trilogy Note: Release schedule in China to be determined. Multiple blockbuster caliber potential l

  19. Slide 19: Industry Consolidation an Opportunity, Not a Risk

    Industry Consolidation an Opportunity, Not a Risk IMAX China Theatre Penetration in Top 500 Complexes 80% IMAX China 2020(1) GBO by Multiplex Cohort 72% 70% 68% 5% 64% 62% 65% Top 5% 62% 3% Top 6-10% 60% 59% Top 11-15% 53% 54% 9% Top 16-20% 50% 49% Below top 20% 40% 30% 20% 21% 61% 10% 0% Top 25 Top

  20. Slide 20: Continued Network and Partnership Expansion

    Continued Network and Partnership Expansion IMAX Greater China theatre footprint Greater China Backlog Mix2 Backlog Full revenue sharing Hybrid revenue sharing Sales arrangement IMAX zones: approximately 1,400 1 251 376 106 263 As of Dec 31, 2020 Note 1: As of Dec 31, 2020 Note 2: As of Dec 31, 2020

  21. Slide 21: Financials

    • Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 21 21

  22. Slide 22: Strong Financial Position and Unique Business Model Drives Quick Profitability Turnaround

    Strong Financial Position and Unique Business Model Drives Quick Profitability Turnaround Strong fundamentals Increase shareholder value ❑ Asset-light business model provides financial flexibility ❑ Strong rebound in box office upon theatre reopening drove quick profitability turnaround to 2H20 adju

  23. Slide 23: Key Highlights (2H20 vs. 1H20)

    Key Highlights (2H20 vs. 1H20) Key Financial Highlights 2H2020 1H2020 (in USD 000, unless otherwise stated) Greater China Box Office1 91,856 7,393 Theatre Network (in unit) 745 714 Total Revenue 45,669 6,662 - Technology Network Business 14,062 1,120 Take-rate2 15.3% 15.1% - Technology Sales & Maint

  24. Slide 24: Key Highlights (FY20 vs. FY19)

    Key Highlights (FY20 vs. FY19) Key Financial Highlights FY2020 FY2019 YoY change % (in USD 000, unless otherwise stated) Greater China Box Office1 99,249 365,807 (72.9)% Theatre Network (in unit) 745 717 3.9% Total Revenue 52,331 124,294 (57.9)% - Technology Network Business 15,182 52,918 (71.3)% Ta

  25. Slide 25: Long-term Shareholder Value Creation

    Long-term Shareholder Value Creation Capital returned to shareholders Capital expenditure (in USD mn) (in USD mn) 30.0 21% 22% 20% 19% 33.3 25.0 17% 15% 27.6 14.1 20.0 12% 9% 15.0 21.5 15.5 26.6 24.2 24.1 7% 10.0 19.1 19.2 13.9 2% 5.0 6.1 4.6 1.5 - -3% FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY201

  26. Slide 26: Investor Presentation IMAX® is a registered trademark of IMAX Corporation.

    Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 26

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