Slide 1: 2015 Fourth Quarter
2015 FOURTH QUARTER (as at December 31, 2015) Contact: Pat Marshall Vice President, Communications and Investor Relations 416.323.6648 pat.marshall@cineplex.com 1
Slide 2: Cineplex Entertainment
Cineplex Entertainment The Largest and Most Successful Motion Picture Theatre Exhibition Company in Canada 162 Theatres 1,655 Screens Guzzo 2% Other Landmark 11% 9% Landmark Box Office Market Share Cineplex 9% For the year ended December 31, 2015 Entertainment Other 78% 11% Guzzo 2% 2
Slide 3: More Than Theatre Exhibition
MORE THAN THEATRE EXHIBITION 3
Slide 4: Corporate Strategy
Corporate Strategy • Continue to enhance and expand our existing infrastructure and service offerings • Capitalize on our core media strengths • Develop and scale gaming-related amusement and leisure concepts, including The Rec Room, by extending existing capabilities and infrastructure • Continue t
Slide 5: Box Office Per Patron (BPP)
Box Office Per Patron (BPP) $9.23 $8.97 $9.15 $9.13 $8.67 $8.74 $8.30 $7.99 $7.99 $8.05 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Premium Offerings 5
Slide 6: Premium Revenue
PREMIUM EXPERIENCES Accounted For 39% of Box Office REVENUE For the year ended Dec 31, 2015 68
Slide 7: Premium Experiences
Premium Experiences Wall to wall screens Dolby ATMOS surround sound Reserved Seating Extra-wide high back, rocker seats Premium Pricing 80 auditoriums as at December 31, 2015 80 AUDITORIUMS 5% OF SCREENS 13% OF BOX OFFICE 7
Slide 8: Premium Experiences: IMAX
Premium Experiences 23 IMAX theatres as at December 31, 2015 All locations are digital and 3D capable Premium pricing Reserved seating 8
Slide 9: Premium Experiences
Premium Experiences Unique out-of-home experience Seats move in synchronization with the action on screen 43 locations as at December 31, 2015 Premium pricing 9
Slide 10: Premium Experiences
Premium Experiences LUXURIOUS GREAT EXCEPTIONAL SEATS FOOD SERVICE 13 10
Slide 11: Premium Experiences
Premium Experiences Enhanced food and beverages Premium pricing 15 locations and 56 screens (as at Dec 31, 2015) Adult-only licensed auditoriums Reserved recliner seats Service at your seat Private licensed lounge and box office 14 11
Slide 12: New Builds and VIP Expansions
New Builds and VIP Expansions 2014 2015 2016 Cineplex Cinemas Scotiabank Theatre Cineplex Cinemas Queensway and VIP (Toronto, ON) Saskatoon and VIP (Saskatoon, SK) Marine Gateway and VIP (Vancouver, BC) Cineplex Cinemas Cineplex Cinemas Cineplex Cinemas Manning Town Centre (Edmonton, AB) Lansdowne a
Slide 13: Food Service
Food Service Focus on speed of service $418 Million Premium promotional programs Digital menu boards REVENUE 2015 Proprietary brands 13
Slide 14: Concession Per Patron (CPP)
Concession Per Patron (CPP) $5.43 $5.09 $4.82 $4.63 $4.41 $4.27 $4.12 $3.96 $3.84 $3.72 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 201514
Slide 15: Locations Nationwide
93 LOCATIONS NATIONWIDE As at Dec 31, 2015 15
Slide 16: Self-serve frozen yogurt
Self-serve frozen yogurt 73 Will replace all Cineplex yogurt RBO’s LOCATIONS NATIONWIDE As at Dec 31, 2015 90+ locations at Dec 2016 19 16
Slide 17: Selection of specialty gourmet popcorn
23 LOCATIONS NATIONWIDE Selection of specialty gourmet popcorn As at Dec 31, 2015 17
Slide 18: SCENE
SCENE 7.3 Number of Members (millions) 6.3 5.3 4.3 3.3 2.7 2.1 1.4 0.6 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 Canada’s top loyalty program for movie lovers Members are represented in 33% of Canadian households One of top five loyalty programs in Can
Slide 19: SCENE: Extra Benefits
SCENE: EXTRA BENEFITS COMPETITIVE ADVANTAGE Drives attendance frequency Encourages concession spend Better target offers to guests Cineplex Store: build awareness and promote trial Great opportunity for film studios and promotional partners 19
Slide 20: Alternative Programming
Alternative Programming CINEPLEX EVENTS The Metropolitan Opera Family Favourites Classic Film Series The Great Digital Film Festival World Wrestling Entertainment National Theatre Live, Concerts, Broadway shows and special events Sensory Friendly Screenings ETHNIC FILM PROGRAMMING South Asian progra
Slide 21: Corporate Strategy
Corporate Strategy • Continue to enhance and expand our existing infrastructure and service offerings • Capitalize on our core media strengths • Develop and scale gaming-related amusement and leisure concepts, including The Rec Room, by extending existing capabilities and infrastructure • Continue t
Slide 22: Cineplex Media / Cineplex Digital Media
Cineplex Media Cineplex Digital Media 22
Slide 23: Media Revenue
Media Revenue ($millions) $154 $134 $110 $91 $82 $84 $67 $61 $56 $47 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009Digital 2010Media2011 2012 Revenue 2013 2014 2015 23
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Slide 25: Cineplex Media
Cineplex Media On-screen advertising – Showtime and digital Pre-Show Cineplex.com advertising Cineplex Magazine and Le magazine Cineplex Specialty media #2 most read magazine in Canada and #1 most read magazine in Sponsorship and naming rights Canada for all demographics under 50 years old Cineplex
Slide 26: Cineplex Media
Cineplex Media TV Cinema Showtime Advertising Correct Brand Ad Awareness Association Entertainment SOURCE: Impact Study 2007-2013, Strategic Marketing Counsel 26
Slide 27: Overwhelming Results for Advertisers
As at Dec 31, 2015 733 SCREENS NATIONWIDE 56 THEATRES NATIONWIDE OVERWHELMING RESULTS FOR ADVERTISERS 36 27
Slide 28: Digital Poster Cases
How do you describe the opposite of beige? 28
Slide 29: Engaging, Interactive
INTERACTIVE MEDIA ZONE (IMZ) Touch Gesture Image Capture Content Manipulation Social Media Connectivity Data Capture ENGAGING, 46IMZs INTERACTIVE AS AT DEC 31, 2015 ADVERTISING EXPERIENCE 29 29
Slide 30: Integrated Media Campaigns
Integrated Media Campaigns 40 30
Slide 31: Cineplex Digital Media
Cineplex Digital Media Path To Purchase Point of Purchase 31
Slide 32: Path to Purchase
Path to Purchase Full-service, digital place-based Award-winning digital signage company ecosystems We design, install, maintain and operate networks for the Experiential technologies on the “path retail, financial, hospitality and entertainment industries to purchase” 32
Slide 33: Oxford Properties
Expanded agreement to develop best-in-class, in-mall digital ecosystem 10 shopping centres in major markets across Canada Enhancing the customer experience Influencing customer behaviour on the "path to purchase" Oxford Properties 33
Slide 34: Ivanhoe Cambridge
Ivanhoe Cambridge 34
Slide 35: Retail Quick Service Restaurant
Retail Quick Service Restaurant POINT OF PURCHASE Market-leading digital signage company Largest digital networks in Canada Proprietary technology Designs, installs, manages and consults on some of the largest digital merchandising networks in North America Financial 35
Slide 36: Quick Service Restaurants
Quick Service Restaurants 36
Slide 37: TimsTV
TimsTV More than 2,200 Tim Hortons locations across Canada One of the largest digital signage networks in Canadian retail 37
Slide 38: Financial
i RBC ‘ Se Royal Bank BCE
Slide 39: Retail
Retail 39
Slide 40: Corporate Strategy
Corporate Strategy • Continue to enhance and expand our existing infrastructure and service offerings • Capitalize on our core media strengths • Develop and scale gaming-related amusement and leisure concepts, including The Rec Room, by extending existing capabilities and infrastructure • Continue t
Slide 41: Cineplex Starburst Inc.
Cineplex Starburst Inc. Largest Amusement Gaming Company In Canada Largest distributor and operator of arcade games in Canada and second largest distributor in the USA Wholly owned and operated Supplies arcade equipment to Cineplex theatres, other circuits and numerous entertainment venues $90 milli
Slide 42: Family Entertainment Centres
Family Entertainment Centres CSI owns seven self-operating FECs across Canada Playdium Mississauga Six other FECs 14 co-operated licensed locations 24 XSCAPE Entertainment Centres 42
Slide 43: XSCAPE Entertainment Centres
XSCAPE Entertainment Centres 24 LOCATIONS NATIONWIDE An entertainment concept in Cineplex theatres featuring the latest video and interactive games along with a redemption centre. As at Dec 31, 2015 21 43
Slide 44: eSports
eSports Cineplex recently entered the world of eSports In Q3 2015, we acquired an 80% interest in the operating assets of WorldGaming Limited, a leading online gaming platform Together we are creating a community that connects live online gaming with unique in- theatre gaming experiences Leagues, ga
Slide 45: Coming in 2016
COMING IN 2016 10-15 locations by 2018 South Edmonton Commons (Spring 2016) Toronto Roundhouse (Q1/17) Deerfoot Crossing Calgary (Q2/17) 40,000 - 60,000 sq. ft. 27 45
Slide 46: Corporate Strategy
Corporate Strategy • Continue to enhance and expand our existing infrastructure and service offerings • Capitalize on our core media strengths • Develop and scale gaming-related amusement and leisure concepts, including The Rec Room, by extending existing capabilities and infrastructure • Continue t
Slide 47: Cineplex Anywhere
Cineplex Anywhere In-Theatre At Home On-The-Go 47
Slide 48: Cineplex.com and Mobile App
Cineplex.com and Mobile App Provides entertainment content before the show Mobile ticketing - no lines IMPROVING THE GUEST EXPERIENCE CINEPLEX MOBILE CINEPLEX.COM One of Canada’s most popular mobile brands 105 million site visits in 2015 Downloaded 13.6 million times and recorded 530 million page vi
Slide 49: Cineplex Store
Re-designed and significantly improved user experience Launched new digital platform Available on XBOX 360, Roku, Samsung, LG, Apple, Windows, and Chromecast Over 6,100 titles available for purchase or download The first movie on-demand service in Canada to be available on Roku Cineplex Store 49
Slide 50: SuperTicket
SuperTicket First bundled offering from multiple studios Purchase movie ticket and pre-order digital download at the same time Access special features, bonus SCENE points, exclusive extras, special footage Digital download available before DVD/Blu-ray release date Now available for the majority of f
Slide 51: Corporate Strategy
Corporate Strategy • Continue to enhance and expand our existing infrastructure and service offerings • Capitalize on our core media strengths • Develop and scale gaming-related amusement and leisure concepts, including The Rec Room, by extending existing capabilities and infrastructure • Continue t
Slide 52: Acquisitions
Acquired August 2013 Acquired October 2013 Acquired March 2015 Acquired September 2015 52 52
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Slide 54: Total Revenue
Total Revenue ($millions) $1,371 $1,235 $1,171 $1,092 $1,006 $998 $964 $850 $805 $740 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 54
Slide 55: Adjusted EBITDA
Adjusted EBITDA ($millions) $250 55
Slide 56: Box Office Revenue
Box Office Revenue ($millions) $711 $665 $673 $638 $581 $598 $577 $511 $489 $459 77.0 72.7 73.6 70.0 71.2 69.0 66.1 63.5 61.1 57.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Attendance (millions) 56
Slide 57: Food Service Revenue
Food Service Revenue ($millions) $418 $375 $350 $329 $288 $295 $292 $5.43 $252 $235 $5.09 $214 $4.82 $4.63 $4.41 $4.27 $4.12 $3.96 $3.84 $3.72 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Concession Per Patron (CPP) 57
Slide 58: Media Revenue
Media Revenue ($millions) $154 $134 $110 $91 $82 $84 $67 $61 $56 $47 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009Digital 2010Media2011 2012 Revenue 2013 2014 2015 58
Slide 59: Other Revenue
Other Revenue $88 ($millions) $53 $46 $41 $38 $32 $28 $25 $26 $21 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 59
Slide 60: Total Revenue Per Patron
Total Revenue Per Patron $17.80 $16.77 $16.11 $15.11 $15.34 $14.59 $13.78 $12.89 $13.17 $13.38 Box Office Per Patron (BPP) Concession Per Patron (CPP) Media Per Patron 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Other Per Patron 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 60
Slide 61: 2015 Full Year Results
2015 Full Year Results (millions, except adjusted EBITDA margin and per patron amounts) 2015 2014 % Box Office $711.1 $672.7 5.7% Food Service $418.4 $375.0 11.6% Media $153.6 $134.2 14.5% Other $87.7 $52.8 66.2% Total Revenue $1,370.9 $1,234.7 11.0% Adjusted EBITDA $249.8 $201.0 24.3% Adjusted EBIT
Slide 62: Payout Ratio and Dividends
Payout Ratio Dividends $1.54 $1.48 112% $1.41 $1.33 $1.28 $1.24 $1.26 $1.26 80% $1.18 $1.15 $1.15 69% 67% 65% 64% 64% 62% 59% 57% 56% 2005 2006 2005 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 63: Credit Facilities and Covenant Leverage Ratio
Credit Facilities (millions) Maturity Capacity Drawn Reserved Remaining Term Facility Oct. 2018 $150 $150 — — Revolving Facility Oct. 2018 $250 $74 $5.7 $170.3 Total $400 $224 $5.7 $170.3 2.89 Covenant Leverage Ratio 2.39 1.94 1.88 1.64 1.58 1.19 1.27 1.13 0.89 0.97 2005 2006 2007 2008 2009 2010 201
Slide 64: Outstanding Shareholder Return
OUTSTANDING SHAREHOLDER RETURN $55 50 45 40 35 30 25 20 15 10 5 2015 64
Slide 65: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Management of Cineplex uses certain non-GAAP financial measures to evaluate performance. These measures are either comparable to similar measures presented by other issuers or are widely used in the theatre exhibition industry. For a detailed discussion of these non-GAAP