Reading International Inc · NASDAQ:RDI
Reading International — IDEAS Investor Conference 2013
49 slides from Reading International's conference presentation, Aug 29, 2013
Slide 1: IDEAS Investor Conference Aug 27, 2013
INTERNATIONAL IDEAS Investor Conference Aug 27, 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement 1 Naa Our comments today may contain forward-looking statements and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provision of the Private Securities Litigation Ref
Slide 3: Financial Reconciliations
READING Financial Reconciliations aueras Use of EBITDA; We use EBITDA in our evaluation of our performance since we believe that EBITDA provides a useful measure of financial performance and value. We believe this principally for the following reasons: We believe that EBITDA is an industry comparati
Slide 4: Australia
Australia Z..
Slide 5: Our Business
Our Business nna Develop, own, and operate internationally diversified entertainment and real property assets Q Cinema Exhibition LJ Real Estate > Real estate development
Slide 6: Our Business
READING Our Business nna Cinema Exhibition: > 56 Cinemas, 467 of screens > 11th largest by market share in U.S., 26 Cinemas / 249 screens > Ath largest by market share in Australia, 21 Cinemas / 165 screens > 3rd largest by market share in New Zealand, 9 Cinemas / 53 screens Real Estate: > Real Esta
Slide 7: Business Synergies
READING Business Synergies ini Our two business segments complement one another : () Comparatively consistent Cinema cash flows allow opportunistic acquisition and holding of real estate assets. Q) Comparatively consistent Cinema cash flows help fund front-end real estate development cash demands. O
Slide 8: United States Asset Base
United States Asset Base metus Cinema Assets > 26 Cinemas / 249 screens Real Estate: > Real Estate Development Properties > Acreage 202 > Gross Book Value $4.1Mil > Income Producing Real Estate Holdings > Rental 58,000 square footage > Entertainment 75,000 square footage > Parking Structure Space 55
Slide 9: Australia Asset Base
READING Australia Asset Base [iawiai Cinema Assets > 21 Cinemas / 165 screens Real Estate: > Real Estate Development Properties > Acreage 56.5 > Gross Book Value $69.0Mil > Income Producing Real Estate Holdings > Rental 168,000 square footage > Entertainment 131,000 square footage > Parking Structur
Slide 10: New Zealand Asset Base
New Zealand Asset Base ail Cinema Assets > 9 Cinemas / 53 screens : AG 138 Real Estate: fi ic yf > Real Estate Development Properties > Acreage 72 > Gross Book Value $21.7Mil > Income Producing Real Estate Holdings Rental 69,000 square footage Entertainment 131,000 square footage Parking Structure S
Slide 11: Geographic Mix
Geographic Mix Se Australia 42% [45%] Australia 53% [57%] Total: $428.6 Million Total: $254.4 Million
Slide 12: Business Mix
READING Business Mix RnR Assets by Business Revenue by Business a Total: $428.6 Million Total: $254.4 Million (12/31/12)
Slide 13: Reading's Long-Term Opportunities
Reading’s Long-Term READING Opportunities Increased Cinema segment ‘yield’ (via both pricing and attendance) through new premium offering’s (Gold Lounge, TITAN XC, DOLBY ATMOS, Digital 3D, Reserve seating) and unique niche branding (art and independent - AFC Angelika) (1 Cinema industry consolidatio
Slide 14: Reading's Competitive Advantage
Reading’s Competitive Advantage freenavons Cinemas geographically clustered (1 Scale creates purchasing pricing power di CJ) Owned entertainment real estate allows redevelopment to higher alternative use (e.g. Murray Hill, Sutton Hill, Cinema 123, Union Square) (J Long-held properties give in-depth
Slide 15: 2001 to 2012 Yearly Financial Trend
2001 to 2012 Yearly Financial Trend READING In USS $300,000 $500,000 $250,000 | $400,000 200,000 s FE $300,000 z —=— oO & ge SF $150,000 S @ <5 <9 eS $200,000 a o> zg FA 5 $100,000 > vo rv | $100,000 $50,000 $- $ $(50,000) $(100,000) 7564 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Profor
Slide 16: Selected Financial Data
READING Selected Financial Data mates YTD June As of or for the Year Ended December 31, | 2013 2012 2012 2011 2010 2009 Revenue $ 129,209 $ 125,378 $ 254,430 $ 244,979 $ 229,322 $ 216,740 Operating income (loss) $ 10,302 $ 10,487 $ 19,127 $ 18,178 $ 13,069 $ 13,910 Income (loss) from discontinued op
Slide 17: Equity Snapshot
Equi hapsno asian ¢ 21.9 mil shares Class A Nonvoting Common, ¢ 1.5 mil shares Class B Voting Common NASDAQ Listed: | This Year Prior Year RDI RDI Price (Class A and B) (08/15/2013) vs. (08/15/2012): $ 6.26 $ 7.02 $ 5.70 $ 6.69 Market Cap (Class A and B) (08/15/2013) vs. (08/15/2012): $147.5 mil $13
Slide 18: Cinema Operations
Cin ema Op erations 1 Naa We manage our worldwide cinema exhibition businesses under various different brands: Angelika Film Center USA SD) ANcEUKAR LU CENTER Rialto Cinemas NZ RULTOCINEMAS
Slide 19: Cinema Exhibition Segment
Cinema Exhibition Segment Wholly Country Con Un Man Total Owned Australia - Cinemas 18 2 1 0 21 Screens 138 11 16 0 165 New Zealand - Cinemas 7 0 2 0 9 Screens 40 0 13 0 53 United States - Cinemas 23 1 0 2 26 Screens 237 3 0 9 249 Total - Cinemas 48 3 3 2 56 Screens 415 14 29 9 467 READING INTERNATI
Slide 20: RDI Digital Integration
RDI Digital Integration ‘eam Cir m * US digitalized 25 out of 26 cinemas ¢ Final cinema to be potential digitalized by the end of 2013 BAR (0; CHRISTIE ° AU & NZ to be digitalized by the end of the 2013 Theater N. Stadium Titan XC Currently Currently ieee # of camer same Auditorium 3D Digital —Digit
Slide 21: Box Office Revenue
READING Box Office Revenue ett United States, Australia and New Zealand 12.0 180.0 (zl Industry - CAGR 3.63% fl Reading - CAGR 12.38% 10.0 a a a 80 8 2 = g : = 8 x aie ° 8 6.0 Fy z = % & > wu = 4.0 2 52) = —) 2.0 ~—
Slide 22: US Cinemas
26 Cinemas READING S Cc bd >» 1 Freehold Cinemas INTERNATIONAL U In e m a S >» 25 Leasehold Cinemas . . Hawaii United States Box Office Revenue re) . oe if op Kast Both Street [=zcAIndustry - CAGR 3.04% l= Reading - CAGR 13.23% — aa + Kapolei Cinemas 123 + Koko Marina /t + Ko'olau _— / 10.0 90.0 + M
Slide 23: AU Cinemas
AU Cinemas Australia Box Office Revenue (mma Industry - CAGR 9.41% Reading - CAGR 10.96% 1.4 80.0 12 l™~ | 70.0 | 60.0 1.0 f WH g a 50.0 3 08 SEE = f 40.0 % 3 o¢ |_4_, 1 0 S [ | 30.0 2 V/ | o4 +e | ee } | a | | 20.0 | | | BEBE EEE SB Blew BEBBeessesssysy)yg 243342434343 (IW $ Sn) 22140 xog SuIpeoy 2
Slide 24: NZ Cinemas
NZ Cinemas New Zealand Box Office Revenue (Gamma Industry - CAGR 9.08% Reading - CAGR 15.26% 0.2 NZ Box Office (US $B) 18.0 16.0 14.0 12.0 10.0 + 8.0 - 6.0 - 4.0 t 2.0 (LW $ Sn) 22440 xog Sulpeoy 7 Cinemas READING INTERNATIONAL > 1 Freehold ETRC > 3 Freehold Cinemas > 3 Leasehold Cinemas Wasay or is
Slide 25: Largest Grossing Box Office in Hawaii
READING INTERNATIONAL Q) Largest Grossing Box Office in Hawaii ASS Saeed QO 16 Screens - 100% digitalized oe Da = d= Y 7Dolby Digital 3D , _ ¥_ TITAN XC Screen ¥ DOLBY ATMOS vY Reserved seating
Slide 26: Cinema acquired July 2011
READING INTERNATIONAL QO Acquired end of July 2011 QO) $4.2M O) 17 Screens - 100% digitalized Y 4 Dolby Digital 3D
Slide 27: Angelika Film Center Mosaic
READING Angelika Film Center Mosaic fretnarons QO) Organic growth in Northern Virginia — Opened in Sep 2012 QO) State-of-the-art boutique cinema | = QO) 8 Screens - 100% digitalized ¥2 Dolby Digital 3D v Reserved seating
Slide 28: Cinema Exhibition Valuation
Cinema Exhibition Valuation READING (as of 08/15/2013) Market Cap Price/ Book Ev/Rev EV/EBITDA EBITDA Ticker Name # of Screen (mil) (mrq) (ttm) (ttm) (ttm) RGC Regal Entertainment 7,343 $ 2,860 N/A 1.7 93 $ 533.0 mcs Marcus Corporation 694 $ 336 41 15 81 $ 74.0 CKEC Carmike Cinemas 2,502 $ 312 21 1.
Slide 29: Real Estate Segment
READING Real Estate Segment means the ownership of fee or long-term leasehold interests in properties used in our cinema exhibition activities or which were acquired for the development of cinemas or cinema-based real estate development projects; the leasing to shows of our live theaters; and the ac
Slide 30: Real Estate Opportunities
READING Real Estate Opportunities freien Potential Opportunities “ USA QO) Cinema 123 Redevelopment QO Union Square Redevelopment “+ Australia QO) Moonee Ponds (Melbourne) Sale Q) Burwood Square (Melbourne) Q) Auburn Red Yard ETRC (Sydney) Phase II Q) Newmarket ETRC (Brisbane) Phase II “+ New Zealan
Slide 31: Cinemas 1, 2 & 3 Property
READING Cinemas 123 Currently sans Bought the property in 2005 3 screens, two of which are 3D Ooo Currently zoned for Restricted Central Commercial and General Residents Q 21,000 sq. ft.; Book Value $23.6Mil REGENCY Sib Fc < HOSP 61 61 E61 TSTTSS ee Re) 77 15395561 44 CHILDREN'S — E e — ALLDAYSCH 69
Slide 32: Cinemas Development Example
Cinemas 123 READING Development Example We are currently studying the feasibility of redeveloping our Cinemas 1, 2 & 3 property into a commercial and/or residential high rise. Located in the Upper East of the Borough of Manhattan Neighborhood is Manhattan’s premier luxury retail and residential comm
Slide 33: Union Square
Union Square QO Bought the property in 2001 QO) Live theatre with 499 seat, and varies retail tenants QU) 21,000 sq. ft. rental; 17,000 sq. ft. of entertainment; Book Value $8.9Mil re naerirte OA 903-14 ace 135 FIFTH Bway BIWAY 04 897 Bway eway saa Fieri —s AIS FIFTH eer eway 134 FIFTH S79 BWAY | 13
Slide 34: Union Square Development Example
Union Square READING Development Example QO Heart of the Union Square neighborhood, with unobstructed view of the Union Square Park. Q Currently the property is calendared to be landmarked Q) Weare currently studying the feasibility of redeveloping our Union square property within the constrains of
Slide 35: Moonee Ponds
READING Moonee Ponds sranine Bought 1998 & 2006 3.3 acre development site $12.7Mil Book Value Up-zoned to Activity Centre in 2010 Within the Activity Centre Structure Plan this site is identified with preferred built form height within 10- 16 levels.
Slide 36: Burwood property
READING INTERNATIONAL Bought the property in 1996 former quarry and brick manufacturing plant Located within a Major Activity Centre and identified by Whitehorse City Council as Priority Development. 50.6 acres ; $54.2Mil Book Value
Slide 37: Burwood Square Zones
Burwood Square Zones nnapine QO Well regarded eastern suburbs location OQ) Approximately 66% of the Burwood East workforce is identified as being employed in a white collar profession whereas Melbourne Metro area has 49.9% employed in white collar industries. Q) Due to the location and specifically
Slide 38: Auburn ETRC
Auburn ETRC READING Bought the property in 1998 Opened 2000 Real Estate Development Properties QO 2.6 acres; Book Value $2.1 Mil Income Producing Real Estate Holdings QO 60,000 rental and 57,000 entertainment Q Book Value $35.9Mil 9 Screens, Gold Lounge, Dolby Digital 3D Stores are Fully leased
Slide 39: Auburn Potential Development
Auburn READING Potential Development QO) New rezoning will allow for big box retail development 1 Located within an established residential area which is expected to benefit from future population growth over the short to medium term. iS ee ) | i ee og By i y | 7 | PH + Zt a AV a y val | 4
Slide 40: Courtenay Central ETRC
Courtenay Central ETRC | High Quality Entertainment and Retail Centre Bought the property in 1998 Opened 2002 Valea re Wr) One of the largest grossing cinemas in New Zealand : is 10 Screens, Gold Lounge, TITAN XC, Dolby Digital 3D Income Producing Real Estate Holdings QO) 38,000 rental and 71,000 en
Slide 41: Courtenay Central Car Park
READING Courtenay Central Car Park aie QO) Existing car park produces strong cash flow; integration into development Q) Planned supermarket would fill current under utilized ground surface parking lot QO Following the recent earthquake in Wellington, New Zealand which resulted in the closure of our
Slide 42: Courtenay Central
Courtenay Central READING Progressive - “Countdown” Q Project will open in June 2015 Q 42,000 sq. ft. Countdown Supermarket Q The countdown brand is operated by Progressive Enterprises, who are owned by Woolworths, one of the largest and most solid companies in countdown Australia, 4 Reconfigures ab
Slide 43: Real Estate Valuation
Real Estate Valuation READING (as of 08/15/2013) . Market Cap Price/ Book Ev/Rev EV/EBITDA EBITDA Ticker Name (mil) (mrq) (ttm) (ttm) (ttm) AHD Amalgamated Holdings Limited $ 1,290 1.5 1.6 12.9 $ 99.4 AEC Associated Estates Realty $ 732 1.9 8.2 16.0 $ 95.7 CDR Cedar Realty Trust Inc. $ 340 1.0 8.4 1
Slide 44: In Conclusion
READING In Conclusion aRApins UL) We are a stable cinema business with stable cash flow QO) That pursues potential acquisitions when opportunities arise. QO) Has the ability to organically grow the segment internally. QO) That is willing and able to invest in building and maintaining its infrastruct
Slide 45: Appendix
Appendix
Slide 46: Newmarket
Newmarket Se es se os se es nats dat
Slide 47: Coachella
Coachella READING Looking Southwest toward Parcel 17 (Route 86-S Westerly Border) Palm Springs Thousand Palms Cathedral City Bermuda Dunes Palm Desert Fa indian Wels indo. \@ J m 8 La Quinta Coachella mies BINe
Slide 48: INTERNATIONAL
READING INTERNATIONAL Kirk a an NX ete \ ‘McAtig Ba Ns
Slide 49: Thank You
THANK YOU INTERNATIONAL
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