Slide 1: Investor Presentation February 2024
I N V E S TO R P R E S E N TAT I O N FE BR UA RY 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward looking statements that are based on IMAX® business initiatives; conditions in the in-home and out-of-home entertainment management's assumptions and existing information and involve certain risks and industries; the opportunities (or lac
Slide 3: Strategic Update
Strategic Update Richard Gelfond Chief Executive Officer
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS IMAX Holds a Powerful Position in the Entertainment Industry; IMAX’s Unique Platform Delivers Value Throughout the Ecosystem 1 2 3 4 5 6 IMAX is the Unmatched global Highly recurring Strong operating Attractive capital Extending future of moviegoing network scale revenue model
Slide 5: 2023 – Positive Momentum Continues
STRONG GROWTH ACROSS FINANCIAL METRICS 2023 – Positive Momentum Continues REVENUE TOTA L CO N SO L I DAT E D AT T R I B U TA B L E $500 +25% A D J E B I T D A (1)(3) A D J E B I T D A (2)(3) $400 $375 +51% +52% $200 $301 $300 $144 $150 $128 $96 $200 $100 $84 $100 $50 $- $- 2022 2023 2022 2023 2022 2
Slide 6: Full-Year 2024 Guidance
FULL-YEAR 2024 GUIDANCE Top and bottom-line growth expected in 2024 IMAX Box Office Total Consolidated Adjusted Installations EBITDA2 Margin % 2024 Similar level to 2023 120 – 1501 High 30’s Percent Guidance 2023 $1.06B 128 38.4% Actuals 2022 $850M 92 31.8% Actuals Expect growth acceleration in 2025
Slide 7: IMAX Is in a Strong Industry Position
IMAX IS IN A STRONG INDUSTRY POSITION IMAX is at the Nexus of Positive Industry Trends and Wields Key Advantages in Navigating the Changing Marketplace Benefits from strong secular tailwinds… …While heavily insulated from industry risks RISKS IMAX ADVANTAGE • IMAX screens located in top performing e
Slide 8: Recession Resistant Business
RECESSION RESISTANT BUSINESS Domestic Theatrical Market has Demonstrated Stability Despite the Proliferation of Entertainment Options and Recessionary Climates DVDS OTT / SMARTPHONES 14 EXHIBITION BANKRUPTCY & CONSOLIDATION 12 MEGAPLEXES 10 INTERNET 8 $ in billions CABLE TV 6 VHS 4 2 0 1979 1984 198
Slide 9: IMAX Technology
IMAX Technology NEXT GENERATION NEXT GENERATION BRINGING THE IMAX DIGITAL REMASTERING IMAX FILM CAMERAS PROJECTION TECHNOLOGY EXPERIENCE TO THE HOME Lightyear Development Phase Underway Transformation to an All IMAX-with- Cloud Optimized Streaming and Consumer Technology • Developing and expect to d
Slide 10: IMAX Is the Largest Global Platform
IMAX IS THE LARGEST GLOBAL PLATFORM W E S T E R N E U R O P E 1,693 C A N A D A 42 126 Commercial Multiplex Locations 90 Countries & Territories U N I T E D S T A T E S 363 G R E A T E R C H I N A IMAX network accounts 791 100+ for >50% of total global 1-99 L A T I N premium locations and is None A
Slide 11: Updated Zoning Analysis Leads to 300 New Zones
Updated Zoning Analysis Leads to 300 new zones, 9% Increase to Market Potential Significant Rest of World Opportunity – Only 33% penetrated Commercial Multiplex Worldwide Addressable Market: 3,600+ Installed System Network Penetration: 47% 1600 1,488 1,414 1400 221 15% 3,619 1200 427 301 8% 30% 1000
Slide 12: Content Strategy
CONTENT STRATEGY IMAX Platform Delivers the Most Diverse Global Content Portfolio Ever to Fuel Revenue Growth HOLLYWOOD LOCAL LANGUAGE DOCUMENTARIES ALTERNATIVE CONTENT DUNE PART TWO CREATION OF THE GODS BLUE ANGELS QUEEN IMAX INVESTOR PRESENTATION 12
Slide 13: Rising Market Share Across Global Box Office
RISING MARKET SHARE ACROSS GLOBAL BOX OFFICE IMAX Continues To Achieve High Share of Global Box Office on less than 1% of Screens IMAX BOX OFFICE MARKET SHARE 1 6.0% 5.0% 4.8% 4.4% 4.4% 4.2% 4.1% 4.2% 3.9% 3.9% 4.0% 3.6% 3.5% 3.2% 3.3% 3.2% 3.1% 3.2% 3.0% 3.0% 2.5% 2.7% 2.5% 2.4% 2.2% 2.3% 2.1% 2.1%
Slide 14: A Solid 2024 Slate for the IMAX Network
E X P E C T E D 2 0 2 4 H O L L Y W O O D S L A T E A Solid 2024 Slate for the IMAX Network M A R C H A P R I L A P R I L M A Y M A Y M A Y J U N E J U N E J U N E J U L Y J U L Y J U L Y S E P T E M B E R S E P T E M B E R O C T O B E R N O V E M B E R N O V E M B E R N O V E M B E R WOLFS In addit
Slide 15: Exceptional Slate Expected in 2025
E X P E C T E D 2 0 2 5 S L A T E Exceptional Slate Expected in 2025 *Release slate reflects current studio scheduling as of 2/27/2024 IMAX INVESTOR PRESENTATION 15 **Does not reflect complete listing of all titles planned to be played across the IMAX network
Slide 16: Local Language Growth
LOCAL LANGUAGE GROWTH Local Language Content Drives Demand and Incrementality in Key Growth Markets • Record LL Box Office : $227 million, ~21% of IMAX 2023 box office LOCAL LANGUAGE TITLE GROWTH • Record LL Titles: 59 local language titles in 2023 (64% growth 60+ TITLES EXPECTED IN 2024 YoY) with m
Slide 17: Financial Review
Financial Review Natasha Fernandes Chief Financial Officer
Slide 18: 2023 Financial Performance: Delivered on Guidance
2023 FINANCIAL PERFORMANCE Executed and Delivered on 2023 Full Year Guidance 2023 Guidance 2023 Results (announced on 4Q22 earnings call) IMAX Global Box Set numerous Box Office records, ~$1.1 Billion improved 25% YoY $1.06B Office Adj. EBITDA1 Margin - Strong operating leverage drove Mid-30’s 650 b
Slide 19: IMAX Reports Strong Double-Digit Growth Across Key Metrics
2023 FINANCIAL PERFORMANCE IMAX Reports Strong Double-Digit Growth Across Key Metrics $ IN MILLIONS except per diluted share data and FY 2023 FY 2022 FY 2021 FULL YEAR 2023 HIGHLIGHTS network data Global Box Office $1.06B $849.7 $638.2 Global Commercial Network 1,693 1,633 1,599 IMAX GBO 129 System
Slide 20: System Sales Momentum Continues with 129 Signings
SYSTEMS NETWORK GROWTH DRIVERS System Sales momentum continues with 129 signings vs. prior full year signings of 47 BACKLOG PIPELINE 450 450 68 89 Q4 2023 FULL YEAR 2023 TOTAL TOTAL TOTAL TOTAL SIGNINGS INSTALLATIONS SIGNINGS INSTALLATIONS Upgrades Joint Revenue Sharing 132 96 10 35 64 70 Hybrid JRS
Slide 21: Low Leverage Model with Improving Cash Flow and Strong Liquidity
Low Leverage Model with Improving Cash Flow and Strong Liquidity OP E R AT I N G C ASH F LOW ( $ IN MILLIO NS ) D E BT M AT UR I T Y LA D D E R ($ I N M I LLI ON S) $250 $60 $200 $30 $59 $150 $231 $17 $100 $- $6 $50 $(23) $1 $1 $24 $- $(30) 2024 2025 2026 2027 2020 2021 2022 2023 CASH & LIQUIDITY PO
Slide 22: Delivering Value Through Share Repurchase
DELIVERING VALUE THROUGH SHARE REPURCHASE IMAX Repurchased $175M, 19% of Shares Outstanding Since 2020 YEAR-END SHARES SHARES REPURCHASED AVERAGE OUTSTANDING PAST 4 YEARS REPURCHASE PRICE ( I N T H O U S A N D S ) ( I N T H O U S A N D S ) Shares Repurchased % Repurchased (Cum) $18.00 65,000 6,000 2
Slide 23: Attractive Cash Flow Model
ATTRACTIVE CASH FLOW MODEL Full Year 2023 Cash Flow Reflects Strong Year-Over-Year Improvement $70 $ IN MILLIONS $60 $58.6 $50 $43.8 $40 $30 $25.8 $20 $18.0 $10 $8.3 $6.5 $- 2023 Operating PP&E Investment FCF Before Investments In 2023 Free Cash Flow in Software Growth JRSA Lease Cash Flow Intangibl
Slide 24: Appendix
A P P E N D I X IMAX INVESTOR PRESENTATION
Slide 25: Use of Non-GAAP Financial Measures
USE OF NON -GAAP FINANCIAL MEASURES In this presentation, the Company presents adjusted net income attributable shareholders per diluted share is presented in the table below. Net income to common shareholders and adjusted net income attributable to common (loss) attributable to common shareholders
Slide 26: Use of Non-GAAP Financial Measures
USE OF NON -GAAP FINANCIAL MEASURES In addition to the non-GAAP financial measures discussed above, interests. management also uses “EBITDA,” as such term is defined in the Company’s Credit Agreement, and which is referred to herein as “Adjusted EBITDA per In this presentation, the Company also pres
Slide 27: 2023 Non-GAAP Financial Reconciliation — Adjusted Net Income
2023 NON-GAAP FINANCIAL RECONCILIATION — ADJUSTED NET INCOME 3 MONTHS ENDED DECEMBER 31, 2023 FULL YEAR 2023 $ IN THOUSANDS, EXCEPT EPS DATA Net Income Per Share Net Income Per Share Net Income Attributable to Common Shareholders $ 2,540 $ 0.05 $ 25,355 $ 0.46 Adjustments: Share-Based Compensation 6
Slide 28: Full Year 2023 Non-GAAP Financial Reconciliation — Adj. EBITDA
FULL YEAR 2023 NON-GAAP FINANCIAL RECONCILIATION — ADJ. EBITDA FULL YEAR 2023 FULL YEAR 2022 Attributable to Less: Attributable to Non- Less: Attributable to Attributable to $ IN THOUSANDS Non-Controlling Interests & Attributable to Non- Controlling Interests & Attributable to Non- Common Shareholde
Slide 29: Non-GAAP Financial Reconciliation — Free Cash Flow
NON-GAAP FINANCIAL RECONCILIATION — FREE CASH FLOW FULL YEAR 2023 FULL YEAR 2022 $ IN THOUSANDS Net Cash Provided by Operating Activities $ 58,615 $ 17,321 Purchase of Property, Plant and Equipment (6,491) (8,424) Acquisition of Other Intangible Assets (8,344) (4,394) Free Cash Flow Before Growth CA