IMAX China Holding Inc · HKEX:1970
IMAX China — FY2019 Earnings Presentation
15 slides from IMAX China's earnings presentation, Feb 20, 2020
Slide 1: IMAX China Full-year 2019 Financial Results
IMAX China Full-year 2019 Financial Results February 20, 2020 ® IMAX 1 Corp.
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
Slide 3: Strong Performance in FY19 Across KPIs
Strong Performance in FY19 Across KPIs Box office Theatre USD366mn box office 717 network +14% YoY +12% YoY Mainland China (RMB) with stable same-store sales in +8.7% YoY Mainland China (RMB) Greater China(1) (USD) Revenue Profitability USD124mn revenue USD45mn adjusted net profit +5.8% YoY 36% adju
Slide 4: Favorable Structural Tailwind
Favorable Structural Tailwind Total box office of top-10 grossing movies Local content gravitating towards IMAX genres 35,000 50% 45% (in RMB millions) 45% 30,000 40% 40% 36% 25,000 35% 35% 31% 31% 31% 30% 20,000 25% 15,000 Ne Zha (July 2019) 28,605 20% The Wandering Earth (Feb 2019) 24,845 Highest-
Slide 5: Consistently High Hit-Rate in Programming
Consistently High Hit-Rate in Programming Top 10 films, 2019 IMAX = 9 out of 10 Top 10 films, 2018 IMAX = 9 out of 10 Top 10 films, 2017 IMAX = 8 out of 10 Our local language programming and multi-film strategy drives a consistently high hit-rate Full-Year 2019 Financial Results 5
Slide 6: Strong IMAX DNA in 2020 Film Slate
Strong IMAX DNA in 2020 Film Slate No Time to Die Wonder Woman 1984 Top Gun: Maverick Tenet Hollywood(1) (Apr 2020) (Jun 2020) (Jun 2020) (July 2020) Filmed with IMAX Filmed with IMAX Filmed with IMAX Filmed with IMAX Cameras Cameras Cameras Cameras Detective Chinatown 3 (2020) The Rescue (2020) Loc
Slide 7: Key Milestone in Network and Partnership Expansion
Key Milestone in Network and Partnership Expansion Number of IMAX theatres Greater China backlog mix1 717 639 Full revenue sharing Hybrid revenue sharing Sales arrangement 544 357 316 424 260 307 195 106 234 94 131 80 173 102 66 128 46 75 25 254 51 204 229 130 163 74 88 107 2012 2013 2014 2015 2016
Slide 8: Consistent Market Share Gain
Consistent Market Share Gain IMAX China Screen Count Share IMAX China Box Office Market Share 1% IMAX China screen penetration IMAX China Screen Count Share IMAX China Box Office Share IMAX GBO % of Com Source: Company Data 1.00% 7.8% 0.97% IMAX represents 0.97% 4% of box office share despite 1% scr
Slide 9: Network Update
Network Update Installations Signings 64 101 60 1 Upgrades 4 95 (1) 64 Upgrades Full Revenue Sharing Full Revenue Sharing Hybrid Revenue Sharing Hybrid Revenue Sharing 12 Sales / Sales Type Lease 20 Sales / Sales Type Lease 56 43 40 10 Revenue Sharing Arrangements 14 16 30 Sales / Sales Type Lease 2
Slide 10: Network Business
Network Business $ in Millions Gross Margin (%) Revenue sharing arrangements – contingent rent Film Revenue Network revenue of $53 million, up 11% YoY 65.6% 65.0% • Greater China box office of $366 million, up 8.7% YoY, or up 14% YoY in mainland China in local +11.0% currency $52.9 $47.7 • 30 Hollyw
Slide 11: Theatre Business
Theatre Business $ in Millions Theatre revenue of $71 million, up 2% YoY Gross Margin (%) Others • 11% growth in maintenance revenue on the back of network Theatre system maintenance expansion Revenue sharing arrangements – upfront fees Sales & Sales-type lease arrangements 63.5% • 2 incremental hyb
Slide 12: Revenue Structure
Revenue Structure Installation-driven Maintenance and others Box office-driven Rising contribution from recurring revenue 41.7% 39.2% 49.8% • Recurring revenue, predominantly box office and maintenance-based, contributed 61% of total 17.7% 18.2% revenue in FY19, up from 58% in FY18 13.3% • Enhances
Slide 13: FY2019 Financial Summary
FY2019 Financial Summary $ in Millions, Except EPS Data Revenue Operating Expenses1 Adjusted EBITDA Adjusted Net Income 17.9% 55.3% 55.4% 37.7% 17.2% 35.9% +5.8% +1.5% +5.9% +0.6% $124.3 $21.3 $117.5 $21.0 $68.8 $44.3 $44.6 $65.0 $6.7 $7.0 $71.0 $69.6 +2.1% $14.3 $14.3 $47.7 +11.0% $52.9 FY2018 FY20
Slide 14: Shareholder Return
Shareholder Return $ in Millions Adjusted earnings payout ratio(%) Dividends paid Share buyback 33% 33% Propose a final dividend payment of $0.02 per share, or HKD0.156 per share, representing a stable earnings $33.3 payout ratio of 33% $27.6 $14.1 • Total dividend paid to shareholders of $14 millio
Slide 15: Investor Presentation IMAX® is a registered trademark of IMAX Corporation.
Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 15