Cinemark Holdings, Inc. · NYSE:CNK
Cinemark — Q4 2022 Earnings Presentation
24 slides from Cinemark's earnings presentation, Feb 24, 2023
Slide 1: Investor Presentation
Investor Presentation February 24, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS PURSUANT TO THE U.S. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation contains, and our officers and representatives may from time to time make, “forward–looking statements” within the meaning of the s
Slide 3: Cinemark Overview
Cinemark Overview
Slide 4: Cinemark Overview
Cinemark Overview One of the largest and most influential theatrical exhibition companies in the world with 518 theaters with 5,847 screens in 16 countries 1) U.S. Operations 1) • 3rd largest exhibitor (screen count) • 42 states, 104 DMAs • #1 or #2 in box office revenues in 80% of our top 25 market
Slide 5: Highly Experienced Management Team
Highly Experienced Management Team Highly experienced management team with significant industry experience and proven track records; Additional key leaders with 20+ years of industry/Cinemark experience in the US and internationally Sean Gamble Valmir Fernandes President & CEO President, Internation
Slide 6: Exhibition Industry Trends
Exhibition Industry Trends Stable, long-term industry growth trends across technology innovations and economic cycles with box office growth in 6 of the last 8 recessionary periods North America Box Office Trends Recliners and enhanced food Digital projector conversion investments DVD player drops t
Slide 7: Cinemark Performance
Cinemark Performance
Slide 8: North American Industry Outperformance
North American Industry Outperformance Cinemark’s operational excellence and execution of strategic priorities has driven faster box office recovery and market share gains 2022 Box Office Recovery 1) Market Share 1) 2022 Market Share 1) 71% 14% 23% 40% 66% 13% 16% 7% 14% Domestic Industry Cinemark 2
Slide 9: International Industry Outperformance
International Industry Outperformance Strong presence across Latin America provides diversification, increased scale, cross-company synergies, and promotional opportunities with global partners 2022 Market Share 1) 2022 Market Share - Key Latin American Markets 1) Brazil Argentina 24% 23% 41% 39% 13
Slide 10: Initiatives to Drive Growth and Outperformance
Initiatives to Drive Growth and Outperformance Continuing to benefit from sustained investments in guest experience (peak capex cycle 2015-2019); prioritizing investments in strategic initiatives to position the company for ongoing success Heightened focus on the guest 67% U.S. recliner penetration
Slide 11: Financial Results
Financial Results
Slide 12: Highlights of Q4 2022 Results
Highlights of Q4 2022 Results We continue to make significant progress recovering from the lingering effects of the pandemic and are extremely well-positioned to benefit from an ongoing resurgence of theatrical moviegoing • Domestic box office outperformed the North American industry results by more
Slide 13: Full Year 2022 Financial Summary
Full Year 2022 Financial Summary Annual Worldwide Results 1) 2) 2022 Highlights • Worldwide total revenue grew 63% year-over-year, demonstrating 2022 2021 2019 another positive step in the industry’s recovery, as well as sustained consumer enthusiasm for theatrical moviegoing Attendance 173 106 280
Slide 14: Capital Structure and Allocation
Capital Structure and Allocation Our balance sheet remains a strategic asset and key differentiator, providing ample flexibility • Covenant-lite debt (in $ millions) As of Dec. 31, 2022 • Company has a history of proactively managing debt with nearest Long-term debt 1) $2,517 maturity in 2024/2025 3
Slide 15: A Look Ahead
A Look Ahead
Slide 16: 2023 Notable Titles
2023 Notable Titles 2023 expected to be a further year of recovery and improvement in content volume and box office Q1 January 6 February 17 March 3 March 17 March 24 March 31 Q2 April 7 May 5 May 19 May 26 June 2 June 16 Q3 June 30 July 14 July 21 July 21 July 28 August 4 Q4 November 3 November 10
Slide 17: Value of an Exclusive Theatrical Window
Value of an Exclusive Theatrical Window A theatrical release enhances a film’s promotional impact and overall asset value Increases consumer Elevates perception Satisfies consumer/ awareness, interest of films by creative desires to see and recognition eventizing them films on big screen Creates str
Slide 18: Strategic Priorities to Drive Operating Success
Strategic Priorities to Drive Operating Success Maintain an advantaged position to capitalize on the ongoing recovery of theatrical exhibition through significant consumer, growth, and productivity initiatives, and position Cinemark for long-term success Create an exceptional guest experience throug
Slide 19: Appendix
Appendix
Slide 20: 4Q 2022 Non-GAAP Measure Reconciliations
4Q 2022 Non-GAAP Measure Reconciliations Reconciliation of Net Income/(Loss) to Adjusted EBITDA 1) Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow 1) 4Q 2022 4Q 2021 4Q 2019 4Q 2022 4Q 2021 4Q 2019 Net Income/(Loss) ($98.8) $6.4 $26.8 Cash flows provided by operating
Slide 21: FY 2022 Non-GAAP Measure Reconciliations
FY 2022 Non-GAAP Measure Reconciliations Reconciliation of Net Income/(Loss) to Adjusted EBITDA 1) Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow 1) FY 2022 FY 2021 FY 2019 FY 2022 FY 2021 FY 2019 Net Income/(Loss) ($268.0) ($422.2) $193.8 Cash flows provided by oper
Slide 22: 2019 Financial Summary
2019 Financial Summary 2019 Worldwide Results 1) Highlights • Served ~280 million patrons globally 2019 5-Year CAGR • Achieved 5th consecutive year of record revenue with top-line Attendance 280 1.2% growth in U.S. and International3 segments • Exceeded North America industry box office growth by 20
Slide 23: Consistent Industry Outperformance
Consistent Industry Outperformance Cinemark has consistently surpassed North American industry box office growth and led the industry in Adjusted EBITDA margin 1) 2014 - 2019 Admission Revenue Growth 2) CNK Worldwide Adjusted EBITDA Growth 2,3) 22.9% +6% $745 CAGR 17.3% $551 10.1% North America Cine
Slide 24: Thank You
Thank You Chanda Brashears SVP Investor Relations cbrashears@cinemark.com 972-665-1671