Slide 1: Investor Presentation April 2024
I N V E S TO R P R E S E N TAT I O N A PR IL 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 is the Unmatched global Significant growth Strong operating Attractive capital Extending future of moviegoing network scale potential leverage position The IMAX Experience 4 5 6 +28% ~1,700 442 40%+ 19% ~95 5-year growth in system footprint of contracted IMAX target 2025 T
Slide 5: The IMAX Experience
THE IMAX EXPERIENCE SHOT WITH IMAX VIEWED IN THE MOST AMPLIFIED BY IMAX EXTENDING TO THE OPTIMIZED BY IMAX CAMERAS IMMERSIVE FORMAT HOME Lightyear Movies shot with IMAX certified IMAX’s proprietary digital IMAX’s comprehensive solution Loyal and growing IMAX Launched Streaming and digital and IMAX F
Slide 6: IMAX Is in a Strong Industry Position
IMAX IS IN A STRONG INDUSTRY POSITION Benefits from strong secular tailwinds… …While heavily insulated from industry risks RISKS IMAX ADVANTAGE • IMAX screens located in top performing exhibitor Industry complexes; insulated from potential consolidation Growing Demand for of exhibitor customers Cons
Slide 7: Strong Operating Leverage Drives Accelerated Profit Growth
STRONG OPERATING LEVERAGE DRIVES ACCELERATED PROFIT GROWTH 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 $200 $96 $84 $100 $100 $50 $- $- 2022 2023 2022 2023 2022 2023 A D J U S T
Slide 8: 2024 Guidance
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 IMAX INVESTOR PRESENTATION 8 1Expect a similar sale/JRSA and new/upgrade mix as 2023 with installation
Slide 9: A Truly Global Premium Entertainment Platform
A TRULY GLOBAL PREMIUM ENTERTAINMENT PLATFORM W E S T E R N E U R O P E C A N A D A 42 128 Commercial Multiplex Locations 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 791 100+ 1-99 L A T I N None A M E R I C A *By country 59 A S I A (EXCLUDING R E S T O F T H E GREATER
Slide 10: Commercial Multiplex Worldwide Addressable Market
Commercial Multiplex Worldwide Addressable Market: 3,600+ Installed System Network Penetration: 47% 1600 1,488 1,414 1400 221 15% 3,619 1200 428 301 8% 30% 1000 640 43% 1244 New Zones 34% 195 14% 800 Unpenetrated Market 717 IMAX New System Backlog 80 11% 377 10% 600 IMAX Network 176 25% 126 8% 400 5
Slide 11: Rising Market Share Across Global Box Office
RISING MARKET SHARE ACROSS GLOBAL BOX OFFICE IMAX BOX OFFICE MARKET SHARE 1 7.0% 5.9% 6.0% 5.0% 4.8% 4.4% 4.4% 4.2% 3.8% 3.9% 4.0% 3.7% 3.7% 3.2% 3.3% 3.0% 3.3% 3.2% 3.3% 3.4% 3.0% 3.0% 2.6% 2.5% 2.3% 2.3% 2.4% 2.2% 2.1% 2.1% 2.0% 1.6% 1.7% 1.7% 1.0% 0.0% 2018 2019 2020 2021 2022 2023 1Q24 Domestic
Slide 12: Growing IMAX Fandom Fueling Market Share Gains
GROWING IMAX FANDOM FUELING MARKET SHARE GAINS Top 10 Grossing IMAX Titles – Domestic Opening Weekend Market Share 14% 12.0% 12% 9.8% 9.9% 9.8% 10% 9.6% 8.2% 8% 6.2% 6% 4% 2% 0% 2017 2018 2019 2020 2021 2022 2023 IMAX INVESTOR PRESENTATION IMAX represents ~1% of screens domestically
Slide 13: Content Strategy
CONTENT STRATEGY HOLLYWOOD LOCAL LANGUAGE DOCUMENTARIES ALTERNATIVE CONTENT DUNE: PART TWO THE BOY AND THE HERON BLUE ANGELS BTS’ SUGA IMAX INVESTOR PRESENTATION 13
Slide 14: Solid 2024 Slate for the IMAX Network
U P C O M I N G 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 Solid 2024 Slate for the IMAX Network J U L Y J U L Y J U L Y M A Y M A Y M A Y J U N E J U N E J U N E A U G U S T A U G U S T S E P T E M B E R 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 O C T O B E R N O V E M B E R N O V
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 FLOWERVALE UNTITLED MICHAEL FORMULA 1 STREET FILM MERCY TRON: ARES *Release slate reflects current studio scheduling as of 4/25/2024 and is not necessarily in order of release date. IMAX INVESTOR PRESENTATION 15 **Does not reflect
Slide 16: Local Language Growth
LOCAL LANGUAGE GROWTH • 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 more expected in 2024 • Local to Global Strategy: successfully taking local con
Slide 17: Financial Review
Financial Review Natasha Fernandes Chief Financial Officer
Slide 18: 2023 Financial Performance
2023 FINANCIAL PERFORMANCE 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 bps improvement YoY 36.7% Attributable Accelerating
Slide 19: First Quarter 2024 Financial Performance
FIRST QUARTER 2024 FINANCIAL PERFORMANCE $ IN MILLIONS except per diluted share data and Q1 2024 Q1 2023 FIRST QUARTER 2024 HIGHLIGHTS network data Global Box Office $261 $273 Global Commercial Network 1,697 1,631 IMAX GBO 15 System Revenue $79.1 $86.9 of $261M Installations Gross Margin ($) $46.9 $
Slide 20: Box Office Correlation to Total Adjusted EBITDA Margin
IMAX Quarterly Box Office correlation to Quarterly Total Adjusted EBITDA Margin %1 60% 50% Total Adjusted EBITDA Margin % 40% 2025 Target: 40%+ 30% Correlation Coefficient 88% 20% 10% 0% - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Total IMAX Box Office IMAX INVESTOR PRESENTATION
Slide 21: Systems Network Growth Drivers
SYSTEMS NETWORK GROWTH DRIVERS BACKLOG PIPELINE 442 450 65 68 1Q 2024 FULL YEAR 2023 TOTAL TOTAL TOTAL TOTAL SIGNINGS INSTALLATIONS SIGNINGS INSTALLATIONS Upgrades Joint Revenue Sharing 128 132 5 5 64 70 Hybrid JRSA Sales Sales Hybrid Lease - 1 - 5 100 102 Joint Revenue Sharing 3 9 65 53 Total 8 15
Slide 22: Operating Cash Flow, Debt Maturities, Liquidity and Leverage
OP E R AT I N G C ASH F LOW ( $ IN MILLIO NS ) DE BT M AT UR I T Y LA DDE R ($ I N M I LLI ON S) $250 $60 $200 $30 $59 $150 $231 $17 $100 $- $6 $50 $(23) $69 $1 $1 $- $(30) 2024 2025 2026 2027 2020 2021 2022 2023 CASH & LIQUIDITY POSITION LEVERAGE POSITION ($ IN MILLIONS) ($ IN MILLIONS) 3/31/24 12/
Slide 23: Delivering Value Through Share Repurchase
DELIVERING VALUE THROUGH SHARE REPURCHASE YEAR-END SHARES SHARES REPURCHASED AVERAGE OUTSTANDING PAST 4 YEARS1 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 25% $16.00 60,000 5,000 17% 20% $14.00 19% 55,000 4,000 14% $
Slide 24: Attractive Cash Flow Model
ATTRACTIVE CASH FLOW MODEL $ IN MILLIONS $70 $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 Intangibles Investment Equipment Maintenance CAPEX Growth CAPEX IMAX INVESTOR
Slide 25: Appendix
A P P E N D I X IMAX INVESTOR PRESENTATION
Slide 26: Use of Non-GAAP Financial Measures
USE OF NON -GAAP FINANCIAL MEASURES In this presentation, the Company presents adjusted net income attributable (loss) attributable to common shareholders and the associated per share to common shareholders and adjusted net income attributable to common amounts are the most directly comparable GAAP
Slide 27: 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 28: Q1 2024 Non-GAAP Reconciliation — Adjusted Net Income
FIRST QUARTER 2024 NON -GAAP FINANCIAL RECONCILIATION — ADJUSTED NET INCOME 3 MONTHS ENDED MARCH 31, 2024 3 MONTHS ENDED MARCH 31, 2023 $ IN THOUSANDS, EXCEPT EPS DATA Net Income Per Share Net Income Per Share Net Income Attributable to Common Shareholders $ 3,274 $ 0.06 $ 2,454 $ 0.04 Adjustments:
Slide 29: Q1 2024 Non-GAAP Reconciliation — Adj. EBITDA
FIRST QUARTER 2024 NON -GAAP FINANCIAL RECONCILIATION — ADJ. EBITDA $ IN THOUSANDS 3 MONTHS ENDED MARCH 3 MONTHS ENDED MARCH 31, 2024 31, 2023 Revenues $79,123 $86,946 Reported Net Income $ 5,420 $ 5,123 Add (Subtract): Income Tax Expense 5,159 4,885 Interest Expense, Net of Interest Income 919 735
Slide 30: Non-GAAP Reconciliation — Free Cash Flow
NON-GAAP FINANCIAL RECONCILIATION — FREE CASH FLOW 3 MONTHS ENDED MARCH 31, 2024 3 MONTHS ENDED MARCH 31, 2023 $ IN THOUSANDS Net Cash Provided by Operating Activities $ (10,968) $ 21,218 Purchase of Property, Plant and Equipment (1,104) (364) Acquisition of Other Intangible Assets (1,594) (1,760) F