Slide 1: 2016 First Quarter
2016 First Quarter As at March 31, 2016 Contact/Inquiries: Pat Marshall, Vice President, Communications and Investor Relations T: 416.323.6648 • E: Pat.Marshall@Cineplex.com
Slide 2: Box Office Market Share
Box Office Market Share CINEPLEX BOX OFFICE MARKET SHARE ENTERTAINMENT AS AT MARCH 31, 2016 IS THE LARGEST AND MOST SUCCESSFUL MOTION PICTURE EXHIBITION COMPANY Cineplex Landmark, 9.6% IN CANADA Entertainment, 79.5% Other, 8.9% 163 1,666 THEATRES SCREENS Guzzo, 2.0% © Cineplex Entertainment. Not to
Slide 3: Box Office Per Patron (BPP)
Box Office Per Patron (BPP) $9.23 $8.97 $9.15 $9.13 $8.67 $8.74 $8.30 $7.99 $7.99 $8.05 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Box Office Premium Offerings © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 3
Slide 4: More than Theatre Exhibition
More than Theatre Exhibition Food Service Alternative Programming Theatre Digital Exhibition Commerce Film Entertainment and Content Cineplex Starburst SCENE Inc. Amusement Gaming Media eSports and Leisure Cineplex Media The Rec Cineplex Room Digital Media © Cineplex Entertainment. Not to be distrib
Slide 5: Corporate Strategy
Corporate Strategy • Continue to enhance and expand our existing infrastructure and service offerings • Continue to expand our presence as an entertainment destination for Canadians in-theatre, at-home and on-the-go • Capitalize on our core media strengths • Develop and scale gaming-related amusemen
Slide 6: Film Entertainment and Content
Film Entertainment and Content Theatre Exhibition • Food Service • Alternative Programming • Digital Commerce © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 6
Slide 7: Premium Experiences Accounted for 40% of Box Office Revenue
Theatre Exhibition LUXURIOUS PREMIUM EXPERIENCES ACCOUNTED FOR 40% OF BOX OFFICE REVENUE FOR THE THREE MONTHS ENDED MARCH 31, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 7
Slide 8: UltraAVX
UltraAVX® • Wall to wall screens • Dolby ATMOS surround sound • Reserved seating • Extra-wide high back, rocker seats • Premium pricing • 82 auditoriums (as at March 31, 2016) 82 AUDITORIUMS 5% OF SCREENS 16% OF BOX OFFICE © Cineplex Entertainment. Not to be distributed, reproduced or used without p
Slide 9: IMAX 3D
IMAX • All locations are digital and 3D capable • Premium pricing • Reserved seating • 23 IMAX Theatres (as at March 31, 2016) 23 THEATRES 3D CAPABLE © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 9
Slide 10: D-BOX
D-BOX • Unique out-of-home experience • Seats move in synchronization with the action on screen • Premium pricing • Reserved seating • 44 locations (as at March 31, 2016) 44 LOCATIONS © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 10
Slide 11: VIP Cinemas
VIP Cinemas • Enhanced food and beverage menu • Adult-only licensed auditoriums • Reserved recliner seats • Service at your seat • Private licensed lounge and box office • Premium pricing • 16 locations and 59 screens (as at March 31, 2016) LUXURIOUS GREAT EXCEPTIONAL SEATS FOOD SERVICE © Cineplex E
Slide 12: New Builds and VIP Expansions
New Builds and VIP Expansions 2015 2016 2017 Scotiabank Theatre Cineplex Cinemas TBA Saskatoon and VIP Marine Gateway and VIP (Saskatoon, SK) (Vancouver, BC) Cineplex Cinemas Cineplex Cinemas Lansdowne and VIP Kitchener and VIP (Ottawa, ON) (Kitchener, ON) Cineplex Cinemas Cineplex Cinemas Markham a
Slide 13: Food Service
Food Service $418 Million • Focus on speed of service • Premium promotional programs • Digital menu boards REVENUE 2015 • Proprietary brands © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 13
Slide 14: Concession Per Patron (CPP)
Concession Per Patron (CPP) $5.43 $5.09 $4.82 $4.63 $4.41 $4.27 $4.12 $3.84 $3.96 $3.72 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 14
Slide 15: Outtakes Locations Nationwide
Outtakes 94 Locations Nationwide AS AT MARCH 31, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 15
Slide 16: YoYo's
YoYo’s • Self-serve frozen yogurt • Will replace all Cineplex yogurt RBOs • 90+ locations at December 2016 75 Locations Nationwide AS AT MARCH 31, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 16
Slide 17: Poptopia
Poptopia • Selection of specialty gourmet popcorn 23 Locations Nationwide AS AT MARCH 31, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 17
Slide 18: Alternative Programming
Alternative Programming CINEPLEX EVENTS • The Met: Live in HD • Family Favourites • Classic Film Series • The Great Digital Film Festival • National Theatre Live • Sensory Friendly Screenings • World Wrestling Entertainment • Concerts, Broadway shows and special events INTERNATIONAL FILM PROGRAMMING
Slide 19: Digital Commerce - Cineplex Anywhere
Digital Commerce - Cineplex Anywhere In-Theatre At-Home On-The-Go © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 19
Slide 20: Cineplex.com and Mobile App
Cineplex.com and Mobile App IMPROVING THE GUEST EXPERIENCE • Provides entertainment content before the show • Mobile ticketing - no lines CINEPLEX.COM CINEPLEX MOBILE • 105 million site visits in 2015 • One of Canada’s most popular mobile brands • 530 million page views in 2015 • Downloaded 14.3 mil
Slide 21: Cineplex Store
Cineplex Store • Re-designed and significantly improved user experience • Launched new digital platform • Available on XBOX 360, Roku, Samsung, LG, Apple, Windows, and Chromecast • Over 6,100 titles available for purchase or download • The first movie on-demand service in Canada to be available on R
Slide 22: SuperTicket
SuperTicket • First bundled offering from multiple studios • Purchase movie ticket and pre-order digital download at the same time • Lowest retail price of $19.99 includes 500 Bonus SCENE points • Movies available for earliest possible home entertainment release date • Now available for over 70% of
Slide 23: SCENE – Loyalty Program
SCENE – Loyalty Program 7.3 7.5 • Canada’s top loyalty program for movie 6.3 lovers 5.3 • Members are represented in 33% of Canadian households 4.3 • One of top five loyalty programs in Canada 3.3 2.7 • One in five Canadians are SCENE 2.1 members 1.4 0.6 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 24: SCENE – Extra Benefits
SCENE – Extra Benefits COMPETITIVE ADVANTAGE • Drives attendance frequency • Encourages concession spend • Better target offers to guests • Cineplex Store – Build awareness / promote trial • Great opportunity for film studios and promotional partners © Cineplex Entertainment. Not to be distributed,
Slide 25: Media
Media Cineplex Media • Cineplex Digital Media © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 25
Slide 26: Cineplex Media
Pre-Show Cineplex Media TimsTV Show time Concourse Digital Network Signage Shopping ONroute Centres Magazines Special Media Cineplex Mobile Cineplex.com © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 26
Slide 27: Cineplex Media
Cineplex Media Yukon • On-screen advertising – Show time and digital Pre-Show 94% • Cineplex Magazine and Le magazine Cineplex • #1 most read magazine in Canada and #2 most read B.C. magazine in Canada for all demographics under 50 97% years old Alberta • Cineplex.com advertising 94% Manitoba Atlant
Slide 28: Cineplex Media
Cineplex Media 88% 84% 70% 61% 59% 46% 39% 40% 15% Advertising Correct Brand Ad Awareness Association Entertainment TV (USA) Cinema Pre-Show Cinema Show Time SOURCES: *A Comprehensive Picture of Digital Video and TV Advertising, IAB with Nielsen data 2012; **Cinema Advertising Show-Time Impact Study
Slide 29: Overwhelming Results
Cineplex Presents TimePlay Overwhelming Results 733 56 FOR ADVERTISERS SCREENS THEATRES NATIONWIDE NATIONWIDE (as at March 31, 2016) (as at March 31, 2016) © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 29
Slide 30: Interactive Media Zones (IMZs)
Interactive Media Zones (IMZs) • Touch Engaging 46 IMZs • Gesture Interactive • Image Capture • Content Manipulation AS AT MARCH 31, 2016 ADVERTISING EXPERIENCE • Social Media Connectivity • Data Capture © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 30
Slide 31: Dynamic Screens
Digital Poster Cases 438 screens in Dynamic Screens • 3 minute loop keeps content upbeat and timely • 84” fully HD digital backlits 135 locations BRING CAMPAIGNS TO LIFE • Roll-out now complete across circuit AS AT MARCH 31, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used wi
Slide 32: Integrated Media Campaigns
Integrated Media Campaigns © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 32
Slide 33: Cineplex Digital Media
Cineplex Digital Media Path to Purchase • Point of Purchase © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 33
Slide 34: Path to Purchase
Path to Purchase • Full-service, digital place-based ecosystems • Experiential technologies on the “path to purchase” • Award-winning digital signage company • We design, install, maintain and operate networks for the retail, financial, hospitality and entertainment industries © Cineplex Entertainme
Slide 35: Oxford Properties
Oxford Properties • Expanded agreement to develop best-in-class, in-mall digital ecosystem • 10 shopping centres in major markets across Canada • Enhancing the customer experience • Influencing customer behaviour on the ”path to purchase" © Cineplex Entertainment. Not to be distributed, reproduced o
Slide 36: Ivanhoe Cambridge
Ivanhoe Cambridge © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 36
Slide 37: Point of Purchase
Point of Purchase RETAIL QUICK SERVICE FINANCIAL RESTAURANTS • Market-leading digital signage company • Designs, installs, manages and consults on • Largest digital networks in Canada some of the largest digital merchandising networks in North America • Proprietary technology © Cineplex Entertainmen
Slide 38: Quick Service Restaurants
Quick Service Restaurants © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 38
Slide 39: TimsTV
TimsTV MORE THAN 2,200 TIM HORTONS LOCATIONS ACROSS CANADA One of the largest digital signage networks in Canadian retail © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 39
Slide 40: Financial
Financial © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 40
Slide 41: Retail
Retail © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 41
Slide 42: Amusement Gaming and Leisure
Amusement Gaming and Leisure Cineplex Starburst Inc. • eSports • The Rec Room © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 42
Slide 43: Cineplex Starburst Inc.
Cineplex Starburst Inc. Largest Amusement Gaming Company in Canada • Wholly owned and operated • Supplies arcade equipment to Cineplex theatres, other circuits and numerous entertainment venues • Owns and operates Family Entertainment Centres (FECs) across Canada including XSCAPE and Playdium • Owns
Slide 44: Cineplex Starburst Inc.
Cineplex Starburst Inc. • Largest distributor and operator of arcade games in Canada and second largest distributor in the USA • Well-positioned for future growth in this resurging business • Route business – we provide the equipment and share the revenue with a third party operator such as theme pa
Slide 45: Family Entertainment Centres (FECs)
Family Entertainment Centres (FECs) CSI owns seven self-operating FECs across Canada • Playdium Mississauga • Six other FECs • 14 co-operated licensed locations 24 XSCAPE Entertainment Centres in Cineplex theatres © Cineplex Entertainment. Not to be distributed, reproduced or used without permission
Slide 46: XSCAPE Entertainment Centres
XSCAPE Entertainment Centres An entertainment concept in 24 Locations Nationwide Cineplex theatres featuring the latest video and interactive games AS AT MARCH 31, 2016 along with a redemption centre © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 46
Slide 47: eSports
eSports • Cineplex recently entered the world of eSports • In Q3 2015, we acquired an 80% interest in the operating assets of WorldGaming Limited, a leading online gaming platform • Together we are creating a community that connects live online gaming with unique in-theatre gaming experiences • Leag
Slide 48: eSports
eSports YOU TALK A BIG GAME. NOW PLAY ONE. OVER $25,000 IN PRIZES AND BIG-SCREEN GAMING FAME P RE SE N T S FE ATURING REGISTER NOW CINEPLEX.COM/GAMEON Must be a legal resident of Canada (18 or over) to enter. Must have a WorldGaming account, PlayStation® 4 system and a PS4™ copy of Street Fighter V
Slide 49: Coming in 2016
COMING IN 2016 • 40,000 – 60,000 sq. ft. • South Edmonton Common (Q3, 2016) • Toronto Roundhouse (Q1, 2017) • Deerfoot Crossing Calgary (Q2, 2017) • 10-15 locations © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 49
Slide 50: The Rec Room
The Rec Room The Rec Room will be Canada’s premier social entertainment destination. The concept features a wide range of entertainment options: • A large attractions area with amusement games and interactive attractions alongside recreational activities like pool and ping pong • Multiple dining opt
Slide 51: Acquisitions
Acquisitions EK3 – Acquired August 2013 Empire Theatres – Acquired October 2013 Brady Starburst – Formed March 2015 WorldGaming – Acquired September 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 51
Slide 52: Financial Highlights
Financial Highlights © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 52
Slide 53: Total Revenue
TOTAL REVENUE $ MILLIONS $1,371 $1,235 $1,171 $1,092 $1,006 $998 $964 $850 $805 $740 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 53
Slide 54: Adjusted EBITDA
ADJUSTED EBITDA $ MILLIONS $250 8.7% CAGR $200 $202 $201 $173 $168 $160 $137 $141 $118 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 54
Slide 55: Box Office Revenue
BOX OFFICE REVENUE $ MILLIONS $711 $665 $673 $638 $598 $581 $577 $511 $489 $459 77.0 72.7 73.6 70.0 71.2 69.0 66.1 63.5 61.1 57.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Attendance (Millions) © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 55
Slide 56: Food Service Revenue
FOOD SERVICE REVENUE $ MILLIONS $418 7.8% CAGR $350 $375 $329 $288 $295 $292 $252 $235 $5.43 $214 $5.09 $4.82 $4.63 $4.41 $4.27 $4.12 $3.96 $3.84 $3.72 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Concession Per Patron (CPP) © Cineplex Entertainment. Not to be distributed, reproduced or used wi
Slide 57: Media Revenue
MEDIA REVENUE $ MILLIONS $154 $134 GR 14.1% CA $110 $91 $82 $84 $67 $61 $56 $47 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Media Revenue Digital Media Revenue © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 57
Slide 58: Other Revenue
OTHER REVENUE $ MILLIONS $88 % R 17.3 CAG $53 $46 $41 $38 $32 $28 $25 $26 $21 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 58
Slide 59: Total Revenue Per Patron
TOTAL REVENUE PER PATRON $17.80 CAGR 3.7% $16.77 $16.11 $15.11 $15.34 $14.59 $13.78 $13.17 $13.38 $12.89 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Box Office Per Patron (BPP) Concessions Per Patron (CPP) Media Per Patron Other Per Patron © Cineplex Entertainment. Not to be distributed, repro
Slide 60: 2016 Q1 Results
2016 Q1 RESULTS MILLIONS, EXCEPT ADJUSTED EBITDA MARGIN AND PER PATRON AMOUNTS Q1 2016 Q1 2015 % Box Office $192.6 $156.0 23.5% Food Service $112.0 $90.8 23.4% Media $33.1 $29.1 13.7% Other $41.2 $13.9 196.8% Total Revenue $378.9 $289.8 30.8% Adjusted EBITDA $57.1 $40.2 42.0% Adjusted EBITDA Margin
Slide 61: Payout Ratio and Dividends
112% PAYOUT RATIO DIVIDENDS $1.54 $1.48 $1.41 $1.33 $1.28 $1.24 $1.26 $1.26 80% $1.18 $1.15 $1.15 69% 67% 65% 64% 64% 59% 62% 56% 57% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Corporate Conversion Jan. 1, 2011 © Cineplex Entertainme
Slide 62: Credit Facilities and Covenant Leverage Ratio
CREDIT FACILITIES (MILLIONS) Maturity Capacity Drawn Reserved Remaining (as at March 31/16) (as at March 31/16) Term Facility Apr. 2021 $150 $150 — — Revolving Facility Apr. 2021 $400 $155 $6.2 $238.8 Total $550 $305 $6.2 $238.8 2.89 COVENANT LEVERAGE RATIO 2.39 1.94 1.88 1.64 1.58 1.27 1.19 1.13 1.
Slide 63: Outstanding Shareholder Return
Outstanding Shareholder Return $55 $50 $45 $40 R 21% CAG $35 $30 $25 $20 $15 $10 $5 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 63
Slide 64: Non-GAAP Financial Measures
Management of Cineplex uses certain non-GAAP financial measures to evaluate Non-GAAP performance. These measures are either comparable to similar measures presented by other issuers or are widely used in the theatre exhibition industry. For a detailed discussion of these Financial Measures non-GAAP
Slide 65: Thank You!
Thank You!