Slide 1: 2015 Third Quarter
2015 THIRD QUARTER (as of September 30, 2015) Contact: Pat Marshall Vice President, Communications and Investor Relations 416.323.6648 pat.marshall@cineplex.com 1
Slide 2: Cineplex Entertainment
Cineplex Entertainment The Largest and Most Successful Motion Picture Theatre Exhibition Company in Canada 162 Theatres 1,652 Screens Guzzo 2% Other Landmark 11% 9% Landmark Box Office Market Share Cineplex 9% As of September 30, 2015 Entertainment Other 79% 10% Guzzo 2% 2
Slide 3: More Than Theatre Exhibition
More Than Theatre Exhibition Exhibition SCENE Food Service Media Customers Amusement Alternative Gaming & Programming The Rec Room Digital Commerce 3
Slide 4: Corporate Strategy
Corporate Strategy Continue to enhance and expand our existing Continue to expand our presence as an infrastructure and service offerings. entertainment destination for Canadians, in-theatre, at-home and on-the-go Pursue selective acquisitions and Capitalize on our core media strengths. diversificat
Slide 5: Box Office Per Patron (BPP)
Box Office Per Patron (BPP) $9.15 $9.13 $8.74 $8.97 $8.67 $8.30 $7.99 $7.99 $8.05 $7.73 Premium Offerings 5
Slide 6: Premium Revenue
PREMIUM EXPERIENCES Accounted For 40% of Box Office REVENUE as of Dec 31/2014 68
Slide 7: Premium Experiences: Auditoriums
Wall to wall screens Dolby ATMOS surround sound Reserved Seating Extra-wide high back, rocker seats Premium Pricing 77 auditoriums as of September 30, 2015 Adding 10 auditoriums by end of 2015 77 AUDITORIUMS 5% OF SCREENS 12% OF BOX OFFICE 7
Slide 8: Premium Experiences
Premium Experiences 23 IMAX theatres as of September 30, 2015 All locations are digital Premium pricing Reserved seating 8
Slide 9: Premium Experiences
Premium Experiences Unique out-of-home experience Seats move in synchronization with the action on screen 38 locations as of September 30, 2015 Premium pricing Signed agreement for additional theatre locations in Oct/14. Balance of 10 locations to be completed by Dec 31/15 9
Slide 10: Seats Food Service
LUXURIOUS GREAT EXCEPTIONAL SEATS FOOD SERVICE 13 10
Slide 11: Enhanced Food and Beverages
Enhanced food and beverages Premium pricing 14 locations and 53 screens (as at Sept 30, 2015) Adult-only auditoriums Reserved club style seats Service at your seat Private licensed lounge and box office 14 11
Slide 12: New Builds
New Builds 2014 2015 2016 Cineplex Cinemas Scotiabank Theatre Cineplex Cinemas Queensway and VIP (Toronto, ON) Saskatoon and VIP (Saskatoon, SK) Seton and VIP (Calgary, AB) Cineplex Cinemas Cineplex Cinemas Cineplex Cinemas Manning Town Centre (Edmonton, AB) Lansdowne and VIP (Ottawa, ON) Kitchener
Slide 13: Food Service
Food Service Focus on speed of serving $375 Million Premium promotional programs Digital menu boards REVENUE 2014 Proprietary brands 13
Slide 14: Concession Per Patron (CPP)
Concession Per Patron (CPP) 14
Slide 15: Locations Nationwide
93 LOCATIONS NATIONWIDE At Sept 30, 2015 15
Slide 16: Self-serve Frozen Yogurt
Self-serve frozen yogurt 69 First standalone location opened in Guelph, Ontario Will replace all Cineplex yogurt RBO’s LOCATIONS NATIONWIDE At Sept 30, 2015 90+ locations by Dec 2016 19 16
Slide 17: Selection of Specialty Gourmet Popcorn
21 LOCATIONS NATIONWIDE Selection of specialty gourmet popcorn At Sept 30, 2015 17
Slide 18: Gaming
Gaming Largest Amusement Gaming Company In Canada Cineplex Starburst Inc. – Largest distributor and operator of arcade games in Canada and second largest distributor in the USA (wholly owned and operated) Supplies arcade equipment to Cineplex theatres, other circuits and numerous entertainment venue
Slide 19: XSCAPE Entertainment Centres
Gaming: XSCAPE Entertainment Centres 22 LOCATIONS NATIONWIDE An entertainment concept featuring the latest video and interactive games along with a redemption centre and a full- service, licensed lounge At Sept 30, 2015 19
Slide 20: SCENE
SCENE 7.1 Number of Members (millions) 6.3 5.3 4.3 3.3 2.7 2.1 1.4 0.6 2007 2008 2009 2010 2011 2012 2013 2014 Q3* Canada’s top loyalty program for movie lovers 2015 * Q3 2015 Members are represented in 33% of Canadian households One of top five loyalty programs in Canada 1 in 6 Canadians are SCENE
Slide 21: SCENE: Extra Benefits
SCENE: EXTRA BENEFITS COMPETITIVE ADVANTAGE Drives attendance frequency Encourages concession spend Better target offers to guests Cineplex Store: build awareness and promote trial Great opportunity for film studios and promotional partners 21
Slide 22: Alternative Programming
Alternative Programming FRONT ROW CENTRE EVENTS The Metropolitan Opera Family Favourites Classic Film Series The Great Digital Film Festival World Wrestling Entertainment National Theatre Live, Concerts, Broadway shows and special events 3D events Sensory Friendly Screenings eSports ETHNIC FILM PROG
Slide 23: eSports
eSports Cineplex recently entered the world of eSports In Q3, we acquired an 80% interest in the operating assets of World Gaming Limited, a leading online gaming platform Together we are creating a community that connects live online gaming with unique in- theatre gaming experiences Leagues, gaming
Slide 24: Corporate Strategy
Corporate Strategy Continue to enhance and expand our existing Continue to expand our presence as an infrastructure and service offerings. entertainment destination for Canadians, in-theatre, at-home and on-the-go Pursue selective acquisitions and Capitalize on our core media strengths. diversificat
Slide 25: Cineplex Media / Cineplex Digital Media
Cineplex Media Cineplex Digital Media 25
Slide 26: Media Revenue
Media Revenue ($millions) Digital Media Revenue 26
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Slide 28: Cineplex Media
Cineplex Media On-screen advertising – Show time and digital pre-show Cineplex.com advertising Cineplex Magazine and Le magazine Cineplex Specialty media #2 most read magazine in Canada and #1 most read magazine in Sponsorship and naming rights Canada for all demographics under 50 years old (as at O
Slide 29: Cineplex Media
Cineplex Media TV Cinema Show Time Advertising Correct Brand Ad Awareness Association Entertainment SOURCE: Impact Study 2007-2013, Strategic Marketing Counsel 29
Slide 30: Overwhelming Results
730 SCREENS NATIONWIDE 56 THEATRES NATIONWIDE OVERWHELMING RESULTS FOR ADVERTISERS 36 30
Slide 31: Digital Poster Cases
How do you describe the opposite of beige? 31
Slide 32: Engaging, Interactive
INTERACTIVE MEDIA ZONE (IMZ) Touch Gesture Image Capture Content Manipulation Social Media Connectivity Data Capture ENGAGING, 46 IMZs INTERACTIVE AT SEPT 30, 2015 ADVERTISING EXPERIENCE 32 32
Slide 33: Integrated Media Campaigns
Integrated Media Campaigns 40 33
Slide 34: Cineplex Digital Media
Cineplex Digital Media Path To Purchase Point of Purchase 34
Slide 35: Path to Purchase
Path to Purchase Full-service, digital place-based Award-winning digital signage company ecosystems We design, install, maintain and operate networks for the Experiential technologies on the “path retail, financial, hospitality and entertainment industries to purchase” 35
Slide 36: 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" Oxford Properties 36
Slide 37: Ivanhoe Cambridge
Ivanhoe Cambridge 37
Slide 38: Point of Purchase
Retail Quick Service Restaurant POINT OF PURCHASE Market-leading digital signage company Largest digital networks in Canada Two billion impressions annually Proprietary technology Designs, installs, manages and consults on some of the largest digital merchandising networks in North America Financial
Slide 39: Quick Service Restaurants
Quick Service Restaurants 39
Slide 40: TimsTV
TimsTV More than 2,200 Tim Hortons locations across Canada One of the largest digital signage networks in Canadian retail 40
Slide 41: Financial
i RBC ‘ Se Royal Bank BCE
Slide 42: Retail
Retail 42
Slide 43: Corporate Strategy
Corporate Strategy Continue to enhance and expand our existing Continue to expand our presence as an infrastructure and service offerings. entertainment destination for Canadians, in-theatre, at-home and on-the-go Pursue selective acquisitions and diversification opportunities that are strategic, Ca
Slide 44: Cineplex Anywhere
Cineplex Anywhere In-Theatre At Home On-The-Go 44
Slide 45: Cineplex.com and Mobile App
Cineplex.com and Mobile App Provides entertainment content before show Mobile ticketing - no lines IMPROVING THE GUEST EXPERIENCE CINEPLEX MOBILE CINEPLEX.COM One of Canada’s most popular mobile brands 23% increase in unique visitors (YoY at Q3 15) Downloaded 12.8 million times and recorded 28% incr
Slide 46: 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 7,200 titles available for purchase or download The first movie on-demand service in Canada to be available on Roku Cineplex Store La Bou
Slide 47: SuperTicket
SuperTicket First bundled offering from multiple studios Purchase movie ticket and pre-order digital download at the same time Access special features, bonus SCENE points, exclusive extras, special footage Digital download available before DVD/Blu-ray release date 47
Slide 48: Corporate Strategy
Corporate Strategy Continue to enhance and expand our existing Continue to expand our presence as an infrastructure and service offerings. entertainment destination for Canadians, in-theatre, at-home and on-the-go Pursue selective acquisitions and Capitalize on our core media strengths. diversificat
Slide 49: Coming In 2016
COMING IN 2016 10-15 locations by 2018 South Edmonton Commons (Spring 2016) Deerfoot Crossing Calgary (Q4/16) 40,000 - 60,000 sq. ft. 49 27
Slide 50: EK3 and Empire Acquisitions
EK3: Acquired August 2013 Empire: Acquired October 2013 50 50
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Slide 52: Total Revenue
Total Revenue ($millions) 52
Slide 53: Adjusted EBITDA
Adjusted EBITDA ($millions) 53
Slide 54: Box Office Revenue
Box Office Revenue ($millions) Attendance (millions) 54
Slide 55: Food Service Revenue
Food Service Revenue ($millions) Concession Per Patron (CPP) 55
Slide 56: Media Revenue
Media Revenue ($millions) Digital Media Revenue 56
Slide 57: Other Revenue
Other Revenue ($millions) 57
Slide 58: Total Revenue Per Patron
Total Revenue Per Patron $16.77 $16.11 $15.11 $15.34 $14.59 $13.78 $12.89 $13.17 $13.38 $12.27 Box Office Per Patron (BPP) Concession Per Patron (CPP) Media Per Patron Other Per Patron 58
Slide 59: Q3 2015 Results
Q3 2015 Results Q3 2015 Q3 2014 % Box Office $172.6 $162.6 6.1% Food Service $105.5 $92.1 14.5% Media $34.3 $32.0 7.2% Other $15.9 $12.3 29.1% Total Revenue $328.3 $299.0 9.8% Adjusted EBITDA $59.1 $48.0 23.0% EBITDA Margin 18.0% 16.1% 1.9% Attendance 19.4 18.0 7.6% BPP $8.89 $9.01 -1.3% CPP $5.43 $
Slide 60: Payout Ratio Dividends
Payout Ratio Dividends Corporate Conversion Jan. 1, 2011 60
Slide 61: Credit Facilities Covenant Leverage Ratio
Credit Facilities Maturity Capacity Drawn Reserved Remaining Term Facility Oct. 2018 $150 $150 — — Revolving Facility Oct. 2018 $250 $160 $5.4 $84.6 Total $400 $310 $5.4 $84.6 Covenant Leverage Ratio 2.89 2.39 1.94 1.88 1.64 1.58 1.47 1.19 1.13 1.27 1.41 0.89 2005 2006 2007 2008 2009 2010 2011 2012
Slide 62: Outstanding Shareholder Return
OUTSTANDING SHAREHOLDER RETURN $50 45 40 35 30 25 20 15 10 5 Q3 62
Slide 63: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Management of Cineplex uses certain non-GAAP financial measures to evaluate 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 non-GAAP