Amc Entertainment Holdings, Inc. · NYSE:AMC
Amc Entertainment — Merger or Acquisition (July 2016)
13 slides from Amc Entertainment's merger presentation, Jul 12, 2016
Slide 1: Disclaimer
Disclaimer 2 This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “plan,” “estimate,” “wil
Slide 2: Transaction Highlights
Transaction Highlights Increases platform for AMC’s strategic growth initiatives Introduce AMC’s proven and successful strategies to millions of new guests in Europe Expect between 50 to 60 incremental recliner re-seat theatres over the next 5 years Creates the #1 Global Exhibitor Expands Platform F
Slide 3: Transaction Overview
Transaction Overview 4 Key Transaction Terms Transaction Financing 75% in cash / 25% in stock consideration, subject to lock-ups The transaction has fully committed debt financing in place Permanent financing will be a combination of term loans and bonds, targeting leverage in the near term of appro
Slide 4: Value Creation Opportunity for AMC Shareholders
Value Creation Opportunity for AMC Shareholders Transformative transaction with significant growth opportunity Attractive valuation relative to trading multiples of European comparables Transaction structure creates alignment of interest and provides AMC flexibility Expands opportunity for deploymen
Slide 5: Odeon & UCI - Leading Theatre Operator in Europe
Odeon & UCI - Leading Theatre Operator in Europe 6 Geographic Footprint (March 2016) Leading European theatre operator with 242 theatres and 2,236 screens Largest theatre operator in Europe by number of theatres and screens #1 theatre operator in UK & Ireland, Italy and Spain 120 million people live
Slide 6: Large Markets with Growing Theatre Attendance
Large Markets with Growing Theatre Attendance 7 Operates in Four of the Five Largest European Markets (2015 Box Office Revenue by Country, $ in millions) European Theatre Attendance Is Growing (Theatre Attendance per Year, in millions) Source: UNIC, Dodona, SNL Kagan. (1.1%) ‘12 – ‘15 CAGR (0.5%) 1.
Slide 7: Post Transaction Pro Forma Circuit Snapshot
Source: Public filings. Note: Excludes Carmike. LTM as of March 31, 2016. As of March 31, 2016. Based on average screens for period March 31, 2015 – March 31, 2016. Post Transaction Pro Forma Circuit Snapshot 8 + = Attendance(1) (in millions) Theatres(2) Screens(2) Revenue(1) ($ in million) 31% 39%
Slide 8: AMC's Growth Initiatives Have Proven Track Record
9 AMC’s Growth Initiatives Have Proven Track Record Recliner Success Story(1) First 50 locations converted prior to April 1, 2015, excludes screens acquired. 52 weeks ended December 29, 2011 and LTM ended March 31, 2016. First 13 locations open prior to April 1, 2014, Second year post –DIT compared
Slide 9: Post Transaction Pro Forma Currency Exposure
10 Post Transaction GBP EUR 2015 Revenue Mix(1) EUR GBP USD Source: Company Filings. Note: Excludes Carmike. Odeon & UCI revenues based on 2015 average GBP/USD FX. Pro Forma Currency Exposure 51% 49% 14% 72% 14%
Slide 10: European Market is Ripe for Customer Initiatives
European Market is Ripe for Customer Initiatives Theatre Visits per Capita Annual Spend per Customer $32 $14 $14 $13 $15 Screen / Million pop. 127 76 59 66 58 Pop. Density (Person/sq. km) 35 93 120 207 234 Top 3 Operator Market Share 50% 43% NA 38% 15% Source: Company filings, Box Office Mojo, IMAX.
Slide 11: Odeon & UCI Identified Locations for Initiatives
12 AMC Current Screens (1) 3,860 1,208 312 5,380 AMC 5-Yr. Target Screens (2) 2,201 3,410 450 6,061 Odeon & UCI 5-Yr. Target Screens(2) 1,878 495 22 2,395 Consolidated 5-Yr. Target Screens(2) 4,079 3,905 472 8,456 Big, Stable Core Circuit Recliner Re-seats Dine-In Theatres Emerging Growth Circuit No
Slide 12: Transaction Financing Overview
13 Transaction Financing Overview ($ in millions) Total consideration to seller of £500 million ($651 million) Cash consideration of £375 million ($488 million) Stock consideration of £125 million ($163 million)(1) Fully committed debt financing consisting of: TLB commitment of $525 million (under a
Slide 13: Key Takeaways
Key Takeaways Creates the #1 global theatrical exhibition company Expands platform for AMC’s proven strategic growth initiatives Leverages Odeon & UCI’s innovative marketing, CRM and pricing expertise Attractive valuation relative to trading multiples of European comparables Expected annual run-rate
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