Slide 1: Q2 2023 Financial Results
Q 2 2 0 2 3 F I N A N C I A L R E S U LT S Ju l y 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This earnings release contains forward looking statements that are based on IMAX® risks relating to consolidation among commercial exhibitors and studios; risks related management's assumptions and existing information and involve certain risks and to brand extensions and
Slide 3: Strategic Update
Strategic Update Richard Gelfond Chief Executive Officer
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS 1 2 3 4 5 6 ta Increase in demand Flexible, asset-lite Strong capital Robust contracted Unmatched diversified Opportunity to for premium business model with position protects pipeline with highly global network extend The IMAX experiences favors high incremental against market
Slide 5: Benefits from strong secular tailwinds while insulated from industry risks
IMAX GLOBAL REOPENING 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 Consolidation IMAX a
Slide 6: Recession Resistant Business
RECESSION RESISTANT BUSINESS DVDS OTT / SMARTPHONES 14 EXHIBITION BANKRUPTCY & CONSOLIDATION 12 MEGAPLEXES 10 INTERNET 8 $ in billions CABLE TV 6 VHS 4 2 0 1979 1984 1989 1994 1999 2004 2009 2014 2019 Recession Years Sources: MPAA, Domestic Box Office Consists of U.S. and Canada Q2 2023 FINANCIAL RE
Slide 7: Rising Market Share Across Global Box Office
RISING MARKET SHARE ACROSS GLOBAL BOX OFFICE IMAX BOX OFFICE MARKET SHARE 6.0% 5.0% 4.8% 4.8% 4.6% 4.4% 4.4% 4.4% 3.9% 4.0% 3.8% 3.7% 3.8% 3.5% 3.5% 3.3% 3.2% 3.2% 3.2% 3.3% 3.3% 3.0% 3.0% 3.0% 2.7% 2.6% 2.5% 2.5% 2.6% 2.3% 2.2% 2.3% 2.2% 2.1% 2.0% 1.6% 1.6% 1.7% 1.7% 1.5% 1.5% 1.0% 0.0% 2015 2016 2
Slide 8: IMAX Is a Global Platform
IMAX IS A GLOBAL PLATFORM W E S T E R N E U R O P E C A N A D A 40 119 Commercial Locations Countries & Territories U N I T E D S T A T E S 360 G R E A T E R C H I N A 779 100+ 1-99 L A T I N None A M E R I C A *By country 55 A S I A (EXCLUDING R E S T O F T H E GREATER CHINA) W O R L D 140 145 Sour
Slide 9: Strong Post Pandemic Recovery
STRONG POST PANDEMIC RECOVERY IMAX GLOBAL BOX OFFICE REVENUE +8% $150 +32% $400 $125 $98 $300 $248 $268 $100 $74 $75 $200 $50 $100 $25 $- $- Q2 2022 Q2 2023 Q2 2022 Q2 2023 GROSS MARGIN A D J E B I T DA (1) A D J E B I T DA (1) P E R S H A R E +31% $100 +29% +34% $75 $1.00 $75 $58 $0.75 $44 $50 $0.5
Slide 10: 'Blockbusterization' Driving Demand for Premium Screens
‘Blockbusterization’ Driving Demand for Premium Screens Super Mario Bros. Spider-Man: Across the Spider-Verse Guardians of the Galaxy Vol. 3 • Highest animated IMAX opening weekend of all time with • $20 million opening weekend for Sony Pictures' "Spider-Man: • $25 Million opening weekend box office
Slide 11: Transcending the Ordinary
TRANSCENDING THE ORDINARY • Led IMAX to fourth-best weekend at the global box office in company history • $35 million IMAX global opening weekend box office, a massive 20% of the global gross from only 740 screens • North America delivered $21 million of opening weekend with a 3-day record 26.2% of
Slide 12: Full-Year 2023 Guidance
FULL-YEAR 2023 GUIDANCE 2023 ~$1.1B 110 - 1301 Mid 30’s percent Guidance Global Box Office in IMAX back to pre-pandemic level Installations Adjusted EBITDA2 Margin % attributable to common shareholders 2022 $850M 92 30% Actuals 1Expect a similar sale/JV and new/upgrade mix as 2022 with installation
Slide 13: Worldwide Addressable Market: 3,300+
Worldwide Addressable Market: 3,300+ Network Penetration: 52% 1600 1,414 1400 1,267 3,318 1200 448 32% 1276 39% 1000 649 51% 187 13% 800 Unpenetrated Market 404 12% 637 IMAX New System Backlog 600 IMAX Network 179 28% 159 13% 400 58 9% 779 55% 1638 49% 200 459 36% 400 63% 0 Domestic Greater China Ro
Slide 14: Content Strategy
CONTENT STRATEGY HOLLYWOOD LOCAL LANGUAGE DOCUMENTARIES ALTERNATIVE CONTENT Guardians image OPPENHEIMER CREATION OF THE GODS BLUE ANGELS BRANDI CARLILE IN THE CANYON HAZE Q2 2023 FINANCIAL RESULTS 14
Slide 15: Strong Blockbuster Pipeline Continues into Back Half of 2023
E X P E C T E D 2 0 2 3 S L A T E – J U L Y O N W A R D Strong Blockbuster Pipeline Continues into Back Half of 2023 J U L Y J U L Y A U G U S T 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 The Nun 2 N O V E M B E R N O V E M B E R O C T O B E R O C T O B E R D E C E M B E R D E C E M
Slide 16: 2024 Looks to be Another Promising Year
E X P E C T E D 2 0 2 4 S L A T E 2024 Looks to be Another Promising Year F E B R U A R Y F E B R U A R Y M A R C H M A R C H M A R C H M A R C H M A Y ARGYLLE THE FALL GUY DEADPOOL 3 M A Y J U L Y S E P T E M B E R J U N E J U L Y O C T O B E R D E C E M B E R Mission: Impossible – Dead BEETLEJUICE
Slide 17: Promising Pipeline of Local Language Titles
Promising Pipeline of Local Language Titles Creation of the Gods I: Smugglers One and Only No More Bets Sand Land Silent Service Kingdom of Storms Korea China China Japan Japan China (July 26, 2023) (July 28, 2023) (Aug 11, 2023) (Aug 18, 2023) (Sep 29, 2023) (July 20, 2023) More Titles to be Announ
Slide 18: Local Language Growth
LOCAL LANGUAGE GROWTH • Record start to 2023: Q1 2023 highest grossing quarter ever for local language films (30% of Q1 IMAX box office) with record Chinese New Year of $61M with LOCAL LANGUAGE TITLE GROWTH highest grossing local language release ever in Wandering Earth 2 40+ TITLES EXPECTED IN 2023
Slide 19: IMAX 3.0
IMAX 3.0 IMAX Expansion of Global IMAX Iconic Theaters, Visionary Creators, 3.0 Entertainment Technology Platform 2.0 Blockbuster Content, Rapidly IMAX Expanding Global Network Museums & 1.0 Documentaries Q2 2023 FINANCIAL RESULTS
Slide 20: Next Generation Technology and Home Experience
NEXT GENERATION NEXT GENERATION BRINGING THE IMAX DIGITAL REMASTERING IMAX FILM CAMERAS PROJECTION TECHNOLOGY EXPERIENCE TO THE HOME Lightyear Development Phase Underway Transformation to an All IMAX-with- Cloud Optimized IMAX Enhanced • Developing and expect to deploy at least 4 Laser Product Line
Slide 21: SSIMWAVE Acquisition
SSIMWAVE ACQUISITION Accelerate & Scale Revolutionize IMAX's Capabilities Deepen IMAX Technology SSIMWAVE's Business to Drive New Revenue and IP Moat Leverage IMAX Brand , industry Tap into a large new $1B+ Leverage SSIMWAVE tech/IP to extend relationships and global footprint to addressable market
Slide 22: Financial Review
Financial Review Natasha Fernandes Chief Financial Officer
Slide 23: Q2 Financial Performance
Q2 FINANCIAL PERFORMANCE $ IN MILLIONS Q2 Q2 1H 1H except per diluted share data and 2023 2022 2023 2022 network data 1H 2023 HIGHLIGHTS Global Box Office $268.3 $257.9 $541.7 $420.9 Global Commercial Network 1,638 1,610 1,638 1,610 Revenue $98.0 $74.0 $184.9 $134.0 IMAX GBO 74 System Gross Margin (
Slide 24: Other Items
OTHER ITEMS ITEMS FINANCIAL IMPACT Q2 2023 1H 2023 $ IN MILLIONS, EXCEPT EPS DATA $ IN MILLIONS, EXCEPT EPS DATA Executive Transition Costs Net Loss(1) - $(1.4) Executive Transition Costs EPS(1) - $(0.02) Acquisition-related Expenses Net Loss(1) - $(0.2) Acquisition-related Expenses EPS(1) - $(0.00)
Slide 25: Q2 2023 Sales and STL; Systems Backlog and Pipeline
SYSTEMS NETWORK GROWTH DRIVERS BACKLOG PIPELINE 496 450 Q2 2023 1H 2023 FULL YEAR 2022 17 TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL SIGNINGS INSTALLATIONS SIGNINGS INSTALLATIONS SIGNINGS INSTALLATIONS 75 17 Other Upgrades JV Upgrades 72 Sales and STL 23 9 37 16 18 28 JV Hybrid JRSA 119 Sales/Sales Type Le
Slide 26: Operating Cash Flow, Debt Maturity, Liquidity and Leverage
OP E R AT I N G C ASH F LOW ( $ IN MILLIO NS ) D E BT M AT UR I T Y LA D D E R ($ I N M I LLI ON S) $250 $30 $200 $15 $26 $17 $150 $6 $- $231 $100 $(23) $(15) $50 $9 $1 $1 $21 $1 $- $(30) 2023 2024 2025 2026 2027 2028 2020 2021 2022 1H 2023 CASH & LIQUIDITY POSITION LEVERAGE POSITION ($ IN MILLIONS)
Slide 27: Delivering Value Through Share Repurchase
DELIVERING VALUE THROUGH SHARE REPURCHASE YEAR-END SHARES SHARES REPURCHASED AVERAGE OUTSTANDING PAST 3 YEARS 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) 65,000 $16 6,000 16.0% 14.3% $14 60,000 14.0% 5,000 $12 55,000 12.0% 4,000 $10 50,
Slide 28: Attractive Cash Flow Model Focused on Growth Capex
ATTRACTIVE CASH FLOW MODEL – FOCUSED ON GROWTH CAPEX $30 $ IN MILLIONS 25.9 $25 21.4 $20 17.3 $15 $10 $5 3.5 4.0 1.0 $- 1H23 Operating PP&E Investment FCF Before Investments In 1H23 Free Cash Flow in Software Growth JRSA Lease Cash Flow Intangibles Investment Equipment Maintenance CAPEX Growth CAPEX
Slide 29: Appendix
A P P E N D I X Q2 2023 FINANCIAL RESULTS
Slide 30: Use of Non-GAAP Financial Measures
USE OF NON -GAAP FINANCIAL MEASURES In this earnings presentation, the Company presents adjusted net income after-tax impact of share-based compensation and certain unusual items attributable to common shareholders and adjusted net income attributable to included in net loss attributable to common s
Slide 31: Use of Non-GAAP Financial Measures (continued)
USE OF NON -GAAP FINANCIAL MEASURES In addition to the non-GAAP financial measures discussed on the previous or used in operating activities. Management believes that free cash flow is a slide, management also uses “EBITDA,” as well as “Adjusted EBITDA per Credit supplemental measure of the cash flo
Slide 32: Q2 2023 Non-GAAP Reconciliation: Adjusted Net Income
Q2 2023 NON-GAAP FINANCIAL RECONCILIATION — ADJUSTED NET INCOME 3 MONTHS ENDED JUNE 30, 2023 6 MONTHS ENDED JUNE 30, 2023 $ IN THOUSANDS, EXCEPT EPS DATA Net Income Per Share Net Income Per Share Net Income Attributable to Common Shareholders $ 8,351 $ 0.15 $ 10,805 $ 0.20 Adjustments: Share-Based C
Slide 33: Q2 2023 Non-GAAP Reconciliation: Adj. EBITDA
Q2 2023 NON-GAAP FINANCIAL RECONCILIATION — ADJ. EBITDA 3 MONTHS ENDED JUNE 30, 2023 3 MONTHS ENDED JUNE 30, 2022 Attributable to Less: Attributable to Non- Less: Attributable to Attributable to $ IN THOUSANDS Non-Controlling Interests & Attributable to Non- Controlling Interests & Attributable to N
Slide 34: Non-GAAP Reconciliation: Free Cash Flow
NON-GAAP FINANCIAL RECONCILIATION — FREE CASH FLOW 6 MONTHS ENDED JUNE 30, 2023 $ IN THOUSANDS Net Cash Provided by Operating Activities $ 25,855 Net Cash Used in Capital Expenditures (8,520) Free Cash Flow $ 17,335 Q2 2023 FINANCIAL RESULTS 34