Imax China Holding Inc · HKEX:1970
Imax China — Investor Presentation (August 2021)
25 slides from Imax China's investor presentation, August 2021
Slide 1: IMAX China (1970 HK) Investor Presentation
IMAX China (1970 HK) Investor Presentation August 2021 ® IMAX 1 Corp.
Slide 2: Disclaimer
Disclaimer This document is not intended to form or provide any basis of any decision in connection with IMAX China Holding, Inc. (the "Company") or any other entity in which it directly or indirectly holds any interest (together with the Company, hereinafter referred to as the "Group"). It does not
Slide 3: Ecosystem, Business Model, Investment Thesis, Financials
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 3
Slide 4: Unique Position in the Greater China Entertainment Ecosystem
Unique Position in the Greater China Entertainment Ecosystem Upstream Downstream ECOSYSTEM Filmmakers Studios Exhibitors Audience The IMAX IMAX IMAX Digital IMAX Theatre Media Experience TECHNOLOGY Camera Systems Technology Remastering Technology (DMR) “Films to the Fullest” Content Content Content
Slide 5: Chinese Film Market Sees Room for Growth From Both Demand and Supply Perspective
Chinese Film Market Sees Room for Growth From Both Demand and Supply Perspective Movie admission per capita No. of cinema screen per 100,000 population 80 14.0 2,000 5.00 70 70 12.3 12.0 1,800 1,716 1,727 4.50 1,620 60 60 1,600 4.00 10.0 3.78 51 1,360 1,340 1,374 1,400 1,270 1,320 1,314 1,304 3.50 5
Slide 6: Business Model
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 6
Slide 7: Our Business Model - Diversifying Monetization
Our Business Model - Diversifying Monetization IMAX China business models Technology Network Business • Film revenue (from studios) Box office-based • Revenue sharing fee (from JV + revenue Hybrid exhibitors) Technology Sales & Maintenance Business • Maintenance revenue (from all Network-based exhib
Slide 8: Our Network Effect Drives Higher Recurring Revenue Mix
Our Network Effect Drives Higher Recurring Revenue Mix Increasing mix of recurring revenue (1) Installation-based Network-based Box office-based 41.7% 39.2% 48.3% 49.8% 48.2% 17.7% 18.2% 11.0% 13.3% 22.8% 61% 40.6% 40.6% 42.6% 36.9% 29.0% FY2016 FY2017 FY2018 FY2019 FY2020 (2) Note (1): Recurring re
Slide 9: Investment Thesis
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 9
Slide 10: Why IMAX China is Well-Positioned in a Post-Pandemic Theatrical Industry
Why IMAX China is Well-Positioned in a Post-Pandemic Theatrical Industry Demonstrated Demand IMAX Beyond COVID Upon Reopening Accelerating Structural Tailwinds Differentiated positioning ❑ Strong revenue rebound to US$53.4 million in ❑ “Blockbusterization” effect in content ❑ China’s largest premium
Slide 11: Theatrical Business Increasingly Centered Around Blockbusters
Theatrical Business Increasingly Centered Around Blockbusters Total box office of top five grossing movies IMAX titles that surpassed a RMB1 billion box office milestone since theatre reopening 30,000 60% (in RMB millions) 47% 50% 25,000 40% 20,000 31% 25% 25% 30% 19% Detective Chinatown 3 The Eight
Slide 12: 'Blockbusterization' in Content Consumption Drives Higher Indexing and Market Share
‘Blockbusterization’ in Content Consumption Drives Higher Indexing and Market Share for IMAX China IMAX China Box Office Market Share in Hollywood Titles IMAX China Indexing(1) on Hollywood Titles 9.0% 14.0% 12.9% 8.0% 8.0% 7.3% 12.0% 6.8% 10.7% 7.0% 10.0% 10.0% 6.0% 5.8% 8.8% 5.0% 8.0% 4.0% 6.0% 3.
Slide 13: Growing IMAX Indexing Across Both Hollywood and Local Language Blockbusters
Growing IMAX Indexing Across Both Hollywood and Local Language Blockbusters The Eight Hundred (Aug 2020) Detective Chinatown 3 (Feb 2021) Avatar re-release (March 2021) Godzilla vs. Kong (March 2021) Fast & Furious 9 (May 2021) • First local-language title shot • Filmed with IMAX cameras • More than
Slide 14: Early Success in Local Language Programming Drives Market Share Gain
Early Success in Local Language Programming Drives Market Share Gain… IMAX China Box Office Market Share in Local Language Titles IMAX China Local Language Box Office 3.0% 80 2.5% 70 68 2.5% 60 59 57 2.0% 2.0% 1.8% 50 50 1.6% 1.5% 40 30 1.0% 20 0.5% 10 4 0.0% 0 (1) 2017 2018 2019 Since reopening 1H1
Slide 15: And Rising Box Office Contribution From Local Language Titles
…And Rising Box Office Contribution From Local Language Titles IMAX China box office distribution (Hollywood vs. Local) China box office distribution (Hollywood vs. Local) Hollywood box office Hollywood box office Local language box office Local language box office 16.3% 33.6% 36.0% 42.0% 40.0% 46.4
Slide 16: Strong Pipeline of Tentpole Releases (2H21)
Strong Pipeline of Tentpole Releases (2H21) SHANG-CHI Venom 2: Black and the Legend Let There Be Dune Widow of the Ten Carnage Oct 2021 July 2021 Rings Oct 2021 Sept 2021 SPIDER- 007: No THE Top Gun: MAN: No Time to Die ETERNALS Maverick Oct 2021 Nov 2021 Nov 2021 Way Home Dec 2021 Heavy involvement
Slide 17: Strong Pipeline of Tentpole Releases (2022)
Strong Pipeline of Tentpole Releases (2022) Doctor Mission Strange The Thor: Love Impossible In The Multiverse Batman and Thunder of Madness March 2022 May 2022 7 May 2022 March 2022 Jurassic Black Captain World 3: Panther 2: Marvel 2: Avatar 2 Dominion Wakanda Dec 2022 The Marvels June 2022 Forever
Slide 18: Promising Pipeline of Potential Local Language Titles
Promising Pipeline of Potential Local Language Titles The Battle at Lake Mozart From Creation of the Wandering Changjin Space (1) Gods I (2) Earth 2 (1): Filmed in IMAX (2): First installment of Fengshen Trilogy Note: Release schedule of the abovementioned titles in China to be determined. Multiple
Slide 19: Industry Consolidation an Opportunity, Not a Risk
Industry Consolidation an Opportunity, Not a Risk IMAX China Theater Penetration in Top 500 Complexes 90% IMAX China 1H21 GBO by Multiplex Cohort 80% 80% 72% 5% Top 5% 68% 68% 4% Top 6-10% 70% 66% 64% 65% 62% 62% 62% Top 11-15% 60% 59% 56% 54% 10% Top 16-20% 53% Below top 20% 50% 49% 40% 30% 19% 20%
Slide 20: Expanding Network Footprint
Expanding Network Footprint IMAX Greater China Theater Footprint Greater China Backlog Mix2 Backlog Full revenue sharing Hybrid revenue sharing Sales arrangement IMAX zones: approximately 1,400 1 237 384 108 267 As of Jun 30, 2021 Note 1: As of June 30, 2021 Note 2: As of June 30, 2021 Source: Compa
Slide 21: Financials
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 21 21
Slide 22: Strong Financial Position and Unique Business Model Drives Quick Profitability Turnaround
Strong Financial Position and Unique Business Model Drives Quick Profitability Turnaround Strong fundamentals Increase shareholder value ❑ Asset-light business model provides financial flexibility ❑ Strong recovery in box office upon theatre reopening drove quick profitability turnaround to 1H21 adj
Slide 23: Key Highlights (1H21 vs. 1H20)
Key Highlights (1H21 vs. 1H20) Key Financial Highlights 1H2021 1H2020 (in USD 000, unless otherwise stated) Greater China Box Office1 132,828 7,393 Theatre Network (in unit) 759 714 Total Revenue 53,431 6,662 - Technology Network Business 21,703 1,120 Take-rate2 16.3% 15.1% - Technology Sales & Main
Slide 24: Long-term Shareholder Value Creation
Long-term Shareholder Value Creation Capital returned to shareholders Dividend trend (in USD mn) (in USD mn) 50% 33.3 33% 33% 33% 27.6 14.1 19.5 21.5 15.5 $14.4 $14.3 $14.0 $14.0 16.7 19.2 $9.7 13.9 6.1 1.5 2.8 (1) FY2018 FY2019 FY2020 YTD2021 FY17 FY18 FY19 FY20 1H21 Adjusted earnings payout ratio(
Slide 25: Investor Presentation IMAX® is a registered trademark of IMAX Corporation.
Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 25
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