Slide 1: Q1 2023 Financial Results
Q 1 2 0 2 3 F I N A N C I A L R E S U LT S A PR I L 2 0 2 3
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 Flexible, asset-lite Strong capital Robust contracted Diversified global Opportunity to “Blockbusterization” business model with position protects pipeline with highly network benefits from extend the IMAX Favors IMAX high incremental against market r
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 theatre Industry complexes; insulated from potential consolidation Consolidation of exhibitor customers Growth in Global Box Office
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 Q1 2023 FINANCIAL RE
Slide 7: Rising Market Share Across Global Box Office
RISING MARKET SHARE ACROSS GLOBAL BOX OFFICE IMAX BOX OFFICE MARKET SHARE Q1 2023 FINANCIAL RESULTS 7
Slide 8: IMAX China record Chinese New Year and first-quarter box office
I M A X C H I N E S E N E W Y E A R (1) IMAX FIRST-QUARTER BOX OFFICE BOX OFFICE AND MARKET SHARE AND MARKET SHARE 250 4% 800 5% 3.6% 3.4% 4.3% 700 200 3.9% 4% 3% 600 2.7% 2.6% 2.5% 3.2% 500 3.2% 150 2.7% 3% 2.8% 2% 400 231 728 2.3% 213 213 679 100 2% 300 584 563 152 150 462 1% 200 50 328 1% 92 100
Slide 9: IMAX Is a Global Platform
IMAX IS A GLOBAL PLATFORM R U S S I A / T H E C I S & U K R A I N E 69 W E S T E R N C A N A D A E U R O P E Commercial Locations 40 118 Countries & Territories U N I T E D S T A T E S 361 G R E A T E R C H I N A 777 L A T I N A M E R I C A 100+ 26 — 100 54 A S I A (EXCLUDING 11 — 25 GREATER CHINA)
Slide 10: Strong Post Pandemic Recovery
STRONG POST PANDEMIC RECOVERY GLOBAL BOX OFFICE REVENUE $350 58% $100 45% $87 $300 $273 $80 $250 $60 $200 $173 $60 $150 $40 $100 $20 $50 $- $- Q1 2022 Q1 2023 Q1 2022 Q1 2023 GROSS MARGIN A D J E B I T D A (1) A D J E B I T D A (1) P E R S H A R E 58% $75 84% 100% $50 $0.80 $50 $50 $40 $0.50 $32 $27
Slide 11: Avatar Effect
AVATAR EFFECT • Highest grossing first-run IMAX release of all time with approx. ~$250 million in GBO — including $109 million in 2023 • IMAX commands 11.3% of overall GBO on less than 1% of screens • IMAX China captured over $52 million of box office and 22% indexing – a record for a first-run Holl
Slide 12: Record IMAX indexing across local language and import titles
Avatar: The Way of Water (IMAX 3D) The Wandering Earth 2 (IMAX) Suzume (IMAX) • IMAX indexing of 22% - Record for a first-run • A Filmed-for-IMAX title • 8% IMAX opening weekend indexing – record for a Hollywood release Japanese animation film • RMB4.0bn box office with IMAX indexing of 9% • Second
Slide 13: 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 1 Installations Expect a similar sale/JV and new/upgrade mix as 2022 with Adjusted EBITDA2 Margin % attributable to common shareholders installation timing weighted to Q4. 20
Slide 14: Worldwide Addressable Market: 3,300+
Worldwide Addressable Market: 3,300+ Network Penetration: 49% 1600 1,414 1400 1,267 3,318 1200 447 32% 1307 39% 1000 671 53% 190 13% 800 Unpenetrated Market 380 12% 637 IMAX New System Backlog 600 30% IMAX Network 189 143 11% 7% 400 47 777 55% 1631 49% 200 401 63% 453 36% 0 Domestic Greater China Ro
Slide 15: Content Strategy
CONTENT STRATEGY HOLLYWOOD LOCAL LANGUAGE DOCUMENTARIES ALTERNATIVE CONTENT ANTMAN AND THE SUZUME BLUE ANGELS BRANDI CARLILE WASP QUANTUMANIA IN THE CANYON HAZE Q1 2023 FINANCIAL RESULTS 15
Slide 16: Strong Blockbuster Pipeline Continues into 2023
E X P E C T E D 2 0 2 3 S L A T E – M A Y O N W A R D Strong Blockbuster Pipeline Continues into 2023 M A Y M A Y J U N E J U N E J U N E J U N E J U L Y J U L Y A U G U S T A U G U S T O C T O B E R N O V E M B E R D E C E M B E R D E C E M B E R Untitled Wonka Exorcist P A R T T W O Q1 2023 FINANC
Slide 17: 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 M A R C H M A R C H M A R C H M A R C H M A Y M A Y MADAME THE FALL Godzilla x Kong: The WEBB GUY New Empire J U N E J U L Y J U L Y S E P T E M B E R O C T O B E R N O V E M B E R D E C E M B E R Mission: Impo
Slide 18: IMAX China - Revitalizing Flow of Import Content
IMAX China - Revitalizing Flow of Import Content1 Avatar: The Way of Water Ant-Man and Wasp: Shazam! Fury by the Gods Suzume Dungeons and Dragons: The Super Mario Bros. Movie Notre-Dame on Fire (Dec 16, 2022) Quantumania (March 17, 2023) (March 24, 2023) Honor Among Thieves (April 5, 2023) (April 7,
Slide 19: Local Language Growth
LOCAL LANGUAGE GROWTH • Momentum Continues: Record # of Local Language films in 2022 with record $58M in local language box office in Rest of World (~75% above previous high) LOCAL LANGUAGE TITLE GROWTH • Local Blockbusters coming to IMAX: IMAX released highest-grossing films in China, Japan, Korea
Slide 20: IMAX 1.0 to 3.0 Evolution
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 Q1 2023 FINANCIAL RESULTS
Slide 21: Next Generation Technology Initiatives
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 22: 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 23: Financial Review
Financial Review Natasha Fernandes Chief Financial Officer
Slide 24: Q1 Financial Performance
Q1 FINANCIAL PERFORMANCE $ IN MILLIONS Q1 Q1 except per diluted share data and system data 2023 2022 Q1 2023 HIGHLIGHTS Global Box Office $273.4 $173.2 Global Commercial Network 1,631 1,606 Revenue $86.9 $60.0 IMAX GBO 28 System Gross Margin ($) $50.1 $31.8 up 58% Signings Gross Profit Margin (%) 58
Slide 25: Other Items
OTHER ITEMS ITEMS FINANCIAL IMPACT Q1 2023 $ IN MILLIONS, EXCEPT EPS DATA Executive Transition Costs Net Income (Loss)(1) $(1.4) Executive Transition Costs EPS(1) $(0.02) Acquisition-related Expenses Net Income (Loss)(1) $ (0.2) Acquisition-related Expenses EPS(1) $ (0.00) Deferred Tax Asset - Valua
Slide 26: Systems Network Growth Drivers and Backlog
SYSTEMS NETWORK GROWTH DRIVERS BACKLOG PIPELINE Q1 2023 FULL YEAR 2022 468 450 17 TOTAL TOTAL TOTAL TOTAL 17 SIGNINGS INSTALLATIONS SIGNINGS INSTALLATIONS 71 Other Upgrades 72 JV Upgrades Sales and STL 14 7 18 28 JV Hybrid JRSA 109 Hybrid STL 0 0 3 6 96 Sales/Sales Type Lease JV’s 13 0 9 22 114 116
Slide 27: Operating Cash Flow, Debt Maturity, Liquidity and Leverage
O P E R AT I N G CAS H FLOW ($ IN T H O U SAND S) D E BT M AT UR I T Y L A D D E R ( $ I N M I L L I O N S ) $30,000 $250 $20,000 $200 $10,000 $17,321 $21,218 $150 $6,065 $- $231 $100 $(10,000) $(23,011) $50 $(20,000) $2 $1 $21 $(30,000) $- $15 2020 2021 2022 Q1 2023 2023 2024 2025 2026 2027 CASH &
Slide 28: 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 % Rep urchased (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 29: Attractive Cash Flow Model
ATTRACTIVE CASH FLOW MODEL – MAJORITY OF CAPEX WILL BE GROWTH RELATED $25,000 $21,218 $20,000 $19,094 $16,937 $15,000 $10,000 $5,000 $1,760 $2,157 $364 $- Q1 Operating PP&E Investment FCF Before Investments In Q1 Free Cash Flow in Software Growth JRSA Lease Cash Flow Intangibles Investment Equipment
Slide 30: Appendix
A P P E N D I X Q1 2023 FINANCIAL RESULTS
Slide 31: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES In this earnings presentation, the Company presents adjusted net income operating performance on a comparable basis between periods without the attributable to common shareholders and adjusted net income attributable to after-tax impact of share-based compensation
Slide 32: Use of Non-GAAP Financial Measures
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 flow
Slide 33: Primary Reporting Groups
PRIMARY REPORTING GROUPS The Company has the following reportable segments: the criteria to be considered a reportable segment are reported within All Other. Prior period comparatives have been revised to conform with the (i) Content Solutions, which principally includes the digital remastering of f
Slide 34: Q1 2023 Non-GAAP Reconciliation - Adjusted Net Income
Q1 2023 NON-GAAP FINANCIAL RECONCILIATION — ADJUSTED NET INCOME 3 MONTHS ENDED MARCH 31, 2023 3 MONTHS ENDED MARCH 31, 2022 $ IN THOUSANDS, EXCEPT EPS DATA Net Income Per Share Net Loss Per Share Net Income (Loss) Attributable to Common Shareholders $ 2,454 $ 0.04 $ (13,609) $ (0.23) Adjustments: Sh
Slide 35: Q1 2023 Non-GAAP Reconciliation - Adjusted EBITDA
Q1 2023 NON-GAAP FINANCIAL RECONCILIATION — ADJ. EBITDA 3 MONTHS ENDED MARCH 31, 2023 3 MONTHS ENDED MARCH 31, 2022 Attributable to Less: Attributable to Non- Less: Attributable to Attributable to $ IN THOUSANDS Non-Controlling Interests & Attributable to Non- Controlling Interests & Attributable to
Slide 36: Non-GAAP Reconciliation - Free Cash Flow
NON-GAAP FINANCIAL RECONCILIATION — FREE CASH FLOW 3 MONTHS ENDED MARCH 31,2023 $ IN THOUSANDS Net Cash Provided by Operating Activities $ 21,218 Net Cash Used in Capital Expenditures (4,281) Free Cash Flow $ 16,937 Q1 2023 FINANCIAL RESULTS 36