Cineplex Inc. · TSX:CGX

Cineplex — Q2 2015 Earnings Presentation

62 slides from Cineplex's earnings presentation, Jun 30, 2015

  1. Slide 1: 2015 Second Quarter

    2015 SECOND QUARTER (as of June 30, 2015) Contact: Pat Marshall Vice President, Communications and Investor Relations 416.323.6648 pat.marshall@cineplex.com 1

  2. Slide 2: Cineplex Entertainment: 162 Theatres, 1,652 Screens

    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 June 30, 2015 Entertainment Other 79% 10% Guzzo 2% 2

  3. 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

  4. 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

  5. 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

  6. Slide 6: Premium Experiences

    PREMIUM EXPERIENCES Accounted For 40% of Box Office REVENUE as of Dec 31/2015 68

  7. 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 June 30, 2015 Adding 10 auditoriums by end of 2015 77 AUDITORIUMS 5% OF SCREENS 12% OF BOX OFFICE 7

  8. Slide 8: Premium Experiences: IMAX

    Premium Experiences 22 IMAX theatres as of June 30, 2015 All locations are digital Premium pricing Reserved seating Adding 1 IMAX screen in Q3 8

  9. Slide 9: Premium Experiences: Motion Seats

    Premium Experiences Unique out-of-home experience Seats move in synchronization with the action on screen 33 locations as of June 30, 2015 Premium pricing Signed agreement for additional theatre locations in Oct/14. Balance of 15 locations to be completed by Dec 31/15 9

  10. Slide 10: Seats and Food Service

    LUXURIOUS GREAT EXCEPTIONAL SEATS FOOD SERVICE 13 10

  11. Slide 11: Enhanced Food and Beverages

    Enhanced food and beverages Premium pricing 14 locations and 53 screens (as at June 30, 2015) Adult-only auditoriums Reserved club style seats Service at your seat Private licensed lounge and box office 14 11

  12. 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

  13. Slide 13: Food Service

    Food Service Focus on speed of serving $375 Million Premium promotional programs Digital menu boards REVENUE 2014 Proprietary brands 13

  14. Slide 14: Concession Per Patron (CPP)

    Concession Per Patron (CPP) 14

  15. Slide 15: Locations Nationwide

    93 LOCATIONS NATIONWIDE At June 30, 2015 15

  16. Slide 16: Self-serve Frozen Yogurt

    Self-serve frozen yogurt 90+ First standalone location opened in Guelph, Ontario LOCATIONS BY DEC. 2016 Will replace all Cineplex yogurt RBO’s 19 16

  17. Slide 17: Locations Nationwide: Specialty Popcorn

    21 LOCATIONS NATIONWIDE Selection of specialty gourmet popcorn At June 30, 2015 17

  18. 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 Supplies arcade equipment to Cineplex theatres, other circuits and numerous entertainment venues $61 million in annual reve

  19. Slide 19: Gaming: XSCAPE Entertainment Centres

    Gaming: XSCAPE Entertainment Centres 20 LOCATIONS NATIONWIDE An entertainment concept featuring the latest video and interactive games along with a redemption centre and a full- service, licensed lounge At June 30, 2015 19

  20. Slide 20: SCENE

    SCENE 6.8 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 Q2Q1 2015 Canada’s top loyalty program for movie lovers 2015 Members are represented in 33% of Canadian households One of top five loyalty programs in Canada 1 in 6 Canadians are SCENE memb

  21. 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

  22. 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

  23. Slide 23: 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

  24. Slide 24: Cineplex Media / Cineplex Digital Media

    Cineplex Media Cineplex Digital Media 24

  25. Slide 25: Media Revenue

    Media Revenue ($millions) Digital Media Revenue 25

  26. Slide 26: 26

    26

  27. Slide 27: Cineplex Media

    Cineplex Media On-screen advertising – Show time and digital pre-show Specialty media Cineplex Magazine and Le magazine Cineplex Sponsorship and naming rights 4th most read magazine in Canada (as at June 30, 2015) Cineplex Digital Media sales Cineplex.com advertising 27

  28. Slide 28: Cineplex Media

    Cineplex Media TV Cinema Show Time Advertising Correct Brand Ad Awareness Association Entertainment SOURCE: Impact Study 2007-2013, Strategic Marketing Counsel 28

  29. Slide 29: Overwhelming Results for Advertisers

    55 THEATRES NATIONWIDE OVERWHELMING RESULTS FOR ADVERTISERS 36 29

  30. Slide 30: Digital Poster Cases

    How do you describe the opposite of beige? 30

  31. Slide 31: Engaging, Interactive Media Zone

    INTERACTIVE MEDIA ZONE (IMZ) Touch Gesture Image Capture Content Manipulation Social Media Connectivity Data Capture ENGAGING, 38 IMZs INTERACTIVE AT JUNE 30, 2015 ADVERTISING EXPERIENCE 31 31

  32. Slide 32: Integrated Media Campaigns

    Integrated Media Campaigns 40 32

  33. Slide 33: Cineplex Digital Media

    Cineplex Digital Media Path To Purchase Point of Purchase 33

  34. Slide 34: 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” 34

  35. Slide 35: 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 35

  36. Slide 36: Ivanhoe Cambridge

    Ivanhoe Cambridge 36

  37. Slide 37: 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

  38. Slide 38: Quick Service Restaurants

    Quick Service Restaurants 38

  39. Slide 39: TimsTV

    TimsTV More than 2,200 Tim Hortons locations across Canada One of the largest digital signage networks in Canadian retail 39

  40. Slide 40: Financial

    i RBC ‘ Se Royal Bank BCE

  41. Slide 41: Retail

    TO GET IN |THE GAME! WA \_ 4 Walmar ee —_— 41

  42. Slide 42: 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

  43. Slide 43: Cineplex Anywhere

    Cineplex Anywhere In-Theatre At Home On-The-Go 43

  44. Slide 44: 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 Canada’s 12th most popular mobile brand 20% increase in unique visitors (YoY) Downloaded 12.2 million times and recorded 22% increase in visi

  45. Slide 45: Cineplex Store

    Re-design significantly improved user experience Launched new digital platform Available on XBOX 360, Roku, Samsung, LG, Apple, Windows, and Chromecast Over 6,000 titles available for purchase or download The first movie on-demand service in Canada to be available on Roku Cineplex Store La Boutique

  46. Slide 46: 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 46

  47. Slide 47: 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

  48. Slide 48: Coming in 2016

    COMING IN 2016 10-15 locations by 2018 First location: South Edmonton Commons (Q1/16) 40,000 - 60,000 sq. ft. 27 48

  49. Slide 49: EK3 and Empire Acquisitions

    EK3: Acquired August 2013 Empire: Acquired October 2013 49 49

  50. Slide 50: 50

    50

  51. Slide 51: Total Revenue

    Total Revenue ($millions) 51

  52. Slide 52: Adjusted EBITDA

    Adjusted EBITDA ($millions) 52

  53. Slide 53: Box Office Revenue

    Box Office Revenue ($millions) Attendance (millions) 53

  54. Slide 54: Food Service Revenue

    Food Service Revenue ($millions) Concession Per Patron (CPP) 54

  55. Slide 55: Media Revenue

    Media Revenue ($millions) Digital Media Revenue 55

  56. Slide 56: Other Revenue

    Other Revenue ($millions) 56

  57. Slide 57: Total Revenue Per Patron

    Total Revenue Per Patron $16.77 $16.11 $15.11 $15.34 $14.59 $13.78 $12.89 $13.16 $13.38 $12.28 Box Office Per Patron (BPP) Concession Per Patron (CPP) Media Per Patron Other Per Patron 57

  58. Slide 58: Q2 2015 Results

    Q2 2015 Results Q2 2015 Q2 2014 % Box Office $186.2 $181.4 2.6% Food Service $108.4 $98.0 10.6% Media $35.0 $31.0 13.0% Other $15.9 $13.1 21.9% Total Revenue $345.5 $323.5 6.8% Adjusted EBITDA $65.3 $59.4 9.9% EBITDA Margin 18.9% 18.4% 0.5% Attendance 19.7 19.3 2.0% BPP $9.45 $9.40 0.5% CPP $5.50 $5

  59. Slide 59: Payout Ratio and Dividends

    Payout Ratio Dividends Corporate Conversion Jan. 1, 2011 59

  60. Slide 60: Credit Facilities

    Credit Facilities Maturity Capacity Drawn Reserved Remaining Term Facility Oct. 2018 $150 $150 — — Revolving Facility Oct. 2018 $250 $132 $5.4 $112.6 Total $400 $282 $5.4 $112.6 Covenant Leverage Ratio 60

  61. Slide 61: Outstanding Shareholder Return

    OUTSTANDING SHAREHOLDER RETURN $50 45 40 35 30 25 20 15 10 5 61

  62. Slide 62: 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

Cineplex — Q2 2015 Earnings Presentation on 6ix