Imax China Holding Inc · HKEX:1970
Imax China — Investor Presentation (March 2023)
27 slides from Imax China's investor presentation, March 2023
Slide 1: IMAX China (1970 HK) Investor Presentation
IMAX China (1970 HK) Investor Presentation March 2023 ® 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: IMAX China is Uniquely Positioned to Benefit in the Post-Pandemic Theatrical Space
IMAX China is Uniquely Positioned to Benefit in the Post-Pandemic Theatrical Space UNIQUE PREMIUM POSITIONING Content Creation Content Exhibition Content Consumption TECHNOLOGY EXPERIENCE ‘Filmed in IMAX’ More Premium Audiences Empowers Blockbuster Translate into Higher IMAX Filmmaking Indexing BRAN
Slide 6: Chinese Film Market Sees Room for Long-term Growth From Both Demand and Supply Perspective
Chinese Film Market Sees Room for Long-term Growth From Both Demand and Supply Perspective Movie admission per capita No. of cinema screen per 100,000 population 2020-2022 Impact from COVID 2020-2022 Impact from COVID Highlights from the 14th Five-Year Development Plan(1) Highlights from the 14th Fi
Slide 7: Ecosystem, Business Model, Investment Thesis, Financials
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 7
Slide 8: Our Business Model - Diversifying Monetization
Our Business Model - Diversifying Monetization IMAX China business model 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 exhibi
Slide 9: 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 29.3% 41.7% 39.2% 41.3% 48.3% 49.8% 48.2% 18.2% 36.2% 17.7% 11.0% 23.8% 13.3% 22.8% 71% 40.6% 40.6% 42.6% 36.9% 34.9% 34.5% 29.0% (2) FY2016 FY2017 FY2018
Slide 10: Ecosystem, Business Model, Investment Thesis, Financials
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 10 10
Slide 11: Covid Easing and Recovery in Content Supply Drives Sharp Turnaround
Covid Easing and Recovery in Content Supply Drives Sharp Turnaround Major easing of Covid restrictions Recovery in content supply Strong consumer demand for IMAX Chinese New Year industry box office grew by a healthy Return of Hollywood blockbusters highlighted 12% year-over-year to RMB6.8 billion–
Slide 12: Staying at the Forefront of China's Premiumization
Staying at the Forefront of China’s Premiumization IMAX China Box Office Average Opening Weekend Indexing(1) Key Strategic Priorities In Local Language and Hollywood Titles 20.0% 18.0% 17.2% 16.0% Expand box office 13.7% 14.0% market share, in 12.0% 10.7% particular local 10.0% 10.0% language 8.0% 6
Slide 13: 'Blockbusterization' in Content Consumption Drives Higher IMAX Indexing
‘Blockbusterization’ in Content Consumption Drives Higher IMAX Indexing IMAX China Box Office Market Share and Indexing(1) Average IMAX Opening Weekend Indexing of Major Hollywood Tentpoles in 2021/22 in Hollywood Titles 20.0% 18.0% 17.2% 16.0% 14.0% 13.7% 12.0% 10.7% 10.0% 9.8% 10.0% 8.8% 8.6% 8.0%
Slide 14: IMAX DNA Empowers Blockbuster Filmmaking
IMAX DNA Empowers Blockbuster Filmmaking IMAX DNA box office contribution (2022) Filmed-for-IMAX releases consistently top the chart As % of IMAX China box office 31% Watergate Bridge (2022) The Battle at Lake Changjin (2021) The Eight Hundred (2020) As % of industry box office 20% • IMAX expanded a
Slide 15: IMAX Accounts for Eight of The Top Ten Highest-Grossing Titles in China's Film History
IMAX Accounts for Eight of The Top Ten Highest-Grossing Titles in China’s Film History #1 The Battle at Lake Changjin #4 Nezha #5 The Wandering Earth #6 Detective Chinatown 3 (RMB5.8bn GBO) (RMB5.0bn GBO) (RMB4.7bn GBO) (RMB4.5bn GBO) #7 Full River Red #8 Avengers Endgame #9 Water Gate Bridge #10 Th
Slide 16: Further Deepening Our Involvement in the Chinese Entertainment Industry
Further Deepening Our Involvement in the Chinese Entertainment Industry Director Lu Yang (A Writer’s Odyssey) and Director of Cinematography Cao Yu (The Eight Hundred) at IMAX No Time To Die screening Local talents increasingly embrace IMAX technology to differentiate and create big-budget franchise
Slide 17: Low Hanging Fruit Opportunity in Local Language Programming
Low Hanging Fruit Opportunity in Local Language Programming 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 16.2% 16.3% 15.1% 33.6% 38.0% 37.5% 3
Slide 18: Strong Pipeline of Blockbuster Releases (2023)
Strong Pipeline of Blockbuster Releases (2023) Guardians Transformers: Shazam! Fury of the Fast & Rise of the Indiana Jones of the Gods Galaxy Furious 10 July 2023 March 2023 May 2023 Beasts Vol.3 June 2023 May 2023 Captain Aquaman Mission Dune Part II and the Lost Oppenheimer Marvel 2: July 2023 Im
Slide 19: Promising Pipeline of Potential Local Language Titles
Promising Pipeline of Potential Local Language Titles Post Truth Born to Fly Creation of Gods: I Outcast (March 10, 2023) (April 28, 2023) (TBD) (TBD) = indicates IMAX DNA Multiple blockbuster caliber potential local language titles Investor Presentation 19
Slide 20: IMAX with Laser and Expanding Filmed-for-IMAX Content Portfolio
IMAX with Laser and Expanding Filmed-for-IMAX Content Portfolio Further Differentiates IMAX China Offering IMAX Greater China Theater Footprint Greater China Backlog Mix2 IMAX zones: approximately 1,400 1 Backlog Full revenue sharing Hybrid revenue sharing Sales arrangement 204 401 112 281 As of Dec
Slide 21: Industry Consolidation an Opportunity, Not a Risk
Industry Consolidation an Opportunity, Not a Risk IMAX China Theater Penetration in Top 500 Complexes IMAX China FY22 GBO by Multiplex Cohort 80% 76% 75% 5% Top 5% 69% 4% Top 6-10% 70% 66% 64% 66% 65% 64% 62% 62% 7% Top 11-15% 59% 59% Top 16-20% 60% 56% 54% 53% Below top 20% 50% 49% 40% 30% 22% 62%
Slide 22: Expanding the IMAX Experience Beyond Theatrical
Expanding the IMAX Experience Beyond Theatrical Studios & TVs, projectors and streaming services cellphones Content Devices Streaming Unleash the power of IMAX beyond theatres IMAX Enhanced partners with leading domestic TV, smartphone manufacturers and major streaming platforms Note: China domestic
Slide 23: Ecosystem, Business Model, Investment Thesis, Financials
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 23 23
Slide 24: Unique Asset-Light Business Model Positions Us Well for Meaningful Financials Recovery
Unique Asset-Light Business Model Positions Us Well for Meaningful Financials Recovery as Business Normalizes Financial Strength Strong Momentum in Business Recovery ❑ Asset-light business model ❑ Record-breaking Chinese New Year box office, up 54% year- over-year ❑ High operating leverage and incre
Slide 25: Financial Summary (FY2022 vs. FY2021)
Financial Summary (FY2022 vs. FY2021) Key Financial Highlights FY2022 FY2021 (in USD 000, unless otherwise stated) Greater China Box Office1 162,672 239,454 Theatre Network (in unit) 794 783 Total Revenue 73,330 112,801 - Technology Network Business 25,307 39,373 Take-rate2 15.6% 16.4% - Technology
Slide 26: Long-term Shareholder Value Creation
Long-term Shareholder Value Creation Capital returned to shareholders Capex trend (in USD mn) (in USD mn) 29% 33.3 21% 16% 27.6 26.7 $24.8 12% $24.3 9% 14.1 7% $19.3 15.4 16.6 21.5 12.5 $24.6 $24.1 $9.0 19.2 $19.1 $7.6 13.9 9.5 $4.7 10.1 $8.7 6.1 $7.3 3.0 $4.6 1.5 FY2018 FY2019 FY2020 FY2021 FY2022
Slide 27: Investor Presentation
Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 27
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