Imax China Holding Inc · HKEX:1970
Imax China — Investor Presentation (August 2022)
29 slides from Imax China's investor presentation, August 2022
Slide 1: IMAX China (1970 HK) Investor Presentation
IMAX China (1970 HK) Investor Presentation Aug 2022 ® 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: Agenda: 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 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 2020-2021 impacted by COVID Highlights from the 14th Five-Year Development Plan(1) Highlights from the 14th Five-Year Development Plan(1) • Maintain
Slide 7: Business Model
• 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 41.7% 39.2% 41.3% 48.3% 49.8% 48.2% 17.7% 18.2% 11.0% 23.8% 13.3% 22.8% 59% 40.6% 40.6% 42.6% 36.9% 34.9% 29.0% (2) FY2016 FY2017 FY2018 FY2019 FY2020 FY20
Slide 10: Investment Thesis
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 10 10
Slide 11: Why IMAX China is Well-Positioned in a Post-Pandemic Theatrical Industry
Why IMAX China is Well-Positioned in a Post-Pandemic Theatrical Industry Benefitting from Reopening IMAX Beyond COVID Accelerating Structural Tailwinds Differentiated positioning ❑ Close to 95% of IMAX China theaters have ❑ “Blockbusterization” effect in content ❑ China’s largest premium entertainme
Slide 12: Blockbusterization Drives Higher IMAX Indexing and Market Share: Hollywood
‘Blockbusterization’ in Content Consumption Drives Higher IMAX Indexing and Market Share across both Hollywood and Local Language IMAX China Box Office Market Share and Indexing(1) Average IMAX Opening Weekend Indexing of Major Hollywood Tentpoles in 2021/22 in Hollywood Titles 13.7% 10.7% 10.0% 8.8
Slide 13: Blockbusterization Drives Higher IMAX Indexing and Market Share: Local Language
‘Blockbusterization’ in Content Consumption Drives Higher IMAX Indexing and Market Share across both Hollywood and Local Language IMAX China Box Office Market Share and Indexing(1) Selected IMAX titles that surpassed a RMB1 billion box office milestone(3) in Local Language Titles 4.7% 4.6% 3.6% 3.2%
Slide 14: IMAX DNA Empowers Blockbuster Filmmaking
IMAX DNA Empowers Blockbuster Filmmaking IMAX DNA box office contribution Filmed-for-IMAX releases consistently top the chart 45% 41% 40% 35% 33% 30% 27% 25% 21% 20% 15% 10% 5% 0% 2020 2021 Watergate Bridge (2022) The Battle at Lake Changjin (2021) The Eight Hundred (2020) As % of IMAX box office As
Slide 15: IMAX Accounts for Eight of The Top Ten Highest-Grossing Titles in China
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 Avengers Endgame #8 Water Gate Bridge #9 Operation Red Sea #10
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: Strengthening Relationship With Local Studios and Filmmakers
Strengthening Relationship With Local Studios and Filmmakers Driving Both IMAX DNA and Local Language Box Office IMAX China Local Language Box Office 160 150 140 120 115 101 100 82 80 67 70 66 60 40 20 0 2015 2016 2017 2018 2019 2020 2021 IMAX Local Language Box Office (in USD mn) Source: Company da
Slide 18: Rising Box Office Contribution From Local Language Titles
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 16.2% 16.3% 33.6% 38.0% 37.5% 39.9% 42.
Slide 19: Strong Pipeline of Blockbuster Releases (2022-2023)
Strong Pipeline of Blockbuster Releases (2022-2023) Black Avatar 2: The Ant-man and Aquaman Fast & Panther 2: Way of the Wasp: and the Lost Wakanda Furious 10 Water Quantumania Kingdom May 2023 Forever Dec 2022 Feb 2023 March 2023 Nov 2022 Transformers: Captain Rise of the Mission Oppenheimer Marvel
Slide 20: Promising Pipeline of Potential Local Language Titles
Promising Pipeline of Potential Local Language Titles The Wandering Earth 2 Homecoming (TBD) Outcast (TBD) (CNY 2023) Multiple blockbuster caliber potential local language titles Note: Release schedule of the abovementioned titles in China to be determined. = indicates IMAX DNA Investor Presentation
Slide 21: Exhibitor Partners Continue to See the Value of IMAX to Their Business
Exhibitor Partners Continue to See the Value of IMAX to Their Business IMAX Greater China Theater Footprint Greater China Backlog Mix2 Backlog Full revenue sharing Hybrid revenue sharing Sales arrangement IMAX zones: approximately 1,400 1 208 398 112 278 As of June 30, 2022 Note 1: As of December 31
Slide 22: 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 FY21 GBO by Multiplex Cohort 80% 80% 72% 6% Top 5% 68% 3% Top 6-10% 70% 66% 64% 66% 65% 64% 62% 62% Top 11-15% 59% 9% 60% 56% 54% Top 16-20% 53% Below top 20% 50% 49% 40% 30% 20% 20%
Slide 23: 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 24: Financials
• Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 24 24
Slide 25: Strong Financial Position with Ample Liquidity and Balance Sheet Flexibility
Strong Financial Position with Ample Liquidity and Balance Sheet Flexibility Strong fundamentals Cost control actions Financial Strength ❑ Healthy, debt-free balance sheet ❑ Temporary adjustment to work week ❑ Delivered US$2.1 million adjusted net while maintaining our ability to quickly profit(1) d
Slide 26: Financial Summary (FY2021 vs. FY2020)
Financial Summary (FY2021 vs. FY2020) Key Financial Highlights FY2021 FY2020 YoY growth % (in USD 000, unless otherwise stated) Greater China Box Office1 239,454 99,249 141% Theatre Network (in unit) 783 745 5% Total Revenue 112,801 52,331 116% - Technology Network Business 39,373 15,182 159% Take-r
Slide 27: Financial Summary (1H22 vs. 1H21)
Financial Summary (1H22 vs. 1H21) Key Financial Highlights 1H22 1H21 YoY growth % (in USD 000, unless otherwise stated) Greater China Box Office1 76,328 132,828 (45%) Theatre Network (in unit) 788 759 4% Total Revenue 32,713 53,431 (39%) - Technology Network Business 11,708 21,703 (46%) Take-rate2 1
Slide 28: 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 26.7 14.1 16.6 21.5 15.5 $19.0 $14.4 $14.3 $14.0 $14.0 19.2 13.9 10.1 6.1 1.5 FY2018 FY2019 FY2020 FY2021 FY17 FY18 FY19 FY20 FY21 Dividends paid (as reflected on ca
Slide 29: Investor Presentation IMAX® is a registered trademark of IMAX Corporation.
Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 29
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