Slide 1: 2016 Third Quarter
2016 Third Quarter As at September 30, 2016 Contact/Inquiries: Pat Marshall, Vice President, Communications and Investor Relations T: 416.323.6648 • E: Pat.Marshall@cineplex.com
Slide 2: Box Office Market Share
Box Office Market Share CINEPLEX BOX OFFICE MARKET SHARE ENTERTAINMENT AS AT SEPTEMBER 30, 2016 IS THE LARGEST AND MOST SUCCESSFUL MOTION PICTURE Landmark, 10.0% EXHIBITION COMPANY IN CANADA Cineplex Entertainment 77.5% Other, 10.6% 164 1,677 Guzzo, 1.9% THEATRES SCREENS Source: Rentrak © Cineplex E
Slide 3: Box Office Per Patron (BPP)
Box Office Per Patron (BPP) $9.23 $8.97 $9.15 $9.13 $8.67 $8.74 $8.30 $7.99 $7.99 $8.05 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Box Office Premium Offerings © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 3
Slide 4: More than Theatre Exhibition
More than Food Alternative Theatre Exhibition Service Programming Theatre Digital Exhibition Commerce Film Entertainment and Content Player One Amusement SCENE Group* Amusement Gaming Media Cineplex eSports and Leisure Media The Rec Cineplex Room Digital Media *Formerly known as Cineplex Starburst I
Slide 5: Corporate Strategy
Corporate Strategy • Continue to enhance and expand our existing infrastructure and service offerings • Continue to expand our presence as an entertainment destination for Canadians in-theatre, at-home and on-the-go • Capitalize on our core media strengths • Develop and scale gaming-related amusemen
Slide 6: Film Entertainment and Content
Film Entertainment and Content Theatre Exhibition • Theatre Food Service • Alternative Programming • Digital Commerce © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 6
Slide 7: Premium Experiences Accounted for 46.5% of Box Office Revenue
Theatre Exhibition LUXURIOUS PREMIUM EXPERIENCES ACCOUNTED FOR 46.5% OF BOX OFFICE REVENUE FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 7
Slide 8: UltraAVX
UltraAVX® • Wall to wall screens • Dolby ATMOS surround sound • Reserved seating • Extra-wide high back, rocker seats • Premium pricing • 85 auditoriums (as at September 30, 2016) 85 AUDITORIUMS 5% OF SCREENS 14.6% OF BOX OFFICE © Cineplex Entertainment. Not to be distributed, reproduced or used wit
Slide 9: IMAX 3D
IMAX • All locations are digital and 3D capable • Premium pricing • Reserved seating • 23 IMAX Theatres (as at September 30, 2016) 23 THEATRES 3D CAPABLE © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 9
Slide 10: D-BOX
D-BOX • Unique out-of-home experience • Seats move in synchronization with the action on screen • Premium pricing • Reserved seating • 68 locations (as at September 30, 2016) 68 LOCATIONS © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 10
Slide 11: VIP Cinemas
VIP Cinemas • Enhanced food and beverage menu • Adult-only licensed auditoriums • Reserved recliner seats • Service at your seat • Private licensed lounge and box office • Premium pricing • 17 locations and 63 screens (as at September 30, 2016) LUXURIOUS GREAT EXCEPTIONAL SEATS FOOD SERVICE © Cinepl
Slide 12: New Builds and VIP Expansions
New Builds and VIP Expansions 2015 2016 2017 Scotiabank Theatre Cineplex Cinemas Cineplex Cinemas Saskatoon and VIP Marine Gateway and VIP Pickering and VIP (Saskatoon, SK) (Vancouver, BC) (Pickering, ON) Cineplex Cinemas Cineplex Cinemas Cineplex Cinemas Lansdowne and VIP North Barrie Seton and VIP
Slide 13: Theatre Food Service
Theatre Food Service • Focus on speed of service $418 Million REVENUE 2015 • • Premium promotional programs Digital menu boards • Proprietary brands © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 13
Slide 14: Concession Per Patron (CPP)
Concession Per Patron (CPP) $5.43 $5.09 $4.82 $4.63 $4.41 $4.27 $4.12 $3.84 $3.96 $3.72 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 14
Slide 15: Outtakes Locations Nationwide
Outtakes 96 Locations Nationwide AS AT SEPTEMBER 30, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 15
Slide 16: YoYo's
YoYo’s • Self-serve frozen yogurt • Will replace all Cineplex yogurt RBOs • 95 locations at September 2016 95 Locations Nationwide AS AT SEPTEMBER 30, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 16
Slide 17: Poptopia
Poptopia • Selection of specialty gourmet popcorn 23 Locations Nationwide AS AT SEPTEMBER 30, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 17
Slide 18: Alternative Programming
Alternative Programming CINEPLEX EVENTS • The Met: Live in HD • Family Favourites • Classic Film Series • Flashback Film Festival • National Theatre Live • Sensory Friendly Screenings • World Wrestling Entertainment • Concerts, Broadway shows and special events INTERNATIONAL FILM PROGRAMMING • South
Slide 19: Digital Commerce - Cineplex Anywhere
Digital Commerce - Cineplex Anywhere In-Theatre At-Home On-The-Go © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 19
Slide 20: Cineplex.com and Mobile App
Cineplex.com and Mobile App IMPROVING THE GUEST EXPERIENCE • Provides entertainment content before the show • Mobile ticketing - no lines CINEPLEX.COM CINEPLEX MOBILE • 105 million site visits in 2015 • One of Canada’s most popular mobile brands • 530 million page views in 2015 • Downloaded 14.9 mil
Slide 21: Cineplex Store
Cineplex Store • Premiere destination for Canadians to buy or rent digital movies • Available on Xbox One and Xbox 360, Roku, Samsung, LG, PC/Mac, iOS and Android mobile/tablet devices, Chromecast • 7,000 titles available for on- demand streaming or download for offline viewing • Fully integrated wi
Slide 22: SuperTicket
SuperTicket • First bundled offering from multiple studios • Purchase movie ticket and pre-order digital download at the same time • Lowest retail price of $19.99 includes 500 bonus SCENE points • Movies available for earliest possible home entertainment release date • Now available for essentially
Slide 23: SCENE – Loyalty Program
SCENE – Loyalty Program • Canada’s top loyalty program for movie 7.9 lovers 7.3 • Members are represented in 33% of 6.3 Canadian households 5.3 • One of top five loyalty programs in 4.3 Canada 3.3 • One in five Canadians are SCENE 2.7 members 2.1 1.4 0.6 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 24: SCENE – Extra Benefits
SCENE – Extra Benefits COMPETITIVE ADVANTAGE • Drives attendance frequency • Encourages concession spend • Better target offers to guests • Cineplex Store – Build awareness / promote trial • Great opportunity for film studios and promotional partners © Cineplex Entertainment. Not to be distributed,
Slide 25: Media
Media Cineplex Media • Cineplex Digital Media © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 25
Slide 26: Cineplex Media
Pre-Show Cineplex Media TimsTV Show time Concourse Digital Network Signage Shopping ONroute Centres Magazines Special Media Cineplex Mobile Cineplex.com © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 26
Slide 27: Cineplex Media
Cineplex Media • On-screen advertising – show time, Pre-Show, and TimePlay Yukon 94% • Cineplex Magazine and Le magazine Cineplex • Cineplex Magazine is the #2 most read magazine in Canada and #1 most read magazine in Canada for all demographics under 50 years old B.C. 96% • Cineplex.com and Cineple
Slide 28: Cineplex Media
Cineplex Media 88% 84% 70% 61% 59% 46% 39% 40% 15% Advertising Correct Brand Ad Entertainment Awareness Association TV (USA) Cinema Pre-Show Cinema Show Time SOURCES: *A Comprehensive Picture of Digital Video and TV Advertising, IAB with Nielsen data 2012; **Cinema Advertising Show-Time Impact Study
Slide 29: Cineplex Presents TimePlay
Cineplex Presents TimePlay Overwhelming Results 730 56 SCREENS THEATRES FOR ADVERTISERS NATIONWIDE NATIONWIDE (as at September 30, (as at September 30, 2016) 2016) © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 29
Slide 30: Interactive Media Zones (IMZs)
Interactive Media Zones (IMZs) • Touch Engaging • 46 IMZs Gesture • Image Capture Interactive AS AT SEPTEMBER 30, 2016 • • Content Manipulation Social Media Connectivity ADVERTISING EXPERIENCE • Data Capture © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 30
Slide 31: Digital Poster Cases
Digital Poster Cases • 3 minute loop keeps content upbeat and timely 447 screens in Dynamic Screens • 84” fully HD digital backlits 138 locations BRING CAMPAIGNS TO LIFE • Roll-out now complete across circuit AS AT SEPTEMBER 30, 2016 © Cineplex Entertainment. Not to be distributed, reproduced or use
Slide 32: Integrated Media Campaigns
Integrated Media Campaigns © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 32
Slide 33: Cineplex Digital Media
Cineplex Digital Media Path to Purchase • Point of Purchase © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 33
Slide 34: Path to Purchase
Path to Purchase • Full-service, digital place-based ecosystems • Experiential technologies on the “path to purchase” • Award-winning digital signage company • We design, install, maintain and operate networks for the retail, financial, hospitality and entertainment industries © Cineplex Entertainme
Slide 35: Oxford Properties
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" © Cineplex Entertainment. Not to be distributed, reproduced o
Slide 36: Ivanhoe Cambridge
Ivanhoe Cambridge • Signed agreement to install, maintain and operate digital display network • Nearly 230 digital displays in 21 shopping centres across Canada • Engaging shopper experiences • A network of floor and wall media displays, interactive digital media posters and digital spectacular scre
Slide 37: Point of Purchase
Point of Purchase RETAIL QUICK SERVICE FINANCIAL RESTAURANTS • Market-leading digital signage company • Designs, installs, manages and consults on some of the largest digital merchandising networks in • Largest digital networks in Canada North America • Proprietary technology © Cineplex Entertainmen
Slide 38: Quick Service Restaurants
Quick Service Restaurants © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 38
Slide 39: TimsTV
TimsTV MORE THAN 2,200 TIM HORTONS LOCATIONS ACROSS CANADA One of the largest digital signage networks in Canadian retail © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 39
Slide 40: Financial
Financial © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 40
Slide 41: Retail
Retail © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 41
Slide 42: Amusement Gaming and Leisure
Amusement Gaming and Leisure Player One Amusement Group (formerly Cineplex Starburst Inc. • eSports • The Rec Room © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 42
Slide 43: Player One Amusement Group
Player One Amusement Group (formerly Cineplex Starburst Inc.) Largest Amusement Gaming Company in Canada With a Growing Presence in the US • Wholly owned and operated • Supplies arcade equipment to Cineplex theatres, other circuits and numerous entertainment venues • Owns and operates Family Enterta
Slide 44: Player One Amusement Group
Player One Amusement Group • Largest distributor and operator of arcade games in Canada and second largest distributor in the USA • Well-positioned for future growth in this resurging business • Route business – we provide the equipment and share the revenue with a third party operator such as theme
Slide 45: Family Entertainment Centres (FECs)
Family Entertainment Centres (FECs) Playdium Mississauga • 5 other FECs • Player One Amusement Group owns 6 self-operating FECs across Canada • 24 co-operated licensed locations 24 XSCAPE Entertainment Centres in Cineplex theatres © Cineplex Entertainment. Not to be distributed, reproduced or used w
Slide 46: XSCAPE Entertainment Centres
XSCAPE Entertainment Centres An entertainment concept in Cineplex 24 Locations Nationwide theatres featuring the latest video and AS AT SEPTEMBER 30, 2016 interactive games along with a redemption centre © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 46
Slide 47: eSports
eSports • In 2015, Cineplex entered the world of eSports • Cineplex and WorldGaming Network LP (“WGN”) are creating a community that connects live online gaming with unique in-theatre gaming experiences • Leagues, gaming ladders and tournaments for the competitive gaming community • WGN hosted its f
Slide 48: eSports
eSports © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 48
Slide 49: The Rec Room - Now Open
The Rec Room NOW OPEN • The Rec Room at South Edmonton Common • 60,000 square feet • incredible dining experiences with exciting live entertainment and amusement gaming experiences © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 49
Slide 50: Coming Soon
COMING SOON • 40,000 – 60,000 sq. ft. • Toronto Roundhouse (Q1, 2017) • Deerfoot Crossing Calgary (Q2, 2017) • 10-15 locations © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 50
Slide 51: The Rec Room
The Rec Room The first location of The Rec Room at South Edmonton Common opened its doors on September 19, 2016. The Rec Room features a wide range of entertainment options: • A large attractions area with amusement games and interactive attractions alongside recreational activities like pool and pi
Slide 52: Acquisitions
Acquisitions EK3 – Acquired August 2013 Empire Theatres – Acquired October 2013 Brady Starburst – Acquired March 2015 WorldGaming – Acquired September 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 52
Slide 53: Financial Highlights
Financial Highlights © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 53
Slide 54: Total Revenue
TOTAL REVENUE $ MILLIONS $1,371 $1,235 $1,171 $1,092 $1,006 $998 $964 $850 $805 $740 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 54
Slide 55: Adjusted EBITDA
ADJUSTED EBITDA $ MILLIONS $250 $200 $202 $201 $173 $168 $160 $137 $141 $118 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 55
Slide 56: Box Office Revenue
BOX OFFICE REVENUE $ MILLIONS $711 $665 $673 $638 $598 $581 $577 $511 $489 $459 77.0 72.7 73.6 70.0 71.2 69.0 66.1 63.5 61.1 57.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Attendance (Millions) © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 56
Slide 57: Food Service Revenue
FOOD SERVICE REVENUE $ MILLIONS $418 $375 $350 $329 $288 $295 $292 $252 $235 $5.43 $214 $5.09 $4.82 $4.63 $4.41 $4.27 $4.12 $3.96 $3.84 $3.72 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Concession Per Patron (CPP) © Cineplex Entertainment. Not to be distributed, reproduced or used without perm
Slide 58: Media Revenue
MEDIA REVENUE $ MILLIONS $154 $134 $110 $91 $84 $82 $67 $61 $56 $47 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Media Revenue Digital Media Revenue © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 58
Slide 59: Other Revenue
OTHER REVENUE $ MILLIONS $88 $53 $46 $41 $38 $32 $28 $25 $26 $21 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 59
Slide 60: Total Revenue Per Patron
TOTAL REVENUE PER PATRON $17.80 $16.77 $16.11 $15.11 $15.34 $14.59 $13.78 $13.17 $13.38 $12.89 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Box Office Per Patron (BPP) Concessions Per Patron (CPP) Media Per Patron Other Per Patron © Cineplex Entertainment. Not to be distributed, reproduced or u
Slide 61: 2016 Q3 Results
2016 Q3 RESULTS MILLIONS, EXCEPT ADJUSTED EBITDA MARGIN AND PER PATRON AMOUNTS Q3 2016 Q3 2015 % Box Office $180.1 $172.6 4.4% Food Service $109.6 $105.5 3.9% Media $44.8 $34.3 30.7% Other $41.4 $15.9 160.2% Total Revenue $376.0 $328.2 14.5% Adjusted EBITDA $67.3 $59.1 13.8% Adjusted EBITDA Margin 1
Slide 62: Payout Ratio and Dividends
112% PAYOUT RATIO DIVIDENDS $1.54 $1.48 $1.41 $1.33 $1.28 $1.24 $1.26 $1.26 80% $1.15 $1.15 $1.18 69% 67% 65% 64% 64% 59% 62% 56% 57% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Corporate Conversion Jan. 1, 2011 © Cineplex Entertainme
Slide 63: Credit Facilities and Covenant Leverage Ratio
CREDIT FACILITIES (MILLIONS) Maturity Capacity Drawn Reserved Remaining (as at September (as at September 30/16) 30/16) Term Facility Apr. 2021 $150 $150 — — Revolving Facility Apr. 2021 $400 $185 $6.2 $208.8 Total $550 $335 $6.2 $208.8 2.89 COVENANT LEVERAGE RATIO 2.39 1.94 1.88 1.64 1.58 1.27 1.35
Slide 64: Outstanding Shareholder Return
Outstanding Shareholder Return * As of September 30, 2016 $60 $50 $40 $30 $20 $10 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 64
Slide 65: Non-GAAP Financial Measures
Management of Cineplex uses certain non-GAAP financial measures to evaluate performance. These Non-GAAP 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 financial measures,
Slide 66: Thank You!
Thank You!