Imax China Holding Inc · HKEX:1970
Imax China — FY2020 Earnings Presentation
19 slides from Imax China's earnings presentation, Mar 5, 2021
Slide 1: IMAX China Full-Year 2020 Financial Results
IMAX China Full-Year 2020 Financial Results March 5, 2021 ® 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: Why IMAX China is Well-Positioned in a Post-Pandemic Theatrical Industry
Why IMAX China is Well-Positioned in a Post-Pandemic Theatrical Industry Demonstrated Demand IMAX Beyond COVID Upon Reopening Accelerating Structural Tailwinds Differentiated positioning ❑ Box office market share gain to 3.6% in 2H20, ❑ “Blockbusterization” effect in content ❑ China’s largest premiu
Slide 4: IMAX China Leads Industry Recovery Despite Capacity Constraint and Temporary Delay in Hollywood Slate
IMAX China Leads Industry Recovery Despite Capacity Constraint(1) and Temporary Delay in Hollywood Slate IMAX China Admission/ Box Office IMAX China Local Language Box Office Market Share as % of 2H 2019 Level (2) 90% 3.0% 2.7% 79% 77% 80% 2.5% 70% 59% 61% 2.0% 60% 2.0% 1.8% 50% 1.6% 1.5% 40% 30% 1.
Slide 5: Theatrical Business Increasingly Centered Around Blockbusters
Theatrical Business Increasingly Centered Around Blockbusters IMAX titles that surpassed a RMB1 billion box office milestone Total box office of top five grossing movies since theatre reopening 30,000 (in RMB millions) 60% 47% 50% 25,000 40% 20,000 31% 25% 25% 30% Detective Chinatown 3 (Feb 2021) Th
Slide 6: Higher Indexing as Local Content Gravitates towards IMAX Genres with Rising Production Value
Higher Indexing as Local Content Gravitates towards IMAX Genres with Rising Production Value Detective Chinatown 3 (Feb 2021) The Eight Hundred (Aug 2020) ▪ Filmed with IMAX cameras ▪ Filmed with IMAX cameras ▪ 5th highest-grossing title in China film history ▪ 11th highest-grossing movie in China f
Slide 7: Early Success in Local Language Programming Drives Market Share Gain
Early Success in Local Language Programming Drives Market Share Gain IMAX Box Office Market Share IMAX China National Holiday(1) Box Office & Market Share 140 3.5% 3.2% 8.0% 128 7.3% 6.8% 7.0% 120 3.0% 7.0% 104 6.0% 5.8% 100 2.5% 2.2% 2.4% 2.1% 5.0% 80 1.9% 2.1% 2.0% 4.0% 60 1.7% 58 1.5% 3.0% 2.7% 4
Slide 8: Strong Film Slate Empowered with IMAX DNA
Strong Film Slate Empowered with IMAX DNA (as of March 5, 2021) SHANG-CHI GODZILLA FAST & Black Top Gun: and the Legend VS. KONG FURIOUS 9 Widow Maverick of the Ten March 2021 May 2021 May 2021 July 2021 Rings July 2021 No Time to SPIDER- THE MISSION Dune MAN: No Oct 2021 Die ETERNALS IMPOSSIBLE: 7
Slide 9: Proven Opportunity to Gain Market Share in Local Language Titles
Proven Opportunity to Gain Market Share in Local Language Titles The Eight Hundred (Aug 2020) Legend of Deification (Oct 2020) Shockwave 2 (Dec 2020) Detective Chinatown 3 (Feb 2021) A Writer’s Odyssey (Feb 2021) • First local-language title shot • Best 4-day IMAX opening • 6th highest-grossing loca
Slide 10: Promising Pipeline of Potential Local Language Titles
Promising Pipeline of Potential Local Language Titles Mozart From Creation of the The Battle at Lake Space (1) Changjin Chinese Doctors Gods I (2) (1): Filmed in IMAX (2): First installment of Fengshen Trilogy Note: Release schedule in China to be determined. Multiple blockbuster caliber potential l
Slide 11: Continued Network and Partnership Expansion
Continued Network and Partnership Expansion IMAX Greater China theatre footprint Greater China Backlog Mix2 Backlog Full revenue sharing Hybrid revenue sharing Sales arrangement IMAX zones: approximately 1,400 1 251 376 106 263 As of Dec 31, 2020 Note 1: As of Dec 31, 2020 Note 2: As of Dec 31, 2020
Slide 12: Industry Consolidation an Opportunity, Not a Risk
Industry Consolidation an Opportunity, Not a Risk IMAX China Theatre Penetration in Top 500 Complexes 80% IMAX China 2020(1) GBO by Multiplex Cohort 72% 70% 68% 5% 64% 62% 65% Top 5% 62% 3% Top 6-10% 60% 59% Top 11-15% 53% 54% 9% Top 16-20% 50% 49% Below top 20% 40% 30% 20% 21% 61% 10% 0% Top 25 Top
Slide 13: Strong Financial Position and Unique Business Model Drives Quick Profitability Turnaround
Strong Financial Position and Unique Business Model Drives Quick Profitability Turnaround Strong fundamentals Increase shareholder value ❑ Asset-light business model provides financial flexibility ❑ 2H20 total revenue of US$45.6 million, vs. US$6.7 million in 1H20 ❑ Strong balance sheet with US$88.5
Slide 14: Segment Details: Technology Network
Segment Details: Technology Network FY20 vs. FY19 2H20 vs. 1H20 Revenue sharing arrangements – contingent rent Revenue sharing arrangements – contingent rent Film Revenue Film Revenue $ in Millions $ in Millions (71.3%) $52.9 $14.1 $24.8 (69.9%) $7.0 $15.2 $28.1 (72.6%) $7.0 $7.5 $1.1 $7.7 $0.4 $0.7
Slide 15: Segment Details: Technology Sales & Maintenance
Segment Details: Technology Sales & Maintenance FY20 vs. FY19 2H20 vs. 1H20 Others Others Theatre system maintenance Theatre system maintenance Revenue sharing arrangements – upfront fees Revenue sharing arrangements – upfront fees Sales & Sales-type lease arrangements Sales & Sales-type lease arran
Slide 16: Network Update
Network Update Backlog Signings and Installations JV upgrade 253 251 Sales upgrade FY2020 1 8 Full Revenue Sharing 5 Hybrid Revenue Sharing Total Signings Total Installations 58 42 Sales / Sales Type Lease Sales and STL 20 15 Revenue Sharing Arrangements Hybrid 1 3 114 124 JV 0 18 Upgrades 17(1) 3(2
Slide 17: FY2020 Financial Summary
FY2020 Financial Summary $ in Millions Revenue Operating Expenses1 Adjusted EBITDA Adjusted Net Income 2 $68.8 $124.3 $25.8 $44.6 $21.3 $0.5 $10.9 $71.0 $6.5 $52.3 $3.9 $36.9 $14.3 $7.8 $52.9 $11.0 $15.2 FY19 F20 ($4.6) FY19 FY20 FY19 FY20 FY19 FY20 New Business Initiatives & Others Provisions on re
Slide 18: Capex Breakdown
Capex Breakdown Annual capex* trend Semi-annual capex* trend Capex as % of revenue Maintenance capex = purchase of property, plant & equipment Growth capex = investment in joint-revenue sharing equipment $ in Millions 28.7% 20.6% 15.6% $18.2 $24.8 $0.2 $24.3 9.0% $0.2 $0.2 $13.6 $19.3 $0.1 $0.2 $18.
Slide 19: Full-Year 2020 Financial Results
Full-Year 2020 Financial Results IMAX® is a registered trademark of IMAX Corporation. 19