Imax China Holding Inc · HKEX:1970
Imax China — FY2022 Earnings Presentation
20 slides from Imax China's earnings presentation, Feb 23, 2023
Slide 1: IMAX China Full-Year 2022 Financial Results
IMAX China Full-Year 2022 Financial Results Feb 23, 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: 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 4: Early Signs of Recovery Shows Growing Demand for the IMAX Experience
Early Signs of Recovery Shows Growing Demand for the IMAX Experience IMAX Chinese New Year(1) Box Office and Market Share Avatar: The Way of Water (IMAX 3D) 250 4.0% 231 - Record IMAX indexing of 22% 213 3.6% 213 3.5% - Second highest-grossing IMAX China film of all-time 3.4% 200 - IMAX accounts for
Slide 5: 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 Full-Year 2022 Financial Results 5
Slide 6: 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 7: Revitalizing Hollywood Content
Revitalizing Hollywood Content Avatar: The Way of Water Black Panther: Ant-Man and Wasp: Shazam! Fury by the Gods Dungeons and Dragons: (Dec 16, 2022) Wakanda Forever Quantumania (March 17, 2023) Honor Among Thieves (Feb 7, 2023) (Feb 17, 2023) (March 31, 2023) = indicates IMAX DNA Box office recove
Slide 8: 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 9: Well-positioned to Capitalize on a Revitalizing Hollywood Film Slate
Well-positioned to Capitalize on a Revitalizing Hollywood Film Slate IMAX China Box Office Market Share and Indexing(1) 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% 7.2% 6.6% 6.0% 5.7% 4.0% 2.0% 0.0% 2017 2018 2019 2021 2022 Market Share Average
Slide 10: Uniquely Positioned for Long-term Success
Uniquely Positioned for Long-term Success T H E O N LY E N D - TO-END TECHNOLOGY ‘Filmed-for-IMAX’ Empowers Blockbuster Filmmaking IMAX with Laser drives network upgrade PROVEN ECONOMICS UNIQUE GLOBAL ACCESS Highest pricing power, attendance and per-screen average among all 1,700+ global network bra
Slide 11: 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 12: IMAX Enhanced Creates Further Value for Our Fans and Partners
IMAX Enhanced Creates Further Value for Our Fans and Partners IMAX Enhanced creates further value for our fans and partners Full-Year 2022 Financial Results 12
Slide 13: 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 14.0% 13.7% market share, in 12.0% particular local 10.7% 10.0% 10.0% language 8.0% 6
Slide 14: Unique Asset-Light Business Model Positions Us Well for Meaningful Financials Recovery
Unique Asset-Light Business Model Positions Us Well for Meaningful Financials Recovery When Business Normalizes Strong fundamentals Cost control initiatives Financial Strength ❑ Asset-light business model ❑ Temporary adjustment to work week ❑ Delivered US$12.4 million adjusted net while maintaining
Slide 15: 2022 Segment Details
2022 Segment Details IMAX Technology Network IMAX Technology Sales & Maintenance Revenue sharing arrangements – contingent rent Others Theatre system maintenance Film Revenue Revenue sharing arrangements – upfront fees Sales & Sales-type lease arrangements $ in Millions $ in Millions (34%) (36%) $73
Slide 16: Network Update
Network Update Backlog Signings and Installations 215 2022 204 Full Revenue Sharing 44 Hybrid Revenue Sharing Total Signings Total Installations 42 Sales / Sales Type Lease Sales and STL 2 6 Revenue Sharing Arrangements Hybrid 1 2 100 JV 8 11 93 Upgrades 3 4 Relocation - 5 Renewals 6 - 71 69 Sales /
Slide 17: 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 18: 2022 Financial Summary
2022 Financial Summary $ in Millions Revenue Operating Expenses1 Adjusted EBITDA 4 Adjusted Net Income 5 $112.8 $23.2 $41.7 $0.4 $15.1 $4.5 $66.8 $1.3 $6.1 $4.0 $73.0 $73.3 $0.1 2 3 $47.9 $13.0 $13.5 $30.4 $12.4 $39.4 ($4.0) $25.3 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 New Business
Slide 19: 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 20: Full-Year 2022 Financial Results
Full-Year 2022 Financial Results IMAX® is a registered trademark of IMAX Corporation. 20