Imax China Holding Inc · HKEX:1970

Imax China — Investor Presentation (April 2022)

27 slides from Imax China's investor presentation, April 2022

  1. Slide 1: IMAX China (1970 HK) Investor Presentation

    IMAX China (1970 HK) Investor Presentation April 2022 ® IMAX 1 Corp.

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. Slide 7: Business Model

    • Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 7

  8. 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

  9. 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

  10. Slide 10: Investment Thesis

    • Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 10 10

  11. 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 Demonstrated Demand and IMAX Beyond COVID Strong Financials Turnaround Accelerating Structural Tailwinds Differentiated positioning ❑ Strong revenue rebound to US$113 million in ❑ “Blockbusterization” effect in content ❑ China’

  12. Slide 12: 'Blockbusterization' in Content Consumption Drives Higher IMAX Indexing and Market Share

    ‘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 in Hollywood Titles 13.7% 10.7% 10.0% 8.8% 8

  13. Slide 13: 'Blockbusterization' Drives Higher Indexing: Local Language Titles

    ‘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%

  14. Slide 14: IMAX DNA – a Major Driving Force in Creating Billion-Dollar Blockbusters

    IMAX DNA – a Major Driving Force in Creating Billion-Dollar Blockbusters The Battle at Lake Changjin (Sept 2021) Detective Chinatown 3 (Feb 2021) Water Gate Bridge (Feb 2022) The Eight Hundred (Aug 2020) • RMB5.8bn box office • RMB4.5bn box office • RMB4.1bn box office(1) • RMB3.1bn box office • Wit

  15. 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

  16. 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

  17. 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

  18. 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.

  19. Slide 19: Strong Pipeline of Blockbuster Releases (2022-2023)

    Strong Pipeline of Blockbuster Releases (2022-2023) Doctor Jurassic The Strange Top Gun: Thor: Love World 3: Batman In The Multiverse Maverick Dominion and Thunder March 2022 May 2022 July 2022 of Madness June 2022 May 2022 Black Mission Panther 2: Fast & Avatar 2 & 3 Impossible Aquaman 2 Wakanda De

  20. Slide 20: Promising Pipeline of Potential Local Language Titles

    Promising Pipeline of Potential Local Language Titles Mozart From Space (TBD) Creation of the Gods I (TBD) The Wandering Earth 2 (CNY 2023) • IMAX China invested approximately RMB30 • First installment of ‘Fengshen Trilogy’ • Sequel to ‘The Wandering Earth’ – 5th million for an equity stake in Janua

  21. Slide 21: 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%

  22. Slide 22: 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 1 215 392 111 280 As of December 31, 2021 Note 1: As of Decembe

  23. Slide 23: Financials

    • Ecosystem • Business Model • Investment Thesis • Financials Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 23 23

  24. Slide 24: Strong Financial Position and Asset-light Business Model Drives Quick Profitability Turnaround

    Strong Financial Position and Asset-light Business Model Drives Quick Profitability Turnaround Strong fundamentals Increase shareholder value ❑ Asset-light technology licensing business model provides ❑ IMAX China’s growing indexing, in particular local language financial flexibility titles, drove q

  25. Slide 25: Strong 2021 Provides Momentum Into 2022

    Strong 2021 Provides Momentum Into 2022 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

  26. Slide 26: 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

  27. Slide 27: Investor Presentation IMAX® is a registered trademark of IMAX Corporation.

    Investor Presentation IMAX® is a registered trademark of IMAX Corporation. 27

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