Cinemark Holdings, Inc. · NYSE:CNK
Cinemark — Q2 2024 Earnings Presentation
31 slides from Cinemark's earnings presentation, Aug 2, 2024
Slide 1: Investor Presentation
Investor Presentation August 2, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS PURSUANT TO THE U.S. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation contains, and our officers and representatives may from time to time make, “forward–looking statements” within the meaning of the s
Slide 3: Long-Term Value Creation
Long-Term Value Creation Cinemark is well-positioned to deliver sustainable growth, profitability, and long-term shareholder return on account of an advantaged market position, ongoing industry recovery, and numerous opportunities to drive incremental value 1 2 3 4 5 6 7 High quality Distinctive Sol
Slide 4: High quality assets
1 > 1 igh qual assets CINEMARK’
Slide 5: High Quality Assets
High Quality Assets Benefitting from sustained investments in guest experience over the past decade that significantly exceed peers, while prioritizing ongoing investments that position Cinemark for continued success Consistently allocated $80-$100M Highest penetration of luxury for global maintenan
Slide 6: Distinctive global footprint
2 Distinctive global footprint
Slide 7: Distinctive Global Footprint
Distinctive Global Footprint Distinctive global footprint with 502 theaters and 5,708 screens in 14 countries that provides valuable scale, attractive diversification and access to growth opportunities in under-penetrated markets U.S. Operations 1) • 308 theaters / 4,303 screens • 3rd largest exhibi
Slide 8: Significant North American Market Share
Significant North American Market Share Operational excellence and execution of strategic initiatives has driven faster domestic box office recovery than North American industry with meaningful market share gains Box Office Recovery 1) Market Share Expansion 2) North American Market Share 2) 85% 14%
Slide 9: Leader Across Latin American Region
Leader Across Latin American Region Well-established leader with market share expanding meaningfully since pre-pandemic and box office recovery outpacing the Latin American industry Market Share Expansion 1) Market Share - Key Latin American Markets 1) BRAZIL ARGENTINA 25% 23% 39% 12% 10% 8% Cinemar
Slide 10: Solid financial position with compelling free cash flow profile
3 Solid financial position with compelling free cash flow profile
Slide 11: FY 2023 Highlights
FY 2023 Highlights Continue to outperform industry and consistently demonstrate our agility in a dynamic landscape • Entertained 210 million guests worldwide Box • Domestic box office recovery surpassed the North American industry results by 700 bps comparing FY23 against FY19 with Office the larges
Slide 12: 2024 1H Results and Go-Forward
2024 1H Results and Go-Forward 1H24 North American industry box office exceeded expectations despite near-term headwinds caused by last year’s Hollywood guild strikes. With strong consumer enthusiasm for theatrical moviegoing and volume recovery trending positively, our long-term outlook remains hig
Slide 13: Solid Balance Sheet
Solid Balance Sheet Balance sheet remains a strategic asset and key differentiator, providing ample flexibility; continue to make meaningful progress toward re-fortifying financial strength post-pandemic while enabling consistent investment in the long-term success of our company • Strong cash balan
Slide 14: Capital Allocation Priorities
Capital Allocation Priorities Balanced and disciplined approach toward capital allocation with a keen eye toward maximizing long- term shareholder value Strengthen balance sheet post-pandemic by de-levering over time to enhance 1 flexibility and risk management Current Priorities • Targeting 2-3x ne
Slide 15: Industry-leading operating capabilities
4 Industry- leading operating capabilities
Slide 16: Industry-Leading Operating Capabilities
Industry-Leading Operating Capabilities Sophisticated operating tools, procedures, and rigor with meaningful strategic advances have delivered consistent outperformance of the North American industry in 13 of the past 15 years Heightened levels of guest services that Technology support center that e
Slide 17: Leaders with Proven Track Records
Leaders with Proven Track Records Highly experienced management team with significant industry experience and proven track records; additional key leaders with 20+ years of industry/Cinemark experience in the US and internationally Sean Gamble Melissa Thomas President & CEO CFO 15+ years of industry
Slide 18: Loyal customer base with extensive reach
5 Loyal customer base with extensive reach
Slide 19: Loyal Customer Base with Extensive Reach
Loyal Customer Base with Extensive Reach Established a loyal and extensive customer base through our consistency of service, quality of theaters, and appeal of consumer-oriented loyalty programs Increasing levels of engagement, frequency, and overall spend 1) As of 6/30/2024 100K+ members • Movie Cl
Slide 20: Numerous levers to drive incremental value creation
6 Numerous levers to drive incremental value creation
Slide 21: Growth & Productivity Opportunities
Growth & Productivity Opportunities Driving numerous growth and productivity initiatives that go above and beyond industry recovery to create incremental value • Further enhance exceptional guest experience through premium amenities and offerings that cannot be replicated at home, as well as an ongo
Slide 22: Resilient industry dynamics and continued recovery
7 Resilient industry dynamics and continued recovery
Slide 23: Exhibition Industry Trends
Exhibition Industry Trends Stable, long-term industry growth trends across technology innovations and economic cycles with box office growth in 6 of the last 8 recessionary periods North America Box Office Trends VCR VHS begins to ramp post beta-max INTERNET begins to go mainstream DVD player drops
Slide 24: Optimism in Box Office Recovery
Optimism in Box Office Recovery While the first half of 2024 was impacted by the six-month work stoppage associated with the Hollywood strikes, we remain highly optimistic regarding box office recovery in the second half of 2024, as well as 2025 and beyond Consumer Non-traditional New significant Vo
Slide 25: Value of an Exclusive Theatrical Window
Value of an Exclusive Theatrical Window A theatrical release enhances a film’s promotional impact and overall asset value Increases consumer awareness, Satisfies consumer/creative desires interest and recognition. to see films on big screen. Elevates perception of Produces bigger brands, films by ev
Slide 26: 2024 Notable Titles
2024 Notable Titles Quarter 1 Quarter 2 Quarter 3 Quarter 4 Jan. 12 Feb. 14 March 8 May 3 May 24 June 14 July 3 July 26 Sept. 6 Oct. 4 Nov. 22 Dec. 20 (PAR) (PAR) (UNI) (UNI) (WB) (DIS) (UNI) (DIS) (WB) (WB) (UNI) (DIS) March 1 March 22 March 22 May 10 May 24 June 28 July 19 Aug. 9 Aug. 16 Nov. 22 N
Slide 27: 2025 Compelling Film Slate
2025 Compelling Film Slate Strong film slate with broad consumer appeal already announced for 2025 27
Slide 28: Appendix
Appendix CINEMARK’
Slide 29: FY23 Financial Summary
FY23 Financial Summary Worldwide Results 1) 2) FY23 FY22 Variance FY23 Highlights Attendance 210 173 22% • Worldwide attendance increased 22% year-over-year driven by a steady recovery of film volume and a diverse slate of Revenue $3.1B $2.5B 25% high-quality films. Adj. EBITDA $594 $337 77% • Execu
Slide 30: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations Reconciliation of Net Income/(Loss) to Reconciliation of Cash Flows Adjusted EBITDA 1) Provided by Operating Activities to Free Cash Flow 1) 1H24 1H23 FY23 FY22 1H24 1H23 2023 2022 Net Income/(Loss) $72 $118 $191 $(268) Cash flows provided by operating $162 $251 $444
Slide 31: Thank You
Thank You Chanda Brashears SVP Investor Relations cbrashears@cinemark.com 972-665-1671