Cineplex Inc. · TSX:CGX

Cineplex — Q2 2016 Earnings Presentation

65 slides from Cineplex's earnings presentation, Jun 30, 2016

  1. Slide 1: 2016 Second Quarter

    2016 Second Quarter As at June 30, 2016 Contact/Inquiries: Pat Marshall, Vice President, Communications and Investor Relations <=> T: 416.323.6648 +» E: Pat.Marshall@cineplex.com CINEPLEX

  2. Slide 2: Box Office Market Share

    Box Office Market Share CINEPLEX BOX OFFICE MARKET SHARE ENTERTAINMENT AS AT JUNE 30, 2016 IS THE LARGEST AND MOST SUCCESSFUL MOTION PICTURE EXHIBITION COMPANY cineoles IN CANADA neplex @ Landmark, 9.9% 162 |1,659 THEATRES SCREENS Source: Rentrak 5 E> 2 CINEPLEX

  3. Slide 3: Box Office Per Patron (BPP)

    Box Office Per Patron (BPP) $9.23 soc) 9074 = $897 sos ga $799 $7.99 $8,05 $8.30 on | | 2006 2007 2008 2009 2010 2011 2012 2013) 2014 2015 Box Office Hi Premium Offerings eplex Entertainment. Not t J or used without permission. 3 <e_> CINEPLEX

  4. Slide 4: More than iterative

    More than iterative Theatre Exhibition uy Theatre Digital Film Entertainment and Content Exhibition Commerce <_> 4 CINEPLEX lex Entertainment. Not to be di 4, reproduced or used withou'

  5. 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

  6. Slide 6: Film Entertainment and Content

    Film Entertainment and Content Theatre Exhibition * Food Service « Alternative Programming « Digital Commerce E> © Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 6 CINEPLEX

  7. Slide 7: Accounted for of box office revenue

    ACCOUNTED FOR OF BOX OFFICE REVENUE FOR THE THREE MONTHS ENDED JUNE 30, 2016

  8. Slide 8: Wall to wall screens

    Wall to wall screens Dolby ATMOS surround sound Reserved seating Extra-wide high back, rocker seats Premium pricing CINEPLEX ULTRA AUDITORIUMS OF SCREENS OF BOX OFFICE

  9. Slide 9: All locations are digital and 3D capable

    All locations are digital and 3D capable Premium pricing Reserved seating THEATRES CAPABLE ED CINEPLEX

  10. Slide 10: Locations

    LOCATIONS Unique out-of-home experience Seats move in synchronization with the action on screen Premium pricing Reserved seating 62 locations (as at June 30, 2016)

  11. Slide 11: Enhanced food and beverage menu

    Enhanced food and beverage menu Adult-only licensed auditoriums Reserved recliner seats Service at your seat Private licensed lounge and box office Premium pricing CINEPLEX LUXURIOUS EXCEPTIONAL CINEMAS CINEPLEX

  12. Slide 12: VIP Cinema Locations

    Scotiabank Theatre Saskatoon and VIP (Saskatoon, SK) Cineplex Cinemas Lansdowne and VIP (Ottawa, ON) Cineplex Cinemas Markham and VIP (Markham, ON) Cineplex Cinemas Yonge-Eglinton and VIP (Toronto, ON) Cineplex Cinemas Marine Gateway and VIP (Vancouver, BC) Cineplex Cinemas North Barrie (Barrie, ON)

  13. Slide 13: Food Service

    Food Service Bese Smaiehis= : Rares Gene HL re if i nd ‘ * Focus on speed of service * Premium promotional programs * Digital menu boards * Proprietary brands REVENUE 2015

  14. Slide 14: Concession Per Patron (CPP)

    Concession Per Patron (CPP) $5.43 sues $4.82 $5.09 $4.27 $4.41 $3.72 $3.84 $3.96 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 <_> Sineplex Entertainment. Not to be distributed, reproduced or used without permission. 4 CINEPLEX

  15. Slide 15: Outtakes

    Outtakes OUTTAKES AS AT JUNE 30, 2016 5 <_> 1S CINEPLEX

  16. Slide 16: Self-serve frozen yogurt

    Self-serve frozen yogurt Will replace all Cineplex yogurt RBOs yoyosyogurtcafecom © ©®.@° e @q \ AS AT JUNE 30, 2016 . ‘ > © Cineplex Entertainment. Not to be distributed, reproduced o1 4 S 6 CINEPLEX

  17. Slide 17: Poptopia

    Poptopia <s FPS. Pr * Selection of specialty gourmet popcorn 23 Locations Nationwide AS AT JUNE 30, 2016 p&ptopia GOURMET POPCORN. <_> v7 CINEPLEX

  18. Slide 18: • • • • • • • • • • •

    • • • • • • • • • • •

  19. Slide 19: E>

    E> CINEPLEX

  20. Slide 20: E>

    E> CINEPLEX

  21. Slide 21: Entertainment

    5 <> E inmen| 21 CINEPLEX

  22. Slide 22: SuperTicket

    SuperTicket First bundled offering from multiple studios Purchase movie ticket and pre-order digital download at the same time EEE CINEPLEX hacludes $00 Bonus SCENE points SUPERCTICKET Movies available for earliest possible home entertainment release date Now available for over 70% of major titles O

  23. Slide 23: SCENE - Loyalty Program

    SCENE - Loyalty Program Canada's top loyalty program for movie 7.7 lovers Members are represented in 33% of Canadian households One of top five loyalty programs in Canada One in five Canadians are SCENE members 63 53 43 3.3 27 24 1.4 0.6 2007. 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2 Number o

  24. Slide 24: SCENE - Extra Benefits

    SCENE - Extra Benefits COMPETITIVE ADVANTAGE Drives attendance frequency Encourages concession spend Better target offers to guests Cineplex Store - Build NOW YOU CAN a awareness / promote trial { 7,4 5 } \ } n Great opportunity for film studios and promotional partners ame 7 L {_ a 1 \y. | POINTS A

  25. Slide 25: Cineplex Media + Cineplex Digital Media

    Cineplex Media + Cineplex Digital Media <E> © Cineplex Entertainment. Not to be distributed, reproduced or used without permission 25 CINEPLEX

  26. Slide 26: Cineplex Media

    j : Ser Cineplex Media & | Show time | Concourse . © = 9p Cineplex Mobile Cineplex.com <_> 26 CINEPLEX Cineplex Entertainment. Not to be dis

  27. Slide 27: Reach by province

    Yukon 4% B.C 96% Alberta 95% Manitoba Sask, 99% Ontario 97% 97% Atlantic 98% Quebec 79% 27 E> CINEPLEX

  28. Slide 28: Advertising awareness results

    39% 40 Advertising Correct Brand Ad Awareness Association Entertainment 2ma Pre-Show Cinema Show Tir 52 ED inment. N 28 CINEPLEX

  29. Slide 29: Overwhelming Results

    730 56 Overwhelming Results C ED 29 CINEPLEX

  30. Slide 30: Interactive Media Zones (IMZs)

    Interactive Media Zones (IMZs) ADVERTISING EXPERIENCE AS AT JUNE 30, 2016 Touch Gesture Image Capture Content Manipulation Social Media Connectivity Data Capture <e_> CINEPLEX

  31. Slide 31: Dynamic Screens

    BpMETOGETHER reo 443 screens in ° 138 locations Dynamic Screens “ — , ; ; 31 CINEPLEX

  32. Slide 32: Integrated Media Campaigns

    Integrated Media Campaigns E> CINEPLEX

  33. Slide 33: Path to Purchase • Point of Purchase

    Path to Purchase « Point of Purchase <> © Cineplex Entertainment. Not to be distributed, reproduced or used without permission 33 CINEPLEX

  34. 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 olxlrlolrip § Scotiaba

  35. 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" oe re.us Smashingly good deals from $0 ae . 35 <E> lex Entertai

  36. Slide 36: Ivanhoe Cambridge

    Ivanhoe Cambridge VAUGHAN MILLS 2 ED 36 CINEPLEX

  37. Slide 37: Point of Purchase

    Point of Purchase QUICK SERVICE RETAIL RESTAURANTS FINANCIAL ¢ Market-leading digital signage company * Designs, installs, manages and consults on some of the largest digital merchandising * Largest digital networks in Canada mayer fin Nertin /\aaroriee) * Proprietary technology - <_> x Entertainmen

  38. Slide 38: Quick Service Restaurants

    Quick Service Restaurants 2 | Bakery Fresh 554969 His gt BLT's po% so ong Small Cotter or pt Bieee Bie Sao Sie Tatotn DS Ge . <_> inment. Not to be distribu i 4 u i 38 CINEPLEX

  39. Slide 39: TimsTV

    TimsTV MORE THAN 2,200 TIM HORTONS LOCATIONS ACROSS CANADA One of the largest digital signage networks in Canadian retail - <_> 39 CINEPLEX

  40. Slide 40: RBC

    RBC RBC Royal Bank <_> 40 CINEPLEX

  41. Slide 41: Retail

    Retail -= mm youe Bite TO GET IN |THE Tap went © ROGERS’ BEER >< <_> eproduced or used without permission. 41 CINEPLEX

  42. Slide 42: Amusement Gaming and Leisure

    Amusement Gaming and Leisure Cineplex Starburst Inc. » eSports « The Rec Room <_> Cineplex Entertainment. Not to be distributed, reproduced or used without permission. 42 CINEPLEX

  43. Slide 43: Cineplex Starburst Inc.

    Cineplex Starburst Inc. Largest Amusement Gaming Company in Canada * Wholly owned and operated * Supplies arcade equipment to Cineplex theatres, other circuits and numerous entertainment venues * Owns and operates Family Entertainment Centres (FECs) across Canada including XSCAPE and Playdium * Owns

  44. Slide 44: Cineplex Starburst Inc.

    Cineplex Starburst Inc. * 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 pa

  45. Slide 45: Family Entertainment Centres (FECs)

    Family Entertainment Centres (FECs) CSI owns seven self-operating FECs across Canada Playdium Mississauga Seven other FECs 17 co-operated licensed locations 24 XSCAPE Entertainment Centres in Cineplex theatres ' c ED lex Entertainment. Not to be distributec Juce 4 withou ; 45 CINEPLEX

  46. Slide 46: XSCAPE Entertainment Centres

    XSCAPE Entertainment Centres An entertainment concept in Cineplex theatres featuring the AS AT JUNE 30, 2016 latest video and interactive games along with a redemption centre

  47. Slide 47: Cheer on the Heroes

    CHEER ON THE HEROES WIN GREAT PRIZES E> CINEPLEX

  48. Slide 48: eSports

    eSports DATE MARCH 6, 2016 $20,000 an POlLars PlayStation CANADIAN CHAMPIONSHIPS EARN 400 SCENE’ POINTS! WHEN YOU GET YOUR TICKET 2016", TO WATCH IN THEATRE CINEPLEX.COM/ YOU TALK A BIG GAME. NOW PLAY ONE. OVER $25,000 IN PRIZES AND BIG-SCREEN GAMING FAME CHAMPIONSHIPS 2016 BY FEATURING re REGISTER

  49. Slide 49: Coming Soon

    COMING SOON 40,000 - 60,000 sq. ft. South Edmonton Common (Q3, 2016) R E C Toronto Roundhouse (Q1, 2017) Deerfoot Crossing Calgary (Q2, 2017) 10-15 locations R Oo Oo M

  50. Slide 50: The Rec Room will be Canada's premier social entertainment destination

    The Rec Room will be Canada’s premier social entertainment destination. The concept features a wide range of entertainment options: + Alarge attractions area with amusement games and interactive attractions alongside recreational activities like pool and ping pong * Multiple dining options including

  51. Slide 51: Acquisitions

    Acquisitions N= Sr THEATRES E> E inmen| S1 CINEPLEX

  52. Slide 52: Financial Highlights

    Financial Highlights <_> permission. 52 CINEPLEX ineplex Entertainment. Not to b:

  53. Slide 53: Total Revenue

    TOTAL REVENUE $ MILLIONS $1,371 $1,235 $1,171 $1,092 $1,006 $964 S998 $850 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $805 $740 <_> © Cineplex Entertainment. Not to be distributed, reproduced or used without permission 53 CINEPLEX

  54. Slide 54: Adjusted EBITDA

    ADJUSTED EBITDA $ MILLIONS $250 CAGR 37% $200 $202 $201 $173 1 $160 S168 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $137 $141 $118 <_> d without permission. 54 CINEPLEX plex Entertainment. Not to be distribut

  55. Slide 55: Box Office Revenue

    BOX OFFICE REVENUE $ MILLIONS $711 $038 $665 $673 $58 N12 72.7 ; Tia 2009 =. 2010 2001 2012 2013 2014 2015 @- _ <_> a7 CINEPLEX

  56. Slide 56: Food Service Revenue

    FOOD SERVICE REVENUE $ MILLIONS $418 $375 $214 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ; « <_> x Entertainment. N sis 4 56 CINEPLEX

  57. Slide 57: Media Revenue

    MEDIA REVENUE $ MILLIONS $154 °, $134 oR CR $110 « g - H . pT wn 887 _ $56 $47 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 TI Media Revenue [J Digital Media Revenue . < <_> plex Entertainment. Not to be distributec fuce 7 f s 57 CINEPLEX

  58. Slide 58: Other Revenue

    OTHER REVENUE $ MILLIONS $388 $46 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 . < <_> x Entertainment. Not to be distribu i 4 Yu s 58 CINEPLEX

  59. Slide 59: Total Revenue Per Patron

    TOTAL REVENUE PER PATRON CAGR 3.7% $17.80 “si459 ae " en 133g $1878 $12.89 $13.17 3.38 — T | a 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 IB Box Office Per Patron (BPP) Co ions Per Patron (CPP) Media Per Patron J Other Per Patron <_> 4 or used without permission 59 CINEPLEX ineplex Entertainm

  60. Slide 60: 2016 Q2 Results

    2016 Q2 RESULTS MILLIONS, EXCEPT ADJUSTED EBITDA MARGIN AND PER PATRON AMOUNTS Box Office $162.1 $186.2 -12.9% Food Service $96.8 $108.4 -10.7% Media $40.2 $35.0 14.8% Other $38.9 $15.9 144.2% Adjusted EBITDA Margin 12.7% 18.9% -6.2% Attendance 16.9 19.7 -14.4% BPP $9.62 $9.45 1.8% CPP $5.74 $5.50 4

  61. Slide 61: Payout Ratio and Dividends

    112% 2005 PAYOUT RATIO f 1 1 1 80% 1 1 1 69% | © 67% ' 1 98% 64% 59% 1 56% ! 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ) ‘ 1 2006 2007. +2008 2009 2010 | 2011 2012 57% 2013 64% 2014 62% 2015 $115 $1.15 $1.18 2005 2006 +=. 2007 DIVIDENDS $1.54 $1.41 Sie $1.33 $1.24 $126 $1.26 $1.28 2008 2009 2010 2011-2012

  62. Slide 62: Credit Facilities

    CREDIT FACILITIES (MILLIONS) ¢ Jun ¢ June 30/16) Term Facility Apr. 2021 $150 Revolving Facility Apr. 2021 $400 Total $550 - COVENANT LEVERAGE RATIO 2.39 1.94 188 1.66 158 = = = = ; ; j = - ; - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q2 2016 <_> ineplex Entertainment. Not to be distri

  63. Slide 63: Outstanding Shareholder Return

    Outstanding Shareholder Return $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 2003 2004 2005 2006 2007 2008 2009 2010 201 2012 2013 2014 2015 <_> Cineplex Entertainment. Not to be distributed, reproduced or used without permission 63 CINEPLEX

  64. Slide 64: Non-GAAP Financial Measures

    Non-GAAP Financial Measures EBITDA Adjusted EBITDA Adjusted Free ‘Cash Flow Attendance BPP priced product cPP Premium Experiences Concession margin per patron Same store metrics Film cost percentage Concession cost percentage Management of Cineplex uses certain non-GAAP financial measures to evaluat

  65. Slide 65: Thank You!

    Thank You!

Cineplex — Q2 2016 Earnings Presentation on 6ix