Slide 1: Q3 2023 Financial Results
Q 3 2 0 2 3 F I N A N C I A L R E S U LT S O c tober 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This earnings release contains forward looking statements that are based on IMAX® commercial exhibitors and studios; risks related to brand extensions and new business management's assumptions and existing information and involve certain risks and initiatives; conditions i
Slide 3: Strategic Update
Strategic Update Richard Gelfond Chief Executive Officer
Slide 4: IMAX Holds a Powerful Position in the Entertainment Industry
INVESTMENT HIGHLIGHTS IMAX Holds a Powerful Position in the Entertainment Industry; We Deliver Unique Value Throughout the Ecosystem 1 2 3 4 5 6 IMAX is the Unmatched global Highly recurring Flexible, asset-lite Strong capital position Extending future of network scale revenue model business The IMA
Slide 5: IMAX is at the Nexus of Positive Industry Trends
IMAX GLOBAL REOPENING IMAX is at the Nexus of Positive Industry Trends and Wields Key Advantages in Navigating the Changing Marketplace Benefits from strong secular tailwinds… …While heavily insulated from industry risks RISKS IMAX ADVANTAGE • IMAX screens located in top performing exhibitor Industr
Slide 6: Domestic Theatrical Market has Demonstrated Stability
RECESSION RESISTANT BUSINESS Domestic Theatrical Market has Demonstrated Stability Despite the Proliferation of Entertainment Options and Recessionary Climates DVDS OTT / SMARTPHONES 14 EXHIBITION BANKRUPTCY & CONSOLIDATION 12 MEGAPLEXES 10 INTERNET 8 $ in billions CABLE TV 6 VHS 4 2 0 1979 1984 198
Slide 7: IMAX Achieving Greatest Share of Global Box Office Ever
RISING MARKET SHARE ACROSS GLOBAL BOX OFFICE IMAX Achieving Greatest Share of Global Box Office Ever IMAX BOX OFFICE MARKET SHARE 6.0% 5.0% 4.8% 4.8% 4.6% 4.4% 4.4% 4.1% 3.9% 4.0% 3.8% 3.7% 3.8% 3.5% 3.5% 3.3% 3.3% 3.4% 3.2% 3.2% 3.2% 3.0% 3.0% 3.0% 2.7% 2.6% 2.5% 2.5% 2.6% 2.3% 2.2% 2.3% 2.3% 2.1%
Slide 8: Our Diversified Global Network of 1,651 Commercial Screens
IMAX IS A GLOBAL PLATFORM W E S T E R N E U R O P E 1,651 C A N A D A 40 120 Commercial Multiplex Locations 87 Countries & Territories U N I T E D S T A T E S 360 G R E A T E R C H I N A Our Diversified 783 100+ Global Network of 1-99 L A T I N 1,651 Commercial None A M E R I C A *By country 55 A S
Slide 9: Q3 2023 – Positive Momentum Continues
STRONG POST PANDEMIC RECOVERY Q3 2023 – Positive Momentum Continues IMAX GLOBAL BOX OFFICE REVENUE +96% $150 +51% $400 $347 $125 $104 $300 $100 $177 $69 $75 $200 $50 $100 $25 $- $- Q3 2022 Q3 2023 Q3 2022 Q3 2023 GROSS MARGIN A D J E B I T DA (1) A D J E B I T DA (1) P E R S H A R E +98% $100 +174%
Slide 10: 'Blockbusterization' Driving Demand for IMAX
‘Blockbusterization’ Driving Demand for IMAX Oppenheimer Mission Impossible: Dead Reckoning Part 1 Creation of the Gods • 5th highest grossing IMAX film of all time with over $180 • Record opening weekend for the Mission Impossible franchise • First installment of the biggest budget Chinese trilogy
Slide 11: Full-Year 2023 Guidance
FULL-YEAR 2023 GUIDANCE On track for 20%+ growth in 2023 across Key Metrics 2023 ~$1.1B 110 - 1301 Mid 30’s percent Guidance Global Box Office in IMAX back to pre-pandemic level Installations Adjusted EBITDA2 Margin % attributable to common shareholders 2023 $889M 59 39% SEP 2023 YTD 2022 $850M 92 3
Slide 12: Significant Rest of World Market Opportunity
Significant Rest of World Market Opportunity – only 37% Installed Network Penetration Commercial Multiplex Worldwide Addressable Market: 3,300+ Installed System Network Penetration: 50% 1600 1,414 1400 1,267 3,318 1200 449 32% 1267 38% 1000 643 51% 183 13% 800 Unpenetrated Market 400 12% 637 IMAX Ne
Slide 13: Most Diverse IMAX Global Content Portfolio Ever
CONTENT STRATEGY Most Diverse IMAX Global Content Portfolio Ever to Fuel Revenue Growth HOLLYWOOD LOCAL LANGUAGE DOCUMENTARIES ALTERNATIVE CONTENT Guardians image OPPENHEIMER CREATION OF THE GODS DEEP SKY TAYLOR SWIFT ERAS TOUR – THE MOVIE Q3 2023 FINANCIAL RESULTS 13
Slide 14: Strong Blockbuster Pipeline Continues into Q4 2023
E X P E C T E D 4 Q 2 0 2 3 S L A T E Strong Blockbuster Pipeline Continues into the Fourth Quarter of 2023 O C T O B E R O C T O B E R O C T O B E R O C T O B E R N O V E M B E R N O V E M B E R N O V E M B E R N O V E M B E R N O V E M B E R D E C E M B E R D E C E M B E R D E C E M B E R Q3 2023
Slide 15: 2024 Looks to be Another Promising Year
E X P E C T E D 2 0 2 4 S L A T E 2024 Looks to be Another Promising Year F E B R U A R Y F E B R U A R Y M A R C H M A R C H A P R I L M A Y M A Y J U N E J U L Y J U L Y J U L Y S E P T E M B E R O C T O B E R N O V E M B E R N O V E M B E R D E C E M B E R Q3 2023 FINANCIAL RESULTS *Release slate
Slide 16: Local Language Content Drives Incrementality and Productivity
LOCAL LANGUAGE GROWTH Local Language Content Drives Incrementality and Productivity in Key Growth Markets • Record 2023: Highest-grossing year ever for local language films, with approximately $200 million to-date, representing ~21% of total IMAX box office. LOCAL LANGUAGE TITLE GROWTH • Momentum Co
Slide 17: IMAX 3.0
IMAX 3.0 Expanding The IMAX Experience Beyond Blockbuster Films to Live Events and Streaming Platforms IMAX Expansion of Global IMAX Iconic Theaters, Visionary Creators, 3.0 Entertainment Technology Platform 2.0 Blockbuster Content, Rapidly IMAX Expanding Global Network Museums & 1.0 Documentaries S
Slide 18: IMAX Technology
IMAX Technology NEXT GENERATION NEXT GENERATION BRINGING THE IMAX DIGITAL REMASTERING IMAX FILM CAMERAS PROJECTION TECHNOLOGY EXPERIENCE TO THE HOME Lightyear Development Phase Underway Transformation to an All IMAX-with- Cloud Optimized Streaming and Consumer Technology • Developing and expect to d
Slide 19: Financial Review
Financial Review Natasha Fernandes Chief Financial Officer
Slide 20: Q3 Financial Performance
Q3 FINANCIAL PERFORMANCE IMAX Reports Strong Double-Digit Growth Across Key Metrics $ IN MILLIONS Q3 Q3 SEP YTD SEP YTD except per diluted share data and 2023 2022 2023 2022 network data SEPTEMBER YTD HIGHLIGHTS Global Box Office $347.1 $177.1 $888.8 $598.1 Global Commercial Network 1,651 1,622 1,65
Slide 21: Other Items
OTHER ITEMS ITEMS FINANCIAL IMPACT Q3 2023 YTD 2023 $ IN MILLIONS, EXCEPT EPS DATA $ IN MILLIONS, EXCEPT EPS DATA Executive Transition Costs Net Income(1) - $ (1.4) Executive Transition Costs EPS(1) - $ (0.02) Transaction-related Expenses Net Income(1) $ (3.1) $ (3.2) Transaction-related Expenses EP
Slide 22: Systems Network Growth Drivers
SYSTEMS NETWORK GROWTH DRIVERS System Sales momentum continues with 120 signings to-date1 vs. prior full year signings of 47 BACKLOG PIPELINE 486 450 Q3 2023 SEP YTD 2023 21 TOTAL TOTAL TOTAL TOTAL SIGNINGS INSTALLATIONS SIGNINGS INSTALLATIONS 17 Other Upgrades 65 JV Upgrades 72 Sales and STL 7 14 4
Slide 23: Low Leverage Model with Improving Cash Flow and Strong Liquidity
Low Leverage Model with Improving Cash Flow and Strong Liquidity OP E R AT I N G C ASH F LOW ( $ IN MILLIO NS ) D E BT M AT UR I T Y LA D D E R ($ I N M I LLI ON S) $250 $60 $200 $30 $55 $150 $231 $17 $100 $- $6 $50 $(23) $5 $1 $1 $21 $1 $- $(30) 2023 2024 2025 2026 2027 2028 2020 2021 2022 SEP YTD
Slide 24: Delivering Value Through Share Repurchase
DELIVERING VALUE THROUGH SHARE REPURCHASE IMAX Repurchased $139M, 14% of Shares Outstanding Since 2020 YEAR-END SHARES SHARES REPURCHASED AVERAGE OUTSTANDING PAST 3 YEARS REPURCHASE PRICE ( I N T H O U S A N D S ) ( I N T H O U S A N D S ) Shares Repurchased % Repurchased (Cum) 65,000 $16 6,000 16.0
Slide 25: Attractive Cash Flow Model – Focused on Growth Capex
ATTRACTIVE CASH FLOW MODEL – FOCUSED ON GROWTH CAPEX September YTD Cash Flow Dynamics Reflects Strong EBITDA Conversion $60 $ IN MILLIONS 54.6 $50 46.6 $40 35.9 $30 $20 10.7 $10 5.4 2.5 $- SEP YTD Operating PP&E Investment FCF Before Investments In SEP YTD Free Cash Flow in Software Growth JRSA Leas
Slide 26: Appendix
A P P E N D I X Q3 2023 FINANCIAL RESULTS
Slide 27: Use of Non-GAAP Financial Measures
USE OF NON -GAAP FINANCIAL MEASURES In this earnings presentation, the Company presents adjusted net income after-tax impact of share-based compensation and certain unusual items attributable to common shareholders and adjusted net income attributable to included in net loss attributable to common s
Slide 28: Use of Non-GAAP Financial Measures
USE OF NON -GAAP FINANCIAL MEASURES In addition to the non-GAAP financial measures discussed on the previous or used in operating activities. Management believes that free cash flow is a slide, management also uses “EBITDA,” as well as “Adjusted EBITDA per Credit supplemental measure of the cash flo
Slide 29: Q3 2023 Non-GAAP Reconciliation — Adjusted Net Income
Q3 2023 NON-GAAP FINANCIAL RECONCILIATION — ADJUSTED NET INCOME 3 MONTHS ENDED SEPTEMBER 30, 2023 9 MONTHS ENDED SEPTEMBER 30, 2023 $ IN THOUSANDS, EXCEPT EPS DATA Net Income Per Share Net Income Per Share Net Income Attributable to Common Shareholders $ 11,990 $ 0.22 $ 22,795 $ 0.41 Adjustments: Sh
Slide 30: Q3 2023 Non-GAAP Reconciliation — Adj. EBITDA
Q3 2023 NON-GAAP FINANCIAL RECONCILIATION — ADJ. EBITDA 3 MONTHS ENDED SEPTEMBER 30, 2023 3 MONTHS ENDED SEPTEMBER 30, 2022 Attributable to Less: Attributable to Non- Less: Attributable to Attributable to $ IN THOUSANDS Non-Controlling Interests & Attributable to Non- Controlling Interests & Attribu
Slide 31: Non-GAAP Reconciliation — Free Cash Flow
NON-GAAP FINANCIAL RECONCILIATION — FREE CASH FLOW 9 MONTHS ENDED SEPTEMBER 30, 2023 9 MONTHS ENDED SEPTEMBER 30, 2022 $ IN THOUSANDS Net Cash Provided by Operating Activities $ 54,608 $ 481 Net Cash Used in Capital Expenditures (18,664) (23,037) Free Cash Flow $ 35,944 $ (22,556) Q3 2023 FINANCIAL