National CineMedia, Inc. · NASDAQ:NCMI
National CineMedia — Investor Presentation (May 2010)
21 slides from National CineMedia's investor presentation, May 2010
Slide 1: Investor Presentation
Investor Presentation May 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements The following information contains, or may be deemed to contain, “forward- looking statements.” By their nature, forward-looking statements involve risks, assumptions and uncertainties because they relate to events and depend on circumstances that may or may not occur in t
Slide 3: Business Overview
Business Overview NCM operates the largest in-theatre digital network in North America Advertising (88.0%)(1) Fathom Events (12.0%)(1) “First Look” branded, on-screen Business Facing Consumer Facing pre-feature entertainment and Live and pre-recorded Live and pre-recorded concerts, advertising progr
Slide 4: Growing and Attractive Advertising Medium
Growing and Attractive Advertising Medium 2008 total U.S. advertising spending (1): $162 billion Cinema is < 0.5% of total U.S. Cinema Advertising Market (2) Advantages of Cinema Advertising ’02-’08 $571 • Growth opportunity as media budgets shift from ($ in millions) CAGR: 21% $540 traditional to d
Slide 5: Expand Network and Reach
Expand Network and Reach April 1, 2010 (1) ≈ 17,100 screens ≈ 680 million attendees/year Reaching > 90% digitally June 2011P (2) ≈ 18,100 screens ≈ 715 million attendees/year Reaching > 90% digitally Projected Market Share of U.S. Attendance Viewing Ads (3) April 2010 June 2011 Top 10 DMAs 69% 71% T
Slide 6: Competitive Network Reach
Competitive Network Reach NCM ranks among Top 10 Networks Age Demo 18-34)(1) Age Demo 18-49)(1) Weekends (Fri-Sat) (1) Full Week (Mon-Sun) (2) Weekends (Fri-Sat) (1) Full Week (Mon-Sun) (2) Rank Network Rank Network Rank Network Rank Network 1 NCM 1 FOX 1 NCM 1 FOX 2 FOX 2 NBC 2 FOX 2 NBC 3 Univisio
Slide 7: Growing Market Share vs. Traditional Media
Growing Market Share vs. Traditional Media (1) 2009 vs. 2008 Ad Spend 50% NCM (2) 40% 32.2% 30% 20% 11.5% 14.8% 4.1% 10% 0.1% 0% -10% -10.4% -9.9% -9.7% -8.7% -7.2% -3.9% -20% -14.7%-14.2% -13.7% -11.2% -9.0% -30% -23.9% -19.3% -16.1% -40% -32.7% -50% -44.9% Spot TV (101-200) B2B National Newspaper
Slide 8: Improving Competitive Market Position
Improving Competitive Market Position NCM Network Anchored by 27+ year agreements with 3 largest U.S. Theatre Circuits (Founding Members) NCM Founding Member Acquisitions Fuel Network Growth – Locks circuits into 27+ year agreements Acquired by AMC in 2005/Joined Select Acquired by Cinemark NCM Netw
Slide 9: FirstLook Pre-Show
FirstLook Pre-Show Local / Regional Advertising All National Advertising 14 Local/Regional 15-Second Units 12 National 30-Second Units Pricing of advertising inventory increases closer to showtime as audience size builds 9
Slide 10: Broaden Category and Client Base
Broaden Category and Client Base Expansion into underpenetrated and established categories helps drive revenue growth, increase inventory utilization, and reduce quarterly revenue volatility 10
Slide 11: National Advertising Growth
National Advertising Growth 2006 2007 2008 2009 Expand Utilization • 78% • 87% • 80% • 88% Expand Impression Base • 540 mm attendees • 575 mm attendees • 643 mm attendees • 667 mm attendees Grow CPMs – ’06-’09 CAGR 3% Increase • Increased 1.6% • Increased 13.4% • Decreased 5.5% • ~30% variation in •
Slide 12: Expand Fathom Events
Expand Fathom Events Fathom Consumer Fathom Business (41.6% revenue increase in 2009 and 36.8% (9.6% revenue decrease in 2009 and 2.6% increase in Q1 2010) revenue decrease in Q1 2010) • Live and pre-recorded entertainment • Meeting services for single-site meetings or programming multi-location net
Slide 13: Online Media Network Bundling Strategy
Online Media Network Bundling Strategy Providing Unique Integrated Digital Marketing Solutions Across Multiple Platforms • NCM.com and FATHOMEVENTS.com Re-launched April ’09 • Minimal capital requirements • Building traffic through use of unsold on-screen advertising inventory ─ Online Media Network
Slide 14: Financial Overview
Financial Overview
Slide 15: Ownership and Corporate Structure
Ownership and Corporate Structure (1) American Multi- Cinemark Holdings, Regal CineMedia National CineMedia, Inc. Cinema, Inc. Inc. (Cinemark; Holdings, LLC (NCM Inc; NASDAQ; (AMC) NYSE: CNK) (Regal; NYSE: RGC) NCMI) 18.2% 16.3% 24.8% 40.7% National CineMedia, LLC (NCM LLC) 1 As of April 1, 2010 15
Slide 16: Historical Operating Performance
Historical Operating Performance Total Attendees(1) Total Screens(2) (in millions) 800 20,000 17,313 16,803 17,076 643 667 575 15,265 546 16,000 14,081 600 474 12,000 10,766 400 266 261 8,000 6,045 6,565 200 4,000 0 0 2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009 Q12010 Ad Re
Slide 17: Historical Financial Performance
Historical Financial Performance (1) Revenues (2) Adjusted OIBDA ($ in$450 millions) ($ in millions) $370 $381 $375 $338 $250 $194 $197 $193 $276 $200 $300 $150 $147 $182 $190 $189 $138 $225 $187 $100 $50 $150 $95 $72 $0 $75 $25 2006 2007 2008 2009 $0 2002 2003 2004 2005 2006 2007 2008 2009 Excludin
Slide 18: Quarterly Revenue Variability
Quarterly Revenue Variability Revenue ($ in millions) $140 $118 $120 $112 $108 $98 $96 $100 $94 $93 $88 $87 $85 $84 $80 $73 $74 $74 $62 $63 $60 $41 $40 $20 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 % of Annual 15% 26% 27% 32% 18% 25% 29% 28% 17% 24% 29% 30% 20% 24% 25% 31% NA Revenue 200
Slide 19: Quarterly Adjusted OIBDA Variability
Quarterly Adjusted OIBDA Variability Adjusted OIBDA and Adjusted OIBDA Margin ($ in millions) $80 100% $65 $62 $64 $60 $56 80% $53 $52 $45 $47 $45 $42 $43 $39 $40 60% 58% $33 57% 58% 56% 57% $26 56% $27 54% 55% 53% 51% $21 49% 49% $20 40% $13 42% 38% 33% 37% 31% $0 20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 20: NCM, LLC Capitalization and Cash Flow
NCM, LLC Capitalization and Cash Flow NCM has reduced leverage as a result of improved Adjusted OIBDA performance ($ in millions) Q1 2007 (IPO) Q4 2009 March 29, 2007 December 31, 2009 Pro Forma NCM, LLC Cash & Cash Equivalents $9 $38 $80mm Revolver $51 $74 Term Loan B 725 725 Total Senior Secured D
Slide 21: Q&A
Q&A 21
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