IMAX China Holding Inc · HKEX:1970
IMAX China — FY2021 Earnings Presentation
21 slides from IMAX China's earnings presentation, Feb 23, 2022
Slide 1: IMAX China Full-Year 2021 Financial Results
IMAX China Full-Year 2021 Financial Results Feb 23, 2022 ® IMAX 1 Corp.
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
Slide 3: 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
Slide 4: Strong Full-Year Results Underscore Growing Demand for IMAX
Strong Full-Year Results Underscore Growing Demand for IMAX Benefits from strong secular tailwinds …drive improving metrics across-the-board Strong Financials • Revenue of US$113 million and adjusted earnings of US$ Turnaround 42 million recovered to levels nearly in line with 2019 Blockbusterizatio
Slide 5: Strengthening Local Language Footprint on Rising Production Value and IMAX-friendly Genres
Strengthening Local Language Footprint on Rising Production Value and IMAX- friendly Genres IMAX China National Day Holiday Box Office IMAX China Box Office Market Share and Indexing(3) in Local Language Titles 180 168 160 4.7% 4.6% 140 128 120 3.6% 103 3.2% 100 2.5% 80 2.1% 58 1.9% 60 1.7% 35 40 40
Slide 6: 'Blockbusterization' in Content Consumption Drives Higher Indexing and Market Share for IMAX China
‘Blockbusterization’ in Content Consumption Drives Higher Indexing and Market Share for IMAX China IMAX China Box Office Market Share and Indexing(1) Average IMAX Opening Weekend Indexing of Major Hollywood Tentpoles in Hollywood Titles 13.7% 10.7% 10.0% 8.8% 8.6% 7.2% 6.6% 5.7% Dune (24% indexing)
Slide 7: Strong Pipeline of Tentpole Releases in 2022
Strong Pipeline of Tentpole Releases in 2022 Doctor Jurassic The Strange Unchartered Batman World 3: In The Multiverse Dominion China: 14 March 2022 China: 18 March 2022 of Madness June 2022 May 2022 Black Thor: Love Panther 2: Avatar 2 and Thunder Wakanda Dec 2022 July 2022 Forever Nov 2022 Heavy i
Slide 8: IMAX Technology Empowers Blockbuster Filmmaking
IMAX Technology Empowers Blockbuster Filmmaking 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) The Battle at Lake Changjin (Oct 2021) Detective Chinatown 3 (Feb 2021) • IMAX expa
Slide 9: Promising Pipeline of Potential Local Language Titles
Promising Pipeline of Potential Local Language Titles Watergate Mozart From Wandering Creation of the Bridge Space (2) Earth Gods I (3)2 (1): Sequel to The Battle at Lake Changjin (2): Filmed in IMAX Note: Release schedule of the abovementioned titles in China to be determined. Multiple blockbuster
Slide 10: Chinese Film Makers Embrace IMAX Technology
Chinese Film Makers Embrace IMAX Technology Director Lu Yang (A Writer’s Odyssey) and Director of Cinematography Cao Yu (The Eight Hundred) at IMAX No Time To Die screening We expect more and more directors and producers to embrace the IMAX technology to differentiate their films Full-Year 2021 Fina
Slide 11: 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 1 215 215 392 111 280 As of December 31, 2021 Note 1: As of Dec
Slide 12: Favorable Policy Support
Favorable Policy Support No. of Cinema Screens per 100,000 Population Highlights from the 14th Five-Year Development Plan Published by China Film Bureau 90 14.0 82 80 12.4 76 12.1 12.0 • Target at least 100,000 screens by 2025 70 70 60 60 10.0 • Maintain at least 55% industry box office contribution
Slide 13: IMAX China's Premium Network is Well-insulated From Any Potential Industry Consolidation
IMAX China’s Premium Network is Well-insulated From Any Potential Industry Consolidation Box Office Market Share of IMAX’s Top Five Exhibitor Partners 25.0% IMAX China FY21 GBO by Multiplex Cohort 6% Top 5% 24.0% 3% Top 6-10% 23.3% Top 11-15% 23.0% 9% 23.0% Top 16-20% Below top 20% 22.0% 22.0% 21.8%
Slide 14: Strong 2H2021 provides momentum into 2022
Strong 2H2021 provides momentum into 2022 $ in Millions 2H Revenue 2H Gross Margin 2H Adjusted Net Income 2H Adjusted EBITDA $55.0 65.0% $30.0 34.3% 35.0% 59.1% 60.0% 30.3% 1.6x 30.0% $45.0 $65.0 54.7% $25.0 55.0% $59.4 $35.6 51.2% 23.9% $20.3 25.0% $33.0 $35.1 $19.7 $30.8 $35.0 50.0% $20.0 $45.7 20
Slide 15: Strong Financials Turnaround
Strong Financials Turnaround • FY21 total revenue of US$112.8 million, up from US$52.3 million in FY20 • Technology network revenue of US$39.4 million, up from US$15.3 million in FY20 driven by box office recovery to US$239.5 million and higher take-rate of 16.4% on higher local language contributio
Slide 16: 2021 Segment Details: Technology Network
2021 Segment Details: Technology Network IMAX Technology Network Revenue sharing arrangements – contingent rent Network revenue of $39.4 million, up from $15.2 Film Revenue million in 2020 $ in Millions • Greater China box office of $239 million, up from $99 2.6x million in prior year period $39.4 •
Slide 17: 2021 Segment Details: Technology Sales & Maintenance
2021 Segment Details: Technology Sales & Maintenance IMAX Technology Sales & Maintenance Sales & maintenance revenue of $73.0 million, up from $36.9 Others Theatre system maintenance million in 2020 Revenue sharing arrangements – upfront fees Sales & Sales-type lease arrangements • 57 installations
Slide 18: Network Update
Network Update Backlog Signings and Installations 251 JV upgrade Sales upgrade 2021 8 215 Full Revenue Sharing 5 Hybrid Revenue Sharing Total Signings Total Installations Sales / Sales Type Lease 42 8 2 Sales and STL 9 20 36 Revenue Sharing Arrangements Hybrid 0 9 114 JV 9 15 100 Upgrades 2 5 Reloca
Slide 19: 2021 Financial Summary
2021 Financial Summary $ in Millions Revenue Operating Expenses1 Adjusted EBITDA Adjusted Net Income $112.8 $66.8 $41.7 $25.8 $73.0 $15.1 $52.3 $10.9 $6.1 $3.9 $36.9 $39.4 $13.0 $7.8 $11.0 $15.2 2020 2021 2020 ($4.0) 2020 2021 2021 ($4.6) 2021 2020 New Business Initiatives & Others Provisions on rec
Slide 20: Shareholder Return
Shareholder Return Dividend trend Dividend earnings payout % Dividend amount declared $ in Millions Committed to increase shareholder return with a 50% strong balance sheet, sustainable cash flow and 33% 33% 33% earnings growth • Increased dividend payout ratio from 33% to 50% for FY22 • Returned a
Slide 21: Full-Year 2021 Financial Results
Full-Year 2021 Financial Results IMAX® is a registered trademark of IMAX Corporation. 21