National CineMedia, Inc. · NASDAQ:NCMI
National CineMedia — Investor Presentation (November 2009)
22 slides from National CineMedia's investor presentation, November 2009
Slide 1: Investor Presentation
Investor Presentation November 2009
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 (89.1% )(1) Meeting & Events (10.9% )(1) “First Look” branded, on-screen Live and pre-recorded Live and pre-recorded concerts, pre-feature entertainment and meetings, corporate events and marketing eve
Slide 4: Attractive Advertising Medium
Attractive Advertising Medium 2008 total U.S. advertising spending (1): $284 billion Cinema is ≈ 0.20% of total U.S. Cinema Advertising Market (2) Advantages of Cinema Advertising ’02-’08 $571 • Growth opportunity as media budgets shift CAGR: 21% $540 from traditional to digital platforms ($ in mill
Slide 5: Higher Impact Impressions
Higher Impact Impressions(1) 6% Pay full attention to commercials 34% Talk with others in the room or are on the phone during commercials 30% Mentally tune-out 41% commercials Channel surf during commercial breaks 65% of U.S. DVR users ALWAYS SKIP TV commercials Cinema advertising is approximately 4
Slide 6: Significant Geographic Reach
Significant Geographic Reach ≈ 16,800 screens(1) ≈ 675 million attendees/year(2) Reaching ≈ 93% digitally Market Share of U.S. Attendance Viewing Ads (3) Top 10 DMAs ≈ 70% Top 50 DM As ≈ 62% All DM As ≈ 57% (1) Current Network has 16,805 screens as of October 1, 2009. (2) Based on 2008 attendance. I
Slide 7: 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 7
Slide 8: Broaden Client Base: Recent Client Wins
Broaden Client Base: Recent Client Wins 8
Slide 9: Broaden Client Base: Opportunities
Broaden Client Base: Opportunities Retail Packaged Goods QSRs Finance Expansion into new and underpenetrated categories helps drive revenue growth, increase inventory utilization, and reduce quarterly revenue volatility 9
Slide 10: National Advertising Growth
National Advertising Growth 2006 2007 2008 Expand Utilization • 78% • 87% • 80% Expand Impression Base • ~540 mm attendees • ~575 mm attendees • ~643 mm attendees Grow CPMs • Increased 1.6% • Increased 13.4% • ~30% variation in • ~30% variation in monthly CPM monthly CPM Increase National Revenue(1)
Slide 11: Strengthen Digital Network
Strengthen Digital Network NCM offers a consolidated buy with the Screenvision offers a fragmented buy of nation’s three largest theatre circuits (1) and 150+ smaller circuits seven affiliate circuits Kerasotes joined NCM in January ‘08 Hollywood joined NCM in April ‘08 AMC/Loews joined NCM in June
Slide 12: Expand Meetings & Events
Expand Meetings & Events CineMeetings Fathom • Meeting services for single-site meetings or • Live and pre-recorded entertainment multi-location networked events programming • Expected to benefit from growing network • National scale, local marketing activation • Virtually unlimited inventory • Busi
Slide 13: Future Growth Engines: Internet Bundling Strategy
Future Growth Engines: Internet Bundling Strategy Providing Integrated Marketing Solutions Across Multiple Platforms • Launched April 2009 • Minimal capital requirements • Leverages NCM’s existing: –High quality national and local sales organization –Talented creative and media production organizati
Slide 14: Financial Overview
Financial Overview 14
Slide 15: Historical Operating Performance
Historical Operating Performance Total Attendees(1) Total Screens(2) (in millions) Ad Rev / Attendee $0.25 $0.32 $0.36 $0.45 $0.54 $0.51 Ad Rev / Screen (3) $11,138 $13,259 $16,303 $20,123 $21,903 $20,259 1. 2005 attendees includes 37.3 million AMC Q1 attendees. 2. Screen counts as of year end. 3. R
Slide 16: Historical Financial Performance
Historical Financial Performance (1) Revenues (2) Adjusted OIBDA ($ in millions) ($ in millions) $197 $194 $147 Excluding Integration payments Integration Paym ents Capital Expenditures Adjusted OIBDA Margin ($ in millions) % of Rev 10% 2% 3% 4% 2% 4% 5% 60% 53.9% 50.2% 51.3% 50% $7.5 40% $7.1 30% $
Slide 17: Strong Advertising Revenue Growth
Strong Advertising Revenue Growth Advertising Contract Value (1) ($ in millions) $330.3 $309.5 $250.0 $203.7 $155.6 $135.1 $90.7 2002 2003 2004 2005 2006 2007 2008 (1) Advertising contract value defined as total amount of advertising revenue plus legacy contract value. Note: 2002-2004 include combin
Slide 18: Recent Performance
Recent Performance Advertising Revenue (excluding Beverage) ($ in millions) $204.9 $196.3 $88.6 $79.7 $73.6 $64.2 $43.5 $51.7 08 09 08 09 08 09 08 09 Q1 Q2 Q3 YTD thru Q3 Solid YTD growth relative to other Advertising mediums 18
Slide 19: Quarterly Adjusted OIBDA Variability
Quarterly Adjusted OIBDA Variability Adjusted OIBDA and Adjusted OIBDA Margin ($ in millions) $80 100% $64 $62 $60 $56 80% $53 $52 $45 $47 $45 $42 $43 $39 $40 60% 58% 57% 58% 56% 57% $26 56% $27 54% 53% 51% $21 49% 49% $20 40% $13 42% 37% 33% 31% $0 20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 %
Slide 20: NCM, LLC Capitalization and Cash Flow
NCM, LLC Capitalization and Cash Flow NCM has reduced leverage as a result of improved Adjusted OIBDA performance ($ in millions) Q1 2007 (IPO) Q3 2009 March 29, 2007 October 1, 2009 Pro Forma NCM, LLC Cash & Cash Equivalents $9 $45 $80mm Revolver $51 $74 Term Loan B 725 725 To tal Senior Secured De
Slide 21: 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) 18.5% 15.0% 25.0% 41.5% National CineMedia, LLC (NCM LLC) 1 As of October 1, 2009 2
Slide 22: Q&A
Q&A 22
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