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Annual Report 2020 LIONS GATE ENTERTAINMENT CORP. To Our Shareholders: We had a strong and successful year moving our Company forward in fiscal 2020 despite the extraordinary challenges of the global pandemic, creating lasting and incremental value across our film, television and Starz businesses. It was a year in which we added exciting new franchises to our content portfolio, extended a number of our major brands while cultivating new ones, renewed our key television series and continued the transformation of Starz into a valuable premium global streaming platform distinguished by the quality of its content, the focus of its offering and its unique ability to complement other services. Strong OTT Growth, Record Library Revenues Financially, we reported fiscal 2020 revenue of $3.89 billion, net loss attributable to Lionsgate shareholders of $188.4 million or diluted loss per share of $0.86, and adjusted net income attributable to Lionsgate shareholders of $124.3 million or adjusted diluted earnings per share of $0.56. Operating income was $2.8 million and adjusted OIBDA was $462.2 million in the fiscal year with cash flows provided by operating activities of $614.6 million and adjusted free cash flow of $348.7 million. We achieved stellar growth across several key metrics as the Company’s global paid streaming subscribers, including our STARZPLAY Arabia venture, grew to 10.6 million at the end of the fiscal year, a total that continues to grow. Starz reported a record 6.8 million paid domestic OTT subscribers at the end of the fiscal year, driven by strong sequential gains in the fourth quarter. Library revenues for the fiscal year reached a record $600 million in response to surging demand for content that continues to grow in value over time. When the pandemic hit in March, we quickly transitioned our non-essential employees to work safely from home, redeployed resources according to the areas of greatest need, ensured that our businesses were positioned to continue delivering premium quality entertainment to the large at home audience and took immediate steps to conserve cash in order to protect a healthy balance sheet. As a result, we were able to mitigate many of the adverse impacts of the pandemic and resulting economic downturn. We enter fiscal 2021 with protocols in place to operate successfully in the “new normal,” full pipelines of film and television content ready to resume production, and a complete re-imagining of all of our businesses that positions them to emerge from the current environment stronger than ever. Accelerating the Transformation of Starz Into A Global Streaming Leader When we bought Starz in December 2016, our goal was to combine our global content company with a premier distribution platform to amplify the reach of our respective businesses and capitalize on the opportunities afforded by a dynamic and disruptive environment. Less than four years later, we’ve created a thriving direct-to-consumer offering that reaches 10 million global subscribers, expanded what was once a domestic network into 50 countries around the world and transitioned our legacy business into an a la carte environment for which it is exceptionally well suited. During the year, we fulfilled our commitment to open the creative aperture at Starz, producing one of our best original programming slates ever. Domestically, the hit series Outlander achieved record ratings in its 5th season, reporting a 13% uptick from the prior year, and new series Hightown, from producer Jerry Bruckheimer, and P-Valley, from playwright Katori Hall, debuted to critical acclaim and strong ratings, driving record engagement on the Starz app. Both series have been renewed for their second seasons and look to become mainstays of our slate. When production resumes, we will finish shooting the next two series in the Power franchise, Power Book II: Ghost and Power Book III: Raising Kanan. They join a line-up of new series that includes the family drama Heels, set in the world of small town wrestling, the stylish and provocative Dangerous Liaisons, and the sexy and spirited comedy series Run The World, from Dear White People’s Yvette Lee Bowser, complemented by the eagerly-anticipated return of Stephen Soderbergh’s buzzworthy The Girlfriend Experience. At a time when many platforms continue to search for their identities in a crowded marketplace, Starz knows its brand, its audience and how to reach them with original, compelling, provocative series reflecting grown-up premium content at its best. 1 Internationally, our strategy of assembling Starz originals, iconic Lionsgate library content and best-in-class 3rd-party acquisitions continues to gain traction with consumers. We recently launched The Great, starring Elle Fanning and Nicholas Hoult, and Normal People, based on the runaway best-seller, to strong ratings, and we’re pleased to see that series like P-Valley are resonating in key international territories. We’re also beginning to complement our offering with local language productions as we put together a portfolio distinguished by its premium programming, exceptional curation and ability to connect with audiences in every territory. Building on our early mover advantage, we’ve launched with global streaming partners Amazon Prime and Apple and leading local distributors Vodafone, Orange, Virgin Media, Bell Media, Izzi & Rakuten. With over 5 million international subscribers, including STARZPLAY Arabia and Canada, we continue to track toward our target of 15 to 25 million international subscribers by 2025. STARZPLAY brings to an enormous market opportunity great content, a clear and focused strategy, a scalable platform and the ability to complement every kind of offering. And in a fast-changing world, our own path forward is evident. We’ve charted a course, funded it out of our own free cash flow, our growth is on schedule and outsized value creation is within our sights. Top Five Domestic Box Office Performance by Our Motion Picture Group, Driven By Strong Brands & Talent Relationships Turning to our film business, we ranked among the top five studios in domestic box office market share last year as we created exciting new franchises like Knives Out, which earned multiple Academy Award® nominations on its way to grossing more than $300 million at the global box office, and extended blockbuster brands like The Hunger Games, John Wick, and Now You See Me with highly-anticipated new installments. The next two chapters of the John Wick action franchise are already in the works with John Wick: Chapter 4 slated to hit theatres on Memorial Day weekend 2022. Now You See Me 3, bringing back the Four Horsemen, is currently being written by American Hustle’s Eric Warren Singer. And we’ve reassembled the Hunger Games creative team led by director Francis Lawrence to adapt author Suzanne Collins’ best-selling Hunger Games prequel, The Ballad of Songbirds & Snakes, into the franchise’s newest chapter. The book sold over half a million copies in its first week of release and has already fueled strong revenue growth for the Hunger Games titles in our library. Though our feature film production has been paused, the process of refilling our pipeline with signature properties has not as we move forward with the film adaptation of Judith Blume’s iconic bestseller Are You There, God? It’s Me, Margaret, the first time one of her books has been brought to the screen, and the adaptation of the blockbuster video game franchise Borderlands, starring Academy Award® winner Cate Blanchett and directed by Eli Roth. Our relationships with renowned and prolific content creators like Seth Rogen, Roland Emmerich, Jonathan Levine, Chad Stahelski and the Erwin Brothers continue to replenish our slate with additional titles distinguished by great talent, compelling stories and strong commercial appeal. There are a number of uncertainties surrounding when theatres will re-open, how quickly moviegoers will return and when production can safely resume. But our confidence in the future of our theatrical business is undiminished, bolstered by the continued demand for movies across every kind of platform, the quality and excitement of the content we bring to our audiences and distribution partners, the flexibility built into our diverse portfolio of movies, and our longstanding ability to pivot quickly and change with a changing world. Television Group Secures Renewal of Key Series, Setting Foundation for Long-Term Value Creation Our Television Group had a successful year in launching new series and keeping them on the air as Love Life, Zoey’s Extraordinary Playlist, Mythic Quest: Raven’s Banquet, Hightown and P-Valley all secured second season renewals from our network partners. Love Life, a romantic comedy starring Anna Kendrick, was the centerpiece of HBO Max’s first Emmy® campaign, Zoey’s resonated with NBC’s millennial online digital audience, Mythic Quest: Raven’s Banquet delivered one of the season’s most memorable episodes from quarantine, and Hightown and P-Valley illustrate the kind of premium, buzzworthy content we’re creating for Starz. 2 In last year’s letter we talked about our shift to a decentralized Television Group structure that relies on the prolific output of our production partnerships with world-class creators like 3 Arts Entertainment, Point Grey, BBC Studios, Courtney Kemp, the Tannenbaum Company and Paul Feig. That strategy continues to pay dividends, positioning us as a leading supplier of premium scripted programming to every part of the television ecosystem. Our collaboration with 3 Arts has already yielded three network series pickups and a pilot order with another dozen projects in development. Not only has our partnership reaffirmed our strategy of getting closer to talent, but 3 Arts has emerged as one of the pillars of our television production business. With Lionsgate and Starz fully integrated, our Television Group continues to place increasing emphasis on supplying premium programming to Starz, with more than 20 series on the air, in production or fast track development.

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