Roadshow Presentation
September 2015 Disclaimer
37 This document is not for public dissemination and is for the exclusive use of the persons to whom it is addressed and their advisers in connection with IMAX China Holding, Inc. (the "Company", together with its 18 subsidiaries, hereinafter referred to as the "Group"). It is being made available by the Company, to a limited number of recipients. The contents of this document have not been reviewed by any regulatory authority in 116 any jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and into whose possession this document comes should inform themselves about, and observe such restrictions. This document is not intended to form the basis of any investment decision. It does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities in any jurisdiction in which the making of such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction or would not otherwise be in compliance with the laws and 85 regulations of such jurisdiction, and nothing contained herein shall form the basis of any investment decision, contract or commitment whatsoever. Any decision to purchase securities of the Company in any public or private offering should be made solely on the basis of the prospectus and international offering circular to be prepared by the Company in relation to any such contemplated offering together with any supplementary 76 pricing information. This document contains no information or material which may result in it being deemed (1) to be a prospectus within the meaning of section 2(1) of the Companies (Winding Up and Miscellaneous 196 Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong), or an advertisement or extract from or abridged version of a prospectus within the meaning of section 38B of the Companies (Winding Up and Miscellaneous Provisions) Ordinance or an advertisement, invitation or document containing an advertisement or invitation falling within the meaning of section 103 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) or (2) in Hong Kong to have effected an offer to the public without compliance with the laws of Hong Kong or being able to invoke any exemption available under the laws of Hong Kong and is subject to material change without notice. 156 This document and the information contained herein are strictly confidential. Neither this document nor its contents may be distributed, published, reproduced or disclosed to any other person, or referred to publicly, or 151 used for any other purpose, in whole or in part, at any time without the prior written consent of the Company, Morgan Stanley Asia Limited ("Morgan Stanley"), Morgan Stanley & Co. International plc (“MSCI”), 221 Goldman Sachs (Asia) L.L.C. (“Goldman Sachs”) and China International Capital Corporation Hong Kong Securities Limited (“CICC”, together with Morgan Stanley, and Goldman Sachs, the "Joint Bookrunners"). Upon request by the Company, MSCI or any of the Joint Bookrunners, the recipient will promptly return this document and all information made available in connection with this document, without retaining any copies. A document containing information of the Company (the "Application Proof"), which is in draft form and may be incomplete or subject to material change, is publicly available.
178 The information in this document has been provided by the Company solely for your information. This document does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate the Group. Certain factual or predictive statements in the document are derived from external sources and have not been independently verified by the Company. No representation or warranty, express or 178 implied, is given and, so far as is permitted by law and except in the case of fraud, no responsibility or liability (in negligence or otherwise) is accepted by any person (for the avoidance of doubt, including but not limited 178 to, the Company, MSCI, the Joint Bookrunners and their respective directors, officers, employees, affiliates and their respective advisers or representatives), with respect to the accuracy, reliability, correctness, fairness or completeness of this document or its contents or any oral or written communication in connection with the contents contained in this document. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates, forecasts contained in this document. None of the Company, MSCI, the Joint Bookrunners and their respective directors, officers, employees, affiliates and their respective advisers or representatives shall have any liability in respect of the use of, or reliance upon, the information contained 204 herein by you or any person to whom the information herein is disclosed. In all cases, interested parties should conduct their own investigation and analysis of the Group and the data contained in this document. Only 204 those representations and warranties contained in a definitive agreement shall have any legal effect. 204 In connection with this document, none of the Company, MSCI and the Joint Bookrunners undertakes any obligation to provide any additional information or to update this document or any additional information or to correct any inaccuracies which may become apparent. This document does not create an obligation on the Company to consider any offer. The provision of the information contained herein shall not be or be taken as any form of commitment on the Company, on MSCI, on the Joint Bookrunners or on you to proceed with the proposed placing or offering of shares in the Company.
221 You acknowledge and represent to the Company, MSCI, the Joint Bookrunners and their respective advisers that you are a professional investor within the meaning of the Securities and Futures (Professional Investor) 221 Rules (Cap 571D), and have the knowledge, experience and capability to conduct your own assessment of the Company and its securities and that you have and will conduct your own investigation with respect to the Company and its securities and have obtained or will obtain your own independent professional advice relating to the investment in the securities of the Company. 221 The securities of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or under the laws of any state of the United States. This document does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States and is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). The securities of the Company will only be offered or sold a) in the United States solely to qualified institutional buyer within meaning of Rule 144A under the U.S. Securities Act pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act or b) outside the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act.
There will be no public offer of the Company’s securities in the United States.
2 Offering Summary
37 Issuer IMAX China Holding, Inc. ("IMAX China" or the "Company") 18 Transaction Initial Public Offering (“IPO”) 116
Listing Exchange Stock Exchange of Hong Kong (“SEHK”) 85 Pre-Greenshoe: 62.0MM shares (17.8MM shares primary / 44.2MM shares secondary); 17.4% pro-forma TSO Offering Size 76 Post-Greenshoe: 71.3MM shares (17.8MM shares primary / 53.5MM shares secondary); 20.1% pro-forma TSO 196 Proposed Price Range HK$29.80 – HK$34.50
156 Pre-Greenshoe: 28.8% Primary / 71.3% Secondary Primary / Secondary 151 Post-Greenshoe 25.0% Primary / 75.0% Secondary 221 Greenshoe 15% Base Offering (100% Secondary)
178 Distribution 144A / Reg S 178 Offering Structure 90% International / 10% Hong Kong 178 The Company — 6 months IMAX Barbados and IMAX Corporation — 6 month absolute lock-up and 6 month lock-up on disposal of Shares that would 204 Lock-up result in them ceasing to be a controlling shareholder 204 FountainVest and CMC — 6 months Cornerstone Investors — 6 months 204 Selling Shareholders IMAX Barbados, FountainVest, CMC
221 Procurement of IMAX theatre systems for revenue sharing arrangements (40%) 221 Building up inventory of IMAX theatre systems (20%) Use of Proceeds Investments complementary to the Company’s business including exploring the possibility of establishing a film fund (15%) 221 Building a DMR conversion facility (15%) Working capital and other general corporate purposes (10%)
Cornerstone Investors Commitment of US$55MM including TCL, China AMC, Davidson Kempner, Myriad and Hutchin Hill
Sole Sponsor and Sole Global Coordinator Morgan Stanley
Joint Bookrunners Morgan Stanley, Goldman Sachs, CICC
Expected Pricing Date September 30, 2015
3 Presenters
37 18 116
85 76 196 Richard Gelfond 156 Chairman and Non-executive Director 151 Experience 221 4 years at IMAX and [12] years of industry experience 178 178 178
204 204 Jiande Chen Jim Athanasopoulos Chief Executive Officer Chief Financial Officer and Chief Operating Officer 204
221 221 221 [To be Provided]
Mei-Hui Chou (Jessie) Don Savant Chief Marketing Officer and President, Theatre Development and Film Distribution Head of Human Resources
4 ®
Section 1
Who We Are IMAX Stands for
37 18 116
85 76 196
156 151 221
178 178 178
204 204 204
221 221 221
6 Leading Cinematic Technology Provider in Greater China
37 18 116 Exclusive licensee of the IMAX brand in the theatre and films business in Greater 85 China with access to global partnerships 76 196
156 Sole commercial platform for the release of IMAX format films in Greater China, 151 which is the second largest and fastest growing major cinema market in the world 221
178 178 178 One of the strongest entertainment brands in Greater China (1)
204 204 204 Unique cinematic experience and end-to-end cinematic solution 221 221 221 Largest non-conventional theatre network with highest average box office per screen in Greater China and significant ticket price premium
Note 1. According to a survey conducted by Milward Brown Research 7 Integral Part of the Greater China Film Industry with 15-year Presence
37 18 Avatar 116 grossed Signed agreement with Furious 7, Achieved US$24.0MM Wanda Cinema for 120 Avengers and on 14 IMAX US$24.0MM 85 theatre systems, Jurassic World box office screens st rd representing 69% of total ranked 1 , 3 and revenue 76 th theatres then in operation 4 top grossing film exhibiting 196 IMAX Corporation’s operations in Greater China prior to of all-time in the Avatar on only establishment of IMAX China in 2010 PRC (1) 14 screens Installed our 100th Avatar ranked 156 theatre in Greater China 4th imported and ended the film of all-time 151 IMAX Corporation Released first year with 128 theatres in in the PRC (1) established its Chinese 221 Greater China 2015 representative office in language Shanghai Entered into a partnership IMAX format 2014 178 with Huayi Brothers film, Aftershock: 2013 178 The IMAX 178 Experience 2012 234 theatres in Opened first theatre – Greater China; Shanghai Science 2011 Transformers: Age of 204 and Technology Museum Extinction ranked 2nd 204 2010 top grossing film of 204 all-time in the PRC; The Monkey 2009 King is one of the top grossing Chinese language films for IMAX 221 2007 Signed first hybrid Entered into a joint revenue revenue sharing sharing agreement for the 221 2003 agreement with CJ lease of 75 theatres in CMC and FountainVest 221 CGV Greater China with Wanda collectively subscribed for an 2001 Cinema, our largest deal to aggregate of 20% of the shares in date IMAX China
Opened first Signed first agreement commercial with Wanda Cinema IMAX theatre Monster Hunt, a Chinese language Establishment of in the PRC film released in July 2015 and IMAX China shown on 216 IMAX screens across the PRC became the highest grossing IMAX film in the
Note PRC, surpassing The Monkey King 1. As of June 30, 2015 8 Unique Business Model with Strong and Successful Long- term Partnerships
37 18 116 Business Model Overview 30+ Exhibitors with 30+ Exhibitors with 10+ Year Relationships 85 Theatre Business 76 10+ Year Relationships 196 Design, procurement and provision of premium digital theatre systems 156 Provision of related project management 151 and ongoing maintenance services 221 Leading Producers, Sales or revenue sharing arrangements 178 with our exhibitor partners 178 Directors and Studios in 178 Greater China
Film Business 204 Large Commercial Real 204 Estate Developers Digital re-mastering of Hollywood and 204 Chinese language films into IMAX films through proprietary DMR conversion 221 221 Receive a portion of box office from our 221 studio partners for exhibition of IMAX films
Leading Producers, Large Commercial Real Estate Directors and Studios Developers
9 Complete End-to-end Cinematic Solution
37 18 116 Film Sourcing Enhancement Presentation
85 Studio Capture with Proprietary Hardware & Geometry 76 Relationships IMAX Cameras 196
156 151 221
178 178 178
204 Filmmaker DMR & Real-time 204 Relationships Post-production Marketing Quality Assurance 204
221 221 221
10 ®
Section 2
Industry Overview Strong and Sustainable Growth with Significant Potential for Further Penetration…
37 18 116 Number of Theatres and Screens in the PRC Per Capita Film Attendance
85 Screens: No. of Visits per Annum 76 Screens: 18.2% 196 40.4%
156 151 221 Source: EntGroup Box Office in the PRC and the U.S. Per Capita No. of Screens 178 178 US$Bn 35.2% No. of Screens per 100,000 People 178 30.7% 204 1 204 /8 204 Source: EntGroup
221 221 2014 – 2017E Box Office CAGR Significant Growth Potential from Lower Tier Cities 221 % 2014 PRC Box Office Revenue 2014 PRC Population Tier 1 Cities Tier 1 Cities Tier 2 Cities 11.7x Tier 3 and 4 Cities Tier 2 Tier 3 and Cities 4 Cities
10-14A CAGR 14-17E CAGR 12 …Supported by Favorable Regulatory Environment
37 18 116 Gradual Liberalization Chinese Language Films Box Office Revenue 85 The film import quota increased from 20 to 34 (14 US$Bn 76 extra films must be either 3D or IMAX format) in 2012 Favorable Regulatory Environment 196 Import quota will be re-negotiated in 2017 156 151 221 Favorable Subsidies
178 Theatres: tax refunds proportionate to Chinese 178 language film box office % 178 Studios: subsidies proportionate to box office 204 performance for Chinese language films 204 204 PRC Regulatory Framework 221
221 No of • SARFT 91 320 N/A 221 Films: • China Film Bureau Diversification in Genres • China Film Import / Export Corporation Increasing Recognition Internationally • China Film Group
Source: EntGroup Increasing Investments in PRC Film Production
13 PRC Film Exhibition and the Private Label Theatre Market
37 IMAX Box Office Revenue 18 No. of IMAX Commercial Screens in the PRC 116 in the PRC US$MM 183 85 221 204 162 76 196 129 140
156 98 81 151 221
178 178 2012 2013 2014 1H15 2012 2013 2014 1H15 178 Number of Non-conventional Market Share by Box Office in Significant Premium in Per 204 Screens in the PRC (1) 2014 Screen Average 204 Average Box Office Revenue per Screen in 2014 (US$000s) 204 204
IMAX China 1,194 221 (2) 221
221 China Film 73 457 Giant Screen
32 28 Other PRC Non-conventional 405 IMAX China Film X-land 4DX Theatres China Giant Screen 0 375 750 1,125 1,500 Source: EntGroup
Note 1. Data per EntGroup as of December 31, 2014 2. Others include X-land and 4DX 14 Hollywood Blockbusters in IMAX Format
37 18 116 17 Out of Top 20 Highest Grossing Imported Films of All-time in the PRC (1) 85 76 US$MM
196 Furious 7 391.3 Transformers: Age of Extinction 318.8 156 Avengers: Age of Ultron 236.1 151 Jurassic World 229.0 221 Avatar 216.1 Transformers 3 172.9 Titanic 3D 178 152.6 Interstellar 125.8 178 Iron Man 3 121.8 178 The Hobbit: The Battle of the Five Armies 117.5 X-Men: Days of Future Past 116.6 204 Captain America: The Winter Soldier 115.9 204 Dawn of the Planet of the Apes 114.2 204 Pacific Rim 112.1 Mission Impossible 4 108.4 221 San Andreas 101.5 221 Kung Fu Panda 2 98.7 Guardians of the Galaxy 96.2 221 The Amazing Spider-Man 2 94.4 Life of Pi 92.4 0 50 100 150 200 250 300 350 400 450 Released in IMAX Format
Source: EntGroup Box Office Tracker
Note 1. As of June 30, 2015 15 ®
Section 3
Investment Highlights Key Investment Highlights
37 18 116 Strong Entertainment Brand in the Large and Fast-growing 1 85 Greater China Market 76 196 Strong Slate of Hollywood Films Complemented by a Growing Portfolio 2 (1) 156 of Chinese Language Films 151 221 Unparalleled Network Supported by Strong Exhibitor Partnerships and 3 178 Solid Backlog 178 178 Leading IMAX Theatre System and Technology Delivering a Unique 4 Cinematic Experience and an End-to-End Cinematic Solution 204 204 204 Significant Value Creation Across the Film Industry for Exhibitors, 5 Studios, Filmmakers and Commercial Real Estate Developers 221 221 221 6 Experienced Management Team Supported by Prominent Shareholders
Note 1. Hollywood films include all imported films subject to the annual quota imposed by PRC government 17 Strong Entertainment Brand in the Large and 1 Fast-growing Greater China Market
37 18 116
85 Highest brand awareness as acknowledged by 100% 76 (1) 196 of surveyed audience
156 151 221 (1) High visit frequency with 76% of surveyed audience 75.5% 178 in attendance in 2014 178 178
204 204 (2) 204 Average ticket price of US$11 in 2014, a 90% price premium over average PRC film market 89.7% 221 221 221
17 out of top 20 highest grossing imported films of all time are IMAX films (2) (3) Source: EntGroup
Note 1. According to a survey conducted by EntGroup in March 2015, IMAX is the most well-known non-conventional cinema technology brand in the PRC 2. In the PRC 3. As of June 30, 2015 18 Strong Slate of Hollywood Films Complemented by a 2 Growing Portfolio of Chinese Language Films Left side – [] out of [] in 37 18 2015 116 Of the 33 Hollywood films released in the PRC in Offers higher % of box office revenue and
85 2014, 22 were released in IMAX format supplements Hollywood films portfolio 76 196
156 151 HOLLYWOOD FILMS CHINESE LANGUAGE FILMS 221
178 178 178
204 204 Transformers: Furious 7 The Monkey Monster Hunt 204 Age of Extinction King
221 221 221
Flying Swords of the Dragon Blade Avengers: Jurassic World Dragon Gate Age of Ultron
19 Unparalleled Network and Backlog across Greater China 3 Supported by Long-term Repeat Exhibitors Partnerships
37 18 116
85 Long-term Repeat Exhibitors Partnerships 76 251 IMAX theatres 196 in Greater China Relationship No. of IMAX Backlog 239 IMAX theatres Since Theatres 156 with a further 217 theatres 151 (1) Wanda Cinema 2007 124 85 With a further 219 theatres 221 in our backlog in our backlog (1) across 94 cities 178 CJ CGV 2010 19 56 178 178 across 122 cities 1,000 Potential IMAX Shanghai Film Corporation / Zones 2003 7 21 204 Shanghai United 204 Circuit 204
221 Jinyi Cinemas 2009 15 3 221 221 Omnijoi / 2011 8 8 Blue Ocean
Total (1) 173 173 IMAX Theatres in Operation
Note 1. As of June 30, 2015; Includes years of relationship with IMAX Corp in Great China prior to the Company’s establishment 20 Leading IMAX Theatre System and Technology Delivering a Unique 4 Cinematic Experience and an End-to-end Cinematic Solution
37 SPECIALIZED 18 116 ACOUSTICS 85 AND SOUND 76 SYSTEM 196
156 151 LARGE 221
178 SCREEN 178 HIGH- 178 RESOLUTION 204 204 IMAGE 204 FOUR-FOLD
221 REDUCTION QUALITY 221 IN BACKGROUND NOISE 221
21 Significant Value Creation Across the Film Industry for 5 Exhibitors, Studios, Filmmakers and Commercial Real Estate Developers
37 18 Strong Network Effect as IMAX Theatre Network Expands 116
85 Theatre Exhibitors Studios and Filmmakers 76 196 Immersive Motion Broad Release Premium Pricing Higher Attendance Picture Platform 156 151 221 • 36 out of 40 theatre signings in 2014 • 24 out of 28 IMAX films in 2014 with
178 with existing exhibitor partners existing studio partners in the PRC 178 178
204 204 204
221 221 Commercial Real Estate Developers 221 • 7 out of top 10 largest shopping malls in the PRC had an IMAX theatre in 1H15 (1)
Note 1. By gross floor area; as of June 30, 2015 22 Experienced Management Team Supported by Prominent 6 Shareholders
37 18 Board of Directors 116 • Chief Executive Officer of IMAX since 1994 Richard Greg Foster RuiGang Li Yue-Sai Kan John Davison Dawn Taubin • Responsible for turning China into IMAX’s fastest-growing market in the world Gelfond RICH GELFOND 85 Non-executive Non-executive Independent Non- Independent Non- Independent Non- • Honored by National Committee on U.S.-China Relations in 2013 for his success Non-executive Director Director executive executive executive [To be Chief Executive Officer 21 Provided] in advancing Western entertainment business in China 76 Director and Director Director Director 196 Chairman • Chairman of the Board of Directors of IMAX China
Experience Experience Experience Experience Experience Experience • Chief Executive Officer of IMAX Entertainment and Senior Executive Vice President of IMAX 156 GREG FOSTER 21 years at IMAX and 14 years at IMAX and Founding Chairman of Established Yue-Sai Chief Financial Officer Former Chief Marketing since 2013 Chief Executive Officer, IMAX Entertainment 151 industry experience 22 years of industry China Media Capital Kan Productions and Executive Vice Officer of DreamWorks 14 • Previously held senior positions at MGM/UA and other entertainment companies experience President of Four Animation Senior Vice President, IMAX 221 Sold Yue-Sai, a Seasons Holdings Inc. • Member of the Board of Directors of IMAX China Chinese cosmetics Former President of business, to L’Oreal in Marketing at Warner 2004 Bros Pictures 178 • Chief Legal and Business Development Officer since 2012 R O B L I S T E R 178 Experienced Management Team • Member of the Board of Directors of IMAX China Chief Legal Officer 16 178 Chief Business Development Officer • Chairman of the Board of Directors of TCL-IMAX, the Company’s joint venture in China Jiande Chen Jim Don Savant Mei-Hui Michelle Rosen Honggen to manufacture and sell premium home-theatre systems around the world Athanasopoulos Chou (Jessie) Yuan Chief Executive President, General Counsel 204 Officer Chief Financial Theatre Chief Marketing Senior Vice 204 Executive Director Officer and Chief Development and Officer and Head President, Operating Officer Film Distribution of Human Theatre 204 Executive Director Resources Development Executive Director Experience Experience Experience Experience Experience Experience 221 4 years at IMAX and 15 15 years at IMAX, 4 15 years at IMAX, 17 9 years at IMAX and 18 7 years at IMAX and 14 years at IMAX and 221 years of industry years at IMAX China years of industry years of industry industry experience industry experience experience and industry experience in China experience 221 experience and 20+ years of industry experience
Prominent Shareholders
23 ®
Section 4
Growth Strategy Key Strategies and Goals
37 18 1 2 116 Increase the Number of Revenue 85 Expand the IMAX Theatre Network in Sharing Arrangements with Our 76 the PRC 196 Exhibitor Partners
156 151 221
178 6 3 178 Leverage the IMAX Brand to Develop 178 and Invest in Complementary Strengthen Our Cooperation with
204 Businesses and Establishment of a PRC Studios and Filmmakers 204 China Film Fund 204
221 221 221 5 4
Continue to Invest in the IMAX Brand Maintain our Position as the Provider in Greater China of Leading Cinema Technology
25 ®
Section 5
Financial Highlights Theatre
Rapid Network Expansion
37 18 116 Number of Theatres Number of Installations
85 76 196 2012–2014 2012–2014 251 156 CAGR 62 CAGR 24.5% 234 151 31 221 25 188.7% 15 123.6% 186 173 178 14 45 10 109 102 40 178 41.4% 7 128 178 80 3 3 75 27 13.4% 204 51 204 21 24 18 204 107 20.2% 111 88 92 74 13 6 221 20 11.8% 4 16 7 221 14 5 2012 2013 2014 1H14 1H15 221 4 5 Sales Full Revenue Sharing 2012 2013 2014 1H14 1H15 Hybrid Revenue Sharing Sales Full Revenue Sharing Per Screen Average Box Office of US$1.2MM Hybrid Revenue Sharing in 2012–2014, US$0.8MM in 1H15
27 Robust Revenue Growth
37 18 116 Theatre Business Revenue Film Business Revenue
85 US$MM 2012–2014 US$MM 76 CAGR 196
156 151 29.1% 221
178 178 76.7% 178
204 204 204 6.4% 221 221 221
Number 21 28 29 16 17 Hollywood(1) of Chinese Films 4 5 6 2 2 Language
Note 1. Includes Hollywood films in Hong Kong and Taiwan 28 Expanding Margins
37 18 116 Gross Profit Adjusted EBITDA(1)
85 US$MM % Margin US$MM % Margin 76 196 46.5 69.6% 156 64.4 151 40.9 61.2% 59.4% 221 57.6%
52.2% 53.5 53.6 178 32.2 30.6 178 29.9 52.3 178 49.3 28.3 24.3 204 23.0 204 204 17.1 14.9 221 221 221
2012 2013 2014 1H14 1H15 2012 2013 2014 1H14 1H15
Note 1. Adjusted EBITDA consists of profit for the year adjusted for income tax expense, depreciation and amortization, the impact of share-based compensation, non-cash accretion of amortized cost of the Redeemable Class C Shares, fair value adjustment of conversion option and any write down or recoveries 29 Significant Operating Leverage
37 18 116 Adjusted Net Profit(1) Capital Expenditure
85 US$MM % Margin US$MM % Revenue 76 41.7 196 34.5 30.8 156 32.5 33.2 30.9 151 28.2 22.5 19.2 221 26.0 17.3 16.1 178 15.0 178 18.2 18.3 178
9.9 204 13.2 204 204 8.6
221 221 221 2012 2013 2014 1H14 1H15 2012 2013 2014 1H15 (1) Adjusted Net Profit % Margin
Note 1. Adjusted net profit consists of profit for the year adjusted for the impact of share-based compensation, non-cash accretion of amortized cost of the Redeemable Class C Shares, fair value adjustment of conversion option and the related tax impact 30 ® Extensive Backlog
37 18 116 217 217 85 76 43 65 196
156 151 221 86
174 178 178 178 66 (1) 204 204 By Type of Arrangements (2) By Period of Installation (2) 204 Sales Full Revenue Sharing Agreement Hybrid Revenue Sharing Agreement 2015E-2018E 2019E-2021E 221 221 221 As of June 30, 2015, 30.2% of backlog is in Tier 1 and 2 Cities, and 30.7% in Tier 3 and 4 Cities. The remaining backlog is currently undetermined As of June 30, 2015, Wanda Cinema has 44.9% of total IMAX theatres in operation and in backlog; CJ CGV 16.1%; Shanghai Film Corporation 6.0%; Jinyi Cinemas 3.9%
Note 1. Includes 2 theatres in Hong Kong and 4 theatres in Taiwan 2. As of June 30, 2015 32 Top IMAX Films in the PRC
37 18 Transformers: #1 Titanic 3D #1 Pacific Rim #1 116 Age of Extinction
85 #2 Mission Impossible 4 #2 Gravity #2 Interstellar 76 196 #3 Avengers #3 Iron Man 3 #3 The Monkey King 156 Captain America: 151 #4 The Dark Knight Rises #4 Star Trek Into Darkness #4 The Winter Soldier 221
178 #5 Chinese Zodiac #5 Man of Steel #5 The Amazing Spider-Man 2 178 Journey to the West: The Hobbit Part 2: 178 #6 MIB3 #6 #6 Conquering the Demons The Desolation of Smaug
204 Young Detective Dee: #7 Journey 2 #7 #7 Guardians of the Galaxy 204 Rise of the Sea Dragon 204 The Hobbit: #8 Life of Pi #8 #8 Need For Speed An Unexpected Journey 221 221 221 #9 Flying Swords #9 Jurassic Park 3D #9 How To Train Your Dragon 2
#10 Back to 1942 #10 Thor: The Dark World #10 Godzilla
13 4 20 5 22 6
2012 2013 2014 Total Hollywood IMAX Films Total Chinese Language IMAX Films Ranked Chinese Language IMAX Films 33 Strong Support from IMAX Corporation High advantages? 37 18 116 Agreement Subject Matter Term Fees Annual Caps Trademark Grant of an exclusive right to 25 years Annual fee of 2% of gross Determined by reference to the 85 License use certain IMAX trademarks (renewable for an additional revenues of the Company formulae for determining the 76 Agreements 25 years) royalties under the agreements 196 Technology Grant of an exclusive right to 25 years Annual fee of 3% gross Determined by reference to the 156 License use certain IMAX technology (renewable for an additional revenues of the Company formulae for determining the Agreements royalties under the agreements 151 25 years) 221 DMR Services Provision of digital re-mastering 25 years Conversion fees of cost plus Determined by reference to the 178 Agreement services for Chinese language (renewable for an additional 10% formulae for determining the 178 films and the distribution of such 25 years) fees 178 films by IMAX Corporation 50% of the distribution fees outside of Greater China from distribution of Chinese language films in regions 204 outside of Greater China 204 payable by IMAX Corporation 204 to the Group Equipment Supply of IMAX equipment to us 25 years Cost plus 10% Determined by reference to the 221 Supply for us to provide to customers (renewable for an additional 25 formulae for determining the 221 Agreements years) purchase price 221
Master Exclusive platform for the 25 years US$150,000 for most 2D films Determined by reference to the Distribution exhibition of Hollywood films in (renewable for an additional and US$200,000 for most 3D formulae for determining the Agreements Greater China 25 years) films (fees increase for films fees longer than 2.5 hours) 50% of distribution fees from distribution of IMAX Original Films in Greater China 34 Top Exhibitor Partners
37 18 116 Long-term Repeat Exhibitor Partnerships(1) Wanda Cinema Partnership
85 As % of Total IMAX 76 Largest exhibitor in the world (taken IMAX IMAX As % of Theatres in 196 Theatres Theatres Total IMAX Operation Years of together with AMC cinemas) and in in in Theatres in and in Relationship 156 Exhibitors Operation Backlog Total Operation Backlog with us(2) the PRC 151 Wanda Cinema 124 85 209 49.4% 44.9% 7 221 64.9% of Wanda Cinema multiplexes CJ CGV 19 56 75 7.6% 16.1% 4 include an IMAX theatre(1) 178 178 Shanghai Film Corporation / Shanghai United Circuit Co. 7 21 28 2.8% 6.0% 11 Rollout of IMAX theatres to be opened 178 Ltd. by Wanda Cinema in the PRC has 204 Jinyi Cinemas 15 3 18 6.0% 3.9% 5 been ahead of schedule 204 Omnijoi / Blue Ocean 8 8 16 3.2% 3.4% 3 204
UA Lark 8 4 12 3.2% 2.6% 8 221 221 Vieshow Cinemas 7 3 10 2.8% 2.2% 5 221
Others 63 34 97 25.1% 20.9% NA
Total 251 217 (3) 465 100.0% 100.0% NA
Note 1. As of June 30, 2015 2. Includes years of relationship with IMAX Corporation in Greater China prior to our establishment 3. The total backlog includes three IMAX theatre upgrades 35 Expanding Margins
37 18 116 Gross Profit by Operating Segments
85 US$MM % Margin 76 196 69.6%
61.2% 59.4% 156 57.6% 151 52.2% 221 46.5 0.4 64.0% 178 11.9 178 40.2% 61.1% 55.0% 32.2 76.7% 178 55.7% 30.5 57.9% 4.0 48.5% 0.5 26.7% 0.1 24.3 2.3 56.0% 8.2 54.1% 204 0.1 3.0% 30.5% 11.6 3.7 8.4 59.0% 3.5 41.7% 204 2.1 1.2 17.1 29.3% 0.1 2.0 34.5% 46.2% 0.1 2.5 4.7 4.6 1.8 204 75.1% 68.1% 1.8 71.2% 64.3% 19.5 0.7 8.8 16.3 14.1 65.8% 4.9 221 74.2% 72.5% 4.9 5.7 221 221 2012 2013 2014 1H14 1H15
Sales Arrangements Full Revenue Sharing Hybrid Revenue Sharing Theatre System Maintenance Film Business Other Segmental Gross Profit Margins
36
41.2%
40.4% 58.6% 41.4% 32.7%