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2018 First Quarter

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2018 First Quarter 2018 First Quarter As of March 31, 2018 Contact/Inquiries: Communications and Investor Relations E: [email protected] Diversified Entertainment and Media Company © Cineplex Inc. Not to be distributed, reproduced or used without permission. 2 Corporate Strategy • Continue to enhance and expand existing infrastructure and expand Cineplex’s presence as an entertainment destination for Canadians in-theatre, at-home and on-the-go; • Capitalize on our core media strengths and infrastructure to provide continued growth of Cineplex’s media business, both inside and outside theatres; • Develop and scale amusement and leisure concepts by extending existing capabilities and infrastructure; • Drive value within businesses by leveraging opportunities to optimize value, synergies and data across the Cineplex ecosystems; and • Pursue selective acquisitions and opportunities that are strategic, accretive and capitalize on Cineplex’s core strengths. © Cineplex Inc. Not to be distributed, reproduced or used without permission. 3 Film Entertainment and Content Theatre Exhibition • Theatre Food Service • Alternative Programming • Digital Commerce © Cineplex Inc. Not to be distributed, reproduced or used without permission. 4 Box Office Market Share CINEPLEX BOX OFFICE MARKET SHARE IS THE AS OF MARCH 31, 2018 LARGEST AND MOST SUCCESSFUL MOTION PICTURE Landmark 10.5% EXHIBITION COMPANY IN CANADA Cineplex 77.2% Other 10.1% 163 1,676 Guzzo 2.2% THEATRES SCREENS Source: Rentrak © Cineplex Inc. Not to be distributed, reproduced or used without permission. 5 Box Office Revenue BOX OFFICE REVENUE $ MILLIONS $716 $730 $734 $675 $685 $645 $599 $582 $581 $511 77.0 $489 73.6 74.6 71.2 72.7 70.0 69.0 70.4 66.1 63.5 61.1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Attendance (Millions) © Cineplex Inc. Not to be distributed, reproduced or used without permission. 6 Box Office Per Patron (BPP) $10.17 $9.84 $9.48 $9.06 $9.28 $9.31 $8.69 $8.79 $8.32 $7.99 $8.06 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Box Office Premium Offerings © Cineplex Inc. Not to be distributed, reproduced or used without permission. 7 Premium Experiences LUXURIOUS PREMIUM EXPERIENCES ACCOUNTED FOR 41.1% OF BOX OFFICE REVENUE FOR THE QUARTER ENDED MARCH 31, 2018 © Cineplex Inc. Not to be distributed, reproduced or used without permission. 8 UltraAVX® • Wall-to-wall screens • Dolby ATMOS surround sound at most locations • Extra-wide, high back, rocker seats • Reserved seating • Premium pricing 87 AUDITORIUMS as of March 31, 2018 © Cineplex Inc. Not to be distributed, reproduced or used without permission. 9 IMAX • Immersive movie experience • Crystal-clear images • Giant screens • Powerful digital surround sound • Reserved seating • Premium pricing 24 THEATRES as of March 31, 2018 © Cineplex Inc. Not to be distributed, reproduced or used without permission. 10 VIP Cinemas • Enhanced food and beverage menu • Adult-only licensed auditoriums • Reserved luxury seating • Exceptional service at your seat • Exclusive licensed lounge • Premium pricing 63 SCREENS at 17 LOCATIONS as of March 31, 2018 © Cineplex Inc. Not to be distributed, reproduced or used without permission. 11 Other Entertainment Experiences RECLINERS • Seats move in synchronization with • Specially designed motion seats set in • Luxury recliners with powered the action on screen pods of four and synchronized to on-screen foot rests • Premium pricing action. Environmental effects like wind, • Premium priced • Reserved seating mist, bubbles and more • General and reserved seating • 82 locations as of March 31, 2018 • Premium pricing • 15 locations and 149 screens • Reserved seating as of March 31, 2018 • 1 location as of March 31, 2018 © Cineplex Inc. Not to be distributed, reproduced or used without permission. 12 Selective New Theatre Builds and VIP Expansions COMING TO A MARKET NEAR YOU Cineplex Cinemas Seton and VIP Cineplex Cinemas Park Royal and VIP (Calgary, AB) (Vancouver, BC) Cineplex Cinemas Pickering and VIP Cineplex VIP Cinemas Brentwood (Pickering, ON) (Burnaby, BC) © Cineplex Inc. Not to be distributed, reproduced or used without permission. 13 Theatre Food Service • Highly diversified product offering • Digital technology, integrated loyalty and targeted $422.3 Million promotions • Proprietary and third party brands REVENUE 2017 • Focus on speed of service • Expanded liquor licensing in Ontario and Alberta © Cineplex Inc. Not to be distributed, reproduced or used without permission. 14 Theatre Food Service Revenue $422 $418 $421 $375 $350 $329 $6.00 $288 $295 $292 $5.65 $5.43 $252 $235 $5.09 $4.82 $4.63 $4.41 $4.12 $4.27 $3.84 $3.96 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Concession Per Patron (CPP) © Cineplex Inc. Not to be distributed, reproduced or used without permission. 15 Expanded Food Offerings Full array of menu items for all meal occasions © Cineplex Inc. Not to be distributed, reproduced or used without permission. 16 Desserts and Coffee In-theatre and take-home snack occasions © Cineplex Inc. Not to be distributed, reproduced or used without permission. 17 Alternative Programming Including, among others: The Met: Live in HD Family Favourites In the Gallery Series National Theatre Live Sensory Friendly Screenings Special Events NFL Sunday Nights at Cineplex NFL Super Bowl Classic Film Series International Film Programming 12 Event Screens dedicated 100% to alternative programming © Cineplex Inc. Not to be distributed, reproduced or used without permission. 18 Digital Commerce - Platforms and Products Cineplex.com Mobile App Cineplex Store © Cineplex Inc. Not to be distributed, reproduced or used without permission. 19 Cineplex.com and Mobile App Improving the Guest Experience • Provides entertainment content before the show • Mobile ticketing - no lines CINEPLEX.COM CINEPLEX MOBILE • 104 million site visits in 2017 • One of Canada’s most popular mobile brands • 403 million page views in 2017 • Downloaded 18.5 million times and recorded 956 million app sessions as of Dec 31, 2017 • Cineplex apps: iPhone, iPad, iPod touch, Android, BlackBerry • Online ticketing and show times, exclusive entertainment content • Launching new app in 2018 © Cineplex Inc. Not to be distributed, reproduced or used without permission. 20 Cineplex Store • Premier destination for Canadians to buy, rent and download digital movies • At home and on-the-go viewing • Over 8,400 titles • Available on largest number of devices • SCENE members earn and redeem points © Cineplex Inc. Not to be distributed, reproduced or used without permission. 21 SuperTicket • Bundled offering from multiple studios • Purchase movie ticket and pre-order digital download at the same time • Movies available for earliest possible home entertainment release date • Now available for essentially all major titles © Cineplex Inc. Not to be distributed, reproduced or used without permission. 22 Media Cinema Media • Digital Place-Based Media © Cineplex Inc. Not to be distributed, reproduced or used without permission. 23 Cinema Media Extensive portfolio of Cinema Media Assets: Cinema Media Box Office Market Share by Province • On-screen advertising: Show-Time, Pre-Show and TimePlay Yukon 94% • Digital Lobby: Digital Backlits and Digital Lobby Screens B.C. • Cineplex.com and Cineplex Mobile advertising 96% Alberta Manitoba • Interactive Media Zones (IMZ): Interactive screens 95% Atlantic 99% Ontario for clients to engage with guests in theatre lobbies Sask. 98% 97% 97% Quebec 79% • Cineplex Magazine: #2 most read magazine in Canada; #1 most read magazine in Canada for all Box Office Source: Rentrak demographics under 54 years old CINEMA MEDIA REPRESENTS 94% OF CANADA’S BOX OFFICE © Cineplex Inc. Not to be distributed, reproduced or used without permission. 24 High Impact Offerings 88% • Average impact of cinema advertising is greater than on TV 86% • Reaches sought after demographics and unique audiences • Engaged and attentive audiences focused on the big screen 70% • Prolonged campaigns with mobile app interactivity 58% 58% • Higher recall with 3D campaigns and added mobile content 45% 39% 40% 14% Advertising Correct Brand Ad Entertainment Awareness Association TV (USA) Cinema Pre-Show Cinema Show time Sources: *TV Stats based on Nielsen Brand Effect (US) 2011-2015 (P13+); **Cinema Advertising Show Time Impact Study 2010-2013+2015 Strategic Marketing Counsel (SMC) and online survey via Vision Critical, Pre-Show Study 2010-2014+2016, SMC © Cineplex Inc. Not to be distributed, reproduced or used without permission. 25 Pre-Show Cinema Media Portfolio TimsTV* Show time Concourse Digital • Integrated campaigns Network* Signage • Tremendous reach • À la carte menu of media options Shopping Onroute* Centres* Magazines Special Media *External Networks Sales representation managed by Cineplex Media Cineplex Mobile Cineplex.com © Cineplex Inc. Not to be distributed, reproduced or used without permission. 26 Digital Place-Based Media • Full-service, digital place-based ecosystems • Experiential technologies • Global footprint Revenue Streams Verticals • Technology Licensing • Quick Service Restaurants • Network Management • Financial • Creative Services • Retail • Advertising Sales • Digital Out of Home (Malls) • Design and Installation © Cineplex Inc. Not to be distributed, reproduced or used without permission. 27 Quick Service Restaurants Working with top-tier brands around the globe © Cineplex Inc. Not to be distributed, reproduced or used without permission. 28 Financial Canada United States © Cineplex Inc. Not to
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