2019 Annual Report July 26, 2019 To Our Shareholders: We’re pleased to report that fiscal 2019 was a year in which we refilled our film and television content pipelines with exciting new properties, grew our existing franchises and created new ones, and continued the robust growth of our domestic streaming business at Starz while expanding our STARZPLAY premium branded platform around the world. It was also a year in which we cut costs and reduced overhead Company-wide, streamlining and modernizing our business in order to continue to compete effectively in a changing world. As a result, we believe that all of the building blocks are in place for strong and profitable growth in fiscal 20 and growing recognition of the value we’re creating for our shareholders as we move forward. Financially, we reported fiscal 2019 revenue of $3.68 billion, operating income of $130 million, net loss attributable to shareholders of $284 million or $1.33 diluted net loss per share, adjusted diluted EPS of $0.87 per share, adjusted OIBDA of $520 million and adjusted free cash flow of $638 million, reflecting continued strong free cash flow generation that is expected to enable us to de-lever our balance sheet as we have done in the past. Investing in the Future — 3 Arts Entertainment In May 2018 we took a majority stake in 3 Arts Entertainment, a collaboration that is generating strong results with an influx of top-tier talent across our business. We’re already partnering with 3 Arts on over two dozen television projects, with the critically-acclaimed Florida Girls for Pop, Mythic Quest: Raven’s Banquet for Apple and Silicon Valley creator Mike Judge’s Qualityland for HBO leading the way. To allow us to focus ever more sharply on our core businesses and growth opportunities going forward, we also continued to monetize our non-core assets during the year, selling our 50% stake in Pop to CBS while continuing to supply the network with breakout new series like Florida Girls. Strong Growth at Starz Fiscal 2019 was a strong growth year at Starz as we grew revenues by 3% and increased overall domestic subscribers from 23.5 million to 24.7 million. During the year, we accelerated the integration of our two companies, widened the creative aperture to add exciting new global properties to Starz’s original programming slate, and continued to stand up a vibrant domestic over-the-top business that launched successfully on Apple, Hulu, Roku, YouTube TV and other platforms with over 4 million over-the-top subscribers to date. It was also a year in which Starz continued its international expansion with global streaming platforms like Apple and Amazon, top local distributors including Bell Media (Canada), Liberty Global’s Virgin Media (UK), Vodafone and Orange (Spain), and our Starzplay Arabia joint venture that has become the top subscription video-on-demand service in the Middle East and North Africa, tapping into a nascent and under-served market with enormous growth potential. With over 7 million new subscribers added to our over-the-top and international businesses in the past 3 years, Starz has been transformed from a domestic linear channel into a modern global platform that has become one of the world’s leading pure play subscription services. The combination of Starz original series, Lionsgate films and television shows from our 17,000-title library, exclusive first-run acquired product, unparalleled speed to market and relative freedom from legacy constraints will continue making us a launch partner of choice, and we expect these benefits to translate into 15 to 25 million new international subscribers by 2025, adding enormous value for our Company and our shareholders. On the programming front, Starz has carved out a unique and resonant identity as the premium pay platform for women, African-American, Latinx, LGBTQ and other historically underserved audiences. We continued to strengthen that identity during the year, readying perennial ratings leader Power for a 15-episode sixth season while expanding the Power cinematic universe. The first Power spinoff, which continues the stories of several of the franchise’s most provocative characters while incorporating exciting new additions like Academy Award® nominee Mary J. Blige, has already been ordered to series. A Power prequel and additional spinoffs are in development, all shepherded by Power creator and showrunner Courtney A. Kemp. The epic tale Outlander, currently in production on its fifth season, continues to deliver upscale, premium female audiences. American Gods returned with its loyal and passionate fan base in March 2019 and has been renewed for a third season. The critically-praised, award-winning series Vida has also been picked up for a third season as it continues to build its audience and generate fresh acclaim. The series recently launched on our premium Spanish-language streaming service PANTAYA as we continue to expand our content across our Latinx vertical. Starz continues to bolster its slate with the recent debut of the supernatural thriller The Rook from Lionsgate and Liberty Global, the planned return of the edgy and acclaimed series The Girlfriend Experience for a third season, and provocative new shows like Dangerous Liaisons from Lionsgate Television, a sexy thriller about seduction and betrayal that heads a line-up of newcomers currently in production. We will continue to invest in bold, original new content and cutting edge marketing to create a diverse and balanced slate year-round, deep in areas of proved strength, one that offers a compelling value proposition for domestic and international, streaming and traditional MVPD partners alike. John Wick 3 Leads Rebound in the Motion Picture Group Following a year of transition, our new Motion Picture Group leadership team has refocused our film content strategy and realigned our development slate, streamlined our Motion Picture Group organization to enable it to change more quickly with a changing world, and established major talent partnerships with Seth Rogen, Evan Goldberg and James Weaver’s Point Grey Pictures, leading faith-based producers The Erwin Brothers (I Can Only Imagine) and filmmaker Jonathan Levine (Warm Bodies, 50/50). The results are already evident. Our domestic box office revenues for the first six months of calendar 2019 increased 93% from the comparable period last year. In May, we again showed our ability to deliver iconic entertainment to a global audience by launching John Wick: Chapter3—Parabellum to over $300 million at the worldwide box office, doubling the performance of the last installment, an almost unprecedented feat among movie franchises, and establishing John Wick as one of the premier action franchises in the world. And in true Lionsgate fashion, we’ve already expanded the John Wick universe to include an upcoming television spinoff for Starz, The Continental, a first-of-its-kind game integration with Fortnite, and the successful virtual reality game John Wick Chronicles. The resurgence of our Motion Picture Group is also evident in an upcoming slate that returns the studio to its roots: a diverse portfolio of bold, original, star-driven films and new and returning franchises that includes Sylvester Stallone’s Rambo: Last Blood, Roland Emmerich’s epic action film Midway, Star Wars director Rian Johnson’s whodunit Knives Out, Jay Roach’s timely sexual harassment drama starring Nicole Kidman, Charlize Theron and Margot Robbie, I Still Believe, the follow-up to the Erwin Brothers’ faith-based hit I Can Only Imagine, a mind-bending re-imagining of Saw starring Chris Rock, Hitman’s Bodyguard 2 and John Wick 4. Television Group Assembles One of its Strongest Development Slates Ever, Several New Series Ordered As the television landscape continues to evolve, we saw an opportunity to turn to our top-tier production partnerships with 3 Arts, Courtney A. Kemp, Universal Music Group, BBC Studios, the Tannenbaum Company, Point Grey and Paul Feig for new series, leveraging their talent relationships and expertise while reducing our reliance on infrastructure. The strategy has led to our most prolific development slate ever, with 44 of 57 new projects placed with network partners coming from our producer “pods.” Lionsgate Television is in production on a growing roster of high-profile new series for a broad array of streaming, cable and broadcast platforms, including the ground-breaking musical drama Zoey’s Extraordinary Playlist for NBC, Mythic Quest: Raven’s Banquet, one of the first original series for Apple, Love Life, featuring Anna Kendrick in her first major television role, for the new HBO Max streaming platform, Chasing the Cure, a highly-anticipated crowd-solving medical detective series anchored by Ann Curry for Turner, and three original series, The Rook, Dangerous Liaisons and Ghost, for Starz. In an increasingly fragmented television universe, one of our strongest line-ups of new shows in years reflects our ability to create bespoke business models for every platform. Among our current series, Manhunt: Lone Wolf is being readied for its debut season on Charter’s Spectrum, Greenleaf is entering its fourth season on OWN, and Step Up: High Water continues to dance into the hearts of audiences in its second season on YouTube Premium. Dear White People and Orange is the New Black continue to win rave reviews as they enter their third and seventh seasons, respectively, on Netflix, underscoring our ability to create evergreen content for today’s diverse audiences. New Content Partnerships Reaffirm the Value of Our Films and Television Series Demand for our content is greater than ever. During the year we entered into a record-breaking pay television agreement with Hulu and FX for Lionsgate theatrical films to be released in 2020 and 2021, the first time a streaming platform and a cable network have partnered to jointly secure the pay television window of a theatrical output deal.