2021 Second Quarter As of June 30, 2021 - Cineplex.com
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2021 Second Quarter As of June 30, 2021 Contact/Inquiries: Mahsa Rejali Executive Director, Corporate Development & Investor Relations E: InvestorRelations@cineplex.com
Diversified Entertainment and Media Company © Cineplex Inc. Not to be distributed, reproduced or used without permission. 2
Corporate Strategy • Continue to enhance 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, realize synergies, implement customer-centric technology and leverage big data across the Cineplex ecosystems; and • Pursue opportunities that capitalize on Cineplex’s core strengths. © Cineplex Inc. Not to be distributed, reproduced or used without permission. 3
COVID-19: Key Responses
Cost Control Liquidity Measures
• Worked with landlords and real estate partners to abate and
• Amended credit facility to provide waivers to Q4 2021
defer lease costs
• Secured $305M additional liquidity through convertible
• Employee layoffs and voluntary salary reductions
debenture offering and another $250M in second lien notes
• Benefited from government wage subsidy programs such as
• Received $60M for the reorganization of joint operation with
CEWS
SCENE
• Reduced operating costs and targeted renegotiations with
• Received $57M for the sale of Company’s head office
key suppliers
building
• Near-term CAPEX guidance significantly reduced
• Other, including $66 million in income tax receivables of
which $54 million has been received to date
• Continued suspension of dividend payments
© Cineplex. Confidential. Not to be distributed, reproduced or used without permission.
August 25, 2021 4
COVID-19: Enhanced Measures
• Top priority is the health and safety of our employees
and our guests
• Introduced VenueSafe program – health and safety
protocols in accordance with Canada’s public health
guidelines
• Reserved seating, reduced capacity (province-
dependent), enhanced cleaning, implemented
safety signage
• ZERO cases of COVID-19 transmission in cinemas
• Focus on health and safety will continue even as
threat of COVID-19 subsides
© Cineplex. Confidential. Not to be distributed, reproduced or used without permission.
August 25, 2021 5
Film Entertainment and Content
Theatre Exhibition • Theatre Food Service • Alternative Programming • Digital Commerce
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 6
Box Office Market Share
CINEPLEX BOX OFFICE MARKET SHARE
FOR FULL YEAR ENDED DECEMBER 31, 2019
IS THE
LARGEST
AND
MOST SUCCESSFUL
MOTION PICTURE Landmark 12%
EXHIBITION COMPANY
IN CANADA
Cineplex 75%
Other 11%
160 1,651 Guzzo 2%
THEATRES SCREENS
Source: Rentrak
Theatre/screen count as at June 30, 2021
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 7
Box Office Revenue
BOX OFFICE REVENUE
$ MILLIONS $730 $734
$716 $724 $706
$675 $685
$645
$599 72.7 73.6 77.0 74.6
$581 71.2 70.4 69.3
69.0
66.1 66.4
$133*
13.1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Theatre Attendance (Millions) *2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 8
Box Office Per Patron (BPP)
$10.17*
$10.63
$10.46
$10.17
$9.84
$9.48
$9.06 $9.28 $9.31
$8.69 $8.79
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Box Office Premium Offerings
*2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 9
Premium Experiences
LUXURIOUS
PREMIUM
EXPERIENCES
ACCOUNTED FOR
41.7%
OF BOX OFFICE
REVENUE
FOR THE YEAR ENDED
DECEMBER 31, 2019*
*2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 10UltraAVX®
• Wall-to-wall screens
• Dolby ATMOS surround sound at most
locations
• Extra-wide, high back, rocker seats
• Reserved seating
• Premium pricing
94
SCREENS at 78 LOCATIONS
as of June 30, 2021
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 11IMAX
• Immersive movie experience
• Crystal-clear images
• Giant screens
• Powerful digital surround sound
• Reserved seating
• Premium pricing
25
SCREENS at 25 LOCATIONS
as of June 30, 2021
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 12VIP Cinemas
• Enhanced food and beverage menu
• Adult-only licensed auditoriums
• Reserved luxury seating
• Exceptional service at your seat
• Exclusive licensed lounge
• Premium pricing
89
SCREENS at 23 LOCATIONS
as of June 30, 2021
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 13Other Entertainment Experiences
• Seats move in synchronization with • Specially designed motion seats set in • 270-degree, panoramic movie-
the action on screen pods of four and synchronized to watching experience
• Premium pricing on-screen action. Environmental effects • Premium pricing
• Reserved seating like wind, mist, bubbles and more • Reserved seating
• 98 screens at 85 locations • Premium pricing • 8 location as of June 30, 2021
as of June 30, 2021 • Reserved seating
• 6 locations as of June 30, 2021
RECLINERS
• Colourful décor, playful seating, a selection of • Luxury recliners with powered footrests
family-friendly films and an indoor play structure • Premium pricing
where kids can climb, slide and explore • General and reserved seating
• In-auditorium food service • 258 screens at 30 locations
• Premium pricing as of June 30, 2021
• Reserved seating
• 5 locations as of June 30, 2021
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 14Theatre Food Service
• Highly diversified product offering
•
$99.6 Million •
•
Digital technology, integrated loyalty and targeted promotions
Proprietary and third-party brands
Home delivery service at 144 locations via Uber Eats and Skip the Dishes
REVENUE 2020 • Expanded liquor licensing in Ontario, Alberta and Manitoba
• 98 fully licensed locations as of December 31, 2020
*2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 15Theatre Food Service Revenue
$441 $447
$418 $421 $422
$375
$350 $6.99**
$329 6.73
$6.36
$295 $292 $6.00
$5.65
$5.43
$5.09
$4.82
$4.63
$4.27 $4.41
$100**
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Concession Per Patron (CPP)
*CAGR calculated for 2010 – 2019. 2020 impacted by COVID19. **2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 16Expanded Food Offerings
Full array of menu items for all meal occasions
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 17Desserts and Coffee
In-theatre and take-home snack occasions
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 18Alternative Programming
Including, among others:
• Classic Film Series
• Family Favourites
• In the Gallery Series
• International Film Programming
• National Theatre Live &
Stratford Stage Productions
• Major Sporting Events at Cineplex
• Sensory Friendly Screenings
• Special Events
• The Met: Live in HD
24 Event Screens dedicated 100%
to alternative programming
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 19Digital Commerce - Platforms and Products
Cineplex.com Mobile App Cineplex Store
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 20Cineplex.com and Mobile App
Improving the
Guest Experience
• Provides entertainment content before the show
• Mobile ticketing – no lines, touchless entry
• Mobile food ordering at VIP Cinemas
CINEPLEX.COM CINEPLEX MOBILE
• Online ticketing and showtimes, • One of Canada’s most popular mobile brands
exclusive entertainment content
• Cineplex apps: iOS, iPad OS, and Android OS
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 21Cineplex Store
• Premier destination for Canadians to buy, rent and
download digital movies
• At home and on-the-go viewing
• Over 9,000 titles
• Available on largest number of devices
• SCENE members earn and redeem points
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 22Media
Cinema Media • Digital Place-Based Media
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 23Cinema Media
Extensive portfolio of Cinema Media Assets:
• On-screen advertising: Show-Time and Pre-
Show
• Digital Lobby: Digital Posters and Digital
Lobby Screens
• Cineplex.com and Cineplex App/Mobile
advertising
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 24High Impact Offerings
• Average impact of cinema advertising is greater than on TV
• Reaches sought after demographics and unique audiences • Uncluttered media environment
• Engaged and attentive audiences focused on the big • Lowest Ad Avoidance of all media
screen
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 25Pre-Show
Cinema Media Portfolio LBE
Show-Time
Digital
• Integrated campaigns
Concourse Signage
• Tremendous reach Network*
• À la carte menu of media options
Shopping
Centres*
Special Media
*External Networks Cineplex Mobile Cineplex.com
Sales representation managed by Cineplex Media
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 26Digital 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. 27Quick Service Restaurants
Working with top-tier brands around the globe
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 28Financial
Canada
United States
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 29Retail © Cineplex Inc. Not to be distributed, reproduced or used without permission. 30
Digital Out of Home
Oxford Properties Ivanhoe Cambridge Morguard Investments
• Award-winning digital signage company
• Designs, installs, manages, supports and consults on digital merchandising networks across North America
• Cineplex reaches approximately 50% of all mall traffic in Canada
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 31Amusement and Leisure
Amusement Solutions • Location Based Entertainment
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 32Amusement Solutions
• One of the top amusement gaming companies in
North America
• Supplies arcade equipment to Cineplex theatres,
The Rec Room, other circuits and numerous
entertainment venues
• Revenue for the year ended December 31, 2019*: $178.2M
• B2B Amusement Solutions:
• Route Operations
• Distribution and Sales
• Family Entertainment Centres (FECs)
*2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 33Player One Amusement Group
Route Business
Cineplex provides the equipment and shares the
Route Business revenue with third party operators such as theme
parks and FECs
Customers: Cineplex, Cinemark, Regal, AMC,
Punch Bowl Social, etc.
Distribution Business
Customers purchase games through Cineplex sales
Distribution Business and service representation of more than 70 leading
game manufacturers
Customers:
Amusement Parks – Disney, Cedar Fair
Family Entertainment Centers – Frankies Fun Parks
Retail – Bass Pro Shops
P1AG Offices Map representation as of December 31, 2019
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 34XSCAPE and FECs
• Well positioned for future growth in this area
XSCAPE Entertainment Centres
• Entertainment concepts in Cineplex theatres featuring the latest
video and interactive games with redemption prizing
FECs
• Owned and revenue-share FECs across North America
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 35Location-Based Entertainment
Canada’s newest destination for ‘Eats & Entertainment’ Reimagined entertainment complexes in mid-sized
communities across Canada
Amusement gaming, live entertainment, feature
attractions and unforgettable dining experiences, all Indoor play, fun and fresh food and modern,
under one roof technology-enhanced amenities
Large attractions area, bar, auditorium-style space for Affordable entertainment for everyday play, casual
live entertainment and casual and upscale dining dining or special occasions
Target: Millennials and baby boomers with kids, Target: Teens, their friends and family
and groups
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 36The Rec Room
TARGET
• 10-15 locations across Canada
NOW OPEN
• South Edmonton Common: September 2016
• Toronto’s Historic Roundhouse: June 2017
• West Edmonton Mall: August 2017
• Deerfoot City, Calgary: October 2017
• CF Masonville Place, London: April 2018
• Square One, Mississauga: March 2019
• Avalon Mall, St. John’s: April 2019
• Seasons of Tuxedo, Winnipeg: February 2020
• The Amazing Brentwood, Burnaby : July 2021
• Park Place, Barrie : July 2021
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 37Playdium
TARGET
• 10-15 locations across Canada
NOW OPEN
• Brampton, Ontario: September 2019
• Whitby, Ontario: November 2019
• Dartmouth, Nova Scotia: February 2021
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 38Loyalty Program
10.4
10.3 • Canada’s top loyalty program for
9.4 movie lovers with over 10 million
8.9 members
8.1
7.3 • Leader in loyalty program
6.3 member satisfaction in Canada
5.3
4.3 • One in four Canadians are SCENE
3.3
members
2.7
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Members (Millions)
*as of December 31, 2020
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 39Loyalty Program
COMPETITIVE ADVANTAGE
• Drives theatre attendance frequency
• Encourages concession spend
• Better target offers to guests
• The Rec Room and Playdium:
*
Encourages spend on food and
beverage, gaming and entertainment
• Cineplex Store: Builds awareness
and promotes trial
• Great opportunity for film studios
and promotional partners
• Marketing automation platforms
• Valuable data and insight
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 40Subscription Program
PROGRAM HIGHLIGHTS
$9.99 PER MONTH LAUNCHED IN AUGUST 2021
No Commitment. Cancel any time.
SAVE ON MOVIE TICKETS
• Members receive one general admission ticket per month. These
CineClub member tickets never expire
• Ability to purchase additional CineClub-Priced tickets at $9.99
• Earn SCENE® points on all ticket purchases
SAVE ON FOOD & DRINKS
• 20% discount on concessions (including Outtakes and VIP
lounge)
• Earn SCENE® points on all concession purchases
SAVE ON GAMING & AT THE CINEPLEX STORE
• 20% discount on gaming at The Rec Room and Playdium
• 10% discount at the Cineplex Store
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 41Financial Highlights © Cineplex Inc. Not to be distributed, reproduced or used without permission. 42
TOTAL REVENUE
$ MILLIONS
$1,665
$1,612
$1,550
$1,474
$1,371
$1,235
$1,171
$1,092
$1,006
$998
$418*
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 43ADJUSTED EBITDAaL*
$ MILLIONS
$250 $247
$237 $231
$225
$200 $202 $201
$168 $173
-$183**
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EBITDA – Pre-IFRS 16 EBITDAaL
*CAGR calculated for 2010 – 2019. 2020 impacted by COVID19. **2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 44TOTAL FOOD SERVICE REVENUE
$ MILLIONS
$442 $483
$431
$421
$418
$375
$350
$329
$292
$295
$109**
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Theatre Food Service Revenue Location-Based Entertainment Revenue
*CAGR calculated for 2010 – 2019. 2020 impacted by COVID19. **2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 45MEDIA REVENUE
$ MILLIONS
$197
$171
$167 $163
$154
$134
$110
$91 $84
$82
$65**
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cinema Media Revenue Digital Place-Based Media Revenue
*CAGR calculated for 2010 – 2019. 2020 impacted by COVID19. **2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 46OTHER REVENUE
$ MILLIONS
$51
$44
$40
$38 $38 $34 **
$33
$29
$27
$26
$25
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*CAGR calculated for 2010 – 2019. 2020 impacted by COVID19. **2020 impacted by COVID19.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 47Q2 AND Q2 YEAR TO DATE 2021 RESULTS
IN THOUSANDS OF DOLLARS, EXCEPT ADJUSTED EBITDAaL MARGIN AND PER PATRON AMOUNTS
Q2 2021 Q2 2020 % Q2 YTD 2021 Q2 YTD 2020 %
$12,498 $27 NM Box Office $16,316 $111,029 -85.3%
$13,258 $3,256 307.2% Food Service $19,783 $82,621 -76.1%
$9,401 $7,880 19.3% Media $18,475 $40,037 -53.9%
$22,184 $3,731 494.6% Amusement $36,058 $51,068 -29.4%
$7,585 $7,094 6.9% Other $15,706 $20,034 -21.6%
$64,926 $21,988 195.3% Total Revenue $106,338 $304,789 -65.1%
($16,902) ($41,313) -59.1% Adjusted EBITDA ($47,007) $5,159 NM
($53,165) ($72,532) -26.7% Adjusted EBITDAaL ($115,255) ($70,142) 64.3%
(81.9%) (329.9%) 248.0% Adjusted EBITDAaL Margin (108.4%) (23.0%) -85.4%
1,148 6 NM Theatre Attendance 1,563 10,716 -85.4%
$10.89 $4.50 142.0% BPP $10.44 $10.36 0.8%
$7.86 $10.33 -23.9% CPP $7.40 $6.79 9.0%
*For non-GAAP measures, refer to slides 50 & 51
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 48CREDIT FACILITIES
(MILLIONS)
Capacity Drawn Reserved
Maturity Remaining
(as of June 30/21) (as of June 30/21) (as of June 30/21)
Revolving Facility Nov 2023 $541.7 $285.0 $11.0 $245.7
COVENANT LEVERAGE RATIO 2.32
2.17
1.88
1.58
1.27 1.31
1.19
1.13
0.97
0.89
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0.00 *
2020
As of December 31, 2020
* Covenant tests waived for Q4 2020.
• In January 2021, Cineplex completed a sale and leaseback transaction for its head office buildings for $57.0 million. Fifty percent of the net proceeds were used to permanently reduce the Revolving Facility.
• On February 8, 2021, Cineplex entered into the Third Credit Agreement Amendment with The Bank of Nova Scotia. The Third Credit Agreement allows Cineplex to issue Second Lien Notes to a maximum of $250 million and an
extension of the suspension of the financial covenant testing until the fourth quarter of 2021.
• On February 26, 2020, Cineplex issued $250 million ($244 million net of fees) of Senior Secured Second Lien Notes. $100 million of the proceeds were used to permanently reduce the Revolving Facility and $144 million were
used to temporarily repay the Revolving Facility.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 49Non-GAAP Financial Measures
Management of Cineplex uses certain non-GAAP financial measures to evaluate performance. These measures are either comparable to similar measures presented by other issuers or are widely
used in the theatre exhibition industry. For a detailed discussion of these non-GAAP financial measures, please refer to Cineplex’s management’s discussion and analysis filed on www.sedar.com.
Non-GAAP financial measures used in investor presentations included the following:
EBITDA EBITDA is calculated by adding back to net income, income tax expense, depreciation, amortization and interest expense net of interest income
Adjusted EBITDA Adjusted EBITDA excludes the change in fair value of financial instrument, (gain) loss on disposal of assets, foreign exchange, impairment of long-
lived assets, goodwill and investments, the equity loss (income) of CDCP, the non-controlling interests' share of adjusted EBITDA of TG-CPX
Limited Partnership, and depreciation, amortization, interest and taxes of Cineplex's other joint ventures and associates.
Adjusted EBITDAaL Adjusted EBITDAaL modifies adjusted EBITDA to deduct current cash rent paid or payable related to lease obligations net of quantified savings
negotiated with landlords as a result of the COVID-19 closures, including savings negotiated after the period end. This includes agreements with
landlords that are evidenced by way of written confirmation of the terms agreed upon to the date of approval of the MD&A, and are in the process of
being formally documented.
Adjusted Free Cash Flow Adjusted free cash flow is calculated by adjusting cash provided by operating activities by total capital expenditures excluding growth capital
expenditures net of proceeds on sale of assets, changes in operating assets and liabilities, changes in operating assets and liabilities of joint
ventures, change in fair value of financial instruments, principal component of lease obligations, share of income of joint ventures net of non-cash
depreciation, non-controlling interests share of adjusted EBITDA of TGLP, and net cash received from CDCP.
Theatre Attendance Theatre attendance is calculated as the total number of paying guests that frequent Cineplex’s theatres during the period.
BPP Calculated as total box office revenues divided by total paid theatre attendance for the period.
BPP excluding premium Calculated as total box office revenues for the period, less box office revenues from 3D, UltraAVX, VIP, 4DX, ScreenX and IMAX product divided by
priced product total paid theatre attendance for the period less paid theatre attendance for 3D, UltraAVX, VIP, 4DX, ScreenX and IMAX product.
CPP Calculated as total theatre food service revenues divided by total paid theatre attendance for the period.
Premium Priced Product Defined as 3D, 4DX, UltraAVX, IMAX, ScreenX and VIP film product.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 50Non-GAAP Financial Measures
Theatre concession margin Calculated as total theatre food service revenues less total theatre food service cost, divided by theatre attendance for the period.
per patron
Same theatre metrics Same theatre metrics are calculated by removing the results for all theatres that have been opened, acquired, closed
(excluding temporary government-mandated shutdowns) or otherwise disposed of subsequent to the start of the prior
year comparative period.
Film cost percentage Calculated as total film cost expense divided by total box office revenues for the period.
Theatre concession cost Calculated as total cost of theatre food service divided by total theatre food service revenues for the period.
percentage
LBE food cost percentage Calculated as total LBE food costs divided by total LBE food service revenues for the period.
P1AG Adjusted EBITDAaL Calculated as amusement revenues of P1AG less the total operating expenses, which excludes foreign exchange.
P1AG Adjusted EBITDAaL Calculated as P1AG Adjusted EBITDAaL divided by total amusement revenues for P1AG for the period.
Margin
Adjusted Store Level Calculated as total LBE revenues from all locations less the total of operating expenses, which excludes pre-opening costs and overhead relating
EBITDAaL Metrics to the management of the LBE businesses.
Adjusted Store Level Calculated as adjusted store level EBITDAaL divided by total revenues for LBE for the period.
EBITDAaL Margin
Net Cash Burn Calculated as adjusted EBITDAaL less cash interest expense (excluding amounts with respect to lease obligations),
provision for income taxes and net capital expenditures.
© Cineplex Inc. Not to be distributed, reproduced or used without permission. 51Thank you!
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