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Company Overview Founded in 1967 Headquartered in Mississauga, Ontario 400+ IMAX theatres in over 40 countries A leader in the creation and production of high-
end rides, such as IMAX Simulator Rides Most revenue is generated from the sale or long-
term lease of IMAX theatre systems, maintenance and warranty services, installation of theatre systems, and film distribution
Theatres
2004 2005 2006 2007 2008 20090
50
100
150
200
250
300
350
400
450
Number of IMAX Theatres Worldwide
Number of IMAX Theatres Worldwide
Theatres
2004 2005 2006 2007 2008 20090
50
100
150
200
250
300
350
400
450
Rest of the WorldChinaJapanEuropeMexicoUSCanada
Prior to IMAX the Industry standard for movie projection - CinemaScope and VistaVision
◦ widened the image projected from 35 mm film
◦ multiple large and awkward projectors were used to show a single movie
Traditional Film Technologies
Where the West Was Won
1960’s-1970’s
•Expo ’67 - Montreal•Expo ‘70 - Osaka•Ontario Place's Cinesphere
1980’s
• Competition grows• Showscan• Iwerks
1990’s
• Expo ‘90• IMAX bought by WGIM Corp for ~$100 million• Goes public - $13.50/share
• An Oscar!
2000’s
• Slowing North American entertainment market
• Shares drop by 70%
• 12 IMAX customers went bankrupt
Timeline
IMAX Share Prices
Politics◦ Films and content are highly regulated◦ Varying degrees of censorship and periodic bans
on directors who have offended party bosses◦ Only 20 foreign films are allowed each year
Culture – importance of relationships◦ CEO Gelfond began to travel to China 12 years
ago
Factors affecting IMAX’s expansion in China
• 2002– IMAX theatre attendance averaged 60% of
capacity (4 times the 15% required to be successful)
–Often sold out at 9 or 10 am• 2009–WTO orders Beijing to stop forcing owners of
copyrighted materials to deal only with a single government controlled distribution company
• IMAX films difficult to copy
China’s Potential
2001◦ First IMAX projection
system installed in China
2004 ◦ First commercially-
operated IMAX theatre in China
2007◦ MPX theatre at
Suzhou Science and Cultural Art Center
June, 2009◦ IMAX announces a three-film deal with Huayi
Brothers First major Chinese film studio to list on a stock
exchange Voted #42 Most Innovative Company by Fast
Company Magazine (Facebook #1, Amazon #2, Apple #3, Microsoft #48, Twitter #50)
Licenses technology to developers◦ Upfront fee and royalties and between 10-15% of
box office revenue
“The IMAX theatre network is expanding very rapidly in China and we continue to see heavy interest across the country – from commercial theatre chains, property developers and institutions”◦ Gelfond and Wechsler, 2005
Year Number
2006 10
2007 14
2008 18
2009 22
2010 29?
2012 42?
IMAX Theatres in China