2016 Third Quarter - Cineplexirfiles.cineplex.com/investors/presentations/2016/Q3...Digital Poster Cases •3 minute loop keeps content upbeat and timely •84” fully HD digital

2016 Third QuarterAs at September 30, 2016

Contact/Inquiries:

Pat Marshall, Vice President, Communications and Investor Relations

T: 416.323.6648 • E: [email protected]

2© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.

CINEPLEXENTERTAINMENT

IS THE

LARGESTAND

MOST SUCCESSFULMOTION PICTURE

EXHIBITION COMPANYIN CANADA

Box Office Market Share

164THEATRES

1,677SCREENS

Cineplex Entertainment 77.5%

Landmark, 10.0%

Other, 10.6%

Guzzo, 1.9%

BOX OFFICE MARKET SHAREAS AT SEPTEMBER 30, 2016

Source: Rentrak


Box Office Per Patron (BPP)

$7.99 $7.99 $8.05$8.30

$8.67 $8.74 $8.97 $9.15 $9.13

$9.23

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Premium OfferingsBox Office


AmusementGaming

and LeisureMedia

FilmEntertainmentand Content

FoodService

AlternativeProgramming

TheatreExhibition

DigitalCommerce

Player One Amusement

Group*

eSports

The RecRoom

CineplexDigitalMedia

SCENE

CineplexMedia

More thanTheatre Exhibition

*Formerly known as Cineplex Starburst Inc.


Corporate Strategy

• Continue to enhance and expand our existing infrastructure

and service offerings

• Continue to expand our presence as an entertainment destination for Canadians in-theatre, at-home

and on-the-go

• Capitalize on our core media strengths

• Develop and scale gaming-related amusement and leisure concepts, including The Rec Room, by

extending existing capabilities and infrastructure

• Pursue selective acquisitions and diversification opportunities that are strategic, accretive and

capitalize on our core strengths


Film Entertainment and ContentTheatre Exhibition • Theatre Food Service • Alternative Programming • Digital Commerce


LUXURIOUS

PREMIUM EXPERIENCES

ACCOUNTED FOR 46.5%

OF BOX OFFICE REVENUE

FOR THE THREE MONTHS ENDEDSEPTEMBER 30, 2016

Theatre Exhibition


UltraAVX®

85AUDITORIUMS

5%OF SCREENS

14.6%OF BOX OFFICE

• Wall to wall screens

• Dolby ATMOS surround sound

• Reserved seating

• Extra-wide high back, rocker seats

• Premium pricing

• 85 auditoriums (as at September 30, 2016)


IMAX

• All locations are digital and 3D capable

• Premium pricing


• 23 IMAX Theatres (as at September 30,

2016)

23THEATRES

3DCAPABLE


D-BOX

• Unique out-of-home experience

• Seats move in synchronization with the

action on screen

• Premium pricing


• 68 locations (as at September 30, 2016)

68LOCATIONS


VIP Cinemas

LUXURIOUS

SEATSGREAT

FOODEXCEPTIONAL

SERVICE

• Enhanced food and beverage menu

• Adult-only licensed auditoriums

• Reserved recliner seats

• Service at your seat

• Private licensed lounge and box office

• Premium pricing

• 17 locations and 63 screens

(as at September 30, 2016)


New Builds and VIP Expansions

2015

Scotiabank TheatreSaskatoon and VIP

(Saskatoon, SK)

Cineplex CinemasLansdowne and VIP

(Ottawa, ON)

Cineplex CinemasMarkham and VIP

(Markham, ON)

Cineplex CinemasYonge-Eglinton and VIP

(Toronto, ON)

2017

Cineplex CinemasPickering and VIP

(Pickering, ON)

Cineplex CinemasSeton and VIP

(Calgary, AB)

2016

Cineplex CinemasMarine Gateway and VIP

(Vancouver, BC)

Cineplex CinemasNorth Barrie

(Barrie, ON)

Cineplex CinemasKitchener and VIP

(Kitchener, ON)


• Focus on speed of service

• Premium promotional programs

• Digital menu boards

• Proprietary brands

$418 MillionREVENUE 2015

Theatre Food Service


Concession Per Patron (CPP)

$3.72 $3.84 $3.96$4.12

$4.27$4.41

$4.63$4.82

$5.09

$5.43

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


96 Locations NationwideAS AT SEPTEMBER 30, 2016

Outtakes


• Self-serve frozen yogurt

• Will replace all Cineplex yogurt RBOs

• 95 locations at September 2016


YoYo’s


• Selection of specialty gourmet popcorn


Poptopia


Alternative Programming

CINEPLEX EVENTS

• The Met: Live in HD

• Family Favourites

• Classic Film Series

• Flashback Film Festival

• National Theatre Live

• Sensory Friendly Screenings

• World Wrestling Entertainment

• Concerts, Broadway shows

and special events

INTERNATIONAL FILM

PROGRAMMING

• South Asian programming (Bollywood)

• East Asian

• Hindi, Punjabi, Mandarin, Cantonese,

Korean, Filipino, Telugu, Urdu


Digital Commerce - Cineplex Anywhere

In-Theatre On-The-GoAt-Home


Cineplex.com and Mobile App

CINEPLEX.COM

• 105 million site visits in 2015

• 530 million page views in 2015

• Online ticketing and show times,exclusive entertainment content

CINEPLEX MOBILE

• One of Canada’s most popular mobile brands

• Downloaded 14.9 million times and recorded 812 million app sessions since launch

• Cineplex Apps: iPhone, iPad, iPod touch, Android, BlackBerry

IMPROVING THEGUEST EXPERIENCE• Provides entertainment content before the show

• Mobile ticketing - no lines


Cineplex Store

• Premiere destination for

Canadians to buy or rent digital

movies

• Available on Xbox One and

Xbox 360, Roku, Samsung, LG,

PC/Mac,

iOS and Android mobile/tablet

devices, Chromecast

• 7,000 titles available for on-

demand streaming or download

for offline viewing

• Fully integrated with SCENE

loyalty program – earn/burn

points in Store

• Completely new consistent and

compelling three-screen user

experience coming in 2017

http://www.xbox.com/en-US

http://www.xbox.com/en-US

http://www.google.com/imgres?imgurl=http://www.letmedefine.com/wp-content/uploads/2010/05/Logo_samsung.jpg&imgrefurl=http://www.letmedefine.com/limo-based-samsun-i8330-h2-smartphone/&usg=__juEyIrWkDjlahBCTf0o5YF7DjeU=&h=602&w=1281&sz=107&hl=en&start=3&sig2=-J1IMU5xCJ3khUN2uA6cRQ&zoom=1&itbs=1&tbnid=SGDMj5n_0DbMJM:&tbnh=70&tbnw=150&prev=/search?q=Samsung+logo&hl=en&rls=com.microsoft:en-US&biw=1259&bih=626&tbm=isch&ei=MqzlTef6JsrL0QHasKW4Cg

http://www.google.com/imgres?imgurl=http://www.letmedefine.com/wp-content/uploads/2010/05/Logo_samsung.jpg&imgrefurl=http://www.letmedefine.com/limo-based-samsun-i8330-h2-smartphone/&usg=__juEyIrWkDjlahBCTf0o5YF7DjeU=&h=602&w=1281&sz=107&hl=en&start=3&sig2=-J1IMU5xCJ3khUN2uA6cRQ&zoom=1&itbs=1&tbnid=SGDMj5n_0DbMJM:&tbnh=70&tbnw=150&prev=/search?q=Samsung+logo&hl=en&rls=com.microsoft:en-US&biw=1259&bih=626&tbm=isch&ei=MqzlTef6JsrL0QHasKW4Cg

http://www.google.com/imgres?imgurl=http://www.akihabaranews.com/wp-content/uploads//images/9/29/36529/1.jpg&imgrefurl=http://en.akihabaranews.com/36529/misc/pac-man-hidden-in-lg-logo&usg=__JbQKeXGqt8xJzmNR6yb5sLPt0HU=&h=300&w=728&sz=63&hl=en&start=3&sig2=rf33v05hCx8NJs-KG1l5Vg&zoom=1&itbs=1&tbnid=OtVi9ZATRzyODM:&tbnh=58&tbnw=141&prev=/search?q=LG+logo&hl=en&rls=com.microsoft:en-US&biw=1259&bih=626&tbm=isch&ei=bKzlTd7ZMIH30gGH9sTACg

http://www.google.com/imgres?imgurl=http://www.akihabaranews.com/wp-content/uploads//images/9/29/36529/1.jpg&imgrefurl=http://en.akihabaranews.com/36529/misc/pac-man-hidden-in-lg-logo&usg=__JbQKeXGqt8xJzmNR6yb5sLPt0HU=&h=300&w=728&sz=63&hl=en&start=3&sig2=rf33v05hCx8NJs-KG1l5Vg&zoom=1&itbs=1&tbnid=OtVi9ZATRzyODM:&tbnh=58&tbnw=141&prev=/search?q=LG+logo&hl=en&rls=com.microsoft:en-US&biw=1259&bih=626&tbm=isch&ei=bKzlTd7ZMIH30gGH9sTACg


SuperTicket

• First bundled offering from multiple studios

• Purchase movie ticket and pre-order

digital download at the same time

• Lowest retail price of $19.99

includes 500 bonus SCENE points

• Movies available for earliest possible

home entertainment release date

• Now available for essentially all major titles


• Canada’s top loyalty program for movie

lovers

• Members are represented in 33% of

Canadian households

• One of top five loyalty programs in

Canada

• One in five Canadians are SCENE

members

0.6

1.4

2.1

2.7

3.3

4.3

5.3

6.3

7.37.9

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3

Number of Members (Millions)

SCENE – Loyalty Program


SCENE – Extra Benefits

COMPETITIVE ADVANTAGE

• Drives attendance

frequency

• Encourages concession

spend

• Better target offers to

guests

• Cineplex Store – Build

awareness / promote trial

• Great opportunity for film

studios and promotional

partners


MediaCineplex Media • Cineplex Digital Media


Concourse

Network

TimsTV

Shopping

Centres

Magazines

Cineplex Mobile Cineplex.com

Special Media

ONroute

Digital

Signage

Show time

Pre-Show

Cineplex Media


Cineplex Media

CINEPLEX MEDIA REPRESENTS

95% OF CANADA’S BOX OFFICE

• On-screen advertising – show time, Pre-Show, and TimePlay

• Cineplex Magazine and Le magazine Cineplex

• Cineplex Magazine is the #2 most read magazine in Canada and

#1 most read magazine in Canada for all demographics under

50 years old

• Cineplex.com and Cineplex Mobile advertising

• Cinema Lobby Digital Signage (Digital Backlits, Digital Lobby

Screens)

• Cinema Lobby Specialty media

• Sponsorship and naming rights

• Cineplex Digital Media sales

Yukon

94%

B.C.

96%

Alberta

95%

Sask.

97%

Manitoba

99% Ontario

97% Quebec

79%

Atlantic

98%

Box Office Source: Rentrak Year End 2015


46%

59%

15%

61%

84%

39%

70%

88%

40%

AdvertisingAwareness

Correct BrandAssociation

Ad Entertainment

SOURCES: *A Comprehensive Picture of Digital Video and TV Advertising, IAB with

Nielsen data 2012; **Cinema Advertising Show-Time Impact Study 2010-2013+2015

Strategic Marketing Counsel (SMC) and online survey via Vision Critical, Pre-Show Study

2010-2014, SMC

Cineplex Media

Cinema Pre-ShowTV (USA) Cinema Show Time


Cineplex Presents TimePlay

730SCREENS

NATIONWIDE(as at September 30,

2016)

Overwhelming ResultsFOR ADVERTISERS

56THEATRES

NATIONWIDE(as at September 30,

2016)


Interactive Media Zones (IMZs)

• Touch

• Gesture

• Image Capture

• Content Manipulation

• Social Media Connectivity

• Data Capture

46 IMZsAS AT SEPTEMBER 30, 2016

EngagingInteractive

ADVERTISING EXPERIENCE


Digital Poster Cases

• 3 minute loop keeps content upbeat and timely

• 84” fully HD digital backlits

• Roll-out now complete across circuit

447 screens in 138 locations

AS AT SEPTEMBER 30, 2016

Dynamic ScreensBRING CAMPAIGNS TO LIFE


Integrated Media Campaigns


Cineplex Digital MediaPath to Purchase • Point of Purchase


Path to Purchase

• Full-service, digital place-based ecosystems

• Experiential technologies on the “path to purchase”

• Award-winning digital signage company

• We design, install, maintain and operate networks for the retail,

financial, hospitality and entertainment industries


Oxford Properties

• Expanded agreement to develop best-in-class,

in-mall digital ecosystem

• 10 shopping centres in major markets across Canada

• Enhancing the customer experience

• Influencing customer behaviour on the ”path to purchase"


Ivanhoe Cambridge

• Signed agreement to install, maintain and operate digital display

network

• Nearly 230 digital displays in 21 shopping centres across Canada

• Engaging shopper experiences

• A network of floor and wall media displays, interactive digital media

posters and digital spectacular screens


Point of Purchase

• Market-leading digital signage company

• Largest digital networks in Canada

• Proprietary technology

• Designs, installs, manages and consults on some of the largest digital merchandising networks in North America

RETAILQUICK SERVICE RESTAURANTS

FINANCIAL


Quick Service Restaurants


TimsTV

MORE THAN 2,200 TIM HORTONS LOCATIONS ACROSS CANADA

One of the largest digital signage networks in Canadian retail


Financial


Retail


Amusement Gaming and LeisurePlayer One Amusement Group (formerly Cineplex Starburst Inc. • eSports • The Rec Room


Player One Amusement Group(formerly Cineplex Starburst Inc.)

Largest Amusement Gaming Company in

Canada With a Growing Presence in the US

• Wholly owned and operated

• Supplies arcade equipment to Cineplex theatres, other circuits and

numerous entertainment venues

• Owns and operates Family Entertainment Centres (FECs) across Canada,

including XSCAPE and Playdium

• Owns and operates Premier Amusements Inc., an American gaming

supplier

• Owns and operates Brady Starburst LLC, one of North America’s largest

distributors of amusement and vending equipment

• Acquired Tricorp Amusements Inc., a leading American provider of

interactive video, redemption and amusement gaming services, effective

October 1.

• On November 10, announced acquisition of Florida-based SAW, LLC, a

leading provider of coin-operated rides, amusement and redemption games


Player One Amusement Group

• Largest distributor and operator of arcade games in Canada and

second largest distributor in the USA

• Well-positioned for future growth in this resurging business

• Route business – we provide the equipment and share the

revenue with a third party operator such as theme parks

and FECs

• Distribution business – customers purchase games through our

sales and service representation of more than 70 leading game

manufacturers


Family Entertainment Centres (FECs)

Playdium Mississauga

• 5 other FECs

• Player One Amusement Group owns 6

self-operating FECs across Canada

• 24 co-operated

licensed locations

24 XSCAPE

Entertainment Centres

in Cineplex theatres


XSCAPE Entertainment Centres


An entertainment concept in Cineplex

theatres featuring the latest video and

interactive games along with a

redemption centre


eSports

• In 2015, Cineplex entered the world of eSports

• Cineplex and WorldGaming Network LP (“WGN”) are creating a

community that connects live online gaming with unique in-theatre

gaming experiences

• Leagues, gaming ladders and tournaments for the

competitive gaming community

• WGN hosted its first multi-player Canadian championship, featuring the

game Uncharted 4

• Collegiate StarLeague (“CSL”), a subsidiary of WGN, announced a

partnership with Riot Games to present the 2017 season of CSL’s League

of Legends collegiate league, called ‘uLoL Campus Series’, which will see

over 500 schools in North America competing to qualify for the regional

and national championships.


eSports


NOW OPEN• The Rec Room at South Edmonton Common

• 60,000 square feet

• incredible dining experiences with exciting live entertainment and

amusement gaming experiences

The Rec Room


COMING SOON• 40,000 – 60,000 sq. ft.

• Toronto Roundhouse (Q1, 2017)

• Deerfoot Crossing Calgary (Q2, 2017)

• 10-15 locations


The Rec Room

The first location of The Rec Room at South Edmonton

Common opened its doors on September 19, 2016. The

Rec Room features a wide range of entertainment options:

• A large attractions area with amusement games and interactive

attractions alongside recreational activities like pool and ping pong

• Multiple dining options including the upscale casual restaurant

Three10

• A bar area featuring massive high-definition screens

• An auditorium-style space for live entertainment

The guest experience integrates the latest in technology

and gamification coupled with SCENE.


Acquisitions

EK3 – Acquired August 2013 Empire Theatres – Acquired October 2013

Brady Starburst – Acquired March 2015 WorldGaming – Acquired September 2015


Financial Highlights


$740$805

$850

$964$1,006 $998

$1,092

$1,171$1,235

$1,371

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

TOTAL REVENUE$ MILLIONS


$118

$137$141

$160$168

$173

$200 $202 $201

$250

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

ADJUSTED EBITDA$ MILLIONS


$459$489

$511

$581$598

$577

$638$665 $673

$711

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

BOX OFFICE REVENUE$ MILLIONS

57.4

61.163.5

70.0 69.066.1

71.272.7 73.6

77.0

Attendance (Millions)


$214

$235

$252

$288 $295 $292

$329

$350

$375

$418

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

FOOD SERVICE REVENUE$ MILLIONS

$3.72$3.84

$3.96$4.12

$4.27$4.41

$4.63$4.82

$5.09

$5.43

Concession Per Patron (CPP)


$47

$56$61

$67

$82

$91$84

$110

$134

$154

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Digital Media RevenueMedia Revenue

MEDIA REVENUE$ MILLIONS


$21$25 $26

$28

$32

$38$41

$46

$53

$88

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

OTHER REVENUE$ MILLIONS


$12.89 $13.17 $13.38$13.78

$14.59$15.11 $15.34

$16.11$16.77

$17.80

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Concessions Per Patron (CPP)Box Office Per Patron (BPP) Media Per Patron Other Per Patron

TOTAL REVENUE PER PATRON


Q3 2016 Q3 2015 %

Box Office $180.1 $172.6 4.4%

Food Service $109.6 $105.5 3.9%

Media $44.8 $34.3 30.7%

Other $41.4 $15.9 160.2%

Total Revenue $376.0 $328.2 14.5%

Adjusted EBITDA $67.3 $59.1 13.8%

Adjusted EBITDA Margin 17.9% 18.0% -0.1%

Attendance 19.2 19.4 -1.0%

BPP $9.37 $8.89 5.4%

CPP $5.69 $5.43 4.8%

2016 Q3 RESULTSMILLIONS, EXCEPT ADJUSTED EBITDA MARGIN AND PER PATRON AMOUNTS


Corporate Conversion Jan. 1, 2011

112%

80%

69%67%

59%

56%

65% 64%

57%

64%62%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PAYOUT RATIO

$1.15 $1.15 $1.18

$1.24 $1.26 $1.26$1.28

$1.33

$1.41$1.48

$1.54

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

DIVIDENDS


Maturity Capacity Drawn(as at September

30/16)

Reserved(as at September

30/16)

Remaining

Term Facility Apr. 2021 $150 $150 — —

Revolving Facility Apr. 2021 $400 $185 $6.2 $208.8

Total $550 $335 $6.2 $208.8

2.89

2.39

1.941.88

1.641.58

1.19

0.89

1.131.27

0.97

1.35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016

COVENANT LEVERAGE RATIO

CREDIT FACILITIES(MILLIONS)


Outstanding Shareholder Return

$0

$10

$20

$30

$40

$50

$60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

* As of September 30, 2016


Non-GAAP

Financial Measures

EBITDA EBITDA is calculated by adding back to net income, income tax expense, amortization and interest expense net of interest income

Adjusted EBITDA Adjusted EBITDA excludes the loss on disposal of assets, the equity income of CDCP, the non-controlling interests’ share of adjusted EBITDA of WGN and BSL,

and depreciation, amortization, interest and taxes of Cineplex’s other joint ventures.

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, tenant inducements, principal

component of finance lease obligations, share of income of joint ventures net of non-cash depreciation, non-controlling interests share of adjusted EBITDA, WGN

and BSL and net cash received from CDCP.

Attendance Attendance is calculated as the total number of paying patrons that frequent Cineplex’s theatres during the period.

BPP Calculated as total box office revenues divided by total paid attendance for the period.

BPP excluding premium

priced product

Calculated as total box office revenues for the period, less box office revenues from 3D, UltraAVX, VIP and IMAX product divided by total paid attendance for the

period less paid attendance for 3D, UltraAVX, VIP and IMAX product.

CPP Calculated as total theatre food service revenues divided by total paid attendance for the period.

Premium Experiences Defined as 3D, UltraAVX, IMAX and VIP product.

Theatre concession

margin

per patron

Calculated as total theatre food service revenues less total theatre food service cost, divided by attendance for the period.

Same theatre metrics Same theatre metrics are calculated by removing the results for all theatres that have been opened, acquired, closed or otherwise disposed of during the periods.

Film cost percentage Calculated as total film cost expense divided by total box office revenues for the period.

Theatre concession cost

percentage

Calculated as total cost of theatre food service divided by total theatre food service revenues for the period.

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:

Thank You!

Documents

2016 Third Quarter - Cineplexirfiles.cineplex.com/investors/presentations/2016/Q3...Digital Poster Cases •3 minute loop keeps content upbeat and timely •84” fully HD digital