CSULB Regional Final

CFA Institute Research Challenge

RyanYvonne

MattDevinHenry

• Industry• Motion Picture and Television Production and Distribution

• Niche• “Pure” Content Creator

• Concern• Recent Underperformance post-Hunger Games

Company Summary

Market Profile

Closing Price (April 1, 2016) $21.13

52 Week High $41.41

52 Week Low $16.21

Average Volume (3M) 2,689,580

Diluted Shares Outstanding 159,412,000

Market Cap 3.03B

Dividend Yield 1.76%

Beta 1.01874

EV / Revenue 2.09

EV / EBITDA 68.72

Institutional Holdings 71.90%

Insider Holdings 29.01%

Business Overview

Industry Outlook & Competitive

Positioning

Financial Analysis Valuation Risk Analysis Conclusion

Investment Summary

Team Estimate Target Price:

$14.97

Price as of (4/1/16):$21.13

Drivers• Motion Picture Margins• Home Entertainment

Capitalization• Television Strength• Disciplined Strategy

Risks• Uncertainty/Flaw in

Content Production Results/Process

• Distributors becoming Content Creators

• “One-Trick Pony”

8.27%

8.39%

70.64%

12.71%

2012-2015 Box Office Market Share

Lions Gate Paramount

Major Studios (5) Other Studios

Lionsgate: #7 Film Studio

Business Overview


Positioning


Five-Forces ModelBargaining Power of Buyers• Ticket Sales • Cinema venue• Home Entertainment platforms

Threat of New Entrants• Digital Distributors

Degree of Rivalry• Competitive Industry• Consolidations

Bargaining Power of Supplier

Bargaining Power of Buyers

Threat of SubstitutionThreat of New Entrants

Degree of Rivalry

012345

0 = No threat to LGF5 = High Threat to LGF

Business Overview


Positioning


Threat of Substitution• Piracy• Alternative Entertainment

Bargaining Power of Suppliers• Talent Costs• Production Costs

Business Overview


Positioning


Bargaining Power of Supplier

Bargaining Power of Buyers

Threat of SubstitutionThreat of New Entrants

Degree of Rivalry

012345

0 = No threat to LGF5 = High Threat to LGF

Five-Forces Model

20052006

20072008

20092010

20112012

20132014

$-

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00

$3,500.00

$4,000.00

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

Spending Trend

Avg Ann HH Exp on EntertainmentUS GDP Entmt & Rec Spending

($bi

llion

s)

20052006

20072008

20102009

20112012

20132014

2015 $-

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

$14,000.00

$16,000.00

0

20

40

60

80

100

120

Demand Driver

Disposable Personal Income Consumer Confidence

($bi

llion

s)

Sources: BEA, BLS

Consumer Economy

Macro Industry

Business Overview


Positioning


Consumer Purchasing Expenditures for Motion Picutre

Business Overview


Positioning


7

Sources: National Association of Theatre Owners

20052006

20072008

20092010

20112012

20132014

201536000

36500

37000

37500

38000

38500

39000

39500

40000

40500

5400

5500

5600

5700

5800

5900

6000

6100

6200

Theatrical Exhibitors

Number of U.S. cinemas Number of U.S. screens

Scre

ens

Cine

mas

19951997

19992001

20032005

20072009

20112013

2015 $-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Box Office

Domestic Box Office ($B) Average Ticket Price ($)Tickets (billion)

Axis Title

Tick

ets

Theater

Macro Industry

8


Business Overview


Positioning


Sources: National Association of Theatre Owners

19951997

19992001

20032005

20072009

20112013

2015 $-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Box Office

Domestic Box Office ($B) Average Ticket Price ($)Tickets (billion)

Axis Title

Tick

ets

Theater

Macro Industry

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

2000

4000

6000

8000

10000

12000

14000

16000

18000

0

5

10

15

20

25

30

35

40

45

50

3-D FIlm

3-D Screens 3-D Releases

9

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $-

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

Television

Basic Cable Networks Broadcast networksSyndication InternationalPay TV

($bi

llion

)

Micro Industry

Business Overview


Positioning


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00 Total Filmed Entertainment

Film content revenue TV content revenue Total Entertainment Revenues

($bi

llion

s)

Industry Revenue

Sources: SNL Kagan

10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00 Total Filmed Entertainment

Film content revenue TV content revenue Total Entertainment Revenues

($bi

llion

s)

Sources: SNL KaganMicro Industry

Business Overview


Positioning


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

5000

10000

15000

20000

25000

30000Motion Picture

Domestic International

($bi

llion

)

Industry Revenue

11

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $-

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00 Motion Picture

Domestic International

($bi

llion

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $-

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

$14,000.00 Motion Picture - Domestic

Theatrical rentals Basic cable (TV licensing) Pay TV PPV/VOD Home video

($bi

llion

)

Industry Revenue

Business Overview


Positioning


Micro Industry Sources: SNL Kagan

12

Sources: Digital Entertainment Group, Euromonitor International from trade sources/national statistics

2010 2011 2012 2013 2014 2015 -

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

18,000.00

20,000.00 Home Entertainment

Total Home Entertainment Sell Through Rental Digital

($m

illio

ns)

Internet Consumption

Micro Industry

Business Overview


Positioning


Focus on content• 16,000 Content Library• Television

Diversification• Distribution• Partners/Affiliates• Movie Genre

Disciplined Approach• Greenlighting• Productions and Acquisitions

Business Operation - Strategy

Business Overview


Positioning


Submit Project to

Committee

• Artistic Merit

• Commercial Viability

Revenue - Cost

Projections

• Legal Review

• Financing Options

Committee Decision

Final Decision

Greenlighting Process

Disciplined Approach• Greenlighting• Productions and Acquisitions

Business Overview


Positioning


Co-Production Agreements

Pre-Selling International

Distribution Rights

Incentive Programs

Talent Contractual Agreements

Financial Risk

Mitigation

15

$140 million Budget

$10 million at loss

$90 million Budget

$10 million at loss

Business Overview


Positioning


Financial Model

16

Business Overview

Business Overview


Positioning


Source: Lionsgate, 10-K

Series1 $-

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

$1,800,000.00

$2,000,000.00

$1,320,012.00

$1,135,110.00

$433,546.00 $421,112.00

$1,753,558.00

$1,556,222.00

Revenue Nine Months ending Dec. 31

Motion Pictures Television Production Total Revenue

($th

ousa

nds)

2015

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

75.43%

24.57%

27.31%

RevenueNine Months Ending Dec. 31, 2015

Home Entertainment Television Production Motion Pictures

2015 2014Fiscal 2016 Theatrical Slate: Fiscal 2015 Theatrical SlateMockingjay - Part 2 Mockingjay - Part 1Love the Coopers John WickThe Last Witch Hunter Addicted*Freeheld* The Expendables 3Sicario** Step Up All InShaun the Sheep Movie The Quiet OnesAmerican Ultra Draft DayThe Age of AdalineChild 44*Fiscal 2015 Theatrical Slate: Fiscal 2014 Theatrical SlateInsurgent DivergentMockingjay - Part 1 Catching FireLove & Mercy A Most Wanted ManUn Gallo Con Muchos Huevos Cantinflas

*limited release**limited release initially; wide release in Oct., 2015

2014 2015 -

50

100

150

200

250

300

350

400

450

500

Motion Picture SubsegmentRevenues

Theatrical Home Entertainment TelevisionInternational Other

($m

illio

ns)

Motion Picture

Business Overview


Positioning


18

Budget ($M) 28 90 160 140 110

Box Office 15.4 140.4 653 132.9 137.4

Source: 10-Q

Source: Box Office Mojo

2014 2015 -

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000

Gross Profit

Motion Pictures Television Production Total Gross Profit

($Th

ousa

nds)

2014 2015 -

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Net Profit

Motion Pictures Television ProductionTotal Profit

($th

ousa

nds)

Business Overview


Positioning


19

Business Overview


Positioning


FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Profitability Ratios

Return on Assets Return on Capital Return on Equity

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Margin Analysis

Gross Margin EBITDA Margin Net Income Margin Free Cash Flow Margin

20

Business Overview


Positioning


Source: Bloomberg

ROE Profit Margin Asset Turnover Equity Multiplier

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%DuPont Equation

2007 2011 2015

2016 2017 2018 2019 Thereafter Total Dec. 31, 2015

Production loans 138,099.00 710,249.00 21,600.00 - - 869,948.00 869,948.00 Average Interest Rate 3.63 3.54 3.60 - -

5.25% Senior Notes - - - 225,000.00 - 225,000.00 231,750.00 Average Interest Rate - - - 5.25 -

Term Loan Due 2022 - - - - 400,000.00 400,000.00 396,500.00

Average Interest Rate - - - - 5.00

January 2012 4.00% Notes - 41,850.00 - - - 41,850.00 41,707.00 Average Interest Rate - 4.00 - - -

April 2013 1.25% Notes - - - 60,000.00 - 60,000.00 53,218.00

Average Interest Rate - - - 1.25 -

Debt/ year 138,099.00 752,099.00 21,600.00 285,000.00 400,000.00 1,596,798.00 1,593,123.00

22

Valuation

• Free Cash Flow to Firm

Discounted Cash Flow

• EV/EBITDA Multiple

Relative Valuation

Business Overview


Positioning


18

• Quirky, diversified film slate• Failed blockbuster films• Young-Adult loss of appeal

Motion Picture

• Diversified distribution strategy• Box office-to-home

entertainment

Home Entertainmen

t

• Strong, diversified television slate

• Pilgrim StudiosTelevision

23

Valuation

• Perpetuity growth: 2.00%

Discounted Cash Flow

• Industry avg.: 12.78%

Relative Valuation

Business Overview


Positioning


18

• Dependence on television• Uncertain box-office

performanceRevenue

• Decreased expenses• Demand from distributorsMargin

• Starz Entertainment• Summit Entertainment, Pilgrim

StudiosConsolidation

24

In Millions of Mar 11 A Mar 12 A Mar 13 A Mar 14 A Mar 15 A Mar 16 E Mar 17 E Mar 18 E Mar 19 E Mar 20 E Mar 21 E

Revenue 1582.72 1587.579 2708.141 2630.254 2399.64 2183.672 2489.387 2692.249 2789.163 2812.72 2954.13

% YoY Growth 0% 0% 71% -3% -9% -9% 14% 8% 4% 1% 5%

Gross Margins 51% 43% 50% 50% 46% 40% 45% 46% 47% 47% 47%Operating Margins 4% 2% 10% 10% 9% 1% 13% 12% 13% 11% 11%

Tax Rate 239% 0% 0% 23% 16% 25% 13% 15% 18% 18% 18%

WACC2015-16

8.6%

25


Revenue 1582.72 1587.579 2708.141 2630.254 2399.64 2183.672 2489.387 2692.249 2789.163 2812.72 2954.13

% YoY Growth 0% 0% 71% -3% -9% -9% 14% 8% 4% 1% 5%


Tax Rate 239% 0% 0% 23% 16% 25% 13% 15% 18% 18% 18%

Worst Case

• -2% yoy growth• -1% perpetuity growth• -2% operating margins• Higher tax rate

Best Case

• +2-3% yoy growth• -2% perpetuity growth• +2% operating margins• Same tax rate

26


Revenue 1582.72 1587.579 2708.141 2630.254 2399.64 2183.672 2489.387 2692.249 2789.163 2812.72 2954.13

% YoY Growth 0% 0% 71% -3% -9% -9% 14% 8% 4% 1% 5%


Tax Rate 239% 0% 0% 23% 16% 25% 13% 15% 18% 18% 18%

NOPAT

(87)

34

273

201

186

15

282

273

284

255

267

Free Cash Flow

(225)

66

(91)

31

486

(2) 244

223

300

313

270

EBITDA

64

68

38

281

267

229

25

330

330

363

323

27

Valuation

DCF Analysis

• $18.71

Relative Valuation

• $17.71

Target Price$18.21

2Estimated Downside Potential:

Business Overview


Positioning


22

Risks

Business operations

Competition

Consumers

Business Value

Business Overview


Positioning


28

23Perpetuity Growth Model

WACC/Growth 0.0% 1.0% 2.0% 3.0% 4.0%

6.6% 20.45 24.23 29.65 38.08 53.00

7.6% 16.88 19.56 23.20 28.42 36.54

8.6% 14.15 16.13 18.71 22.22 27.25

9.6% 11.98 13.49 15.41 17.90 21.28

10.6% 10.23 11.41 12.87 14.71 17.12

Relative Valuation – EV/EBITDA Multiple

WACC/ Multiple 8.6x 10.1x 11.6x 13.1x 14.6x

6.6% 13.99 16.35 18.70 21.05 23.41

7.6% 13.60 15.90 18.20 20.50 22.79

8.6% 13.21 15.46 17.71 19.95 22.20

9.6% 12.84 15.03 17.23 19.42 21.62

10.6% 12.47 14.62 16.76 18.91 21.06

29

Sell

Target$ 18.21

Current: $21.31

Positive: Home Entertainment, Television

Negative: Motion Picture

Conclusion

Business Overview


Positioning


27

• Affiliates• Senior Management• Board of Directors• Board Committee Struct

ure• Operating Activities• Financing Activities• Investing Activities• Debt Table• Total Debt

• Maturity Profile• Bond• Total Loans• International Expansion• Stakeholders • Theatrical Slate• Current Television Slate • Conglomerate• Merger and Acquisition• Top 10 Shareholder

• Debt Analysis• Sensitivity Analysis

30

Appendix

Average

Dreamworks (B-)

Lionsgate (BB-)

Viacom (BBB-)

Sony (BBB-)

Time Warner (BBB)

21st Century Fox (BBB+)

Comcast (A-)

Disney (A)

MGM Holdings

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

42.72%

23.09%

60.96%

76.29%

13.81%

50.21%

50.31%

48.80%

26.30%

15.05%

Total Debt/ Book Cap

Average

Lionsgate

(BB-)

Viacom (B

BB-)

Sony (B

BB-)

Time W

arner

(BBB)

21st Century Fox (

BBB+)

Comcast

(A-)

Disney (A

)

MGM Holdings0

5

10

15

20

25

30

35

40

45

Interest Coverage

EBITDA minus CAPEX/ Interest EBITDA/ Interest

(tim

es)

Top 10 Stockholders(as of April 1, 2016)

Holder Name % Ownership No. of Shares Held Institution Type

1. MHR FUND MANAGEMENT LLC 20.14% 30,213,805 Hedge Fund Manager

2. CAPITAL GROUP COMPANIES INC 10.94% 16,404,005 Investment Advisor

3. CAPITAL RESEARCH GLOBAL INVESTOR 10.94% 16,404,005 Investment Advisor

4. FIDELITY MANAGEMENT & RESEARCH 7.23% 10,840,751 Investment Advisor

5. JANA PARTNERS LLC 5.69% 8,527,645 Hedge Fund Manager

6. CAPITAL RESEARCH GLOBAL INVESTOR 4.37% 6,559,000 Investment Advisor7. VANGUARD GROUP INC 4.24% 6,360,972 Investment Advisor


9. KORNITZER CAPITAL MANAGEMENT INC 2.97% 4,453,970 Investment Advisor

10. NAYA CAPITAL MANAGEMENT UK LTD 2.94% 4,414,250 Hedge Fund Manager

Affiliates

Lionsgate

Motion Picture

Pantelion Films

Roadside Attraction

Summit EntertainmentCelestial Tiger Entertainment

Channels

Pop

EPIX

Starz

Nonscipted TV Production

Defy Media

Demar Mercury

Pilgrim Studio

34

Senior ManagementJon Feltheimer

Chief Executive Officer & DirectorMichael Burns

Vice Chairman & Director

James W BargeChief Financial Officer

Steven BeeksCo-Chief Operating Officer

Co-President of Motion Picture Group President of Lions Gate Entertainment, Inc.

Brian GoldsmithCo-Chief Operating Officer

Wayne LevinGeneral Counsel & Chief Strategic Officer

Summary Executive CompensationName and Principal Year Salary Bonus Stock Awards Option

AwardsNon-Euqity

Incentive Plan Compensation

All Other Compensatio

nTotal

Jon Feltheimer 2015 $1,500,000.00 $- $1,000,000.00 $- $4,050,000.00 $220,311.00 $6,770,311.00 Chief Executive Officer

2014 $1,465,428.00 $- $14,402,803.00 $41,513,029.00 $8,750,000.00 $197,201.00 $66,328,461.00

2013 $1,264,070.00 $6,000,000.00 $3,625,278.00 $- $1,500,000.00 $184,535.00 $12,573,883.00 Michael Burns* 2015 $1,000,000.00 $- $4,500,000.00 $- $3,000,000.00 $146,965.00 $8,646,965.00 Vice Chairman 2014 $1,000,000.00 $- $3,000,000.00 $- $4,400,000.00 $78,205.00 $8,478,205.00

2013 $970,962.00 $4,000,000.00 $7,900,172.00 $13,995,430.00 $1,300,000.00 $33,484.00 $28,200,048.00 James W. Barge 2015 $812,500.00 $- $1,212,000.00 $719,637.00 $450,000.00 $2,921.00 $3,197,058.00 Chief Financial Officer 2014 $381,538.00 $1,100,000.00 $936,250.00 $2,597,054.00 $- $477.00 $5,015,319.00 Steven Beeks 2015 $900,000.00 $- $1,285,500.00 $1,665,285.00 $371,250.00 $2,921.00 $4,224,956.00 Co-COO 2014 $900,000.00 $- $- $- $825,000.00 $3,657.00 $1,728,657.00 VP Motion Picture 2013 $900,000.00 $850,000.00 $- $- $- $5,960.00 $1,755,960.00 President of LGF

Wayne Levin 2015 $825,000.00 $- $1,987,680.00 $1,596,786.00 $471,250.00 $2,921.00 $4,883,637.00 General Counsel 2014 $825,000.00 $- $- $- $825,000.00 $2,932.00 $1,652,932.00 Chief Strategic Officer 2013 $751,442.00 $612,750.00 $1,896,000.00 $1,258,600.00 $187,500.00 $2,960.00 $4,709,252.00

36

Board of DirectorMark H Rachesky,

M.D.(Chairman of board,

member of the Strategic Advisory Committee and Compensation

Committee)

Founder and President of MHR

Fund Management LLC

27.2% ownership

Michael Burns (Vice Chairman)

Past Managing Director and Head

of Office at Prudential Securities Inc. of Los Angeles

Investment Banking Office

2.4% ownership

Jon Feltheimer(CEO and Director)

Founder and past President of TriStar Television and past

President of Columbia TriStar

Television

2.6% ownership

Dr. John C. Malone(Director)

Chairman of the Board of Liberty

Media Corporation; Director of Discovery

Communication, Inc.

3% ownership

Frank Giustra(Current Director,

founded Lionsgate and past Chairman, 1997-

2003)

CEO of Fiore Financial

Corporation

Harald Ludwig(Director)

President and CEO of Macluan Capital

Corporation

37

Board of DirectorHardwick Simmons

(Chairman of the Strategic Advisory

Committee and member of the Audit

& Risk Committee)

Past Chairman and CEO of the NASDAQ Stock

Market Inc.; past President

and CEO of Prudential

Securities Inc.

Arthur Evrensel(Chairman of the

Compensation Committee)

Founding partner of the

law firm of Michael,

Evrensel & Pawar LLP

G. Scott Paterson(Chairman of the

Audit & Risk Committee and

Financial Expert)

Past Chairman & CEO of Yorkton

Securities Inc.; past Chairman

of the Canadian

Venture Stock Exchange and Vice Chairman of the Toronto

Stock Exchange

Daryl Simm(Member of

Nominating and Corporate

Governance Committee and member of the Compensation

Committee)

Chairman and CEO of

Omnicorn Media Group

Gordon Crawford(Member of Strategic Advisory Committee)

Past SVP at Capital

Research and Management

Phyllis Yaffe(Member of the

Audit & Risk Committee and member of the Nominating and

Corporate Governance Committee)

Past CEO and director of

Alliance Atlantis

Communications; Lead

Director, the Chair of the Nominating

and Governance

Committee of Torstar

Corporation

38

Board Committee StructureChairman

Vice Chairman Board Committee

Audit & Risk

Financial Expert

CompensationNominating

and Corporate Governance

Strategic Advisory

Operating ActivitiesOperating Activities 2015 2014 Net Change

Operating income (loss) $ (4,843) $ 194,421 $ (199,264)Amortization of films and television programs 655,288 639,472 15,816 Non-cash share-based compensation 47,399 48,691 (1,292)Cash interest (32,561) (29,546) (3,015)Current income tax provision (10,292) (19,622) 9,330 Other non-cash charges included in operating activities 9,677 14,661 (4,984)Cash flows from operations before changes in operating assets and liabilities 664,668 848,077 (183,409) Changes in operating assets and liabilities: Accounts receivable, net (36,663) (94,803) 58,140 Investment in films and television programs (771,255) (815,469) 44,214 Other changes in operating assets and liabilities 32,699 (100,846) 133,545 Changes in operating assets and liabilities (775,219) (1,011,118) 235,899 Net Cash Flows Used In Operating Activities $ (110,551) $ (163,041) $ 52,490 39

40

Investing ActivitiesInvesting Acitivies 2015 2014Proceeds from the sale of equity method investees $ - $ 14,575

Investment in equity method investees (3,954) (14,750)

Purchase of Pilgrim Studios, net of cash acquired of $15,816 (126,892) -

Purchases of property and equipment (13,680) (11,293)

Other investing activities (750) (2,000)

Net Cash Flows Used In Investing Activities $ (145,276) $ (13,468)

41

Financing ActivitiesFinancing Activities 2015 2014

Senior revolving credit facility - borrowings $ 238,000 $ 681,500 Senior revolving credit facility - repayments (238,000) (618,619)Net proceeds from senior revolving credit facility - 62,881 Term Loans $ 24,036.00 $ - Convertible senior subordinated notes - repurchases $ (5.00) $ (16.00)Net proceeds from corporate debt $ 24,031.00 $ 62,865.00 Production loans - borrowings $ 509,569.00 $ 533,781.00 Production loans - repayments $ (240,565.00) $(261,868.00)Net proceeds from production loans $ 269,004.00 $ 271,913.00 Repurchase of common shares $ - $(129,859.00)Other financing activities $ (50,791.00) $ (27,304.00)Net Cash Flows Provided By Financing Activities $ 242,244.00 $ 177,615.00

Debt Table 2016 2017 2018 2019 Thereafter Total Dec. 31, 2015

Production loans 138,099.00 710,249.00 21,600.00 - - 869,948.00 869,948.00

Average Interest Rate 3.63 3.54 3.60 - -

5.25% Senior Notes - - - 225,000.00 - 225,000.00 231,750.00


Term Loan Due 2022 - - - - 400,000.00 400,000.00 396,500.00

Average Interest Rate - - - - 5.00

January 2012 4.00% Notes - 41,850.00 - - - 41,850.00 41,707.00

Average Interest Rate - 4.00 - - -

April 2013 1.25% Notes - - - 60,000.00 - 60,000.00 53,218.00


Debt/ year 138,099.00

752,099.00 21,600.00

285,000.00 400,000.00

1,596,798.00

1,593,123.00

Total LoansTotal Loans

Production loans(2) 5.25% Senior Notes(3)Term Loan Due 2022(4) January 2012 4.00% NotesApril 2013 1.25% Notes

2016 2017 2018 2019 Thereafter -

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

800,000.00

Debt Maturity

2016 2017 2018 -

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

800,000.00

3.48

3.50

3.52

3.54

3.56

3.58

3.60

3.62

3.64

Production Loan

Production loans(2) Average Interest Rate

Off-balance production loan

Expenses(Nine Months ending Dec. 31)

2014 2015 -

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

1,000,000

Direct Operating Expense

Motion Pictures Television ProductionTotal Direct Operating Expense

($th

ousa

nds)

2014 2015 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

General and Administration

Motion Pictures Television ProductionTotal General and Administration

($th

ousa

nds)

2014 2015 -

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000

Distribution and Marketing

Motion Pictures Television ProductionTotal Distribution and Marketing

($th

ousa

nd)

Maturity Profile

Date Total Bond Prin Term Loan Out Amount Avail

2016 208.3529 0 208.3529358 0

2017 41.85 41.85 0 800

2018 285 285 0 0

2022 400 0 400 0

BondIssuer Cpn Maturity Amt Out(M) Curr Mty Type Principal Due(M) Interest Due(M)

Lions Gate Entertainment Inc 401/11/2017 41850USDCONVERTIBLE 41850 818.4

Lions Gate Entertainment Inc 1.2504/15/2018 60000USDCONVERTIBLE 60000 375

Lions Gate Entertainment Corp 5.2508/01/2018 225000USDAT MATURITY 225000 5906.25

47

StakeholdersWalmart• 8%

Verizon• 3.81%

AT&T • 2.32%

Best Buy• 1.46%Target • 1.21%

Source: Bloomberg

• LGF’s Revenue Sources

• Top 5 Stakeholder’s account for 16.8% of revenue

48

Theatrical Slate

Source: Boxofficemojo and J.P. Morgan Estimates

49

Current Television Slate

The Royals E!Rocket Jump: The Show HuluCasual HuluDeadbeat HuluNashville ABCOrange is the New Black Netflix

ConglomerateConglomerate Studio Parent Major Film Unit Other Film Unit

Twenty-First Century Fox, Inc. Fox Filmed Entertainment 20th Century Fox Searchlight, Blue Sky

The Walt Disney Co. Walt Disney Studios Walt Disney Pictures Pixar Animation, Lucasfilm, Marvel Studios

Comcast Corp. NBCUniversal Universal Pictures Illumination, Focus Features

Time Warner Inc. Warner Bros. Entertainment Inc. Warner Bros. Pictures DC Comics, New Line, Village Roadshow

Viacom Inc. Paramount Motion Pictures Group Paramount Pictures

Sony Corp. Sony Pictures Entertainment Columbia Pictures Sony Pictures, TriStar, Screen Gems

Statement of Cash FlowsCash Flow FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

3/31/2005 3/31/2006 3/31/2007 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012 3/31/2013 3/31/2014 3/31/2015Net Income 20.3 6.1 27.5 (74.0) (178.5) (19.5) (30.4) (39.1) 232.1 152.0 181.8 Depreciation & Amort., Total 218.7 4.5 3.7 5.5 7.7 12.5 5.8 4.3 8.3 6.5 6.6 Other Non-Cash Adj 10.6 217.6 306.2 453.5 512.7 563.9 639.9 643.2 984.8 1,076.1 955.3 Changes in Non-Cash Capital (154.0) (105.2) (277.6) (295.8) (443.8) (691.8) (573.0) (771.8) (949.1) (982.2) (1,047.2) Cash from Ops. 95.5 123.0 59.7 89.2 (101.9) (135.0) 42.3 (163.5) 276.1 252.5 96.5

Capital Expenditure (2.5) (5.5) (8.3) (3.6) (8.7) (3.7) (2.8) (1.9) (2.6) (8.8) (17.0)Sale of Property, Plant, and Equipment

- 34.9 - - - - - - - - -

Cash Acquisitions - - - - (28.8) (1.4) (1.0) (4.7) - - - Proceeds from Investment - - - - - - - - - 13.3 - Invest. in Marketable & Equity Securt.

- - (870.9) (235.7) (18.0) (14.0) (14.0) - (2.0) - (52.7)

Other Investing Activities 1.2 (194.7) 771.6 438.9 (243.1) (24.8) (10.6) (545.6) 9.1 (13.1) 14.6 Cash from Investing (1.3) (165.3) (107.6) 201.3 (298.6) (43.9) (28.4) (552.2) 4.5 (8.6) (55.2)Net Short Term Debt Issued/Repaid

(325.1) - - - 222.8 76.1 8.9 820.7 (265.7) (261.3) 84.4

Long-Term Debt Issued 314.8 - 97.1 166.1 - - - - - - 370.7 Long-Term Debt Repaid (1.9) (23.9) (49.0) (111.4) (5.4) (75.3) - - (3.7) - (229.5)Total Debt Issued/Repaid (12.2) (23.9) 48.1 54.8 217.4 0.8 8.9 820.7 (269.4) (261.3) 225.6 Pref. Dividends Paid - - - - - - - - - (6.9) (33.4)Total Dividends Paid - - - - - - - - - (6.9) (33.4)Increase in CapItal Stocks 24.7 1.4 4.3 1.3 2.9 - - 3.5 2.9 12.0 6.8 Decrease in Capital Stocks - - - (22.3) (45.0) - - (77.1) - - (144.8)Other Financing Activities (1.0) (1.0) 0.0 (4.1) (8.0) 108.9 (5.7) (53.6) (16.0) (24.4) (18.6) Cash from Financing 11.6 (23.5) 52.4 29.7 167.4 109.6 3.2 693.5 (282.5) (280.6) 35.7

Net Change in Cash 105.8 (65.9) 4.5 320.1 (233.1) (69.2) 17.2 (22.1) (1.9) (36.7) 77.0

Balance SheetBalance Sheet FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

3/31/2005 3/31/2006 3/31/2007 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012 3/31/2013 3/31/2014 3/31/2015ASSETS

Cash And Equivalents 112.8 47.0 51.5 371.6 138.5 69.2 86.4 64.3 62.4 25.7 102.7 Short Term Investments - 182.0 237.5 6.9 - - - - - - -

Total Cash & ST Investments 112.8 229.0 289.0 378.5 138.5 69.2 86.4 64.3 62.4 25.7 102.7 Accounts & Notes Receivable 150.0 182.7 130.5 260.3 227.0 292.9 330.6 784.5 787.2 885.6 891.9

Total Receivables 150.0 182.7 130.5 260.3 227.0 292.9 330.6 784.5 787.2 885.6 891.9 Restricted Cash 2.9 0.8 4.9 10.3 17.0 11.1 43.5 11.9 10.7 8.9 2.5

Other Current Assets (2.9) - - - - - 44.3 - 82.7 66.0 - Total Current Assets 262.9 412.5 424.4 649.1 382.5 373.3 504.8 860.8 942.9 986.2 997.1

Net Property, Plant & Equipment 30.8 7.2 13.1 13.6 42.4 12.4 9.1 9.8 8.5 14.6 26.7 Long-term Investments - - - - - - - - - - 438.3

Deferred Charges, LT - - - - - - - - - - 50.1 Other Long-Term Assets 560.9 633.6 699.6 875.0 1,242.3 1,141.5 1,055.2 1,917.5 1,809.5 1,850.9 1,779.9

Total Assets 854.6 1,053.2 1,137.1 1,537.8 1,667.3 1,527.2 1,569.2 2,788.0 2,760.9 2,851.6 3,292.1 LIABILITIES

Short-term Borrowings 1.2 14.8 - - 255.0 242.2 296.1 949.7 1,240.1 741.5 825.9 Accounts Payable 134.2 188.8 155.6 245.4 - - - - - - -

Other Current Liabilities 130.8 285.0 339.0 663.9 946.9 556.4 528.5 934.1 823.1 882.8 859.9 Total Current Liabilities 266.1 488.6 494.7 909.3 1,201.9 798.6 824.6 1,883.8 2,063.2 1,624.3 1,685.9

Long-Term Debt 408.6 385.0 325.0 328.7 281.5 192.0 358.3 108.3 87.2 354.5 489.1 Unearned Revenue, Non-Current 62.5 30.4 69.5 111.5 142.1 130.9 150.9 228.6 254.0 288.3 274.8

Other Non-Current Liabilities (0.0) - - - - 321.8 96.5 477.5 - - - Total Liabilities 737.2 904.0 889.2 1,349.5 1,625.6 1,443.3 1,430.3 2,698.2 2,404.3 2,267.1 2,449.8

Additional Paid In Capital 305.7 328.8 398.8 434.7 494.7 521.2 643.2 712.6 672.9 743.8 830.8 Retained Earnings (183.2) (177.1) (149.7) (223.6) (441.2) (460.6) (502.9) (542.0) (309.9) (157.9) 13.7

Comprehensive Inc. and Other (5.3) (2.4) (1.3) (0.5) (11.9) (6.6) (1.4) (3.7) (6.5) (1.4) (2.2) Total Common Equity 117.4 149.3 247.9 188.2 41.7 83.9 138.9 89.8 356.5 584.5 842.3

Total Equity 117.4 149.3 247.9 188.2 41.7 83.9 138.9 89.8 356.5 584.5 842.3 Total Liabilities And Equity 854.6 1,053.2 1,137.1 1,537.8 1,667.3 1,527.2 1,569.2 2,788.0 2,760.9 2,851.6 3,292.1

Income StatementIncome Statement FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

3/31/2005 3/31/2006 3/31/2007 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012 3/31/2013 3/31/2014 3/31/2015Revenue 842.6 951.2 976.7 1,361.0 1,466.4 1,489.5 1,582.7 1,587.6 2,708.1 2,630.3 2,399.6 Total Revenue 842.6 951.2 976.7 1,361.0 1,466.4 1,489.5 1,582.7 1,587.6 2,708.1 2,630.3 2,399.6 Cost Of Goods Sold 359.1 460.9 436.8 660.9 793.8 778.0 795.7 908.4 1,390.6 1,369.4 1,315.8 Gross Profit 483.5 490.3 539.9 700.1 672.6 711.5 787.0 679.2 1,317.6 1,260.9 1,083.9 Selling General & Admin Exp.

66.3 469.6 495.2 754.7 806.1 649.2 718.6 641.4 1,036.2 994.4 855.0

Depreciation & Amort. 3.2 2.5 2.8 5.5 7.7 12.5 5.8 4.3 8.3 6.5 6.6 Other Operating Expense/(Income)

364.3 - - - - - - - - - -

Operating Expense., Total 433.7 472.1 498.0 760.2 813.8 661.7 724.4 645.7 1,044.5 1,000.9 861.6 Operating Income 49.8 18.2 41.9 (60.1) (141.2) 49.9 62.5 33.5 273.1 259.9 222.3 Interest Expense 20.4 19.9 17.8 16.4 34.3 47.2 38.9 62.4 75.3 49.0 52.5 Interest Income - 4.3 11.9 11.3 5.8 1.5 1.7 2.8 4.0 6.0 2.8 Net Interest Exp. 20.4 15.6 5.9 5.1 28.5 45.6 37.1 59.7 71.3 42.9 49.7 Currency Exchange (Gains) Loss

- - - - 3.1 (0.0) 1.5 (0.3) 2.1 (2.1) -

Other Non-Operating Inc. (Exp.)

0.7 (0.1) 0.9 4.7 2.9 22.6 50.0 19.5 43.3 26.7 (40.8)

EBT Excl. Unusual Items 28.7 2.7 35.2 (69.9) (175.7) (18.3) (26.1) (45.4) 156.4 192.5 213.4 Gain (Loss) On Sale Of Assets

(0.7) (4.9) - - - - - (11.0) - - -

Other Unusual Items 1.3 9.7 - - - - - 21.9 - (22.5) - EBT Incl. Unusual Items 29.3 7.5 35.2 (69.9) (175.7) (18.3) (26.1) (34.4) 156.4 185.0 213.4 Income Tax Expense 8.9 1.4 7.7 4.0 2.7 1.2 4.3 4.7 (75.8) 32.9 31.6 Earnings from Cont. Ops. 20.4 6.1 27.5 (74.0) (178.5) (19.5) (30.4) (39.1) 232.1 152.0 181.8 Minority Int. in Earnings 0.1 - - - - - - - - - - Net Income 20.3 6.1 27.5 (74.0) (178.5) (19.5) (30.4) (39.1) 232.1 152.0 181.8

Summary Executive CompensationName and Principal Year Salary Bonus Stock Awards Option Awards

Non-Euqity Incentive Plan Compensation

All Other Compensation Total

Jon Feltheimer* 2015 $1,500,000.00 $- $1,000,000.00 $- $4,050,000.00 $220,311.00 $6,770,311.00

Chief Executive Officer 2014 $1,465,428.00 $- $14,402,803.00 $41,513,029.00 $8,750,000.00 $197,201.00 $66,328,461.00

2013 $1,264,070.00

$6,000,000.

00 $3,625,278.00 $- $1,500,000.00 $184,535.00 $12,573,883.00

Michael Burns* 2015 $1,000,000.00 $- $4,500,000.00 $- $3,000,000.00 $146,965.00 $8,646,965.00

Vice Chairman 2014 $1,000,000.00 $- $3,000,000.00 $- $4,400,000.00 $78,205.00 $8,478,205.00

2013 $970,962.00

$4,000,000.

00 $7,900,172.00 $13,995,430.00 $1,300,000.00 $33,484.00 $28,200,048.00 James W. Barge 2015 $812,500.00 $- $1,212,000.00 $719,637.00 $450,000.00 $2,921.00 $3,197,058.00

Chief Financial Officer 2014 $381,538.00

$1,100,000.

00 $936,250.00 $2,597,054.00 $- $477.00 $5,015,319.00 Steven Beeks 2015 $900,000.00 $- $1,285,500.00 $1,665,285.00 $371,250.00 $2,921.00 $4,224,956.00 Co-Chief Operating 2014 $900,000.00 $- $- $- $825,000.00 $3,657.00 $1,728,657.00

Officer and Co-President, 2013 $900,000.00

$850,000.00 $- $- $- $5,960.00 $1,755,960.00 Motion Picture Group Wayne Levin 2015 $825,000.00 $- $1,987,680.00 $1,596,786.00 $471,250.00 $2,921.00 $4,883,637.00 General Counsel and 2014 $825,000.00 $- $- $- $825,000.00 $2,932.00 $1,652,932.00

Chief Strategic Officer 2013 $751,442.00

$612,750.00 $1,896,000.00 $1,258,600.00 $187,500.00 $2,960.00 $4,709,252.00

Top 10 Stockholders(as of April 7, 2016)

Holder Name % Ownership No. of Shares Held Institution Type

1. MHR FUND MANAGEMENT LLC 20.14% 30,213,805 Hedge Fund Manager

2. CAPITAL GROUP COMPANIES INC 10.94% 16,404,005 Investment Advisor


4. FIDELITY MANAGEMENT & RESEARCH 7.23% 10,840,751 Investment Advisor

5. JANA PARTNERS LLC 5.69% 8,527,645 Hedge Fund Manager


7. VANGUARD GROUP INC 4.24% 6,360,972 Investment Advisor


9. KORNITZER CAPITAL MANAGEMENT INC 2.97% 4,453,970 Investment Advisor10. NAYA CAPITAL MANAGEMENT UK LTD 2.94% 4,414,250 Hedge Fund Manager

Statement of Cash FlowsCash Flow FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

3/31/2005 3/31/2006 3/31/2007 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012 3/31/2013 3/31/2014 3/31/2015Net Income 20.3 6.1 27.5 (74.0) (178.5) (19.5) (30.4) (39.1) 232.1 152.0 181.8 Depreciation & Amort., Total 218.7 4.5 3.7 5.5 7.7 12.5 5.8 4.3 8.3 6.5 6.6 Other Non-Cash Adj 10.6 217.6 306.2 453.5 512.7 563.9 639.9 643.2 984.8 1,076.1 955.3 Changes in Non-Cash Capital (154.0) (105.2) (277.6) (295.8) (443.8) (691.8) (573.0) (771.8) (949.1) (982.2) (1,047.2) Cash from Ops. 95.5 123.0 59.7 89.2 (101.9) (135.0) 42.3 (163.5) 276.1 252.5 96.5

Capital Expenditure (2.5) (5.5) (8.3) (3.6) (8.7) (3.7) (2.8) (1.9) (2.6) (8.8) (17.0)Sale of Property, Plant, and Equipment

- 34.9 - - - - - - - - -

Cash Acquisitions - - - - (28.8) (1.4) (1.0) (4.7) - - - Proceeds from Investment - - - - - - - - - 13.3 - Invest. in Marketable & Equity Securt.

- - (870.9) (235.7) (18.0) (14.0) (14.0) - (2.0) - (52.7)

Other Investing Activities 1.2 (194.7) 771.6 438.9 (243.1) (24.8) (10.6) (545.6) 9.1 (13.1) 14.6 Cash from Investing (1.3) (165.3) (107.6) 201.3 (298.6) (43.9) (28.4) (552.2) 4.5 (8.6) (55.2)Net Short Term Debt Issued/Repaid

(325.1) - - - 222.8 76.1 8.9 820.7 (265.7) (261.3) 84.4

Long-Term Debt Issued 314.8 - 97.1 166.1 - - - - - - 370.7 Long-Term Debt Repaid (1.9) (23.9) (49.0) (111.4) (5.4) (75.3) - - (3.7) - (229.5)Total Debt Issued/Repaid (12.2) (23.9) 48.1 54.8 217.4 0.8 8.9 820.7 (269.4) (261.3) 225.6 Pref. Dividends Paid - - - - - - - - - (6.9) (33.4)Total Dividends Paid - - - - - - - - - (6.9) (33.4)Increase in CapItal Stocks 24.7 1.4 4.3 1.3 2.9 - - 3.5 2.9 12.0 6.8 Decrease in Capital Stocks - - - (22.3) (45.0) - - (77.1) - - (144.8)Other Financing Activities (1.0) (1.0) 0.0 (4.1) (8.0) 108.9 (5.7) (53.6) (16.0) (24.4) (18.6) Cash from Financing 11.6 (23.5) 52.4 29.7 167.4 109.6 3.2 693.5 (282.5) (280.6) 35.7

Net Change in Cash 105.8 (65.9) 4.5 320.1 (233.1) (69.2) 17.2 (22.1) (1.9) (36.7) 77.0

Balance SheetBalance Sheet FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

3/31/2005 3/31/2006 3/31/2007 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012 3/31/2013 3/31/2014 3/31/2015ASSETS

Cash And Equivalents 112.8 47.0 51.5 371.6 138.5 69.2 86.4 64.3 62.4 25.7 102.7 Short Term Investments - 182.0 237.5 6.9 - - - - - - -

Total Cash & ST Investments 112.8 229.0 289.0 378.5 138.5 69.2 86.4 64.3 62.4 25.7 102.7 Accounts & Notes Receivable 150.0 182.7 130.5 260.3 227.0 292.9 330.6 784.5 787.2 885.6 891.9

Total Receivables 150.0 182.7 130.5 260.3 227.0 292.9 330.6 784.5 787.2 885.6 891.9 Restricted Cash 2.9 0.8 4.9 10.3 17.0 11.1 43.5 11.9 10.7 8.9 2.5

Other Current Assets (2.9) - - - - - 44.3 - 82.7 66.0 - Total Current Assets 262.9 412.5 424.4 649.1 382.5 373.3 504.8 860.8 942.9 986.2 997.1

Net Property, Plant & Equipment 30.8 7.2 13.1 13.6 42.4 12.4 9.1 9.8 8.5 14.6 26.7 Long-term Investments - - - - - - - - - - 438.3

Deferred Charges, LT - - - - - - - - - - 50.1 Other Long-Term Assets 560.9 633.6 699.6 875.0 1,242.3 1,141.5 1,055.2 1,917.5 1,809.5 1,850.9 1,779.9

Total Assets 854.6 1,053.2 1,137.1 1,537.8 1,667.3 1,527.2 1,569.2 2,788.0 2,760.9 2,851.6 3,292.1 LIABILITIES

Short-term Borrowings 1.2 14.8 - - 255.0 242.2 296.1 949.7 1,240.1 741.5 825.9 Accounts Payable 134.2 188.8 155.6 245.4 - - - - - - -

Other Current Liabilities 130.8 285.0 339.0 663.9 946.9 556.4 528.5 934.1 823.1 882.8 859.9 Total Current Liabilities 266.1 488.6 494.7 909.3 1,201.9 798.6 824.6 1,883.8 2,063.2 1,624.3 1,685.9

Long-Term Debt 408.6 385.0 325.0 328.7 281.5 192.0 358.3 108.3 87.2 354.5 489.1 Unearned Revenue, Non-Current 62.5 30.4 69.5 111.5 142.1 130.9 150.9 228.6 254.0 288.3 274.8

Other Non-Current Liabilities (0.0) - - - - 321.8 96.5 477.5 - - - Total Liabilities 737.2 904.0 889.2 1,349.5 1,625.6 1,443.3 1,430.3 2,698.2 2,404.3 2,267.1 2,449.8

Additional Paid In Capital 305.7 328.8 398.8 434.7 494.7 521.2 643.2 712.6 672.9 743.8 830.8 Retained Earnings (183.2) (177.1) (149.7) (223.6) (441.2) (460.6) (502.9) (542.0) (309.9) (157.9) 13.7

Comprehensive Inc. and Other (5.3) (2.4) (1.3) (0.5) (11.9) (6.6) (1.4) (3.7) (6.5) (1.4) (2.2) Total Common Equity 117.4 149.3 247.9 188.2 41.7 83.9 138.9 89.8 356.5 584.5 842.3

Total Equity 117.4 149.3 247.9 188.2 41.7 83.9 138.9 89.8 356.5 584.5 842.3 Total Liabilities And Equity 854.6 1,053.2 1,137.1 1,537.8 1,667.3 1,527.2 1,569.2 2,788.0 2,760.9 2,851.6 3,292.1

Income StatementIncome Statement FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

3/31/2005 3/31/2006 3/31/2007 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012 3/31/2013 3/31/2014 3/31/2015Revenue 842.6 951.2 976.7 1,361.0 1,466.4 1,489.5 1,582.7 1,587.6 2,708.1 2,630.3 2,399.6 Total Revenue 842.6 951.2 976.7 1,361.0 1,466.4 1,489.5 1,582.7 1,587.6 2,708.1 2,630.3 2,399.6 Cost Of Goods Sold 359.1 460.9 436.8 660.9 793.8 778.0 795.7 908.4 1,390.6 1,369.4 1,315.8 Gross Profit 483.5 490.3 539.9 700.1 672.6 711.5 787.0 679.2 1,317.6 1,260.9 1,083.9 Selling General & Admin Exp.

66.3 469.6 495.2 754.7 806.1 649.2 718.6 641.4 1,036.2 994.4 855.0

Depreciation & Amort. 3.2 2.5 2.8 5.5 7.7 12.5 5.8 4.3 8.3 6.5 6.6 Other Operating Expense/(Income)

364.3 - - - - - - - - - -

Operating Expense., Total 433.7 472.1 498.0 760.2 813.8 661.7 724.4 645.7 1,044.5 1,000.9 861.6 Operating Income 49.8 18.2 41.9 (60.1) (141.2) 49.9 62.5 33.5 273.1 259.9 222.3 Interest Expense 20.4 19.9 17.8 16.4 34.3 47.2 38.9 62.4 75.3 49.0 52.5 Interest Income - 4.3 11.9 11.3 5.8 1.5 1.7 2.8 4.0 6.0 2.8 Net Interest Exp. 20.4 15.6 5.9 5.1 28.5 45.6 37.1 59.7 71.3 42.9 49.7 Currency Exchange (Gains) Loss

- - - - 3.1 (0.0) 1.5 (0.3) 2.1 (2.1) -

Other Non-Operating Inc. (Exp.)

0.7 (0.1) 0.9 4.7 2.9 22.6 50.0 19.5 43.3 26.7 (40.8)

EBT Excl. Unusual Items 28.7 2.7 35.2 (69.9) (175.7) (18.3) (26.1) (45.4) 156.4 192.5 213.4 Gain (Loss) On Sale Of Assets

(0.7) (4.9) - - - - - (11.0) - - -

Other Unusual Items 1.3 9.7 - - - - - 21.9 - (22.5) - EBT Incl. Unusual Items 29.3 7.5 35.2 (69.9) (175.7) (18.3) (26.1) (34.4) 156.4 185.0 213.4 Income Tax Expense 8.9 1.4 7.7 4.0 2.7 1.2 4.3 4.7 (75.8) 32.9 31.6 Earnings from Cont. Ops. 20.4 6.1 27.5 (74.0) (178.5) (19.5) (30.4) (39.1) 232.1 152.0 181.8 Minority Int. in Earnings 0.1 - - - - - - - - - - Net Income 20.3 6.1 27.5 (74.0) (178.5) (19.5) (30.4) (39.1) 232.1 152.0 181.8

59

Industry Outlook

5.53%

83.62%

10.85%

2015 Box Office Market Share

Lions Gate Major 6 Studio Other Studio

Lions Gate; 8.27%

Major 6 Studio; 79.02%

Other Studio; 12.71%

2012-2015 Box Office Market Share

Lions Gate Major 6 Studio Other Studio

Business Overview


Positioning


8

Source: Box-office Mojo

2015 Major Studio Market Share

13.97%

20.71%

21.60%

12.70%

6.17%

8.47%

5.53%

Industry Outlook

2010 2011 2012 2013 2014 2015 2016E 2017E2018E2019E0

500010000150002000025000

U.S. Home Entertainment Spending

Rental Digital Sell Through

In M

illio

ns U

.S. D

olla

rs

• Producers will place greater emphasis on distributing at-home content

• Online streaming services expected to exceed movie ticket sales in 2017

$10,500.00

$11,000.00

$11,500.00

$12,000.00

$12,500.00

$13,000.00 Industry Value Added

Industry Value AddedExponential (Industry Value Added)Source: www.ibisworld.com

In M

illio

ns U

.S. D

olla

rs

2016E 2017E 2018E 2019E332003340033600338003400034200344003460034800

Forecasted Industry Revenue

Forecasted Industry RevenueExponential (Forecasted Industry Revenue)

In M

illio

ns U

.S. D

olla

rs

61

Financial Exposure • Australian Tax Credit• Distribution Rights

• Production Budget: $140 million

• LGF’s risk capital: under $10 million

• Domestic Box Office: $30.5 million

• International Box Office: $102.4 million

Source: The Numbers

Financial Exposure• Pittsburgh Tax Credit• Talent Contracts

• Production Budget: $90 million• LGF at risk: $10 million

• Domestic Box Office: $27.3 million

• International Box Office: $113 million

62Source: Box Office Mojo

LGF’s International Expansion• China's Hunan TV will incur 25%

of film production costs

• Alibaba provides an International distribution platform in China

• IDC distributes a portion of LGF’s films in Latin America

63

64

Equity Method InvestmentNine Months ended Dec. 31: 2015 2014

(Ownership Percentage)

(Amount in millions)

EPIX (31.20%) $ 34.10 $ 27.40

Pop (50.00%) 0.60 (4.70)

Other (Various) (5.30) 14.60

Total $ 29.40 $ 37.30

65

Consumer Purchasing Expenditure

2007 2008 2009 2010 2011 2012 2013 20149.510

10.511

11.512

12.513

13.5


(Bill

ion$

)

66

Video Release Window

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

20

40

60

80

100

120

140

160

Average Video Release Window

Days

67

Demographic

Euromonitor International Analyst Pulse survey; August 2015

68

Theatrical20%

Home Enter-tainment

34%

Television14%

International29%

Other2%

Motion Picture Segment

Business OverviewMotion Picture

Business Overview


Positioning


3


69

Domestic Television

64%

International27%

Home Entertainment Revenue

9%

Other1%

Television Production

Business OverviewTelevision ProductionScripted

Non-scripted

Business Overview


Positioning


4


70

37%

63%

Current Equity and Debt Structure

Equity = 955.4 Mil USD

Debt = 1620.10 Mil USD

40%

60%

2018E Equity and Debt Structure

Equity = 1097.15 Mil USD

Debt = 1617.93 Mil USD

Debt to Equity Ratio Lions Gate 1.60Industry Average 1.41 2012 2013 2014 2015 2016E 2017E 2018E

0%

10%

20%

30%

40%

50%

Long Term Debt to AssetsFinancial AnalysisDebt Analysis

Business Overview


Positioning


17

Sensitivity AnalysisPerpetuity Growth EV/EBITDA

0.0% 1.0% 2.0% 3.0% 4.0% 8.6x 10.1x 11.6x 13.1x 14.6x

6.6% 20.45 24.23 29.65 38.08 53.00 13.99 16.35 18.70 21.05 23.41

7.6% 16.88 19.56 23.20 28.42 36.54 13.60 15.90 18.20 20.50 22.79

8.6% 14.15 16.13 18.71 22.22 27.25 13.21 15.46 17.71 19.95 22.20

WACC 9.6% 11.98 13.49 15.41 17.90 21.28 12.84 15.03 17.23 19.42 21.62

10.6% 10.23 11.41 12.87 14.71 17.12 12.47 14.62 16.76 18.91 21.06

6.6% -4% 14% 39% 79% 149% -34% -23% -12% -1% 10%

7.6% -21% -8% 9% 33% 71% -36% -25% -15% -4% 7%

8.6% -34% -24% -12% 4% 28% -38% -27% -17% -6% 4%

9.6% -44% -37% -28% -16% 0% -40% -29% -19% -9% 1%

10.6% -52% -46% -40% -31% -20% -41% -31% -21% -11% -1%

72

DCF ValuationPerpetuity Growth Method - Value per Share

Free Cash Flow at Year 5 270 WACC 8.6% Perpetuity Growth Rate 2.0% Perpetuity Value at End of Year 5 4,179

Present Value of Perpetuity (@ 8.6% WACC) 2,766

(+) Present Value of Free Cash Flows (@ 8.6% WACC) 1,091 (=) Current Enterprise Value 3,857 Short Term Debt 826 (+) Long Term Debt 489 (-) Cash and Marketable Securities 265 (-) Current Net Debt 1,050 (-) Current Preferred and Minority Interest - (=) Equity Value 2,807 Shares outstanding 150 Estimated Value per Share (USD) 18.71 Current Price (USD) 21.31 3/24/2016 Estimated Upside -12%

73

Relative ValuationEBITDA Multiple Method - Value per Share

Terminal EBITDA at Year 5 339 WACC 8.6% Exit Enterprise Value / EBITDA 11.6x Terminal Value at End of Year 5 3,951 Present Value of Terminal Value (@ 8.6% WACC) 2,615 (+) Present Value of Free Cash Flows (@ 8.6% WACC) 1,091 (=) Current Enterprise Value 3,706.0 Short Term Debt 826 (+) Long Term Debt 489 (-) Cash and Marketable Securities 265 (-) Current Net Debt 1,050 (-) Current Preferred and Minority Interest - (=) Equity Value 2,656 Shares outstanding 150 Estimated Value per Share (USD) 17.71 Current Price (USD) 21.31 Estimated Upside -17%

74

Valuation

Company Market Capitalization Debt Cash Shares Enterprise

Value Current

Stock Price

Relative Stock Price

Disney $148,700.00 $17,330.00 $4,269.00 1,600.00 $161,761.00 $98.82 $101.10

Twenty-First Century Fox $27,500.00 $7,262.00 $8,428.00 2,039.00 $26,334.00 $27.84 $12.92

Time Warner $50,800.00 $22,502.00 $1,170.00 283.20 $72,132.00 $194.43 $254.70

Viacom $11,200.00 $12,285.00 $506.00 346.50 $22,979.00 $39.02 $66.32

Lions gate $3,443.00 $1,595.00 $103.00 150.00 $4,292.00 $ 22.92 $28.61

Dream Works $1,600.00 $515.00 $34.00 78.10 $2,081.00 $25.79 $26.65

Comcast $117,700.00 $52,621.00 $2,295.00 2,100.00 $168,026.00 $59.92 $80.01

Sony $25,600.00 $9,336.12 $9,490.00 1,300.00 $25,446.12 $22.11 $19.57

Enterprise ValuationRelative Premium of Est. Enterprise

Value over Stock Price

Disney 2.3%Twenty First Century Fox -53.6%

Time Warner 40.0%%Viacom 69.9%

Lions Gate 25.8%DreamWorks 3.3%

Comcast 33.5%Sony -11.5%

Source: Yahoo Finance In Billions

Business Overview


Positioning


21

75

Relative Valuation – P/EProjected EPS (Quarterly) P/E Ratio

Q1 2016E Q2 2016E Q3 2016E Q4 2016E FY 2016 2016E

Disney 1.43 1.55 1.22 1.6 5.8 15.84Twenty First Century Fox

.45 .45 .48 .59 1.97 14.43

Time Warner 1.74 1.84 1.8 2.1 7.48 24.04Viacom 1.01 1.54 1.67 1.26 5.48 5.98

LionsGate .29 .53 .22 .32 1.36 30.41DreamWorks .16 -.04 .02 .31 .45 42.57

Comcast .8 .86 .94 .94 3.54 15.79Sony 1.72 11.78

Industry Average P/E

Motion Picture 16.7Broadcast and Cable TV 21.8

Source: Nasdaq and eTrade

Business Overview


Positioning


20

76

Relative Valuation – EV/EBITDATicker EV/EBITDASTRZA 10.31DWA 36.02FOXA 10.72MGMB 15.82TWX 9.68VIAB 8.90CBS 11.25DIS 12.16CMCSA 7.74SNE 5.21

Industry EV/EBITDAMean 12.78Median 10.52IQR 4.46Up Limit 19.77

77

WACC2015-16

8.6%

Weight Cost W x C

Cost of Equity 75.3% 10.8% 8.1%

Cost of Debt 24.7% 1.9% .5%

Cost of Equity 2015-16 2016-18

Risk Free Rate* 2.25% 2.75%

Adjusted Beta 1.10 1.10

MRP 7.75% 7.25%

Cost of Equity 10.80% 10.73%

Cost of Debt 2015-16 2016-18Cost of Debt 1.9% 1.8%

* Expected 10-Year U.S. Treasury

Source: Morningstar

DCF Assumptions - WACC

Business Overview


Positioning


19

Documents

CSULB Regional Final