as at december 31, 2016 - cineplexirfiles.cineplex.com/investors/presentations/2016/q4...•...
TRANSCRIPT
As at December 31, 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
AND
MOTION PICTUREEXHIBITION COMPANY
IN CANADA
THEATRES SCREENS
Cineplex 78.5%
Landmark, 9.9%
Other, 9.7%
Guzzo, 1.9%
AS AT DECEMBER 31, 2016
Source: Rentrak
3© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$7.99 $8.05 $8.30$8.67 $8.74
$8.97$9.15 $9.13
$9.23
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Premium OfferingsBox Office
4© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
5© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• Continue to enhance and expand existing infrastructure 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; and
• Pursue selective acquisitions and opportunities that are strategic, accretive and capitalize on
Cineplex’s core strengths.
6© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
Theatre Exhibition • Theatre Food Service • Alternative Programming • Digital Commerce
7© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
LUXURIOUS
ACCOUNTED FOR
OF BOX OFFICE REVENUE
FOR THE YEAR ENDEDDECEMBER 31, 2016
8© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
®
AUDITORIUMS OF SCREENS 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 December 31,
2016)
9© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• All locations are digital and 3D
capable
• Premium pricing
• Reserved seating
• 23 IMAX Theatres (as at December 31,
2016)
THEATRES CAPABLE
10© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• Unique out-of-home experience
• Seats move in synchronization with
the action on screen
• Premium pricing
• Reserved seating
• 77 locations (as at December 31,
2016)
LOCATIONS
11© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
LUXURIOUS GREAT EXCEPTIONAL
• 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 December 31, 2016)
12© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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)
Cineplex CinemasPickering and VIP
(Pickering, ON)
Cineplex CinemasSeton and VIP
(Calgary, AB)
Cineplex Cinemas Downtown Edmonton
And VIP(Edmonton, AB)
Cineplex CinemasMarine Gateway and VIP
(Vancouver, BC)
Cineplex CinemasNorth Barrie
(Barrie, ON)
Cineplex CinemasKitchener and VIP
(Kitchener, ON)
13© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• Focus on speed of service
• Premium promotional programs
• Digital menu boards
• Proprietary brandsREVENUE 2016
14© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$3.84 $3.96 $4.12$4.27
$4.41$4.63
$4.82
$5.09
$5.43
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$5.65
15© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
AS AT DECEMBER 31, 2016
16© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• Self-serve frozen yogurt
• Will replace all Cineplex yogurt RBOs
• 96 locations at December 31, 2016
AS AT DECEMBER 31, 2016
17© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• Selection of specialty gourmet
popcorn
AS AT DECEMBER 31, 2016
18© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• The Met: Live in HD
• Family Favourites
• Classic Film Series
• In the Gallery Series
• Flashback Film Festival
• National Theatre Live
• Sensory Friendly Screenings
• World Wrestling Entertainment
• Concerts, Broadway shows
and special events
• South Asian programming
(Bollywood)
• East Asian
• Hindi, Punjabi, Mandarin,
Cantonese, Korean, Filipino,
Telugu and Urdu
19© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
20© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• 111 million site visits in 2016
• 510 million page views in 2016
• Online ticketing and show times,exclusive entertainmentcontent
• One of Canada’s most popular mobile brands
• Downloaded 16.1 million times and recorded 873 million app sessions since launch
• Cineplex Apps: iPhone, iPad, iPod touch, Android, BlackBerry
• Provides entertainment content before the show
• Mobile ticketing - no lines
21© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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22© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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23© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• Canada’s top loyalty program for
movie lovers
• Members are represented in 45% 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
7.3
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of Members (Millions)
24© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• 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
25© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
Cinema Media • Digital Place-Based Media
26© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
27© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
CINEMA MEDIA REPRESENTS
• 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
Yukon
B.C.
Alberta
Sask.
Manitoba
Ontario
Quebec
Atlantic
Box Office Source: Rentrak Year End 2015
28© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
45%
58%
14%
58%
86%
39%
70%
88%
40%
AdvertisingAwareness
Correct BrandAssociation
Ad Entertainment
Sources: *TV Stats based on Nielsen Brand Effect (US) 2011-2015 (P13+); **Cinema
Advertising Show Time Impact Study 2010-2013+2015 Strategic Marketing Counsel (SMC)
and online survey via Vision Critical, Pre-Show Study 2010-2014+2016, SMC
Cinema Pre-ShowTV (USA) Cinema Show time
29© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
SCREENSNATIONWIDE
(as at December 31,
2016)
FOR ADVERTISERSTHEATRES
NATIONWIDE(as at December 31,
2016)
30© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• Touch
• Gesture
• Image Capture
• Content Manipulation
• Social Media Connectivity
• Data Capture
AS AT DECEMBER 31, 2016ADVERTISING EXPERIENCE
31© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• 3 minute loop keeps content upbeat and
timely
• 84” fully HD digital backlits
• Roll-out now complete across circuitAS AT DECEMBER 31, 2016BRING CAMPAIGNS TO LIFE
32© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
33© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
Path to Purchase • Point of Purchase
34© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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35© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• 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”
• Installed, maintain and operate digital display network for 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
• Selected to install, maintain and operate digital display networks for nearly 175 digital displays in 21 Morguard-managed shopping centres across Canada
• Impactful interactive experiences for shoppers
• Digital wayfinding and advertising media networks that will support new store openings, retail promotions and upcoming events
36© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• 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
37© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
38© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
MORE THAN TIM HORTONS LOCATIONS ACROSS CANADA
One of the largest digital signage networks in Canadian retail
39© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
40© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
41© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
Amusement Solutions • Location Based Entertainment • eSports
42© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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43© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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44© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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45© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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• 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.
46© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
47© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• The Rec Room at South Edmonton Common
• 60,000 square feet
• Incredible dining experiences with exciting live
entertainment and amusement gaming experiences
48© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
• Toronto Roundhouse (Q2, 2017)
• West Edmonton Mall (Q3, 2017)
• Deerfoot Crossing Calgary (Q4, 2017)
• CF Masonville Place London (2018)
• 10-15 locations
• 40,000 – 60,000 sq. ft.
49© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
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.
50© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
51© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$805$850
$964$1,006 $998
$1,092
$1,171
$1,235
$1,371
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$ MILLIONS
52© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$137 $141
$160$168
$173
$200 $202 $201
$250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$ MILLIONS
53© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$489$511
$581$598
$577
$638$665 $673
$711
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$ MILLIONS
61.163.5
70.0 69.066.1
71.272.7 73.6
77.074.6
Attendance (Millions)
54© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$235$252
$288 $295 $292
$329
$350
$375
$418
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$ MILLIONS
$3.84$3.96
$4.12$4.27
$4.41$4.63
$4.82$5.09
$5.43$5.65
Concession Per Patron (CPP)
55© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$56$61
$67
$82
$91
$84
$110
$134
$154
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Digital Media RevenueMedia Revenue
$ MILLIONS
56© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$25 $26 $28$32
$38$41
$46
$53
$88
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$ MILLIONS
*Includes consolidation of P1AG (formerly Cineplex Starburst Inc.) effective October 1, 2015
57© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$13.17 $13.38$13.78
$14.59$15.11 $15.34
$16.11$16.77
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$19.82
Concessions Per Patron (CPP)Box Office Per Patron (BPP) Media Per Patron Other Per Patron
58© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
2016 2015 %
$712.4 $711.1 0.2%
$423.9 $418.4 1.3%
$170.8 $153.6 11.2%
$171.2 $87.7 95.1%
$1,478.3 $1,370.9 7.8%
$234.0 $249.8 -6.3%
15.8% 18.2% -2.4%
74.6 77.0 -3.2%
$9.55 $9.23 3.5%
$5.65 $5.43 4.1%
MILLIONS, EXCEPT ADJUSTED EBITDA MARGIN AND PER PATRON AMOUNTS
*Includes consolidation of P1AG (formerly Cineplex Starburst Inc.) effective October 1, 2015
59© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
Corporate Conversion Jan. 1, 2011
80%
69%67%
59%
56%
65% 64%
57%
64%62%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$1.15$1.18
$1.24 $1.26 $1.26 $1.28$1.33
$1.41
$1.48
$1.54
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
60© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
Maturity Capacity Drawn(as at December
31/16)
Reserved(as at December
31/16)
Remaining
Term Facility Apr. 2021 $150 $150 — —
Revolving Facility Apr. 2021 $400 $150 $6.3 $243.7
Total $550 $300 $6.3 $243.7
2.89
2.39
1.94 1.88
1.64 1.58
1.19
0.89
1.131.27
0.97
1.31
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(MILLIONS)
61© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
$0
$10
$20
$30
$40
$50
$60
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162016
* As of December 31, 2016
62© Cineplex Entertainment. Not to be distributed, reproduced or used without permission.
EBITDA is calculated by adding back to net income, income tax expense, depreciation, amortization and interest expense net of interest income
Adjusted EBITDA excludes change in fair value of financial instrument, gain on acquisition of the business, 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 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, of
WGN and BSL and net cash received from CDCP.
Attendance is calculated as the total number of paying guests that frequent Cineplex’s theatres during the period.
Calculated as total box office revenues divided by total paid attendance for the period.
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.
Calculated as total theatre food service revenues divided by total paid attendance for the period.
Defined as 3D, UltraAVX, IMAX and VIP product.
Calculated as total theatre food service revenues less total theatre food service cost, divided by attendance for the period.
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.
Calculated as total film cost expense divided by total box office revenues for the period.
Calculated as total cost of theatre food service divided by total theatre food service revenues for the period.
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