Joint Ventures in Asia

South Korea

• Joint Venture with CJ CGV, March 10, 2010– Operates S. Korea’s largest multiplex cinema chain– 45% market share in S. Korea– A global firm operating in China and expanding

into California this year– Has 5 existing IMAX theatres under license model

• Will add 10 joint venture locations in major cities (option to increase to 15)

Why JV in South Korea?

• South Korea stats– Eg stable environment– Suitable partner (existing relationship)– Success under license model– Growing demand, market....

Quotes

• “Our IMAX theatres are boosting attendance and driving more traffic to our multiplexes, which positively impacts our bottom line. IMAX’s digital theatre system and joint venture model improves the economics of the IMAX theatre business for us, which creates even more opportunities to expand our relationship and offer more customers the IMAX experience at more locations”– Mr. Kim Joo Hyung, CJ CGV CEO

Quotes

• “Demand for The IMAX Experience is increasing in South Korea, a market we believe holds great potential, especially as we expand our overall presence in the Asia-Pacific region. Our international growth strategy is based on building momentum with existing successful relationships. We’ve been in business with CJ CGV for five years, and we are very pleased to expand with such a strong exhibitor.”– Richard Gelfond, IMAX CEO

Quotes

• “CJ CGV has marketed the IMAX brand in creative and tailored ways that have generated more consumer awareness in Korea, and we’re now seeing that awareness translate into greater demand and further growth.”– Larry O’Reilly, IMAX Executive Vice President

How does marketing work?

• Imax promotes itself• Studio’s promote IMAX– Twentieth Century Fox incorporated the IMAX

brand into its global marketing strategy• Joint Venture partners and Licensee’s promote

IMAX– Korea has done a good job marketing IMAX

Put this slide into a 3 – graphic nice thingy

Why go global-ASIA?

• The region is “crucial” for IMAX, said Larry O’Reilly, executive vice president for theater development.

• “While the domestic release is important, the international release is even more important because when you have big franchise films like Harry Potter, they make more money internationally than they do in the domestic market,” O’Reilly said in an interview with The Associated Press.

Global Strategy

• Align itself with top exhibitors worldwide with its new IMAX Digital theatre system

• “Our international growth strategy is based on building momentum with existing successful relationships.” CEO Gelfond

• In developed markets, Imax is forming joint ventures with theater chains, starting off with just a few locations to gauge demand.

• In emerging markets, Imax is sticking to the traditional practice of leasing projectors. That's because it's harder for the company to rely on independent market researchers in Taiwan, China, India, and other countries that track box-office sales at individual theaters.

Japan

• Joint Venture with Tokyu Recreation in 2009– Owns one of Japan’s largest exhibition chains– to open 4 IMAX theatres (3 opened to date)

• Agreement follows record-setting event– Tokyo Dome converted to huge IMAX theatre for

release of Speed Racer: The IMAX Experience– 25,000 people attended (largest IMAX audience ever

for a single screening)– Follows IMAX strategy of building on existing

successful relationships

Why JV in Japan?

• World’s No. 2 movie going market• “We think it’ll be very reasonable to have 25-

30 theaters in the not-too-distance future.”– Larry O’Reilly

• Second international joint venture deal for IMAX– Note to Steffen: Which one is first?

Leasing in Asia

India

• India is another market with a lot of potential. Imax already has six theaters there and contracts for four more. In July, it will install its first digital projector in India, at a Mumbai theater run by a unit of the Reliance ADA Group. And if the partnership with China's Huayi Brothers proves profitable, Imax might consider the model for India and its huge Bollywood film industry. "I've started to give it some thought," says Gelfond. "Is there the right partner in India that would commit to enough theaters so it makes economic sense? We're not there yet."