2015irfiles.cineplex.com/investors/presentations/2015/Cineplex_AGM_15_V17... · Corporate Strategy...
Transcript of 2015irfiles.cineplex.com/investors/presentations/2015/Cineplex_AGM_15_V17... · Corporate Strategy...
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2015ANNUAL GENERAL MEETING
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SAFE HARBOUR
Certain statements made today may be “forward-looking statements” which
are not guarantees of future performance and are subject to various risks
and uncertainties. Forward-looking statements are based on management’s
beliefs and assumptions regarding the information currently available and
actual results may differ materially from those expressed. Factors that
could cause results to vary are described in the Cineplex Inc. Annual
Information Form and MD&A, both of which are available at www.sedar.com
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2014 Accomplishments
Business Outlook For 2015
Plans For The Future
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Executing Our Strategy
Diversifying Our Business
Establishing Platforms For Growth
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Continue to enhance and expand our existing infrastructure and service offerings.
Capitalize on our core media strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.
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CFO Gord Nelson
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Total Revenue($millions)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$1,235$1,171
$1,092
$998$1,006$964
$850$805
$740
$490
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Adjusted EBITDA
CAGR 13.0%
($millions)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$201$202$200
$173$168$160
$141$137
$118
$69
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$673$665$638
$577$598$581
$511$489
$459
$309
56.6 57.461.1
63.5
70.0 69.066.1
71.2 72.7 73.6
Box Office Revenue($millions)
Attendance (millions)10
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Box Office Per Patron (BPP)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$7.73$7.99 $7.99 $8.05
$8.30$8.67 $8.74 $8.97 $9.15 $9.13
Premium Offerings11
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$375
$350$329
$292$295$288
$252$235
$214
$137
CAGR 11.8%
Food Service Revenue($millions)
$3.44
$3.72$3.84
$3.96$4.12
$4.27$4.41
$4.63$4.82
$5.09
Concession Per Patron (CPP)12
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$134
$110
$84$91
$82
$67$61
$56
$47
$34
Media Revenue($millions)
CAGR 16.5%
Digital Media Revenue13
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$53
$46
$41
$38
$32
$28$26$25
$21
$10
CAGR 20.4%
Other Revenue($millions)
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Q1 2015 Q1 2014 %
Box Office $156.0 $156.2 -0.1%
Concession $90.8 $87.1 4.2%
Media $29.1 $24.4 19.4%
Other $13.9 $12.3 12.9%
Total Revenue $289.8 $280.0 3.5%
Adjusted EBITDA $40.2 $30.9 30.3%
EBITDA Margin 13.9% 11.0% 2.9%
Attendance 17.5 17.3 1.5%
BPP $8.90 $9.04 -1.5%
CPP $5.18 $5.05 2.6%
Q1 2015 Results
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Dividends
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
64%57%
64%65%
56%59%
67%69%
80%
112%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$1.48$1.41
$1.33$1.28$1.26$1.26$1.24
$1.18$1.15$1.15
Payout Ratio
Corporate Conversion
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015
1.451.27
1.130.89
1.19
1.581.641.881.94
2.39
2.89
Maturity Capacity 2014 Drawn 2014 Reserved 2014 Remaining
Term Facility Oct. 2018 $150 $150 — —
Revolving Facility Oct. 2018 $250 $82 $5.4 $162.6
Total $400 $232 $5.4 $162.6
Covenant Leverage Ratio
Credit Facilities
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Continue to enhance and expand our existing infrastructure and service offerings.
Capitalize on our core media strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.
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Continue to enhance and expand our existing infrastructure and service offerings.
Capitalize on our core media strengths.
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
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PREMIUM EXPERIENCESAccounted For
40% of Box Office
REVENUE
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12%OF BOX OFFICE
4%OF SCREENS
74AUDITORIUMS
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VIP
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VIP
SEATSLUXURIOUS
FOODGREAT
SERVICEEXCEPTIONAL
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FOODFULL
AND
BARMENU
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FOOD SERVICE
DRIVING INCREMENTAL
REVENUE
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Largest Amusement Gaming Company In Canada
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Largest Amusement Gaming Company In Canada
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SCENE
Number of Members (millions)
2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015
6.66.3
5.3
4.3
3.3
2.7
2.1
1.4
0.6
SCENE: EXTRA BENEFITS
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30
SCENE: EXTRA BENEFITS
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Continue to enhance and expand our existing infrastructure and service offerings.
Capitalize on our core media strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.
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Capitalize on our core media strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.13
Empire: Pur
Continue to enhance and expand our existing infrastructure and service offerings.
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EK3: Purchased August 2013
Empire: Purchased October 2013
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actions Area
COMING IN
2016
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Attractions AreaPerformance Venue
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Performance VenueUpscale Casual Dining and Bar
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Upscale Casual Dining and Bar
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actions Area
COMING IN
2016
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Continue to enhance and expand our existing infrastructure and service offerings.
Capitalize on our core media strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.
41
Capitalize on our core media strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.
Cineplex MediaContinue to enhance and expand our existing infrastructure and service offerings.
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Cineplex Media Cineplex Digital Media
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18CITIES
MORE THAN
725SCREENS
OVERWHELMINGRESULTSFOR ADVERTISERS
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Strong Results for Advertisers
Digital Poster Cases
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Digital Poster Cases
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ENGAGING,INTERACTIVE
ADVERTISING EXPERIENCE
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Touch
Gesture
Image Capture
Content Manipulation
Social Media Connectivity
Data Capture
INTERACTIVE MEDIA ZONE
ENGAGING,INTERACTIVE
ADVERTISING EXPERIENCE
49
INTEGRATEDMedia Campaigns
50
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Path To Purchase Point Of PurchaseOxford Properties
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Yorkdale
Oxford PropertiesIvanhoe Cambridge
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Vaughan Mills
Ivanhoe Cambridge
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Quick Service Restaurant
Financial
Retail Quick Service Restaurants
54
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Quick Service RestaurantsFinancial
55
Quick Service RestaurantsFinancial
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Financial
57
FinancialRetail
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RetailCINEPLEXDIGITAL MEDIA
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CINEPLEXDIGITAL MEDIA
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Continue to enhance and expand our existing infrastructure and service offerings.
Capitalize on our core media strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.
61
Capitalize on our core media strengths.
Continue to expand our presence as an entertainment destination for Canadians, in-theatre, at-home and on-the-go
Corporate Strategy
Pursue selective acquisitions and diversification opportunities that are strategic, accretive and capitalize on our core business strengths.
Continue to enhance and expand our existing infrastructure and service offerings.
62
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Cineplex Anywhere
In-Theatre At Home On-The-Go
63
Cineplex.com and Mobile App
Provides entertainment content before show
Mobile ticketing - no lines
GUESTEXPERIENCE
IMPROVING THE
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Cineplex Store
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La Boutique Cineplex
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Cineplex Anywhere
In-Theatre At Home On-The-Go
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015
OUTSTANDING SHAREHOLDER RETURN
$50
45
40
35
30
25
20
15
10
5
CAGR 23%
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Questions and Answers
69
2015ANNUAL GENERAL MEETING
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71
THANK-YOU
MOVIESand see you at the
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