IMAX FY Conference Summary Company Overview - **Company**: IMAX Corporation (NYSE: IMAX) - **Date of Conference**: March 24, 2026 Key Industry Insights - **Strategic Goals**: IMAX aims to strengthen relationships with filmmakers and studios, creating a film backlog and enhancing the IMAX experience through technology investments [3][4][10] - **Box Office Performance**: IMAX anticipates a record global box office of approximately $1.4 billion for the year, despite a challenging Q1 comparison due to last year's strong performance in China [11][12] - **Film Opportunities**: The company expects more films to gross over $1 billion this year compared to the previous year, with titles like Super Mario and Star Wars contributing to this growth [12][13] Core Business Strategies - **Filmed for IMAX Strategy**: The strategy has evolved to include more flexible exclusivity terms, allowing for a broader range of films to utilize IMAX technology, which helps in maximizing box office performance [18][20] - **Local Language Expansion**: Local language films now account for about 25% of IMAX's box office, with a target of 75 local language titles this year, expanding beyond China [21][22] - **Alternative Content Growth**: IMAX expects alternative content to grow by 20% this year, driven by interest in sports, music, and concert films, which attract new audiences [25][27] Financial Performance - **EBITDA Margin**: Adjusted EBITDA margin expanded to 45% in 2025, up from 28% in 2022, with expectations to exceed 50% by 2028 [74][77] - **Free Cash Flow**: The company reported a 46% free cash conversion rate, with plans to reinvest in network growth and share buybacks [77][80] Market Expansion Opportunities - **Global Penetration**: IMAX is currently at about 40% penetration in its addressable market of 4,500 locations, with significant growth potential in under-penetrated regions like Japan, India, and Australia [38][39] - **Second Screen Opportunities**: There is a recognized need for additional IMAX screens in major markets like New York City and Chicago to meet consumer demand [60][68] Partnerships and Collaborations - **Strategic Partnerships**: IMAX has developed strong relationships with major studios, including a notable partnership with Netflix to bring exclusive content to theaters, enhancing box office opportunities [35][36] Additional Insights - **Consumer Demand**: There is a growing demand for premium experiences like IMAX, with domestic growth of 4% last year, indicating that the market is not as saturated as previously thought [52][53] - **Community Engagement**: Events like concert films have shown to create a communal experience, attracting diverse audiences and fostering new IMAX fans [26][28] This summary encapsulates the key points discussed during the IMAX FY Conference, highlighting the company's strategic direction, market opportunities, and financial performance.

Core Viewpoint - AMC Entertainment Holdings, Inc. has entered into a commitment letter with Deutsche Bank for a new senior secured credit facility of up to $425 million, aimed at refinancing existing debt and improving the company's financial position [1][2]. Group 1: Financial Details - The Odeon Credit Facility will consist of a senior secured term loan due in 2031, with a fixed interest rate of 10.50% and an original issue discount of 2.00% [2]. - The facility is expected to close on or before April 6, 2026, subject to customary closing conditions [2]. Group 2: Strategic Implications - The proceeds from the Odeon Credit Facility will be used to refinance existing 12.750% Senior Secured Notes due 2027 and cover related fees and expenses, which is anticipated to strengthen the company's balance sheet and reduce interest rates [1][2]. - The decision to pursue the Odeon Credit Facility has led the company to halt its previously announced offering of senior notes and a new term loan facility [1]. Group 3: Company Overview - AMC is the largest movie exhibition company in the U.S., Europe, and globally, operating approximately 855 theatres and 9,640 screens [3]. - The company has been a leader in innovation within the exhibition industry, introducing features such as power-recliner seats and enhanced food and beverage options, as well as loyalty and subscription programs [3].

Core Viewpoint - National Cinemedia, Inc. reported a year-over-year increase in operating income for the fourth quarter of fiscal year 2025, with adjusted OIBDA exceeding guidance [1]. Financial Performance - Fourth quarter revenue grew by 8%, which outpaced attendance figures, indicating strong performance in attracting audiences [1]. - The operating income for the fourth quarter showed a positive trend compared to the previous year, reflecting effective operational strategies [1]. Adjustments and Corrections - An update was made to the Operating Data table, correcting the ESA Party Screens at Period End as of January 1, 2026, to 9,314 from the previously reported 1,371 [1].

Core Viewpoint - IMAX China reported a revenue of $102 million for the year ending December 31, 2025, representing a year-on-year increase of 26.35% [1] - The profit attributable to the company's owners reached $37.681 million, marking a significant year-on-year increase of 69.6% [1] - Basic earnings per share were reported at $0.11 [1] Revenue Breakdown - The increase in revenue was driven by a $18.4 million rise in content solutions revenue [1] - Revenue from technology products and services increased by $2.2 million [1] - Other income saw an increase of $0.7 million [1]

Core Viewpoint - IMAX China reported a revenue of $102 million for the year ending December 31, 2025, representing a year-on-year increase of 26.35% [1][4] - The profit attributable to the company's owners was $37.681 million, reflecting a year-on-year increase of 69.6% [1][4] - Basic earnings per share were $0.11 [1][4] Revenue Breakdown - The increase in revenue was attributed to a $18.4 million rise in content solutions revenue [6] - Revenue from technology products and services increased by $2.2 million [6] - Other income rose by $0.7 million [6]

Financial Data and Key Metrics Changes - IMAX achieved a record global box office of $1.28 billion in 2025, up 40% year-over-year, capturing its largest share of the global box office ever at 3.8%, an increase of 700 basis points year-over-year [4][18] - Total revenue for 2025 reached $410 million, a 16% increase from $352 million in 2024, with a record adjusted EBITDA of $185 million, reflecting a 33% growth year-over-year [7][19][29] - Adjusted EPS reached a new record of $1.45, an increase of $0.50 year-over-year, with an adjusted EBITDA margin of 45%, up approximately 570 basis points from the previous year [19][30] Business Line Data and Key Metrics Changes - Content solutions revenues grew significantly, with fourth quarter revenues of $38 million, a 50% increase year-over-year, and full-year growth of 21% [23] - Technology products and services segment saw fourth quarter revenues up 32% year-over-year, with a gross profit margin of 58%, while full-year revenues grew 16% [25] Market Data and Key Metrics Changes - IMAX's global box office in January 2026 was up 16% year-over-year, with significant contributions from local language films and a strong performance during the Chinese New Year [13] - The company installed a record 160 systems in 2025, marking a 10% increase year-over-year, with a focus on high-growth, underserved markets [18][26] Company Strategy and Development Direction - IMAX aims to drive revenue growth at a high single to low double-digit compound annual growth rate through 2028, with a target adjusted EBITDA margin of over 50% [8][35] - The company is focusing on expanding its footprint in under-penetrated markets, particularly in Japan, Australia, France, and Germany, while also enhancing its relationships with leading filmmakers [14][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, highlighting a strong slate of films for 2026, including major titles like "The Odyssey" and "Dune: Part Three," which are expected to drive box office growth [10][34] - The management noted that the demand for IMAX experiences is increasing, with studios prioritizing IMAX in their marketing campaigns, which enhances the brand's value [5][9] Other Important Information - The company reported record operating cash flow of $127 million for the full year, reflecting strong cash conversion and operational performance [8][31] - IMAX's balance sheet showed $151 million in cash and $289 million in debt, with a net leverage of 0.7 times, indicating a strong liquidity position [32][33] Q&A Session Summary Question: Update on the state of the Chinese box office - Management indicated that the Chinese New Year had a modest performance due to delays in film releases, but expects better results in the summer as delayed titles are released [39][40] Question: Growth potential for local language and alternative content - Management believes there is sufficient runway for local language films alongside Hollywood content, with plans to accommodate more international films in the upcoming slate [42][44] Question: Insights on ticket pricing and potential increases - Management noted that while they cannot control ticket prices, the strength of the film slate may lead exhibitors to consider price increases [47][49] Question: Expectations for STL installs and upgrades - Management stated that the potential for installations is high, but timing and supply chain factors will influence the actual number of installations [75]

I N V E S T O R P R E S E N T A T I O N Strategic Update F E B R U A R Y 2 0 2 6 ® IMAX Corp. F O R W A R D - L O O K I N G S T A T E M E N T S This presentation contains forward looking statements that are based on IMAX Corporation (the "Company") management's assumptions and existing information and involve certain risks and uncertainties which could affect our future results and cause those results or other outcomes to differ materially from future results expressed or implied by such forward looking sta ...

Core Insights - Imax reported a record global box office of $1.28 billion in 2025, with expectations to reach $1.4 billion in 2026, reflecting strong growth in the big screen exhibition market [1] Financial Performance - Fourth quarter gross box office rose 62% year-over-year to $336.2 million, driven by the success of "Avatar: Fire and Ash," which contributed $112 million to the annual box office [2] - Revenue for the three months ended in December increased by 35% to $125.2 million, while adjusted EBITDA surged 53% to $57.1 million [3] - Net profit decreased by 64% to $2.4 million due to significant one-time charges, including $15 million for convertible debt repurchase and $7 million for restructuring SSIMWAVE [3] Cash Flow and Liquidity - Net cash from operating activities for 2025 increased by 79% year-over-year to $127 million, with available liquidity at year-end reaching $545 million [4] Strategic Outlook - The CEO described 2025 as a transformational year, with expectations for a strong slate of at least 12 IMAX films in 2026, including major titles from renowned directors [4] - Imax is expanding its network in under-penetrated markets such as Japan, Australia, Germany, and France, potentially doubling its total addressable market to nearly 4,500 zones worldwide [5] - The company aims to capitalize on the trend of blockbuster theatrical releases, enhancing its position to serve global audiences and deliver strong financial results [6]

Core Insights - AMC Entertainment's shares fell 3% to a multi-year low of $1.16 following a 10% drop in attendance for the October-to-December quarter [1] - Total revenue for the quarter was $1.288 billion, with net losses per share decreasing to 25 cents from 35 cents year-over-year, surpassing Wall Street expectations [1][3] Attendance and Revenue - Attendance for the quarter was slightly over 56.3 million, with a full-year decline of 2% to 219.4 million [2] - North American box office revenue for 2025 is projected to increase by 1.5% compared to 2024, while AMC's revenue grew by 5% [5] Financial Performance and Market Context - The financial results were released after a month of preliminary earnings and a refinancing deal with senior secured debt holders [3] - Despite previous resilience during the pandemic, concerns regarding AMC's debt load have resurfaced, contributing to a steady decline in stock price since the beginning of the year [3] - The fall/holiday quarter saw the release of major films like Zootopia 2 and Avatar: Fire and Ash, but overall box office performance was weaker than expected [4]

Core Viewpoint - AMC Entertainment Holdings, Inc. is initiating a private offering of $1,730 million in first lien notes due 2031 to fund the redemption of existing debt and refinance its term loan facility [1][2] Group 1: Offering Details - The offering consists of $1,730 million aggregate principal amount of first lien notes due 2031 [1] - The notes will be guaranteed by AMC and its wholly-owned subsidiaries that guarantee obligations under a new $750 million term loan facility [1] - The net proceeds will be used to redeem $400 million of 12.750% Senior Secured Notes due 2027, refinance the existing term loan facility, and cover related expenses [1] Group 2: Redemption Conditions - Odeon, a subsidiary of AMC, has issued a notice for conditional full redemption of the Odeon Notes, contingent upon raising at least $2,480 million through debt financing transactions [2] - The redemption is dependent on the successful completion of the offering and the new term loan facility [2] Group 3: Company Overview - AMC is the largest movie exhibition company globally, operating approximately 855 theatres and 9,640 screens [6] - The company has been innovating in the exhibition industry with features like power-recliner seats and enhanced food options [6]