1 Investor Presentation Q1 2015
Forward Looking Statements The following information contains, or may be deemed to contain, forwardlooking statements. By their nature, forward-looking statements involve risks, assumptions and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of the Company may vary from the results and performance expressed in, or implied by, the following forward-looking statements, possibly to a material degree. For discussion of some of the important factors that could cause the Company s results and performance to differ from those expressed in, or implied by, the following forward-looking statements, please refer to the preliminary prospectus delivered to you, in particular the Risk Factors section thereof. The Company undertakes no obligation to update or revise any forward-looking statements. 2
Most Geographically Diverse Worldwide Exhibitor Highest attended in the world (264M patrons) 1 Global leader with HIGHEST Adjusted EBITDA and Adjusted EBITDA margin 335 Theatres 4,498 Screens U.S. cash flow funds strong dividend with ~2.2% yield and provides for organic growth & acquisitions #2 location count (497 theatres and 5,687 screens) 2 162 Theatres 1,189 Screens Latin American breadth and strength provides a robust, self-funded growth engine Supplemental growth catalysts provided by alternative content, international parallel companies, and a compelling 2015 and 2016 film slate 3 1) Data TTM 12/31/2014 2) Data as of 3/31/2015
Stable, Long-Term Industry Growth Trend Consistent pricing power and attractive value proposition. Industry growth in 5 of last 7 recessions, with continued growth in the subsequent recovery year in 3 of the last 4 recessions. U.S. box office ($bn) 2012 set industry records for box office through growth in attendance and ticket price 2013 exceeded the 2012 industry record with nearly $11B in admissions revenue $10 $8 $6 $4 $2 $0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Commercial Penetration of Selected Alternative Forms of Media Cable * Red bar indicates a recession year. Source: NATO and MPAA VCR 0.7% Admissions CAGR (1970-2014) 3.9% Ticket Price CAGR (1970-2014) Internet DVD Netflix/Redbox 4
Strong Track Record of Outperformance and Growth FY 2014 Adjusted EBITDA growth of $226 million, 61% over 2008 2008 2014 Admission Revenue Growth Cinemark Ranking Improvement (1) 2008 2014 50% 45.9% Attendance #2 #1 45% Theatres (EOP) #2 #2 40% 37.3% Screens (EOP) #2 #2 35% 30% 25% 20% 15% 10% 5% 0% Worldwide U.S. 15.0% 7.8% 6.1% North American Industry Source: MPAA and Public Filings. (1): Ranking 12/31/2014 (2): Constant currency calculated using 2014 actuals converted at 2008 exchange rates Revenues #3 #3 Adj. EBITDA #2 #1 Adj. EBITDA Margin #1 #1 CNK WW Adjusted EBITDA Growth (2) 750.0 500.0 250.0-2008 2013 in Constant Dollars 2008 Constant $ Constant $ 2014 Constant $ 5
Substantial Long Term Growth in Key Metrics Our domestic attendance and attendance per screen have outpaced US Industry 2008 2014 CNK US Attendance Growth 180 175 170 165 160 155 150 145 CNK Worldwide 2008-2014 Growth 2014 U.S. Intl WW Avg. Screens 5,613 21% 12% 19% Revenues $ 2,627 42% 83% 51% Adjusted EBITDA $ 597 50% 103% 61% 140 135 130 2008 2014 6
Compelling 2015 Film Slate 2015 28 3D films already announced in 2015 4/3 Furious 7 Fast 6 ($240 M) 7/10 Minions Despicable Me 2 ($370 M) 5/1 Avengers Age of Ultron Avengers ($625 M) 7/17 Ant-Man the next Marvel character movie 5/15 Mad Max: Fury Road Starring Tom Hardy & Charlize Theron 7/31 Mission Impossible 5 Mission Impossible 4 ($210 M) 5/22 Tomorrowland George Clooney stars 8/7 - The Fantastic Four - Marvel 5/29 San Andreas Dwayne Johnson stars 9/25 Hotel Transylvania 2 Hotel Transylvania ($148M) 6/12 Jurassic World Jurassic Park 3 ($180 M) 11/6 Spectre (Bond 24) Skyfall ($305 M) 6/19 Inside Out Disney/Pixar 11/20 Hunger Games Mockingjay 2 Hunger Games 2 ($425 M) 6/26 Ted 2 Ted ($220 M) 11/25 The Good Dinosaur Disney/Pixar 7/1 Terminator Genisys Terminator 2 ($205M) 12/18 Star Wars Episode 7 Star Wars Ep. 3 ($380 M) (Domestic Grosses per Rentrak) 3D denoted in red 7
Compelling Upcoming Film Slate 53 3D films already announced in 2016-2018 2016 Captain America 3 Captain America 2 ($260 M) Finding Dory Finding Nemo ($340 M) Batman vs Superman Man of Steel ($290 M) Independence Day 2 Independence Day ($305 M) Alice in Wonderland 2 Alice in Wonderland ($335 M) Ice Age 5 Ice Age 3 ($195 M) X-Men: Apocalypse Next Bourne Chapter The Jungle Book Kung Fu Panda 3 Kung Fu Panda 2 ($165M) 2017-2018 Avatar 2 & 3 Star Wars Episode VIII Avengers: Infinity War Part I Pirates of the Caribbean 5 Frozen 2 Madagascar 4 Toy Story 4 Pacific Rim 2 Guardians of the Galaxy 2 The Fantastic Four 2 Despicable Me 3 Planet of the Apes 3 Captain Marvel Black Panther (Domestic Grosses per Rentrak) 3D denoted in red 8
CNK Long Term Strategy Parallel Companies Alt. Content, Screen Ad and Satellite Delivery Int l Alternative Content WW System Integration Use technology base to expand utilization, take cost out of system, and enhance customer experience. Focus on organic and strategic acquisitions and maintain/revitalize asset base. Enhance Customer Experience Int l New Markets Market Adaptive Concepts New Organic Theatres Brand Enhancement Cinemark Connection Best / Brightest 3D Updating / VIP Concept
Using Technology to Increase Utilization of Theatrical Platform Transforms How the Industry Does Business Enhances Customer Experience 10 While Taking Cost out of the System
Expansion of Alternative Entertainment Advance Screening and Behind-the-Scenes E-Sports The Metropolitan Opera TV Events Disney Diamond Series Concerts Classic Film Series Sports 11
Transforming Innovations FLIX Media Company Cinemark s in-house media company in Brazil Utilize experience from U.S. on-screen advertising model Roll out to other Latin American markets Expand alternative entertainment Long-term ancillary revenue opportunity Intention to add other exhibitors partners o First revenue share affiliate added Q1 2013 12
Digital Technology Transforming the Industry Cinemark Digital Digital Footprint o 100% digital U.S. circuit (first run) since 2011 o 100% satellite distribution since 2014 o 100% digital Latin American circuit as of April 2014 o 100% satellite capable by end of year 2014 RealD 3D Footprint o 54% RealD 3D enabled in the U.S. o 64% RealD 3D enabled in Latin America Barco 4K DLP Projectors o Highest light output (up to 33,000 lumens) o X-Brite: 6 ft. lamberts o Ultra-sharp image quality with enhanced 4K resolution o 3D established consistent market base 13
Cinemark Highlights Total Cinemark Worldwide Box Office: $1.6 Billion 14
Cinemark Highlights Cinemark s attendance of 264 million customers is more than the four Major League sports and College Football attendance combined. 300 263.9 250 200 150 184.5 184.5 100 50 0 73.7 50.3 21.5 21.4 17.6 Total of Selected Professional Sports & NCAA Football Source: ESPN & NCAA. Data from 2014, regular-season attendance only, except NCAA football, which is 2013 as 2014 not yet available and NHL data which is 2011-2012 season due to lockouts in 2012-2013 season. CNK data TTM 12/31/2014. 15
Cinemark Domestic Theatres We are #1 or #2 in 23 out of our top 30 U.S. markets 1, including the San Francisco Bay Area, Dallas, Houston, Salt Lake City, Sacramento and Pittsburgh. Future committed new build sites 41 States and 101 DMAs (1) Ranking based on box office revenues as of 12/31/14. 16
Cinemark International Theatres 13 Countries 20+ Years Experience Operating in LatAm Largest exhibitor in Brazil & Argentina Cinemark has theatres in 12 of the 15 largest metropolitan areas in South America Latin American breadth and strength provides a robust, self-funded growth engine. 17 Future committed new build sites
Highly Experienced Management Team Name / Position Years in Industry Years with Company Experience Lee Roy Mitchell Chairman since 1996 Chairman 50+ 27 CEO from 1987 until 2006 Tim Warner 40+ 18 Director since inception in 1987 CEO of Cinemark since January 2014 and member of the board since November 2014 CEO and BOD President and CEO of Cinemark since February 2012 Robert Copple President and COO of Cinemark USA from 2006-2012 President of Cinemark International, LLC from 1996-2006 Board Member of National Association of Theatres Owners President and COO since January 2014 President and COO EVP since January 2007 and CFO from 2000-2013 18 18 President of PBA Development, Inc., an investment management and venture capital company, from 1997-2000 Director of Finance of Cinemark from 1993 1997 Senior Manager at Deloitte & Touche, LLP from 1982-1993 Valmir Fernandes President of Cinemark International, LLC since March 2007 18 18 President of Cinemark International President of Cinemark Brasil, S.A. from 1996-2007 Sean Gamble EVP and CFO since August 2014 CFO EVP and CFO of NBCUniversal Universal Pictures from 2009-2014 8 CFO of General Electric Oil and Gas - Equipment from 2007-2009 VP Financial Planning, & Analysis for NBCUniversal Universal Pictures from 2004-2007 18
Customer Experience Enhancements Disciplined operating philosophy centered on building the best quality assets across the industry. 19
NextGen Theatre Experience Wall-to-wall, ceiling-to-floor screens in all auditoriums Enhanced surround sound systems Typically includes an XD auditorium and self-serve concession stand Operating 25 NextGen theatres with 269 screens as of 3/31/15 20
Enhanced dining menu that can be enjoyed in the auditorium s luxury seats o Fresh wraps, hot sandwiches, burgers, gourmet pizza o Beer, wine, specialty cocktails o Typical concession offerings 2 test markets o Edinburg and El Paso, TX 21
Towson, MD and Playa Vista, CA 22
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Cinemark XD XD is the World s Leading Private Label Premium Large Format (PLF) Brand Ability to show any 2D or 3D film Expected highest grossing films selected each week for XD auditoriums No additional revenue share beyond standard studio agreement Additional ~$125K for a new build XD and $500K - $650K for an XD conversion Cinemark Leads all Major Exhibitors in Number of Private Label PLF s 1 200 180 160 140 120 100 80 60 179 86 XD price premium increases average ticket price ~ $3-2D ~ $5-3D 40 20 0 Worldwide 28 20 (1) Data as of 12/31/14. 24
Concession Innovations Cinemark has seen 33 consecutive quarters of domestic concession per cap increases. Self-Service Concessions Specialty Product Offerings New Natural, Organic and Low Cal Offerings Worldwide Concession Per Cap $3.40 $3.20 $3.00 $2.80 $2.60 $2.40 $2.20 $2.00 3.18 3.06 2.93 2.82 2.66 2.53 2.55 2008 2009 2010 2011 2012 2013 2014 25
Significant Latin American Growth & Industry Out-Performance # of Screens 180 130 80 30 Cinemark International Screen Growth 6 95 ~100 4 15 67 72 83 71 50 29 Latin America presents significant opportunity for future organic theatre growth. Cinemark s international growth has outperformed our industry leading North American circuit. Latin American region led global box office growth in 2010, 2011 and 2013. -20 2009 2010 2011 2012 2013 2014 2015E Built Hoyts Argentina Acquired Other Acquired All business is done in the local currencies of each individual country. Annual Box Office CAGR Rates from 2008-2014 2014 Industry Box Office Size and Growth by Region 20% 15% 10% Industry $3.0 $12.4 $10.4 YOY Industry Growth * U.S./CAN -5% EMEA -3% APAC 12% 5% Industry 1.3% 5.4% 11.0% 10.1% $10.6 LATAM 2% 0% North America Source: MPAA and Public Filings. * Using rounded data provided by MPAA. Latin America (In Billions) 26
Broad and Leading Latin American Presence Strong and wide presence strategically important to film distribution and to potential Pan-Regional promotional partners 162 theatres and 1,189 screens in 13 countries 27 As of 3/31/15 Strong Latin American Presence Years in Country Theatres Screens Rank (1) Brazil 17 67 528 #1 Argentina 17 19 168 #1 Chile 21 16 113 #2 Colombia 15 28 144 #2 Peru 17 10 77 #2 Ecuador 17 6 36 #3 Central America 17 15 110 Bolivia 1 1 13 Total 162 1,189 NEW IN 2014 Approximate Box Office Share (1) Brazil Argentina (2) Chile (3) 34% 4% 4% 7% 9% 20% 11% 15% 6% 5% (1) TTM 12/31/2014 45% (2) Proforma for Hoyts Acquisition. (3) Proforma for Cinepolis acquisition of Cinemundo 15% 30% 10% 38% 35% 12% Cinemark GSR Cinepolis Araujo Espaco UCI Other Cinemark Village Showcase Lumiere Cinemacenter Other Cinemark Cinepolis Cineplanet Other
Significant Latin American Screen Growth Potential 2014 Attendance/Capita 2014 Population & Screen Data (A) U.S. (B) U.K. (B) 2.6 3.8 Population ( 000s) (C) Total Screens in Country CNK Screens Mexico 2.2 120.3 5,821 0 (D) Chile Peru Argentina Colombia Brazil 1.2 1.1 1.1 0.9 0.7 Screen Growth Potential 2.0x incremental screens in underserved countries to reach Mexico levels 17.4 374 113 30.1 552 77 43.0 815 168 46.2 884 144 202.7 2,876 528 Ecuador 0.7 15.7 280 36 (A) Data excludes Central American countries. Argentina CNK data is pro forma for Hoyts. CNK screens are as of 3/31/15. (B) Sources: US & Canada (2014 MPAA). UK (2013 British Film Institute). (C) Population source: Index Mundi July 2014 Estimate (D) Sale of Mexico theatres closed 11/15/2013 28
CNK Brazil Small Markets Deal PATRIA INVESTIMENTOS In partnership with Blackstone; 35 years in business; Recently created a US $1 Billion Real Estate fund to invest in shopping Center TENCO SHOPPING CENTERS 25 years in business; 14 malls developed (2 with CNK); Expert in developing malls in cities with 150K to 1.0 million inhabitants CINEMARK EXCLUSIVE THEATRE OPERATOR Focus in cities with less than 300K inhabitants. 29
CNK Brazil Small Markets Deal 3 new deals planned to open in 2015 11 new deals expected in 2016-2017 7% 7% 21% 36% 29% South Southeast Midwest Northeast North 30
Transforming Innovations Cinemark Connection Create direct connection with patrons o Social Media o o Emails o 3.6+ million emails sent each week SmartPhone App o o ~5.3+ million downloads to-date CineMode o o o Enhances the movie-going experience Rewards patrons for good theatre etiquette Creates partnership and promotion opportunities with vendors and studios 31
Strong Balance Sheet and Well-Capitalized Significant cash reserves o Ability to take advantage of growth opportunities as they arise No near-term debt maturities o Covenant-lite debt ($ in millions) Mar. 31, 2015 Cash and Cash Equivalents $533 Long-term Debt, including current maturities: Senior Secured Credit Facility 684 4.875% Senior Notes due 2023 530 5.125% Senior Notes due 2022 400 7.375% Senior Notes due 2021 200 Other 7 Capital Lease Obligations 213 Total Debt $2,034 Net Debt $1,501 TTM Adj. EBITDA $615.1 Net Debt/Adj. EBITDA (excl. capital leases) 2.1x Note: The Company has an undrawn revolver of $100mm. 32
Valuable Equity Investments Equity Stakes 20% Public Shareholders NCM Shares owned by Cinemark 25.631 mm NCM Stock Price (5/1/15) $15.26 Cinemark Value $391 mm 33
Return of Equity to Shareholders Increased quarterly dividend 19% to $.25/share ($1.00/share annually) Currently trading at ~2.3% yield (as of 5/1/15) $1.20 Dividend History $1.00 $0.80 $0.72 $0.84 $0.40 $0.00 34
Solid Recent Results Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, REVENUES 2015 2014 % Change 2014 2013 U.S. 474,295 444,920 1,934,990 1,912,674 International 174,333 160,192 704,623 783,053 Eliminations (3,230) (2,832) (12,623) (12,833) TOTAL REVENUES 645,398 602,280 7.2% 2,626,990 2,682,894 ADJUSTED EBITDA U.S. 107,107 93,540 436,863 455,489 International 40,014 35,015 159,662 169,834 TOTAL ADJUSTED EBITDA 147,121 128,555 14.4% 596,525 625,323 % EBITDA Margin 22.8% 21.3% 22.7% 23.3% 1) Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on early retirement of debt, other income, depreciation and amortization, impairment of long-lived assets, (gain) loss on sale of assets and other, changes in deferred lease expense, amortization of long-term prepaid rents and share based awards compensation expense. 35
Company Summary Highest Attended Worldwide Theatrical Exhibitor 497 theatres with 5,687 screens in 14 countries Strong, Consistent Growth and Industry Performance Leader Highest TTM Adjusted EBITDA and Adjusted EBITDA Margin among leading exhibitors 2014 total revenue of $2.6 billion and Adjusted EBITDA of $597 million State-of-the-Art, High Quality Circuit 100% of domestic theatres connected to DCDC satellite network, allowing for livestreaming event coverage and expanded alternative entertainment Cinemark Connection creates a direct connection with patrons through social media, emails, and smartphone apps Geographically Diverse Footprint Industry leading domestic performance provides stable returns, pays strong dividend, and allows for organic growth and acquisitions International market expansion enables continued growth opportunities Supplemental Growth Catalysts Alternative content International parallel companies (Flix Media, alternative content distribution, and satellite content delivery) Compelling 2015 and 2016 film slate Note: Statistics as of 3/31/15
Thank You 37 Contact: Chanda Brashears, Investor Relations Manager cbrashears@cinemark.com (972) 665-1671