IMAX Corp. Q3 FY2024 earnings call

• IMAX is in a new sustained growth era with exhibitor demand for IMAX surging. Installed 100 systems worldwide year-to-date, tracking to hit high end of installation guidance. • Delivered strong global box office in Q3, with domestic box office exceeding 2019 by 45%. • 2025 and 2026 slates are strong with films like Avatar, Avengers, etc. Chris Nolan's next film in 2026 will use new IMAX technology. • Progress in global network with signings in France, Australia, Saudi Arabia. Live streaming League of Legends in China across 70+ IMAX locations. • Strong content portfolio with Deadpool and Wolverine, Venom: The Last Dance performing well. Hired first Chief Content Officer to coordinate content portfolio.

Content solutions revenue was $30 million, representing the third highest Q3 box office ever on various tentpole content. Year-over-year, content solutions revenues declined 32% due to the content mix compared to the prior year's record-setting Oppenheimer box office. Technology products and services revenue was $58 million, growing 3% driven by strong system installation growth, which offset lower box office related rental revenues. System installations in Q3 were 49, up 63% from Q3 2023, with year-to-date installations at 88 and on track to hit the high end of the installation guidance range of 130-150 systems.

• Expect 2025 to be the best year ever at global box office with over $1.2 billion in IMAX grosses. • Installations tracking to high end of 130-150 systems guidance. • 2025 has at least 14 films for IMAX releases, including Hollywood and local language films. • Confident in stronger Chinese box office in 2025 with local language films dated for Chinese New Year and beyond.

• Economic conditions in China and globally could impact box office performance. • Uncertainties in content performance and consumer reception of new films. • Competition from other cinema technologies and streaming services could affect IMAX's market share.

Q: Do theatre operators want to accelerate installation pace for IMAX systems?

A: Rich Gelfond says installations were significantly more than a year ago and signings are likely higher than 2023, showing increased pickup.

Q: Any comment on talks with Netflix about Narnia movie?

A: Rich Gelfond says he missed the story but states filmmakers and studios are leaning into IMAX experience and they're always innovating.

Q: Spacing of films in 2025 and China slate?

A: Natasha Fernandes mentions films like Creation of The Gods Part 2, A Writer's Odyssey approved for China, giving confidence in balanced genre slate.

Q: China's film performance and economy impact?

A: Richard Gelfond says it's a combination of economic weakness, film genre fit, and Covid hangover, but sees improvement ahead.

Q: SG&A and R&D guidance?

A: Natasha Fernandes says R&D won't be negative going forward, and SG&A variance was due to transaction costs from China privatization.

Q: Confidence in 2024 box office guidance and 4Q films?

A: Richard Gelfond is confident in the Thanksgiving period slate including Gladiator, Wicked, etc., and end-of-year films like Mufasa.

Q: Capacity utilization initiatives?

A: Natasha Fernandes talks about alternative content, team restructurings, and hiring a Chief Content Officer to drive utilization.

Q: System sales vs rentals strategy?

A: Natasha Fernandes says a mix of systems is the strategy, with opportunity in rentals based on slate and exhibitor balance sheets.

Q: Screen installation lag and post-pandemic?

A: Richard Gelfond says there's a seasoning period, but openings around major movies can accelerate word of mouth.

Q: Local language film supply and CapEx?

A: Richard Gelfond says local language film supply is trending, and Natasha Fernandes talks about CapEx and historical patterns of installations.

Q: '25 guide and superhero fatigue?

A: Natasha Fernandes says 2025 guide was based on holistic P&L view, and Richard Gelfond dismisses superhero fatigue, citing balanced slate.