 Founded in 1967  Headquartered in Mississauga, Ontario  400+ IMAX theatres in over 40 countries  A leader in the creation and production of high- end rides, such as IMAX Simulator Rides  Most revenue is generated from the sale or long- term lease of IMAX theatre systems, maintenance and warranty services, installation of theatre systems, and film distribution

 Prior to IMAX the Industry standard for movie projection - CinemaScope and VistaVision ◦ widened the image projected from 35 mm film ◦ multiple large and awkward projectors were used to show a single movie

1960’s-1970’s Expo ’67 - Montreal Expo ‘70 - Osaka Ontario Place's Cinesphere 1980’s Competition grows Showscan Iwerks 1990’s Expo ‘90 IMAX bought by WGIM Corp for ~$100 million Goes public - $13.50/share An Oscar! 2000’s Slowing North American entertainment market Shares drop by 70% 12 IMAX customers went bankrupt

 Politics ◦ Films and content are highly regulated ◦ Varying degrees of censorship and periodic bans on directors who have offended party bosses ◦ Only 20 foreign films are allowed each year  Culture – importance of relationships ◦ CEO Gelfond began to travel to China 12 years ago

2002 – IMAX theatre attendance averaged 60% of capacity (4 times the 15% required to be successful) – Often sold out at 9 or 10 am 2009 – WTO orders Beijing to stop forcing owners of copyrighted materials to deal only with a single government controlled distribution company IMAX films difficult to copy

 2001 ◦ First IMAX projection system installed in China  2004 ◦ First commercially- operated IMAX theatre in China  2007 ◦ MPX theatre at Suzhou Science and Cultural Art Center

 June, 2009 ◦ IMAX announces a three-film deal with Huayi Brothers  First major Chinese film studio to list on a stock exchange  Voted #42 Most Innovative Company by Fast Company Magazine  (Facebook #1, Amazon #2, Apple #3, Microsoft #48, Twitter #50)

 Licenses technology to developers ◦ Upfront fee and royalties and between 10-15% of box office revenue

 “The IMAX theatre network is expanding very rapidly in China and we continue to see heavy interest across the country – from commercial theatre chains, property developers and institutions” ◦ Gelfond and Wechsler, 2005

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