Investor Presentation

Investor Presentation
NASDAQ: DCIN
www.digiplexdest.com
Forward Looking Statements
Certain statements and estimates in this presentation are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example,
statements about: expected benefits from the conversion to digital cinema; and the Company’s
ability to successfully pursue its strategies. These forward-looking statements are not guarantees
of future performance. They are based on management's expectations that involve a number of
business risks and uncertainties, including the risks set forth under the heading “Risk Factors” in
our prospectus dated April 18, 2012, any of which could cause actual results to differ materially
from those expressed in or implied by the forward-looking statements. Any estimates or other
forward-looking statements provided in this presentation speak only as of the date they were
made, and, except to the extent required by law, we undertake no obligation to update or review
any estimate and/or forward-looking statement because of new information, future events or
other factors.
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Digiplex Overview
 Digiplex (NASDAQ: DCIN) is a fast-growing U.S. motion picture exhibitor dedicated to
transforming movie theatres into digital entertainment centers
 Founded in 2010, DCIN operates 8 theatres and 73 screens in 3 states; HQ is Westfield, NJ
 Strategy is to acquire existing cash flow positive theatres in strategic markets, and increase
profitability by converting to digital format and benefiting from operational synergies,
incremental revenue opportunities and cost reductions
 DCIN closed its initial public offering (IPO) of 2.2 million shares of Class A common stock at
$6.10 per share on April 20, 2012
 Joint book running managers / co-lead underwriters of DCIN’s IPO exercised the
overallotment option on May 4, purchasing an additional 323,900 shares of Class A
common stock at the public offering price
 Aggregate net proceeds from the IPO and overallotment were approximately $13.2 million
3
Digiplex Investment Highlights
Led By Industry
Veterans
Transform Movie
Theatres To
Entertainment
Centers
Demonstrated
Track Record
Organic Growth /
Acquisition Strategy
Acquisition
Opportunities
4
Management
Digiplex Management Team

BUD MAYO, Chairman and CEO (Board Member): Industry veteran with over two decades of experience. Founder
and former leader of Cinedigm Digital Cinema Corp. (NasdaqGM:CIDM) and Clearview Cinemas

BRIAN PFLUG, CFO (Board Member): Former Controller at Clearview Cinemas and former SVP of Accounting and
Finance at Cinedigm Digital Cinema Corp

JEFF BUTKOVSKY, Chief Technology Officer: Former Senior Vice President and Chief Technology Officer from October
2000 to July 2010 for Cinedigm Digital Cinema Corp
Digiplex Independent Board Members

CHUCK GOLDWATER, Consultant – Cinedigm Digital Cinema Corp.: Has worked in senior management positions
within the industry for over 20 years (Clearview Cinemas, Loews, Mann Theatres); former CEO of Digital Cinema
Initiatives, the major studio consortium that set digital standards; currently a consultant for Cinedigm for their
digital cinema deployment

NEIL ANDERSON, Partner / Of Counsel – Sullivan & Cromwell: Experienced veteran in M&A transactions across the
globe, formerly Sr. M&A Partner at Sullivan & Cromwell; frequent speaker and faculty member on professional
seminars and programs dealing with M&A

RICHARD CASEY, Software Entrepreneur / Founder – The Casey Group: Operating since 1989, IT consulting firm that
helps clients leverage technology to gain strategic advantages; Board Member of Affinity Federal Credit Union

MARTIN O’CONNOR, II, Managing Partner – O’Connor, Morss & O’Connor P.C.: Law Firm focused on advising clients
of strategic planning, wealth management and family offices; specializes in entertainment law. Board Member of
Cinedigm and Rentrak
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Case Study: Clearview Cinemas
Clearview Cinemas: Attractive exit return for IPO Investors when sold to Cablevision
Share Price Aug-21-1997 (market open):
$ 8.00
Sold for Share Price Dec-8-1998 (on or about 12/8):
$24.25
Hold Time (# of days):
~ 474
Return on Investment (approximate):
233%
Clearview Cinemas Corporate Timeline
1995: Acquired 3
theatres and 11
screens
1994
Sep. 1994: Co-founded
by Bud Mayo with 4
theatres and 8 screens
1995
Dec. 1994: Received
equity from CMNY
Capital and added 3
screens
1996: Acquired 9
theatres and 39
screens
1996
May 1996: Received
equity investment of
$4.5M from MidMark
Capital
Aug. 1997: IPO – Sold
1.15M shares for $9.2M
gross
Jan. – Sep. 1998: Acquired 11
theatres and the right to
operate one theatre for a total
of 54 screens
1997
1997: Acquired 14 theatres with
79 screens, added 6 screens to
acquired theatres and
constructed a 5 screen theatre
1998
Dec. 1998: Sale to Cablevision
(NYSE: CVC) for $160M and
acquired 35 screens including
New York City’s Ziegfeld Theatre
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS: The above information is presented solely for informational purposes, and no representation, warranty or guarantee is being made relative to the
future performance of the Company or the trading price of its Class A common stock whatsoever. An investment in our Class A common stock involves significant risks. You should consider carefully all of the
information in our preliminary prospectus dated April 9, 2012, including the risks and uncertainties described therein and the financial statements and related notes included therein, before making an
investment in our Class A common stock. There is a substantial risk of loss.
6
Industry Overview
7
Box Office Results
3rd Consecutive Year Of $10B+ U.S. Box Office
 Box office growth over the long term
(1970-2011) despite new media
outlets and alternative distribution
methods
U.S. Annual Box Office Performance (billions $US)
$12
$11
2011
$10.2
5% Box Office CAGR* (1970-2011)
$10
$9
$8
 Q1’12 domestic box office revenues
grew +23.7% Y/Y and attendance
grew +22.7% Y/Y1
$7
$6
$5
$4
$3
$2
$1
$0
1Source:
BoxOfficeMojo
Commercial Penetration of New Media Forms “Competing” With Box Office:
Cable
VCR
Internet
DVD
Sources: Box Office Mojo, Box Office Magazine
8
Industry Growth Through All Economic Cycles
 As a fairly inexpensive entertainment
option, the movie industry is resilient
to economic pressures
 Industry growth in five of the last
seven recessions
12
$9.00
10
$7.00
8
$5.00
6
$3.00
4
$1.00
2
0
-$1.00
Box Office Revenues
Avg. Ticket Price
Tickets Sold
Recession Period
Sources: Box Office Mojo, Box Office Magazine
9
Average Ticket Price ($US)
 Stable industry with long-term
growth trends and consistent pricing
power
U.S. Box Office Performance
Box Office Revenues (billions $US)
Attendance (billions)
Industry has Performed Well Long-term
Out of Home Entertainment Options
2011 Average Ticket Price for a Family of Four ($US)
NFL
Movie ticket costs for a family of
four in North America are
significantly lower when
compared to theme parks and
major U.S. sports
$309.44
NHL
$228.40
Theme
Parks
$199.00
NBA
$193.92
MLB
$107.64
Cinemas
$31.72
$-
$50
$100
$150
$200
$250
$300
$350
Source: MPAA, NATO, Sports Leagues, International Theme Park Services
1NBA and NHL data is for the last complete season.
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Digital Cinema as the New Industry Paradigm
Motion Picture Exhibitor Benefits
Digital cinema benefits both the
exhibitors and industry partners.
DCIN is successfully
implementing innovative
programming strategies to
further maximize the value of
this new industry paradigm
Pricing: Premium 3D
Improved seat utilization
Operating efficiencies
Flexibility and faster delivery
Expanded content offerings
New revenue streams
Incremental concession sales
Sharper image, improved patron experience
Motion Picture Studio Benefits
Distribution cost savings
Visually higher-quality films
Pricing benefits from 3D format
Improved security against piracy
Ability to tap archives for re-releases
Director / Producer Benefits
Sharper image and advanced effects
Enhanced creative platform
Reduced post-production time
Immersive viewer experience
11
Strong Growth of Digital Screens and 3D
Worldwide Digital Screens (thousands)1
 Over half of the worldwide cinema screens have
already converted to digital format
 Approximately 30% of worldwide cinema
screens are 3-D capable
 Digital
drives
incremental
admissions,
concessions and advertising revenues by
enabling theatres to show alternative content
(i.e. Opera, Sports, Concerts, etc.) at off-peak
times in addition to Hollywood films; DCIN
utilizes preshow advertising supplied by
National CineMedia (NasdaqGS: NCMI)
 Alternative content represented 7% of DCIN’s
admissions revenues in 1H’F12; 10% December
quarter
Source: MPAA 2011
1Total screens figures are forecasts as of February 2012. IHS Screen Digest revised the estimates
for China and India significantly downward from 2010 levels, affecting the Asia Pacific and
global totals.
70
60
50
40
30
20
10
2007
2008
2009
2010
2011
U.S. Screens by Type (thousands)1
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Digital 3-D
2006
2007
Digital non-3D
2008
2009
2010
Analog
2011
12
Business Overview
13
Our Locations
Connecticut
New Jersey
Pennsylvania
Current Total
Target
(within 4-months
of closing IPO)
Theatres (#)
1
2
5
8
8
Screens (#)
8
11
54
73
73
1,119
1,588
10,420
13,127
13,127
5
6
6
17
40%
100%
100%
11%*
34%
100%
Seats (#)
3D (#)
Digital (%)
*Expect to be 100% digital by July 4, 2012
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Digiplex Model – “Cinema Reinvented”
TRANSFORM
CONVERT & INVEST
ACQUIRE
 Cash flow positive theatres
 Focus on top locations
 Seek attractive multiples
 Convert all analog screens to digital
 Integrate into DCIN’s platform
 Add screens where feasible /
profitable
 Transform theatres to
entertainment destinations
 Use innovative programming /
marketing strategies to increase
seat utilization
INCREMENTAL REVENUES
ADVERTISING
COST REDUCTION
 Software systems provide flexibility
/ reduce costs
 Virtual print fees (VPF) benefit
theatre level cash flows
 Capitalize on membership in
National CineMedia’s network of
pre-show advertising
 Attendance gains, concession
revenue increases
 3D / premium films and alternative
content
 Ad-revenues of 17¢ per patron
minimum guarantee
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Acquisitions of High Quality Assets
Recent DCIN Acquisitions
 DCIN completed the acquisition of Cinema Centers on April
20, 2012
 Purchase added 5 theatres and 54 screens throughout
Pennsylvania to DCIN’s footprint
Acquisition activity within the
industry has gained
momentum as the digitalconversion deadline for
theatres is fast-approaching
 Purchase price: $14.3 million, or 4.9x theatre level cash
flow
DCIN’s Acquisition Strategy
 Purchase theaters at approximately 5x theatre level cash
flow
 Targeting about 100 locations throughout the U.S., which
may approximate 1,000 screens
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Innovative Programming Strategy
Digital conversion provides new revenue opportunities
Programming
Marketing
 We estimate that average weekly seating utilization
for theaters is only 10%-15% of capacity, falling
below 5% from Monday-Thursday
 Digital conversion expands film exhibitors’ content
choices to include 3D films, alternative
programming, live events and corporate meetings
 Our integrated marketing strategy goes hand-inhand with our innovative programming
 We effectively utilize social media and other lowcost, highly targeted advertising
Ballet, Broadway, Opera
Classical and Pop Concerts
Sports
Children’s Programming
Independent Films
VIP-Only Sponsored Events
Corporate & Other Functions
Fashion Shows
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Customer Demand for Alternative Content
Sample Alternative Content and Event Grosses
Alternative content has outperformed the lowest grossing movie on that day
Event Gross
that Day
Highest Grossing
Movie that Day
Lowest Grossing
Movie that Day
Event Ticket Price
(1 adult)
$50.94
$77.82
$0.00
$18.00
$1,345.26
$125.40
$0.00
$20.00
Concert: Rolling Stones Live in 1978
$672.03
$89.60
$9.43
$12.50
Goat Rodeo Sessions: Yo-Yo Ma
$509.40
$132.00
$19.80
$15.00
$2,425.00
$73.36
$56.07
$12.50
$778.14
$231.53
$28.29
$20.00
Day of the Week Event Offered
Monday
Concert: Lang Lang Encore
Tuesday
Ballet: Nutcracker Live
Wednesday
Broadway: West Side Story
Thursday
Philharmonic Renee Fleming/Israel
Saturday
Met Live: Don Giovanni
$7,073.02
$529.97
$21.24
$25.00
Sports: Mayweather vs. Ortiz
$1,816.86
$2,037.05
$44.34
$18.00
Opera: Phantom of the Opera Live
$1,103.70
$281.50
$28.32
$18.00
Sunday
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