Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community
• Film Piracy
• Access for All
• Environment
• Retail
• Employees
• Safety

Environmental Achievements

• Replaced Christmas cards with e-cards, donating cost savings to charity.
• Installed a “grey water” system at Didcot multiplex to reuse rainwater.
• Implemented LED lighting in new and refurbished cinemas.
• Consolidated film transportation to one supplier, reducing vehicle numbers.

Social Achievements

• Major venue partner for Edinburgh and Jameson Dublin Film Festivals.
• Sponsored a Variety Club Sunshine coach for Helen and Douglas House hospice.
• Participated in National Schools Film Week with over 350 screenings.
• Hosted 20 regional premieres for “Quantum of Solace” for local charities.
• Implemented “Maximum Impact” program to develop retail sales skills.
• Over 80% of management positions filled through internal promotions.
• Offered £1 children’s films on Saturday mornings (price unchanged for 12+ years).
• Discounts for senior citizens and students.
• Free tickets for wheelchair user helpers.
• Improved accessibility in new and refurbished cinemas.
• Phased in infrared systems to aid the hard of hearing.
• Regular screenings of subtitled films.

Governance Achievements

• Maintained appropriate standard of corporate governance.
• Board evaluation process confirmed satisfactory performance of Directors.

Climate Goals & Targets

Environmental Challenges

• Changes to screen advertising business.
• Turmoil in financial markets.
• Weakening economy.
• Marked rises in energy prices.
• Persistent softening advertising spend.
• Increases in cost of sales due to commodity price changes.
• High costs of digital conversion.
• Film piracy.
• Reduced consumer demand due to economic downturn.
• Reduced lending affecting film productions.
• Potential for film studios to release films through other channels.

Mitigation Strategies

• Strong financial position and cash generation.
• Cost control measures.
• Strong business model resilient to economic climate.
• Long-term contracts providing cost protection.
• Largest digital and 3D estate in the UK.
• Film piracy awareness sessions and detection devices.
• Support for FACT (Federation Against Copyright Theft).
• Ongoing initiatives to improve estate and customer proposition.
• Focus on a wide range of films beyond Hollywood blockbusters.

Supply Chain Management

Responsible Procurement

• Consideration given to ethical policies of suppliers regarding child labour and environmental issues.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community Investment
• Employee Development
• Environmental Sustainability
• Accessibility
• Film Piracy Prevention

Environmental Achievements

• Reduced paper used in popcorn bags by 39%, saving over 24 tonnes of paper per year.
• Switched to soya oil for popcorn, reducing saturated fat and calories, and saving £80k per annum.
• Reduced packaging used for nacho chips by more than 8%.
• Introduced a water-saving initiative with Ben & Jerry’s, saving up to 78% of water used in scoop shop dipping wells.
• Recycled 3D glasses and changed pricing to encourage reuse.
• Improved electricity usage by over 3.5% in 20 cinemas from May to November 2009 compared to the same period in 2008.
• Conversion to digital technology reducing environmental impact.

Social Achievements

• Introduced a web-based recruitment management system for fair and consistent candidate treatment.
• Implemented a new performance management framework for employee objective setting and performance reviews.
• Launched a new recruitment website to increase efficiency and effectiveness of staff recruitment.
• All General Managers attended “People Management” and “Managing Misconduct” courses.
• Bonuses paid to all staff for the 15th consecutive year.
• Sponsored two MA scholarships at the National Film and Television School.
• Sponsored a Cineworld branded Variety Club Sunshine coach for Woodlands School in Aberdeen.
• Partnered with Tesco Clubcard programme, achieving over 200,000 admissions.
• Rolled out a new gift card proposition.
• Expanded marketing team to focus on digital opportunities and B2B sector.
• Offered Saturday morning films for £1 (price unchanged for over 13 years).
• Provided discounts for senior citizens and students.
• Offered free tickets to wheelchair user helpers.
• Improved accessibility for disabled customers in all new cinemas and during refurbishments.
• Regular screenings of subtitled and audio descriptive films.
• Installed infrared systems in all new cinemas and replaced induction loop systems in older cinemas.

Governance Achievements

• Amended Articles of Association to permit the Board to consider and authorize conflicts of interest.
• Implemented a formal system for the Board to consider and authorize conflicts of interest.
• Undertook a Board evaluation process in September 2009.

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment impacting consumer spending and advertising revenue.
• Reduced funding for developers impacting new cinema openings.
• Significant fall in screen advertising revenues due to wider advertising industry downturn.
• Bollywood strike disrupting Bollywood film supply in the first half of 2009.
• High costs of digital equipment conversion.
• Risk of film studios reducing supply of 35mm films.
• Film piracy.
• Rising energy and foodstuff costs.

Mitigation Strategies

• Developed value initiatives to respond to value-conscious customers.
• Refreshed and replaced ice cream and general retail areas, adding 13 new Ben & Jerry’s scoop shops.
• Renewed long-term arrangements with Coca Cola and Candyking.
• Targeted retail promotions at specific customer groups.
• Implemented operational efficiencies and effectiveness at DCM.
• Consolidated leading position in digital projection by installing 74 digital projectors in Q1 2009 and installing a further 102.
• Redeployed existing digital projectors to larger auditoria.
• Continued to offer customers the broadest range of films.
• Developed alternative content offering (opera, ballet, theatre productions, international rugby in 3D).
• Worked closely with CEA, FACT, and INFA©T Ireland to combat film piracy.
• Increased vigilance around high-profile releases and use of night vision technology.
• Implemented energy efficiency surveys and operational procedure reviews to minimize energy waste.
• Implemented a “grey water” system (later abandoned due to higher carbon footprint).
• Preparing for inclusion in the Environment Agency’s Carbon Reduction Commitment Energy Efficiency Scheme.

Supply Chain Management

Responsible Procurement

• Consideration of ethical policies (child labor, environmental issues) when selecting suppliers.
• Minimizing number of vehicles and deliveries to cinemas.
• Working with key supply partners to understand their CSR credentials.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• New popcorn bags using 39% less raw material
• Soya oil for popcorn
• Nacho chips with 12% less salt and reduced packaging

Environmental Metrics

ESG Focus Areas

• Environment
• Health and Safety
• Diversity

Environmental Achievements

• Reduced carbon emissions by 2.6% since the launch of the Carbon Reduction Commitment scheme three years ago (excluding Picturehouse), despite growth in estate and introduction of new offerings.

Social Achievements

• Launched and expanded Unlimited and MyCineworld membership programs, exceeding expectations in membership growth.
• Opened new cinemas in Wembley and Gloucester Quay, and reopened Glasgow Science Centre IMAX as a Cineworld Cinema.
• Opened nine new Starbucks outlets.

Governance Achievements

• Maintained a strong culture of the highest corporate governance standards.
• Reviewed and improved practices concerning environmental, gender and other diversity matters, and health and safety concerns.

Climate Goals & Targets

Environmental Challenges

• Competition Commission required divestment of cinemas in Aberdeen, Bury St Edmunds, and Cambridge.
• Delays in construction of new cinemas in St Neots, Swindon, and Telford.
• Uncertainty over development financing and timing of new projects.
• Overall decline in UK and Ireland total box office revenues of 0.3%.

Mitigation Strategies

• Undertook the process of disposing of cinemas as required by the Competition Commission.
• Adjusted opening timelines for new cinemas.
• Maintained strong financial position to pursue expansion opportunities.
• Focused on customer-centric strategies (Unlimited, MyCineworld) to drive growth despite market decline.

Supply Chain Management

Responsible Procurement

• Ethical policy: treating others as you expect to be treated yourself.

Climate-Related Risks & Opportunities