Investor Presentation December 5, 2017 Reader Advisory This - - PowerPoint PPT Presentation

Investor Presentation December 5, 2017

Reader Advisory

This presentation contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects"

• r "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of

such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this presentation, and Empire assumes no

• bligation to update or revise them to reflect new events or circumstances, except as may be required under

applicable securities laws. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies

• f the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this presentation.

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Company Strengths

Compelling Industry Trends Experienced Management Team Unique Expertise & Proprietary Products & Service Proven Growth & Ability to Execute Strategy Strong Customer Relationships

Ø Transformed from an industrial mini-conglomerate to a global leader solely focused on the Attractions market Ø Award-winning businesses, recognized as the ‘world’s best’ in: Ø Exceptional, long term growth expected in the attractions market Ø Strategic plan to enhance highly-successful contract manufacturer business with co-ownership of attractions now underway

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Global leader in rapid growth market

Ø High-tech, media-based attractions market (Dynamic Attractions) Ø Large telescope market (Dynamic Structures)

Global growth in entertainment

Ø The middle class is growing rapidly, particularly in Asia, with a disposable income and increased appetite for entertainment. Ø Theme park construction is growing fast, particularly in Asia, where Empire is well- established.

Financial Post, September 11, 2014 5

Ø Designer and builder of premium, media-based attractions Ø Proprietary product line, such as Robotic Vehicles, Flying Theatres, Special Effects Roller Coasters, Autonomous Vehicles Ø Recent awarded USD $120 million contract; size considered an industry record Ø Contract backlog of $235 million (September 30, 2017)

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Creator of the most popular attractions

Ø In November the company launched new products, demonstrating its game-changing technological capabilities. Ø These innovative products come at a time when theme park operators are aggressively seeking differentiating rides to attract guests. Ø Earned the coveted ‘Best New Product Concept’ at IAAPA 2017, the industry’s definitive annual convention. Ø This is the company’s third successive win.

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All-Terrain Dark Ride Flightcycle

Empire earns industry’s top award, again!

Ø Proprietary Products v Iconic Dark Rides (tracked & trackless (autonomous vehicles) v High-tech theatre products v Special effects roller coasters v Self-propelled race vehicles Ø Custom Manufactured Ride Systems v Cutting-edge rides that have never been built before v Created for famous entertainment destinations Ø Unlimited Attractions™ v Turn ‘rides’ into ‘attractions’ v Integrate story-telling, lighting, media, special effects with the ride system Ø Parts and Services v Parts for rides manufactured by Dynamic and others v Maintenance and consulting services

Products and Services

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Proprietary Products

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Built 50 iconic rides around the world

Ø Co-ventures are a natural extension of Empire’s business, from manufacturer of ride systems and supplier of turnkey media-based attractions. Ø Co-own and operate the Dynamic Attractions’ Flying Theatre and its

• ther proprietary attractions, under an exclusive license.

Ø Co-venture subsidiaries will partner directly with high traffic, tourist- based locations. Ø Targeted profit is expected to be recurring and predictable, all of which is valuable from a market valuation perspective, especially in China. Ø In August 2017, Empire announced a $31 million Co-venture initiative – a letter of intent to structure and fund two flying theater attractions at key tourist venues in North America and China

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Co-ventures to generate recurring revenues

Ø Source of Funds...$31 million $12 million - Equity to Dynamic Entertainment from Empire $5 million - Private placement with a strategic investor* …………………..directly into Dynamic Entertainment …………………..($4 million will be invested into the Chinese affiliate) $14 million - Private placement with a strategic investor* …………………..in the Chinese affiliate Ø Use of Funds.........$31 million $13 million - North American Co-venture (smaller theater) $18 million - Chinese Co-venture (larger theater)

* James Chui is joining the Empire Board and the Dynamic Entertainment Board and the Co-venture subsidiaries once the transaction closes successfully. James Chui’s biography is in Empire Industries’ August 28, 2017 news release.

Co-venture Start-Up Capital

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Strategic Leadership Team

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Stock Price 52 week high/low $0.74/$0.30 Number of Shares 68.4 million (84.6 million FD) Avg Daily Trading* 38,000 Market Cap (Dec 1, 2017) $37.8 million ($0.55/share) TTM Revenues* $133.3 million TTM EBITDA^ $9.6 million Long Term Funded Debt^ $13.4 million *As at Sept 30, 2017

Capital Markets Information

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Financial Highlights

3 months 3 months 9 months 9 months Q3 2017 Q3 2016 Q3 2017 Q3 2016 Revenue 41,501 32,330 105,760 90,456 117,987 131,225 Adjusted EBITDA 2,657 2,014 8,400 4,415 5,594 8,139 Adjusted EBITDA % 6.4% 6.2% 7.9% 4.9% 4.7% 6.2% Net Income 889

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3,174 5,673 3,978 1,370 Net Income Per Share-Basic $0.01 ($0.00) $0.04 $0.06 $0.06 $0.02 FY 2015 FY 2016 (C $000)

Co Company Name Currency cy Ma Mark rket Ca Capitalization ($ ($ millions) EB EBITDA [L [LTM] ] ($ ($ millions) Di Diluted EPS Excl

• cl. Extra Items

[L [LTM] ] TE TEV/LTM TM EB EBITDA Ma Mark rket Ca Cap/LTM To Total Re Revenues P/ P/LTM TM Di Diluted EP EPS P/ P/Book Va Value Merlin Entertainments plc (LSE:MERL) CAD 6,172.0 803.4 0.35 10.3x 2.4x 18.2x 9.7x The Walt Disney Company (NYSE:DIS) CAD 201,240.1 21,314.2 7.28 10.8x 2.9x 18.2x 53.7x Comcast Corporation (NASD: CMC) CAD 221,725.3 36,169.2 2.67 8.4x 2.1x 17.8x NM Six Flags Entertainment Corporation (NYSE:SIX) CAD 6,967.6 723.8 2.51 13.9x 4.1x 33.1x NM Cedar Fair, L.P. (NYSE:FUN) CAD 4,851.5 568.1 3.41 11.7x 2.9x 25.3x NM Brogent Technologies Inc (GTSM:5263) CAD 509.9 15.7 0.23 31.0x 8.9x 50.8x 4.8x D-Box Technologies Inc. (TSX:DBO) CAD 53.7 0.5 ( 0.02 ) 89.8x 1.6x NM 2.9x IMAX China Holding, Inc. (SEHK:1970) CAD 1,363.3 67.5 0.13 17.5x 9.0x 29.7x 4.5x Me Mean n 55, 55,821. 821.9 7, 7,481. 481.5 2. 2.07 07 24. 24.5x 4. 4.2x 27. 27.6x 30. 30.2x 2x Me Medi dian n 5, 5,677. 677.0 646. 646.0 1. 1.43 43 12. 2.8x 2. 2.9x 25. 5.3x 7. 7.25x 25x Em Empire Industries (TSXV:EI EIL) CA CAD 37. 37.8 9. 9.6 ( ( 0.01) ) 6. 6.2x 2x 0. 0.5x 5x NM NM 2. 2.4x 4x

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Source: Capital IQ and Yahoo Finance, Nov 17, 2017

Comparables: Opportunity for multiple growth at Empire

Ø ‘Go-to supplier’ for theme parks undertaking significant capital expansion programs worldwide, including the two industry leaders Ø Well positioned for Asia’s growing demand: § Bilingual management with strong background in Asia § Empire is building/has installed rides in China, Japan, Malaysia, Indonesia, South Korea, Hong Kong and Macau Ø Unrivalled technical and creative knowledge for iconic attractions Ø Successfully closed an equity raise of $7.9 million in early December 2017 which will help fund the planned growth and co-venture initiative Ø Negotiated a $19 million private placement with a strategic investor directly into the co-venture initiative, expected to close in Q1 2018

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Strong catalysts for growth

Ø Empire is focused on benefiting from the global phenomenon of accelerating growth in entertainment capital spending. Ø Empire is leveraging its reputation as a ride system supplier to expand profit margins in four ways: § building the complex ride systems for the leaders in the theme park industry § Turning ride systems into turn-key attractions with its Orlando

• ffice and Unlimited ServicesTM

§ Recurring revenue and profit from replacement parts and services § Recurring revenue and profit from Co-ventures Ø Insiders, Officers & Directors own 50% of the company

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Why invest in Empire

Thank you