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Our cinemas are at the heart of every community we operate in. Our Corporate Responsibility strategy, called “Doing the Right Thing” supports our overall strategic transformation to reinforce our commitment to improving guest experience and engage our colleagues.

Doing the

right thing

The central Group CR committee meets twice a year and reports to CEO Paul Donovan and the Board annually. It consists of a team of sector experts and the Managing Directors of each of our markets to ensure our targets are bold, and our local delivery is effective and tailored to each community.

Our aim is to make a real difference across everything that we touch and the way that we behave, to exceed the expectations of our colleagues and our guests. This is enshrined in a set of clear promises that coordinate responsible business practice and provide a strong basis of governance across our Group.

Our “Doing the right thing” strategy has 5 principal pillars:

Having baked the pillars into our business activities in 2014, in 2015 we have focused on driving delivery in every market that we operate. Our colleague teams have been fundamental to the rapid progress, and we thank them all.

Corporate Responsibility

‘DOING THE RIGHT THING’as we create inspiring entertainment experiences for every guest

OUR ENVIRONMENT

Waste management

Energy

OUR COMMUNITY

Accessibility

Charity

OUR WORKPLACE

Fun at work

Employee engagement

OUR MARKETPLACE

Industry support

Health & wellbeing – our

brands and others

OUR GOVERNANCE

Risk management

Policies, licences & reporting

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Community

CHARITY – ‘A PASSION FOR GIVING BACK’

Cinemas have been at the heart of their local communities for decades, and our teams across Europe are dedicated to helping others and raising money for good causes.

In each of our markets, our people support a dedicated charity by raising money and awareness. As well as partnerships with national charities, we also partner with specific organisations when we can make a noticeable difference, either at a national or local level.

Progress and action

ODEON teams in the UK and Ireland have raised over £1 million for two children’s charities; the NSPCC and Variety since partnering with both organisations in 2007. We’ve been able to achieve so much thanks to the passion and generosity shown by our colleagues, guests and industry partners.

For Variety, our support funded customised, state-of-the-art wheelchairs, “Sunshine Coaches” and other vital pieces of equipment for children up and down the country. In recognition of the fantastic fund raising efforts of ODEON teams, Variety International awarded us its prestigious Corporate Award for outstanding support.

Our support for the NSPCC has, among other initiatives, directly allowed them to recruit and train 31 volunteers to deliver assemblies in schools throughout the UK.

Having reached the original target in 2015, our charity committee started the process of electing a new charity partner and widening our scope of charitable activities. Naturally the decision was given to all our colleagues, who voted overwhelmingly to support the mental health charity Mind and their partners, Action for Mental Health in Scotland, and Niamh and Aware in Ireland.

We’ll be working with Mind and their partners on a number of key collaborations and involving colleagues personally through volunteering opportunities and a series of exciting events. As well as raising funds, our partnership will raise awareness of mental health issues and the support available.

In Spain, through 'Cinesa Se Mueve' (Cinesa Moves), Cinesa supports a variety of partners and associations – e.g. Oxfam and Medicos sin Fronteras.

In Germany, the team currently works closely with the German Red Cross and are exploring a new national partnership. At a local level, our teams have started a programme of events to offer free film screenings to local refugee communities.

In Italy, our teams raised €20,000 for Special Olympics and their “Adopt a Champion” campaign – a 50% increase on the 2014 total. We also are focused on support at a more local level. As well as fundraising for a number of local charities, our teams are giving practical support to a number of communities. In 2016, more than half of our cinemas in Italy (24 cinemas) are starting a local charity project, having team colleagues spending at least eight hours outside cinema helping a local organisation. And in Genova, the scene of devastating floods in recent years, the team have worked with local authorities to produce and broadcast public information films about reacting to such natural disasters. In Turin and Moncalieri we have partnered with Air Down to support people affected by Down Syndrome to offer them meaningful working experience.

PLACING CINEMAS AT THE HEART OF OUR COMMUNITIES

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ACCESSIBILITY – ‘PLACING CINEMAS AT THE HEART OF OUR COMMUNITIES’

Our vision is to create inspiring entertainment experiences for every guest. It’s the rule that defines everything we do. And the pertinent part for our CR strategy is obviously every guest. And if a person needs extra help to visit us or to work with us, we’re dedicated to forecasting what that might be, and delivering it.

Our Accessibility goals are:

Our guest service and websites meet an excellent standard for accessibility

We’re actively trialling new accessibility technology

All new cinemas are designed to the highest standards of accessibility

We offer a wide range of technologies and services which help our guests. Technology has helped us become far more accessible, and we’re passionately embracing it. We work with expert partners, for example the 'UK Cinema Association', ‘Business Disability Forum' and other professional groups, to develop solutions to our own and industry wide barriers to access.

All cinema teams are fully trained on disability access, all relevant tools and equipment (ie audio description and subtitling), the Equality Act and all are updated accordingly.

For our hard of hearing guests, we provide induction loop facilities at our sales points and dual infra red systems in our screens that can be tuned into with hearing aids. We’ve done a lot of work to increase the number of captioned performances and to improve the times that they’re scheduled.

In 2016, 77 ODEON cinemas ensured their first ever screenings of Captain America: Civil War (at midnight) were shown with subtitles. This was the largest number of subtitled "first shows" ever offered, with a mix of 2D and 3D screenings.

This follows the success of a similar campaign for Star Wars: The Force Awakens in 2015, when we responded to feedback from our guests and showed 356 subtitled performances in its first week across our cinemas in the UK, including 46 captioned midnight performances for fans who wanted to see it the very minute it was officially released. We don’t just focus on the blockbusters. In the first week of Star Wars, we also showed captioned screenings of 17 other films too.

In UCI Italy we have partnered with MOVIEREADING to give our guests discounted access to obtain and download subtitles of new films, and then come to the cinema and enjoy the movie.

For guests with visual impairment, an Audio Description service via a lightweight, infrared headset plays the film’s dialogue and narrates the action on-screen. And we’ve made our cinemas as accessible as possible for guests with a mobility impairment. Around 93% of our UK cinema screens are wheelchair accessible and full details of each venue are available on our website

TECHNOLOGY HAS HELPED US BECOME FAR MORE ACCESSIBLE, AND WE’RE PASSIONATELY EMBRACING IT.

CORPORATE RESPONSIBILITY

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All of our new cinemas have accessibility at the core of their design, with careful consideration given to layout of seats, handrails, auditoria with sloped floors and spaces for wheelchair users in the heart of the action. Sound and vision are crucial to the experience, and angles for projection and sound are carefully calculated, so that our wheelchair bays are central to the plans from the very beginning. Quite literally building accessibility into our cinemas – not just in the brand new sites, but also in sites that have received recent refurbishment like Bromborough.

For guests who need more information, reassurance or help booking ahead, the ODEON Disability and Accessibility service offers guests the option to chat with one of our friendly operators. Guests can also use a textphone, our online contact form, or our chat option on our website to assist them with their booking or enquiry.

ODEON is proud to be a founding member of the CEA Card scheme in the UK. Since 2004, this national initiative offers a free ticket to the person accompanying a disabled guest and is accepted at all ODEON cinemas. Last year we welcomed a fantastic 200,000 CEA card holders through our doors.

Our goal is to ensure we are at the forefront of all new accessibility technology and continually evolve our Group websites to ensure they are of an excellent standard for anyone with a disability to access. This area is moving incredibly fast, and in summer of 2015 we launched Innovation Labs in London and Barcelona where tech start up companies can come to us to pitch ideas and work with us to harness new ideas and technology across a range of guest service areas, including accessibility.

In our European territories, 100% of our cinemas are fully accessible.

UCI Kinowelt cooperates closely with GRETA & STARKS who offer free smartphone based apps for blind and deaf guests for selected movies, and was recently awarded first place for outstanding involvement in creating entertainment experiences especially for blind and deaf people in the GRETA & STARKS awards.

Our Cinesa cinemas support the mobile app Whatscine to allow our visually and hearing impaired guests to watch ‘Whatscine’ ready films. Currently available in selected sites, this is due to be rolled out further in 2016.

We were the first national UK chain to launch Autism Friendly Screenings. Subtle changes to the cinema environment mean guests who have sensory difficulties have a more positive experience than they would in a traditional cinema setting. These screenings have been held at 11:30am on one Sunday per month since 2011 and now play at more than 90 ODEON cinemas.

In 2015 we supported World Autism Awareness Week, during which we hosted nearly 300 special Autism Friendly screenings for the latest titles including Batman vs Superman, Zootropolis, and KungFu Panda 3.

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Environment USING INSPIRED THINKING TO TREAD LIGHTLY

CORPORATE RESPONSIBILITY

Our objective is to eliminate energy waste and increase levels of recycling through creative initiatives. We are always trying to identify new ways to improve our energy efficiency and waste recycling levels, reduce carbon emissions, water use and packaging.

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PROGRESS

In 2015 we conducted a range of extensive energy use surveys, including with the Energy Saving Opportunity Scheme and the Carbon Trust Standard, to measure our effectiveness at reducing energy consumption and our carbon footprint, and are now acting on the recommendations.

We were delighted to be re-awarded the Carbon Trust Standard for Carbon in 2015 in the UK. We already fully comply with all European laws and local regulations on waste management, and are working with experts in our business and outside to implement further learnings.

ACTION

We have ’Energy Champions’ in each local market, adopting and continually sharing best practice. All cinema teams are trained in HVAC usage and we conduct regular site inspections. We have also taken measures to improve the accuracy of our consumption data to measure performance.

In the UK, we have selected one cinema to be our ‘Hero’ Cinema, and will adopt all recommendations from our Carbon Trust and ESOS surveys to see what a difference we can make.

As part of our Brand experience manual, we have revised the processes for recycling waste in each cinema, increasing participation and accuracy by raising awareness among our people.

Across the Group, our new cinemas are being designed and built to use the latest energy saving processes and technologies, while existing buildings are being converted. UCI Bolzano, opened in 2015, uses exclusively LED lights, and UCI Palermo has had 80% of its lights converted to LED. We are on track to cut Carbon Emissions across our Group by a further 5% by the end of 2016.

CASE STUDY

Cinesa energy (and cost) reductions

Following a 7% reduction in electricity use in 2014, the team at Cinesa set themselves a target of reducing consumption again in 2015 by another 5%. By extending their continuous consumption behaviour monitoring, sharing best practices and working with their electricity suppliers, they achieved the 5% consumption reduction and a 6% cost saving. So thanks to their hard work and dedication, the Cinesa Energy Efficiency Project has reduced electricity consumption by 12% in 2 years, and delivered a cost saving of over €700,000. All of this has been achieved without impacting guest experience, because of course temperature and light are critical to creating a welcoming cinema environment.

5%80%

CUT CARBON EMISSIONS BY

OF ALL WASTE TO BE RECYCLED BY 2018

BY END 2016

TARGET

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Workplace

For a leisure and hospitality business like ours, a great guest experience is everything. We are therefore totally committed to recruiting, developing and motivating the kind of people who can be consistent with our vision, values, and behaviours.

Our Workplace CR pillar supports our overall Group people plan, which is outlined in more detail in this Annual Review.

The Workplace team in each market is focused on making sure we’re creating a great place to work by:

Recruiting fun-loving, high-energy people who are passionate about film.

Developing our people to be their very best.

Rewarding and recognising progress and achievement.

Focusing on relentless communication & engagement, so we’re always helping each other.

Throughout 2015 we launched a series of initiatives to strengthen our workplace, and ensure that our values are lived every day. Feedback is essential, and we hold regular “How’s it going” meetings with colleagues to make sure we’re always listening. Our “Lend a Hand” initiative has increased significantly, with all of our support office teams spending time in their local cinemas during busy periods to help their colleagues and deepen their understanding of our guests and their needs.

All of our colleagues are encouraged to bring new ideas to the senior management team and to contribute even more to the continued success of our business through our ‘The Innovation Game’ scheme.

We’ve massively increased our internal communications capabilities to demonstrate our favourite value – fun! We’re using more videos, newsletters and information campaigns than ever before. And thanks to the introduction of Google across our Group, we share our stories across our markets using Google+.

A FUN AND REWARDING PLACE TO WORK

CORPORATE RESPONSIBILITY

DID YOU KNOW? OUR FOUNDER WAS A PIONEER

OF THE EUROPEAN CINEMA EXPERIENCE, OPENING OUR

FIRST CINEMA IN 1930.

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The best stories come from our new “Surprise & Delight” initiative in our cinemas – where our people give their guests treats and surprises, and share the results across the Group. The results have been brilliant, increasing guest loyalty and creating a lot of fun in our cinemas.

A simpler and clearer role structure was introduced in our ODEON cinemas to focus on guest service, and also to provide all colleagues with a clearer career progression path. This was introduced with new training processes and job descriptions to help our people learn new skills and advance their careers. A pay review was also implemented which lifted all of our people above the UK minimum wage.

Our strong position on human rights is reinforced through our employment and ethics policies, which are designed to ensure that we conduct business in a legal and ethical manner at all times.

We are proud to have an inclusive recruitment policy that offers employment opportunities to all members of our community. Everyone is always treated fairly and equally, when they apply to join our team, and when they come to work with us. We recognise that employing a diverse range of people that reflect the communities we serve is beneficial to our business and to our communities.

In 2016, our targets for Diversity & Wellness include:

Focus on developing a workplace that reflects the diversity of our guests.

Develop Diversity strategy to support improved gender balance in workplace progression.

Create proposal around colleague wellness and support for across the Group.

WE RECOGNISE THAT EMPLOYING A DIVERSE RANGE OF PEOPLE THAT REFLECT THE COMMUNITIES WE SERVE IS BENEFICIAL TO OUR BUSINESS AND TO OUR COMMUNITIES.

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The objective of our Marketplace Group is to provide products and services that are well sourced and offer our guests a wide range of choices.

TARGETS

Work with Government and suppliers to reduce “sugar intake through soft drinks” by 10% per litre sold by the end of 2016. (Whilst continuing to provide guests with the opportunity to choose from the full range of soft drinks, all POS and promotional activity will be driven through a zero sugar option.)

Give customers the ability to have a complete understanding of what they are consuming. By doing so, this will enable customers to "do their own version of the right thing". Healthier options for food, particularly with lines associated with children, gluten free, no / low sugar etc.

Know the origins and work ethics behind all products we sell1

2

3

In the last three years ODEON has added Snog, Metcalfes and Innocent Drinks to our range, and were the first UK cinema chain to stop selling 1 litre drinks.

We are proud that many of our suppliers, such as Ben & Jerry’s, Danone and Coca Cola have strong CR strategies. Because we do the right thing, we ask our suppliers to do the same with our group-wide Code of Conduct for all our suppliers to follow. We regularly conduct a full review of all official signage for our products to ensure our guests have all the facts and figures they need to make an informed decision about the products they buy and the snacks they enjoy.

OUR PROMISES

We’ll only advertise soft drinks in sugar free or low sugar variants

We’ll always display allergen, calorie and salt information for all the products we sell in our cinemas

We’ll refine and rework our recipes to reduce salt and sugar levels

We’ll keep exploring and expanding leaner, greener tasty treats.

We continue to introduce new products on both a permanent and trial basis to further develop the range of healthier snacking options. Healthier trials include a protein ice-cream offer with no added sugar, gluten-free and low in fat.

Many of these initiatives are included as part of ODEON’s commitment after joining the Department of Health’s “Public Health Responsibility Deal” in 2012 to improve public health. We continue to commit to six big health pledges around food and alcohol, including out of home calorie labelling, reformulation of products to reduce salt, tackling under age alcohol sales and alcohol labelling.

Marketplace DELIVER THE COMPANY VISION WHILST “DOING THE RIGHT THING”

CORPORATE RESPONSIBILITY

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Governance

CASE STUDY

Food development across the Group

In 2015 the retail team at Cinesa launched a partnership with the Alicia Food Foundation in Spain, a centre devoted to technological innovation in cuisine, to fundamentally review the popcorn range and create a healthier and tastier product range. The objectives were simple – to reduce salt, sugar and fat, while increasing flavour and appeal.

Following 12 months of intensive development work, focus groups and taste trials, the first results were introduced to a Cinesa cinema in Barcelona in March 2016.

Behind the scenes, the cooking process has been overhauled, with the popcorn now cooked in local olive oil (which reduces the fat content, increases flavour and promotes local sourcing), overall salt content reduced by 5% and all artificial sweeteners and colourings removed. Front of house presentation is also crucial, and new packaging and displays highlighting the improved health benefits and flavours greet guests in the cinema foyer. Feedback has been very positive, and trials will extend to another four cinemas in summer 2016.

Helping guests to reduce sugar consumption is a core Group objective. Approximately 51% of the drinks sold today are low sugar or sugar-free, and the Group aims to continue increasing this percentage, with sales of Costa coffee (ODEON is Costa’s fourth largest franchisee in the UK) and other soft drinks, juices and water continually increasing. In spring 2016 ODEON & UCI launched a unique Group-wide partnership with the Coca Cola Company to further develop the range of lower sugar alternatives in cinemas across Europe.

ODEON & UCI teams are trialling innovative “experiential” dispensers with Danone to drive sales of natural yoghurt in Italy, and teams in Germany and Italy have launched new gluten-free ranges, including nachos.

The Group-wide focus on the food and beverage range in 2015 with new products, training and merchandising – all linked to the Group’s “Doing the right thing” CR strategy – contributed to a £29m (+19.2%) growth in retail revenues, and the innovation is accelerating in 2016 as the Group realises the benefits of a strategy that sees full alignment between business development and corporate responsibility.

The objectives of our Governance Group are to support the health and wellbeing of the business and in doing so ensure there is a Group Corporate Governance Manual which is fully adhered to and constantly monitored and updated.

Our team ensures that the structures and processes by which the Group is controlled, and the guiding principles to be followed in carrying out the business of the Group, are properly established and well understood by all staff members.

Our Corporate Governance Manual has been fully refreshed and updated, and draws together a single point of reference for a clear statement of all structures, processes and principles. The Manual clearly sets out the role of the Board, the CEO and established committees of the Board, matters reserved for Board approval and areas of delegated authority as well as details of policies and procedures including data protection, cyber security and health and safety.

THE FOUNDATION ON WHICH OUR BUSINESS IS BUILT