Q2 FY 2012 Investor Call Supplement (11/02/2011)

Safe Harbor
This press release includes forward-looking information and statements, including but not limited to: statements concerning anticipated future financial and operating performance; RealDs ability to continue to derive substantial revenue from the licensing of RealDs 3D technologies for use in the motion picture industry, as well as RealDs relationships with consumer electronics panel manufacturers and its ability to generate substantial revenue from the licensing of RealDs 3D RealD s technologies for use in the 3D consumer electronics market; 3D motion picture releases and conversions scheduled for fiscal 2012 ending March 23, 2012, their commercial success and consumer preferences; our ability to increase the number of RealD-enabled screens in domestic and international markets and market share; our ability to supply our solutions to our customers on a timely basis; RealD's relationships with its exhibitor and studio partners and the business model for 3D eyewear in North America; the progress, timing and amount of expenses associated with RealDs research and development activities; market and industry trends, including growth in 3D content; RealDs projected operating results; and competitive pressures in domestic and international markets These statements are based on our managements current markets. management s expectations and beliefs, as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our managements control that could cause actual results to differ materially from the results discussed in the forward-looking statements. The Companys Quarterly Report on Form 10-Q for the three months ended t t t Th C Q t l R t F 10 Q f th th th d d September 23, 2011 and other documents filed with the SEC include a more detailed discussion of the risks and uncertainties that may cause actual results to differ materially from the results discussed in the forward-looking statements. RealD undertakes no obligation to update publicly the information contained in this press release, or any forward-looking statements, to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
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License Revenue is Key Driver of Profitability

RealD continues to focus primarily on driving growth in license revenues.

Gross License Revenue

($ Millions)

License Revenue as % of Gross Revenue

Domestic

International

59%
$52.0 $35.4
$29.3 $18.4 $18 4

46%

$17.0

$22.7

Q2 FY '11
3

Q2 FY '12

Q2 FY '11

Q2 FY '12

Product Revenues: Modeling Domestic vs. Intl

Domestic product revenue has generally approximated domestic license revenue since each cinema admission in North America generates glasses revenue. Intl product revenue has approximated 50% of intl license revenue in recent quarters as more intl moviegoers reuse their 3D glasses
Domestic License / Product Revenue ($MM) Has B H Been Close to 1 to 1 R ti Cl t t Ratio Intl License / Product Revenue ($MM) Has B H Been Close to 2 to 1 R ti Cl t t Ratio
$28.1 $22.9 $22 9 $21.3 $22.7 $20.9 $14.8 $11.2 $10.2 $10 2

$12.9

$14.2

$14.8

$13.4

Q4 FY '11

Q1 FY '12

Q2 FY '12

Q4 FY '11

Q1 FY '12

Q2 FY '12

License Revenue
4

Product Revenue

License Revenue

Product Revenue

Mix Shift to Higher Margin License Revenues

License revenue has increased to 59% of gross revenue from 40% of gross revenue in the past five quarters.
P d Product R Revenue As % of Gross Revenue Li License R Revenue As % of Gross Revenue

60% 54% 49% 43% 40% 41% 40% 46% 57% 51%

60%

59%

Q1 FY '11

Q2 FY '11

Q3 FY '11

Q4 FY '11

Q1 FY '12

Q2 FY '12

Q1 FY '11

Q2 FY '11

Q3 FY '11

Q4 FY '11

Q1 FY '12

Q2 FY '12

Strong Growth in Adjusted EBITDA Measures

Growth in license revenue contributed to increased profitability, higher margins
Adjusted EBITDA
($ Millions)

Adjusted EBITDA Margin

$44.4

50%

25%
$16.5

Q2 FY '11

Q2 FY '12

Q2 FY '11

Q2 FY '12

Solid Performance on GAAP Profitability Measures

GAAP Net Income and EPS reached new highs in Q2 FY '12

Consolidated Gross Margin

(%)

Net Income (Loss) Attributable to Common Stockholders

($ Millions)

Diluted Earnings (Loss) Per Share

$18.9
48%

$0.33

21%

($0.12)

($5.1)

Q2 FY '11

Q2 FY '12

Q2 FY '11

Q2 FY '12

Q2 FY '11

Q2 FY '12

International Growing in Importance

International markets generated 56% of RealDs license revenue in Q2 FY '12 despite only 41% of RealDs 3D screens being deployed internationally.
International As a % of RealD Gross License Revenue Second Fiscal Quarter
56% 52%

Year-to-Date in Fiscal Year

57% 45%

Q2 FY '11 11

Q2 FY '12 12

YTD FY'11

YTD FY'12

Continued Growth in RealD Screens Worldwide

RealD had deployed 18,700 3D screens worldwide as of September 23, 2011, an increase of 101% versus the prior-year comparable period.
International screens Domestic screens (U.S. / Canada)

18,700 18 700

9,300

11,100

5,600 7,600 3,700

Q2 FY '11
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Q2 FY '12

Tougher Comparison in Second Half of FY 2012

8 3D films on the slate for Q3 FY 2012 vs. 9 3D films in Q3 FY 2011 6 3D films in Q3 FY 2011 generated $100+ million in total domestic box office (Jackass, Megamind, Tangled, Chronicles of Narnia, Tron Legacy, Yogi Bear)
RealD Film Slate for Q3 FY 2012 Ending December 23, 2011

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Modeling Note: RealD Has 4-4-5 Quarterly Calendar

Quarter end dates are important for modeling purposes. 4-4-5 stands for 4 weeks, 4 weeks, 5 weeks. Quarter end is always on a Friday.

RealD Quarter End Dates: FY 2012

Fiscal Quarter Q1 FY 2012 Q2 FY 2012 Q3 FY 2012 Q4 FY 2012 Quarter End Date 6/24/2011 9/23/2011 12/23/2011 3/23/2012

RealD Quarter End Dates: FY 2013

Fiscal Quarter Q1 FY 2013 Q2 FY 2013 Q3 FY 2013 Q4 FY 2013 Quarter End Date 6/22/2012 9/21/2012 12/21/2012 3/22/2013

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Reconciliation to Non-GAAP Adjusted EBITDA

($ thousands) Net income (loss) Add (deduct): Interest expense Income tax expense Depreciation and amortization (1) Other (income) loss Share-based comp expense(2) Exhibitor option expense(3) (4) Impairment of assets and intangibles Sales and use tax(5) (6) Property tax (7) Management fee Adjusted EBITDA Q2 FY12 Ended 9/23/2011 $19,177 272 4,159 7,054 (1,099) 4,733 7,710 2,017 330 $44,353 Q2 FY11 Ended 9/24/2010 ($4,214) 283 824 3,376 (197) 2,352 11,556 164 2,007 241 87 $16,479

(1) Includes amortization of debt issue costs, unrealized foreign currency exchange gains and losses and gain from the sale of digital projectors. (2) Represents share-based compensation expense of nonstatutory and incentive stock options to employees, officers, directors and consultants. (3) Represents stock options granted to some of our motion picture exhibitor licensees. The amounts are recorded as contra revenue in the condensed consolidated financial statements. (4) Represents impairment of long-lived assets, such as fixed assets, theatrical equipment and identifiable intangibles. (5) Represents taxes incurred by us for cinema license and product revenue. (6) Represents property taxes on RealD Cinema Systems and digital projectors. (7) Represents payment of management fees to our Series C mandatorily redeemable convertible preferred stockholder (included in general and administrative expense, which was terminated upon the completion of our initial public offering).

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3D Film Release Slate Schedule*

Release Date 4/15/2011 4/29/2011 5/6/2011 5/13/2011 5/20/2011 5/26/2011 6/17/2011 6/24/2011 6/29/2011 7/15/2011 7/22/2011 7/29/2011 8/12/2011 8/12/2011 8/19/2011 8/19/2011 8/19/2011 9/2/2011 9/16/2011 9/23/2011 10/21/2011 10/28/2011 11/4/2011 11/11/2011 11/18/2011 11/23/2011 11/23/2011 12/21/2011 12/25/2011 1/13/2012 1/20/2012 2/10/2012 2/10/2012 2/17/2012 3/2/2012 3/2/2012 3/9/2012 Film Title in FY 2012 Rio Hoodwinked Too: Hood vs. Evil Thor Priest Pirates of the Caribbean: On Stranger Tides g Kung Fu Panda 2 Green Lantern Cars 2 Transformers: Dark of the Moon Harry Potter and the Deathly Hallows: Part II Captain America The Smurfs Final Destination 5 Glee Live! 3D! Spy Kids: All the Time in the World Fright Night Conan the Barbarian Shark Night 3D The Lion King 3D Dolphin Tale Three Musketeers Puss in Boots A Very Harold & Kumar 3D Christmas Immortals Happy Feet 2 Arthur Christmas Hugo The Adventures of Tintin: Secret of the Unicorn The Darkest Hour Beauty and the Beast (re-release) Underworld 4: Awakening Journey 2: The Mysterious Island Star Wars: The Phantom Menace (re-release) Ghost Rider 2: Spirit of Vengeance Dr. Seuss' The Lorax Hansel and Gretel: Witch Hunters John Carter Film Title for FY 2013 and Beyond (Partial List) Piranha 3DD Wrath of the Titans The Pirates! Band of Misfits Titanic (re-release) Not Born to Be Gladiators q Untitled Cirque du Soleil 3D Movie Top Gun (re-release) The Avengers Men in Black III Madagascar 3 Prometheus Jack the Giant Killer Brave Abraham Lincoln: Vampire Hunter Amazing Spider-Man 4 Ice Age : Continental Drift Step Up 4Ever 3D ParaNorman Resident Evil 5: Retribution Finding Nemo (re-release) Dredd Hotel Transylvania Frankenweenie Texas Chainsaw Massacre 3D Nurse 3D Silent Hill 2: Revelation 3D Halloween 3D Wreck-It Ralph Gravity Rise of the Guardians 47 Ronin Escape from Planet Earth The Hobbit 1: An Unexpected Journey Life of Pi The Great Gatsby Turbo Croods

Q3 FY '12

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* Source: Rentrak and studio announcements .