March 8, 2011 Cineplex Entertainment La Large gest st The Mo - - PowerPoint PPT Presentation

Credit Suisse Global Media and Communications Convergence Conference March 8, 2011

Cineplex Entertainment

La Large gest st

Company in

Mo Most st Succ Successful essful

and Motion Picture Theatre Exhibition

Canada

131 131

Theatres

with

1,362 1,362

Screens

The

*as of December 31, 2010

Box Office Market Share - 2010

Empire

12.9% 12.9%

Other

9.9% 9.9%

AMC

6.1% 6.1%

Landmark

2.3% 2.3%

Guzzo

3.0% 3.0%

Canadian Market Share

Cineplex Entertainment

65.8% 65.8%

Market Share Regal 23% AMC 21% Cinemark 12% Carmike 4%

Box Office Revenues and Screen Count

2010

US Exhibitors Market Share

The Cineplex Business Model

*US Exhibitors include Regal, Cinemark, AMC and Carmike

Cineplex US Exhibitors* NCM Exhibition

 

Merchandising

 

Media

 

Alternative

 

Loyalty



E-Commerce



Cineplex vs. US Exhibitors – 2010 vs 2009

(1) North American operations only (2) Prior year pro forma information including pre-acquisition results of Kerasotes acquisition not available

Cinep ineple lex Rega gal Cinema inemark(1) AMC AMC(2)

BPP 4.4% 7.1% 4.3% (2) Box Office revenue growth 3.4%

• 1.8%

1.8% (2) CPP growth 3.6% 1.8% 3.1% (2) Concession revenue growth 2.7%

• 6.6%

0.6% (2) Total Revenue growth 4.8%

• 3.0%

1.4% (2) EBITDA growth 5.8%

• 11.3%

0.5% (2) Attendance growth

• 0.9%
• 8.3%
• 2.4%

(2)

Cinep ineple lex Rega gal Cinema inemark(1) AMC AMC

Total Revenue per Screen (000’s) $742 $419 $412 $491 BPP $8.67 $8.72 $6.48 $8.78 CPP $4.27 $3.23 $3.03 $3.36 Other Revenue per Patron $1.64 $0.57 $0.27 $0.31 EBITDA per patron $2.44 $2.21 $2.25 $1.58

Cineplex vs. US Exhibitors - 2010

(1) North American operations only

Exhibition

Overview

Business

2008

Cineplex Entertainment

2010 2009

Industry Box Office

* Source: Motion Picture Theatre Associations of Canada

Canadian Industry* +1.8% +13.7% +12.8% +3.4% +4.5% +3.3%

Cineplex vs North American Industry

• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 10% 12% Cineplex 1.4% 6.5% 3.8% 10.2%

• 0.9%

N.A. Industry 1.3% 0.3%

• 4.3%

6.0%

• 5.6%

2006 2007 2008 2009 2010

Attendance Growth (source: MPAA)

Cineplex Average = 4.2% North American Average=-0.5%

Media Merchandising Loyalty Interactive

Evolving the Entertainment Experience

Alternative Programming Exhibition

Loyalty Media Interactive Merchandising Exhibition

Evolving the Entertainment Experience

Alternative Programming

Exhibition

2011: 2011:

Digital rollout will expand to replace 35mm projectors Expand VIP Cinemas Expand UltraAVX - Audio Visual Experience New builds (Edmonton (Windermere), Chatham, Victoria (Westshore)) Theatre Upgrades and Retrofits D-Box – installations

69.4 million people visited our theatres in 2010 Exhibition fuels ALL core businesses

Digital Projection and 3D

Canadian digital financing structure

• Anticipate Q2 2011 launch
• Anticipate taking 18 months to complete rollout

As of Dec. 31, 2009 As of Dec 31, 2010

Digital Screens

190 415

Real D 3D Systems

149 366

Locations

89 118

Percentage of 3D Screens

11% 27%

3D Impact

Game changer – guests love 3D Drives increased attendance Drives increased box office revenues (premium price) Provides incremental growth potential moving forward

• Media – advertising revenues
• Alternative Programming – 3D sports, concerts,

live theatre, opera and more!

• Other core businesses benefit

e.g. Merchandising, SCENE

2008 2009 Full Year 2010

% of Total Box Office Revenues from IMAX and 3D

3.4% 14.4% 28.3%

Quality of Assets

Screens %

TOTAL CIRCUIT 1,362 100% Stadium 1,139 84% Non-Stadium 223 16%

Drive-Ins

8 1%

Lease Expiry < 5 years

142 9%

Owned & Other Locations

83 6%

Exhibition Summary

Loyalty Program Discount Tuesdays New Builds and Retrofits Evolving the Entertainment Experience

• Digital and 3D
• UltraAVX - Audio Visual Experience
• XSCAPE Entertainment Centres
• VIP Cinemas

Exhibition

Evolving the Entertainment Experience

Alternative Programming Loyalty Media Interactive Merchandising

The Metropolitan Opera World Wrestling Entertainment Bollywood and Ethnic Movies Concerts and Live Events UFC 2010 Olympic Games at 64 Cineplex theatres across Canada Future

• 3D sports, 3D concerts,

live theatre productions, speaker series

Alternative Programming

Loyalty Media Interactive Merchandising Exhibition

Evolving the Entertainment Experience

Alternative Programming

Merchandising CPP Revenue Growth

Pro Forma 2005

$3.44

2006 $3.72 $3.84 2007 $3.96 2008 2009 $4.12 $4.27 2010

Merchandising

Expand speed of service initiatives (Zoning) Rationalization of Branded Food Offerings Expand in-house brand – Outtakes Strategically add XSCAPE Entertainment Centres

2011: 2011:

Loyalty Media Interactive Merchandising Exhibition

Evolving the Entertainment Experience

Alternative Programming

Cineplex Media

93% 93%

Market Share

On screen advertising - Full Motion and Digital Pre-show Cineplex and Le magazine Cineplex Cineplex.com advertising Specialty Media - backlits, banners, popcorn bags, in-theatre sampling, kiosks, etc. Cineplex Digital Media - Theatre and External Networks Sponsorship and Naming Rights Other exhibitor representation commissions

Cineplex Media Revenue Summary

($millions)

2005 $34.2 2006 $47.1 $56.2 2007 2008 $61.0 $66.8 2009 2010 $82.3

Cineplex Digital Media Theatre Lobby & External Networks

Completed digital signage installations in 100 theatres Sports Stadium Network Plans to expand External Network Premiere office network

Cineplex Digital Solutions

Acquired in July 2010 Award-winning digital signage company CDS designs, installs, maintains and operates networks for retail, financial, hospitality and entertainment industries CDS’ ‘service model’ networks combined with Cineplex Digital Media’s ‘advertising model’ networks, sales force and entertainment content provide significant opportunities for growth

Loyalty Media Interactive Merchandising Exhibition

Evolving the Entertainment Experience

Alternative Programming

SCENE Loyalty Program

Program launched (January 24, 2007) Reached 1 million members (July 22, 2008) Reached 2 million members (October 24, 2009) At December 31, 2010 - 2.7 million members

Number of members (millions)

2007 2008 2009 2010 0.6 1.4 2.1 2.7

Gain a more thorough understanding

• f guests

Mine membership data to generate insights Communicate directly and regularly Drive Increased frequency of visitation Drive increased purchase incidence Generate additional revenue Continued member acquisition Add program partners Use database to target members

• Studios – film sequels or series
• Advertisers – targeted database

Cineplex targeted offers

• Drive frequency and purchase

incidenceMonetize program

SCENE Loyalty Program

Scene Scene Objectives: Futur Future Initiatives:

Loyalty Media Interactive Merchandising Exhibition

Evolving the Entertainment Experience

Alternative Programming

Interactive – Cineplex.com

Cine Cineple plex x Sto Store: e: 2011: 2011: Onli Online ne Tic Ticket eting: ing: 2011: 2011:

Fastest, easiest and most convenient way to purchase tickets -- PRINT SKIP SCAN Gift Card Redemption FRC Season Tickets D-Box Tickets Mobile Kiosks in Theatre Online sales of gift cards, DVDs, Blu-ray, new release and catalogue movies Stream HD content for DTO and VoD titles When available, store content in cloud-based UltraViolet™ account

m.cineplex.com Cineplex Apps - Blackberry, iPhone, iPad, iPod Touch, Android Mobile Payment and Ticketing SMS – contests, games, promotions, segmented alerts New Mobile Web Redesign New App – BlackBerry PlayBook Mobile Advertising Delivery for Media Additional Social Networking Integration – FaceBook/Twitter/FourSquare Cineplex Magazine, Entertainment News Feeds Archival Film Content SCENE new account sign up

Interactive - Mobile

Mo Mobile: bile: 2011: 2011:

Strategic Areas of Focus

Enhance and expand our existing exhibition infrastructure and service offerings Capitalize on our core media strengths to provide continued media growth inside and outside our theatres Expand our presence as an in-theatre and in-home entertainment destination for Canadians Pursue selective acquisitions that are strategic, accretive and capitalize on our core strengths

Financial

Highlights

Record Annual Results

*Indicates Annual Record

2010 2010 2009 2009 %

Box Office 601.1* $581.1 3.4% Concession 296.0* 288.3 2.7% Other 113.7* 95.0 19.7% Total Revenue 1,010.8* 964.3 4.8% Adjusted EBITDA 169.3* 159.9 5.8% EBITDA Margin 16.7% 16.6% 0.1% Attendance 69.4 70.0*

• 0.9%

BPP $8.67* $8.30 4.5% CPP $4.27* $4.12 3.6%

Attendance

(millions)

2005 2006 2007 2008 2009 2010 56.6 57.4 61.1 63.5 70.0 69.4

Box Office Revenue

Box Office Revenue

($millions)

2005 2006 2007 2008 2009 2010 $444 $459 $489 $511 $581 $601

Box Office Per Patron

($ millions)

Box Office per Patron

2005 2006 2007 2008 2009 2010 $7.99 $7.99 $8.05 $7.73 $8.30 $8.67

Concession Revenue

Concession Revenue

($millions)

2005 2006 2007 2008 2009 2010 $198 $213 $235 $252 $288 $296

Concession Revenue Per Patron

CPP

($millions)

2005 2006 2007 2008 2009 2010 $3.84 $3.72 $3.84 $3.96 $4.12 $4.27

Cineplex Media Other

Other Revenue

$68 $81 $87 $95

($millions)

$44 2005 2006 2007 2008 2009 2010 $114 $34 $47 $56 $61 $67 $82

Adjusted EBITDA*

Adjusted EBITDA

($millions)

2005 2006 2007 2008 2010 2009 $67 $118 $137 $145 $164 $173

* Results for Cineplex Entertainment Limited Partnership

Credit Facilities

Covenant Leverage Ratio

Ma Matu turity rity Ca Capa pacity city Dr Drawn awn

Term Facility

July 2012 $235.0 $235.0

Revolving Facility

July 2012 130.0

Total

$365.0 $235.0

($millions)

2.89 2.39 1.94 1.88 1.64 1.57

2005 2006 2007 2008 2009 2010

1.58

Distributions

Payout Ratio Distributions

112% 80% 69% 67% 59% 57%

2005 2006 2007 2008 2009 2010

2020 - 505 Burrard St

2010

20 40 60 80 100 120 140

Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11

Cineplex Regal Cinemark Carmike NCM

 Cineplex has outperformed its peer group since the 2007 IPO’s  Cineplex IPO Price – Nov. 2003 = $10.00  Cineplex Price – Dec. 2010 = $22.41  Dividends and Stock Appreciation = 21% CAGR since IPO in 2003

Performance and Returns

Peer Group Stock Performance

Why Invest in Cineplex?

 Conversion to Corporate Structure provides eligible investors

with dividend tax credit

 Diversified Business Model  Strongest Market Position – 65% Market Share  Industry Leading Attendance Growth  Industry Leading CPP  Industry Leading Revenue per Screen  Industry’s Lowest Leverage  Industry’s Highest Dividend Yield  Public Float similar to U.S. circuits

Questions

Answers

and