Q1 Cineplex Galaxy Income Fund 2008 Cineplex Entertainment - - PowerPoint PPT Presentation

Cineplex Galaxy

Income Fund

Q1 2008

Cineplex Entertainment Circuit

The Largest and Most Successful Motion Picture Theatre Exhibition Company in Canada

131Theatres 1,327 Screens

with

As of December 31, 2007

Box Office Market Share

Market Share of Canadian Box Office Revenues 2007

Empire Empire

12.8% 12.8%

Other Other

8.0% 8.0%

AMC AMC

5.8% 5.8%

Landmark Landmark

3.3% 3.3%

Guzzo Guzzo

3.2% 3.2%

66.9% 66.9%

Cineplex Entertainment

Overview

Exhibition Business

Consistent Long-Term Box Office Revenue Growth

1965 1970 1975 1980 1985 1990 1995 2000 2005

Recessionary Periods

CAGR

since

1965 5.7%

Canadian Box Office Revenues - 1965-2007

Canadian Industry* +1.3% Cineplex Entertainment +6.5%

Full Year Full Year

2007 Industry Box Office

* Source: Motion Picture Theatre Associations of Canada

Films for Summer 2008

Iron Man

May 2nd Chronicles of Narnia

Prince Caspian

May 16th

Indiana Jones

Kingdom of the Crystal Skull

May 21st

Sex And The City

May 30th

Kung Fu Panda

June 6th

The Incredible Hulk

June 13th

Get Smart

June 20th

Wall-E

June 27th

Films for Summer 2008

Hancock

July 2nd

Hell Boy 2

July 11th

Mamma Mia

July 18th

The Dark Knight

July 18th

X-Files Sequel

July 25th

Pineapple Express

August 8th

The Mummy

Tomb of the Dragon Emperor

August 1st

Star Wars The Clone Wars

August 15st

3D Films for 2008

Hanna Montana/ Miley Cyrus Bolt

November 26th

U2/3D Fly Me to the Moon

August 8th

2009

3D

Releases

My Bloody Valentine -

Jan 23rd

Coraline -

Feb 6th

Monsters vs. Aliens -

Mar 27th

Up -

May 29th

Ice Age III -

Jul 1st

G-Force -

Jul 23th

Toy Story -

Oct 2nd

A Christmas Carol -

Nov 6th

Avatar -

Dec 18th

Piranha 3D -

Jul 24

Journey to the Center of the Earth

July 11th

Company

Overview

SCENE Loyalty Program Renaming of 5 Scotiabank Theatres New Theatres - Collingwood and Oakville Cineplex Media - Expands Coast to Coast

• Digital pre-show installations completed

Cineplex.com website re-launched Cinema City Acquisition Expanded Alternative Programming - Met Opera + Digital/Real D 3D installations Financial - Credit Facilities, Cash Distributions Gift Cards and Corporate Sales Pricing Strategies - Big Ticket Tuesday

2007 Accomplishments

Looking Ahead in 2008

Year of transformation and innovation

2007 2008

Reaping the rewards of innovation through growth and leadership

2006 2005

Consolidated and realized $30M in synergies Acquired Famous Players

Six Core Business Areas

Customer

Merchandising Interactive Alternative Programming Loyalty Media Exhibition

Six Core Business Areas

Customer

Merchandising Interactive Alternative Programming Loyalty Media Exhibition

Cineplex Media

Fully integrated media business 93% Canadian market share Coast to Coast coverage Advertising sales:

• In-theatre:
• On-screen - full motion and digital pre-show
• Lobby - monitors and backlits
• Special media - banners, popcorn bags,

sampling, kiosks etc.

• Magazines:
• Famous, Famous Quebec, Famous Kids
• Cineplex.com

Cineplex Media

Digital Pre-Show

29%

Magazine

8%

Lobby/Monitors

3% Full Motion 52%

Commissions

4%

Website and Other

4%

2007 Revenue by Component

Cineplex Media Growth

($millions)

64.3%

Six Core Business Areas

Customer

Merchandising Interactive Alternative Programming Loyalty Media Exhibition

SCENE Loyalty Program

Number of members (000’s)

Q2 ‘07 Q3 ‘07 Q4 ‘07 Q1 ‘08

SCENE Loyalty Program

Continued member acquisition New reward partners New reward platforms Member engagement Leverage database

FUTURE INITIATIVES

Six Core Business Areas

Customer

Merchandising Interactive Alternative Programming Loyalty Media Exhibition

Alternative Programming

The Metropolitan Opera World Wrestling Entertainment Bollywood and Ethnic Movies National Hockey League Concerts and Live Events Championship Sports Future 3D Sports (e.g. NBA)

Our theatres continue to build new audiences Our theatres continue to build new audiences through alternative programming such as: through alternative programming such as:

Six Core Business Areas

Customer

Merchandising Interactive Alternative Programming Loyalty Media Exhibition

Six Core Business Areas

Customer

Merchandising Interactive Alternative Programming Loyalty Media Exhibition

Cineplex.com

2007 2007 Accomplishments Accomplishments

#2 Movie entertainment website in Canada Complete site redesign and re-launch in April

• Enhanced infrastructure
• New design and navigation
• New Content

Enhanced search engine optimization Mobile ticketing launched in October Exclusive content 300% increase in online advertising revenue 250% increase in online ticketing sales 200% increase in online corporate and gift card sales Growth in all key metrics

Cineplex.com

The Future...

SMS and digital pre-show integration Launch of social media platform

• Blogs/Chats
• Social community development
• User generated content

Launch of “My Cineplex” Mobile and online ticketing enhancements Mobile and online marketing initiatives Launch E-Commerce business:

• Phase 1 - Q4 2008 (DVD Sales)
• Phase 2 - Q1 2009 (Electronic Downloading)

Six Core Business Areas

Customer

Merchandising Interactive Alternative Programming Loyalty Media Exhibition

Merchandising CPP Revenue Growth

Six Core Business Areas

Customer

Merchandising Interactive Alternative Programming Loyalty Media Exhibition

Exhibition

61 million people visited our theatres in 2007 Exhibition fuels ALL core businesses Digital and 3D enhances the future of exhibition Entertainment “destinations” Hollywood, Bollywood, digital content...

Digital Projection

• 33 locations and 47 screens
• Rollout planned for Fall 2008 (2 years to

complete)

3D projection

• IMAX 3D (9 locations)
• Real D 3D
• 33 locations installed to date
• 8 additional locations planned for Q2

Digital Projection

Collingwood, ON Galaxy

7 May

Oakville, ON SilverCity 12 December

Acquired Theatres Location Brand Screens Opened

New Theatres Opened in 2007

5 Theatres 51Screens

and

Winnipeg, MB Cinema City McGillivray 12 July Winnipeg, MB Cinema City Northgate 8 July Edmonton, AB Cinema City Movies 12 12 July

Acquired

Location Location Brand Brand Screens Screens Opening Opening

Red Deer, AB Galaxy

10 March

Brantford, ON Galaxy

8

2008 Toronto, ON SilverCity

9

2008 Hamilton, ON SilverCity

10

2008 London, ON Cineplex

11

2009

New Theatres for 2008 and 2009

Fairview Mall Fairview Mall

5 Theatres 48 Screens

and

SilverCity Oakville

SilverCity Oakville - Backlot

SilverCity Oakville - VIP

Financial

Highlights

Annual Total Revenue

613 613 678 678 694 694 775 775 1,275 1,275 1,275 1,275 1,305 1,305 740 740

($ millions)

2005 excludes divestitures and includes FP for partial year

1,327 1,327

Adjusted EBITDA Margins - LTM March 2005

Annual EBITDA

($ millions)

12.2% 16.7% 19.4% 21.1% 15.8% 10.7% 15.9% 20.4% 17.0%

CGX 20.2% FP 9.0% EBITDA Margin

Box Office Box Office $488.9 $488.9 $458.8 $458.8 6.5% 6.5% Concessions Concessions 235.1 235.1 213.5 213.5 10.1% 10.1% Other Other 81.0 81.0 67.9 67.9 19.4% 19.4% Total Revenue Total Revenue $805.0 $805.0 $740.2 $740.2 8.8% 8.8%

Total Revenue 2007

($ millions)

2007 2007 2006 2006 Growth Growth

Attendance 61.1 57.4 6.5% Average Ticket Price $7.99 $7.99 “ - ” Average Concession Purchase $3.84 $3.72 3.2%

Increasing Revenue Per Guest Revenue per Guest

$9.83 $10.27 $10.84 $11.23 $12.28 $12.89 $13.17

Significant Other Revenue Contribution

Other Revenues

($millions)

Tota l

$81m

Box Office Box Office $116.8 $116.8 $112.8 $112.8 3.5% 3.5% Concessions Concessions 56.7 56.7 52.3 52.3 8.4% 8.4% Other Other 16.3 16.3 13.3 13.3 21.8% 21.8% Total Revenue Total Revenue $189.8 $189.8 $178.5 $178.5 6.3% 6.3%

Total Revenue Q1 2008

($ millions)

Attendance 14.6 13.9 5.4% Average Ticket Price $7.98 $8.13 -1.8% Average Concession Purchase $3.87 $3.77 2.7%

6.3%

2008 2008 2007 2007 Growth Growth

Margin Margin 13.8% 13.8% 13.8% 13.8%

Adjusted EBITDA Q1 2008

($ millions)

6.1%

Distributions

2007 2007 $1.72 $1.72 $1.18 $1.18 69% 69% With Distribution With Distribution $1.26 $1.26 73% 73% Increase Increase (May 2008)

(May 2008)

Earned Earned Paid Paid Payout % Payout %

Credit Facility Amendment

Increased commitment amounts Extended 5 Year term Financial covenant improvements Reductions in interest margins Additional flexibility in permitted use of funds

Financial Summary

Leading market position Exhibition - mature industry Stable and predictable cash flows Low capital requirements Significant growth opportunities Strong balance sheet

1.Conservative payout ratio 2.Conservative leverage ratio 3.Positive tax attributes

Questions

Answers

And