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08 Cineplex Galaxy Income Fund Third Quarter Cineplex - PowerPoint PPT Presentation

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08 Cineplex Galaxy Income Fund Third Quarter Cineplex Entertainment Circuit The Largest and Most Successful Motion Picture Theatre Exhibition Company in Canada 129 Theatres 1,317 Screens with As of September 30, 2008 Box Office Market Share

  1. 08 Cineplex Galaxy Income Fund Third Quarter

  2. Cineplex Entertainment Circuit The Largest and Most Successful Motion Picture Theatre Exhibition Company in Canada 129 Theatres 1,317 Screens with As of September 30, 2008

  3. Box Office Market Share Market Share of Canadian Box Office Revenues 2007 Empire Empire 12.8% 12.8% Cineplex Other Other Entertainment 8.0% 8.0% 66.9% 66.9% AMC AMC 5.8% 5.8% Landmark Landmark 3.3% 3.3% Guzzo Guzzo 3.2% 3.2%

  4. Exhibition Overview Business

  5. 2007 and 2008 Industry Box Office 2007 Q3 08 Q3 08 Q3 08 YTD 2007 Q3 08 YTD Canadian Industry* +1.3% -4.5% +0.9% Cineplex Entertainment +6.5% -3.6% +1.3% * Source: Motion Picture Theatre Associations of Canada

  6. Films for Q4 2008 Madagascar: High School Quantum of Twilight Escape 2 Africa Musical 3 Solace November 21st November 7th October 24th November 14th Bolt (3D) Australia Marley & Me The Spirit November 21st November 28th December 25th December 25th

  7. 3D Films for 2008 Journey to the Fly Me to Hanna Montana/ U2/3D Bolt Center of the Earth the Moon Miley Cyrus July 11 th August 8 th November 21st Piranha 3D - Jul 24 th My Bloody Valentine - Jan 16 th Jul 24 th G-Force - Coraline - Feb 6 th 2009 Aug 21 st Final Destination 4 - Jonas Brothers Concert - Feb 27 th Cloudy with a Chance Sep 18 th 3D of Meatballs- Monsters vs. Aliens - Mar 27 th Toy Story - Oct 2 nd Releases Up - May 29 th A Christmas Carol - Nov 6 th Ice Age III - Jul 1 st Avatar - Dec 18 th

  8. Company Overview

  9. Looking Ahead 2005 Acquired Famous Players 2006 Consolidated and realized $30M in synergies 2007 Year of transformation and innovation Reaping the rewards of innovation through 2008-2009 growth and leadership

  10. Six Core Business Areas Exhibition Merchandising Media Customer Loyalty Interactive Alternative Programming

  11. 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

  12. Cineplex Media 2007 Revenue by Component Digital Pre-Show 29% Full Motion 52% Magazine 8% Lobby/Monitors 3% Commissions 4% Website and Other 4%

  13. Cineplex Media Growth ($millions) 64.3%

  14. Six Core Business Areas Exhibition Merchandising Media Customer Loyalty Interactive Alternative Programming

  15. SCENE Loyalty Program Number of members (000’s) On July 22, 2008 SCENE reached the one million member mark. Q2 ‘07 Q3 ‘07 Q4 ‘07 Q1 ‘08 Q2 ‘08 Q3 ‘08

  16. SCENE Loyalty Program FUTURE Continued member acquisition INITIATIVES New reward partners New reward platforms Member engagement Leverage database

  17. Six Core Business Areas Exhibition Merchandising Media Customer Loyalty Interactive Alternative Programming

  18. Alternative Programming Our theatres continue to build new audiences Our theatres continue to build new audiences through alternative programming such as: through alternative programming such as: The Metropolitan Opera World Wrestling Entertainment Bollywood and Ethnic Movies Concerts and Live Events Championship Sports Future 3D Sports (e.g. NBA)

  19. Six Core Business Areas Exhibition Merchandising Media Customer Loyalty Interactive Alternative Programming

  20. Cineplex.com 2007 Accomplishments Accomplishments 2007 #2 Movie entertainment website in Canada Complete site redesign and re-launch - 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

  21. Cineplex.com 2008 and the Future... SMS and digital pre-show integration Launched social media platform (August) - Blogs/Chats - Social community development - User generated content Launched “My Cineplex” (August) 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)

  22. Six Core Business Areas Exhibition Merchandising Media Customer Loyalty Interactive Alternative Programming

  23. Merchandising CPP Revenue Growth

  24. Six Core Business Areas Exhibition Merchandising Media Customer Loyalty Interactive Alternative Programming

  25. 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...

  26. Digital Projection Digital Projection - 44 locations and 65 screens - Rollout planned for Q1 2009 (2 years to complete) 3D projection - IMAX 3D (9 locations) - Real D 3D - 45 locations installed to date - 175 locations by December 31, 2009

  27. New Theatres Opened in 2007 Location Brand Screens Opened 7 Collingwood, ON Galaxy May 12 Oakville, ON SilverCity December Acquired Acquired Theatres 12 Winnipeg, MB Cinema City McGillivray July 8 Winnipeg, MB Cinema City Northgate July 12 Edmonton, AB Cinema City Movies 12 July 5 Theatres and 51 Screens

  28. New Theatres for 2008 and 2009 Location Brand Screens Opening Location Brand Screens Opening 10 Red Deer, AB Galaxy March 8 Brantford, ON Galaxy November 9 Toronto, ON SilverCity 2008 Fairview Mall Fairview Mall 10 Hamilton, ON SilverCity 2008 11 London, ON Cineplex Odeon 2009 5 Theatres and 48 Screens

  29. Financial Highlights

  30. Annual Total Revenue ($ millions) 1,327 1,327 1,305 1,305 1,275 1,275 1,275 1,275 $805.0 $740.2 775 $704.6 775 740 740 694 694 678 678 613 613 $490.3 $353.7 $330.0 $316.4 $250.2 $197.5 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 P r o F o r m a 2 0 0 6 2 0 0 7 2 0 0 5 2005 excludes divestitures and includes FP for partial year 2005 excludes divestitures and includes FP for partial year

  31. Annual EBITDA ($ millions) 21.1% $137.2 20.4% 19.4% $117.6 16.7% 17.0% 15.9% 15.8% 12.2% $77.6 $74.5 $75.4 $68.5 $63.0 10.7% $41.7 $24.1 2000 2001 2002 2003 2004 2005 Pro 2006 2007 Forma EBITDA Margin 2005 Adjusted EBITDA Margins - LTM March 2005 Adjusted EBITDA Margins - LTM March 2005 CGX 20.2% FP 9.0%

  32. Total Revenue 2007 ($ millions) 2007 2006 Growth 2007 2006 Growth Box Office Box Office $488.9 $488.9 $458.8 $458.8 6.5% 6.5% Concessions 235.1 213.5 10.1% 10.1% Concessions 235.1 213.5 Other 81.0 6 6 7.91 7.91 9.4% 9.4% Other 81.0 Total Revenue $805.0 $740.2 $740.2 8.8% 8.8% Total Revenue $805.0 Attendance 61.1 57.4 6.5% Average Ticket Price $7.99 $7.99 - Average Concession Purchase $3.84 $3.72 3.2%

  33. Increasing Revenue Per Guest Revenue per Guest $13.17 $12.89 $12.28 $11.23 $10.84 $10.27 $9.83

  34. Significant Other Revenue Contribution Other Revenues ($millions) Total $81m

  35. Total Revenue Q3 YTD 2008 $ millions 2.6% 2008 2007 Growth Box Of fi ce 388.1 383.3 +1.3% Concessions 190.3 184.5 +3.1% Other 59.9 54.5 +9.8% Total Revenue 638.3 622.4 +2.6% Attendance 48.3 48.1 +0.4% Average Ticket Price $8.04 $7.97 +0.9% Average Concession Purchase $3.94 $3.84 +2.6%

  36. Adjusted EBITDA Q3 YTD 2008 ($ millions) $ 111.3 $ 108.8 Margin 17.9% 17.1% Margin 17.9% 17.1%

  37. Distributions Earned Paid Payout % Earned Paid Payout % 2007 $1.72 $1.18 69% 2007 $1.72 $1.18 69% With Distribution $1.26 73% With Distribution $1.26 73% Increase (May 2008) Increase (May 2008)

  38. Credit Facility Amendment – July 2007 Increased commitment amounts Extended 5 Year term - 2012 Financial covenant improvements Reductions in interest margins Additional flexibility in permitted use of funds

  39. 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

  40. Questions Answers And

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