2005 Annual General Meeting 2005 Annual General Meeting 1 - PowerPoint PPT Presentation

2005 Annual General Meeting 2005 Annual General Meeting 1

Highlights and Achievements Highlights and Achievements Two Cinema Brands, One Company: Two Cinema Brands, One Company: Outstanding Results Outstanding Results Mission Statement Mission Statement Passionately Delivering an Exceptional Passionately Delivering an Exceptional Entertainment Experience Entertainment Experience p 2

Top Tier Theatre Exhibition Brands Top Tier Theatre Exhibition Brands 2003: Locations: 63 Locations: 20 Screens: 589 Screens: 167 3

Top Tier Theatre Exhibition Brands Top Tier Theatre Exhibition Brands 2004: Locations: 64 Locations: 22 Screens: 592 Screens: 183 4

5

Consistent Long-Term Box Office Revenue Growth Consistent Long-Term Box Office Revenue Growth Canadian Box Office Revenues C C Canadian Box Office Revenues di di B B Offi Offi R R 1965 - 2004 1965 - 2004 $ Millions $ Millions $1,000 CAGR since 1965: 6.3% CAGR since 1965: 6.3% $750 $750 $500 $250 $0 1965 1970 1975 1980 1985 1990 1995 2000 Canadian Recessionary Periods Canadian Recessionary Periods 6

Highest Grossing Films in 2004 Highest Grossing Films in 2004 Shrek 2 Shrek 2 Spiderman 2 Spiderman 2 Passion of the Christ Passion of the Christ $436+ million $436+ million $373 million $373 million $370 million $370 million Harry Potter Harry Potter Meet the Fockers Meet the Fockers The Incredibles The Incredibles $250 million $250 million $278 million $278 million $261 million $261 million 7

Big Films for 2005 Big Films for 2005 Star Wars Star Wars Madagascar Madagascar Mr. And Mrs. Smith Mr. And Mrs. Smith Batman Begins Batman Begins Cinderella Man Cinderella Man War of the Worlds War of the Worlds Episode III Episode III May 2005 May 2005 June 2005 June 2005 June 2005 June 2005 June 2005 June 2005 July 2005 July 2005 May 2005 May 2005 The Wedding The Wedding Charlie and the Charlie and the Dukes of Hazzard Dukes of Hazzard Harry Potter and Harry Potter and The Lion, the The Lion, the King Kong King Kong August 2005 August 2005 December 2005 December 2005 Crashers Crashers Chocolate Chocolate the Goblet of Fire the Goblet of Fire Witch and the Witch and the July 2005 July 2005 Factory Factory November 2005 November 2005 Wardrobe Wardrobe July 2005 July 2005 December 2005 December 2005 8

9

Strong Market Share Strong Market Share M M Market Share of Canadian Box Office Revenues Market Share of Canadian Box Office Revenues k k Sh Sh f C f C di di B B Offi Offi R R 2003 2003 2004 2004 Cineplex Galaxy: Cineplex Galaxy: Cineplex Cineplex 30.1% 30.1% Galaxy: 31.3% Galaxy: 31.3% y Other: 7 4% Other: 7 4% Other: 7.4% Other: 7.4% Other: 7.6% Other: 7 6% Other: 7 6% Other: 7.6% Guzzo: 3.3% Guzzo: 3.3% Guzzo: 3.3% Guzzo: 3.3% Landmark: 2.9% Landmark: 2.9% Landmark: 2.9% Landmark: 2.9% Empire: 4.6% Empire: 4.6% Empire: 5.7% Empire: 5.7% AMC: 6.3% AMC: 6.3% AMC: 6.5% AMC: 6.5% Famous Players: 45.4% Famous Players: 45.4% Famous Players: 42.7% Famous Players: 42.7% Source: A.C. Neilsen EDI data Source: A.C. Neilsen EDI data 10 10

Diverse Supply of Films - 2003 Diverse Supply of Films - 2003 Ci Cineplex Galaxy Film Supply by Distributor Cineplex Galaxy Film Supply by Distributor Ci l l G l G l Fil Fil S S l b Di l b Di ib ib Full Year 2003 Full Year 2003 Other: 9% Other: 9% MGM/UA: 3% MGM/UA: 3% DreamWorks: 3% DreamWorks: 3% Alliance Atlantis: 20% Alliance Atlantis: 20% Paramount: 6% Paramount: 6% Paramount: 6% Paramount: 6% Twentieth Century Fox: 9% Twentieth Century Fox: 9% y Sony: 15% Sony: 15% Warner Bros.: 11% Warner Bros.: 11% Warner Bros : 11% Warner Bros : 11% Buena Vista (Disney): 11% Buena Vista (Disney): 11% Buena Vista (Disney): 11% Buena Vista (Disney): 11% Universal: 13% Universal: 13% Universal: 13% Universal: 13% 11 11

Diverse Supply of Films - 2004 Diverse Supply of Films - 2004 Ci Cineplex Galaxy Film Supply by Distributor Cineplex Galaxy Film Supply by Distributor Ci l l G l G l Fil Fil S S l b Di l b Di ib ib Full Year 2004 Full Year 2004 Other: 9% Other: 9% MGM/UA: 2% MGM/UA: 2% Alliance Atlantis: 14% Alliance Atlantis: 14% DreamWorks: 10% DreamWorks: 10% Paramount: 7% Paramount: 7% Sony: 14% Sony: 14% Sony: 14% Sony: 14% Twentieth Century Fox: 9% Twentieth Century Fox: 9% Universal: 10% Universal: 10% Warner Bros.: 15% Warner Bros.: 15% Buena Vista (Disney): 10% Buena Vista (Disney): 10% 12 12

Revenue Retention Revenue Retention Retention Factor Retention Factor 85% - 95% 85% - 95% 6% 6% 27% 27% 80% 80% 67% 67% 48% 48% Box Office Box Office Concession Concession Other Revenue Other Revenue 13 13

Increasing Revenue Per Patron Increasing Revenue Per Patron R R Revenue Per Patron Revenue Per Patron P P P P $11.12 $11.12 $11 12 $11 12 $10.84 $10.84 $10.27 $10.27 $9.83 $9.83 $0.72 $0.72 $0.67 $0.67 $0.53 $0.53 $0.54 $0.54 $3.00 $3.00 $3.00 $3.00 $2 89 $2 89 $2.89 $2.89 $2 77 $2 77 $2.77 $2.77 $2.64 $2.64 $7.40 $7.28 $6.97 $6.65 2001 2002 2003 2004 Box Office Box Office Concession Concession Other Revenue Other Revenue Pro forma normalized values Pro forma normalized values 14 14

Significant Other Revenue Contribution Significant Other Revenue Contribution O h O h Other Revenues ($ Millions) Other Revenues ($ Millions) R R ($ Milli ($ Milli ) ) $22.8 $22.8 $20.9 $20.9 $17 4 $17 4 $17.4 $17.4 $13.4 $13.4 2001 2002 2003 2004 Advertising Advertising Games Games Other Other 15 15

Building Frequency for all Demographics Building Frequency for all Demographics I I Innovative Marketing and Promotions Innovative Marketing and Promotions i i M M k k i i d P d P i i 16 16

New Projects New Projects Projected Projected Project Project Screens Screens Brand Brand Opening Opening Opening Opening Barrhaven Barrhaven 7 7 Fall 2005 Fall 2005 Aurora Aurora 10 10 Fall 2005 Fall 2005 Brossard Brossard 16 16 Spring 2006 Spring 2006 Burloak Burloak 12 12 Fall 2006 Fall 2006 Milton Milton Milton Milton 8 8 8 8 Spring 2006 Spring 2006 Spring 2006 Spring 2006 Brockville Brockville 6 6 Spring 2006 Spring 2006 17 17

Corporate Initiatives - 2004 Corporate Initiatives - 2004 Recap of 2004 Recap of 2004 Integration of two companies I t I t Integration of two companies ti ti f t f t i i New Theatres / Expansions: New Theatres / Expansions: p p – Guelph, Orillia, Pitt Meadows, Lethbridge – Guelph, Orillia, Pitt Meadows, Lethbridge Concession Programs Concession Programs C C i i P P Improved Margins Improved Margins p p g g 18 18

Corporate Initiatives - 2004 Corporate Initiatives - 2004 Recap of 2004 Recap of 2004 Integration of two companies I t I t Integration of two companies ti ti f t f t i i New Theatres / Expansions: New Theatres / Expansions: p p – Guelph, Orillia, Pitt Meadows, Lethbridge – Guelph, Orillia, Pitt Meadows, Lethbridge Concession Programs Concession Programs C C i i P P Improved Margins Improved Margins p p g g 19 19

Analyst Coverage Analyst Coverage Company Company Analyst Analyst Stock Rating Stock Rating BMO Nesbit Burns BMO Nesbit Burns Jeff Tkachuk Jeff Tkachuk Outperform Outperform National Bank Financial National Bank Financial Joel Sutherland Joel Sutherland Outperform Outperform RBC Capital Markets RBC Capital Markets Walter Spracklin Walter Spracklin Outperform Outperform S Scotia Capital Scotia Capital S ti ti C C it l it l Ch i Bl k Ch i Bl k Chris Blake Chris Blake S S Sector Perform Sector Perform t t P P f f TD Newcrest TD Newcrest Adina Bloom Adina Bloom Buy Buy Westwind Partners Westwind Partners Ben Mogil Ben Mogil Buy Buy Wellington West Capital Markets Wellington West Capital Markets Wellington West Capital Markets Wellington West Capital Markets Robert Winslow Robert Winslow Robert Winslow Robert Winslow Buy Buy Buy Buy 20 20

Unit Holder Return Unit Holder Return Unit Price at AGM May 20 2004 Unit Price at AGM May 20 2004 Unit Price at AGM, May 20, 2004 Unit Price at AGM, May 20, 2004 $10 00 $10 00 $10.00 $10.00 Unit Price May 17, 2005 Unit Price May 17, 2005 $13.82 $13.82 Unit Price Appreciation Unit Price Appreciation $3.82 $3.82 Distributions Paid Distributions Paid $1.15 $1.15 Total Return Total Return 50.0% 50.0% 21 21

Corporate Initiatives 2005 Corporate Initiatives 2005 New Theatres: New Theatres: – Barrhaven, Aurora – Barrhaven, Aurora , , Theatre Rebranding Theatre Rebranding – Medicine Hat Barrie and Grande Prairie – Medicine Hat, Barrie and Grande Prairie – Medicine Hat, Barrie and Grande Prairie – Medicine Hat Barrie and Grande Prairie New POS System Implementation (VISTA) New POS System Implementation (VISTA) Repatriate IT from Loews Cineplex to Canada R Repatriate IT from Loews Cineplex to Canada R i i IT f IT f L L Ci Ci l l C C d d Loyalty Program Loyalty Program Digital Advertising Pre-Show Network Digital Advertising Pre-Show Network 22 22