Credit Suisse Global Media and Communications Convergence Conference March 8, 2011
Cineplex Entertainment La Large gest st The Mo Most st and Successful Succ essful Motion Picture Theatre Exhibition Company in Canada 131 131 Theatres with 1,362 1,362 Screens *as of December 31, 2010
Box Office Market Share - 2010 Box Office Revenues and Screen Count 2010 Canadian Market Share US Exhibitors Market Share Market Share Cineplex Entertainment Empire Regal 23% 65.8% 65.8% 12.9% 12.9% AMC 21% Other 9.9% 9.9% Cinemark 12% AMC Carmike 4% 6.1% 6.1% Landmark Guzzo 2.3% 2.3% 3.0% 3.0%
The Cineplex Business Model Cineplex US Exhibitors* NCM Exhibition Merchandising Media Alternative Loyalty E-Commerce *US Exhibitors include Regal, Cinemark, AMC and Carmike
Cineplex vs. US Exhibitors – 2010 vs 2009 Cinep ineple lex Rega gal Cinema inemark (1) AMC AMC (2) 4.4% BPP 7.1% 4.3% (2) Box Office revenue 3.4% -1.8% 1.8% (2) growth 3.6% CPP growth 1.8% 3.1% (2) Concession revenue 2.7% -6.6% 0.6% (2) growth Total Revenue 4.8% -3.0% 1.4% (2) growth 5.8% EBITDA growth -11.3% 0.5% (2) -0.9% Attendance growth -8.3% -2.4% (2) (1) North American operations only (2) Prior year pro forma information including pre-acquisition results of Kerasotes acquisition not available
Cineplex vs. US Exhibitors - 2010 Cinep ineple lex Rega gal Cinema inemark (1) AMC AMC Total Revenue per $742 $419 $412 $491 Screen (000’s) BPP $8.67 $8.72 $6.48 $8.78 $4.27 CPP $3.23 $3.03 $3.36 Other Revenue per $1.64 $0.57 $0.27 $0.31 Patron $2.44 EBITDA per patron $2.21 $2.25 $1.58 (1) North American operations only
Exhibition Business Overview
Industry Box Office 2008 2010 2009 Canadian +1.8% +12.8% +3.3% Industry* Cineplex +3.4% +13.7% +4.5% Entertainment * Source: Motion Picture Theatre Associations of Canada
Cineplex vs North American Industry Attendance Growth (source: MPAA) 12% 10% Cineplex Average = 4.2% 8% 6% 4% 2% 0% -2% -4% North American Average=-0.5% -6% -8% 2006 2007 2008 2009 2010 1.4% 6.5% 3.8% 10.2% -0.9% Cineplex 1.3% 0.3% -4.3% 6.0% -5.6% N.A. Industry
Evolving the Entertainment Experience Exhibition Alternative Interactive Programming Loyalty Merchandising Media
Evolving the Entertainment Experience Exhibition Alternative Interactive Programming Loyalty Merchandising Media
Exhibition 69.4 million people visited our theatres in 2010 Exhibition fuels ALL core businesses 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
Digital Projection and 3D As of Dec. 31, 2009 As of Dec 31, 2010 190 415 Digital Screens 149 366 Real D 3D Systems 89 118 Locations 11% 27% Percentage of 3D Screens Canadian digital financing structure - Anticipate Q2 2011 launch - Anticipate taking 18 months to complete rollout
3D Impact 2008 2009 Full Year 2010 % of Total Box Office 3.4% 14.4% 28.3% Revenues from IMAX and 3D 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
Quality of Assets Screens % TOTAL CIRCUIT 1,362 100% Stadium 1,139 84% Non-Stadium 223 16% 8 1% Drive-Ins 142 9% Lease Expiry < 5 years 83 6% Owned & Other Locations
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
Evolving the Entertainment Experience Exhibition Alternative Interactive Programming Loyalty Merchandising Media
Alternative Programming 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
Evolving the Entertainment Experience Exhibition Alternative Interactive Programming Loyalty Merchandising Media
Merchandising CPP Revenue Growth $4.27 $4.12 $3.96 $3.84 $3.72 $3.44 Pro Forma 2010 2009 2007 2008 2006 2005
Merchandising 2011: 2011: Expand speed of service initiatives (Zoning) Rationalization of Branded Food Offerings Expand in-house brand – Outtakes Strategically add XSCAPE Entertainment Centres
Evolving the Entertainment Experience Exhibition Alternative Interactive Programming Loyalty Merchandising Media
Cineplex Media On screen advertising - Full Motion and Digital Pre-show Cineplex and Le magazine Cineplex Cineplex.com advertising Specialty Media - backlits, banners, popcorn bags, in-theatre sampling, kiosks, etc. Cineplex Digital Media - Theatre and External Networks Sponsorship and Naming Rights 93% 93% Other exhibitor representation commissions Market Share
Cineplex Media Revenue Summary ($millions) $82.3 $66.8 $61.0 $56.2 $47.1 $34.2 2008 2010 2005 2006 2007 2009
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
Evolving the Entertainment Experience Exhibition Alternative Interactive Programming Loyalty Merchandising Media
SCENE Loyalty Program Program launched (January 24, 2007) Reached 1 million members (July 22, 2008) Reached 2 million members (October 24, 2009) 2.7 At December 31, 2010 - 2.7 million members 2.1 1.4 0.6 2007 2008 2009 2010 Number of members (millions)
SCENE Loyalty Program Scene Objectives : Scene Future Initiatives: Futur Continued member acquisition Gain a more thorough understanding of guests Add program partners Mine membership data to generate Use database to target members insights Studios – film sequels or series - Communicate directly and regularly Advertisers – targeted database - Drive Increased frequency of visitation Cinep lex targeted offers Drive increased purchase incidence Drive frequency and purchase - incidenceMonetize program Generate additional revenue
Evolving the Entertainment Experience Exhibition Alternative Interactive Programming Loyalty Merchandising Media
Interactive – Cineplex.com Cine Cineple plex x Sto Store: e: Online sales of gift cards, DVDs, Blu-ray, new release and catalogue movies 2011: 2011: Stream HD content for DTO and VoD titles When available, store content in cloud-based UltraViolet ™ account Onli Online ne Tic Ticket eting: ing: Fastest, easiest and most convenient way to purchase tickets -- PRINT SKIP SCAN 2011: 2011: Gift Card Redemption FRC Season Tickets D-Box Tickets Mobile Kiosks in Theatre
Interactive - Mobile Mo Mobile: bile: m.cineplex.com Cineplex Apps - Blackberry, iPhone, iPad, iPod Touch, Android Mobile Payment and Ticketing SMS – contests, games, promotions, segmented alerts 2011: 2011: 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
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 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* $4.12 3.6% *Indicates Annual Record
Attendance (millions) 70.0 69.4 63.5 61.1 57.4 56.6 2005 2006 2009 2007 2008 2010
Box Office Revenue ($millions) $601 $581 $511 $489 $459 $444 2005 2006 2007 2008 2009 2010 Box Office Revenue
Box Office Per Patron ($ millions) $8.67 $8.30 $8.05 $7.99 $7.99 $7.73 2005 2006 2007 2008 2009 2010 Box Office per Patron
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