Credit Suisse Global Media and Communications Convergence Conference March 8, 2011
Cineplex Entertainment The Largest and Most Successful Motion Picture Theatre Exhibition Company in Canada 131 Theatres with 1,362 Screens *as of December 31, 2010
Box Office Market Share - 2010 Box Office Revenues and Screen Count 2010 Cineplex Entertainment 65.8% Canadian Market Share Guzzo 3.0% Empire 12.9% Other 9.9% AMC 6.1% Landmark 2.3% US Exhibitors Market Share Market Share Regal 23% AMC 21% Cinemark 12% Carmike 4%
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 Cineplex Regal Cinemark (1) 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 Total Revenue growth 2.7% -6.6% 0.6% (2) 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) (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 Cineplex Regal Cinemark (1) 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 (1) North American operations only
Exhibition Business Overview
Industry Box Office 2010 2009 2008 Canadian Industry* +1.8% +12.8% +3.3% Cineplex Entertainment +3.4% +13.7% +4.5% * Source: Motion Picture Theatre Associations of Canada
Cineplex vs North American Industry Attendance Growth (source: MPAA) 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% Cineplex Average = 4.2% North American Average=-0.5% 2006 2007 2008 2009 2010 Cineplex 1.4% 6.5% 3.8% 10.2% -0.9% N.A. Industry 1.3% 0.3% -4.3% 6.0% -5.6%
Evolving the Entertainment Experience Exhibition Interactive Alternative Programming Loyalty Merchandising Media
Evolving the Entertainment Experience Exhibition Interactive Alternative Programming Loyalty Merchandising Media
Exhibition 69.4 million people visited our theatres in 2010 Exhibition fuels ALL core businesses 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 Digital Screens 190 415 Real D 3D Systems 149 366 Locations 89 118 Percentage of 3D Screens 11% 27% 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 Revenues from IMAX and 3D 3.4% 14.4% 28.3% 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% 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
Evolving the Entertainment Experience Exhibition Interactive Alternative 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 Interactive Alternative Programming Loyalty Merchandising Media
Merchandising CPP Revenue Growth $3.72 $3.84 $3.96 $4.12 $4.27 $3.44 Pro Forma 2005 2006 2007 2008 2009 2010
Merchandising 2011: Expand speed of service initiatives (Zoning) Rationalization of Branded Food Offerings Expand in-house brand Outtakes Strategically add XSCAPE Entertainment Centres
Evolving the Entertainment Experience Exhibition Interactive Alternative Programming Loyalty Merchandising Media
Cineplex Media On screen advertising - Full Motion and Digital Pre-show Cineplex and Le magazine Cineplex Cineplex.com advertising Specialty Media - backlits, banners, popcorn bags, in-theatre sampling, kiosks, etc. Cineplex Digital Media - Theatre and External Networks Sponsorship and Naming Rights Other exhibitor representation commissions 93% Market Share
Cineplex Media Revenue Summary ($millions) $82.3 $56.2 $61.0 $66.8 $47.1 $34.2 2005 2006 2007 2008 2009 2010
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 Interactive Alternative 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) At December 31, 2010-2.7 million members 2.1 2.7 1.4 0.6 2007 2008 2009 2010 Number of members (millions)
SCENE Loyalty Program Scene Objectives: Gain a more thorough understanding of guests Mine membership data to generate insights Communicate directly and regularly Drive Increased frequency of visitation Drive increased purchase incidence Generate additional revenue Future Initiatives: 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
Evolving the Entertainment Experience Exhibition Interactive Alternative Programming Loyalty Merchandising Media
Interactive Cineplex.com Cineplex Store: Online sales of gift cards, DVDs, Blu-ray, new release and catalogue movies 2011: Stream HD content for DTO and VoD titles When available, store content in cloud-based UltraViolet account Online Ticketing: Fastest, easiest and most convenient way to purchase tickets -- PRINT SKIP SCAN 2011: Gift Card Redemption FRC Season Tickets D-Box Tickets Mobile Kiosks in Theatre
Interactive - Mobile Mobile: m.cineplex.com Cineplex Apps - Blackberry, iphone, ipad, ipod Touch, Android Mobile Payment and Ticketing SMS contests, games, promotions, segmented alerts 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 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* $4.12 3.6% *Indicates Annual Record
Attendance (millions) 70.0 69.4 56.6 57.4 61.1 63.5 2005 2006 2007 2008 2009 2010
Box Office Revenue ($millions) $581 $601 $444 $459 $489 $511 2005 2006 2007 2008 2009 2010 Box Office Revenue
Box Office Per Patron ($ millions) $7.73 $7.99 $7.99 $8.05 $8.30 $8.67 2005 2006 2007 2008 2009 2010 Box Office per Patron
Concession Revenue ($millions) $288 $296 $252 $213 $235 $198 2005 2006 2007 2008 2009 2010 Concession Revenue
Concession Revenue Per Patron ($millions) $3.72 $3.84 $3.96 $4.12 $4.27 $3.84 2005 2006 2007 2008 2009 2010 CPP
Other Revenue ($millions) Cineplex Media Other $114 $81 $87 $95 $68 $44 $34 $47 $56 $61 $67 $82 2005 2006 2007 2008 2009 2010
Adjusted EBITDA* ($millions) $164 $173 $137 $145 $118 $67 * Results for Cineplex Entertainment Limited Partnership 2005 2006 2007 2008 2009 2010 Adjusted EBITDA
Credit Facilities ($millions) Maturity Capacity Drawn Term Facility July 2012 $235.0 $235.0 Revolving Facility July 2012 130.0 0 Total $365.0 $235.0 2.89 2.39 1.94 1.88 1.64 1.58 1.57 2005 2006 2007 2008 2009 2010 Covenant Leverage Ratio
2020-505 Burrard St Distributions Distributions 2010 112% 80% Payout Ratio 69% 67% 59% 57% 2005 2006 2007 2008 2009 2010
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 Performance and Returns 140 Peer Group Stock Performance 120 100 80 60 40 20 0 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
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
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