Cinemark September 2008
Forward Looking Statements The following information contains, or may be deemed to contain, forwardlooking statements. By their nature, forward-looking statements involve risks, assumptions and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of the Company may vary from the results and performance expressed in, or implied by, the following forward-looking statements, possibly to a material degree. For discussion of some of the important factors that could cause the Company s results and performance to differ from those expressed in, or implied by, the following forward-looking statements, please refer to the preliminary prospectus delivered to you, in particular the Risk Factors section thereof. The Company undertakes no obligation to update or revise any forward-looking statements. 2
Cinemark Holdings 3 rd largest U.S. exhibitor 289 theatres / 3,688 screens / 38 states Most geographically diverse in Pan-Latin America 123 theatres / 1,018 screens / 12 countries 82% of screens featuring stadium seating (1) Highest Adj. EBITDA margins & growth among leading exhibitors TTM 6/08 Revenue of $1.7 billion & Adj. EBITDA $384 million (1) Based on first-run Domestic screens 3
Stable, Long Term Growth Trend Consistent pricing power and attractive value proposition Industry growth in 4 of last 6 recessions Demonstrated resilience to recessions due to content quality and affordability U.S. box office ($bn) $10 $8 $6 $4 $2 $0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Commercial Penetration of Selected Alternative Forms of Media Cable VCR * Red bar indicates a recession year Internet DVD 4
More Rationalized and Disciplined Industry 2002 Box Office Share (1) 2007 Box Office Share (2) Other 64% 6% 11% 15% 15% Other 46% 20% 23% Top 3 Exhibitors: 36% Top 3 Exhibitors: 54% 10% Stable Screen Growth 8% 5% 3% 0% Average: 1.6% 3.0% 1.9% 1.8% 1.8% 1.0% 0.4% 2002 2003 2004 2005 2006 2007 (1) Source: Company filings, NATO, Wall Street research. (2) Source: Rentrak, 1/1/07-12/31/07. 5
Digital Technology Promotes Innovation DCIP Digital 3-D Digital Innovations Cinema Advertising Growth Higher Higher Ticket Pricing Attendance 3D - Hannah Montana Quality digital product Released in January 2008 Flexible content management drives increased revenue and customer satisfaction Alternative Entertainment Average ticket price of $15 Opened nationwide at $31.1M on 683 screens Average of over $45,000 per screen 6
3D Release Calendar (2009-2010) Release Date Title Director Cast January 2009 My Bloody Valentine 3-D Patrick Lussier Jaime King, Jensen Ackles February 2009 Coraline Henry Selick Dakota Fanning, Ian McShane, Teri Hatcher February 2009 Jonas Brothers 3-D Concert Bruce Hendricks Jonas Brothers March 2009 Monsters vs. Aliens Conrad Vernon, Rob Letterman Seth Rogen, Reese Witherspoon, Kiefer Sutherland May 2009 UP Peter Docter Christopher Plummer, Edward Asner July 2009 Ice Age: Dawn of the Dinosaurs Carlos Saldanha Ray Romano, Dennis Leary, John Leguizamo July 2009 Piranha 3D Alexandre Aja N/A July 2009 G-Force Hoyt Yeatman Nicolas Cage, Penelope Cruz, Steve Buscemi August 2009 Final Destination 4 3D David R. Ellis Krista Allen, Nick Zano October 2009 Toy Story John Lasseter Tim Allen, Tom Hanks November 2009 A Christmas Carol Robert Zemeckis Jim Carrey December 2009 Avatar James Cameron Sam Worthington, Zoe Saldana February 2010 Toy Story 2 Ash Brannon, John Lasseter Tim Allen, Tom Hanks March 2010 Alice in Wonderland Tim Burton N/A March 2010 How to Train Your Dragon Peter Hastings Gerard Butler, Jonah Hill, America Ferrera May 2010 Shrek Goes Fourth Mike Mitchell Cameron Diaz, Eddie Murphy, Mike Myers June 2010 Toy Story 3 Lee Unkrich Tim Allen, Tom Hanks November 2010 Master Mind Gary Trousdale N/A 7
Blockbuster Film Slate Upcoming Films October 2008 November 2008 December 2008 Zac Efron Disney 3D James Bond: David Schwimmer Brad Pitt Jim Carrey Seven Pounds Quantum of Solace Ben Stiller Will Smith Daniel Craig Chris Rock Keanu Reeves 8
Best in Class Management Team Average of ~29 years of theatre operating experience among senior management Name / Position Lee Roy Mitchell Chairman Years in the Industry Years with Company Experience 50+ 21 CEO from 1996 until 2007 and Director since inception in 1987; Chairman since 1996 Alan Stock CEO Tim Warner President and COO 28 21 President and COO from 1993 until 2007 41 12 President of Cinemark International, LLC from 1996 until 2007 Director of National Association of Theatres Owners Valmir Fernandez 12 12 President of Cinemark Brasil, S.A. from 1996 until 2007 President of Cinemark International Robert Copple Executive VP and CFO Average 29 16 15 15 President of PBA Development, Inc., an investment management and venture capital company Senior Manager at Deloitte & Touche, LLP 9
Diverse Footprint of High Growth Markets 289 theatres / 3,688 screens in attractive markets ~72% of our screens are in states where population growth exceeds the national average British Columbia Rate Above U.S. Population o (1) >30 % 0-30% <0 % (1) Source: U.S. Census; represents rate of 2005-2010 population growth above national average based on 2000 Census. 10
Leading Share in Our Markets Ranked #1 or #2 in 22 of our top 25 markets Top 25 Cinemark Markets Market Market Market Market DMA Share Rank DMA Share Rank San Francisco, CA 52% #1 El Paso, TX 74% #1 Dallas, TX 31% #2 Denver, CO 15% #4 Los Angeles, CA 8% #4 Albuquerque, NM 53% #1 Houston, TX 30% #2 Reno, NV 75% #1 Salt Lake City, UT 47% #1 Portland, OR 15% #2 Sacramento, CA 32% #2 Monterey, CA 45% #1 Chicago, IL 10% #3 Lubbock, TX 98% #1 Las Vegas, NV 30% #2 Des Moines, IA 52% #1 Cleveland, OH 31% #2 Chico, CA 77% #1 Harlingen, TX 82% #1 Tulsa, OK 36% #1 Tucson, AZ 72% #1 Shreveport, LA 46% #1 Colorado Springs, CO 80% #1 Anchorage, AK 46% #1 Austin, TX 34% #1 CNK Market Rank Box Office 77% of our box office revenue is generated in markets where we rank #1 or #2 23% Other #1 #2 28% Source: Rentrak. Based on LTM Box Office revenue as of 12/31/07. 49% 2007 Domestic Box Office: $879mm 11
Growth Opportunities in Latin America Leading Latin American position Broad presence strategically important to film distribution and to potential Pan-Regional promotional partners 123 theatres and 1,018 screens in 12 countries Diversified ifi Geographic Presence Consistent t Revenue Growth Mexico São Paulo ($ in millions) $375 $350 $334 Honduras $325 Mexico City Nicaragua El Salvador Costa Rica Panama Ecuador Colombia $300 $275 $250 $225 $209 $242 $264 $286 $200 Peru $175 Brazil $150 $125 (As of 6/30/08) Stadium Theatres Screens Brazil 85% 41 344 Mexico 65% 31 300 Chile 86% 12 91 Central America 100% 12 81 Argentina 100% 9 77 Colombia 100% 9 56 Peru 77% 5 43 Ecuador 73% 4 26 Total 123 1,018 Chile Argentina Population Density 0 1 million 1 million + 10 million + 100 million + $100 $75 $50 $25 $0 2003 2004 2005 2006 2007 12
Latin American Growth Cinemark started t with a 6-plex theatre t in Santiago, Chile in 1993, and during the past 15 years developed 123 sites, with 1,018 screens, located in 12 countries and 62 cities. Cinemark has dealt successfully with major structural changes in some countries. Growth plans have been fully funded within the region based on excess cash flow. Cinemark has a strong team of local top executives averaging over 10 years with the company. Local product represents ~9% of tickets sold in Brazil and Mexico. 13
Latin American Relevance Brazil and Mexico are similar to the U.S. in terms of size and have the potential for future growth. Brazil Mexico = + Population: 301 MM ~ 299 MM Size sq miles: 23.7 MM < 26.9 MM Screens: 38,794 >> 6,423 or 6x Tickets: 1,400 MM >> 263 MM or 5x Source: CIA World Factbook (7/19/07), MPAA, Filme B, Canacine 14
Latin American Presence If you decided to visit the top 10 cities in Latin America, you could go to a Cinemark theatre in 9 of them. Cinemark is also located in well known cities throughout the region such as Cancun, Puerto Vallarta, Rio de Janeiro, Salvador, Acapulco, Costa Rica, Amazon Region, Vina del Mar, Floripa, etc 15
Most Modern, High Quality Theatre Circuit Disciplined operating philosophy that centers on building the best quality assets in the industry Highest % Stadium Seating (1) 85% 80% 75% 81% 76% 74% 70% 65% 60% (1) As of 12/07. Percent in megaplex theatres for Regal. Cinemark based on first-run screens. 16
Self-Serve Concessions 17
Product Selection Criteria 18
Track Record of Consistent Growth Rev ($mm) Adj. EBITDA ($mm) $1,800 $500 $1,683 $1,612 $1,600 $1,400 $1,200 $1,221 $360 $377 $400 $1,000 $800 $600 $400 $435 $87 $571 $108 $713 $128 $786 $142 $854 $170 $1,024 $1,021 $936 $951 $229 $206 $210 $210 $272 $300 $200 $100 $200 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 PF2006 2007 $0 Revenue Adj. EBITDA Note: 1996 2006 not pro forma for acquisition of Century Theatres. 19
Outperformance on Revenue Metrics Total Revenue / Patron CAGR Admission Revenue / Patron CAGR 10% 9.6% 15% 8% 6% 4% 2% 6.2% 4.0% 4.0% 10% 5% 10.3% 6.1% 4.1% 3.9% 0% As Reported CNK Only 0% As Reported CNK Only Concession Revenue / Patron CAGR 10% 8.8% 8% 6% 6.5% 5.8% 56% 5.6% 4% 2% 0% As Reported CNK Only Source: All financials as reported per Company filings. Cinemark and Regal represents fiscal year 2003 2007 CAGR. AMC represents fiscal year 2003 and LTM 12/07. 20
Focus On Profitability Consistently achieved highest Adj. EBITDA margins amongst our peer group Highest Adj. EBITDA Margin (1) 2003 2006 Adj. EBITDA CAGR (2) 24% 10% 9.0% 22.4% 22% 8% 20% 18% 20.0% 18.1% 5% 3% 38% 3.8% 16% 0% (0.5%) (0.6%) 14% As Reported CNK Only -3% (1) Source: Cinemark and Regal represents fiscal year 2007. AMC represents LTM 12/07 and excludes G&A. (2) Source: Fiscal year financials as reported. 21
International Operations have Enhanced Growth International Operations 11.2% 2003 2007 Adj. EBITDA CAGR 15.0% International Growth 2003 2007 Box Office CAGR 17.8% of 2007 Worldwide Adj. EBITDA 11.2% 10.0% 0% 2007 International Revenue Mix 5.0% 1.2% 31% 0.0% Other Brazil 47% CNK International US Industry (1) Mexico 22% (1) MPAA 22
Consistent Free Cash Flow Generation FCF Drivers Free Cash Flow (1) Consistent revenue growth Favorable theatre level economics Effective cost management ($ in millions) $150 $125 $105 $128 $136 Modern theatre circuit requiring limited $100 $83 maintenance capex $75 Opportunity for expansion in FCF conversion $50 $25 $0 2004 2005 2006 2007 (1) FCF defined as Adj. EBITDA less capex, cash taxes, net cash interest expense, and change in working capital. 2007 interest expense based on projected annual interest expense on 12/31/07 outstanding debt using weighted average interest rates 23
Capitalization Quarterly dividend of $0.18/ share ($0.72 annually) Approximate 5% yield ($ in millions) Dec. 31, 2007 June 30, 2008 Cash and Cash Equivalents $338.0 $396.3 Long-term Debt, including current maturities: Senior Secured Credit Facility 1,101.7 1,100.4 9 3/4% Senior Discount Notes due 2014 415.8 426.7 9% Senior Subordinated Notes due 2013 0.2 0.2 Capital lease obligations 121.2 126.8 Other Indebtedness 6.1 3.4 Total Debt $1,644.9 $1,657.5 Net Debt $1,306.9 $1,261.2 Net Debt / Adj. EBITDA 3.5 x 3.3 x 24
Valuable Strategic Assets Equity Stake in NCM Significant Real Estate Value ($ in millions) # of Cinemark Fee-owned properties 43 Aggregate Sale Value (1) $350 14.1% 25.1% 18.5% 42.3% Public Shareholders Adjusted Net Asset Value Range ~$100 - $150 NCM Shares owned by Cinemark (in millions) 13.99 (1) Aggregate sale value based on Ernst &Young study. 25
Recent Results TTM Year Ended IPO June 30, December 31, Proforma 2008 2007 2006 REVENUES U.S. 1,365,671 1,352,042 1,328,194 International 360,582 333,624 285,854 Eliminations (3,220) (2,825) (1,944) Total Revenues 1,723,033 1,682,841 1,612,104 ADJUSTED EBITDA U.S. 310,617 309,800 International 73,181 67,138 Total Adjusted EBITDA 383,798 376,938 (1) Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, gain on NCM transaction, gain on Fandango transaction, other income/expense excluding distributions from NCM, termination of profit participation agreement, depreciation and amortization, amortization of favorable leases, impairment of long-lived assets, (gain) loss on sale of assets and other, deferred lease expense, amortization of long-term prepaid rents and stock option compensation expense. 26
Cinemark September 2008