Cineplex Galaxy Income Fund Fourth Quarter & Full Year
Cineplex Entertainment Circuit The Largest and Most Successful Motion Picture Theatre Exhibition Company in Canada 130 Theatres with 1,331 Screens As of December 31, 2008
Box Office Market Share Market Share of Canadian Box Office Revenues 2008 Empire 13.3% Cineplex Entertainment 66.8% Other 7.7% AMC 6.3% Landmark 2.7% Guzzo 3.2%
Exhibition Business Overview
2007 and 2008 Industry Box Office 2007 2008 Canadian Industry* +1.3% +3.3% Cineplex Entertainment +6.5% +4.5% * Source: Motion Picture Theatre Associations of Canada
Films for Q1 2009 Bride Wars January 9th Gran Torino January 9th Paul Blart: Mall Cop January 16th Taken January 30th He s Just Not That Into You February 6th Confessions of a Shopaholic February 13th The International February 13th Watchmen March 6th
Films for Spring/Summer 2009 Hannah Montana The Movie April 10th X-Men Origins: Wolverine May 1st Star Trek May 8th Angels & Demons May 15th Terminator Salvation: The Future Begins May 22nd Night at the Museum: Battle of the Smithsonian May 22nd Transformers: Revenge of the Fallen June 26th Harry Potter and the Half Blood Prince July 17th
3D Films for 2009 My Bloody Valentine January 16th Coraline February 6th Jonas Brothers: The 3D Concert Experience February 27th Monsters vs. Aliens March 27th Up May 29th Ice Age III - G-Force - Final Destination 4 - Cloudy with a Chance of Meatballs- Jul 1 st Jul 24 th Aug 21 st Sep 18 th OTHER 3D Releases Toy Story - A Christmas Carol - Avatar - Oct 2 nd Nov 6 th Dec 18 th
Company Overview
Looking Ahead 2005 Acquired Famous Players 2006 Consolidated and realized $30M in synergies 2007 Year of transformation and innovation 2008-2009 Reaping the rewards of innovation through growth and leadership
Six Core Business Areas Exhibition Merchandising Media Customer Interactive Loyalty Alternative Programming
Cineplex Media Fully integrated media business 94% Canadian market share Coast to Coast coverage Advertising sales: - In-theatre: - On-screen - full motion and digital pre-show - Lobby - monitors and backlits - Special media - banners, popcorn bags, sampling, kiosks etc. - Magazines: - Famous, Famous Quebec, Famous Kids - Cineplex.com
Cineplex Media 2008 Revenue by Component Digital Pre-Show 31% Full Motion 48% Magazine 7% Lobby/Monitors 3% Commissions 3% Website and Other 8%
Cineplex Media Growth ($millions) +78% $47.1 $56.2 $61.0 $34.2 ProForma 2005 2006 2007 2008
Six Core Business Areas Exhibition Merchandising Media Customer Interactive Loyalty Alternative Programming
SCENE Loyalty Program Number of members (000 s) 1.163 1.375 942 On July 22, 2008 SCENE reached the one million member mark. 618 760 400 230 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08
SCENE Loyalty Program FUTURE INITIATIVES Continued member acquisition New reward partners New reward platforms Member engagement Leverage database
Six Core Business Areas Exhibition Merchandising Media Customer Interactive Loyalty Alternative Programming
Alternative Programming Our theatres continue to build new audiences 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)
Six Core Business Areas Exhibition Merchandising Media Customer Interactive Loyalty Alternative Programming
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 Launched E-Commerce business: - Phase 1 - Q4 2008 (DVD Sales) - Future Phases (Electronic Downloading)
Six Core Business Areas Exhibition Merchandising Media Customer Interactive Loyalty Alternative Programming
Merchandising CPP Revenue Growth $3.84 $3.72 $3.44 $3.04 $2.89 $2.77 $2.64 $3.96 2001 2002 2003 2004 ProForma 2005 2006 2007 2008
Six Core Business Areas Exhibition Merchandising Media Customer Interactive Loyalty Alternative Programming
Exhibition 63.5 million people visited our theatres in 2008 Exhibition fuels ALL core businesses Digital and 3D enhances the future of exhibition Entertainment destinations Hollywood, Bollywood, digital content...
Digital Projection Digital Projection - 46 locations and 84 screens - Industry rollout on hold due to current credit conditions 3D projection - IMAX 3D (9 locations) - Real D 3D - 46 locations and 49 units - Commitment for 175 locations
New Theatres Opened in 2008 Location Brand Screens Opened Red Deer, AB Galaxy 10 March Brantford, ON Galaxy 8 November Toronto, ON SilverCity 9 (Fairview Mall) Hamilton, ON SilverCity 10 December December 4 Theatres and 37 Screens
New Theatres for 2009+ Location Brand Screens Opening London, ON Cineplex Odeon 11 2009 Edmonton, AB SilverCity (TBC) 12 2010 (Windermere) 2 Theatres and 23 Screens
Financial Highlights
Annual Total Revenue ($ millions) $704.6 $740.2 $805.0 $849.7 $490.3 $197.5 $250.2 $316.4 $330.0 $353.7 2000 2001 2002 2003 2004 2005 ProForma 2005 2006 2007 2008 2005 excludes divestitures and includes FP for partial year
Annual EBITDA ($ millions) $137.2 $144.9 16.7% 12.2% $117.6 19.4% 20.4% 21.1% 15.8% 15.9% $77.6 $74.5 $75.4 $68.5 $63.0 10.7% 17.0% 17.1% $41.7 $24.1 2000 2001 2002 2003 2004 2005 Pro Forma 2005 EBITDA Margin 2006 2007 2008 Adjusted EBITDA Margins - LTM March 2005 CGX 20.2% FP 9.0%
Total Revenue 2008 ($ millions) $805.0 $704.6 $740.2 $849.7 ProForma 2005 2006 2007 2008 2008 2007 Growth Box Office $510.9 $488.9 4.5% Concessions 251.6 235.1 7.0% Other 87.1 81.0 7.5% Total Revenue $849.7 $805.0 5.5% Attendance 63.5 61.1 3.8% Average Ticket Price $8.05 $7.99 0.8% Average Concession Purchase $3.96 $3.84 3.1%
Increasing Revenue Per Guest Revenue per Guest $10.27 $10.84 $11.23 $0.74 $9.83 $0.54 $0.53 $0.67 $2.89 $2.77 $2.64 $3.04 $12.28 $1.11 $12.89 $13.17 $13.38 $1.18 $1.33 $1.37 $3.44 $3.72 $3.84 $3.96 $6.65 $6.97 $7.28 $7.45 $7.73 $7.99 $7.99 $8.05 2001 2002 2003 2004 2005 2006 2007 2008 Other Concessions
Significant Other Revenue Contribution Total Other Revenues ($millions) $87m
Distributions Earned Paid Payout % 2008 $1.85 $1.24 67% 2007 $1.72 $1.18 69% Payout Ratio
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 Covenant Leverage Ratio
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
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