Deutsche Bank Media and Telecom Conference March 9, 2011irfiles.cineplex.com/.../2011-Deutsche-Bank-Conference-Presentation.… · Digital Projection and 3D Canadian digital financing

Deutsche Bank

Media and Telecom Conference

March 9, 2011

Cineplex Entertainment

Largest

Company in

Most

Successful

and

Motion Picture

Theatre Exhibition

Canada

131

Theatres

with

1,362

Screens

The

*as of December 31, 2010

Box Office Market Share - 2010

Empire 12.9%

Other 9.9%

AMC 6.1%

Landmark 2.3%

Guzzo 3.0%

Canadian Market Share

Cineplex

Entertainment

65.8%

Market Share

Regal 23%

AMC 21%

Cinemark 12%

Carmike 4%

Box Office Revenues and Screen Count

2010

US Exhibitors Market Share

The Cineplex Business Model

*US Exhibitors include Regal, Cinemark, AMC and Carmike

Cineplex US Exhibitors* NCM

Exhibition

Merchandising

Media

Alternative

Loyalty

E-Commerce

Cineplex vs. US Exhibitors – 2010 vs 2009

(1) North American operations only

(2) Prior year pro forma information including pre-acquisition results of Kerasotes

acquisition not available

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

2.7% -6.6% 0.6% (2)

Total Revenue

growth 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)

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

Cineplex vs. US Exhibitors - 2010

(1) North American operations only

Exhibition

Overview Business

2008

Cineplex

Entertainment

2010 2009

Industry Box Office

* Source: Motion Picture Theatre Associations of Canada

Canadian

Industry* +1.8%

+13.7%

+12.8%

+3.4% +4.5%

+3.3%

Cineplex vs North American Industry

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Cineplex 1.4% 6.5% 3.8% 10.2% -0.9%

N.A. Industry 1.3% 0.3% -4.3% 6.0% -5.6%

2006 2007 2008 2009 2010

Attendance Growth (source: MPAA)

Cineplex Average = 4.2%

North American Average=-0.5%

Media

Merchandising Loyalty

Interactive

Evolving the Entertainment Experience

Alternative Programming

Exhibition

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Exhibition

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

69.4 million people visited our theatres in 2010

Exhibition fuels ALL core businesses

Digital Projection and 3D

Canadian digital financing structure

- Anticipate Q2 2011 launch

- Anticipate taking 18 months to complete rollout

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%

3D Impact

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

2008 2009 Full Year 2010

% of Total Box Office

Revenues from IMAX and

3D 3.4% 14.4% 28.3%

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

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Loyalty

Media

Interactive

Merchandising

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

Alternative Programming

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Merchandising CPP Revenue Growth

Pro Forma 2005

$3.44

2006

$3.72 $3.84

2007

$3.96

2008 2009

$4.12 $4.27

2010

Merchandising

Expand speed of service initiatives (Zoning)

Rationalization of Branded Food Offerings

Expand in-house brand – Outtakes

Strategically add XSCAPE Entertainment Centres

2011:

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Cineplex Media

93% Market Share

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

Cineplex Media Revenue Summary ($millions)

2005

$34.2

2006

$47.1

$56.2

2007 2008

$61.0

$66.8

2009 2010

$82.3

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

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

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

Number of members (millions)

2007 2008 2009 2010

0.6

1.4

2.1

2.7

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

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

SCENE Loyalty Program

Scene Objectives: Future Initiatives:

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Interactive – Cineplex.com

Cineplex Store:

2011:

Online Ticketing:

2011:

Fastest, easiest and most convenient way to purchase tickets -- PRINT SKIP SCAN

Gift Card Redemption FRC Season Tickets D-Box Tickets Mobile Kiosks in Theatre

Online sales of gift cards, DVDs, Blu-ray, new release and catalogue movies

Stream HD content for DTO and VoD titles When available, store content in cloud-based

UltraViolet™ account

m.cineplex.com

Cineplex Apps - Blackberry, iPhone, iPad, iPod Touch, Android

Mobile Payment and Ticketing SMS – contests, games, promotions, segmented alerts

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

Interactive - Mobile

Mobile:

2011:

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

*Indicates Annual Record

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%

Attendance (millions)

2005 2006 2007 2008 2009 2010

56.6 57.4

61.1

63.5

70.0 69.4

Box Office Revenue

Box Office Revenue

($millions)

2005 2006 2007 2008 2009 2010

$444 $459 $489

$511

$581 $601

Box Office Per Patron ($ millions)

Box Office per Patron

2005 2006 2007 2008 2009 2010

$7.99 $7.99 $8.05

$7.73

$8.30 $8.67

Concession Revenue

Concession Revenue

($millions)

2005 2006 2007 2008 2009 2010

$198

$213

$235

$252

$288 $296

Concession Revenue Per Patron

CPP

($millions)

2005 2006 2007 2008 2009 2010

$3.84

$3.72 $3.84

$3.96 $4.12

$4.27

Cineplex Media Other

Other Revenue

$68

$81

$87

$95

($millions)

$44

2005 2006 2007 2008 2009 2010

$114

$34 $47

$56 $61 $67 $82

Adjusted EBITDA*

Adjusted EBITDA

($millions)

2005 2006 2007 2008 2010 2009

$67

$118

$137 $145

$164 $173

* Results for Cineplex Entertainment Limited Partnership

Credit Facilities

Covenant Leverage Ratio

Maturity Capacity Drawn

Term Facility July 2012 $235.0 $235.0

Revolving Facility July 2012 130.0 0

Total $365.0 $235.0

($millions)

2.89 2.39 1.94 1.88 1.64 1.57

2005 2006 2007 2008 2009 2010

1.58

Distributions

Payout Ratio

Distributions

112%

80%69% 67% 59% 57%

2005 2006 2007 2008 2009

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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

Performance and Returns

Peer Group Stock Performance

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

Questions

Answers and