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Canada’s #1 Film Exhibitor

Canada’s #1 Film Exhibitor. Famous Players Acquisition – Circuit. Locations: 75 Screens: 689. Locations: 56 Screens: 591. Famous Players Acquisition - Rationale. The Leading Film Exhibitor in Canada Accretive to Distributable Cash Complementary Operations will Lead to Cost Savings

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Canada’s #1 Film Exhibitor

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  1. Canada’s #1 Film Exhibitor

  2. Famous Players Acquisition – Circuit Locations:75 Screens:689 Locations:56 Screens:591

  3. Famous Players Acquisition - Rationale • The Leading Film Exhibitor in Canada • Accretive to Distributable Cash • Complementary Operations will Lead to Cost Savings • Opportunities to Increase Distributable Cash through Revenue Growth • Increase advertising market share and ancillary income • Addition of High Quality theatres in Metropolitan Markets • Superior Combined Management

  4. Famous Players Acquisition - Timeline Jul 22 – Deal closed Jul 22 – Closed Equity And Debt Financing Jul 22 – Formal Divestiture process commences Jul 29 – Organization Structure Finalized Aug 4 – Riocan transaction completed Aug 5 – Employee integration / terminations Aug 22 – Announce Empire transaction Viacom launches sale process May 27 – Consent Order signed Jun 10 – Purchase Agreement Signed Sep 30 – Close Empire transaction Jan Feb Mar Apr May Jun Jul Aug Sep 2005

  5. Famous Players Acquisition – Financing

  6. Famous Players Acquisition - Synergies Completed to Date: • Employee head count reduced by 35% - well on the way to meeting $20mm target • Head office employee integration/terminations completed August 5, 2005 • Integration of financial reporting systems – October 2005 • Acquired magazine and created 100% owned Cineplex Media Sales (former FP Media business was 51% owned by FP) – October 2005 Planned to Occur: • Vendor Contract negotiations • Operational efficiencies • Staffing models • Head office facility integration - December 31, 2005 • Marketing efficiencies – single programs for all brands

  7. Six Top-Tier Brands Colossus SilverCity Coliseum Famous Players Paramount->Naming Rights Cineplex Odeon Galaxy

  8. Strong Box Office Share Market Share of Canadian Box Office Revenues Cineplex Galaxy Combined After Divestiture Cineplex Galaxy:32.1% Cineplex Galaxy:64.2% Other: 9.8% Other: 6.9% Guzzo: 3.0% Guzzo: 3.0% Landmark: 3.1% Landmark: 3.1% Empire: 6.0% Empire: 13.6% AMC: 6.3% AMC: 6.3% Famous Players:42.6% Media representation for AMC, Empire, Landmark and others -> 85% Media Market Share Source: A.C. Nielsen EDI data

  9. Regional Box Office Share * Prior to Quebec divestitures

  10. INDUSTRYOVERVIEW

  11. Industry Box Office * source: Motion Picture Theatre Association of Canada

  12. Highest Grossing Films in 2004 / 2005 Top 5 Films 2005: $1.231 billion 2004: $1.725 billion In Millions of dollars Shrek 2 $441.2 Spiderman 2 $373.5 The Passion of the Christ $370.2 Meet the Fockers $279.2 The Incredibles $261.4 Star Wars Episode3 Revenge of the Sith $380.2 Harry Potter and the Goblet of Fire $205.5 Charlie and the Chocolate Factory $206.4 War of the Worlds $234.2 Batman Begins $205.3

  13. Q4 2005 Films The Lion, the Witch and the WardrobeDecember 2005 Harry Potter and the Goblet of Fire December 2005 King KongDecember 2005 Fun with Dick and Jane December 2005 Memoirs of a Geisha December 2005

  14. COMPANY OVERVIEW

  15. Increasing Revenue Per Patron Revenue Per Patron $12.31 $ 11.82 $ 11.18 $10.84 $ 11.12 $10.27 $9.83 * Excluding divestitures

  16. Box Office Pricing Strategy: • Cineplex Galaxy – Theatre based pricing strategy • Famous Players – Market based pricing strategy Action Plan: • Integrate to theatre based pricing strategy

  17. Significant Other Revenue Contribution Ancillary Revenues ($mill) $62.5 $22.8 $20.9 $23.7 $17.4 $13.4 $14.7

  18. New Projects Announced Brand Project Screens Projected Opening Barrhaven 7 Cineplex Odeon OPEN Aurora 10 OPEN Cineplex Odeon Milton Summer 2006 Galaxy Cinemas 8 Brockville 6 Summer 2006 Galaxy Cinemas Saskatoon Galaxy Cinemas 12 Summer 2006 16 Summer 2006 Cineplex Odeon Brossard Fall 2006 12 Burloak SilverCity 7 Collingwood Galaxy Cinemas Fall 2006

  19. Accomplishments 2005 • Repatriation of IT function from NY • Vista P.O.S. • Digital advertising network • Famous Players acquisition • New credit facility • Equity offering • RioCan transaction • Divestiture process

  20. Corporate Initiatives 2005/2006 • Customer Tracking • Loyalty Program • Monetize “Value” to Distributors/Advertisers/Suppliers • Naming Rights • On-Screen Advertising Business Integration • Digital Advertising Pre-Show Network • Point-of-Sale • New Theatres

  21. FINANCIAL HIGHLIGHTS

  22. Annual Total Revenue ($ millions) Screen Count

  23. Annual Attendance (millions)

  24. Annual EBITDA ($ millions) EBITDA Margin Adjusted EBITDA Margins – LTM March 2005: CGX 20.2% FP 9.0%

  25. Credit Facilities and Leverage • Development Facility • Available - $60 million • Working Capital Facility • Available - $50 million • Term Facility • Available - $315 million (reduced with divestiture proceeds)

  26. Focus on Value Creation • The number one Canadian film exhibitor with a market share of 64.2 %+ of Canadian Box Office • Own and operate the five top-tier entertainment brands in Canada • Significant opportunities to grow distributable cash • Only exhibitor in Canada with a continuing build program • Marketing power of the brands – reach more than 85 million Canadians across the country.

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