2005 Annual General Meeting2005 Annual General Meeting

11

Highlights and Achievements Highlights and Achievements

Two Cinema Brands, One Company:Two Cinema Brands, One Company:Outstanding ResultsOutstanding Results

Mission StatementMission Statement

Passionately Delivering an ExceptionalEntertainment Experience

Passionately Delivering an ExceptionalEntertainment Experiencepp

22

Top Tier Theatre Exhibition BrandsTop Tier Theatre Exhibition Brands

Locations: 63Screens: 589

Locations: 20Screens: 167

2003:

33

Top Tier Theatre Exhibition BrandsTop Tier Theatre Exhibition Brands

Locations: 64Screens: 592

Locations: 22Screens: 183

2004:

44

55

Consistent Long-Term Box Office Revenue GrowthConsistent Long-Term Box Office Revenue Growth

C di B Offi RC di B Offi RCanadian Box Office Revenues1965 - 2004

Canadian Box Office Revenues1965 - 2004

$ Millions$ Millions

$750

$1,000

CAGR since 1965: 6.3%CAGR since 1965: 6.3%

$500

$750

$250

$01965 1970 1975 1980 1985 1990 1995 2000

66

Canadian Recessionary PeriodsCanadian Recessionary Periods

Highest Grossing Films in 2004Highest Grossing Films in 2004

Spiderman 2$373 million

Spiderman 2$373 million

Shrek 2$436+ million

Shrek 2$436+ million

Passion of the Christ$370 million

Passion of the Christ$370 million

77

Meet the Fockers$278 million

Meet the Fockers$278 million

The Incredibles$261 million

The Incredibles$261 million

Harry Potter$250 millionHarry Potter$250 million

Big Films for 2005Big Films for 2005

Star Wars Episode III May 2005

Star Wars Episode III May 2005

MadagascarMay 2005

MadagascarMay 2005

Mr. And Mrs. Smith June 2005

Mr. And Mrs. Smith June 2005

Batman BeginsJune 2005

Batman BeginsJune 2005

Cinderella Man June 2005

Cinderella Man June 2005

War of the Worlds July 2005

War of the Worlds July 2005

88

The Wedding Crashers July 2005

The Wedding Crashers July 2005

Charlie and the Chocolate

Factory July 2005

Charlie and the Chocolate

Factory July 2005

Dukes of Hazzard August 2005

Dukes of Hazzard August 2005

Harry Potter and the Goblet of Fire

November 2005

Harry Potter and the Goblet of Fire

November 2005

The Lion, the Witch and the

Wardrobe December 2005

The Lion, the Witch and the

Wardrobe December 2005

King Kong December 2005

King Kong December 2005

99

Strong Market ShareStrong Market ShareM k Sh f C di B Offi RM k Sh f C di B Offi RMarket Share of Canadian Box Office RevenuesMarket Share of Canadian Box Office Revenues

20032003 20042004

Other: 7 4%Other: 7 4%

Cineplex Galaxy: 30.1%

Cineplex Galaxy: 30.1% Other: 7 6%Other: 7 6%

Cineplex Galaxy: 31.3%

Cineplex Galaxy: 31.3%Other: 7.4%Other: 7.4%

Guzzo: 3.3%Guzzo: 3.3%Landmark: 2.9%Landmark: 2.9%Empire: 4.6%Empire: 4.6%

Other: 7.6%Other: 7.6%Guzzo: 3.3%Guzzo: 3.3%

Landmark: 2.9%Landmark: 2.9%

Empire: 5.7%Empire: 5.7%

yy

AMC: 6.3%AMC: 6.3% AMC: 6.5%AMC: 6.5%

Famous Players: 45.4%Famous Players: 45.4% Famous Players: 42.7%Famous Players: 42.7%

1010Source: A.C. Neilsen EDI dataSource: A.C. Neilsen EDI data

Diverse Supply of Films - 2003Diverse Supply of Films - 2003Ci l G l Fil S l b Di ibCi l G l Fil S l b Di ibCineplex Galaxy Film Supply by Distributor

Full Year 2003Cineplex Galaxy Film Supply by Distributor

Full Year 2003

Alliance Atlantis: 20%Alliance Atlantis: 20%Paramount: 6%Paramount: 6%

DreamWorks: 3%DreamWorks: 3%MGM/UA: 3%MGM/UA: 3% Other: 9%Other: 9%

Twentieth Century Fox: 9%Twentieth Century Fox: 9%

Paramount: 6%Paramount: 6%

yy

Sony: 15%Sony: 15%

Warner Bros : 11%Warner Bros : 11%

Universal: 13%Universal: 13%

Warner Bros.: 11%Warner Bros.: 11%

Buena Vista (Disney): 11%Buena Vista (Disney): 11%

1111

Universal: 13%Universal: 13%Buena Vista (Disney): 11%Buena Vista (Disney): 11%

Diverse Supply of Films - 2004Diverse Supply of Films - 2004Ci l G l Fil S l b Di ibCi l G l Fil S l b Di ibCineplex Galaxy Film Supply by Distributor

Full Year 2004Cineplex Galaxy Film Supply by Distributor

Full Year 2004

Alliance Atlantis: 14%Alliance Atlantis: 14%DreamWorks: 10%DreamWorks: 10%

MGM/UA: 2%MGM/UA: 2% Other: 9%Other: 9%

Paramount: 7%Paramount: 7%

Sony: 14%Sony: 14%

Twentieth Century Fox: 9%Twentieth Century Fox: 9%

Sony: 14%Sony: 14%

Universal: 10%Universal: 10%

Warner Bros.: 15%Warner Bros.: 15%

1212

Buena Vista (Disney): 10%Buena Vista (Disney): 10%

Revenue RetentionRevenue Retention

6%6%

Retention FactorRetention Factor

85% - 95%85% - 95%27%27% 80%80%

67%67%

48%48%

1313Box Office Concession Other RevenueBox Office Concession Other Revenue

Increasing Revenue Per PatronIncreasing Revenue Per PatronR P PR P PRevenue Per PatronRevenue Per Patron

$11 12$11 12$9.83$9.83 $10.27$10.27 $10.84$10.84 $11.12$11.12

$2 77$2 77 $2 89$2 89 $3.00$3.00$0.54$0.54 $0.53$0.53 $0.67$0.67 $0.72$0.72

$2.64$2.64 $2.77$2.77 $2.89$2.89 $3.00$3.00

$6.65 $6.97 $7.28 $7.40

2001 2002 2003 2004

1414

Box Office Concession Other RevenueBox Office Concession Other RevenuePro forma normalized valuesPro forma normalized values

Significant Other Revenue ContributionSignificant Other Revenue Contribution

O h R ($ Milli )O h R ($ Milli )Other Revenues ($ Millions)Other Revenues ($ Millions)

$17 4$17 4$20.9$20.9

$22.8$22.8

$13.4$13.4$17.4$17.4

2001 2002 2003 2004

1515

Advertising Games OtherAdvertising Games Other

Building Frequency for all DemographicsBuilding Frequency for all Demographics

I i M k i d P iI i M k i d P iInnovative Marketing and PromotionsInnovative Marketing and Promotions

1616

New ProjectsNew Projects

ProjectProject ScreensScreens Projected OpeningProjected Opening BrandBrandOpeningOpening

Barrhaven 7 Fall 2005Barrhaven 7 Fall 2005

Aurora 10 Fall 2005

Brossard 16 Spring 2006

Aurora 10 Fall 2005

Brossard 16 Spring 2006

Burloak 12 Fall 2006

Milton 8 Spring 2006

Burloak 12 Fall 2006

Milton 8 Spring 2006Milton 8 Spring 2006

Brockville 6 Spring 2006

Milton 8 Spring 2006

Brockville 6 Spring 2006

1717

Corporate Initiatives - 2004Corporate Initiatives - 2004

I t ti f t iI t ti f t i

Recap of 2004Recap of 2004Integration of two companies

New Theatres / Expansions:

Integration of two companies

New Theatres / Expansions:p– Guelph, Orillia, Pitt Meadows, Lethbridge

C i P

p– Guelph, Orillia, Pitt Meadows, Lethbridge

C i PConcession Programs

Improved Margins

Concession Programs

Improved Marginsp gp g

1818

Corporate Initiatives - 2004Corporate Initiatives - 2004

I t ti f t iI t ti f t i

Recap of 2004Recap of 2004Integration of two companies

New Theatres / Expansions:

Integration of two companies

New Theatres / Expansions:p– Guelph, Orillia, Pitt Meadows, Lethbridge

C i P

p– Guelph, Orillia, Pitt Meadows, Lethbridge

C i PConcession Programs

Improved Margins

Concession Programs

Improved Marginsp gp g

1919

Analyst CoverageAnalyst Coverage

CompanyCompany AnalystAnalyst Stock RatingStock Rating

BMO Nesbit Burns Jeff Tkachuk Outperform

National Bank Financial Joel Sutherland Outperform

BMO Nesbit Burns Jeff Tkachuk Outperform

National Bank Financial Joel Sutherland Outperform

RBC Capital Markets Walter Spracklin Outperform

S ti C it l Ch i Bl k S t P f

RBC Capital Markets Walter Spracklin Outperform

S ti C it l Ch i Bl k S t P fScotia Capital Chris Blake Sector Perform

TD Newcrest Adina Bloom Buy

Scotia Capital Chris Blake Sector Perform

TD Newcrest Adina Bloom Buy

Westwind Partners Ben Mogil Buy

Wellington West Capital Markets Robert Winslow Buy

Westwind Partners Ben Mogil Buy

Wellington West Capital Markets Robert Winslow Buy

2020

Wellington West Capital Markets Robert Winslow BuyWellington West Capital Markets Robert Winslow Buy

Unit Holder ReturnUnit Holder Return

Unit Price at AGM May 20 2004 $10 00Unit Price at AGM May 20 2004 $10 00Unit Price at AGM, May 20, 2004 $10.00

Unit Price May 17, 2005 $13.82

Unit Price at AGM, May 20, 2004 $10.00

Unit Price May 17, 2005 $13.82

Unit Price Appreciation $3.82Unit Price Appreciation $3.82

Distributions Paid $1.15Distributions Paid $1.15

Total Return 50.0%Total Return 50.0%

2121

Corporate Initiatives 2005Corporate Initiatives 2005

New Theatres:– Barrhaven, Aurora

New Theatres:– Barrhaven, Aurora,

Theatre Rebranding– Medicine Hat Barrie and Grande Prairie

,

Theatre Rebranding– Medicine Hat Barrie and Grande Prairie– Medicine Hat, Barrie and Grande Prairie

New POS System Implementation (VISTA)

R i IT f L Ci l C d

– Medicine Hat, Barrie and Grande Prairie

New POS System Implementation (VISTA)

R i IT f L Ci l C dRepatriate IT from Loews Cineplex to Canada

Loyalty Program

Repatriate IT from Loews Cineplex to Canada

Loyalty Program

Digital Advertising Pre-Show NetworkDigital Advertising Pre-Show Network

2222

Corporate Initiatives 2005Corporate Initiatives 2005

New Theatres:– Barrhaven, Aurora

New Theatres:– Barrhaven, Aurora,

Theatre Rebranding– Medicine Hat Barrie and Grande Prairie

,

Theatre Rebranding– Medicine Hat Barrie and Grande Prairie– Medicine Hat, Barrie and Grande Prairie

New POS System Implementation (VISTA)

R i IT f L Ci l C d

– Medicine Hat, Barrie and Grande Prairie

New POS System Implementation (VISTA)

R i IT f L Ci l C dRepatriate IT from Loews Cineplex to Canada

Loyalty Program

Repatriate IT from Loews Cineplex to Canada

Loyalty Program

Digital Advertising Pre-Show NetworkDigital Advertising Pre-Show Network

2323

2424

Digital Advertising Pre-show - OverviewDigital Advertising Pre-show - Overview

Movie Showtime 8 pmMovie Showtime 8 pm

CommercialsCommercials

CommercialsCommercialsSpecial Feature/ContentSpecial Feature/Content

20 minute digital show presented20 minute digital show presented

CommercialsCommercials

CommercialsCommercials

Special Feature/ContentSpecial Feature/Content

Music VideoMusic Video

Replaces current static slide programReplaces current static slide program

20 minute digital show presented prior to advertised show time20 minute digital show presented prior to advertised show timeCommercials/SlidesCommercials/Slides

C i l /SlidC i l /Slid

Music VideoMusic Video

p p gCombination of entertainment, advertising and promotional messagesHigh quality full screen full motion content

p p gCombination of entertainment, advertising and promotional messagesHigh quality full screen full motion content

Commercials/SlidesCommercials/Slides

Commercials/SlidesCommercials/Slides

2525

High quality, full screen, full motion contentHigh quality, full screen, full motion contentCommercials/SlidesCommercials/Slides

Promotions/InteractivePromotions/Interactive

Digital Advertising Pre-show - OverviewDigital Advertising Pre-show - Overview

F ll t k d t b d TV b d t d lF ll t k d t b d TV b d t d l

Kodak Digital Cinema System:Kodak Digital Cinema System:

Fully networked system based on TV broadcast modelAll content is delivered electronically via DSLPlayback is automated from servers in each auditorium

Fully networked system based on TV broadcast modelAll content is delivered electronically via DSLPlayback is automated from servers in each auditoriumAll systems remotely monitoredAll systems remotely monitored

High quality LCD projectorsHigh quality LCD projectors

Christie Digital Projectors:Christie Digital Projectors:High quality LCD projectorsNative 16x9 format - full light output on the entire screenHigh quality LCD projectorsNative 16x9 format - full light output on the entire screen

2626

Digital Advertising Pre-show - BenefitsDigital Advertising Pre-show - Benefits

Significantly better presentation than any other existing digital pre-show in CanadaSignificantly better presentation than any other existing digital pre-show in Canadag g pImproved customer experience - entertaining and interactive show

g g pImproved customer experience - entertaining and interactive showImproved presentation qualityImproved presentation quality

2727

Digital Advertising Pre-show - BenefitsDigital Advertising Pre-show - Benefits

More creativity and flexibility for advertisersMore precise targeting of adsMore creativity and flexibility for advertisersMore precise targeting of adsMore precise targeting of adsShorter timelines and reduced production costs for advertisers

More precise targeting of adsShorter timelines and reduced production costs for advertiserscosts for advertisersExpanded Customer baseNet result = Increased advertising revenue

costs for advertisersExpanded Customer baseNet result = Increased advertising revenueNet result = Increased advertising revenueNet result = Increased advertising revenue

2828

Alt ti C t t P iAlt ti C t t P i

Alternative Programming OpportunitiesAlternative Programming Opportunities

Alternative Content Programming– Sporting events– Concerts

Alternative Content Programming– Sporting events– Concerts– Gaming– Special events

Expanded meeting rentals and corporate events

– Gaming– Special events

Expanded meeting rentals and corporate eventsExpanded meeting rentals and corporate eventsEducational programmingSpecialty film programming

Expanded meeting rentals and corporate eventsEducational programmingSpecialty film programmingp y p g gInteractive opportunities

p y p g gInteractive opportunities

2929

Rollout PlanRollout Plan

Phase 1:April 1 LaunchToronto extended market area

Phase 1:April 1 LaunchToronto extended market area

Phase 2:November/December LaunchNationwide - Additional 400+ screens

Phase 2:November/December LaunchNationwide - Additional 400+ screens

3030

Toronto extended market area- 21 locations; 215 screens

Toronto extended market area- 21 locations; 215 screens

Nationwide Additional 400+ screensNationwide Additional 400+ screens

Digital Advertising Pre-show - SummaryDigital Advertising Pre-show - Summary

Th Ci l G l Di i lTh Ci l G l Di i lThe Cineplex Galaxy Digital Pre-Show Cinema NetworkThe Cineplex Galaxy Digital Pre-Show Cinema Network

provides us with the platform to build a unique cinema entertainment

provides us with the platform to build a unique cinema entertainmenta unique cinema entertainment

experience and positions us as the market leader in digital cinema and

a unique cinema entertainment experience and positions us as the market leader in digital cinema andmarket leader in digital cinema and

content distributionmarket leader in digital cinema and

content distribution

3131

3232

Total Revenue - 2004 vs. 2003Total Revenue - 2004 vs. 2003$ Milli$ Milli$ Millions$ Millions

5 4%5 4%$335.8 $353.7

5.4%5.4%

2003 2004

3333

2003 2004Screen Count: 755 775Screen Count: 755 775

Box Office - 2004 vs. 2003Box Office - 2004 vs. 2003$ Milli$ Milli$ Millions$ Millions

4 5%4 5%$225.3 $235.4

4.5%4.5%

2003 2004

3434

2003 2004

Concession Revenues - 2004 vs. 2003Concession Revenues - 2004 vs. 2003

$ Milli$ Milli$ Millions$ Millions

$89.6$95.5

6.6%6.6%

2003 2004

3535

2003 2004

Other Revenues - 2004 vs. 2003Other Revenues - 2004 vs. 2003

$ Milli$ Milli$ Millions$ Millions

9 2%9 2%$20.9

$22.89.2%9.2%

2003 2004

3636

2003 2004

Adjusted EBITDA - 2004 vs. 2003Adjusted EBITDA - 2004 vs. 2003

$ Milli$ Milli % M i% M i

$

$ Millions$ Millions8.9%8.9%

% Margin% Margin

$68.5$74.5

21.120.419.4

12.2

16.7

2003 2004 2000 2001 2002 2003 2004

3737

Adjusted EBITDAAdjusted EBITDA EBITDA MarginEBITDA Margin

Total Revenue - Q1 2005 vs. Q1 2004Total Revenue - Q1 2005 vs. Q1 2004

$ Milli$ Milli$ Millions$ Millions

1.0%1.0%$79.0 $78.3

Q1 2004 Q1 2005

3838

Q1 2004 Q1 2005

Box Office - Q1 2005 vs. Q1 2004Box Office - Q1 2005 vs. Q1 2004

$ Milli$ Milli$ Millions$ Millions

4.5%4.5%$53.8 $51.4

Q1 2004 Q1 2005

3939

Q1 2004 Q1 2005

Concession Revenues - Q1 2005 vs. Q1 2004Concession Revenues - Q1 2005 vs. Q1 2004

$ Milli$ Milli$ Millions$ Millions

2 4%2 4%$21.1 $21.6

2.4%2.4%

Q1 2004 Q1 2005

4040

Q1 2004 Q1 2005

Other Revenues - Q1 2004 vs. Q1 2003Other Revenues - Q1 2004 vs. Q1 2003

$ Milli$ Milli$ Millions$ Millions

28 5%28 5%

$4.1

$5.228.5%28.5%

$

Q1 2003 Q1 2004

4141

Q1 2003 Q1 2004

EBITDA - Q1 2005 vs. Q1 2004EBITDA - Q1 2005 vs. Q1 2004

$ Milli$ Milli$ Millions$ Millions

20 5%20 5%$15.1

$12.0

20.5%20.5%

Q1 2004 Q1 2005

4242

Q1 2004 Q1 2005

Distributable Cash 2004Distributable Cash 2004(in $ thousands except per unit amounts)(in $ thousands except per unit amounts)(in $ thousands except per unit amounts)(in $ thousands except per unit amounts)

Distributable Cash per Unit $1.23Distributable Cash per Unit $1.23Distributable Cash per Unit $1.23

Declared Distribution per Unit $1.15

Distributable Cash per Unit $1.23

Declared Distribution per Unit $1.15

Payout Ratio 94.0%Payout Ratio 94.0%

4343

Flexible Financing StructureFlexible Financing Structure

Development FacilityDevelopment FacilityDevelopment Facility– Available - $40 million

D t M h 31 2005 $16 5 illi

Development Facility– Available - $40 million

D t M h 31 2005 $16 5 illi– Drawn as at March 31, 2005 - $16.5 million

Cash at March 31, 2005 - $24.1 million– Drawn as at March 31, 2005 - $16.5 million

Cash at March 31, 2005 - $24.1 millionWorking Capital Facility– Available - $20 million

Working Capital Facility– Available - $20 millionAvailable $20 million– Drawn as at March 31, 2005 - Nil

Available $20 million– Drawn as at March 31, 2005 - Nil

4444

2005 Annual General Meeting2005 Annual General Meeting

4545