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