cineplex galaxy income...

CINEPLEX GALAXY Income Fund Q1 2010

Certain statements made today may be “forward-looking statements”, which are not guarantees of future performance and are subject to various risks and uncertainties. Forward-looking statements are based on management’s beliefs and assumptions regarding the information currently available and actual results may differ materially from those expressed. Factors that could cause results to vary are described in the Cineplex Galaxy Income Fund Annual Information Form and MD&A, both of which are available at www.sedar.com

Cineplex Entertainment

Largest

Company in

Most Successful and

Motion Picture Theatre Exhibition

Canada

129 Theatres with

1,329 Screens

The

Cineplex Entertainment

Largest

Company in

Most Successful and

Motion Picture Theatre Exhibition

Canada

130 Theatres with

1,347 Screens

The

Box Office Market Share - 2009

Empire 12.9%

Other 6.9%

AMC 6.7%

Landmark 2.4%

Guzzo 3.3%

Cineplex Entertainment 67.8%

Market Share of Canadian Box Office Revenues

Exhibition Overview

Business

Cineplex Entertainment +13.7% +4.5%

Q1/10 2009 2008

Industry Box Office

* Source: Motion Picture Theatre Associations of Canada

Canadian Industry* +12.8% +3.3% +17.0%

+23.1%�

Films for 2010

May 14th

Robin Hood

May 27th

Sex and the City 2

June 4th

Marmaduke

June 11th

The A-Team

June 11th�

Karate Kid

June 25th

Knight & Day

June 30th

The Twilight Saga: Eclipse

July 16th

Inception

July 23rd

Salt

July 23rd

Ramona and Beezus

December 22nd

August 13th August 13th September 24th

December 22nd

October 8th

November 5th

Films for 2010

True Grit

The Expendables Eat, Pray, Love Wall Street: Money Never Sleeps

Paranormal Activity

October 22nd

Gulliver’s Travels

Life As We Know It

Due Date

Films for 2010

Avatar

December 18th 09

Alice in Wonderland

March 5th

How to Train Your Dragon

March 26th

Clash of the Titans

April 2nd

3D�

July 30th

Cats & Dogs: Revenge

of Kitty Galore

August 6th

Step Up 3D

August 27th

Piranha 3D

Shrek Forever After

May 21st

Toy Story 3

June 18th

The Last Airbender

July 2nd

Despicable Me

July 9th

3D Films for 2010

December 17th

Jackass 3D

October 15th September 10th

Resident Evil: Afterlife

September 24th

Legend of the Guardians The Owls of Ga’Hoole

December 10th

Chronicles of Narnia: The Voyage of the

Dawn Treader

October 22nd

Saw VII - 3D

November 5th

Megamind

November 19th

Harry Potter and the Deathly Hallows: Part 1

December 17th

Yogi Bear TRON Legacy Tangled

November 26th

3D Films for 2010

Evolving the Entertainment Experience

Media Merchandising

Exhibition

Media

Merchandising Loyalty

Interactive


Alternative Programming

Exhibition

2009 Accomplishments

!   Exhibition -  Record 70 million visitors, (+ 10.2%) -  Record Box Office Revenue, (+ 13.7%) -  Record Box Office per Patron, (+ 3.2%) to $8.30 -  Opened Cineplex Odeon Westmount and VIP Cinemas in London, ON -  Retrofitted four theatres -  Installed 106 digital projectors and 100 RealD 3D systems

!   SCENE -  Increased membership by 735,000 members -  Reached 2 million member milestone – October


!   Media -  Record revenues of $66.8 million, (+ 9.5%) -  Completed acquisition of Onsite Media Network Inc. and renamed to Cineplex

Digital Media -  Recognized by Marketing Magazine as one of Canada’s Top 10 Media Players of

the Year

!   Merchandising -  Record concession revenues, (+14.5%) -  Record annual CPP of $4.12, (+ 3.9%) -  Opened XSCAPE Entertainment Centre at SilverCity Newmarket Cinemas -  Launched speed of service initiatives (Zoning) -  Rationalization of Branded Food Offerings


1.  Cineplex.com -  #1 destination of choice for movie-goers in Canada -  Redesigned website to add enhanced search capability/widgets/improved navigation 2. e-commerce -  The Cineplex Store -  Gift cards online -  Earn and redeem SCENE points online -  Signed a license agreement with Roxio CinemaNow - to power a new digital movie

download service at cineplex.com -  Online ticketing

-  Significant increase in online ticket sales (54.2%) -  PRINT SKIP SCAN service expanded to 92 locations

3. Mobile -  Mobile site developed and launched -  m.cineplex.com

!   Interactive


-  The Met Opera’s Live in High Definition series expanded to 90+ theatres -  Launched The Met Summer Series -  Expanded alternative content offerings

-  Concerts, sporting events, speaker series -  Launched new partnership with the UK’s National Theatre (5 performances)

!   Alternative Programming

Loyalty

Media

Interactive

Merchandising

Exhibition



Exhibition

2010:

!   Digital rollout will expand to replace 35mm projectors

!   Expand VIP Cinemas !   UltraAVX - Audio Visual Experience

!   New builds (CrossIron Mills - Calgary, AB, Chilliwack, BC)

!   Theatre Upgrades and Retrofits

!   70 million people visited our theatres in 2009

!   Exhibition fuels ALL core businesses

Digital Projection and 3D

!   150+ additional 3D screens will be added by December 31/10 (overall target 30% of circuit)

!   Canadian digital financing structure

-  Targeting to launch by December 31, 2010

-  Targeting 18 months to complete rollout

Digital

New Builds As of Dec. 31, 2008 As of Dec. 31, 2009 As of Mar. 31, 2010

100%

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 Q1 2009 Q1 2010

New Theatres and Retrofits - 2009

Cineplex Odeon Westmount & VIP Cinemas

Galaxy Cinemas Belleville & Cineplex Odeon Westhills Cinemas

New Theatres and Retrofits - 2010+

Exhibition Summary

!   SCENE !   Telus Tuesdays !   New Builds and Retrofits !   Evolving the Entertainment Experience

-  Digital and 3D -  UltraAVX - Audio Visual Experience

-  XSCAPE Entertainment Centres

-  VIP Cinemas

Exhibition



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


Loyalty

Media

Interactive

Merchandising

Exhibition



Merchandising CPP Revenue Growth

Pro Forma�2005 �

Merchandising

!   Expand speed of service initiatives (Zoning) !   Rationalization of Branded Food Offerings !   Expand in-house brand – Outtakes !   Strategically add XSCAPE Entertainment Centres

2010:

XSCAPE Entertainment Centre

Loyalty

Media

Interactive

Merchandising

Exhibition



Cineplex Media

94% �Market Share

!   On screen advertising - Full Motion and Digital Pre-show

!   Famous and Famous Quebec Magazines

!   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

$47.1 �

$56.2 �$61.0 �

$66.8 �

2006 � 2007 � 2008 � 2009 �2005 �

$34.2 �

($millions) �

Cineplex Digital Media - Theatre Lobby Network

!   Upgrading digital signage in 100 theatres -  Lobby Network and Service Level

!   August 2010 completion

Cineplex Digital Media - External Network

!   Acquired Onsite Media in 2009

!   Stadium Network: Ottawa, Calgary, Vancouver, Edmonton

!   Office Network: 26 Brookfield properties - Toronto, Ottawa, Calgary, Edmonton, Vancouver

!   Plans to expand External Network

!   Potential acquisition opportunities

Loyalty

Media

Interactive

Merchandising

Exhibition



SCENE Loyalty Program

!   Program launched (January 24, 2007) !   Reached 1 million members (July 22, 2008) !   Reached 2 million members (October 24, 2009) !   Today - 2.3 million members +

Number of members (millions)

!   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:�

Low Value

$7 $8

.6

Cluster Migration - April 08 - Feb 2010

Average Concession Spend ($)

Aver

age A

ttend

ance

-

# Mov

ies/M

onth

High Value

Sr. Sight

Urban Eaters

Student Cinefile

SCENE Customer Segmentation

AA

MTVS

MM

First Class

Families Combo Coeds

Loyalty

Media

Interactive

Merchandising

Exhibition



2010:�

2010:

!   Adding more robust rich content

!   New blogging/search enhancements

!   New search engine optimization (SEO) initiatives

!   Increased page views and unique visitors

!   Increased online advertising revenue

Interactive - Cineplex.com

!   Further enhancements / in-house systemSignificant increases in online ticket sales

Interactive - e-commerce

Cineplex Store:

2010:

Online Ticketing:

2010:

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

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

!   Earn and redeem SCENE points

!   Launch digital movie download service

!   m.cineplex.com !   SMS Mobile Platform

!   Cineplex Apps - Blackberry, iPhone, Android !   Mobile Payment and Ticketing !   SMS – contests, games, promotions,

segmented alerts !   Mobile Advertising Delivery

Interactive - Mobile

Mobile:

2010:

Financial �Highlights

Record Annual Results

2009 2008 %

Box Office $581.1* $510.9 13.7%

Concession 288.3* 251.6 14.5

Other 95.0* 87.1 9.0

EBITDA Margin 16.6% 16.5% 0.1

Attendance 70.0* 63.5 10.2

BPP $8.30* $8.05 3.2

CPP $4.12* $3.96 3.9

Regal Cinemark Carmike AMC

BPP 6.0% 2.4% 4.7% 4.5%

CPP growth 2.6% 0.6% -0.2% 0.5%

Concession revenue growth 2.3% 12.7% 5.5% -0.4%

Total Revenue growth 4.4% 13.4% 8.9% 2.4%

EBITDA growth 2.1% 20.3% 10.0% 2.7%

Attendance growth -0.3% 12.0% 5.7% -0.9%

Cineplex vs. US Exhibitors - 2009 vs. 2008

Attendance (millions) �

Box Office Revenue

Box Office Revenue Box Office per Patron

($millions) �

Concession Revenue

Concession Revenue CPP

($millions) �

Other Revenue

$67.9 �

$81.0 �$87.1 �

$95.0 �

($millions) �

$44.3 �

Adjusted EBITDA*

Adjusted EBITDA Adjusted EBITDA Margin

($millions) �

*Partnership

Q1 2010 Results (millions) �

Q1 2009 %

Box Office $130.3 23.1%

Concession 63.1 18.6%

Other 17.6 24.9%

EBITDA Margin 14.2% -0.5%

Attendance 16.0 13.0%

BPP $8.16 8.9%

CPP $3.95 5.0%

Credit Facilities

Covenant Leverage Ratio

Maturity Capacity Drawn

Term Facility $235.0 $235.0

Revolving Facility 130.0 0

Total $365.0 $235.0

($millions) �

Distributions

Payout Ratio

Distributions

Corporate Conversion Plan

!   Conversion Date - January 1, 2011 !   Plan of Arrangement - Business Corporations Act (Ontario) !   Management Information Circular – Q4 2010 !   Special Meeting – Q4 2010 !   Tax-Deferred Rollover Basis for Canadian Resident

Unitholders !   Eligibility for dividend tax credits !   Initial Dividends

-  $1.26 annually payable monthly

CGX.UN

Capital Appreciation since IPO: $10.55 Distributions since IPO: $7.66 Total Return since IPO: $18.21 Annual Return: 21%

$22

20

18

16

14

12

$10 2004 2005 2006 2007 2008 2009 2010

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