Cinema City current overview 2007
Czech Republic
Screens under
development - 14
Poland
Screens under
development - 107Hungary
Screens under
development - 13
62 theaters 534screens 110 K seats
445 screens
under development
40 theaters
under development6 countries
Cinema Country No of screens Date
Openings
Poznań-Kinepolis Poland 18 16 Jan 2007
Lublin Poland 8 11 Jun 2007
Sosnowiec Poland 6 29 Mar 2007
Rybnik Poland 8 13 Mar 2007
Gliwice Poland 13 27 Jun 2007
Iasi Romania 5 16 Nov 2007
Timisoara Romania 7 30 Nov 2007
Total open 65
Closings Israel (20 )
Net openings 45
Bulgaria
Screens under
development – 46
Israel
Screens under
development - 49
Romania
Screens under
development - 216
1
Cinema City strategy implementation in 2007
Cinema chain
� Opening of 7 multiplexes with 65 screens: 5 in Poland (53) and 2 in Romania (12)
� Preparation of CC Arena in Budapest opening – biggest megaplex in the CEE (22 screens + IMAX)
� CCI signed 17 lease agreements in Romania, 3 in Bulgaria, 4 Poland and 1 Hungary
as well as the 3rd real estate project in Bulgaria in Ruse.
� Further lease agreements in negotiation
� Intensive process of analysing other potential markets for CC expansion: Ukraine and Serbia
Advertising
� Cinema advertising activity development in Hungary and establishment of the NAM in Romania.
� Preparation to launch the NAM in the Czech Republic.
� Agreements signed with clients on the international level. Development of the hall sponsorships.� Agreements signed with clients on the international level. Development of the hall sponsorships.
� Agreement with Helios and Kinoplex chain in Poland to cover their cinema advertising. NAM market share in Poland of 65%.
� Cinema city contributed to the cinema avertising market in Poland which grew to PLN 70 million
Film distribution
�Forum Home Entertainment Hungary first full year contribution
�Forum Home Entertainment in Czech Rep. first time contribution to results in 2H 2007
�Positive segment result in 4Q2007
Real estate
� Sale of 15% share stake in the Mall of Plovdiv project in Bulgaria to GE Real Estate and Quinlan Private in June 2007.
Remaining15% to be sold in 2008/2009
� Purchase of 45% share stake through IT Sofia, CC subsidiary, in the Bulgarian company, which acquired
60 K sq m land in Ruse in Bulgaria. IT Sofia paid EUR 11.25 million.
2
Cinema City operating highlights 2007
► Number of tickets sold went up to 19.8 million in Cinema City chain (+14.9% yoy)
► Increase of tickets sold in Q4 2007: 4.6 million (2% yoy)
► Number of tickets sold on the like for like basis increased by 0.6% ytd
► Average ticket price increased to EUR 4,02 (+2.6% ytd)► Average ticket price increased to EUR 4,02 (+2.6% ytd)
► Admission per screen increased to 40.3 thousand (6.5% ytd) and to
36,3 thousand in Q4 2007 (-4.5% yoy)
► Average number of screens increased to 490 (+4.0% ytd) and
to 506 in Q4 2007 (+8,6% yoy)
3
Cinema City financial highlights 2007
in EUR million
For 3 months
31 Dec 2007
For 3 months
31 Dec 2006
change
%
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Revenues 39.6 34.4 15.1% 161.3 143.8 12.2%
EBITDA 8.0 8.4 -4.8% 34.6 31.2 10.9%
Net income 3.6 1.5 140.0% 16.6 11.7 41.9%
► Increase in revenues, EBITDA and net income in 2007
margins in %
For 3 months
31 Dec 2007
For 3 months
31 Dec 2006
change
%
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Gross margin 16,4% 16,4% 0 ppt 17,5% 16,4% +1.1 ppt
EBITDA margin 20,2% 24,4% -4.2 ppt 21,5% 21,7% -0.2 ppt
Net margin 9,1% 4,4% +4.7 ppt 10,3% 8,1% +2.2 ppt
► Margins improving in most levels
4
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Revenues 161,3 143,8 12,2%
EBITDA 34,6 31,2 10,9%
Amortization&Depreciation -15,4 -13,9 10,8%
Improvement in 2007 net profit
Financial Costs & Other (Net) -4,1 -4,7 -12,8%
Income Tax 0,6 -1,4 -142,9%
Minorities 1 0,5 100,0%
Net profit 16,7 11,7 42,7%
For 3 months
31 Dec 2007
For 3 months
31 Dec 2006
change
%
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Poland 22 029 16 589 32,8% 85 471 69 027 23,8%
Israel 6 899 9 054 -23,8% 30 864 32 425 -4,8%
Hungary 6 739 6 114 10,2% 23 604 15 695 50,4%
Czech Republic 2 854 1 217 134,5% 9 986 11 469 -12,9%
Bulgaria 753 1 383 -45,6% 11 121 15 175 -26,7%
Romania 294 294
Total revenues 39 568 34 357 15,2% 161 340 143 791 12,2%
Revenues by countries
12 M 2007
12 M 2006
Poland
Romania
Bulgaria
Israel
Czech Rep.
Hungary
Poland
Hungary
Bulgaria
Israel
Czech Rep.
161.3 mln €
€ 143.8 m
5
Revenues by segments
For 3 months
31 Dec 2007
For 3 months
31 Dec 2006
change
%
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Theatre operation 31 540 27 444 14,9% 124 120 99 133 25,2%
Distribution 6 431 5 670 13,4% 22 972 21 905 4,9%
DVD retail 958 740 29,5% 3 891 4 120 -5,6%
Real estate 638 778 -18,0% 10 357 18 633 -44,4%
Total revenues 39 567 34 632 14,2% 161 340 143 791 12,2%
Theater operations
12 M 2007
Real estateTheater operations
breakdown (% of total sales):
Ticket sales 49.4%
Consessions 14.5%
Advertising 13%
€ 161.3 m
Real estate
Film distribution
DVD retail
Real estate
Film
distribution
DVD retail
12 M 2006
€ 143.8 m
Theater operations
breakdown (% of total sales):
Ticket sales 46.9%
Consessions 12.44%
Advertising 9.6%
6
Cinema City outlook for 2008
Cinema chain
� Plan to open 12 cinemas with 133 screens in 5 countries scheduled for 2008.
�Hungary – Arena Plaza 22 screens + IMAX (opened 16 January 2008)
�Israel – Lev Hamifratz (23) and Modiin (6)
�Poland – Bydgoszcz (12) and Zielona Gora (10)
�Czech Rep – Pilzen (6) and Pardubice (8)
�Romania – Bacau (8), Pitesti (6), Cluj (10), Braila and Turgu-Mures (10)
� Preparations of further lease agreements for new cinemas mainly in Romania and Poland.
� Ongoing process of analysing the CC expansion oportunities mainly in Ukraine and Serbia and on the other markets
� Films on the screens: Lejdis, Rozmowy Nocą, Nie kłam kochanie, Indiana Jones, Narnia, Harry Potter, Kung Fu Panda, James
Bond
AdvertisingAdvertising
� Continue to sign further ageements with clinets on the international level covering also advertising in our Hungarian and
Romanian cinemas.
� Establishment of the NAM in the Czech Republic
Film distribution
� Forum Home Entertainment in Hungary and in the Czech Republic will continue to develop their distribution activity
� Forum Film distribution: Enchanted, Narnia
Real estate
� Progress in construction of the Mall of Plovdiv, Bulgaria
� Preparation of investment of the shopping center in Ruse, Bulagria.
� Preparation of the next real estate projects in the region
7
APPENDIX
Cinema City openings pipeline 2008-2010
Poland Hungary Israel Czech Bulgaria Romania Total CCI chain additions
(new screens additions) no of screens no of multiplexes
2008 23 23(1) 29 14 45 134 12
2009-210 84 13 20 46 171 334 29
TOTAL new screens 107 36 49 14 46 216 468 41
(1) CC Arena in Budapest with 23 screens opened on 16 January 2008
Cotroceni Park
Bucharest, Romania
Yes Planet
Rishon Lezion, Israel
Mall of Ruse
Bulgaria
CC Bydgoszcz
Poland
9
Theater operations performance factors (1)
Number of admissions in thousand
For 3 months
31 Dec 2007
For 3 months
31 Dec 2006
change
%
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Poland 2 889 2 485 16,3% 11916 9760 22,1%
Czech Rep. 321 328 -2,1% 1481 1346 10,0%
Hungary 574 577 -0,5% 2705 2559 5,7%
Bulgaria 164 184 -10,9% 669 375 78,4%
Romania 46 - 46 -
Israel 615 900 -31,7% 2996 3171 -5,5%
Total 4 609 4 474 3,0% 19813 17211 15,1%
Number of admissions - like for like
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Poland 9847 9760 0,9%
Admissions per screen in thousand* (annual basis)
For 3 months
31 Dec 2007
For 3 months
31 Dec 2006
change
%
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Poland 45,14 48,97 -7,8% 49,96 48,97 2,0%
Czech Rep. 38,91 39,76 -2,1% 44,88 39,76 12,9%
Hungary 26,7 26,84 -0,5% 31,45 26,84 17,2%
Bulgaria 50,46 56,62 -10,9% 51,46 56,62 -9,1%
Romania
Israel 21,39 26,47 -19,2% 24,97 26,47 -5,7%
Total 36,29 38,00 -4,5% 40,3 38 6,1%
* average no of screens in the period
Czech Rep. 1440 1346 7,0%
Hungary 2705 2559 5,7%
Bulgaria 328 375 -12,5%
Romania - -
Israel 2640 2826 -6,6%
Total 16 960 16 866 0,6%
10
Theater operations performance factors (2)
Average no of screens
For 3 months
31 Dec 2007
For 3 months
31 Dec 2006
change
%
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Poland 256 203 26,1% 238 203 17,2%
Average price of ticket in EUR
For 3 months
31 Dec 2007
For 3 months
31 Dec 2006
change
%
For 12 months
31 Dec 2007
For 12 months
31 Dec 2006
change
%
Poland 4,09 3,86 6,0% 4,02 3,83 5,0%
Czech Rep. 4,25 4,02 5,7% 4,34 4,28 1,4%
Hungary 3,23 3,00 7,7% 3,07 2,96 3,7%
Bulgaria 2,97 2,65 12,1% 2,79 2,57 8,6%
Romania 3,38 - 3,38 -
Israel 5,18 5,20 -0,4% 5,02 4,96 1,2%
Total 4,10 3,98 3,0% 4,02 3,92 2,6%
Poland 256 203 26,1% 238 203 17,2%
Czech Rep. 33 33 0,0% 33 33 0,0%
Hungary 86 86 0,0% 86 86 0,0%
Bulgaria 13 13 0,0% 13 13 0,0%
Romania 5 - 1 -
Israel 113 131 -13,7% 120 136 -11,8%
Total 506 466 8,6% 491 471 4,2%
No of screens at end of the period
As at
31 Dec 2007
As at
31 Dec 2006
change
%
Poland 256 203 26,1%
Czech Rep. 33 33 0,0%
Hungary 86 86 0,0%
Bulgaria 13 13 0,0%
Romania 12 -
Israel 111 146 -24,0%
Total 511 481 6,2%11
Thank you
Contact:
Cinema City InternationalCinema City International
Joanna Kotlowska
Head of Investor Relations
Tel: + 48 22 56 66 960
Fax: + 48 22 56 66 984
E-mail: [email protected]