Cineplex Galaxy Income Fund 2006 First Quarter

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Cineplex Galaxy Income Fund 2006 First Quarter
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Cineplex Entertainment Circuit
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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 other
  income
• Addition of high quality theatres in metropolitan
  markets
• Superior combined management

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Box Office Market Share
Market Share of Canadian Box Office Revenues
Source A.C. Nielsen EDI data
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Six Top-Tier Brands
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Industry
overview
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Consistent Long-Term Box Office Revenue Growth
Canadian Box Office Revenue1965 - 2006
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Industry Box Office
Source Motion Picture Theatre Associations of
Canada
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Highest Grossing Films in 2005
Star Wars Episode III 380 M Harry Potter and
Goblet of Fire 244 M War of the Worlds 234
M Wedding Crashers 209 M Charlie and the
Chocolate Factory 206 M
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Upcoming Films for 2006
X-Men May 2006
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Company
overview
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Increasing Revenue per Guest
Revenue per Guest
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Significant Other Revenue Contribution
Other Revenues( millions)
2005 excludes divestitures and includes FP for
partial yearPro forma excludes divestitures
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Synergies
Three Core Synergies

• Reducing overhead costs and adopting best
  practices
• Consolidating two head offices
• Staff reductions
• Adopting best practices
• Enhanced revenues
• Operating savings
• Media sales efficiencies and effectiveness
• Creation of Cineplex Media
• Improved purchasing and merchandising
  opportunities
• Supplier contracts
• Merchandising strategies
• Concession management

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Acquisition Synergies
Annualized Synergies ( millions)

• General and Administrative 15 15 15
• Media 5 5 9
• Operations - 5 6
• Total 20 25 30

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Looking Into the Future
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Marketing
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Growth

• Other income initiatives
• Digital pre-show network
• Cineplex Media
• Alternative programming
• Merchandising
• Theatre openings

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Digital Pre-Show Network Rollout Plan
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Cineplex Media

• Magazine publishing
• Famous Magazine, Famous Kids, Famous Quebec
• In-theatre advertising
• Magazine, onscreen, posters, monitors, buildings,
  naming rights

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Alternative Programming
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Merchandising
Concession Per Patron
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The Best Partners
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New Theatres for 2006/07
7 Theatres 71 Screens
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Financial
highlights
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Annual Total Revenue
( millions)
2005 excludes divestitures and includes FP for
partial year
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Annual Attendance
(millions)
2005 excludes divestitures and includes FP for
partial year
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Annual EBITDA
( millions)
2005 EBITDA excludes divestitures and
non-recurring/transaction related items and
includes FP for partial year
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Total Revenue Q1 2006
( millions)
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Q1 2006 Attendance
(millions)
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Q1 2006 Adjusted EBITDA
( millions)
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Credit Facilities

• Development facility
• Available - 60 million
• Working capital facility
• Available - 50 million
• Term facility
• Drawn - 235 million

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Questions