August 2, 2004 Corporación Interamericana de Entretenimiento, S.A. de C.V

August 2, 2004

Corporación Interamericana de Entretenimiento, S.A. de C.V.

August 2, 2004

Business Model & Strategy

Operating Divisions

Financial Results for 2Q2004

Operating Results for 2Q2004 and 2004 Outlook

Content

2

August 2, 2004

Leading “out-of-home” entertainment company in Latin America, Spain and the U.S. Latin markets

51 million customers in 2003

Best of breed entertainment for every budget:

Concerts, theater, sporting, cultural and corporate events

Amusement / educational parks

Sports Books and Gaming

Popular fairs, exhibitions and conventions

Vertical Integration = multiple revenue streams and minimal risks

Significant commercial revenue from proprietary entertainment and advertising properties

Expertise organized by country and business areas = high manager accountability

Free cash flow now increasing after a period of capital intensive growth

CIE today

3

August 2, 2004

Revenues 1H 2004: .5%Live Entertainment Advertising Sponsorships

Revenues 1H 2004: 83%Live EntertainmentLas Americas Center Advertising Sponsorships Amusement Parks

Revenues 1H 2004: 4%Live EntertainmentAdvertising Sponsorships

Revenues 1H 2004: .2%Amusement Parks (Parque El Salitre)

Revenues 1H 2004: 10%Live EntertainmentAdvertising Sponsorships

Revenues 1H 2004: 2%Live EntertainmentBuenos Aires ZooAdvertising SponsorshipsRadio Stations in Buenos Aires

United States (2001)

Mexico (1990)

Argentina & Chile (1997-98)

Spain (1999)

Colombia (1998)

Brazil (1999)

Geographical expansion

4

August 2, 2004

$35 Additional Revenue StreamsUS$100 in Box Office Receipts

ExpensesUS $38

ArtistsUS $40

PromotionUS $10

Venue US $12

SponsorshipUS $27

TicketingUS $7

F&B/MerchandisingUS $1

Food & Beverages

Ticket Sales

Venue Operator

Sponsorship

Promoter+

+

+

+

0% 100%Maximum attendance required to breakeven

49%49%

51%51%

82%82%

54%54%

65%65%

Vertical integration = maximizes revenues / minimizes risksEnables CIE to generate US$35 in additional revenue for every US$100 in box-office receipts

Competitive advantages

5

August 2, 2004

We have become an extraordinary alternative for connecting brands such as Coca-Cola, with segmented markets

Radio

Music

Amusement Parks

Corporate Events

Cineminutos

Ticketing

Naming Rights

Overpasses

Venues

Ability to use an advertising property to

highly target the advertising customer

Audience Measurement

Advertising properties

6

August 2, 2004

Expand target audiences through new entertainment forms and price niches

Mexico, Brazil, Argentina: lower priced fairs / gaming / touring artists

Spain: higher priced musical theater

U.S. market: “real play” parks (introduction of Wannado City™)

Increase utilization of existing venues through new attractions and facility upgrades

Exploit proprietary Sports Book and Gaming opportunities in Mexico

Strengthen commercial sales force

Control production costs through use of local talent and production labor

Leverage strategic partner synergies to increase EBITDA and minimize project risk

Optimize project financing (debt, equity, sponsorships) to maintain healthy balance sheet

Growth and operating strategy

7

August 2, 2004

Content


Operating Divisions



8

August 2, 2004

The Company has three operating divisions with the following businesses:

Live Entertainment Mexico

Las Américas

Amusement Parks

International

Entertainment

Sponsorships

Cineminutos

Billboard Advertising / Overpasses

Telemarketing

Commercial

Ticketing Mexico

Ticketing Brazil

Ticketing Argentina

Ticketing Chile

Services

3 Divisions

78% 12% 10%

Revenue Contr.

Operating divisions

9

August 2, 2004

Strategic JV with Televisa

Partnerships/JV with renowned groups, thus securing CIE’s leading position.

Leading live entertainment company in Mexico

Operates 12 live entertainment venues in Mexico; installed capacity 686,00 seats

Musical, theatrical, sporting, family / cultural and corporate events

Diversified array of tailored productions

3,391 live events produced in 2003; 5.6 million attendees

Opportunities:

Utilize assets to build additional revenue streams

New Sporting events: Nautical Racing, Motor Cross, Monster Trucks, Beach

Volleyball, Triathlons, etc

Strongest concert calendar in years (for 2004)

Leverage synergies afforded by Televisa relationship

Auto racing

Entertainment Division – Live entertainment Mexico

10

August 2, 2004

Mexican government concessions

Horse race track 25 years

Surrounding areas 50 years

License to operate 45-off track betting centers / number based games

Horse race track attracted 600,000 fans in 2003

Centro Banamex, the largest exhibition and convention center in Latin America, held 47 expositions in 2003 that attracted over 2.0 M visitors

28 Sports Book / Yaks now open in prime retail locations in Mexico

One of the only companies in Mexico to have multiple gaming licenses

3,391 live events produced in 2003; 5.6 M attendees

Opportunities:

Granja Las Américas children’s park - $7.5 m projected revenues annually

Ten new Sports Books / Yaks ($25 - $30 million total investment, 2004)

Development to be supported by strategic and financial partners

Entertainment Division – Las Américas

11

August 2, 2004

CIE is Latin America’s leading operator / developer of amusement parks

Number of attendants in 2003 reached over 10 million

Selective incorporation of amusement parks, whose facilities and price make them appropriate for low- and medium – level incomes

Operation of 10 amusement parks in 10 cities

Mexico City (5), Acapulco (1), Guadalajara (2)

Bogotá (2)

Development of Wannado City™ in Miami Florida

Opportunities:

Wannado™ is the first “real-play” park in the world, combining entertainment and educational experiences for children with retail, restaurant and sponsor-based attractions

Investigating opportunities for Wannado™ roll-out throughout U.S.

Enhancing Salitre Mágico in Colombia with new attractions and sponsorships

Entertainment Division – Amusement Parks

12

August 2, 2004

Operates live entertainment venues in Brazil (4), Argentina (2) and Spain (3)

1,796 live events produced in 2003; 2.3 M in attendance

Operates the Buenos Aires Zoo and eight radio stations in Argentina

Production of live events in the Latin U.S. market

Achievements:

Formed alliance with Stage Holding in Amsterdam (theatrical rights)

Successful local productions in medium-sized cities in Brazil and Argentina

Healthy attendance at Buenos Aires Zoo and live events in Argentina

Opportunities:

Cats, Phantom of the Opera and Cabaret: major Broadway-type productions

in Madrid, Spain

Evaluate new Spanish markets for theatrical productions

Expand local productions in Brazil and Argentina

Divest AM radio stations in Argentina

Entertainment Division – International

13

August 2, 2004

Sponsorships of CIE live events / naming rights for CIE venues

Dynamic advertising in 1,342 movie theaters (“Cineminutos”)

475 Billboard sponsorships on 132 pedestrian overpasses

Rotating advertising for 12 Mexican soccer teams

Indoor and outdoor advertising at airports

Telemarketing services (in partnership with Sitel Corporation)

Achievements:

Consolidation of all commercial activities into one division= market leverage

141 new movie theaters / 16 new overpasses (58 new billboards)

Opportunities in 2004:

Additional movie theaters / additional overpasses

Advertising space on the uniforms of First Division soccer teams

Expand airport advertising

Promote comprehensive sponsorship packages

Commercial Division – Advertising Properties

14

August 2, 2004

JV w/ Ticketmaster for operations in Mexico (1991), Argentina & Chile (1998) and Brazil (2000)

Leading ticketing business in the region, with medium- to long-term contracts with venues, promoters and events

Operations through call centers, box offices, internet and outlets in the region

* On-line activities are currently carried on in Mexico and Brazil.

Outlets:Mexico

MixUp Liverpool Music&More Mr.CD Farm. Ahorro Discolandia

Argentina Tower Records

Country Community Start-up

Mexico City *MonterreyGuadalajara *

Mexico 199219932001

Buenos Aires Argentina 1998

Santiago 1998Chile

Sao Paulo *Rio de JaneiroSalvador

200020012001

Brazil

Chile Feria del Disco Multitienda

Falabella Almacenes Paris

Brazil Tiendas Levis Riachuelo Librerias FNAC Librerias

Saraiva

www.ticketmaster.com.mx www. ticketmaster.com.br

Services Division – Ticketing

15

August 2, 2004 16

Content


Operating Divisions



August 2, 2004

Operative Highlights

Events Live Racetrack (racing days)

Ticketmaster Tickets (Mil.) Mexico South America Total

Attendence (Mil. of people) Live Events Amusement Parks Hipódromo de las Américas

Sports Books & Yaks Per capita consumption (Ps.) Shops Pedestrian Overpasses Structures in operation Billboards

Cineminutos Movie Theaters

1,329

52

3.21.24.3

1.6 2.10.2

613 19

123467

1,261

1,42339

3.11.44.5

1.91.90.1

567 28

189667

1,356

2,489

84

5.92.98.8

3.14.20.3

598

2,577

73

6.63.8

10.4

3.33.60.3

634

2Q03

2Q04 1H03 1H04

7.1%(25.0%

)

(1.9%)20.9%4.3%

19.9%(9.0%)(24.2%

)

(7.6%) 47.4%

53.7%42.8%

7.5%

% Chg

3.5%(13.1%

)

12.0%29.8%17.9%

6.1%(15.2%

)(15.0%

)

(5.7%)

%Chg

17

August 2, 2004

Financial Highlights

Revenue

EBITDAEBITDA Margin

Operating Income

CCF

Current Assets Assets L.T. & Other AssetsTotal Assets

DebtTotal Liabilities

Stockholders’ Equity

2Q03 2Q04 1H03 1H04

1,673

38823.2%

273

38

4,41110,13614,547

4,5006,455

8,091

1,932

43722.6%

311

115

4,5559,939

14,494

4,8817,351

7,143

15.5%

12.7%(57 pb)

14.0%

204.8%

3.3%(1.9%)(0.4%)

8.8%13.9%

(11.7%)

3,109

71923.1%

499

89

3,541

79722.5%

545

219

13.9%

10.9%(61 pb)

9.3%

144.8%

% Chg

% Chg

Note: Figures are expressed in millions of Mexican pesos as of June 2004

18

August 2, 2004

Revenue by Division

2Q03 2Q04 1H03 1H04

EntertainmentCommercialServices

75.6%13.8%10.5%

77.5%12.4%10.2%

75.6%13.7%10.7%

76.4%13.1%10.5%

1,266

1,496

232 240176 196

0 .0

2 0 0 .0

4 0 0 .0

6 0 0 .0

8 0 0 .0

1,0 0 0 .0

1,2 0 0 .0

1,4 0 0 .0

1,6 0 0 .0

E ntert. C o mmerc. Servic .

2 Q 0 3 2 Q 0 4

2,350

2,704

426 464333 372

0 .0

50 0 .0

1,0 0 0 .0

1,50 0 .0

2 ,0 0 0 .0

2 ,50 0 .0

3 ,0 0 0 .0

E ntret. C o mmerc. Servic .

1H0 3 1H0 4

Revenue Distribution by Division


+11%+3%

+18%

+12%+9%

+15%

* The total may not add up to 100% due to rounding

19

August 2, 2004

EBITDA and EBITDA Margin

266

249

282

307316

324317

330

347

334

357 359

423

331

387

398

436

360

437

22.6%

25.9%25.8%

24.8%24.4%

24.4%

24.2%

23.5% 23.2%

23.1%23.5%

23.6%23.1%

23.1%

23.1%23.2%22.9% 22.5%

22.4%

220

270

320

370

420

470

4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04

Million

s o

f p

esos a

s o

f Ju

n.0

4

0%

5%

10%

15%

20%

25%

30%

EB

ITD

A M

arg

in

EBITDA Margin

Units openedUnits in operation

11

23

14

15

16

39

110

111

415

419

221

223

225

328


20

August 2, 2004

Debt

As of June 2004, CIE’s debt was Ps.4,881 million. Of this, 54% is in pesos, 43% is in UDIS, and the remainder is in other currencies

Holding75.0%

AMH21.9%

Pa rques1.3%

Int.1.7%

S .T.18.8%

L.T.81.2%

- Allocation -

- Maturities -

Debt Bank Loans Securitized Loans Total

Cash

Net Debt

Interest Paid

Stockholders’ Equity

EBITDA 2Q04EBITDA LTM

Ratios EBITDA-to-Interest Expense Net Debt / Stockholders’ Equity Net Debt / EBITDA LTM

2,2132,6684,881

641

4,240

111

7,143

4371,633

3.92x0.59x2.60x

Jun.04

21

August 2, 2004

Content


Operating Divisions



22

August 2, 2004

Entertainment Division – Live Entertainment Mexico

Live Events : “Vive Latino” and Latin events (p.e. Chayanne and Bosé) drive 2Q04 New family-style events (p.e. Tiany Circus and Holiday on Ice) Repositioning of multi-annual cultural events:

“España Baila Flamenco”, “Tanguera”, “Carmina Burana”

Theater: renewal of the theatrical offering Joseph and his Amazing Technicolor Dreamcoat premiered in April at the Centro Cultural

Telmex Les Miserables ended its 22 month season in August; will be replaced by Fiddler on the

Roof

Fairs: focused on consumption geared towards the low-income market 2Q04: “La Feria de la Ciudad de Mexico” (April) 3/4Q04: Pachuca and Texcoco in Sept/Oct and Oct/Nov 2004, respectively

Automotive Sports Racing: 2004 Advances “Desafio Corona 2004”: NASCAR-style cars Gran Premio de México Telmex Gigante (Nov. 5-7, 2004);

advanced ticket sales begin in August

23

August 2, 2004

Entertainment Division - Las Américas

Books and Yaks: opening of units in Villahermosa, Querétaro and Torreón for a total of 28 units in 2Q04; six new units in 2H04 Tonalá

Hermosillo Ciudad Neza Morelia

Granja Las Américas: recent opening (July 3, 2004)

1.4 Hectares and 9,000 m2 of construction; an extreme sports area and 21 theme pavillions An investment of Ps.82.3 million, primarily covered by sponsorships Able to receive 3,000 visitors per day in two shifts; 540,000 visitors budgeted for the first

year of operations

Chihuahua Monterrey

24

August 2, 2004

Entertainment Division - Amusement Parks

Wannado City™ Miami initiates operations on August 12, 2004

Eleven confirmed sponsorships by the end of 2Q04; three more in progress.

Divertido Mexico City: closed in October 2004; partial relocation of assets to other parks

Upcoming attractions in parks in Mexico City: the Coca-Cola Tower at La Feria, and Globo Nestlé at Planeta Azul

Naucalli Mágico: negotiations for the park closing completed

25

August 2, 2004

Entertainment Division - International

Argentina:

Exclusive operations for 10 years in the Obras Sanitarias Arena(5,500 seats) in Buenos Aires

Brazil:

Renovation of the theatrical content with the departure of La Flor de mi Buen Querer and the opening of Chicago in Sao Paulo

Spain:

Trend towards a slow recuperation in attendence at theatrical productions after March 11, 2004 Phantom of the Opera ended its season; Cats and Cabaret continue running through

2005; Mama Mía runs through the end of 2004

- Obras Sanitarias -

26

August 2, 2004

Commercial Division - Overpasses

Acquisition of Keenneex, Mexico’s third largest pedestrian overpass operator; Publitop ensures its position as a leader in the country Publitop’s capacity increased 43% to 218 concessions and 189 installed

structures as of June 2004:

Jun.04

Dec.03Publitop Monterrey Tlalnepantla Coacalco Nuevo Laredo Tonalá Puebla S.L.P. Mazatlán Total Keenneex Aguascalientes Cuernavaca Zapopan El Salto Chapala Total

Grand Total

7233

98

13271

145

13

3541

44

189

StructuresJun.04 Dec.03

Concessions

7029

986271

132

------

132

8233

91013

271

157

63

4741

61

218

8233

910

8271

152

------

152

Chg.Chg.

2.9%13.8%

N.A.N.A.

116.7%N.A.N.A.N.A.

9.9%

N.A.N.A.N.A.N.A.N.A.N.A.

43.2%

N.A.N.A.N.A.N.A.

62.5%N.A.N.A.N.A.

3.3%

N.A.N.A.N.A.N.A.N.A.N.A.

43.4%

27

Documents

August 2, 2004 Corporación Interamericana de Entretenimiento, S.A. de C.V