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Combination of Cineworld and Cinema City Investor Presentation - January 2014

Combination of Cineworld and Cinema City

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Page 1: Combination of Cineworld and Cinema City

Combination of Cineworld and Cinema City Investor Presentation - January 2014

Page 2: Combination of Cineworld and Cinema City

Disclaimer

This document has been prepared by Cineworld Group plc (“Cineworld”, or the “Company”) solely for use as a presentation in connection with the proposed rights issue of its ordinary shares (the “Rights Issue”) in

connection with the Company's proposed combination with the cinema business of the Cinema City International Group (the “Combination”). For the purposes of this notice, “presentation” shall mean and include the

document that follows, any oral briefing by the Company that accompanies it, and any question-and-answer session that follows such briefing. By attending or reading the presentation, you will be deemed to have

agreed to the obligations and restrictions set out below and that you are able to receive this presentation without contravention of any applicable legal or regulatory restrictions.

This presentation is strictly confidential, has been furnished to you solely for your information in connection with the Rights Issue and may not be reproduced, redistributed or disclosed in any way in whole or in part

to any other person without the prior written consent of the Company. The maintenance of absolute secrecy of the information contained in the presentation is of paramount importance to the Company, its business

and financial prospects and any unauthorised disclosure of such information by any recipient of the presentation may constitute a criminal offence and/or a violation of applicable securities laws.

The information contained in the presentation may constitute “inside information” in relation to the Company or its securities within the meaning of Part V of the Criminal Justice Act, as amended from time to time,

and disclosure of such information may constitute a criminal offence. Disclosure of such information may also constitute “market abuse” within the meaning of the Financial Services and Markets Act 2000

(“FSMA”).

Your obligations as set out in this notice will continue in respect of the information contained in the presentation until such time as, and then only to the extent that, any such information is made available to the

public. This presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or

correctness of the information or opinions expressed herein. To the fullest extent permitted by law, none of the Company, Barclays Bank plc, J.P. Morgan Securities plc, Investec Bank plc or any of their respective

subsidiaries, shareholders, affiliates, representatives, partners, directors, officers, employees, advisers or agents will be responsible or liable for any direct, indirect or consequential loss or loss of profit arising from

the use of this presentation, its contents (including the management presentations and details on the market), its omissions, reliance on the information contained herein, or on opinions communicated in relation

thereto or otherwise arising in connection therewith, and all such persons disclaim all and any responsibility or liability, whether arising in tort, contract or otherwise, which they might otherwise have in respect of this

presentation.

Barclays Bank plc, J.P. Morgan Securities plc and Investec Bank plc who are authorised in the United Kingdom by the Prudential Regulatory Authority and regulated in the United Kingdom by the Prudential Regulatory

Authority and the Financial Conduct Authority, are acting solely for Cineworld and no one else in connection with the Combination or the Rights Issue and will not regard any other person (whether or not a recipient of

this document) as a client in relation to the Combination or the Rights Issue and will not be responsible to anyone other than Cineworld for providing the protections afforded to their respective clients nor for

providing advice in connection with the Rights Issue or any other matter referred to in this presentation.

This document is an advertisement and not a prospectus. Investors or potential investors should not subscribe for or otherwise acquire any securities referred to in this document except on the basis of information in

the prospectus to be published by the Company in due course. The prospectus will include a description of risk factors in relation to any investment in the Company. The presentation does not constitute or form part

of and should not be construed as, an offer to sell or issue, or the solicitation of any offer to buy or acquire, securities of the Company in any jurisdiction or an inducement to enter into investment activity. No part of

the presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. Recipients should not construe the

contents of this presentation as legal, tax, regulatory, financial or accounting advice and are urged to consult with their own advisers in relation to such matters.

This presentation is only being made to persons in the United Kingdom who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive ("Qualified Investors"). For the purposes of this

provision, the expression "Prospectus Directive" means Directive 2003/71/EC (as amended) and includes any relevant implementing measure in each member state of the European Economic Area which has

implemented the Prospectus Directive. In addition, this presentation is exempt from the general restriction (in section 21 of FSMA) on the communication of invitations and inducements to engage in investment

activity on the grounds that it is only being made within the United Kingdom to: (a) persons who have professional experience in matters relating to investments who fall within Article 19 of the Financial Services and

Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); (b) high net worth companies and other persons to whom it may be lawfully communicated, falling within Article 49 of the Order; or (c) persons to

whom it may otherwise be lawfully distributed under the Order.

This presentation is not directed at, or intended for distribution to or use by: (i) any person or entity outside the United Kingdom; or (ii) any person or entity that is a citizen or resident of, or located in, any locality,

state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing.

This presentation does not constitute an offer to sell or the solicitation of an offer to purchase any securities in any jurisdiction. In particular, the information contained herein is not for publication or distribution,

directly or indirectly, in or into Australia, Canada, New Zealand or the United States. No public offering of the Rights Issue Shares is being made in any such jurisdiction.

Neither this presentation nor any copy thereof may be taken or transmitted or distributed, directly or indirectly, into the United States. The Rights Issue Shares have not been and will not be registered under the US

Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold, resold, or otherwise transferred,

directly or indirectly, in or into the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable

securities laws of any state or other jurisdiction of the United States.

The presentation contains certain forward-looking statements and projections with respect to strategy, operations, performance and financial outlook of the Company. By their nature, these statements involve

uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. In addition, statements regarding past trends should not be taken as a

representation that they will continue in the future. The forward-looking statements reflect knowledge and information available at the date of preparation of the presentation and, the Company believes, are based

on reasonable assumptions. The Company undertakes no obligation to update any forward-looking statements. Nothing in this presentation should be construed as a profit forecast.

2

Page 3: Combination of Cineworld and Cinema City

Agenda

Transaction Highlights

Cineworld and Cinema City

Transaction Financials and Structure

Strategic Highlights and Summary

Anthony Bloom

Mooky Greidinger

Philip Bowcock

Mooky Greidinger

3

Page 4: Combination of Cineworld and Cinema City

Transaction Highlights Anthony Bloom

Page 5: Combination of Cineworld and Cinema City

Creation of a Leading Cinema Group in Europe Executive Summary

Combination with Cinema City, the cinema business of Cinema City International N.V. (“CCI”), a

leading cinema operator in 7 countries across CEE and Israel

Creating the second largest cinema business in Europe(1)

#1 or #2 in every region the enlarged group would operate in(1)

Adds 99 multiplexes (combined: 201 sites) and 966 fully digital screens (combined: 1,852)

Cinema City 2012 revenue of £232m (Cineworld: £359m) and EBITDA of £50m (Cineworld:

£67m)(2)

Cinema City brings growth opportunities in the cinema markets of CEE and Israel

Developing economies serving a population of c.100m

Markets in which multiplex screen penetration is comparatively low, with low admissions per

capita and high population per screen relative to the UK

2009 – 2012 revenue and EBITDA CAGR of 14.2% and 18.9%, respectively

Strong pipeline of screen openings

Highly respected and experienced combined management team

Non-Executive Chairman: Anthony Bloom

CEO: Mooky Greidinger (current CEO of CCI)

CFO: Philip Bowcock

COO: Israel Greidinger (current CFO of CCI)

5

1. Based on number of screens.

2. Converted at an exchange rate of £1 = €1.2117 (2012 revenues of €281m and EBITDA of €60m). Cinema City financials are pre adjustment for new initial lease charge of €7.65m post Completion.

Page 6: Combination of Cineworld and Cinema City

Creation of a Leading Cinema Group in Europe Transaction Structure

Share purchase of Cinema City Holding N.V. from CCI based on an Enterprise Value of £503m (on

a debt-free / cash-free basis)(1)

Combination to be funded through:

Fully underwritten rights issue to raise approximately £110m

New debt facilities

Shares issued as consideration to CCI representing 24.9% of the enlarged group

Attractive financial metrics

Expected to be earnings accretive in FY2014 and substantially accretive thereafter(2)

ROIC expected to be in line with Cineworld cost of capital in year 3(2,3)

Initial cost synergies identified of £2m

Strong cash flow generation and deleveraging profile

Existing dividend policy underpinned by the future prospects of the enlarged group

6

1. Based on a Cineworld share price of 392p (being the Closing Price on 9 January 2014).

2. This statement does not constitute a profit forecast nor should it be interpreted to mean that the future earnings per share, profits, margins or cash flows of the Enlarged Group, taking into account

the effect of the Rights Issue and the Combination, will necessarily be greater than the historic published earnings per share, profits, margins or cash flows of the Cineworld Group.

3. ROIC defined as net operating profit (including synergies) after tax as a percentage of Enterprise Value. The calculation of ROIC may be different for different companies.

Page 7: Combination of Cineworld and Cinema City

7

Transaction Financials and Structure Board Structure

Board structure combines representatives from both Cineworld and Cinema City boards

Highly respected and experienced management team

Board composition:

Relationship agreement entered into between Cineworld and CCI which includes a 12 month

lock-up of any sale of shares

CCI intends to remain a long-term strategic shareholder in Cineworld

Board will comply with the UK Corporate Governance Code independence requirements

Non-Executive Chairman Anthony Bloom Cineworld

CEO Mooky Greidinger Cinema City

CFO Philip Bowcock Cineworld

COO Israel Greidinger Cinema City

Non-Executive Directors David Maloney (Senior NED)

Martina King

Scott Rosenblum

Arni Samuelsson

Eric (Rick) Senat

Peter Williams

Cineworld

Cineworld

Cinema City

New member

Cineworld

Cineworld

Independent

Independent

Non-Independent

Independent

Independent

Independent

Page 8: Combination of Cineworld and Cinema City

Cineworld and Cinema City Mooky Greidinger

Page 9: Combination of Cineworld and Cinema City

Cineworld and Cinema City Cineworld Snapshot

Strong Track Record of Delivery Cineworld Today

Cineworld is the #1 cinema group by box office revenue in UK & Ireland

with a market share of 27.3%(2)

333 359

2009 2012

56

67

2009 2012

Revenue (£m)

16.7% 18.7%

EBITDA(1) (£m)

1. EBITDA comprises of earnings before interest, tax, depreciation and amortisation, onerous lease and other non-recurring or non-cash property charges, transaction and reorganisation costs, defined benefit

scheme indexation gain and refinancing costs.

2. Source: Rentrak/EDI, based on box office revenues for the first nine months of 2013.

%

margin

9

The leading operator in the UK &

Ireland by box office revenues

102 sites with 886 screens

Fully digitalised, predominantly

leasehold estate

Page 10: Combination of Cineworld and Cinema City

Cineworld and Cinema City Cinema City Snapshot

Strong Growth Cinema City Today

Cinema City is the #1 cinema business by number of screens in CEE and Israel

156

232

2009 2012

30

50

2009 2012

Revenue (£m)(2)

19.0% 21.5%

EBITDA (£m) (2,3)

1. CCI will transfer all of its real estate assets out of the acquisition group (including seven cinema sites and one office property). Post-transaction, the enlarged group will continue to operate from these sites

on a leasehold basis.

2. EBITDA defined as earnings before interest, tax, depreciation and amortisation. Excludes any pro forma impact of rental payment for properties leased from CCI post completion.

3. Converted at an exchange rate of £1 = €1.2117 (2012 revenues of €281m and EBITDA of €60m; 2009 revenues of €189m and EBITDA of €36m).

%

margin

10

The leading operator in CEE and

Israel based on number of screens

99 multiplexes with 966 screens

Fully digitalised, leasehold estate(1)

Page 11: Combination of Cineworld and Cinema City

Overview

Cineworld and Cinema City Cinema City Overview

11

2012 Revenue Breakdown

Total revenue: £232m(2)

39%

19%

15%

11%

9%

4% 3%

Poland

Israel

Hungary

Czech Republic

Romania

Bulgaria

Slovakia

By Division

59% 20%

11%

9% 1%

Box Office

Concession

Advertising

Film Distribution

Other Income

1. Based on number of screens.

2. Converted at an exchange rate of £1 = €1.2117 (2012 revenues of €281m).

By Geography

Cinema City is the largest cinema business in CEE

and Israel (1) serving a population of c.100m

Formed in 1929 by the Greidinger family and

entered the CEE region in 1997

Operates 99 multiplexes with 966 screens across 7

countries

100% digitalised, leasehold estate

Complementary distribution and advertising arms

(Forum Film and New Age Media / Cinema Channel)

CCI, listed on the WSE and indirectly controlled by

members of the Greidinger family (c.54% holding),

will retain its Polish listing

Only the cinema business of CCI will be transferred

as part of this transaction

The real estate portfolio of CCI will not form part

of this transaction

Page 12: Combination of Cineworld and Cinema City

No of screens

Cineworld and Cinema City Cinema City History of Significant Growth

12

Expansion of

cinema chain

from Israel into

CEE

Cinema City

launched

operations in

Czech Republic

and Poland

Acquisition

of Ster Century

in Poland

Operations

commenced

in Bulgaria Operations

commenced in

Romania

Acquisition of

Kinepolis in Poland

Acquisition of

Palace Cinemas

and entry into

Slovakia

Opened

Rishon

LeZion,

Israel

Note: Figures include real estate and other activities. Transaction only includes cinema and film distribution assets and excludes real estate and other activities.

99 125 157

210 273

332 352 379 422

461 504

566

668 722

906 952 966

0

200

400

600

800

1,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Page 13: Combination of Cineworld and Cinema City

Structural growth opportunities in the cinema markets of CEE and Israel

Source: Dodona research except admissions per capita in Israel (sourced from the Israel Cinema Association). Bulgaria figures based on Dodona estimates in 2011 for 2012.

Note: Average ticket prices have been converted from local currency to £ using exchange rates from Bloomberg as at 9 January 2014. 13

Cineworld and Cinema City Structural Growth Opportunity In CEE and Israel

3.9

3.1

2.7

1.6 1.6

1.1 1.1 1.0 0.7 0.6

0.4

US

Fra

nce

UK

Ge

rma

ny

Isra

el

Cze

ch

Re

p.

Hu

ng

ary

Po

lan

d

Bu

lga

ria

Slo

vak

ia

Ro

ma

nia

8 12

17 18 13

25 26 29

33 38

81

US

Fra

nce

UK

Ge

rma

ny

Cze

ch

Re

p.

Slo

vak

ia

Hu

ng

ary

Isra

el

Po

lan

d

Bu

lga

ria

Ro

ma

nia

Median: 1.0

Median: 29

Population per Screen in ‘000s (2012) Admissions per Capita (2012)

4.8 5.3 3.4 3.2 3.7 4.2 3.7 3.0 6.3 6.4

2012 ATP (£)

5.4

Page 14: Combination of Cineworld and Cinema City

14

Cineworld and Cinema City Cinema City's Modern Cinemas

Page 15: Combination of Cineworld and Cinema City

Cineworld and Cinema City Cinema City Revenue Streams

15

Concession

(New Age

Media(2, 3))

(Forum

Film(2))

IMAX: Allows images to be displayed at a far greater size

and resolution than conventional film

Exclusive rights to develop and operate IMAX screens

across Cinema City estate(1)

4DX: High-end technology to view films in 4D (mix of air,

water, scent, motion and vibration)

Exclusive agreement with 4DX technology provider

across Cinema City estate

Strategic business line

Representing film studios as exclusive distributor in

Cinema City countries

Library of independent films

Offers on- and off-screen advertising across Cinema City

estate

Services include: Adapting advertisements to cinema

standards; Cinema-media planning; Promotional events;

Marketing materials; Auditorium sponsorship programs

In Theatre (79% of 2012

revenues)

(10 screens)

(5 screens)

Distribution (9% of 2012

revenues)

Advertising (11% of 2012

revenues)

Tailored concession offering which varies according to

tastes in countries of operation

Ongoing roll out of Coffee Corner and Candyking

throughout the estate

Box Office Modern, fully digital estate

Top cinema experience (stadium seating, large screens)

1. Excluding Slovakia and Eilat in Israel.

2. Fully owned subsidiary.

3. Cinema Channel offers advertising services in Israel, rather than New Age Media.

Page 16: Combination of Cineworld and Cinema City

Cineworld and Cinema City Strong Secured Pipeline to Drive Next Stage of Growth

16

Cineworld

Cinema City

Poland

Romania

Bulgaria

UK

Ireland

Israel

45 screens

Bulgaria

12 screens

Poland

87 screens

Development plan includes 546 screen openings across enlarged group within next 3 years

Romania

233 screens

Israel

UK & Ireland

169 screens

signed

Note: “Signed” means “lease agreement signed”.

CEE & Israel

377 screens

signed

Page 17: Combination of Cineworld and Cinema City

Transaction Financials and Structure Philip Bowcock

Page 18: Combination of Cineworld and Cinema City

Cineworld(1) Cinema City(2)

2012 Sep 2013(3) 2012 Sep 2013(3)

Revenue (£m) 358.7 303.7 231.6 172.5

EBITDA (£m) 67.1(4) 52.6 49.7 38.7

EBITDA margin (%) 18.7% 17.3% 21.5% 22.4%

Screens (#) 878 878 952 966

Admissions (m) 48.0 39.3 36.3 26.6

Average Ticket Price

(ATP) (£) 5.19 5.33 3.76 3.79

Retail Spend per Person

(SPP) (£) 1.70 1.74 1.26 1.37

18

1. Reported financials, including for Picturehouse from 6 – 26 December 2012. Average ticket price and retail spend per person excludes Picturehouse.

2. Converted at an exchange rate of £1 = €1.2117. Cinema City financials are pre adjustment for new initial lease charge of €7.65m post Completion.

3. Data representing 2013 performance through to 26 September for Cineworld and to 30 September for Cinema City.

4. 2012 EBITDA on a restated basis (IAS 19 - employee benefits) is £66.9m.

Transaction Financials and Structure Side-by-Side Comparison

Page 19: Combination of Cineworld and Cinema City

(£m) 2009(1) 2010 2011 2012

No. of screens 668 722 906 952

Revenue 155.6 193.6 220.7 231.6

growth (%) 24.4% 14.0% 4.9%

Operating costs na 155.6 186.2 195.3

EBITDA 29.5 43.9 44.1 49.7

margin (%) 19.0% 22.7% 20.0% 21.5%

Operating Profit(2) 16.2 27.5 23.1 24.5

Net cash from operating

activities na 47.1 37.2 54.6

Capex(3) na 36.4 62.0 57.9

Transaction Financials and Structure Cinema City Financial Performance

Note: Converted at an exchange rate of £1 = €1.2117. Cinema City financials are pre adjustment for new initial lease charge of €7.65m post Completion.

1. 2009 financials extracted from 2010 statutory accounts on a segmental basis.

2. Before Acquisition-related and reorganisation expenses in 2011.

3. Net of proceeds. Also includes acquisition of Palace Cinemas in 2011 (£15.2m). 19

Increase in revenues throughout

period driven by rise in cinema

openings and admissions

Acquisition of Palace Cinemas in

2011 increased operating costs

and depreciation

New cinema openings also

increased operating costs during

2011

Substantial capex investments in

new cinemas and digitalisation

Page 20: Combination of Cineworld and Cinema City

Transaction Financials and Structure Current Trading

Admissions up 3% for FY 2013 compared to

FY 2012

In October 2013, the opening of Walesa, a Polish

made film, had a positive impact on admissions in

Poland

Second instalment of the Hunger Games series saw

increased admissions in most territories in 2013

(relative to the first Hunger Games film in 2012)

Overall, Cinema City's performance is expected to be

in line with CCI's expectations for the full year

2014 film line up include several from international

blockbuster series

The Hobbit, Hunger Games, Rio, How To Train

Your Dragon and Transformers

Strong line up of Polish films expected to support

local admission levels

20

Cineworld Cinema City

FY2013 box office revenue increased by 4.0%

Admissions up 1.3% and ATP up 2.6% to £5.40

Cineworld outperformed the wider industry and grew

its market share to 27.4%

UK & Irish cinema industry experienced 0.3%

decline in gross box office revenue

Retail initiatives continued to gain momentum

9 Starbucks openings in 2013 contributing to

an increase in spend per person

Other income benefited from increased income in

advertising and 3D glasses sales

Picturehouse continued to perform in line with

expectations with new opening planned in Colchester

Overall, Cineworld anticipates that performance for FY

2013 will be in line with the Board's expectations

Solid film release programme for 2014 from

blockbuster series

Hunger Games, The Hobbit, Transformers,

Spiderman and X-Men

Four new cinema openings planned

Page 21: Combination of Cineworld and Cinema City

Transaction Financials and Structure Sources and Uses

21

Sources of Funds £m

Rights Issue (gross proceeds) 110

New Debt Facilities 316

Cineworld Equity Consideration to CCI 231

Total Sources 658

Uses of Funds £m

Transaction Consideration for Cinema

City 503

of which cash consideration 272

Refinance Cineworld net debt(1) 137

Cost and expenses 18

Total Uses 658

Funding and Financial Impact

Prudent financing structure

Transaction expected to be earnings accretive in

FY2014 and substantially accretive thereafter(2)

ROIC expected to be in line with Cineworld’s cost

of capital in year 3(2,3)

Strong cash flow generation and deleveraging

profile

Existing dividend policy underpinned by the future

prospects of the enlarged group

Initial annual charge of €7.65m to reflect

leasehold payment to CCI for property not being

transferred as part of transaction

Sources and Uses

1. Cineworld net debt as per 26 September 2013.

2. This statement does not constitute a profit forecast nor should it be interpreted to mean that the future earnings per share, profits, margins or cash flows of the Enlarged Group, taking into account the

effect of the Rights Issue and the Combination, will necessarily be greater than the historic published earnings per share, profits, margins or cash flows of the Cineworld Group.

3. ROIC defined as net operating profit (including synergies) after tax as a percentage of Enterprise Value. The calculation of ROIC may be different for different companies.

Page 22: Combination of Cineworld and Cinema City

Transaction Financials and Structure Prudent Financing

Long term loan facilities in place on Completion

maturing in 2018

Term Loan Facility of £275m (initial margin:

215bps)

RCF of £125m (initial margin: 190bps)

Facilities to be used to:

Fund, in part, cash consideration payable to

CCI

Refinance certain existing indebtedness at

Cineworld and Cinema City

Working capital purposes

Facilities provided by Barclays, HSBC, ING, Lloyds,

RBS, Santander

Financial covenants

EBITDA to net debt

EBITDAR to net finance charge

22

Rights Issue Debt Financing

Gross funds to be raised £110m

Rights issue terms 8 for 25

Closing price (9th of January 2014) 392p

Issue price 230p

149.9m current shares @ 392p £588m

48.0m new shares @ 230p £110m

197.9m total shares post rights issue(1) £698m

Theoretical ex rights price (TERP) 353p

Issue price discount to TERP 34.8%

Rights issue to be fully underwritten by Barclays,

J.P. Morgan Cazenove and Investec

Rights issue not conditional on the transaction

1. This figure excludes shares issued to CCI as consideration.

Page 23: Combination of Cineworld and Cinema City

Transaction Financials and Structure Expected Timetable of Events

2014

Announcement of the Transaction 10 January

Publication of Prospectus 10 January

Rights Issue Record Date 27 January

Cineworld General Meeting 29 January

Dealings in Rights Issue Shares, nil paid, commences 30 January

Rights Issue trading period ends 13 February

Dealings in Rights Issue Shares, fully paid, commences 14 February

CCI General Meeting 21 February

Anticipated closing March

23

Page 24: Combination of Cineworld and Cinema City

Strategic Highlights and Summary Mooky Greidinger

Page 25: Combination of Cineworld and Cinema City

886

769

942

966

983

566

1,245

25

Number of screens1

Source: Company Information.

1. Latest available figures.

2. Consists of sites in Spain, Italy, Germany, Austria and Portugal.

3. Consists of sites in Poland, Romania, Czech Republic, Hungary, Bulgaria, Israel and Slovakia.

4. Consists of sites in Germany, Portugal, Denmark, Taiwan, Poland, Latvia and Lithuania.

5. Consists of sites in France, Switzerland and the Netherlands.

+

European Cinema Operators

+ Cineworld: 886 Cinema City: 966

Strategic Highlights and Summary Creation of a Leading Pan-European Cinema Operator

Non-UK & Ireland UK & Ireland

2

4

3

5

2,187

1,852

1,335

3

Page 26: Combination of Cineworld and Cinema City

Strategic Highlights and Summary Future Strategy

26

Increasing market share in existing countries of operation

New openings – over 500 screens in the pipeline

Increasing "cinema going" habit in the new markets

Potential for growth in ticket prices

Opportunities in new territories

Continued Growth

Stadium seating

Large screens to enhance the viewing experience

High quality sound systems - the audience are "in" the movie

Great comfort and friendly atmosphere - seats, lobby and service

with a smile

Providing the Top

Cinema

Experience

Commitment to

Advanced

Technology

High quality offering, including IMAX, 4DX, D-Box

Advanced technology - laser projection, advanced sound, gaming on

screen

Technologies to enhance the overall customer experience - modern

ticket service, print at home, enter with your mobile

Page 27: Combination of Cineworld and Cinema City

Strategic Highlights and Summary Future Strategy

27

Targeting Niche

Markets

Distribution activity - strategic and effective in new/ smaller

markets, allowing for direct contact with the studios and product

Expansion of the Picturehouse concept

Support local production and alternative content

Maximising

Synergies

Combination cost synergies

Combination of know-how

Combination of experienced teams

Growing screen advertising and sponsorship opportunities

Best practice synergies (Unlimited, MyCineworld, website, VIP,

cinema design etc.)

Page 28: Combination of Cineworld and Cinema City

Strategic Highlights and Summary Creation of a Leading Cinema Group in Europe

IN 2013, CINEWORLD AND CINEMA CITY TOGETHER SERVED MORE THAN

85,000,000 ADMISSIONS

AND WILL CONTINUE TO PROVIDE FOR THESE AND THE NEW ONES YET TO COME…

THE BEST WAY TO SEE A MOVIE

28

Page 29: Combination of Cineworld and Cinema City

Q&A