UNIC UPDATE ON CINEMA EXHIBITION IN 2013

5 February 2014Press Release for Immediate PublicationThe International Union of Cinemas (UNIC), representing cinema exhibitors and their national trade associations across 29 European territories, today released an update on box office revenues, cinema admissions and other sector indicators for 2013. While data for a number of countries is based on estimates, the overview presents a first assessment of the development of the sector over the last year (2012–2013). Final data on the performance of each territory will be released in Spring 2014.

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2/9 5 February 2014 Press Release UNIC Update on Cinema Exhibition in 2013

Moderate drop in box office and ad-missions across UNIC territories after strong previous year results 2013 was characterised by a moderate drop in box office revenues and cinema admissions across UNIC territories. This follows a period when the European cine-ma exhibition sector – despite significant regional differences – benefited from ge-nerally positive results in 2012. In 2013, total box office revenues declined by 1,9 per cent and admissions declined by 1.2 per cent for territories where preliminary data has been made available.

Weaker results in some territoriesFrance, the UK and Germany witnessed slightly less successful performance in 2013 after impressive results in 2012. Box office revenues decreased by 1.6 per cent in the UK and 1 per cent in Germany. Admissions dropped by 5.3 per cent for France and by 4 per cent for both the UK and Germany. Smaller territories across Western Europe – with the exception of the Netherlands (box office + 1.8 per cent; admissions + 0.7 per cent) – experienced similar developments.

1. CINEMA-GOING IN 2013

Box Office 2012–13 (Million Euro)

-16,3 %

0 500 750 1000 1250250

Austria

Czech Republic

Denmark

Estonia

Finland

France

Germany

Ireland

Israel

Italy*

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Russia

Spain

Sweden

Switzerland

Turkey

UK

125,9123,1 -2,2 %

1.335,31.314,6

1022

96

185,9200,1

201,9175,7

1.0231.033

186,1

507606,1

46,451,8 +11,6 %

+1,5 %

-11,4 %

-13 %

+7,7 %

-1,6 %

+6,4 %

-1 %

75 -7,4 %

2012 2013

-11,5 %

172,3159,6

7465,5

-7,4 %

132,3130,5

249,4245

9,49,1 -3,4 %

+1,8 %

-1,3 %

+12,6 %11,713,1

+1,5 %618,4

140,5 -4 %

11,411,8 +3,3 %

146,4

81

1.311

107,5

94,6

609

961

210,1

Source: UNIC members 2013/2012Complementary information from CZ (Unie Filmovych Distributoru), EE (Eesti Filmi Instituut & Baltic Films Co- operation Platform), LT (Lietuviu Filmu Centras & Baltic Films Co-operation Platform), PL (Polski Instytut Sztuki Filmowej) and PT (Instituto do Cinema e do Audiovisual). *Cinetel: 90 per cent of the market; SIAE global results to be published in June 2013

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3/9 5 February 2014 Press Release UNIC Update on Cinema Exhibition in 2013

2013 Success storiesSeveral ‘success stories’ stood out in 2013, showing how varied the situation was across UNIC territories. Russia saw another period of sustained growth, with an increase in box office revenues of 6.4 per cent and admissions growth of 12 per cent. The Turkish and Israeli markets also grew by 7.7 per cent and 1.5 per cent in box office revenues as well as by 13.5 per cent and 7.5 per cent in admissions re-spectively. It is these growth markets that helped ensure that cinema exhibition across UNIC territories overall remained robust in 2013.

Italy upbeat, dramatic results in SpainWhile most southern European territories continued to go through very difficult times the Italian exhibition sector bounced back with an increase in box office revenues (1.5 per cent) and a healthy increase of 6.7 per cent in admissions. Spain, on the other hand, continued to suffer from ec-onomic difficulties and ill-advised govern-ment tax initiatives. Box office revenues decreased by 16.3 per cent and admissions decreased by 15.4 per cent. +7,8 %

-15,4 %

+6,7 %

25050 100 150 200

Admissions 2012–13 (Million)

Austria

Belgium

Czech Republik

Denmark

Estonia

Finland

France

Germany

Ireland

Israel

Italy*

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Russia

Spain

Sweden

Switzerland

Turkey

UK

15,6

2012 2013

15 -4,3 %

172,5165,5

168,8189

1314

44,350,3

12,111,8

15,414,7

15,913,7

30,630,8

135,1129,7

16,518,4

1,31,2

203,6192,8

76,9

97,4

14,2-3,3 %

+12 %

-4 %

-10,1 %

-14 %

+13,5 %

-4 %

-8,9 %

21,9

-5 %

-5,3 %

-3,9 %

8,67,8

+7,5 %

+0,7 %

-2,7 %

13,7

0

11,2-1,1 %11,1

2,6

3

-1,1 %2,6

3,3

91,3

3836 -5,2 %

13,812,5 -9,4 %

90,9

Source: UNIC members 2013/2012 Complementary information from CZ (Unie Filmovych Distributoru), EE (Eesti Filmi Instituut & Baltic Films Co- operation Platform), LT (Lietuviu Filmu Centras & Baltic Films Co-operation Platform), PL (Polski Instytut Sztuki Filmowej) and PT (Instituto do Cinema e do Audiovisual).*Cinetel: 90 per cent of the market; SIAE global results to be published in June 2013

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4/9 5 February 2014 Press Release UNIC Update on Cinema Exhibition in 2013

Average 1.6 visits to the cinema per yearThe average annual number of cinema visits decreased marginally by 0.1 to 1.6 visits per capita across UNIC territories in 2013. In growth markets such as Israel (1.7), Italy (1.6), Russia (1.3) and Turkey (0.7) cinema-going increased. The rate was highest in Ireland (3.2). While admissions per capita remained stable in Denmark (2.5) and the Netherlands (1.8), it slightly decreased in other UNIC territories.

Admissions per capita 2013

3 3,50 0,5 1 1,5 2 2,5

Austria

Czech Republic

Denmark

Estonia

Finland

France

Germany

Ireland

Israel

Italy*

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Russia

Spain

Sweden

Switzerland

Turkey

UK

1,8

1,6

2,9

1,3

2,5

1,8

3,2

0,7

1,1

2,2

1,6

1,6

1,4

2,3

1,7

2,6

1,7

2

1,1

0,9

1,2

1,7Source: UNIC members 2013/2012 Complementary information from CZ (Unie Filmovych Distributoru), EE (Eesti Filmi Instituut & Baltic Films Co- operation Platform), LT (Lietuviu Filmu Centras & Baltic Films Co-operation Platform), PL (Polski Instytut Sztuki Filmowej) and PT (Instituto do Cinema e do Audiovisual).*Cinetel: 90 per cent of the market; SIAE global results to be published in June 2013

5/9 5 February 2014 Press Release UNIC Update on Cinema Exhibition in 2013

2. PERFORMANCE OF INDIvIDUAL FILMS AND LOCAL FILMS’ SHARELeading at the international box officeAcross UNIC territories several productions from the US performed remarkably well at the box office. Amongst these were The Hobbit: The Desolation of Smaug, Frozen, Despicable Me 2, Fast & Furious 6, The Hun-ger Games: Catching Fire and Iron Man 3.

Stable local films’ share in 2013, led by Turkey and FranceBased on current data the market share of national films across UNIC territories re-mained stable from 2012 to 2013. Turkey led with a local share of 47 per cent and 9 Turkish films that were the most popular at the box office. France, which saw a de crease compared to 2012, still accounted for 33.3 per cent of admissions for French films.

Scandinavian success storyScandinavian territories maintained their reputation for producing successful local content. Local films dominated the charts in Norway, Denmark and Finland. Denmark stood out in particular, with four Danish films amongst the Top 5, led by The Kee-per of Lost Causes and The Hunt.

Positive trends in Italy, the Czech Republic and RussiaItaly’s positive results can partly be ex-plained by the success of Sole a Catinelle. In the Czech Republic, the increase of 11.7 per cent in box office returns can also be ascribed to the success of local films. In Russia, Stalingrad became the highest grossing film of all time.

Non-national European films: the success of French cinema abroadIn Portugal, La Cage Dorée – a French film about Portuguese immigrants – is the only non-national European film to have achiev-ed strong box office results. French cine-ma already accomplished this feat last year in Germany with Intouchables.

Source: UNIC members, 2013/2012Complementary information from CZ (Unie Filmovych Distributoru), EE (Eesti Filmi Instituut & Baltic Films Co- operation Platform), LT (Lietuviu Filmu Centras & Baltic Films Co-operation Platform), PL (Polski Instytut Sztuki Filmowej) and PT (Instituto do Cinema e do Audiovisual). * Cinetel: 90 per cent of the market. SIAE global results to be published in June 2013** The definition of UK film used is that employed by the British Film Institute for categorisation purposes.

0 20 30 4010

Austria

Denmark

Estonia

Finland

France

Germany

Israel

Italy*

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Russia

Spain

Sweden

Switzerland

Turkey

UK**

UNICAverage

4,43

18

32

18,7

1518,5

4,9

7,6

5,2

5,9

4847

22,818

8,4

15,820,5

n/d

n/d

18

21,725

13,2

33,340

14

3127

28

+65,3% 24

26,2

28

Local/national films’ share 2012–13 (in % of adm.)

50

2012 2013

29

2,516,7

3,45,2

19,9

18

5

6/9 5 February 2014 Press Release UNIC Update on Cinema Exhibition in 2013

TOP 1 TOP 2 TOP 3 TOP 4 TOP 5

Austria The Hobbit: The Desolation of Smaug

Django Unchained The Hangover Part 3

Fast & Furious 6 Despicable Me 2

Czech Republic Babovresky The Hobbit: The Desolation of Smaug

The Smurfs 2 Pribeh Kmotra Ctyrlistek ve sluzbach krale

Denmark The Keeper of Lost Causes

The Hunt The Hobbit: The Desolation of Smaug

My Sisters Children in Africa

All for Two

Estonia Despicable Me 2 The Croods Fast & Furious 6 Monsters University

Turbo

Finland 21 Ways to Ruin a Marriage

The Hobbit: The Desolation of Smaug

Despicable Me 2 Rolli and the Golden Key

The Hunger Games: Catching Fire

France Despicable Me 2 Iron Man 3 Django Unchained Gravity Les Profs

Germany The Hobbit: An Unexpected Journey

Fack Ju Göthe The Hobbit: The Desolation of Smaug

Django Unchained Frozen

Italy Sole a Catinelle Despicable Me 2 Il Principe Abusivo Iron Man 3 Fast & Furious 6

Lithuania valentine Alone Despicable Me 2 Women Lie Better. Kristina

Croods Fast & Furious 6

Luxembourg Frozen Despicable Me 2 Django Unchained The Hangover Part 3

The Hunger Games: Catching Fire

Netherlands The Hobbit: The Desolation of Smaug

Despicable Me 2 The Hunger Games: Catching Fire

verliefd op Ibiza Fast & Furious 6

Norway Solan og Ludvig – Jul i Flåklypa

The Hobbit: The Desolation of Smaug

The Hunger Games: Catching Fire

Iron Man 3 Fast & Furious 6

Poland The Hobbit: An Unexpected Journey

Drogowka The Hobbit: The Desolation of Smaug

Frozen Walesa

Portugal La Cage Dorée Fast & Furious 6 Frozen Despicable Me 2 7 Pecados Rurais

Russia Stalingrad Iron Man 3 Thor: The Dark World

Despicable Me 2 Fast & Furious 6

Spain The Croods The Hobbit: The Desolation of Smaug

Despicable Me 2 World War Z Frozen

Sweden The Hobbit: The Desolation of Smaug

The Hunger Games: Catching Fire

Hundraårungensom klevt ut genom fönstret och försvann

Monica Z Despicable Me 2

Switzerland Despicable Me 2 Django Unchained Fast & Furious 6 The Hangover Part 3

The Hobbit: The Desolation of Smaug

Turkey Dugun Dernek CM101MMXI Celal ile Ceren Kelebegin Ruyasi Selam

UK Despicable Me 2 Les Miserables Iron Man 3 The Hobbit: The Desolation of Smaug

The Hunger Games: Catching Fire

Source: UNIC members 2013/2012 Complementary information from CZ (Unie Filmovych Distributoru), EE (Eesti Filmi Instituut & Baltic Films Co-operation Platform), LT (Lietuviu Filmu Centras & Baltic Films Co-operation Platform), PL (Polski Instytut Sztuki Filmowej), PT (Instituto do Cinema e do Audiovisual) and RU (Movie Research Company).

Local films European non-national films

7/9 5 February 2014 Press Release UNIC Update on Cinema Exhibition in 2013

3. DIGITAL ROLL-OUT

Digitisation across all UNIC territories in 2013 reached 84 per cent. The number of countries that are either fully digitised or are in the final stages of completing this process is growing steadily. Belgium, Denmark and Finland are 100% digitised. Austria, France, Germany, the UK, Israel and Switzerland are expected to follow soon, having crossed the 90 per cent mark in 2013. Sweden is catching up rapidly. Except for Italy, where significant progress was made in recent months, digitisation remains a challenge for most Southern European territories, with Spain and Turkey lagging significantly behind.

Source: UNIC members, 2013/2012 Complementary information from CZ (Unie Filmovych Distributoru), EE (Eesti Filmi Instituut & Baltic Films Co- operation Platform), LT (Lietuviu Filmu Centras & Baltic Films Co-operation Platform), PL (Polski Instytut Sztuki Filmowej) and PT (Instituto do Cinema e do Audiovisual).*Spain: up to 9 May 2013. Next update to be released in spring/summer.

Digital roll-out and 3D share in 2013

Total digital roll-out (%) Total 3D share (%)

0 050 50100 100

Austria

Belgium

Denmark

Estonia

Finland

France

Germany

Israel

Italy

Lithuania

Luxembourg

Netherlands

Norway

Poland

Russia

Spain*

Sweden

Switzerland

Turkey

UK

96,5 57,5

64,7

96,2 51,9

56,3

29,5

23,7

21,7

100 58,1

64,7

98,2

99,3 42,5

100 29,9

90 65

84,1 43,7

73

n/d n/d

n/d

77,7 63,5

74,4

46,3

26,9

24,2

50,6

95,6 50,4

100

100

100

31,843,9

100

8/9 5 February 2014 Press Release UNIC Update on Cinema Exhibition in 2013

4. SCREEN DENSITy

The number of total cinema screens in UNIC territories remained stable in 2013. On average, UNIC territories for which data was available counted 59 screens per million inhabitants. Growth in central Europe and Russia continued at a slower pace as the market came closer to saturation. In Spain, general economic conditions resul-ted in the closure of cinemas which trans-lated into the greatest reduction in screen density amongst UNIC members.

Source: UNIC members, 2013/2012 Complementary information from CZ (Unie Filmovych Distributoru), EE (Eesti Filmi Instituut & Baltic Films Co- operation Platform), LT (Lietuviu Filmu Centras & Baltic Films Co-operation Platform), PL (Polski Instytut Sztuki Filmowej) and PT (Instituto do Cinema e do Audiovisual).*Spain: screens data up to May 9th 2013. FECE will release more informations in spring/summer.

+2,9 %

+2,7 %

-1,2 %

-6,1 %

+2,1%

+3,5 %

+2,9 %

-5,6 %

-3,8 %

+4,6 %

0 60 80 10020 12040

Austria

Belgium

Denmark

Estonia

Finland

France

Germany

Israel

Italy

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Russia

Spain

Sweden

Switzerland

Turkey

UK

64

45

8583

8486

8681

75

34 -6,1%

63 -4,1 %

-2,6 %

49

104105

67 -4,6 %

27

60

51

33

5657

6565

51

54

53

51

Screen density per million inhabitants 2012–13

+2,7 %

2012 2013

67

72

36

3232

66

48

22

70

26

62

n/d

n/d

n/d

n/d

9/9 5 February 2014 Press Release UNIC Update on Cinema Exhibition in 2013

UNIC – the International Union of Cinemas – represents the interests of cinema operators and their trade associations in 29 countries in the European Union along with Norway, Russia, Turkey, Switzerland and Israel (http://www.unic-cinemas.org). Together these territories account for around 33,000 screens and represent one fourth of the global cinema exhibition market.

For more information contact:

International Union of Cinemas (UNIC)Jan Runge10–11 Avenue des Arts1210 BrusselsBelgium

jrunge@unic-cinemas.org +32 2 880 99 39

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