Corporación Interamericana de Entretenimiento, S.A. de C.V.
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Corporación Interamericana de Entretenimiento, S.A. de C.V. Content. Business Model & Strategy Operating Divisions Financial Results for 2Q2004 Operating Results for 2Q2004 and 2004 Outlook . 2. CIE today.

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2q 2004 presentation click here to download

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


2q 2004 presentation click here to download

Content

  • Business Model & Strategy

  • Operating Divisions

  • Financial Results for 2Q2004

  • Operating Results for 2Q2004 and 2004 Outlook

2


2q 2004 presentation click here to download

CIE today

  • 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

3


2q 2004 presentation click here to download

Geographical expansion

United States (2001)

Spain (1999)

Revenues 1H 2004: .5%

  • Live Entertainment

  • Advertising Sponsorships

Revenues 1H 2004: 4%

  • Live Entertainment

  • Advertising Sponsorships

Mexico (1990)

Revenues 1H 2004: 83%

  • Live Entertainment

  • Las Americas Center

  • Advertising Sponsorships

  • Amusement Parks

Colombia (1998)

Revenues 1H 2004: .2%

  • Amusement Parks (Parque

    El Salitre)

Argentina & Chile (1997-98)

Brazil (1999)

Revenues 1H 2004: 2%

  • Live Entertainment

  • Buenos Aires Zoo

  • Advertising Sponsorships

  • Radio Stations in Buenos Aires

Revenues 1H 2004: 10%

  • Live Entertainment

  • Advertising Sponsorships

4


2q 2004 presentation click here to download

US$100 in Box Office Receipts

Venue

US $12

Promotion

US $10

Artists

US $40

Expenses

US $38

82%

Promoter

+

65%

Sponsorship

+

54%

Venue Operator

+

51%

Ticket Sales

+

49%

Food & Beverages

Maximum attendance required to breakeven

0%

100%

Competitive advantages

Vertical integration = maximizes revenues / minimizes risks

Enables CIE to generate US$35 in additional revenue for every US$100 in box-office receipts

$35 Additional Revenue Streams

Sponsorship

US $27

Ticketing

US $7

F&B/Merchandising

US $1

5


2q 2004 presentation click here to download

Advertising properties

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

Music

Amusement Parks

Cineminutos

Audience Measurement

Naming Rights

Ability to use an advertising property to highly target the advertising customer

Overpasses

Venues

Ticketing

Corporate Events

Radio

6


2q 2004 presentation click here to download

Growth and operating strategy

  • 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

7


2q 2004 presentation click here to download

Content

  • Business Model & Strategy

  • Operating Divisions

  • Financial Results for 2Q2004

  • Operating Results for 2Q2004 and 2004 Outlook

8


2q 2004 presentation click here to download

Operating divisions

The Company has three operating divisions with the following businesses:

3 Divisions

Entertainment

Commercial

Services

Live Entertainment Mexico

Las Américas

Amusement Parks

International

Sponsorships

Cineminutos

Billboard Advertising / Overpasses

Telemarketing

Ticketing Mexico

Ticketing Brazil

Ticketing Argentina

Ticketing Chile

78%

12%

10%

Revenue Contr.

9


2q 2004 presentation click here to download

Entertainment Division – Live entertainment Mexico

  • 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

10


2q 2004 presentation click here to download

Entertainment Division – Las Américas

  • 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

11


2q 2004 presentation click here to download

Entertainment Division – Amusement Parks

  • 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

12


2q 2004 presentation click here to download

Entertainment Division – International

  • 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

13


2q 2004 presentation click here to download

Commercial Division – Advertising Properties

  • 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

14


2q 2004 presentation click here to download

Services Division – Ticketing

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

  • Outlets:

Chile

Feria del Disco

Multitienda Falabella

Almacenes Paris

Mexico

MixUp

Liverpool

Music&More

Mr.CD

Farm. Ahorro

Discolandia

Country Community Start-up

Mexico City *

Monterrey

Guadalajara *

Mexico

1992

1993

2001

Brazil

Tiendas Levis

Riachuelo

Librerias FNAC

Librerias Saraiva

Argentina

1998

Buenos Aires

Chile

Santiago

1998

Brazil

Sao Paulo *

Rio de Janeiro

Salvador

2000

2001

2001

Argentina

Tower Records

  • www.ticketmaster.com.mx

  • www. ticketmaster.com.br

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

15


2q 2004 presentation click here to download

Content

  • Business Model & Strategy

  • Operating Divisions

  • Financial Results for 2Q2004

  • Operating Results for 2Q2004 and 2004 Outlook

16


2q 2004 presentation click here to download

Operative Highlights

%Chg

2Q03

2Q04

% Chg

1H03

1H04

3.5%

(13.1%)

12.0%

29.8%

17.9%

6.1%

(15.2%)

(15.0%)

(5.7%)

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

3.2

1.2

4.3

1.6

2.1

0.2

613 19

123

467

1,261

1,423

39

3.1

1.4

4.5

1.9

1.9

0.1

567

28

189

667

1,356

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%

2,489

84

5.9

2.9

8.8

3.1

4.2

0.3

598

2,577

73

6.6

3.8

10.4

3.3

3.6

0.3

634

17


2q 2004 presentation click here to download

Financial Highlights

2Q03

2Q04

% Chg

1H03

1H04

% Chg

Revenue

EBITDA

EBITDA Margin

Operating Income

CCF

Current Assets

Assets L.T. & Other Assets

Total Assets

Debt

Total Liabilities

Stockholders’ Equity

1,673

388

23.2%

273

38

4,411

10,136

14,547

4,500

6,455

8,091

1,932

437

22.6%

311

115

4,555

9,939

14,494

4,881

7,351

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

719

23.1%

499

89

3,541

797

22.5%

545

219

13.9%

10.9%

(61 pb)

9.3%

144.8%

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

18


2q 2004 presentation click here to download

Revenue by Division

2Q03

2Q04

1H03

1H04

Entertainment

Commercial

Services

75.6%

13.8%

10.5%

77.5%

12.4%

10.2%

75.6%

13.7%

10.7%

76.4%

13.1%

10.5%

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

Revenue Distribution by Division

+15%

+18%

+9%

+3%

+12%

+11%

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

19


2q 2004 presentation click here to download

EBITDA and EBITDA Margin

470

30%

437

436

25.9%

25.8%

423

24.4%

24.2%

25%

24.8%

23.5%

23.1%

420

23.1%

23.1%

24.4%

23.2%

22.9%

22.5%

23.5%

23.6%

23.1%

23.2%

22.6%

398

22.4%

387

20%

370

360

359

357

347

EBITDA

Margin

15%

334

EBITDA Margin

331

330

Millions of pesos as of Jun.04

324

317

316

320

307

10%

282

266

270

5%

249

220

0%

4Q99

1Q00

2Q00

3Q00

4Q00

1Q01

2Q01

3Q01

4Q01

1Q02

2Q02

3Q02

4Q02

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

Units opened

Units in operation

1

1

2

3

1

4

1

5

1

6

3

9

1

10

1

11

4

15

4

19

2

21

2

23

2

25

3

28

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

20


2q 2004 presentation click here to download

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

Jun.04

- Allocation -

Debt

Bank Loans

Securitized Loans

Total

Cash

Net Debt

Interest Paid

Stockholders’ Equity

EBITDA 2Q04

EBITDA LTM

Ratios

EBITDA-to-Interest Expense

Net Debt / Stockholders’ Equity

Net Debt / EBITDA LTM

2,213

2,668

4,881

641

4,240

111

7,143

437

1,633

3.92x

0.59x

2.60x

- Maturities -

21


2q 2004 presentation click here to download

Content

  • Business Model & Strategy

  • Operating Divisions

  • Financial Results for 2Q2004

  • Operating Results for 2Q2004 and 2004 Outlook

22


2q 2004 presentation click here to download

Entertainment Division – Live Entertainment Mexico

  • Live Events :

  • “Vive Latino” and Latin events (p.e. Chayanne and Bosé) drive2Q04

  • New family-style events (p.e. Tiany Circusand 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


2q 2004 presentation click here to download

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

  • Chihuahua

  • Monterrey

  • Ciudad Neza

  • Morelia

  • Tonalá

  • Hermosillo

  • 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

24


2q 2004 presentation click here to download

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.

  • DivertidoMexico City: closed in October 2004;

  • partial relocation of assets to other parks

  • Naucalli Mágico: negotiations for the park closing

  • completed

  • Upcoming attractions in parks in Mexico City: the

  • Coca-Cola Tower at La Feria, and Globo Nestlé at

  • Planeta Azul

25


2q 2004 presentation click here to download

Entertainment Division - International

  • Argentina:

  • Exclusive operations for 10 years in the Obras Sanitarias

  • Arena(5,500seats) in Buenos Aires

- Obras Sanitarias -

  • 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

26


2q 2004 presentation click here to download

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:

Concessions

Structures

Chg.

Jun.04

Dec.03

Chg.

Jun.04

Dec.03

Publitop

Monterrey

Tlalnepantla

Coacalco

Nuevo Laredo

Tonalá

Puebla

S.L.P.

Mazatlán

Total

Keenneex

Aguascalientes

Cuernavaca

Zapopan

El Salto

Chapala

Total

Grand Total

82

33

9

10

13

2

7

1

157

6

3

47

4

1

61

218

82

33

9

10

8

2

7

1

152

-

-

-

-

-

-

152

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%

72

33

9

8

13

2

7

1

145

1

3

35

4

1

44

189

70

29

9

8

6

2

7

1

132

-

-

-

-

-

-

132

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%

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