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Cineplex Galaxy Income Fund 2006 Fourth Quarter & Full Year

Cineplex Galaxy Income Fund 2006 Fourth Quarter & Full Year. Cineplex Entertainment Circuit. Cineplex Odeon. Famous Players. Galaxy Cinemas. Theatres: 52 Screens: 513. Theatres: 51 Screens: 561. Theatres: 27 Screens: 231. As of December 31, 2006.

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Cineplex Galaxy Income Fund 2006 Fourth Quarter & Full Year

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  1. Cineplex Galaxy Income Fund 2006 Fourth Quarter & Full Year

  2. Cineplex Entertainment Circuit Cineplex Odeon Famous Players Galaxy Cinemas Theatres: 52Screens: 513 Theatres: 51Screens: 561 Theatres: 27Screens: 231 As of December 31, 2006

  3. 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

  4. Box Office Market Share Combined After Divestiture Cineplex Galaxy Cineplex Galaxy32.1% Cineplex Entertainment64.5% Empire 12.5% Other 6.9% Other 9.8% AMC 6.3% AMC 6.4% Empire 6.0% Landmark 3.1% Landmark 3.0% Guzzo 3.0% Guzzo 3.8% Famous Players42.6% Market Share of Canadian Box Office Revenues 2006 Pre-Acquisition Source: A.C. Nielsen EDI data

  5. Six Top-Tier Brands Colossus3 theatres Coliseum4 theatres SilverCity22 theatres Cineplex Odeon52 theatres Galaxy27 theatres Famous Players22 theatres As of December 31, 2006

  6. Industry Overview Industry overview

  7. Consistent Long-Term Box Office Revenue Growth CAGR since 1965: 5.6% Canadian Recessionary Periods Canadian Box Office Revenue1965 - 2005

  8. Industry Box Office 2006 Canadian Industry Cineplex Entertainment Flat to + 2.0% +3.2%

  9. Highest Grossing Films Released in 2005 Star Wars: Episode III$380 M The Chronicles of Narnia $291 M Harry Potter and Goblet of Fire$290 M War of the Worlds$234 M King Kong$218 M Source: Box Office Mojo

  10. Highest Grossing Films Released in 2006 Pirates of the Caribbean 2$423 M Cars$244 M X-Men: The Last Stand$234 M The Da Vinci Code$217 M Superman Returns$200 M Source: Box Office Mojo

  11. 2007 Films

  12. Company overview

  13. Increasing Revenue per Guest $12.28 $12.89 $11.23 $10.84 $10.27 $9.83 Revenue per Guest

  14. 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 Three Core Synergies:

  15. Acquisition Synergies Prospectus Q1 Current Annualized Synergies: ($ millions) General and Administrative $15 $15 $15 Media 5 5 9 Operations - 5 6 Total $20 $25 $30

  16. Looking Into the Future Leverage Over 60 Million Guests MagazineIn-TheatreInteractive Media-WebLoyaltyNaming Rights

  17. Marketing

  18. Growth Other income initiatives Digital pre-show network Cineplex Media Alternative programming Website Merchandising Theatre openings

  19. Digital Pre-Show Network Rollout Plan Phase 1: Phase 2: April 1 LaunchToronto Extended Market Area- 21 Locations; 215 Screens CompleteNationwide - Additional 800+ ScreensTOTAL 89 theatres & 1020 screens

  20. Cineplex Media Magazine publishing: Famous Magazine, Famous Kids, Famous Quebec In-theatre advertising: Magazine, onscreen, posters, monitors, buildings, naming rights

  21. Alternative Programming

  22. Loyalty Strategic Alliance To create Canada’s first and foremost entertainment loyalty program 60 million Cineplex guests - 130 Cineplex locations Strategic Alliance 967 Scotiabank Canadian branches – 6 million Scotiabank Canadian customers Includes media rights and naming rights for five Cineplex locations

  23. Merchandising Concession Per Patron $3.72 $3.44 $3.04 $0.58 $0.39 $0.19

  24. The Best Partners

  25. New Theatres Brand Location Screens Opening Galaxy Milton 8 Opened June 2006 Cineplex Odeon Brossard 16 Opened June 2006 Galaxy Brockville 6 Opened July 2006 Galaxy Saskatoon 12 Opened Sept. 2006 Cineplex Odeon Oshawa 10 Opened Nov. 2006 Galaxy Collingwood 7 Spring 2007 SilverCity Burloak (Oakville) 12 Fall 2007 SilverCity Hamilton 10 2008 Galaxy Brantford 8 2008 9 Theatres 89 Screens

  26. Financial highlights

  27. Annual Total Revenue ($ millions) +5.1% Screen Count 2005 excludes divestitures and includes FP for partial year

  28. Annual Attendance (millions) +1.4% 2005 excludes divestitures and includes FP for partial year

  29. Shifting the Revenue Pie (% of Total Revenue)

  30. Concession Revenue Growth (in $ per guest) $3.72 $3.50 + 6.3% $3.04 $2.89 $2.77 $2.62

  31. Other Revenue Growth ($ millions) $67.9 +10.0% $61.7 $61.2

  32. Annual EBITDA EBITDA Margin Adjusted EBITDA Margins – LTM March 2005: CGX 20.2% FP 9.0% ($ millions) +56.0%

  33. Distributable Income (per unit)

  34. Credit Facilities Development facility Capacity - $60 million Working capital facility Capacity - $50 million Term facility Capacity - $235 million

  35. Questions

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