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Cineplex Galaxy Income Fund 2006 Third Quarter

Cineplex Galaxy Income Fund 2006 Third Quarter. Cineplex Entertainment Circuit. Cineplex Odeon. Famous Players. Galaxy Cinemas. Theatres: 52 Screens: 507. Theatres: 54 Screens: 575. Theatres: 26 Screens: 227. As of September 30, 2006. Famous Players Acquisition - Rationale.

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Cineplex Galaxy Income Fund 2006 Third Quarter

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  1. Cineplex Galaxy Income Fund 2006 Third Quarter

  2. Cineplex Entertainment Circuit Cineplex Odeon Famous Players Galaxy Cinemas Theatres: 52Screens: 507 Theatres: 54Screens: 575 Theatres: 26Screens: 227 As of September 30, 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 Entertainment64.2% Empire 13.6% Other 6.9% Other 9.8% AMC 6.3% AMC 6.3% Empire 6.0% Landmark 3.1% Landmark 3.1% Guzzo 3.0% Guzzo 3.0% Famous Players42.6% Market Share of Canadian Box Office Revenues Source: A.C. Nielsen EDI data

  5. Six Top-Tier Brands Colossus3 theatres Coliseum4 theatres SilverCity22 theatres Cineplex Odeon52 theatres Galaxy26 theatres Famous Players25 theatres As of September 30, 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 2005 Q3 2006 YTD Canadian Industry* Cineplex Entertainment -8.6% + 2.0% -6.1% +4.5% * Source: Motion Picture Theatre Associations of Canada

  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$421 M Cars$244 M X-Men: The Last Stand$234 M The Da Vinci Code$217 M Superman Returns$199 M Source: Box Office Mojo

  11. Upcoming Films for 2006 Happy FeetNovember 2006 Charlotte’s WebDecember 2006 Night at the Museum December 2006 Casino Royale November 2006 The Santa Clause 3 November 2006

  12. 2007 Films

  13. Company overview

  14. Increasing Revenue per Guest $12.28 $12.51 $11.23 $10.84 $10.27 $9.83 Revenue per Guest

  15. 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:

  16. 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

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

  18. Marketing

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

  20. 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

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

  22. Alternative Programming

  23. Loyalty Strategic Alliance To create Canada’s first and foremost entertainment loyalty program 60 million Cineplex guests - 132 Cineplex locations Strategic Alliance 967 Scotiabank Canadian branches – 6 million Scotiabank Canadian customers Includes media rights and naming rights for five Cineplex locations

  24. Merchandising $3.74 $3.44 $3.04 $0.56 $0.39 $0.20 Concession Per Patron

  25. The Best Partners

  26. New Theatres Brand Location Screens Opening Galaxy Milton 8 June Cineplex Odeon Brossard 16 June Galaxy Brockville 6 July Galaxy Saskatoon 12 September Cineplex Odeon Oshawa 10 Q4 Galaxy Collingwood 7 2007 SilverCity Burloak 12 2007 SilverCity Hamilton 10 2007/2008 Galaxy Brantford 8 2008 9 Theatres 89 Screens

  27. Financial highlights

  28. Annual Total Revenue 1,275 1,269 775 740 $740.0 394 678 613 $490.3 $353.7 $330.0 $316.4 $250.2 $197.5 Screen Count ($ millions) 2005 excludes divestitures and includes FP for partial year

  29. Annual Attendance (millions) 2005 excludes divestitures and includes FP for partial year

  30. Annual EBITDA EBITDA Margin Adjusted EBITDA Margins – LTM March 2005: CGX 20.2% FP 9.0% ($ millions) 2005 EBITDA excludes divestitures and non-recurring/transaction related items and includes FP for partial year

  31. Total Revenue – 9 months ended September 30 +6.6% ($ millions)

  32. Attendance – 9 months ended September 30 +2.9% (millions)

  33. Adjusted EBITDA – 9 months ended September 30 +161% Margin 11.2% 6.1% 14.9% ($ millions)

  34. Distributable Income (per unit)

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

  36. Questions

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