Mr Nisan Cohen, Deputy CFO Cinema City International N.V.

Transcription

1 Mr Nisan Cohen, Deputy CFO Cinema City International N.V. ING EMEA Forum Prague, 3-4 December 2008

2 Cinema City Shareholding Structure Other shareholders I.T. International Theaters BZ WBK AIB Asset Management ING OFE Commercial Union OFE 5,23% 5,3% 0,30% 4,79% shares 64,37%

3 Cinema chain 62 theaters 57 screens 3 K seats 8IMAX 6countries 45 theaters under development 467 screens under development Next opening: Pardubice (8) December 2008 Screens in operation Screens under development Digital screens Poland 90(9%) Israel Hungary The Czech Rep. Bulgaria 26(6%) 3(3%) 8(2%) 52(%) Romania 278(59%) 2

4 CEE Cinema Market Underpenetration 4,8 USA admissions per capita population per screen N 2,6 S,7 FIN,2 EE,2 3,0 admissions per capita population per screen P,5 E 2,6 IRL 4,3 2,9 UK 2,8 F B 2,3 NL,3 CH 2, DK,4 I,8 2,3 D CZ, A 2, HR 0,7 PL 0,8 SK 0,4 HU, YU 0,5 LV 0,7 LT 0,7 RO 0, BG 0,4 GR,, Media Salles, country cinemagoing statistics and CY CCI calculations data for 2006&2007 3

5 Cinema City Business Model Cinema City operates5 business lines in6 countries Cinemas Advertising Film distribution Real estate DVD distribution Poland Hungary Czech Rep. Israel Bulgaria Romania 278 screens 02 screens 43 screens 3 screens 3 screens 22 screens IT Poland Development - - Development IT Plovdiv IT Ruse IT Stara Zagora

6 Cinema City s Growth Has Been Sustained by Strong Demand for Modern Entertainment Venues x Today 20* 95 screens 57 screens 023 screens country 6countries 6 countries * Based on signed agreements as of November2008and without considering any new territorial expansion 5

7 Cinema City Countries 6

8 Cinema City in Poland 25sites 278 screens seats 5IMAX openings pipeline Poznań Walbrzych Existing cinemas Signed projects 2 Gdańsk Bydgoszcz Zielona Góra Wrocław RudaŚląska Bytom Gliwice Rybnik Toruń Płock Warsaw 6 Łódź Lublin Częstochowa Sosonowiec Katowice 2 Rzeszów 3 Kraków Bielsko Biała BYDGOSZCZ 3 opened ZIELONA GORA 9 opened RZESZOW 0 BIELSKO BIALA 8 BYTOM 8 PŁOCK 8 KRAKÓW BONARKA 20 GDANSK NOWE MIASTO 9+IMAX CZESTOCHOWA 0 WALBRZYCH Cinema City 52% CCI market share in no of multiplex screens Helios& Kinoplex 8% Other activities:. New AgeMedia on screenadvertising 2. Forum Film Poland Walt Disney and otherleadingfilm studios 3.IMAX and Cinemapark entertainment and education Multikino &Silver Screen 30% 7

9 Cinema City in Hungary 2 sites IMAX Next CC in Budapest: Budapest Skala Center with 3 screens Expected Opening: screens seats CC Arena Miskolc Savaria Sopron Zala Budapest Gyor Veszprem Alba Szolnok Pecs Szeged Debrecen Existing cinemas CC Skala CC market share in numberof multiplex screens (including CC Arena) Otheractivities: Signed projects. New Age Media on screen advertising started in Forum Film Hungary Walt Disney and other leading film studios 3. Home Entertainment Warner, Sony and others Palace Cinemas 50% Cinema City 47% Budapest Film 3% 8

10 Cinema City in the Czech Republic 5sites 43 screens seats IMAX 2008 openings pipeline 2008 no of screens opening Pilzen 0 opened Pardubice 8 2H08 Prague 4 Pilzen Pardubice Existing cinemas Signed projects Other activities:. NAM Czech Republic 2. DVD distibution 9

11 Cinema City in Israel 6 sites 3 screens seats openings pipeline Other activities:.forum Film Walt Disney and other leading film producers 2.Blockbuster DVD rentals 3.Home Entertainment Warner, Sony and others 4.Screen Advertising 6 Haifa Tel-Aviv Modein 6 opened Haifa 23 opened Rishon LeZion 20 (net) CCI market share in no of multiplex screens Jerusalem CC 2% Lev7% Cinema City brands: Planet & Rav-Chen 42% Existing cinemas Signed projects Globus 39% The Cinema City brand in Israel is registered by another owner; CCI operates under the ITIT brand: Planet & Rav-Chen 0

12 Romania 3 sites 22 screens seats 2008 openings pipeline 2 Oradea Arad Timisoara Projects signed Baia Mare Cluj Existing cinemas Deva Suceava Iasi Bistrita Bacau Targu Mures Sibiu Targoviste Craiova Pitesti 2 Botosani Focsani Galati Braila Ploiesti Bucharest Other activities: screens opening Cluj 0 opened 288 screens in the investment pipeline: 2008: 0 screens : 278 screens. New Age Media on screen advertising started in 2007

13 Bulgaria site 3 screens openings pipeline seats IMAX Sofia Stara Zagora Plovdiv Ruse 2 Varna Burgas screens opening Plovdiv Ruse Varna Burgas Stara Zagora Stara Zagora screens in the investment pipeline in Existing cinemas Projects signed 2

14 Cinema City Cinema Advertising Model (continuing the evolution beyond traditional cinema exhibition) on screen off screen sponsorship Potential to capture 6 countries with over 50 large cities On Screen Advertising market in Poland poised for growth: > grew by 20% to estimated PLN 70 m in 2007 Market share in Poland is already over 65% Operating in Hungary and in Romania since 2007 Signed Agreement with cinema circuits Helios and Kinoplex in July 2007 International contracts with Coca-Cola, Nestle, Ferrero Rocher The goal is to become the predominantonscreen advertiserin CEE market 3

15 Real Estate Development Cinema City develops shopping centers with Cinema City multiplexes Capitalize on real estate development expertise gained in Poland and Bulgaria Mall of Sofia center completed and sold. Currently 3 additional malls under development. Stabile base of tenants signing lease agreements in each shopping center Contribution to financial results Mall of Sofia, Sofia 2006 Mall of Plovdiv opening planned for spring 2009 Mall of Ruse, construction start 2008 Mall of Stara Zagora 4

16 Cinema City Opportunities and Risks opportunities risks leveraging upon strong corporate brand and market position strong perspective on existing and potential markets experienced management team proven business partners including premier regional shopping mall developers number of films released quality of films access to suitable site locations local economic performance high quality theatres, experience and service digital cinema 5

17 Digital Cinema City 00 digital projectors to be installed in 2008and Digitalization expenses of EUR 3.3 million in 2008 Journey to the Center of the Earth Broader range of content will bring additional audience Digital 3D cinema inregularhalls Exclusive agreement with Digiscreen to provide Royal Opera House in London webcast shows in Cinema City multiplexes Fly me to the moon BOLT 6

18 CCI Expansion Opportunities in Potential Markets Western option: 370 m people CC in CEE region 60 m people Eastern option:.4 b people 7

19 Cinema City Financial and Operating Results

20 Cinema City Growth Story in m CAGR Revenues EBITDA Net profit 96 0,4% 5,2% 6,6% M 2008/2007* Revenues +5.0% EBITDA +8.5% Net profit +2,7% M M 2008 * non-audited 9

21 Cinema City Balance Sheet in EUR 000 As at 30 Sept 2008 As at 30 Sept 2007 change equity debt % % cash % net debt % net debt/equity 0,47 0,

22 Revenues Breakdowns by Countries and by Segments 9 M 2008 Romania,5% Israel 7,8% 9 M 2008 DVD retail,6% Film distribution,9% Real estate 6,0% Theater operations breakdown (% of total sales): Ticket sales 53.3% Consessions 6.2% Advertising 0.9% 80,5% Bulgaria 6,6% 4,3% Hungary 6,% 40 m 53,7% Poland 40 m Czech Rep. 9 M 2007 Bulgaria Israel 9,7% 8,5% 22 m 52,% 9 M 2007 Film distribution DVD retail 2,4% 3,6% Real estate 8,0% 22 m Theater operations breakdown (% of total sales): Ticket sales 50.0% Consessions 4.5% 76,0% Advertising.5% Hungary 3,8% 5,9% Poland Czech Rep. 2

23 Thankyou