Romania. Analyst Presentation. 22 nd October 2015

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Eileen McDowell
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1 Romania Analyst Presentation 22 nd October 2015

2 Contents Romania Cinema City development Perspectives for Romania Forecast for screen development Financial and operating results Performance Business model 1

3 Romania 20 million population 24 cities with more than 100 K people Bucharest has 2 million inhabitants 4 cities with over 300 K inhabitants 6 cities with between 200 and 300 K inhabitants 13 cities with between 100 and 200 K inhabitants Botosani Iasi Satu Mare Baia Mare Suceava Galati Oradea Bacau Turgu Mures Cluj Focsani Brasov Buzau Ploiesti Sibiu Arad Ramnicu Valcea Timisoara Pitesti Bucharest Braila Constanta Bucharest 2 M Cities with K Cities with K Cities with K Drobeta Turnu Severin Craiova Country of cinema-goers Other forms of out-of-home entertainment not fully developed Consumption-oriented society Demographic and urban structure supports development of a countrywide cinema chain 2

Ramnicu Valcea Timisoara Pitesti Bucharest Braila Constanta Bucharest 2 M Cities with 300-400K Cities with 200-300K Cities with 100-200K Drobeta Turnu Severin Craiova Country of

4 Cinema City development Romania moves towards Central European admission ratios Baia Mare Iasi Today Cinema City operates 21 multiplexes with 190 screens in 15 cities 2 Cluj Targu Mures Arad 2 Bacau Timisoara Deva Ploiesti Turgu Jiu 2 Severin 3 Bucharest Pitesti Cinema City cinemas in operation 2 Braila Constanta Cinema City has 3 megaplexes in Bucharest Cinema City offers its best digital cinema standards, IMAX and 4DX Cinema City continues opening new sites and signing lease agreements in the best locations M Admissions in Romania * Admission per capita * M M M M M M 10.2 M Poland in M 2 No. of Cinema City multiplexes (F) (F)

cinema standards, IMAX and 4DX Cinema City continues opening new sites and signing lease agreements in the best locations. 0.13 2.8 M Admissions in Romania * Admission per capita * 0.15 3.4 M 0.21 4.

5 Perspectives for Romania Romania s market progression Development of cinema infrastructure Growing cinema-going culture Romania is progressing in the direction of more mature markets. More film products including domestic productions Market opportunity based on APC in more advanced markets (2014) UK 54 million Spain Poland 48 million 20 million Romania sold 10m tickets in 2014 How many multiplexes can Romania support? (2014) UK Spain Poland There are 28 in Romania 4

More film products including domestic productions Market opportunity based on APC in more advanced markets (2014) UK 54

6 Forecast for screen development Romania (signed contracts) screens Bucharest (14) Constanta (10) Deva (6) Severin (6) Suceava (8) screens Timisoara (10) Bucharest Titan (14) Buzau (6) Pietra Neamt (6) 197 screens 2017 and Over 20 locations 197 screens 5

Suceava (8) 2016 4 36 screens Timisoara (10) Bucharest Titan (14)

7 New Cinema City cinemas opened in new cinemas with 36 screens Cinema CityMega Constanza 10 1,600 Bucharest Mall 14 halls 4DX seats 2,200 opened March Cinema CitySeverin Deva 6 6halls opened October 2015 Cinema City halls 1,200 1,200 seats seats opened October Deva Constanta Severin Bucharest 6

March Cinema CitySeverin Deva 6 6halls opened October 2015 Cinema City halls

8 Romanian projects underway Signed contracts cinemas with 241 screens Suceava Bucharest planned Titan to open 14 halls in 2015 Cluj Suceava Bistritza Botosani Iasi Pietra Neamt Timisoara Sibiu Brasov Buzau Galati Craiova Bucharest 7

open 14 halls in 2015 Cluj Suceava Bistritza Botosani Iasi

9 Financial and operating results 8

10 Financial and operating performance Romania continues its strong growth 595 # CC of admissions in `000 5,132 4,367 3,725 3,091 1,535 5, CC Revenues in GBP milion* * Constant currency Growing EBITDA margin Sound growth record [CAGR ] Admissions 38.3% Revenues 41.3% * EBITDA 55.8% 9

2 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 * Constant currency Growing EBITDA

11 Romanian business model Model for the growing financial performance Factors enhancing positive performance in Romania: Potential to increase average ticket price as the Romanian market matures Strong retail revenue per head Strong position in the market Favorable terms of cinema lease agreements Average Ticket Price in Cinema City RON Retail Revenue Per Head in Romania is amongst the highest in CEE countries EUR H12014 H

terms of cinema lease agreements Average Ticket Price in Cinema City 15.75 15.02 15.08 10.95 13.00 RON 16.26 15.69 16.06 16.

12 Leadership in Romania Real Estate Opportunities Cinema City s real-estate expertise has assisted in ensuring market leadership. TIMING SCALE INVESTMENT OUTLAYS 11

13 Romania Summary Second largest Cineworld territory in ROW ( Screen numbers) Should retain market leadership and enjoy the fruits of future market growth Potential to increase both ATP and SPP Intention to develop on screen advertising to reach at least Polish levels High EBITDA margin Development of domestic production can support admissions growth Real estate market is demonstrating signs of growth after a few years of slowdown 12

screen advertising to reach at least Polish levels High EBITDA margin Development of domestic production can

J4C - JESSICA FOR CITIES BRASOV Romania

J4C - JESSICA FOR CITIES BRASOV Romania Brasov Metropolitan Agency An inter-community, non-government association Created through the volunteer association of 14 communities aiming to help de integrated