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1 Cineplex Galaxy Income Fund 2006 First Quarter Slide 2 2 Cineplex Entertainment Circuit Famous Players Theatres:54 Screens:573 Cineplex Odeon Theatres:51 Screens:491 Galaxy Cinemas Theatres:24 Screens:205 Slide 3 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 Slide 4 4 Box Office Market Share Market Share of Canadian Box Office Revenues Cineplex Galaxy 32.1% Other 6.9% Cineplex Galaxy AMC 6.3% Famous Players 42.6% Empire 6.0% Landmark 3.1% Guzzo 3.0% Combined After Divestiture Cineplex Entertainment 64.2% Empire 13.6% Other 9.8% Guzzo 3.0% AMC 6.3% Landmark 3.1% Source: A.C. Nielsen EDI data Slide 5 5 Six Top-Tier Brands SilverCity 22 theatres Coliseum 4 theatres Famous Players 25 theatres Cineplex Odeon 51 theatres Galaxy 24 theatres Colossus 3 theatres Slide 6 6 Industry overview Slide 7 7 Canadian Box Office Revenue 1965 - 2006 Consistent Long-Term Box Office Revenue Growth Canadian Recessionary Periods CAGR since 1965: 5.6% Slide 8 8 Industry Box Office Canadian Industry*-8.6%+2.0% Cineplex Entertainment-6.1%+2.3% (same store) Canadian Industry*-8.6%+2.0% Cineplex Entertainment-6.1%+2.3% (same store) 2005Q1 2006 * Source: Motion Picture Theatre Associations of Canada Slide 9 9 Highest Grossing Films in 2005 Star Wars: Episode III$380 M Harry Potter and Goblet of Fire$244 M War of the Worlds$234 M Wedding Crashers$209 M Charlie and the Chocolate Factory$206 M Star Wars: Episode III$380 M Harry Potter and Goblet of Fire$244 M War of the Worlds$234 M Wedding Crashers$209 M Charlie and the Chocolate Factory$206 M Slide 10 10 Upcoming Films for 2006X-Men May 2006 Cars June 2006 Click June 2006 Superman Returns June 2006 Pirates of the Caribbean 2 July 2006 Happy Feet November 2006 Charlottes Web December 2006 The Santa Clause 3 November 2006 Casino Royale November 2006 Slide 11 11 Company overview Slide 12 12 Increasing Revenue per Guest $9.83 $10.27 $11.23 $10.84 $12.28 $12.33 Revenue per Guest Slide 13 13 Significant Other Revenue Contribution $13.4 $17.4 $22.8 $20.9 $44.3 $62.5 Other Revenues ($ millions) 2005 excludes divestitures and includes FP for partial year Pro forma excludes divestitures Slide 14 14 Synergies 1. Reducing overhead costs and adopting best practices Consolidating two head offices Staff reductions Adopting best practices Enhanced revenues Operating savings 2. Media sales efficiencies and effectiveness Creation of Cineplex Media 3. Improved purchasing and merchandising opportunities Supplier contracts Merchandising strategies Concession management Three Core Synergies: Slide 15 15 ProspectusQ1Current Acquisition Synergies Annualized Synergies: ($ millions) General and Administrative$15$15$15 Media559 Operations-56 Total$20$25$30 General and Administrative$15$15$15 Media559 Operations-56 Total$20$25$30 Slide 16 16 Looking Into the Future Leverage Over 60 Million Guests Magazine In-Theatre Interactive Media-Web Loyalty Naming Rights Slide 17 17 Marketing Slide 18 18 Growth 1. Other income initiatives Digital pre-show network Cineplex Media Alternative programming 2. Merchandising 3. Theatre openings Slide 19 19 Digital Pre-Show Network Rollout Plan Phase 1: April 1 Launch Toronto Extended Market Area - 21 Locations; 215 Screens Phase 2: Complete Nationwide - Additional 800+ Screens TOTAL 89 theatres & 1020 screens Slide 20 20 Cineplex Media Magazine publishing: Famous Magazine, Famous Kids, Famous Quebec In-theatre advertising: Magazine, onscreen, posters, monitors, buildings, naming rights Slide 21 21 Alternative Programming Slide 22 22 Merchandising Concession Per Patron $3.04 $3.44 $3.72 $0.20 $0.39 $0.56 Slide 23 23 The Best Partners Slide 24 24 New Theatres for 2006/07 7 Theatres71 Screens BrandLocationScreensOpening Galaxy Milton 8June Cineplex Odeon Brossard 16June GalaxySaskatoon 12July Galaxy Brockville 6July Cineplex Odeon Oshawa 10November Galaxy Collingwood 7December SilverCityBurloak 122007 Slide 25 25 Financial highlights Slide 26 26 Annual Total Revenue ($ millions) 2005 excludes divestitures and includes FP for partial year $250.2 $316.4 $330.0 $353.7 $490.3 $740.0 $197.5 678 394 740 775 1,275 1,269 613 Screen Count Slide 27 27 Annual Attendance (millions) 2005 excludes divestitures and includes FP for partial year Slide 28 28 Annual EBITDA ($ millions) EBITDA Margin Adjusted EBITDA Margins LTM March 2005: CGX20.2% FP 9.0% 2005 EBITDA excludes divestitures and non-recurring/transaction related items and includes FP for partial year Slide 29 29 Total Revenue Q1 2006 ($ millions) +3.2% Slide 30 30 Q1 2006 Attendance (millions) +0.9% Slide 31 31 Q1 2006 Adjusted EBITDA ($ millions) Margin15.4%4.1%11.2% +282% Slide 32 32 Credit Facilities Development facility Available - $60 million Working capital facility Available - $50 million Term facility Drawn - $235 million Slide 33 33 Questions