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Corporación Interamericana de Entretenimiento, S.A. de C.V. 2Q2005.

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Presentation on theme: "Corporación Interamericana de Entretenimiento, S.A. de C.V. 2Q2005."— Presentation transcript:

1 Corporación Interamericana de Entretenimiento, S.A. de C.V. 2Q2005

2 As a precautionary note to investors, except for the historic information here provided, statements included in this document constitute forward-looking statements. Such statements assume risks and uncertainties, including the economic conditions in Mexico and other countries where CIE operates, as well as the fluctuation of the Mexican peso compared to the U.S. dollar. The use of registered trademarks or commercial trademarks within this document are exclusively for illustrative purposes and are not meant to violate the rights of the creators and/or intellectual property laws applicable in the countries in which CIE, its subsidiaries, and those companies with which CIE maintains commercial or business relationships, operate.

3 Key Financial Indicators 2Q052Q04 2,203 485 22.0% 174 2.8x 2,805 8,220 10,346 18,566 7,368 10,119 8,447 0.9x 2,015 456 22.6% 109 4.2x 669 4,752 10,370 15,122 5,092 7,670 7,452 0.7x % Chg 9.3% 6.4% (60 pb) 60.3% (1.4x) 319.5% 73.0% (0.2%) 22.8% 44.7% 31.9% 13.3% 0.2x Note: All of the figures listed in this section are expressed in millions of Mexican pesos as of June 2005, with the exception of the financial ratios and percent changes. The figures, financial ratios and percent changes may vary due to rounding 6M046M05 3,694 832 22.5% 219 3.8x 4,033 884 21.9% 326 2.7x % Chg 9.2% 6.3% (60 pb) 49.2% (1.1x) 2Q05 689 6,104 10,346 16,450 5,213 7,964 8,447 0.6x % Chg 3.0% 27.6% (0.2%) 8.8% 2.4% 3.8% 13.3% (0.1x) Pro forma * * For the 10-year Bond for US$200 millon, issued on June 14, 2005 Revenue EBITDA EBITDA Margin Interests paid, net EBITDA / Interests paid, net Cash Current Assets L.T. Assets & Other Assets Total Assets Debt Total Liabilities Stockholders´Equity Debt / Stockholders´Equity

4 Strategic Business Units REVENUE 2Q05 = Ps.2,203 MM EBITDA 2Q05= Ps.485 MM Event Sponsorships Naming Rights Pedestrian Overpasses Signage Cineminutos Rotating Advertising Food, Beverages and Souvenirs Trade Fairs and Exhibitions Radio Stations in Argentina Ticketing (Ticketmaster) in Arg., Brazil and Mexico Tele-services Mexico: Event promotion Theater Productions Operation of Venues Artistic Agency Food, Beverages and Souvenirs Ticketing (Ticketmaster) Special and Corporate Events Sports Books & Yaks Horse Racetrack Centro Banamex Granja Las Américas Sponsorship of events ouside of Mexico Signage Pedestrain Overpasses Cineminutos Media Innovations Rotational Advertising Naming Rights Tele-services 8 Parks in Mexico 2 Parks in Bogota Wannado City in Miami Promotion and Sponsorship of events and theatrical productions: Argentina and Brazil Buenos Aires Zoo Radio Stations in Argentina Latin Event Promotion in USA Promotion of events and theater productions in: Arg., Brasil, Chile, Mexico and USA Event Sponsorships Operation venue Artistic Agency Special and Corporate Events Sports Books & Yaks Horse Racetrack Centro Banamex Granja Las Américas Amusement Parks in Colombia, USA and Mexico Buenos Aires Zoo Media Innovations ENTERTAINMENT COMMERCIAL SERVICES CIE ENTERTAINMENT CIE LAS AMERICAS CIE COMMERCIAL CIE AUSEMENT PARKS CIE INTERNATIONAL

5 CIE Entertainment 8.7% * Note: EBITDA - Capex 6.5%10.1%8.0% OPERATIVE CASH FLOW* EBITDA Revenue 2Q05 EBITDA 2Q05 REVENUE 2Q052Q04 % Chg6M046M05% Chg # of presentations: Concerts Theater Other Total Attendance: Total (thousands) Ticketmaster: Tickets (thousands) Ps.15Ps.12Ps.29Ps.25 (12%) +1% (25%) (30%) (36%) (27%) 179 556 201 936 1,221 3,115 150 425 173 748 1,267 3,960 (16%) (24%) (4%) (20%) +4% +27% 267 1,016 336 1,619 1,969 6,653 137 878 311 1,426 2,090 7,461 (49%) (14%) (7%) (12%) +6% +12% EBITDA Margin Capex

6 CIE Las Américas 34.4%34.2%36.7%29.9% OPERATIVE CASH FLOW* EBITDAREVENUE Revenue 2Q05 EBITDA 2Q05 2Q052Q04% Chg6M046M05% Chg Horse Racetrack: Racing Days Races Centro Banamex: Events Books/ Yaks: Per capita (Ps.) Attendance (millions) Units in Operation Granja: Attendance (thousands) Ps.141Ps.123Ps.179Ps.197 +22% +12% +21% (9%) +306% (31%) 38 378 208 566.61 1.7 28 N.A 39 426 216 566.90 1.9 33 152 3% 13% 4% N.A. 7% 18% N.A. 73 727 413 597.88 3.3 28 N.A. 64 699 356 579.11 3.7 33 278 (12%) (4%) (14%) (3%) 13% +18% N.A. Capex * Note: EBITDA - Capex EBITDA Margin

7 CIE Commercial 32.2%30.9%30.8%32.7% Jun ‘05Jun ‘04% Chg Pedestrian Overpasses: Structures Advertisements Advertisments in Cinemas: Screens +14% +52% +9% +62% +79% +24% Ps.30Ps.11Ps.30Ps.14 178 654 1,356 197 732 1,502 +11% +12% +11% Capex OPERATIVE CASH FLOW* EBITDAREVENUE EBITDA Margin Revenue 2Q05 EBITDA 2Q05 * Note: EBITDA - Capex

8 CIE International 17.3%19.1%17.4%18.9% Argentina # of presentations Attendance (thous) Tickets TM (thous) Visitors Zoo Brazil # of presentations Attendance (thous) Tickets TM (thous) Spain # of presentations Attendance (thous) +1% +67% +2% (10%) (17%) (7%) Ps.23Ps.4Ps.23Ps.11 50 236 611 171 154 200 564 269 228 68 132 488 165 183 316 721 N.A. 122 346 1,178 470 260 472 1,865 560 474 69 136 1,029 468 258 462 1,198 N.A. +36% (44%) (20%) (4%) +19% +58% +28% N.A. (43%) (61%) (13%) (1%) (2%) (36%) N.A. Capex OPERATIVE CASH FLOW* EBITDAREVENUE EBITDA Margin Revenue 2Q05 EBITDA 2Q05 2Q052Q04% Chg6M046M05% Chg * Note: EBITDA - Capex

9 -106 -6 -183 -8 2Q042Q056M046M05 CIE Amusement Parks 17.2%8.4%16.8%6.6% Visitors (thousands): Mexico Colombia Wannado Total Per Capita (Ps.): Mexico Colombia Wannado Total +23% +33% (40%) (48%) (94%) Ps.127Ps.20Ps.221Ps.28 1.5 0.4 N.A. 1.9 67.81 44.31 N.A. 64.67 1.0 0.2 0.1 1.3 83.93 59.46 254.16 96.88 3.0 0.6 N.A. 3.6 68.62 47.60 N.A. 65.47 2.0 0.4 0.3 2.7 81.45 69.23 274.67 96.94 (33%) (46%) N.A. (32%) +24% +34% N.A. +50% (34%) (63%) N.A. (24%) +19% +45% N.A. +48% Capex Revenue 2Q05 EBITDA 2Q05 OPERATIVE CASH FLOW* EBITDAREVENUE EBITDA Margin 2Q052Q04% Chg6M046M05% Chg * Note: EBITDA - Capex

10  10 year Bond for US$200 million; interest rate of 8.875%: Purchase Orders for US$300 millon; more than 50 international investors Moody’s Ba2; S&P B+  Capital increase for Ps.1,100 millon (100% subscribed), which enabled CIE to acquire 25% de CIE Las Américas from Sinca Inbursa for Ps.990 millon DEBT PROFILE (DEC 2004)CURRENT DEBT PROFILE POST- REFINANCING Noteworthy Events Figures in millons of USD

11 Open Television Cable Television Satellite Television Video/ DVD Internet Video games Music/ radio Internet Gambling Movies Video games (Recórcholis, Moy, etc.) Amusement Parks Live Entertainment: - Sports - Theater, concerts/ cultural - Popular/ Palenque - Dances Gambling Family Entertainment Centers: Dave & Busters, Recórcholis, Div. Moy, etc. FREE TIME INDUSTRY Travel Reading Hobbies They compete for people’s time and money Restaurants Sports ENTERTAINMENT “IN-HOME” ENTERTAINMENT“OUT-OF-HOME” ENTERTAINIMENT Free Time Industry

12 Content Tecnology / Formats Out-of-HomeIn-Home Advertising Free Time Industry (cont.)

13 Content Tecnology / Formats In-HomeOut-of-Home Radio - Digital Radio Television - Tivo, other media Walkman - iPod Camara - Digital camara (cellular) Nintendo - Game Boy (portable) Free Time Industry (cont.)

14 MEDIA AND ENTERTAINMENT MEXICO 2004 NOT INCLUDING OPEN TV MEDIA AND ENTERTAINMENTO MEXICO 2004 Principal Source: Expansión 500, June 2005 * Complementary Source: CIE Estimates Investment in Media and Entertainment

15  Growth in 2005 will come from the promotion of a strong “live events” calendar:  In addition, CIE Entertainment expects there to be a significant increase in the sale of advertising sponsorships Emphasis on International Events Live Automobile Racing Events (p.e. Nascar Series) “Cirque du Soleil” “Disney on Ice” outside of Mexico City  Some upcoming events that will be presented in Mexico during the second half of 2005 include: Avril Lavigne Jaguares Keane Judas Priest Scorpions Garbage Mobie Apocalyptica Botellita de Jeréz Queensryche Paul McCartney Sarah Brightman Peter Gabriel Phil Collins RBD La Academia IV Enrique Bunbury Bacilos Besame Mucho Los Monólogos de la Vagina Violinista en el Tejado Defendiendo al Cavernícola Cats Buscando a Nemo Cirque du Soleil Feria del Futból CIE Entertainment

16  Media Innovations: Increase in the development of application technologies geared towards clients’ promotional campaigns. New promotional and informational formats through the use of new interactive and effective strategies  Pedestrain Overpasses: Consolidation in Guadalajara, Cuernavaca and Aguascalientes; operations in Puebla started Renovation of existing concessions to be exploited over the long-term (10 years)  Digital Advertising in Airports: Implementation of digital panels in the 13 airports operated by Grupo Aeroportuario Centro Norte Business proposal to airport operators in Mexico (approx. 24 airports) CIE Commercial

17  IGT is a world leader in the development, design, production, distribution and sale of computerized gaming terminals Publicly-listed company on the NYSE (Ticker: IGT) Market Cap of US$10 billion Annual sales of US$2,500 millon  CIE signed a contract with IGT to provide terminals for the launch of electronic number-based games.  Terminals: Centralized technology platforms to conduct multiple numbers-based games at the same time Participants play simultaneously with other players who are connected to a centrally operated computer CIE Las Américas

18  Brazil: Continue to increase the number of local events and regional tours in the country Expansion of proprietary advertising channels -Digital Information Systems -State-of-the-art Digital Content uLocal, small-scale theatrical productions and Broadway-style productions  Argentina: Gradual increase in revenues from live events and the Zoo due to improvements in the Argentine economy Radios stations strategy continues to be redefined CIE International

19  Judas Priest  Dream Factory  Donna Summer  Chiclete com Banana  Momix  Seicho no Ie  Átomo  Marcelo D2  Ajom  Fagner  Roberto Carlos  Kid Abelha  Zeze di Camargo e Luciano  Rock and Run  Megadeath  Stillus  Tony Bennett  Hammstein  Maria Bethánia  Ivete Sangalo  Jota Quest  Donna Summer  Dream Factory  Seal  Diávolo  Albert Einstein CIE International  Buddy Guy  Bruno e Marrone  Dream Theater  Pao de Acucar  Xuxa  Sol da Meia Noite  Caboré  Projecto Acordes  Liberdade para As Borboletas  Leo Maia  After Forever  Forte Real  Tres Homens Baixos  Engenheiros do Hawaii  Emílio Santiago  Adriana Partimpim  Pedro Mariano  Nando Reis  Los Hermanos  Beto Guedes  Luciana Mello  Roupa Nova  Gabriel o Pensador Toquinho  Jorge Vercilo  Caetano Veloso TALENT SCHEDULED FOR AUGUST-DECEMBER 2005  La Renga  Monster of Rock  Avril Lavigne  Splipknot  Festival Rock & Pop  Ataque 77  Los Cafres  Las Pelotas  Catupecu Machu  Divididos  Bersuit  Rata Blanca  Árbol  Aladin  La Revista  Unipersonal de Posca  Festival Música Electrónica

20 CIE Amusement Parks  Wannado Entertainment: Continue refining operations, costs and expenses Introduction of multi-passes and promotions for Florida residents New pavillion: Coca-Cola bottling plant New Sponsor: Motorola Montly attendance is up, from 18,000 in August 2004 to 40,000 in June 2005  Other points regarding Wannado: Analyze the possibility of expanding Wannado to other cities in the US, specifically NY Expansion of the strategy to offer sponsorship packages to Mexican clients (p.e. Mexicana de Aviacion)


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