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C ORPORACIÓN I NTERAMERICANA DE E NTRETENIMIENTO, S.A. DE C.V . FIRST QUARTER 2005. As a precautionary note to investors, except for the historic information here provided, statements included in this document constitute
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CORPORACIÓN INTERAMERICANA DE ENTRETENIMIENTO, S.A. DE C.V. FIRST QUARTER 2005
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. 2
Content Financial Results 1Q2005 Operative Results 1Q2005 and Outlook for 2005 3
Operative Highlights 1Q05 1Q04 % Chg 747 3.6 1.4 5.0 1.7 1.5 598 1,819 32 197 734 1,462 863 3.5 2.4 5.9 1.5 1.4 635 1,517 25 136 528 1,344 (13.4%) 3.0% (42.0%) (15.3%) 13.3% 7.1% (5.8%) 19.9% 28% 44.9% 39.0% 8.8% Events* Ticketmaster Tickets (thousands) Mexico South America Total Attendance (thousands of people) Events Amusement Parks Sports Books & Yaks Per capita Consumption (Ps.) Attendance (in thousands) Units in operation Pedestrian Overpasses Structures in operation Advertisements Cineminutos Movie Theaters Note: The quarterly variation would have been (35.3%) on a pro forma basis, taking into account the 291 events that were held in Spain during 1Q04 4
Financial Highlights 1Q05 1Q04 % Chg Revenue EBITDA EBITDA Margin Interests paid, net EBITDA / Interests paid, net Current Assets L.T. Assets & Other Assets Total Assets Debt Total Liabilities Stockholders´Equity Debt / Stockholders´Equity 1,830 400 21.8% 152 2.63x 4,920 10,347 15,267 5,227 7,889 7,378 0.71x 1,677 376 22.4% 110 3.43x 4,647 9,998 14,645 4,974 7,429 7,216 0.69x 9.1% 6.3% (60 pb) 38.3% (0.80x) 5.9% 3.5% 4.3% 5.1% 6.2% 2.3% (0.02x) Note: Figures expressed in millons of Mexican pesos of purchasing power as of March 31, 2005 5
Quarterly Revenue % Chg 1Q04 Comp. 1Q05 Comp. Quarterly Revenue Entertainment Commercial Services Total 75.1% 14.0% 10.9% 100.0% 1,368 273 189 1,830 74.8% 14.9% 10.3% 100.0% 8.6% 16.4% 2.7% 9.1% 1,260 235 184 1,677 +9% +16% +3% 6
Debt • At May.05, the Group’s debt was Ps. 5,227 millon, • 26% of which is due in the short-term and the remainder in the long-term 7
Debt Programs • The issuance of a bond in international markets in the amount of $200 millon dollars • Term: 10 years (matures in 2015) • Interest rate/ reference coupon: Between 8 ¾ and 9 ¼ (depending on the demand of the book) • Estimated closing date: Wednesday June 8, 2005 • Use of Proceeds: Debt Refinancing (Banamex, Inbursa, CEBURES and UDI Bond) • Notes: • Amount: Program for up to $2,400 millon Pesos (estimated amount: $1,500 millon) • Term: 5 years • Use of resources: Exchange of 2 issued UDIs Bonds, both of which mature in 2007 DebtProfile Proforma DebtProfile Total Debt:US$462mm Total Debt:US$462mm 8
Content Financial Results 1Q2005 Operative Results 1Q2005 and Outlook 2005 9
CIE Entertainment • Events: • Cirque du Soleil: three dates for 3Q05 in Monterrey, Guadalajara and Mexico City • International: solid events calendar for the first six months of 2005. (p.e Paul MCartney, • Phil Collins, Avril Lavigne, Sarah Brightman) • Disney on Ice: “Finding Nemo,” which will run from May through July • Automobile Racing: • NASCAR (March 5-6th) • Champ Car Monterrey (May 20-22nd) • Champ Car México (Nov. 6-8) • Theater: • The closing of “Joseph and the Tecnicolor Dreamcoat” in 1Q05, which will be replaced by • Bésame Mucho during 3Q05 10
Schedule of Upcoming Events • Sun Project • Skank • Roupa Nouva • Simone e Convidados • Placebo • George Benson • Xuxa • Daniela Mercury • Orishas • Eagle Eye Cherry • Jorge Ben Jor • Zeca Pagodinho • Steel Pulse • Australian Pink Floyd • Brune e Marrone • Momix • Cidade Negra • Tributo a Cassia Eller • Jammil e Uma Noites • Tony Bennett • Kid Abelha • Ivete Sangalo • David Copperfield • Lulú Santos • Maria Betania • Brian Adams • Barney • Ana Carolina • Jethro Tull & Orchestra • Beach Boys • Laura Pausini • Roberto Carlos • Diávolo • Ivan Lins • Festival de Blues • Abelardo e Berilo • Tonny Lima • Maria Rita • Festival de Jazz • RBD • Finding Nemo • Bacilos • Los Tigres del Norte • Moenia • Mijares • La Gira de Bosé • Alejandro Fernández • Diego Torres • Placebo • Santana • Buena Vista Social Club • Vive Latino • Los Lobos • Laura Pausini • Silvio Rodríguez • Audioslave • The White Stripes • Alex Syntex • Creedence Clearwater • Lucybel • Peter Murphy • Nine Inch Nails • Black Party • Australian Pink Floyd • Jaguares • Lagrimas Negras • Ojos de Brujo • Keane • Avril Lavigne • Phil Collins • Sarah Brightman • Paul McCartney • Cirque du Soleil • Bésame Mucho • Ratones Paranóicos • Babasónicos • Los Tipitos • El Otro Yo • Andrés Calamaro • Los Cafres • Alma Fuerte • Las Pelotas • Catupecu Machu • Divididos • Kapanga • Bersuit • Rata Blanca • South Feast • Aladin • La Revista • Unipersonal de Posca 11
CIE Las Américas • Horse Racetrack • 2005 Racing Season: Feb.4 – Dec.18; Friday through Sunday • Sports Books & Yaks: • Begin operations in Morelia with the inauguration of one unit. With this opening, • by the end of 1Q05 CIE will have 32 Books and 28 Yaks in operation. • 41 units scheduled to be in operation by the end of 2005, including Tampico, • Cuautitlán and Puebla Torreón Monterrey Hermosillo León Culiacán Villahermosa Cancún Aguascalientes Guadalajara Cd. México And State of Mexico Morelia 12
CIE Commercial • Pedestrian Overpasses: • Consolidation of operations in Guadalajara, Cuernavaca • and Aguascalientes, in addition to the expansion in Puebla • Continue with the process of renovating longer-term contracts for municipal concessions • to install and operate overpasses • Advertising in airports: • GACN: the installation of software & hardware in digital panels is almost completed • Proposal to other airport operators in Mexico • Media Innovations: • Media Innovations is participating more in its clients’ campaigns 13
CIE Parques de Diversiones • Wannado Entertainment: • Consistent increase in monthly attendance at Wannado Miami, up from • 18,000 visitors in Aug ‘04 to an average of 40,000 in 1Q05 • Continued optimization of operations together with a reduction of costs and expenses • Strategies to reposition the park: • Prices: kids, adults, groups/ schools • Brand Sponsorships in pavillions and activities • Public Relations and media • Marketing tactis geared towards key markets 14
CIE Internacional • Brazil: • An increase in the volume of local shows and regional tours • New offering of promotional and advertising tools: • Continue presenting medium-scale, theatrical productions; staging of Phantom of the Opera • Argentina: • A greater number of live events and theater productions due to the • improvement in the local economy • Continue redefining the sales and financing strategy for Radio stations; • renovation of licenses for a 10-year period • Mayo 2005: acquisition of Ticketek, an important ticketing company in • Argentina (US$800,000, differed for 5 years) 15