Presentacin de PowerPoint

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

• Leading out-of-home entertainment company in
  Latin America, Spain and the U.S. Latin markets
• 51 million customers in 2003
• Best of breed entertainment for every budget
• Concerts, theater, sporting, cultural, family,
  popular fairs and corporate events
• Amusement / educational parks
• Gaming Number based games and off-track betting
• Vertical Integration multiple revenue streams
  and minimal risks
• Significant marketing revenue from proprietary
  entertainment and advertising properties
• Expertise organized by country and business areas
  management depth
• Positive free cash flow targets in place after a
  period of capital intensive investments for
  future growth

2
3
Business Model

• A business model that adapts to various forms of
  out-of-home entertainment

Consumer
Content
Venues
Events Music Sporting Folkloric Popular
Family Cultural Theater Mechanical
games Betting / Gaming Animals Horse Racing
Stadiums Arenas Trade Exhibition Centers Theme
Parks Zoos Race Tracks Amphitheatres Theaters Audi
toriums
Sponsors
Souvenirs
Food Beverage
Ticket Sales
3
4
Operating divisions

• The Company has three operating divisions with
  the following businesses

3 Divisions
Entertainment
Commercial
Services
Live Entertainment Mexico, Argentina, Brazil,
Chile, Spain, Latin U.S. Venue Operation Gaming Am
usement Parks
Sponsorships, Movie Theater Advertising Billboard
Advertising / Overpasses Airports Naming
Rights Radio, Rotational Advertising Food,
Beverage and Merch.
Ticketing Mexico, Brazil, Argentina,
Chile Teleservices
77
13
10
Revenue Contribution
4
5
Content

• Entertainment Division
• Commercial Division
• Services Division
• Financial Results for 3Q2004
• Operating Results for 3Q2004 and 2004 Outlook

5
6
Entertainment Division

• Vertical integration maximizes revenues /
  minimizes risks

35 Additional Revenue Streams
US100 in Box Office Receipts
Sponsorship US 27
Ticketing US 7
FB/Merchandising US 1
Expenses US 38
Artists US 40
Promotion US 10
Venue US 12
Breakeven point (number of tickets)
6
7
Entertainment Division Live Entertainment

• Mexico
• Leading live entertainment company
• Partnerships/JV with Televisa, Ticketmaster and
  others
• 3,391 live events produced in 2003 5.6 million
  attendees
• Operates 11 live entertainment venues
• Musical, theatrical, sporting, family / cultural
  and corporate events
• Growth Opportunities
• Utilize assets to build additional revenue
  streams
• Sporting events Beach Volleyball, Triathlons,
  etc
• Strongest concert calendar in years (for 2004)
• Leverage synergies afforded by Televisa
  relationship Content exchange, access to
  advertising, etc.
• Auto racing NASCAR Mexico Desafio Corona,
  Monster Trucks
• Popular Fairs and Folkloric events

7
8
Entertainment Division Live Entertainment

• Brazil
• Operates 4 live entertainment venues in Sao
  Paulo and Rio de Janeiro
• Musical, theatrical, family / cultural and
  corporate events
• Regional tours
• Strong local talent base
• Growth Opportunities
• Expand local productions in the country
• Argentina / Chile
• Operates Teatro Sky Opera and Obras Sanitarias
  in Buenos Aires
• Musical and local theatrical events
• Operates the Buenos Aires Zoo
• Produces live events in Santiago, Chile
• Growth Opportunities
• Expand local productions, evaluate international
  artist events

8
9
Entertainment Division Live Entertainment

• Spain
• Companys stronges theatrical market
• JV with Stage Holding, Europes leading theater
  production company
• Strong widely acclaimed productions in
  portfolio
• Mamma Mia!, Aida, Sound of Music, 42nd Street
  and others
• Operates 3 live entertainment venues in Madrid
• Currently playing CATS and Cabaret
• U.S. Latin market
• Promotes Latin talent for the U.S. market

9
10
Entertainment Division Gaming

• 52 Hectares located in exlcusive area of Mexico
  City
• Rights obtained in 1998
• Horse race track 25 years, renewable
• Surrounding areas 50 years, renewable
• License to operate 45-off track betting centers
  / number based games
• A family destination entertainment concept Horse
  race track, Trade Exhibition Center, Granja las
  Américas and other planned developments

Horse race track
Trade Exhibition Center
Horse Stables
Granja
10
11
Entertainment Division Gaming

• Las Américas Horse Race Track
• One of the worlds longest racing season
• begins late January, ends early December
• Seating capacity for 7,500 visitors
• More than 1,400 races in season
• More than 1,500 horses in inventory

11
12
Entertainment Division Gaming

• The Sports Books (off-track betting) and Yaks
  (number based games) network began operations in
  1999
• Currently there are 28 units in operation

• 28 units opened as of September 2004
• Additional units for 2004

Hermosillo Chihuahua Monterrey Ciudad Neza Morelia
Mexico City 16
12
13
Entertainment Division Trade Exhibition Center

• Centro Banamex is the largest and most important
  convention center in Mexico
• Total area over 180,000 square meters
• Exhibition area is 34,000 square meters
• The leader in its marketplace, renting over 5m
  square meters of exhibition space
• Located inside the Las Américas Complex
• Bookings and capacity are over 80
• Expos include Expo Comm, Abastur, Mexican Gift
  Show, etc.

13
14
Entertainment Division Granja Las Américas

• 1.4 Hectares and 9,000 m2 of construction an
  extreme sports area and 21 theme pavillions
• An investment of Ps. 82.3 million, primarily
  covered by sponsors
• Able to receive 3,000 visitors per day in two
  shifts 540,000 visitors budgeted for the first
  year of operations

14
15
Entertainment Division Theme Parks

• CIE is Latin Americas leading operator /
  developer of amusement parks
• 7th largest park operator in the world
• Number of attendants in 2003 reached 10 million
• Operation of 11 amusement parks in 5 cities
• CIE focusses on serving low/medium-level-of-income
  social groups

• Mexico City
• Divertido Ciudad de México
• La Feria de Chapultepec
• Naucalli Mágico
• Perimágico
• Planeta Azul

• Acapulco
• CICI

• Bogotá
• El Salitre Mágico
• CICI Aquapark

• Guadalajara
• Divertido Guadalajara
• Selva Mágica

• Miami, Florida
• Wannado City

15
16
Entertainment Division Theme Parks

• Creation of unique concept for the U.S. Market
  Wannado City
• What it is
• Americas first indoor role-playing theme park
  for kids
• What kids do there
• Learn by having fun, through a concept called
  real play
• Key Business Drivers
• Admission revenue, in-facility revenue,
  sponsorships
• Experienced management team in place
• Pricing 24.95 age 3 14 adults 15.95
• Estimate 1M visitors in first 12 months of
  operations

16
17
Entertainment Division Theme Parks

• Positioning Wannado City
• Disney Magic
• Universal Studios Adventure/Action
• Nickelodeon Kids
• Cartoon Network Animation
• Discovery Educational
• PBS Young kids/Educational
• Wannado City REAL

17
18
Content

• Entertainment Division
• Commercial Division
• Services Division
• Financial Results for 3Q2004
• Operating Results for 3Q2004 and 2004 Outlook

18
19
Commercial Division - Advertising Properties /
Sponsorships

• We have become an extraordinary alternative for
  connecting brands with segmented markets

Music
Amusement Parks
Movie Theater Advertising
Audience Measurement
Naming Rights
Ability to use an advertising property to highly
target the advertising customer
Overpasses
Airports / Skywalks
Becoming integrated partners in brand positioning
Venues
Ticketing
Corporate Events
Radio
Rotational Advertising
19
20
Commercial Division - Cineminutos

• Advertising at Mexican Cinema theaters
• Agreements with Cinepolis and Cinemark, two
  Mexican leading cinema operators, which amount
  with over 60 of total marketshare.
• The advertising market at cinema theaters is
  valued at US40 million
• Advertising that targets a defined customer base
• Not competing against TV or radio
• Rights also include
• Marketing of Cineminutos
• Commercial exploitation of all promotional
• and advertisements at theaters
• Promotional of special events at theaters
• 1,356 projected screens 8 higher than
• 2003

20
21
Commercial Division - Publitop

• Pedestrian Overpasses
• Agreements with several municipalities for the
  installation of overpasses
• In return CIE is granted the long-term
  advertising rights to exploit
• Operations of 189 overpasses as of June 2004
• Acquisition of Keenex, Mexicos third largest
  pedestrian overpass operator
• Publitops capacity increased by 43 to 218
  concessions
• Advertising at Airports
• 8-year agreement with Grupo Aeroportuario
  
  Centro Norte for the marketing of indoor
  advertising
• Outdoor advertising billboards on access
  streets,
  benches, parking areas and other outdoor
  areas
• Indoor advertising baggage claim areas,
  corridors,
  boarding areas, etc.
• Annual passenger flow approx. 11 million

21
22
Commercial Division - Unimarket

• Static-Rotational Advertising
• Marketing of static-rotational advertising on the
  side line barriers of professional soccer fields
  in Mexico
• Soccer is the most important popular and
  recreational activity in the country
• Professional matches are attended by all
  socio-economic groups
• The most important advertising presence and
  impact during matches is static-rotational
  signage
• Over 300 matches are annually broadcasted by TV
• Advertisement for 11 Mexican soccer teams

22
23
Commercial Division - Radio

• The Business
• Leading operator of radio stations in Argentina
• Activities began in 1998 with the acquisition of
  RP, owner of Radio Splendid and RockPop,
  leading frequencies in AM and FM, respectively
• Acquisition of three leading radio operators in
  2000, which led to the creation of the largest
  radio group in the country
• An extraordinary medium of communications and
  promotion for the different events the Company
  produces
• FM marketshare for the company is above 45
• The market leader in invoicing volume, close to
  55 of the market

23
24
Content

• Entertainment Division
• Commercial Division
• Services Division
• Financial Results for 3Q2004
• Operating Results for 3Q2004 and 2004 Outlook

24
25
Services Division Ticketing

• Leading ticketing business in the region, with
  medium- to long-term contracts with venues,
  promoters and events
• Operations through call centers, box offices,
  internet and outlets in the region
• More than 10.4 million tickets sold in the region
  in the first six months of 2004

Country Community Start-up
Mexico City Monterrey Guadalajara
Mexico
1992 1993 2001
Argentina
1998
Buenos Aires
Chile
Santiago
1998
Brazil
Sao Paulo Rio de Janeiro Salvador
2000 2001 2001
On-line activities are currently carried on
in Mexico and Brazil.
25
26
Services Division - Teleservices

• Sitel
• JV with Sitel Corp. for teleservices for large
  corporations in Mexico and Latin America.
• Call centers in Mexico City and Monterrey, Bogotá
  and Panama City with in and out-bound services.
• Product orders
• Credit card activations
• Fraud protections
• CIE has provided services to clients in different
  industries in companies which include

• Aegon
• American Express
• America On Line
• Banamex
• Banorte
• Hewlett Packard

• Ford Insurance
• Palm
• Philip Morris
• Prodigy
• Serfin
• Telmex

• Avaya
• Comcel
• Microsoft
• TV Cable
• HSBC Bank
• Many others

26
27
Content

• Entertainment Division
• Commercial Division
• Services Division
• Financial Results for 3Q2004
• Operating Results for 3Q2004 and 2004 Outlook

27
28
Operative Highlights
Chg
3Q03
3Q04
9M03
9M04
Chg
2.9 (1.0) 5.3 12.9 7.8 (2.0) (22.1) (2
0.0) (8.1) 33.3
Events Live Racetrack (racing
days) Ticketmaster Tickets (Mil.) Mexico
South America Total Attendance (Mil. of
people) Live Events Amusement Parks Las
Américas Horse Racetrack Sports Books Yaks
Per capita consumption (Ps.) Shops
Pedestrian Overpasses Structures in
operation Billboards Cineminutos Movie
Theaters
1,260 43 3.7 1.9 5.6 1.9 3.5 0.2 619 21
122 431 1,280
1,280 39 3.5 1.7 5.2 1.5 2.5 0.3 564 28
213 687 1,384
3,749 127 9.6 4.8 14.5 5.0 7.7 0.5 639 21
3,857 126 10.2 5.5 15.6 4.9 6.0 0.4 588 28
1.6 (9.3) (5.5) (12.2) (7.8) (21.1) (28
.6) 50.0 (9.0) 33.3 74.6 57.2 8.1
28
29
Financial Highlights
Chg
3Q03
3Q04
9M03
9M04
Chg
Revenue EBITDA EBITDA Margin Operating
Income CCF Current Assets Assets L.T. Other
Assets Total Assets Debt Total
Liabilities Stockholders Equity
1,772 406 22.9 285 60 4,563 10,417 14,980 4
,667 6,619 8,362
1,932 424 22.0 294 64 4,813 10,318 15,131 5
,040 7,694 7,437
9 5 (90 pb) 3 6 5 (1) 1 8 16 (11)
4,934 1,137 23.1 792 151
5,533 1,235 22.3 848 287
12 9 (80 pb) 7 89
Note Figures are expressed in millions of
Mexican pesos as of September 2004
29
30
Revenue by Division
3Q03
3Q04
9M03
9M04
Entertainment Commercial Services
76 13 10
77 13 10
76 14 11
77 13 10
The total may not add up to 100 due to
rounding
Revenue Distribution by Division
10
13
8
7
7
10
Note Figures are expressed in millions of
Mexican pesos as of September 2004
30
31
EBITDA and EBITDA Margin
1 1
2 3
1 4
1 5
1 6
3 9
1 10
1 11
4 15
4 19
2 21
2 23
2 25
Units opened Units in operation
3 28
1 28
Note Effect on the reubication of the unit
located at Angus Centro Historico, D.F.
31
32
Debt Profile

• By the end of 3Q04, the Groups debt was
  Ps.5,040 millions from which 79 is denominated
  in pesos, 14 in UDIs, and the rest in other
  currencies.

• The annual amortization and the allocation is as
  follows

3,000
Total Ps.5,040
2,480
2,500
2,000
Millions of pesos 04
1,500
1,063
1,000
625
500
358
283
151
46
34
0
2004
2005
2006
2007
2008
2009
2010
2011
1
Part. o/tot.
3
21
7
49
12
6
1
32
33
Debt Profile (cont.)

• Refinancing

Sep.04

• Citicorp (US20 mill. due in 2011 LIBOR350
  pb) Proceeds were used in refinancing short-term
  debt incurred in the past for the construction
  and operation of Wannado City Miami.
• CSFB (US30 mill. due in 2008 LIBOR330 pb)
  aimed at refinancing CIEs short term debt to
  long term. Subsequently, the Company contracted a
  Swap secured in Mexican pesos and interest rate
  based on TIIE 330 pb

Debt Bank Loans Securitized Loans
Total Cash Net Debt Interest Paid
3Q04 Stockholders Equity EBITDA 3Q04 EBITDA
LTM Ratios EBITDA-to-Interest Expense Net
Debt / Stockholders Equity Net Debt / EBITDA
LTM
2,363 2,677 5,040 603 4,437 125 7,437 424 1,
680 3.51x 0.60x 2.64x

• Swap with CSFB to convert Ps.1,490 millions, (or
  69) of CIEs UDI-denominated medium term note
  principal value into Mexican pesos, from a total
  of Ps. 2, 177 millions.

33
34
Content

• Entertainment Division
• Commercial Division
• Services Division
• Financial Results for 3Q2004
• Operating Results for 3Q2004 and 2004 Outlook

34
35
CIE Entertainment

• Live Events

• Strong agenda of international events, presented
  at Palacio de los Deportes, Teatro Metropolitán,
  and Salón 21 g.e. Stomp, The Cure, Kiss, Sting
  Annie Lennox

• New projects

• Hermanos Rodríguez Race Track

• Organization of ¼ mile competitions
  construction of an additional part of the race
  track
• Organization of Off-road competitions.

• Organization of Feria del Fútbol and of
  CuerpoManía

• Grand Prix of Mexico 2004

• Hermanos Rodríguez Race Track, Nov. 5-7
• 25 sponsors confirmed (g.e. Telmex, Gigante,
  Banamex, Roshfrans, Tecate, Herdez,
• Bridgestone, Comex, Telcel, Johnson Controls,
  Tag, Nextel, IBM, Sports City)

35
36
Agenda of upcoming events

• Cabaret
• Cats

• Norah Jones
• REM
• Enrique Bunbury
• The Doors
• David Byrn
• Yanni
• Pet Shop Boys
• G3
• Juan Gabriel
• Chayanne
• Sin Bandera
• Rocio Durcal
• Oreja de Van Gogh
• Belinda
• Circo Tyani
• Gran Premio de México
• Desafio Corona 2004
• Oliver
• Violinista en el Tejado

• Deborah Colker
• Alicia Keys
• Lulú Santos
• The Calling
• The Wailers
• Maria Rita
• Beth Carvalho
• Unimed
• The Offspring
• Cezario Formaturas
• The Doors
• Jota Quest
• Roupa Nova
• Bruno Marrone
• Danni Carlos
• Arraiá do Guanabara
• Sandy Junior
• G3
• The Wailers

• Fito Paez
• Rata Blanca
• Café Tacuba
• The Doors
• Catupecu
• Peter Pan
• Nuts
• Creamfields
• G3
• The Wailers
• Kraftwork
• Los Ratones

36
37
CIE Amusement Parks

• Wannado City Miami

• The park initiated operations on August 12, 2004
  at Sawgrass Mills
• Attendance levels (2,000 persons / day) and per
  capita (US23.00) growing, according to
  projections.
• Reinforcement of merchandising strategy
• Jurisdictional situation with Amazing Toys
  arranged

• Chicagos Wannado City Project

• Park to be located at Gurnee Mills, operated by
  The Mills Corporation
• Authorization based on the results of the
  economic and market studies.

• Valle Fantástico at Puebla

• Operation, assessment, and administration of the
  first amusement park in Puebla
• Will initiate operations on December 2004, with
  an attendance level of nearly 700, 000

• Guadalajaras La Granja Project

• Presentation of the concept to local sponsors,
  who show interest for the project
• Planned to be located at Divertidos lands that
  havent been used

37
38
CIE International

• Argentina

• Positive trend on assisstance and per capitas
  continues at the Buenos Aires Zoo.
• Peter Pan and Nuts, medium format theatrical
  plays, registred profitable levels of assistance
  and a stable trend.

• Brazil

• Renovation of theatrical contents in Sao Paulo

• Opening of Chicago, which substitutes La flor
  de mi buen querer
• Valuation studies for the opening of The
  Phantom of the Opera
• Opening of Mademoiselle Channel

• Continues the expansion of events based on local
  talent, and new concepts, into the country

• Spain

• Trend towards a slow recuperation in attendance
  at theatrical productions after March
• 11, 2004. Cats and Cabaret
• Attendance temporarily affected because
  seasonality (Summer vacations on Spain)

38
39
CIE Commercial

• Publitop and Media Innovations Digital
  Advertising at airports

• Digital boards of advertising and flights
  information, on the 13 airports of GACN
• Monterrey, Acapulco and Ixtapa are the first
  airports with the concept, the rest of them will
  be installed on the first months of 2005.

• Benefits for advertisers

• Advertisment displayed near the information the
  passengers and visitors always look for.
• Impacts 11.5 millions passengers, more than 8.5
  millions visitors.
• The concept inables the implementation of local,
  regional, or national strategies.

39
40
CIE Las Américas

• Twenty eight Sports Books and Yaks units working
  at 3Q04 openning of Tonalá and relocation of the
  Centro Histórico (D.F.) unit.

• Three opennings programed by the end of 2004
  Ciudad Neza, Hermosillo
• and Morelia

• Spots evaluated for initiating operations for
  the next year include

• Puebla
• Monterrey
• Cuatitlán Izcalli
• Distrito Federal
• Tampico

• Reynosa
• Acapulco
• Coatzacoalcos
• Ecatepec

40