Consejo de CIE 3T 2006 Administración Third Quarter Julio 20,2006 October, 2006
Corporación Interamericana de Entretenimiento, S.A. de C.V. 0
Agenda
1. Company Overview 2. Financial Performance 3. Appendix
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Section 1
Company Overview
2
Leisure Industry
LEISURE INDUSTRY ENTERTAINMENT Culinary Arts
Sports Travel
Hobbies Reading
ENTERTAINMENT “IN HOME”
Open Television Cable Television Satellite Television Video/ DVD Internet Videogames Music/radio Gaming (internet)
ENTERTAINMENT “OUT OF HOME”
Compete for the time and Spending money of consumers
Movies Videogames (Recórcholis, Moy, etc.) Theme Parks Live entertainment: - Sports - Theater, concerts/ cultural - Popular/ folkloric events - Popular dance events
Gaming Family Entertainment Centers: Dave & Busters, Recórcholis, Div. Moy, etc.
3
Business Model Business Model that adapts to various forms of “out-of-home entertainment” Events:
Stadiums
h Music
Arenas
h Sporting
Trade & Exhibition Centers
h Folkloric & Popular
Amusement Parks
h Family
Zoos
h Corporate / Special
Race Tracks
h Cultural
Amphitheatres
h Theater
Theaters
Mechanical Games
Auditoriums
Betting / Gaming Animals (Zoo) Horse Racing
Sponsors
Ticket Sales
Food & Beverage
4
Souvenirs
Organizational Structure – Key Operating Divisions
CIE Entertainment
CIE International
JV with
Zoo & radio Event promotion
Operation of venues Artist agency Food, beverages and souvenirs
CIE Amusement Parks
Sponsorships
Argentina
Event promotion
CIE Commercial
JV with
Pedestrians overpasses
)
Brazil: event promotion
Horse racetrack
Panama)
Two parks in Bogota
Centro Banamex
Rotational & Static advertising
Wannado project in the U.S.
Granja Las Américas (Petting Zoo)
Naming rights
Ticketing
Cineminutos
Special and corporate events
Tele-services (Mexico, Colombia & Panama)
9M 2006 REVENUES
9M 2006 EBITDA
27% Entertainment
20% Commercial
22% Commercial
13% International
15% International 6% Parks
Sports Books and Yaks (number based games)
Six parks in Mexico
Billboards (Mexico &
Chile: event promotion
CIE Las Americas
32% Las Américas
5
4% Parks
17% Entertainment
44% Las Américas
Section 2
Financial Performance
6
CIE Consolidated (Millions of pesos as of September, 2006)
REVENUES
EBITDA 2,355
2,294
518
506
+3%
+2%
3T05
3T06
3T05 EBITDA MargIn
325 (5%)
Capex
Ps.166
22.0%
23% Commercial
3T06
22% Commercial
* Note: Represents EBITDA - Capex
7
13% Entertainment
17% International
6% Parks
Ps.193
EBITDA 3T06
16% Entertainment
20% International
3T05
22.1%
REVENUES 3T06
OPERATING CASH FLOW* 340
3T06
35% Las Américas
4% Parks
44% Las Américas
CIE Consolidated Debt Profiel As Of September 30, 2006
22%
186 3%
Bank Debt Ps.
33% 1,446
1,045 16%
2006
2,199
Debt September 06 (Total = 6,592)
• Potential to Issue Local Commercial Paper
2007 Bank Debt US
715
642
11%
10%
2008
2009
UDIs
358 5% 2010
Comm, Paper S.T.
Denomination
2011
2015
Comm. Paper L.T. 10 year HY Bond
Ratios:
Interest coverage, net Net Debt / Stockholders’ Equity Net Debt / EBITDA WACC WACD Debt with Coverage Swap/Coupon Swap/Principal Fixed Rate Floating Rate
39% USD 53% Pesos
9% UDIS
8
2.65 x 0.89 x 2.86 x 11.61% 9.98% 26.21% 16.10% 10.11% 42% 58%
CIE Entertainment (Millions of Pesos as of September, 2006)
REVENUES
EBITDA 65
612 (37%)
3T05
44
387
3T06 EBITDA Margin
OPERATING CASH FLOW*
+48%
3T05
3T06
7.2%
16.8%
REVENUES 3Q06
EBITDA 3Q06
53 Entertainment 16%
57% 34
Capex
3T05
3T06
Ps.10
Ps.12
* Note: Represents EBITDA - Capex
9
Entertainmnet 13%
CIE International (Millions of Pesos as of September, 2006)
REVENUES
EBITDA 464
298
89
+56%
3T05
57
3T06 EBITDA Margin
OPERATING CASH FLOW*
52
Capex
62%
3T05
3T06
Ps.5
Ps.4
3T05
3T06
19.1%
19.1%
REVENUES 3Q06 International 20%
84
* Note: Represents EBITDA - Capex
10
+56%
EBITDA 3Q06 International 17%
CIE Commercial (Millions of Pesos as of September, 2006)
REVENUES
EBITDA
618
173
540 (13%)
(33%)
3T05
3T06 EBITDA Margin
OPERATING CASH FLOW* 154 (33%)
Capex
3T05
3T06
Ps.18
Ps.12
3T05
3T06
27.9%
21.4%
REVENUES 3Q06 Commercial 23%
104
* Note: Represents EBITDA - Capex
11
116
EBITDA 3Q06 Commercial 22%
CIE Parks (Millions of Pesos as of September, 2006)
EBITDA
REVENUES 166 24
140 (16%)
3T05
(8%)
3T05
3T06 EBITDA Margin
OPERATING CASH FLOW*
3T05 Capex
Ps.3
14.5%
REVENUES 3Q06 Parks 6%
21 (21%)
22
17
3T06 Ps.5
* Note: Represents EBITDA - Capex
12
3T06 15.8%
EBITDA 3Q06 Parks 4%
CIE Las Américas (Millions of Pesos as of September, 2006)
REVENUES
EBITDA 824
227
208 600
+37%
3T05
+9%
3T06
3T05 EBITDA Margin
OPERATING CASH FLOW*
REVENUES 3Q06
78 (15%)
3T05 Capex
Ps.130
34.7%
Las Américas 35%
67
3T06 Ps.160
* Note: Represents EBITDA - Capex
13
3T06 27.5%
EBITDA 3Q06 Las Américas 44%
CIE Las Américas
At the end of 2006 the company will have installed 45 units 45
39 8
31 23
6
8 Currently the company has:
15
8
39 31
8 4
1 1
4 3 1
1999
2000
2001
4
Opened Units
• 43 Sport Books & Electronic Yaks
23
7 15 8 2002
2003
Opened per year
2004
2005
Projected
14
• 31 Traditional Yaks
2006
Market – License Status
CIE Las Américas
Currently
May 2005
Total = 342 licenses (1)
Total = 150 licenses
Televisa - 65 19%
C1E - 45 13%
C1E - 45 30%
Caliente - 88 59%
Caliente - 88 26%
Mio - 3 2%
Rivapalacio - 53 15%
Otros 14 9% (Rivapal., Club21, Alegre, etc.)
Entretenimiento de México - 30 9%
Eventos Festivos de México-20 Promojuegos Juega y 6% (Femalamex)-10 Juega-18 3% 5% MIO-13 4%
Source: Local Press: La Crónica, Jornada, Universal y Reforma. Ministry of Interior (SEGOB) Sports Books & Yaks – Marketshare
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CIE Las Américas
Market – License Status
Licenses in Operation (2006) Total = 127
Televisa - 4 Rivapalacio - 2 Caliente - 70
C1E - 43
Promojuegos (Femalamex)- 2 MIO-2
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Eventos Festivos de México-2
CIE LAS AMÉRICAS
During the quarter the company opened its new concept in gaming called Royal Yak. The company installed over 800 terminals at this location alone. At the end of the third quarter of 2006, there are 43 locations in operation in comparison to 39 at the end of June 2006. The company will open an additional unit during the month of October and will more than likely open the last location at the end of December, early January.
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Section 3
Appendix
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CIE – SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE
359 mm, one series of shares with equal Management Group 24%
voting rights. Market Cap Ps.6,357 mm Ticker: CIE (Bolsa Mexicana de Valores) Bloomberg: CIEB MM
Free Float 76%
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www.cie.com.mx
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