Corporación Interamericana de Entretenimiento, S.A. de C.V.
Fourth Quarter 2004
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.
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Content
Financial Results 4Q2004
Operative Results 4Q2004 and Outlook for 2005
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Operative Highlights
Events
Concerts
Musicals
Other theatrical productions
Others**
Total
2004
2003
% Chg
1,042
1,975
1,385
703
5,105
942
1,858
2,164
223
5,187
10.6%
6.3%
(36.0%)
217.9%
(1.6%)
Ticketmaster Tickets (thousands)
Mexico
South America
Total
13.8
7.0
20.7
13.2
6.3
19.5
4.5%
11.1%
6.2%
Attendance (thousands of people)
Events
Amusement Parks
Las Américas Horse Racetrack
7.1
7.6
0.6
7.9
10.0
0.6
(10.1%)
(24.0%)
N.A.
Sports Books & Yaks
Per capita Consumption (Ps.)
Attendees (in thousands)
Units in operation
588
6.9
31
544
4.8
23
8.1%
43.8%
34.8%
Pedestrian Overpasses
Structures in operation
Advertisements
192
714
132
475
45.5%
50.3%
1,393
150
1,342
152
3.8%
(1.3%)
Cineminutos
Movie Theaters
Minutes (thousands)
** Familiy, Special, Cultural, and Sporting Events
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Financial Statistics
2004
2003
% Chg
2002
2001
2000
CAGR*
7,787
7,034
10.7%
6,552
5,815
4,826
12.7%
1,710
22.0%
1,609
22.9%
6.3%
1,526
23.3%
1,365
23.5%
1,196
24.8%
9.4%
473
3.52x
399
4.03x
18.6%
344
4.44x
317
4.30x
279
4.28x
14.8%
4,792
10,224
15,016
4,345
9,863
14,208
10.3%
3.7%
5.7%
4,623
10,092
14,715
4,925
8,725
13,650
4,782
7,085
11,867
0.2%
9.6%
6.1%
Debt
Total Liabilities
5,145
7,759
4,979
7,098
3.3%
9.3%
4,580
6,515
3,881
6,196
3,418
4,975
10.8%
11.7%
Stockholders´Equity
Stockholders´Equity, proforma
7,257
7,598
7,109
8,819
2.1%
(13.8%)
8,200
8,200
7,454
8,218
6,892
6,892
1.4%
2.3%
Debt / Stockholders´Equity
0.71x
0.70x
0.56x
0.52x
0.50x
Revenue
EBITDA
EBITDA Margin
Interests paid, net
EBITDA / Interests paid, net
Current Assets
L.T. Assets & Other Assets
Total Assets
Note: Figures are expressed in millions of Mexican pesos as of Dec 2004, unless otherwise specified. Figures may vary due to rounding.
*Componded Annual Groth Rate
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Revenue by Division
% Chg Quarterly Revenues
4Q04
%
4Q03
%
1,800
+6%
1,600
Quarterly Revenue
Quarterly Revenue: +7%
1,400
1,200
Entertainment
Commercial
Services
1,674
275
208
78%
13%
10%
1,580
242
190
79%
12%
9%
1,000
800
600
+13%
400
Total
2,157 100%
2,013
100%
+9%
200
0
Entertainment
Commercial
4Q03
2004
%
2003
4Q04
% Chg. Annual Revenues
%
7,000
Annual Revenue
Services
+11%
6,000
Entertainment
Commercial
Services
5,984
1,011
792
77%
13%
10%
5,390
921
722
77%
13%
10%
5,000
Annual Revenue: +11%
4,000
3,000
+10%
2,000
Total
7,787 100%
7,034
100%
+10%
1,000
0
Entertainment
Commercial
2003
Note: Figures are expressed in millions of Mexican pesos as of Dec 2004, unless otherwise specified.
* Figures may vary due to rounding.
Services
2004
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EBITDA
Quarterly EBITDA
Annual EBITDA
2004
2003
% Chg
453
452
N.A.
1,710
1,609
6%
% Chg. Annual EBITDA: +6%
460
1,800
450
1,600
Millons of Mexican pesos
Millons of Mexican pesos
% Chg. Quarterly EBITDA: N.A.
440
430
420
410
1,400
1,200
1,000
800
600
400
400
4Q03
4Q04
2003
2004
Note: Figures are expressed in millions of Mexican pesos as of Dec 2004 unless otherwise specified.
* Figures may vary due to rounding.
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Cost-Bearing Debt
As of Dec 2004, the Group’s debt was Ps.5,145 millon, 25% of which
is short-term and the remaining debt is long-term.
Pro forma Debt Amortization Calendar
UDIs
14%
Other
Currencies
7%
3,000
Millone of Mexican pesos
2,500
High Yield
(7 year)
2,000
1,500
High Yield
(10 year)
Mex Pesos
79%
HY
UDI
Bond
1,000
New
UDI Bond
(10 year)
500
0
2005
Bank Loans
2006
2007
2008
Notes
2009
2010
UDI 2007
2011
2012
2013
High Yield
2014
2015
New UDI Bond
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Other Extraordinary items
Other net extraordinary items were Ps. 341 million in 2004
These items were the result of:
Expenditures related to the closure of theater operations in the Spanish market
that did not require the use of cash
Reserves in the Group’s Accounts Receivables (approximately 3% of AR)
Charges related to the reorganization of rotating advertising sales in Mexican soccer
stadiums from 2Q05 through 4Q05.
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Content
Financial Results 4Q2004
Operative Results 4Q2004 and Outlook 2005 2005
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CIE Entertainment
51% partnership with As Deporte:
A leading organizer and promotor of 29 public and private annual sporting events
in Mexico
- Off-track Racing
- Swimming
- Extreme Sports
- Triathlons
- Mountain Biking
Incorporation of key sports sponsors:
- Banamex
- Grupo Imagen
- Deportes Martí
- TV Azteca
- Fonatur
- Others
- Televisa
- Mexicana
- Telmex
- Sport City
- Grupo Andersons
“Cirque du Soleil” will be on tour from 3Q-4Q05 in Mexico City, Guadalajara and
Monterrey
The Monterrey Fair will be added to the Group’s popular fair portfolio
“Joseph and the Technicolor Dreamcoat” and “Fidler on the Roof” performances
continue; “Little Orphan Annie” opened in 4Q04
NASCAR,“Telcel Motorola México 200 sponsored by Banamex”, March 5-6th 2005
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Upcoming Events Schedule
Belinda
Miguel Bosé
Juanes
Finding Nemo (Disney on Ice)
Arjona
Vicente and Alejandro Fernández
Marco Antonio Solís
Ricardo Montaner
Franco de Vita
Duran Duran
James Brown
Simple Plan
Buena Vista Social Club
Santana
Pink Floyd Laser Light Show
Lenny Kravitz
Eminem
Ramstein
Phil Collins
Neil Diamond
Coldplay
Bob the Builder
España Baila Flamenco
Waterwall
Robert Gallup
Joseph and the Technicolor Dreamcoat
Fidler on the Roof
Defending the Caveman
Little Orphan Annie
Texcoco Fair, Mexico City & Monterrey
Theme Fairs
Aladin
Camel Genuine Sound
Southfest
Creamfields
Brilho
Stillos
Araketu
Angra
Forte Real
Joao Bosco
All Stars 80
Pedro Mariano
Vanessa da Mata
Nando Reis
Engenheiros do Hawaii
Fernanda Porto
Maria Bethania
Symantec
Saxon
Catedral
Elba Ramalho
Roupa Nova
Grave Digger
Ivan Lins
Black Moore’s
Palabra Cantada
Emmerson Nogueira
Toy Lima
Maria Rita
Chiclete com Banana
Edson & Hudson
Placebo
Skank
Ana Carolina
Xuxa
Roberto Carlos
Zeca Pagodinho
Bruno e Marrone
Fabio Junior
Charlie Brown Jr.
Felipe Dylon
Anthrax
Guanabara
Miss Saigon
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CIE Amusement Parks
Wannado Entertainment:
Increasing attendance at Wannado Miami: from 19,000
in August to 42,000 in December
45,000
41,622
41,217
40,000
Attendance
36,740
35,000
30,000
24,916
25,000
20,000
18,935
15,000
August
September
October
November
December
Changes in Management: René Aziz as head of WE
Fine-tunning of costs and expenditures in order to sustain
profitability
Awareness: Strategic restructuring of prices, sponsorships,
marketing, PR and operations
Valle Fantástico:
Dec ‘04: inauguration of the park in Puebla with a local partner and attractions
of the Divertido Pack
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CIE Las Américas
Books/ Yaks:
Opening of units in Hermosillo and Ciudad Neza for a total of 31 units in 2004 vs. 23 in
2003;
40 units are scheduled to be operating in 2005 and 45 units in 2006
Upcoming inaugurations in 2005: Morelia (already opened), Cuautitlán Izcalli, Puebla,
Tampico, Monterrey and Reynosa, among others
Calle de Entretenimiento:
Reduction of the track at the Horse Racetrack
This will not affect the racing schedule
Estimated time to complete the track reduction: 4 months
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CIE International
Spain:
CIE and Stage Holding realigned their geographic objectives and
concluded their partnership in the Spanish theatrical market:
- Upcoming expiration of venue rights for theaters in Madrid and theatrical rights
- Growing level of competition in theatrical promotion, including a price and sponsorship war
- Increasing costs to acquire international content rights
- CIE: Free Cash Flow Generation
Brazil:
“The Phantom of the Opera” (Apr.05), and the return of “Mademoiselle
Chanel” (Feb.05) as well as “La Flor de mi Buen Querer” (Jul.05)
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CIE Commercial
Advertisements on pedestrian overpasses:
Begin expanding towards Puebla
Renovation of existing, long-term municipal concessions (10
years)
Digital advertising, inside and outside of airports:
The installation of digital panels in airports operated by
Grupo Aeroportuario Centro Norte, based on the following plan:
- Acapulco, Ixtapa and Monterrey (3Q04)
- Chihuahua, Ciudad Juárez and Torreón (4Q04)
- Culiacán, Mazatlán and Tampico (1Q05)
- Zacatecas, Durango, S.L.P. and Reynosa (2Q05)
Proposals to other airport operators for this type of product
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