Central Eastern Europe & Israel Investor Presentation

Central Eastern Europe & Israel Investor Presentation 19 May 2014, Warsaw Contents

. Central Eastern Europe & Israel . Country Overview • Poland • Romania • Hungary • Bulgaria • Czech Republic • Slovakia • Israel Central Eastern Europe & Israel Strategy focused on three fundamentals

Sub section

1 2 3 Quality of cinemas Growth and value Sustainable results and service creation Quality That Encourages Return Visits

Best cinemas Best service Best solutions

. Cinema City was twice awarded the title Exhibitor of the Year by the industry: in 2004 during ShoWest in Las Vegas and in 2011 during CineEurope in Amsterdam . Cinema City teams are dedicated to providing the best client service to customers . E-commerce solutions are being developed across the cinema chain . Cinema City multiplexes are being refurbished to maintain the same high standard

We offer best viewing experience moving forward with worldwide trends Digital 2D and 3D projection in all multiplexes IMAX® giant 3D theatres in 10 cities 4DX™ auditoriums in 5 multiplexes Partnership with IMAX®

Cinema City currently operates 10 IMAX® theatres: . Immersive 3D picture and 9 in the CEE and 1 in Israel IMAX sound

. Screening of the biggest blockbusters post- digitalization

Rishon Lezion, Israel, Arkadia, Warsaw, Poland . Key advantage in negotiating Manufaktura, Łódź, Poland lease agreements Punkt 44, Katowice, Poland Plaza Kraków, Poland Plaza Poznań, Poland Flora Prague, Czech Republic . Further 3 IMAX® theatres to Arena Budapest, Hungary be added in the CEE and Cotroceni, Bucharest, Romania Mall of Sofia, Sofia, Bulgaria Israel 4DXTM Deployment Program 1st stage completed in May 2013 West End in Budapest, Hungary Arkadia in Warsaw, Poland Yes Planet Rishon Lezion, Israel

124 152 140 seats seats seats

19 July 2012 22 March 2013 21 May 2013

Novy Smichov in Prague, Czech Paradise Center in Sofia, Bulgaria Republic Cinema City opened five 4DX™ auditoriums with a total of 712 seats 124 172 seats seats The Company plans to continue opening 4DX™ in its prime located cinemas 22 May 2013 22 May 2013 VIP auditoriums in 7 key locations

Special offer for Offer designed Separate concession business clients for for clients seeking area offering menu meetings, trainings and special treatment tailored to VIP clients leisure Central Eastern Europe & Israel Theatre Operations

100 multiplexes – 972 screens in operation

# of screens

Poland 339 35%

Hungary 176 18%

Romania 148 15%

Israel 104 11%

Czech 111 11%

Bulgaria 65 7%

Slovakia 29 3% Central Eastern Europe & Israel Growing numbers of developing cinema chain

97 123 151 342 365 461 504 566 668 722 906 952 966

27 33 38 96 99 144 161 179 212 235 268 281 298

35.5 36.3 37.4 No of screens 30.5 Revenues in EURm 27.5 No of admissions (m) 22.2 19.8 17.2 14.6 15.3 7.5 5.0 6.5

1997 1999 2000 2003 2004 2006 2007 2008 2009 2010 2011 2012 2013

Acquisition of Ster Century in Poland Acquisition of Kinepolis in Poland CCI entered Expansion Czech CCI entered Acquisition of Opened First stage of of cinema Republic Romania Palace Rishon 4DX chain from and Cinemas entry (Israel) Israel into Poland CCI entered to Slovakia CEE Bulgaria Central Eastern Europe & Israel Countries and Segment 2013 breakdown by country 2012 breakdown by country EUR294.0m EUR280.7m

Poland (39%)(34%) Poland (39%)

Israel (19%)(22%) Israel (19%)

Hungary (15%)(16%) Hungary (15%) Czech Republic (11%)(10%) Czech Republic (11%)

Romania (9%)(10%) Romania (9%)

Bulgaria (4%)(5%) Bulgaria (4%) Slovakia (3%)(3%) Slovakia (3%)

2013 breakdown by segment 2012 breakdown by segment

Theatre operation (90%) Theatre operation (90%)

Film distribution (9%) Film distribution (9%)

Real estate (1%) Real estate (1%)

Theatre operations 90% – breakdown (% Theatre operations 90% – breakdown (% total total of sales) of sales)

Ticket sales 64% Ticket sales 65%

Concession 23% Concession 22%

Advertising 13% Advertising 13% Central Eastern Europe & Israel Sound potential for cinema going Central Eastern Europe & Israel Admissions and prices – significant growth potential Market average ticket price Market admission per capita 2013 EUR 2013 Population 21.4 101.1 38.5 81.7 16.7 63.1 63.5 (1) (m) CCI Poland: 4.71 7,6 7,7 8,0 (1) 6,4 3.1 CCI Romania: 3.71 6,3 2.7 4,6 3,9 1.7 1.8 0.9 1.0 0.4

UK UK

Poland

France

CCI

Poland France

Romania

Germany Romania

Cineworld

Germany countries

Netherlands Netherlands Market spend per head Market advertising revenues 2012 EUR 2012 EURm 91.5 3.03 3.19 CCI Romania: 1.67(1) 76.5 2.29 2.05 72.4 CCI Poland: 1.37(1) 1.66 1.22 8.8 6.8 3.6

Poland

France

Poland

France

Romania

Germany

Romania

Germany

Cineworld

Netherlands

Netherlands Source: HSBC analysis, Company information, Dodona Cinemagoing Central Europe & UK (2012, 2013) Notes: Exchange rate EUR/GBR: 0.84 (1) As of 1H 2013 Central Eastern Europe & Israel Operates in high growth markets Population Size (2012A) Nominal GDP (2012A) Nominal GDP/Capita (2012A)

Germany 81.7 Germany 2,595.0 Germany 31.8 France 63.5 France 1,994.0 France 31.4 UK 63.1 UK 1,890.8 UK 29.9 Italy 60.9 Italy 1,537.1 Italy 25.2 Poland 38.5 Poland 373.8 Israel 23.3 Romania 21.4 Israel 184.0 Czech 14.2 Czech 10.5 Czech 149.4 Slovakia 12.9 Hungary 10 Romania 129.3 Poland 9.7 Israel 7.9 Hungary 95.8 Hungary 9.6 Bulgaria 7.3 Slovakia 70.1 Romania 6.0 Slovakia 5.4 Bulgaria 38.9 Bulgaria 5.3 1 1 1 CCI countries 101.1 CCI countries2 1,041.3 CCI countries2 10.3

Historical real GDP growth Projected real GDP growth Projected real GDP/Capita growth

Israel 3.5% Israel 3.7% Romania 3.6% Poland 3.0% Romania 3.5% Bulgaria 3.1% Slovakia 1.1% Poland 2.6% Slovakia 2.8% Germany 0.7% Slovakia 2.5% Poland 2.7% France 0.1% Bulgaria 2.3% Israel 2.0% Czech (0.4%) Hungary 1.8% Hungary 1.9% UK (0.6%) Czech 1.6% Czech 1.4% Bulgaria (0.7%) UK 1.4% Germany 0.8% Romania (1.3%) Germany 1.0% UK 0.7% Hungary(1.4%) France 0.6% France 0.2% Italy(1.5%) Italy 0.1% Italy 0.0% 1 1 1 CCI countries 2 2.7% CCI countries2 1.3% CCI countries 2 2.7%

Source: HSBC analysis, EIU Note: Exchange rate USD/EUR: 0.763359 (1) Includes Poland, Israel, Romania, Hungary, Bulgaria, Czech Republic, and Slovakia (2) Calculated using a weighted average of country data Central Eastern Europe & Israel Most comprehensive cinema advertising in CEE New Age Media offers all types of cinema advertising on over 1,000 screens in the CEE . On-screen advertising . Off-screen activities . Sponsorships of films, halls and cinemas, . Full service in media planning and research Warsaw HQ 1,069 advertising campaigns in CEE markets for FY 2013 versus 889 in FY 2012

New Age Media was established in NAM overtook the advertising Warsaw, Poland as an exclusive sales in the chain of Helios advertising sales house in the chain of Kinoplex. In that way, NAM gained Cinema City. NAM had in its offer 110 about 65% of the market share multiplex screens including three IMAX cinemas New Age Media established a new New Age Media established a new branch in Czech Republic branch in Bulgaria

2002/09 2007 2007/08 2007/11 2008/04 2011/02 2012/03

Establishing New Age Media in Hungary. NAM NAM overtook the advertising sales in the chain of became an international advertising sales house, New Age media established a Palace Cinemas in Czech Republic, Slovakia and managed by the Polish division new branch in Romania Hungary after acquisition Film Distribution Forum Film Distribution in seven countries In the last two years Cinema City has streamlined its film distribution performance

1 2 3 Strategic business line supporting Representing film studios as their cinema attendance and Building up own library of exclusive distributor in Cinema City geographical expansion of the independent movies countries of operations Company TriggersSub for film section distribution performance ●High grossing and mid-range titles in distribution from film studios

●Purchase of subsequent titles for Cinema City library of independent films

●Sale of film packages to TV channels in more countries of operations

●Developed VOD support sale of film packages to TV channels Distribution Segment Strategic enhancement

Strong partnerships with major studios Strong presence in all countries of activity # films 17 Poland 24 Czech 14 Bulgaria Hungary Israel Poland Romania Slovakia Republic 60 Israel 68 70

23 Hungary 31 20

34 Independent Local Independent Bulgaria 44 44 movies productions movies and independent 10 Independent 24 movies Romania movies 16 Independent movies 11 Slovakia 24 Independent 16 Sub section movies 0 Independent Czech Republic 9 movies 6 2013 2012 2011

Recent blockbusters distributed include… …with marketing efforts driving attendance Poland

31 339 69,903 multiplexes screens seats Market Leader in Poland

Market Leaderboard # screens1

339

227

166

Source: HSBC analysis, Company information, Dodona Cinemagoing Central Europe (2012, 2013) Admissions and No of screens

Index 2012: 2005 = 100 2010: Avatar Olympics Euro 44,0 41,2 42,5 160 39,2 38,7 38,5 CAGR 05-12 13-16 37,5 36,3 32,6 33,8 32,0 Screens 3.0% 2.1% 135 Sub23,3 section Admissions 7.4% 4.2% Admissions/screen 4.3% 1.3% 110 ATP 3.8% 2.5% 85 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E

Admissions (rhs) - m Number of screens - Index (lhs) ATP - Index (lhs)

Source: Dodona Cinemagoing 22 (2013), Dodona Cinemagoing Central Europe (2013 and 2012), MPAA, Oanda, EIU Poland : projects under development

Cinema Locations

Cinema City Wilanów Cinema City Białołęka Cinema City Gdańsk Young City

Cinema City Lublin Cinema City Starogard Gdański Cinema City Lublin Felicity Romania

17 154 28,197 multiplexes screens seats Market Leader in Romania

Market leaderboard # screens1

142

35 Romania Film 16 City Cinema 13 Management 13

74% 26% 601

249

Source: HSBC analysis, Company information, Dodona Cinemagoing Central Europe (2012, 2013) Note: (1) Latest available Romania : projects under development

Cinema locations

AFI Palace NOI Bucharest Bucharest Titan

Targu Jiu NEPI Bucharest NEPI Hungary

20 176 33,851 multiplexes screens seats Market Leader in Hungary

Market leaderboard

# screens1

176

21 Moz i Sub section16

Source: HSBC analysis, Company information, Dodona Cinemagoing Central Europe (2012, 2013) Bulgaria

6 65 11,684 multiplexes screens seats Second largest in Bulgaria

Market leaderboard

# screens1

Source: HSBC analysis, Company information, Dodona Cinemagoing Central Europe (2012, 2013) Czech Republic

13 111 22,037 multiplexes screens seats Market Leader in Czech Republic

Market leaderboard

# screens1

111

90 Sub section

Source: HSBC analysis, Company information, Dodona Cinemagoing Central Europe (2012, 2013) Slovakia

3 29 5,560 multiplexes screens seats Second largest in Slovakia

Market leaderboard

# screens1

43 Sub section

Source: HSBC analysis, Company information, Dodona Cinemagoing Central Europe (2012, 2013) Israel

11 104 18,548 multiplexes screens seats Market Leader in Israel

Market leaderboard # screens1

112

17 Lev Cinemas

Source: HSBC analysis, Company information, Dodona Cinemagoing Central Europe (2012, 2013) Israel : projects under development

Cinema locations

Yes Planet Jerusalem Zichron Mall Yes Planet Be’er Sheva Q&A