Cinema City International NVConference Call | Semi Annual Report 2010

20 August 2010

Change in the presentation of results in

the semi-annual report 2010

In the semi-annual report for the first six months of 2010 Cinema City presents

its operating activity results broken down as follows:

Revenues from cinema related operations

Operating costs of cinema related operations

Gross margin from cinema related operations

Revenues from the sale of real estate

Operating costs of real estate sold

Revenues and costs corresponding to

theatre operations, film distribution and

other cinema related real estate

Revenues and costs corresponding to

the transaction of sale of CCI’s

1

2Operating costs of real estate sold

Gross margin from the sale of real estate

Total revenues

Total operating costs

Total gross margin

General and

administrative expenses

Operating profit

the transaction of sale of CCI’s

real-estate activity in Bulgaria

Total operating revenues

and operating costs

Operating revenues and costs related to the divestment of the Company’s real estate

activity in Bulgaria are presented in the separate line in the profit and loss account of CCI.

2

3

1 + 2 = 3

REVENUEcinema related operations

in € million

sale of real estate

in € million

NET PROFIT

17.5 vs. 13.8

EBITDA

31.3 vs.24.8

1st half of 2010 was very successful for CCI’s operations

116.4 vs. 80.3

(+44.8%)

in € million

91.2 vs. 23.0

(+296.1%)

REVENUE

Cinema related

in € million

Total CCI in € million

17.5 vs. 13.8

+ 26.2%

ADMISSIONS

in million

tickets sold

15.1 vs. 12.3

+ 23.5%

Total CCI in € million

31.3 vs.24.8

+ 26.2%

EBITDA

Cinema related

in € million

28.3 vs. 15.0

+88.7%116.4 vs. 80.3

(+44.8%)

41 theaters 411 screens

193677 screens

134 K seats 9 IMAX®

6 countries 69 theaters

digital

screens

Cinema Chain: # 1 in CEE and in Israel

21

7

9

25

28

103

Romania

Bulgaria

The Czech

Rep.

Hungary

Israel

Poland

4

Screens in operation (677) Screens under development (411) Digital screens (193)

under binding contracts under binding contracts

Next opening: Arad, September 2010

72 (11%)

24 (4%)

46 (7%)

115 (17%)

104(16%)

316 (47%)

Romania

Bulgaria

The Czech

Rep.

Hungary

Israel

Poland

264 (64%)

46 (11%)

0%

0%

26 (7%)

75 (18%)

Romania

Bulgaria

The Czech

Rep.

Hungary

Israel

Poland

Strategy implementation in H1 2010

� Opening of 1 multiplex with 15 screens: Cinema City Sun Plaza, Romania

� Re-opening of 4 screen multiplex in Tel Aviv (6 screens before refurbishment)

� Preparations for 5-7 cinema openings scheduled for 2H 2010 in Romania, Bulgaria and Poland

� Closing of 1 cinema in Israel (4 screens)

� Further lease agreements in negotiation

� Rapid installation of digital projectors

� Process of analyzing business offers on the potential markets for CC expansion.

Cinema chain

Advertising

� Vodafone Tuesdays promotion in Hungary – successful follow up of Orange Wednesdays in Poland

� Preparations for new promotional programs to be introduced in Cinema City

� Cinema advertising development in Romania, Hungary and in the Czech Republic.

� Development of the cross country co-operation with key clients like SONY and Unilever and many others

DVD and film distribution

� Films distributed by Forum Film: Alice In Wonderland 3D, Prince of Persia, Toy Story 3, Princess and the Frog, Ghostwriter,

Saga Twilight and many others ….

� DVD distribution in Hungary and Czech Republic closed.

Real estate

� Closing of sale of CCI real estate activities in Bulgaria to Israel Theatres Ltd. in Q1 2010

5

3D technology continues

to enhance CCI’s financial results

Share of 3D

admissions in the

total number of

admissions goes up

Q2 2010 = 24.6%

H1 2010 = 34.7%

vs. 10.8% in Q2 2009

vs. 8.6% in H1 2009

Growth in average

ticket price

€ 4.77 (+23.7%)

supported by 3D

Cinema City continues the cinema digitalization

End of

H1 2010

End of

2010 (F)

28%

31%

Digital screens

% of total CCI screens

End of

2009

21%

21

7

9

25

28

103

Romania

Bulgaria

The Czech

Rep.

Hungary

Israel

Poland + 10

+ 8

+ 6

+ 4

+ 9

+ 6

43 digital

projectors

to be installed

until the end of

2010

Financial and Operating Results

in H1 2010

7

� Very well received international movie production

� New openings from H2 2009 and 2010

Financial Results| Key factors

� Higher percentage of 3D admissions

� Solid development of CCI’s advertising business

� Lower contribution to EBITDA from the sale of real estate vs H2 2009

8

For 6 months

30 Jun 2010

For 6 months

30 Jun 2009

change

%

Revenues(cinema related

operations)

116 394 80 361 44,8%

Revenues 91 212 23 028 296,1%

Consolidated Financial Results in H1 2010

in € ‘000

H1 2010 / H1 2009 Q2 2010 / Q2 2009

For 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

Revenues(cinema related

operations)

46 317 36 012 28,6%

Revenues 91 212 1 492 6013,4%

in € ‘000

For 6 months

30 Jun 2010

For 6 months

30 Jun 2009

change

%

EBITDA margin(cinema related )

24,2% 18,4% 5,8 ppt

Revenues(sale of real

estate)

91 212 23 028 296,1%

EBITDA 31 333 24 824 26,2%

Net profit 17 533 13 848 26,6%

margins

9

Revenues(sale of real

estate)

91 212 1 492 6013,4%

EBITDA 11 052 9 458 16,9%

Net profit 4 827 4 139 16,6%

For 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

EBITDA margin(cinema related )

17,3% 14,2% 3,1 ppt

margins

Poland

59,0%Romania

3,2%

Israel

17,8%

Revenue from cinema related operations

breakdown by countries

H1 2010 H1 2009

Poland

51,9%Romania

Israel

20,0%

The Czech

Republic

5,5%

Hungary

11,4%

Bulgaria

3,1%

3,2%

10

The Czech

Republic

5,8%

Hungary

11,0%

Bulgaria

3,4%

Romania

7,9%

€ 116.4 m € 80.4 m

Revenue from cinema related operations

breakdown by segments

Theatre operations 91%

breakdown (% of total sales):Ticket sales 62%

Concessions 19%

Advertising 11%

Theatre operations 91%

breakdown (% of total sales):Ticket sales 59%

Concessions 19%

Advertising 13%

H1 2010 H1 2009

91%

7%

2%

91%

8%

1%

11

Real estate(cinema related)

Film

distribution

Film

distribution

€ 116.4 m € 80.4 m

Real estate(cinema related)

Investment, debt and financing resources

In EUR million | 30.06.10 | 30.06.09 | change |

equity 198,9 161,9 22,9%

debt 31,1 90,1 -65,5%

cash 10,6 14,4 -26,4%

net debt 20,5 75,7 -72,9%

CF from operations 27.8 20.3

CF for investment 35,7 (8.9)

CF from financing (75.7) (8.4)

EBITDA 31,3 24,8 26,2%

net debt/EBITDA 0,3 1,5 -1,2

net debt/equity 0,1 0,5 -0,4

capex 18.5 15.6 + 18.6%12

Segments performance overview

H1 2010H1 2010

13

Theatre operations H1 2010

+ 45.4%

106 328

Revenues

Admissions

15.1 M + 23.5%

Admissionslike-for-like

13.5 M + 9.9%

in EUR ‘000

73 133

+ 135.6%

7 892

18 590

EBIT

Average

ticket price

Average no

of screens

EUR 4.77

664 + 12.7%

H1 2009H1 2010

+ 83.7%

15 288

28 084

EBITDA

14

+ 23.7%

Average Ticket Prices in € vs. local currencies

� Increase in the average ticket prices in local currencies and in €

in all territories

For 6 months

30 Jun 2010

For 6 months

30 Jun 2009

change

%

Poland 19,23 16,70 15,2%

Czech Republic 141,22 121,60 16,1%

Hungary 1 019,73 877,40 16,2%

Bulgaria 7,27 7,19 1,1%

Romania 15,17 11,71 29,5%

Israel 32,65 28,20 15,8%

For 6 months

30 Jun 2010

For 6 months

30 Jun 2009

change

%

Poland 4,80 3,76 27,4%

Czech Republic 5,48 4,49 22,2%

Hungary 3,75 3,08 21,8%

Bulgaria 3,72 3,68 1,1%

Romania 3,65 2,76 32,0%

Israel 6,54 5,20 25,8%

Average CCI 4,77 3,85 23,7%

in €in local

currencies

Film distribution H1 2010

9 069

Revenues

� Expansion of Forum Film into

Bulgaria (q4 2009) and

Romania (q1 2010).

� Larger number of successful

+ 56.4%

5 799

28

EBIT

H1 2009H1 2010

� Larger number of successful

titles in distribution including

„Alice in Wonderland 3D”

EBITDA

(539)

102

16

(386)

Transaction of sale of real estate in Bulgaria

EBITDA

Transactions of sale of real estate projects contributed to Cinema City

financial results in H1 2010 and H1 2009.

H1 2010: Divestment of entire CCI’s real estate activity in Bulgaria

H1 2009: Sale of 30% interest in the Mall of Plovdiv in Bulgaria

Revenues

€ 3.1 m

€ 9.7 m

EBITDA

- 68.0%

17

€ 91.2 m

Revenues

+196.0%

€ 23.0 m

H1 2009H1 2010 H1 2009H1 2010

Outlook for H2 2010

� Plan to open between 5-7 multiplexes with around 65 screens

� 1-3 cinemas in Romania

� 2 cinemas in Bulgaria

� 2 cinemas in Poland

� Difficult conditions in the real estate market may cause delays in openings of new projects

�Further lease agreements in negotiation

� Continuing installation of digital projectors. Target: over 200 digital projectors at the end of 2010.

�Process of analyzing business offers on the potential markets for CC expansion.

Cinema chain

�Process of analyzing business offers on the potential markets for CC expansion.

� Films on the screens: Shrek 4, Saga Twilight Eclipse, Harry Potter, Narnia, Tangled and many others

Advertising

� Extension of co-operation with existing clients on other countries of CCI operations

� New brand and product cross country campaigns of clients from the countries other than CCI countries of operations

� Preparation of new special promotions, sponsorships etc in all CCI markets

DVD and film distribution

� Films to be distributed by Forum Film : Tangled, Trone Legacy, You again and many others

18

Cinema City OpeningsPlans for 2H 2010

Mall of Ruse, Bulgaria,

CC 11 screens

Baia Mare, Romania,

CC 6 screens

Wałbrzych, Poland,

CC 7 screens

Turgu Mures, Romania,

CC 8 screens

Stara Zagora, Bulgaria,

CC 7 screens

Arad Atrium, Romania,

CC 10 screens

Bytom, Poland,

CC 9 screensBraila, Romania,

CC 10 screens

AppendixAppendix

20

Revenues from cinema related

operations by segments

For 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

For 6 months

30 Jun 2010

For 6 months

30 Jun 2010

change

%

Theatre operation 41 878 32 995 26,9% 106 328 73 133 45,4%

Ticket sales 25 942 20 824 24,6% 71 972 47 499 51,5%

Concession 8 578 6 904 24,2% 21 541 15 034 43,3%Concession 8 578 6 904 24,2% 21 541 15 034 43,3%

Advertising 7 358 5 267 39,7% 12 814 10 599 20,9%

Distribution 4 018 2 778 44,6% 9 069 5 799 56,4%

Real estate 420 239 75,7% 997 1 429 -30,2%

Total revenues 46 317 36 012 28,6% 116 394 80 361 44,8%

21

Theatre operations performance factors (1)

Number of admissions

in thousand

For 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

For 6 months

30 Jun 2010

For 6 months

30 Jun 2010

change

%

Poland 2 738 3 036 -9,8% 7600 7 426 2,3%

Czech Rep. 375 322 16,5% 948 728 30,2%

Hungary 916 844 8,6% 2 161 1 607 34,5%

Bulgaria 347 200 73,1% 733 378 93,7%

Romania 617 244 152,5% 1 526 527 189,4%

Israel 779 768 1,5% 2 130 1 559 36,6%

Total 5 772 5 414 6,6% 15 098 12 226 23,5%

Number of admissions

like-for-like in thousand

For 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

For 6 months

30 Jun 2010

For 6 months

30 Jun 2010

change

%like-for-like in thousand 30 Jun 2010 30 Jun 2009 % 30 Jun 2010 30 Jun 2010 %

Poland 2 571 3 036 -15,3% 7 035 7 425 -5,3%

Czech Rep. 375 322 16,5% 948 727 30,4%

Hungary 818 844 -3,1% 1 929 1 607 20,0%

Bulgaria 364 200 81,6% 609 378 60,9%

Romania 321 244 31,4% 804 528 52,3%

Israel 779 768 1,5% 2 130 1 574 35,3%

Total 5 228 5 414 -3,4% 13 455 12 239 9,9%

Admissions per screen

(annual basis)

For 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

For 6 months

30 Jun 2010

For 6 months

30 Jun 2010

change

%

Poland 34,66 43,22 -19,8% 48,10 53,04 -9,3%

Czech Rep. 32,61 28,00 16,5% 41,22 31,65 30,2%

Hungary 31,86 33,09 -3,7% 37,58 31,51 19,3%

Bulgaria 57,83 33,40 73,1% 61,08 39,83 53,3%

Romania 43,30 32,58 32,9% 53,54 36,37 47,2%

Israel 29,40 27,18 8,2% 40,19 27,59 45,6%

Total 34,77 36,34 -4,3% 45,48 41,51 9,5%22

Theater operations performance factors (2)

Average no of screensFor 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

For 6 months

30 Jun 2010

For 6 months

30 Jun 2010

change

%

Poland 316 281 12,5% 316 280 12,9%

Czech Rep. 46 46 0,0% 46 46 0,0%

Hungary 115 102 12,7% 115 102 12,7%

Bulgaria 24 24 0,0% 24 19 26,3%

No of screens

at end of the period

As at

30 Jun 2010

As at

31 Jun 2009

change

%

Poland 316 288 9,7%

Czech Rep. 46 46 0,0%

Hungary 115 102 12,7%

Bulgaria 24 24 0,0%

Romania 72 30 140,0%

Israel 104 113 -8,0%

Total 677 603 12,3%

Bulgaria 24 24 0,0% 24 19 26,3%

Romania 57 30 90,0% 57 29 96,6%

Israel 106 113 -6,2% 106 113 -6,2%

Total 664 596 11,4% 664 589 12,7%

23

Theater operations performance factors (3)

Average price of ticket in EURFor 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

For 6 months

30 Jun 2010

For 6 months

30 Jun 2010

change

%

Poland 4,55 3,82 19,0% 4,80 3,76 27,4%

Czech Rep. 5,31 4,46 19,1% 5,48 4,49 22,2%

Hungary 3,54 2,96 19,9% 3,75 3,08 21,8%

Bulgaria 3,47 3,54 -2,1% 3,72 3,68 1,1%

Romania 3,42 2,59 32,0% 3,65 2,76 32,0%

Israel 6,33 5,13 23,3% 6,54 5,20 25,8%Israel 6,33 5,13 23,3% 6,54 5,20 25,8%

Total 4,49 3,85 16,9% 4,77 3,85 23,7%

Average price of ticket

in local currencies

For 3 months

30 Jun 2010

For 3 months

30 Jun 2009

change

%

For 6 months

30 Jun 2010

For 6 months

30 Jun 2010

change

%

Poland 18,30 17,06 7,3% 19,23 16,70 15,2%

Czech Rep. 135,91 119,07 14,1% 141,22 121,60 16,1%

Hungary 973,95 848,54 14,8% 1 019,73 877,40 16,2%

Bulgaria 6,78 6,93 -2,1% 7,27 7,19 1,1%

Romania 14,33 10,91 31,4% 15,17 11,71 29,5%

Israel 30,43 28,43 7,0% 32,65 28,20 15,8%

24