Russian Movie Theatres Market Trends of development of

Russian Movie Theatres Market Trends of development of the new modern cinemas Media Salles Seminar, CEI-2004, 21 June 2004, Amsterdam Oleg Berezin, CEO, Nevafilm, Russia

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Russian Box Office: Key notes 01 June 2004 Y CIS BO (01. 06. 04) Russian BO (01. 06. 04) - $118. 4 M - $102. 0 M TOP 1 in CIS Box Office - $14 M The Lord of The Ring: The Return of the King TOP 5 films in CIS BO with BO over $10 M: The Lord of The Ring: The Return of The King Troy (18 days in release!) Terminator-3 Matrix: Reload Matrix: Revolution Russian films with BO over $2 M Antikiller-2: Antiterror - $2. 68 M 72 meters - $2. 53 M Don’t even think!-2 - $2. 10 M European films with BO over $1 M Love Actually - $2. 07 M Tais-Toi/Ruby and Quentin - $1. 03 M © Kinobusiness Today www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Russian Cinema Market 2003 Y The “working” cinemas 2003 Y 509 cinemas / 778 screens The Modern Cinemas 2003 Y 343 cinemas / 542 screens Modern screens by Russian regions 2003 Y More than 1 screen per 100’ 000 The Russian market of Modern Cinemas 2003 Y 0, 5 -1, 0 screens per 100’ 000 0, 4 – 0, 5 screens per 100’ 000 0, 2 – 0, 4 screens per 100’ 000 less 0, 2 screens per 100’ 000 No cinemas Jan – Jun 2004 Y: + 17 cinemas / 69 screens © Nevafilm www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm General trends of the Cinema Market 1996 Reconstruction of existing cinemas 2001 Redeveloping of the existing cinemas to multi-screen cinemas 2004 The new construction of the cinemas in Shopping Centers www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm The basic trend of the Cinema Market Cinemas at Shopping Centers Moscow 55 screens in 12 Shopping Centers Shopping Center IKEA MEGA MALL – 11 -plex Shopping Center “Atrium” – 9 -plex Shopping Center “Kaluzhskiy” – 9 -plex Shopping Center “Gold Babylone” 6 -screen Ramstore City – “Nescafe IMAX®” + 4 -screens Shopping Center Ramstore – 4 screens Shopping Center “Ramstor-2” – 4 -screens Shopping Center “XL” – 4 -screens Shopping Center “GUM” – 2 -screens Shopping Center “Mitino” – 2 -screens Shopping Center “Dinamit” – 2 -screens Shopping Center “Okhotny Ryad” – 1 screen Atrium, Moscow «Formula Kino» , 9 -plex 2002 Ramstore, Moscow The first cinema in Shopping Center “Formula Kino”, 4 -plex 30. 03. 2000 St. -Petersburg 26 screens in 5 Shopping Centers Zanevsky Cascade, St. -Petersburg Shopping Center “Baltiysky” - 2 -screen «Kronverk Cinema» , 5 -plex Shopping Center “Zanevskiy Cascade” – 5 -screens 2003 Shopping Center “Nord” – 6 screens Shopping Center “Akademichesky” – 5 screen Shopping Center “Mercury” – 8 screens Nizhniy Novgorod Kaluzhsky, Moscow «Cinema Park» , 9 -plex 2004 IKEA MEGA MALL, Moscow Kinostar De Luх (11 -plex) 2003 Shopping Center “Shokolad” – 4 -screens Podolsk Shopping Center Ramstore – 4 screens Ramstore City, Moscow Yekaterinburg Nescafe IMAX® Shopping Center “Yeakaterininskiy” – 3 -screen Kinosphera Cinema, 4 -plex Volgograd 2003 Yekaterinburg, Shopping Center Entertainment Shopping Center “Radezh” – 2 screens Cinema “Yekaterininsky”, 3 -plex Kazan 2003 Shopping Center “City Center” – 3 screens www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH 9 months per year Russians spend inside the premises 20 % of all Shopping Centers in Moscow had zones of entertainment Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm The basic trend of the Cinema Market Cinemas at Shopping Centers Coming Soon on screens in Shopping Centers “Rodeo Drive”, Shopping Center St. -Petersburg Some Developers which plan to add Cinema in Shopping Centers “Ramstore” Company (Moscow) “Adamant” Company (SPb) “Vremya” Company ( «Park House» ) “Tasher” Company (Regions) “Macromir” Company «Trade Quarter - Region» Company IKEA Company (“Mega”) + more, & more… “Bratislavsky Krug” Shopping Center Kinomax, Moscow “Park House” Shopping Center Invest. Kino. Project, Volgograd “Grand Canyon” Shopping Centre Cinema Park, St. -Petersburg “Park House” Shopping Center Invest. Kino. Project, Yekaterinburg «Neptune Center» Shopping Center St. Petersburg www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm The basic trend of the Cinema Market Cinemas at Shopping Centers Some the new Shopping Centers with Cinemas in Moscow which are planned to be open in 2004 Y - 2005 Y Target Markets in Regions: 16 -screens in the Shopping Center “Veymart-2” (will be operated by Yekaterinburg-Art) 12 -screens “Kinostar De Lux” (IKEA Mega Mall -2, will be operated by Rising Star Media / National Amusements) 10 -screens Shopping Center “na Profsoyuznoy” 8 -screens “Ramstor na Vernadskogo” (in the Shopping Center, will be operated by Formula Kino) 5 -screens “Ranstor na Sevastopolyskoy” (in the Shopping Center, will be operated by Formula Kino) 5 -screens “Ramstor na Yartsevskoy” (in the Shopping Center, will be operated by Formula Kino) 8 -screens “Tri Kita” (in the Shopping Center) 7 -screens “Bratislavskiy Krug” (in the Shopping Center, will be operated by “Kinomax) 4 -screens “Grand” (in the Shopping Center) 8 -screen Shopping Center “ 5 th Avenue” (will be operated by “Cinema Park”) ……. . Some the new Shopping Centers with Cinemas in St. -Petersburg which are planned to be open in 2004 Y - 2005 Y 8 -screen in Shopping Center “City Mall” 10 -screen in Shopping Center “Rodeo Drive” 7 - screen in Shopping center “Pik” (will be operated by “Ros. Kino. Prokat”) 12 -screen in Shopping Center IKEA MEGA MALL Multiplex in Shopping center “Planet Neptune” Multiplex in Shopping Center “Cosmos” 3 x multiplexes in Shopping Centers “O’key” Nizhniy Novgorod Yekaterinburg Kazan Perm Novosibirsk Samara Saratov Volgograd Tumen Krasnodar Krasnoyarsk Ufa Rostov Omsk Way of Russian market develop: Moscow St. -Petersburg Regions www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Nevafilm Source: Expert RA

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Modern Cinemas: Moscow Key notes 2003 Y 11 screen “Kinostar De Lux” & Nescafe IMAX® Key notes 06. 2004 12 screen “Formula Kino” & 9 screens “Cinema Park” Population 10. 1 M people (7% of the total) Average income per head per year in 2003 Y $7’ 968 Share in the common incomes of the population of Russia 25% Rate of a gain of quantity of screens (% by the previous year) 59% 51% The new screens in Shopping Centers 25% 2003 www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH 2004 F 2005 F Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Modern Cinemas: St. -Petersburg Key notes 2003 Y 5 screen “Zanevsky cascade” Key notes 06. 2004 26 screens “Kronverk Cinema” in 4 Shopping Centers Population 4. 7 M people (3% of the total) Average income per head per year in 2003 Y $2’ 988 Rate of a gain of quantity of screens (% by the previous year) The new screens in Shopping Centers Reconstruction of the existing cinemas Share in the common incomes of the population of Russia 4% 2003 www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH 2004 F 2005 F Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Modern Cinemas: Regions (excluding Moscow and St. -Petersburg) 373 Population 129. 4 M people (90% of the total) Average income per head per year in 2003 Y $1’ 848 Rate of a gain of quantity of screens (% by the previous year) 54% The new screens in Shopping Centers Reconstruction of the existing cinemas 32% 21% Share in the common incomes of the population of Russia 71% 2003 www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH 2004 F 2005 F Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Average Box Office per the one screen www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Average Box Office per the one screen in Moscow www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Nevafilm

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Russian Cinema Market: forecasts The basic tendencies of the Russian Movie Theater Market 1996 - 2007 St. -Petersburg Main cities Regions Modernization of working central cinemas 1996 Y 1997 Y 1999 Y Reconstruction of old cinemas 1997 Y 2000 Y Construction of multi-screens cinemas in shopping centers 2000 Y 2003 Y 2004 Y 2005 Y Construction of multiplexes in separate buildings 2003 Y 2005 Y 2006 Y 2007 Y Quality of cinema entertainment Moscow 1991 1993 1995 1997 1999 2001 2003 2005 www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Screen. Digest, Media Sales, Source: Nevafilm Kinobusiness Today

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Russian Cinema Market: basic trends THE BASIC TRENDS OF DEVELOPMENT OF THE RUSSIAN CINEMA MARKET ь Growth of the movie theater market against a background of the social and economic rise of the country; ь Increase in the share of multi-hall theaters and multiplexes, especially within Shopping Centers; ь Reduction of the per-screen profitability of the existing theaters due to increased competition and appearance of new players on the market; ь Increase in the volume of investments in the construction of new movie theaters due to increased competition and higher requirements and expectations of the spectators ь More stringent government control of the quality of construction, especially that of large multiplexes facilities; www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Screen. Digest, Media Sales, Source: Nevafilm Kinobusiness Today

Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm The special report about Russian Cinema Market Thank you for your attention, and welcome to Russia! If you have any questions about Russian market Welcome to booth #204! NEVAFILM STUDIOS™ The one of the most modern Postproduction Film Studio in Russia NEVAFILM CINEMAS™ Cinematic design and consulting Supply & installation the cinema equipment NEVAFILM DIGITAL™ NEVAFILM DUBBING™ Development of Digital Cinemas in Russia The largest Russian Dubbing Studio of language dubbing films for theatrical release Supply and installation the DC equipment www. nevafilm. ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH Source: Nevafilm