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 Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Russian Box Office: Key notes 01 June 2004Y CIS BO ( ) - $118.4M Russian BO ( ) - $102.0M TOP1 in CIS Box Office - $14M The Lord of The Ring: The Return of the King TOP5 films in CIS BO with BO over $10M : 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 $2M Antikiller-2: Antiterror - $2.68M 72 meters- $2.53M Don’t even think!-2- $2.10M European films with BO over $1M Love Actually - $2.07M Tais-Toi/ Ruby and Quentin - $1.03M © Kinobusiness Today

Russian Cinema Market 2003Y The “working” cinemas 2003Y 509 cinemas / 778 screens The Modern Cinemas 2003Y 343 cinemas / 542 screens More than 1 screen per 100’000 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 © Nevafilm Modern screens by Russian regions 2003Y The Russian market of Modern Cinemas 2003Y Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm Jan – Jun 2004Y: + 17 cinemas / 69screens

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 Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm

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 St.-Petersburg 26 screens in 5 Shopping Centers Shopping Center “Baltiysky” - 2-screen Shopping Center “Zanevskiy Cascade” – 5-screens Shopping Center “Nord” – 6 screens Shopping Center “Akademichesky” – 5 screen Shopping Center “Mercury” – 8 screens Nizhniy Novgorod Shopping Center “Shokolad” – 4-screens Podolsk Shopping Center Ramstore – 4 screens Yekaterinburg Shopping Center “Yeakaterininskiy” – 3-screen Volgograd Entertainment Shopping Center “Radezh” – 2 screens Kazan Shopping Center “City Center” – 3 screens Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH The basic trend of the Cinema Market Cinemas at Shopping Centers Ramstore City, Moscow Nescafe IMAX® Kinosphera Cinema, 4-plex 2003 IKEA MEGA MALL, Moscow Kinostar De Luх (11-plex) 2003 Atrium, Moscow «Formula Kino», 9-plex 2002 Kaluzhsky, Moscow «Cinema Park», 9-plex 2004 Zanevsky Cascade, St.-Petersburg «Kronverk Cinema», 5-plex 2003 Yekaterinburg, Shopping Center Cinema “Yekaterininsky”, 3-plex 2003 Ramstore, Moscow The first cinema in Shopping Center “Formula Kino”, 4-plex months per year Russians spend inside the premises 20 % of all Shopping Centers in Moscow had zones of entertainment 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 “Park House” Shopping Center InvestKinoProject, Volgograd “Grand Canyon” Shopping Centre Cinema Park, St.-Petersburg «Neptune Center» Shopping Center St. Petersburg “Park House” Shopping Center InvestKinoProject, Yekaterinburg “Bratislavsky Krug” Shopping Center Kinomax, Moscow 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, & more… “Rodeo Drive”, Shopping Center St.-Petersburg Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm

Source: Expert RA Some the new Shopping Centers with Cinemas in Moscow which are planned to be open in 2004Y Y 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”) …….. Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Some the new Shopping Centers with Cinemas in St.-Petersburg which are planned to be open in 2004Y 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 “RosKinoProkat”) 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” Target Markets in Regions: Nizhniy Novgorod Yekaterinburg Kazan Perm Novosibirsk Samara Saratov Volgograd Tumen Krasnodar Krasnoyarsk Ufa Rostov Omsk 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 Way of Russian market develop: Moscow  St.-Petersburg  Regions

Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Modern Cinemas: Moscow Population 10.1M people (7% of the total) Average income per head per year in 2003Y $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) Key notes 2003Y 11 screen “Kinostar De Lux” & Nescafe IMAX® Key notes screen “Formula Kino” & 9 screens “Cinema Park” The new screens in Shopping Centers F 2005F Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm 51% 59% 25%

Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Modern Cinemas: St.-Petersburg Population 4.7M people (3% of the total) Average income per head per year in 2003Y $2’988 Share in the common incomes of the population of Russia 4% Rate of a gain of quantity of screens (% by the previous year) The new screens in Shopping Centers Key notes 2003Y 5 screen “Zanevsky cascade” Key notes screens “Kronverk Cinema” in 4 Shopping Centers F 2005F Reconstruction of the existing cinemas Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm

Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Modern Cinemas: Regions (excluding Moscow and St.-Petersburg) Population 129.4M people (90% of the total) Average income per head per year in 2003Y $1’848 Share in the common incomes of the population of Russia 71% Rate of a gain of quantity of screens (% by the previous year) The new screens in Shopping Centers Reconstruction of the existing cinemas F 2005F Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm 54% 21% 32% 373

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

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

Source: ScreenDigest, Media Sales, Kinobusiness Today Source: Nevafilm NEVAFILM JSC CINEMAS STUDIOS DUBBING DIGITAL RESEARCH Russian Cinema Market: forecasts Quality of cinema entertainment The basic tendencies of the Russian Movie Theater Market MoscowSt.-PetersburgMain citiesRegions Modernization of working central cinemas 1996Y1997Y 1999Y Reconstruction of old cinemas1997Y2000Y Construction of multi-screens cinemas in shopping centers 2000Y2003Y2004Y2005Y Construction of multiplexes in separate buildings 2003Y2005Y2006Y2007Y Russian Movie Theatres Market Trends of development of the new modern cinemas Oleg Berezin, Nevafilm

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

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