Strictly Private and Confidential

Project Blue Opportunity to invest in Australia‘s

leading on demand platform

24 MAY 2013

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EXECUTIVE SUMMARY

Media consumption habits and technologies are experiencing fundamental structural change. Hoyts, with its existing powerful movie consumer touch-points, will leverage these developments to create a new high growth business model in the Australian home entertainment / TV channel, in partnership with Studios

1

Significant untapped on demand revenues in Australia

Hoyts has the resource, skills and assets to succeed

The standalone business case is attractive

Business structure

• High per capita traditional media consumption

• Pay-TV only 25-30% of homes; EST, tVOD and sVOD all undeveloped

• Leading, trusted entertainment brand — No. 1 cinema brand in Australia

• Deep customer base of movie lovers and active DVD renters (Kiosk)

• Strong loyalty program and ‗single CRM‘ system

• Extensive EST, tVOD and sVOD content offer (through Studio partnerships) will be attractive to consumers

• Broad device coverage and clear development roadmap

• Low cost customer acquisition and delivery model returns value to consumers and Studio partners

• 15-20% EBITDA margins at scale

• Hoyts is seeking investment in its Stream and Kiosk business of up to 49%

• Seeking investment from up to 3 Studios based on cash equity investment and revenue share content supply arrangements

• Dual returns to Studios — incremental content revenues and equity upside, while creating a new sustainable channel in the Australian and New Zealand markets

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VALUE CHAIN

The entertainment value chain is evolving. Hoyts provides the opportunity to accelerate growth in new channels and growth in the overall value chain for studio partners

2

• Hoyts Exhibition, Stream and Kiosk are uniquely placed to drive additional value through the entire lifecycle of content

• Hoyts operates in the growth areas of the entertainment value chain

• Opportunity to reverse the growing trend of piracy through a compelling digital proposition

• Hoyts Stream offers the ability to monetise TV content currently not broadcast in Australia

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LINKING TOGETHER OF HOYTS EXHIBITION & HOME ENTERTAINMENT

Hoyts will be well positioned to distribute relevant content through all windows powered by an embedded CRM Single View of the Customer

3

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AGENDA

4

1. Market readiness

2. Customer value proposition

3. Opportunity size

4. Business model

5. Competition and sustainable advantage

6. Market, sales and partners

7. Platform

8. Executive team

9. Next steps

4

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MARKET READINESS

1. The consumption in the home entertainment market are very strong

Australia has a very high per capita consumption of DVD purchases and rentals with $211 per household pa

Home entertainment spend per household per month ($A) 2012 (excl. premium pay-tv)

Pay-tv penetration 2012

$12.90$11.30

$19.30

Australia US UK

90%90%

54%

27%

US Canada UK Australia

2. The technology is ready for mass-market on demand services

Broadband take up is now at 73% Average caps are now at 50-200Gb

3. The on demand market is primed for rapid growth

Consumers are migrating from physical DVDs to digital video entertainment, creating a significant tVOD / EST opportunity

FOXTEL only has 27% penetration, leaving over 70% HHs with no subscription service, creating a significant sVOD opportunity

Canad

a

UK Australia US

Broadband Penetration 2012

5

The Australian market is primed for a credible, Netflix-style market entrant to secure significant share of the untapped on demand video market

3 2 1

85%88%

75%73%

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CUSTOMER VALUE PROPOSITION

Hoyts Stream will offer customers a critical mass of movie and TV titles, across devices, from a highly trusted entertainment brand

Roadmap to reach all devices

Web

Mobile: iOS phones and tablets; Android

TV: Smart TVs; Blu-ray; Playstation, XBox

Trusted Entertainment Brand

Hoyts is the dominant cinema brand across Australia and New Zealand

Research shows strong trust and affinity across Exhibition and Home Entertainment

Marketed Aggressively

Hoyts Stream will invest more than $80m over five years in marketing and customer acquisition to build a market leading position

Cross-promotion through theatres and kiosks

Deep, Rich, Fresh Content

Strong blockbuster led EST and tVOD

‘Pockets’ of sVOD exclusivity and aVOD capability

Critical mass of circa 5,000 movie / TV sVOD titles

and 2,500 tVOD / EST titles at launch…

An Engagement-Driven Approach

Excellent UI and UX (search, metadata, etc.)

Innovative sVOD / tVOD / physical bundles

Full social media integration and

personalisation of content

Deep Customer Database

Hoyts will market the service to more than 2.6m entertainment loving customers through its channels and loyalty programme

CRM ‗Single View‘ of the customer

PRODUCT MARKETING

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OPPORTUNITY SIZE

7

The rapidly growing sVOD, tVOD and EST markets will be worth circa A$1.5bn by 2020

• We expect the Australian sVOD market to reach 25% penetration of HHs by 2020. In the US, Netflix alone has already reached this 25% figure

• We are targeting one third of this market by revenue — FOXTEL and Telstra as well positioned to compete in the sVOD market, but they will be wary of cannibalising their premium base. If FOXTEL‘s premium subscriptions and revenues do get eroded more quickly, then this represents upside for Hoyts

• We expect the tVOD and EST market to reach parity with the DVD market by 2020. In the US, the combined tVOD and EST market is already at 63% of the size of the DVD rental market

• We are targeting 20% of this market by revenue — iTunes will also remain a significant player in these markets (circa 65-70% of the US market)

• Upsides to the opportunity exist by expansion into New Zealand, linear broadcasting and aVOD

A$248m (~33%)

A$512m (~67%)

A$91m (~20%)

A$382m (~80%)

Hoyts

A$46m (~20%)

Other

A$199m (~80%)

sVOD Market

Total = A$760m

EST Market

Total = A$245m

tVOD Market

Total = A$473m

Projected Hoyts market share 2020 Total home entertainment market (A$m)

Source: Venture Consulting, AHEDA, PWC, NPD

170216

267325

388429

473

136 130

85

226

577

2019

4,766

665

226

2015

4,633

254

128

2,627

442

967

2014 2020

4,783

2,662

540

1,144

2012

4,606

2016

4,668

363

153

2,607

395

883 802

266

649

2018

4,754

567

208

2,559 2,532

760

245

2,503

94 69

2,608

591

1,237 308

724

2017

4,708

467

179

2,584

351

4,602

137

105

2,645

490

1,054

2013

4,573

EST Revenue

Premium Pay-TV Revenue

DVD Rental Revenue

DVD Retail Revenue

sVOD Revenue

tVOD Revenue

85

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BUSINESS MODEL

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Hoyts is developing a low cost business model that will maximise returns to content owners and equity partners

EFFICIENT COST STRUCTURE

• Low Customer Acquisition Costs through utilising the existing customer base of the Kiosk business and Hoyts Cinemas

• Low delivery costs — as compared to satellite / cable delivery networks

• Low head office costs — utilising existing Kiosk business and leveraging staff from the Hoyts Cinema Business until the new joint venture reaches generates meaningful revenue

SUSTAINABLE BUSINESS MODEL — MAXIMISING RETURNS

• Targeting 15-20% EBITDA margin at scale

• Variable content cost maximising return to content owners

• Efficient cost structure maximising equity return to shareholders

Kiosk

tVOD

sVOD

EST

Overhead

Other

Marketing Content

Delivery

Conceptual revenue and cost structure

Revenue

Cost

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COMPETITION & SUSTAINABLE ADVANTAGE

Only Hoyts can combine exhibition and home entertainment across brand, content, pricing, marketing, customer data and CRM, maximising returns to studio partners

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Potential

market players Positioning vs. Hoyts

Full Value

Chain

Low Cost

Delivery

Structure

Deep,

rich,

fresh

content

Tier 1

content

offered

Device

agnostic

Strategic

Marketing

Plan

Full

Lifecycle

CRM &

Data

Deep

customer

database

Trusted

entertainment

brand

Affordable

to the

mass

market

HOYTS

Foxtel Fear of cannibalisation

More expensive offerings

Telstra, T-Box Traditionally focused on

product over customer

experience. Must be Telstra

Bigpond customer

Fetch TV Reliance on telcos for

customer acquisition. Must be

Optus or iinet customer

Quickflix No cash, losing money, poor

platform and content,

opportunity missed?

Apple TV,

iTunes

No subscription base, no focus

on marketing to the local

market

JB HiFi Now,

Video EZY,

Woolworths

Lack of focus on VOD

business leaves service under-

resourced

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STRONG ESTABLISHED BRAND REACH & CUSTOMER BASE

Hoyts is planning a strategic, integrated marketing launch campaign that uses existing channels — including our 750,000 loyalty members — to drive take-up efficiently

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1.8m monthly unique web visits

1.1m registered customers

750k members

2.2m unique cinema customers 350k Kiosk customers

Serves 20m admissions per annum 5m rented through kiosks

• Hoyts has broad and deep entertainment-based customer interactions every day

• Leading cinema exhibitor in Australia and New Zealand

• Network of 53 cinemas and 437 screens

• Owns Val Morgan, Australian‘s dominant cinema screen advertiser

• National kiosk network

• Strategically located at convenient locations throughout urban areas

We will engage extensively and directly with loyalty members to upsell streaming

Extensive in-cinema marketing including ‗Hoyts lounges‘ that allow interaction with the service

‘On’ and ‘In’ kiosk marketing and cross-promotion to drive trial

Cross-sell and cross-platform offers

We will use EDM to promote the service to our registered membership

We will use every web visit to drive awareness / engagement and to encourage trial

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PLATFORM

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We are launching a world class OTT delivery platform

• Mezzanine file storage • Streaming content

storage

• Content encryption • Stream preparation

Content metadata provider

Content delivery from studios

• Single sign-on • Customer analytics • Marketing & Comms • Other systems

VIOSTREAM AND WEBSITE

• eCommerce interface • Content playback management

Content Delivery Network

In addition to the planned services sVOD, tVOD, EST the platform provides the capabilities to launch aVOD and linear channels

Ingest, encoding and mezzanine file production

VIOMEDIA • BuyDRM License Server – rights management • Platform and product administration • Vouchers and promotions management • Customer service • Recommendations Engine

Windows PC

Sony Smart TV & Blu-Ray

Mobile & Tablet

Apple iOS & Mac

Sony PS3 Games Console

Samsung Smart TV & Blu-Ray

Xbox Games Console

Mobile & Tablet

LG Smart TV

Games Console

LAUNCH PHASE 2

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GOVERNANCE & LAUNCH EXECUTION TEAM

Team in place to set up new business, key roles to be agreed by joint venture partners

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David Kirk's career spans the top level of both business and sport. He has achieved success in both the public and private sectors. David is currently Co-founder and Managing Partner of Bailador Investment Management, Chairman of the publicly listed Trade Me and Chairman of The Hoyts Group. Prior to this, he was Chief Executive Officer of Fairfax Media.

Delfin is the CEO of Hoyts Entertainment. He joined Hoyts in 2005 after spending seven years as CEO and Managing Director of Hoyts General Cinema in South America. Delfin supervised the development and expansion of Hoyts General Cinema in Latin America in 5 countries. In 2012, Delfin was awarded the prestigious ―International Exhibitor of the Year‖ Award at CinemaCon.

Vincent Lloyd

Hoyts Group CFO

Delfin Fernandez

CEO Hoyts Entertainment

Adam Wrightson

Hoyts Group CTO`

Crispin Tristram

Hoyts Group CDMO

David Kirk

Chairman Hoyts Group

The interim Management Team will manage a dedicated Hoyts Stream Team of 8 FTEs and a Hoyts Kiosk Team of 15 FTEs and share resources (e.g. HR, Finance) with the Hoyts Group

Crispin joined Hoyts in May 2012 from SingTel Group where he was the Senior Director for Ecommerce and Digital Marketing, leading the digital transformation across the Group. Holding 18+ years international Consumer Marketing and Digital experience within globally recognised brands including Optus, Orange, 02 and Vodafone.

Vincent is the CFO of the Hoyts Group. He joined in 2000 after spending three years with KPMG in their assurance and consulting practices. Vincent has overseen M&A within the Hoyts Group including the acquisition and integration of cinema chains, the DVD kiosk business, several outdoor advertising businesses and also the divestment of the Hoyts Distribution business.

Adam has over 20 years experience in developing and managing mission critical IT solutions in Manufacturing, Banking and Cinema industries. Over the past 5 years, Adam‘s focus has been on deploying digital cinema and creating a technical services division which services both internal businesses as well as external clients.

KEY HOYTS STAKEHOLDERS

SET UP EXECUTION TEAM

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2

3

1

4

Customer value

proposition

Hoyts Stream will offer customers a critical mass of titles, across any device, from a trusted entertainment brand

• Hoyts Stream is a blockbuster tVOD/EST service integrated with an sVOD mix of films and episodic TV. At launch, a

critical mass of around 5,000 sVOD titles (library and first run flagship) and 2,500 tVOD / EST titles

• Available on PC, Tablet and connected TV. High quality customer experience based on great UI and recommendations

• Looking forward, linear and aVOD capability provide ‘second horizon’ expansion opportunities

OPPORTUNITY SUMMARY—HOYTS HOME ENTERTAINMENT

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There is a unique opportunity to partner with Hoyts, Australia‘s largest theatrical exhibitor, as it builds the nation‘s leading independent video streaming service

Market readiness Australia is primed for a credible, Netflix-like, OTT player to enter and win the largely untapped on

demand market • The fundamentals of the Australian home entertainment market are very strong with a per capita spend of $533 pa

• The broadband market is mature and able to support streaming services

• The on demand market is primed: DVD sales are moving rapidly to digital and pay-tv penetration is low relative to overseas

• Hoyts is well resourced and passionate about quality content, whereas competitors are struggling to make a mark

Business model Hoyts is developing a low cost business model that will maximise returns to content owners and equity partners

• Efficient cost structure maximising equity return to shareholders

• By 2020, we will be delivering very healthy revenues to content partners, whilst also earning a

reasonable EBITDA margin

Opportunity size Hoyts Stream will target the rapidly growing sVOD, tVOD and EST markets, worth circa A$1.5bn by 2020

• In 2012 the transaction video market in Australia was worth $2.0bn. The subscription video market was worth $2.6bn

• FOXTEL is well positioned to offer VOD services, but it will be wary of cannibalising its small base

• Therefore, we expect to secure 33% of the sVOD market by value and 20% of the more competitive tVOD / EST market

• In competitive markets, like the US, UK and Canada, committed challengers have flourished (e.g. Netflix / LoveFilm)

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OPPORTUNITY SUMMARY—HOYTS HOME ENTERTAINMENT

Executive team Experienced Board and Management team

• Experienced team in place to set up new business

• The interim Management Team will manage a dedicated Hoyts Stream Team of 8 FTEs and a

Hoyts Kiosk Team of 13 FTEs and share resources (e.g. HR, Finance) with the Hoyts Group

Platform Hoyts is building a world class delivery platform

• Platform build underway with Viocorp on a fixed price contract

• Integration services through Neon Stingray

• CDN network agreement in place with Akamai

• Single loyalty / CRM system in place by end of 2013

Market, sales and

partners

We are planning a strategic, integrated marketing launch campaign that uses existing channels to deliver very

low SACs

• Heavy promotion through Hoyts channels including in theatre foyers will drive extremely low subscriber acquisition costs

• Smart bundled offers across tVOD / sVOD / theatres and promotion to the Hoyts customer database of 1.1m registered

customers

• Sophisticated ongoing digital marketing of the service coupled with periodic above the line support, especially at launch

Competition and

sustainable

advantage

Only Hoyts can combine exhibition and home entertainment across brand, content, pricing, marketing, customer

data and CRM, maximising returns to studio partners

• Trusted: Hoyts is the #1 cinema brand in Australia with 20m admissions pa, and is trusted to deliver on demand content

• Resourced: Hoyts has has access to a large, entertainment loving customer base through its customer database and is

resourced to drive customer acquisition aggressively

• Focused: Hoyts is an entertainment company focused on growing a sustainable market position

6

7

5

8

14

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• Discussions with potential partners (CAs)

• Information Memorandum and management presentation

• Expressions of interest

• Shortlist parties

• Due diligence and negotiate contracts

• Sign definitive contracts

• Complete transaction

NEXT STEPS

15

Hoyts is in discussions with a number of parties seeking the right partners for the business

3

2

1

4

5

TIMING

Late May – early June

Early June

Late June

Early July

July – mid September

Early October

Mid October

6

7

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Appendix

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COMPANY OVERVIEW

Leading cinema exhibitor in Australia & New Zealand and the #1 supplier of screen advertising

• #1 supplier of cinema screen advertising services in Australia and NZ with 2,136 cinema screens and 290 digital foyer screens

• ~95% of Australia and NZ cinema screen advertising spend

Entertainment Advertising

Kiosks Exhibition Streaming Val Morgan Val Morgan Outdoor

• Leading cinema exhibitor in Australia and New Zealand

• Network of 53 cinemas and 437 screens

• Serves 20m admissions per annum

• Cinemas principally situated in major metropolitan shopping centres

• #1 DVD rental kiosk network in Australia with 580 kiosks

• Exclusive provider of kiosks to Woolworths (Australia‘s largest supermarket chain)

• Network of 755 plasma digital advertising screens in 165 shopping centers in Australia

• Further 954 screens across 113 gas stations in Australia

• 1,240 screens managed for TAB

• Online movie streaming business to be launched 2H 2013

• LeveragesHoyts‘ unique customer and brand position

17

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COMPANY HISTORY

Hoyts is a leading entertainment brand in the market with over a 100 year history of innovation

18

Hoyts completes digital upgrades

Hoyts Stream, an online streaming service, to be launched in 2H13

Under PEP's ownership, management has successfully grown the business organically and through acquisitions, with capital investment of ~A$170m

Source: Hoyts Group Management

HOYTS INNOVATION

CORPORATE ACTIVITY

Hoyts Pictures first established

Listed on ASX

Hoyts Distribution established

Acquired by PBL and WAN in a 50:50 JV

Acquired full ownership of Val Morgan

Acquired Outpost Media (rebranded Val Morgan Outdoor)

Acquired Instant DVD (rebranded Hoyts Kiosk)

Acquired Berkeley Cinema Group

Acquired Australian Multiplex Cinemas

Hoyts Distribution sold to StudioCanal

Acquired PumpTV and Innov8 (Val Morgan Outdoor)

Hoyts introduces first premium offering

Hoyts introduces large screen format (IMAX and Xtreme)

Hoyts introduces stadium seating

Launched Hoyts Rewards

Launched first 3D screen

Launched first Ben & Jerry location

Launched first food emporium

1908 1996 2002 2005 2007 2008 2009 2010 2012 2013 1995 2011

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Hoyts brands remains the dominant cinema brand across Australia and New Zealand

Source: Hoyts brand strategy research February 2013 Q7 and Q10

Base: Respondents who have been to the cinema in the last 3 months (n=916)

Awareness of cinema brands (% respondents)

Conversion rate awareness: Preference (% respondents)

Preferred cinema if all equally convenient (% respondents)

90

73

62

37

69

49

28

24

12

9

Hoyts

Event Cinemas

Greater Union

Birch, Carroll & Coyle

Village Cinemas

Reading Cinemas

Dendy

Palace Cinemas

Grand Cinemas

Other cinema

34

29

5

3

10

6

2

3

2

5

38

39

8

8

14

13

8

14

18

54

HOYTS BRANDS REMAINS THE DOMINANT CINEMA BRAND ACROSS AUSTRALIA & NEW ZEALAND

19

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HOYTS IS WELL POSITIONED EXPAND ITS HOME ENTERTAINMENT OFFERING

Hoyts Home Entertainment: Impact of brand on likelihood to use (% respondents)

Source: Hoyts brand strategy research February 2013 Q29

Base: All respondents (n=1,010)

37

34

29

26

20

19

11

13

16

22

23

21

Less likely More likely

20