preliminary results year ended 31 march 2010 · quarter 2 (july 1, 2010 - september 30, 2010)...

PRELIMINARY RESULTSPRELIMINARY RESULTSPRELIMINARY RESULTSPRELIMINARY RESULTS

YEAR ENDED 31 MARCH 2010YEAR ENDED 31 MARCH 2010YEAR ENDED 31 MARCH 2010YEAR ENDED 31 MARCH 2010

Introducing…

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Darren Throop – CEO Giles Willits – CFO

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� Entertainment One is a leading international independent entertainment group

� Specialises in the acquisition, production and distribution of film and television content across all media with core operations in the UK, Canada, Benelux and the U.S.

� Strategy focuses on the ownership and control of entertainment rights for exploitation across all media channels in multiple territories

Overview

“No. 1 independent multi-territory distributor”

Highlights

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Financial Highlights*

� Revenue of £444.2 million, up 30%

� Underlying EBITDA up 36% at £34.3 million

Operational Highlights

� 123 movies released theatrically in the year including the record breaking performance of The Twilight Saga: New Moon

� 213 half hours of original television programming delivered in the year

� Expanded international network adding Australia, New Zealand and France

2008 2009 2010

2008 2009 2010

Revenue

EBITDA

£264m

£343m

£444m

£18.6m

£25.3m

£34.3m

Revenue and Earnings Split

5

18

8

13

EBITDA

£39 million

41%

Revenue

£444 million

9%

50%

Film

Television

Distribution

22%

46%

32%

EBITDA

£34.3 million

68% EBITDA through Film/TV

Rights Library

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� Business underpinned by content rights library – driving 28% of film and TV revenues in 2010

� Independent third party valuation - $220 million (March 2009)

� Library includes

� 20,000 film and television titles

� 2,400 programme hours

� 45,000 music tracks

$175m

$220m

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FILMFILMFILMFILM

Film

Overview

� Acquire long-term film rights in multiple territories for distribution across all media

� No. 1 or 2 independent distributor in our three core territories

Financial Performance*

� Revenue of £208 million up 52%, Underlying EBITDA up 135% at £18 million

� Investment in content increased 34% to £51 million in 2010


� 123 theatrical releases in 2010 including Twilight Saga: New Moon

� Increased multi territory slate supported by Summit output deal

� Strong slate of films for 2011 – investment in content increasing

8* All figures at constant currency

Story of Film Distribution

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Theatrical/Cinema

6 Months 12 Months 18 Months 24 Months 30 Months 36 MonthsBox Office

Release

Up to 25

years

Airlines

Home Entertainment

VOD / Pay per View

Pay TV

Free / Speciality TV

Production

Distribution

Consumer

• Acquires long term

rights from producers

• Provides for the use

of films to

consumer

• Markets and promotes films to

consumers

• Provides negatives

to cinemas and

broadcasters

6 Months 12 Months 18 Months 24 Months

+

-

Box Office

Release

Pay Minimum

Guarantee

Film Value Chain

Indicative Film Cash flow Profile

The Global Film Market

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� Forecast market growth over five years of $6.8bn

� Growth in Digital and Box Office offsetting decline in home video

$29.7bn$22.6bn

$4.1bn$9.4bn$22.6bn

$24.6bn $33.7bn

$51.0bn $46.3bn

2009

$107.3 billion

2014

$114.1 billion

Positioned for Digital Growth

� Digital continues to represent a growing part of the Group’s business generating c. £20 million revenue in FY 2010

� In 2010 the group enhanced its digital service infrastructure and signed its first multi-territory independent film distributor deal with iTunes

� Strategy to increase investment in content library ensures we benefit from growth in new channels to market

� Digital also brings opportunities for improved margins through lower operating costs

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Selection of Upcoming Releases

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From some of our key partners

Film – Strategic Focus

� Increase the number of films distributed from independent producers

� Expand into new territories through partnerships and acquisitions

� Grow digital business in line with the development of the market

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TELEVISIONTELEVISIONTELEVISIONTELEVISION

Television

Overview

� Leading production, international sales, licensing and merchandising business

� Multiple genres and formats including established Kids business

� Sells and distributes to over 500 broadcasters and distributors in 180 countries

Financial Performance

� Revenue of £43.7 million up 21% with underlying EBITDA at £8.4 million

� Investment in programmes of £24 million


� 213 half hours of original television programming delivered in 2010

� Developed partnerships with major US/Canadian broadcasters

� Exciting pipeline of programmes for 2011

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Television Production

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Entertainment One

North American Broadcaster Pre - Sales

Tax Credits

Canadian Media Fund

International sales

Home Entertainment/Digital

Internationally

-

focused content

25%

30%

40%

5%

20%

10%

Typical Production Financing in Canada

Revenue

Upside from

International

Markets

Production

Funding

Recent Television Productions

With a selection of our key partners

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Kids Overview

� Creates, produces and distributes children’s entertainment in 180 territories

� Properties include the UK’s No.1 pre-school girl's property Peppa Pig, and BAFTA winning Ben & Holly’s Little Kingdom and Lost and Found

� Amberwood catalogue deal in Canada adds global distribution rights for over 240 half hours of programming

� Aims to leverage successes, expand the number of properties and extend its reach

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Kids Licensing and Merchandising

� Dedicated team focused on expanding opportunities across all retail segments including clothing, home, toys, books, electronic games and DVDs

� Generated over £100 million of retail sales through its agreements this year

� Recent successes include Peppa World at Paultons theme park, launch of Ben

& Holly’s merchandise range, iphone app for Humf

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Television – Strategic Focus

� Extend reach in North American and international broadcast markets

� Expand original programming slate across multiple genres and formats

� Increase focus on Kids TV

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DISTRIBUTIONDISTRIBUTIONDISTRIBUTIONDISTRIBUTION

Distribution

Overview

� Largest wholesaler of entertainment software in Canada and No.1 independent distributor for video and music in the U.S.

� Delivers the Group’s own, and third party, content to over 4,000 retail partners across North America

Financial Performance

� Revenue in line with prior year at £231 million on like for like basis, EBITDA of £13.3 million


� Increased market share in Canada in a stable market, expanding long serving relationships with the industry’s largest producers and retailers

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Spotlight on Financials

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FINANCIALSFINANCIALSFINANCIALSFINANCIALS

Summary

Revenue, £444.2 million, up by 18%

Underlying EBITDA, £34.3 million, up by 25%

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� Adjusted PBT, at £22.1 million, up by 35% from £16.4 million

� Acquired Intangibles amortisation charge of £17.5 million will reduce in 2011 to c. £15 million

� Net one-off credit of £5.7 million (including exchangeable buy-back gain) – anticipate charge of £1.6m for Main Market step up in 2011

� Share Options charge down to £2.7 million – new incentive plan and options for 2011 – no change to existing guidance for 2011

� Adjusted finance charge at £10 million up partly reflecting higher debt following TV business acquisition in 2008 – lower cost in 2011 from lower debt levels and exchangeable interest saving

� Adjusted tax rate of 20% benefiting from tax loss utilisation – guidance range of 25% to 30% for 2011

Earning per Share

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� Weighted adjusted diluted shares of 153.6 million split

� 142.6 million shares in issue (including S Class shares)

� 11 million dilutive share options

� Share issue in February 2010 raised £10 million through issue of 19.5 million shares

� 2.5 million share options issued to Summit on 24th May 2010 – time vesting within 12 months

Adjusted diluted EPS, at 11.5 pence, up 34% from 8.6 pence

Cashflow

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� Improved Free cash inflow of £8.6 million (2009: £14.9 million outflow)

� Operating cash inflow, £85.2 million, up 137% driven by EBITDA improvement and positive working capital movement

� Cash investment in content of £75 million, up £27 million, will continue to increase in 2011 – expect total in range of £85 - £100 million

� Acquisition of subsidiaries relates to deferred payments for the TV businesses

� Net cash interest paid of £5.7 million – 6 times interest cover

� Equity raise settled exchangeable note buy back - net cash in £1.0 million

� TV Financing driving increase in borrowings, non TV related debt down

Net cash increase of £5.8 million in 2010 (2009: decrease £6.8 million)

Net Debt

Senior net debt down £4.1 million

� Strong cash generation reducing senior debt

� Further improvements expected in 2011

Exchangeable debt down £13.0 million

� Part repurchased exchangeable note at a cost of £9.0 million. Funded through equity £10.0 million equity raise

TV production financing up £13.4 million

� Increase driven by success of the TV business in growing the production slate

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Net Debt

£86.1m£89.8m

£22.9m£9.5m

£5.6m

£57.6m

£18.6m

£61.7m

� Adjusted Net Debt leverage down to 1.8 times in 2010 (3.2 times in 2009)

£38 million of senior facility headroom to support strategic growth plans

Main Market Listing

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� On 31 March 2010 announced step up from AIM to Main Market of London Stock Exchange

� It is expected that the move will be completed during July 2010

� The Board believes the move will result in improved shareholder value resulting from

─ Higher corporate profile

─ Supports acquisitive growth strategy

─ Increased stock liquidity

─ Access to a wider pool of funds both in Europe and North America

� As part of the step-up process the Group will be re-domiciling to Canada

Growth Strategy

Acquisitions

� Proven track record of successfully embedding acquisitions into business

� Constantly on the look out for suitable opportunities

� Renewed focus on corporate activity to drive growth in next 12 months

Target Territories

� Main focus is on territories where Hollywood films widely accepted

� Prime targets are western European and English speaking countries

� Opportunities for consolidation within existing territories also exist

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Summary

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� Excellent results proving content investment strategy

� Strong slate of Film and Television going into new year

� Operating cash flow driving down debt

� Opportunities for acquisition to drive further growth

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Does anyone have any questions?

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APPENDICESAPPENDICESAPPENDICESAPPENDICES

Board of Directors

Darren Throop,Chief Executive Officer

Darren has over 20 years of executive management in the entertainment industry. He became CEO of Entertainment One in July 2003 and has been in the group since 1999. Previously Darren was the owner of Urban Sound Exchange between 1991 and 1999 when it was acquired by CD Plus.

Giles Willits, Chief Financial Officer

Giles joined the board of Entertainment One in March 2007. He was formally director of Group Finance at J Sainsbury plc from 2005 to 2007 and group corporate development director and interim group finance director at Woolworths Group plc. Before this Giles held a number of financial and operational management roles within Kingfisher plc and Sears plc. Giles is a chartered accountant having qualified with

PricewaterhouseCoopers.

Patrice Theroux, President Filmed Entertainment

Patrice has over 20 years of experience in the motion picture distribution industry. Until June 2006 was president and CEO of Motion Picture Distribution LP, where he managed one of the world's leading independent distribution operations, including MPD in Canada, Momentum Pictures in the United Kingdom and AurumProducciones in Spain.

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Future Releases

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E1 UK - RELEASE SCHEDULE

TITLE GENRE DIRECTOR CAST

Quarter 1 (April 1, 2010 - June 30, 2010)

Remember Me Drama/Romance Allen Coulter Robert Pattinson, Pierce Brosnan, Emile de Ravin

The Joneses Comedy/Satire Derrick Borte Demi Moore, David Duchovny, Lauren Hutton

Furry Vengeance Family/Comedy Roger Kumble Brendan Fraser, Brooke Shields, Ken Jeong

Rec 2 Horror Jaume Balagueró & Paco Plaza Manuela Velasco, Ferran Terraza, Javier Botet

Letters To Juliet Comedy/Romance Gary Winick Amanda Seyfried, Gael García Bernal, Vanessa Redgrave, Christopher Egan

Quarter 2 (July 1, 2010 - September 30, 2010)

Eclipse Fantasy/Drama David Slade Kristen Stewart, Robert Pattinson, Taylor Lautner, Billy Burke, Ashley Greene

Baaria Comedy/Drama Giuseppe Tornatore Francesco Scianna, Margareth Made, Raoul Bova

The Runaways Biopic/Drama Floria Sigismondi Kristen Stewart, Dakota Fanning, Michal Shannon, Tatum O’Neal

Under The Mountain Family Adventure Jonathan King Sam Neill, Tom Cameron

The Hole 3D Family Horror/Thriller Joe Dante Teri Polo, Chris Massoglia, Haley Bennett, Brue Dern

Quarter 3 (October 1, 2010 - December 31, 2010)

Mr Nice Biopic/Drama Bernard Rose Rhys Ifans, Chloe Sevigny

The Way Back Drama Peter Weir Ed Harris, Colin Farrell, Mark Strong, Jim Sturgess, Saoirse Ronan

Fair Game Thriller Doug Liman Sean Penn, Naomi Watts

Red Action/Comedy/Thriller Robert Schwentke Bruce Willis, Morgan Freeman, Helen Mirren, John Malkovich

Future Releases

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E1 CANADA - RELEASE SCHEDULE

TITLE GENRE DIRECTOR CAST


La Cité (The City of Shadows) Drama Kim Nguyen Jean-Marc Barr, Pierre Lebeau, Claude Legault

Shine of Rainbows Drama/Family Vic Sarin Connie Nielsen, Aidan Quinn, John Bell, Jack Gleeson, Tara Alice Scully, Niamh Shaw

Coco & Igor Drama/Romance Jan Kounen Anna Mouglalis, Mads Mikkelsen, Elena Morozova

Control Alt Delete Comedy/Drama Cameron Labine Sonja Benett, Tyler Labine, Laura Bertram

Furry Vengeance Family/Comedy Roger Krumble Brendan Fraser, Brooke Shields, Ken Jeong

Liberte Drama Tony Gatlif Marc Lavoine, Marie-Josée Croze, James Thiérrée

Letters To Juliet Romance/Comedy Gary Winick Amanda Seyfried, Gael Garcia Bernal, Vanessa Redgrave, Christopher Egan

Harry Brown Crime/Drama/Thriller Daniel Barber Michael Caine, Emily Mortimer, Jack O'Connell

Leslie, My Name is Evil Comedy/Crime/Fantasy Reginald Harkema Gregory Smith, Kristen Hager, Ryan Robbins, Don McKellar

Micmacs Comedy/Crime Jean-Pierre Jeunet Dany Boon, Andre Dussoliier, Dominique Pinon, Yolande Moreau

L'Affaire Farewell (Eng: Farewell) Thriller Christian Carion Guillaume Canet, Emir Kusturica, Diane Kruger

George A Romero's Survival of The Dead Horror George A Romero Athena Karkanis, Kenneth Walsh, Devon Bostick

Agora Adventure/Drama/History/Romance Alejandro Amenabar Rachel Weisz, Max Minghella, Oscar Isaac, Rupert Evans

Looking for Eric Comedy/Drama/Fantasy/Sport Ken Loach Steve Evets, Eric Cantona, Stephanie Bishop

Perriers Bounty Comedy/Crime/Drama Iam Fitzgibbon Cillian Murphy, Brendan Gleeson, Jim Broadbent

Splice Horror/Sci-Fi/Thriller Vincenzo Natali Sarah Polley, Adrian Brody

Incendies Drama Denis Villeneuve

Year of the Carnivore Comedy/ Drama Sook- Yin Lee Mark Rendall, Cristin Miloti,

The Killer Inside Me Crime/Drama/Thriller/Western Michael Winterbottom Jessica Alba, Casey Affleck, Kate Hudson, Bill Pullman

Act of Dishonour Drama Nelofar Pazrira Nelofar Pazrira, Greg Byrk

Love Ranch Drama Taylor Hackford Scout Taylor-Compton, Bryan Cranston, Helen Mirren, Joe Pesci

Eclipse Fantasy/Drama David Slade Kristen Stewart, Robert Pattinson, Taylor Lautner, Billy Burke, Ashley Greene


Mr. Nobody Drama/Fantasy/Romance/Sci-Fi Jaco van Dormael Jared Leto, Sarah Polley, Diane Kruger, Rhys Ifans

Baaria Comedy/Drama Giuseppe Tornatore Francesco Scianna, Margareth Made, Raoul Bova

Les Herbes Folles (Eng Title: Wild Grass) Drama Alain Resnais Andre Dussollier, Sabine Azema, Mathier Almalric

Cabotins Comedy Alain Desrochers

Life During Wartime Comedy/Drama Todd Solondz Ciaran Hinds, Ally Sheedy, Paul Ruebens

The Concert Comedy/Music Radu Mihaileanu Alexsei Guskov, Melanie Laurent, Dmitri Nazarov

Y en Aura Pas De Facile Drama/Comedy Marc-Andree Lavoie Mahee Paiement, Pierre-Luc Brillant

Shelter Horror/Thriller Mans Marlind/Bjorn Stein Julianne Moore, Jonathan Rhys Meters, Jeffrey DeMunn


The Bang Bang Club Drama Steven Silver Ryan Phillipe, Malin Ackerman, Taylor Kitsch

Le Poil De Bete Adventure Phillippe Gagnon Guillaume Lemay- Thivierge, Antoine Bertrand, Gilles Renaud


Beat The World Drama Robert Adetuyi Mishael Morgan, Sho-Tyme, Chase Armitage, Lil’ Steph, Christian Loclair, Shane

Lance et compte Drama/Sport Fréférick D’Amours Marc Messier, Marina Orsini, Carl Marotte, Jason Roy-Léveillée

La Rafle Drama Roselyne Bosch Mélanie Laurent, Jean Reno, Gad Elmaleh

Barney's Version Drama Richard Lewis Paul Giamatti, Dustin Hoffman, Rosamund Pike, Minnie Driver

Release dates to be confirmed (a selection of)

Tell Me Drama/Romance Massy Tadjedin Keira Knightley, Eva Mendes, Sam Worthingon, Guillaume Canet

Tree of Life Fantasy/Drama Terrence Malick Brad Pitt, Sean Penn, Joanna Going, Fiona Shaw, Jessica Chastain

What's Wrong with Virgina Drama Jennifer Connelly, Emma Roberts, Ed Harris Dustin Lance Black

Meres et Filles Drama Julie Lopes Curval Catherine Deneuve, Marie Josee Croze

The Big Bang Action/Mystery/Thriller Tony Krantz Antonio Banderas, Sienna Guillory, Sam Elliot, William Fichtner, Rebecca Mader

The Whistleblower Drama Larysa Kondracki Rachel Weisz, Monica Bellucci, David Strathairn, Vanessa Redgrave

Vanishing on Seventh Street Horror/Mystery/Thriller Brad Anderson Thandie Newton, Hayden Chistensen, John Leguizamo,

Dumas History Safy Nebbou Gérard Depardieu, Benoit Poelvoorde, Dominique Blanc

Bagman Thriller George Hickenlooper Kevin Spacey, Barry Pepper, Rachelle Lefevre, David Cross

Future Releases

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E1 BENELUX - RELEASE SCHEDULETITLE GENRE DIRECTOR CAST


Pope Joan Drama/History/Romance Sonke Wortmann Johanna Wokalek, Ellie Kemish, John Goodman

The Immortal Action/Crime/Thriller Richard Berry Jean Reno

Kom Niet Aan Mijn Kinderen Drama Ron Termaat Karina Smulders, Tom Hofman

Balibo Thriller Robert Connolly Anthony LaPaglia, Damon Gameau, Tom Wright

Streetdance 3D Dance/Music Max Giwa/Dania Pasquini Nichola Burley,Richard Winsor, Charlotte Rampling

The Doors: When You're Strange Documentary Tom DiCillo Johnny Depp, Jim Morrison

Dossier K Thriller Jan Verheyen Koen de Bouw, Werner de Smedt

Ondine Drama Neil Jordan Colin Farrell,Stephen Rea, Tom Archdeacon

Letters To Juliet Comedy/Romance Gary Winick Amanda Seyfried, Gael García Bernal, Vanessa Redgrave, Christopher Egan


After Life Thriller Agnieszka Wojtowicz-Vosloo Christina Ricci, Justin Long, Liam Neeson

Tucker & Dale Vs Evil Comedy Eli Craig Alan Tudyk, Tyler Labine, Katrina Bowden

De Bonte Brigade Family Roger Kumble Brendan Fraser, Brooke Shields, Dick van Dyke

London Boulevard Drama William Monahan Keira Knightley, Colin Farrell, David Thewlis

Peacock Thriller Michael Lander Susan Sarandon, Ellen Page, Cillian Murphy, Bill Pulman

Machete Action Robert Rodriguez Danny Trejo, Robert De Niro, Jessica Alba

Resident Evil: Afterlife (3D) Action Paul W.S. Anderson Milla Jovovich, Wentworth Miller

13 Thriller Gela Babluani Mickey Rourke, Jason Statham, Emmanuelle Chiriqui


The Eagle Of The Ninth Action Kevin MacDonald Channing Tatum, Jamie Bell

Warrior Action Gavin O'Connor Nick Nolte, Tom Hardy, Joel Edgerton


Another Year Drama Mike Leigh Jim Broadbent, Imelda Staunton, Philip Davis, Lesley Manville

The Way Back Drama Peter Weir Colin Farrell, Ed Harris, Mark Strong

The Rhum Diary Drama Bruce Robinson Johnny Depp, Aaron Eckhart, Amber Heard, Giovanni Rbisi

Fair Game Thriller Doug Liman Sean Penn, Naomi Watts

Sinterklaas 3 Family Martijn van Nellestijn Sinterklaas, Zwarte Piet

Shanghai Drama Mikael Hafström John Cusack, Chow Yun-Fat, Gong Li

The Next Three Days Thriller Paul Haggis Russell Crowe, Liam Neeson, Elizabeth Banks, Olivia Wilde

Release date to be determined

Gallow Walker Action/Horror/Thriller/Western Andrew Goth Wesley Snipes

New Daughter Horror/Thriller Luis Berdejo Kevin Costner

The Beaver Comedy/Drama Jodie Foster Jodie Foster, Mel Gibson

Scream 4 Horror/Thriller Wes Craven Courtney Cox, Neve Campbell

Shelter Horror/Thriller Mans Manlind Julianne Moore, Jonathan Rhys Meyers

Dream House Thriller Jim Sheridan Daniel Craig, Naomi Watts

The Guard Comedy/Thriller John Michael McDonagh Don Cheadle

Killer Elite Action/Thriller Gary McKendry Robert DeNiro, Jason Statham

St. Vincent Crime/Drama/Thriller Water Hill Mickey Rourke

Source Code Drama/Sci Fi Duncan Jones Jake Gyllenhaal

Africa United Adventure/Comedy/Drama Debs Gardner-Paterson Roger Nsengiyumva

Area 51 Horror/Thriller/Sci Fi Oren Peli Sandra Staggs

Henry's Crime Comedy Malcolm Menville Keanu Reeves, James Caan

Blitz Thriller Elliott Lester Jason Statham

preliminary results year ended 31 march 2010 · quarter 2 (july 1, 2010 - september 30, 2010)...

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