Management Discussion and

Analysis & Key Financial Statistics

Business strategy: To maintain a disciplined approach to acquisition,
production and distribution of projects by balancing our financial risks
against the probability of commercial success for each project…[and
thereby] invest in or acquire individual properties, including films and
television programs, libraries, and entertainment studios and companies,
which enhance our competitive position in the industry, generate
significant long-term returns and build a diversified foundation for future
growth.
 Overview of Fiscal 2010
• Fiscal Year End: March 31, 2010
• 10k Issue Date: June 30, 2010
• Revenue: $1.583 Billion
• Operating Expenses: $1.525 Billion
• Operating Income: $52.045 Million
• Net Loss: ($117.5 Million)
• EPS: ($0.17)
Revenue Streams & Primary Expenses
2010 $Millions % Change since 2009
Motion Pictures 1119.2 -9.30%
Television Production 350.9 57.90%
Media Networks 113.6 N/A
Consolidated Revenue 1583.7 8%

Primary Operating Expenses 2010 $Millions

Direct Operating 807.3
Distribution and Marketing 515.755
General and Administrative 180.543
 Motion Pictures Segment
• Motion Pictures Revenue: $1,119.2 Million;(9.3%)
2010 $Millions % Change since 2009
Theatrical 139.4 -37.60%
Home Entertainment 540.4 -15.70%
Television 186.7 9.6%

Primary Operating Expenses 2010 $Millions

Direct Operating 491.6
Distribution and Marketing 469.3
General and Administrative 47.3
 Motion Pictures Segment Cont.
• Limited Release Strategy
– Market Crowding
– Consumer Spending
• Partnerships and Joint
Ventures
• Film Credit Facility
• Amortization of
Intellectual Property
• Resurging Market in 2011
• Film Releases: Next 5 Years
 Television Production Segment
• Television Production Revenue: $350.9
Million; 57.9%

Primary Operating Expenses 2010 $Millions

Direct Operating 278.9

Distribution and Marketing 32.5

General and Administrative 9.7

 Television Production Segment
Cont.
• Diversification
• Television Production Programming Hours
• Per Episode Revenue
• Partnerships and Joint Ventures
• Continued Growth
 Media Networks Segment
• Media Networks Revenue: $113.6 Million

Primary Operating Expenses 2010 $Millions

Direct Operating 36.8
Distribution and Marketing 14
General and Administrative 43.7
 Media Network Segment Cont.

• Formed out of acquisition of TV Guide

• General and Administrative Expense: +32%
• Depreciation and Amortization Expense
• Sale of Minority Interest
• Deconsolidation
 Other Significant Expenses
• Depreciation and Amortization Expense: $28.1
Million; +269.4%
– Media Networks
• Interest Expense: $58.1 Million; +69.4%
– Higher Average Outstanding Balances
 Material Market Risks
• Interest Rate Exposure
– Derivatives
– Specific-risk Hedging
• Currency Exchange Exposure
– Currency Contracts
– Specific-risk Mitigation
 Review of Fiscal 2010
• Fiscal Year End: March 31, 2010
• 10k Issue Date: June 30, 2010
• Revenue: $1.583 Billion
• Operating Expenses: $1.525 Billion
• Operating Income: $52.045 Million
• Net Loss: ($117.5 Million)
• EPS: ($0.17)
 Five Year Statistical Comparisons
Assessment Lions Gate Movie and S&P 500
Entertainment Entertainment
Industry
5 Year Gross Margin% 50.2% 62.2% 44.6%
5 Year Net Margin% (4.5%) 26.4% 12.0%
5 Year Return on (4.3% 6.2% 8.0%
Assets%
5 Year Return on (5.6%) 7.1% 12.0%
Investment%

5 Year Return on (39.3%) 6.3% 20.0%

Equity%
 Forward Looking Statements
• General Economic Recovery
• Motion Picture Releases
• Television Production Hours
• Partnerships and Joint Ventures
• Market Risk Exposure