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Gontents 1 Ten Years in Brief, 3' Letter to Shareholders 5 Review of Operations 12 ConsolidatedlBalance Sheet. 14 Statement of Consolidated Earnings and Earnings Retained in the Business 15 Notes to Financial Statements 16 accountants' Opinion 17' Directors and Officers

LJD1JL;:\ M M Ten-Years in t3ri'ef'. L-:::) MME (Dollar amounts In THousand's) Year-End Position 1970 1969' 1968 1967 11966 1'965 1964 1963, 1962 19611 Current Assets andllhvestment in Securities .................. $ 553,666 476,640 93,509 44,413 38,780 28,526 32,690 18,872 22,125' 23,120 Current Liabilities .............. $' 1711,367 150,813 30,390 23,992 19,726 24,765 18,576 14,508 26,334 111,721 Excess ................... $' 382,299 325,827 63,119 20,421 19,054 3,7611 14,1114 4,364 (4,209) 111,399 PrOperty; Plant and I Equip. - net .. $' 2311,039 217,338 160,207 146,489 141,305 135,207 130,316 129,055 107,889 72,887 TbtalAssets ................... $1',064,270 11,0111 .307 272,57,5 209,726 195,035 182,388 179,493 158,879 136,423 102,782 Sharehc4ders'.' Equity ........... $' 285,714 259,726' 124,185 90,855 76,795 71,136 72,744 73,5811 74,6811 64,829 Sales and Operating, Revenues (in i'milUons) Current Assets 8k' Securiti'es Less Currentl Liabillities (in i millions)j Tot'aI I Assets (in $ millions)i 1

To Our Shareholders and Eonplloyees:' Laurence A/an Tisch. Preston Robert Tisch 0 E 2 I

It, is with great pleasure that we submit this Report for the fiscal year ended August~31', 1970. Your Company achieved record revenues and operating, earnings during the past year. Our gross revenues reached a high of $698;738,000 compared l to $550;$82,000 for the preceding year: Earnings from op- erations were $33,218,312 or $2.30 per share compared with $24,61'7;382 or $1.71' per share for fiscal 11969!. Due to the decline in the stock market we sustained net~ security losses for the year of $5,624,452 equal to $.391 per share compared to last.y,ear where we reported net security gains of $1,721,897 or $.12' per share and the extraordinary item of $5,282,955 or $!37' per share resulting from profits realized: on sales of' Control Data stock. After giving effect to these security trans- actions, net earnings for fiscal 1970 were $27,593',860 equal t'oi$1.91 per share. Earnings forfiscal 1969 were $26,339,279 or $1.83' per share before the extraordi~ nary item. We believe the results of our investments in securities, although resulting in a loss this year, compare favorably against the general decline in the stock market. We have confidence that! our investments in securities will provide profitable returns. The investments will continue pending,the application of such funds to our develop- ment and I expansion i activities:. The 1970 results, it should be noted, in- clude revenues and earningsfrom~ourfirst full year of'operation of'the Lorillard and Reed Candy divisions. On October 6;, 1970, the Directors in- creased our common stock dividend to $.25 per share for the final qparter of'the year covered by this Report, placing our dividend at the annuall rate of $1.00 per year. Our dividend for the twolpreceding years has been $.13'/s annually:In effect, the Directors' dividend' action signals the: beginning of a new phase ih your Company's development. Our strong cash flow;,ourfavorable liquidity and our continuing confidence in the profitabilityand earnings in all divisions make pos- sible increasedl participation by Loews shareholders in the successful results of the Company's operation. Financial results alone, however; can only partially express the dimensions of'Loews' growth in the year just, ended, for it' was also ayearmarked by new building activ= ity in our residential development, hotel and theatre divisions, and by a significant expansion of our international interests,. In New York C'ity, we launchedl a $100 million environmental community devel- opment! that will provide much-needed urban housingifor more than,2',000 fami- lies; while still retaining the quality, of'the natural site. Initial homebuyer response has been most enthusiastic, and we have high hopes that the design may serve as a prototype for other unban building developments. In London, we opened our first European hatell , the luxurious 500-room Churchill, to critical acclaim and near-capacity occupancy. On the Continent, we enteredl into: ai col- laborative agreement with Neue Heimat, one of the world's largest developmentt companies, which will const'ruct new hotels for Loews in key cities of Europe. The first result of this association - a new. Loews hotel in Hamburg - was~ an- nounced as this Report was in prepara- tion. We: are; moreover, actively, negoti- ating for the acquisition of prime sites in five additional major European cities. In a collateral development; Air France has contracted with Loews Hotels to serve as consultant's to the new Air France hotel enterprise: Our first project will be to ap- ply our expertise - providing both techni- cal advice and operating assistance - to Air France's.new, hotel in Paris. Continuing our pursuit ofi the theatre di- vi'sion's planned program to bring Loews theatres into every major U.S. population- center, 10 theatres were built or acquired„ making a, total of'1117 from coast to coast:Among the highlights of the year in our consumen products divisions were: the launching of' a new Lorillard product.- Kent Menthol - and the. broadening di's- tribution of several Reed Candy products that~ had previously been marketed on a, regional basis only. Lorillard'ss overseas. activity - involving direct~ marketing, as well as licensing operations - achieved recordlleveis~ andlled to the opening of a new Loews/Lorillard operations center ih Brussels. Loews"thrust into the international arena is based:on a~numberofrfactors, including the steady expansion of international air travel and the expectation of continuing high Gross National Product growth rates in many partsofiEurope„Africa and Asia. These conditions provide the framework forcapitaliPing on favorablesituations for expansion of'our activities in many parts of the:world. Growth for growth's sake alone has never been part ofithe Loews lexicon, foralfun- damental tenet ofi your Company's oper- ating policy is the applicationi of sound: business practices to all our enterprises. In this connection, we have consolidated: and centralized a number:of staff'services at the corporate level that have alreadyy resulted in significant economies and in the further strengthening of our competi- tive capability. The factors that led your Directors to in- crease the: dividend on Loews stock; coupled to our demonstrated record of solid growth since 1960, point to even more exciting possibilities in the years ahead! For now Loews is firmly rooted in four industries: entertainment, travel, con- sumer products and home building. We look forward with confidence to, the fur- thering of' our objectives concurrent with the consolidation of our present position.. In closing, we wouldl like to addl a word' of warm appreciation for the outstanding, efforts ofiour employees andlforthe con- tinuingisupport of our shareholders. Laurence Alan Tisch Chairman of the Board and Chief Executive Offi'cer Q,v~ R\ , 4-J, Preston Robert Tisch President, and Chairman of The ExecutiveCommittee November 11, 1970 3 . ..•,Mr.q..,,A,,.....-Y,:, .. .

Partial view of the Churchill lobby. 4

Revriew' of Operations The Churchil/,' London„England: Partial view of the Churchill's Edward Suite. iH'otell properties and services "Banking on American-style hard' sell marketing techniques, advanced man- agement know-how, and a longiseries of U.S. hotel successes . . . Loews comes to Londoni with the 500-room Churchill and plans to open at~ least one hotel I per yeariniEurope": - Service VV'orld lnternational; July; 1970. In these words; a leadingi trade publica- tion took note of' Loews' official entry into the! European hotel marketiand sounded the dominant theme of a year marked byy international growth developments, O The Churchill, in Portman Square, Lon- don, opened as planned on May 1, 1970j With interiors designed and fur- nished in elegant' Regency style, The Churchilll accommodates 978' guests in 500 rooms and suites. Total cost was $12 million: The hotel employs 500'- a staff/rooms ratio of'1':1'. m Loews entered into associationi with Neue Heimat Kommunal of'WesU Ger- many, one of the largest development companies in Europe. A 554-room, Loews hotel: is under consthuctioni in Hamburg, adjacent to the Botanical Gardens. It will'be a 33-story structure - the tallest hotel in Germany- in- tegral to the Kongresszentrum, Ham- burg's new convention center. 01 A second Loews London hotel' is planned for the Marbie Arch area. Wit'ni 1,800 rooms, it will be:the largest hotell in WesterniEurope and is designed to f'rlll a long-felt need for a fuil~service meeting and conference facility in the English capital! 0 To meet the accelerating need for more: modern, hotel facilities on the Continenti our international team is actively engaged in the developmentt of plans for new Loews Hotels in Monte Carloj , Frankfurt, Amsterdam, Copenhagen and Paris. O Loews sales and reservations offices were expanded to service our growing, international interests, In addition to representation in 17 UlS: andl Cana- dian cities, there are now Loews of- fices or representatives in Mexico Ciry, Caracas, London, Brussels, Paris, 8930!1342 5

Frankfurt; The Hague, Rome, Milan, Madrid, Zurichi Hongi Kong, Tokyo, Sydney and Melbourne. On the domestic side, Loews Hotels once again led! the industry. According to a nationwide survey for 11969; our hotels ranked first in average annual revenue per room. Loews' figure!was1!8'% higher than our nearest competitor's (Hilton)." Loews' continuing success in the hotel industry derives from a highly productive synthesis of' resources and skills. Our hotel "product line" is diverse, with prop- erties suiting every taste and style!- lux- ury, commercial, tourist~ and resort. Our new telephone reservation structure makes it possible for guests to confirm space from anywhere inthe country with= out paying a toll charge. From our: divi- sional sales offices comes a constant flow of' information that~ helps identify primee marketing target's. Through selective usee of'advertising media, the Loews message is seen andlheard'regularly in more than 150' leading market! areas here and abroad. Our hotel management team -withi more than 20 years of'experience in the creative mating of'facilities and service with tech- nology and marketing - looks forward to enlarging upon Loews'' "long series of hotell successes" both at home and inr ternationally. Film exhiibiitimn Throughout the history of'the motion pic- tureindustry„ there has beeni astrongi relationship between production and ex- hibition, between the show and the show- case. The highly sophisticated cinema art form of' the 70's is a far, cry from the primitive "flickers" of the turn of'the cen- tury; so too the truly contemporary, theatre bears no resemblance to the nickelodeon that thrilled our grandparents. Loews' position, as one of the nation's foremost film exhibitors is based on a deep under- standing by experienced management of' the factors that make up the successful showcase: theatre location, and design, patron comfort and convenience; film se- lection; advertising andl promotion.. ' "Leaders in Lodging,"' Institutions Magazine;, July, 19701 Ever since the inauguration of the Loews theatre growth program in 1965, our se- lection of sites for new construction has closely followed the U.S, poputation's.de- mographic growth patterns. Emphasis has been on highitraffic locations, easily accessible by automobile. Typical of such properties is Loews Route 18 in East Brunswick, New Jersey, which opened on M'arch 14, 1970. The Route 18 Theatre is situated in the Miracle Mall Shopping Plaza on busy Route 18 between Route 9' and the New Jersey Turnpike. Approximately one-half million people live! within a radius, of' 12: miles. This new theatre seats 1,1156 and the parking, lot accommodates 900 cars. Another phase of'the growth program in- volves acquisition and moderniiation of~ existing properties;, often in downtown areas. A representative acquisition dur~ ing fiscal 1970 was the! Loews Holly in Hollywood, California. A five-week renovation periodl followed our acquisition of' this theatre in June. During this time, the interior was com- pleteiy refurnishedlandlredecorated:~ new seats, a new curtai'n, new, pprojection equipmenti, new air conditioning and new lounge facilities were installed. The ex- tenior was given a totally new look by remodeling the boxoffice and recon- structing the marquee to contemporary standards. 6

In all, 10 theatre properties were added to the~ Loews circuit in Tulsa, Houston, Daf- las, Los Angeles; Hollywood, East Bruns- wick; N. J., Brooklyn and Yorktown, Ohio. According to, preliminary data from the 1970 Census; all but two of these new houses are situated in metropolitan areas with more than 1,500,000'population. As of August 31, a grand total ofi11T7 theatres were operating under the Loews banner. The addition of new and acquired theatree properties further advanced us toward our goal ofi representation in every major U.S:, market area. By bringing to these prop- erties the exacting standards of' film se- lection„ aggressive promotion practices, and thoughtful customer service that. The lobby o1 Loews Rt. 18. The world premiere of "Paint Your Wagon" atloews State lf: 7'

LorrAard menthol'brands. LorilldrdlilterbrandS. King Size and 1014 mm. 8 characterize all Loews theatre opera- tions, our management~ has extended the Loews reputation for excellence: while contributing to another record boxoffice year. We are confident that our theatre growth program in combination with our demonstrated'qualif'ications as film ~exhib- itors will continue to yield increasingly favorable results. Consumer products Loews' first full year of' activity in the manufacturing and marketing of' con- sumer goods was marked by the intra- duction of new products, expanding di's- tribution of sorne!regional brands, and by the restructuring of'the tobacco and candy operations as separate andl dis- tinct profit centers within the Company. The Reed Candy Company, with plants iniChicago and San Francisco, produces a wide variety of candy drops and! bar candies. Innovations during 1970 in- clhded introduction of "HoU Wheels", a new product that is promotionally identi- fied'with a popular toy, and'furtherexpan- sion, of distribution capability in super- markets and discount stores, Distribution of' products of' Reed's Golden Nugget Reed Candy products.