Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — Goldman Sachs TMT Leveraged Finance Conference 2010
21 slides from Quebecor Inc. Class A's conference presentation, Apr 14, 2010
Slide 1: Goldman Sachs TMT Leveraged Finance Conference
Goldman Sachs TMT Leveraged Finance Conference New York – April 14, 2010
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the forward-looking statements. These risks include changes in c
Slide 3: A Fully Integrated Media & Telecom Company
A Fully Integrated Media & Telecom Company (C$ in millions) 54.7% 45.3% 2009 Revenue : $3,781 Inc. 2009 EBITDA : 1,285 51.5% Economic 100% 100% 100% 99.9% Voting #1 pay television operator in Largest newspaper Largest French language Book Publishing Quebec; #3 cable operator publisher in Quebec and
Slide 4: Videotron
ea 8 VIDEOTRON A Quebecor Media Company
Slide 5: Leading Canadian Telecommunications Operator
Leading Canadian Telecommunications Operator Cable TV Internet Telephony Telephony Wireless Wireless - 1,777K basic subs - 1,171K cable modem - 1,014K subs as of - 83K lines as of (1,084K digital subs) subs as of December December 31, 2009 December 31, 2009 as of December 31, 31, 2009 - Achieved pen
Slide 6: Strong Financial Performance
Strong Financial Performance Robust new service deployment, focus on customer service and strong operating leverage have led to solid financial performance Reported Revenue Reported EBITDA $2,001 $972 $2,000 $1,000 $1,804 1,800 900 % $797 1,600 15 $1,553 800 = R % AG 22 C = C$ millions C$ millions
Slide 7: Growing Basic Cable Customer Base
Growing Basic Cable Customer Base Vidéotron exhibits the highest growth in the industry in terms of basic cable customers Vidéotron has realized 18 consecutive quarters of positive net adds and improved momentum since the launch of its telephony service Number of Basic Cable Customers 125% Video
Slide 8: Bundling has Increased ARPU
Bundling has Increased ARPU Strong demand for bundled offerings and a superior customer experience resulted in improved ARPU Total Subscriber Base – Residential Clients Net Total ARPU 100% $90 3% $85 Launch of 90% $80 Telephony % 80% 43% 14 $75 = 70% GR $70 CA 09 ARPU (C$) 60% $65 - 05 50% $60 24%
Slide 9: Advanced Wireless Services
nn Advanced Wireless Services
Slide 10: Advanced Wireless Services
Advanced Wireless Services Acquired, for a cost of C$555 million, the entire 40 MHz of spectrum set aside for new entrants in Québec 20 MHz in Eastern Ontario, 10 MHz in Toronto and 50 MHz in some regions in the province of Québec Tower sharing and roaming agreements signed with Rogers Tower
Slide 11: Sun Media
| _-SUN MEDIA A Quebecor Media Company |canoe| inc.
Slide 12: Nationwide Presence and Strategically Clustered
Nationwide Presence and Strategically Clustered Nationwide presence covering key markets offers national advertising and distribution solutions Clustering provides significant cost efficiencies and opportunities for bundled advertising packages Acquisition of Osprey Media creates the #1 newspa
Slide 13: Industry Leading Margins
Industry Leading Margins Effective cost containment initiatives have led to industry leading margins Realized savings of C$66M (2009) due to productivity improvement initiatives Additional initiatives underway, including the integration of Canoe, will further benefit our News Media segment Pee
Slide 14: Update on Other Businesses
a Update on Other Businesses
Slide 15: TVA - Leading Market Share
TVA - Leading Market Share French-language TV Market Share Financial performance Consistently delivering strong market share despite increased fragmentation Revenues (C$ million) 12M-2009 12M-2008 YoY (%) Others 8% Television 357.0 342.9 4.1% Publishing 74.0 78.6 (5.9%) TVA 28% Distribution 12.4 19.
Slide 16: Financial Highlights
Financial Highlights
Slide 17: Exhibiting Strong and Steady Growth
Exhibiting Strong and Steady Growth Revenue EBITDA $1,285 $4 000 $3 781 1,300 $3 730 $1,200 3 750 $1,120 1,100 % 3 500 $3 366 13 9% = = 1,000 R $964 R G C$ millions 3 250 G CA C$ millions A C $3 011 900 3 000 $803 800 $734 $2 703 2 750 $697 700 $2 462 $612 2 500 $2 298 600 2 250 500 2 000 400 2003 2
Slide 18: Cash Flow Generation
Cash Flow Generation QMI Consolidated Free Cash Flow QMI’s intense focus on profitable 450 $410 growth, cost containment and 400 opportunistic refinancings have resulted $350 $291 in improvement in EBITDA and Free 300 $ millions $255 Cash Flow 250 $192 200 $146 $148 Press investment projects at
Slide 19: Constant Reduction of Leverage
Constant Reduction of Leverage Solid EBITDA growth and repayment of debt from free cash flow have allowed significant improvement of leverage statistics QMI’s Consolidated Leverage Ratio 8.0x 6.9x 7.0x 6.0x 5.5x 5.2x 5.0x 4.5x 4.3x 4.1x 3.8x 3.8x 4.0x 3.4x 3.1x 3.0x 2.0x 1.0x 0.0x 2001 2002 2003 2
Slide 20: No Significant Maturities Over the Next Few Years
No significant Maturities Over the Next Few Years QMI’s Consolidated Debt $1,400 $1,308 1,200 1,000 $838 C$ millions $802 800 600 $505 400 $300 $217 200 $145 $68 $52 $0 $0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Notes: Excluding debt of 51% owned TVA Group US$ debt converted at exch
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