Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — CIBC 9th Annual Eastern Institutional Investor Conference 2010
33 slides from Quebecor Inc. Class A's conference presentation, Sep 22, 2010
Slide 1: CIBC 9th Annual Eastern Institutional Investor Conference
CIBC 9th Annual Eastern Institutional Investor Conference Montreal September 22, 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: Key Highlights
Key Highlights Strong Brand Names with leading Market Positions Differentiated Bundled Product Offerings Proven Track record of Managing Growth Stable and Diversified Cash Flow Generation Experienced Management Team Constant reduction of leverage /3
Slide 4: A Fully Integrated Media & Telecom Company
A Fully Integrated Media & Telecom Company (C$ in millions) 54.7% 45.3% LTM Revenue : $3,873 Inc. LTM EBITDA : 1,350 51.4% 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 br
Slide 5: An Integrated & Diversified Financial Profile
An Integrated & Diversified Financial Profile LTM Revenue LTM EBITDA News Media News Media Cable 15.8% 26.3% 76.5% Cable 54.4% Leisure and Entertainment 1.8% Broadcasting 5.6% Corporate & Other (2) Leisure and 0.3% Entertainment 7.8% Broadcasting Corporate 11.3% & Other (1) 0.2% Revenues = $3.87 bil
Slide 6: Extensive Media Coverage
Extensive Media Coverage Ability to provide competitive offers to advertisers by leveraging our multiple media platforms Media Platforms Other Media Company TV Radio Magazines Newspapers Internet Out of home Distribution Content Printing Quebecor Media CTVGlobeMedia Astral Transcontinental Rogers To
Slide 7: Videotron
ea 8 VIDEOTRON A Quebecor Media Company
Slide 8: Leading Canadian Telecommunications Operator
Leading Canadian Telecommunications Operator Cable TV Internet Internet Telephony Wireless Telephony Wireless - 1,781K basic subs - 1,202K cable modem - 1,065K subs as of - 87K lines as of June (1,142K digital subs) subs as of June 30, 2010 June 30, 2010 30, 2010 as of June 30, 2010 - Penetration of
Slide 9: 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 $2,200 $2,108 $1,100 $1,032 $2,001 $973 2,000 1,000 % $1,804 % 15 900 1,800 = 21 R = $798 AG $1,553 800 GR CA C
Slide 10: Growing Basic Cable Customer Base
Growing Basic Cable Customer Base Vidéotron exhibits the highest growth in the industry in terms of basic cable customers Improved momentum since the launch of its telephony service has contributed to widen the gap over its peers Number of Basic Cable Customers 127% 125% Videotron Launch of Telephon
Slide 11: Digital Services Subscriber Growth
Digital Services Subscriber Growth Vidéotron is the fastest growing Canadian cable digital TV and cable modem Internet service provider Cable Digital TV Customers Cable Internet Customers 1,000% 500% Vidéotron Vidéotron Subscribers as percent of base period Subscribers as percent of base period 900%
Slide 12: Strong Residential Telephony Momentum
Strong Residential Telephony Momentum Vidéotron has positioned itself as a major player in Canadian Telecom since launching VoIP in 2005 Robust Sub Growth Bundling Effect 1,200 68% lift experienced (more than one new product) in Q2-2010 Telephony Subscribers in 000s k 1,000 62 53% new customers in Q
Slide 13: 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% $100 3% $95 Launch of 90% % $90 Telephony 13 80% $85 = 45% GR 70% $80 CA 0 2/1 $75 ARPU (C$) 60% $70 Q - 50% $6
Slide 14: Facility-based wireless service launch
Facility-based wireless service launch Acquired, for a cost of $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 Fastest 3.75G / HSPA+ network in Québec Download speed of
Slide 15: Compelling Wireless Value Proposition
Compelling Wireless Value Proposition Convergence of content and platforms Access to illico mobile, e.g. 1,000 hours of free programming, 2,000 titles and series, 28 channels (9 live-streaming) and 45 music channels Four families of packages, with attractive bundle discounts 1. Zones : unlimited cal
Slide 16: Network Coverage
Network Coverage Service plans currently available in the greater Montréal and Quebec City areas, and in some municipalities along the H20 and H40 corridors Network Coverage as of Launch 60% of Quebec population and 72% of cable homes passed Roaming agreements secured in all the TOP 20 countries (in
Slide 17: Market Potential for AWS
Market Potential for AWS Canada's penetration of wireless service lags relative to other countries Canadian operators’ profitability remains in top tier Québec’s penetration is below Canadian average Source: The Netsize Guide 2010 (Informa Telecoms & Media) /17
Slide 18: Sun Media
| _“SUN MEDIA A Quebecor Media Company canoe firs
Slide 19: 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 newspaper pu
Slide 20: Industry Leading Margins
Industry Leading Margins Effective cost containment initiatives have led to industry leading margins Realized savings of $25 M in the quarter due to productivity improvement initiatives, for a total of $49 M for the first 6 months of the year. Additional initiatives underway will further benefit our
Slide 21: Quebecor Media News Agency
Quebecor Media News Agency In-house news agency, leveraging the news creation expertise of QMI’s multiplatform properties Largest multimedia provider of news, entertainment, editorial and sports content in Canada (print, online and on screen) Will allow effective sharing of content amongst Quebecor
Slide 22: Quebecor Media Network
Quebecor Media Network Inserts distribution and printing entity created, pooling capabilities of distribution subsidiaries and state-of-the-art printing plants Extensive network of weeklies and dailies covering most major Canadian markets A one-stop shop solution for advertisers The new unit will se
Slide 23: TVA
ee = Calli tva.canoe.ca compagnie de Quebecor Media
Slide 24: Leading Market Share
Leading Market Share French-language TV Market Share Financial performance Consistently delivering strong market share Q2-2010 results ahead despite high viewership despite increased fragmentation ratings of the Montreal Canadiens Hockey Club Other 7.4% Revenues (C$ million) Q2-2010 Q1-2009 YoY (%)
Slide 25: Other Businesses
Other Businesses
Slide 26: Other Businesses
Other Businesses Divisions / Companies Key YTD Stats (C$ M) Commentary Leisure & Entertainment Revenue: $127.3 YTD revenues decrease by $5M (4%) EBITDA: $4.1 Decrease in the revenues of Archambault group in Q2- 2010 due to drop in retail and production sales. Decrease in production sales due to the
Slide 27: QMI's Financial Highlights
nn QMI’s Financial Highlights
Slide 28: Exhibiting Strong and Steady Growth
Exhibiting Strong and Steady Growth Revenue EBITDA $1,350 $3,873 $1,400 $4,000 $1,285 $3,781 $3,730 1,300 3,750 1,200 8% % $1,120 3,500 = $3,366 13 R 1,100 = G R A G CA C$ millions C C$ millions 3,250 1,000 $963 $2,999 3,000 900 $797 $2,695 800 $729 2,750 $697 $2,462 700 2,500 $612 $2,298 600 2,250
Slide 29: Videotron - High Growth Profile
Videotron - High Growth Profile Videotron’s high growth profile remains a significant value driver for QMI Adjusted LTM EBITDA growth 370% 350% Videotron 330% Rogers 310% Shaw Cogeco EBITDA as percent of base period 290% 270% 250% 230% 210% 190% 170% 150% 130% 110% 90% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 30: 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 $340 in improvement in EBITDA and Free 300 $287 $ millions $257 Cash Flow 250 $192 200 $146 Positive free cash flow despite g
Slide 31: 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 2.9x 3.0x 2.0x 1.0x 0.0x (1) 2001 2002
Slide 32: 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 $913 C$ millions $802 800 600 $505 400 $300 $217 200 $39 $31 $69 $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 excha
Slide 33: GUEBESOR-
— GUEBESOR-
Quebecor — CIBC 9th Annual Eastern Institutional Investor Conference 2010 on 6ix