Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — Videotron — Debt Investor Presentation (January 2010)
22 slides from Quebecor Inc. Class A's debt investor presentation, Jan 6, 2010
Slide 1: Videotron Ltd. C$ Senior Notes Offering
Videotron Ltd. / Vidéotron Ltée C$ Senior Notes Offering January 6, 2010 Strictly Private & Confidential
Slide 2: Cautionary Statements
Cautionary Statements General This presentation is strictly confidential and not for distribution outside Canada or to U.S. persons. Participants should read the Videotron Preliminary Confidential Offering Memorandum dated January 4, 2010 (the “Offering Memorandum”). The Offering Memorandum contains
Slide 3: Cautionary Statements: Forward Looking Statements
Cautionary Statements Forward Looking Statements This presentation contains forward-looking information and forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause Videotron and/or Quebecor Media Inc.’s (collectively the “Company”) actual results t
Slide 4: Management
Management Pierre Karl Péladeau President & Chief Executive Officer Quebecor Media Inc Robert Dépatie President & Chief Executive Officer Videotron Ltd Marie-Josée Marsan Vice President, Finance & Chief Financial Officer Videotron Ltd Jean-Francois Pruneau Vice President, Finance Quebecor Media Inc.
Slide 5: Key Videotron Credit Highlights
Key Videotron Credit Highlights Strong Brand Name with Leading Market Position Differentiated Bundled Product Offerings Proven Track Record of Disciplined Growth and Deploying New Services Strong Cash Flow Generation Consistent Improvement of Credit Profile Over the Past Several Years Experienced Ma
Slide 6: Quebecor Media Corporate Family
Quebecor Media Corporate Family (C$ in millions) 54.7% 45.3% LTM Revenue : $3,757 Inc. LTM Operating Income : 1,204 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 bro
Slide 7: QMI: Integrated & Diverse Financial Profile
QMI: Integrated & Diverse Financial Profile LTM Revenue LTM Operating Income News Media News Media Cable 15.4% 28.2% 75.6% Leisure and Cable Entertainment 51.7% 2.4% Broadcasting 5.9% Corporate & Other (2) 0.7% Leisure and Entertainment 8.3% Broadcasting Corporate 11.6% & Other (1) 0.2% Revenues = $
Slide 8: Videotron Operational Review
Videotron Operational Review -8-
Slide 9: Leading Telecommunications Operator
Leading Telecommunications Operator Cable TV Internet Telephony Wireless Telephony 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 penetration
Slide 10: 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 Operating Income $1,942 $2,000 $1,000 $1,804 $910 1,800 900 % $797 1,600 15 $1,553 800 = GR 22 % CA = C$ millions 1,40
Slide 11: Growing Basic Cable Customer Base
Growing Basic Cable Customer Base Videotron exhibits the highest growth in the industry in terms of basic cable customers Videotron has realized 17 consecutive quarters of positive net adds and improved momentum since the launch of its cable telephony service Number of Basic Cable Customers 125% Lau
Slide 12: Digital Services Subscriber Growth
Digital Services Subscriber Growth Videotron is the fastest growing Canadian cable digital TV and cable modem Internet service provider Cable Digital TV Customers Cable Internet Customers 900% 500% Vidéotron Vidéotron Subscribers as percent of base period Subscribers as percent of base period 800% 4
Slide 13: Strong Residential Telephony Momentum
Strong Residential Telephony Momentum Videotron has positioned itself as a major player in Canadian Telecom since launching VoIP in 2005 Penetration of Basic Cable Subs Bundling Effect 60% 56% 72% lift experienced (more than one 54% 52% 50% new product) in Q3-2009 50% 47% 45% 58% new customers in Q3
Slide 14: 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% 42% 14 $75 = 70% GR $70 CA 9 ARPU (C$) 60% $65 -0 05 50% $60 24% 4
Slide 15: Advanced Wireless Services
Advanced Wireless Services 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 Tower sharing and roaming agreements signed with Rogers Tower sharing
Slide 16: Market Potential for AWS
Market Potential for AWS Canada's penetration of wireless service lags relative to other countries Canadian operators’ profitability in top tier Québec’s penetration is below Canadian average -16-
Slide 17: Financial Review
Financial Review ee Me VIDEOTRON Media -17- A Quebecor Media Company
Slide 18: Videotron – Q3 2009 Highlights
Videotron – Q3 2009 Highlights Total net revenue grew 11% and operating income grew 17% for the quarter to $503 million and $236 million, respectively The increase in total net revenue was mainly attributed to a continued increase in basic, digital, internet and telephony subscribers The growth in o
Slide 19: Cash Flow Generation
Cash Flow Generation Videotron’s strong operating results have translated into strong free cash flow QMI’s intense focus on profitable growth, cost containment and opportunistic refinancings has resulted in improvements in free cash flow Press investment projects at Newspapers impacted QMI’s free ca
Slide 20: Leverage Profile
Leverage Profile QMI continues to focus on maintaining conservative leverage levels at its subsidiaries, including Videotron, and optimizing the group’s financial flexibility Videotron Total Debt / Operating Income (1) QMI Total Debt / Operating Income (2) (3) 4.0x 6.0x 5.2x 3.1x 5.0x 4.5x 3.0x 2.8x
Slide 21: Videotron – Financial Performance
Videotron – Financial Performance Fiscal year ended December 31, LTM (C$ in millions) 2005A 2006A 2007A 2008A 30/09/2009 Revenue Cable Television $618.3 $677.3 $735.8 $809.9 $854.9 Internet 270.8 345.1 422.4 499.6 554.1 Cable Telephony 21.1 107.4 195.5 286.1 338.0 Wireless Telephony 0.0 1.2 17.7 31.
Slide 22: Videotron – A Quebecor Media Company
VIDEOTRON A Quebecor Media Company
Videotron — Debt Investor Presentation (January 2010) on 6ix