Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — CIBC World Markets 7th Annual Eastern Institutional Investor Conference 2008
26 slides from Quebecor Inc. Class A's conference presentation, September 2008
Slide 1: CIBC World Markets 7th Annual Eastern Institutional Investor Conference
CIBC World Markets 7th Annual Eastern Institutional Investor Conference September 22 - 24, 2008 Montreal, Quebec
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: Management
Management Pierre Karl Péladeau President and Chief Executive Officer Louis Morin Vice President and Chief Financial Officer /3
Slide 4: Corporate Structure
Corporate Structure (C$ in millions) 25% 54.7% 45.3% LTM Revenue : (1) $3,638 Inc. LTM EBITDA : (1) 1,078 51% Economic 100% 100% 99% Voting #1 pay television operator in Largest newspaper Largest French language Book Quebec; #3 cable operator publisher in Quebec and broadcaster and magazine Retailin
Slide 5: Quebecor Inc.'s Value Drivers
Quebecor Inc.’s Value Drivers Quebecor Inc. is well positioned for growth with the totality of its value being derived from Quebecor Media 100% 80% 60% % of QI value 40% QMI’s share of QI’s 20% enterprise value 0% -20% -40% - 01 -0 1 r- 02 -0 2 - 02 -0 2 r- 03 -0 3 - 03 -0 3 r- 04 -0 4 - 04 -0 4 r
Slide 6: Media
laces Media
Slide 7: QMI Diversified Financial Profile
QMI Diversified Financial Profile LTM Revenue (1) LTM EBITDA (1) Newspapers Cable 31.9% 67.3% Cable 46.7% Newspapers 24.0% Leisure and Entertainment 8.5% Leisure and Other & Broadcasting Corporate Broad Entertainment Intersegment 11.9% & Other casting 1.9% 1.0% 0.5% 6.3% Revenues (1) = $3.6 billion
Slide 8: A Quebecor Media Company
A Quebecor Media Company
Slide 9: Leading Canadian Cable Operator
Leading Canadian Cable Operator Cable TV Internet Telephony Wireless - 1,660K basic subs - 989K cable modem - 743K subs as of - 55K lines as of Jun 30 (831K digital subs) as subs as of Jun 30 Jun 30 - Completed Videotron of Jun 30 - 15.8% cable Internet - Achieved penetration bundling offer - Fastes
Slide 10: Strong Financial Performance
Strong Financial Performance Robust new service deployment and focus on customer service have led to strong financial performance Reported Revenue Reported EBITDA $1,800 $750 $726 $1,700 1,700 700 $1,553 $643 1,600 650 1,500 % 600 % 16 22 = = 1,400 GR $1,310 550 GR $513 CA $ millions $ millions CA
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 12 consecutive quarters of positive net adds and improved momentum since the launch of its telephony service Number of Basic Cable Customers 118% Video
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 700% 450% Videotron Videotron Subscribers as percent of base period (%) Subscribers as percent of base period
Slide 13: Strong Residential Telephony Momentum
Strong Residential Telephony Momentum Vidéotron has positioned itself as a major player in Canadian Telecom since its launch of VoIP in 2005 Penetration of basic cable subs Lift Effect 57% lift experienced (more than one new product) in Q2-2008 50% 37% new customers in Q2-2008 45% 45% 42% 39%
Slide 14: Advanced Wireless Services
Advanced Wireless Services
Slide 15: Market Potential
Market Potential Canadian wireless operators exhibit world leading EBITDA margins Canada's penetration of wireless service lags compared to other countries Quebec’s penetration is below the Canadian average Auction Rules favored new entrants: • 40 MHz (on a total of 105 MHz) of spectrum set
Slide 16: Sun Media
a _“SUN MEDIA A Quebecor Media Company
Slide 17: 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 18: Maintained Strong Margins
Maintained Strong Margins Sun Media and Osprey have continued to deliver industry leading margins despite increased costs from new free dailies (at Sun) Synergies and new presses in Mirabel and Islington should provide additional cost savings Sun Media and Osprey EBITDA Margins Peer Comparison (
Slide 19: Strong Growth from Free Dailies
Strong Growth from Free Dailies 24 Hours/heures Toronto, Montréal, Vancouver combined, showed a 5.2% growth in total readership (1) Combined Revenues of Toronto, Montreal and Vancouver Free Dailies 40 LTM Revenues 30 $ millions 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008
Slide 20: TVA
<< ail tva.canoe.ca Une compagnie de Quebecor Media
Slide 21: Leading Market Share
Leading Market Share French-language TV Market Share Financial performance Consistently delivering strong market share Revenues ($ million) 6M-2008 6M-2007 YoY (%) despite increased fragmentation Television 169.9 155.1 9.5% Other 7% Publishing 39.9 38.6 3.4% Distribution 9.4 9.0 4.4% TVA 26% Other &
Slide 22: Financial Highlights
Financial Highlights
Slide 23: Steady Growth of QMI
Steady Growth of QMI Revenues EBITDA $3,750 $3,619 $1,100 $1,075 3,500 $3,366 1,000 $964 % 1 1% 13 3,250 = = GR GR CA 900 CA $3,011 $ millions $ millions 3,000 $803 800 2,750 $2,703 $734 $697 $2,462 700 2,500 $2,298 $612 2,250 600 2,000 500 2003 2004 2005 2006 2007 LTM 2003 2004 2005 2006 2007 LTM /
Slide 24: Cash Flow Generation
Cash Flow Generation Videotron’s strong operating results translated into strong free cash flow QMI’s intense focus on profitable growth, cost containment and opportunistic refinancings has resulted in improvements in EBITDA and Free Cash Flow Press investment projects at Newspapers impacted f
Slide 25: De-Leverage
De-Leverage Solid EBITDA growth and repayment of debt from free cash flow has allowed significant improvement of leverage statistics QMI Consolidated Leverage Ratio 8.0x 6.9x 7.0x 6.0x 5.5x 5.2x 5.0x 4.5x 4.3x 4.1x 3.6x 3.8x 4.0x 3.0x 2.0x 1.0x 0.0x 2001 2002 2003 2004 2005 2006 2007 (1) Q2- (1) 2
Slide 26: CIBC World Markets 7th Annual Eastern Institutional Investor Conference
CIBC World Markets 7th Annual Eastern Institutional Investor Conference September 22 - 24, 2008 Montreal, Quebec
Quebecor — CIBC World Markets 7th Annual Eastern Institutional Investor Conference 2008 on 6ix