Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — BMO Capital Markets Marketing Day 2021
27 slides from Quebecor Inc. Class A's conference presentation, May 20, 2021
Slide 1: BMO Capital Markets Marketing Day
BMO Capital Markets M A R K E T I N G DAY M AY 2 0 , 2 0 21 1
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statement This presentation contains forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause Quebecor Inc.’s (“the Company’s”) actual results to differ materially from those set forth in the forward-looking sta
Slide 3: Key Highlights
Key Highlights First-class networks #1 Leading market positions Proven track record of Differentiated Offering deploying new services Growing cash flow generation Experienced management team 3
Slide 4: Quebecor Media Inc. ("QMI") Overview
Quebecor Media Inc. (“QMI”) Overview 4
Slide 5: A Fully Integrated Telecom & Media Company
A Fully Integrated Telecom & Media Company (C$ in millions) All numbers are for LTM March 31, 2021 Class A TSX: QBR.A Class B TSX: QBR.B Market cap $8.3 billion 100% Revenue $4,353 EBITDA $1,973 Media Telecommunications Sports and Entertainment • Conventional & specialty television • Largest cable o
Slide 6: Convergence Strategy
Convergence Strategy Maximizing synergies within our portfolio of assets and leveraging the value of our content across multiple distribution platforms TELECOMMUNICATIONS SPORTS & ENTERTAINMENT MEDIA • Management of Videotron Centre, an • Television: TVA’s conventional TV market 18,000-seat amphithe
Slide 7: Experienced Management Team
Experienced Management Team PIERRE KARL PÉLADEAU HUGUES SIMARD MARC M. TREMBLAY FRANCE LAUZIÈRE MARTIN TREMBLAY PATRICK JUTRAS LYNE ROBITAILLE President and CEO CFO, QMI COO and CLO, QMI President and CEO, TVA Group COO, Quebecor S&E SVP and Chief Advertising SVP, Newspapers, Books Magazines, 22 yea
Slide 8: Telecommunications Segment
Telecommunications Segment 8
Slide 9: First-Class Networks
First-Class Networks Leveraging our first-class broadband and mobile networks to offer a wide range of advanced services Covering 9 of Quebec’s top 10 urban areas LTE NETWORK of the population 1) Montreal in Quebec and the 94% Greater Ottawa Area 2) 3) Quebec Laval 4) Gatineau 5) Longueuil 6) Sherbr
Slide 10: Comprehensive Suite of Telecom Services
Comprehensive Suite of Telecom Services Bundling has proven effective to attract new customers, reduce churn and maximize customer Mobile Internet Television Telephony OTT Video Lines: 1,503K Subscribers: 1,807K Subscribers: 1,459K Lines: 898K Subscribers: 478K • Launched in 2010 • Docsis 3.1 roll o
Slide 11: Leading Market Positions Across Offering
Leading Market Positions Across Offering Strong brand names contributing to deeper market penetration of existing suite of services and successful introduction of new services #1 Fastest growing mobile #1 Internet provider in #1 Television service operator in Quebec Quebec footprint provider in Queb
Slide 12: Differentiated Mobile Offering
Differentiated Mobile Offering Mobile plans offering distinctive features improving value proposition and differentiating offering from competition Exclusive rate for QUB Musique Free Club illico mobile Over 70 million songs Original French-language productions any time, anywhere 100 Gb of annual bo
Slide 13: Enhancing the home entertainment and management experience
Enhancing the home entertainment and management experience Helix’s evolution from IPTV and broadband to a platform offering countless functions in appliance functionality, energy efficiency, home security and entertainment is posing great potential Voice command and search Integration of Netflix
Slide 14: Proven track record of deploying new services
Proven track record of deploying new services New mobile and Internet brand featuring advantageous pricing, a fully digital experience and complete user autonomy Fizz gives the user full control: Mobile : reinvented the telecommunications market with a 100% digital model Internet : get a connect
Slide 15: Bundling Reduces Churn
Bundling Reduces Churn Churn Rates –Residential Clients Lower churn due to strong demand for bundled offerings and superior customer experience 20.5% • 74% of customers bundle more than 1 service Churn rates are more than 10x lower for quadruple play customers compared to single product customers 11
Slide 16: Strong Financial Performance
Strong Financial Performance Telecommunications Segment C$ millions Revenue LTM +4.2% HISTORICAL REVENUE CAGR = 3% Contributors: $3,623 $3,662 • RGU and total ABPU growth $3,480 $3,662 $3,382 • Steady roll out of new services $3,514 $3,288 $3,192 • Continued focus on customer service • Operating lev
Slide 17: Growth Drivers
Growth Drivers Well poised for growth by capitalizing on recent and ongoing initiatives Fizz Mobile and broadband brand Advantageous pricing Helix 100% digital service IPTV and broadband service 1st carrier to allow data gifting or carry over Smarter, enhanced TV experience Scalable digital platform
Slide 18: QMI's Financial Highlights
QMI’s Financial Highlights 18
Slide 19: Strong and Steady Growth
Strong and Steady Growth QMI C$ millions Revenue LTM +0.7% HISTORICAL REVENUE CAGR = 1% $4,353 $4,294$4,318 Total Revenue Total EBITDA $4,353 $4,322 $4,181 $4,125 $4,057 $4,353 $1,973 2016 2017 2018 2019 2020 LTM Million Million Q1-2020 Q1-2021 C$ millions EBITDA LTM +4% HISTORICAL EBITDA CAGR = 4%
Slide 20: Cash Flow Generation
Cash Flow Generation •Intense focus on growth, cost containment and opportunistic refinancings led to improved EBITDA and FCF •Significant positive FCF despite investment in future growth Telecommunications Segment QMI C$ millions C$ millions (EBITDA – CAPEX) Consolidated Free Cash Flow $1,255 $1,28
Slide 21: Conservative Leverage
Conservative Leverage Low leverage despite the 2018 buyback of CDPQ’s remaining stake in QMI for a consideration of $1.54 billion in cash Videotron QMI Debt leverage ratio 2.3x Net Debt leverage ratio 2.6x Total Debt / EBITDA Total Net Debt / EBITDA 3.2x 3.2x 2.8x 2.5x 2.6x 2.6x 2.3x 2.0x 2.0x 1.9x
Slide 22: Upcoming Maturities
Upcoming Maturities •Intend to proactively address the 2022 and 2023 maturities through opportunistic refinancing •Spread out maturities with 63% of debt maturing beyond 2023 Ba1 / Moody’s 3 / $2.55B Ba1 Net liquidity 4.7 years Ba1 W.A. Maturity Ba1 S&P Global BB+ QMI Consolidated Debt Maturity Prof
Slide 23: Distributions to Shareholders
Distributions to Shareholders 30-50% dividend target set by the BoD 38% quarterly dividend increase From annual free cash flows To $0.275 per share from $0.200 per share To be achieved by the end of a four-year period Three dividend increases since the dividend target announcement Reflects strong pr
Slide 24: Appendix
Appendix 24
Slide 25: Convertible Debentures due 2024: Key Terms & Conditions
Convertible Debentures due 2024: Key Terms & Conditions $150M of subordinated convertible debentures issued to CDPQ in connection with QBR’s repurchase of 1,564,696 QMI shares held by CDPQ on June 22, 2018 Key terms & conditions: Principal amount: $150M Tenor: 6 years (maturity June 26, 2024)
Slide 26: Convertible Debentures: Illustrative Impact at Maturity
Convertible Debentures: Illustrative Impact at Maturity • Ownership by debenture holders of 1.8% or less of the total number of QBR shares outstanding assuming QBR share price remains > $32.76 • Cost to settle in cash at maturity of $154.5M if then prevailing market price of a share is equal to prev
Slide 27: QUEBECOR
QUEBECOR