Corus Entertainment Inc. Class B · TSX:CORS

Corus Entertainment Inc. Class B — Investor Day (September 2009)

77 slides from Corus Entertainment Inc. Class B's investor day presentation, Sep 29, 2009

  1. Slide 1: Investor Day: Seizing Opportunity

    Investor Day Seizing Opportunity September 29, 2009

  2. Slide 2: Safe Harbour Disclosure

    Safe Harbour Disclosure To the extent any statements made in this presentation contain information that is not historical; these statements are forward-looking statements within the meaning of applicable securities laws. These forward- looking statements related to, among other things, our objective

  3. Slide 3: Corus Television

    Investor Day Corus Television September 29, 2009

  4. Slide 4: Seizing Opportunity

    Seizing Opportunity Successful year in TV! 1. Strategic initiatives 2. Growth 3. Cost control

  5. Slide 5: Strategic Initiatives

    Strategic Initiatives  Strengthened competitive position with Women  Successful integration of Nelvana with TV  Significant co-view revenues on YTV

  6. Slide 6: Growth

    Growth  HBO and Movie Central  New networks – CosmoTV, VIVA, TELETOON Retro  Kids merchandise - Bakugan

  7. Slide 7: Cost Control

    Cost Control Extraordinary focus on efficiency  Process and system redesign  General restraint  Program acquisition synergies

  8. Slide 8: Positive Signs

    Positive Signs  Customer confidence is building  Movie Central subscribers  Revenue diversity at Corus Kids  Portable People Meters:  Specialty viewing from 53% to 60%  Corus Women +28%  Corus Kids +55% Source: BBM Canada 8/31/09 – 9/13/09

  9. Slide 9: Corus Kids

    Investor Day Corus Kids September 29, 2009

  10. Slide 10: Agenda

    Agenda  Corus Kids networks – growing airtime revenues  Corus Kids portfolio – seizing opportunities

  11. Slide 11: PPM Better Captures Kids Viewing Behaviour

    PPM Better Captures Kids Viewing Behaviour… … and Corus Kids sees early benefit in the Kids 2-11 demo AMAs (000s) Source: BBM– PPM Currency Data – ‘09/10 Wks 1-2 (PPM) compared to ‘08/09 Wks 1-2 (Mark II) – Average Minute Audience (000s)

  12. Slide 12: Corus Kids Networks Account for All Purchasable Ratings

    Corus Kids Networks Account for All Purchasable Ratings Share of Purchasable Kids 2-11 Ratings – Total Canada Winter/Spring 2009 FOX CTV 0.1% 0.1% YTV 53% TELETOON 47% Source: BBM Nielsen Media Research – Total Canada: Winter/Spring 2009 (January 5, 2009 – May 24, 2009 – 20 weeks). Share for each br

  13. Slide 13: PPM Reveals Co-Viewing Significantly Larger

    PPM Reveals Co-Viewing to be Significantly Larger than Previously Reported ... more in line with our own market research into parental viewing behaviour AMAs (000s) Source: BBM– PPM Currency Data – ‘09/10 Wks 1-2 (PPM) compared to ‘08/09 Wks 1-2 (Mark II) – Average Minute Audience (000s)

  14. Slide 14: TV is Second to Eating Dinner as Common Family Activity

    TV is Second to Eating Dinner as the Most Common Daily Family Activity “How often does your family do the following things on a daily basis?” 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Eat dinner as a Watch TV Cook a meal Play a video Go to the park Play a board Rent a movie Go away for family together

  15. Slide 15: Recall DOUBLED When Co-Viewing

    Recall DOUBLED When Co-Viewing Source: YTV Observer Research Report, Summer 2009; Decode Research

  16. Slide 16: Implications for Growing Airtime Revenues

    Implications for Growing Airtime Revenues  Kids market  Food advertising remains under pressure  Toy and Entertainment categories are growing  Family Co-View market  Aggressively telling our story to agencies and clients  New category development  Expect modest growth in airtime revenues on C

  17. Slide 17: Introducing Nickelodeon

    Introducing Nickelodeon  America’s #1 kids network is coming to Canada  Launching Monday, November 2, 2009 to 2.4 million households  Launching Nickelodeon enables us to offer exclusive programming on Nick, allowing YTV to expand its family offering while keeping the Nick ratings’ drivers

  18. Slide 18: 4 p.m. to 6 p.m.

    4p.m.to6 p.m. | nickelodeon. The Pen GUINS

  19. Slide 19: 8 p.m. to 10 p.m.

    8 p.m. to 10 p.m. “We are FAMILY programming” “We are KIDS programming”

  20. Slide 20: Preschool Programming Ages 2-5 and 4-7

    Ages 2-5 Ages 4-7 “We are PRESCHOOL programming” “You’re a BIG KID now”

  21. Slide 21: The Corus Kids Portfolio of the Future

    The Corus Kids Portfolio of the Future Target: Kids 2-5 Trusted and Safe Target: Families Target: Kids 6-11 Variety of Comedy 24/7! Family-Friendly Programming Target: Kids of all Ages

  22. Slide 22: Thinking Beyond Our Networks For Growth

    Thinking Beyond Our Networks For Growth Corus Kids has successfully diversified our revenue base F’08 F’09

  23. Slide 23: Bakugan is a Hit!

    Bakugan is a Hit!  Toy and Property of the Year!  Second season (New Vestroia) launched Spring 2009 in North America  First season (Bakugan Battle Brawlers) now launching in over 40 international markets  Third season (Gundalian Invaders) set for 2010 and MMOG greenlit

  24. Slide 24: Growth Opportunities – The Backyardigans

    Growth Opportunities – The Backyardigans  The Backyardigans airs in 44 countries worldwide  #1 preschool show in Canada airing on Treehouse  #2 preschool show in U.S. on Nick Jr.*  175% growth in merchandise licensing revenues *Ratings for Q2, 2009

  25. Slide 25: BEYBLADE – Let it Rip Again!

    BEYBLADE – Let it Rip Again!  BEYBLADE: Metal Fusion  Nelvana/Hasbro partnership  Fall 2010 launch

  26. Slide 26: Babar – Long Live the King!

    Babar – Long Live the King!  26 CGI episodes of Babar and the Adventures of Badou in production  Featured property at MIPCOM, Toy Fair and Licensing Expo  Very active discussions regarding feature film and a Broadway stage show

  27. Slide 27: qubo

    qubo  Nelvana’s programming constitutes a majority of the schedule  qubo is available in more than 40 million homes

  28. Slide 28: KidsCo

    KidsCo  Western Europe was launched this year in addition to the Asia Pacific, Central and Eastern European feeds  58 countries  15 languages  8 million paying subscribers

  29. Slide 29: Summary

    Summary  Corus Kids portfolio of businesses are positioned for growth  Growth in kids advertising sales  Kid audiences grow  Family co-view  Launching Nickelodeon  Diversity in revenue base creates option value  Bakugan  Beyblade launch  Babar  International channels

  30. Slide 30: Pay and Specialty Television

    Investor Day Pay and Specialty Television September 29, 2009

  31. Slide 31: Opportunities for Growth in Pay TV

    Opportunities for Growth in Pay TV

  32. Slide 32: Pay TV Performance is Strong

    Pay TV Performance is Strong + 7% 1000 953 Subscribers (000s) 950 883 891 900 850 821 800 750 2006 2007 2008 2009 (E)

  33. Slide 33: Pay TV is an Excellent Consumer Value Proposition

    Pay TV is an Excellent Consumer Value Proposition  HBO has been a hit – Exclusivity  Free On Demand now part of Movie Central offering – Retention  Commercial-free movies – Quality  HD adoption and digital roll-out continues – Commitment

  34. Slide 34: Outstanding 2010 Programming

    Outstanding 2010 Programming Exclusive Series

  35. Slide 35: World War II drama miniseries from HBO

     World War II drama miniseries from HBO  Produced by Steven Spielberg and Tom Hanks  Based on the memoirs of two U.S. marines  U.S. Marine Corps in Pacific Theater

  36. Slide 36: Upside Remains for Movie Central

    Upside Remains for Movie Central as Digital and HD Growth Continues 3.0 Western Digital Subscribers 2.5 2.0 (millions) 1.5 1.0 0.5 0.0 Digital Subs 2007 2008 2009 HD Subs (est) Source: Corus Estimate

  37. Slide 37: F'10 Opportunities to Grow Subscribers

    F’10 Opportunities to Grow Subscribers Marketing Advertising Free Preview Direct Mail Advertising & DM Summer Retention: Premieres Awareness Outdoor, Radio, Print, TV Boxing Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Q1 Q2 Q3 Q4

  38. Slide 38: Summary

    Summary  HBO has driven interest in Pay TV  New and returning series are outstanding  Marketing initiatives will drive uptake  On Demand improves subscriber retention

  39. Slide 39: Women's Specialty Positioned for Growth

    Women’s Specialty Positioned for Growth

  40. Slide 40: Corus Has a Strong Women's Portfolio

    Corus Has a Strong Women’s Portfolio W EXPERTS 18-34 25-54 35-64

  41. Slide 41: W Holds a Unique Position in Women's TV

    W Holds a Unique Position in Women’s TV  First run movies  Experts at marketing to women CANADA  Integrated sales 41

  42. Slide 42: Growth Opportunities

    Growth Opportunities Build the Women’s demo by adding new channels and repositioning existing brands + + Grow overall share of Women 25-54 audience

  43. Slide 43: Our New Channels Are Making Progress

    Our New Channels Are Making Progress Cosmo Ad Revenue 2.5 Millions (CDN $) 2.0 1.5 1.0 0.5 0.0 F08 F09  3.9 million households  Ranks #7 among Women 18-34, Digital*  Lipstick Jungle, Men in Trees, The Fashion Show  New website *Source: BBM Nielsen Media Research – 51 weeks August, 2008

  44. Slide 44: New Channels Are Making Progress cont'd.

    New Channels Are Making Progress cont’d. Viva Ad Revenue 2.5 Millions (CDN $) 2.0 1.5 1.0 0.5 0.0 F08 F09  5.7 million households  Tripled audience share Women 25-54*  Cold Case, The Closer, Movie events  Marketing push *Source: BBM Nielsen Media Research

  45. Slide 45: W Movies

    W Movies  Launch in 2010  Female-targeted theatrical and made-for-TV movies  Women love movies  4 of the top 5 digital-ranked networks for women include movie blocks  Movies have been the #1 driver of audience growth on W  W Network brand is associated with ‘Great Movies for Women’

  46. Slide 46: Summary

    Summary  Upside potential for CosmoTV and VIVA  DUSK will contribute to growth in Women’s demo  W has programming flexibility and marketing and sales expertise  W Movies channel will provide further growth opportunities

  47. Slide 47: Government and Regulatory

    Investor Day Government and Regulatory September 29, 2009

  48. Slide 48: Key Issues

    Key Issues  TV Licencing and Policy  Renewal of licences  Changing our COL’s  Changes in overall policy re: CPE and production  Securing new licences  Fee for carriage  Copyright Reform  Ephemeral exemption  Greater certainty in copyright usage and the tariff process  Corus Big Six

  49. Slide 49: Tentative Schedule – TV Policy and Renewals

    Tentative Schedule – TV Policy and Renewals Timing Event November 16, 2009 Policy Hearing December 2009 FFC Hearing February - March 2010 with Section 15 Report Policy Release September 2010 Renewal Hearing December 2010 - January 2011 Decision Release September 2011 Digital Migration Likely will se

  50. Slide 50: Technology Update

    Investor Day Technology Update September 29, 2009

  51. Slide 51: Executive Summary

    Executive Summary  Corus Quay prepares for occupancy in Spring 2010  Workflow and process re-engineering will transform Corus’ broadcast, content and corporate operations  Corus is well-positioned to participate in the evolving digital marketplace Corus Quay Data Centre Rooftop Screening Room

  52. Slide 52: Why is Technology Important to Corus?

    Why is Technology Important to Corus?  Technology is a key competitive advantage for Corus  Technology and product innovation continues to drive consumer behaviour  Ownership and control of content is critical in a rapidly evolving digital landscape

  53. Slide 53: Corus Quay

    Corus Quay  Anchor location in Toronto’s East Bayfront revitalization  Consolidated Corus operations in Toronto  A flexible technology platform to support current and future business, driving innovation and transformation  An effective, collaborative working environment aligned with our Core Val

  54. Slide 54: Construction Update

    Construction Update  Base building complete by the end of the year; tenant fit-out ongoing  Corus access to data centre(s) in November  Major vendors selected for interior details

  55. Slide 55: A Culture of Technical Innovation and Business Transformation

    A Culture of Technical Innovation and Business Transformation  Ongoing process review and re-engineering across all Corus operations  Central management of digital assets maximizes value and opportunity  Enhanced management, integration and deployment of corporate business data

  56. Slide 56: The Time is Right for Investment

    The Time is Right for Investment  Maturing IT infrastructure allows for integrated broadcast systems  Technology vendors are anxious to partner on large, innovative projects  Highly competitive construction market results in excellent trade pricing  Wide range of vendor and independent financing

  57. Slide 57: A Focus on Broadcast Technology

    A Focus on Broadcast Technology  Siemens Canada/Siemens UK selected as deployment and integration partner for Corus Quay broadcast operations  Detailed design and implementation plan in progress  Key areas of focus for the Target Operating Model:  Content centric  File-based  Automation and fe

  58. Slide 58: Corus is Poised for Growth

    Corus is Poised for Growth  Corus Quay consolidates operations with state-of-the-art technical infrastructure  Significant capacity for expansion in linear and non-linear operations to support organic growth and acquisitions  A showcase facility and working environment to attract and retain the b

  59. Slide 59: Summary and Conclusion

    Summary and Conclusion  Technology is a key competitive advantage for Corus  Corus Quay will offer new capacity, new capability and is a platform for growth and expansion  Process transformation will improve margins, open new markets and enable Corus to participate in transaction-based revenue st

  60. Slide 60: Session Break

    Investor Day Session Break September 29, 2009

  61. Slide 61: Radio Panel

    Investor Day Radio Panel September 29, 2009

  62. Slide 62: Financial Overview

    Investor Day Financial Overview September 29, 2009

  63. Slide 63: Safe Harbour Disclosure

    Safe Harbour Disclosure To the extent any statements made in this presentation contain information that is not historical; these statements are forward-looking statements within the meaning of applicable securities laws. These forward- looking statements related to, among other things, our objective

  64. Slide 64: Financial Priorities Recap – Fiscal 2009

    Financial Priorities Recap – Fiscal 2009 Maintain Focus on Shareholder Value Strong Balance Sheet Intense Focus on Sustain Dividend Total Shareholder Return Repurchase Shares

  65. Slide 65: Financial Priorities – Fiscal 2009 Progress Report

    Financial Priorities – Fiscal 2009 Progress Report  Dividend maintained at $0.60 per share  Dividend Yield of 4.0% at year end F’09  Launched Dividend Reinvestment Plan  Will offer 2% discount to participants commencing Nov. 1, 2009  NCIB discontinued in Q2’09 to save cash for acquisitions  De

  66. Slide 66: Cost Containment Measures – Fiscal 2009

    Cost Containment Measures – Fiscal 2009  Reduced overall Radio costs to 2006 levels  Reorganized Montreal Radio operations to drive cost efficiencies  Implemented hiring freeze (captured approximately 100 positions to date)  Reduced G&A expense  Cuts to travel, conferences, entertainment and ot

  67. Slide 67: Investing in Programming and Controlling G&A Expense

    Investing in Programming and Controlling G&A Expense Television Program Rights Amortization and Radio Programming Salaries & Benefits and G&A Expense Growth Other G&A Expense Growth (2007 to 2009) (2007 to 2009) $000s $000s 180,000 CAGR 160,000 CAGR 160,000 7% 140,000 -2% 140,000 120,000 120,000 1%

  68. Slide 68: Investing in Future Growth

    Investing in Future Growth  Launched HBO Canada in October 2008  Key contributor to restoration of Pay TV growth  Pay subs increased by 7% in F’09  VIVA to drive further growth in Women’s portfolio  Rebranded from CLT and launched in November 2008 to target Boomer Women 35-64  Complements W Ne

  69. Slide 69: Capital Structure

    Capital Structure  Current leverage 2.6x  Comfort zone 3.0x - 3.5x  Maximum leverage for acquisition 4.0x Maintain Focus on Delivering Long Term Shareholder Value

  70. Slide 70: Net Debt

    Net Debt Sept. 1, 1999 – Aug. 31, 2009 800 700 Million (CDN $) 600 500 400 300 200 100 0 Fiscal Year

  71. Slide 71: Net Debt to EBITDA

    Net Debt to EBITDA Corus has a Strong Balance Sheet Sept. 1, 1999 – Aug. 31, 2009

  72. Slide 72: Operating and Free Cash Flow (2005 to 2009E)

    Operating and Free Cash Flow (2005 to 2009E) Million (CDN $) Fiscal Year * Free cash flow normalized for business combinations

  73. Slide 73: Stock Performance

    Stock Performance CAGR Company Sept. 1, 2003 Aug. 31, 2009 Sept.’03 to Aug.’09 Corus 11.95 14.97 4.6% Canadian Peers (CDN $) Astral 25.14 31.65 4.7% CanWest 10.67 0.14 -58.0% Torstar 26.35 6.41 -24.6% U.S. Comparables (US $) EMMIS 21.42 0.66 -50.1% Entercom 50.33 4.89 -37.3% Time Warner 36.25 27.91

  74. Slide 74: Real Estate

    Real Estate  Toronto Facilities Consolidation at Corus Quay  Spring 2010 occupancy  Financial terms below market rates  New state-of-the-art facility will drive innovation and productivity  Capital Investment Fiscal Year

  75. Slide 75: Financial Priorities – Fiscal 2010

    Financial Priorities – Fiscal 2010  Maintain Strong Balance Sheet  Renew Bank Credit Lines for Improved Flexibility  Maintain Firm Commitment to Dividends

  76. Slide 76: Financial Guidance – Fiscal 2010

    Financial Guidance – Fiscal 2010 Consolidated EBITDA $255 to $270 million Free Cash Flow $10 to $20 million

  77. Slide 77: Investor Day Q&A Session

    Investor Day Q&A Session September 29, 2009

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