Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — BofA Securities Leveraged Finance Conference 2022
26 slides from Quebecor Inc. Class A's conference presentation, Nov 29, 2022
Slide 1: BofA Securities Leveraged Finance Conference
BofA Securities Leveraged Finance Conference T H E B O C A R ATO N R E S O R T B O C A R ATO N , F L O R I D A N OV E M B E R 2 9 , 2 0 2 2 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 the actual results of Quebecor Inc. ("the Corporation", "Quebecor" or “QI”) to differ materially from those set forth
Slide 3: Quebecor Overview
Quebecor Overview QUEBECOR
Slide 4: 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 4
Slide 5: A Fully Integrated Telecom & Media Company
A Fully Integrated Telecom & Media Company (C$ in millions) All numbers are for LTM September 30, 2022 Revenue $4,531 EBITDA $1,950 Class A TSX: QBR.A Class B TSX: QBR.B Market cap $5.9 billion 100% Revenue $4,531 EBITDA $1,951 Media Telecommunications Sports and Entertainment • Conventional & speci
Slide 6: Convergence Strategy
Convergence Strategy Maximizing synergies within portfolio of assets and leveraging content across multiple distribution platforms TELECOMMUNICATIONS SPORTS & ENTERTAINMENT MEDIA • Management of Videotron Centre, an • Television: TVA’s conventional TV market 18,000-seat amphitheater in Quebec city s
Slide 7: Telecommunications Segment
Telecommunications Segment 7
Slide 8: 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 9: Comprehensive Suite of Telecom Services
Comprehensive Suite of Telecom Services Bundling has proven effective to attract new customers, reduce churn and maximize customer lifetime value Mobile Internet Television Telephony OTT Video Lines: 1,697K Subscribers: 1,903K Subscribers: 1,402K Lines: 770K Subscribers: 518K • Launched in 2010 • Do
Slide 10: 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 11: Leading Market Positions
Leading Market Positions From emerging player in mobile services to leadership position in Quebec Mobile Revenues as a Mobile Lines (000) at Period End 1 Percentage of Total Revenues 5G/LTE-A launch LTM Q3 2022 VoLTE launch 29% LTE launch 4G launch 3G+ launch Mobile Others 1 Mobile services and equi
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 22.1% • 70% of customers bundle more than 1 service Churn rates are more than 10x lower for quadruple play customers compared to single product customers 10
Slide 16: Strong Financial Performance
Strong Financial Performance Telecommunications Segment C$ millions CAGR = 3% Revenue LTM -0.3% HISTORICAL REVENUE Contributors: $3,735 $3,711 • RGU and total ARPU growth $3,623 $3,723 $3,711 $3,480 • Steady roll out of new services $3,382 $3,288 • 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: Proposed Combination of Videotron and Freedom
Proposed Combination of Videotron and Freedom 18
Slide 19: Transaction Overview
Transaction Overview On June 17th, Quebecor affirmed its Canadian expansion plan by announcing it had entered into a transaction to purchase Freedom Mobile, creating the 4th largest telecom network in Canada Transaction Details: • ~$2.85 billion total transaction value (~7.1x EV / LTM EBITDA) • Cash
Slide 20: Creation of a Truly Competitive National Carrier
Creation of a Truly Competitive National Carrier Canadian telecom industry set for a shake-up by an innovative competitor with the tools to compete effectively Wireless Subscribers (millions) Scale and • Doubling of Wireless subscribers from 1.7 to 3.4 million As of September 30, 2022 for Videotron
Slide 21: Quebecor's Financial Highlights
Quebecor’s Financial Highlights 21
Slide 22: Strong and Steady Growth
Strong and Steady Growth QI C$ millions CAGR = 2% Revenue LTM +0.3% HISTORICAL REVENUE $4,554 $4,531 Total Revenue Total EBITDA $4,531 $4,294 $4,318 $4,517 $4,181 $4,125 $4,531 $1,950 2017 2018 2019 2020 2021 LTM Million Million Q3-2021 Q3-2022 C$ millions EBITDA LTM -2.5% HISTORICAL EBITDA CAGR = 3
Slide 23: Cash Flow Generation
Cash Flow Generation Focus on growth, cost optimization and opportunistic refinancings led to improved EBITDA and FCF Telecommunications Segment QI C$ millions C$ millions (EBITDA – CAPEX) $1,435 Consolidated Free Cash Flow $1,312 $1,255 $1,114 $1,012 $893 $843 $777 $781 $714 $607 $560 2017 2018 201
Slide 24: 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 1 QI Debt leverage ratio 2.6x Consolidated Net Debt leverage ratio 3.2x Total Debt / EBITDA Total Net Debt / EBITDA 3.2x 3.2x 3.2x 2.9x 2.7x 2.6x 2.7x 2
Slide 25: Upcoming Maturities
Upcoming Maturities •Intend to continue to proactively address maturities through opportunistic refinancing •Spread out maturities with 60% of debt maturing beyond 2026 Ba1 / Moody’s 3 / $1.7B Ba1 Net liquidity 1 4.6 years Ba1 W.A. Maturity Ba1 S&P Global BB+ QMI Consolidated Debt Maturity Profile 1
Slide 26: QUEBECOR
QUEBECOR
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