Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — Videotron — Debt Investor Presentation (June 2021)
31 slides from Quebecor Inc. Class A's debt investor presentation, June 2021
Slide 1: Videotron Ltd. / Vidéotron Ltée Investor Education Presentation
Videotron Ltd. / Vidéotron Ltée Investor Education Presentation May / June 2021 Strictly Private 1 & Confidential
Slide 2: Cautionary Statements
Cautionary Statements General This presentation does not constitute or form part of an offer to sell or the solicitation of an offer to purchase any securities in any jurisdiction. No securities commission or similar authority of the United States, Canada or any other jurisdiction has reviewed or in
Slide 3: Table of Contents
Table of Contents Quebecor Media Inc. Overview 05 10 Videotron Operational Overview 22 Financial Review 28 Appendix 3
Slide 4: Presenters
Presenters HUGUES SIMARD Chief Financial Officer, QMI JEAN-FRANÇOIS PARENT Vice President and Treasurer, QMI and Videotron 4
Slide 5: Quebecor Media Inc. Overview
Quebecor Media Inc. Overview 5
Slide 6: 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 $1,973 Media Telecommunications Sports and Entertainment • Conventional & specialty television • Largest cable o
Slide 7: QMI Capitalization
QMI Capitalization ($C in millions) As of Current Capitalization 3/31/21 Maturity Rate as of 3/31/21 Cash & Cash Equivalents $759 Videotron Ltd. (VDO) VDO Revolving Credit Facility (C$1,500mm) -- 7/20/23 BAs + 120 bps VDO 5.000% Senior Notes due 2022 (USD) 1,005 7/15/22 5.000% VDO 5.375% Senior Note
Slide 8: Upcoming Maturities
Upcoming Maturities Ba1 / Moody’s 3 / $2.55B Ba1 Net liquidity 4.7 years Ba1 W.A. Maturity Ba1 BB+ S&P Global QMI Consolidated Debt Maturity Profile 1,2 C$ millions Videotron QMI 1,800 $1,569 1,600 1,400 1,200 $1,005 1,000 $800 $754 $754 800 $650 600 $400 $375 400 200 0 2021 2022 2023 2024 2025 2026
Slide 9: 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 Total Debt / EBITDA 1 Total Net Debt / EBITDA 1 3.2x 3.2x 2.8x 2.6x 2.6x 2.5x 2.3x 2.0x 2.0x 1.7x 1.9x 1.7x 2016 2017 2018 2019 2020 LTM 2016 2017 2
Slide 10: Videotron Operational Overview
Videotron Operational Overview 10
Slide 11: Videotron Key Credit Highlights
Videotron Key Credit Highlights First-class networks #1 Leading market positions Proven track record of Differentiated Offering deploying new services Conservative leverage Experienced management team 11
Slide 12: 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 13: Leading Market Positions
Leading Market Positions Bundling has proven effective to attract new customers, reduce churn and maximize customer lifetime value 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 14: Leading Market Positions
Leading Market Positions 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 Quebec footprint Mar
Slide 15: 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 Q1 2021 1481 1503 26% 1331 VoLTE launch 1154 1024 LTE launch 894 769 633 Mobile Others 4G launch
Slide 16: Leading Market Positions
Leading Market Positions Leveraging relationship with sister companies to integrate original French-language content, promotions, privileges and contests to its offering TELECOMMUNICATIONS SPORTS & ENTERTAINMENT MEDIA • Management of Videotron Centre, an • Television: TVA’s conventional TV market 18
Slide 17: Differentiated Offering
Differentiated 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 bonus dat
Slide 18: Differentiated Offering
Differentiated Offering 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, YouTube, Club illico Kids Zone,
Slide 19: 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 No call center No retail network No truck roll Fizz gives the user full control: Mobile : reinvented the telecommunications market with
Slide 20: Experienced Management Team
Experienced Management Team Management team with long tenure and proven track record of managing growth PIERRE KARL PÉLADEAU HUGUES SIMARD JEAN-FRANCOIS PARENT PIERRE BONIN SYLVAIN BROSSEAU President and CEO CFO, QMI VP and Treasurer, QMI and Videotron Chief Information Officer, Videotron SVP, Opera
Slide 21: Experienced Management Team
Experienced Management Team Management team has positioned the company for future growth 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 platfor
Slide 22: Financial Review
Financial Review > VIDEOTRON
Slide 23: Strong Financial Performance
Strong Financial Performance Videotron C$ millions Revenue LTM Q1 HISTORICAL REVENUE CAGR = 3% Contributors: +4.3% $3,623$3,662 • RGU and total ABPU growth $3,476 $3,662 $3,282 $3,377 • Steady roll out of new services $3,511 $3,185 • Continued focus on customer service • Operating leverage 2020 2021
Slide 24: Videotron – Q1 2021 Highlights
Videotron – Q1 2021 Highlights • Significant increase in mobile telephony and Internet access revenues • Employee costs and purchase of goods and services represented 50.7% of revenues in Q1 2021, compared with 50.2% in Q1 2020 Videotron C$ millions C$ millions Revenue +4.5% EBITDA +3.5% $914 $451 $
Slide 25: 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 Videotron QMI C$ millions C$ millions Consolidated Free Cash Flow Consolidated Free Cash Flow $857 $876 $818 $
Slide 26: Financial Policy
Financial Policy • Strong focus on growth and margin expansion have resulted in significant free cash flow Financial • Durable cash flows driven by robust subscriber growth and low annual churn Foundation • Strategic investments in growth will continue to drive the top line while maintaining stable
Slide 27: Videotron Key Credit Highlights
Videotron Key Credit Highlights First-class networks #1 Leading market positions Proven track record of Differentiated Offering deploying new services Conservative leverage Experienced management team 27
Slide 28: Appendix
Appendix 28
Slide 29: EBITDA Reconciliation
EBITDA Reconciliation Videotron Adj. EBITDA Reconciliation: ($C in millions) 2016 2017 2018 2019 2020 LTM Q1 2021 Net Income $595.6 $939.8 $653.7 $833.2 $728.4 $746.5 Depreciation and amortization 620.6 677.3 691.3 685.6 743.8 739.3 Financial expenses 168.6 156.0 189.2 200.0 208.5 205.9 Loss on valu
Slide 30: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Videotron Free Cash Flow Reconciliation: ($C in millions) 2016 2017 2018 2019 2020 LTM Q1 2021 EBITDA $1,543.1 $1,591.8 $1,714.4 $1,802.8 $1,864.4 $1,879.8 Interest expenses (158.8) (161.7) (178.0) (200.8) (209.2) (212.1) Interest on long-term debt (154.8) (160.1) (179.
Slide 31: Videotron
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