Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — NBF 11th Annual Quebec Conference 2021
26 slides from Quebecor Inc. Class A's conference presentation, Jun 16, 2021
Slide 1: NBF 11th Annual Quebec Conference
NBF 11th Annual Quebec Conference J U N E 16 , 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 Inc. ("QI") Overview
Quebecor Inc. (“QI”) 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 Revenue $4,353 Class A TSX: QBR.A Class B TSX: QBR.B EBITDA $1,969 Market cap $8.3 billion 100% Revenue $4,353 EBITDA $1,973 Media Telecommunications Sports and Entertainment • Conventional & specialty
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 lifetime value Mobile Internet Television Telephony OTT Video Lines: 1,503K Subscribers: 1,807K Subscribers: 1,459K Lines: 898K Subscribers: 478K • Launched in 2010 • Do
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: 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 1503 LTM Q1 2021 1481 1331 VoLTE launch 1154 26% 1024 LTE launch 894 769 633 4G launch 504 3G+ launch
Slide 13: 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 14: 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 15: 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 16: Strong Financial Performance
Strong Financial Performance Telecommunications Segment C$ millions Revenue LTM Q1 HISTORICAL REVENUE Contributors: CAGR = 3% +4.2% $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 $3,192 • Continued focus on customer service • Operating
Slide 17: Growth Drivers
Growth Drivers Well poised for growth by capitalizing on recent and ongoing initiatives Fizz Mobile and broadband brand Advantageous pricing Helix 100% digital service IPTV and broadband service 1st carrier to allow data gifting or carry over Smarter, enhanced TV experience Scalable digital platform
Slide 18: QI's Financial Highlights
QI’s Financial Highlights 18
Slide 19: Strong and Steady Growth
Strong and Steady Growth QI C$ millions Revenue LTM Q1 HISTORICAL REVENUE CAGR = 1% +0.7% $4,353 $4,294$4,318 Total LTM Revenue Total LTM EBITDA $4,353 $4,322 $4,181 $4,125 $4,057 84% 95% $4,353 $1,969 Million Million 2020 2021 2016 2017 2018 2019 2020 LTM C$ millions EBITDA LTM Q1 HISTORICAL EBITDA
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 QI C$ millions C$ millions (EBITDA – CAPEX) Consolidated Free Cash Flow $1,255 $1,280
Slide 21: Upcoming Maturities
Upcoming Maturities Ba1 / Moody’s 2 / $2.55B Ba1 Net liquidity 1 6.0 years Ba1 W.A. Maturity 1 Ba1S&P Global BB+ QI Consolidated Debt Maturity Profile 3, 4 C$ millions 1,400 Redemption US $800M Videotron 5.000% Senior Notes 2022 New CAD $750M Videotron 3.625% Senior Notes 2028 Redemption CAD $500M Q
Slide 22: Conservative Leverage and Distributions to Shareholders
Conservative Leverage and Distributions to Shareholders Total Net Debt / EBITDA 1 3.2x 3.2x 2.9x 2.6x 2.7x 2.7x 2016 2017 2018 2019 2020 LTM 38% quarterly dividend increase 30-50% dividend target set by the BoD To $0.275 per share from $0.200 per share From annual free cash flow Three dividend incre
Slide 23: Appendix
Appendix 23
Slide 24: 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 QI’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) I
Slide 25: 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 QI shares outstanding assuming QI 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 prevai
Slide 26: QUEBECOR
QUEBECOR