Corus Entertainment Inc. Class B · TSX:CORS
Corus Entertainment Inc. Class B — Investor Day (September 2010)
95 slides from Corus Entertainment Inc. Class B's investor day presentation, Sep 29, 2010
Slide 1: Investor Day: Built for Growth
INVESTOR DAY Built for Growth September 29, 2010
Slide 2: Safe Harbour Disclosure
S f Harbour Safe H b Di l 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,
Slide 3: Technology Update
TECHNOLOGY UPDATE Built for Growth Investor Day 2010
Slide 4: Executive Summary
E Executive ti Summary S Corus Quay – Spring 2010 Toronto’s smartest building A dynamic workplace built for sustained growth Built to serve our customers and partners Revolutionary broadcast infrastructure supporting traditional and new media A cultural focus on measurement, reengineerin
Slide 5: Presenting Corus Quay
P Presenting ti Corus C Q Quay Occupancy in May 2010 Radio on air September 2010 – Television to follow East Bayfront district continues to develop with new tenants, parks and amenities
Slide 6: Toronto's Smartest Building
T Toronto’s t ’ Smartest S t t Building B ildi Targeting LEED® Gold Flexible, reliable, best in class infrastructure Technology to support our work and our staff Central waterfront location with good transit access
Slide 7: A Workplace for Teamwork and Innovation
AW Workplace k l for f Teamwork T k and d Innovation I ti Open working environment encourages circulation, communication, collaboration More than 200 meeting spaces, from formal to casual, spread th throughout h t th the b building ildi Technology to support teamwork and continuous learning
Slide 8: Flexible, IT Based Radio and Television Broadcast Infrastructure
Flexible, IT Based Radio and Television B Broadcast d t Infrastructure I f t t Successful integration and cutover in September to Wheatstone- based IP systems for radio broadcast Broadcast cutover in October to IT, file-based automation and playout Siemens Canada/Siemens UK working with intern
Slide 9: Technology Focused on our Customers
T h l Technology Focused F d on our Customers C t For Cable and Satellite distribution partners … More HD signals, more non-linear assets Efficient formatting, packaging and delivery Strong brand synergy driving customer value For Television viewers … Greater value in HD and non-linear p
Slide 10: Technology Focused on Growth
T h l Technology Focused F d on Growth G th Scalable infrastructure Available capacity to triple our broadcast output New channels at low capital cost; all channels now HD capable with integrated non-linear capability Digital, file-based infrastructure optimizes margin on non-linear activiti
Slide 11: A Cultural Focus on Measurement, Reengineering and Business Transformation
A Cultural Focus on Measurement, R Reengineering i i and d Business B i Transformation T f ti Shared Services approach to infrastructure and operations Scalable S l bl labour l b t match to t h scalable l bl ttechnology h l Focus on broadcast operations, television production (live action and
Slide 12: What's Next? Technology Beyond Corus Quay
What’s Next? Technology B Beyondd Corus C Q Quay Construction is over, but our business and market transformation continues Technology is driving new customer and consumer behaviours Data mobility shows a steeper growth curve than the internet Smartphone and tablet applications offer a real
Slide 13: Corus Quay is Built for New Media
Corus Quay is Built for N New M Media di An infrastructure built around digital files, not video signals Best in class networking and storage Highest quality asset creation, acquisition and storage Integrated asset management, desktop browse and edit capabilities Rights management for broa
Slide 14: New Media is a Growing Part of our Core Broadcast Activities
New Media is a Growing Part of our Core B Broadcast d t Activities A ti iti Corus has a strong internet presence across brands and divisions Television and Radio sites each drive more than 2M unique visitors per month Websites are powerful marketing tools tools, providing support for our fans
Slide 15: New Media is an Opportunity to Explore New Approaches and Markets
New Media is an Opportunity to Explore New A Approaches h and d New N Markets M k t Custom Smartphone/Tablet applications to support Kids and Radio brands Evolving relationships with new media companies that align with our brands and customers
Slide 16: Conclusion – Corus Quay
C Conclusion l i – Corus C Q Quay A new waterfront home for Corus Entertainment A smart building, designed with our employees and customers in mind i d A new Radio and Television broadcast infrastructure, built for growth A cultural focus on business transformation Technology to support an
Slide 17: Corus Radio
CORUS RADIO Built for Growth Investor Day 2010
Slide 18: The Strength of Radio
Th Strength The St th off Radio R di Radio is an evergreen g business Cost effective to purchase Measurable N capital Not i l iintensive i Generates great cash flow Radio’s strength is its enduring local content
Slide 19: GDP and Canadian Radio Advertising Dollars
GDP and d Canadian C di Radio R di Advertising Ad ti i $s$ 12.0% 10.0% 8.0% 6.0% % 4.0% 2.0% 0.0% GDP Growth -2.0% Radio Advertising Growth -4 0% -4.0% -6.0% -8.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 20: Dollars by Demo
D ll Dollars by b Demo D Top p 10 demos represent p the majority j y of revenues. Since 2005, the top p 10 demos have represented a growing share of total spending and now represent more than 90% of all revenues. Much of this growth is represented by the Adult 25-54 demo which now accounts for more
Slide 21: Format Diversity and Share of Hours Tuned by Gender
Format Diversity and Share of Hours Tuned b Gender by G d Format Diversity y Share of Hours Tuned by Gender Format # of Stations Female 46% Classic Hits 9 News/Talk 9 AC 6 AOR/Mainstream Rock 5 Classic Rock 4 Hot AC 2 CHR 3 Gold/Oldies 2 Male Country 2 54% Mainstream Top 40/CHR 2 Modern/alt. Rock 2
Slide 22: Corus Investor Day 2010
CORUS INVESTOR DAY 2010 September 29, 2010
Slide 23: Economic Trends
Economic Trends 1. By almost every measure, Canada has experienced a healthier recovery than the U.S., most notably on the jobs front. (1) 2. The stronger job market has supported consumer confidence (2) and spending this year. 3. Overall GDP growth has slowed in Canada but will have continued growt
Slide 24: Economic Trends
Economic Trends United States Low U.S. consumer confidence is reflected in continued spending restraint as consumers continue to reduce overall shopping trips and spending even with better prices and increased promotion support. Canada Consumers are still focused on value, shopping more at discount
Slide 25: Radio Revenue Trends
Radio Revenue Trends Positive Growth for 2010 $ Millions 2005 2006 2007 2008 2009 2010 Est. (CAD) Radio 1,316 1,390 1,468 1,558 1,469 1,494 % Change 8.9% 5.6% 5.6% 6.1% ‐5.7% 1.7% SOM 13.3% 13.1% 13.2% 13.4% 13.5% RADIO revenues have shown much stronger growth in the second half of fiscal 2010 March
Slide 26: Media Revenue Trends
Media Revenue Trends ($ millions)) 2005 2006 2007 2008 2009 Radio % Change 8.9% 5.6% 5.6% 6.1% ‐5.7% SOM 13.3% 13.1% 13.2% 13.4% 13.5% Television* % Change 1.7% 7.5% 1.8% 2.8% ‐8.6% SOM 30.4% 30.5% 29.6% 29.1% 28.6% Daily Newspapers % Change 1.8% ‐0.9% ‐2.4% ‐3.2% ‐18.4% SOM 26.8% 24.8% 23.0% 21.4%
Slide 27: CPP Trends — 2005 to 2010
CPP Trends — 2005 to 2010 MARKET NAME Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 Toronto, ON * 136.35 158.71 171.66 181.27 172.03 224.51 Vancouver, BC * 93.54 94.17 96.07 99.54 98.05 112.08 Calgary, AB * 55.5 58.53 62.71 65.05 67.84 82.06 Edmonton, AB * 41.85 44.96 46.44
Slide 28: Top 10 Categories in Canada
Top 10 Categories in Canada Share of Total Revenue Trend 2005 to 2010 Category 2005 Share 2006 Share 2007 Share 2008 Share 2009 Share 2010 Share Retail 18.4% 18.2% 16.9% 17.7% 20.2% 21.0% Automotive 16.3% 15.0% 12.2% 11.2% 11.8% 15.8% Restaurants 5.0% 5.0% 6.7% 8.3% 9.9% 10.7% Telecommunications 9 4
Slide 29: Corus Rewards - How it Works
Welcome, Corus Connect Direct You currently have 1,000 points in your account Change Station: Sivaii-s =e ha L 1021 edge CORUS REWARDS HowitWorks UsePoints PointsLog _—_ Legal Corus Rewards - How it Works The earlier you pay your invoices, the more points you get! i If you paid a $1,000 invoice... ©
Slide 30: So… What Does All This Mean?
S So… What Wh t Does D All Thi This Mean M ? We expect the Canadian Radio market will grow in the 3% – 5% range in F’11 We believe we are competitively positioned in terms of formats, ratings and demographic appeal. As a result, we should be able to perform at least in line with market growth gr
Slide 31: Corus Television
CORUS TELEVISION Built for Growth Investor Day 2010
Slide 32: Corus Television – Our Growth Agenda
C Corus T Television l i i – Our O Growth G th Agenda A d Corus Kids Premium TV Women’s Specialty
Slide 33: Everybody Watches Corus
E Everybody b d Watches W t h Corus C Source: BBM Canada TV Meter – 11/30/09-3/28/10 – M-Su 2a-2a – Canada minus Quebec Franco – Average Monthly Reach (1 min. qualifier) % of UE
Slide 34: They Can't Seem to Get Enough
Th Can’t They C ’t Seem S to t Get G t Enough E h Adult viewing hours are up 79% on Corus 79% 80% 69% 70% A25-54 W25-54 60% ase vs YA 50% 40% % Increa 30% 27% 21% 20% 14% 15% 10% 0% CORUS (12) * CTVGLOBEMEDIA CANWEST SPEC (19)* SPEC (29) * CANADIAN SPECIALTY VIEWING HOURS Sources: BBM/NMR, BBM Can
Slide 35: Our Share is Up… and our Competitors' Share is Down
Our Share is Up… and d our Competitors’ C tit ’ Share Sh is i Down D * * * CANADIAN SPECIALTY SHARE ADULTS 25-54 Sources: BBM/NMR, BBM Canada TV Meter, excludes Olympic period * Numbers in brackets refer to number of specialty networks owned by company
Slide 36: Corus Kids
C Corus Kid Kids Corus Kids networks deliver g growth in audience and revenue Nelvana Enterprises’ growth reaches beyond our networks
Slide 37: Purchasable Ratings for Kids in Canada
P Purchasable h bl Ratings R ti for f Kids Kid in i Canada C d Source: BBM Canada - Total Canada; WinSpr10 (Jan 4/10 – May 30/10 – 21 weeks) - Share for each broadcaster calculated from total weekly ratings in kid-targeted programs
Slide 38: YTV has 10 of the Top 20 Shows for Kids 2-11
YTV has 10 of the Top 20 Shows for Kid 2-11 Kids 2 11 Sources: BBM/NMR, BBM Canada TV Meter
Slide 39: Kids 2-11 Audience Growth
Kid 2-11 Kids 2 11 A Audience di Growth G th 45 +40% 40 40 000) 35 +23% Average Minutte Audience (0 30 28 28 25 23 20 15 10 A 5 0 YTV TELETOON BY '08/09 08/09 BY 09/10 Sources: BBM/NMR, BBM Canada TV Meter
Slide 40: Co-Viewing Strategy Drives Growth
C Vi i Strategy Co-Viewing St t Drives Di Growth G th Time with the kids is Mom’s top priority at home 96% of Moms say they enjoy watching TV with their child 92% of parents reported having co-viewed in past two days Advertiser benefits Increased likelihood that ads will be watched Signi
Slide 41: YTV Adult Audience Growth
YTV Adult Ad lt Audience A di Growth G th Sources: BBM/NMR, BBM Canada TV Meter
Slide 42: YTV Co-View Revenue Growth
YTV Co-View C Vi Revenue R Growth G th $18,000 $16,000 +31% 00) $14,000 Ad Revenue ($00 $12,000 $10,000 $8,000 $6,000 $4 000 $4,000 $2,000 $- F'09 F'10 M-Su 6p-2a
Slide 43: Nelvana Enterprises
Nelvana Enterprises wx ™ ACorus® Entertainment Inc. Company
Slide 44: Nelvana Enterprises: Growing Beyond our Networks
Nelvana Enterprises: G Growing i Beyond B d our Networks N t k Building our boys action business Beyblade: Metal Fusion Bakugan Broadening our preschool portfolio Investing in Nelvana Library: Babar, Franklin Partnering with best in class preschool partners International channel ventur
Slide 45: Bakugan
B k Bakugan Bakugan is the #2 boys action property 50% of boys aged 5-12 own a Bakugan Activision game for Nintendo DS was #1 title for Holiday 2009 in U.S. Tremendous brand momentum for balance of 2010 New Activision title, McDonald’s Happy Meal Explosive European Growth in 2010 Tied
Slide 46: Beyblade: Metal Fusion
B bl d Metal Beyblade: M t l Fusion F i The next big boys action property for Nelvana #1 boys action property in Japan following re-launch in 2009 Global toy rollout by Hasbro in Fall 2010 Early Canadian launch very promising Broadcast secured in all major territories
Slide 47: Preschool – Babar
P Preschool h l – Babar B b Babar and the Adventures of Badou – Sold everywhere! • U.S. – Disney France – TF1 Lat America – Discovery Kids • Germany – KI.KA UK – CiTV Canada – YTV Playtime France rolls out merchandising program first in Spring 2011 Merchandise and home video partner discussion
Slide 48: Preschool – Franklin
P Preschool h l – Franklin F kli New Franklin CG series in production Coincides with Franklin’s 25th Anniversary in 2011 Kids Can Press leverages 25th Anniversary Re-issue of top 10 original bestselling Franklin titles Reignite worldwide merchandising program France Canada Others
Slide 49: Partnering with the Best…
P t Partnering i with ith the th Best… B t Partnering with best in class content partners for new preschool properties Leveraging our Corus Advantage as an integrated producer, b broadcaster d t and d distributor di t ib t tot secure ownership hi positions iti Presenting… Mike the Knight from
Slide 50: …and Growing with our Audience
…and d Growing G i with ith our Audience A di The future demands live action Co-view programming is a priority for broadcasters the world over Corus Kids, partnering with best in class live action talent, announces… Life with Boys Mr. Young Hardy Boys
Slide 51: qubo
qubo b Nelvana’s programming constitutes a majority of the schedule ION Media Networks leading qubo management and distribution carriage charge qubo is available in 42 million U.S. homes – up 5% over last year
Slide 52: KidsCo
Kid C KidsCo Launched in Australia this year in addition to the Asia Pacific, Western Europe and Central Eastern Europe feeds 92 countries 18 languages 12.7 million paying subscribers Subscriber growth of 58% over last year
Slide 53: Premium TV – Experience More in 2011
P Premium i TV – Experience E i More M in i 2011 Capitalizing on Corus Quay Aggressive marketing campaigns
Slide 54: Capitalizing on Corus Quay
C it li i on Corus Capitalizing C Quay Q High Definition Early deployment of Movie Central/HBO Canada Launching MC2, YTV, W Movies and Sundance More Video on Demand Nick, W Network, Sundance Launching Broadband VOD Shaw, Rogers and Bell
Slide 55: Aggressive Marketing Campaigns
A Aggressive i Marketing M k ti C Campaigns i Movie Central Q1 Campaign Subscribe and get 3 months free! Fall is a critical (and historically successful) acquisition period Ongoing digital deployment offers opportunity Outstanding programming slate: HBO and Showtime series Addition of
Slide 56: Women's Ratings Growth
W Women’s ’ Ratings R ti Growth G th 160% growth in ratings 25 2 3 20 2 udience (000) 15 erage Minute Au 10 19 20 19 15 5 10 Ave 0 F'02 F'04 F'06 F'08 F'10 W Movies* VIVA Cosmo W Network Sources: Nielsen Media Research, BBM NMR, BBM Canada - Broadcast weeks 1-52(53) - W25-54, Average Minute Audience
Slide 57: Growth of CosmoTV
Growth of CosmoTV Programming and scheduling delivers growth Sex and the City series Movie blocks Red Hot Reality Mondays Ranked #6 against W18-34 W18-49 audience up 87%
Slide 58: VIVA and W Movies
VIVA and d W Movies M i VIVA Strength of Crime in Prime block The Closer, Closer Cold Case Case, Missing W25-54 audience up 19% W Movies Launched March 1,, 2010 Strong audience performance, growing 300% post rebrand
Slide 59: W Network – Winning Insights
W Network – Winning Insights Corus knows Women – Continual research offers key insights Women watch differently throughout the day Evening viewing tends to be social – this requires compromise Compromise requires different programming
Slide 60: W Network – A Winning Schedule
W Network N t k – A Wi Winning i Schedule S h d l Rags to Red Carpet
Slide 61: W Network – Still Growing
W Network N t k – Still Growing G i +16% Source: BBM Canada TV Meter - Weeks 1-52 – Women 25-54 – Mon-Sun 2a-2a – Total Canada – Average Minute Audience
Slide 62: W Network – New Shows
W Network N t k – 10 N New Sh Shows!! Commissioning g focus… On all aspects of the home genre (design, renovation, finance) With new recognizable male hosts More dual hosting Competitive element Weekend night scheduling leverages insights Friday night is “Date Night” Saturday night “
Slide 63: Launching BIG Brands
a Launching BIG Brands sundance CHANNEL ENTERTAINMENT
Slide 64: Announcing the Oprah Winfrey Network
Announcing…. Th Oprah The O h Winfrey Wi f Network N t k Launching Spring 2011
Slide 65: Corus TV is Built for Growth
Corus TV is Built for Growth (ONS ENTERTAINMENT
Slide 66: Regulation & Legislation: Removing Barriers to Growth
REGULATION & LEGISLATION Removing Barriers to Growth Investor Day 2010
Slide 67: A Crowded Agenda
AC Crowded d d Agenda A d Digital Migration Channel Carriage Policy Key changes Television Group Licensing The issues The timetable Copyright Radio tariffs Bill C-32 C 32
Slide 68: Digital Migration for BDUs
Di it l Mi Digital Migration ti for f BDUs BDU IIn 2006-2007, 2006 2007 CRTC providedid d the th first fi t road d map for f moving i from analog to digital distribution including: When BDUs could move channels to digital Impact on carriage rights, linkage and pricing, etc.
Slide 69: The October 30, 2008 Policy: More Changes
Th October The O t b 30, 30 2008 Policy: P li More M Changes Ch The large basic tier was maintained. BDUs could continue to sell the big basic package Ad sales policy was preserved no sales of local avails August 31, 2011 digital migration date established for HD and carriage rules Analog,
Slide 70: Packaging Implications of Digital Migration
P k i Implications Packaging I li ti off Digital Di it l Migration Mi ti Cable will have increased packaging flexibility Mix of US / Canadian services Mix of legacy analog specialties and diginets BUT Sunk cost investment in big digital tiers Tough to unwind – choice can be bad for busines
Slide 71: The Group Licensing Policy 2010
Th Group The G Licensing Li i Policy P li 2010 Group strategic use of CPE and removal of the escalator provisions CanCon reductions Flatter Fl tt obligations bli ti and d removall off old ld COLs COL LPIF maintained No local avails sales by BDUs Broadcasters stay in the process on VOD pr
Slide 72: Group Licensing Timetable
G Group Licensing Li i Timetable Ti t bl Private English-language groups and certain other services: CTV, CanWest, Rogers, Corus Corus, TLN, and CJBN-TV Kenora Hearing Spring 2011 Private French-language groups and certain other services: TVA, Astral, etc. Early Fall 2011 CBC / Radio Canad
Slide 73: The Regulatory Calendar
Th Regulatory The R l t Calendar C l d September 2010: Shaw/CanWest hearing September – October 2010: Bell files with CRTC on CTV deal October 2010: CanWest decision and closing November 1, 2010: Corus files renewal applications November – December 2010: Deficiency period January – Febru
Slide 74: The Key Issues
Th Key The K Issues I What is the impact of digital migration and how does this change the regulatory bargain? g not much change CRTC is assuming g The large groups (CTV, CanWest, Rogers, Astral and Corus) are workingg together g on an approach pp to convince CRTC that we need changes on CPE, Canc
Slide 75: Copyright Tariffs for Radio
Copyright Tariffs for Radio Higher tariffs could be relaxed through legislation
Slide 76: Radio Tariffs
R di Tariffs Radio T iff One song on a file/disc/record has seven collecting societies attached to it
Slide 77: Rights by Collective
Ri ht by Rights b Collective C ll ti SOCAN: Broadcast of music for composers and publishers – 80 years old ReSound: Broadcast of performers’ performances and sound recordings – 7 years old CMRRA/SODRAQ (CSI): Copying of the music – 7 years old AVLA/SOPROQ: Copying of the mechanical discs/fil
Slide 78: Bill C-32 – Copyright Act Amendments
Bill C-32 C 32 – Copyright C i ht Act A tAAmendments d t The Bill amends the law to allow for ephemeral recording or “transfer of medium” which would remove the CCR, AVLA and Artist1 liabilities Other amendments that protect rights owners from infringement It provides consumers with some usage
Slide 79: Summary
Summary The licence renewal process and the changes in carriage rules will roll out in parallel The Industry is working together to achieve a more flexible regime of licence conditions Our TV strategy is built to withstand the digital migration rule changes and to seize any opportunities they
Slide 80: Financial Overview
FINANCIAL OVERVIEW Built for Growth Investor Day 2010
Slide 81: Financial Priorities Recap: Fiscal 2010
Fi Financial i l Priorities P i iti Recap: R Fiscal Fi l 2010 Maintain Focus on Shareholder Value • Maintain Strong Balance Sheet • Renew Bank Credit Lines for Intense Focus on Improved Flexibility Total Shareholder Return • Maintain M i t i Firm Fi Commitment C it t to Dividend
Slide 82: Financial Priorities: Fiscal 2010 Progress Report
Financial Priorities: Fi Fiscal l 2010 P Progress RReportt Strong Balance Sheet maintained Year end leverage at 2.6x Dividend maintained at $0.60 per share Dividend yield of 3.1% at year end F’10 5 year dividend CAGR = 43% Dividend Reinvestment Plan offers 2% discount $500M / 7 year Bo
Slide 83: Financial Priorities: Fiscal 2010 Progress Report Cont'd
Financial Priorities: Fi Fiscal l 2010 P Progress RReportt C Cont’d t’d Delivered EBITDA in line with Management’s Management s expectations and guidance of $255M - $270M Very strong adjusted Free Cash Flow of approximately $60M, above guidance of $10M - $20M Share Price: August 31, 2010 $19.4
Slide 84: Financial Priorities – Fiscal 2010 Progress Report Cont'd
Financial Priorities – Fi Fiscal l 2010 P Progress R Reportt C Cont’d t’d Acquired 2 specialty channels for $40M. Rebranded and llaunched h d as W Movies M i and d Sundance S d Channel Ch l on March M h 1, 1 2010. 2010 W Movies increased number of subscribers by 98% Sundance Channel increased
Slide 85: Financial Summary
Fi Financial i l Summary S Fiscal 2009 One of the only media companies which did not produce a decline in EBITDA vs. prior year Fiscal 2010 We have built the Company to grow
Slide 86: Stock Performance
St k P Stock Performance f Stock Performance as at August 31, 2010 CAGR - 5YR Company CAGR - 1 YR CAGR - 5 YR (incl. Dividends) Corus 30 % 30.1% 3.8% 3 8% 6.3% Canadian Peers (CDN $) Astral 14.4% 2.4% 3.6% Torstar 48 2% 48.2% -18 0% -18.0% -13 13.1% 1% TVA 6.8% -10.1% -8.6% U.S. Comparables (US $) E
Slide 87: Fiscal 2011 and Beyond – Built for Growth
Fi Fiscal l 2011 and dBBeyond d – Built B ilt for f Growth G th Strong Balance Sheet with leverage at 2.6x Unused lines of credit = access to $400M - $600M of capital Fixed rate financing in place for 7 years @ 7.25% N Nett D bt S Debt: Sep. 1 1, 1999 – A Aug. 31 31, 2010 800 700 Million (CDN
Slide 88: Fiscal 2011: A Return to Strong Free Cash Flow
Fiscal 2011: A Return R t to t Strong St Free F Cash C h Flow Fl Capital p build-out of Corus Q Quay y almost complete p Fiscal 2011 Free Cash Flow will exceed $100M Opportunity for increased dividends/share buybacks O ti Operating dF and Free C h Fl Cash Flow: 2006 – 2011E Free Cash Flow Mill
Slide 89: Capital and Depreciation
C it l and Capital d Depreciation D i ti Major capital expenditures almost complete → on time, on budget Corus Quay: Infrastructure and leaseholds $60M Technologygy investment $ $50M Lower capital expenditures for the next three years Capital Expenditures and Depreciation 120 CAPEX Million
Slide 90: Television: A Business Which is Built to Grow
Television: ABBusiness i Whi Which h is i Built B ilt to t Grow G Excellent margins Significant Si ifi upside id on advertising d i i as economy recovers Leverage to ad revenues = 52% Advertising sweet spots Strong and growing subscriber base Merchandising = third revenue stream Bakuga
Slide 91: Television: The Power of Leverage – Financial & Technical
Television: Th Power The P off Leverage L – Financial Fi i l & Technical T h i l Corus Quay has the capacity for significant acquisitions No technical upgrades required - from 23 signals up to 60 signals Fixed costs are in place For Illustrative Purposes: Television Corus Corus Street Acquisit
Slide 92: Radio: A Business Which is Built to Grow
Radio: AB Business i Whi Which h is i Built B ilt to t Grow G Improved Margins Margins without Quebec are 30% (vs. 25% with Quebec) Increased Cash Flow Radio EBITDA Growth % - 2011 Revenue Growth 2% 3% 4% 5% 6% Growth 1% 5% 9% 13% 17% 21% Expense G 2% 2% 6% 10% 14% 18% 3% -1% 3% 7% 11% 15% 4%
Slide 93: Financial Priorities: Fiscal 2011 - Built to Grow
Financial Priorities: Fi Fiscal l 2011 - Built B ilt to t Grow G Maintain Strong Balance Sheet and Credit Rating Return to Dividend Growth Drive Top-Line Revenue Growth Improve Operating Margins
Slide 94: Financial Guidance: Fiscal 2011
Financial Guidance: Fiscal 2011 Consolidated EBITDA $285 to $295 million Free Cash Flow $100 million +
Slide 95: Investor Day 2010 Q&A Session
I Investor t Day D 2010 Q&A Session