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Canadian Satellite Radio Holdings Inc. Fourth Quarter and Year Ended - - PowerPoint PPT Presentation
Canadian Satellite Radio Holdings Inc. Fourth Quarter and Year Ended - - PowerPoint PPT Presentation
Canadian Satellite Radio Holdings Inc. Fourth Quarter and Year Ended August 31, 2007 1 Forward-Looking Statements Certain statements included above may be forward-looking in nature. Such statements can be identified by the use of
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Forward-Looking Statements
Certain statements included above may be forward-looking in nature. Such statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "should," "intend," "plan," or "anticipates" or the negative thereof or comparable terminology, or by discussions of strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or
- ther statements that are not statements of fact. Although CSR believes that the
expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. CSR's forward- looking statements are expressly qualified in their entirety by this cautionary statement. CSR makes no commitment to revise or update any forward-looking statements in
- rder to reflect events or circumstances after the date any such statement is made.
Additional information identifying risks and uncertainties is contained in CSR's filings with the Canadian securities regulators, available at www.sedar.com.
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Strategic Review
John Bitove
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130 unbeatable channels, including news, talk, sports, entertainment, children’s content & specialty channels
Strong Performance in 2007
- Cash usage declines to $800,000 in the fourth quarter
- NHL exclusivity gaining momentum
- Subscribers increase >100% to over 306,000
- Over 50% share at major retailers in September
- 285,000 vehicles with factory installed XM
Satellite Radios on the road or on order
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Growing Retail Market Share
26% 49% 52%
Jul-07 Aug-07 Sep-07
Source: XM Canada
XM Canada’s Market Share
- f Major Retailers
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Leading the OEM Market in Canada
78,000 285,000 2006 2007 2008E
Vehicles with Factory Installed XM Satellite Radios*
480,000
* Cumulative vehicles on the road and on order. ** As of October 2007. **
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Expanding Through Strategic Partnerships
- Air Canada: As exclusive music channel provider for Canada’s largest
airline, we have the opportunity to access more than 32 million flight passengers every year
- Avis Budget Group: This partnership introduces XM Satellite Radio into
Avis and Budget rental cars across Canada
- TELUS and Rogers: Agreements with both TELUS and Rogers gives
us access to two-thirds of more than 18M wireless customers in Canada
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Leading the Canadian Satellite Radio Market
Source: XM Canada and the Sirius Canada website
110 130 Total 38 55 Sports/News/Talk 45 47 Rock/Urban/Country/Hits/Latin 4 4 Comedy 2 2 Kids 3 3 Christian 3 3 World 5 5 Classical 2 3 Dance 5 5 Lifestyle 3 3 Jazz Sirius Canada XM Canada
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Scoring With NHL Exclusivity
- Exclusive satellite radio partner of the NHL
until 2015
- Comprehensive coverage with nine
play-by-play channels
- NHL Hour, a candid interactive talk show
hosted by NHL Commissioner, Gary Bettman
- Already seeing positive impact of NHL exclusivity
- n key areas of our business:
– subscriber growth – retail market share
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Looking Forward to 2008
- Growth in OEM as XM radios become a standard
feature in several automotive models
- Subscriber growth expected to be driven by:
– NHL – better retail sales execution – dominant position in OEM – strategic partnerships
- Focused on achieving positive cash flow
Canada’s premier digital audio entertainment & information company
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Financial Review
Michael Washinushi
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Subscribers
91,200 101,800 136,400 152,500 185,400 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Self-Paying Other Paying OEM Promotional
151,600 188,100 237,500 269,900 306,300
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Revenue ($ millions)
3.4 6.8 6.9 21.2 Q4 FY 2006 2007
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Lower ARPU, Higher Deferred Revenue (Cash)
$11.78 $11.33 $12.23 $11.32 Q4 FY
2006 2007
Change in Deferred Revenue* ARPU
$2.0 $3.1 $4.0 $10.1 Q4 FY
2006 2007 (millions) * Includes current and long-term deferred revenue.
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SAC and CPGA
$59 $58 $68 $51 Q4 FY 2006 2007 $242 $183 $268 $208 Q4 FY
2006 2007
SAC CPGA
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Cost per Average Self-Paying Subscriber
$7.45 $3.35 $2.24 $1.16 Q2 '06 Q3 '06 Q4 '06 Q4'07 $4.25 $6.39 $4.07 $1.90 Q2 '06 Q3 '06 Q4 '06 Q4 '07 $45.11 $21.33 $23.28 $7.51 Q2 '06 Q3 '06 Q4 '06 Q4 '07
Customer Care and Billing Operations Broadcast & Operations General & Administrative
2006 2007 2006 2007 2006 2007
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Adjusted Operating Loss ($ millions)
(14.4) (12.2) (56.4) (50.6) 2006 2007
Q4 FY
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Quarterly Cash* Usage ($millions)
$12.6 $8.3 $8.7 $0.8
Q1 '07 Q2 '07 Q3 '07 Q4 '07
* Includes changes in cash and short-term investments.
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Liquidity ($ millions)
45.0 ― ― 110.7 33.0 78.2 45.2 Aug 31, 2006 Available & Unused Credit Facilities 42.9 42.9 XM credit facility undrawn 2.1 19.5 2.1 ― XM credit facility drawn (2)(3) Convertible debentures, net proceeds 105.6 105.6 Senior notes Outstanding Debt 19.3 53.6 19.3 34.1 Restricted investments Total cash and investments 34.3 14.8 Cash and short-term investments Pro forma (1) Aug 31, 2007 Aug 31, 2007
(1) Pro forma for net proceeds of C$20 million convertible debentures issued September 12, 2007. (2) Total amount drawn on the credit facility, including both the liability and equity components. (3) Includes accumulated interest expense on facility.
- Pro forma includes the net proceeds of the convertible debenture
- Based on USD/CAD exchange rate of $0.96 (as of Nov 13/07), the Senior notes would be valued at C$96M
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Q&A
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