Investor Presentation August 12, 2019 Safe Harbour Disclosure: - - PowerPoint PPT Presentation

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Investor Presentation August 12, 2019 Safe Harbour Disclosure: - - PowerPoint PPT Presentation

Oct 05, 2022 113 likes •343 views

Investor Presentation August 12, 2019 Safe Harbour Disclosure: Forward-looking Information 2 Leading Canadian Media and Content Company Great portfolio of assets Leader in Canadian broadcasting Powerful brands and content Valuable

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August 12, 2019

Investor Presentation

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Safe Harbour Disclosure: Forward-looking Information

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Leading Canadian Media and Content Company

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 Great portfolio of assets

  • Leader in Canadian broadcasting
  • Powerful brands and content
  • Valuable audience segments
  • Globally recognized content business

 Experienced, focused leadership team  Commitment to driving efficiency and cash flow

  • Ongoing cost structure improvement supports

superior margins

  • Asset optimization initiatives
  • Strong free cash flow generation
  • Focus on reducing leverage
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Media and Content Powerhouse

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Deep Relationships with World-Class Partners

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Active Pursuit of Portfolio Optimization Strategy

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  • Launched on April 1, 2019 in Canada, Adult Swim is already top 101 with

Male Millennials

1 Source: Numeris PPM Data, Spring 2019 (Dec 31/18 – May 26/19), confirmed data, Male Millennials = Men 23-38, Average

Minute Audience (000), Canadian Commercial English Specialty + digital, includes sports, Mon-Sun 2a-2a, Total Canada

New Channel Brand Innovative Partnership

  • Multi-platform channel deal with Crown Media’s iconic Hallmark

Channel is contributing to audience growth on W Network

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Financial Profile

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  • 1. For the year ended August 31, 2018
  • 2. Excludes unallocated corporate costs

As at May 31, 2019 Total Assets Long-term Debt Outstanding Class B Shares $4.8 billion $1.7 billion 208.6 million

Fiscal 20181 Business Segment Revenues Fiscal 20181 Sources of Revenue Fiscal 20181 Business Segment Profit2

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Ongoing Strategic Discipline

  • Optimize core business • Diversify revenue base • Diligent cost control
  • Deliver strong free cash flow • Delever balance sheet
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Evolving How Television Advertising is Sold

Audience segment targeting critical to the future of TV

Common Audience Segments

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Canadian Media Attribution Study Findings

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Whitepaper and presentation available at https://thinktv.ca/research/Canadian-media-attribution-study/

Advertising dollars shifting back to Television from Digital

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New Platforms and New Audiences

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Launched on Amazon Prime Video Channels in Canada – June 2019

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Global TV Delivers Premium Content Everywhere

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Mobile Apps Web Connected TVs Actively Pursuing Ad-Supported Video on Demand Opportunities

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Expanding Short Form Content Offering

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Diversification initiatives to attract more Millennial audiences

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Own and Control More Content

Leveraging our required Canadian content spending to grow international content sales

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Revenue Diversification is On Track

151 series in fiscal 2019, up from nine2 series in fiscal 2018

1 Delivered and in production 2 Delivered

In-house properties developed into new series Strong line-up

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Established Global Content Provider

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19 series in fiscal 2020, up from 11 series in fiscal 2019

$ave My Reno Backyard Builds Home to Win for the Holidays $ave My Reno

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Corus Delivers Strong Free Cash Flow

  • Delivered $312 million in

free cash flow for the 12 months ended May 31, 2019

  • Strong segment profit /

free cash flow conversion

  • Low capital expenditure intensity

1. Fiscal 2016 reflects impact of one-time costs from the acquisition of Shaw Media Inc. on April 1, 2016.

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Capital Allocation Policy

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  • Delever to under 3.0 times net

debt to segment profit to create financial flexibility

  • Annual dividend rate of

$0.24/Class B share

  • Dividend paid quarterly, subject to

approval of Board of Directors

  • Investments to advance

strategic priorities

  • Ad Tech + Data Analytics
  • Revenue Diversification
  • Own More Content

Capital primarily directed to debt repayment

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Significant Progress on De-leveraging

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Building Long-Term Stability and Resilience

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 First principles

  • Maximize audiences and leverage brands, content and talent on new platforms
  • Monetize audiences through innovative, data-driven advertising solutions
  • Rationalize the operating model on a continuous basis

 Targeted strategic investments to diversify revenues

  • Data analytics and advanced advertising technology platform investments
  • Own and control more content strategy capitalizes on Lifestyle and Kids genre expertise
  • New and adjacent market investments include so.da, CuriousCast, Toon Boom and Kin Canada

 Introduction of new ‘product’ offerings

  • Automated audience-based buying advertising platform (Cynch – working towards full launch)
  • Premium Video-on-Demand

 Deliver strong free cash flow to support steady progress against financial priorities

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Q&A