John Cassaday President and Chief Executive Officer Safe Harbour - - PowerPoint PPT Presentation

John Cassaday

President and Chief Executive Officer

Safe Harbour Disclosure: Forward-Looking Statements and Use of Non-GAAP Measures

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 relate to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook can generally be identified by the use of the words such as “believe”, “anticipate”, “expect”, “intend”, “plan”, “will”, “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Although Corus believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward- looking statements and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things, our ability to attract and retain advertising revenues; audience acceptance of our television programs and cable networks; our ability to recoup production costs; the availability of tax credits and the existence of co- production treaties; our ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) that may be presented to and pursued by us; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations; our ability to integrate and realize anticipated benefits from our acquisitions and to effectively manage our growth; our ability to successfully defend ourselves against litigation matters arising out of the ordinary course of business; and changes in accounting standards. Additional information about these factors and about the material assumptions underlying such forward-looking statements may be found in our Annual Information Form. Corus cautions that the foregoing list of important factors that may affect future results is not

• exhaustive. When relying on our forward-looking statements to make decisions with respect to Corus, investors and others should carefully consider the

foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, we disclaim any intention or

• bligation to publicly update or revise any forward-looking statements whether as a result of new information, events or circumstances that arise after the

date thereof or otherwise. Segment profit (or EBITDA), segment profit margin (or EBITDA margin) and free cash flow do not have standardized meanings prescribed by IFRS. The Company reports on segment profit, segment profit margin and free cash flow because they are key measures used to evaluate

• performance. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2014 Report to Shareholders.

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VIDEO: 15 year

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Kids TV Costs Synergies Ratings

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Kids TV Costs Synergies Ratings Pay Subs Toronto Radio Ad Sales

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OWN MORE CONTENT STRENGTHEN KEY PARTNERSHIPS EXPAND INTO NEW MARKETS GROW ORGANICALLY 11

Corus’ Strategic Priorities for Growth

Doug Murphy

Executive Vice President, Chief Operating Officer

OWN MORE CONTENT STRENGTHEN KEY PARTNERSHIPS EXPAND INTO NEW MARKETS GROW ORGANICALLY 13

Corus’ Strategic Priorities for Growth

OWN MORE CONTENT

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Owning More Content - Nelvana

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Owning More Content – Unscripted Reality Programming

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STRENGTHEN KEY PARTNERSHIPS

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BDU Partners

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Agency Partners

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Preferred Brand Steward

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Global Kids Partners

EXPAND INTO NEW MARKETS

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Fingerprint Digital, Inc. Investment History August 2012 June 2014 Leadership Nancy MacIntyre, CEO and Co-Founder Focus Mobile gaming edutainment platform for young kids and their families

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Steamboat Ventures, Fund V Investment History November 2012 Leadership John Ball, Founder & Managing Partner Focus Disney-owned media and technology fund, focused on China

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Execution Labs Investment History October 2014 Leadership Jason Della Rocca, Co-Founder Keith Katz, Co-Founder Focus Innovative incubator for Canadian casual gaming companies

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SoCast SRM Investment History December 2011 June 2013 Leadership Elliott Hurst, Co-Founder & CEO Sandy Hurst, Co-Founder & COO Focus Social relationship management for entertainment

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Toon Boom Animation

Investment dates 2004, 2012 Paul Gardner, Interim CEO Franciso Del Cueto, CTO Toon Boom Animation Inc. Investment History October 2004 February 2012 Leadership Paul Gardner, Interim CEO Francisco Del Cueto, CTO Focus Animation software technology for producers, educators and consumers

Relay Ventures, Fund II Investment History December 2011 Leadership John Albright, Co- Founder & Managing Partner Kevin Talbot, Co- Founder & Managing Partner Focus Strictly mobile with emphasis on healthcare, education, enterprise and the connected home/car

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Gibraltar Ventures, Fund I Investment History July 2014 Leadership Cam di Prata, Chairman, CEO & Founder Focus Senior advisors to Canada’s next cohort of great technology companies

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CFC ideaBOOST Investment History August 2012 Leadership Ana Serrano, Director Slawko Klymkiw, CEO Focus Early incubator/ acceleration program centred around media and technology

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Kin Community Investment History September 2014 Leadership Michael Wayne, Co-Founder & CEO Focus #1 Women’s lifestyle multi-channel network (MCN) on YouTube with a portfolio of brands

GROW ORGANICALLY

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Grow Radio Ratings

Extraordinary

• perating leverage

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Leverage our Audience Position in Television

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Innovate with our BDU Partners to Deliver Subscriber Value

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Become a Bigger Global Content Player

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Leverage Corus Quay to Drive Incremental Revenue

OWN MORE CONTENT STRENGTHEN KEY PARTNERSHIPS EXPAND INTO NEW MARKETS GROW ORGANICALLY 38

Corus’ Strategic Priorities for Growth

VIDEO: TV Brands Reel

Gerry Mackrell

Vice President, Head of Corus Advertising Revenues

A Look in the Rearview Mirror

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Corus Wins in 2013

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Consumer Packaged Goods (CPG) Catches the “Flu”

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Non-Linear Share Gains

CPG is a Major Category for Corus

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• New business growth
• Kids recovery
• Client Marketing growth

Positives in the Year

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• Growing, targeted audiences
• Strong upfront
• Innovation
• CPG recovery

Return to Growth

CPG Brand Equity Declines

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• Brands less important
• “LIKE” = DISCOUNT
• Balance sheet issue

• 10x credibility
• 9x attention
• 7x appropriateness
• 8x product quality
• 6x trial
• 4x change attitude

Television Dominates Social

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Corus is Well- Positioned to Benefit

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Quality Original Productions Attract Advertisers

VIDEO: Client Marketing Sizzle

John MacDonald

Vice President, Television, Head of Corus Women & Family

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VIDEO: W Network Sizzle

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Corus Women and Family Networks Outpacing Competitive Set

6% 1%

• 5%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% Corus Shaw Bell W25-54 Women and Family Competitive Set Corus Shaw Bell % Change Year-Over-Year

Source: Numeris Weeks 1-8 2014 vs 2013 (Competitive Set – Corus: W Network, CMT, OWN (Canada), ABC Spark, W Movies, CosmoTV; Shaw: Food, HGTV, History, Showcase, Slice, Lifetime, Dtour; Bell: Discovery, Bravo, E!, Much, MTV, M3)

Women: CEO of the Household

Influence over 90% of household purchases 95% are directly involved in household financial decision making

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Original Programming Drives Ratings

F15 YTD Top Prime Time Series on W Network (W25-54) 1 Love It or List It 2 Property Brothers: Buying & Selling 3 Property Brothers 4 Cedar Cove 5 Come Dine With Me Canada 6 Love It or List It Vancouver 7 Pressure Cooker 8 Million Dollar Critic 9 Shannon & Sophie 10 Chrisley Knows Best Canadian Original Production U.S. Acquisition

Unscripted Reality can Travel the World

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Corus-Owned Original Development and Production Slate

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VIDEO: Unscripted Sizzle

Kin Community Complements our Linear Brands and Expands our Ad Offerings

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Michael Wayne

Co-Founder and CEO, Kin Community

VIDEO: Kin Sizzle

KIN COMMUNITY OVERVIEW PRESENTATION NOVEMBER 2014

SCARCITY

Traditional Media Model

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ABUNDANCE

Digital Media Model

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UNDISPUTED HEAVYWEIGHT CHAMPION

Global Social Network Over 1 Billion Users Best Casting Call in History Only Social Platform Where Creators Make Money Multi-Channel Networks

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PARTNER SERVICES

Platform Expertise Monetization Promotion Data & Analytics Strategy

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PARTNER INVESTMENT

Infrastructure Money Business Management

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LEVERAGE & ASSETS

Best Lifestyle Creators Globally Scaled Network Ownership Clearing House Brand

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CORUS & KIN

Shared Values Expertise Cross-Platform Opportunities Talent & IP Development

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OUR NEAR FUTURE

Build Kin Community in North America and Europe

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OUR LONG-TERM GOALS

Empower the world’s best lifestyle creators to do what they love. Build the most valuable women’s community ever.

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Colin Bohm

Vice President, Head of Corus Kids

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The Corus Advantage

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Nelvana has an Impressive Content Pipeline

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VIDEO: Little Charmers

VIDEO: Mysticons

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VIDEO: Battle of the Planets

Owning More Content - Bento Box Partnership

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VIDEO: Bento

Nelvana’s Global Success in Digital Sales

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Nancy MacIntyre

CEO and Co-Founder, Fingerprint Digital, Inc.

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Investor Day November 2014 Nancy MacIntyre Founder & CEO

About Fingerprint

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FOUNDED

• In 2011
• Nancy MacIntyre & K2

Media Labs

• Based in SF, 29 Employees

FOUNDED

• In 2011
• Nancy MacIntyre & K2

Media Labs

• Based in SF, 29 Employees

FUNDED

• $19.1M raised
• Corus, Dreamworks and

Reed Elsevier are largest investors

FUNDED

• $19.1M raised
• Corus, Dreamworks and

Reed Elsevier are largest investors

NUMBERS

• 10 enterprise customers
• 100+ developers from 35

countries

• 4MM+ families have played

NUMBERS

• 10 enterprise customers
• 100+ developers from 35

countries

• 4MM+ families have played

Positive Press and Awards

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Mobile Content Market is Growing Rapidly – Kids are a Driving Force

Mobile Games $36 Billion Mobile Learning $9 Billion Consumer Books $19 Billion Streaming Video $23 Billion ¾ of U.S. Kids have access to Mobile Devices Kids Mobile Use up 4X since 2011

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What We Do

Fingerprint provides a turnkey mobile solution to content creators and distributors seeking to link mobile offerings within

• ne branded network with a focus on Kids, Family, Learning

and Fun

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Netflix for Mobile Content Platform as a Service for Brands Global Distribution Partnerships

Appealing to Wide Range of Customers

Pay TV Carriers Media Education

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Mobile Channel Benefits

• Individual apps
• No customer data
• Discovery problems
• High customer acquisition costs
• Reliance on App Stores
• Brand Development
• Marketing vehicle
• Direct Customer Relationship
• Network level data
• Increased customer LTV
• New business models

Mobile channel powered by

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Platform Building

Design & development Updates & regular patch Localized, customized

Content Acquisition

Global/local kid content In-bound app submission & review channel Market analysis

Content Development

Game Design Curriculum Design Interface Design Game Production

Development Support

Operating developer site /

• nline Q&A

SDK integration Localization

Business Intelligence

Analytics Growth Hacking Engagement Metrics

Publishing

QA App submission to app store

Marketing

Platform marketing to Kids content developer network User acquisition & Retention at the network level

Service Ops

Develop & manage subscription model Real time data report (user retention & engagement) Revenue report

Fully Turnkey Mobile Solution

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Growing Content Library Ready for Distribution

500+ Apps 100+ Books 500+ Videos

• Key developers
• Rapidly expanding library

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Scalable, Dynamic Technology, Completely Customizable Experience for any Audience

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Some of our Customers

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VIDEO: Fingerprint

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Fingerprint-Powered Channels will Double in 2015 Adding New Territories and Verticals

5 10 15 20 25 2012 2013 2014 2015 New

Growth of enterprise clients

Telcom ‐ Europe Education ‐ India Language Learning ‐ Global Entertainment – U.S. Education – U.S. Publishing ‐ Global

Newest Channel - Treehouse Play!

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Thank you.

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Maria Hale

Vice President, Head of Content Distribution & Pay TV

VIDEO: HBO Season

HBO: Now You Can Binge View in Canada

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Innovating with BDUs to Build/Increase Value Proposition

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• BDU Library products
• BDU-Centric Apps
• Adding Subscription Value
• Bundling, Packaging and Pricing

Launching Corus’ TV Everywhere Apps

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Mario Cecchini

President, Corus Média, Head of Eastern Ontario, Radio/Television Président, Corus Média & Chef de l'est de l'Ontario, Radio et Télévision

Corus Média Represents over 20% of the Québec Specialty TV Market

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Séries+ is the #1 Specialty Network for W25-54 in Québec

4.1% 4.0% 3.1% 2.7% 2.7% 2.5% Séries+ Canal Vie Canal D RDS Ztélé Historia

Source: Numéris, Qc franco, Fall14 (August 25th to October 26th, 2014)

Bones Top show on French-language specialties among W25-54

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Séries+ has TV’s Best Dramas

• Marquee primetime drama programming
• Long-term programming deal with CBS
• Two new original productions showcasing

Québec talent Mon Ex Á Moi

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A&E Partnership Provides Branding and Marquee Programming for Historia

TÉLÉTOON will Focus

• n Adult Programming
• TÉLÉTOON currently #1 specialty

network for M18-34 from 8p-2a

• Leverage Québec star system
• New edgier content

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Source: Numéris, Qc franco, Fall14 (August 25th to October 26th, 2014)

VIDEO: H+S, et TÉLÉTOON Sizzle

Toronto Radio Ratings are Improving

• 102.1 the Edge has increased tuning

by 11% overall among M18-34 with the morning show up 18%

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Source: Numeris 8 Weeks (Sep 21/14-Oct 26/14) versus Spring 2014 (Feb 24/14-May 26/14) PPM Toronto CTRL AMA M18-34

Toronto Radio Ratings are Improving

• Investment in research and

programming is delivering results

• Q107 is #1 among M25-54 and

tuning is up 31%

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Source: Numeris 8 Weeks (Sep 21/14-Oct 26/14) versus Spring 2014 (Feb 24/14-May 26/14) PPM Toronto CTRL AMA M25-54

A Broader Range of Rock

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Chris Pandoff

President, Corus Radio

Radio Key Success Factors

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• 1. Programming
• 2. Audience Engagement

VIDEO: CKNW

Social media drives listener engagement

Radio Everywhere

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Source: Corus data Oct 2014 vs. Oct 2013

Corus Radio Delivers Digital Growth

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• 5

10 Unique Users Visits Page Views 2013 2014

+102% +41% +65%

Millions

NIELSEN AUDIO DATA CONSUMER DATA

Nielsen’s New Platform Allows Advertisers to Calculate ROI

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Nielsen’s Study has Broad Category Coverage

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Consumer Packaged Goods Media Travel Retail

Entertainment Restaurant Telecom

Results Demonstrate Radio’s Significant ROI

For every $1 spent on radio, advertisers achieved over $6 of incremental sales

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Radio produced a 16% conversion rate for promos For a big box retailer, radio increased retention by up to 11%

Consumer Packaged Goods Media Retail

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• Investing in programming
• Leveraging SoCast
• Sharing Radio ROI and Nielsen

Catalina research with advertisers

Corus Radio’s Focus

Tom Peddie

Executive Vice President, Chief Financial Officer

EBITDA $300 - $320 million Free Cash Flow $180 million

Fiscal 2015 Guidance

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Corus Delivers Strong Free Cash Flow

• Delivered $175M in

Free Cash Flow for fiscal 2014

• Annual Capital

Expenditures of $20M - $25M in fiscal 2015

• No significant

capital investment

• n horizon

*Free Cash Flow normalized for business combinations, fiscals 2010-2011 adjusted for continuing operations and reflect investment in Corus Quay

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Corus Returns Cash to Shareholders

Annual Dividend Payout History

For the fiscal years ended August 31 ($CDN per Class B Share, Split Adjusted)

• Attractive dividend

yield of ~5%

• Dividend increased

6.9% to $1.09 per Class B Share in fiscal 2014

• 52% of fiscal 2014

Free Cash Flow returned to shareholders

Dividend as % of Free Cash Flow 135

A Strong Foundation for Growth

Great portfolio of assets Experienced, focused leadership team Strategic investments for growth Committed to shareholder value

• Superior margins
• Compelling Free Cash Flow
• Attractive dividend yield
• Well-positioned
• Strong operating leverage on incremental revenue

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John Cassaday

President and Chief Executive Officer

Q & A