Investor Presentation January 24, 2019

Transcription

1 Investor Presentation January 24, 2019

2 Safe Harbour Disclosure: Forward-looking Information 2

3 Leading Canadian Media and Content Company 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 3

4 Media and Content Powerhouse 4

5 Deep Relationships with World-Class Partners 5

6 Women as a % of Adults 65% 60% 55% 50% 45% 40% 35% Corus Delivers Coveted Audiences Corus Specialty television is clearly differentiated, delivering more women in large households with larger basket sizes than any other media company in Canada Women; Small Household Single Women Women; Large Household Moms Index of Women in Large Households Single Men Men; Small Household Dads Men; Large Household Source: Numeris - TV Meter Consolidated Fall 2018 STD (8/27/2018 to 10/28/2018), Total Canada, M-Su 2a-2a. Female skew based on % of Female of Adults Bubble size based on A25-54 Average Minute Audience. Horizontal axis position based on Females in Large Households (5+) as a percentage of total Adult audience indexed to the population base. Specialty Stations ONLY

7 Financial Profile As at November 30, 2018 Total Assets Long-term Debt Outstanding Class B Shares $5.0 billion $1.9 billion million Fiscal Business Segment Revenues Fiscal Sources of Revenue Fiscal Business Segment Profit 2 1. For the year ended August 31, Excludes unallocated corporate costs 7

8 Fiscal 2019: Continued Strategic Discipline Strategic Priorities Diversify revenue base Optimize core business Diligent cost control Deliver strong free cash flow Delever balance sheet 8

9 Evolving How Television Advertising is Sold Integration of privacy compliant audience segmentation data into advertiser campaigns continues to gain traction Dynamic Ad Insertion (DAI) capabilities expected to accelerate monetization of Video-on-Demand / provide new opportunities for advertisers Working towards full scale launch of automated audience-based buying technology which is expected to drive greater efficiency and improve ease of transacting Enhanced data-driven solutions provide compelling customer value proposition 9

10 Global Delivers Great Content 10

11 Specialty Portfolio Delivers Great Content 11

12 Engaging Our Audiences 12

13 Follow Viewers and Listeners on all Platforms Strategically acquire new streaming rights to provide increased value for distribution partners and subscribers Since launch, views on Rogers have nearly doubled Extend reach of powerful brands across platforms GlobalGo delivers ~ 1.9 million video views each month 1 Globalnews.ca reaches ~12.4 million unique visitors/month 2 Engage audiences across emerging platforms such as Social and Podcasting so.da is a new full-service digital advertising agency CuriousCast averages over 1 million downloads per month of its 35+ shows 3 1. Source: Adobe Analytics, 3-month average ended September Source: comscore Media Metrix, Multi-Platform data, 3-month average ended August 2018, Base: Total Canada, All locations, 2+ digital audience 3. Source: Omny Studio Report (June 2018 August 2018) Expanding multi-platform content distribution capabilities 13

14 Leverage the Power of Local Revenue, content and cost benefits realized in large local markets 14

15 Own and Control More Content Required Canadian content spending enables Global programming asset sales 15

16 Revenue Diversification is On Track 16

17 Established Global Content Provider 17

18 Millions ($CDN) Corus Delivers Strong Free Cash Flow Free Cash Flow 1 Delivered $349 million in free cash flow for fiscal Strong segment profit / free cash flow conversion Revised Capital Allocation Policy for fiscal 2019 Low capital intensity Fiscal 2016 reflects impact of one-time costs from the acquisition of Shaw Media Inc. on April 1,

19 Fiscal 2019 Capital Allocation Policy Investments to advance strategic priorities Ad Tech + Data Analytics Revenue Diversification Own More Content 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 Redeployment of capital primarily directed to debt repayment 19

20 Significant Progress on Delevering 20

21 Build Long-Term Stability and Resilience 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 and Toon Boom 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 21

22 Q&A