Investor Presentation May 2017

Transcription

1 Investor Presentation May 2017

2 Safe Harbour Disclosure - Forward-looking Statements 2

3 Leading Canadian Media and Content Company Great portfolio of assets Leader in Canadian broadcasting Globally recognized content business Experienced, focused leadership team Strong commitment to shareholder value Improved cost structure delivers superior margins Excellent operating leverage on incremental revenue Compelling free cash flow Attractive dividend yield Focus on reducing leverage 3

4 Media and Content Powerhouse 4

5 One Year Anniversary of the New Corus Ratings momentum driven by powerful brands and content Sequential improvement in TV advertising revenue Secured all major advertising agency agreements Targeted investments in advertising innovation New local advertising opportunities from combination of Radio, News and Local Global TV Improved cost structure resulting in strong margin expansion Continued investment to grow Nelvana and Corus Studios programming slate Focus on delivering value to shareholders Tracking ahead of goal to deliver $40-$50 million in annual cost savings within months of Shaw Media acquisition, capturing $45 million in annualized run-rate cost savings to-date Integration nearly complete, technology piece in progress and on schedule 5

6 Financial Profile of the New Corus Fiscal YTD Total Assets Long-Term Debt Outstanding Class B Shares $6.1 billion $2.1 billion million Fiscal 2017 YTD 1 Business Segment Revenues Radio 9% Fiscal 2017 YTD 1 - Sources of Revenue Other 4% Subscriber 30% Specialty/Conventional Television and Content Business 91% Advertising 66% 1. For the six months ended February 28,

7 Experienced Leadership Team Doug Murphy President and Chief Executive Officer Over 25 years in media and entertainment industries John Gossling Executive Vice President and Chief Financial Officer Over 25 years in media and communications industries Barbara Williams Executive Vice President and Chief Operating Officer Over 25 years in media industry Greg McLelland Executive Vice President and Chief Revenue Officer Over 25 years in media and technology industries 7

8 Our Strategic Priorities 8

9 Global Momentum Continues Into Q2 Global increased its presence in the Top 20 with new and proven hits Global delivered 9 of the top 20 shows vs. 5 of top 20 in prior year Strong mid-season premieres vs. Fall average NCIS and Bull rank as the top 2 dramas in total viewers (Ind. 2+) Source: Numeris TV Meter, Total Canada, Spring 17 rankers Jan2-Mar12/17 based on 3+ airings 9

10 Strong Ratings Performance Ranking based on Numeris TV Meter Q2 (11/28/2016 to 2/26/2017), Specialty Channels ex. Sports, Total Canada, Monday Sunday, 2 am 2 am, Average Minute Audience, Adults Ages Ranking based on Numeris TV Meter Q2 (11/28/2016 to 2/26/2017), Specialty Channels ex. Sports, Total Canada, Monday Sunday, 2 am 2 am, Average Minute Audience, Women Ages Ranking based on Numeris TV Meter Q2 (11/28/2016 to 2/26/2017), Specialty Channels ex. Sports, Total Canada, Monday Sunday, 2 am 2 am, Average Minute Audience, Kids Ages

11 60% 55% 50% 45% 40% 35% Corus Leads in Women Women; Small Household Single Women 65%Women as a % of Adults Women; Large Household Moms Single Men Men; Small Household Index of Women in Large Households Dads Men; Large Household Source: Numeris - TV Meter Consolidated (8/29/2016 to 4/23/2017), 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 Corus Specialty TV is clearly differentiated, delivering more women in large households with larger basket sizes than any other media company in Canada 11

12 Corus Advertising Innovation Roadmap Audience Addressable Programmatic Cross Platform Data Advertising Platform Execution Innovation roadmap informed by global best practices 12

13 Strategic Priorities Own and Control More Content 13

14 Strategic Priorities Own and Control More Content Major Properties Launching Fiscal 2017/2018 with Global Broadcasting Partners 14

15 Strategic Priorities Own and Control More Content Recent Expansion of Corus Advantage to Lifestyle Content Extends Global Presence 15

16 Fiscal 2017 Financial Priorities 1. Identify and capture all revenue and cost synergies, delivering $40-$50 million in cost savings within 18 to 24 months of the close of the Shaw Media acquisition 2. Deliver solid free cash flow, enabling prudent investments to advance our strategic priorities and reduction of our leverage to below 3.5x by the end of fiscal 2017 and below 3.0x by the end of fiscal Maintain our dividend of $1.14 per Class B Share 16

17 Millions ($CDN) Corus Delivers Strong Free Cash Flow Operating and Free Cash Flow Free Cash Flow Operating Cash Flow Delivered $188 million in Free 200 Cash Flow in fiscal , with significant increase expected in 150 fiscal Annual Capital Expenditures in the $30 million - $35 million 50 range Fiscal 2016 reflects impact of one-time costs from the acquisition of Shaw Media Inc. on April 1,

18 Corus Returns Cash to Shareholders Long-standing commitment to returning cash to shareholders Dividend of $1.14 per Class B Share maintained in fiscal 2017, supported by strong free cash flow Attractive dividend yield of ~9% Cash Dividend as % of Free Cash Flow (2) 33% 37% 37% 38% 48% 1. Reflects dividends paid on Class B non-voting shares, as reported 2. Reflects cash dividends and free cash flow, as reported 18

19 Strong Foundation for Growth Significant advancement of strategic priorities in year one as the new Corus Audience share gains driven by premium brands, content and talent Advertising innovation is gaining traction with clients Expanding content slate with great franchise potential Considerable progress in capturing cost synergies ahead of stated timeline, with $45 million in annualized savings realized to-date Committed to delivering solid free cash flow for strategic investment, maintenance of our dividend and delevering 19

20 Q&A