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 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
Media and Content Powerhouse 4
Deep Relationships with World-Class Partners 5
Active Pursuit of Portfolio Optimization Strategy New Channel Brand Innovative Partnership • Launched on April 1, 2019 in Canada, Adult Swim is already top 10 1 with • Multi- platform channel deal with Crown Media’s iconic Hallmark Male Millennials Channel is contributing to audience growth on W Network 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 6
Financial Profile As at Total Assets Long-term Debt Outstanding Class B Shares May 31, 2019 $4.8 billion $1.7 billion 208.6 million Fiscal 2018 1 Fiscal 2018 1 Fiscal 2018 1 Business Segment Profit 2 Sources of Revenue Business Segment Revenues 1. For the year ended August 31, 2018 2. Excludes unallocated corporate costs 7
Ongoing Strategic Discipline • Optimize core business • Diversify revenue base • Diligent cost control • Deliver strong free cash flow • Delever balance sheet 8 8
Evolving How Television Advertising is Sold Common Audience Segments Audience segment targeting critical to the future of TV 9
Canadian Media Attribution Study Findings Whitepaper and presentation available at https://thinktv.ca/research/Canadian-media-attribution-study/ Advertising dollars shifting back to Television from Digital 10
New Platforms and New Audiences Launched on Amazon Prime Video Channels in Canada – June 2019 11
Global TV Delivers Premium Content Everywhere Mobile Apps Web Connected TVs Actively Pursuing Ad-Supported Video on Demand Opportunities 12
Expanding Short Form Content Offering Diversification initiatives to attract more Millennial audiences 13
Own and Control More Content Leveraging our required Canadian content spending to grow international content sales 14 14
Revenue Diversification is On Track Strong line-up In-house properties developed into new series 15 1 series in fiscal 2019, up from nine 2 series in fiscal 2018 1 Delivered and in production 2 Delivered 15 15
Established Global Content Provider $ave My Reno Backyard Builds Home to Win for the Holidays $ave My Reno 19 series in fiscal 2020, up from 11 series in fiscal 2019 16
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. 17
Capital Allocation Policy • Delever to under 3.0 times net • Investments to advance • Annual dividend rate of debt to segment profit to create strategic priorities $0.24/Class B share • Ad Tech + Data Analytics financial flexibility • Revenue Diversification • Dividend paid quarterly, subject to • Own More Content approval of Board of Directors Capital primarily directed to debt repayment 18
Significant Progress on De-leveraging 19
Building 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, 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 20
Q&A
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