Paul V. Godfrey President & Chief Executive Officer J.P. Morgan - PowerPoint PPT Presentation

Paul V. Godfrey President & Chief Executive Officer J.P. Morgan High Yield & Leveraged Finance Conference February 28, 2012

Forward-Looking Statements This presentation may include certain information that is “forward-looking information” under applicable Canadian securities laws and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others, competition from other newspapers and alternative forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities. For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion & analysis for the year ended August 31, 2011, which can be found on the Company’s website at www.postmedia.com , on SEDAR at www.sedar.com or on the SEC’s website at www.sec.gov. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates may differ materially from any such information and statements in this presentation. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements. Unless otherwise noted, all references to “$” are to Canadian dollars. 2

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Postmedia Network • Newspaper brands that reach as far back as 1778 • Daily newspapers, weekly community publications, magazines • Multiplatform content delivery – web, smart phone, tablet, print • 50+ destination websites – news, sports, entertainment, business • National News Service – approximately 1,000 journalists across the chain • Editorial services operation – pagination, sports agate, comics • Media monitoring B2B subscription service • Print and digital sales representation • Flyer distribution operations • Daily Deals Website 4

Well-Established and Trusted Brands • Postmedia’s newspaper brands are woven into the fabric of the communities they serve, some for over a century • 9 daily metropolitan newspapers, which are each #1 in the markets they serve » Brands include the Calgary Herald, Montreal Gazette and Vancouver Sun • The National Post, one of Canada’s two daily national newspapers, focused on key urban markets • 5 community mastheads, serving areas of Southwestern Ontario 5

Postmedia Network – Key Company Highlights • Largest publisher of English-language paid daily newspapers by circulation in Leading English news Canada with marquee brands source in its key markets • Postmedia’s metro daily newspapers are #1 English-language dailies in terms of reach and revenue in each of the markets they serve • Extensive portfolio of premium digital media and online assets Large and growing digital media and online business • Number of unique visitors to daily newspaper websites continues to grow • Multiple cost reduction initiatives successfully completed in 2010 and 2011 Significant cost-savings • Continue to implement additional cost-saving opportunities in 2012 opportunities • Attractive margins and modest capital expenditures drive strong free cash flow Strong free cash flow (1) • Enhanced stability through geographically diverse revenue base • Continued focus on online revenue growth and Digital First strategy Positioned for future • Cost initiatives position Postmedia to drive growth in profitability with economic growth recovery • Strong management team of experienced industry veterans Strong, well-respected • Board of Directors with extensive experience in the media sector management team (1) Represents a non-IFRS financial measure. Postmedia believes this measure is beneficial from the perspective of assessing the Company’s financial performance. However, non-IFRS financial measures do not have any standard definition prescribed under IFRS and as such may not be comparable to similar measures used by other companies. 6

Our Reach • Along with owned properties, Postmedia provides sales representation for other newspapers, community publications and online brands 5.3m 6.9m 3.2m 833k 2.0m Weekly Readers Monthly UV’s Weekly Readers Monthly Readers Monthly UV’s (NADbank 2010) (comScore (ComBase 08/09 & (PMB 2011F) (Omniture Sept 2011) 3mth avg. Nov 2011) internal estimates) Note: Numbers above represent Postmedia Network audiences and third party properties represented through advertising sales agreements. Total ‘net’ reach was achieved using internal calculations. 7

Industry and Competition

Canada/US Media Penetration Trends • Almost 3 out of 4 Canadian Adults 18+ read a daily newspaper each week vs. 57% in the US • Internet penetration is similar for both countries reaching 7 out 10 Adults • Two-thirds of Canadians own a mobile phone while three-quarters of Americans own mobile phones Media Penetration Trends Canada US Medium 2000 2005 2011 2000 2005 2011 Television** 97.9% 97.8% 95.1% 93.0% 94.0% 93.0% Radio** 89.2% 87.6% 82.2% 83.0% 84.0% 82.2% Magazine** 81.0% 79.0% 76.4% 91.0% 90.0% 89.0% Internet** 30.1% 55.1% 71.2% n/a 61.9% 72.2% Newspaper* - 78.0% 73.1% 69.0% 66.0% 56.6% Mobile Phones** 26.4% 46.5% 66.6% 38.0% 63.0% 75.0% Source: eMarketer, Global Media Intelligence Report: North America, October 2011 • Canadian Weekly newspaper penetration as per NADbank 2005, 2010 • ** Based on PMB 2000, 2005, 2011 9

Quarterly Revenue Trends • Compared to their U.S. counterparts, Canadian newspapers experienced more moderate revenue declines during the downturn and have seen positive revenue growth in the last four quarters • From Q4 ’07 to Q4 ’10, aggregate U.S. newspaper revenues faced a cumulative drop of ~30%, whereas aggregate Canadian newspaper revenues fell by ~5% over the same period Canadian & U.S. Newspaper YoY Revenue Growth 0.15 0.1 Average Revenue Growth 0.05 0 -0.05 -0.1 -0.15 -0.2 -0.25 -0.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 Canadian Newspapers 0.075 0.1281 0.0377 -0.04 -0.11 -0.126 -0.139 -0.059 0.0083 0.0123 0.0246 0.0271 0.0233 0.0475 0.0548 U.S. Newspapers -0.087 -0.108 -0.133 -0.16 -0.238 -0.236 -0.216 -0.139 -0.065 -0.04 -0.039 -0.041 -0.055 -0.047 -0.052 Source: Company filings. Note: Canadian Newspapers consist of reported newspaper segments of Postmedia, Quebecor, FP Newspapers, Glacier Media and Torstar (Star and Metroland). U.S. Newspapers consist of reported newspaper segments of Gannett, The New York Times, McClatchy, Lee Enterprises, The Washington Post and Media General. 10

#1 Reach of Newspaper Websites Newspaper Category Unique Visitors (000) – November 2011 (3-month avg.) Postmedia Newspapers 31% Reach 4,979 The Globe And Mail 3,870 Toronto Star 3,296 The New York Times Brand 2,262 • Postmedia newspapers reach 31% of all Transcontinental Digital Local 2,038 Canadians who visit newspaper websites Solutions Group – nearly 5 million monthly UVs Mail Online 2,033 • Postmedia newspaper website visitors up GUARDIAN.CO.UK 1,650 7.4% in Q1 USATODAY Sites 1,465 • Total network monthly UVs over 7 million Tribune Newspapers 1,203 TORONTOSUN.COM 1,193 Source: comScore, MediaMetrix., Total Canada, All Locations, Nov 2011 (3-month average – Sept/Oct/Nov ) 11