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Aucun titre de diapositive

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24 Hours have a higher circulation than Metro in each of Canada's top 3 markets ... Introduce 7-day home delivery for Toronto Sun ... – PowerPoint PPT presentation

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Title: Aucun titre de diapositive


1
Investor Presentation June 2006
2
Forward Looking Statements
  • This presentation contains forward-looking
    statements, which are subject to known and
    unknown risks and uncertainties that could cause
    the Company's actual results to differ materially
    from those set forth in the forward-looking
    statements. These risks include changes in
    customer demand for the Company's products,
    changes in raw material and equipment costs and
    availability, seasonal fluctuations in customer
    orders, pricing actions by competitors, and
    general changes in the economic environment.
  • Currency
  • Unless noted otherwise, all dollars are expressed
    in Canadian dollars.
  • LTM Results are for the period ended March 31,
    2006

3
Management Attendee
  • Mark DSouza Vice President and Treasurer -
    QI
  • Vice President, Finance - QMI
  • Jean-François Pruneau Treasurer - QMI

4
Corporate Structure
26.2
54.7
Caisse de Dépôt et Placement du Québec
Public
45.3
73.8
  • One of the worlds largest commercial printers
  • Operating in 17 countries
  • LTM revenues of 7.4 billion
  • () Excluding 12,500,000 Subordinate Voting
    Shares
  • pursuant to exchangeable debentures issued by
  • Quebecor Inc. in February 2001.
  • One of the largest media company in Canada and
    the largest in Quebec
  • Leading market positions in cable, newspaper
    publishing, broadcasting, leisure and
    entertainment retail products, books and magazine
    publishing, Internet and Interactive technologies
    communications
  • LTM revenues of 2.8 billion

5
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6
Leading Market Positions
  • Set of dominant media properties in Quebec and
    national presence allows Quebecor Media to
    maximize its reach

Leading Market Position in Quebec
1 Newspaper publisher 1 Cable operator 1
Television broadcaster 1 Magazine publisher 1
Video store chain 1 French-music
producer/distributor 1 French-language book
publisher/distributor 1 Employment and career
portal
National Presence
2 Newspaper publisher Leading content-focused
national and local Internet portals
7
QMI Strategic Focus
  • Execute residential and mobile telephony
    strategy
  • Generate Free Cash Flow
  • Implement integrated Internet strategy
  • Improve productivity
  • Target accretive acquisitions in core business
    segments

8
Integrated Interactive Media Strategy
  • Digitalization of content and high-speed
    connectivity allows the Web to
  • become a new media interface
  • New generations of consumers want interactive
    content
  • Advertising revenues slowly but surely migrating
    to Internet
  • QMI is being proactive
  • Appointed a Vice-President, Interactive Media
  • Increasing Internet initiatives on an integrated
    basis
  • QMI is well positioned
  • Network High Speed Internet at Videotron
  • Content Sun Medias newspapers, TVAs TV and
    magazine content, Archambaults music content,
    SuperClub Videotrons and TVA films video
    content
  • Integrator of content Canoe

9
Optimizing QMIs Capital Structure
  • QMI continues to take advantage of favorable
    credit momentum and market conditions to meet its
    capital structure objectives.

Objectives
Refinancing Impact
10
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11
Nationwide Presence and Strategically Clustered
  • Nationwide presence covering key markets offers
    national advertising and distribution solutions
  • Clustering provides significant cost efficiencies
    and opportunities for bundled advertising packages

8 Paid Urban Dailies 3 Free Commuter Dailies
199 Community Newspapers and Specialty
Publications
12
Strong and Established Newspaper Franchise
(in 000s)
Urban Daily Publications
Avg. Daily Circulation
Weekly Readership
Market Position
Year Founded
Le Journal de Montréal 1 268.9
1,189.7 1964 The Toronto Sun 2 182.0
1,806.6 (a) 1971 Le Journal de
Québec 1 103.5 342.4 1967 The London Free
Press 1 87.6 262.2 1849 The Edmonton Sun 2
70.2 381.6 1978 The Calgary Sun 2 62.7
381.2 1980 The Ottawa Sun 2 50.9 276.0
1988 The Winnipeg Sun 2 39.5 226.2
1980 Total 865.3 4,865.9
Note Circulation data ABC Fas-Fax period ending
March 2006 period ending September 2005.
Readership based on 2005 NADbank Study 7-day
cumulative data. (a) Based on total readership,
whereas figures for other newspapers reflect
local market (CMA) only.
  • Sun Medias community newspapers are often the
    only general circulation newspapers published in
    their respective markets the majority hold a 1
    market position

13
Strong and Growing Market Share
  • Sun Media is the second largest newspaper
    publisher in Canada, with a 21.0 national market
    share (1)
  • All urban daily newspapers rank first or second
    in their markets (1)

Urban Dailies ROP Linage
Market Share
Notes CNA December reports from 2000 to 2005
and March 2006 Market share vs. competing
broadsheets (including The Globe and Mail). (1)
In terms of weekly paid circulation.
14
Demonstrated Financial Performance
Robust financial performance despite erosion of
circulation and launches of Free Dailies (3.8
EBITDA CAGR 1999 - LTM excluding the impact of
Free Dailies).
Reported EBITDA
Reported Revenue
Note Excludes discontinued operations.
Note Excludes discontinued operations.
15
Maintained Strong Margins
  • Sun Media has continued to deliver industry
    leading margins despite increased costs from new
    free dailies and higher raw material costs

Sun Media EBITDA Margin
Peer Comparison (LTM)
23.6
As of January 31, 2006. As of February 28,
2006. As of March 31, 2006 Notes
Torstar CanWest - Newspaper segment. GTC -
Media segment.
16
Strong Market Reception for Free Dailies
  • 24 Hours have a higher circulation than Metro in
    each of Canadas top 3 markets
  • 24 Hours in Toronto and Montreal showed a higher
    growth than Metro in the latest NADbank study
  • Vancouver 24 Hours is a strong 1 in both
    readership and circulation amongst free dailies
  • Confirms Sun Medias strategy and will translate
    into robust long-term return on its current
    investment

Source NADbank 2005 Study Montreal CMA,
Toronto CMA. NADbank 2005 Supplementary Study,
Vancouver CMA CCAB for the six months ending
March 2005. Distribution estimates.
17
New Press Projects
  • Total investment for QMI and Quebecor World of
    220 million
  • Reduce current 13 lines to 6 lines of Man Roland
    presses
  • Reduce paper width from 22 ¾ to 21 ½
  • New Ferag mailroom equipment
  • Located in Mirabel, Quebec and Islington, Ontario
  • Provide for additional colour revenues
  • Toronto Increase colour capacity from 48 pages
    to 64 pages (with a maximum of 96 pages)
  • Montreal Increase colour capacity from 48 pages
    to 96 pages (with a maximum of 128 pages)
  • Substantial operating savings expected
  • Labour force reduction, increase productivity,
    reduction in newsprint consumption
  • Targeted start-up
  • Toronto July 2007
  • Montreal April 2007 (partial implementation
    Summer 06)

18
Circulation Strategies
  • Sun Media is implementing various initiatives in
    order to stimulate circulation and increase
    revenues
  • Install additional boxes and dealer racks
  • Increase telemarketing to attract new customers
    and lengthen subscription terms
  • Invest in content and format ("star" columnists)
  • Reduce cover price in specific markets (25 in
    Ottawa and 50 in Toronto)
  • Introduce 7-day home delivery for Toronto Sun
  • Appointed Kin-Man Lee, former VP and Chief
    Financial Officer of Sun Media, as Publisher of
    Toronto Sun and Executive VP of Sun Media

19
Online Strategy
  • Consumers are increasingly relying on Internet
    as a primary source of information
  • Sun Medias online strategy includes redesign of
    Urban Dailies websites
  • Six Urban Daily websites redesigned in 2005 to
    reflect vibrant tabloid personality of Urban
    Dailies
  • In Q1-2006, unique visitors continued to grow
    sequentially
  • Online retail advertising revenues, a new revenue
    stream at Sun Media, more than doubled in Q1-2006
  • Priorities for 2006
  • Improve sites functionality to increase traffic
    (videos, blogs, e-mail alerts, etc.)
  • Protect and grow the classified franchise by
    integrating three verticals (Jobs, Cars, and Real
    Estate)

20
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21
Leading Canadian Cable Operator
  • 1,520K basic subs (512K digital subs) as of March
    31
  • Fastest growing basic and digital TV provider in
    Canada (cable or satellite) during LTM
  • Superior offering including VOD and SVOD
  • 682K cable modem subs as of March 31
  • Fastest growing cable Internet provider in Canada
    during LTM
  • Highest speed in its market
  • On February 20, 2006, launched a premium service
    at 16Mbps
  • Launched in H1-2005
  • Hybrid VoIP telephony service
  • 227K subs as of March 31
  • Integration of Vidéotron Telecom on January 1st,
    2006
  • Strong lift effect for other services
  • Will operate under a MVNO strategy (white
    label) utilizing Rogers Wireless network
  • Expected to be launched in H2-2006
  • Will complete Vidéotron bundling offer

Cable TV
Internet
Telephony
Wireless
Quadruple Play
Videotron continues to lead the industry in new
service deployment.
22
Strong Financial Performance
  • Robust new service deployment has led to strong
    financial performance.

Reported EBITDA
Reported Revenue
CAGR 16.0
CAGR 9.5
Note Pro Forma Videotron Telecom
23
Continued Momentum in Q1 2006 Subscriber Results
Q1 2006 subscriber results continue Videotrons
positive momentum and highlight success of
bundling strategy.
24
Growing Basic Cable Subscriber Base
Vidéotron has realized nine consecutive quarters
of positive net adds on an LTM basis (net adds of
13,900 subscribers in Q1 06) and improved
momentum since the launch of telephony service.
Net Change (LTM) in Cable TV Subscribers (000s)
65.0
IP telephony was launched in Q1-2005
2002
2003
2004
2005
2006
25
Digital Services Subscriber Growth
  • Videotron is the fastest growing Canadian cable
    digital TV and cable modem Internet service
    provider
  • Cable telephony launch and Bells recent
    anti-piracy measures have been followed by
    increased momentum for Videotrons digital
    services

Cable Modem Internet Customers
Cable Digital TV Customers
Videotron CAGR 28
Videotron CAGR 43
2002
2003
2004
2005
2002
2003
2004
2006
2005
2006
Source Videotron and Company Reports.
26
Significant Potential for Increased Penetration
Internet Penetration of Homes Passed
Digital Penetration of Basic Subscribers
Videotron Current (3/31/06)
Videotron Current (3/31/06)
Videotron 1 year ago (3/31/05)
Videotron 1 year ago (3/31/05)
Cablevision Rogers Cogeco
Insight Mediacom Shaw Videotron
Comcast Charter
Cablevision Comcast
Rogers Mediacom Shaw
Charter Insight Cogeco
Videotron
Source Company reports and press releases. Data
reflects most recent public filing.
27
Strong Residential Telephony Momentum
Telephony Subscribers
Roll-out Progress
  • Strong consumer reception
  • 47 lift experienced (more than one new product)
    in Q1 06
  • 24 new customers in Q1 06
  • 97 taking more than 1 product
  • 67 taking all three
  • (1) Includes some areas of North Shore.

2005
2006
28
Growing ARPU
Videotron has recorded a 9.0 CAGR in its ARPU
since 2001.
Net Total ARPU
CAGR 9.0
2001
2002
2003
2004
2005
2006
Source Vidéotron (ARPU excludes accounting
changes relating to installation revenues
starting Q2-04).
29
Bundling Results in Lower Churn
Monthly Churn (a)
2005
2004
2006
(a) Figures presented are monthly averages.
30
(No Transcript)
31
TVA - Leading Margins and Market Share
Peer Comparison (LTM)
French-language TV Market Share
Consistently delivering strong market share
despite increased fragmentation 8 of top 10
shows in Spring 2006 season
Industry leading margins
As at Febrary 28, 2006 Note TVA excludes Sun TV
Source Audimétrie BBM Monday - Sunday, 6am to
2am. 2 years
32
TVA Financial Performance
33
Protecting Leadership Position
  • Fragmentation of viewership is transforming
    fundamental principles
  • To reach viewers, need to be on different
    platforms
  • TVA is investing in Specialty Channels
  • Humour, Tapis Rouge and Télé-services to come
  • TVA s specialty channels posted a 28 Y-o-Y
    increase in profitability in Q1-2006
  • TVA is selling content to Videotron for its
    Video-on-Demand service
  • A new revenue opportunity for TVA
  • TVAs ultimate objective is to become a leading
    multimedia content provider

TVAs ownership in MenTV and Mystery is 51 and
50, respectively
34
Other Businesses Overview

35
Other Businesses
Divisions / Companies
Key LTM Stats ( mm)
Commentary
36
Canoe Key Piece of QMIs Internet Strategy
  • Quebecs leading Internet portals
  • General and special interests (Canoe, Jobboom,
    Réseau Contact, Autonet, Micasa)
  • Monthly reach of 31 in Canada (Source ComScore
    Media Metrix)
  • 6.5 million unique visitors in March 2006 (5.8
    million in March 2005)
  • 691 million page views in March 2006 (655 million
    in March 2005)
  • QMIs value should benefit from Canoes
    impressive growth

Note Excluding Progisia
37
Financial Highlights

38
QMI Financial Performance
Including Videotron Telecom
39
Free Cash Flow Growth
QMI Consolidated Free Cash Flow
  • QMIs intense focus on profitable growth and cost
    containment has resulted in significant
    improvements in EBITDA and Free Cash Flow
  • Current capex programs at Newspapers and Cable
    are expected to impact Free Cash Flow in the
    short-run significant growth is expected in the
    future

Cable Free Cash Flow
Newspapers Free Cash Flow
Note Free Cash Flow is defined as EBITDA, less
interest expense, less cash taxes, less Capex.
Includes Videotron Telecom, with the
exception of 2001
40
Videotron - High Growth Cable Company
New product launches and focus on customer
service are driving profitability
Growth in Adjusted LTM EBITDA
2003
2004
2005
2006
Source Company reports Notes EBITDA for
Videotron, including Videotron Telecom and
excluding video stores EBITDA for
Rogers Cable, including management fees and
excluding video stores EBITDA for
Shaw Communications, excluding Star Choice and
Satellite EBITDA for Cogeco Cable
41
Favorable Tax Position
  • QMI and its wholly-owned subsidiaries currently
    sit on a very favorable tax position
  • As a result, QMI and its wholly-owned
    subsidiaries do not expect to pay income taxes
    before the end of 2007
  • This enhances QMI's Free Cash Flow profile/outlook
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