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Bank of America 2007 Credit Conference Orlando, Florida December 2-4, 2007.

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Presentation on theme: "Bank of America 2007 Credit Conference Orlando, Florida December 2-4, 2007."— Presentation transcript:

1 Bank of America 2007 Credit Conference Orlando, Florida December 2-4, 2007

2 / 2 This presentation contains forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause Quebecor Media Inc.s (Quebecor Media, QMI or the Company) 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. Unless noted otherwise, all dollars are expressed in Canadian dollars. LTM results are for the twelve months ended September 30, 2007. Forward Looking Statements

3 / 3 Management Pierre Karl PéladeauChief Executive Officer, Quebecor Media Inc. Jean-François PruneauTreasurer, Quebecor Media Inc.

4 / 4 Key Highlights Strong Brand Names with Leading Market Positions Differentiated Bundled Product Offerings Proven Track Record of Managing Growth Stable and Diversified Cash Flow Generation Experienced Management Team

5 / 5 Corporate Structure Notes:Segmented revenues include inter-company revenues. Segmented EBITDA excludes head office. (1) Pro Forma for Osprey Media acquisition. (C$ in millions) 54.7% Inc. 45.3% 45% Economic 99% Voting 100% LTM Revenue : (1) $3,449 LTM EBITDA : (1) 964 LTM Revenue: $1,488 LTM EBITDA: 607 LTM Revenue: $932 LTM EBITDA: 203 LTM Revenue: $411 LTM EBITDA: 56 LTM Revenue: $483 LTM EBITDA: 42 #1 pay television operator in Quebec; #3 cable operator in Canada; #1 video store chain in Quebec Largest newspaper publisher in Quebec; second largest in Canada 100% Book Retailing New Media Largest French language broadcaster and magazine publisher in Quebec and in North America LTM Revenue: $228 LTM EBITDA: 55 Leading publisher of community newspapers in Ontario 100%

6 / 6 Quebecor Media: Tremendous shift in Value Perception Quebecor Medias premium portfolio of properties now accounts for more than 95% of Quebecor Inc.s value Notes: Assuming 100% of holding company discount attributed to QMI value QWIs weight % of QI value QMIs weight

7 / 7 Leading Market Positions Set of leading media properties in Quebec and national presence allows Quebecor Media to maximize its reach National Presence #1 Newspaper publisher Leading content-focused national and local Internet portals 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

8 / 8 QMI Diversified Financial Profile Cable 63.0% Newspapers 26.8% Leisure and Entertainment 2.8% Broadcasting 5.8% Corporate & Other 1.6% LTM EBITDA (1) LTM Revenue (1) Revenues (1) = $3.4 billion Cable 43.1% Newspapers 33.6% Leisure and Entertainment 9.6% Broadcasting 11.9% Other & Intersegment 1.8% (1) Pro Forma for Osprey Media acquisition. EBITDA (1) = $964 million

9 / 9 Strategic Focus Execute residential and mobile telephony strategy Integrate Osprey Media and maximize synergies Implement integrated Internet and multimedia strategy Improve productivity Generate Free Cash Flow Target accretive acquisitions in core business segments

10 / 10 Recent Refinancing On October 5, 2007, QMI issued US$700M of 7 ¾% Senior Unsecured Notes maturing in 2016 at a price of 93.75% of par (Yield of 8.81%) Continued to opportunistically access capital markets Five times oversubscribed on original issue size Upsized from US$450M Proceeds were used to: Repay the bridge facility in respect of the acquisition of Osprey Repay the Sun Media Term Loan B and related cross-currency hedging agreements Concurrent amendments of Osprey and Sun Medias credit facilities to enhance liquidity: Extends Sun Media's Revolver and Term Loan C maturities to 2012 Enhance Osprey and Sun Medias ability to upstream funds to Parent –Improving liquidity to service holdco debt


12 / 12 Leading Canadian Cable Operator -1,616K basic subs (720K digital subs) as of Sept 30 -Fastest growing digital TV provider in Canada (cable or satellite) during LTM -Superior offering including VOD and SVOD Cable TV -899K cable modem subs as of Sept 30 -19.2% cable Internet subscriber growth during LTM -Highest speed in its market -Currently testing wideband technology (speeds up to 100Mbps) Internet -574K subs as of Sept 30 -Achieved penetration of 35.5% of basic subs -Strong lift effect for other services -Hybrid VoIP telephony service Telephony -Launched in Q3-2006 -Completed Videotron bundling offer -ARPU above initial projections -Operates under a MVNO strategy (white label) utilizing Rogers wireless network Wireless Quadruple Play Videotron continues to lead the industry in new service deployment.

13 / 13 Robust new service deployment and focus on customer service have led to strong financial performance Strong Financial Performance Reported EBITDA Note:Pro Forma Vidéotron Telecom. Reported Revenue CAGR = 21.8% CAGR = 15.6%

14 / 14 2003 Growing Basic Cable Customer Base Videotron exhibits the highest growth in the industry in terms of basic cable customers Videotron has realized nine consecutive quarters of positive net adds and improved momentum since the launch of telephony service Number of Basic Cable Customers Launch of Telephony 200420052006 2007

15 / 15 2002 20032004 2005 20062007 Videotron CAGR = 38% Videotron CAGR = 26% Cable Modem Internet CustomersCable Digital TV Customers Digital Services Subscriber Growth Videotron is the fastest growing Canadian cable digital TV and cable modem Internet service provider Source: Videotron and company reports. 2002 20032004 2005 20062007

16 / 16 Cablevision Rogers Insight VideotronShaw ComcastCharter Cogeco (1) Mediacom Significant Potential for Increased Penetration Internet Penetration of Homes PassedDigital Penetration of Basic Subscribers Videotron – Current (09/30/07) Videotron – 1 year ago (09/30/06) Videotron – Current (09/30/07) Videotron – 1 year ago (09/30/06) Source: Company reports and press releases. Data reflects most recent public filing (1) Represents Canadian operations. Cablevision Rogers Insight ComcastMediacom ShawVideotron Cogeco (1) Charter

17 / 17 Strong Residential Telephony Momentum As of September 30, 2007, the service was available to 98% of Videotrons service area Penetration of basic cable subsLift Effect Rollout 60+% lift experienced (more than one new product) in Q3 07 34% new customers in Q3 07 97% taking more than 1 product 68% taking all three 200520062007

18 / 18 New product launches, strong demand and focus on customer service has allowed Videotron to exhibit a 10.8% CAGR in its ARPU since 2001 Net Total ARPU Source: Videotron (ARPU excludes accounting changes relating to installation revenues starting Q2-04). Growing ARPU 01-04 CAGR = 7.0% 2001 2002 2003 2004 2005 2006 05-LQtr CAGR = 16.1% 2007

19 / 19 3G Project Videotron will participate in the upcoming AWS auction if the following conditions are met : 1. Set aside spectrum for new players 2. Mandatory tower sharing 3. Mandatory roaming and regulated roaming pricing Investments expected to reach 500 M$ over three years Benefits expected: Increased flexibility to: – Provide new services – Offer better packages – Establish pricing strategies Ability to leverage content


21 / 21 Nationwide Presence and Strategically Clustered 255 Community Newspapers and Specialty Publications 197 Sun Media 58 Osprey 8 Paid Urban Dailies + 7 Free Commuter Dailies Nationwide presence covering key markets offers national advertising and distribution solutions Clustering provides significant cost efficiencies and opportunities for bundled advertising packages Acquisition of Osprey Media creates the #1 newspaper publisher in Canada and provides a strong fit with Sun Media – Osprey Medias community newspaper focus and limited geographic overlap increases stability and diversification of Sun Media asset portfolio

22 / 22 Acquisition of Osprey Media The Transaction Acquired Osprey Media Income Fund at a cash price of C$8.45 per unit Valued Osprey Media at approximately C$573 million (including debt) Osprey Media Income Fund Leading publisher of community newspapers in Ontario, Canada Strong portfolio of 53 daily and non-daily newspapers publications, together with shopping guides, magazines and other publications LTM revenue and EBITDA of $228 million and $55 million, respectively Strategic Rationale Creates the #1 newspaper publisher in Canada (based on circulation) and increases QMIs scale in the population-dense Ontario market Operating efficiencies through sharing of management, production, printing, best practices and distribution

23 / 23 Strong and Established Newspaper Franchise Urban Daily Publications Avg. Daily Circulation (2) Weekly Readership (3) Notes: (1) Based on paid circulation data published by the Audit Bureau of Circulations in September 2006 with respect to non-national newspapers in each market. (2)Circulation data (Mon-Fri) ABC Fas-Fax 6 mos ending September 2007;Toronto, Calgary, Edmonton Suns 6 mos ending March 31/07 (3) Source: NADbank 2006 study; 7-day CUME readership, Adults 18+ Market Position (1) Year Founded A majority of Sun Medias and Ospreys community newspapers hold a #1 market position in their markets Le Journal de Montréal1257.01,197.21964 The Toronto Sun2179.31,768.51971 Le Journal de Québec1104.5338.31967 The London Free Press182.3252.61849 The Edmonton Sun266.1371.01978 The Calgary Sun259.2371.91980 The Ottawa Sun250.3239.31988 The Winnipeg Sun239.0236.51980 Total 837.74,775 (in 000s)

24 / 24 Robust Market Share Market Share* QMI has become the largest newspaper publisher in Canada following the acquisition of Osprey Media All urban daily newspapers rank first or second in their markets (1) Urban Dailies ROP Linage Notes: CNA December reports from 2000 to 2006 and September 2007. * Market share (paid dailies) vs. competing broadsheets (including The Globe and Mail). (1) In terms of weekly paid circulation.

25 / 25 Solid Market Reception for Free Dailies Source : NADbank 2006 Study; Montreal CMA, Toronto CMA, Vancouver CMA. CCAB for the six months ending March 2007 (Mtl), September 2006 (Toronto and Vancouver). * As per internal sources. Creating a well respected national free-daily newspaper brand with the recent launches of Ottawa, Edmonton and Calgary 24 hours reaches 763,600 adults 18+ in Canada's three largest markets 24 hours Toronto and 24 heures Montréal showed a higher growth than Metro in the latest NADbank study 24 hours Vancouver is a strong #1 in both readership and circulation amongst free dailies Free dailies enhance bundled advertising offering Recent Launches

26 / 26 Sun Media and Osprey have continued to deliver industry leading margins despite increased costs from new free dailies (at Sun) and higher raw material costs Synergies and new presses in Mirabel and Islington should provide additional cost savings Maintained Strong Margins * As of September, 2007; ** As of July 30, 2007; *** As of August 31, 2007. Notes:Torstar - Star Media and Metroland Media segments GTC - Media segment. CanWest - Newspaper segment Sun Media and Osprey EBITDA MarginsPeer Comparison (LTM) 24.3%


28 / 28 Leading Market Share French-language TV Market Share Financial performance Consistently delivering strong market share despite increased fragmentation Source:Audimétrie BBM; Monday - Sunday, 2 years + August 27 – October 21, 2007

29 Other Businesses

30 / 30 Other Businesses Leisure & Entertainment Revenue: $332 EBITDA:$27 Continued growth in textbook and retail sales 9-month operating income increased by 80% on a year-over- year basis Internet / Portals Revenue: $70 EBITDA: $9 Continued strong performance of general and special-interest portals passed the 2-million member mark Focus on enriching content and launching value-added services Investments in Web 2.0 acquisition in Q3-07 Jan. 2007 content deal with Rogers Publishing Ltd. Sold Progisia on June 30, 2007, a non-strategic division Interactive Technologies and Communications Revenue: $82 EBITDA:$6 Continued growth due to business development in the Canadian, European and Asian markets more than offset the decline in the US Q3-07 revenue growth of 11% mainly due to internal growth Divisions / Companies Key LTM Stats ($ mm) Commentary

31 Financial Highlights

32 / 32 QMI – Financial Performance (1)Including Videotron Telecom (2)Including Osprey Media since August 3, 2007 (3)Excluding Progisia (4)TVA and Nurun

33 / 33 Videotron - High Growth Profile Adjusted LTM EBITDA growth Videotron's high growth profile remains a significant driver in the value of QMI Source: Company reports Notes: EBITDA for Videotron, including Videotron Telecom and excluding video stores and La Sette EBITDA for Rogers Cable, including management fees and excluding video stores EBITDA for Shaw Communications, excluding Star Choice and Satellite EBITDA for Canadian operations of Cogeco Cable only 2003 2004 2005 20062007

34 / 34 Cash Flow Generation QMIs intense focus on profitable growth, cost containment and opportunistic refinancings has resulted in improvements in EBITDA and Free Cash Flow Press investment projects at Newspapers impacted free cash flow; recovery underway QMI and its wholly-owned subsidiaries do not expect to pay income taxes before 2009, enhancing QMIs cash flow profile Note: Free Cash Flow is defined as EBITDA, less interest expense, less cash taxes, less Capex. * Includes Vidéotron Telecom, with the exception of 2001. Cable (EBITDA – Capex)*Newspapers (EBITDA – Capex) QMI Consolidated Free Cash Flow Average = $ 135

35 / 35 Solid EBITDA growth and repayment of debt from free cash flow has allowed significant improvement of leverage statistics Osprey Media acquisition had no material impact QMI Consolidated Leverage Ratio Leverage Note: Debt including swaps fair market value, as per Credit Agreement. * Q3-2007 pro forma 12 months of contribution from Osprey

36 Bank of America 2007 Credit Conference Orlando, Florida December 2-4, 2007

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