to view powerpoint presentation

November 30, 2011

SAFE HARBOUR DISCLOSURESAFE HARBOUR DISCLOSURETo the extent any statements made in this presentation contain information that is not historical; thesestatements are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements related to, among other things, our objectives, goals, strategies, intentions, plans, estimatesg , g g , j , g , g , , p ,and outlook and can generally be identified by the use of the words such as "believe", "anticipate", "expect","intend", "plan", "will", "may" and other similar expressions. In addition, any statements that refer toexpectations, projections or other characterizations of future events or circumstances are forward-lookingstatements. Although Corus believes that the expectations reflected in such forward-looking statements arereasonable, such statements involve risks and uncertainties and undue reliance should not be placed on suchstatements. Certain material factors or assumptions are applied in making forward-looking statements and

t l lt diff t i ll f th d i li d i h t t t I t t f t th tactual results may differ materially from those expressed or implied in such statements. Important factors thatcould cause actual results to differ materially from these expectations include, among other things: our ability toattract and retain advertising revenues; audience acceptance of our television programs and cable networks;our ability to recoup production costs, the availability of tax credits and the existence of co-production treaties;our ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) thatmay be presented to and pursued by us; conditions in the entertainment, information and communicationsind stries and technological de elopments therein changes in la s or reg lations or the interpretation orindustries and technological developments therein; changes in laws or regulations or the interpretation orapplication of those laws and regulations; our ability to integrate and realize anticipated benefits from ouracquisitions and to effectively manage our growth; our ability to successfully defend ourselves against litigationmatters arising out of the ordinary course of business; and changes in accounting standards. Additionalinformation about these factors and about the material assumptions underlying such forward-looking statementsmay be found in our Annual Information Form. Corus cautions that the foregoing list of important factors thatmay affect future results is not exhaustive When relying on our forward looking statements to make decisionsmay affect future results is not exhaustive. When relying on our forward-looking statements to make decisionswith respect to Corus, investors and others should carefully consider the foregoing factors and otheruncertainties and potential events. Unless otherwise required by applicable securities laws, we disclaim anyintention or obligation to publicly update or revise any forward-looking statements whether as a result of newinformation, events or circumstances that arises after the date thereof or otherwise.

2

INVESTOR DAYNOVEMBER 30, 2011

TECHNOLOGY IN ACTION

Vision: To be globally recognized as Canada’s most influential entertainment company

CORUS QUAY IS COMPLETE!CORUS QUAY IS COMPLETE!

• All Toronto staff and services are now operating from Corus Quay

• Major capital investment peaked in fiscal 2010 and 2011• More than 99% of building costs paid by end of fiscal 2011• Construction and fit-out costs 6% below budget at

approximately 95 million

• Technology upgrade cycle is complete and behind us nowgy pg y p

We have shifted our focus to maximizing the effectiveness of our state-of-the-art facility and our technology – enabling new sources of synergythe art facility and our technology enabling new sources of synergy,

process cost savings, new products and new service revenues

4

CORUS QUAY: INNOVATION IN ACTIONCORUS QUAY: INNOVATION IN ACTION

We asked a cross-section of Radio and Television senior managers four questions:

Caitlin O'DonovanDirector, TV Interactive

Dan Voglersenior managers four questions:

1. What does innovation in action mean to

Technical Director, InteractiveKaren Phillips

VP, Network Program Operations

Vic TorossianManager Business Systems

you?

2. How has Corus Quay affected your work?

Manager, Business SystemsGlen Pollock

Director, Operations, Production and AV

Andrea GabourieDirector, Live Action Production

J li Ed d

3. How has new technology affected your work?

Julie EdwardsVP, Facilities and Admin

Neal BilowDirector, Digital Asset Management Systems

Robyn Stevenson

4. What are you excited about?

yProject Manager, Non Linear

Bruce CowanDirector of Engineering

Mike ReidDirector, IT Operations

D F hDave FaroughVP, Brands, Programming & Content, Corus Radio

Elliott HurstCEO, Supernova 5

OUR INVESTMENT IN TECHNOLOGY CREATES OPERATIONAL EFFICIENCIESCREATES OPERATIONAL EFFICIENCIES

• IT-based infrastructure for broadcast and operations are in place L i l d i l i h C di• Lower capital and operational costs – with Canadian partners

• Automation is paying dividends in efficiency and consistency• Inbound and outbound digital content delivery

• Increased capacity with minimal additional operational costs• In fiscal 2011, Corus added nine HD signals, three new networks

and increased the delivery of non-linear materials by five times• The partner of choice for origination and broadcast services

6

NEW MEDIA:THREE FOCUSED SEGMENTS

• New Media encompasses our view of the changes occurring across the

THREE FOCUSED SEGMENTS

media landscape, enabled by technology

• New Media has become a core activity with three primary areas of focus

Build audiences for broadcast servicesIncrease engagement and ad effectiveness through social media and targeted advertisingProvide proprietary research on audiences and effective advertising

ENGAGEMENT

Support our distribution partners with new media products, enabling off-air consumption and “TV Everywhere”Distribute content directly through websites and applications on multiple platforms

DISTRIBUTION

License and build games applications and e-books that reflect our

multiple platformsLeverage our proprietary content library and unlock the value of the Nelvana assets

PRODUCTS

7

License and build games, applications and e books that reflect our brands and our intellectual propertyPRODUCTS

THE IMPACT OF OVER-THE-TOP

• Over-the-top (OTT) may be more additive than disruptive

THE IMPACT OF OVER-THE-TOP

• Pay television remains relevant to consumers and studios• Movie Central continues to grow; moderate subscriber losses are

economic rather than systemic• In the U.S., over-the-top services are finding their place in the overall

value chain

OTT i h h d th ti i i t• OTT services have reached the tipping pointBroadband penetration > 75%Internet video is now on televisionS ft d d i h d it ibl f thSoftware and new devices have made it accessible for the average consumerSimple pricing models vs. bundled cable bills

8

TELEVISION VALUE CHAINTELEVISION VALUE CHAIN

TV PREMIERE[Broadcast trigger]

PRE-PROMOTION

WEB/ONLINE

BDU: VOD, SVOD, BBOD, MOD

TRANSACTIONAL: DTO/DTR[Netflix, Consoles]

2-4 weeks prior

Next day/Month 1 Month 4Month 3 Month 5Month 2

PROMOTION [Netflix, Consoles]

Timeline:

TV: Other:

iTunes

Example: Nelvana Kids Content

9

OVER-THE-TOP HAS A PLACE IN THE VALUE CHAIN

• Content windowing, long used to control the progression of content

HAS A PLACE IN THE VALUE CHAIN

through viewing platforms and audiences, is changing but remains relevant across the value chain

• Other forms of “new” distribution such as premium TV, specialty TV, home video and download to own have found their niche in the contenthome video and download-to-own, have found their niche in the content value chain

• These distribution innovations have increased overall consumption of content and created value for content owners, broadcasters and ,distributors

• Studios and content owners clearly prefer this system to preserve value and maximize revenue

• Global over-the-top deals, while attractive in theory, will ultimately devalue content as a “one-size-fits-all” model doesn’t work with niche content

10

TV: Other:

RESPONDING TO OVER THE TOPRESPONDING TO OVER-THE-TOP

• Corus aggregates and curates content for consumers within well defined brands

• Contrast the brand implications – which one captures a niche demographic more effectively?

• Corus has some significant advantages in this competitive environment

• Unlike others, Corus owns content – more than 4,000 episodes in the Nelvana library aloneepisodes in the Nelvana library alone

• Unlike others, Corus already sells content into the over-the-top market as a hedge against rising content costscosts

• Unlike others, Corus can innovate with its fully owned global rights

11

CONCLUSIONS & SUMMARY

• The investment cycle for Corus Quay and new technology

CONCLUSIONS & SUMMARY

y y gyinfrastructure is complete

• We are leveraging this investment to open new markets, to reduce costs and to create enhanced value for our customerscosts and to create enhanced value for our customers

• Our New Media strategy balances the current ecosystem against future opportunities, building our brands while allowing us to innovate

• We understand the OTT market and are well positioned to respond and continue our growthand continue our growth

12

Technology remains a key driver of our business strategy

10 REASONS: CORUS RADIO

1. Virtually all of our Radio licences have been renewed for thel di

10 REASONS: CORUS RADIO

long or medium term

2. The Copyright Act amendments in Bill C-11 will reduce tariffli bilit f R di ti hil h i iliability for our Radio properties while enhancing piracyprotection for Nelvana products

3 CRTC approval of a change in our Winnipeg jazz radio format3. CRTC approval of a change in our Winnipeg jazz radio formatto a more popular music genre is expected

4 CRTC to examine the radio MLO (Multiple Licence Ownership)4. CRTC to examine the radio MLO (Multiple Licence Ownership)limits soon, establishing the potential for unlocking new valuein our AM licences

14

10 REASONS: CORUS TELEVISION10 REASONS: CORUS TELEVISION

5. Our Television licences have all been renewed for five years

6 TV group-based licensing decision will allow us to be strategic6. TV group based licensing decision will allow us to be strategicin our Canadian Content spending

7 Telelatino has favourable BDU linkage rules at a time when7. Telelatino has favourable BDU linkage rules, at a time whenthe Hispanic population is growing quickly

15

10 REASONS: POLICY CHANGES

8. Foreign ownership relaxation is on the Government’s agenda,

10 REASONS: POLICY CHANGES

which will serve to increase investor interest in Canadian mediacompanies

9. Based on two big wins by Corus, the Supreme Court ofCanada has expanded the flexibility of broadcasters in the areaof libel law, reducing the potential for liability and expanding ourability to report on matters of public interest

10. National and provincial government policy focus is shifting fromp g p y gincremental regulation to fostering quality and competitiveness.In this regard, a new Chair and four other new CRTCCommissioners will be appointed in 2012

16

CORUS RADIO PORTFOLIO

Growth through innovation and a focus on our audiences on a portfolio of stations

• Execution and Management of our portfolio of 37 stations• FM Music / AM News Talk• Opportunities for growth in fiscal 2012

• Digital Technology and New Media• Deepened consumer insight and listener trends• Streaming and the growth of mobile computing

18On Air, Online, On-Site

CORUS RADIO BRAND PORTFOLIO

19

CORUS RADIO

On Air

CORUS RADIO

On Air

OnlineOn-Site

Growth Through Innovation and a Focus on our Audiences20

CORUS RADIO

V i bl I ti L l M k t

• At any point in time, some stations may be in transition while others ti t f ll d li lid th d i

Variables Impacting Local Markets

continue to successfully deliver solid growth and margins• New market entrants• A re-format by a direct competitor• Macro changes in the music environment and listener tastesMacro changes in the music environment and listener tastes• The recent launch of PPM and the recalibration of market ratings

21

CYCLICAL NATURE OF GDP AND RADIO

10.0%

6.0%

8.0%

10.0%1998 2003

2010

0.0%

2.0%

4.0%0 0

% G

row

th

‐6.0%

‐4.0%

‐2.0%

GDP Radio

%

‐8.0%Source: World Bank, CRTC

22Radio Industry Revenue Mirrors GDP

PORTFOLIO MANAGEMENT

Hi h G th / M iN FM High Growth / Margin• Growing FM’s

High

New FMs

RevenueGrowth

• Small non metro markets

• FM market leaders

High Margin

L

• Stations in transitionTransition/Small Markets

• Secondary AM stations

• Small non-metro markets

• AM market leadersLow

23Audience Share

Low High

CASE STUDY ON EXECUTION TORONTO MARKET

24

MUSIC VARIABLE REVIEW 102 1 THE EDGE VS Q107102.1 THE EDGE VS. Q107

• Potential for Classic Rock, Modern Rock and Alternative Rock formats

• Musical “lanes” Q107 and 102.1 the Edge could dominate

• Distinctive positioning for the rock brands from each other

• Optimal music mix to ensure demographics are stacked effectivelyp g p y

Demographic Skew

Successfully Increase Market Share Adults 18 - 5425

CASE STUDY: 102.1 THE EDGE

OBJECTIVE

Grow 102 1 the Edge ratings

10

12

A18-54

Grow 102.1 the Edge ratings without impacting Q107

Successfully “stack” brands to maximize audience share

Audience Share Growth

6

8

10

A25-54

to maximize audience share

Strengthen the brand position of both FM’s via music offering

0

2

4

PPM

offering

0

26

Fall 2008 Fall 2009 Fall 2010

A WINNER INSIDE THE PORTFOLIO:102 1 THE EDGE102.1 THE EDGE

R th f 48%Revenue Growth Revenue growth of 48%Strong contribution to marginSustainable brand delivering predictable future cash flow

Revenue Growth

p ed ctab e utu e cas oSignificant Adult 18-54 audience growthDominant combined partner to Q107 d T t2009 2010 2011 2012e Q107 and Toronto revenue stream

Holding constant the results on the remaining stations in the portfolio, one station in a large market has the potential to deliver half of the expected growth in EBITDA

27Leverage of Larger Stations in the Top 5 Markets is Significant

CASE STUDY:VANCOUVER FM TURNAROUNDVANCOUVER FM TURNAROUND

Classic Rock 101 and 99.3 The FOX• Similar execution to Toronto FM’s• Research completed with direct intelligence on the brand

strengths of both stations• Currently in the marketing/promotion stage of developmentCurrently in the marketing/promotion stage of development

• Upside potential $6 million in revenue over the next 24 months • Projected strong contribution to margin as an FM station

28

CASE STUDY:VANCOUVER FM TURNAROUND

MARKETING STRATEGY

VANCOUVER FM TURNAROUND

• Use social media to keep stations top-of-mind by creating an evolving “story” in which audience can check back in as the day progresses

• Constantly communicate with audience both on and off the air• Broaden reach to Vancouver’s ethnically diverse population• Build a stronger Facebook community with “like” link capability

I Y T b h l h f ti ti i ti d• Increase YouTube channel reach for promotion participation and content sharing

• Promote the streaming radio player for access beyond conventional FM receivers

• Monitor blogsphere for insight into the stations’ discussion forums and comments on content

29Drive Deeper Listener Engagement Using Social Networking Tools


• As of July 2011, there were 881,200 Facebook users A18-54 who live within a 40 km radius of Vancouver

• 460,920 between the ages of 35-54A f 130 f i d• Average of 130 friends

• They create an average of 90 pieces of content each month• Connected to 80 community pages, groups, events, etc.

30Harness Listeners’ use of Social Media to Expand Reach


By tying the social network activities to the real time broadcast, our stations seek to reach out to listeners and drive tuning on an in-the-moment basis.

31Corus Drives Higher Listener Engagement Through the use of Social Media

EXTENDING REACH OF FMS IN THE PORTFOLIO

• Conventional marketing and advertising, while still important, needs to beConventional marketing and advertising, while still important, needs to be integrated with social media

• Extends reach• Provides a platform for higher listener engagement

• Content created on and off the air is becoming increasingly important for• Content created on and off the air is becoming increasingly important for differentiation and station development

• Extends the brand on the web• Provides on-demand content linked back to the station

32

CORUS RADIO BRAND PORTFOLIO

33

AM NEWS TALK SHARE INDEX

35.0%

25.0%

30.0%

35.0%

157 154256

15.0%

20.0%Audience Share

Revenue Share

130152

5.0%

10.0%

Revenue Share

0.0%

Toronto Vancouver Calgary Edmonton Winnipeg

34

Source: BBM Spring 2011 - PPM and Diary share of tuning Adults 18-54, Revenue TRAM / Corus estimates

AM NEWS TALK: STRONG LOCAL CONTENT

• Vancouver• Calgary• Edmonton• Winnipeg• Toronto• London• Hamilton

• Broader advertiser base• Higher composition of direct

retail vs. transactional agency• Robust feature availability

35News Talk Tends to be Less Sensitive to Cyclical Downturns

RADIO MARGIN IMPROVEMENT

Corus Radio Margins 2001 - 2011

30.0%

32.0%F’08

F’11

• F’07 CRTC Part 2 licence

24 0%

26.0%

28.0%• F 07 CRTC Part 2 licence

fee • F’08 Acquisition of 2

CanWest Stations

20.0%

22.0%

24.0%

F’07• F’09 Recession• F’11 Quebec Asset Sale

Recession

F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11

36Margins Continue to Improve as Expenses are Managed Effectively

RADIO OPPORTUNITIES: FISCAL 2012

Wi i FM li l• Winnipeg FM license approval • Change from smooth jazz to a more mainstream format• Effective sales and management team

St i f i th l t• Strong margin performance in the cluster

• Copyright Bill C-11P t ti l f $1 5 illi t $1 8 illi i t i• Potential for $1.5 million to $1.8 million in cost savings

• Strong cluster ratings• Toronto, London, Kitchener• Calgary, Edmonton

37

DEVELOPMENT OF INNOVATIVEDEVELOPMENT OF INNOVATIVE DIGITAL OPPORTUNITIES FOR

RADIORADIO

38Exciting Platforms and Opportunities for a Local Medium

DEVELOPMENT OPPORTUNITIES: ENGAGEMENT ON THE WEB

39

DEVELOPMENT OPPORTUNITIES: NEW REVENUE SOURCES ON THE WEB

40

CORUS RADIO:STREAMING AUDIO GROWTH

Streaming Growth 2002 ‐ 2011

5000

6000Hours of streaming (000’s)

3000

4000

5000FM AM

FM 64%AM 36%

1000

2000

0

Sep 2002 Sep 2006 Sep 2010

41

Streamed Audio Signal is the Regular On-Air Feed Encoded for PPM Recognition

DEVELOPMENT OPPORTUNITIES:ROBUST AUDIO PLAYERS

42Continuous Expansion of Access to Stations is Driving Audience Growth

PPM RATED TUNING: MOBILE APPS

Just under 400,000 downloads since fi t i t d d J 2009first introduced January 2009 Contributing to 7 million hours of streamed tuning monthly to Corus stationsAudio stream is the regular air feed encoded for PPM recognition

43Mobile Apps will Continue to Expand Access to our Stations

DIGITAL DEVELOPMENT FOR RADIO

REVENUE GROWTH

An emerging new revenue stream for radio brands

REVENUE GROWTH

A significant platform to enable development of custom solutions, which deepens our advertiser relationship

44Radio’s Hyper-local Focus Ensures Strong Unique Positioning in a Digital World

DEEPER ENGAGEMENT VIA NEW MEDIA CONTENT

Brand extensions in the social media environmentStrengthens the station image and encourages tuning back to the station g geither on air or through the web stream

45Provides Deeper Engagement with Listeners Through Web Content

DEEPER ENGAGEMENT: SOCIAL NETWORKING PLATFORMS

Artist development platform

Supernova.comArtist development platformEngaging music community at largeCanadian talent developmentTies back to station brand

Developing the space

MyCommunity.comDeveloping the spaceMore robust social networking capabilityFacebook sign-in

46

Branded under the Corus station

46

RADIO’S STRENGTHS

Hyper LocalDifferentiated medium from traditional media choices

Hyper LocalContent A daily part of listener media consumption

Reflects local community values

Positive Attributes for Advertisers

Demographic and geographic targeted medium Short-term spot market sensitive regarding price and availabilityInexpensive, quick and timely to produce

Strong FinancialConsistent cash flowPredictable growthg

Fundamentals Predictable growth Exceptional leverage on incremental revenue

47Short Term Downturns are Cyclical

WHAT OUR CLIENTS SAY

48

FINALLY - OPPORTUNITIES … IF

49If the Leafs were to win the Stanley Cup

OPPORTUNITIES … IF

4 complete series of 7 gamesP i ll $1 illi iPotentially $1 million in revenue50% increase in ratings in the playoff window

50If the Leafs were to win the Stanley Cup

INVESTOR DAYNOVEMBER 30, 2011

Corus Television

Vision: To be globally recognized as Canada’s most influential entertainment company

CORUS KIDS:THE “THREE THIRDS”THE “THREE THIRDS”

• In 2009, we introduced the notion of the “three thirds” at Corus Kids

52

CORUS TV:THE OVERALL TV PORTFOLIOTHE OVERALL TV PORTFOLIO

• Corus Television is diversified, international and growing• Unique among Canadian media investment alternativesUnique among Canadian media investment alternatives

53

CORUS TV:A HISTORY OF STRONG PERFORMANCE

• Corus Television – a powerful portfolio of media assets with an impressive track record of delivering results

A HISTORY OF STRONG PERFORMANCE

g

54

CORUS TV BUILDS GREAT BRANDS

• Corus Television has consistently demonstrated an ability to grow our brand portfolio• Indigenous brands: YTV, W Network, Movie Central

CORUS TV BUILDS GREAT BRANDS

• Brand stewards: HBO, Nickelodeon, OWN, ABC Spark

Corus Has Launched More Brands than the Entire Canadian Media Industry Combined 55

THREE VERTICALS DRIVE PORTFOLIO GROWTHPORTFOLIO GROWTH

KIDS FAMILY WOMEN

56

CORUS WOMEN’S PORTFOLIO: GROWING OUR AUDIENCESGROWING OUR AUDIENCES

Source: Nielsen Media Research, BBM NMR, BBM Canada - Broadcast weeks 1-52(53), W25-54, Average Minute Audience - M-Su 6a-6a/2a-2a.*W Movies effective 3/1/10 57

CORUS WOMEN’S PORTFOLIO: 10 YEARS OF GROWTH10 YEARS OF GROWTH

10 Years of Audience Revenue and Earnings Growth 58

W NETWORK

• Our powerhouse brand in the Women’s vertical• Weekday prime +16% vs year ago¹Weekday prime 16% vs. year ago

• Strength in Movies• #1 on Saturday nights with audiences amongst movie competitive set²• Successful addition of Sunday night movie block – audience growth +106% vs.

year ago³

• W Movies a sold out complement to W Network• W Movies a sold-out complement to W Network• Q1 audience +20% vs. year ago4

Sources:1 Nielsen Media Research BBM NMR, Weeks 1-11, W 25-54 AMA, M-F 6p-12a2 Nielsen Media Research BBM NMR, Weeks 1-8, W 25-54 AMA, M-F 6p-12a3 Nielsen Media Research BBM NMR, Weeks 1-8, W25-54 AMA, Sa 6p-12a4 Nielsen Media Research BBM NMR, Weeks 1-11, W 25-54, 24-hour AMA

59W Network Will Provide Continued Profit Growth

W 2.0 STRATEGY: BUILDING AND REFRESHINGBUILDING AND REFRESHING• W 2.0 strategy will drive future growth: big characters, high stakes, compelling stories

60

COSMOTV: PROFITABILITY ACHIEVED IN JUST THREE YEARSJUST THREE YEARS

• CosmoTV generated $10M in revenue in Fiscal 2011

• Significant audience growth• Digital ranking jumped to #3 vs. #6 a year ago (W18-49)¹• Q1 2011 audience growth has increased +13% vs. year ago²

• Successfully monetized audience growth: Q1 2011 ad revenue +83% vs. year ago

Cl l d fi d b d t i h d l d b d di it l di t ib ti• Clearly defined brand, strong programming schedule and broad digital distribution sets stage for continued growth

Sources: ¹ Nielsen Media Research BBM NMR, Weeks 1-11, W 18-49 AMA, 2a-2a² Nielsen Media Research BBM NMR, Weeks 1-11, W 18-49 AMA, 2a-2a

61

CosmoTV: A Case Study in Launching Brands

COSMOTV: BEST AMONG OUR PEER GROUP

CosmoTV Peer Group Comparison: Segment Profit

BEST AMONG OUR PEER GROUP

1.3 1.1

3.0

1 0

2.0

3.0

0.2

1.1

(0.8)

(2.0)

(1.0)

‐

1.0

Year 1 Year 2 Year 3 Year 4 Year 5

gmen

t Pro

fit ($

M)

(3.8)

(3.1)

(4.5)

(5.2)

(2.8)

(5.0)

(4.0)

(3.0)Seg

( )

(6.0)Diva Comedy Gold DejaView Mystery Cosmo

Sources: CRTC, Company

62CosmoTV has Reached Profitability Faster than any Channel in its Peer Group

OWN: OPRAH’S NEW HOME

• OWN is the only place to watch Oprah• Oprah’s Lifeclass (improved ratings

vs. same timeslot last year +317%) ¹• Highly anticipated launch of Oprah’s

N t Ch t J 1 2012Next Chapter – January 1, 2012• The Oprah Winfrey Show library

• Advertisers also leveraging the strength of Oprah

• Q1 ad revenue +138% vs. year ago• Premium priced servicep• Charter sponsor strategy continues to

pay dividends through long term deals

Source:¹ Nielsen Media Research BBM NMR, Oct 10-Nov 11, 2011, W-25-54

AMA vs. M-F 8-9.pm VIVA Fall 2010 AMA

63

OWN: OPRAH’S NEW HOME

• Exciting new content debuting continually throughout the year• The Rosie Show• Our America with Lisa Ling Season 2• Oprah’s Next Chapter – Steven Tyler • Oprah’s Master Class Season 2• America’s Money Class – Suzie OrmanAmerica s Money Class Suzie Orman

• Canadian content commissions consistently deliver audiences• Devil You Know

Ps chic In estigators• Psychic Investigators• Launching Million Dollar Neighbourhood -

Jan. 22, 2012

64

OWN’S EXTENSIVE USE OF SOCIAL MEDIA: DELIVERING LOYAL AUDIENCESDELIVERING LOYAL AUDIENCES

• Oprah fosters a sense of community with her fans by leveraging social media to drive engagement and loyalty:

• Oprah is an active Twitter user – 8.2M followers• Oprah has a personal Facebook page – 6.4M fans

• Oprah fans are highly engaged on social media, specifically Facebook:Oprah fans are highly engaged on social media, specifically Facebook:• Fans respond to posts as if they are speaking directly to Oprah• Fan community is highly active during Oprah’s live chats and “live event” show premieres • Fans are easily converted to OWN newsletter subscribers

e g Shania T ain contest prod ced a 94% con ersion rate• e.g. Shania Twain contest produced a 94% conversion rate

“Congratulations Oprah! They really got it right. Thank you for all of the POSITIVE you bring us all. I LUV OWN.”

Facebook Postings:

“Thank you for your Lifeclass, it’s changing my life ☺.”

“Hey Oprah thank you so much! I had forgotten how I loved to help others and that I do make a difference! Sometimes we forget that we do matter! We have to love ourselves before we can help others.”

65OWN Delivers an Engaged Audience for our Advertisers

THREE VERTICALS DRIVE PORTFOLIO GROWTHPORTFOLIO GROWTH

KIDS FAMILY WOMEN

66

CORUS DRIVES SALES THROUGH CONSUMER INSIGHTSCONSUMER INSIGHTS

Core verticals all supported with branded consumer insight initiatives that drive meaningful connections for both advertisers and our networks g

Focused on kids/tweens:• Their lives

Th l f i i• The value of co-viewing• Their role within the household

Focused on moms:• Parenting priorities• Parenting priorities• Relationship with kids and spouse• Categories where they are or expect

to be active

Focused on women:• Lifestyle priorities• Consumer habits and patterns

67

Consumer habits and patterns

YTV CONTINUES TO BE A LEADING NETWORK FOR MOMSNETWORK FOR MOMS

Source: BBM Canada TV Meter - Mon-Sun 24 hour

68YTV has been a Top 3 Canadian Specialty Service for 9 Straight Quarters

CO-VIEWING:ANOTHER CORUS INNOVATIONANOTHER CORUS INNOVATION

• Corus research insights substantiated by PPM rollout• Parents and kids watch TV together and it’s increasingParents and kids watch TV together…and it s increasing

Co-Viewing will Continue to Drive Revenues69

KIDS VERTICAL:GROWING STRONGER EVERY DAYGROWING STRONGER EVERY DAY

• Corus Kids portfolio offers unassailable reach• YTV Nickelodeon Treehouse TELETOON TELETOON RetroYTV, Nickelodeon, Treehouse, TELETOON, TELETOON Retro• YTV.com #1 in Kids reach¹

• Nickelodeon growth anticipated to continue in the coming year • Advertising and subscription revenue

• YTV ratings up 10% since Fall Schedule Launch²• Integrated campaigns with key children’s advertisers

Sources:¹ YTV.com #1 Broadcaster Kids site, comScore, Jan 2011-Oct 2011

Corus Kids is the First Pick Amongst Advertisers 70

YTV.com #1 Broadcaster Kids site, comScore, Jan 2011 Oct 2011² BBM Canada, Oct-Nov 6, 2011 ratings compared to Sept 2011 ratings, K6-11 and K2-11

CANCON DRIVING RATINGS ON YTV

Number of Canadian and Nelvana Properties That Appear in YTV’s Top 20 Properties for Each Broadcast Year

CANCON DRIVING RATINGS ON YTV

Source: BBM Canada TV Meter

71Corus Kids Delivers Audiences and ROI with Nelvana Properties

THE CORUS ADVANTAGE IS GROWINGTHE CORUS ADVANTAGE IS GROWING

• Corus Advantage strategically benefits Corus Kids networks and Nelvana Enterprises internationally, providing:p y, p g• Financing advantage• Canadian broadcaster synergy advantage• Ratings advantage

72

DISCIPLINED MANAGEMENT OF THE CONTENT PIPELINECONTENT PIPELINE

73

NELVANA: THE CREATIVE PIPELINE WHAT’S NEXT?WHAT’S NEXT?

74

BEYBLADE SUCCESS STORYBEYBLADE SUCCESS STORY

• Now over 120 Million Beyblade tops sold worldwide• Will have launched in over 60 countries by 2012• Will have launched in over 60 countries by 2012• Over 200 licensing and retail partners on board • Online multiplatform game drives toy sales and TV ratings• Beyblade World Championship set for March 2012 in Toronto at Corus Quay• Beyblade World Championship set for March 2012 in Toronto at Corus Quay• Partnership with Hasbro and d-rights/TakaraTOMY to create an evergreen franchise

75

NELVANA IN FRANCE:A BIG OPPORTUNITYA BIG OPPORTUNITY

• Strategic brand relationships forged with key broadcasters• TF1 – Babar and the Adventures of Badou Franklin and FriendsTF1 Babar and the Adventures of Badou, Franklin and Friends• Gulli – Beyblade, Bakugan

Regional Hits can be Very Lucrative76

NELVANA:DIGITAL VIDEO “LIFT OFF”DIGITAL VIDEO “LIFT OFF”

• Video streaming is unlocking more value in the Nelvana library• Kids category performs very wellKids category performs very well• Everyone wants Kids programming• Video growth trajectory +50%

77

CORUS TV:LAUNCHING OUR APPLICATIONS BUSINESSLAUNCHING OUR APPLICATIONS BUSINESS

• Applications focused on great Nelvana and Kids Can Press brands: Max & Ruby Beyblade Franklin Scaredy Squirrel SidekickMax & Ruby, Beyblade, Franklin, Scaredy Squirrel, Sidekick

• Video Player Applications• Treehouse• Franklin’s 25th Anniversary

• Gaming Applications • Property driven – 17 apps launching by

end of 2012E B k• E-Books

• Leveraging Kids Can Press assets• 14 e-books on five platforms currently – 60 to launch in F’12

• Provides new revenue streams on all major devices such as iPhone/iPad, Kobo,Provides new revenue streams on all major devices such as iPhone/iPad, Kobo, RIM Playbook, Xbox Live, Kindle Fire

• All three of these initiatives can be financed through Canadian benefits and tax credits

Targeting $2M EBITDA from Corus Applications in the Next 12 Months78

INTERNATIONAL CHANNEL VENTURESINTERNATIONAL CHANNEL VENTURES

• KidsCo provides Corus a significant foothold in the international marketplace• 98 countries98 countries• 18 languages• 12.7 million subscribers• Leverages Nelvana library

• qubo provides Corus an impressive foothold in the U.S. marketplace • 42 million homes• English and Spanish• NBCU Saturday morning block reaches 215,000 Kids 2-11• Leverages Nelvana library

• Discussions are active on the next iteration of these promising channel ventures• Corus increases equity• Simplification of partnerships

79International Kids Channel Ventures Provide Significant Option Value

PREMIUM TV – THE BEST PROPOSITIONPREMIUM TV THE BEST PROPOSITION

• Exclusive content and subscriber insights• Supply and depth of exclusive Hollywood blockbustersSupply and depth of exclusive Hollywood blockbusters• Exclusive HBO and Showtime output deals

• New technologies roll out• TV Everywhere • On-Demand • HD deployment

• Aggressive Marketing CampaignsQ1 O D d F i Q2 HD C i A i iti• Q1 On-Demand Freeview, Q2 HD Campaign – Acquisition

• NEW – Value Proposition Campaign – Retention• A united Premium Television ecosystem

• BDUs and Premium TV operators focused on growthBDUs and Premium TV operators focused on growth• Over-The-Top impact negligible

• Series success: Game of Thrones Season 1 – best performing HBO series since The Sopranos. Season 2 premiering in 2012.

Pay TV Remains the Best Customer Proposition80

CORUS TV – AFFILIATE UPDATECORUS TV AFFILIATE UPDATE

• 2011 was a transformational year for affiliates• Vertical integrationVertical integration• Digital migration

• Digital migration implications• Corus’ strong brands resonate with our audiencesCo us st o g b a ds eso ate t ou aud e ces

• Vertical integration implications• Corus applies key account business development practices to grow our

businesses together• Heightened focus on costs by vertically integrated BDUs

• Revenue growth driven by premium television and strong commercial brands

81

TELELATINO:ANOTHER GROWTH OPPORTUNITYANOTHER GROWTH OPPORTUNITY

• Spanish language and Latino culture are influencing mainstream North American ltculture

• Nearly 1.8 million Canadians live in households where Spanish is spoken• Telelatino is widely distributed in 6 million homes• Telelatino has launched 100% Spanish 24-hour channels – a general interestTelelatino has launched 100% Spanish 24 hour channels a general interest

Spanish superstation called TLN en Español as well as a kids service called Teleniños

• Telelatino plans to test this opportunity and, if successful over time, reposition its flagship channel with an intoxicating new schedule of English language Latinoflagship channel with an intoxicating new schedule of English language Latino-inspired general entertainment programming to target this exciting growth opportunity

82

10 THINGS YOU GOTTA LOVE ABOUT CORUS TELEVISION

1. We are a growing portfolio of media assets diversified by geography and line of business and we have an unequalled track record of revenue and profit growth

TELEVISION

2. More new brands in the last five years than the rest of the industry combined

3. Women’s vertical is highly attractive to our audiences and our advertisers

4 Co-viewing leverages our consumer insights into incremental revenue4. Co viewing leverages our consumer insights into incremental revenue opportunities

5. Corus Kids is competitively advantaged, diversified, international and growing

83

10 THINGS YOU GOTTA LOVE ABOUT CORUS TELEVISION

6. Digital revenue and profit opportunities are emerging rapidly, with online video streaming and expected growth in our applications business

TELEVISION

7. International children’s channel ventures offer future option value

8. Pay TV is a superior consumer proposition, with exclusive content and a renewed commitment to growth on behalf of our affiliate partners

9. Hispanic population growth in Canada and the appeal of Latino culture represents a huge opportunity for Telelatino

10. Corus will launch ABC Spark in March 2012 – the perfect addition to our portfolio of services built on the highly successful ABC Family brand, the fastest growing network W18-49 in the U.S.

84

INTRODUCINGINTRODUCING

85

ABC SPARKABC SPARK• Launching in Spring 2012, ABC Spark is a multiplatform offering for the millennial generation

ABC S k b ild th f t t d U S bl d li ABC F il• ABC Spark builds on the success of top-rated U.S. cable darling - ABC Family• The only U.S. cable network with 8 consecutive years of growth (total viewers)¹• A top 10 cable network in all key demos and top 5 in key female demos²

• ABC Spark will be powered by: • Hit ABC Family original and exclusive programs such as The Secret Life of the American

Teenager, Switched at Birth and Jane by Design• Strong movie offering• Industry leading ABC Family stunt strategy: Campus Crush (back-to-school),

13 Days of Halloween and 25 Days of Christmas

• A highly differentiated brand ABC Spark is:A highly differentiated brand, ABC Spark is: • Quality and compelling entertainment for the millennial generation• Authentic storytelling told with optimism, heart and humour• Innovative technology that drives deeper viewer engagement

86Sources: ¹Nielsen Company, M-Sun 8-11pm, Live+SD (000s), growth each season from 2002-03 through 2010-11 among P2+²Nielsen Company, C3 (000s), M-Sun 8-11 pm, 2010-2011, Broadcast Season 9/27/10-9/25/11

ABC SPARKABC SPARK• The millennial generation is the largest demographic bubble in U.S. and Canadian history

• Nearly 10 million millennials in Canada – more than 30% of the population and growing M i th h b f lif t th t k th l bl• Moving through a number of life stages that make them valuable consumers

• Tech savvy “super-subscribers” are multiplatform consumers and curators of cool

• ABC Spark will capitalize on millennial appeal to drive traditional 18-49 audiences• Delivering the younger end of key female demos, ABC Spark is a strong addition to the

Corus portfolio• Lives within Corus Kids and Family vertical to leverage “environment” fit

• Corus will leverage our demonstrated best practices to drive ABC Spark awareness• Nested blocks on YTV, W Network and CMT to create anticipation for ABC Spark launch • Heavy cross-promotion on targeted Corus Entertainment networks

87

IFRS: WHAT WILL BE DIFFERENT IN Q1IFRS: WHAT WILL BE DIFFERENT IN Q1

The Way We Look• Reportable segments will be Radio, Television and Corporate, but with less

segmentation

• There will be a significant increase in financial note disclosure• Full set of IFRS accounting policies• Full set of IFRS accounting policies• Transition to IFRS section

• First time adoption – list of IFRS 1 exemptions used by Corus• Reconciliation of Canadian GAAP to IFRS• In Q1’12, selected year end Aug. 31, 2011 financial notes will be

restated for IFRS

• Balance Sheet presentation – Q1’12• Three year disclosure – Nov. 30, 2011, Aug. 31, 2011, Sept. 1, 2010

89

IFRS: WHAT ARE THE KEY CHANGESIFRS: WHAT ARE THE KEY CHANGES

• Business Combinations/Acquisitions• IFRS 1 election – we will not restate for acquisitions done prior to Sept 1 2010IFRS 1 election we will not restate for acquisitions done prior to Sept. 1, 2010• Net assets expressed at full fair value• Transaction and restructuring costs will be immediately expensed• CRTC benefits will be immediately expensed

• Broadcast Licenses• Previously recorded amortization (prior to fiscal 2002) reversed• Carrying value of Broadcast Licenses and Retained Earnings on Sept. 1, 2010

i dare increased• Methodology for annual impairment testing has changed

• Cumulative Translation Differences (CTA)IFRS 1 l ti ill t CTA b l t t S t 1 2010• IFRS 1 election – will reset CTA balance to zero at Sept. 1, 2010

• Program Rights • Amortization method altered for certain networks

• Stock Options• Stock Options• Acceleration of expense recognition – Retained Earnings adjustment at

Sept. 1, 2010 90

IFRS: WHAT IS THE FINANCIAL IMPACT

Corus has met with broadcaster peers on potential industry

IFRS: WHAT IS THE FINANCIAL IMPACT

Corus has met with broadcaster peers on potential industry issues and concluded that:

• No significant impact to EBITDA or Net Income is anticipated under Corus’ conversion to IFRS

91

FINANCIAL PRIORITIES RECAP:FISCAL 2011FISCAL 2011

Built for GrowthBuilt for Growth

• Maintain Strong Balance Sheet and Credit Ratingg g

• Return to Dividend Growth

D i T Li R G th• Drive Top-Line Revenue Growth

• Improve Operating Margins

Intense Focus on Total Shareholder Return92

FINANCIAL PRIORITIES:FISCAL 2011 ACCOMPLISHMENTSFISCAL 2011 ACCOMPLISHMENTS

Maintained Strong Balance Sheet, Credit Rating Increased

• Year end leverage at 1.9x• Unused lines of credit = access to $400M - $600M of capital• Fixed rate financing in place for 6 years at 7 25%Fixed rate financing in place for 6 years at 7.25%

• Credit Ratings: DBRS=BBB, S&P=BB+ (increased from BB in Jan’11)

Net Debt: Sept 1 1999 Aug 31 2011Net Debt: Sept. 1, 1999 – Aug 31, 2011

600

800

CD

N )

0

200

400

Mill

ion

($C

Fiscal Year93


Return to Dividend Growth

• Significant 45% dividend increase in F’11• Annual dividend increased in Q1 and Q3, ending the year at

$0.87/Class B Share vs. $0.60/Class B Share in the prior year

• CAGR since 2003 introduction of dividend = 70%

• Dividend paid monthly

• Di id d i ld f 4 3% t d F’11• Dividend yield of 4.3% at year end F’11

• Rated #5 on the S&P/TSX Dividend Aristocrats Index

• Ranked as one of Canada’s top dividend stocks by CPMS yMorningstar

• Dividend Reinvestment Plan with 2% discount offers opportunity for greater compound growth

• Implemented a Normal Course Issuer Bid for the potential repurchase of up to 3.9 million Class B Shares from June 16, 2011 to June 15, 2012 94

CORUS DIVIDEND HISTORYCORUS DIVIDEND HISTORY

Initial Semi‐Annual

Dividend of $0.0125

Increase to Quarterly Dividend

of $0.05 then $0.1075

C h i d i l di id d f $0 02 h h i

95NB: All Dividend rates adjusted for share split effective Feb 2008NB: All Dividend rates adjusted for share split effective Feb 2008

Corus has increased its annual dividend from $0.025 per share, when it was introduced in Dec. 2003 on a semi-annual basis, to $0.87 based on the monthly dividend of $0.0725 announced in July 2011 – a CAGR of 70%


Drive Top-Line Revenue Growth

• Delivered strong top-line revenue growth for the year• Consolidated revenues up 8%• Television consolidated revenues up 9%, with specialty advertising

revenues up 11%, subscriber revenues up 6% and international merchandising revenues up 66%

• Radio consolidated revenues up 2%• Radio consolidated revenues up 2%

Improve Operating Margins

• Overall Radio margins improved to 30%• Net income up 18% from prior year• Cost reduction program initiated in F’10 was successful delivering• Cost reduction program initiated in F 10 was successful, delivering

expected annual savings of $15M96

STOCK PERFORMANCE: 2006-2011STOCK PERFORMANCE: 2006 2011

Return on $100 invested at Aug. 31, 2006, assuming the reinvestment of dividends

150

Corus Entertainment vs. S&P/TSX Index Returns: Aug. 31, 2006 – Aug. 31, 2011

110

130

$

70

90

Corus (CJR.B)

S&P/TSX Composite Index

S&P/TSX Consumer Discretionary Index

97

STOCK PERFORMANCE VS. PEERSSTOCK PERFORMANCE VS. PEERS

Stock Performance vs. Peers as at August 31, 2011

CAGR - 5YR(incl. Dividends)

Corus 4 6% 1 1% 3 9%

Company CAGR - 1 YR CAGR - 5 YR

Corus 4.6% 1.1% 3.9%

Astral -5.1% -2.0% -0.6%T t 5 3% 12 6% 8 7%

Canadian Peers (CDN $)

Torstar 5.3% -12.6% -8.7%TVA -9.8% -6.7% -5.0%

U.S. Comparables (US $)EMMIS -50.7% -42.6% -42.6%Entercom 11.1% -24.8% -24.8%Time Warner 5.6% -8.7% -6.5%Disney 4.7% 2.8% 3.7%

98

CORUS HISTORICAL FINANCIAL PERFORMANCEPERFORMANCE

800

900

600

700

800

N)

300

400

500

illion ($CD

N

0

100

200M

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Revenue EBITDA*Fiscals 2010 and 2011 adjusted for continuing operations

99Since 1999, Corus has grown Revenue at a CAGR of 15% and EBITDA at a

CAGR of 16%

CORUS CONSISTENTLY MEETS OR EXCEEDS STATED PERFORMANCE OBJECTIVESSTATED PERFORMANCE OBJECTIVES

EBITDA : Actual vs. Guidance Range Free Cash Flow : Actual vs. Guidance Range

280

300

120

140

)

240

260

280

Million ($CD

N)

60

80

100

Million ($CD

N)

200

220

2007 2008 2009 2010 20110

20

40

2007 2008 2009 2010 2011

High End Low End Actual

2007 2008 2009 2010 2011

High End Low End Actual

*2009 EBITDA Guidance adjusted mid-year due to recession *2010 Free Cash Flow Guidance was lower due to Corus Quay constructionj y y

100

FISCAL 2011: AN EXCEPTIONAL YEARFISCAL 2011: AN EXCEPTIONAL YEAR

Fiscal 2011 Guidance: EBITDA $285M - $295MFree Cash Flow $100M+

• Achieved stated EBITDA guidance range of $285M - $295M

Free Cash Flow $100M+

• Delivered outstanding consolidated double digit growth of 12%• Television segment profit was up 14%• Radio achieved segment profit margin of 30%g p g

• Very strong adjusted Free Cash Flow of approximately $125M(1),exceeding guidance of $100M+exceeding guidance of $100M+

• Share Price: August 31, 2011 $20.36 (+5%)August 31, 2010 $19.47August 31, 2010 $19.47

(1) Adjusted for one-time gains from real estate and other investments 101

FISCAL 2012:PROJECTING STRONG FREE CASH FLOW

• Capital build-out of Corus Quay is now completeFi l 2012 f h fl i d d $12 M

PROJECTING STRONG FREE CASH FLOW

• Fiscal 2012 free cash flow is expected to exceed $125M• Opportunity for increased dividends/share buybacks

O ti d F C h Fl 2007 2011

$) 200 Free Cash Flow

Operating and Free Cash Flow: 2007 – 2011

llion

(CD

N

100

150Operating Cash Flow

llion

($CD

N)

Mil

0

50

2007 2008 2009 2010 2011

Mi

* Free cash flow normalized for business combinations, Fiscals 2010 – 2011 adjusted for continuing operations

Fiscal Year2007 2008 2009 2010 2011

102

TOP 10 THINGS YOU GOTTA LOVETOP 10 THINGS YOU GOTTA LOVE

1. Financial guidance is provided and we achieve our goals

2 D d i i d i f h fl2. Demonstrated commitment to growing and returning free cash flow to our shareholders, mainly in the form of increased dividends

3. Our significant capital investment is behind us• Lower future CAPEX with completion of Corus Quay

4. Corus has the financial capacity to pursue opportunistic acquisitions

5. We have the revenue diversity to weather economic uncertainty and to benefit from the anticipated economic recovery

6. Corus has successfully launched 5 new channels in 3 years through y y ginternally generated cash, with another exciting launch, ABC Spark, planned for 2012• New networks: OWN, CosmoTV, WMovies, Nickelodeon, Sundance

Ch l t ib ti i ifi tl t th d t th iChannel, contributing significantly to growth and strengthening our position in 3 key verticals – Kids, Women and Family

103

TOP 10 THINGS YOU GOTTA LOVE

7. International ventures will continue to add value and cash flow

TOP 10 THINGS YOU GOTTA LOVE

• Strong pipeline of Kids brands will provide ongoing opportunities for international merchandising growth

• New, revenue generating international content distribution t iti (Kid C b ) i i f lifi th i iopportunities (KidsCo, qubo) arising from prolific growth in emerging

platforms

8. Strong portfolio of digital rights, including Oprah, Nickelodeon, games, still to be exploited and new opportunities to leverage Nelvana’s deepstill to be exploited and new opportunities to leverage Nelvana’s deep library of 4,000+ episodes arising from broadband market

9. Investments such as Toonboom and Supernova allow “early window” opportunity to exploit/gain access to new technology knowledge and/oropportunity to exploit/gain access to new technology, knowledge and/or expand our audiences

10.Our Radio business is a great generator of cash flow in any economic environment and we are competitively positioned in our local marketsenvironment and we are competitively positioned in our local markets from a format, ratings and demographics perspective

104

FINANCIAL PRIORITIES:FISCAL 2012FISCAL 2012

Innovation in Action

• Maintain Strong Balance Sheet and Credit Rating

Innovation in Action

• Maintain Strong Balance Sheet and Credit Rating

• Dividend Growth to ContinueDividend Growth to Continue

• Drive Top-Line Revenue Growthp

• Grow Through Innovation

105

FINANCIAL GUIDANCE: FISCAL 2012FINANCIAL GUIDANCE: FISCAL 2012

Consolidated EBITDA $300million to $310 millionConsolidated EBITDA $300million to $310 million

Free Cash Flow $125 million +Free Cash Flow $125 million

InvestorInvestor Day 2011Day 2011Investor Investor Day 2011Day 2011

Q&AQ&A SessionSessionQ&A Q&A SessionSession

107

to view powerpoint presentation

Documents