Investor Update April 21, 2015

Transcription

1 Investor Update April 21, 2015

2 Forward Looking Information Disclaimer Statements included in this presentation that are not historic (including those showing 2015 Free Cash Flow Guidance") constitute forward-looking statements. Forwardlooking statements are based on assumptions and involve risks and other factors which may cause actual results to be materially different from views expressed or implied by such statements. Accordingly, forward-looking statements are not guaranteed and undue reliance should not be placed on them. Material risks and other factors that could cause actual results to differ materially from the views expressed in forward-looking statements and material assumptions underlying forwardlooking statements are identified in the Company's Management s Discussion and Analysis ( MD&A ) for fiscal 2014 and for Q which have been filed with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. 2

3 Shaw Communications Inc. is a diversified communications and media company, serving 3.2 million customers through a reliable and extensive fibre network. Shaw serves consumers with broadband Internet, WiFi, Digital Phone and Video products and services. Shaw Business Network Services provides business customers Internet, data, WiFi, telephony, Video and fleet tracking services. Shaw Business Infrastructure Services offers North American enterprises colocation, cloud and managed services through ViaWest. Shaw Media provides Canadians with engaging programming content through one of Canada s largest conventional television networks, Global Television, and 19 specialty networks including HGTV Canada, Food Network Canada, HISTORY and Showcase. 3

4 Publicly Traded Capitalization Dividend TSX SJR/B NYSE - SJR TSX-V SJR/A Market Cap 1 - $12.8B Net Debt 2 $5.8B Enterprise Value (debt + equity) - $18.6B Annualized Quarterly Dividend 3 $1.185 Current Dividend Yield 1, 4 4.3% Note: All figures in Canadian dollar basis. 1 Based on closing price of $27.39 (April 17, 2015) and approximately 469M Class A and Class B shares outstanding as at February 28, Including ViaWest acquisition financing and as at February 28, Approved quarterly dividend of $ /share effective March 31, 2015 results in an annualized quarterly dividend rate of $1.185/share and total F15 annual dividend declaration of $ /share. 4 Based on annualized quarterly dividend rate of $1.185/share. 4

5 Note: 1 Includes capital appreciation and dividends received over the holding period. Assumes dividends are reinvested into Shaw Class B shares. 5

6 TV - Direct-to-Home - Network TV - Colocation Internet - Hospitality - Specialty - Managed (business Channels services / Phone satellite TV) cloud - Shaw Business - Tracking (connectivity) - Broadcast - Residential Cable - Business Cable - Network TV - ViaWest (TV, Internet and (TV, Internet and (colocation, managed Phone) Phone) - Specialty services, cloud) Channels - Direct-to-Home - Hospitality - Canadian data (business centre initiatives satellite TV) (Calgary data centre Fall 2015) - Tracking - Broadcast - Shaw Business (connectivity) 6

7 Financial Post Top 10 Employer Fibre Network 850,000+ km Growth and Cost Efficiencies 7 Note: all subscriber metrics as at February 28, 2015.

8 100% Global s reach of English-speaking Canadians 19 specialty channels 8

9 +$5.2B revenue ~$2.3B ebitda ~$700M free cash flow % contribution by segment % contribution by segment Media 21% Satellite 16% Cable 63% Satellite 12% Media 16% Cable 72% supports return of capital dividends Note: all figures in $CAD. Figures above reflect Fiscal 2014 actual results. The ViaWest transaction closed in Q1/F15 thus its financial results are excluded. 9

10 $482M $604M $698M Note: all figures in $CAD. Figures above reflect actual results. FCF represents the amount of cash flow remaining for dividends, share buybacks and debt reduction after taking into account all of our operating and capital expenditures, cash taxes and interest payments. 10

11 Note: all figures in Canadian dollar basis. *Approved quarterly dividend of $ /share effective March 31, 2015 results in an annualized quarterly dividend rate of $1.185/share and total F15 annual dividend declaration of $ /share. 11

12 Annual Dividend Obligation ($M) Dividend Per Share *Approved quarterly dividend of $ /share effective March 31, 2015 results in an annualized quarterly dividend rate of $1.185/share and total F15 annual dividend declaration of $ /share. Note: all figures in $CAD. 1 Refers to dividends payable less cash savings from Dividend Reinvestment Plan ( DRIP ). 2 Shaw s DRIP allows holders of Class B Shares and Class A Shares who are residents of Canada to acquire Class B shares through automatic reinvestment of cash dividends paid on their respective holdings. Shaw pays dividends on a monthly basis. The DRIP offers a convenient alternative to receiving a dividend payment and an opportunity to increase their investment in a cost efficient manner. 12

13 we re strategic 2010 Acquisition $2B transactions focused on optimizing our portfolio of assets proceeds enable acceleration of core capital investments expanding Shaw Business segment Asset Swap 1 Acquisition $700M net proceeds $225M 2014 Acquisition $1.3B Note: All figures in Canadian dollar basis. 1 Shaw completed an earlier asset swap worth $2B in

14 1 data centre 1 market 5 data centres 2 markets 16 data centres 5 markets 23 data centres 5 markets 27 data centres 8 markets Portland Minneapolis Denver Salt Lake City Las Vegas Dallas & Austin Phoenix 14 Note: Square footage represents built out square footage.

15 Maturing Industry & Competitive Environment Evolving Regulatory Environment Broadband Growth Opportunities / Diversification High penetration of services (Video, Internet & Phone services) Technology & evolving consumer habits (i.e. multiplatform viewing) Let s Talk TV Canadians among highest data users in the world More applications delivered over IP Cablecos have infrastructure advantage Shaw Network Services (i.e. mid-market and enterprise customers) Shaw Ventures Industry may move to usage based billing to monetize network investments 15

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18 Increases value proposition of Broadband Improves retention (30% lower churn) Complements Shaw Go / TVE Strategy (33% penetration) ~80 municipal deals signed (+4M population potential) Significant innovation potential (Hotspot 2.0) 18

19 Consolidated Operating Income 1 5% to 7% ViaWest Operating Income US$85M Consolidated Free Cash Flow +$650M Target Leverage Range 2 2.0x to 2.5x net debt / LTM EBITDA Conclusion of ACF in 2015 $150M Long Term Annual Core Capex 3 $750M 1 Operating income is before restructuring costs and amortization. Growth in operating income takes into account the net impact of acquisition and disposition activity during the period. Operating income before amortization is defined and discussed under Key Performance Drivers in the MD&A. 2 Pro forma for ViaWest acquisition. Assumes 50% debt treatment for preferred shares. Calculation excludes ViaWest subsidiary net debt of ~US$370M and operating earnings. 3 Consumer and Business core capex in F16+. Excludes ~$100M of capex associated with Media and satellite. Note: Guidance was provided to the investment community on October 23, 2014 in conjunction with the Q4F14 earnings release. 19

20 » Broadband is the most important service in the home» Sustainable customer acquisition and retention initiatives across all RGU s» Exercising financial discipline» Sound returns through divestiture of non-core assets» Acquisition of complementary assets to strengthen our core offerings» Providing exceptional customer experiences» Accelerating investment to extend our infrastructure advantage» Expanding our WiFi network across Western Canada» Launching new value-added services» Additional bandwidth upgrades» Top-rated programming and content» Focus on family values and the communities we operate in» Loyalty to customers, employees and shareholders Thank you! Note: For additional questions, please contact 20