Scotia Capital 2002 May 15 web version

CanWest Global Communications Corp: 

CanWest Global Communications Corp Scotia Capital Spotlight on Media Toronto, Ontario May 15, 2002

Slide2: 

Certain statements in this presentation may constitute forward looking statements. Such statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those expressed or implied. TRADING SYMBOL: NYSE: CWG TSE: CGS.S, CGS.A Safe Harbor

Staying ahead in a dynamic media environment: 

Staying ahead in a dynamic media environment Q1 and Q2 cyclical market weakness Recovery becoming evident in Q3 Adapting to changing media environment Reducing corporate debt Outlook for EBITDA and margins

Multi-media expansion combats fragmentation: 

National Post canada.com Global Television Prime and digital specialties CH Network 14 major daily newspapers Community newspapers Multi-media expansion combats fragmentation

International brands extend CanWest to the world: 

International brands extend CanWest to the world

CanWest leads in multi-media ad sales: 

CanWest leads in multi-media ad sales Multi-media sales $18.4 million Sept 1/01to March 31/02 compared to $3.1 last year New multimedia campaigns Believe BC – Promotes BC business and social organizations Health Canada – Organ and Tissue Donor campaign, and Fidelity Investment - Getting Good Advice campaign AuctionMart added $8 million in revenues, $5 million EBITDA Microsoft -just announced deal with Microsoft $30 million to date in cross promotion value

EBITDA improvements expected at Global as market recovers : 

EBITDA improvements expected at Global as market recovers YTD Television revenues up 6% on same station basis March revenues up 7%, EBITDA up 3% over last year Accelerated improvement continuing April revenue up 13% over last year, and May pacing 12% ahead 6 of top 10 shows in Toronto, 8 of top 10 in Vancouver. Led Vancouver market for 13 out of 13 weeks in Fall Season. Led Toronto 8 out of 15 weeks

Higher circulation revenues, lower costs offset advertising decline at Southam: 

Higher circulation revenues, lower costs offset advertising decline at Southam Q2 ad revenue down 8% due to weak travel, financial services and recruiting Offset by 6% growth in circulation revenue Lower operating costs, year-over-year reduction of 400 FTEs and lower newsprint prices mitigated revenue decline Southam, excluding the National Post, posted slight year-over-year EBITDA increase. Improving ad market and further cut in newsprint price effective April 1 will help Q3 and Q4 EBITDA National Post paid circulation 273,000 in March, ahead of 243,000 average for prior 6 mos, and close to its 275,000 target

International and entertainment units show year-over-year improvements  : 

International and entertainment units show year-over-year improvements TEN leads ratings among 16-39 demographic TEN recently took 2nd place in “Total Market” demo TEN’s YTD EBITDA up 7% EBITDA for New Zealand TV and Radio slightly ahead TV3 Ireland EBITDA up over 200% Fireworks EBITDA up over 60%

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($ millions, except per-share amounts) YTD YTD YTD 2002 2001 2001 Actual Pro forma* Actual Revenue 1,319 1,285 976 Segmented EBITDA** 320 313 269 Cash flow from operations 163 117 Adjusted net EPS $ 0.49 $ 0.53 Cash flow per share $ 0.92 $ 0.70 Year-to-date results confirm resistance to effects of economic slowdown * Pro forma information assumes the acquisitions of RadioWorks, Southam, 100% of the National Post, and the divestiture of CKVU and the reorganization of TV3 Ireland, all occurred on September 1, 2000 ** Before Corporate and development costs and non- recurring items

Slide11: 

YTD F2002 YTD F2001 (Pro forma*) Rev. EBITDA Rev. EBITDA Canadian Publications 640 154 693 150 Canadian TV 356 108 336 122 Fireworks Entertainment 99 6 59 3 Network TEN TV (Australia) 129 45 119 42 Out-of-home (Australia) 19 1 6 1 New Zealand Television TV3/4 31 (2) 29 (3) New Zealand Radio 30 8 29 8 TV3 Ireland 15 5 10 1 Canadian Online Operations 4 (4 ) 5 (12) Six months segmented results stable or improved ($ millions) * Pro forma segment information assumes the acquisitions of RadioWorks, Southam and 100% of the National Post and divestiture of CKVU and the reorganization of TV3 Ireland, all occurred on September 1, 2000

CanWest Global consolidated debt: 

CanWest Global consolidated debt Feb 28 Nov 30 2002 2001 Senior debt 2,138 2,180 Subordinated debt 705 705 Hollinger 894 868 Other 78 92 Total debt 3,815 3,845 Total debt/cash flow 5.35 5.18 Senior debt/cash flow 4.03 3.95

Suspension of TEN’s dividend will have no impact until F2003: 

Suspension of TEN’s dividend will have no impact until F2003 Dividend suspension triggered by write down of TEN’s investment in Eye Corp Does not affect TEN’s cash or EBITDA CanWest’s F2002 distribution from TEN received in December 2001 and included in F2002 cash flow Expect interim distribution of approx $30 million in Q2 F2003 Improved operating results should help offset shortfall

Debt reduction remains highest priority: 

Debt reduction remains highest priority More engaged now in divestiture of non-core assets Community papers identified as non-strategic Timing has improved over past month Recovery improves prospects for sales prices that reflect full asset value Other monetizing options include floats or partial floats as well as divestiture No rush to sell at fire sale prices

Other priorities focus on bottom-line performance, revenue diversification: 

Other priorities focus on bottom-line performance, revenue diversification Operating improvements to maintain financial performance Press ahead on multi-media sales and other convergence projects Build new revenue streams Subscriptions to digital TV and online services Expanded merchandise sales Third party services at Customer Contact Centre Data/research services Corporate services projects in Winnipeg to capture cost savings in F2003 are on track and on budget

Outlook: improved bottom line performance: 

Outlook: improved bottom line performance Market recovery bringing improved Q3 operating results Revenues at Global pacing 12% ahead of last year in Q3 Q3 EBITDA pacing higher at Southam due mainly to lower costs; Southam revenues surpassed last year’s April result TEN revenues in Q3 are pacing double digit gains Q3 revenues at TV3 Ireland and TV3/4 New Zealand also up

CanWest Global Communications Corp: 

CanWest Global Communications Corp Scotia Capital Spotlight on Media Toronto, Ontario May 15, 2002