CIBC world markets

CIBC World Markets : 

CIBC World Markets February, 2003

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 Harbour

Slide3: 

Solid Portfolio of Strategic Assets Canada’s Leading Advertising Platform Global Television Network 16 stations covering all major markets – (3 largest markets with second coverage) #1 or #2 rank at all major stations Reaches 94% of English-speaking population Consistently broadcasts top programs in key markets CanWest Publications 11 daily newspapers – all overlap with TV signals – including National Post Community publications in lower mainland of B.C. and Vancouver Island Average daily paid circulation of 1.4 mm and readership of 4.3 mm Other Assets

Positive indicators : 

Positive indicators Improved Business Fundamentals Ad market in Canada strong - airtime revenue and linage are up Strong international results led by Network TEN Debt Reduction Sale of non-core small market newspapers and TV stations completed Divestitures contributed $700 million to senior debt reduction in past 18 months Canadian operations management focused upon: Development of new revenue opportunities Expanded content sharing Additional cost reductions

Revenue and EBITDA gains at all major operations in Q1: 

Revenue and EBITDA gains at all major operations in Q1 Higher revenues and EBITDA at Canadian TV and newspapers Record quarter at TEN with CanWest’s share* of TEN’s: Revenues up 29% to $96 million EBITDA up 34% to $37 million EBITDA of $7 million marks turnaround at New Zealand TV New Zealand radio EBITDA up 25% to $5 million CanWest share** of TV3 Ireland’s EBITDA up 21% to $4 million High ratings, growing economies, drive improved results * Based on CanWest’s 57% proportionate share ** Based on CanWest’s 45% proportionate share

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Q1 2003 Q1 2002(Pro forma*) Segment Segment Revenue EBITDA Revenue EBITDA Publications 314 82 313 81 Canadian TV 213 82 201 75 Digital Specialty TV 2 -- --- --- Fireworks Entertainment 48 2 58 4 Network TEN TV (Australia) 96 37 75 28 Out-of-home (Australia) 10 1 11 1 New Zealand TV 26 7 18 1 New Zealand Radio 18 5 15 4 TV3 Ireland 10 4 9 3 Electronic publishing 6 -- 5 (2) Total 740 219 701 196 Segmented results confirm progress at all major operations ($ millions, rounded)) * Pro forma information assumes the sale of certain publishing assets in Saskatchewan and Atlantic Canada to GTC Transcontinental effective August 31, 2001.

CanWest Television remains strong: 

CanWest Television remains strong CanWest continues strong showing in prime time Survivor V - #1 show in Canada 5 of top 10 programs in prime time* Fall 2002 – Global won 14 out of 16 weeks in primetime** Strong in popular reality based programming Survivor, Fear Factor, Popstars: The One Global National with Kevin Newman firmly in 2nd place among national news programs Sales continue to pace well ahead of last year * Based on BBM People Meters in Toronto and Vancouver among Adults 18-49 includes Global and CH ** Based on BBM People Meters in Toronto and Vancouver - Adults 18- 49

CanWest Publications trending in right direction: 

CanWest Publications trending in right direction Newspaper advertising sales pacing ahead of last year National strongest – led by auto, growth in entertainment tech & travel Classified and retail ahead of last year Recruitment still soft Newsprint costs remain relatively low National Post circulation stabilizing, continue to trim costs

Network TEN looking strong in 2003: 

Network TEN looking strong in 2003 Network TEN solidly in second place in ratings and revenue TEN outperforming market Eye Corp. out-of-home operation getting back on track Tax issue resolved favourably $30 million interim distribution received in December

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Leverage and Liquidity Profile Strong liquidity profile – targeting free cash flow in range of $200 mm in 2003 Substantial cushion to meet scheduled debt repayments of $47 mm remaining in fiscal 2003 and $89 mm in 2004 Leverage Senior Debt $1,588 Subordinate Debt 706 Other 126 Total Debt-CanWest Media 2,420 Hollinger Notes 977 Share of TEN debt 205 Total Debt 3,602 Senior Debt/EBITDA 3.44x 4.75x Total Debt/EBITDA 4.94 5.75 (C$ millions) Nov 2002 Pro Forma* Ratio* Covenant** Notes: *Pro forma for sale of community newspapers to Osprey for $193.5 mm **TEN Debt and Hollinger Notes not included for covenant calculations Liquidity

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De-leveraging Program Non-Core Assets Sales Sales of television stations completed -$245 mm Sale of community papers to GTC and Osprey completed -$448 mm Evaluating other potential asset sales Bank Facility Flexibility Total debt/EBITDA covenant step-down deferred until February 2004 Increased flexibility to repay Hollinger Notes Free Cash Flow Continue to focus on operating efficiencies Improving advertising environment Debt Reduction Remains a Key Priority Category Status Targeting Total Debt/EBITDA of 4X – 5X over 3-5 year timeframe

Hollinger Notes: 

Hollinger Notes Principal repayment not due until November 2010 No cash interest until November 2005 Options to refinance include: Allow re-set to market rate Re-finance with another debt-like instrument Sell additional assets Issue equity Any combination of the above

CanWest business model builds long-term value: 

CanWest business model builds long-term value No other North American media company has comparable mix of mass-market media assets CanWest’s strategy is predicated on the advertising and customer driven fusion of media, brands and content, not content and delivery systems. Conventional and proven strategy based on building ad market share by acquiring complementary media platforms TV and newspapers combo provides one-two punch in all major Canadian advertising markets Market leading 28% of Canadian ad spend

Proven Integrated Sales Success: 

Proven Integrated Sales Success Integrated sales team covers all media and provides multi-platform advertising and marketing solutions Cross media ad sales of $32 million and growing prove validity of CanWest integration model Believe B.C./ Momentum Montreal/Believe Alberta/ Saskatchewan Dream: Cross platform, regionally branded convergence initiative generating $10 million in new revenue from non-traditional customers Auctionmart – nationally branded, cross platform convergence initiative generating $10 million in revenue last year. Year two underway, Vancouver generating $4.9 million already. MORE

Proven Integrated Sales success (cont.): 

Proven Integrated Sales success (cont.) Multi-million dollar cross media campaigns L’Oreal International Women’s Day Microsoft’s Tablet PC campaign Customer focused cross platform convergence initiatives generating new content and revenue from key customers BC/Calgary/Edmonton Shopping Sprees Regionally branded cross platform convergence project generating $1.3 million in BC in phase one alone

Our strategic priority is to build long term value: 

Our strategic priority is to build long term value Optimize operating units, capture additional cost reduction potential and improve operating results CWBS, ReachCanada, IT, CanWest News Service Supplier review Zero based P&L review Expand content generation and acquisition to add additional coverage depth and quality to television, print and online news media CanWest News Service Iraq War Desk, Columbia tragedy, online newspaper strategy MORE

Our strategic priority is to build long term value (cont.): 

Our strategic priority is to build long term value (cont.) Generate more multi-platform news and information projects Documentaries/Special reports: Tweenies / Romanow Report Body & Health Add new revenue streams through new content and product development, new customer acquisition and customer satisfaction Going Home production Pop Stars Video Sales: “Band of Brothers” Video Games

Strategic Focus in Operations : 

Strategic Focus in Operations Become truly One Company with single management structure Streamline decision making to foster innovation and customer service Focus on Marketing/Cross Promotion to drive ratings, circulation and audience growth: Success of Global National with Kevin Newman Global leads primetime ratings: Survivor, Friends, Will & Grace, Everybody Loves Raymond, Simpsons. Hot new shows like 24 Programming costs expected to be flat this year Schedule renewal provides opportunity for new programming

Strategic Focus in Operations (cont.) : 

Strategic Focus in Operations (cont.) Market leading branded metro newspapers 5 of the top 10 digital specialty channels Prime top analog channel (among women) Focus on continued strengthening of National Post Part of integrated sales strategy Link with CanWest News Service Circulation and manufacturing efficiencies Focus on continued growth of Fireworks Core strengths in youth half hours and action hours Renewals of Andromeda and Mutant X Focus on leverage of technology to increase productivity and customer service Traffic systems, circulation systems, communications systems, content creation and management systems

Outlook- improved bottom line performance: 

Outlook- improved bottom line performance Consistent focus on operating efficiencies combined with improving economy, should increase revenues and EBITDA in F2003 Higher revenues combined with lower cost base should result in higher EBITDA in F2003 High ratings, stable programming costs should extend improved EBITDA in Canadian TV for the balance of F2003 Increased contributions from international operations in F2003 Sustained focus on reducing corporate debt Further divestitures possible, but not imminent and only at the right price Potential to reduce interest costs through re-financing

CIBC World Markets : 

CIBC World Markets February, 2003