2007 Comcast Annual Meeting of Shareholders on May. 23. 2007 / 9
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FINAL TRANSCRIPT CMCSA - 2007 Comcast Annual Meeting of Shareholders Event Date/Time: May. 23. 2007 / 9:00AM ET www.streetevents.com Contact Us © 2008 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial. FINAL TRANSCRIPT May. 23. 2007 / 9:00AM, CMCSA - 2007 Comcast Annual Meeting of Shareholders CORPORATE PARTICIPANTS David L. Cohen Comcast Corporation - EVP Brian L. Roberts Comcast Corporation - Chairman and CEO Charles Rothy ComputerShare Trust Company - Judge of Elections CONFERENCE CALL PARTICIPANTS Jean Gardner - Representative for Miss Evelyn Y. Davis, Shareholder Catherine Nefaro - Representative for Richard Dee, Shareholder Dan Nielsen - United Methodist Church General Board of Pension and Health Benefits Tony Daley Communication Workers of America - CWA Members Relief Fund John Miller IBEW Local 827, New Jersey - President & Business Manager Josh Reisman - Shareholder Marge Krueger Communication Workers of America - Administrative Assistant Jim Voye International Brotherhood of Electrical Workers - Director of Research and Corporate Affairs Kevin Bielis - Shareholder Chris Smith Amalgamated Bank LongView Collective Investment Fund - Representative David Gannon American Brotherhood of Carpenters and Joiners - Representative Reverend Dr. Calvin Morris Community Renewal Service - Executive Director Roslyn Spiegel Philadelphia Jewish Labor Committee - Executive Director Hilary Woodock Reverend Andrew Poker Linda Lotz Board of National Organization - Interfaith Worker Justice - Chairwoman Harry Arnold Communication Workers of America, Local 13000 - Organizer www.streetevents.com Contact Us 1 © 2008 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial. FINAL TRANSCRIPT May. 23. 2007 / 9:00AM, CMCSA - 2007 Comcast Annual Meeting of Shareholders Caesar Ladelle Comcast - Maintenance Technician Javit Greeshy Comcast - Line Technician Rabbi Rave Solof - Shareholder Conrado Montano Comcast - Service Technician Gerry Leonard - Comcast Derek Comfrey Comcast - Service Technician Willy Coolie Comcast - Service Technician Nigel Laureals Comcast - Technician James Wilson Comcast - Technician Jose Hill Comcast - Technician Beckla Scott Comcast - Retired Technician Tom Hubeck Comcast - Shareholder Robert Fisbolinski International Brotherhood of Electrical Workers - Representative Yona Komatchodime Communications Workers of America, Local 9415 - Representative Rich Spieler IBEW Local 827 - Business Agent Daniel Brook - Shareholder PRESENTATION David L. Cohen - Comcast Corporation - EVP Good morning, everyone, welcome to the Comcast©s 2007 Annual Meeting of Shareholders, my name is David L. Cohen and I am an Executive Vice President of Comcast Corporation and it©s my privilege to serve as the moderator of today©s meeting. With me on the stage are Brian L. Roberts, the Chairman and CEO of the company and Arthur R. Block, Senior Vice President, General Counsel and Secretary of the company. Mr. Block will serve as Secretary of the meeting. In fairness to all of the shareholders and attendants, and in the interest of an orderly meeting, the company has adopted specific rules of conduct for this meeting, including time limitations for each question on the agenda. And those rules of conduct have been distributed so hopefully everyone has them, if you don©t just raise your hand and someone will be happy to provide you with a copy. www.streetevents.com Contact Us 2 © 2008 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial. FINAL TRANSCRIPT May. 23. 2007 / 9:00AM, CMCSA - 2007 Comcast Annual Meeting of Shareholders Shareholders will have an opportunity to ask general questions after the conclusion of the voting on all matters, and we will make sure that everyone who wants to have an opportunity to be heard will be heard. So we©re going to ask, as we bring up the shareholder resolutions, that the comments be limited to the subject of the resolution and then we©ll open the floor to any other topics that shareholders might want to discuss at the conclusion of the voting. Mr. Roberts or I will decide the appropriate company representative to answer a shareholder©s question. And just for your frame of reference, we plan on concluding the Annual Meeting no later than 11:00 a.m. and will try and deal with question and answer period to make sure that we abide by that schedule. So at this time to kick off the meeting it is my pleasure to introduce our Chairman and CEO, Mr. Brian L. Roberts. Brian L. Roberts - Comcast Corporation - Chairman and CEO Good morning. I©d like to call the meeting to order. And just as a way to begin I©d like to introduce to you our Board of Directors. Starting with Ralph J. Roberts, Founder of the company and Chairman of the Executive and Finance Committee of the Board, Ken Bacon, Sheldon Bonovitz, Ed Breen, Julian Brodsky, Joseph Collins, Mike Cook, Jeff Honickman, Dr. Judith Rodin, Mike Sovern. I©d also like to introduce just a few folks in management, there are others in attendance, Steve Burke Executive Vice President and Chief Operating Officer of President, Comcast Cable, John Alchin, Co-Chief Financial Officer, Michael Angelakis Executive VP and Co-CFO and I think Larry Salva our Chief Accounting Officer for any accounting issues that might arise. I©d like to also into in that vein, from Deloitte & Touche, the company©s independent auditors, Jim Adams, Advisory Partner, [Greg Soleil] [the client first partner] for Comcast. This meeting now has been called to order pursuant to notice dated March 29, 2007 sent to all Shareholders of Record as of the close of business March 15, 2007. Proxies were solicited on behalf of the Board for this meeting. Mr. [Charles Rothy], ComputerShare Trust Company, the transfer agent for the company©s Class A common stock, has been appointed as Judge of Elections to [count] the votes at this meeting, and any adjournment or postponement thereof. Mr. Rothy has already delivered his Oath of Office. Shareholders of Record on March 15, 2007 in Class A common stock and Class B common stock are entitled to vote in a single class on all matters being voted upon at this meeting. The shareholders of Class A Special common stock will not vote on any matters at this meeting. For there to be a quorum on each matter to come before this meeting, there must be present, in person or by proxy, shareholders entitled to cast the majority of the votes entitled to be cast in [perspective of the] matter. The Judge of Election has advised us that, based on proxies presented prior to the meeting, a quorum for matter is in attendance. I have at the meeting copies of the Notice of Meeting, Proxy Statements, Form of Proxy, Affidavit of Mailing. There are also here at the meeting, true and complete lists of all the holder Directors of Class A common stock and Class B common stock, which are arranged in alphabetical order. The list contains the names, addresses and the number of shares of stock held by each Shareholder of Record at the close of business of the record date. I also have an affidavit to the effect that these lists will be open to examination by any shareholder or shareholder©s proxy during this meeting. The copies of Notice of the Meeting, Proxy Statement, Form of Proxy and Affidavits, as well as an affidavit with respect to the shareholder list will be filed with the minutes of the meeting. So I now declare this meeting duly convened, properly organized and competent to transact business. Later in the meeting, a share vote will be taken by ballot on all matters to be voted upon at the meeting. If you wish to vote by ballot and did not obtain a ballot when you entered the meeting, you may obtain a ballot by contacting one of the ushers. www.streetevents.com Contact Us 3 © 2008 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial. FINAL TRANSCRIPT May. 23. 2007 / 9:00AM, CMCSA - 2007 Comcast Annual Meeting of Shareholders So I©d like to now begin by giving a brief report on your company and take us through then the business of the meeting. If you©ll follow along, first of all this is our traditional Safe Harbor disclosure you see on the Internet. 2006 was really a fantastic year for Comcast, in fact it may have been one of the most important years in the company©s history. We broke all records in 2006, driven by the strength of the Cable business. Cable revenues increased 12% to over $26 billion, operating cash flow rose 15% to $10.5 billion. This was our sixth straight year, 26 consecutive quarters of double-digit operating cash flow growth. During the year our customers bought 5 million new products, or what we call RGUs, revenue generating units, an increase of nearly 70% since 2005. We set a strong foundation for growth in 2007, and we believe the future has the potential to even be better. We have real momentum, we continue to innovate, differentiate and grow. The outstanding performance of Cable drove record results for the company. If you look at the consolidated company you can see some of the numbers here. Because of acquisitions, there was Susquehanna, the Adelphia and Time Warner swap, and the acquisition of Adelphia, part of the company, and Houston transactions, we added nearly 3.7 million new video customers. We have been able to generate strong free cash flow generation, allowing us to repurchase $2.3 billion of our stock each of the last two years.