Videotron ■ Sun Media Corporation ■ TVA Group ■ Archambault Group ■ Canoe ■ Nurun ■ Le Superclub Vidéotron ■ Quebecor World 2005 in BRIEF

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Videotron ■ Sun Media Corporation ■ TVA Group ■ Archambault Group ■ Canoe ■ Nurun ■ Le Superclub Vidéotron ■ Quebecor World 2005 in BRIEF QUEBECORQUEBECOR INC.INC. ANNUAL REPORT 200520052005 INITIATE INNOVATE INVEST high-speedhigh-speed multimedia Videotron ■ Sun Media Corporation ■ TVA Group ■ Archambault Group ■ Canoe ■ Nurun ■ Le SuperClub Vidéotron ■ Quebecor World 2005 IN BRIEF March • Quebecor World renews a multi-year contract with Dex Media to print more than 200 telephone directories in 14 U.S. states • Sun Media Corporation launches its third free commuter daily, Vancouver 24 HoursTM, in Vancouver • Videotron rolls out its cable telephone service in Laval April • Videotron and Reeves Interactive launch Microplay OnlineTM, a networked gaming service May • Videotron rolls out its cable telephone service in Montréal January West Island • Videotron becomes the first major cable provider in Canada to offer residential telephone service via cable June • Videotron extends its February collective agreements • Archambault opens a new 15,000 square-foot store in with its employees in Gatineau, Québec the Montréal, Québec City, Saguenay– • TVA Group launches ARGENT, the first French-language, Lac-Saint-Jean and all-business specialty channel in North America Gatineau regions July • Videotron rolls out its cable telephone service in Québec City and announces investments of $29.0 million in the region • Quebecor Media makes initial partial repurchase of Senior Notes as part of the refinancing of its long-term debt 2 QUEBECOR INC. August November • Plans to build a new $110.0 million printing plant for • Videotron rolls out its residential Le Journal de Montréal in Saint-Janvier-de-Mirabel are cable telephone service on announced Montréal’s North Shore • Plans to build a new printing plant in Islington, Ontario, to December be operated jointly by Quebecor Media and Quebecor World, • Quebecor Media closes the are announced acquisition of Sogides, adding seven publishing houses and a • Quebecor World signs a US$900.0 million multi-year distributor, Messageries A.D.P., contract with Yellow Book USA to its family of companies • Videotron rolls out its cable telephone service on the rest of • Quebecor World renews and the Island of Montréal extends its US$1.0 billion credit facility • illico Digital TV breaks through the 400,000 customer mark September • Videotron signs a strategic • Videotron’s immensely successful agreement with Rogers Wireless new cable telephone service closes to introduce a wireless telephone the year with 163,000 customers service in the second half of 2006 • Archambault opens store in • micasa.ca is officially Les Galeries de la Capitale in launched and quickly Québec City becomes a leading real estate site in January 2006 Québec • Quebecor Media refinances its long-term debt and reduces its October annual financing costs by • Quebecor World signs a US$500.0 $80.0 million million multi-year agreement with Time to print 15 magazines • Nurun closes the acquisition of China Interactive, an Asian interactive marketing firm • Archambault opens a new 18,000 square-foot store in • Quebecor World announces US$250.0 million retooling Boucherville, Québec program for its European manufacturing platform QUEBECOR INC. 3 HIGHLIGHTS Fiscal years ended December 31, 2005, 2004, and 2003 (in millions of Canadian dollars, except per share data) 2005 20041 20031 Operations Revenues $ 10,208.5 $ 10,613.4 $ 10,718.6 Operating income2 1,542.1 1,729.9 1,501.1 Contribution to net income: Continuing operations 102.1 114.1 26.9 Gain on re-measurement of exchangeable debentures 101.8 36.4 – Unusual items and write-down of goodwill (127.3) (39.4) 38.6 Discontinued operations (6.9) 1.1 0.9 Net income 69.7 112.2 66.4 Cash flows provided by continuing operations 973.5 995.1 899.2 Basic per share data Contribution to net income: Continuing operations $ 1.58 $ 1.76 $ 0.42 Gain on re-measurement of exchangeable debentures 1.58 0.57 – Unusual items and write-down of goodwill (1.97) (0.61) 0.60 Discontinued operations (0.11) 0.02 0.01 Net income 1.08 1.74 1.03 Dividends 0.19 0.08 – Shareholders’ equity 22.51 22.35 21.44 Weighted average number of shares outstanding (in millions) 64.5 64.6 64.6 Financal position Working capital $ 4,687.7 $ 4,888.2 $ 5,286.4 Shareholders’ equity 1,451.7 1,443.6 1,384.9 Total assets 13,677.0 14,438.7 15,180.2 Employees 46,000 47,000 49,000 1 The comparative figures for the years 2004 and 2003 have been reclassified to conform with the definition adopted for the year ended December 31, 2005. 2 Operating income is not a measure of results that is consistent with generally accepted accounting principles in Canada. This measure is defined in the Management Discussion and Analysis (Financial Section) on page 45 of this Annual Report. Share Price (QBR.SV.B) Operating Income In dollars In millions of dollars 2,000 $1,886 $1,748 ◆ $1,730 30 ◆ $1,501 ◆ $1,542 ◆ 1,500 $1,357 $1,307 ◆ ▲ ▲ $1,032 $888 ▲ 20 1,000 $807 ▲ ▲ ■ ■ ■ ■ 500 $697 $734 ■ $572 $612 $389 10 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 ■ Quebecor Media Inc. ▲ Quebecor World Inc.◆ Quebecor Inc. 4 QUEBECOR INC. MESSAGE TO SHAREHOLDERS Initiate, Innovate, Invest The three words above aptly sum up the year past at Quebecor. The Company forged ahead with the hard but necessary changes it needs to make in order to remain a world leader in commercial print media. It continued to innovate with new product launches. It made significant investments in order to improve the effectiveness and efficiency of all its operations. More specifically, our three keywords translated into the following initiatives: • Quebecor World launched a retooling program worth more • The Books segment doubled its publishing houses from than US$580.0 million to modernize its manufacturing 7 to 14 when it acquired Sogides. The transaction also platform in North America and Europe. included Messageries A.D.P., strengthening Quebecor’s position in book distribution. • Quebecor Media announced $220.0 million in investments to relocate and modernize printing plants in Québec and On the financial front, Quebecor posted net income of Ontario. $69.7 million ($1.08 per basic share) in 2005, compared with $112.2 million ($1.74 per basic share) in 2004. • Videotron realigned the telecommunications marketplace Quebecor’s revenues were $10.21 billion and operating in Québec by launching an IP-based residential income was $1.54 billion. telephone service, the success of which has surpassed all expectations. • TVA Group continued investing in its specialty channels, in incorporating the analog television station Sun TV, acquired at the end of 2004, into its operations, and in new magazine launches. • Nurun acquired an interactive agency in China, breaking into the high-potential Asian market. PIERRE KARL PÉLADEAU President and Chief Executive Officer JEAN NEVEU Chairman of the Board QUEBECOR INC. 5 Videotron still in growth mode In the Newspapers segment, Sun Media Corporation Videotron was a formidable growth driver for Quebecor remains, year after year, one of Canada’s most profitable again in 2005. In recent years, Videotron has withstood the newspaper chains. In 2005, Sun Media Corporation assault from satellite television services while providing an announced two major capital projects worth $110.0 million Internet access service of superior quality and competing each. The first involves modernizing the Journal de Montréal head-on with the big phone companies in residential printing plant and relocating it to a cutting-edge facility in telephone service, a field in which they have had a monopoly Saint-Janvier-de-Mirabel, north of Montréal. The second for more than 100 years. At the beginning of 2005, involves the construction of a new printing plant in Videotron became the first major cable provider in Canada Islington, in the Toronto area, to be operated jointly by to offer its customers high-quality IP-based telephone Quebecor Media and Quebecor World. Quebecor Media service, and it did so at prices that defy competition. plans to apply the business model that has worked so well in Québec and unite its media properties in the Ontario market Videotron took advantage of the introduction of its into a strong, consistent, convergent voice, for the benefit of IP telephone service to launch a large-scale campaign to customers and advertisers. promote its bundled services, which proved immensely successful. In addition to signing up no less than 163,000 customers for its new IP telephone service, Videotron logged Sun Media Corporation remains, year record annual customer growth figures for its cable Internet access and illico Digital TV services. At the end of 2005, after year, one of Canada’s most illico Digital TV had 474,600 customers, a one-year increase profitable newspaper chains of 140,900 (42.2%), and the cable Internet access service had 638,000 customers, an increase of 135,400 (26.9%) from 2004. In the Broadcasting segment, TVA Group maintained its market dominance in 2005. During the fall 2005 season, the TVA Network, propelled by the repeated phenomenal success of the reality talent show Star Académie, had With the addition of telephone service, 19 of the 20 most popular television programs in Québec Videotron now provides genuine one-stop and a total audience share of 31%, more than its two main shopping for telecommunications and rivals, Radio-Canada (15%) and TQS (13%), combined. TVA Films had a successful year, largely because of the entertainment solutions stellar performance of the films C.R.A.Z.Y. and White Noise, combined with excellent numbers for DVD releases of humour shows and television programs. With the addition of telephone service, Videotron now provides genuine one-stop shopping for telecommunications Archambault Group and Quebecor Media’s Books and entertainment solutions.
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