ANNUAL INFORMATION FORM Fiscal year ended August 31, 2015 Corus Entertainment Inc. November 9, 2015 ANNUAL INFORMATION FORM ‐ CORUS ENTERTAINMENT INC. Table of Contents FORWARD‐LOOKING STATEMENTS ........................................................................................................ 3 INCORPORATION OF CORUS .................................................................................................................. 4 Organization and Name ............................................................................................................................ 4 Subsidiaries ............................................................................................................................................... 5 GENERAL DEVELOPMENT OF THE BUSINESS ........................................................................................... 5 Significant Acquisitions and Divestitures ................................................................................................. 5 DESCRIPTION OF THE BUSINESS ............................................................................................................. 6 Strategic Priorities .................................................................................................................................... 6 Radio ......................................................................................................................................................... 7 Description of the Industry ................................................................................................................ 7 Competitive Conditions ..................................................................................................................... 8 Business Overview and Operating Strategy ....................................................................................... 8 Television .................................................................................................................................................. 12 Description of the Industry ................................................................................................................ 12 Competitive Conditions ..................................................................................................................... 14 Business Overview and Operating Strategy ....................................................................................... 15 ADDITIONAL INFORMATION CONCERNING CORUS’ BUSINESSES ............................................................ 21 Intangible Properties ................................................................................................................................ 21 Seasonality and Cycles .............................................................................................................................. 21 Economic Dependence ............................................................................................................................. 22 Environmental Protection ........................................................................................................................ 22 Employees ................................................................................................................................................ 22 Foreign Operations ................................................................................................................................... 22 Lending ..................................................................................................................................................... 22 Bankruptcy................................................................................................................................................ 22 Reorganizations ........................................................................................................................................ 22 Social or Environmental Factors ............................................................................................................... 22 Risk Factors ............................................................................................................................................... 23 Control of Corus by the Shaw Family ....................................................................................................... 23 CANADIAN COMMUNICATIONS INDUSTRY – REGULATORY ENVIRONMENT .............................................. 23 Canadian Radio‐television and Telecommunications Commission .......................................................... 23 Industry Canada ........................................................................................................................................ 24 Restrictions on Non‐Canadian Ownership ............................................................................................... 25 Broadcasting Services ............................................................................................................................... 25 Radio Undertakings .................................................................................................................................. 26 Specialty and Pay Television Networks Undertakings .............................................................................. 26 Canadian Content Requirement for Broadcasters ................................................................................... 27 Film, Television, and Interactive Digital Media Tax Credits and Grants ................................................... 27 International Treaty Co‐Productions ........................................................................................................ 27 Competition Act Requirements ................................................................................................................ 27 Investment Canada Act ............................................................................................................................ 28 Copyright Act Requirements .................................................................................................................... 28 CAPITAL STRUCTURE .............................................................................................................................. 28 Description of Capital Structure ............................................................................................................... 28 Share Constraints ..................................................................................................................................... 32 Ratings ...................................................................................................................................................... 33 MARKET FOR SECURITIES ....................................................................................................................... 34 Marketplace ............................................................................................................................................. 34 Trading Price and Volume ........................................................................................................................ 34 2 DIVIDEND POLICY ................................................................................................................................... 34 NORMAL COURSE ISSUER BID ................................................................................................................ 35 DIRECTORS ............................................................................................................................................ 36 OFFICERS ............................................................................................................................................... 37 AUDIT COMMITTEE ................................................................................................................................ 38 Charter ...................................................................................................................................................... 38 Composition of the Audit Committee ...................................................................................................... 38 Principal Accounting Fees and Services – Independent Auditors ............................................................ 38 LEGAL AND REGULATORY ....................................................................................................................... 39 INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ............................................ 39 TRANSFER AGENTS................................................................................................................................. 40 MATERIAL CONTRACTS .......................................................................................................................... 40 Senior Secured Credit Facility ................................................................................................................... 40 Trust Indenture for 4.25% Senior Unsecured Guaranteed Notes due 2020 ............................................ 40 INTERESTS OF EXPERTS .......................................................................................................................... 41 ADDITIONAL INFORMATION .................................................................................................................. 41 CORPORATE