2012 ACTIVITY REPORT Striding into the future TABLE OF CONTENTS 2012 in brief . 4 Highlights . 7 . Message to shareholders . 8 Videotron Ltd . 12 Le SuperClub Vidéotron ltée . 15 . Sun Media Corporation . 16 QMI Agency . 20 TVA Group Inc . 22 . TVA Publications Inc . 26 . Archambault Group Inc . 28 Book Group . 30 Nurun Inc . 34 Corporate social responsibility Our employees . 36 Quebecor and the environment . 38 Partnering with the community . 41 . Directors and Officers of Quebecor Inc . 44 Directors and Officers of Quebecor Media Inc . 45 . 3 2012 ACTIVITY REPORT // 2012 IN BRIEF 2012 IN BRIEF JANUARY • Miam! a Québec television program that • Videotron Ltd. launches illico TV new celebrates the pleasure of family cooking, generation, a service with innovative premieres on the Yoopa channel. functionalities that delivers a smoother, more intuitive navigation experience. FEBRUARY • Le Journal de Montréal and Le Journal de APRIL Québec launch new Web sites with an • French agrifood giant Danone chooses interactive interface and fresh graphics. Nurun Inc. as its interactive marketing • Quebecor Media Inc. teams up with agency for China. Saguenay-area entrepreneurs to form • Quebecor Media Network Inc. and Sears BlooBuzz Studios L.P. (now BlooBuzz Canada Inc. sign exclusive agreement for Studios Holding, L.P.), a new Québec video the distribution of Sears’ national flyer in game developer that will concentrate on the Le Sac Plus doorknob bag. games for the casual gaming market. • Sun Media Corporation, in collaboration with Nurun, launches 9 new regional Web MARCH portals with 57 new dedicated sites for its • TVA Group Inc. signs agreement with community newspapers. The new, more Rogers Communications Inc. to make participatory sites are designed to put the the SUN News and TVA Sports specialty user at the centre of the community. services and content from TVA Network • Launch of the new ZIK music streaming available on Rogers’ video-on-demand, service, offering the largest French-language mobile and Web platforms. music catalogue of any service available on • Quebecor Media and Québec City take an this type of platform. important step in the construction of a multipurpose arena with the finalization of the functional and technical program. The modern, functional 18,000-seat facility is scheduled to open in 2015. 4 ZIK launch on April 4, 2012 MAY AUGUST • Sun Media Corporation acquires Pub • Sun Media Corporation launches Extra, a monthly magazine distributed to ViaProprio.ca, a new no-middleman real nearly 190,000 households in Montréal’s estate site that complements the services north shore suburbs, and the community of the micasa.ca site. weekly L’Impact de Drummondville, with a circulation of nearly 50,000. SEPTEMBER • TVA Publications Inc. launches chef • 24 Hours newspapers across Canada Louis-François Marcotte’s new magazine, introduce colourful new graphics, a new Signé M. logo and lively new sections. • Videotron launches Ultimate Speed • Nurun develops a new paywall model for Internet 200, a faster-than-ever Internet Le Journal de Montréal and Le Journal access service. de Québec. Non-subscribers now have to pay to read the newspapers’ columnists JUNE online. • QMI Agency reaches exclusive agreement • Sun Media Corporation announces the with Leclerc Communication Inc. to supply reorganization of its newsgathering all newscasts for Québec City radio station operations and the implementation of a WKND 91.9. new structure that is more responsive to • Sun Media Corporation launches L’Écho customer needs and to local and national de Victoriaville, a new weekly distributed business opportunities. to more than 40,000 households in the Bois-Francs region. 5 2012 ACTIVITY REPORT // 2012 IN BRIEF OctobeR NOVEMBER • Quebecor and Quebecor Media repurchase • The VOX channel becomes MAtv and approximately 30.5 million shares of introduces a new look and a new, even Quebecor Media from the Caisse de dépôt more community-focused philosophy. et placement du Québec. The Caisse • Le Journal de Québec launches a Saguenay— retains a 24.6% interest in Quebecor Lac-Saint-Jean edition featuring local Media, a sign of its confidence in the news and exclusive reports for the region. Corporation’s strong potential and ability • TVA Group adopts a new logo to reflect to create shareholder value. its character as a strong, modern brand. • Videotron’s combo packages pass the • Quebecor Media Out of Home, a new million-customer mark, demonstrating division of Quebecor Media, lands 20-year positive consumer response to its offerings. contract for advertising on Société de • VLB éditeur releases the first three novels transport de Montréal bus shelters. in the L’Orphéon series, a joint project by authors Stéphane Dompierre, Roxanne DECEMBER Bouchard, Geneviève Jannelle, Patrick • SUN+ is launched and a paywall is Senécal and Véronique Marcotte that introduced for the Toronto, Ottawa, proves to be one of the literary highlights Calgary, Winnipeg and Edmonton of 2012. SUN newspaper Web sites. • Léger Marketing releases a survey • Major renovations completed at showing that one small or medium-sized Archambault Group Inc.’s flagship store business out of two now sources at least at the corner of Berri and Sainte-Catherine one of its telecommunications services Streets create a more plugged-in from Videotron Business Solutions. environment. • Pattison Outdoor chooses QMI Agency as the prime content provider for its national digital advertising network. 6 HIGHLIGHTS Financial years ended December 31, 2012, 2011 and 2010 (in millions of Canadian dollars, except per share data) 2012 2011 2010 OPERATIONS Revenues $ 4,351.8 $ 4,206.6 $ 4,000.1 FAITSFAITS SAILLANTS SAILLANTSOperating income1 1,403.6 1,341.7 1,333.4 ExercicesExercices terminés terminésles 31 décembre les 31 décembre 2012,Contribution 2011 2012, et 2010 2011 toet 2010 net income attributable to shareholders: (en millions(en de millions dollars de canadiens, dollars canadiens, sauf pour sauf lesContinuing montantspour les montants relatifs operations aux relatifs données aux donnéespar action) par action) 196.1 191.5 220.6 2012 2012 2011 2011 2010 2010 FAITS SAILLANTSGain on valuation and translation of financial instruments 75.4 20.6 20.8 EXPLOITAEXPLOITION TATION Exercices terminésUnusual les 31 itemsdécembre 2012, 2011 et 2010 (103.8) (11.1) (16.1) RevenusRevenus 4 351,8 4 $ 351,8 $ 4 206,6 4$ 206,6 $ 4 000,1 4$ 000,1 $ (en millionsNet de income dollars canadiens, attributable sauf pour to les shareholdersmontants relatifs aux données par action) 167.7 201.0 225.3 Bénéfice Bénéficed'exploitation d'exploitation 1 1 1 403,6 1 403,6 2012 1 341,7 1 341,7 2011 1 333,4 1 333,4 2010 ContributionContribution au bénéfice au bénéficenet attribuableEXPLOITATION net attribuableCash aux actionnaires flows aux actionnaires provided : : by continuing operations 1,122.6 866.3 809.9 Activités Activitésd'exploitation d'exploitation poursuiviesRevenus poursuivies 196,1 196,1 4 351,8 $ 191,5 191,5 4 206,6 $ 220,6 220,6 4 000,1 $ Gain sur Gainévaluation sur évaluation et conversion et conversion des instruments des instruments financiers1 financiers 75,4 75,4 20,6 20,6 20,8 20,8 BénéficeBASIC d'exploitation PER SHARE DATA 1 403,6 1 341,7 1 333,4 ÉlémentsÉléments inhabituels inhabituels et dépréciation et dépréciation de l'écart de d'acquisition l'écart d'acquisition et d'actifs et incorporels d'actifs incorporels (103,8) (103,8) (11,1) (11,1) (16,1) (16,1) Bénéfice Bénéficenet attribuable net attribuable aux actionnaires Contributionaux actionnairesContribution au bénéfice net to attribuable net income aux actionnaires attributable : to shareholders: 167,7 167,7 201,0 201,0 225,3 225,3 Activités d'exploitation poursuivies 196,1 191,5 220,6 Gain sur évaluationContinuing et conversion operations des instruments financiers $ 3.1075,4 $ 2.99 20,6 $ 3.42 20,8 Flux de trésorerieFlux de trésorerie liés aux activités liés aux d'exploitationactivités d'exploitation poursuivies poursuivies 1 122,6 1 122,6 866,3 866,3 809,9 809,9 Éléments inhabituelsGain on et valuation dépréciation deand l'écart translation d'acquisition et of d'actifs financial incorporels instruments (103,8)1.19 0.32 (11,1) 0.32 (16,1) Bénéfice net attribuable aux actionnaires 167,7 201,0 225,3 DONNÉESDONNÉES PAR ACTION PAR ACTIONDE BASE DE BASEUnusual items (1.64) (0.17) (0.24) ContributionContribution au bénéfice au bénéficenet attribuableFlux net deattribuableNet auxtrésorerie actionnairesincome aux liés actionnairesaux attributable :activités d'exploitation: to shareholders poursuivies 1 122,62.65 3.14 866,3 3.50 809,9 Activités Activitésd'exploitation d'exploitation poursuivies poursuivies 3,10 $ 3,10 $ 2,99 $ 2,99 $ 3,42 $ 3,42 $ Gain sur Gainévaluation sur évaluation et conversion etDONNÉES conversion des instruments PAR des ACTION instruments financiers DE BASE financiers 1,19 1,19 0,32 0,32 0,32 0,32 ÉlémentsÉléments inhabituels inhabituels et dépréciation etContribution dépréciation Dividendsde l'écart au bénéfice de d'acquisition l'écart net d'acquisition attribuable et d'actifs aux et incorporels d'actifsactionnaires incorporels : (1,64) (1,64) 0.20 (0,17) (0,17)0.20 (0,24) 0.20 (0,24) Bénéfice Bénéficenet attribuable net attribuable aux actionnaires auxActivités actionnaires d'exploitation poursuivies 2,65 2,65 3,10 $ 3,14 3,14 2,99 $ 3,50 3,50 3,42 $ GainShareholders’ sur évaluation et conversion equity des instruments financiers 20.76 1,19 22.28 0,32 20.29 0,32 DividendesDividendes ÉlémentsWeighted inhabituels average et dépréciation