Corus Cares Corporate Social Responsibility Report 2015 Corus Vision At Corus, our vision is to be globally recognized as Canada’s most influential entertainment company. We are achieving that vision with the hard work and commitment of our talented employees, many of whom are award winners in their fields. We also have a strong set of Core Values and we believe that honouring them drives our success. These values help provide clarity and focus – we are proud to live them each day. Corus Values Accountability We do what we say we’ll do – no excuses. Initiative We empower employees to make great things happen. Knowledge Innovation We believe in We are committed to continuous learning creative thinking that leads and the sharing to breakthrough ideas of our insights and superior results. and ideas. Teamwork We believe that the greatest value is realized when we work together. Contents 2 Corus Entertainment’s Vision and Values 12 Our Employee Story 4 Message from Heather Shaw 16 Our Industry Story 5 Message from Doug Murphy 18 Our Sustainability Story 6 Our Corus Story - Quick Facts 20 Significant Events 8 Our Community Story 22 Our Board of Directors and Assets Heather Shaw Executive Chair This is a milestone year for Corus as we celebrate our 15th anniversary as a publicly traded company. Corus was launched September 1, 1999 with three specialty television networks and 11 radio stations and has grown to become a major force in the media and entertainment industry, offering a rich portfolio of exceptional brands and content that delight consumers in Canada and abroad. This anniversary year also marks the appointment of our new President and Chief Executive Officer, Doug Murphy, with the retirement of Corus’ founding President and CEO, John Cassaday, in March 2015. Over the past 12 years, Doug has held a number of senior roles within the company and has a deep understanding of Corus’ operations, culture and capabilities. We are excited about the leadership skills that he brings to the business and we are confident that we will build on our legacy of growth in the years ahead. That said, we realize we are facing some headwinds in the changing media landscape. The shift to digital is impacting the traditional media ecosystem and driving changes in consumer behaviour. The entry of over-the-top (OTT) players who are bypassing the traditional system is creating a new competitive dynamic. We are also seeing increased advertising dollars shifting to the digital realm and we are facing higher programming costs with more buyers in the marketplace. In addition, as a result of the CRTC’s Let’s Talk TV process and changes in the packaging model, consumers will be given more choice. These shifts in the industry will require that we evolve, adapt and innovate to ensure our long term success. As we move forward, we remain focused on driving value and performance for our business. Our strong asset base and talented employees are critical to our success. Since Corus began, we have fostered a culture of accountability, innovation and creativity, and with this in mind, each year we recognize our employees who do great things. We also remain committed to investing in training and development to help our employees reach their full potential through mentorship, on the job training and Corus U programs. As part of this commitment, Corus expanded its Corus U offerings and launched a new online training hub. As a result of our efforts, Corus received a number of awards this year. Among them, Corus was recognized as one of Canada’s Top 100 Employers for 2015 and also received an International Emmy® for Nelvana’s new preschool brand Mike the Knight – which is a tribute to the great creative talent working in this company. On a broader level, as one of Canada’s major media companies, Corus has played a critical role supporting the development of a vibrant and sustainable industry committing expertise, time and millions of dollars to the development of talent and the creation of content that contributes to Canada’s overall cultural and economic success. In just 15 years, the company has accomplished a great deal. Our story has just begun and there is still a lot more to come. Thank you to the executive leadership team and to everyone at Corus for your contribution. 4 Corus Entertainment Corporate Social Responsibility Report 2015 Doug Murphy President and Chief Executive Officer This is an exciting time for us. The world is changing quickly and while this can create some challenges, it also represents opportunities. Entertaining and informing our audiences through great storytelling and compelling content is at the heart of what we do. With our strong brands, coveted content and state-of-the-art technology, we can capitalize on the opportunities around us and grow our business for the long term. As consumers move between the traditional media landscape and an array of digital offerings, overall media consumption is up. With these changes, we need to ensure that we are delivering our content to our viewers and listeners on a variety of platforms, whenever and wherever they want to access it. The CRTC has provided us with more programming flexibility, while offering more choice to consumers. In the new regulatory environment, it is critical that our brands and content remain top choices with consumers and that we bring new and innovative approaches to our business to maintain our competitive edge. We will be guided by our four key strategic priorities, which build on our strengths and capabilities — 1. To own and control more content; 2. To strengthen key partnerships; 3. To expand into new markets; and, 4. To grow organically — and we are actively executing on those goals. While we are focused on our business performance, we also measure our success on our ability to be a responsible business, one that serves and gives back to our communities, supports our industry and in turn, contributes to a healthy economy. On this front, we are also making notable progress. In 2012, Corus introduced Corus Feeds Kids as the company’s new philanthropic focus. When we launched Corus Feeds Kids, our goal was to raise $3 million and contribute 3,000 volunteer hours in three years. Through our employees’ efforts and the contributions from our audiences and partners, we are pleased to report that we have surpassed this goal by raising over $3.6 million and contributing almost 4,000 hours of volunteer time in that three-year time period. This is a great accomplishment. We can all be proud. On the industry front, since our inception, we have contributed over $39 million towards talent development and triggered over $2 billion in independent Canadian television production. None of this would be possible without our employees who remain our greatest asset and we continue to help develop our team through learning and development opportunities. As well, as part of our compensation and benefits package, this year, we introduced a matching program to our pension plan which, with employees’ 3% contribution, results in an overall contribution rate of 9%. We are very pleased that 70% of our employees have enrolled in this program. We also remain committed to sustainability and minimizing our environmental footprint. This year, our media and broadcast centre, Corus Quay, was awarded LEED® Gold Certification as a result of our ongoing efforts on this front. As we look ahead, we are excited about the future and the contributions we can make to serve our customers, our partners, our shareholders and our communities. We would like to thank our employees for their passion and commitment, and our stakeholders for their ongoing support. Corus Entertainment Corporate Social Responsibility Report 2015 5 Our Corus Story – Quick Facts OUR COMMUNITY STORY $227 4,000 $5.2 MILLION VOLUNTEER MILLION Raised through our HOURS Raised for United Way philanthropic efforts since Contributed by employees for since 2002 the company’s inception Corus Feeds Kids supported agencies across the country OUR EMPLOYEE STORY AWARDS GIVEN SINCE CORUS’ INCEPTION 90% 117 EMPLOYEES 10 EMPLOYEES Recognized with Recognized with Response rate on our a Samurai Award a Citizenship Award 2014 employee survey 43 TEAMS 53 INDIVIDUALS Recognized with Recognized with a 8,400 a President’s Award Creative Spark Award Total Corus U training hours (in-class) since 2009 2,029 Employees at Corus 6 Corus Entertainment Corporate Social Responsibility Report 2015 OUR INDUSTRY STORY $39 MILLION $2BILLION Contributed towards Corus Radio talent Invested in original and independent development initiatives since inception Canadian TV production since inception 900 2 MILLION AWARDS Copies of the Scaredy Squirrel Granted to Corus in 15 years books sold worldwide 5.85 160 + MILLION COUNTRIES Hours of content streamed from Corus Radio station websites each month Carry Nelvana programming HOURS Triggered in Canadian TV 8,500 production in 2014 OUR SUSTAINABILITY STORY 31.4 1,215 80.2% TONNES TREES SAVED Corus Quay’s diversion Recycled office paper Through recycling initiatives rate in 2014 at Corus Quay in 2014 at Corus Quay in 2014 Corus Entertainment Corporate Social Responsibility Report 2015 7 OUR COMMUNITY Below: Corus Quay employees volunteer at FoodShare Toronto STORY Supporting and enriching our communities through corporate donations, sponsorship and volunteerism is an integral part of Corus Entertainment. With a long history We succesfully achieved of social responsibility, our employees have our goal to raise embraced the philosophy of giving back to $3 MILLION the community by supporting worthwhile and contribute causes company-wide, with an emphasis on 3,000 EMPLOYEE working together and contributing to the HOURS in 3 years communities in which we live and work.