ANNUAL INFORMATION FORM Fiscal year ended August 31, 2013 Corus Entertainment Inc. November 29, 2013 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 Radio ......................................................................................................................................................... 6 Description of the Industry ................................................................................................................ 6 Competitive Conditions ..................................................................................................................... 7 Business Overview ............................................................................................................................. 8 Operating Strategy ............................................................................................................................. 11 Television .................................................................................................................................................. 11 Description of the Industry ................................................................................................................ 11 Competitive Conditions ..................................................................................................................... 14 Business Overview ............................................................................................................................. 15 Operating Strategy ............................................................................................................................. 18 ADDITIONAL INFORMATION CONCERNING CORUS’ BUSINESSES ............................................................ 20 Intangible Properties ................................................................................................................................ 20 Seasonality and Cycles .............................................................................................................................. 21 Economic Dependence ............................................................................................................................. 21 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 ........................................................................................................................................ 23 Restrictions on Non‐Canadian Ownership ............................................................................................... 24 Broadcasting Services ............................................................................................................................... 24 Radio Undertakings .................................................................................................................................. 25 Specialty and Pay Television Networks Undertakings .............................................................................. 25 Canadian Content Requirement for Broadcasters ................................................................................... 26 Film, Television, and Interactive Digital Media Tax Credits and Grants ................................................... 26 International Treaty Co‐Productions ........................................................................................................ 26 Competition Act Requirements ................................................................................................................ 26 Investment Canada Act ............................................................................................................................ 27 Copyright Act Requirements .................................................................................................................... 27 CAPITAL STRUCTURE .............................................................................................................................. 27 Description of Capital Structure ............................................................................................................... 27 Share Constraints ..................................................................................................................................... 32 Ratings ...................................................................................................................................................... 32 MARKET FOR SECURITIES ....................................................................................................................... 33 Marketplace ............................................................................................................................................. 33 2 Trading Price and Volume ........................................................................................................................ 33 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 ............................................ 40 TRANSFER AGENTS................................................................................................................................. 40 MATERIAL CONTRACTS .......................................................................................................................... 40 Senior Secured Credit Facility ................................................................................................................... 40 Trust Indenture for 4.25% Senior Unsecured Guaranteed Notes due 2020 ............................................ 41 INTERESTS OF EXPERTS .........................................................................................................................