Shaw 2010 Annual Report Download - page 6

kWe continued to grow the broadband business adding 110,000 Internet customers. We have
increased the penetration rate and now the equivalent of 78% of Basic subscribers use our
Internet service.
kDigital Phone is a great success; we achieved record customer growth in fiscal 2010, adding
over 230,000 Digital Phone lines and now have 1.1 million Digital Phone lines since our first
market launch in February 2005.
We continued to invest in technology initiatives to recapture bandwidth and optimize our network,
including increasing the number of nodes on the network and using advanced encoding and digital
compression technologies such as MPEG4. We also continued to enhance our video offerings;
introduced the Shaw Wireless Gateway, a modem and router in one, which provides a secure, fast
Wi-Fi connection to the Internet; and commenced trials of a 1 Gigabit Internet service, with speeds
ten times faster than High Speed Nitro. The trial utilizes Fibre-to-the-Premises (FTTP) and will be
able to support new, cutting-edge Internet applications.
During 2010 we also completed the purchase of Mountain Cablevision Ltd. (“Mountain Cable”).
Mountain Cable is based in Hamilton, Ontario and was one of the larger remaining independent
cable companies in Canada. The outlook for the Canadian cable industry is attractive and acquiring
Mountain Cable represented a unique opportunity to grow our core business.
OUR FINANCIAL POSITION
The Corporation’s efforts to maintain a strong balance sheet and solid financial metrics resulted in
achieving investment grade status with all three rating agencies during fiscal 2009. This assisted
us in raising almost $2.0 billion in debt in fiscal 2010. These proceeds were secured at attractive
long-term rates and enabled us to complete a significant refinancing of more expensive
US denominated debt. The Canwest acquisition did not affect our investment grade ratings.
As we move forward, our solid balance sheet will continue to provide access to capital, giving us the
flexibility to invest to maximize our competitive advantages and ensuring our ability to capitalize as
opportunities arise.
OUR FUTURE
Recently, the Corporation’s Board of Directors announced the orderly evolution of executive
management responsibilities with the appointment of Brad Shaw as Chief Executive Officer
effective November 17, 2010. Brad Shaw has been an employee of the Corporation since
1987, moving through a succession of increasingly responsible positions, most recently as
Executive Vice President. Brad will continue the same commitment to customer service, the same
prudent financial management and the same growth strategy that has successfully rewarded
investors in the Company over its history. This transfer of responsibilities will serve the Corporation’s
shareholders and stakeholders for many years to come.
Our Board also acknowledged the tremendous accomplishments of Jim Shaw over his 28 years as an
employee including his past 12 years as CEO. Jim Shaw started with Shaw Communications in
1982 as an installer on Vancouver Island. He learned every aspect of our business and rose through
management to become Chief Executive Officer in 1998. In his 12 years as CEO, revenue grew from
$600 million to $3.7 billion, our customer base more than doubled, our market share in Canada
grew from 18% to 30% and market capitalization quadrupled. Regular dividends to shareholders
were initiated and currently provide a yield of approximately 4%. Jim managed to grow the business
through periods of incredible competition, technological change and uncertainty. He made
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Shaw Communications Inc.
REPORT TO SHAREHOLDERS
August 31, 2010