Cogeco 2005 Annual Report Download - page 12

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Cogeco Cable Inc. 2005
Message to shareholders
Renewed Internal Processes
We are pursuing our continuous improvement efforts in compliance with Bill 198 and the associated regulations. This strategic plan focuses
on the improvement of our controls and processes to ensure disclosure of financial information in accordance with increasing demands
from investors and shareholders. The resulting operational improvement is designed to secure a stronger market position and added value
for shareholders.
In the same line of thought, it is worth noting the significant improvement achieved by Cogeco Cable in the area of corporate governance.
According to the annual review of corporate governance practices which appeared in the Globe and Mail in October 2004, Cogeco Cable was
one of the companies that showed the greatest improvement in its governance practices in Canada and the position of the Corporation in this
respect is maintained in October 2005. Our Board of Directors and the officers of the Corporation continue to make corporate governance
an essential criterion for decision-making and for the Corporation’s growth.
2006: a Year of Growth
The future holds great possibilities for the cable industry. The 2006 fiscal year will be an opportunity for us to consolidate our avenues
of growth, both by expanding and improving our product and service line and through potential acquisitions.
Having surpassed most of our objectives for 2005, as shown by the increases in Operating Income, net income and the number of HSI
and digital customers, we at Cogeco Cable will forge ahead. We anticipate 36% growth in net income and a 5.5% Return on Equity despite
the launch of several promising new services.
During the next fiscal year, we shall continue our search for new growth opportunities. Apart from launching new products and approaching
new clientele, in particular by expanding our telephony offer, we shall be on the lookout for any external growth opportunity that might meet
the Corporation’s objectives. Therefore, Cogeco Cable examines opportunities for acquiring cable networks with a critical mass of customers
in attractive territories, in or outside Canada, at a fair price, whenever they arise, always with a view to increasing the potential for growth
and corporate value.
In a more distant future, the migration of our IP platform to the DOCSIS 3.0 standard will make transmission speeds of up to 200 Mbps possible.
Switched digital broadcasting will provide improved video service and better bandwidth use. As for digital telephony, it will generate numerous
applications that, until recently, were in the realm of science fiction.
A Tradition of Growth
Cogeco Cable’s objective is to maintain sustained and profitable growth from year to year, both from organic and external sources. This approach
will continue to prevail in 2006 and in future fiscal years.
The invaluable contribution of the Board of Directors deserves mention. The Board provides enlightened leadership, particularly in the areas
of corporate governance, results tracking and strategic planning, and we are profoundly grateful to the Directors.
One of the members on the Board of Directors will not be seeking a new mandate at the December 2005 Shareholder’s Meeting. Mr. Pierre Robitaille,
a member of the Board since 2002, has earned our most sincere gratitude for his contributions to the Board of Directors which includes serving
as member of the Audit Committee and of the Human Resources Committee.
In all these efforts, the contribution of our valued partners, the employees of Cogeco Cable, enables the Corporation to move forward
in a harmonious and successful fashion. The qualities that they possess, such as flexibility, passion, commitment and discipline, are what make
Cogeco Cable a growth company, resolutely turned towards the future, and we extend our warm thanks.
At Cogeco Cable, growth is the result of expansion, consolidation, development, new products and services introduction, all supported
by competent and committed employees constantly moved by the desire to improve customer service.
Louis Audet Jan Peeters
President and Chief Executive Officer Board Chair