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COGECO CABLE INC. ANNUAL REPORT 2007
ANNUAL
REPORT
2007

Table of contents

  • Page 1
    ANNUAL REPORT 2007

  • Page 2
    ... 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 1972 1977 1982 1987 1992 1997 2002 2007 ANNUAL REPORT 2007 COGECO CABLE INC.

  • Page 3
    ...COGECO CABLE" OR "THE CORPORATION") IS A MAJOR CABLE TELECOMMUNICATIONS COMPANY WITH SHARES LISTED ON THE TORONTO STOCK EXCHANGE (TSX) UNDER THE SYMBOL CCA. COGECO CABLE BUILDS ON ITS CABLE DISTRIBUTION BASE OFFERING ANALOGUE AND DIGITAL TELEVISION, HIGH SPEED INTERNET AND TELEPHONY SERVICES. COGECO...

  • Page 4
    ... Mbps MHz RGU SVOD VOD WI-FI AVERAGE MONTHLY SERVICE REVENUE PER BASIC CABLE SERVICE CUSTOMER DATA OVER CABLE SERVICE INTERFACE SPECIFICATIONS DIGITAL VIDEO RECORDER (SAME AS PERSONAL VIDEO RECORDER OR PVR) EURO CURRENCY EUROPEAN UNION HIGH DEFINITION HIGH SPEED INTERNET INTERNET PROTOCOL KILO BITS...

  • Page 5
    ...RATIOS OPERATING MARGIN(1) RETURN ON EQUITY(1) NET INDEBTEDNESS(3) ON OPERATING INCOME BEFORE AMORTIZATION INTEREST COVERAGE 39.5% 8.9% 2.6 4.4 40.8% 9.1% 4.9 4.4 CUSTOMERS RGU BASIC CABLE SERVICE CUSTOMERS PENETRATION AS A PERCENTAGE OF HOMES PASSED HSI SERVICE CUSTOMERS DIGITAL TELEVISION SERVICE...

  • Page 6
    MESSAGE TO SHAREHOLDERS Dear Friends: DURING FISCAL 2007, COGECO CABLE MAINTAINED ITS FOCUS ON GROWTH AND IMPROVING CUSTOMER SATISFACTION. OUR PERFORMANCE-WHETHER IN TERMS OF REVENUE, OPERATING INCOME BEFORE AMORTIZATION, OR NET INCOME-WERE ALL UP. FREE CASH FLOW WAS HIGHER THAN THE ORIGINAL 2007 ...

  • Page 7
    ... Complete Connection, which is Cogeco's Telephone, Television and Internet triple-play offering, was a resounding success. Rounding out this offering were new HD and standard-definition channels as well as 1,600 hours of VOD programming. What's more, the new Wi-Fi service offered by Cogeco Cable in...

  • Page 8
    ..., Cogeco Cable intends to continue being a player with a measured and confident strategy that, first and foremost, focuses on development and added value for shareholders and customers. LOUIS AUDET PRESIDENT AND CHIEF EXECUTIVE OFFICER JAN PEETERS BOARD CHAIR 6 COGECO CABLE INC. 2007 Message...

  • Page 9
    .... OVERVIEW OF THE BUSINESS - CORPORATE OBJECTIVES AND STRATEGIES - CABLE NETWORKS - KEY PERFORMANCE INDICATORS - CRITICAL ACCOUNTING POLICIES AND ESTIMATES - RELATED PARTY TRANSACTIONS - ADOPTION OF NEW ACCOUNTING STANDARDS - CONTROLS AND PROCEDURES - UNCERTAINTIES AND MAIN RISK FACTORS PERFORMANCE...

  • Page 10
    ... in Ontario, Québec and Portugal in terms of the number of Basic Cable service customers served. The Corporation's operations are supported by hybrid fibre and co-axial cable broadband networks. The Corporation provides its residential and business customers with Analogue and Digital Television as...

  • Page 11
    ... 69,000, an increase of 10% compared to RGUs at the end of fiscal 2007. CABLE NETWORKS CANADA Digital Television and VOD services are available to 98.4% and 90.8% of homes passed, respectively, and 93.8% of homes passed are served by a two-way cable plant. Cogeco Cable's optical fibre network...

  • Page 12
    ...ão, Cogeco Cable's subsidiary in Portugal, fully owns its distribution networks, headends and drops. Digital Television services have been introduced during the last quarter of fiscal 2007 and all existing analogue set-tops will be replaced by digital set-tops over the next 18 months. VOD services...

  • Page 13
    ... the main sources is as follows: • Monthly fees from Basic Cable Television and related services, HSI and Telephony services are recognized when services are provided. • Since management considers the sale of home terminal devices as a single unit of accounting of a multiple element arrangement...

  • Page 14
    ...lives of certain assets, which could result in a higher amortization expense in future periods. CAPITALIZATION OF LAUNCH COSTS, COSTS TO ACQUIRE CUSTOMERS AND SUBSIDIES ON EQUIPMENT The Corporation incurs significant marketing costs during the launch of new services, such as new digital tiers, VOD...

  • Page 15
    ...2007, Cogeco Cable charged COGECO an amount of $0.3 million with regards to Cogeco Cable's options granted to COGECO's employees. Under the Management Agreement, the Corporation pays monthly fees equal to 2% of its total revenue to COGECO for the above-mentioned services. In 1997, the management fee...

  • Page 16
    ... basis of financial reporting for public companies. The Corporation will convert to these new standards according to the timetable set with these new rules. The Corporation will closely monitor changes arising from this convergence. 14 COGECO CABLE INC. 2007 Management's Discussion and Analysis

  • Page 17
    ... increased penetration of Digital Television, HSI and Telephony services and the launch of different types of home terminal devices has heightened the complexity of tracking such customer premise equipment. Existing information systems at Cogeco Cable record such equipment located in its warehouse...

  • Page 18
    ... and management of this major competitor will affect market dynamics in the two Provinces, notably with respect to the anticipated rollout of IPTV services over its fixed wireline platform. Telus Communications Company competes with all of Cogeco Cable's services in the Lower St. Lawrence area of...

  • Page 19
    ... the calendar year the distribution of the shares that it owns in PTM to its own shareholders and, thus, cease to hold a controlling equity interest in PTM. PTM owns TV Cabo, the largest cable telecommunications operator in Portugal, and also offers a direct-to-home satellite distribution service to...

  • Page 20
    ...and business local access telephone services of the incumbent telephone companies in most of the geographic markets served by the Corporation in Ontario and Québec. As a result, Bell Canada and Telus are now free to price and bundle their residential and business local access telephone services and...

  • Page 21
    ... so as to secure continued operating margin growth. The two largest drivers of cost of goods sold are network fees paid to audio and video service suppliers as well as data transport and connectivity charges, mostly for Internet traffic. The market for audio and video programming services in Canada...

  • Page 22
    ... service options, customer account management, internal controls, provisioning, billing and the rollout of new services. The Corporation uses different customer relations management tools and databases for its operation respectively in Ontario, Québec and Portugal. The agreement with the main...

  • Page 23
    ... services. Cogeco Cable maintains, as well, appropriate relations with its key personnel. The Corporation's success depends to a significant extent on its ability to attract and retain its managers and skilled employees in an increasingly competitive market. The Corporation's inability or failure...

  • Page 24
    ...indirect wholly-owned subsidiary of Cogeco Cable, compared to $11.9 million for its one month of operations in fiscal 2006. Management fees paid to COGECO Inc. amounted to $8.6 million, an increase of 2.1% over fiscal 2006, and are discussed in detail in the "Related Party Transactions" section on...

  • Page 25
    ... of the purchase price allocation of the Cabovisão acquisition, as well as the increased capital expenditures arising from customer premise equipment demand, scalable infrastructure, upgrade/rebuild, support capital and deferred charges for the Canadian operations. Fiscal 2007 financial expense...

  • Page 26
    ... outï¬,ows in fiscal 2007 compared to fiscal 2006. On a per share basis, cash ï¬,ow from operations increased from $4.87 in fiscal 2006 to $6.58 in fiscal 2007, mainly as a result of improved operating income before amortization. 24 COGECO CABLE INC. 2007 Management's Discussion and Analysis

  • Page 27
    ... transaction, the Term Facility and the operating line of credit of the Corporation were restructured by an amended and restated credit agreement (see note 11 a) of the consolidated financial statements of the Corporation on page 59). Management's Discussion and Analysis COGECO CABLE INC. 2007 25

  • Page 28
    ... of the launch of Digital Television service. The rise in capital expenditures for the Canadian operations will stand from a $5.7 million increase in customer premise equipment to serve RGU growth, from $11.1 million in line extensions to serve an increased number of homes passed and from a $13...

  • Page 29
    ...related to equipment subsidies is the result of the consolidation of the full year of operations of Cabovisão. Reconnect costs increase is due to the higher-than-anticipated demand for Basic Cable, HSI, Telephony and Digital Television services. New services launch costs consist mainly of marketing...

  • Page 30
    ... "FISCAL 2008 FINANCIAL GUIDELINES" SECTION ON PAGE 38 FOR FURTHER DISCUSSION. (2) INDEBTEDNESS NET OF CASH AND CASH EQUIVALENTS. (3) CABOVISÃO'S 2006 FINANCIAL RESULTS ARE FOR A ONE-MONTH OPERATION. 6.5% 55% 1.9 years 0.7 2.1 5.9 28 COGECO CABLE INC. 2007 Management's Discussion and Analysis

  • Page 31
    ...,059 OPTIONS TO PURCHASE SUBORDINATE VOTING SHARES OUTSTANDING OPTIONS EXERCISABLE OPTIONS During fiscal 2007, the Corporation completed two public offerings totalling 8,000,000 subordinate voting shares for gross proceeds of $346 million. The offerings resulted in net proceeds to Cogeco Cable of...

  • Page 32
    ...ão acquisition. Cogeco Cable maintains a working capital deficiency due to a low level of accounts receivable since the majority of the Corporation's customers pay before their services are rendered, contrary to accounts payable and accrued liabilities, which are paid after products or services...

  • Page 33
    ... GUARANTEES In the normal course of business, Cogeco Cable enters into agreements containing features that meet the criteria for a guarantee. In connection with the acquisition of business or sale of assets, in addition to possible indemnification relating to failure to perform covenants and breach...

  • Page 34
    ... AREAS SERVED. ACCORDING TO THE FISCAL 2006 ANNUAL REPORT. REPRESENT THE SUM OF BASIC CABLE, DIGITAL TELEVISION, HSI AND TELEPHONY SERVICE CUSTOMERS. CUSTOMERS SUBSCRIBING ONLY TO HSI OR TELEPHONY SERVICES AMOUNTED TO 68,367 AS AT AUGUST 31, 2007 COMPARED TO 61,208 AS AT AUGUST 31, 2006. 32 COGECO...

  • Page 35
    ... of $1.50 for certain bundled services in Ontario in April 2007. - Monthly rate increases of up to $3 per customer, averaging $1 per Basic Cable service customer, took effect in March 2007 in Ontario and in April 2007 in Québec. In addition, new digital services and VOD services contributed to the...

  • Page 36
    ...management fees payable to COGECO Inc., rose by $65.9 million, or 19%. However, network fees increased by 17.9% during the same period mainly attributable to the continuous rollout of the Telephony service in new areas and RGU growth. The increase of the other operating costs is related to servicing...

  • Page 37
    ...and a rate increase of $1 (¤0.70) per Basic Cable service customer took effect in March 2007. The Portuguese ARPU stood at $63.66 for fiscal 2007 compared to $62.66 for one month of operations as a subsidiary in 2006. OPERATING COSTS For fiscal 2007, Cabovisão's operating costs amounted to $147...

  • Page 38
    ... Cogeco Cable offers its services in several university and college towns such as Kingston, Windsor, St. Catharines, Hamilton, Peterborough, Trois-Rivières and Rimouski in Canada. Furthermore, the third and fourth quarter's operating margin is usually higher as no management fees are paid to COGECO...

  • Page 39
    ...TO THE ANNUAL TOTAL GIVEN ROUNDING. 2007 VS 2006 FOURTH QUARTER OPERATING RESULTS Consolidated revenue rose by $69.4 million, or 39.7%, of which $30.4 million, or 19.3%, relates to Canadian operations and is mainly attributable to improved HSI, Telephony, Basic Cable and Digital Television service...

  • Page 40
    ... 2008. Cogeco Cable plans to expand its Canadian Basic Cable service clientele through consistently effective marketing, competitive product offering and superior customer service. As the penetration of HSI and Digital Television services increase, the demand for these products should slow down but...

  • Page 41
    ... OPERATING MARGIN CAPITAL EXPENDITURES AND DEFERRED CHARGES 810 338 ABOUT 41% 215 CUSTOMER NET ADDITION GUIDELINES BASIC CABLE SERVICE HSI SERVICES DIGITAL TELEVISION SERVICES TELEPHONY SERVICE RGUs 10,000 55,000 45,000 80,000 190,000 Management's Discussion and Analysis COGECO CABLE INC. 2007...

  • Page 42
    ... is $1.4250 per euro. ADDITIONAL INFORMATION This MD&A was prepared on November 2, 2007. Additional information relating to the Corporation, including its Annual Information Form, is available on the SEDAR web site at www.sedar.com. 40 COGECO CABLE INC. 2007 Management's Discussion and Analysis

  • Page 43
    ... RESPONSIBILITY AUDITORS' REPORT CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENTS OF RETAINED EARNINGS 42 42 43 43 CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF CASH FLOW NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 44 45 46 Consolidated Financial Statements COGECO CABLE INC. 2007...

  • Page 44
    ... of Directors. Operating and financial information used elsewhere in the annual report is consistent with that in the financial statements. In fulfilling its responsibilities, management of Cogeco Cable Inc. and its subsidiaries has developed and continues to improve administrative and accounting...

  • Page 45
    ... dollars, except per share data) 2007 $ 2006 $ REVENUE SERVICE EQUIPMENT 935,390 3,490 938,880 617,806 2,195 620,001 358,631 8,392 252,978 120,782 132,196 57,366 74,830 9,274 65,556 OPERATING COSTS (NOTE 1 M)) MANAGEMENT FEES-COGECO INC. (NOTE 18) OPERATING INCOME BEFORE AMORTIZATION AMORTIZATION...

  • Page 46
    ... SURPLUS-STOCK-BASED COMPENSATION RETAINED EARNINGS FOREIGN CURRENCY TRANSLATION ADJUSTMENT (NOTE 13) 984,405 2,419 181,952 (3,110) 1,165,666 2,714,339 630,458 1,425 117,760 (4,452) 745,191 2,602,603 ON BEHALF OF THE BOARD OF DIRECTORS, JAN PEETERS DIRECTOR HARRY A. KING DIRECTOR 44 COGECO CABLE...

  • Page 47
    ... thousands of dollars) 2007 $ 2006 $ CASH FLOW FROM OPERATING ACTIVITIES NET INCOME ADJUSTMENTS FOR: AMORTIZATION (NOTE 4) AMORTIZATION OF DEFERRED FINANCING COSTS FUTURE INCOME TAXES (NOTE 5) STOCK-BASED COMPENSATION LOSS ON DISPOSAL OF FIXED ASSETS OTHER CHANGES IN NON-CASH OPERATING ITEMS (NOTE...

  • Page 48
    ... NATURE OF OPERATIONS Cogeco Cable Inc. (the "Corporation") is a Canadian public company whose shares are listed on the Toronto Stock Exchange. The Corporation's core business is providing Cable Television, High Speed Internet and Telephony services in Canada and in Portugal (note 2). B) PRINCIPLES...

  • Page 49
    ... reporting for public companies. The Corporation will convert to these new standards according to the timetable set with these new rules. The Corporation will closely monitor changes arising from this convergence. D) REVENUE RECOGNITION The Corporation considers revenue to be earned as services...

  • Page 50
    ... companies to access their support structures in the future, making the retirement date, relating to these assets, undeterminable. F) DEFERRED CHARGES Deferred charges with anticipated future benefits include new services launch costs, equipment subsidies, reconnect costs and financing costs. New...

  • Page 51
    ... at the end of each reporting period, until settlement, using the shares' trading price at the closing date of the reporting period. K) EMPLOYEE FUTURE BENEFITS The pension costs, recorded in operating costs, related to the defined contribution pension plan and the collective registered retirement...

  • Page 52
    ... of management estimates relate to the determination of pension plan liabilities and accrued employee benefits, the determination of allowance for doubtful accounts, the determination of the fair value of assets acquired and liabilities assumed in business combinations, the useful lives of assets...

  • Page 53
    ... PAID SHARE PURCHASE PRICE WORKING CAPITAL ADJUSTMENT SECURED LENDERS DEBT AND CERTAIN SPECIFIED CABOVISÃO LIABILITIES ACQUISITION COSTS 304,188 (3,371) 274,761 6,299 581,877 NET ASSETS ACQUIRED CASH AND CASH EQUIVALENTS RESTRICTED CASH ACCOUNTS RECEIVABLE PREPAID EXPENSES FIXED ASSETS CUSTOMER...

  • Page 54
    ...REVENUE OPERATING COSTS MANAGEMENT FEES OPERATING INCOME BEFORE AMORTIZATION AMORTIZATION OPERATING INCOME FINANCIAL EXPENSE INCOME TAXES NET INCOME (LOSS) NET ASSETS EMPLOYED(1) TOTAL ASSETS FIXED ASSETS GOODWILL ACQUISITION OF FIXED ASSETS (1) TOTAL ASSETS LESS CASH AND CASH EQUIVALENTS, ACCOUNTS...

  • Page 55
    ...TAXES ARISING FROM NON-DEDUCTIBLE EXPENSES EFFECT OF FOREIGN INCOME TAX RATE DIFFERENCES BENEFIT RELATED TO PRIOR YEARS' MINIMUM INCOME TAXES PAID AND NON-CAPITAL LOSS CARRYFORWARDS OTHER INCOME TAXES AT EFFECTIVE INCOME TAX RATE Notes to Consolidated Financial Statements COGECO CABLE INC. 2007 53

  • Page 56
    ...986 266,042 217,636 - 217,636 As at August 31, 2007, the Corporation and its Canadian subsidiaries had accumulated federal and provincial income tax losses ... 23,487 2009 $ 20,289 18,295 2010 $ 1,011 762 2014 $ 2,007 2,007 2026 $ 4,604 3,227 FEDERAL PROVINCIAL 54 COGECO CABLE INC. 2007 Notes to ...

  • Page 57
    ...IN 2007, A TOTAL OF 35,884 STOCK OPTIONS (150,647 IN 2006) WERE EXCLUDED FROM THE CALCULATION OF DILUTED EARNINGS PER SHARE SINCE THE EXERCISE PRICE OF THE OPTIONS WAS GREATER THAN THE AVERAGE SHARE PRICE OF THE SUBORDINATE VOTING SHARES. Notes to Consolidated Financial Statements COGECO CABLE INC...

  • Page 58
    ...,193 1,021,538 8) DEFERRED CHARGES 2007 (amounts are in thousands of dollars) $ 927 43,251 2,860 7,607 54,645 2006 $ 1,524 29,907 5,664 10,232 47,327 NEW SERVICES LAUNCH COSTS RECONNECT COSTS EQUIPMENT SUBSIDIES FINANCING COSTS 56 COGECO CABLE INC. 2007 Notes to Consolidated Financial Statements

  • Page 59
    ...- (87,020) 7,496 342,584 2006 $ - 431,024 - (8,916) 422,108 BALANCE, BEGINNING OF YEAR BUSINESS ACQUISITION ADJUSTMENT TO THE ALLOCATION OF THE PURCHASE PRICE (NOTE 2) FOREIGN CURRENCY TRANSLATION ADJUSTMENT BALANCE, END OF YEAR Notes to Consolidated Financial Statements COGECO CABLE INC. 2007 57

  • Page 60
    ... LEASES 2011 6.42 - 8.30 5,760 1,027,926 5,009 1,316,977 126,851 1,190,126 LESS CURRENT PORTION 17,292 1,010,634 (1) AVERAGE INTEREST RATE ON DEBT AS AT AUGUST 31, 2007, INCLUDING STAMPING FEES. Interest on long-term debt amounted to $80,066,000 ($55,240,000 in 2006). 58 COGECO CABLE INC. 2007...

  • Page 61
    ...and subordinate voting shares, as well as incurrence and maintenance of certain financial ratios primarily linked to the operating income before amortization, financial expense and total indebtedness. b) The Senior Secured Debentures Series 1 are redeemable at the Corporation's option, in whole or...

  • Page 62
    ...) $ 2,648 2009 $ 2,052 2010 $ 1,312 2011 $ 387 2012 $ - 12) CAPITAL STOCK AUTHORIZED Unlimited number of: Class A Preference shares, without voting rights, redeemable by the Corporation and retractable at the option of the holder at any time at a price of $1 per share, carrying a cumulative...

  • Page 63
    ... their annual salary. The subscription date is December 31 and the subscription price is based on the average market price of the shares of the last five business days of November less 10%. A maximum of 167,500 shares are available, up to 40,000 annually, under this plan. Stock option plan A total...

  • Page 64
    12) CAPITAL STOCK (continued) Under the Stock Option Plan, the following options were granted by the Corporation and are outstanding as at August 31: 2007 WEIGHTED AVERAGE EXERCISE OPTIONS PRICE $ OPTIONS 2006 WEIGHTED AVERAGE EXERCISE PRICE $ 590,723 136,059 (7,112) (4,099) 715,571 18.98 28.61 9....

  • Page 65
    ... years. Performance Unit Plan The Corporation had also a Performance Unit Plan for key employees, which was terminated in June 2007. The value of a performance unit granted was equal to the closing price of the subordinate voting shares of the Corporation on the Toronto Stock Exchange on the trading...

  • Page 66
    12) CAPITAL STOCK (continued) DEFERRED SHARE UNIT PLAN In April 2007, the Corporation established a deferred share unit plan ("DSU Plan") to assist in the attraction and retention of qualified individuals to serve on the Board of the Corporation. Each existing or new member of the Board may elect ...

  • Page 67
    ... in foreign currency exchange rates, primarily changes in the values of the Canadian dollar versus the euro. This risk is mitigated since the major part of the purchase price for Cabovisão was borrowed directly in euros. As at August 31, 2007, the net investments totalled ¤449,941,000 (¤427,567...

  • Page 68
    ...are limited to the payment of the monthly employer's portion. Expenses related to these two plans amounted to $2,307,000 ($1,522,000 in 2006). The defined benefit pension plans provide pensions based on the number of years of service and the average salary during the employment of each participant...

  • Page 69
    ... 8,259 11,526 3,267 (1,185) (164) 1,918 6,688 10,027 3,339 (1,581) (184) 1,574 The accrued benefit liability is included in the Corporation's balance sheet under "pension plans liabilities and accrued employee benefits". Notes to Consolidated Financial Statements COGECO CABLE INC. 2007 67

  • Page 70
    ... % ACCRUED BENEFIT OBLIGATION DISCOUNT RATE RATE OF COMPENSATION INCREASE 5.50 4.75 5.50 5.00 DEFINED BENEFIT PENSION COSTS DISCOUNT RATE EXPECTED LONG-TERM RATE OF RETURN ON PLANS' ASSETS RATE OF COMPENSATION INCREASE 5.50 7.25 5.00 5.00 7.25 5.00 68 COGECO CABLE INC. 2007 Notes to Consolidated...

  • Page 71
    ... such required amounts. Business Acquisition and Assets Disposal In connection with the acquisition of business or sale of assets, in addition to possible indemnification relating to failure to perform covenants and breach of representations and warranties, the Corporation has agreed to indemnify...

  • Page 72
    ...'s voting shares. On September 1, 1992, Cogeco Cable Inc. executed a management agreement with COGECO Inc. under which the parent company agreed to provide certain executive, administrative, legal, regulatory, strategic and financial planning services and additional services to the Corporation and...

  • Page 73
    .../AVERAGE NET ASSETS EMPLOYED. NET INCOME APPLICABLE TO MULTIPLE VOTING SHARES AND SUBORDINATE VOTING SHARES/AVERAGE SHAREHOLDERS' EQUITY. INDEBTEDNESS NET OF CASH AND CASH EQUIVALENTS. OPERATING INCOME BEFORE AMORTIZATION/FINANCIAL EXPENSE. Five-Year Financial Highlights COGECO CABLE INC. 2007 71

  • Page 74
    ... SECURED DEBENTURES, SERIES 1 (1) ON AUGUST 14, 2007, STANDARD AND POOR'S REVISED COGECO CABLE'S OUTLOOK TO "POSITIVE" FROM "STABLE". BBB (LOW) BBB (LOW) BBB- BBB- SHARE INFORMATION AS AT AUGUST 31, 2007 REGISTRAR/TRANSFER AGENT NUMBER OF MULTIPLE VOTING SHARES (10 VOTES PER SHARE) OUTSTANDING...

  • Page 75
    .... 28 $ MAY 31 $ AUG. 31 $ TOTAL THE TORONTO STOCK EXCHANGE HIGH LOW CLOSE VOLUME (SHARES) 32.61 23.05 23.44 3,645,929 29.74 23.00 27.55 3,883,698 29.74 26.75 29.20 2,122,559 29.32 20.21 25.24 4,790,010 14,442,196 Investor Information COGECO CABLE INC. 2007 73

  • Page 76
    ... CABLE SERVICE CUSTOMERS. (3) THE NUMBER OF DIGITAL TELEVISION SERVICE CUSTOMERS FOR FISCAL 2005 WAS RESTATED TO REFLECT CHANGES BROUGHT ABOUT BY COGECO CABLE'S BILLING IMPROVEMENT PROGRAM, WHICH HAS ALLOWED THE CORPORATION TO IDENTIFY DIGITAL TELEVISION CUSTOMER ACCOUNTS THAT WERE NOT CANCELLED...

  • Page 77
    ...BASIC CABLE SERVICE % OF CUSTOMERS PENETRATION(1) BREAKDOWN ONTARIO QUÉBEC CANADA 997,498 486,592 1,484,090 594,889 254,268 849,157 59.6 52.3 57.2 PORTUGAL 859,376 294,003 34.2 TOTAL (1) AS PERCENTAGE OF HOMES PASSED. 2,343,466 1,143,160 48.8 Customer Statistics COGECO CABLE INC. 2007 75

  • Page 78
    ...Director Director CLAUDE A. GARCIA, B.A., B.Com Montréal (Québec) Corporate Director Director GERMAINE GIBARA Montréal (Québec) President, Avvio Management Inc. Director X+ O DAVID MCAUSLAND, B.C.L., LL.B. Beaconsfield (Québec) Executive Vice President, Corporate Development and Chief Legal...

  • Page 79
    ... HÉLÈNE LAURIN Vice President, Administration and Control YVES MAYRAND Vice President, Corporate Affairs RON A. PERROTTA Vice President, Marketing LOUISE ST-PIERRE Vice President, Customer Services and Ontario Operations Board of Directors and Corporate Management COGECO CABLE INC. 2007 77

  • Page 80
    OPERATIONS AND CORPORATE INFORMATION OPERATIONS HEAD OFFICE 5 Place Ville Marie Suite 915 Montréal (Québec) H3B 2G2 Tel: 514 874-2600 Fax: 514 874-2625 www.cogeco.ca CABLE ONTARIO 950 Syscon Road P.O. Box 5076 Station Main Burlington (Ontario) L7R 4S6 Tel: 905 333-5343 Fax: 905 332-8426 CABLE QU...

  • Page 81
    ... Company of Canada TRANSFER AGENT SENIOR SECURED DEBENTURES AND SENIOR SECURED NOTES Computershare Trust Company of Canada QUARTER ENDS November, February, May YEAR END August 31 1 Place Ville Marie Suite 3900 Montréal (Québec) H3B 4M7 Operations and Corporate Information COGECO CABLE INC. 2007...

  • Page 82
    ... du site Internet cogeco.ca ou sur demande au 514 874-2600. INVESTORS AND ANALYSTS For financial information about the Corporation, please contact the Department of Finance of the Corporation. SHAREHOLDERS For any inquiries other than a change of address, financial information or a change of...

  • Page 83
    Québec Inter-City Fiber Deployment Optic Cable Network: 3,656 km Optic Fiber: 44,436 km COGECO CABLE INC. 2007 81

  • Page 84
    Ontario Inter-City Fiber Deployment Optic Cable Network: 4,990 km Optic Fiber: 35,419 km 82 COGECO CABLE INC. 2007

  • Page 85
    Portugal Inter-City Fiber Deployment Optic Cable Network: 2,021 km Optic Fiber: 194,016 km COGECO CABLE INC. 2007 83

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