Corus Entertainment Inc. – An Investment Perspective May 2003

Safe Harbour Disclosure

Certain statements included in this presentation constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Such factors include, among others, the following: the impact of conditions in the entertainment, information and communications industries; risks associated with the economic, political and regulatory policies of local governments and laws and policies of Canada; the potential impact of increased competition in the Company’s markets; and other factors which are described in the Company’s filings with the Securities and Exchange Commission.

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Executive Summary

Company Overview (1)

(C$ in Millions)

2002 Revenue: $653 million (2) EBITDA: $156 million (3)

Radio 2002 Revenue: $211 million EBITDA: $53 million

50 Radio Stations (33 FM, 17 AM) • Vancouver (2 FM, 2 AM) • Calgary (2 FM, 1 AM) • Edmonton (2 FM, 2 AM) • Other Alberta (2 FM) • Winnipeg (1 FM, 1 AM) • Toronto (2 FM, 1 AM) • Other Ontario (14 FM, 6 AM) • Montreal (3 FM, 2 AM) • Other Quebec (5 FM, 2 AM)

Recent Developments

• Sold 2 Oshawa stations • Facility consolidation now completed • Established in-house marketing arm, Deep Sky • Power increase granted in Kitchener & Barrie • Applied for FM frequency in Montreal

Television 2002 Revenue: $285 million EBITDA: $90 million

Cable Networks (ownership %) • YTV (100%) • Country Music Television (CMT) (80%) • Women’s Television Network (W) (100%) • Treehouse (100%) • Telelatino (51%) • TELETOON (40%) joint control • Food Network (20%) • The Locomotion Channel (50%) • Discovery Kids (54%) • The Documentary Channel (53%) • Scream TV (51%) • Edge TV (100%) Premium Cable Networks • Movie Central (100%) • Encore (100%) Other • 3 Local Stations (100%) • Media Services (100%) • Max Trax (100%)

Recent Developments

• Acquired 50% interest in Locomotion Channel • Sold 70% interest in Country Canada • Sold Sound Products & DMX Commercial • Introduced SVOD in Western Canada

Content 2002 Revenue: $160 million EBITDA: $19 million

Production & Distribution • Franklin • Babar • Rolie Polie Olie • Bob & Margaret • Medabots • Little Bear • Beyblade • Berenstain Bears • Others Merchandising Publishing - Kids Can Press

Recent Developments

• Sold Klutz for US$43mm with earnout potential of additional US$31mm • Restructured Nelvana and combined operation with Television • Reduced production slate from annual level of 250 episodes to 150

____________________ (1) Fiscal year ending 8/31/02, pro forma for the library write-off at Nelvana.

(2) Includes ($3.2) million of intercompany eliminations. (3) Includes ($4.9) million of Corporate EBITDA and ($0.5) million of eliminations.

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Executive Summary

Execution and Strategy  Corus has achieved its goal of achieving critical mass by consolidating radio and specialty television. Currently, the Company’s focus is on the consolidation and integration of the assets it has assembled. Over the next several years, Corus intends to:  Accelerate the Company's progress towards its goal of a 30% consolidated margin  Generate free cash flow of $20 million in 2003 and $50 million in 2004  Reposition Nelvana from a production-oriented company to one which is market driven leveraging its portfolio of international brands and selectively introducing new series with exceptional revenue potential  The Company’s future growth (24-36 months) will be primarily organic  Growth will continue from – Improved radio margins in Toronto and Montreal with the turnaround of 2 FM’s and 5 AM’s that have been repositioned – Strong growth in digital households driving pay networks, Max Trax and new digital networks – Upside potential at W and CMT behind improved programming – Merchandising opportunities of high potential Nelvana brands

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Executive Summary

Execution and Strategy (Cont’d)

Margin Improvements for 2003

   Hiring freeze in place, salaries frozen for all high income personnel  Headcount reduction at Nelvana of 200 Scale back new media initiatives, reduce infrastructure costs Reduce costs or exit new digital channels if necessary

Debt Reduction

    Generate free cash flow of $20 million Reduce capital expenditures by 50% Reduce cash burn at Nelvana to zero Potential divestiture of non core regional Quebec radio stations

Focus on Integration

 Television and Content have been combined to increase operational and strategic efficiencies  Increase national radio sales revenue through creation of Deep Sky  Combined radio and TV operations in Central Ontario, consolidation of small market radio stations in Ontario  Eliminate redundant real estate locations and combine for operating effectiveness

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Executive Summary

2003 Challenges

Corus’ core operations of Radio and Television are expected to continue to perform well while the Company is addressing Nelvana and slowing digital subscriber growth

Challenge

• • Growth in Pay subscribers has slowed to single digit New digital channels are not attracting advertising • Increase share of advertising dollars • • • • Increase share of National advertising Turn loss-making stations profitable Increase share of total advertising market Change the culture of Nelvana from a production- driven company to a market-driven company • Reduce the cash outflow • Increase the profitability

Action Plan

• • • • • • • • • • • • • • • • • • Margins maintained through cost reductions and realignment of programming Sold Country Canada, assessing remaining digitals Increased cross platform promotion Reduced operating costs Key account planning Expand ad base on YTV (female demo) Developing tools to compete in Women demographic Launch Deep Sky Reformatted and reduced operating costs Created Corus Sales University Combined operations of TV and Content Hired former Disney executive as head of sales, merchandising, music, publishing and brand management Aligned studio/creative development under single leader Reduced the production slate Initiated a plan to collect government tax credits on a more timely basis Reduced headcount by 200 Reducing cost of production by 25% per episode over a 3 year period Increase merchandising revenue through brand management

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Financial Metrics

Long term consolidated performance goals  Revenue growth of 8- 9%  EBITDA growth of 10 – 15%  EBITDA margins of 25% in 2003 & 30% long-term – TV – Radio – Content 35 – 40% 30 – 35% 15 – 20%  Stronger internal focus on cash flow growth  Target normalized total leverage of 3.0x – 3.5x

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We Have Aggressively Managed our Assets

• Decisive action to respond to economic downturn in 2001  Three part action plan – Reduce debt by $100 - $150 million – Improve margins towards goal of 30% – Focus on integration of our assets Reduced headcount – down 18%  Radio  TV  Content Consolidate 4 accounting platforms to one Developing one corporate wide culture as we integrate our acquisitions

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(thousands of Cdn dollars)

Second Quarter Segmented Results

Feb. 28 2003 THREE MONTHS ENDED Feb. 28 2002 Pro forma Feb. 28, 2002 Pro forma % change Revenues Television Radio Content Eliminations 71,596 48,886 28,944 (1,884) 147,542 78,940 43,482 45,889 (629) 167,682 71,594 43,720 31,283 (629) 145,968 11.8

(7.5) 1.1

Segmented Profit Television Radio Content Eliminations/Corporate 22,775 7,115 2,580 (1,039) 31,431 22,335 5,408 5,316 (1,498) 31,561 19,356 5,486 4,698 (1,498) 28,042 17.7

30.0

(45.0) 12.1

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(thousands of Cdn dollars)

Second Quarter Year-to-Date Segmented Results

Feb. 28 2003 SIX MONTHS ENDED Feb. 28 2002 Pro forma Feb. 28, 2002 Pro forma % change Revenues Television Radio Content Eliminations 156,668 108,207 51,611 (3,002) 313,484 154,918 99,119 95,571 (1,745) 347,863 153,929 99,815 64,101 (1,745) 316,100 1.8

8.4

(19.5) (72.0) (0.8) Segmented Profit Television Radio Content Eliminations/Corporate 56,937 23,310 2,622 (3,380) 79,389 49,813 20,360 12,501 (2,457) 80,217 47,854 20,459 9,991 (2,457) 75,847 19.0

14.5

(73.8) 4.7

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Investment Summary

We are on track to deliver 10% EBITDA growth in Radio & TV We are on track to neutral cash burn at Nelvana We continue to deliver the best Canadian operating margins in Radio & TV We trade at a discount to our Canadian peers Nelvana issues are behind us Canadian ad market remains strong

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