Transcript Slide 1

Investor Presentation
Q2 2015
Sirius XM Canada
Holdings Inc.
April, 2015
FORWARD LOOKING STATEMENTS
This presentation contains certain information that may constitute forward-looking statements within the
meaning of securities laws. In some cases, such statements can be identified by the use of forward-looking
terminology such as “expects,” “may,” “will,” “should,” “intend,” “plan,” or “anticipates” or the negative thereof
or comparable terminology. Forward-looking statements include estimates, plans, strategies, expectations,
opinions, forecasts, projections, targets, expected dividends, guidance, or other statements that are not
statements of fact, including with respect future performance. Statements regarding our past performance
should not be interpreted as projections or forecasts of future performance.
Although SiriusXM Canada believes that the expectations reflected in forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have been correct, including with
respect to the ability of the Company to pay dividends in the future. SiriusXM Canada's forward-looking
statements are expressly qualified in their entirety by this cautionary statement. SiriusXM Canada makes no
commitment to revise or update any forward-looking statements in order to reflect events or circumstances
after the date any such statement is made, except as required by applicable law. Additional information
regarding forward-looking information and identifying certain risks and uncertainties is contained in SiriusXM
Canada's filings with the Canadian securities regulators, available at www.sedar.com, including SiriusXM
Canada’s most recent annual information form and MD&A.
Please see the Company’s MD&A filed October 30, 2014 for more details on the Company’s Q4 and FY2014
results and the Company’s MD&A filed April 9, 2015 for more details on the Company’s Q2 fiscal 2015 results.
The non-GAAP measures used in this document should be used in addition to, but not as a substitute for, the
analysis provided in the audited consolidated statement of operations and comprehensive income. Please
see the Company’s MD&A filed April 9, 2015 for complete definition of non-GAAP measures.
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INVESTMENT HIGHLIGHTS





Large subscriber base
•
Over 2.5 million as of Q2 F2015
Over 120 channels
•
Unmatched, curated, commercial-free music, talk, news and sports content
Long-term agreements with OEMs
•
Factory-installed in >65% of new cars
Long-term growth prospects
•
•
SXM enabled vehicles of 6.5 million to reach 10.5 million by FY18
Pre-owned gaining traction, 71% YoY increase in Gross Adds from pre-owned
Consistent and predictable cash flows
•
Annual dividend of $0.42 (dividend yield of 7%*)
* Based on the closing stock price of $6.03 as of April 10, 2015.
LARGE SUBSCRIBER BASE

Sirius XM is a leading Canadian media subscription business
Subscribers (Millions)
2.6
1.9
2.6
2.0
1.8
0.9
0.9
Shaw
Telus TV
0.8
Cogeco (TV)
Note:
Source: Company filings.
0.9
Corus (Movie Central) Videotron (Cable)
Shaw Video
Rogers (TV)
Sirius XM
BCE (TV)
4
CONTINUED REVENUE GROWTH
$310.7
$303.5
$288.9
$259.6
$238.7
$202.5
2010
2011
2012
2013
2014
LTM Q2FY15
STRONG ADJUSTED EBITDA GROWTH
85.5
79.0
68.7
46.6
26.5
6.6
2010
2011
2012
2013
* Based on Adjusted EBITDA for last 4 reported quarters. Normalized for $16.0 M provision for withholding tax.
2014
LTM Q2FY15*
OUR STRATEGIC PRIORITIES
Acquire
subscribers
Retain
subscribers
More
content
Technology
innovation
7
STRENGTHENED POSITION
IN THE NEW VEHICLE MARKET
>65%
OEM PENETRATION
SIRIUS XM INSTALLED
IN MORE THAN 250
VEHICLE MODELS
MORE THAN 1.2
MILLION VEHICLES
EACH YEAR ARE
SIRIUSXM-ENABLED
LONG-TERM
AGREEMENTS WITH
OEM MANUFACTURERS
BMW
MINI
8
NEW AUTO SALES TREND
1.90
1.84
1.80
1.56
1.58
1.66
1.71
1.46
>65%*
64.3%
59.0%
56.6%
54.5%
33.1%
36.4%
2009
2010
2011
2012
New Vehicle Sales (Mil)
Source: DesRosiers Automotive Consultants
*2015 estimate
2013
2014
SXM Enabled Vehicles
2015F
2016F
PRE-OWNED VEHICLE OPPORTUNITY
~ 33%
Franchise and
CPO programs
2.8M
~
Pre-owned vehicles
sold per year
~ 33%
Independent
dealers
~ 33%
Private
sales
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EXPANDED PRE-OWNED
VEHICLE PROGRAM
2,000
Franchise dealers*
71%
Q2 YoY Increase in gross
additions from Pre-Owned
7
Certified
pre-owned
dealers
Partners
AMVOQ
CarProof
* As of end of calendar 2014.
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MORE VEHICLES
SATELLITE RADIO EQUIPPED
~7M
satellite radio equipped cars by F2015*
* Both new and used
10.5M
>
satellite radio equipped cars by F2018*
12
THERE’S A SOUND FOR EVERY TASTE
120+ CHANNELS
EXCLUSIVE
ENTERTAINMENT
LIVE PLAYBY-PLAY
FROM EVERY
MAJOR SPORT
COMEDY
AND TALK
WORLD-CLASS
NEWS
COMMERCIALFREE MUSIC
ANYTIME, ANYWHERE ACCESS
SATELLITE
RADIO,
STREAMING
SERVICES…
IN-VEHICLE
AT HOME
AT WORK
ON THE GO
PERSONALIZED
ONLINE
STREAMING
SERVICE
ON-DEMAND
SHOW ALERTS
START NOW AND
TUNE START
CAPABILITIES
FINANCIAL
REVIEW
COMPELLING BUSINESS MODEL
Recurring revenue subscriber model
Powerful operating leverage
Modest cap-ex needs
High FCF conversion
STRONG FREE
CASH FLOW
Own the content and distribution
SUSTAINABLE
DIVIDEND
16
SUBSCRIBERS
ANNUAL
QUARTERLY
THOUSANDS
THOUSANDS
2,552
2,612
2,388
1,727
1,852
1,769
1,862
F2013
F2014
Q2/14
Q2/15
2,427
Self-paying
Paying & non-paying promotional
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REVENUE
ANNUAL*
QUARTERLY
$ MILLIONS, LTM ENDED FEB 28
$ MILLIONS, QUARTER ENDED FEB 28
310.7
75.5
303.5
F2014
* LTM – Latest 12 Months.
LTMQ2/15
Q2/14
80.1
Q2/15
18
ADJUSTED EBITDA
ANNUAL
QUARTERLY
$ MILLIONS, LTM ENDED FEB 28
$ MILLIONS, QUARTER ENDED FEB 28
85.5
22.5
23.3
79.0
F2014
LTMQ2/15*
Q2/14
* Based on Adjusted EBITDA for last 4 reported quarters. Normalized for $16.0 M provision for withholding tax.
Q2/15
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Q2 F2015 PER SUBSCRIBER METRICS
SELF-PAY ARPU
SAC
$ QUARTER ENDED FEB 28
$ QUARTER ENDED FEB 28
40
12.48
35
11.92
Q2/14
Q2/15
Q2/14
Q2/15
20
FREE CASH FLOW
ANNUAL
1
QUARTERLY
$ MILLIONS, LTM ENDED FEB 28
45.9
F2014
1Includes
$ MILLIONS, QUARTER ENDED FEB 28
48.2
LTMQ2/15
an adjustment for a $10.4 million call premium payment related to the refinancing of the Company’s debt.
11.3
9.9
Q2/14
Q2/15
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CONSERVATIVE TOTAL LEVERAGE
NET DEBT / ADJUSTED EBITDA
4.5x
2.2x
2.0x
2.0x
WELL WITHIN TARGET
LEVERAGE RATIO OF
LESS THAN
1.4x
3X
Adj. EBITDA
2011
2012
2013
2014
LTM Q2/15
22
RETURNED CAPITAL TO SHAREHOLDERS
$1.00
PER SHARE
PAID IN F2014
128M
$
Dividends Paid in F2014
$0.105
QUARTERLY
DIVIDEND
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STRATEGIC
OUTLOOK
F2015 IS ABOUT PROFITABLE GROWTH
TOP-LINE
GROWTH
PROFITABILITY
& STRONG
CASH FLOW
ADD
SUBSCRIBERS
OPTIMIZE
EXPENSES
INCREASE
SELF-PAY ARPU
STABLE FIXED
EXPENSES
MANAGE CHURN
MANAGE CAPITAL
INVESTMENTS
25
INVESTOR VALUE PROPOSITION
LEADER
IN CANADIAN AUDIO
ENTERTAINMENT
EXPANDING
PRE-OWNED
VEHICLE PROGRAM
~2.6 MILLION
SUBSCRIBERS
>65%
PENETRATION
WITH VEHICLE
OEMS
STRONG
ADJUSTED
EBITDA
AND FREE
CASH FLOW
GROWING
REVENUE
SUBSTANTIAL
OPERATING
LEVERAGE
MEANINGFUL
DIVIDEND
26
APPENDIX
CRA UPDATE
ONE-TIME FACTORS IMPACTING Q2’15 NET INCOME

Normalized Net Income
= $9.9M
 Impacted by one-time items
 Withholding tax expense
= (16.0)M
 Non Cash Income tax
= (19.1)M
 Reported Net loss

= $25.1M (rounded)
Excluding, withholding tax expense and non cash
income tax expense, Net Income Q2’15 was $9.9M
from $6.2M, increase of 60% or $3.7M
Q2 AND YTD 2015 INCOME STATEMENT
P&L (in $000s)
Q2 2015
Q2 2014
B/(W)
Total Revenue
$80,086
$75,466
$4,619
$159,071
Operating Expenses
Cost of Revenue
Revenue Share & Royalties
Customer Care & Billing Ops
Cost of Merchandise
Broadcast and Programming
Total Cost of Revenue
$24,806
$5,009
$1,228
$3,771
$34,814
$21,199
$4,967
$1,109
$3,781
$31,056
($3,607)
($42)
($119)
$10
($3,758)
$48,399
$10,200
$2,385
$6,746
$67,731
General & Admin
Information Technology
$2,997
$2,155
$ 2,393
$2,085
($603)
($70)
$5,955
$4,058
$ 5,161
$4,518
($794)
$461
Marketing
Support
Subsidies & Distribution
Advertising & Marketing
Total Marketing
$2,166
$8,189
$6,436
$16,790
$2,142
$9,069
$6,215
$17,427
($24)
$880
($220)
$636
$4,165
$18,065
$12,863
$35,094
$4,638
$19,089
$12,550
$36,277
$472
$1,024
($313)
$1,183
Adjusted EBITDA
Stock Based Compensation
PPA
Withholding Tax
EBITDA
$23,331
$938
$1
$16,000
$6,392
$22,523
$809
$497
($441)
$17
$16
$0 ($16,000)
$22,009 ($15,617)
$46,238
$2,244
$4
$16,000
$27,990
$43,942 $2,296
$1,360
($884)
$48
$44
$0 ($16,000)
$42,535 ($14,544)
YTD 2015 YTD 2014
$151,902
B/(W)
$7,168
$43,441 ($4,958)
$9,782
($417)
$2,084
($301)
$6,745
($2)
$62,052 ($5,679)
Q2 AND YTD 2015 RECONCILLIATION
Adjusted EBITDA: Reconciliation
In ($ 000’s)
Income/(Loss) before taxes
Interest expense & income
Foreign exchange gain(loss) & other
Amortization
EBITDA
Withholding tax expense
Stock-based compensation
Fair value adjustments
Adjusted EBITDA
Q2 2015
Q2 2014
(1,951)
8,650
9,613
15,505
3,864
6,056
7,575
124
243
189
295
5,190
9,252
12,132
19,159
6,392
22,009
27,990
42,534
16,000
-
16,000
-
938
497
2,244
1,360
1
17
4
48
23,331
22,523
46,238
43,942
3,029
YTD 2015 YTD 2014