mains a top priority to ensure that all operations reduce operating costs to take account of the weak economy. At the corporate level we will maintain our focus on reducing corporate debt in order to retain financial flexibility to take advantage of further opportunities for profitable growth as they arise" (Attention Business/Financial Editors). CanWest feels the most important task over the next year will be to carry on the work they initiated in 2001. By following this established path they will reduce stockholder concerns, as it will become apparent that the companys focus is not just to acquire assets, but also to absorb and integrate them. CanWest management feels this would demonstrate a commitment to growth and prosperity. Monitoring the ChangeCriteria UsedWhen companies pursue acquisitions, common reason tells us each new initiative must make economic sense for the company by creating new efficiencies that reduce overall costs or by creating opportunities to increase revenues and profits. CanWests decision to add to the corporate debt burden was not taken lightly. In particular, they have been careful to ensure that each of their acquisition decisions can be justified on a stand alone basis by carefully calibrated assessments of future financial revenue and costs, such as in advertising markets and in the price of newsprint. Cash flow from the existing businesses should be sufficient to restore ratios to 1999 levels within a few years. (Executive Chairmans Report to Shareholders) It should be noted that close to four billion dollars was spent acquiring the necessary assets from 1999 on till present, and prior to 1999 there was relatively little capital expenditure. Appropriateness For their part, CanWest is making serious investments in technology, its circulation systems, its telemarketing and its TV audience analysis. They talk to 30,000 Canadians a day and yet their system of collecting information arising from those c...
