A YEAR FOR CARING...

2020/21 ANNUAL REPORT

Letter of Transmittal

Regina, Saskatchewan June 29, 2021

To His Honour The Honourable Russ Mirasty, S.O.M., M.S.M. Lieutenant Governor of Saskatchewan Province of Saskatchewan

Dear Sir:

I have the honour to submit herewith the Annual Report of SaskTel for the fiscal year ending March 31, 2021, in accordance with The Saskatchewan Telecommunications Holding Corporation Act.

The Financial Statements included in this annual report are in the form approved by Crown Investments Corporation of Saskatchewan as required by The Financial Administration Act, 1993 and have been reported on by the auditors.

Respectfully submitted,

Honourable Don Morgan, Q.C. Minister Responsible for Saskatchewan Telecommunications SASKTEL 2020/21 ANNUAL REPORT | 1 as Pierce, checked out my Aunt’s phone and extension phones out my Aunt’s checked as Pierce, she was unable to gear, and then left. Due to his full protective a big hug and an even bigger Thank You for your thoughtfulness for a big hug and an even bigger Thank You work in Regina.” totally see his face, but she said he was such a nice polite she said he was such a nice but totally see his face, you showed Auntie on Easter Sunday. You have no idea what no idea what have You you showed Auntie on Easter Sunday. your kindness meant to her.” young man.” “The himself introduced technician arrived on Sunday afternoon, “I’m sure there are not a lot of SaskTel Guys named Pierce who named Pierce Guys SaskTel of not a lot are there sure “I’m to give Pierce I would like my Aunt and our family, behalf of “On 2 | TABLE OF CONTENTS Table Contents of 126 111 107 106 102 58 17 13 8 5 3 Highlights IFC Contact Us Corporate GovernanceStatement SaskTel Executive Board of Directors CommitteePriorities Board of Directors 65 62 60 59 58 Consolidated FinancialStatements Management’s DiscussionandAnalysis 2020/21 Corporate SocialResponsibilityHighlights 12 11 10 9 8 Sharing OurStories President’s Message Letter of Transmittal

Notes toConsolidated FinancialStatements Consolidated FinancialStatements Independent Auditors’Report Report of ManagementonInternalControl OverFinancialReporting Management’s Responsibility for FinancialStatements A Year for Looking totheFuture A Year for ThinkingSmart A Year for Working asaTeam A Year for PuttingFoodontheTable A Year for Creating Memories SASKTEL 2020/21 ANNUAL REPORT | 3

$308.2 Wireline Voice (6.1%) Subscriber Decline 2019/20 308,719 2020/21 289,934 Customer Data Relief Data PB = Petabyte 24PB Data Traffic Growth Traffic Data +36.7% Wireless Data Usage Wireless Data Unlimited Wireless Data Wireless Data Unlimited provided during the pandemic Capital Investment ($ millions) Capital Investment ($ 2019/20 $262.9 2020/21

Fibre Subscriber Growth 2019/20 131,485 2020/21 149,867 11.0% Supporting +14.0% Saskatchewan Saskatchewan 73.0% Suppliers Located in Suppliers Located Total Passed Growth Total +10.0% Fibre to the Premises (Consumer and Business) Return on Equity (%) on Return 2020/21 2019/20 10.2% Wireless Organizations Contributions SaskTel TelCare TelCare SaskTel 65 Saskatchewan 65 Saskatchewan $0.2M

+2.4% Subscriber Growth 2019/20 624,208 2020/21 639,239

$1,317.7 SK Coverage Fibre Footprint 60.0% Volunteer Hours Volunteer $1.4M SaskTel Pioneers SaskTel Revenue ($ millions) ($ Revenue 2020/21 2019/20 $1,283.7 $1.1M In-Kind/$0.3M $1.1M In-Kind/$0.3M Invested & Over 19,000 maxTV Service maxTV +2.5% Subscriber Growth 2019/20 111,382 2020/21 114,120

$130.8 $119.8

Communities Community Organizations 85.0% $2.5M Investment Program +5.1% Subscriber Growth 2019/20 791,421 Across 350 Saskatchewan Across 350 Saskatchewan 2020/21 831,807

Net Income ($ millions) 2020/21 2019/20 CORPORATE SOCIAL RESPONSIBILITY SOCIAL CORPORATE CUSTOMER CONNECTIONS CUSTOMER Broadband Internet FINANCIALS 50 Mbps Fixed Broadband 50 Mbps Fixed INFRASTRUCTURE 308 Non-profit & Charitable Highlights Strategic Goals

Lead the market in 01 broadband services

Deliver an Empower a Maximize exceptional high-performance long-term financial customer workforce sustainability experience

Reinvigorate SaskTel through digital transformation

Deliver an Exceptional Customer Experience

Our customers are at the centre of everything we do. We will deliver an exceptional customer experience at every touchpoint along their journey with SaskTel.

Lead the Market in Broadband Services

Broadband is essential to the lives of our customers. We will provide access to fast and reliable internet at any location—at home, work, and on the go.

Reinvigorate SaskTel through Digital Transformation

We will use technology to build new business capabilities, making it easier for our customers to do business with us and easier for our employees to serve the customer.

Empower a High-Performance Workforce

Together, our skilled workforce is committed to transforming SaskTel for the future and ensuring we deliver to our customers’ expectations.

Maximize Long-Term Financial Sustainability

We will find creative solutions to position SaskTel for financial success, securing our ability to serve HIGHLIGHTS customers throughout the province of Saskatchewan for many years to come. 4 |

.. SASKTEL 2020/21 ANNUAL REPORT | 5

in the province. As of September 2020, all 105 previously all 105 previously September 2020, As of in the province. footprint in 2020/21 while still delivering highly competitive in 2020/21 while still delivering highly competitive footprint will be in service by early summer 2021. will be in service towers are in service and we anticipate that all 74 towers all 74 that and we anticipate in service towers are to numerous rural areas during the year with the addition of of during the year with the addition rural areas to numerous these areas. than 15,000 net additions as well as revenue growth of of growth net additions as well as revenue than 15,000 now encompasses nearly 1,000 cell sites throughout the sites throughout cell nearly 1,000 now encompasses and Saskatchewan which is no small number, province, population as low as 50. We brought more robust coverage coverage robust more brought We 50. as low as population pronounced became more that an issue communities, resort plans to customers. As a result of these thoughtful and of plans to customers. As a result Keeping in mind our role and commitment to Saskatchewan to Saskatchewan and commitment in mind our role Keeping strengthen coverage along many busy highway corridors along many busy highway corridors coverage strengthen service in some of our most underserved rural communities, our most underserved rural communities, in some of service and will enable a more consistent wireless experience for for experience wireless consistent and will enable a more these 31, 2021, 55 of March As of additional rural residents. along with an associated capital investment of $72.2 million. capital investment of along with an associated strategic efforts, we recorded subscriber growth of more of more subscriber growth recorded we efforts, strategic and providing wireless service to some communities with a communities to some service wireless and providing and beaches last summer, to our lakes as people flocked announced small cell sites were complete, improving improving complete, sites were small cell announced approximately 6.0%. approximately of our organization’s purpose and vision: to be the best at purpose and vision: to be the best at our organization’s of our wireless team added capacity to 11 towers serving our wireless connecting people to their world. Our wireless network people to their world. Our wireless connecting communities, SaskTel continued to expand its wireless to expand its wireless continued SaskTel communities, Saskatchewan was announced on September 23, 2020, 2020, 23, on September was announced Saskatchewan Saskatchewan initiative, which is now being wrapped up initiative, Saskatchewan WIRELESS: SUPPORTING GROWTHWIRELESS: As the COVID-19 pandemic carried on, we never lost sight As the COVID-19 15 macro towers. 15 macro AND INNOVATION INNOVATION AND The addition of 74 macro towers to our network will macro 74 The addition of To address higher traffic levels at some of Saskatchewan’s at some levels higher traffic address To of Wireless The final and perhaps most ambitious phase The year saw considerable progress with our Wireless with our Wireless progress The year saw considerable

improvements ensured that SaskTel rose above competitors above competitors rose SaskTel that ensured improvements is responsible, transparent, and aligned with the greater and aligned with the greater transparent, is responsible, home connections to stay safe and connected with the with and connected to stay safe home connections while we navigate these uncertain times. these uncertain while we navigate will confront us or the moments that will define us, we us or the moments that will confront we were already taking to keep Saskatchewan people Saskatchewan taking to keep already we were were disrupted, and families, businesses, and individuals disrupted, and families, were this period. We have our incredible team of engineers and team of have our incredible this period. We work to maintain their continuous technicians to thank for the spring and summer months saw higher than anticipated the spring and summer months saw higher than anticipated through natural disasters, economic upsets, recessions, and upsets, recessions, disasters, economic natural through network performance. network performance. resiliency of SaskTel’s networks was brought into focus as into focus networks was brought SaskTel’s of resiliency recognize how important it is to respond in a way that in a way that to respond how important it is recognize Having been in business for 113 years, we are certainly no certainly 113 years, we are Having been in business for In what can only be called an unprecedented year, the year, an unprecedented can only be called In what enhanced network experience, competitive pricing, competitive network experience, enhanced and customer service footprint, expanded coverage employees and how they truly came through to help keep help keep to employees and how they truly came through even a previous pandemic. even a previous during this financial year, and the combination of an combination and the during this financial year, growth in internet usage when people switched to their growth good of the communities we serve. In this vein, I cannot the communities good of driven to build on our successes and achieve more in the communities we in the communities more and achieve successes to build on our driven While we cannot always predict the challenges that the challenges that While we cannot always predict stranger to tough situations. SaskTel has navigated its way has navigated SaskTel stranger to tough situations. achievements and to helping our customers stay connected achievements and to helping our customers stay connected as a locally owned provider Saskatchewan people could trust. trust. people could Saskatchewan as a locally owned provider alike adapted to new realities brought on by the COVID- brought adapted to new realities alike upon the steps plus opportunities to build a company, office and classroom. Our networks performed well during Our networks performed and classroom. office our customers and communities safe. safe. our customers and communities overstate how proud I am of our province-wide team of team of our province-wide I am of how proud overstate connected to their world. to their world. connected local communities. local communities. SaskTel cares. We remain committed to building on our committed remain We cares. SaskTel SaskTel invested approximately $308.2 million of capital million of $308.2 invested approximately SaskTel 19 pandemic. This invariably created challenges for us as challenges for created 19 pandemic. This invariably serve. As technology continues to keep the world connected, we will be there be there we will world connected, the to keep continues serve. As technology At SaskTel, our customers are the central focus of everything we do. We are are We we do. everything of focus central the are our customers At SaskTel,

with a wide range of world-class services and a commitment to care for our for care to and a commitment services world-class of with a wide range President’s Message President’s This past year was like no other. Across Saskatchewan, lives Saskatchewan, Across no other. This past year was like 6 | PRESIDENT’S MESSAGE WIRELINE: DELIVERING Samsung Electronics Co.,Ltd. equipmentwilldriveour Supporting ourwireless future, 2020/21sawustake a consistent andstrong performance inthismarket shows changing customerpreferences. However, SaskTel’s competitors. Thislandscapeisalwaysshiftingdueto critical steptoward 5Genablementonournetworks.After coverage for majorroadways and highways(98.8%); aclear our province. of 5Gwillfurthersupporteconomic growth andprogress in (99.4%) andurban(99.9%) communities, behindonlyPEI (LoRaWAN) inbothRegina andSaskatoon isalready our multi-yearRuralFibre Initiative willseemore than$50 of ourenterprise-ready Long RangeWideArea Networks of thepastyearunderscored thecriticalimportance of ENHANCED EXPERIENCES ENHANCED a rigorous selectionprocess, SaskTel announced that approximately 30,000 householdsandbusinesses inmore and Nunavut.Saskatchewan alsoranksthird intermsof LTE services whilestayingentertainedat home. With socialdistancingmeasures inplace andnumerous We alsohadteamsworkingtirelessly todeliverinnovative gaps andinequitieswhere possible.Thepandemichas digital transformation, notjustfor SaskTel, butfor countless quickly adjustingtoourchangedreality. Thechallenges Increasing fibre penetration outside of urban centres will During thefiscalyear2020/21, competition increased But weknowmustpushforward, addressing service people workingfrom homethispastyear, ourwireline network. We lookforward toseeinghowthedevelopment phased approach tobuildingout5Gconnectivity across our more easilyconnect withandmeettheircustomers’needs. ranks third nationally intermsof LTE coverage for bothrural million invested intobringingSaskTel infiNET service to that ourofferings still resonate wellwith consumers. the benefits of bothtraditionalcableandonlinestreaming infiNET for broadband services, aswelltelevisionandvideo- from 358to388communities, allowingcustomerstoenjoy broadband networks,DigitalSubscriberLine(DSL)and based entertainment,from bothtraditionalanddisruptive be partof thesolution.Announced inDecember 2020, highlighted justhowessential technologyisinourlives. business solutionstonewandexistingcustomerswhowere increasing business agilityandhelpingourlocalbusinesses indication of theimportance weplace onpublicsafety. large andsmallSaskatchewan businesses.Thelaunch ™ service, stoodstrong. We expandedmaxTV Stream

463 communities, with345communities havingaccess to As of March 31,2021,SaskTel boastsawireline broadband WITHIN THE COMMUNITY THE WITHIN Saskatchewan CrisisResponse Fund tohelpthemmeet connected duringthefirstwave of COVID-19 through a our closestcompetitor, offering internetservice inatotal of of SaskTel. of all services withinthecommunity andsurrounding area. FOSTERING CONNECTION AND CARING and infiNET service customers. and skillstostrengthen ourcommunities. speeds of upto50Mbpsorfaster. speed upgradesduringtheyear. To promote enhanced support thenon-profit and charitableorganizations in such asthefire at ourSpiritwood buildinginAugust.The Giving backtothecommunities weserveisthemost so customerscould applyfor relief whentheyresumed suspended collections activitiesandlate paymentfees. We Optimum In-homeWi-FisolutiontobothourinterNET25 One weeklater, ourincredible employeeshadreadied a We tookstepstokeep ourtechnicianssafe andontheroad direction. Atotal of 27DSL-servedcommunities received growing demandfor theirservices. display of teamwork that showcasedthetruespirit devastating fire destroyed that office, resultingintheloss disrupted ourlives,theSaskTel teamcontinued toprovide data toSaskTel fusionInternetcustomers,aswellall due tojoblossorotherfinancialhardship, wetemporarily excellent service whilealsovolunteeringanarrayof talents It wasveryimportantthat ourcompany continued to DSL networkwillalsohelptomoveusfurtherintheright From March toSeptember2020, wehelpedcustomersstay network that reaches nearlytwice asmanycommunities as reception andsuperioruserexperiences, welaunchedour new structure andre-established ourservices. Itwasa payments ontheiraccounts. We alsodelivered unlimited range of initiatives. Forcustomersunabletopaytheirbills than 20ruralcommunities. Strengthening ourwidespread the province that were steppinguptoassistourmost to ensure wecould respond suitablyincaseof emergencies, the holidays. wireless customersduringthefirstwave,andagain vulnerable andthosestruggling duetolayoffs orother hardships. SaskTel donated $25,000 to theFoodBanksof important thingwecandoasanorganization. AsCOVID-19 launched theCrown UtilityPaymentDeferral Program SASKTEL 2020/21 ANNUAL REPORT | 7 focus has been and always will be on our customers. has been and always will be on our focus , SaskTel President and CEO President Doug Burnett, SaskTel will rise above this difficult period even more resilient and resilient more will rise above this difficult period even we live and work. the best talent. We know that working together and listening and listening working together that know We the best talent. strengthen our goals and ideas is how we achieve to diverse we serve. the communities customers, our our economy, province, the challenges our that on networks our customers can rely teams will ensure new normal, the culture and foundation we have built will we and foundation the culture new normal, I assure you that our Executive Team will continue to be continue will Team our Executive you that I assure and our customers SaskTel spirit, In true Saskatchewan Sincerely, guided by SaskTel’s overarching mission and values. SaskTel’s mission and values. SaskTel’s overarching guided by SaskTel’s support our competitive advantage, and not just in attracting attracting and not just in advantage, competitive support our and our innovative SaskTel in 2021 and onward, COVID-19, and our people face as we embark on economic recovery. recovery. as we embark on economic and our people face needs. to meet their changing expanding and improving are LOOKING AHEAD LOOKING committed to building success in the communities where where in the communities success to building committed

As Saskatchewan emerges from the challenges posed by from emerges As Saskatchewan As we emerge from the worst of this crisis and adjust to a adjust to crisis and this worst of the from emerge As we Today, SaskTel is in a solid position with a strong awareness of awareness is in a solid position with a strong SaskTel Today, in 2020, their 70th year of giving back. SaskTel employees, SaskTel giving back. year of their 70th in 2020, the pandemic, this did not stop employees from coming coming not stop employees from the pandemic, this did for to harness their genuine care together in other ways to 65 locally operated charities and non-profit organizations organizations charities and non-profit to 65 locally operated million to 308 charitable and non-profit organizations organizations million to 308 charitable and non-profit retirees, and families maintained their support of our other our other their support of and families maintained retirees, rink at Mosaic Stadium provided a much-needed bright bright a much-needed provided Mosaic Stadium rink at In addition, SaskTel TelCare, the company’s employee-driven employee-driven the company’s TelCare, SaskTel In addition, employee-driven programs such as the SaskTel Pioneers and Pioneers and such as the SaskTel employee-driven programs spot during a difficult and isolated winter for countless countless for winter a difficult and isolated spot during across the province. across our communities. SaskTel was proud to contribute $2.5 $2.5 to contribute was proud SaskTel our communities. charitable donation program, contributed nearly $230,000 nearly $230,000 contributed program, donation charitable SaskTel EnviroCare. SaskTel Saskatchewan families. families. Saskatchewan SaskTel’s sponsorship of the massive Iceville skating skating Iceville massive the of sponsorship SaskTel’s Although many of our teams were kept apart because of of apart because kept our teams were Although many of 8 | SHARING OUR STORIES “SaskTel ispleasedtohelplovedonescometogetherand Sharing Our Stories Our Sharing This wasn’tthefirsttime,norwoulditbelast. To assist A YEAR FORA YEAR CREATING MEMORIES SaskTel provided unlimitedwireless data toitscustomers and keeping familytraditions alive. For severalmonths in2020/2021,SaskTel provided unlimitedwireless data to assistwithonlinelearning,working remotely, charges were waivedfor businessandconsumer customers overage charges from March 17 toJune8, 2020. on SaskTel’s postpaid wireless data plans, noSTRINGS and keeping familytraditionsalive,eveniftheyhappenedvirtually, speed reductions. Customers onunlimitedwireless planswere notsubjectto Over the holiday season, establishing non-physical connections Over theholidayseason,establishingnon-physicalconnections during theglobalCOVID-19 pandemic,SaskTel waiveddata Zoom, SaskTel canprovidetheconnectivitytomake Prepaid wireless plan, andSaskTel fusion Internet plans. opening agiftisdoneoveranapplike FaceTime or was importantfor everyone’shappinessandwell-being. from December 17, 2020toJanuary11,2021.Data overage President andCEO. “If thismeanssharingamealor stay safe overtheholidays,”saidDougBurnett,SaskTel that happen.” its customerswithonlinelearningandworkingremotely “Make that phonecalltoalong-lostfriend orschedulea “Take care of yourselfthisholidayseason,”instructedBurnett. “As theprovince’s leadingcommunications provider, This isespeciallytrueduringtheholidayseasonaswe Stream customers withaccess toadditionalnewsand SaskTel alsoprovided its maxTV service and maxTV SaskTel canhelpcustomerscontinue tocreate those SaskTel knowshowimportantitistostayconnected. and theirfamiliesentertained. announcement. “Waiving data overagesisjustoneway special memorieswithlovedonesnearorfar.” entertainment channelstohelpkeep theminformed Don Morgan, MinisterResponsible for SaskTel, at the provider of choice.” virtual coffee break withyourgrandma.SaskTel cares about know itwon’tlookthesameasprevious years,”said its customersandwetrulythankthemfor makingustheir SASKTEL 2020/21 ANNUAL REPORT | 9 more than ever before.” more when the back to our community it a priority to give make and CEO. President Burnett, SaskTel need arises,” said Doug Laurie O’Connor, Executive Director of Saskatoon Food Bank Saskatoon of Director Executive Laurie O’Connor, ensure that Saskatchewan families are not left hungry,” said hungry,” not left families are Saskatchewan that ensure extremely grateful to SaskTel for rising to the occasion and rising to the occasion for to SaskTel grateful extremely generously donating these funds to assist us in our mission to us in our mission these funds to assist donating generously and Learning Centre. “Donations like these are needed now, needed now, are these like “Donations Centre. and Learning $100 received they can feed two families for a week. “We’re a week. “We’re for two families can feed they $100 received The Food Banks of Saskatchewan estimate that for each for that estimate Saskatchewan Banks of The Food “Saskatchewan is our home and like any good neighbour we any good is our home and like “Saskatchewan

keep donations rolling in. SaskTel contributed $25,000, contributed $25,000, SaskTel rolling in. donations keep past and present–doubled down on fundraising to help past and present–doubled down on fundraising the Pioneers raised $28,500, and SaskTel employees SaskTel the Pioneers raised $28,500, and before,” said John Bailey, CEO of Regina Food Bank. The Food Bank. Regina of CEO said John Bailey, before,” Food Banks of Saskatchewan, SaskTel employees–both SaskTel Food Banks of Saskatchewan, In response to the launch of a $6 million drive by the In response to the launch of a $6 million food bank unlike anything our community has experienced has experienced anything our community bank unlike food will need to collectively they anticipating banks are food donations for shaving his head. for shaving donations donated $675. Additionally, SaskTel’s Chief Technology Chief Technology SaskTel’s Additionally, $675. donated would never have considered relying on a food bank. on a food relying would never have considered this time in history is very challenging.this time in history is Officer Daryl Godfrey raised $4,755 in employee Officer Daryl$4,755 Godfrey raised Every month, Saskatchewan’s 32 food banks support about banks 32 food month, Saskatchewan’s Every deliver hundreds of thousands of meals to people who thousands of of deliver hundreds already living on the edge or even below the poverty line, living on the edge already changing the way we live and work. For many who were live and work. For many who were changing the way we Daryl Godfrey, Chief Technology Officer at SaskTel, shaved his head to raise money for the $6 million drive by the Food shaved his head to raise money at SaskTel, Officer Chief Technology Daryl Godfrey, Saskatchewan. Banks of A YEAR FOR PUTTING FOOD ON THE TABLE THE ON PUTTING FOOD A YEARFOR 40,000 individuals, a number that is increasing rapidly. is increasing a number that individuals, 40,000 There’s no denying that the impacts of COVID-19 are are COVID-19 the impacts of no denying that There’s “Economic pressures are leading to a surge in demand on our in demand on a surge leading to are pressures “Economic 10 | SHARING OUR STORIES The RCMPknocked onthedoorof RyanAndersen,theCST The lossof services alsomeant911service wasunavailable, the community. On August23, 2020, afire destroyed SaskTel’s CO inSpiritwoodandSaskTel rose tothechallenge of restoring services in structure that wasdestroyed. Employees from CentralInstall in Regina whoreadied theCO structures that were delivered toSpiritwoodreplace the couple yearsearlier. (CO) meaningalllandline,internet,andcellular services in of Spiritwood.Thefire destroyed SaskTel’s CentralOffice and beginrestoration andremediation efforts. and services, since debitmachines,ATMs andbanksrely on and itaffected theability for local residents topay for goods since Van Dyke hadretired from theCSTpositiononlya street toknockon JackVan Dyke’s door. Itwasonlynatural fire involvingaSaskTel buildingbroke outinthe community A YEAR FORA YEAR WORKING ATEAM AS In theearlymorninghoursof Sunday, August23, 2020, a the community andsurrounding area were completely lost. telecommunications services. Across-functional teamwas in Spiritwood,toalerthimof thefire. Thentheycrossed the immediately dispatched toSpiritwoodassessthedamage “It was devastating. Everything happened very quickly, happenedvery “It and wasdevastating. Everything “An incredible amountof planning andworkwascompleted “As aCST, thisisyourworstnightmare,” saidVan Dyke. “The community, andeveryonewhoworked sodiligentlytoget clock toensureSaskTel wasrestoredproperlyand service Director – Customer Services (Network Operations). “This Director –Customer Services (NetworkOperations). “This many different departments,”saidJasonDurant,Senior real credit goestoeveryoneat SaskTel, from thosewho this, thetruespiritof Team SaskTel wasonfulldisplay.” the services restored.” was averyunfortunate circumstance, butinasituation like within daysof thefire bysomanySaskTel peoplefrom so were onhandimmediately, thosewhoworked withthe and diligentresponsetothesituation.” and CEO. proud ofourpeopleandtheirswift “I’m very in atimelymanner,” saidDougBurnett,SaskTel President it wasuptoourpeoplestepandworkaroundthe SASKTEL 2020/21 ANNUAL REPORT | 11 leveraged to provide citizens a map view of available parking available parking of a map view citizens to provide leveraged to those compared and easier to certify lower in cost wireless connectivity choice due to the hardware being to the hardware due choice connectivity wireless to put the device in sleep mode until it’s being used.” in sleep mode until it’s being to put the device in 2020/21 capital in Saskatchewan million of to invest $324 their operations to meet the evolving demands of their the evolving demands of to meet their operations provide a long battery life, up to 10+ years, due to its ability up to life, a long battery provide placed in parkades or even embedded in the street can be in the street or even embedded in parkades placed industries.” respective It can also include things like smart parking. Sensors smart parking. include things like It can also spots, reducing traffic congestion created by vehicles by vehicles created congestion traffic spots, reducing parking spots. available for searching businesses modernize will help said Palazzo. “LoRaWAN and over $1.4 billion over the next five years. billion and over $1.4 on cellular networks,” said Palazzo. “It’s also designed to also designed networks,” said Palazzo. “It’s on cellular The launch of LoRaWAN was part of SaskTel’s commitment commitment SaskTel’s was part of LoRaWAN The launch of “Solution providers are utilizing LoRaWAN as the primary as the primary utilizing LoRaWAN are “Solution providers our customers,” connecting to be the very best at want “We businesses of all sizes to enhance their operations.” to enhance their operations.” businesses of all sizes businesses around the world,” said Randy Palazzo, businesses around intervals without any requirement of an on-site visit. of intervals without any requirement modern smart technologies that are transforming are transforming that modern smart technologies for hardware that have specific small data needs, such as data have specific small that hardware for Marketing Manager – Service Manager – Marketing “The Development. to compete and succeed. This forward-thinking investment This forward-thinking and succeed. to compete Range Wide Area Long the launch of being the most recent metres and power metres at residential or business locations residential at and power metres metres LoRaWAN is different from traditional wireless networks that networks that traditional wireless from is different LoRaWAN Networks (LoRaWAN) in Regina and Saskatoon. and Saskatoon. in Regina Networks (LoRaWAN) coverage LoRaWAN will provide in our two largest urban will provide in our coverage LoRaWAN for cost-effective opportunities new, centres will create LoRaWAN were launched in Regina and Saskatoon to handle the specific data requirements of modern smart technologies. requirements data to handle the specific and Saskatoon launched in Regina were LoRaWAN deliver a combination of services such as voice, messaging, such as voice, services of deliver a combination A YEAR FOR THINKING SMART THINKING A YEARFOR sensors used by machine-to-machine and Internet of Things of Internet and machine-to-machine by used sensors strategy has given rise to many technological breakthroughs, technological breakthroughs, given rise to many has strategy and high capacity data services. It provides data connectivity connectivity data It provides services. and high capacity data and services that businesses throughout the province need province the businesses throughout that and services (IoT)-enabled applications. applications. (IoT)-enabled can utilize a LoRaWAN to provide metre readings at regular regular at readings metre provide to a LoRaWAN can utilize SaskTel is committed to delivering the advanced networks delivering the advanced to is committed SaskTel This includes things like utility monitoring sensors; water utility monitoring sensors; This includes things like “LoRaWAN handles the specific data requirements of requirements the specific data handles “LoRaWAN 12 | SHARING OUR STORIES “We’ve signedamemorandumof understandingwiththe The twoorganizations haveannounced thelaunchof a As theworldrapidlychanges,agriculture remains aconstant Smart farminginvolvescollecting andanalyzingdata so of Clavet.TheCentre willbeusedtotest,develop,and on maximizingefficiencyinlivestockoperations through A newagreementbetweenSaskTel andtheUniversity and importantdriverinthesuccess of ourprovince. Centre of Excellence (LFCE),whichislocated justsouth A YEAR FORA YEAR LOOKING TO THE FUTURE demonstrate world-classagriculturaltechnologies. smart farming. SaskTel signeda memorandumof understandingwiththeUniversity of Saskatchewan tobuildaneco-system for of Saskatchewan (USask)willhelptoaccelerate Development (IoT andDigitalTransformation). LFCE isthefirst research Smart Farm inCanada focused management decisionsthat improve productivity. The that producers canmake informed andsustainablefarm the latest IoT-based technologyinan interconnected wireless environment. university, thefocus of whichwillbebuildinganecosystem for smartfarming,”saidMike Stefaniuk,Director –Business transformation of the industry movinginto thefutureand transformation oftheindustry living laboratory at theuniversity’sLivestockandForage help tofeedanever-increasingpopulation. “It’s anopportunitytocollaborate withtheuniversityand The collaboration willpromote jointresearch anddevelopment computer science, socialscience, policy, marketing, and could benefitfrom such collaboration includeengineering, combine ourstrengths,” saidStefaniuk.“Particular areas that candidates for thislivinglab. community tobeginidentifyingprojects that could begood on thepath tobecoming more of aSmartFarm. SaskTel activities inthearea of engineeringfor agriculture. Inparticular, and USaskwillalsobereaching outtotheAgTech startup shift inagriculturalproduction.” data collection andmanagementpractices, toputthem Initially, SaskTel isworkingwiththeLFCEtoassisttheir many otherdisciplinestosupportthegrowing technical research anddevelopmentrelated todata acquisition,data transfer, data management,anddecisionsupportsystems for agriculturalproducers. SASKTEL 2020/21 ANNUAL REPORT | 13

life into the province, but SaskTel Cares creates a stronger a stronger creates Cares but SaskTel into the province, life connection we have the emotional amplifies brand that with our customers. activities in our CSR all SaskTel represents Cares SaskTel Pioneers, our SaskTel work of includes the province. This Start and Be Kind a Fresh our Phones for TelCare, SaskTel to building our commitment initiatives, Online (BKO) as well as our environmental the province, networks across sponsorships. work and numerous SASKTEL CARES a campaign Cares, SaskTel of 2020/21 saw the introduction to when it comes approach a cohesive gives SaskTel that in to our CSR efforts our commitment communicating we for SaskTel; a major differentiator CSR is Saskatchewan. or will than any other carrier does, the province for do more breathe that initiatives in a number of partake ever do. We preferences. And now more than ever, the increased use the increased than ever, And now more preferences. will permit us to safely practice self-installs as standard of accesses. our broadband maximize

Volunteer SaskTel Pioneers sewing Hug-A-Bears and heart pillows. SaskTel Volunteer All of this cannot be attained without our constant focus focus without our constant this cannot be attained All of delivering on expectations on customer experience, both external and to simplify business transactions for self- customer of internal customers. The acceleration and flexible an immediate serve capabilities will allow for up with changing customer and to keep experience, SaskTel continues to be the leading information and to be the leading information continues SaskTel in Saskatchewan, technology provider communications and over $1.3 billion in annual revenue with approximately than including more connections, million customer 1.4 network wireline 289,000 accesses, wireless 639,000 service maxTV 114,000 internet accesses, 289,000 accesses, security monitoring customers. subscribers, and 81,000 Corporate Social Responsibility (CSR) has become a part of a part of (CSR) has become Social Responsibility Corporate it into all integrate repeatedly everyday business. We SaskTel’s goals aligning it with our strategic our company, aspects of empowering our employees, being a leader in broadband, of to deliver an exceptional using digital transformation and maintaining our long-term customer experience, financial sustainability. This past year proved to be an exceptional year at SaskTel, in more ways than ways than in more SaskTel, at year an exceptional to be year proved This past stayed in the ways they challenged were and customers alike one. Employees others. As we enter for learned, and cared how they worked, and connected, in has stayed the course pandemic, SaskTel a worldwide of year the second the needs of and serving the communications our communities giving back to Saskatchewan. people of

Responsibility Highlights 2020/21 Corporate Social Social Corporate 2020/21 SaskTel Pioneers had a successful year, despite not being able to promote caring, support, and connections online. For to accumulate the usual volunteer hours due to restrictions example, a partnership with the Ministry of Education on gathering size as a result of the pandemic. Their nearly resulted in a series of age-appropriate mental health videos 4,000 members contributed $281,313 in financial donations, focused on anxiety. BKO was also spotlighted through and programs such Hug-A-Bears and Books for Literacy saw various sponsorships, including Trick or Treat at Mosaic a huge increase in items donated. In response to COVID-19, Stadium, and a very successful BKO mask contest with the Pioneers made masks and distributed more than 3,900 the Saskatchewan Hockey Association. across the province. This year also saw the introduction of several Kindness SaskTel TelCare was proud to celebrate its 70th anniversary Ambassadors who supported the Pink Shirt Day campaign by announcing this year’s contribution of nearly $230,000, that ran throughout the month of February. which included SaskTel’s 50% match. 65 locally operated charities and non-profits received donations, including New SaskTel and the Ministry of Education awarded 13 grants, Hope Dog Rescue, a Saskatoon-based non-profit and foster- resulting in a lifetime total of 114 grants and more than based organization that rescues and rehomes dogs. $100,000 being presented to youth for their various bullying prevention awareness and random acts of kindness. SaskTel’s Phones for a Fresh Start program collects and recycles used wireless devices from customers across SaskTel employees participated in what makes SaskTel Cares Saskatchewan. The proceeds from recycling support the so special during the 12 Days of Caring in December. Provincial Association of Transition Houses and Services of Employees were asked to show kindness by conducting Saskatchewan (PATHS), aiding victims of domestic abuse. an “act of care” and sharing it with the company, along Since the launch of the program in 2009, nearly 125,000 with submitting their Saskatchewan non-profit or charitable cell phones have been kept from our landfills, aiding in organization of choice. Twenty-five employees were SaskTel’s environmental conservation efforts. To date, randomly drawn to make a one-time $500 donation SaskTel has donated 4,070 cell phones and over $100,000 to that organization; another great example of in prepaid phone cards to participating PATHS agencies SaskTel’s generosity. throughout the province.

The BKO program was more important than ever in 2020/21. GIVING BACK DURING A TRYING YEAR With an increased demand for online communications, the In addition to our social causes, SaskTel continues to give BKO program was uniquely positioned to remind everyone back to community organizations province wide. that kindness matters more than ever. BKO’s focus on the prevention of bullying and cyberbullying took on a wider In 2020/21 SaskTel contributed $2,502,632 to 308 non-profit scope in uncertain times, offering different ways to cope and charitable organizations, community associations, with anxiety, and various initiatives and campaigns venues, events, and partnerships in 70 communities throughout the province. This was a very difficult year for 2020/21 CORPORATE SOCIAL RESPONSIBILITY HIGHLIGHTS 2020/21 CORPORATE SaskTel celebrated another successful Pink Shirt Day in February this year. 14 | SASKTEL 2020/21 ANNUAL REPORT | 15

COVID-19 RESPONSE COVID-19 of impact the didn’t feel who one person wasn’t There corporation, 2020/21. As a Crown during COVID-19 its the stress of some try and alleviate did its part to SaskTel to working or during the transition feeling were customers home. learning at waived SaskTel 2020, 2020 until June 8, 17, March From customers business and consumer for overage charges data plans, noSTRINGS Prepaid postpaid wireless on SaskTel’s was Internet plans. This offer plans and fusion wireless 2020 until January 11, 17, December extended again from over size on gathering placed were 2021 when restrictions the holiday season. to relief provided SaskTel measures, In addition to these up to six for bill deferrals zero-interest customers through plan. A two-month months, and a 12-month repayment customers currently all SaskTel to was provided credit service government’s Connecting Families signed up to the federal families. low-income for initiative SaskTel’s portion of a sizeable 2020, March By the end of tools to was equipped with the appropriate workforce of much the fiscal year, home. At the end of work from home. For front-line was still working from our workforce the of critical to the operation are employees whose roles health and safety we implemented additional company, work environment. a safe to ensure measures our customers, associates, With the health and well-being of open were Stores SaskTel priority, a top and communities 19, May Effective by appointment and curbside pickup only. transitioned back to being fully open, Stores SaskTel 2020, pickup options. appointment and curbside while still offering A new litter from New Hope Dog Rescue, one of the charities we support with SaskTel TelCare. the charities we support with SaskTel one of New Hope Dog Rescue, A new litter from These initiatives make SaskTel a frequent recipient of awards awards of recipient a frequent SaskTel make These initiatives Top Saskatchewan’s 100 Employers, Canada’s Top like Employers, and Canada’s Best Diversity Employers. SaskTel was presenting sponsor of Iceville, which saw Mosaic Iceville, sponsor of was presenting SaskTel rink. skating outdoor largest Stadium turn into Saskatchewan’s to encouraged were and skaters to the public, was free Skating Food Bank. the Regina item for bring a non-perishable food SaskTel sponsored the Saskatoon Public Schools Foundation Public Schools Foundation the Saskatoon sponsored SaskTel designed to help students and are crates Cheer Cheer Crates. during COVID- their families maintain learning and wellness items, games, books, and essential food They contained 19. distribution to families in need. hygiene items for This year, SaskTel and SaskTel’s Aboriginal Employee Aboriginal Employee and SaskTel’s SaskTel This year, Day in a Indigenous Peoples National Network celebrated membership the company’s through Together, unique way. Diversity & Inclusion Network, they in the Saskatchewan and hosted two Reconciliation 4 Seasons of sponsored powerful online videos. SaskTel was the presenting sponsor of the Saskatchewan the Saskatchewan sponsor of the presenting was SaskTel Saskatchewan Indigenous Honour Ceremony. Polytechnic the to celebrate hosts this honour ceremony Polytechnic Indigenous its achievements of and work, dedication, hard was theme, Honouring Resilience, students. This year’s further stretched a year that recognize a fitting tribute to adapt and succeed. students’ abilities to One example of this was the sponsorship of 950 water bottles 950 water of this was the sponsorship of One example Due to COVID-19 in Regina. schools community at to students bottle with water replaced were fountains water restrictions, a purchase has the means to Not every student filling stations. who couldn’t. helped those bottle, so SaskTel water many organizations, as their traditional ways of operating and and operating ways of traditional as their organizations, many challenged. funds were raising 16 | 2020/21 CORPORATE SOCIAL RESPONSIBILITY HIGHLIGHTS user experience. for future networkdemand anddeliveranexceptional and theirend-to-endsolutionwillhelpSaskTel prepare technology willfurtherenhance ournetworkcapability vendor for our5Gnetworkdeployment.Samsung’s SaskTel selectedSamsungElectronics Co.,Ltd. asthesole • • • • Some of theseinvestmentsandenhancements included: our customersconnected towhat mattered mosttothem. and enhancements, ourrobust networkscontinued tokeep in late December 2020. Thankstoourcontinual investments increase intraffic flow, breakinganall-time datausage record During thepandemic,ournetworkssawasubstantial data, andIP-basedtechnologiesservices available. some of themostadvanced wireless, internet,television, million incapitalexpenditures toensure ourcustomersenjoy technologies. Throughout 2020/21,SaskTel invested$308.2 importance of ournetworkandcommunications COVID-19 pandemicfurtherunderscored thecritical drastically changedinaveryshorttimeframe,andthe How weconnect andinteractwithoneanotherhas BUILTNETWORKS TO ENDURE Balgonie, Biggar, Langham,andPilotButte. of the initiative, SaskTel planstobringinfiNET service to communities bytheendof 2024. Duringthefirstphase households andbusinessesacross more than20rural SaskTel bringinfiNET service toapproximately 30,000 its RuralFibre Initiative, amultiphaseproject that willsee In December 2020, SaskTel announced thelaunchof than 700communities. service isavailablefrom 105wireless towersservingmore available in463communities andSaskTel fusionInternet Across theprovince, Wireline HighSpeedInternetis throughout Saskatchewan. maxTV Stream isnowavailablein388communities communities sawtheirinternetspeedsincrease and with interNETExtended25and50. Dozens of rural A continued expansionof maxTV Stream, along capacity of cell sites. completed; 221carrieradditionswere madetoincrease towers havebeenputintoservice; 85cellular siteswere estimated investmentof $72.2million.To date, 55of these announced anadditional74 newmacro towersat an As partof theWireless Saskatchewan initiative, SaskTel bin tofurtherenhance theirgreening efforts. Regina byproviding themwithacompost/recycling/garbage dedicated Green Team of studentsat DouglasParkSchool in in thecommunity. Thisyear, EnviroCare recognized the network, EnviroCare, participates inmultiplegreening activities contribution toward ahealthierplanet.SaskTel’s employee-led Community partnershipshavealsostrengthened SaskTel’s has identifiedoptimalenergy usage at SaskTel. the lastfew years.Thisisjustoneof severalwaystheEMC SaskTel facilities,andtheyconducted wholesaleretrofits over action planswastheinstallation of energy-efficient lightingin use of energy throughout SaskTel’s buildings.Oneof their The committee’s mandate istoensure efficientand effective the workof ourEnergy ManagementCommittee(EMC). Canada Inc.Oneexampleof whywewonthisaward was as oneof Canada’sGreenest EmployersbyMediacorp For thetwelfthconsecutive year, SaskTel wasrecognized ENVIRONMENTAL CONTRIBUTION SASKTEL 2020/21 ANNUAL REPORT | 17

Financial Reporting Standards and InterpretationsNew Standards Adopted Not Yet Service Record of Five-Year Glossary Operating ResultsOperating Significant Accounting Policies, and JudgmentsEstimates, New International of Application

53 54 56 42 42 Financial Summary 43 Net Income 44 Revenue 47 Expenses (Loss) Income 49 Other Comprehensive 49 Liquidity and Capital Resources 51 Capital Management 52 Capital Expenditures 53 53 Rationale for the Selection of Balanced Balanced Selection of the for Rationale

Enterprise Risk Management Introduction Forward-Looking Caution Regarding Impact AssessmentCOVID-19 Our Business Industry Our Strategy Performance Management Scorecard Performance Measures Performance Scorecard

39 Risks 39 Strategic Business Risks 40 Core 18 18 Information 18 18 19 25 Goals 25 Strategic 26 Scorecard 26 Balanced 38

Contents Management’s Discussion and Analysis Discussion Management’s 18 | MANAGEMENT’S DISCUSSION AND ANALYSIS cause disruption for an extended period, the impacts to the cause disruption for an extendedperiod,theimpacts tothe pandemic continues tobeuncertain and,ifitcontinues to on itsoperations. Themagnitudeand duration of the Corporation continues toassessandmonitor theseimpacts these measures ontheCorporation hasbeenminimal, the by vaccination programs. Whilethecurrent impactof to limittheimpactof thepandemic, whichare augmented Governments at alllevelscontinue toimplementmeasures disruption totheCanadianandworldeconomies. The COVID-19 pandemic continues tocausesignificant COVID-19 IMPACT ASSESSMENT statements mayornotoccur. uncertainties, assumptionscontained intheforward-looking competition, andregulatory environment. Giventhese conditions, interest and exchange rates, performance, include, butare notlimitedto:generaleconomic andpolitical and assumptions.Factors that caninfluence performance actual results todiffer materially from estimates, predictions, looking statements, asanumberof factorscould cause Readers shouldnotplace unduereliance onforward- or occurring subsequently. the effect of transactionsornon-recurring itemsannounced forward-looking statements donottake intoconsideration forecasted byforward-looking statements willoccur. Aswell, result, SaskTel cannotguaranteethat anyof thepredictions if estimates orassumptionsturnouttobeinaccurate. Asa or unknownrisksanduncertainties impactthebusiness,or results could differ materially from thoseanticipated if known expectations andintentionsat thetimeof writing,actual expressions. Since theseforward-looking statements reflect believe, could, expect,intend,may, should,will,andsimilar looking statements mayincludewords suchasanticipate, known todaytomake anassertionaboutthefuture. Forward- statement isforward-looking whenitusesinformation requirements, andournetworkdeploymentplans.A cash expect tousemeetouranticipated 2021/22 plans andstrategic priorities,thesources of liquiditywe statements aboutSaskTel, itsbusinessoutlook, objectives, Many sectionsof thisdiscussionincludeforward-looking FORWARD-LOOKING INFORMATION REGARDING CAUTION Corporation uptoMay26, 2021, unlessotherwisestated. to 101of thisreport andincludesinformation availabletothe financial statements andaccompanying notesonpages58 in conjunction withtheCorporation’s auditedconsolidated its subsidiaries.Thisdiscussionandanalysisshouldberead Corporation), includingitsmajorstrategic businessunitsand Telecommunications HoldingCorporation (SaskTel orthe financial position,and results of operations of Saskatchewan focuses onthestrategies, businessoperations, consolidated The following management’sdiscussionandanalysis(MD&A) INTRODUCTION

reported assetand liabilityvalues. if there willbeadditional impactsoncurrent operations or duration of thepandemic,itisnotpossibletodetermine appropriate. Giventheuncertainty of themagnitudeand Estimates of theseimpactshavebeenincludedwhere asset impairment. with aremote or unavailable workforce, andpotential of revenue, supplychaindisruption,challengesassociated Corporation willincrease. Potential impactsincludeloss building Saskatchewan’sbuilding economy. connections, SaskTel is amajor contributor to in annual revenue over and million 1.4 customer Saskatchewan. With approximately billion $1.3 our customers—the businesses and people of throughout the province for the benefit of built the most extensive broadband networks solutions and services, in Saskatchewan. We have Communications Technology products, (ICT) SaskTel is the leading provider of Information and BUSINESS OUR • • collection of ICTservices: SaskTel anditssubsidiariesoffer the following extensive Saskatchewan’s largest employers. 3,400 full-timeequivalents(FTEs),makingSaskTel oneof the world.TheHoldco hasaworkforce of approximately and solutionstocustomersinSaskatchewan andaround SaskTel International) offer awidearray of products, services, Corporation’s subsidiaries(SaskTel, Directwest, SecurTek, and is aSaskatchewan Crown corporation. TheHolding Saskatchewan Telecommunications HoldingCorporation Holding Corporation Saskatchewan Telecommunications City, andYorkton Current, TheBattlefords, Tisdale,Warman, Weyburn, White Nipawin, Prince Albert,Regina, Rosthern, Saskatoon, Swift Langham, Martensville,Melfort, Melville, MooseJaw, 900 MbpsinBiggar, EmeraldPark,Estevan,Humboldt, SaskTel speed data services inSaskatchewan networks providing high-qualityandreliable voice andhigh Evolution (LTE) andFourth-Generation (4G)wireless Wireless services delivered onworld-class Long-Term Y our Life.Connected infiNET fibre opticnetworkenablingspeedsupto . ™

SASKTEL 2020/21 ANNUAL REPORT | 19

: 1 . The business environment is . The business environment 2 Unprecedented acceleration of digital transformation digital of acceleration Unprecedented years would normally take that with changes initiatives, in months or weeks being accomplished Telecommunications Services (made up of wireline voice, wireline (made up of Services Telecommunications and data) voice wireless—both internet, and data, wireline IT Services Software Business Environment and IndustryBusiness Environment Trends to be dynamic, with 2020 proving The ICT industry continues the economy, society, to have been a tumultuous year for pandemic the COVID-19 The impact of and the industry. In some areas, on the Canadian ICT industry was varied. the change within of the rate software, and such as telecom dramatically industry increased INDUSTRY the around (and The ICT industry Saskatchewan in The society. our in role essential an plays world) ICT the how illustrated has pandemic COVID-19 and industry people connected helped has keep time. difficult this during functioning businesses industry vital be part and this of to proud is SaskTel making are we contributions the of proud are we strong. Saskatchewan keep to ICT Industry Overview to Canada’s is a major contributor The Canadian ICT industry and the consumers and to the day-to-day lives of economy the The industry is made up of businesses. of operations segments market four following 1.  (IaaS) as a Service and Infrastructure 2. Hardware 3. 4. characterized by: characterized •

SaskTel Internet 50 over DSL now offered in over now offered over DSL Internet 50 SaskTel 345 communities rural wireless fixed – comprehensive fusion Internet SaskTel in 105 sites network access broadband points access with over 6,500 selectWI-FI network SaskTel province the throughout television (IPTV) Protocol service–Internet maxTV SaskTel the province throughout with extensive footprint allowing service – streaming Stream maxTV SaskTel content live TV or on demand customers to watch in Canada anywhere urban and network throughout access Local rural Saskatchewan capabilities and service footprint centre Expansive data cloud-based communications of Complementary portfolio technology services and information services and consulting Professional services digital marketing Directwest security monitoring, and residential commercial SecurTek smartHOME and SaskTel control, including access well as medical alert and lone as interactive services, services worker solutions for and consulting software International SaskTel worldwide providers service communications Pg. 2. 2020, , December 2020–2024 Canadian ICT Forecast, Forecast: 1 IDC Market 2 Ibid., Pg. 2. • • • • • • • • • • • • of achieving annual revenue is highly competitive, SaskTel customer million $1.3 billion with over 1.4 approximately accesses, wireless than 639,000 more including connections, internet 289,000 network accesses, wireline 289,000 subscribers, and 81,000 service maxTV 114,000 accesses, security monitoring customers. One of our SaskTel Pioneer volunteers fixes up a computer for our Computers for Schools program. for Schools for our Computers computer up a Pioneer volunteers fixes our SaskTel One of 20 | MANAGEMENT’S DISCUSSION AND ANALYSIS 3 RBCCapitalMarkets: RBCElements:CanadianTelecommunications Services, January8, 2021,Pg.6. 2019–2024 CanadianICT Spending • • • • • • • • • • other industries and service theyreceive from thebestcompanies in Customers expectthesameexceptional experience considerably higherdata traffic change howmobiledevices are used,andresult in networks, whichare expectedtofacilitate newapplications, Increased speedsandreduced latency on emerging 5G 5G transitionyear 5G deploymentsare rampingup.2021ispredicted tobea Capital investmentcontinues tobemadeinfibre buildsand keeping themhighlycompetitive onbroadband speeds Service Interface Specification (DOCSIS)technology, Cable companies continue toinvestinData OverCable lower rates delivery of higherspeeds,improved coverage, and Government andregulatory pressures continue for the in ruralandremote areas continues toincrease Demand for access tofastandreliable broadband services increased entertainment at home have pivotedtoremote workandschoolingcoupled with Broadband isnow anessentialservice asconsumers increasing numbers of connected devices work, remote education, streaming services, gaming,and data anddemandfasterspeedsthat facilitate remote Customers continue toconsume greater amountsof enabled bycloud solutions, andnewconsumer services of allkinds,typically remote learning, new ecommerce andsupplychain Massive spendingundertaken toenableremote workforces, travel restrictions year-over-year revenue decline,largely duetosevere growth, whileothers suchaswireless services experienced applications, andpersonalcomputers experienced strong Market categories, includingcloud,collaborative 2019-2024 CanadianICTSpending($millions)withGrowth (%) 3 $100,000 $140,000 $120,000 $80,000 $60,000 $40,000 $20,000 Software $0 2019 Telecom Services ($ millions) 2020 with Growth

IT Services

2021 (%) serve customers. transformation of theirinternaloperations andhowthey solutions willbepositionedfor success through the faster decisionmakingandcontinue toimplementdigital throughout 2021andbeyond.Companiesthat canundertake delivering products andservices willkeep carrierschallenged the needtocontinue toadaptnewwaysof workingand Economic uncertainty, changesinconsumer behaviour, and • • • • • • • • 2022 by Rogers Communications Inc. by Rogers Communications Inc. by theproposed acquisitionof ShawCommunications Inc. Some signsof carrierconsolidation inCanadaasevidenced ethical andenvironmentally friendlymanner Increasing expectations that companies willactinan remote andunderservedareas and commercialized, providing broadband access to Low EarthOrbitsatellite constellations havebeendeployed new opportunitiesandcompetitors service offerings andenteradjacent industriesiscreating The abilityof companies toexpandtheirproduct and devices increases become more sophisticated andthenumberof connected Cybersecurity anddata privacyrisksare risingasattacks related revenue Continued declineinwireline voice subscribersand number of videostreaming services to accelerate, withconsumption shiftingtoanincreasing Cord cuttingbytraditionaltelevisionsubscriberscontinues automation isnowakey enablerof businessresilience physically distanced operational adjustmentsmeansthat increase indigital channels,onlineself-service, and response tochanging consumption patterns, thenecessary computing) existedbefore the pandemic,butenterprises’ process automation, artificialintelligence, IoT andedge Technological changeanddisruption(suchasrobotic Hardware &IaaS Hardware 2023 Total Growth (%) Total Growth 2024 -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

SASKTEL 2020/21 ANNUAL REPORT | 21 1.3 5.4 2.4 3.6 15.5 13.9

22.9 . 6 4.2 2.5 0.4 0.8 2.0 CAGR (%) CAGR 2019–2024 3.4% 2024 21,850 53,659 25,410 21,322 122,240 3.7% 2023 20,456 52,061 24,736 21,332 118,585 . 4.0% 7 2022 19,285 50,409 24,091 20,558 114,343 COGECO Inc. COGECO SaskTel Quebecor (Videotron) BCE Inc. Corporation TELUS Inc. Rogers Communications Inc. Shaw Communications (9%) services REVENUE BY COMPANIES TOP (2020; $ billions) Telecommunications Services Telecommunications market Services Telecommunications within the Overall, firms supported the pandemic, well throughout have performed strong and their services broadband of by the essential nature largest to be the continue services sheets. Wireless balance by followed revenue, 47% of around segment, generating (12%), and traditional telephoneinternet (32%), television The top companies by revenue in Canada continue to be in Canada continue by revenue The top companies regional by several followed carriers, national large the three the country. carriers throughout The chart on the previous page and the following table table and the following page previous on the The chart (CAGR) rate growth annual IDC’s compound illustrate Telecom segments: ICT market four in the projections IaaS and and Hardware IT Services, Software, Services, 1.3% 2021

18,279 48,615 23,479 19,569 2021E

109,942 2020E

2019 2018 Other (0%)

. Digital . This 5 2017 4 Internet (32%)

Television (12%) Television 2020 -1.8% 2016 17,649 46,687 23,424 20,722

108,483

2015

Wireless (47% of revenue) (47% of Wireless 2014

2013 2012

Traditional Telephone Services (9%) Telephone Traditional 3.7% 2011 2019

17,782 47,519 24,864 20,289

110,455 2010 Canadian ICT Spending by Primary Markets, 2019–2024 ($ millions) 2019–2024 Canadian ICT Spending by Primary Markets,

2009

2008

2007

2006

2005

2004

2003

2002 2001

2000-2021E CAGR: Wireless: +8% Wireless: Internet: +6% +2% Television: -4% Services: Telephone Traditional +3% Total: 2000 0 10

70 50 30 20 40 60

Software Telecom Services Telecom IT Services and IaaS Hardware (%) Growth Total Total Canadian Telecommunications Revenue ($B) Revenue Telecommunications Canadian Source: RBC Capital Markets estimates, company reports company estimates, RBC Capital Markets Source: Notes: wholesale services. and include services video/TV exclude services Telecom technology spending. Platform 3rd does not include all aspects of Data 2020 IDC, Source: , December 2020, Pg. 2. 2020, , December 2020–2024 Canadian ICT Forecast, Forecast: 4 IDC Market 5 Ibid., Pg. 4. 6 Ibid., Pg. 1, 5. 2021, Pg. 7. Industry, January 8, the Canadian Telecom M&A Playbook for Fall—An Stand, Divided We RBC Imagine: United We 7 RBC Capital Markets: ICT Spending Growth Forecast Growth ICT Spending on ICT spending IDC, firm research industry to According is forecasted 2020 in Canada for and services products in 2021 to 1.3% and to rebound by 1.8% to be down to adapt. investments are expected to continue even as the pandemic even as to continue expected investments are and social will be new economic there eventually recedes—as will need and businesses consumers disruptions to which Looking ahead to the post-pandemic economy, IDC does not ahead to the post-pandemic economy, Looking the old ways to and businesses to return expect consumers or running their businesses their lives conducting of forecasted return to growth is contingent on successful mass on successful contingent is to growth return forecasted It is expected the country. throughout programs vaccination impacted to be will continue and businesses consumers that inresulting conditions, depending on lockdown differently by geography and sector. varying conditions economic 2019-2024 Canadian ICT Spending ($ millions) with Growth (%) ($ millions) with Growth Canadian ICT Spending 2019-2024 22 | MANAGEMENT’S DISCUSSION AND ANALYSIS telegraph, railsystem,automobile,andinternet similar totheprintingpress, steamengine,electricity, industry givenitspotentialasageneral-purposetechnology 5G isstillbelievedtoholdtremendous promise for the proceeded more slowlythanoriginallyanticipated. Canada’s largest citiesanddensestwireless corridors has the promise of future expansion.Developmentbeyond launching geographicallylimited5Gnetworksin2020with to bea5Gtransitionyear, withthethree national carriers related toequipmentsuppliers,2021islikely tocontinue As aresult of boththeCOVID-19 pandemic andchallenges to decline. telephone services aswireline voice subscriberscontinue segment. Thesamefactorsare impactingtraditional video services) continued tohaveanimpactonthetelevision Cord cuttingandproduct substitution(primarilytostreaming for astrong recovery inroaming revenue vaccination rollout, 2021appearstoholdlimitedpotential restrictions stillin place inearly2021,pendingamass and international travel,reducing roaming revenue. With resulted intheunprecedented collapse of bothdomestic put inplace bythefederal andprovincial governments.This The wireless segment wasimpactedbylockdown measures across thevarious businesssegments. throughout thepandemic, 2020proved tobeavariedyear Despite theoverallpositiveperformance of carriers and precision agriculture). transform societies(e.g.,autonomousvehicles,smartcities, but could alsoredefine economic competitiveness and and businesseshigheraccess speedsandreduced latency therefore hasthepotentialtonotonlyoffer consumers over time,andtheabilitytospawnnewinnovations. 5G pervasive useacross industries,continuous improvement general purposetechnologiesare characterized by into 2021 average revenue peruser(ARPU)ispredicted heading off. Continuedgrowth ininternetsubscribersand fibre networksover thepastdecadehasbeguntopay networks. Thisisonearea where carriers’investmentsin demand for broadband services andutilization of broadband streaming videoand gaming) seeking more home-based entertainmentoptions(suchas to remote workand schooling,combined withconsumers The internetsegmentperformed wellin2020duetotheshift 14 Ibid.,Pg.6. 13 IDCMarket Forecast: CanadianICTForecast, 2020–2024, December 2020, Pg.6. 12 Ibid.,Pg.6. 11 RBCCapitalMarkets: RBC Imagine:UnitedWe Stand,Divided We Fall—An M&A Playbookfor theCanadianTelecom Industry,January8, 2021,Pg.6. 10 RBCCapitalMarkets: RBCElements:CanadianTelecommunications Services , January8, 2021,Pg.7. 9 IDCMarket Forecast: CanadianICTForecast, 2020–2024, December 2020, Pg.6 8 RBCCapitalMarkets: RBCElements:CanadianTelecommunications Services, January8, 2021,Pg. 4 10 . 9 . Thisresulted in increased 8 . 11 . Such

will emerge inCanadabeginning2022 limited butitisbelievedthat agrowing wedgeof 5Grevenues auctions. Visibilityinto5Gmonetization continues tobe spectrum auctioninJune2021andfuture millimetre wave improve asaresult of thecompletion of the3500MHz Canada. Performance andcapabilitiesof 5Gnetworkswill investments inandongoingexpansionof 5Gnetworksin In 2021andbeyond,there willcontinue tobesignificant procurement deployments customer service, salesautomation, supplychain,and growth inareas suchassubscriptionbillingtools, offerings. CloudandSaaS offerings continuetosee of businessspendingfor on-premise andcloudsoftware to grow toapproximately $21billionby2024 asaresult Spending intheCanadiansoftware market isexpected care, andagriculture markets. made intheInformation Technology consulting, health (IT) access services. Specifically, suchinvestmentshavebeen business that buildupontheircore wireless andinternet carriers continue tomake investmentsinnewlinesof creating newopportunitiesandcompetitors. Canadian product andservice linesbeyondtheirtraditionalofferings, integrated andlessdistinct.Theresult iscarriersexpanding telecommunications services astechnologiesbecome more Software andcomputer services continue toconverge with Software andInformation Technology Services projects coupled withanabsence of large transformational a reduction inconsulting andintegration engagements spending growth. Thisisaresult of thepandemiccausing The ITServices market isforecasted toexperience slower and networkservices. some growth occurring asaresult of growth inhosted 14 . Outsourcing services are holdingsteadywith 13 . 12 .

SASKTEL 2020/21 ANNUAL REPORT | 23

In January 2020, the Broadcasting and Telecommunications and Telecommunications Broadcasting the 2020, In January report. final their presented Panel Review Legislative on modernizing 97 recommendations made The report governing the framework and regulatory the legislative all including: bringing sector in Canada, communications to Canadians services media content entities providing providers) and foreign domestic conventional, (online and Act and under the Broadcasting the of within the scope of the rollout and accelerating the CRTC; jurisdiction of networks, including 5G. and wireless wireline advanced The federal government has begun to advance legislation government has begun to advance The federal these topics. to some of related spectrum will auction wireless In summer 2021, ISED furtherMHz band. ISED is consulting in the 3500 licences and framework licensing wave spectrum on the millimetre details and rules have not been finalized.the specific auction 5G networks. important to future These spectrums are or not to will also need to determine whether Regulators Shaw by Rogers—a acquisition of the proposed approve cable footprint a national give Rogers will $26 billion deal that network. The deal wireless in addition to its existing national landscape in the competitive has the potential to reshape Canada. Western

The federal government announced the Rural Strategy the Rural government announced The federal Canada in for and the Rural High Speed Internet Strategy Canadian homes and 95% of of setting a target June 2019, least 50 at of to internet speeds businesses having access and 100% Mbps download and 10 Mbps upload by 2026, to achieve these funds have been created Various by 2030. funds being overseen by the CRTC objectives, with different and ISED. Various mandate letters from the Prime Minister to successive letters from mandate Various and Industry established Science Innovation, Ministers of in the market, included expanding MVNOs that expectations the new entrants, and reducing for spectrum space reserving is phone bills by 25%. This reduction cellular of average cost BCE, of rates the provincial by comparing being measured providers mobile service the regional and and Rogers TELUS, for those against the rates buckets specific data three for the measurement Halfway through in January 2020. buckets declined some 14%. have period, these rates for SaskTel. for The CRTC is also exploring its authority to have ISPs take The CRTC information malicious action against botnets, which spread costs in implementation on the internet. This may result in 2021. The CRTC established new measures that service providers providers service that established new measures The CRTC nuisance Canadians from better protect must implement to to implement providers service has asked calls. The CRTC these calls. The to further address additional technologies is and implementation unproven, technology is currently but is still expected to occurtaking longer than anticipated, of services in Canada. services of The CRTC has reviewed the regulatory framework for framework the regulatory has reviewed The CRTC including the areas, with focus services mobile wireless for wholesale access markets, retail of competitiveness the future and (MVNOs), operators mobile virtual network Regulatory Environment Radio- the Canadian such as entities government Federal and (CRTC) Commission and Telecommunications television Development Canada and Economic Science Innovation, over the industry. oversight regulatory significant (ISED) have and financial operations can impact the decisions Regulatory providers. service of performance 24 | MANAGEMENT’S DISCUSSION AND ANALYSIS SASKTEL 2020/21 ANNUAL REPORT | 25 VALUES Honesty, Integrity, Respect Integrity, Honesty, customer experience To provide an exceptional To MISSION — at home,— at work, and on the go OUR NORTH STAR: BROADBAND OUR NORTH STAR: Providing our customers fast with and reliable access the internet location to any at Financial Sustainability Maximize Long-Term Workforce Empower a High-Performance through Digital Transformation SaskTel Reinvigorate Lead the Market in Broadband ServicesLead the Market Deliver an Exceptional Customer Experience Deliver an Exceptional VISION people their to world Be the best connecting at STRATEGIC GOALS STRATEGIC OUR STRATEGY and skills, new technologies, using SaskTel to transform continue teams and dedicated Our talented to central remain this, customers While pursuing competitive. the company keep that approaches we are services, leading in broadband to customer experience exceptional goals—from our strategic world. people to their to connecting committed 26 | MANAGEMENT’S DISCUSSION AND ANALYSIS and onthego. throughout Saskatchewan, at anylocation—at home,work, endeavour todeliverfastand reliable broadband services experience beginswithourNorthStar—broadband. We SaskTel’s missiontoprovide anexceptional customer Our NorthStar scorecard measures andtargets. approval of SaskTel’s annualstrategic plan,includingbalanced our industry. TheCICBoard of Directors provides final competitive situation andconstant changeoccurring within alignment withshareholder expectations, alongwiththe ensure thedevelopmentof ourstrategic plansmaintain SaskTel’s Board of Directors andExecutive Team striveto a reality in2021. Saskatchewan initiative, andour5Gnetworkwillbecome rural cellular services willbeenhanced viatheWireless network (targeting onemillionbroadband accesses by2025), To achievethis,SaskTel willfurtherexpandourfibre optic invest, grow, andimprove theprovince’s ICTinfrastructure. people of Saskatchewan. ThisincludesSaskTel continuing to to buildingastrong economy andabetterlife for the Growth 2020–2030. Thisdocumentservesasaroadmap Saskatchewan’s Growth Plan:TheNextDecade of SaskTel’s strategic planningisalsoinfluenced by • • • • • • • for 2021/22: Seven Crown Sector Strategic Prioritieswere established policy direction to SaskTel andtheCICCrown sector. Priorities toarticulate shareholder expectations andbroad CIC’s Board of Directors developsCrown SectorStrategic by Crown Investments Corporation (CIC)of Saskatchewan. Shareholder direction isestablishedfor theCrown sector exceptional customerexperience todayandinthefuture. shareholder expectations, andprovide ourcustomerswithan to ensure thecompany continues totransform, achieve people of Saskatchewan. Ourstrategic goalshavebeenset SaskTel isaprovincial Crown corporation, ownedbythe Alignment withOurShareholder Crown Collaboration Technology andInnovation Private SectorEngagement Priority Investments Financial Sustainability Skilled LabourForce Customer Focus

Saskatchewan’s bestbroadband services. fixed wireless, and5Gwill contribute toSaskTel providing our networksthroughout theprovince. Fibre, DSL,mobile, to improve thecoverage, capacity, reliability, andspeedof These forces are drivingSaskTel toinvestinenhancements fierce inbothfixed andmobile broadband sectors. pandemic). Atthesametime,competition continues tobe of whichhas,insomecases,beenaccelerated bythe new technologies,applications, andservices (theadoption quality. We knowthiswillcontinue withtheemergence of Customers expectfasterspeeds,more bandwidth,andhigher COVID-19 pandemic. to beof vitalimportance toourcustomersthroughout the sustainable long-termgrowth for SaskTel andhasproven it isthecore service weprovide. Itisthelargest driverof Broadband isan essential service toourcustomersand balanced scorecard are notreported intheannualreport. For competitive reasons, certain measures includedinour monitored bytheSaskTel andCICBoards, quarterly. us tomake operational adjustmentsasnecessary. Results are The measures are monitored throughout theyear, allowing our expectations of highperformance. goals. Targets are setannuallythat are challengingandreflect the direction provided byCICandwilldriveustoachieveour a rigorous internalprocess toensure theyare alignedwith of thecompany. Measures andtargets are developedthrough achieving ourstrategic goalsandensuringtheoverallsuccess The measures includedonthescorecard are fundamentalto Crown sector. measurement systemthat isusedthroughout theprovincial monitor performance. Itisawidelyaccepted performance SaskTel usesabalanced scorecard tomeasure and through the company’s balanced scorecard. monitors performance against our strategic goals with solid financial SaskTelresults. continually exceptional coupled support, and services, products, responsible to the of people Saskatchewan to provide acompetitiveAs Crown corporation, SaskTel is PERFORMANCE MANAGEMENT BALANCED SCORECARD BALANCED SASKTEL 2020/21 ANNUAL REPORT | 27

1% above 1% above

2020/21 result 2020/21 result 2021/22 Target 1% below Maintained 2019/20 result 2019/20 result 2020/21 Result our customers self-serve customer Accelerate self-installs Accelerate Strengthen customer experience Strengthen Use business intelligence to understand 2020/21 • • PATH TO SUCCESS TO PATH • • 1% above 1% above 2019/20 result 2019/20 result Approved Target Approved Maintained Maintained 2018/19 result 2018/19 result 2019/20 Result CUSTOMER EXPERIENCE AT EVERY TOUCHPOINT ALONG THEIR JOURNEY WITH SASKTEL. JOURNEY WITH THEIR ALONG TOUCHPOINT EVERY EXPERIENCE AT CUSTOMER DELIVER AN EXCEPTIONAL EXPERIENCE CUSTOMER OUR CUSTOMERS ARE AT THE CENTRE OF EVERYTHING WE DO. WE WILL DELIVER AN EXCEPTIONAL EXCEPTIONAL WILL DELIVER AN WE CENTRE OF EVERYTHING THE DO. WE ARE AT OUR CUSTOMERS Customer experience – consumer Customer experience – business Customer experience the province a better place for everyone. for a better place the province and Innovation customer experience is aligned with the Customer Focus, and Technology Delivering an exceptional Priorities. Sector Strategic Crown Customer expectations and preferences are evolving. SaskTel is focused on changing with our customers and on changing is focused SaskTel evolving. are and preferences Customer expectations want, making it easy to they will serve customers how and where customer interactions. We continuously improving and utilize channels to market our to modernize we continue that achieve this, it is important To do business with us. to do things right the strive service. We and personalized deliver proactive analytics to and data business intelligence beyond. initial contact and experience from customer an exceptional first time and deliver our pride in knowing what we take customer relationships, a local company with strong As employees of the to provide proud are employees SaskTel Saskatchewan, in communities throughout customers value. Residing to make our neighbours need, helping technology services that entertainment, and information communications, Customer Satisfaction Measure SaskTel remains committed to providing our customers with exceptional experiences. our customers with exceptional to providing committed remains SaskTel In December 2020, SaskTel was recognized as the most respected wireless service provider in Saskatchewan in the Canada’s in Saskatchewan provider service wireless as the most respected was recognized SaskTel 2020, In December on to industry-wide performance by Maru/Blue. With respect survey conducted Companies Most Respected Telecom in November (CCTS) Services Telecom-television Complaints for by the Commission of as measured customer complaints, in the Canadian industry. ratios the lowest customer complaint achieved one of SaskTel 2020, Customer Satisfaction Performance Customer Satisfaction and 2% below the 2020/21 came in 1% below the 2019/20 result market the consumer for score The customer experience but 1% below the 2020/21 targeted equal to the 2019/20 result remained the business market for The result target. and business on-site install and repair eCommerce, stores, of in the areas met or exceeded were Targets improvement. Support Centres, wait times in our Customer Contact and Technical on opportunities to reduce is focused SaskTel services. levels. customer experience in improved which will result Balanced Scorecard at taken customer survey results of score with a composite is measured customer experience an exceptional Our delivery of A 10-point scale is used. separately. reported are touchpoints. Consumer and business customers key 28 | MANAGEMENT’S DISCUSSION AND ANALYSIS • • Achievements in2020/21 Further implemented our Customer Experience Further implementedourCustomerExperience COVID-19 pandemic: Supported ourcustomersandcommunity throughout the » » » » » » » » » » First program:

Reduced repeat truckrolls within30daysof repairs Reduced in-homeWi-Fitrouble reports COVID-19 madeself-servemore criticaltocustomers Accelerated thedeliveryof self-servefunctionalityas their seasonalproperties additional monthstosupportcustomersunableopen Extended theseasonaldisconnect optionfor uptosix Families initiative for low-income families currently signeduptothefederal government’sConnecting Provided atwo-monthservice credit toSaskTel customers 12-month repayment plantoprovide relief tocustomers Offered zero-interesta billdeferrals for uptosixmonthsand wait times Trained additionalstaff totake customercallsto reduce and employees services withadditionalstepstaken toprotect customers Stores anddealers remained opentoprovide essential maxTV Stream customers news andentertainmentchannelstomaxTV service and kept internetplansunlimited,andprovided complimentary overage charges for wireless andfusionInternetcustomers, For alimitedtimeduringthepandemic,waiveddata Nations, education, andgovernmentagencies additional devices for health,protective services, First and otherservice providers toprocure thousandsof Leveraged ourrelationships withequipmentmanufacturers

• • • • • • • • throughout Saskatchewan Expanded maxTV Stream toover380communities province withtheadditionof 74 macro towers services inruralandremote communities throughout the The Wireless Saskatchewan project enhanced LTE cellular highest lifetime revenue for wireless services inCanada Continued tohavethelowestcustomerchurnrate and in Saskatchewan 2020 CCTS report—SaskTel onlyreceived 0.1% of complaints Improved ourperformance over theprevious yearonthe Quality Study(West Region) Ranked second intheJ.D. Power 2020Wireless Network Simplified HighSpeedInternetrate plans customers amore robust Wi-Fisolution Launched thenewOptimumIn-homeWi-Fiservice, providing Strengthened first contact resolution maxTV STREAMAVAILABILITY March 31,2021 SASKTEL 2020/21 ANNUAL REPORT | 29

87.0% 66.0% 847,805 2021/22 Target

85.0% 60.0% 832,490 2020/21 Result Saskatchewan accesses broadband Maximize Transformation Process Broadband Build fixed and mobile broadband networks broadband and mobile Build fixed in rural and remote Enable broadband 84.0% 60.0% 811,761 2020/21 • • PATH TO SUCCESS TO PATH • • Approved Target Approved 83.1% 791,942 for 2020/21 for New measure 2019/20 Result RELIABLE INTERNET AT ANY LOCATION—AT HOME, WORK, AND ON THE GO. AND WORK, HOME, LOCATION—AT ANY INTERNET AT RELIABLE LEAD SERVICES THE MARKET IN BROADBAND AND ENHANCES QUALITY OF LIFE IN SASKATCHEWAN. WE WILL PROVIDE ACCESS TO FAST AND FAST TO ACCESS WE WILL PROVIDE QUALITYAND ENHANCES SASKATCHEWAN. OF LIFE IN BROADBAND IS ESSENTIAL TO THE LIVES OF OUR CUSTOMERS, STIMULATES ECONOMIC GROWTH, GROWTH, ECONOMIC STIMULATES LIVES OF OUR CUSTOMERS, THE IS ESSENTIAL TO BROADBAND Broadband is SaskTel’s core service. High-performance fixed and mobile broadband services are indispensable to our services are broadband and mobile fixed service. High-performance core is SaskTel’s Broadband learn, connect with them to work, do business, the pandemic—enabling than throughout so customers—no more is to our customers understands how important broadband entertainment. SaskTel and enjoy online friends and family, and speed reliability, the coverage, capacity, on improving continually focused are We economy. and Saskatchewan’s our networks. of needs by expanding broadband customer and future current will satisfy SaskTel is competitive. market The broadband wireless coverage,fixed DSL speeds, expanding mobile and and fibre network, improving our fibre of the reach Saskatchewan. in rural and remote and enabling broadband delivery processes, our broadband transforming Priorities: Sector Strategic aligned with six Crown services are in broadband the market to lead initiatives Our key Sector Engagement; and Private Financial Sustainability; Priority Investments; Customer Focus; Skilled Labour Force; and Innovation. Technology Total broadband access* broadband Total SK homes and businesses with access broadband least 50 Mbps fixed to at SK homes and businesses with access broadband least 300 Mbps fixed to at Broadband Connections Network Advancements Measure Includes SaskTel internal use Includes SaskTel * Balanced Scorecard in the number of our North Star—growth toward the progress through is measured performance services broadband SaskTel’s homes and Saskatchewan to provide network advancements through performance also measure We accesses. broadband the speeds throughout delivering higher broadband speeds. Our performance to higher broadband businesses with access least 50 Mbps to at have access homes and businesses that of percentage capturing the by measures is demonstrated province broadband. 300 Mbps fixed at least and broadband, fixed SaskTel is very proud to be building world-class broadband infrastructure in Saskatchewan, providing the people of the province the province the people of providing in Saskatchewan, infrastructure to be building world-class broadband is very proud SaskTel evident than during 2020/21 and this was never more of to their world. The importance connect opportunities to with greater the pandemic created. that connectivity need for the increased 30 | MANAGEMENT’S DISCUSSION AND ANALYSIS • • • • • Achievements in2020/21 Keeping ourDSLupgradesandfibre expansionprograms onschedule contributed tothese results. provincial coverage of homesandbusinesseswithaccess toat least300Mbpsfixed broadband bysevenpercentage points. download speedsfrom 83.1% to85.0%, exceeding ourapproved target. We alsoexceeded ourapproved target for the In 2020/21,SaskTel increased provincial coverage of homesandbusinesseswithaccess toat least50Mbpsfixed broadband Network AdvancementPerformance road toamillionbroadband accesses by2025. 2020/21 totalbroadband accesses target bynearly21,000 connections. SaskTel ismakingsignificantprogress toward our Given that broadband isSaskTel’s NorthStarandcriticaltoourfuture success, weare delightedtohaveexceeded the Broadband ConnectionsPerformance and WhiteCity Emerald Park,Humboldt,Martensville,Nipawin,Warman, continued inthemajorcentres andbeyond,including Our Fibre tothePremises (FTTP)infrastructure build communities, providing downloadspeedsof upto50Mbps interNET Extended50waslaunchedin21additionalrural communities, providing downloadspeedsof upto25Mbps interNET Extended25waslaunchedinsixadditionalrural 300 Mbps Melfort inDecember 2020, enablingspeedsof upto infiNET service waslaunchedinsomeresidential areas of communities overthenextfour years households andbusinessesinmore than20rural project tobringinfiNET service toapproximately 30,000 Initiated SaskTel’s RuralFibre program, amulti-phase

MACRO TOWER SITES

• • • • and anadditional19sitesbytheearlysummerof 2021 complementing theexisting15sitesdeployedin2019/20, the deploymentof 55newmacro towersin2020/21, LTE cellular services inruralSaskatchewan through The Wireless Saskatchewan project continued toenhance network andour4G/5GRadioAccess Network(RAN) deliver equipment,software, andexpertisefor our5Gcore Selected SamsungElectronics Co.,Ltd. asourpartnerto Saskatoon, andMooseJawwere completed in2020/21 to 4.5G LTE service intheninemajorcentres; Regina, Increased wireless data capacitybystartingupgrades and IoT-enabled devices deployment of machine-to-machine(M2M)technology to enhance andevolvetheiroperations through the is purpose-builttoprovide businessesopportunities (LoRaWAN) inRegina andSaskatoon. TheLoRaWAN Launched SaskTel’s firstlong-rangewidearea network by earlysummer2021 Tower inservice as of March 31,2021 Tower inservice

SASKTEL 2020/21 ANNUAL REPORT | 31 Shaunavon (Southeast) Shaunavon Simmie Swanson (North) Torquay – Indian Point Lake Turtle Muddy Lake Murphy Creek Neudorf (East) Park Bluff (North) Parkerview Pasqua Petaigan Petrofka Phippen Pontrilas Ranch Lake Denis St. Sokal South Star South Touchwood Spalding (East) Speers Trossachs (East) Vera Wandsworth Worcester (North) Wroxton Hendon (West) Kuroki Makwa – Loon Lake Lake Marean Mount Pleasant Prince Albert (East) Emma Lake – Murray Point Emma Lake Gledhow Glen Harbour Glentworth Govan (East) Gray Deer Great Jedburgh Jumping Lake Juniata Keppel Kessock Krydor (South) Lajord Leinan (North) Livelong Lorenzo Lorlie (West) Main Centre Marie Hill Maude Lake Meacham (East) Minnehaha Mont Nebo Glamis Arlington Beach Arran Candle Lake River (East) Carrot Drinkwater East Fairwell Aberdeen (Southwest) Aberdeen In service late summer 2021 In service late Beresina (Southeast) Borden (Northeast) Broderick Burnham Clayridge Lake Crescent Damour Park Danielson Provincial (West) Davidson Davis (North) Domremy Park Douglas Provincial Downie Lake Duncairn (North) Duperow Ebenezer Fairlight Fielding Filion Lake Fort Walsh Butte Frenchman Garthland (South) Gibbs In service as of March 31, 2021 March as of In service (North) Atwater MACRO TOWERSITES 32 | MANAGEMENT’S DISCUSSION AND ANALYSIS of revenue. ratio that measures operating profit (earningsbefore interest, taxes, depreciation, andamortization expense)asapercentage EBITDA margin continues tobeusedmeasure SaskTel’s operational efficiencyand profitability. Itisawidelyusedfinancial sustainability overthelongterm. for 2020/21.Withongoingrevenue lossesfrom legacyservices, thesebenefitswillhelpmaintainthe company’s financial streamline ourworkandmake thingseasierfor ourcustomers.SaskTel setatarget of $10millioninincremental benefits transformation willbetheresult of newrevenues whileotherswillprovide benefitsfrom we operational efficienciesas introduced tocapture ourperformance: Benefits Realized from Transformation Initiatives. Some of thebenefits from digital Success with SaskTel’s digitaltransformation activitiesiscriticaltothecompany’s future. Anewmeasure for 2020/21was Balanced Scorecard REINVIGORATE SASKTEL THROUGH DIGITAL THROUGH REINVIGORATE TRANSFORMATION SASKTEL Sector Engagement;andTechnology andInnovation. Sector Strategic Priorities:CustomerFocus;SkilledLabourForce; FinancialSustainability;PriorityInvestments;Private SaskTel hasalignedourstrategic goaltoreinvigorate ourcompanythrough digitaltransformation withsixCrown experience. Thisreinvigoration willmake SaskTel more agileandresponsive totheevolvingneedsof ourcustomers. automation, andcustomerself-serveopportunitieswillfurtherourabilitytoprovide anexceptional customer new digitaltechnologies,developingskillsinouremployees,andsimplifyingprocesses. Businessintelligence, effective ways of doingbusinessandmakingiteasier for ouremployeestoservecustomers. We are adopting Our digitaltransformation placesthecustomerat thecentre of everythingwedo.We are focused onfindingmore customers have more choicesthaneverbefore. Products andservicesare changingrapidlyandnewcompetitorsare emerging from adjacentmarkets. SaskTel’s The worldisbecomingmore digitalandthisisimpactingeveryindustry, creating newchallengesandopportunities. WE WILLUSETECHNOLOGY TO BUILDNEWBUSINESSCAPABILITIES, MAKINGITEASIERFOROURCUSTOMERS TO DOBUSINESSWITHUSANDEASIERFOROUREMPLOYEES TO SERVE CUSTOMERS. • • • • PATH TO SUCCESS customer experiencegoal Transformational initiatives from ourexceptional Implement adigital-onlyoperating model Automate Simplify

SASKTEL 2020/21 ANNUAL REPORT | 33 $20.0 28.0% 2021/22 Target $15.4 28.2% 2020/21 Result 2020/21 $10.0 27.2% 2020/21 Partnered with the University of Saskatchewan’s Livestock Saskatchewan’s with the University of Partnered to test, develop, and Excellence of and Forage Centre technologies smart farming demonstrate Relationship to our Customer Completed simplifications Management systems simplifying to mySASKTEL.com, Completed enhancements process registration the customer account payment process, Implemented a new pre-authorized debit allowing customers to set up pre-authorized payments online • • • • Approved Target Approved 29.2% for 2020/21 for New measure New measure 2019/20 Result 2019/20 Benefits realized from transformation transformation from realized Benefits ($ millions) initiatives margin EBITDA Employees made extensive use of digital collaborationEmployees made extensive use of functioning and SaskTel employees safe tools, keeping the pandemic throughout Digital Workforce SaskTel’s Launched ELEVATE, “sprints” have ELEVATE Numerous program. Transformation and processes repetitive automating been completed, efficiencies creating being are Opportunities have been identified and including Transformation, Process pursued in Broadband installation sales, programming, for processes streamlining forcost and extra effort the causes of removing and repair; to customers service employees to deliver broadband city to launch a smart Melfort with the City of Partnered smart city establishing the city as a hub for initiative, This included working with Saskatchewan-based technology. for platform piloting an integrated Innovations, Greenwave monitoring and resource the city’s environmental Transformation Efficiency Measure Achievements in 2020/21 • • • • The EBITDA margin is a key measure for our overall operational efficiency. Once again, we have exceeded our 2020/21exceeded again, we have Once efficiency. our overall operational for measure is a key margin The EBITDA and business simplification, growth, revenue of to be a result continue performance margin in EBITDA Improvements target. improvements. operational Efficiency Performance Efficiency Transformation of how SaskTel does business is critical to the company’s future performance and competitiveness. In 2020/21, competitiveness. and performance future does business is critical to the company’s how SaskTel of Transformation and smallof large a number of over $15 million through initiatives transformation benefits from able to realize we were enabling self-serve install, eBill adoption, CPE optimization, portfolio, application including simplifying the software initiatives, automation. process and using robotic assurance, revenue Transformation Performance Transformation 34 | MANAGEMENT’S DISCUSSION AND ANALYSIS changing businessneeds. level of employeeconfidence that theyhavetheskillstosuccessfully perform theirdutiesinalignmentwiththe company’s The learningandgrowth measure of employeeperception of skillevolutionusesasubsetof surveyquestionstoindicate the Employee engagementisanindicator of employees’dedication andwillingnesstogoabovebeyondintheirwork. SaskTel usesanindependentvendortoconduct andtabulate surveyresults. empowering ahigh-performance workforce. Theresults of thesemeasures are determinedbyourannualemployeesurvey. Measures focused onemployeeengagement,andlearninggrowth are usedaskey indicators of ourprogress on Balanced Scorecard Measure Employee Engagement Learning andGrowth Employee engagementscore of skillevolution Employee perception Customer Focus;SkilledLabourForce; andTechnology andInnovation. Our strategic goalof empoweringahigh-performance workforce isalignedwiththeCrown SectorStrategic Priorities: strategic importance. and agilityof ourworkforce isessentialtoourabilitycollaborate effectively andallocate resources toareas of We looktoallemployeesdevelopnewideasandbusinessimprovements. Continuingtoenhancetheadaptability training andrecruitment iscrucialtoremaining highlycompetitiveandsatisfying ourcustomers’evolvingneeds. and healthyteamof employees.We are committedtocontinuallearning.Acquiringnewskillsandknowledgethrough Our industrycontinuestochangerapidly. Itiscriticaltoourfuture successtohave anenabled,engaged,empowered, centred onourcustomers.Ourfocus onhealthandsafety hasbeenelevated furtherbytheCOVID-19 pandemic. At SaskTel, weare acompanythat isproud, accountable,innovative, respectful, seriousabouthealthandsafety, and TOGETHER, OUR SKILLED WORKFORCE IS COMMITTED TO TRANSFORMINGSASKTELFORTHEFUTURE TOGETHER, OURSKILLEDWORKFORCE ISCOMMITTED EMPOWER HIGH-PERFORMANCE A WORKFORCE AND ENSURINGWEDELIVERTO OURCUSTOMERS’ EXPECTATIONS. Eight percentage One percentage 2019/20 Result 2018/19 target 2018/19 target points below point below Approved Target One percentage Two percentage 2019/20 result 2019/20 result points above point above • • • PATH TO SUCCESS 2020/21 Lead SaskTel through digitaltransformation Living ourculture Improve employee engagement Thirteen percentage 2020/21 Result 6.5 percentage 2019/20 result 2019/20 result points above points above One percentage Two percentage 2021/22 Target2021/22 2020/21 result 2020/21 result points above point above

SASKTEL 2020/21 ANNUAL REPORT | 35

support services through SaskTel Employees’ Personal SaskTel through support services Program Problem Introduced a new remote work policy in response to the in response work policy a new remote Introduced our employees a new way pandemic, offering COVID-19 and other responsibilities work, family, to balance as part of measures and safety our health Enhanced pandemic to the COVID-19 ongoing response SaskTel’s connected Saskatchewan the people of while keeping confidential and mental health resources Provided • • • Canada’s Top 100 Employers Canada’s Top Employers Top Saskatchewan’s People Young Employers for Canada’s Top Canada’s Best Diversity Employers Employers Canada’s Greenest Digital transformation working Remote Change management Mental health and wellness Cybersecurity

» » » » » Canada’s Best Employers in 2021 Forbes Named one of 100 Companies by Top Saskatchewan’s Named one of in 2021 Business Magazine Saskatchewan and employees with learning opportunities Provided of: development in the areas » » » » » Recognized by Mediacorp Canada Inc. as one of: Canada by Mediacorp Recognized • • • Achievements in 2020/21 • Learning and Growth Performance Learning and Growth with the workforce and preparing both employee engagement of is an important driver growth and professional Learning Employee perception business. of SaskTel’s continuing transformation for the needed and confidence the skills, knowledge, financial positive SaskTel’s target. points above the 2019/20 approved percentage by 5.5 increased skill evolution results of than has been development for training and professional opportunities more made it possible to offer in 2020/21 performance new offering to identify and keep to the survey in order developed in response years. Action plans have been possible in recent employees. for opportunities training and growth and required Employee Engagement Performance Employee took The company above target. points by 11 percentage in 2020/21 considerably increased engagement score The employee factors. engagement survey all employee across improvements in which resulted employee feedback, to address several steps customers to keep by SaskTel taken measures and appreciated the organization of future about the optimistic are Employees 2020/21 throughout our employees made effort the extraordinary of is very proud SaskTel and safe. and employees connected to achieve this. SaskTel conducted the annual employee survey in the fourth quarter. We once again appreciate the high response rate and rate response the high again appreciate once We quarter. in the fourth survey employee the annual conducted SaskTel the survey. in their participation through offered our employees feedback 36 | MANAGEMENT’S DISCUSSION AND ANALYSIS intensity measure indicates howeffectively weare utilizingourcapitalinvestmentstogenerate revenue. Building andmaintainingcompetitive networkinfrastructure inourindustryrequires significantcapitalinvestment.The capital important services for thepeopleof Saskatchewan. Net income istheprimarymeasure of ourprofitability. Ournetincome allowsusto return cashtoourshareholder, funding on totalrevenue. broadband core services andrevenue from thebusinessmarket. In2020/21ourbalanced scorecard wasfocused exclusively The revenue generation measure provides aviewof ourtotal revenue, aswell astwokey components: revenue from our commonly usedfinancialratios, allowing comparison toother companies andindustrystandards. of howeffectively weare usingourequitytogenerate profits. Debt ratio isanindicator ofourcapitalstructure. Both are shareholder’s expectations togenerate afinancial return withinaprescribed capitalstructure. ROEprovides anindication Shareholder valueiscaptured bythereturn onequity(ROE)anddebtratio measures. Thesetrackhowweare meetingour progress, enhancingourlong-termfinancialsustainability. leveraging ourcapitalinvestments.Thesemeasures provide importantinsightintoourcurrent financialperformance andoverall SaskTel’s financialmeasures are focused oncreating shareholder value, generating revenue andearnings,effectively Balanced Scorecard Sustainability; PriorityInvestments;Private SectorEngagement;CustomerFocus;andTechnology andInnovation. Maximizing ourlong-termfinancialsustainabilityisalignedwiththeCrown Sector Strategic Priorities:Financial workforce worktogethertoensure wepositionSaskTel for long-termsuccessandfinancialsustainability. Our focus oncustomers,digitaltransformation improvements, effective investmentprioritization, andskilled business processes willcontributetoacompetitivecoststructure, freeing upresources for strategic growth areas. We are focused ondevelopingnewproducts andservicesthat willgenerate revenue intothefuture. Improving our operations. Regulatory changesandeconomicconditionspresent furtherchallenges. competition isincreasing. There isaneedtomake significantcapitalinvestmentstoenhancenetworks andtransform Customer needsare evolving.Legacyrevenue sources are indecline.Barrierstomarket entryare fallingand A numberof challengesare placingpressure onfinancial results inourindustry. Technologies are changingrapidly. WE WILLFINDCREATIVE SOLUTIONS TO POSITIONSASKTELFORFINANCIALSUCCESS, SECURING OURABILITY TO SERVE CUSTOMERS THROUGHOUT THEPROVINCE OFSASKATCHEWAN FORMANYYEARSTO COME. MAXIMIZE LONG-TERMMAXIMIZE FINANCIAL SUSTAINABILITY • • PATH TO SUCCESS Create acompetitiveoperating model Grow revenue andgross margin SASKTEL 2020/21 ANNUAL REPORT | 37 $50 8.6% 52.5% 24.9% $100.0 $1,298.6 2021/22 Target 11.0% 50.4% 23.4% $130.8 $1,317.7 2020/21 Result 2020/21 New measure for 2021/22 New measure 6.9% $81.8 51.6% 27.4% 2020/21 $1,256.8 Invested in capacity enhancements to support increased to support increased Invested in capacity enhancements work, school, and at-home remote demand for pandemic to the COVID-19 entertainment in response tools such digital transformation Implemented the use of process and robotic automation as analytic process business, resulting a fully connected to realize automation efficiencies savings and operational in costs • • Approved Target Approved

10.2% 47.8% 19.5% $119.8 $1,283.7 2019/20 Result 2019/20 ROE Debt ratio millions) ($ revenue Total ($ millions) Net income Capital intensity Savings ($ millions) Collaboration Crown maxTV subscriber base by continuing to provide superior to provide by continuing subscriber base maxTV and enhanced offerings, new service network quality, customer experience spend to over $85 million to fibre our broadband Increased to focus to our customers and continued expand service on one million connections Increased growth in our business customer segment growth Increased and offerings Centre our Data adoption of and increased managed IT services and broadband, our wireless, of Continued growth Shareholder Value Shareholder Revenue Generation Net Income Capital Investment Crown Collaboration Measure • Achievements in 2020/21 • • The Crown Collaboration target is set by CIC. The target of $50 million in savings for 2021/22 is for the Crown sector as a sector 2021/22 $50 million in savings for the Crown of is for target The is set by CIC. target Collaboration The Crown specifically. whole and not SaskTel Crown Collaboration Crown Capital Investment Performance capital spending within the capital prudent management of This is due to targeted. Capital investment came in lower than results. and favourable revenue program Net Income Performance offset by higher expense, partly and favourable finance growth revenue due to strong expectations exceeded Net income expense. expenses, and amortization depreciation expenses, operational Revenue is above target, reflecting strong customer growth in both wireline and wireless services. This customer growth, along This customer growth, services. and wireless in both wireline customer growth strong reflecting is above target, Revenue expected revenue. higher than delivered ARPU performance, with strong SaskTel’s ROE is above the target of 6.9%, largely due to exceeding our targeted net income for the year. for net income our targeted due to exceeding largely 6.9%, of ROE is above the target SaskTel’s Revenue Performance Shareholder Value Performance Value Shareholder 38 | MANAGEMENT’S DISCUSSION AND ANALYSIS Capital intensity Capital Net Income Total revenue Revenue Generation Debt ratio ROE Shareholder Value Employee perception of skillevolution Learning andGrowth Employee engagementscore Employee Engagement transformation initiatives from realized Benefits Transformation EBITDA margin Efficiency At least300Mbpsfixed broadband At least50Mbpsfixed broadband access to: SK homesandbusinesseswith Network Advancements Total broadband accesses Broadband Connections Customer experience–business Customer experience–consumer Customer Satisfaction Measures RATIONALE FOR THE SELECTION OF BALANCED SCORECARD PERFORMANCE MEASURES

contribute toahealthynetincome. are beingutilized togenerate revenue. Effective management of capitalintensitywill competitive. Capitalintensityisusedtomeasure howeffectively SaskTel’s capitalinvestments SaskTel operates inanindustrywhere significantcapitalinvestmentsare necessaryto remain into theProvince’s financialstatements. health. SaskTel’s netincomecontributestoSaskatchewan’s financialhealthasitisconsolidated Net incomeistheprimarymeasure of acompetitivecompany’sprofitability andfinancial revenue isacommonfinancialmeasure that canbecompared toothercompanies. Revenue generation isanimportantindicator of ourgrowth andfinancialsustainability. Total ratios, allowingcomparisontoothercompanies. within aprescribed capitalstructure (debtratio). ROEanddebtratio are widelyusedfinancial evaluate ourperformance generating thefinancial return (ROE)expected byourshareholder shareholder, theGovernmentandpeopleof Saskatchewan. We usethesetwomeasures to As aprovincial Crown corporation, SaskTel hasaresponsibility toprovide valuetoour our employees’confidence that theyhave theskillsnecessarytoperform successfully. requirement for empoweringahigh-performance workforce. We usethismeasure tomonitor learning andgrowth. Skillevolutionisakey componentof employeeenablementanda Our industryisexperiencingrapidtechnologychange,elevating theimportanceof employee experiences andimproved overallcorporate performance. organization andtheirrole withinit.Anengagedteamof employeesleadstobettercustomer employee engagementasanindicator of employees’connectionanddedication tothe Empowering ahigh-performance workforce isakey strategy for SaskTel. We measure new revenue and/orimprove ouroperational efficiency. measure captures incremental benefits resulting from transformation initiatives that generate Reinvigorating SaskTel through digitaltransformation isoneof ourkey strategic goals.This financial ratio that canbecompared toindustrystandards. implemented, thefinancialimpactsare reflected bythismeasure. Itisacommonlyused profitability. Digitaltransformation isa key strategy for SaskTel andasourinitiatives are The EBITDA margin isusedtomonitorourimprovements tooperating efficiencyand included inSaskatchewan’s Growth Plan:TheNextDecadeof Growth 2020–2030. aligned withtheexpansionof ourfibre opticnetworkinfrastructure intheprovince, whichis Access toat least300Mbpsisreflective of customers’increasing speed requirements. Itis of 2021. A downloadspeedof 50MbpsistheCRTC target speedfor 90%of Canadiansbytheend committed todeliveringhigherbroadband speedstocustomersthroughout Saskatchewan. Leading themarket inbroadband servicesisoneof ourkey strategic goals. SaskTel is as manycustomerspossible. SaskTel aimstobethebestbroadband provider inSaskatchewan, providing reliable internetto strategic goal.Broadband isourcore serviceandcriticaltosustainablelong-termgrowth. Broadband isSaskTel’s NorthStar andleadingthemarket inbroadband servicesisakey of opportunity. allows SaskTel toevaluate thelevelof customerexperiencebeingprovided andidentifyareas Delivering highlevelsof satisfaction toallourcustomersiscriticalsuccess.Thismeasure SaskTel. Ourindustryishighlycompetitiveandcustomershave more choicesthanever. Delivering anexceptional customerexperienceat alltouchpointsisakey strategic goalfor Purpose

SASKTEL 2020/21 ANNUAL REPORT | 39

SASKTEL 2 018/19 AN NUAL R EPORT | 37

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S I S Y L A N A D N A N O I USS C S I D S ’ T N E M E G A N A M | 6 3 40 | MANAGEMENT’S DISCUSSION AND ANALYSIS to ensure ournetworkscontinue tomeettheirneeds. carriers rely onSaskTel networksandassuch,itisimportant beneficial business relationships. Forexample,othertelecom and future expectations are addressed tomaintainmutually SaskTel workstoensure contractual obligations are met the relationship orcontract. always ariskthat factorswillemerge that maychangeorend operate thebusiness.Whenrelying onthird partiesthere is to provide andpurchase products andservices needed to SaskTel hasagreements withothercompanies intheindustry to ensure itspositionisknown. SaskTel activelyparticipates inCRTC andotherproceedings complexity toSaskTel’s business. resulting inincreased costs, lowerprofitability, andadded competitor-friendly policies,andlowerprices for consumers, and geography, regulators focus onincreasing competition, business. Treating allincumbentsthesameregardless of size create challengesfor SaskTel anditsabilitytoconduct pronouncements andissueregulatory interventions that The federal governmentandtheCRTC continually make solutions, andpursuingnewmarkets. new services, establishingpartnershipstooffer non-core network (fixed andmobile),evolvingitsproducts, launching SaskTel isfocused onevolvingandexpandingitsbroadband broadband speeds. top, cloud-basedservices) andtheneedfor ever-increasing competition, low-cost alternative technologies(over-the- is facingdeclininglegacyservices, aggressive wireless challenging toincrease revenue andprofit margins. SaskTel industry consolidation, anddisruptivetechnologymakes it Competitor intensity, includingnon-traditional competitors, Ability tomaintainkey alliances andpartnerships negatively impactprofitability Federal regulation andpoliciesincrease complexity and and profit Having competitive services that enablerevenue growth ALLIANCES ANDPARTNERS REVENUE GROWTH REGULATORY

and compliance andlegalrisks. execute business functionsrelated tooperational, financial, The following core businessrisksfocus ontheabilityto including self-serveandself-enablementenhancements. priorities andaccelerate thepursuitof newopportunities, continues toidentifywhere thebusinessneedstoshiftits supplies andkeep customersandemployeessafe. SaskTel protocols are inplace andactionsare beingtaken tosecure is plannedandbuilttobehighlyavailable,cybersecurity customers. Inaddition,SaskTel’s networkinfrastructure network, helpmitigate theriskof notbeingabletoserve solution, aneChannelpresence, andanextensivedealer Business continuity plans,includingawork-from-home ability toservecustomers. unknown andcould result inrevenue declinesandreduced created economic uncertainty. Long-term impactsare still The COVID-19 pandemichasdisruptedbusinessesand facing SaskTel are listedonthefollowing page. service, andsafety andenvironment. Thekey operational risks security, infrastructure, supplychain,resources, customer Operational risksconsider areas such as businessinterruption, Operational Risks CORE BUSINESS RISKS CORE BUSINESS ability toservecustomers COVID-19 outbreak impactscustomerspendingandSaskTel’s COVID-19 PANDEMIC SASKTEL 2020/21 ANNUAL REPORT | 41

LITIGATION A lawsuit with significant consequences A lawsuit with significant Every business is subject to lawsuits due to various activities Every people of Employees interact with thousands undertaken. and visible. Exposures numerous assets are daily and SaskTel’s party and third statutory, professional, include contractual, results impact SaskTel’s negatively which could liability, and reputation. counsel, and due diligenceContracts, tariffs, in-house the risk. to mitigating contribute Financial Risks Financial foreign rate, interest include this category in reviewed Areas pension plan misstatement, financial credit, exchange, assurance, revenue public reporting, investments, solvency, financial business core No significant cash flow. fraud, and Consolidated time. The Notes to this at reported risks are and 29 – Financial instruments Note Financial Statements, exposures , highlights some financial risk management related and mitigations. Legal Risks Compliance and need to on SaskTel’s focus in this category reviewed Areas including contractual, with laws and regulations, comply environmental, statutory, party, third professional, regulatory, litigation, intellectual property, governance, and privacy. SaskTel’s key risk is described below. key SaskTel’s and privacy.

CYBERSECURITY PHYSICAL INFRASTRUCTURE NETWORK AND SYSTEMS RISKS AND SYSTEMS NETWORK or disrupts service A security threat or data breach compromises information compromises breach or data A security threat A significant network or system outage disrupts service network or system outage A significant Significant loss of access or damage to critical buildings and or damage to critical buildings of access Significant loss disrupts service infrastructure SaskTel regularly assesses its environment and continues assesses its environment regularly SaskTel to protect and measures to implement extensive controls and to information, employee, and corporate customer, management disruption. Incident against service mitigate should an also in place plans are and response processes event occur. SaskTel, like any company, is subject to cyberattacks or data is subject to cyberattacks any company, like SaskTel, with the movement will only increase This threat breaches. products, software-based automation, digitalization, toward devices. connected and massive numbers of Preventative measures exist to reduce the chance of a of the chance exist to reduce measures Preventative systems,control significant event or loss, including automated and maintenance, detection systems, security measures, fire plans and business continuity upgrades. If an event occurs, is also Insurance into effect. come protocols disaster recovery significant financial loss. to offset in place Any natural weather event, fire, or vandalism can damage event, fire, weather Any natural Aging disrupt service. physical assets, which could to service. also poses a threat in critical buildings infrastructure Networks and systems are designed and built to be highly are Networks and systems of replacement and maintenance, updates available. Regular key systems, alarming of end-of-life legacy technology and network and system hardware, of redundancy components, the occurrence, reduce help processes and change control outages. Should an outage occur, and severity of duration, to in place plans are and disaster recovery business continuity impacts. help minimize SaskTel’s networks and systems are core to delivering core systems are networks and SaskTel’s an extended for unavailable them become of if any services; impacts. cause significant customer period, it could 42 | MANAGEMENT’S DISCUSSION AND ANALYSIS Other services International software andconsulting services Other comprehensive income (loss) Net income IT solutionsservices Marketing services Net finance expense Results from operating activities Customer premise equipment Wireline communication services Fixed broadband anddata services Security monitoringservices maxTV service Wireless networkservices andequipment ($ millions) For theyearendedMarch 31, Consolidated Revenue 1 nmf Total comprehensive income Other income Revenue ($ millions) For theyearendedMarch 31, Consolidated NetIncome RESULTSOPERATING Expenses FINANCIAL SUMMARY Saskatchewan taxes Impairment loss Amortization Depreciation -right-of-use assets Depreciation -property, plantandequipment Internal labourcapitalized Salaries, wages,andbenefits Goods andservices purchased –nomeaningfulfigure $ $ $ $ 1,317.7 1,167.6 1,317.7 1,324.0 (21.9) 130.8 156.4 196.2 274.6 183.0 355.7 103.6 610.4 124.3 584.9 (6.5) 2021 2021 25.2 12.4 25.2 25.6 27.9 31.8 26.1 34.7 9.3 6.2 6.3 –

$ $ $ $ 1,283.7 1,132.1 1,283.7 1,287.0 119.8 154.9 211.0 273.0 173.0 359.0 104.4 576.1 124.6 543.4 (21.2) 2020 2020 20.9 11.6 27.8 35.1 10.7 27.2 33.4 18.3 32.4 4.8 8.2 6.6 3.3

$ $ $ $ Change Change (11.3) (10.7) (14.8) 34.0 11.0 35.5 10.0 (2.6) 34.3 34.0 (9.5) 41.5 37.0 (1.6) (0.4) (0.8) (3.3) (0.7) (0.3) 4.3 1.1 0.8 1.5 0.7 7.8 2.3 1.6 3.0 (100.0) (27.1) nmf 20.6 13.4 42.6 (9.4) (7.0) (0.8) 90.9 (4.8) (6.1) (0.9) (0.2) 2.6 6.9 7.1 0.6 6.0 9.2 1.0 3.1 2.6 5.8 2.6 7.6 3.3 2.9 % % 1 SASKTEL 2020/21 ANNUAL REPORT | 43 $130.8 2020/21 50.4% Debt Ratio Increased Net Debt Increased ($ millions) $119.8 2019/20 $90 $110 $130 Net Income 28.2% Increased Increased Revenue Operating Increased Expenses Operating EBITDA Margin EBITDA $130.8 $9.5 7 . $0 11.0% Increased Increased Net Income Return on Equity $2.7 $4.0 $41.5 Net Income $130.8M Decreasing Decreasing Financing Costs Decreased Decreased Impairment Increased Depreciation Increased Expenses Operating Increased Increased Revenue Operating $3.0 $34.0 ($ millions) $119.8 Decreased Wireline Wireline Decreased Revenue Legacy Increased Increased Revenue Wireless $1,317.7M Operating Revenue Operating NET INCOME $75 $125 Net Income SaskTel provides strong returns to the Province of Saskatchewan by introducing competitive services and providing revenue revenue and providing services competitive introducing by Saskatchewan of Province to the returns strong provides SaskTel optimizingcosts and managing its and by and data, broadband and fixed wireless, segments, including business in key growth income Net in 2019/20. the same period from million $11.0 of increase million, an $130.8 was Net income services. its legacy depreciation, million, decreased $4.0 net salaries and wages of million, reduced $34.0 of growth revenue through increased million. of $9.5 expense and lower net finance million, $2.7 and impairment loss of amortization, $150 $100 44 | MANAGEMENT’S DISCUSSION AND ANALYSIS monitoring services toits customers. portfolio byoffering innovative ICTsolutions, includingmanagedcloud, TierIIIData Centre services and remote network broadband, andexpansionsof DSLinternettorural communities. SaskTel continues toexpand itsITsolutionsservices increasing internetbandwidththrough improvements toitsnetworkinfrastructure, includingFTTP, fixed wireless and mobile growth waspartiallyoffset bytheongoingdecline of wireline communication revenue. SaskTel offers its customers and data (20.8%), wireline communication (14.9%), andmaxTV service (7.9%). Wireless andbroadband revenue continued SaskTel’s revenue iscomposed primarilyof wireless networkservices and equipmentrevenue (46.3%), fixed broadband Revenue expansion inourITsolutionsportfolio. fibre network.The remaining growth inwireline wasa result of increased equipmentsalestoenterprisecustomersandstrong data services revenue percustomer, ascustomersoptfor higherinternetspeedsandmore services delivered overSaskTel’s reflected agrowing subscriberbasewhere increased revenue inwireline growth services isa result of higherbroadband and in legacywireline services andcustomerrelief programs related totheCOVID-19 pandemic.Growth inwireless revenue wireless adoption andincreased revenue from wireline growth services. Thisgrowth waspartiallyoffset byongoingdeclines Revenue for thefiscalyearendingMarch 31,2021was$1,317.7 million,anincrease of $34.0 million, reflecting continued $1,320 $1,260 $1,290 REVENUE $1,283.7

2019/20 ($ millions) Broadband Internet CUSTOMER CONNECTIONS +40,386 vs2019/20 +5.1% $34.3 $1.6 Fixed Broadband and Data $14.8 Wireline Communication $0.8 maxTV Service

Marketing, Security, and Software $0.8 +2,738 vs2019/20 +2.5%

maxTV Service and Consulting Services $7.8 Customer Premise Equipment $0.8 IT Solutions $4.3 Other Services $1,317.7 2020/21 +15,031 vs2019/20 +2.4% 2020/21 RevenueProfile Communication 14.9% Wireline Wireless and Data 20.8% Fixed Broadband maxTV Service 7.9% and ConsultingServices 5.3% Marketing, Security, andSoftware Customer Premise Equipment2.0% 2020/21 RevenueProfile +14.0% +18,382 vs2019/20 Fibre $1,317.7M and Equipment46.3% (18,785) vs2019/20 (6.1%) Wireline Voice Other Services 1.9% IT Solutions0.9% Wireless Network SASKTEL 2020/21 ANNUAL REPORT | 45

TV SERVICE $1.6 million (0.6%). This was driven by increased activations This was driven by increased million (0.6%). $1.6 and offerings, richer retail in our expanded FTTP footprint, our High Speed Internet customer demand for increased reaching with network traffic during COVID-19, service and work, education, remote historic levels due to increased access service fibre infiNET SaskTel’s entertainment. at-home the demand for and has increased 14.0% increased growth ARPU growth. to overall increased higher speeds, contributing SERVICES WIRELINE COMMUNICATION million declined by $14.8 services communication Wireline This decline is due to a reduction 2019/20. from (7.0%) driven by ongoing technologicalin network accesses, partly and internet-based services, substitution to wireless as customers services conferencing of by higher usage offset environment. a new work-from-home embraced max million (0.8%). by $0.8 decreased revenue service maxTV activity promotional is driven by increased This decrease and an overall shift in the competition due to aggressive This has been partiallyindustry to over-the-top video services. new streaming SaskTel’s Stream, of maxTV by growth offset live TV or on demand allows customers to watch that service in Canada. anywhere content WIRELESS NETWORK SERVICE AND EQUIPMENT AND SERVICE NETWORK WIRELESS in 2020/21, (6.0%) million $34.3 increased revenue Wireless and subscriber base a our wireless in growth reflecting sales mix. This handsets in the premium volume of greater impacts, pandemic COVID-19 by offset was partially growth waiving and temporarily revenue lower roaming including overage charges. data and our leading on customer-first initiatives Our focus wireless in decreased resulted coverage network quality and year-over-year net subscriber in churn and an increase or 2.4%. 15,031 additions of SERVICES DATA AND FIXED BROADBAND by increased revenue services and data broadband Fixed ($ millions) $610.4 $196.2 $274.6 2020/21 2020/21 $103.6 2020/21 2020/21 ($ millions) ($ millions) ($ millions) $576.1 $211.0 $273.0 2019/20 2019/20 $104.4 2019/20 2019/20 $0 $0 $0 $40 $80 $100 $300 $200 $100 $500 $300 $200 $120 $400 $600 Wireless Network and Equipment Revenue and Equipment Network Wireless Wireline Communication Revenue Communication Wireline Fixed Broadband and Data Revenue and Data Broadband Fixed maxTV service, Revenue maxTV maxTV Service Revenue maxTV Wireline Communication Revenue Communication Wireline Fixed Broadband and Data Revenue and Data Broadband Fixed Wireless Network and Equipment Revenue and Equipment Network Wireless 46 | MANAGEMENT’S DISCUSSION AND ANALYSIS IT SolutionsRevenue Marketing Revenue Customer Premise EquipmentRevenue Security MonitoringRevenue IT SolutionsRevenue Customer Premise EquipmentRevenue Marketing Revenue Security MonitoringRevenue $20 $20 $30 $20 $30 $10 $10 $40 $10 $20 $30 $10 $0 $0 $0 $0 2019/20 2019/20 2019/20 2019/20 $18.3 $11.6 $27.8 $32.4 ($ millions) ($ millions) ($ millions) ($ millions) 2020/21 2020/21 2020/21 2020/21 $12.4 $26.1 $25.2 $34.7 customers across Saskatchewan. and disasterrecovery, andcolocation hostingtobusiness services suchascloudcomputing, cloudservice, backup adoption of ourData Centre offerings andmanagedIT growth inourbusinesscustomersegmentandincreased IT solutionsservices revenue increased 6.9%, reflecting IT SOLUTIONS SERVICES Home billboard media. the company’s digitalmarketing services andDigitalOut-of- declines havebeenpartiallyoffset by continued growth of challenges brought onbytheCOVID-19 pandemic.These to experience significantfinancial pressures alongwiththe million (9.4%) asthetraditionaldirectory industrycontinued 2020/21, from $27.8 millionin2019/20, adecrease of $2.6 Marketing services revenue decreased to$25.2 millionin MARKETING SERVICES security anddemandfor remote activity. the increased demandtoaugmentnetworksfor increased communications systemstoenterprisecustomers,drivenby million, reflecting increased sales of SaskTel’s business-grade Customer premise equipmentrevenue increased by $7.8 CUSTOMER PREMISEEQUIPMENT organically andthrough customeraccount acquisitions. continues toactivelyseekoutbusinessgrowth both technology for residential andbusinessconsumers. SaskTel provides interactive security, safety, cameras,andautomation added features suchasSaskTel’s smartHOMEsecuritythat monitoring revenue ascustomersselectedhighervalue- to $34.7 millionin2020/21,duetoincreased monthly Security monitoringservices revenue increased $2.3million MONITORING SERVICES SECURITY SASKTEL 2020/21 ANNUAL REPORT | 47

50.1%

Purchased Goods and Services Saskatchewan Taxes 2.4% Taxes Saskatchewan $1,167.6M 2020/21 Expense Profile

Amortization 2.7% Amortization 16.2% Depreciation Net Salaries, Wages, and Benefits 28.6% 2020/21 Expense Profile INTERNATIONAL SOFTWARE AND CONSULTING SERVICES CONSULTING AND SOFTWARE INTERNATIONAL revenue services and consulting software International $1.1 of an increase million in 2020/21, to $9.3 increased due to higher implementation, primarily 2019/20, million from the new for contracts from and support fees maintenance, services. management network suite of SERVICES OTHER 2019/20. million from $4.3 increased revenue Other services growth services saw professional In 2020/21, this portfolio equipment sales, along business-grade to increased related work. customer project with increased 2020/21

$1,167.6 Saskatchewan Taxes Saskatchewan

($ millions)

$0.7 Impairment Loss Impairment $9.3 $25.2

$10.7

2020/21 2020/21 Amortization

$1.6 Depreciation

$9.6 Net Salaries, Wages, and Benefits and Wages, Salaries, Net $4.0

$8.2 $20.9 Purchased Services and Goods 2019/20 2019/20 ($ millions)

$41.5 2019/20 ($ millions) $1,132.1 $5 $0 $0 $10 $10 $30 $20 Other Revenue International Software and Consulting Revenue Consulting and Software International EXPENSES $1,110 $1,145 Expenses $1,075 $1,180 costs associated with a growing subscriber base. Depreciation and amortization (excluding the impairment loss in 2019/20) (excluding and amortization subscriber base. Depreciation with a growing associated costs Expenses increased $35.5 million from the previous year to $1,167.6 million. This increase reflected increased customer increased reflected million. This increase year to $1,167.6 the previous million from $35.5 Expenses increased increased due to growth in capital assets as we invested in capacity enhancements to support increased demand, as well as to support increased in capital assets as we invested in capacity enhancements due to growth increased offset by management’s partly were These increases investments in online fulfillment, and customer self-serve platforms. spending. discretionary on controlled focus Other Revenue International Software and Consulting Revenue and Consulting Software International 48 | MANAGEMENT’S DISCUSSION AND ANALYSIS Saskatchewan Taxes Depreciation, Amortization, andImpairment Net Salaries,Wages, andBenefits Goods andServicesPurchased Saskatchewan Taxes Net Wages SalariesandBenefits Depreciation, Amortization andImpairment Goods andservicespurchased $400 $500 $600 $300 $340 $200 $320 $250 $20 $30 $150 $10 $0 Depreciation andamortization 2019/20 2019/20 2019/20 2019/20 $27.2 $337.8 $213.0 $543.4 $10.7 ($ millions) ($ millions) ($ millions) Impairment loss 2020/21 2020/21 2020/21 2020/21 $27.9 $333.8 $221.0 $584.9 ($ millions) million from 2019/20. Taxes were $27.9 million in2020/21,anincrease of $0.7 in Saskatchewan. cities, towns,villages,ruralmunicipalities, andnorthernsites Province of Saskatchewan and grants-in-lieuof taxes paidto Taxes represent thepaymentof corporate capitaltaxtothe SASKATCHEWAN TAXES in theestimated usefullivesof certain networkassets. experience. Theremainder of theincrease isduetoachange serve platforms hadbeendeployedtoimprove thecustomer demand. Investmentsinonlinefulfillmentandcustomerself- speeds across theprovince tosupportincreased customer footprint andtoincrease wireless capacity, coverage, and including large expenditures toexpandSaskTel’s fibre spending onourfixed andwireless broadband networks, this loss,depreciation andamortization increased dueto an impairmentlossof $10.7 millionin2019/20. Excluding loss decreased to$221.0 million,duetorecognition of Depreciation andamortization expense,andimpairment DEPRECIATION, AMORTIZATION, ANDIMPAIRMENT recognized in2019/20. and decreased labourcontract settlementcosts, whichwere down $4.0 millionpartly duetoincreased capitalized labour Net salaries,wages,andbenefitsdecreased to$333.8 million, (NET OFINTERNALLY CAPITALIZED LABOUR) WAGES,NET SALARIES, ANDBENEFITS travel restrictions. expenses andreduced discretionary spendingasaresult of sales. Thesefactorswere partlyoffset bylower roaming costs; andincreased volumeof business-gradeequipment sales andhigherhandsetcosts; increased customercontent of ourgrowing subscriberbase,includingincreased device for 2020/21,drivenby:highercost of goodssoldinsupport Goods andservices purchased increased to$584.9 million GOODS ANDSERVICESPURCHASED

SASKTEL 2020/21 ANNUAL REPORT | 49 $246.9M $45.7M Investment in Broadband Year over year change Year Cash Provided by Cash Provided Financing Activities Reduced Net Borrowing Reduced Dividends Paid Increased Redemptions Sinking Fund Increased 50.4% Debt Ratio NET FINANCE EXPENSE FINANCE NET year-over- million $9.5 expense decreased Net finance on the value gains realized was due to: market This year. lower to debt maturities; funds related sinking of redemption This was interest. capitalized and increased costs; financing from increased income financing reduced by partially offset financing along device wireless percent zero adoption of Payment Utility Deferral the Crown of with the introduction charges. interest which waived customer Program, (LOSS) INCOME COMPREHENSIVE OTHER million is $11.3 million $6.5 of loss Other comprehensive year. in the previous recognized lower than the income net unrealized from resulted loss The other comprehensive in the a decrease of sinking fund losses, as well as the impact on the defined benefit pension liability and the rate discount by increased limit, partially offset the asset ceiling impact of are on the pension plan assets. The assumptions returns the consolidatedEmployee Benefits of 25 – disclosed in Note financial statements. $46.7M Cash Used in Year over year change Year Investing Activities Increased Spending On Property, Spending On Property, Increased Plant And Equipment Spending On Decreased Intangible Assets ($6.5) $25.6 2020/21 2020/21 90.0% ($ millions) Dividend Payout Policy ($ millions) $4.8 $35.1 2019/20 2019/20 Activities ($4.6M) Year over year change Year Cash from Operating Operating Cash from $117.7M Increased Working Capital Working Increased Requirements $5 $0 $0 $10 –$5 $10 $30 $20 $40 Dividends Declared –$10 Other Comprehensive Income Other Comprehensive NetFinanceExpense LIQUIDITY AND CAPITAL RESOURCES LIQUIDITY CAPITAL AND OTHER COMPREHENSIVE INCOME (LOSS) INCOME COMPREHENSIVE OTHER Other Comprehensive Income (Loss) Other Comprehensive Net Finance Expense Expense Net Finance 50 | MANAGEMENT’S DISCUSSION AND ANALYSIS Cash Provided by(Usedin)FinancingActivities Cash UsedinInvestingActivities Cash Provided byOperating Activities Cash usedinfinanceactivities Cash UsedinInvestingActivities Cash Provided byOperating Activities -$30 -$15 $200 $300 $30 $200 $300 $250 $350 $250 $350 $15 $0 2019/20 $(24.5) 2019/20 2019/20 $256.0 $292.6 ($ millions) ($ millions) 2020/21 2020/21 2020/21 $21.2 $302.7 $288.0 ($ millions) ratio withinindustrystandards. total of $453.9 millionindividendswhilemaintainingadebt previous year. Duringthelastfivefiscalyears,SaskTel a paid ending March 31,2021,anincrease of $3.3 millionfrom the dividends of $110.5 milliontoCICduringthefiscalyear partially offset bysinkingfund redemptions. SaskTel paid reduced netborrowings andincreased dividendpayments, of $24.5 millionfor theprevious year. Thisisprimarilydueto the yearendedMarch 31,2021,compared toauseof cash Cash provided byfinancingactivitieswas$21.2million for CASH PROVIDED BY (USEDIN)FINANCINGACTIVITIES included inCapitalExpenditures onpage52. year. Additionaldetailsof the2021capitalprogram are was received in2021,down$2.1millionfrom theprevious million to$21.1million.Governmentfundingof $0.5 million previous year. Spendingonintangibleassetsdecreased $14.0 equipment was$282.2million,up$58.6 millionfrom the the previous year. Total cashinvestedinproperty, plantand fiscal yearendedMarch 31,2021,up$46.7 millionfrom Cash usedininvestingactivitieswas$302.7 millionfor the CASH USEDININVESTINGACTIVITIES increased working capitalrequirements. March 31,2021was $288.0 million,down$4.6 milliondueto Cash provided by operating activitiesfor thefiscalyearended CASH PROVIDED BY OPERATING ACTIVITIES SASKTEL 2020/21 ANNUAL REPORT | 51 % 0.5 5.8 (1.2) 37.8 11.6 16.4

2.6% (57.4) 6.5 6.5 2.6 31.0 125.5 (12.9) 132.0 (113.9) Change $ $

17.2 2020 198.5 188.9 47.8% 2,264.7 1,082.7 1,109.5 1,182.0 March 31, March $ $

23.7 84.6 2021 219.9 50.4% 2,396.7 1,188.5 1,096.6 1,208.2 March 31, March $ $ Access to Capital plant in 2021/22 cash The primary uses of will be property, growth and equipment and intangible asset expenditures, payments. and dividend initiatives, The 2021/22 capital funding of that plan assumes strategic dividend payments and initiatives, growth expenditures, Additional funding will be operations. will be initially from short-term notes and long-term debt through accessed Saskatchewan. of the Province issued through up to $500 million in combined of facilities consist Credit from institutions and advances with financial credit lines of 31, 2021, SaskTel At March Saskatchewan. of the Province had accessed $219.9 million of these facilities. million of $219.9 had accessed has authority to issue up to SaskTel facility, Besides this credit and long-term debt. Total short-term billion in combined $1.8 31, 2021 and March million at outstanding debt was $1,316.5 31, 2020. March million at $1,298.4

Aaa

Not rated Moody’s DBRS AA (low) R-1 (mid) S&P A-1+ AA (stable) 1 1 2 Cash other comprehensive income (loss) and retained earnings at the end of the period. the end of earnings at (loss) and retained income other comprehensive Equity for the purposes of calculating the debt ratio is defined as equity advances, accumulated accumulated is defined as equity advances, the debt ratio calculating the purposes of Equity for CAPITAL MANAGEMENT CAPITAL Long-term debt Short-term liabilities Less: Sinking funds Less: Net debt Debt ratio Equity Long-term debt Long-term 2.  Short-term debt Capitalization ($ millions) 1. Long-term and short-term debt exclude lease liabilities. and short-term debt exclude 1. Long-term The interest rate on SaskTel’s debt depends on the credit debt depends on the credit on SaskTel’s rate The interest which issues debt on Saskatchewan, of the Province of rating of ratings table lists the credit The following behalf. SaskTel’s 31, 2021. March at the Province and 1.68% at March 31, 2020. March at and 1.68% Debt Instruments Debt short-term and long- of consists debt portfolio SaskTel’s the by, and guaranteed issued through, term debt. Both are Short-term debt is issued Saskatchewan. of Province fixed-rate on SaskTel’s rate The weighted average interest 31, 2021, and 4.47% March at 3.40% debt was approximately the of rate weighted average interest The 31, 2020. March at 31, 2021 was 0.13% March short-term debt outstanding at SaskTel’s debt ratio increased to 50.4% at March 31, 2021, March at to 50.4% increased debt ratio SaskTel’s net The overall level of 31, 2020. March at 47.8% up from million, primarily to fund continued $125.5 debt increased plant and equipment as well as investment in property, recording million after $6.5 intangible assets. Equity increased loss of million, other comprehensive $130.8 of net income million. $117.7 and declaring dividends of million $6.5 Long-term debt issue date. on the in effect rates market at rates. interest fixed is at 52 | MANAGEMENT’S DISCUSSION AND ANALYSIS Capital Expenditures 2020/21 over 700of whichare located inruralpartsof theprovince. SaskTel’s wireless network includesnearly1,000 cell towers, based services ontheirsmartphone devices withoutdelay. watch andlistentomultimediacontent, andaccess cloud- provide thespeedsandcapabilitiestotravelinternet, improved coverage that enhance customerexperience and ongoing investmentsresult inincreased data speedsand the largest Wi-FinetworkavailableinSaskatchewan. These spread across 50+communities inthe province, makingit customers withunlimitedfree data inover2,500 locations LTE wireless service. SaskTel selectWI-FI provides SaskTel the majorroadways andhighwaysbeingcovered with Canada, withover99%of thepopulation and98%of Saskatchewan hasthebestwireless coverage inWestern LTE million) Wi-Fi and ($91.7 accounting reporting systems, andbillingsystems. on intangibleassetssuchascustomerself-servesystems, remaining $24.3 million(2019/20–$34.5 million)wasspent Demand, andothernetworkimprovements, whilethe FTTP, wireless networks(LTE andWi-Fi),Access Network million) wasspentonproperty, plantandequipment,including Of the$308.2 million,$283.9 million(2019/20–$228.4 capabilities inthefuture. opportunities toprovide additionalenhancements and to improve ourcustomers’ experience todayandcreate expenditures during 2020/21(2019/20–$262.9 million) SaskTel investedanadditional$308.2 millionincapital and speedof ournetworks. enhancements toimprove thecoverage, capacity, reliability, throughout Saskatchewan bycontinuing toinvestin endeavour todeliverfastandreliable broadband service experience beginswithourNorthStar—broadband. We SaskTel’s missiontoprovide anexceptional customer Wireless 29.7% IT Infrastructure 11.8% Equipment 3.9% Buildings and Other 4.2% CAPITAL EXPENDITURES 2020/21 CapitalExpenditures $308.2M Wireline –Other10.3% Wireline –Copper2.6% Wireline – Fibre 37.5% Fibre tothePremises (ConsumerandBusiness) bandwidth services tonorthernresidents andbusinesses. of northern fibre facilities, whichwillbringhighspeed and mobilevoice, video,anddata services; andexpansion transport infrastructure toaccommodate ruralgrowth of fixed wireline andwireless networks;improvements toourrural improvements include:capacityimprovements toour and continue tosupportthegrowing economy. These meet theneedsof Saskatchewan residents andbusinesses capacity andmodernize key components sothat itmay SaskTel hasinvestedinotherareas of itsnetworktoincrease Other Network Improvements million) ($46.3 to offer. customers mayaccess alltheservices that SaskTel has and increases capacityinexistingneighbourhoodssothat program toaddinfrastructure tonewneighbourhoods The Access NetworkDemandprogram isanongoing Access Network ($23.0 Demand million) with HDandrecording capabilities. allows subscriberstoconnect uptosevenset-topboxes–all delivering atrulyimmersiveentertainmentexperience that maxTV service getsevenbetterwithinfiNET service, much content theywantfasterthaneverbefore. Inaddition, allowing subscriberstosurf, stream, andshare however infiNET service willdeliverneargigabit-per-second speeds, 26 largest centres. Powered bySaskTel’s fibre opticnetwork, network, righttoourcustomers’doorsinSaskatchewan’s broadband facilitiesandbringinfiNET, SaskTel’s fibre optic The FTTPprogram isanongoingprogram toupgrade million) ($85.9 to Premises the Fibre Fibre tothePremises PREMISES (thousands) 200 250 300 350 400 100 150 50 0 25.3% 2014 Passed 2015/16 34.5% (Consumer andBusiness) 2016/17 45.2% 2017/18 47.5% 2018/19 45.9% Connected 2019/20 47.7%

2020/21 49.0% SASKTEL 2020/21 ANNUAL REPORT | 53

and amendments IAS to 8, (IFRS 3) with a date of initial of (IFRS 3) with a date Business Combinations NEW STANDARDS AND NEW STANDARDS YET NOT ADOPTED INTERPRETATIONS and amendments to interpretations, Certain new standards, are by the IASB or IFRIC that issued were existing standards periods beginning after annual accounting for mandatory does not The Corporation periods. April 1, 2021, or later on its of these pronouncements expect a significant impact and financial position. results Adoption amendments of IAS to 1, Presentation of Financial Statements Accounting Policies, Changes in Accounting Estimates and Errors IAS 1, amendments to has adopted the The Corporation amendments (IAS 1) and Statements Financial of Presentation Changes in Accounting Policies, Accounting to IAS 8, of application initial of (IAS 8) with a date and Errors Estimates of with the transitional provisions accordance In April 1, 2020. has applied the amendments the Corporation IAS 1 and IAS 8, the The amendments refine to IAS 1 and IAS 8 prospectively. IAS 1 and align the definitions used in of material definition was There and other publications. IFRS Standards across of the adoption upon statements no impact to the financial standards. amendments to the Adoption amendments of IFRS 3 Business to Combinations adopted the amendments to IFRS has The Corporation 3 the with In accordance April 1, 2020. of application has applied the Corporation 3, IFRS of transitional provisions to IFRS 3 may The amendments IFRS 3 prospectively. for as accounted acquisitions are whether future affect or asset acquisitions, along with thebusiness combinations between the net price the purchase of allocation resulting of theadoption and goodwill. The identifiable assets acquired impact onamendments to IFRS 3 has not had a significant the financial statements. Adoption amendments of the to Conceptual Framework Reporting Financial for has adopted the amendments to theThe Corporation (the Financial Reporting for Framework Conceptual of initial application of with a date Framework) Conceptual provisions with the transitional In accordance April 1, 2020. has applied the Corporation Framework, the Conceptual of The amendments prospectively. Framework the Conceptual a Framework, to the Conceptual revisions provide reporting. There financial for concepts set of comprehensive of upon adoption was no impact to the financial statements Framework. the amendments to the Conceptual The International Accounting Standards Board (IASB) and the Board Standards Accounting The International Committee Interpretations Reporting Financial International applied were amendments that (IFRIC) issued the following by the Corporation. APPLICATION OF NEW INTERNATIONAL OF NEW INTERNATIONAL APPLICATION STANDARDS REPORTING FINANCIAL Significant accounting policies, estimates, and judgments and policies, estimates, Significant accounting See financial statements. in the consolidated contained are financial to the consolidated presentation 2 – Basis of Note judgments and policies, estimates, accounting for statements a whole, as well as as statements applicable to the financial about the accounting information for more specific notes for uses SaskTel and judgments that principles, estimates, its financial statements. in preparing each applicable account have a significant these policies could of Certain components including: the amount and timingresults, impact on financial of with customers; determination contracts from revenue of or and depreciation capitalization to obtain contracts; costs plant and equipment and intangible property, of amortization assets; determination right-of-use of assets; determination assets and cash-generating of lease liabilities; impairment of estimationpension obligations; to units; assumptions related and environmental decommissioning liabilities for the future of financial instruments. of and the fair value remediation; SaskTel’s discussion and analysis of our financial position and our financial analysis of discussion and SaskTel’s financial on the consolidated based are operations of results with in accordance which have been prepared statements, (IFRS). Standards Financial Reporting International SIGNIFICANT ACCOUNTING POLICIES, SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES, 54 | MANAGEMENT’S DISCUSSION AND ANALYSIS FIVE-YEAR RECORD SERVICE OF Long-term debt †Results excluding the adoptionof IFRS15 *Results excluding the adoptionof IFRS16 ($ millions) For theyearendedMarch 31, Consolidated Statement of CashFlows Property, plantandequipment ($ millions) As at March 31, Consolidated Statement of Financial Position ($ millions) For theyearendedMarch 31 Consolidated Statement of IncomeandOtherComprehensive Income(Loss) Cash provided byoperating activities Other long-termliabilities Current liabilities Other long-termassets Current assets Province of Saskequity Cash usedininvestingactivities Cash, beginningof year Total assets Revenue Total liabilitiesandProvince of Saskequity Cash provided by(usedin)financingactivities Other income Increase (decrease) incashfrom continuing ops Cash, endof year Expenses Results from operating activities Net finance expense Net income Other comprehensive income (loss) Total comprehensive income Goods andservices purchased Salaries, wages,andbenefits Internal labourcapitalized and equipment Depreciation -property, plant Depreciation -right-of-use assets Amortization Impairment loss Saskatchewan taxes

$ $ $ $ $ $ $ $ 1,096.6 2,000.4 1,188.5 2,856.5 1,317.7 2,856.5 1,324.0 1,167.6 (302.7) (21.9) (25.6) 497.3 490.7 365.4 584.9 355.7 183.0 156.4 130.8 124.3 288.0 2021 2021 2021 (6.5) 74.1 31.8 27.9 17.2 21.2 23.7 6.3 6.2 6.5 – $ $ $ $ $ $ $ $ 1,904.7 1,182.0 2,807.3 1,283.7 2,807.3 1,287.0 1,132.1 (256.0) 292.6 (24.5) 833.1 712.2 479.3 423.3 543.4 359.0 173.0 (21.2) 154.9 119.8 (35.1) 124.6 2020 2020 2020 12.1 17.2 80.0 33.4 10.7 27.2 5.1 3.3 6.6 4.8 $ $ $ $ $ $ $ $ 1,003.3 1,854.7 2,662.1 1,165.2 1,277.9 2,662.1 1,283.0 1,124.7 (262.4) 2019* 2019* 2019* 292.3 (42.1) (12.2) 446.2 278.1 529.3 553.1 370.3 163.5 (23.7) 158.3 127.4 (30.9) 131.6 17.3 47.4 34.4 27.1 5.1 5.1 4.2 – – $ $ $ $ $ $ $ $ 2,489.9 1,779.5 1,073.7 1,253.2 2,489.9 1,254.6 1,099.0 (293.0) 2018*† 2018*† 2018*† 332.7 (33.5) 408.1 214.7 953.5 495.7 523.3 377.7 157.6 (26.6) 155.6 121.0 227.9 (34.6) 106.9 11.1 17.3 54.6 40.2 26.8 6.2 1.4 – – $ $ $ $ $ $ $ $ 2,394.5 1,693.2 1,282.8 2,394.5 1,292.9 1,123.5 (311.9) 2017*† 2017*† 2017*† 324.1 (17.2) 422.3 232.9 851.9 165.6 468.4 954.7 541.2 380.6 163.0 (25.9) 169.4 134.8 188.3 (34.6) 16.1 11.1 (5.0) 10.1 38.4 26.2 53.5 – – SASKTEL 2020/21 ANNUAL REPORT | 55

- 1.7 8.4 9.7 Q1 30.0 30.0 (0.6) (5.8) (9.1) (7.9) 92.2 42.2 31.7 22.6 14.7 2017 2017 316.1 311.1 310.5 130.4 278.8 3,916 47.9% 15.4% 2017*† 73,722 326,761 621,100 383,301 275,381 110,591 2019/20 $ $ 1,464,095

$ $ $ $ – 0.9 1.7 8.4 6.4 4.0 Q2 (6.1) (8.6) 87.3 43.1 45.4 36.8 40.8 324.5 325.4 139.2 280.0 2019/20 $ $

89.9 2018 2018 108.9 302.0 3,880 46.2% 11.9% 2018*† 72,467 2.5 0.6 1.6 8.6 5.7 7.1 Q3 611,841 356,958 278,977 110,881 325,095 (4.3) (8.9) 88.9 43.2 45.2 36.3 43.4 334.7 337.2 147.7 292.0 1,431,124 $ $ $ $ 2019/20 $ $

0.5 1.6 8.0 5.4 1.6 Q4 (5.0) (8.5) 90.6 44.5 10.1 32.6 24.1 25.7 313.4 313.9 126.1 281.3 2019/20 $ $ 2019 2019 3,719 114.7 116.3 268.2 46.6% 11.0% 2019* 76,692

317,096 615,087 333,643 277,244 112,583 – 1,415,249 March 31, March 2.6 1.5 7.7 9.6 7.9 Q1 $ $ $ $ (5.7) 89.8 43.9 44.2 33.7 41.6 (10.5) 308.6 311.2 120.2 267.0 2020/21 $ $

– 1.3 1.6 7.8 6.9 Q2 (5.2) (6.8) 84.3 43.9 49.6 42.8 16.6 2020 2020 2020 (26.2) 333.6 334.9 146.0 285.3 3,415 107.8 107.2 262.9 47.8% 10.2% 85,948 308,003 624,208 308,719 276,460 111,382 2020/21 $ $ 1,406,717

$ $ $ $ – 1.5 1.5 8.1 6.1 Q3 (5.8) (2.6) 89.0 47.6 33.2 30.6 16.9 (13.7) 347.1 348.6 168.9 315.4 2020/21 $ $ 2021 2021 2021 – 3,422 117.7 110.5 308.2 50.4% 11.0% 0.9 1.6 8.2 5.3 Q4 81,554 305,188 92.6 47.6 29.4 23.7 25.5 49.2 639,239 289,934 289,188 114,120 (5.2) (5.7) 328.4 329.3 149.8 299.9 1,414,035 $ $ $ $ $ $ 2020/21 Includes M2M counts †

*† * Salaries, wages, and benefits Goods and services purchased Goods and services Internal labour capitalized Internal labour capitalized plant and equipment - property, Depreciation assets - right-of-use Depreciation Amortization Impairment loss Saskatchewan taxes Saskatchewan Does not include SaskTel internal use Does not include SaskTel Dividends declared Debt ratio Dividends paid Salaries earned (000s) Employees and payroll FTEs Total Total customer accesses Total Wireline Internet subscribers maxTV Security monitoring subscribers Customer accesses Wireless * As at Annual Operating Statistics Annual Operating Revenue Consolidated Statement of Income and Other Comprehensive Income (Loss) and Other Comprehensive Income of Statement Consolidated ($ millions) Other income Indicators Financial 31, ended March For the year ($ millions) Return on equity Return Expenses Capital expenditures Results from operating activities operating from Results expense Net finance Net income Other comprehensive income (loss) income Other comprehensive Total comprehensive income income comprehensive Total *Results excluding the adoption of IFRS 16 the adoption of excluding *Results IFRS 15 the adoption of excluding †Results 56 | MANAGEMENT’S DISCUSSION AND ANALYSIS at speeds of 1.5 Mbps andaboveonfixed andwireless networks. of assets. independent of thecashinflows from otherassetsorgroups group of assetsthat generate cash inflows that are largely CGU (cash-generating unit):Thesmallestidentifiable Broadband: trillions of bps. second) isbillionsof bps;andTbps(terabitspersecond) is (megabits persecond) ismillionsof bps;Gbps(gigabitsper Kbps (kilobitspersecond) isthousandsof bps;Mbps points orwithinnetworkdevices. transferred inasecond betweentwotelecommunications speed usedfor measuringtheamountof data that is Bps (bitspersecond):Ameasurement of data transmission wireless orcablebusiness’operating performance. generated percustomermonth.ARPUisanindicator of a used inthewireless andcableindustriestodescribetherevenue measure, expressed asadollarrate permonth,ispredominantly ARPU (averagerevenue peruser):Thisbusinessperformance per month. network duringtheperiod,andisexpressed asarate by theaveragenumberof mobilephonesubscribersonthe monthly service plan,roaming, andusagecharges, divided measure iscalculated asnetworkrevenue derivedfrom ABPU (averagebillingperuser):Thisbusinessperformance the abilitytoconnect tomore devices at once thaneverbefore. to LTE, improvements insignallingefficiencyand coverage,and technology toresult insignificantly reduced latency compared of wireless telecommunications standards. We expect5G 5G (fifth-generation wireless): Theproposed next generation streaming, andother emerging services. designed tosupportvirtualandaugmentedreality, 4K speeds of 4Gtechnology. 4.5G technology hasbeen 4G services that enabletwotothree timesthedownload 4.5G (enhancedfourth-generation wireless): Upgradesto defined bytheInternational Telecommunications Union. technologies that includesHSPA+, LTE, andLTE advanced, as 4G (fourthgeneration): Thegeneration of wireless GLOSSARY simultaneous highspeedtransmissionof voice, data, and Telecommunications services that allowthe

video video FTTx (fibre tothex): large amountsof data betweenlocations. are transmitted.Optical fibre networksare usedto transmit Fibre network:Hair-thinglassfibres alongwhichlightpulses storage andmanagement. Data centre: Afacilityfor hostedapplications anddata companies inCanada. broadcasters, and cableTVandtelecommunications Commission): CRTC (CanadianRadio-televisionandTelecommunications same period. divided bytheaveragenumberof unitsonthenetworkin as thenumberof subscriberunitsdisconnecting inaperiod intensity. Itisusuallyexpressed asapercentage andcalculated at leastpartiallyreflective of service qualityand competitive service. Itisameasure of customerturnoverandisoften the disconnect rate of customerstoatelecommunications Churn: Thisbusinessperformance measure isusedtodescribe dedicated set-topbox. network bywayof astreamed broadband connection toa that usesatwo-waydigitalbroadcast signalsentthrough a (InternetProtocol television):Atelevisionservice IPTV applications tocommunicate overasinglecommon network. IP-based networkallowsavarietyof IPdevices andadvanced types ofAn customertraffic, includingvoice, data, andvideo. of service technologytoreliably andefficientlysupportall IP-based network:AnetworkdesignedusingIPandquality data across networks. IP (InternetProtocol): Apacket-based protocol for delivering smart-connected businesses,homes,cars,andcities. real timeandcanbedeployedtoenablethecreation of These systemscollect, analyze, andactoninformation in intervention, mostcommonly overawireless network. end points(orthings)that interactwithouthuman Internet of Things(IoT): Anetworkof uniquelyidentifiable those downloadspeeds. 6 Mbpsexpected).HSPA+ dual-cell technologycandouble download speedsof upto21Mbps(typicalspeedsof 4to capable of deliveringmanufacturer-rated wireless data HSPA+ (highspeedpacket accessplus):A4Gtechnology fibre tothenodeorneighbourhood. home, FTTPdenotesfibre tothepremises, andFTTNdenotes of theexistingcopper localloops.FTTHdenotesfibre tothe network architecture usingopticalfibre to replace allorpart The federal regulator for radioandtelevision A collective termfor anybroadband SASKTEL 2020/21 ANNUAL REPORT | 57

This measure provides a basis for comparing for a basis provides This measure the level of capital expenditures to those of other companies of other companies of to those capital expenditures the level of the same industry. within varying size (excluding as capital expenditures calculated is This measure by transactions) divided and non-monetary licences spectrum revenue. total operating of the capitalization measures The debt ratio Debt ratio: capital structure allows for This measure the Corporation. in the same industry. with other companies comparison Net divided by total capitalization. It is defined as net debt and short-term debt minusdebt is defined as long-term is defined as net capitalization Total cash and sinking funds. other accumulated including equity, debt plus period-end (AOCI). income comprehensive depreciation, taxes, interest, (earnings before EBITDA is used as an indicator EBITDA and impairment): amortization and ability to incur and performance operating a company’s of metric. valuation debt, and as a service minus operatingrevenue is defined as operating EBITDA revenue is defined as total revenue expenses. Operating defined expenses are Operating other income. of exclusive salaries, purchased, services goods and as the sum of less internal taxes wages and benefits, and Saskatchewan labour capitalized. operating of is the percentage margin margin: EBITDA EBITDA and capital investment, debt coverage, available for revenue to the shareholder. return revenue. divided by operating is defined as EBITDA margin EBITDA to the the return on equity): ROE measures ROE (return retained including AOCI, based on the equity, shareholder as net income is defined The calculation by the Corporation. the fiscal period. divided by average equity for NON-GAAP AND OTHER FINANCIAL MEASURES FINANCIAL AND OTHER NON-GAAP Capital intensity: .

A method of payment that allows a customer to that payment A method of Networking technology that allows fidelity): Networking technology that (wireless Wi-Fi to a wireless to connect any user with a Wi-Fi-enabled device public locations. point or hot spot in high-traffic access to wireless customers over LTE wireless networks. wireless customers over LTE to wireless A platform to provide voice services voice to provide A platform (VoLTE): over LTE Voice The range of electromagnetic radio frequencies radio frequencies electromagnetic Spectrum: The range of and video. The capacity data, voice, used in the transmission of the amount of a function of network is in part a wireless of used by the carrier. and spectrum licensed A service offered by wireless network operators thatoperators network by wireless offered Roaming: A service while in theallows subscribers to use their mobile phones another operator. of area service of actual usage. of Prepaid: Prepaid: in advance airtime and/or data a set amount of for prepay A conventional method of payment for services payment for method of Postpaid: A conventional of portion a significant and pays for a subscriber is billed where the services. consuming after arrears, and usage in services Over-the-top (OTT):Over-the-top in and applications Content, services, a through delivery occurs the where a video environment established video delivery infrastructure. medium other than the A wireless A wireless virtual network operator): (mobile MVNO does not own the that provider service communications which it provides through network infrastructure wireless to its customers. services Technologies and networked and Technologies M2M (machine-to-machine): and perform information to exchange able are that devices any human assistance. actions without A 4G mobile telecommunications A 4G evolution): (long-term LTE standard industry wireless global is the leading that technology Consolidated Financial Statements

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS

The accompanying consolidated financial statements, included in the annual report of Saskatchewan Telecommunications Holding Corporation for the fiscal year ended March 31, 2021, are the responsibility of Management and have been approved by the Board of Directors. Management has prepared the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. The policies set out have been consistently applied to all the periods presented unless otherwise noted. The financial information presented elsewhere in this annual report is consistent with that in the consolidated financial statements.

To ensure the integrity and objectivity of the financial data, Management maintains a comprehensive system of internal controls, including written policies and procedures, an organizational structure that segregates duties, and a comprehensive internal audit program. These measures provide reasonable assurance that transactions are recorded and executed in compliance with legislation and required authority, assets are properly safeguarded, and reliable financial records are maintained.

The Board of Directors fulfills its responsibility with regard to the consolidated financial statements principally through its Audit and Risk Committee, consisting of outside directors, which meets periodically with Management as well as with the internal and external auditors. The Audit and Risk Committee is responsible for engaging or reappointing the services of the external auditor. Both the internal and external auditors have free access to this committee to discuss their audit work, their opinion on the adequacy of internal controls, and the quality of financial reporting. The Audit and Risk Committee has met with Management and the external auditor to review the Corporation’s annual consolidated financial statements prior to submission to the Board of Directors for final approval.

The consolidated financial statements have been audited by the independent firm of KPMG LLP Chartered Professional Accountants, as appointed by the Lieutenant Governor in Council and approved by Crown Investments Corporation of Saskatchewan.

Doug Burnett Charlene Gavel President and Chief Executive Officer Chief Financial Officer May 26, 2021 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED 58 | SASKTEL 2020/21 ANNUAL REPORT | 59 Charlene Gavel Chief Financial Officer exercised reasonable diligence, the financial statements included in the Annual Report, fairly present, in all material respects all material in Report, fairly present, included in the Annual the financial statements diligence, reasonable exercised presented in the for the periods 2021, and 31, of March cash flows, as and of operations, results condition, the financial financial statements. to be either required is fact that a material fact, or omit to state material of any untrue statements do not contain SaskTel of under which it was made. the circumstances of not misleading in light a statement to make is necessary or that stated has designed internal controls authorities; and SaskTel legislative with applicable assets and compliance of safeguarding of SaskTel. to the circumstances appropriate are reporting that over financial over financial internal controls that assurance reasonable provide can this assessment, SaskTel of and, based on the results found in the design or weaknesses were and no material effectively operating 31, 2021, were March as of reporting reporting. over financial the internal controls of operation a. That we have reviewed the financial statements included in the annual report of SaskTel. Based on our knowledge, having of SaskTel. report included in the annual the financial statements we have reviewed a. That report included in the annual financial statements the diligence, reasonable exercised based on our knowledge, having b. That includes reporting, which over financial control internal effective establishing and maintaining for is responsible SaskTel c. That reporting over financial controls internal of the Corporation’s the effectiveness of its assessment conducted SaskTel d. That Doug Burnett Officer and Chief Executive President 2021 May 26, REPORT OF REPORTING MANAGEMENT FINANCIAL OVER ON INTERNAL CONTROL (SaskTel), Holding Corporation Telecommunications of Saskatchewan Officer and Chief Executive President Doug Burnett, the I, following: certify the of SaskTel, Officer the Chief Financial Charlene Gavel, and I, 60 | CONSOLIDATED FINANCIAL STATEMENTS Those charged withgovernance are responsible for overseeingtheCorporation’s financial reporting process. management eitherintendstoliquidate theCorporation ortocease operations, orhasnorealistic alternative buttodoso. concern, disclosingasapplicable,matters related togoingconcern andusingthegoingconcern basisof accounting unless In preparing thefinancialstatements, managementis responsible for assessingtheCorporation’s abilityto continue asagoing from material misstatement, whetherduetofraudorerror. for such internalcontrol asmanagementdeterminesisnecessary toenablethepreparation of financialstatements that are free Management isresponsible for thepreparation andfairpresentation of thefinancialstatements inaccordance withIFRS, and Responsibilities of ManagementandThoseChargedwithGovernancefortheFinancialStatements We havenothingtoreport inthisregard. that there isamaterial misstatement of thisotherinformation, weare required toreport that factintheauditors’report. report asat thedate of thisauditors’report. If, basedontheworkwehaveperformed onthisotherinformation, weconclude We obtainedtheinformation, otherthanthefinancialstatements andtheauditors’ report thereon, includedintheannual knowledge obtainedintheauditandremain alertfor indications that theotherinformation appearstobematerially misstated. and, indoingso,consider whethertheotherinformation ismaterially inconsistent withthefinancialstatements orour In connection withourauditof thefinancialstatements, our responsibility isto read theotherinformation identifiedabove assurance conclusion thereon. Our opiniononthefinancialstatements doesnot cover theotherinformation andwedonotwillexpress any form of Management isresponsible for theotherinformation. Otherinformation comprises: Other Information We believethat theauditevidence wehaveobtainedissufficientandappropriate to provide abasis forouropinion. financial statements inCanadaandwehavefulfilledourotherethical responsibilitiesin accordance withthese requirements. We are independentof theCorporation inaccordance withtheethicalrequirements that are relevant toourauditof the of ourauditors’report. those standards are furtherdescribedinthe“Auditors’ Responsibilities for theAuditof theFinancialStatements” section We conducted ourauditinaccordance withCanadiangenerallyaccepted auditingstandards. Ourresponsibilities under Basis forOpinion then endedinaccordance withInternational FinancialReporting Standards (IFRS). of theCorporation asat March 31,2021,anditsconsolidated financialperformance andits consolidated cashflows fortheyear In ouropinion,theaccompanying financialstatements present fairly, inallmaterial respects, the consolidated financialposition (Hereinafter referred toasthe“financialstatements”). (“the Corporation”) whichcomprise: We haveauditedtheconsolidated financialstatements of Saskatchewan Telecommunications HoldingCorporation To TheMembersof theLegislative Assembly, Province of Saskatchewan AUDITORS’INDEPENDENT REPORT • • • • • • the information, otherthanthefinancialstatements andtheauditors’ report thereon, includedintheannual report. and notestotheconsolidated financialstatements, includingasummary of significant accounting policies the consolidated statement of cashflows for theyearthenended the consolidated statement of changesinequityfor theyearthenended the consolidated statement of income andothercomprehensive lossfor theyearthenended the consolidated statement of financialpositionas at March 31,2021

SASKTEL 2020/21 ANNUAL REPORT | 61

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and due to fraud or error, whether statements, the financial of misstatement material risks of Identify and assess the provide a to is sufficient and appropriate that those risks, and obtain audit evidence to responsive audit procedures perform our opinion. basis for as fraud error, from one resulting fraud is higher than for from resulting misstatement not detecting a material The risk of internal control. or the override of intentional omissions, misrepresentations, forgery, may involve collusion, in appropriate are that design audit procedures to to the audit in order relevant internal control Obtain an understanding of of the Corporation’s an opinion on the effectiveness expressing the purpose of for but not the circumstances, internal control. and related estimates accounting of and the reasonableness policies used accounting of the appropriateness Evaluate made by management. disclosures and, based on the audit accounting basis of concern the going management’s use of of Conclude on the appropriateness cast significant doubt may that to events or conditions exists related uncertainty a material obtained, whether evidence exists, we are uncertainty a material that If we conclude as a going concern. ability to continue on the Corporation’s if such disclosures or, in the financial statements disclosures to the related auditors’ report in our to draw attention required our of obtained up to the date based on the audit evidence are opinion. Our conclusions to modify our inadequate, are concern. as a going to continue to cease may cause the Corporation events or conditions future However, auditors’ report. and whether including the disclosures, the financial statements, of and content structure the overall presentation, Evaluate fair presentation. achieves the underlying transactions and events in a manner that represent the financial statements the and timing of the planned scope among other matters, regarding, with governance charged with those Communicate that we identify during our audit. control any significant deficiencies in internal audit and significant audit findings, including of the entities or business activities withininformation the financial regarding audit evidence Obtain sufficient appropriate supervision for the direction, responsible We are an opinion on the financial statements. to express Corporation the Group our audit opinion. for solely responsible remain audit. We the group of and performance • • • • • • • (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. to KPMG services Canada provides KPMG entity. a Swiss International”), (“KPMG KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative KPMG International with affiliated of independent member firms network of the KPMG LLP is a Canadian limited liability partnership and a member firm KPMG May 26, 2021 May 26, Regina, Canada Chartered Professional Accountants Professional Chartered We also: We As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and professional we exercise auditing standards, generally accepted with Canadian an audit in accordance As part of the audit. throughout skepticism maintain professional Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could or in the aggregate, individually if, material considered and are error fraud or can arise from Misstatements financial statements. of the on the basis taken of users decisions the economic influence be expected to reasonably Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian accordance in an audit conducted not a guarantee that but is assurance, of is a high level assurance Reasonable when it exists. misstatement a material will always detect auditing standards generally accepted Auditors’ Responsibilities for the Audit of the Financial Statements Financial the of for the Audit Responsibilities Auditors’ material from free are as a whole statements financial whether the about assurance obtain reasonable to are Our objectives includes our opinion. that issue an auditors’ report and to or error, whether due to fraud misstatement, Consolidated Statement of Income and Other Comprehensive Loss

For the year ended March 31, 2021 2020 Thousands of dollars Note Revenue 3 $ 1,317,660 $ 1,283,670 Other income 4 6,318 3,358 1,323,978 1,287,028

Expenses Goods and services purchased 584,872 543,448 Salaries, wages, and benefits 355,647 358,965 Internal labour capitalized (21,852) (21,143) Depreciation - property, plant and equipment 13 182,961 173,043 Depreciation - right-of-use assets 14 6,167 6,579 Amortization 15 31,781 33,353 Impairment loss - 10,660 Saskatchewan taxes 5 27,950 27,211 1,167,526 1,132,116

Results from operating activities 156,452 154,912 Net finance expense 6 25,631 35,136

Net income 130,821 119,776

Other comprehensive income (loss) Items that will be reclassified to net income Unrealized gains on sinking funds 1,379 4,129 Reclassification to net income of realized gains on sinking funds (6,974) – Net sinking fund market value gains (losses) 16 (5,595) 4,129 Items that will never be reclassified to net income Net actuarial gains (losses) on employee benefit plans 25 (943) 713

Total other comprehensive income (loss) (6,538) 4,842 Total comprehensive income $ 124,283 $ 124,618

All net income and total comprehensive income are attributable to Crown Investments Corporation of Saskatchewan.

See Accompanying Notes

Consolidated Statement of Changes in Equity Accumulated other Equity comprehensive Total Thousands of dollars advances income Retained earnings equity Balance at April 1, 2020 $ 237,000 $ 109,204 $ 835,784 $ 1,181,988 Net income – – 130,821 130,821 Other comprehensive loss – (6,538) – (6,538) Total comprehensive income – (6,538) 130,821 124,283 Dividends declared – – 117,739 117,739 Balance at March 31, 2021 $ 237,000 $ 102,666 $ 848,866 $ 1,188,532

Balance at April 1, 2019 $ 237,000 $ 104,362 $ 823,806 $ 1,165,168 Net income – – 119,776 119,776 Other comprehensive income – 4,842 – 4,842 Total comprehensive income – 4,842 119,776 124,618 Dividends declared – – 107,798 107,798 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Balance at March 31, 2020 $ 237,000 $ 109,204 $ 835,784 $ 1,181,988

62 | See Accompanying Notes SASKTEL 2020/21 ANNUAL REPORT | 63 407 2020 6,493 8,891 12,913 37,592 22,577 25,448 55,978 15,173 74,887 43,351 58,349 22,341 17,221 15,371 45,953 61,548 16,735 237,000 109,204 835,784 833,065 150,302 188,851 276,464 712,216 271,486 142,860 123,603 423,291 1,181,988 1,625,263 2,807,251 2,807,251 1,904,655 $ $ $ $ - - 489 2021 6,864 12,337 37,087 17,234 10,856 32,688 56,629 16,111 84,619 41,706 57,110 32,396 23,694 26,347 46,343 66,567 19,224 102,666 848,866 237,000 171,990 219,892 497,310 264,012 183,194 365,369 1,188,532 2,856,459 1,667,927 1,096,606 2,856,459 2,000,391 $ $ $ $ 7 9 8 31 27 26 25 24 23 22 18 20 17 20 19 21 23 16 15 14 13 12 11 10 11 12 16 Note Glenys Sylvestre Accumulated other comprehensive income other comprehensive Accumulated earnings Retained Equity advance Trade and other payables and Trade Dividend payable Contract liabilities Notes payable Other liabilities long-term debt portion of Current Cash Inventories Trade and other receivables Trade expenses Prepaid Contract assets Contract costs Sinking funds Commitments and contingencies equity Saskatchewan's of Province Provisions Employee benefit obligations Lease liabilities Long-term debt Liabilities and Province's equity Liabilities and Province's liabilities Current income – government funding Deferred Contract liabilities Other assets Sinking funds Intangible assets Right-of-use assets Right-of-use Property, plant and equipment Property, Contract costs Assets assets Current Contract assets 2021 May 26, Grant Kook Grant Kook See Accompanying Notes See Accompanying the Board On behalf of As at March 31, March As at dollars of Thousands Consolidated Statement of Financial Position of Financial Statement Consolidated Consolidated Statement of Cash Flows

For the year ended March 31, 2021 2020 Thousands of dollars Note Operating activities Net income $ 130,821 $ 119,776 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 13, 14, 15 220,909 212,975 Net finance expense 6 25,631 35,136 Interest paid (51,851) (52,504) Interest received 6 6,555 9,443 Amortization of government funding 22 (5,837) (5,765) Impairment loss - 10,660 Other 4,643 1,523 Net change in non-cash working capital 28a (42,823) (38,618) 288,048 292,626

Investing activities Property, plant and equipment expenditures (282,171) (223,580) Intangible asset expenditures (21,116) (35,073) Government funding 22 519 2,633 (302,768) (256,020)

Financing activities Proceeds from long-term debt 23, 28b 263,741 105,918 Repayment of long-term debt 23, 28b (276,600) – Net proceeds (repayment) of notes payable 28b 31,041 (4,444) Sinking fund redemptions 16, 28b 133,931 – Payment of lease liabilities 24, 28b (5,755) (5,835) Sinking fund instalments 16, 28b (14,666) (12,915) Dividends paid 28b (110,499) (107,230) 21,193 (24,506)

Increase in cash 6,473 12,100 Cash, beginning of year 17,221 5,121 Cash, end of year $ 23,694 $ 17,221

See Accompanying Notes CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED 64 | SASKTEL 2020/21 ANNUAL REPORT | 65

The COVID-19 pandemic continues to cause significant disruption to the Canadian and world economies. While there has beenWhile there disruption to the Canadian and world economies. to cause significant pandemic continues The COVID-19 to assess and monitor the impact continues the pandemic, the Corporation because of minimal impact to the Corporation and, if it causes to be uncertain the pandemic continues of and duration The magnitude the pandemic on its operations. of ofPotential impacts include loss will increase. an extended period, the impacts to the Corporation for significant disruption and potential asset impairment. or unavailable workforce, with a remote supply chain disruption, challenges associated revenue, COVID-19 impact assessment COVID-19 Accounting policies have been applied consistently by the Corporation and its subsidiaries throughout all periods presented all periods presented and its subsidiaries throughout by the Corporation policies have been applied consistently Accounting unless otherwise indicated. Accounting policies, estimates, and judgments Accounting policies, estimates, as financial statements to the consolidated this section relate and judgments included in policies, estimates, The accounting assets and amounts of and expenses, reported revenue amounts of judgments may impact reported and a whole. Estimates contingencies. of liabilities, and disclosure The consolidated financial statements have been prepared on the historical cost basis, except for certain items that are not are certain items that for cost basis, except on the historical have been prepared financial statements The consolidated policies. as noted in specific accounting historical cost carried at currency and presentation Functional functional currency. which is the Corporation’s in Canadian dollars, presented are financial statements The consolidated The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards Financial with International in accordance have been prepared financial statements The consolidated (IASB). Board Standards Accounting (IFRS), as issued by the International Certain of the Corporation’s accounting policies that relate to the consolidated financial statements as well as estimates and as well as estimates financial statements to the consolidated relate that policies accounting the Corporation’s Certain of are financial statements, in the consolidated has made and how they impact amounts reported judgments the Corporation or judgment is applicable to a specific note to the accounts, estimate, policy, an accounting in this section. Where incorporated and applied by the either effective were that note. This note also describes new standards the policy is described within that not yet effective. were or that year, current during the Corporation Note 2 – Basis of presentation Saskatchewan Telecommunications Holding Corporation (the Corporation) is a corporation located in Canada. The address in Canada. located is a corporation (the Corporation) Corporation Holding Telecommunications Saskatchewan Saskatchewan is a The Corporation SK, S4P 3Y2. Regina, Drive, Saskatchewan is 2121 office registered the Corporation’s of Act Corporation Holding Telecommunications The Saskatchewan the authority of under operating corporation Crown Provincial Notes to Consolidated Financial Statements Financial to Consolidated Notes General information Note 1 – The Corporation markets and supplies a range of wireless, voice, entertainment, internet, data, equipment, marketing, security, security, equipment, marketing, entertainment, internet, data, voice, wireless, of and supplies a range markets The Corporation and services. products and consulting software, One of the Corporation’s subsidiaries, Saskatchewan Telecommunications (SaskTel) is regulated by the Canadian Radio- is regulated (SaskTel) Telecommunications subsidiaries, Saskatchewan the Corporation’s One of (Canada). Act under the Telecommunications (CRTC) Commission television and Telecommunications , the Corporation has been designated as a subsidiary of Crown Investments Crown as a subsidiary of has been designated Act, 1993, the Corporation Corporations The Crown By virtue of consolidated in the included are of the Corporation results the financial (CIC). Accordingly, Saskatchewan of Corporation corporation. Crown a Provincial CIC, of financial statements and, as such, the Corporation and its wholly owned subsidiaries are not subject to Federal or Provincial income taxes in Canada. taxes income to Federal or Provincial not subject subsidiaries are its wholly owned and the Corporation and, as such, 66 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS variability of returns from theCorporation’s involvementwiththeinvestee. members; therighttodirect theinvesteetoenterintotransactionsfor theCorporation’s benefit;andtheexposure, orrights,to other shareholders; theextentof participation bythoseshareholders inappointingkey managementpersonnel orboard activities of theinvestee.Consideration isgivento:votingrights;the relative size anddispersionof thevotingrightsheldby Judgment involvesassessingcontrol, whichentailsdeterminingwhethertheCorporation hasthepowertodirect therelevant Accounting estimates, andjudgments eliminated inpreparing theconsolidated financialstatements. Inter-company balances andtransactions,anyincome andexpensesarisingfrom inter-company transactions,are Transactions eliminated onconsolidation consolidated entity. Throughout thesefinancialstatements, thephrase“theCorporation” isusedto collectively describetheactivities of the financial statements, are prepared and released publicly: Separate auditedfinancialstatements for each of theundernotedwhollyowned corporations, whichare consolidated inthese commences untilthedate onwhichcontrol ceases. The financialstatements of subsidiariesare includedinthe consolidated financialstatements from the date onwhich control through itspowerovertheentity. is exposedto,orhasrightsvariablereturns from itsinvolvementwiththeentityandhasabilitytoaffect those returns A subsidiaryisanentitythat iscontrolled byanotherentity, known astheparent. The Corporation controls anentitywhenit The consolidated financialstatements includethefinancialstatements ofthe Corporation anditssubsidiaries. Subsidiaries connection withabusinesscombination are expensedasincurred. Transaction costs, otherthanthoseassociated withtheissueof debtorequitysecurities,that theCorporation incursin its proportionate share of therecognized amountof theidentifiablenetassets, at theacquisitiondate. The Corporation electsonatransaction-by-transactionbasiswhethertomeasure non-controlling interest at itsfairvalue, orat gain isrecognized immediately innetincome. assets acquired and liabilitiesassumed,allmeasured asof theacquisitiondate. Whentheexcess isnegative, abargain purchase amount of anynon-controlling interest intheacquiree, lessthenetrecognized amount(generallyfairvalue)of theidentifiable For acquisitions,theCorporation measures goodwillasthefairvalueof theconsideration transferred, includingtherecognized Business combinations Accounting policies Basis of consolidation and liabilityvalues. pandemic itisnotpossibletodetermineifthere willbesignificantadditionalimpactsoncurrent operations or reported asset Estimates of theseimpactshavebeenincludedwhere appropriate. Giventheuncertainty of themagnitudeandduration of the Note 2–Basisof presentation, continued SecurTek MonitoringSolutionsInc.(SecurTek) Directwest Corporation (Directwest) (SaskTel International) Saskatchewan Telecommunications International, Inc. Saskatchewan Telecommunications (SaskTel) Subsidiary Security monitoring Marketing services Telecommunications software solutionsandconsulting Telecommunications Principal Activity SASKTEL 2020/21 ANNUAL REPORT | 67 Values based on quoted prices in markets that are not active or model inputs that are observable either directly or observable either directly are not active or model inputs that are that in markets based on quoted prices Values the asset or liability. substantially the full term of for indirectly Values based on prices or valuation techniques that require inputs, which are both unobservable and significant to which are inputs, require techniques that or valuation based on prices Values the overall fair value measurement. Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for date the measurement at accessible are that in active markets prices based on unadjusted quoted Values identical assets or liabilities. Level 1 -  Level 2 -  Level 3 -  Level

The three levels of the fair value hierarchy are: the fair value hierarchy levels of The three Fair value Fair Accounting policies between transaction a liability in an orderly to sell an asset or paid to transfer received would be that value is the price Fair using another observable or estimated is directly price whether that of regardless date, the measurement participants at market Level 1, 2, or 3 based on the into categorized are reporting purposes, fair value measurements technique. For financial valuation of the inputs. The Corporation’s observable and the significance are to which the inputs to the fair value measurement degree fair value. measure techniques used to the inputs to valuation prioritizes fair value hierarchy The Corporation cannot predict if specific events that potentially trigger impairment will occur, when they may occur, or when they may occur, occur, potentially trigger impairment will if specific events that predict cannot The Corporation cash flow potential or significant unanticipated declines in future reported asset amounts. Unexpected how they may affect impairment. impact carrying values and the potential for technology changes could Accounting estimates, and judgments Accounting estimates, assessing value infor rate discount appropriate determining the asset or CGU; Judgment involves identifying the appropriate CGUs. or of the assets conditions over the long-term life flows and market cash use; and making assumptions about future Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased that any indications for date each reporting assessed at prior periods are in Impairment losses recognized the recoverable used to determine has been a change in the estimates if there reversed or no longer exists. An impairment loss is the carrying amount the asset’s carrying amount does not exceed the extent that only to amount. An impairment loss is reversed if no impairment loss had been recognized. or amortization, depreciation determined, net of would have been that An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. recoverable its estimated exceeds an asset or its CGU if the carrying amount of An impairment loss is recognized to reduce allocated are CGUs of in respect Impairment losses recognized income. in net recognized Impairment losses are basis. rata units) on a pro of the assets in the unit (group the carrying amounts of The Corporation’s corporate assets do not generate separate cash inflows. If there is an indication that a corporate asset corporate a that is an indication If there cash inflows. separate assets do not generate corporate The Corporation’s asset belongs. to which the corporate the CGU amount is determined for then the recoverable may be impaired, For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group group together into the smallest grouped individually are cannot be tested that impairment testing, assets For the purpose of of other assets the cash inflows of independent largely are that continuing use from cash inflows generate assets that of its of is the greater an asset or CGU of amount The recoverable unit or the CGU). assets (the cash-generating of or groups to discounted cash flows are future In assessing value in use, the estimated to sell. fair value less costs value in use and its and the of money value of the time assessments market current reflects that rate discount a pre-tax value using their present asset. risks specific to the Accounting policies Accounting not for use are ready not yet are that or intangible assets (i.e., spectrum licences) life an indefinite useful have Assets that if frequently quarter), or more third (typically in the impairment annually for least tested at and are amortization subject to reviews period, the Corporation each reporting the end of an impairment. At may be there indicate circumstances events or assets and identifiable and equipment, right-of-use plant property, its assets in use, including of the carrying amounts an impairment loss. they have suffered that is any indication finite lives, to determine whether there intangible assets with Note 2 – Basis of presentation, continued presentation, of 2 – Basis Note testing Impairment 68 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS related financialdisclosures. Additional significantaccounting policies,estimates, andjudgmentsare disclosedthroughout the following noteswiththe Additional accountingpolicies adopted for thecurrent year. Certain of the2019/20comparative information hasbeenreclassified to conform withthefinancialstatement presentation Comparative information at thedate of thetransaction. Non-monetary itemsthat are measured intermsof historicalcost inaforeign currency are translated usingtheexchange rate during theperiod,andamortized cost inforeign currency translated at theexchange rate at theendof thereporting period. between amortized cost inthefunctionalcurrency at thebeginningof theperiod,adjustedfor effective interest andpayments functional currency at theexchange rate at that date. Theforeign currency gainorlossonmonetaryitemsisthedifference of thetransactions.Monetaryassetsandliabilitiesdenominated inforeign currencies at thereporting date are translated tothe Transactions inforeign currencies are translated tothefunctionalcurrency of theCorporation at exchange rates at thedates Accounting policies Foreign currency transactions measurement and issubjecttoestimation andjudgment. Determination of thehierarchy levelisbasedontheCorporation’s assessmentof inputsthat are significanttothefairvalue defaults andotherrelevant variables.Theestimates of fairvaluemaynotaccurately reflect theamountsthat could be realized. to differ. Inaddition,estimates may require assumptionsaboutfuture price, volatility, liquidity, discount andinflation rates, factors. Estimates canbedeterminedusingmultiplemethods,whichcausevalues(orarangeof reasonable values) Fair valueestimates are at apoint-in-timeandmaychangeinsubsequentreporting periodsduetomarket conditions orother Accounting estimates, andjudgments Note 2–Basisof presentation, continued Note 10 18 16 19 14 12 13 15 17 11 8 6 9 4 3 5 7 Net finance expense Contract assets Cash Saskatchewan taxes Sinking funds Intangible assets Right-of-use assets and equipment Property, plant Contract costs Inventories receivables Trade andother customers contracts with Revenue from Prepaid expenses Other income Notes payable payables Trade andother Other assets Topic Accounting Accounting Policies X X X X X X X X X X X X X Accounting Judgments Estimates and X X X X X X X X Page 71 71 74 74 72 71 81 81 79 77 75 75 73 72 69 82 82 Note 20 30 28 29 26 24 22 23 32 25 27 21 31 funding – government Deferred income Contract liabilities Long-term debt Other liabilities Lease liabilities contingencies Commitments and Employee benefits transactions Related party management and related risk Financial instruments obligations Future performance information flows –supporting statement of cash Consolidated capital disclosures Equity advance and Provisions Topic Accounting Policies X X X X X X X Accounting Judgments Estimates and X X X X X X X Page 100 101 83 83 82 84 85 99 93 86 95 92 91 SASKTEL 2020/21 ANNUAL REPORT | 69

A contract asset is recognized when the Corporation’s right to consideration from the transfer of products or services to or services products of the transfer from right to consideration when the Corporation’s asset is recognized A contract to trade transferred Contract assets are or services. other products to transfer on the obligation a customer is conditional is liability time. A contract only as to the passage of conditional becomes when the right to consideration receivables Contract to the customer. or services products of the transfer of in advance is received when consideration recognized For multiple element arrangements, the Corporation accounts for individual products and services when they are separately when they are and services individual products for accounts For multiple element arrangements, the Corporation consideration on its own. The total arrangement product or service is from the identifiable, and the customer can benefit Stand- with the customer based on its stand-alone selling price. included in the contract or service to each product allocated separately sells products which the Corporation at prices generally determined based on the observable are alone selling prices for market adjusted of services, with the same range offerings service non-bundled for and prices contract without a service the Corporation not sold separately, are and services When similar products and other factors, as appropriate. conditions by a purchased and services Products to determine stand-alone selling prices. approach plus margin uses the expected cost separately. for accounted those included in the bundled arrangement are of customer in excess Accounting policies sales with a customer and excludes in a contract consideration the expected based on the value of is measured Revenue is or service a product of when control is recognized parties. Revenue third on behalf of and other amounts collected taxes with the value directly a customer corresponds from right to consideration When the Corporation’s to a customer. transferred in the amount to which revenue recognizes the Corporation to date, transferred and services the products to the customer of has a right to invoice. the Corporation on a net basis. presented are to the same contract assets and liabilities relating Note 3 – Revenue from contracts with customers Note 3 – Revenue Certain new standards, interpretations, and amendments to existing standards were issued by the IASB or International issued by the IASB or International were and amendments to existing standards interpretations, Certain new standards, April periods beginning after annual accounting for mandatory are that Committee (IFRIC) Interpretations Financial Reporting results and on its of these pronouncements does not expect a significant impact The Corporation periods. 1, 2021, or later financial position. New standards, amendments to standards, and interpretations not yet adopted and interpretations New standards, amendments to standards, (IFRS 3) with a date of initial application of (IFRS 3) with a date adopted the amendments to IFRS 3 Business combinations has The Corporation has applied IFRS 3 prospectively. the Corporation IFRS 3, of with the transitional provisions In accordance April 1, 2020. of or assetcombinations for as business accounted acquisitions are future whether The amendments to IFRS 3 may affect and goodwill. the net identifiable assets acquired between price the purchase of allocation acquisitions, along with the resulting of the amendments to the standard. adoption upon financial statements was no impact to the consolidated There Adoption of amendments to IFRS 3 Business combinations amendments Adoption of (IAS 1) and amendments to IAS 8, to IAS 8, (IAS 1) and amendments Financial Statements of to IAS 1, Presentation has adopted the amendments The Corporation In April 1, 2020. of application initial of (IAS 8) with a date and Errors Estimates in Accounting Policies, Changes Accounting IAS 1 and IAS 8 has applied the amendments to the Corporation IAS 8, IAS 1 and of provisions with the transitional accordance IFRS Standardsacross in IAS 1 and align the definitions used material of the definition amendments refine The prospectively. of the amendments to upon adoption financial statements the consolidated was no impact to There and other publications. the standards. Accounting Policies, Accounting IAS 8, and amendments to Financial Statements of amendments to IAS 1, Presentation Adoption of and Errors Estimates Changes in Accounting The Corporation has adopted the amendments to the Conceptual Framework for Financial Reporting (the Conceptual Financial Reporting for Framework the Conceptual amendments to has adopted the The Corporation the Conceptual of provisions the transitional with In accordance April 1, 2020. of initial application of a date with Framework) to the revisions provide The amendments prospectively. Framework the Conceptual has applied Corporation the Framework, consolidatedwas no impact to the reporting. There financial for concepts set of a comprehensive Framework, Conceptual framework. of the amendments to the upon adoption financial statements Note 2 – Basis of presentation, continued presentation, of 2 – Basis Note Standards Reporting Financial to International amendments of Application Financial Reporting for Framework Conceptual amendments to the of Adoption 70 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS contract orbasedonspecifieddeliverables withinthe contract. product orservice; andfor professional service contracts andmultipleelementcontracts, eitherupon completion of the in accordance withthetermsof thecontract withthecustomer: for perpetuallicences, typicallyupondeliveryof therelated method. Amountsbilledorpaid inadvance of services provided are recorded ascontract liabilities.Customerpayments are due contract. Revenue for customized software projects andconsulting services isrecognized usingthepercentage-of-completion arrangements, are recognized asservices are rendered. Supportandmaintenance fees are recognized overthetermof the of performance obligations tobedelivered. Feesfor professional services, otherthaninthecontext of multipleelement perpetual licence andwhichare separate performance obligations. Revenue isrecognized inaccordance withtheassessment the arrangementincludesmultipleelements,elements are assessed todeterminewhichelementsare integraltothe Revenue for perpetuallicences isrecognized ondelivery oraccording tothetermsof thelicence agreement. Where payments are duemonthlyastheservices are provided. date. Amountsbilledinadvance for marketing services are deferred and recognized overthetermof the contract. Customer with thecontractual termswiththeadvertisers,onamonthlybasisoverlife of theservices, commencing withthedisplay sale of print,onlineandout-of-home marketing services. Marketing service revenue isgenerallyrecognized, inaccordance Marketing revenue isgenerated from conventional, digitalmedia, andout-of-home advertising.Revenue isearnedthrough the to fiveyears. where abillingschedulehasbeenestablishedwithcertain customersunderlong-term contracts that cangenerallyextendup For wireline customers,products are usuallypaidinfullat thepointof saleandservices are paidonamonthlybasisexcept factors, asappropriate, ortheexpectedcost plusmargin approach for customized businessarrangements. arrangements, stand-alonesellingprices are determinedusingobservableprices adjustedfor market conditions andother methods basedonproducts delivered, performance completed todate, timeelapsed,ormilestonesmet.Formultipleelement recognized overtime,astheservices are provided. Revenue oncertain long-term contracts isrecognized usingoutput Revenue from thesaleof equipmentisrecognized whenacustomertakes possessionof theproduct. Service revenue is the related performance obligation. established. Paymentsreceived inadvance are recorded ascontract liabilitiesandrecognized asrevenue uponsatisfaction of on access totheCorporation’s facilities.Services are paidonamonthlybasisexcept where abillingschedulehasbeen services from ortoresellers andothercarriers.Revenue isrecognized intheperiodearned,asservices are provided, based customers. Revenue alsoincludesamountsfrom theCorporation’s wholesalebusiness,whichsellstelecommunication long distance, andsecurityservices aswellothercommunications services andproducts toconsumer andbusiness Revenue isalsogenerated from providing data, includinginternetaccess andinternetprotocol local, television(IPTV), business customers. financing, customerspaymonthlyovera contract term of upto 24 months for consumer customersandupto36months for on amonthlybasisfor services. Forwireless products andservices soldinmultipleelementarrangements,includingdevice For wireless products andservices that are soldseparately, customersusuallypayinfullat thepointof salefor products and as appropriate. stand-alone sellingprices are determinedusingobservableprices adjustedfor market conditions andotherfactors, product. Wireless service revenue isrecognized overtime,astheservices are provided. Formultipleelementarrangements, Equipment revenue from thesaleof wireless handsetsanddevices isrecognized whenacustomertakes possessionof the and services toconsumer andbusinesscustomers. Wireless revenue isprincipallygenerated from providing integrated digitalwireless voice anddata communications products that isconsistent withtheperiodandpattern of transfer tothecustomerof therelated products orservices. fulfillment costs, are recognized inthestatement of financialposition. Capitalized costs are amortized onasystematic basis Incremental costs of obtainingacontract withacustomer, principallycomprised of salescommissions andprepaid contract customers. Otherwise,theCorporation recognizes thenetamountthat theCorporation retains asrevenue. Corporation actsastheprincipalinthesearrangements,Corporation recognizes revenue basedontheamountsbilledto The Corporation mayenterintoarrangementswithsubcontractors andotherswhoprovide services tocustomers.Whenthe Note 3–Revenuefromcontracts withcustomers,continued

SASKTEL 2020/21 ANNUAL REPORT | 71 2020 2020 2020 1,400 3,358 5,765 7,058 8,224 (3,807) 27,211 20,803 20,153 32,428 18,283 27,768 11,623 576,120 273,028 210,970 104,423 1,283,670 $ $ $ $ $ $ 2021 2021 2021 6,318 6,178 5,837 7,255 9,315 27,950 20,695 25,225 34,679 26,090 25,204 12,408 (5,697) 610,401 274,566 196,172 103,600 1,317,660 $ $ $ $ $ $ 22 Note

Other Amortization of government funding of Amortization Wireless network services and equipment network services Wireless plant and equipment property, or disposal of Net loss on retirement Other services Fixed broadband and data services and data broadband Fixed services communication Wireline service maxTV Security monitoring services Customer premise equipment Customer premise services Marketing IT solutions services services and consulting software International Finance expenses are composed of interest expense on financial liabilities and lease liabilities measured at amortized cost, at amortized expense on financial liabilities and lease liabilities measured interest of composed expenses are Finance expense on the net or loss, the net interest profit financial assets classified as fair value through changes in the fair value of are directly costs that Borrowing provisions, less amounts capitalized. expense on accretion and defined benefit liability, asset. Other that of the cost part of a qualifying asset form of or production to the acquisition, construction, attributable as an expense. recognized are costs borrowing Accounting policies financial assets classified as fair on funds invested, changes in fair value of income interest of is composed income Finance on the net defined benefit asset. income or loss, and net interest profit value through Note 6 – Net finance expense For the year ended March 31, For the year ended March dollars Thousands of Note 5 – Saskatchewan taxes Note 5 – Saskatchewan Revenue Other income (loss) capital tax corporate Saskatchewan Note 4 – Other income 31, For the year ended March dollars Thousands of For the year ended March 31, For the year ended March dollars Thousands of Grants-in-lieu of taxes Grants-in-lieu of Supporting information The Corporation is required to make judgments and estimates that affect the amount and timing of revenue from contracts revenue from of timing the amount and affect that and estimates judgments to make is required The Corporation and services, products of transaction price to; determining the related and judgments including estimates with customers, contract, within a obligations of performance identification services, and products of prices the stand-alone selling determining of distinct, and the timing is considered goods or services to deliver a promise whether of the determination including including to obtain a contract costs of determination The contracts. under long-term obligations performance of satisfaction costs meet the deferral This includes determining whether the judgment. requires costs also of incremental the identification will be recoverable. the costs criteria and whether Note 3 – Revenue from contracts with customers, continued with customers, contracts from 3 – Revenue Note judgments and estimates, Accounting 72 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS for doubtful accounts willbeincreased byrecording anadditional expense. expected collection trends. Ifeconomic conditions orspecificindustrytrends become worsethananticipated, theallowance are basedonthelikelihood of collecting accounts receivable based onpastexperience, takingintoconsideration current and Determining whenamountsare deemeduncollectible requires judgment.Estimates of theallowance for doubtfulaccounts Accounting estimates, andjudgments accounts receivable tobeindefault whentheborrower isunlikely topayitscredit obligations totheCorporation infull. historical experience andinformed credit assessment,includingforward-looking information. TheCorporation considers without unduecost oreffort. Thisincludesbothquantitative andqualitative information andanalysis,basedontheCorporation’s When estimating lifetime ECL, theCorporation considers reasonable andsupportableinformation that isrelevant andavailable The allowance for doubtfulaccounts ontradeandotherreceivables are alwaysrecorded at lifetime expectedcredit losses(ECL). provision for impairmentlossesof tradeaccounts receivable. to initialrecognition, tradeandotherreceivables are measured at amortized cost usingtheeffective interest method,lessany The Corporation initiallyrecognizes trade andotherreceivables at fairvalueonthedate that theyare originated. Subsequent Accounting policies Note 8–Trade andotherreceivables The Corporation classifiescash at amortized cost usingtheeffective interest method. Accounting policies Note 7–Cash Interest capitalization rate Net financeexpense Finance income Finance expense Net interest expense Interest capitalized Interest onshort-termdebt Interest onlong-termdebt Recognized inconsolidated netincome Thousands of dollars For theyearendedMarch 31, Supporting information Note 6–Netfinanceexpense,continued Interest income Reclassification of realized sinkingfundmarket valuegains Realized earnings Sinking fundearnings Accretion expense Net interest ondefinedbenefitliability Interest onleaseliabilities Note 16 16 26 25 24 $ $ (10,989) (17,544) (6,974) (6,555) (4,015) (4,951) 25,631 43,175 42,417 46,755 3.62% 1,050 (447) 2021 155 613 $ $ (14,868) 35,136 50,004 (5,425) (9,443) (5,425) 48,404 49,907 (4,239) 3.99% 1,115 2,736 2020 221 264 – SASKTEL 2020/21 ANNUAL REPORT | 73 715 2020 2020 2020 8,593 2,190 (2,606) 14,656 15,371 16,986 25,579 30,424 112,852 112,436 142,860 $ $ $ $ $ $

599 2021 2021 2021 25,748 26,347 9,764 2,547 25,239 35,003 76,455 (7,578) 111,770 183,194 106,739 $ $ $ $ $ $ 17 29 29 Note Note 1 Customer accounts receivable Customer accounts Allowance for doubtful accounts for Allowance Accrued receivables – customer receivables Accrued Other Net of the allowance for doubtful accounts of $1.3 million and Nil on the current portion at March 31, 2021 and March 31, 2020. 31, 2021 and March March portion at million and Nil on the current $1.3 of doubtful accounts for the allowance Net of Inventories for resale Inventories for Materials and supplies Materials For the year ended March 31, 2021, writedowns of inventory to net realizable value amounted to $0.3 million value amounted to $0.3 realizable inventory to net 31, 2021, writedowns of For the year ended March As at March 31, March As at dollars Thousands of million). million (2019/20 – $68.5 as an expense during the year was $76.4 inventories recognized of The cost Accounts receivable portion Current Supporting information million). (2019/20 – $0.2 In establishing the appropriate provision for supplies inventory obsolescence, management estimates the likelihood that the likelihood management estimates obsolescence, supplies inventory for provision In establishing the appropriate when to inventory charged are Other supplies obsolete due to changes in technology. supplies inventory on hand will become when used. and expensed or capitalized purchased and judgments Accounting estimates, value. net realizable of measure Judgment involves determining the appropriate Note 9 – Inventories Accounting policies and supplies materials value. Other and net realizable weighted average cost the lower of valued at are resale Inventories for cost. and replacement average cost lower of the valued at inventories are 1 As at March 31, March As at dollars Thousands of The following table summarizes the wireless device financing receivables: financing device the wireless table summarizes The following Wireless device financing receivables device financing Wireless yet to be billed.are that financing agreements amounts owed by customers under are receivables financing device Wireless and the long-term receivables and other within Trade receivable accounts portion is disclosed with Customer The current portion is disclosed with the Other assets. Long-term portion Long-term receivables financing device Total As at March 31, 31, March As at dollars of Thousands Note 8 – Trade and other receivables, continued receivables, other and 8 – Trade Note information Supporting 74 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Long-term portion Current portion Balance at March 31, Impairment allowance Contract terminations transferred totradereceivables Amortization of contract assets Contract assetsrecognized inthecurrent period Balance at April1, Thousands of dollars As at March 31, Supporting information will beincreased byrecording anadditionalexpense. collection trends. Ifeconomic conditions orspecificindustrytrends become worsethananticipated, theimpairment allowance collecting therelated accounts receivable, whichisbasedonpastexperience, takingintoconsideration current andexpected amounts are deemeduncollectible requires judgment.Estimates of theimpairmentlossesare basedonthelikelihood of distinct, andthetimingof satisfaction of performance obligations underlong-termcontracts. Inaddition,determiningwhen obligations withinacontract, includingthedetermination of whetherapromise todelivergoodsorservices isconsidered judgments includeestimates of thestand-alonesellingprices of products andservices, theidentification of performance with customers,whichalsoimpactsthedetermination of contract assetsandtheamortization of theseassets.Estimates and The Corporation isrequired tomake judgmentsandestimates that affect theamountandtiming of revenue from contracts Accounting estimates, andjudgments increased significantlyifitismore than30dayspastdue. informed credit assessment,includingforward-looking information. Itisassumedthat thecredit riskonafinancialassethas This includesbothquantitative andqualitative information andanalysis,basedontheCorporation’s historicalexperience and Corporation considers reasonable andsupportableinformation that isrelevant andavailablewithoutunduecost oreffort. The allowance for impairmentlossesoncontract assetsisalwaysrecorded at lifetime ECL. Whenestimating ECL, the from twotofour years. Amortization isrecognized innetincome consistent withthepattern of deliveryof therelated goodsandservices, ranging are presented onanetbasis. advance of thetransfer of products orservices tothecustomer. Contractassetsandliabilitiesrelating tothesamecontract the pattern of deliveryof therelated goodsorservices. Acontract liabilityisrecognized whenconsideration isreceived in receivables whentherighttoconsideration becomes conditional onlyastothepassageof time,typicallyconsistent with a customerisconditional ontheobligation totransfer otherproducts orservices. Contractassetsare reclassified astrade A contract assetisrecognized whentheCorporation’s righttoconsideration from thetransfer of products orservices to Accounting policies Note 11–Contractassets Thousands of dollars As at March 31, Note 10–Prepaidexpenses Short-term customerincentives Prepaid expenses $ $ $ $ 46,343 44,880 1,463 (79,250) 186,913 101,563 101,116 2021 (2,153) (6,547) 32,396 66,567 98,963 85,350 2021 $ $ $ $ 167,870 (76,665) 88,767 22,341 79,103 61,548 83,889 85,350 (1,461) (5,855) 45,953 44,890 1,063

2020 2020 SASKTEL 2020/21 ANNUAL REPORT | 75

(735) 2020 75,084 16,735 59,617 34,269 93,886 58,349 (18,067) $ $ 2021 (872) 75,084 19,224 57,110 76,334 22,496 97,580 (20,374) $ $ 3-17 years 3-50 years 20-75 years Estimated useful life Estimated Office furniture and equipment furniture Office Asset Buildings and improvements Plant and equipment Depreciation is recognized in net income on the straight-line basis over the estimated useful life of each part of an item of property, property, an item of each part of of useful life on the straight-line basis over the estimated in net income is recognized Depreciation plant and equipment as follows: Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its cost, an asset, or other amount substituted for of which is the cost amount, over the depreciable is calculated Depreciation value. residual is reflected in net income for the year. in net income is reflected When property, plant and equipment is disposed of or retired, the related cost and accumulated depreciation is eliminated from the from is eliminated depreciation and accumulated cost the related or retired, plant and equipment is disposed of When property, of the asset, and the carrying amount between the sale proceeds gain or loss, determined as the difference Any resulting accounts. The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is the item if it in the carrying amount of recognized plant and equipment is property, an item of part of replacing of The cost cost can be measured and its within the part will flow to the Corporation benefits embodied economic the future that probable plant and property, day-to-day servicing of the of The costs part is derecognized. the replaced The carrying amount of reliably. as incurred. in net income recognized equipment are Property, plant and equipment are measured at cost, less accumulated depreciation and any accumulated impairment losses. Cost impairment and any accumulated depreciation less accumulated cost, at measured plant and equipment are Property, of use. The cost their intended for to bringing the assets to a working condition attributable directly are that includes expenditures with associated costs Borrowing costs. attributable and directly labour, direct services, includes materials, assets self-constructed as in recorded are period. Assets under construction the construction during capitalized are major capital and development projects asset. class of to the appropriate transferred which time they are use, at for and available operational until they are progress Note 13 – Property, plant and equipment Note 13 – Property, Accounting policies As at March 31, March As at dollars Thousands of Supporting information Accounting estimates, and judgments Accounting estimates, contract. to obtain a costs of the amount and timing affect that judgments and estimates to make is required The Corporation judgment. This requires costs also of incremental including, the identification to obtain a contract costs of The determination timing of and the will be recoverable, whether the costs criteria, the deferral meet whether the costs includes determining contracts. under related obligations performance of satisfaction Capitalized costs are amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer to transfer of and pattern with the period is consistent basis that on a systematic amortized are costs Capitalized two and 10 years. which is typically between or services, products the related of Note 12 – Contract costs 12 – Contract Note policies Accounting costs the position when financial of the statement in recognized with a customer are obtaining a contract of costs Incremental composed principally are The costs recoverable. will be the costs that has been determined and it deferral for meet the criteria costs. fulfillment contract and prepaid sales commissions of Balance at April 1, Balance at Depreciation methods, useful lives, and residual values are reviewed at each financial reporting date and adjusted if appropriate. reporting date each financial at reviewed values are methods, useful lives, and residual Depreciation Current portion Current Long-term portion Balance at March 31, March Balance at Contract costs recognized in the current period in the current recognized Contract costs purchased included in goods and services Amortization Terminations 76 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Supporting information impairments orchangestodepreciation expenseinfuture periods,particularlyifusefullivesare significantly reduced. of future technologies.Changesintheseassumptionscould result inmaterial adjustmentstoestimates, whichcould result in of benefit,prospective changesare madetotheir remaining usefullives.Uncertainties are inherent inestimating theimpact the endof eachreporting period.Whenitisdeterminedthat assignedassetlivesdonotreflect theexpected remaining period The Corporation assessesitsexistingassetsandtheirusefullivesinconnection withthereview of networkoperating plansat accounted for bychangingthedepreciation periodormethodasappropriate, andare treated as changesinaccounting estimates. in theexpectedusefullife ortheexpectedpattern of consumption of future economic benefitsembodiedintheassetare Asset residual values andusefullivesare reviewed and adjustedifappropriate, at theendof eachreporting period.Changes of depreciation. extended assetlife orfunctionality;theestimated usefullife overwhichsuch costs shouldbedepreciated; andthemethod different depreciation methodsorrates are appropriate); which repairs andmaintenance constitute betterments, resulting in management withreference tofunctionality;theappropriate levelof componentization (for individualcomponents for which cessation of cost capitalization, considering thecircumstances inwhichtheassetistobeoperated, normallypredetermined by Judgment involvesdetermining:whichcosts are directly attributable (e.g.,labourandrelated costs); appropriate timingfor Accounting estimates, andjudgments Note 13–Property, plant andequipment, continued Balance at April1,2020 Accumulated depreciation Balance at March 31,2020 Retirements, disposals,andadjustments Balance at March 31,2021 Retirements, disposals,andadjustments Depreciation Transfers Additions Balance at April1,2019 Balance at March 31,2021 Retirements, disposals,andadjustments At March 31,2020 At April1,2020 amounts Carrying Balance at March 31,2020 Retirements, disposals,andadjustments Depreciation Balance at April1,2019 Transfers At April1,2019 At March 31,2021 Additions Balance at April1,2020 Cost Thousands of dollars $ $ $ $ $ $ $ $ $ $ $ $ equipment 2,376,967 3,704,946 2,412,628 1,292,318 1,262,139 3,639,106 3,639,106 3,537,767 1,262,139 1,255,812 2,376,967 2,281,955 Plant and (108,051) (112,518) 143,712 132,460 135,206 (39,367) (40,194) 59,259 45,898 81,447 $ $ $ $ $ $ $ $ $ $ $ $ improvements Buildings and Buildings and 195,695 613,989 210,683 403,306 391,820 587,515 587,515 575,017 391,820 393,520 195,695 181,497 15,606 27,456 14,803 15,417 (2,305) (1,219) (618) (982) – - furniture and $ $ $ $ $ $ $ $ $ $ $ $ equipment (42,471) (42,856) 133,101 153,572 153,572 (53,171) 176,534 113,330 (48,027) 22,131 23,643 87,723 68,895 64,206 65,849 21,592 22,420 65,849 63,204 87,723 Office 8,617 254 construction Plant under $ $ $ $ $ $ $ $ $ $ $ $ (160,170) (104,867) 199,286 199,286 145,124 145,124 214,332 146,507 145,124 103,484 145,124 103,484 – – – – – – – – – – $ $ $ $ $ $ $ $ $ $ $ $ 41,275 41,275 39,723 39,723 39,723 38,670 39,723 38,670 1,561 1,055 Land (9) (2) – – – – – – – – – – $ $ $ $ $ $ $ $ $ $ $ $ 2,660,385 4,692,597 2,692,206 2,000,391 1,904,655 4,565,040 4,565,040 4,431,472 1,904,655 1,854,690 2,576,782 2,660,385 (151,140) (156,365) 182,961 283,922 228,413 173,043 (94,845) (89,440) Total

– – SASKTEL 2020/21 ANNUAL REPORT | 77

2026

$ (7.7) 2025 $ (3.2) 2024 $ (2.7) 2023 $ 2.6 Fiscal year ending March 31, ending March Fiscal year 2022 $ 7.3 2021 $ 3.7 either at the commencement date or as a consequence of having used the underlying asset during a particular period. having used of or as a consequence date the commencement either at the amount of the initial measurement of the lease liability; of measurement the initial the amount of received; less any lease incentives date, the commencement or before lease payments made at and by the Corporation; incurred costs initial direct the the underlying asset, restoring in dismantling and removing by the Corporation to be incurred costs of an estimate the of conditions by the terms and required the underlying asset to the condition or restoring site on which it is located those costs for the obligation incurs inventories. The Corporation to produce incurred are lease, unless those costs • • • • Millions of dollars Millions of (decrease) - increase expense Depreciation Right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease to the earlier of the end the earlier of the lease to of date the commencement on a straight-line basis from depreciated assets are Right-of-use the asset expects to obtain ownership of the lease term, unless the Corporation or the end of the asset of the useful life of reasonably are options that lease term, renewal the non-cancellable of the lease term. The lease term consists the end of at expected to be exercised. not reasonably are options that and termination expected to be exercised and judgments Accounting estimates, assetsof right-of-use the determination or impact affect and judgments that estimates to make is required The Corporation and depreciation less any accumulated cost at assets the right-of-use measures the Corporation After the initial recognition, revised or modifications the lease liability due to lease of any remeasurement impairment losses; adjusted for any accumulated lease payments. fixed in-substance the incremental of estimation the lease payments to be included in the lease liability, of involves determination Estimation of to be included in the determination additional amounts of estimation as appropriate, or implicit lease rate rate borrowing Judgments include determining whether a contract contains an identifiable asset, assessing control of assets in a contract,of assets in a control an identifiable asset, assessing contains Judgments include determining whether a contract terms, and determining whether lease cancellation and renewal determining the lease term including the assessment of result in changes to existing leases or new leases. modifications and the related depreciation. and the related assets. right-of-use the useful lives of of asset, and estimation the right-of-use Right-of-use assets are initially measured at cost. The cost of the right-of-use asset includes: asset the right-of-use of The cost cost. at initially measured assets are Right-of-use Note 14 – Right-of-use assets – Right-of-use Note 14 Accounting policies on the a lease, based is, or contains, contract assesses whether the the Corporation a contract, of At the inception contract components within a Lease of time. period for a specified asset an identified the use of right to control Corporation’s one or contain that For contracts contract. the of the non-lease components from as a lease separately for accounted are based on the stand-alone to each component is allocated the consideration components, additional lease or non-lease more components. the lease and non-lease of price Note 13 – Property, plant and equipment, continued equipment, and plant 13 – Property, Note Effective October 1, 2020 the Corporation adjusted the useful lives of certain assets to coincide with the replacement of theseof replacement the with coincide to certain assets of lives the useful adjusted the Corporation 1, 2020 October Effective as follows: impacts are assets. The 78 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 14 –Right-of-use assets,continued At March 31,2020 At April1,2019 At March 31,2021 Balance at April1,2019 At April1,2020 amounts Carrying Balance at March 31,2020 Retirements andadjustments Balance at March 31,2021 Depreciation Retirements andadjustments Depreciation Balance at April1,2020 Accumulated depreciation Balance at March 31,2021 Retirements andadjustments Additions Balance at April1,2019 Retirements andadjustments Additions Balance at March 31,2021 Balance at April1,2020 Cost Thousands of dollars Supporting information $ $ $ $ $ $ $ $ $ $ $ $ equipment Plant and 16,223 13,298 10,191 13,298 10,191 9,921 9,984 6,302 3,060 3,314 2,985 9,984 3,314 3,343 3,219 (112) (72) (60) (29) – improvements Buildings and Buildings and $ $ $ $ $ $ $ $ $ $ $ $ 24,299 25,146 29,264 27,724 27,436 25,146 27,724 27,436 4,965 2,399 2,578 1,602 2,578 2,578 (62) (12) 288 – – – $ $ $ $ $ $ $ $ $ $ $ $ (1,111) 1,303 7,486 8,221 8,789 8,879 9,683 8,221 8,879 9,683 (214) Land 658 (63) 708 124 658 658 307 – – $ $ $ $ $ $ $ $ $ $ $ $ 41,706 43,351 12,570 54,276 49,901 47,310 43,351 49,901 47,310 (1,223) 6,167 6,550 4,711 6,550 6,579 3,814 (147) (336) Total (29) – SASKTEL 2020/21 ANNUAL REPORT | 79 1–10 years Estimated useful life Estimated Asset Software Estimation is applied to determine expected useful lives used in the amortization of intangible assets with finite lives. Changes of to determine expected useful lives used in the amortization is applied Estimation into an asset (taken of consumption of or the expected pattern changes in useful life from can result estimates in accounting period or method, as appropriate). by changing the amortization account Spectrum licences have been classified as indefinite-life intangible assets due to the current licencing terms, the most licencing intangible assets due to the current have been classified as indefinite-life Spectrum licences Should theserevocation. licence of material precedent regulatory fees and no renewal minimal are of which significant cost less any at recorded have been reassessed. Spectrum licences will be of indefinite-life factors change, the classification impairment losses. accumulated Accounting estimates, and judgments Accounting estimates, timing the appropriate amortization, the method of capitalization, eligible for Judgment is applied to determine expenditures intangible assets. assets as indefinite-life certain intangible of and classification capitalization, cost of cessation for Amortization is recognized in net income on a straight-line basis over the estimated useful lives of the assets as follows: useful lives of estimated on a straight-line basis over the in net income is recognized Amortization Costs associated with maintaining software as well as expenditures on research activities, undertaken with the prospect of prospect with the activities, undertaken on research as well as expenditures maintaining software with Costs associated as an expense as incurred. recognized and understanding, are gaining new scientific or technical knowledge Capitalized software is measured at cost less accumulated amortization and any accumulated impairment losses. and any accumulated amortization less accumulated cost at is measured software Capitalized Software development activities involve a plan or design for the production of new or substantially improved products and products improved new or substantially of the production design for development activities involve a plan or Software or the product reliably, measured can be costs only if development capitalized are Development expenditures processes. intends to and and the Corporation probable, benefits are economic future feasible, is technically and commercially process cost include the capitalized asset. The expenditures development and to use or sell the complete to resources has sufficient its intended use. Borrowing the asset for to preparing attributable directly are that costs and related labour, direct materials, of in net recognized are Other development expenditures capitalized. are qualifying assets of to the development related costs as incurred. income Intangible assets are recorded initially at cost of acquisition or development and relate primarily to software and spectrum software primarily to and relate or development acquisition of cost initially at recorded assets are Intangible is probable when it asset is recognized An intangible to software. primarily assets relate intangible generated Internally licences. asset can of the cost and the to the asset will flow to the Corporation attributable benefits economic the expected future that reliably. be measured Note 15 – Intangible assets 15 – Intangible Note policies Accounting by controlled and to the Corporation, economic benefits to bring future identifiable, able defined as being assets are Intangible rights. contractual or arises from criterion when it is separable the identifiability An asset meets the Corporation. 80 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS At April1,2019 Balance at March 31,2020 Balance at April1,2019 At March 31,2021 Retirements, disposals,andadjustments At March 31,2020 At April1,2020 amounts Carrying Impairment loss Amortization Balance at March 31,2021 Retirements, disposals,andadjustments Balance at March 31,2020 Amortization Retirements, disposals,andadjustments Balance at April1,2019 Balance at April1,2020 Accumulated amortization Impairment loss Transfers Acquisitions –internallydeveloped Acquisitions –internallydeveloped Acquisitions Balance at March 31,2021 Retirements, disposals,andadjustments Transfers Acquisitions Balance at April1,2020 Cost testing indicated no impairmentat March 31,2021. was thenapplied totheestimated 2020/21EBITDA of the unit todeterminetherecoverable amount of the unit.Impairment premium associated withthesepubliclytradedshare prices. Theresulting adjustedratio using Level 3fairvaluehierarchy inputs, earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio that wasthenadjustedfor ademonstrablecontrol on exchanges andare activelytraded.Share prices for thesecompanies were usedtoderiveanEnterpriseValue tothe (EV) The Corporation’s CGU impairmenttestswere basedonfair valuelesscosts tosellusingcomparable companies that are listed than theCorporation’s operating segments. assets andfinite-life intangibleassetsunderdevelopmentare monitored for internalmanagementpurposes,which isnothigher million) are allocated to oneCGU: SaskTel. ThisisthelowestlevelwithinCorporation at which indefinite-life intangible assets underdevelopment,$8.7 million(2019/20–$12.2million)andaportionof software, $131.6 million(2019/20 – $135.5 For thepurposeof impairmenttesting,indefinite-life intangibleassets (spectrum licences), aportion of finite-life intangible finite-life intangibleassetsunderdevelopment Impairment testingforthecash-generating unitcontainingindefinite-lifeintangibleassetsand recoverability testing of Thousands of dollars Supporting information Note 15–Intangible assets,continued $ $ $ $ $ $ $ $ $ $ $ $ Goodwill (5,976) 5,976 5,976 – – – – – – – – – – – – – – – – – – – – – – – $ $ $ $ $ $ $ $ $ $ $ $ (163,530) (163,538) Software 134,357 170,255 138,409 304,612 302,004 440,413 164,107 302,004 264,250 138,409 440,413 428,357 31,781 17,309 33,353 6,360 4,068 4,684 1,933 5,794 4,612 (283) (283) – $ $ $ $ $ $ $ $ $ $ $ $ Spectrum licences 120,905 120,905 120,905 120,905 108,738 120,905 120,905 108,738 12,167 – – – – – – – – – – – – – – – – – development $ $ $ $ $ $ $ $ $ $ $ $ (17,309) 12,172 12,928 12,172 12,172 12,172 10,945 (1,933) Under 8,750 8,750 2,199 2,199 959 961 – – – – – – – – – – – – $ $ $ $ $ $ $ $ $ $ $ $ (163,530) (163,538) 264,012 170,255 271,486 434,267 302,004 573,490 281,020 302,004 264,250 271,486 573,490 545,270 31,781 16,996 33,353 27,724 (5,976) 7,319 4,684 6,755 Total (283) (283) – – SASKTEL 2020/21 ANNUAL REPORT | 81 – – 56 242 2020 2020 5,425 8,593 8,891 5,425 4,129 12,915 74,887 176,021 198,490 123,603 $ $ $ $ – 64 2021 2021 4,015 1,028 9,764 6,974 14,666 10,856 10,989 84,619 84,619 (5,595) 198,490 (133,931) $ $ $ $ 8 Note

14,150 14,150 14,150 13,650 13,150 of dollars of $ Thousands ending Years 31, March 2022 2023 2024 2025 2026 Instalments Earnings earnings Realized Reclassification of realized sinking fund market value gains sinking fund market realized of Reclassification Net valuation adjustment Net valuation Redemptions Note 17 – Other assets 31, March As at dollars Thousands of Balance at April 1, Balance at follows: as 31 are the next five years ending March Sinking fund instalments due in each of customer incentives Long-term receivables financing device Wireless Other Thousands of dollars Thousands of The changes in the carrying amount of sinking funds are as follows: funds are sinking carrying amount of The changes in the The fund includes the Corporation’s required contributions, its proportional share of earnings and its proportional share of share earnings and its proportional of share its proportional contributions, required Corporation’s The fund includes the gains or losses. revaluation Supporting information sinking funds, administered to pay annually into is required to the long-term debt, the Corporation attached Under conditions the debt outstanding. 1% to 2% of representing amounts Finance, Ministry of by the Saskatchewan Note 16 – Sinking funds 16 – Sinking Note policies Accounting intends Corporation (OCI) because the income comprehensive other as fair value through have been classified Sinking funds business the funding and therefore assets are the of the debt that assets to the duration the financial of duration the to match realized as sale proceeds as well and interest) of principal (payments cash flows contractual both hold to collect model is to who makes Finance of Ministry Saskatchewan the managed through are The investments durations. of matching through risk management documented with the Corporation’s accordance on their fair value in decisions based and sale purchase value.at fair measured OCI are value through at fair assets financial to initial recognition, Subsequent and investment strategy. in OCI. recorded gains and losses are and unrealized in net income recorded gains or losses are Realized Balance at March 31, March Balance at Current portion Current Long-term portion 82 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Long-term portion Current portion Balance at March 31, Terminations Recognized inrevenue Contract liabilitiesrecognized inthe current period Other Balance at April1, Thousands of dollars As at March 31, Supporting information or services isconsidered distinct,andthetimingof satisfaction of performance obligations underlong-termcontracts. identification of performance obligations withina contract, includingthedetermination of whether apromise todeliver goods as revenue. Estimates andjudgmentsincludeestimates of thestand-alonesellingprices of products and services, the with customers,whichalsoimpactsthedetermination of contract liabilitiesandthetimingof recognition of contract liabilities The Corporation isrequired tomake judgmentsandestimates that affect theamountandtiming of revenue from contracts Accounting estimates, andjudgments recognized inrevenue uponsatisfaction of therelated performance obligations. customer. Contractassetsandliabilitiesrelating tothesamecontract are presented onanetbasis.Contractliabilitiesare A contract liabilityisrecognized when consideration isreceived inadvance of thetransfer of products orservices tothe Accounting policies Note 20–Contractliabilities from April15, 2021,toJune17, 2021,and haveaweightedaverageeffective interest rate of 0.13% (2019/20–1.68%). Notes payableare duetotheProvince of Saskatchewan’s GeneralRevenue Fund (GRF).Thesenoteshavevaryingmaturities Supporting information The Corporation derecognizes afinancial liabilitywhenits contractual obligations are discharged, cancelled, orexpire. liabilities are measured at amortized cost usingtheeffective interest method. recognized initiallyat fairvalueplus any directly attributable transactioncosts. Subsequenttoinitialrecognition, thesefinancial The Corporation initiallyrecognizes debt securitiesissuedonthedate that theyare originated. Suchfinancialliabilitiesare Accounting policies Note 19–Notespayable Payroll andotheremployee-related liabilities Trade payablesandaccrued liabilities Thousands of dollars As at March 31, Supporting information The Corporation derecognizes afinancialliabilitywhenits contractual obligations are discharged, cancelled, orexpire. the effective interest method. attributable transactioncosts. Subsequenttoinitialrecognition, thesefinancialliabilities are measured at amortized cost using to thecontractual provisions of theinstrument.Suchfinancialliabilitiesare recognized initially at fairvalueplusanydirectly The Corporation initiallyrecognizes tradeandotherpayablesonthedate at whichtheCorporation becomes aparty Accounting policies Note 18–Trade andotherpayables $ $ $ $ (327,895) 385,035 328,650 171,990 124,939 56,629 57,118 56,385 10,263 36,788 2021 2021 (22) 489 $ $ $ $ (325,399) 150,302 105,170 381,805 324,342 12,066 33,066 55,978 56,385 57,463 2020 2020 407 (21) SASKTEL 2020/21 ANNUAL REPORT | 83 – 35 Total 2020 2,633 5,765 5,817 2,818 5,817 6,503 34,159 28,394 15,173 2020 $ 31,526 $ 22,577 $ $ 41 519 Total 5,837 5,842 2021 3,011 5,842 5,774 1,443 28,913 23,076 16,111 $ 28,394 $ 17,234 $ $

519 123 130 3,108 2,985 Innovate $ 2,589 $ 2,855 22 24 26 Note Connect to 2021 – 5,714 5,712 25,805 20,091 $ 25,805 $ 14,379 all obligations fulfilled all obligations Fully funded programs with funded programs Fully

As at March 31, March As at Advance billings Advance Customer deposits dollars Thousands of received Funding The Corporation has entered into an agreement with ISED through the Connect to Innovate program to receive $6.5 million $6.5 to receive program the Connect to Innovate with ISED through into an agreement entered has The Corporation has The Corporation communities. in rural and remote infrastructure high-capacity broadband of to partially fund provision in the next fiscal year. million which has been applied to capital. Additional spending will be conducted $3.2 funding of received The Corporation has received funding from the Province of Saskatchewan through CIC and the Ministry of Education, as well Education, CIC and the Ministry of through Saskatchewan of the Province funding from received has The Corporation Science Innovation, Aboriginal Affairs and Northern Development Canada (AANDC), and Canada through as the Government of the Rural Infrastructure including; various programs, Canada (ISED), as full or partial funding of Development and Economic Network Communications Saskatchewan of assets distribution and communication the satellite of the transfer Program, the First schools and health facilities in Saskatchewan, Nations to selected First internet service to the Corporation, Corporation to high speed internet in access of the provision for the Connecting Canadians program Project, Improvement Service Nations Tribal and offices to specific First Nations internet service dedicated of and provision Saskatchewan, parts of rural and remote programs. respect to these with has fulfilled all obligations The Corporation Council offices. Note 22 – Deferred income – government funding Note 22 – Deferred Accounting policies they will be received, that assurance is reasonable there when income initially as deferred recognized are Government grants for the Corporation compensate with the grant. Grants that associated with the conditions will comply and the Corporation on a systematic income and other comprehensive income of statement in the consolidated recognized are expenses incurred an of the cost for the Corporation compensate Grants that recognized. are basis in the same period in which the expenses basis over the on a systematic income and other comprehensive income of statement in the consolidated recognized asset are the asset. of useful life and judgments Accounting estimates, as a acting in their capacity funding is a transaction with the shareholder in determining whether certain Judgment is required a specific purpose (i.e., is the government acting inbe available to other parties for or whether the funding would shareholder or as a government). its capacity as shareholder Supporting information Balance at April 1, Balance at Note 21 – Other liabilities 21 – Other Note 31, March As at dollars of Thousands Amortization 31, March Balance at portion - disclosed with other liabilities Current Long-term portion Current portion of deferred income - government funding income deferred portion of Current lease liabilities portion of Current Current portion of provisions portion of Current 84 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Long-term portion Current portion Long-term portion Current portion Total duetoProvince of Saskatchewan June 2020 June 2018 April 2020 April 2019 May 2017 December 2016 December 2013 February 2012 February 2021 March 1999 March 1999 December 2017 December 2010 May 2014 November 1990 July 2010 Issue date Balance at March 31, on June2,2060. Saskatchewan Ministryof Finance. Thedebtissuehasacoupon rate of 2.35%,an effective interest rate of 2.37%,and matures On June2,2020, theCorporation issued$100millionof long-termdebtat adiscount of $0.4 millionthrough the on June2,2050. Saskatchewan Ministryof Finance. Thedebtissue hasacoupon rate of 3.10%, aneffective interest rate of 2.57%, andmatures On April28, 2020, theCorporation issued$100 millionof long-term debtat apremium of $11.1millionthrough the Thousands of dollars Unsecured advancesfromtheProvinceofSaskatchewan Balance at April1, Thousands of dollars As at March 31, Supporting information The Corporation derecognizes afinancialliabilitywhenits contractual obligations are discharged, cancelled, orexpire. recognition, thesefinancialliabilitiesare measured at amortized cost usingtheeffective interest method. These financialliabilitiesare recognized initially at fairvalueplusanydirectly attributable transaction costs. Subsequenttoinitial The Corporation initiallyrecognizes debtsecuritiesissuedandsubordinated liabilitiesonthedate that theyare originated. Accounting policies Note 23–Long-termdebt Amortization of netdiscounts (premiums) Long-term debtredemptions Long-term debtissues June 2060 June 2058 June 2050 June 2050 June 2048 June 2048 June 2045 February 2042 June 2030 March 2029 March 2029 June 2027 December 2025 June 2024 December 2020 July 2020 Maturity date Effective interest rate (%) 10.18 2.37 3.01 2.57 2.81 3.22 3.35 4.09 3.49 1.51 5.18 5.97 2.56 4.15 3.11 4.01 Coupon rate (%) 10.08 2.35 2.95 3.10 3.10 3.30 3.30 3.90 3.40 2.20 5.60 5.75 2.65 4.15 3.20 3.90 $ $ 1,361,600 1,361,600 100,000 100,000 100,000 150,000 150,000 126,600 150,000 50,000 50,000 75,000 50,000 35,000 75,000 50,000 50,000 50,000 value Par – Unamortized (discounts) premiums $ $ 10,890 11,606 11,606 (4,447) (1,874) (1,020) 2,954 5,671 (612) (656) (374) 688 257 129 – – – – – $ $ 1,096,606 1,096,606 1,109,529 (276,600) 263,741 $ $ 2021 1,096,606 1,096,606 (64) 145,553 148,126 110,890 105,671 – 49,388 74,344 52,954 50,688 35,000 73,980 50,257 50,000 50,129 99,626 Outstanding amount 2021 – – – March 31, $ $ $ $ 1,109,529 1,109,529 1,003,280 145,446 148,065 276,464 126,516 149,948 105,796 833,065 833,065 276,464 105,918 49,379 74,329 50,705 35,000 73,882 50,295 50,000 50,168 2020 2020 331 – – – – SASKTEL 2020/21 ANNUAL REPORT | 85 2026

$ 50.0 2025 $ 50.0 2024 $ – Years ending March 31, ending March Years 2023 $ – 2022 $ –

interest on the lease liability; and interest in the period in which the event or the lease liability of variable lease payments not included in the measurement triggers those payments occurs. that condition increasing the carrying amount to reflect interest on the lease liability; on the interest the carrying amount to reflect increasing payments made; and the lease the carrying amount to reflect reducing revised in-substance reflect or to or lease modifications, reassessment any the carrying amount to reflect remeasuring lease payments. fixed fixed payments (including in-substance fixed payments), less any lease incentives receivable; payments), less any lease incentives fixed payments (including in-substance fixed the as at or rate using the index initially measured depend on an index or a rate, variable lease payments that date; commencement value guarantees; under residual Corporation amounts expected to be payable by the option; and that to exercise certain is reasonably option if the Corporation a purchase of price the exercise an option to exercising the Corporation the lease, if the lease term reflects terminating for penalties payments of the lease. terminate • • • • • • • • • • Estimation involves determination of the lease payments to be included in the lease liability and estimation of the incremental the incremental of the lease payments to be included in the lease liability and estimation of involves determination Estimation as appropriate. or implicit lease rate rate borrowing Judgments include determining whether a contract contains an identifiable asset, assessing control of assets in a contract,of assets in a control an identifiable asset, assessing contains Judgments include determining whether a contract terms, and determining whether lease cancellation and renewal determining the lease term including the assessment of result in changes to existing leases or new leases. modifications The Corporation has not elected to utilize the recognition exemption for short-term or low-value leases. for exemption the recognition has not elected to utilize The Corporation and judgments Accounting estimates, of lease liabilities and the or impact the determination affect that and judgments estimates to make is required The Corporation expense. interest related Amounts recognized in net income, unless the costs are included in the carrying amount of another asset applying other included in the carrying amount of are unless the costs in net income, Amounts recognized include: applicable standards, 1% to 2% of the original issue. The cumulative annual payments plus interest earned are used for the retirement of debt issues of the retirement used for earned are plus interest annual payments the original issue. The cumulative 1% to 2% of . – Sinking funds) 16 on a net basis (see Note upon maturity, by: lease liability is measured the After initial recognition, resulting method interest using the effective on the lease liability in each period during the lease term is calculated Interest is the initial interest of The periodic rate the lease liability. of balance on the remaining interest of periodic rate in a constant rate. discount if applicable, a revised or, rate discount At the commencement date, the lease payments included in the measurement of the lease liability include the following of measurement the lease payments included in the date, At the commencement date: the commencement not paid at are lease term that the right to use the underlying asset during the payments for Note 24 – Lease liabilities Note 24 Accounting policies the commencement not paid at are the lease payments that value of the present at initially measured liabilities are Lease determinable, otherwise the the lease, if readily implicit in rate using the interest discounted are The lease payments date. rate. borrowing uses its incremental Corporation There is a requirement attached to above advances to make annual payments into sinking funds in amounts representing annual payments into to make to above advances attached is a requirement There The Corporation’s long-term debt is unsecured. As at March 31, 2021, principal repayments due in each of the next five years the due in each of principal repayments 31, 2021, March As at is unsecured. long-term debt The Corporation’s as follows: were Note 23 – Long-term debt, continued 23 – Long-term Note the through million $3.0 a premium at debt long-term million of $50 issued the Corporation 2021, 5, On February matures and of 1.51%, rate interest effective 2.20%, an of rate coupon debt issue has a The Finance. Ministry of Saskatchewan 2030. on June 2, Principal repayments Millions of dollars Millions of 86 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Total cashoutflowforleases Lease liabilityprincipalpayments Interest paidonleaseliabilities Thousands of dollars For theyearendedMarch 31, Amounts recognized inthestatement of cashflows Interest onleaseliabilities Thousands of dollars For theyearendedMarch 31, Amounts recognized innetincome Non-current Current –disclosedwithotherliabilities statement of financialposition at March 31, Discounted leaseliabilitiesincludedinthe Maturity analysis-contractualundiscountedcashflows Thousands of dollars As at March 31, Total undiscountedleaseliabilitiesat March 31, recognized innetincome. of contributions andbenefitpayments. Netinterest expense andotherexpenses related tothedefinedbenefitplanare defined benefitliability(asset), takinginto account anychangesinthenetdefinedliability(asset) duringtheperiodas a result the discount rate usedtomeasure thedefinedbenefitobligation atthebeginning oftheannualperiodtothen-net Corporation determinesthenetinterest expense(income) onthenetdefinedliability (asset) for theperiodbyapplying (excluding interest) andtheeffect of theasset ceiling (ifany, excluding interest), are recognized immediately inOCI. The Remeasurements of thenetdefinedbenefitliability, which compriseactuarial gainsandlosses,the returnonplanassets To calculate thepresent valueof economic benefits, consideration isgiventoanyapplicableminimumfunding requirements. of economic benefitsavailableinthe form of anyfuture refunds from theplanor reductions infuture contributions totheplan. method. Whenthecalculation results inapotentialassetfor theCorporation, therecognized assetislimitedtothepresent value The calculation of thenetdefinedbenefitobligation isperformed annuallyby aqualifiedactuaryusingthe projectedunit credit plan assets. have earnedinreturn for theirservice inthecurrent andpriorperiods;discounting that amountanddeductingthefairvalueof The Corporation’s netobligation inrespect of PlanAiscalculated byestimating theamountof future benefitthat employees Defined benefitplans(PlansAandB) Accounting policies contribution pensionplan(PlanC). The Corporation hasadefinedbenefitpensionplan(PlanA), service recognition definedbenefitplan(PlanB),anda Note 25–Employeebenefits Supporting information Note 24 –Leaseliabilities,continued Less thanoneyear More thanfiveyears One tofiveyears

$ $ $ $ $ $ $

37,087 42,861 24,750 19,354 50,774 5,774 6,670 6,805 1,050 1,050 5,755 2021 2021 2021

$ $ $ $ $ $ $

44,095 37,592 26,194 19,333 52,337 6,950 1,115 1,115 6,503 6,810 5,835 2020 2020 2020

SASKTEL 2020/21 ANNUAL REPORT | 87

For employees who retire before the age of 65, but meet other age plus service requirements, either a reduced or unreduced or unreduced either a reduced requirements, but meet other age plus service 65, the age of before For employees who retire Index (CPI) up to a maximum of the Consumer Price subject to annual indexing with are pension may be payable. Pensions 2% per year. The SaskTel defined benefit pension plan provides a full pension at age 65, at age 60 with at least 20 years of service or upon of service at least 20 years at age 60 with 65, at age provides a full pension defined benefit pension plan The SaskTel years of the highest three the average of to be 2% times The pension is calculated service. 35 years of of completion may pension A reduced service. 35 years of up to a maximum of service years of pensionable earnings times the number of met. are criteria service age and years of if certain be opted for Supporting information The 1977. and has been closed to new membership since Plan A, the defined benefit pension plan, is governed by SaskTel Act, Tax the Income under The Pension and Benefit Act, 1992, Saskatchewan, registered defined benefit pension plan is SaskTel auditedPensions Division. Separate – of Saskatchewan by the Financial and Consumer Affairs Authority Canada, and regulated released publicly. and prepared are for the defined benefit plan financial statements The Corporation determines the appropriate discount rates at the end of each reporting period and the indexing assumptions period and the each reporting the end of at rates discount the appropriate determines The Corporation on the Corporation’s have an effect Changes in these assumptions could each actuarial study date. least at at and mortality rates result in a higher rates rates and mortality Lower discount projected benefit obligation. on the an effect cash flows through at the assumptions could, impact of The combined in a lower obligation. while lower indexing assumptions result obligation to the plan. additional contributions some point, require The most significant assumptions used to calculate the net employee benefit plan’s obligation include: the discount rate, the include: the discount the net employee benefit plan’s obligation to calculate The most significant assumptions used the value of used to determine the present rate the interest is rate The discount rate. indexing assumption, and the mortality It is based on the yield to settle employee benefit obligations. of required expects will be the Corporation cash flows that future of the planprofile reflecting the bonds) with terms investments (AA credit-rated income fixed corporate long-term, high-quality, of the plan. liabilities which impacts the future rate inflation the future of estimate members. The indexing assumption is the members. plan expectancy of life liability based on the estimated the future impacts The mortality rate Defined benefit plans (Plans A and B) Short-term benefits and termination benefits and termination Short-term benefits of those benefitsoffer can no longer withdraw the the Corporation of when at the earlier expensed benefits are Termination wholly within 12 not expected to be settled If benefits are a restructuring. for costs recognizes and when the Corporation value. to their present discounted then they are period, the reporting months of and judgments Accounting estimates, age, and mortality retirement indexing assumptions, rates, determine discount to required are and judgments Estimates Corporation’s least annually by the at reviewed by management and are determined are These assumptions rates. independent actuaries. A defined contribution plan is a post-employment benefit under which an entity pays fixed contributions into a separate contributions fixed pays benefit under which an entity contribution plan is a post-employment A defined to the defined contributions for amounts. Obligations to pay further obligation no legal or constructive entity and will have and otherof income statement consolidated the as an employee benefit expense in recognized pension plan are contribution recognized are contributions by employees. Prepaid rendered are periods during which services in the income comprehensive payments is available. in future reduction or a a cash refund that as an asset to the extent for the amount recognized A liability is is provided. service related expensed as the are Short-term employee benefit obligations past of to pay this amount as a result obligation legal or constructive has a present expected to be paid if the Corporation can be estimated. and the obligations by the employee, provided service Defined contribution plans (Plan C) Defined contribution The Corporation’s net obligation in respect of Plan B is calculated by estimating the amount of future benefit that employees that benefit future amount of the by estimating Plan B is calculated of in respect net obligation The Corporation’s defined benefit the of The calculation amount. that periods and discounting in prior their service for in return have earned method. unit credit projected annually by a qualified actuary using the is performed obligation Note 25 – Employee benefits, continued benefits, 25 – Employee Note to past relates benefit that change in resulting the is curtailed, the plan or when changed plan are of the the benefits When and gains recognizes The Corporation in net income. immediately is recognized gain or loss on curtailment or the service occurs. when the settlement defined benefit plan the the settlement of losses on 88 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS At March 31,2021,theweightedaverageduration of the definedbenefitobligation was 10.9 years(2019/20– 10.5 years). major assumptionsusedinthevaluations are asfollows: provided byIFRS. Theestimate, therefore, involvesrisksthat theactualamountmaydiffer materially from theestimate. The of action.Theactuarialassumptionsare basedonmanagement’sexpectations, independentactuarialadvice, andguidance best estimates basedonassumptionsthat reflect themostprobable set of economic circumstances andplanned courses The accounting actuarialvaluation includesaprovision for uncommitted andadhocbenefitincreases, andusesmanagement’s Actuarial assumptions Defined benefitobligation Plan Bisunfunded. TheCorporation expectstopay$1.5 millioninthenextyearrelated toPlanB. The planisinasurplusposition,andtherefore, underthegoingconcern actuarialvaluation, contributions are notrequired. determine theactuarialpresent valueof theaccrued pensionbenefit. plan. Asaresult, employer current service contributions havealsoceased. Avaluation isperformed at leasteverythree yearsto All planmembershavereached themaximumyearsof pensionableservice andare nolongerrequired tocontribute tothe performed asof March 31,2020. actuarial valuation for accounting purposeswasperformed at March 31,2020. Thelatest valuation for fundingpurposeswas contributions reflect actuarialassumptionsaboutfuture investment returns, salaryprojections, andfutureAn service benefits. The Corporation isresponsible for adequately fundingPlanA.Contributionsare determinedbyactuarialvaluations. The Funding service recognition definedbenefit program wascurtailed effective March 19,2005. is payableonretirement. BasedontheCollectiveAgreement betweentheCorporation andUnifor, ratified April22,2005, the Plan B, theservice recognition definedbenefitplan provided a retiringallowance oftwodays’salaryperyear ofservice, which contribution, andindexation policies)of thedefinedbenefitpensionplan. the bestinterests of thedefinedbenefitpensionplanparticipantsandis responsible forsetting certainpolicies(e.g.,investment, representatives, twounionrepresentatives, andanindependentchair. TheSaskTel Pension Board isrequired bylawtoactin The definedbenefitpensionplanisadministered byafive-memberboard (SaskTel PensionBoard), consisting oftwoemployer Note 25–Employeebenefits,continued Future mortality Post-retirement index Expected salaryincrease Inflation rate Discount rate –endof year As at March 31, employee service life Estimated averageremaining

CPM 2014Private (Adjusted100% with Improvement ScaleMI-2017 for malesand110%females) Plan A 1.60% 2.25% 3.10% 2021 – – In Scope:1.0%inthefirstyear, 2.0% perannumthereafter 2.0% perannum Management: 7.6 years Plan B 2.50% – – –

Canadian Pensioner 2014–Private projected generationally withCPM for malesand110%for females Sector MortalityTable at 100% Improvement ScaleB 2020 Plan A 1.60% 2.25% 3.70% – – per annumthereafter In Scope: 0.0%inthe first year, 1.0%inthe second year, 2.0% 2.0% perannum Management: 8.0 years Plan B 3.40% – – –

SASKTEL 2020/21 ANNUAL REPORT | 89 – – – 26 399 264 663 703 (713) (638) 2020 14,475 32,234 18,623 (1,512) 12,913 12,913 12,913 (51,596) Decrease $ $ $ $ $ – 10 457 943 2021 (477) – – 12,913 13,633 69,943 14,830 12,337 12,337 12,337 (1,529) Plan B 696 (97,463) (631) Increase Net defined benefit liability $ $ $ $ $ – – 399 2020 32,234 18,623 50,857 65,944 (31,935) (31,536) (941,044) – (1,026,309) $ $ (11,314) 117,696 (111,544) Decrease – – 457 $ 2021 Defined benefit obligation Defined benefit 14,830 64,925 (34,478) (34,021) (97,463) (82,633) (941,044) (992,773) Fair value of plan assets value of Fair $ $ – Plan A

45,476 – – – 26 (57,180) (98,411) Increase 2020 32,199 32,199 (51,596) (51,570) (67,456) 953,957 $ 1,040,784 $ $ – – – 2021 34,031 34,031 13,633 69,943 83,576 953,957 (66,454) 1,005,110 Defined benefit obligation $ $

- demographic assumptions - financial assumptions Actuarial loss (gain) arising from: Return on plan assets Return income interest excluding -  -  - Effect of asset ceiling limit of asset - Effect The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit for closing balances to the balances the opening from table shows a reconciliation The following liability and its components. Movement in the present value of the defined benefit obligation value of Movement in the present The following illustrates the effect on the obligations of the plans of changing certain actuarial assumptions while holding other while holding actuarial assumptions certain of changing plans of the on the obligations the effect illustrates The following constant: assumptions Note 25 – Employee benefits, continued benefits, 25 – Employee Note analysis Sensitivity For the year ended March 31, For the year ended March dollars Thousands of Balance at April 1, Balance at Included in net income cost service Current Interest cost (income) cost Interest Included in OCI loss (gain): Remeasurement Other Benefits paid Balance at March 31, March Balance at Net defined benefit liability (Plan B) Represented by: Represented Net defined benefit liability (Plan A) Future indexing (0.4% increase and 1% decrease) and increase indexing (0.4% Future Inflation (1% movement) Inflation Salary increase (1% movement) Salary increase Discount rate (1% movement) rate Discount As at March 31, 2021 March As at dollars Thousands of 90 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Public EmployeesPension Planare $20.6 millionfor theyearendedMarch 31,2021(2019/20–$20.8 million). plan isequaltotheCorporation’s required contribution. TheCorporation’s pensioncost andemployercontributions for the earnings, and employees to contribute a minimum of 4.45% of pensionable earnings. The total cost for the defined contribution Plan C, thedefined contribution pensionplan, requires theCorporation to contribute 7.45% of employees’pensionable Defined contributionplans(PlanC) evolve tomatch theliabilitiesof theplan. the overalldemographictrends for theplan.Thisapproach strivestoensure theassetsof thedefinedbenefitpension plan The SaskTel Pension Board employsapension riskmanagementstrategy that addresses continued capitalmarket volatility and objectives of thedefinedbenefitpensionplan’scapitalmanagementtoultimately meetallpensionobligations. statement of specificquality, quantityandrate of return standards. Thepolicyis revisited annuallyto ensure itismeeting the of thePension Fund for thepurposeof managingcapitalassets.Thepolicyprovides theinvestmentmanagerswithawritten The definedbenefitpensionplan’sinvestmentpolicy provides aframework fortheprudentinvestmentandadministration asset mixhasbeenestablished: Taking intoconsideration theinvestmentandriskphilosophyof thedefinedbenefitpensionplan, followingrangeandtarget estate, andpooledfunds.Anyothertypeof investmentisnotpermittedwithoutpriorapproval of theSaskTel Pension Board. receipts, andcapitalshares), U.S. andinternational equities,bondsof Canadianissuers,short-termsecurities,mortgages,real The definedbenefitpensionplan’spermissibleinvestmentsincludeCanadianequities(includingrights,warrants,instalment Net investments Effect of asset ceiling limit Total investments Canadian equities Short-term investments Investments undersecuritieslendingprogram Pooled mortgagefund Pooled bondfunds Non-North Americanpooledequityfunds U.S. pooledequityfund Canadian pooledequityfunds Canadian equities Pooled real estate Short-term investments Asset category Thousands of dollars As at March 31, The assetallocation of thedefinedbenefitpensionplanisas follows: Plan assets Note 25–Employeebenefits,continued Asset category Fixed income Real estate Equities 43–53% 12–20% 26–44% Range Target 50% 15% 35% Actual 49% 15% 36% $ $ 1,030,233 1,004,208 (38,077) 992,156 388,083 168,552 101,949 158,030 26,025 15,299 10,726 99,581 77,636 7,634 2,743 2021 $ $ 942,944 963,987 941,319 340,704 151,502 105,338 167,381 (21,043) 22,668 22,668 92,944 64,059 13,125 6,266 2020 – SASKTEL 2020/21 ANNUAL REPORT | 91

Environmental remediation Environmental to related expenditure, an environmental of when the occurrence is accrued remediation environmental for A provision activities can be reasonably remedial of and the costs probable is considered the Corporation, or past activities of present based on are identified sites. These provisions at and remediation investigations for include costs These estimates estimated. fair value in net at recorded and are laws and regulations environmental current considering management’s best estimate on an ongoing basis. Changes in the expenditures environmental future of its estimates reviews The Corporation income. in net recognized are rate, cash flows, as well as changes in the discount future amount of timing and estimated and assuming various litigation and by analyzing potential outcomes a provision the amount of estimates The Corporation from whether a loss is probable of the time. The determination is available at that based on information settlement strategies, judgment. requires is likely resources of and whether an outflow claims and legal proceedings The calculations of fair value are based on detailed studies that take into account various assumptions regarding the anticipated various assumptions regarding into account take based on detailed studies that fair value are of The calculations Decommissioning inflation. of future and an estimate of decommissioning cash flows, including the method and timing future flows, as well as cash future timing and amount of the estimated and any changes in periodically reviewed are provisions the liability and the related of in the carrying amount or decrease as an increase recognized are rate, changes in the discount immediately. in net income recognized the changes are asset. If the asset is fully depreciated, and judgments Accounting estimates, the remediation, and environmental decommissioning liabilities for future the of Judgment is involved in the estimation to determine the rates factors and discount as well as inflation decommissioning, the expected period until of determination the provisions. value of present Decommissioning provisions plant and property, of with the decommissioning associated obligation is a legal or constructive provision A decommissioning fair of estimate if a reasonable in the period incurred provisions decommissioning recognizes equipment. The Corporation antennae, and towers, to decommission provisions recognizes be determined. The Corporation value) can value (net present is cost decommissioning estimated The fair value of service. for the period in which the facility is ready fuel storage tanks in plant and equipment and right- of property, part and included as amount capitalized with an offsetting a provision as recorded expense accretion time by calculating the passage of periodically for increased are provisions assets. Decommissioning of-use asset. related of the useful life over the estimated depreciated costs are capitalized The offsetting on the provision. Legal claims the legal claims, of other possible claims. In respect certain of in various legal claims and is aware is involved The Corporation presently information legal assessments, taking into account when warranted, after establishes provisions, the Corporation with legal claims cannot be cash outflows associated The timing of recourse. available, and the expected availability of determined. reasonably When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the party, a third from recovered to be expected are to settle a provision required benefits the economic When some or all of the receivable of and the amount received will be reimbursement that it is virtually certain as an asset if is recognized receivable reliably. can be measured immediately. income Note 26 – Provisions Note policies Accounting can that obligation legal or constructive has a present Corporation a past event, the of result as a if, is recognized A provision the timing to settle the obligation, required be benefits will of economic an outflow that and it is probable reliably, be estimated reflects that rate at a cash flows future the expected discounting determined by are Provisions which is uncertain. of or amount to settle best estimate at the or obligation, risks specific to the money and the of the time value of assessments market current expense. as finance is recognized provisions on the discount of period. The unwinding the reporting the end of at the obligation 92 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Current portion-disclosedwithotherliabilities Balance at March 31,2021 Settled duringtheperiod Accretion expense Change inassumptions Other provisions made Long-term portion Inflation rate Discount rate Thousands of dollars financial leverage andinturn,itsfinancialflexibility. measures theamountof debtinacorporation’s capital structure. The Corporation usesthismeasure inassessingthe extentof The Corporation closelymonitors itsdebtlevelutilizingtheratio asaprimaryindicator of financial health.Thedebtratio Saskatchewan Provincial budgetprocess onanannualbasis. the Corporation are determinedbytheshareholder onanannualbasis. DividendstoCICare determinedthrough the Due toitsownershipstructure, theCorporation has noaccess tocapitalmarkets for internalequity. Equityadvances in The Corporation hasreceived anequityadvance from CICtoform itsequitycapitalization. Supporting information – government funding). available tootherpartiesfor aspecificpurpose,thefundingis recorded asagovernmentgrant(seeNote 22–Deferred income comply withcertain pastorfuture conditions relating totheoperating activitiesof theCorporation, andthefundingcould be conditions relating totheoperating activitiesof theentity, thefundingisrecorded asanequityadvance. Ifthe Corporation must the fundingwouldbeavailabletootherpartiesfor aspecificpurpose.Ifthere isno requirement to comply with certain whether thefundingisatransactionwithequityholderin theircapacityasanequityholder, e.g.,equityinjection, orwhether The Corporation periodicallyreceives fundingfrom itsparent andsoleequityholder, CIC. Funding isfirstanalyzed todetermine Accounting estimates, andjudgments Note 27–Equityadvanceandcapitaldisclosures is asfollows: Sensitivity of provisions tochangesinthediscount rate andinflation rate onthe recorded liabilityas at March 31,2021, Sensitivity of assumptions aside bytheCorporation tosettlethedecommissioning provisions. provisions. Thecosts of the decommissioning provisions willbeincurred between2023and2071.Nofundshavebeenset Discount rates basedontheGovernmentof Saskatchewan bondyieldswere usedtocalculate the carryingvaluesof the Assumptions Balance at April1,2020 Thousands of dollars Supporting information Note 26–Provisions,continued Undiscounted cashflows(thousands) Long-term inflation rate Discount rate, endof period $ 0.5% increase Decommissioning provisions (647) 851 Decommissioning 0.5% decrease 0.68% -2.95% $ $ $ provisions $12,827 2.00% 6,073 6,467 6,467 (124) 2021 (737) 210 744 153 155 155 – Environmental $ $ provisions 420 (23) 397 397 – – – – $ $ Legal claims 1,443 1,443 1,443 – – – – – $ $

6,864 8,307 6,493 1,443 1,653 Total (147) 153 155 SASKTEL 2020/21 ANNUAL REPORT | 93 204 (559) 2020 2020 4,718 47.8% 17,221 (4,406) (5,722) (1,078) (3,803) 188,851 198,490 (15,467) (12,505) (38,618) 1,082,669 1,181,988 2,264,657 1,109,529 $ $ $ $ 733 199 2021 2021 (390) (788) 50.4% 84,619 23,694 25,057 (1,250) 219,892 (15,074) (42,823) (40,334) (10,976) 1,208,185 1,188,532 2,396,717 1,096,606 $ $ $ $ 16 23 Note (b)

(a) Cash Contract assets Contract costs and other payables Trade Contract liabilities Other liabilities Prepaid expenses Prepaid Other Inventories Trade and other receivables Trade

Equity includes equity advances, accumulated other comprehensive other comprehensive accumulated Equity includes equity advances, the period. the end of earnings at and retained income Province of Saskatchewan's equity Saskatchewan's of Province Capitalization Debt ratio Notes payable Sinking funds Less: a) Net change in non-cash working capital 31, For the year ended March dollars Thousands of to operations Net change in non-cash working capital balances related Note 28 – Consolidated statement of cash flows – supporting information statement Note 28 – Consolidated (a) Net debt excludes lease liabilities. (a) Net debt excludes (b)  As at March 31, March As at dollars Thousands of The debt ratio is as follows: The debt ratio The Corporation made no changes to its approach to capital management during the year. to capital management during the approach made no changes to its The Corporation debt Long-term The Corporation raises most of its capital requirements through internal operating activities and long-term debt through debt through activities and long-term internal operating through its capital requirements raises most of The Corporation of the Province of advantage to take Corporation allows the borrowing of This type Finance. Ministry of the Saskatchewan rates. interest attractive at financing and receive rating credit strong Saskatchewan’s The Corporation reviews the debt ratio targets of all its subsidiaries on an annual basis to ensure consistency with industry consistency to ensure on an annual basis all its subsidiaries of targets the debt ratio reviews The Corporation are subsidiaries for debt ratios target capital spending. The for plans corporations’ includes subsidiary review This standards. the for debt to equity ratio a weighted average to compile debt ratios uses targeted The Corporation by the Board. approved was 51.6%. 2020/21 for ratio The target entity. consolidated Note 27 – Equity advance and capital disclosures, continued capital disclosures, and advance 27 – Equity Note to withstand ability the Corporation’s impair may that burden debt excessive an indicates to target relative high a ratio Too lease liabilities, as net debt, excluding is calculated The ratio payment obligations. and still meet fixed in revenue downturns the year. of the end at capitalization divided by Net debt 94 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Balance at March 31,2020 Total otherchanges Amortization of netdiscount onlong-termdebt New leasesandassumptionchanges Sinking fundvaluation adjustments Sinking fundearnings Dividend declared Other changes Dividends paid Total changesfrom financingcashflows Instalments Repayment of borrowings Proceeds from loansandborrowings Changes from financingcashflows Balance at April1,2019 b) Reconciliation of changesinliabilitiestocashflowsarisingfrom financingactivities Note 28–Consolidated statement of cashflow–Supportinginformation, continued Proceeds from loansandborrowings Changes from financingcashflows Balance at April1,2020 Thousands of dollars Repayment of borrowings Sinking fundredemptions Instalments Total changesfrom financingcashflows Dividends paid Sinking fundearnings Dividend declared Other changes Sinking fundvaluation adjustments New leasesandassumptionchanges Amortization of netpremium onlong-termdebt Balance at March 31,2021 Total otherchanges $ $ $ $ (198,490) (198,490) (176,021) Assets (10,989) (84,619) (14,666) 119,265 133,931 Sinking (12,915) (12,915) (5,394) (9,554) (5,425) (4,129) funds 5,595 – – – – – – – – – – – –

$ $ $ $ Long-term 1,096,606 1,109,529 1,109,529 1,003,280 (276,600) (12,859) 105,918 105,918 263,741 debt (64) (64) 331 331 – – – – – – – – – – – – – –

$ $ $ $ (834,537) (760,714) 865,578 payable 219,892 188,851 756,270 193,295 188,851 (4,444) 31,041 Notes Liabilities – – – – – – – – – – – – – – – – –

$ $ $ $ liabilities (5,835) 44,095 47,310 44,095 42,861 (5,755) (5,755) (5,835) Lease 2,620 2,620 4,521 4,521 – – – – – – – – – – – – – – – $ $ $ $ (110,499) (110,499) Dividend (107,230) (107,230) payable 107,798 107,798 32,688 117,739 117,739 24,880 25,448 25,448 – – – – – – – – – – – – – – – $ $ $ $ (1,116,892) 1,306,618 1,092,744 1,169,433 (766,549) 1,129,319 1,169,433 (110,499) (107,230) (24,506) 862,188 (10,989) (14,666) Total 116,802 107,798 133,931 (12,915) 101,195 117,739 (5,425) (4,129) 21,193

2,620 5,595 4,521 (64) 331 SASKTEL 2020/21 ANNUAL REPORT | 95 Foreign currency risk suppliers and short-term transactions with foreign dollars, through risk, primarily U.S. is exposed to currency The Corporation of in excess fluctuations 31, 2021, currency March at constant Assuming all other variables remain commitments. foreign The Corporation may be exposed to interest rate risk on the maturity of its long-term debt. However, in the current interest rate interest in the current However, its long-term debt. of risk on the maturity rate may be exposed to interest The Corporation offset interest to contracts in place has no financial the Corporation As a result, low. considered these risks are environment, changes on net income. rate interest the impact of a sensitivity analysis of 31, 2021, and has not provided March risk as of rate The Corporation has on deposit with the Province of Saskatchewan, under the administration of the Ministry of Finance, Finance, the Ministry of of under the administration Saskatchewan, of has on deposit with the Province The Corporation 31, long-term debt issues. At March certain for million) in sinking funds, which is required million (2019/20 – $198.5 $84.6 to and Federal government bonds with varying maturities 2021, the GRF has invested these funds primarily in Provincial conditions. Due to the and market profile managed based on this maturity and they are debt maturities with related coincide has no financial instruments in result, the Corporation As a low. considered these risks are of the assets held, profile maturity rate of interest of the impact a sensitivity analysis 31, 2021 and has not provided of March as risk rate interest to offset place changes on net income. Interest rate risk rate Interest rate to interest related financial instruments changes in the value of loss from the potential for risk represents rate Interest sinking fund investments and debt refinancing. risk primarily impacts the value of rate movements. Interest Market risk Market affected Value can be by financial instruments. changes in the value of loss from the potential for risk represents Market and equity prices. rates, exchange foreign rates, changes in interest Supporting information of a number utilizes The Corporation rates. and interest rates exchange foreign in to fluctuations is exposed The Corporation with these financial instruments the risk associated mitigates The Corporation exposures. financial instruments to manage these to reporting internal monitoring, and compliance exposure, limits on use and amount of policies, Board-approved through from the prior period. significantly financial risks have not changed The Corporation’s senior management and the Board. Derivatives may be embedded in hybrid contracts that also include a non-derivative host. If a hybrid contract contains a host contains host. If a hybrid contract a non-derivative also include that in hybrid contracts may be embedded Derivatives contract asset. If a hybrid contract is classified as a financial 9, the entire of IFRS within the scope is a financial asset that whenderivative as a separate is treated an embedded derivative IFRS 9, of is not an asset within the scope a host that contains the host instrument, when the embedded to those of not clearly and closely related and risks are characteristics the economic fair valueat is not measured contract and the combined a stand-alone derivative, terms as those of has the same derivative at fair value with typically measured are or loss. These embedded derivatives in profit with changes in fair value recognized in net income. subsequent changes recognized Financial assets and liabilities are offset, and the net amount presented in the statement of financial position when, and onlyof financial in the statement net amount presented and the offset, liabilities are Financial assets and the assetrealize or to and intends either to settle on a net basis the amounts offset has a legal right to when, the Corporation and settle the liability simultaneously. The Corporation derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it the asset expire, from contractual rights to the cash flows financial asset when the a derecognizes The Corporation in which substantially all theflows on the financial asset in a transaction cash the contractual the rights to receive transfers created or is financial assets that in transferred Any interest transferred. are the financial asset of ownership of risks and rewards or liability. asset as a separate is recognized by the Corporation retained Financial instruments recorded at fair value on an ongoing basis are remeasured at each reporting date and changes in the fair and changes in date each reporting at remeasured basis are fair value on an ongoing at recorded Financial instruments or OCI. in either net income recorded value are Note 29 – Financial instruments and related risk management risk and related instruments 29 – Financial Note policies Accounting at fair valuestatements financial consolidated liabilities in the assets and financial financial initially recognizes The Corporation liabilities assets or financial to financial related costs Transaction costs. transaction adjusted for the transaction price) (normally financialof and sales way purchases Regular in net income. immediately recognized or loss are profit through fair value at on the trade date. for accounted assets are 96 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Allowance fordoubtfulaccounts increased for theyearended March 31,2021, mainlyduetotheimpactof theCOVID-19 pandemicasnotedbelow: uncollectible, andfuture collection policyandeconomic environment impacts.Theallowance for doubtfulaccounts hasbeen on ananalysisof theagingof customeraccounts receivable, anestimate of outstandingamountsthat are considered tobe The allowance for doubtfulaccounts, whichprovides anindication of potentialimpairmentlosses,isreviewed regularly based conditions are suchthat the actuallossesare likely to begreater orlessthansuggestedbyhistoricaltrends. and theamountof lossincurred, adjustedfor management’sjudgmentastowhethercurrent orfuture economic and credit In assessingcollective impairment,theCorporation useshistoricaltrends of theprobability of default,timingof recoveries within eachsegment. characteristics, specificallybasedonbusinesssegment,anaging of theaccounts withineachsegment,anddefaultprobabilities that are notindividuallysignificantare collectively assessed for impairmentbygrouping together receivables withsimilarrisk specifically impaired are then collectively assessed for anyimpairmentthat hasbeenincurred butnotyetidentified. Receivables All individuallysignificant receivables are assessed for specificimpairment.Allindividuallysignificant be receivables foundnotto primarily throughout Saskatchewan. Trade andotherreceivables andunbilledrevenue are diversifiedamongmany residential, farm,and commercial customers The Corporation considers evidence of impairmentfor tradeandotherreceivables at bothaspecificasset and collective level. Trade andotherreceivables The carryingamountof financialassets represents themaximumcredit exposure as follows: other receivables, includingdevice financing receivables, unbilled revenue, contract assets,sinkingfunds,andinterest receivable. or otherconditions. TheCorporation doesnothavematerial concentrations of credit risk.Current credit riskrelates totradeand industry characteristicsthat causetheirabilitytomeetcontractual obligations tobesimilarlyaffected bychangesineconomic financial loss.Concentration of credit risk relates to groups of customersor counterparties that havesimilareconomic or Credit riskisthe that onepartytoatransactionwillfaildischarge anobligation andcausetheotherpartytoincura Credit risk had noforeign currency derivatives outstanding.TheCorporation doesnotactivelytradederivative financialinstruments. of derivative financialinstrumentstomanagetheseexposures whendeemedappropriate. AtMarch 31,2021,theCorporation strengthening could havea$17.9 millionfavourableeffect oncashflowandnetincome. TheCorporation usesa combination versus theU.S. dollarexchange rate could havea$17.9 millionunfavourable effect oncashflowandnetincome whilea20% 20% wouldhaveamaterial impactonthecashflow of theCorporation. Specifically, a20%weakening intheCanadian dollar Note 29–Financialinstruments andrelated riskmanagement, continued Balance at March 31, Provisions for losses Recoveries Less: accounts writtenoff Balance at April1, Thousands of dollars As at March 31, Sinking funds Contract assets Trade andotherreceivables Cash Thousands of dollars As at March 31, Note 16 11 8 $ $ $ $ 390,470 183,194 (7,954) 23,694 84,619 98,963 7,578 8,322 4,604 2,606 2021 2021 $ $ $ $ 442,460 198,490 142,860 (10,805) 17,221 83,889 2,606 6,152 4,863 2,396 2020 2020 SASKTEL 2020/21 ANNUAL REPORT | 97 936 2020 2020 2020 5,387 2,422 2,192 1,461 (2,606) 91,267 13,776 (1,667) (1,461) 62,620 22,730 85,350 83,889 112,852 110,246 $ $ $ $ $ $ 2021 2021 2021 8,977 4,540 4,087 1,461 3,986 2,153 94,166 (7,578) 68,126 32,990 98,963 (3,294) (2,153) 111,770 104,192 101,116 $ $ $ $ $ $ 8 8 Note Allowance for contract asset credit losses Allowance for contract asset credit The allowance for contract asset credit losses and the aging of contract assets are detailed as follows: are assets contract losses and the aging of asset credit contract for The allowance The Corporation maintains allowances for lifetime ECL related to contract assets. Current economic conditions, historical conditions, economic Current assets. to contract related ECL lifetime for allowances maintains The Corporation all are asset arose which the contract business from if available), and the line of reports, agency (including credit information when determining whether to write considered The same factors are impairment allowances. when determining considered contract assets. for to the impairment allowance amounts charged off Contract assets the impairment of assessment of assets based on the related contract for impairment of evidence considers The Corporation contract and therefore receivables, Trade and other collective level. both a specific asset and at trade and other receivables Credit Saskatchewan. customers primarily throughout commercial and residential, farm, diversified among many assets, are also our customer base. The Corporation and diversity of managed by the size assets is inherently with contract risk associated extended when deemed necessary. credit customers and limits the amount of of evaluations credit of a program follows Customer accounts receivable Customer Note 29 – Financial instruments and related risk management, continued risk management, and related instruments 29 – Financial Note is detailed as follows: receivable customer accounts of The aging Transferred to accounts receivable allowance receivable to accounts Transferred Contract assets 31, March As at dollars Thousands of Balance at April 1, Balance at Additions 31, March Balance at period Amortization Within 1 year As at March 31, March As at dollars Thousands of Trade receivables not past due receivables Trade past due receivables Trade 30–60 days 61–90 days than 90 days Greater receivable customer accounts Gross than 1 year Greater assets contract Gross losses credit for Allowance As at March 31, March As at dollars of Thousands Allowance for doubtful accounts for Allowance Net contract assets Net customer accounts receivable Net customer accounts 98 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Trade andotherpayables Notes payable as beingrealizable inanimmediate settlementof theinstruments. Therefore, duetotheuseof judgmentandfuture-oriented information, aggregate fairvalueamountsshouldnotbeinterpreted concerning theamountandtimingof estimated future cashflowsanddiscount rates that reflect varyingdegrees ofrisk. estimates usingpresent valueandothervaluation techniques,whichare significantly affected bytheassumptions used current markets for instrumentswith similarcharacteristics,suchasrisk,principal,andremaining maturities. Fair valuesare Fair valuesare approximate amountsat whichfinancialinstruments could beexchanged betweenwilling partiesbasedon Fair value a) Contractualcashflows for long-termdebtincludeprincipalandinterest paymentsbutexclude sinkingfundinstalments. Long-term debt(a) As at March 31, 2020 Trade andotherpayables Long-term debt(a) As at March 31,2021 Thousands of dollars The following summarizes thecontractual cashflows of theCorporation’s financialliabilities: anticipates itwillbeabletorefinance long-termdebtuponmaturity. Sufficient operating cashflows areexpectedtobegenerated tofundtheshort-term contractual obligations andtheCorporation is aProvincial Crown corporation andassuchhasaccess tocapitalmarkets through theSaskatchewan Ministryof Finance. Liquidity riskisthethat theCorporation isunabletomeetitsfinancial commitments astheybecome due.TheCorporation Liquidity risk financial transactions. In addition,theCorporation maintainscredit policiesandlimitsinrespect toshort-terminvestmentsandcounterparties to low credit riskand nolossallowance isdeemednecessary. addition, there have beennodefaultsof assetsheldwithinthesinkingfund.Asaresult, sinkingfundsare considered tohave within thesinkingfundsconsist primarilyof Provincial andFederalgovernmentbonds,whichare rated investmentgrade.In “investment grade”.TheCorporation considers thistobeAAorhigherperDBRSAaMoody’s.Investmentsheld The Corporation considers adebtsecuritytohavelowcredit riskwhenitscredit riskrating isequivalenttothedefinition of The credit riskrelated tosinkingfundsisassessedbasedonthecredit riskrating of theinvestmentsheldinsinkingfunds. Sinking funds Note 29–Financialinstruments andrelated riskmanagement, continued Notes payable $ $ $ $ 1,488,488 1,096,606 1,448,682 1,109,529 Carrying Carrying 171,990 219,892 amount 150,302 188,851 $ $ $ $ 2,296,971 1,905,045 2,124,863 1,785,328 171,990 219,936 150,302 189,233 Total $ $ $ $ 410,662 171,990 219,936 513,327 150,302 189,233 173,792 months 18,736 0–6

$ $ $ $ 144,720 144,720 months 18,736 18,736 7–12 Contractual cashflows – – – – $ $ $ $ 37,473 37,473 30,923 30,923 years 1–2 – – – – $ $ $ $ 208,793 208,793 141,434 141,434 years 3–5 – – – – $ $ $ $ More than 1,621,307 1,621,307 1,294,459 1,294,459 5 years – – – –

SASKTEL 2020/21 ANNUAL REPORT | 99 17,221 188,851 150,302 198,490 142,860 Fair value Fair 1,225,745 $ 2020 17,221 amount 188,851 150,302 198,490 142,860 Carrying 1,109,529 $ 84,619 23,694 219,892 171,990 183,194 Fair value Fair 1,161,618 $ 2021 84,619 23,694

amount 219,892 171,990 183,194 Carrying 1,096,606 $ N/A N/A Level 2 Level Level 2 Level Level 2 Level Level 1 Level Fair value Fair hierarchy (b) hierarchy FVOCI Amortized cost Amortized Amortized cost Amortized Amortized cost Amortized Amortized cost Amortized Amortized cost Amortized Classification (a) Classification 8 23 18 16 Note

1.0% of property, plant and equipment expenditures (2019/20 – 1.9%). plant and equipment expenditures property, of 1.0% Note 29 – Financial instruments and related risk management, continued risk management, and related instruments 29 – Financial Note Long-term debt Long-term Notes payable Financial liabilities and other payables Trade Sinking funds Financial assets Cash Thousands of dollars of Thousands and other receivables Trade Routine operating transactions with related parties were conducted in the normal course of business and were accounted for accounted business and were of in the normal course conducted parties were transactions with related operating Routine transactions with the Corporation’s amount of 31, 2021, the aggregate amount. For the year ended March the exchange at expenses (2019/20 – operating of 10.6% (2019/20 – 8.1%), revenue of 8.6% approximately entities are other government-related 11.3%), and The Corporation is indirectly controlled by the Government of Saskatchewan through its ownership of the Corporation’sof its ownership through Saskatchewan of by the Government controlled is indirectly The Corporation Crown transactions with various Saskatchewan are financial statements Included in these consolidated CIC. parent, by the control common by virtue of to the Corporation related and commissions ministries, agencies, boards, corporations, and significant influence control and enterprises subject to joint corporations and non-Crown Saskatchewan Government of has elected to entities”). The Corporation to as “government-related referred (collectively Saskatchewan by the Government of entities to limit the extent of , which allows government-related Party Disclosures Related under IAS 24 a partial exemption take entities. party transactions with government or other government-related about related disclosures Note 30 – Related party transactions Note 30 – Related Embedded derivatives 31, 2021. March and 31, 2020, March as at derivatives with embedded had no contracts The Corporation There were no financial instruments measured at fair value using Level 3 inputs in 2019/20 or 2020/21 and no items transferred and no items transferred Level 3 inputs in 2019/20 or 2020/21 at fair value using no financial instruments measured were There between levels in 2019/20 or 2020/21. Investments carried at fair value through other comprehensive income other comprehensive fair value through Investments carried at Sinking funds usingof Finance Ministry by the Saskatchewan is determined OCI, funds, classified as fair value through sinking The fair value of for these securities. pricing secondary reflect the extent possible, valuations dealers. To by investment provided information Cash, trade and other receivables, trade and other payables, and notes payable Cash, trade and other receivables, Financial instruments measured at amortized cost amortized at Financial instruments measured Long-term debt of rate at the market cash flows, discounted future value of debt is determined by the present long-term The fair value of debt instruments. Saskatchewan of the equivalent Province for interest a) Classification details are: FVOCI – fair value through OCI. – fair value through FVOCI details are: a) Classification to fair value measurements. the policies related discussion of for presentation 2 – Basis of b) See Note fair their payable approximate trade and other payables, and notes cash, trade and other receivables, The carrying values of these financial instruments. of values due to the short-term maturity As at March 31, March As at Fair value of financial assets and liabilities financial value of Fair 100 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As at March 31,2021,theCorporation hasthefollowing significant commitments: Commitments Note 31–Commitmentsandcontingencies Key managementpersonnelcompensation iscomposed of: defined benefitpensionora contributionpension,andaservice recognition defined benefitpension. In additiontotheirremuneration, theCorporation alsoprovides non-cashbenefitstodirectors andexecutive a officers, either Key managementpersonnelcompensation plan intheamountof $0.3 milliononacost recovery basisfor theyearendedMarch 31,2021(2019/20–$0.3 million). In addition,theCorporation provided managementandadministrative services totheCorporation’s definedbenefitpension Note 30–Related partytransactions,continued or results of operations. management that theirresolution willnothaveamaterial adverseeffect ontheCorporation’s consolidated financialposition with respect toclaimsandlitigation pendingat March 31,2021,cannotbepredicted withcertainty, itistheopinionof In thenormalcourse of operations, theCorporation becomes involvedinvarious claimsandlitigation. Whilethefinaloutcome Supporting information Corporation’s consolidated financialstatements. appropriate, however, thepotentialfor large liabilitiesexistsandtherefore theseestimates could haveamaterial impactonthe effects are matters for judgment.Where noamountsare recognized, suchamountsare contingent, anddisclosure maybe whether recognition ordisclosure intheconsolidated financialstatements is required, andestimation of potentialfinancial of theoutcome of suchuncertain events(i.e.,beingvirtuallycertain, probable, remote orundeterminable),determination of The Corporation becomes involvedinvariouslitigation andregulatory matters intheordinary course of business.Prediction Accounting estimates, andjudgments Contingencies scheduled for mid-2021. General for Canadaincompliance withtherequirements of theMobileBroadband Services –3500MHzBandAuction The Corporation hasissuedanirrevocable standbyletterof credit intheamountof $6.8 million infavourof theReceiver Post-employment benefits–defined contributionplans Short-term employeebenefits Thousands of dollars For theyearendedMarch 31, • • Capital projects $43.5 million(2019/20–$18.6 million) Operating activities$103.3 million(2019/20–$87.6 million)

$ $ 4,857 4,587 2021 270 $ $ 5,156 4,875 2020 281

SASKTEL 2020/21 ANNUAL REPORT | 101 67 2020 49,537 124,221 173,825 $ $ 80 2021 66,430 146,531 213,041 $ $ the unsatisfied portions of performance obligations related to contracts with a duration of one year or less; or of one year contracts with a duration to related obligations of performance portions the unsatisfied with the corresponds recognizes revenue the Corporation the where obligations of performance portions the unsatisfied to the customer. amount invoiced • • Between 1 and 3 years The Corporation has elected to utilize the following practical expedients and not disclose: practical expedients the following has elected to utilize The Corporation As at March 31, March As at dollars of Thousands 1 year or less than 3 years Greater Note 32 – Future performance obligations performance 32 – Future Note partially or to unsatisfied related future, in the to recognize expects Corporation the that revenue shows the below The table the performance of transaction price of the portion 31, 2021. The unsatisfied at March as obligations performance satisfied as follows: be recognized is expected to which to monthly services, relates obligations 102 | BOARD OF DIRECTORS Board of Directors before assuminghiscurrent role. positions withintheorganization 1996, andholdingavarietyof beginning hiscareer there in Lights CasinoinPrince Albert, Manager of theNorthern Richard Ahenakew istheGeneral Board Member Richard Ahenakew and institutionalinvestorsina build long-termvaluefor retail an uncompromising visionto than 25yearsago,Westcap has local companies. Foundedmore in capitalfor investmentinto invested inexcess of abillion manager that hasraisedand capital andprivate equityfund Mgt. Ltd., aleadingventure Officer, andChair of Westcap President, ChiefExecutive Grant J. Kook isFounder, Chair of theBoard Grant J. Kook

and Saskatoon) since 1992. the RamadaHotels(Regina Chief Executive Officer of has beenthePresident and investor syndicated fund,and Group Ltd., aninternational of CheungOnInvestments and ChiefExecutive Officer Funds. GrantisalsoPresident backed Private EquityBuyout Inc. andaseriesof institutional Golden OpportunitiesFund Retail Venture CapitalFund, including Saskatchewan’s first broad rangeof investmentfunds, and youthmentorship.In2012, studies, post-secondary schooling, recognizing hisworktopromote with anhonorarydiploma Polytechnic presented Richard In 2011,Saskatchewan milestone withinCanada. provincial ChamberBoard, a background appointedtoa President of First Nations the distinctionof beingthefirst more thaneightyears,andhas Chamber of Commerce for also servedontheSaskatchewan community initiatives. Hehas insight tobusinessstrategies and Developments Board, offering serve ontheAhtahkakoop Cree Richard hasbeenappointedto Ahtahkakoop FirstNation, A proud memberof the Association (CVCA), pastmember Venture Capital andPrivate Equity past Vice President of theCanadian Investment Committee.Heisthe Saskatchewan Teachers’ Federation Health Authority, and the Saskatchewan, Saskatchewan 3sHealth Shared Services Saskatchewan BlueCross and traded companies, including numerous private andpublicly Grant servesontheboards of Commissioners asChairperson. Prince AlbertBoard of Police the of Directorson andserved the Saskatchewan CAABoard presently anactivememberof past Chairperson.Heisalso volunteer, Board Member, and throughout theprovince asa with theRed Cross Society Richard hasalsoworked closely advocate for MissionZero. strong a is Charter signing and Albert mini Safety Prince the for instrumental intakingthelead workplace safety, Richard was Medal of Distinction.Recognizing Elizabeth IIDiamondJubilee country, andreceived theQueen his community, province, and outstanding contributions within he wasrecognized for his of the Saskatchewan-Asia of theSaskatchewan-Asia Association, andwastheCo-chair of theWorld Entrepreneurs II DiamondJubilee Merit, 2012QueenElizabeth 2013 Saskatchewan Order of Grant isarecipient of the Hockey Hallof Fame. Member of theSaskatchewan University Cup,andpastBoard Chair of 2013and2014 CIS of 2012TimHortonsBrier, Hockey Championship,Director for 2010CanadianWorld Junior Vice President of Sponsorship and 2004CanadianNokiaBrier, 2006 PotashCorp Vanier Cup, Kids, SponsorshipChairfor the Mike Weir MiracleGolfDrivefor Committee Memberof the of Saskatchewan, Executive Children’s HospitalFoundation as Voluntary PastChairof the organizations, includingserving He isactiveinmanycommunity Advisory Council.

warplane memorabilia. of vintagehistorybooksand with hisfamilyandisacollector Richard enjoysspendingtime of BusinessExecutive certificate. certificate, andaQueen’sSchool Nevada GamingManagement certificate, aUniversity of Reno & Associates Management College andhasaP.A. Douglas Saskatchewan IndianFederated Richard studiedat the Lights CasinoPow Wow. President andAdvisorfor Northern Board of Directors andas for thePrince AlbertTourism He hasalsoservedasanadvisor Business Magazine. Men bySaskatchewan the Province’s MostInfluential recognized in2008asoneof Year in1998and2003, andwas nominee for Entrepreneur of the of You Award, Ernst &Young 2008 B’nai Brith–We are Proud Tourism Leadership award, the recipient of the2014 Saskatoon in Saskatchewan. Heisalsothe ABEX BusinessLeader of theYear and wasrecognized asthe2018 Centennial of Saskatchewan, Commemorative Medalfor the Commemorative Medal,and SASKTEL 2020/21 ANNUAL REPORT | 103

and running shoes! the NSBA, she served as a Director a Director the NSBA, she served as 2015–2021, and has served from Development on the Economic she joined Committee. In 2019, for Directors of the Board and Blue Cross Saskatchewan serves as a member of currently Committee the Compensation the Corporateand as the Chair of Committee. Social Responsibility between JoeAnne resides Saskatoon, Calgary, Vancouver, and Winnipeg during the Regina, find workweek. Most weekends her enjoying the beautiful city of and with her family, Saskatoon an ever- making good use of bicycles of collection growing learning systems, and library systems. and discovery search She has taught Management as an courses and Marketing business strategy instructor of decision-making atand strategic Business. of School the Edwards and up in Regina Rachel grew Osler, of a resident is currently She is passionate Saskatchewan. about the arts and may be seen dance flamenco in a variety of Saskatoon. around performances Swift Current Library Board. Library Board. Current Swift the active in also been Joel has kids’ coaching local community and basketball. lacrosse, hockey, a global membership of leading a global membership of organizations. IT service recognized JoeAnne has also been the by CDN Magazine as one of Canada top 10 women in IT in with the and by e-ChannelNews in Technology 2020 Women (WIT) award. JoeAnne was nominated In 2016, completed and successfully at the Quantum Shift Program Business, the Ivey School of as well as the Institute of Directors Directors’ Corporate the through Program Education Business. School of Edwards As a long-time member of Business Association, Saskatoon’s designation from The Directors The Directors from designation McMaster College through University and the Conference is an Canada. She of Board the of graduate and B.Sc. M.B.A. and Saskatchewan University of diploma a postgraduate received Technology (PgD) in Software Calgary. the University of from a director Rachel was previously the University and manager at overseeing Saskatchewan, of for teams responsible of improvement continuous web applications services, shared and development, teaching and in 2006. He also completed the completed He also in 2006. Program Education Directors of the Institute through (ICD.D.) in 2017. Directors Corporate on numerous Joel has served including boards, community the Swift of acting as President Party Saskatchewan Current Constituency Association, the the Elmwood Golf Club, and the Appeal Board, Water

Rachel Heidecker Board Member is a leader Rachel Heidecker and in business strategy specializing transformation, innovation, in technology, management, and marketing. executive,She is an experienced with and strategist manager, in ICT. experience 20 years of believer in Rachel is a strong thinking, continuous creative results, measured improvement, and enabling business through Rachel obtained technology. (C.Dir.) Director her Chartered JoeAnne Hardy Board Member is the President JoeAnne Hardy Inc. WBM Technologies of and the She first joined WBM industry Technology Information offices WBM’s Today, in 1996. Canada employ in Western 400 team members focused on delivering technology the country. solutions across Born and raised in Saskatchewan, JoeAnne has served in various in the North leadership roles including American IT industry, terms as consecutive three X Alliance, the Trust of President with an IT industry association Joel Friesen Joel Member Board been a partner has Joel Friesen & Company law with Anderson 2013, since Current Swift firm in joined the firm in having initially this, he completed Prior to 2008. after in Regina his articles (with his Commerce completing at Distinction) and Law degrees Saskatchewan the University of 104 | BOARD OF DIRECTORS a Bachelorof Commerce designations since completing Jerri Hobackhasearnedseveral Board Member Jerri Hoback career inthelegalcommunity. she establishedasuccessful returned toSaskatoon where North Battleford. In1979, she Reeves BusinessCollegein Saskatchewan, Valerie attended Born andraisedinrural serving 12yearsasamember. McKercher LLPinSaskatoon after from theManagementTeam at Valerie Makela recently retired Board Member Valerie Makela firm’s 100-plus-yearhistory. with McDougallReady inthe woman toachievepartnership LLP), later becoming thefirst Ready (nowMcDougallGauley the lawfirm of McDougall articled withandthenjoined and aLawdegree in1985. She (Political Science) degree in1982 obtaining aBachelorof Arts the Universityof Saskatchewan, Pamela Lothian isagraduate of Board Member Pamela Lothian apparel company. Priortothat, Marketing, acorporate adand Canada. HealsoownsDiscovery with locations across Western flooring distribution company siding, landscaping,and a wholesalemasonry, stucco, of TimberstoneDistribution, Darrell Kennedy istheowner Board Member Darrell Kennedy Directorsthrough College designation from The (C.Dir.) obtained herChartered Director CMA accounting designation and Saskatchewan. SheholdsaCPA, (B.Comm.) from theUniversityof

and auditengagements. accountant, performing assurance financial services, andasapublic electronics manufacturing, experience inoilandgasservices, Alberta andSaskatchewan. Shehas in awidevarietyof industriesin Jerri hasworked asanaccountant Conference Board of Canada. McMaster Universityandthe Legal Administrators. Calgary Association of of Legal Administrators andthe memberships withtheAssociation Valerie currently holds with McKercher LLP. Director of HumanResources moving ontothepositionof profile litigation firmbefore Operations Managerfor a high- Office Administrator, and years asExecutive Assistant, Valerie spentmore than25 Capital Corp.,aRegina-based She iscurrently aDirector of Lex Society of Saskatchewan. Association andtheArthritis Community Basketball and aDirector of theRegina the Regina BarAssociation Pamela isapastPresident of two daughters. career asahomemaker raising concentrate onhersecond for 13yearsbefore electingto Pamela practisedwiththefirm chaired manygolftournaments, Regina GolfClubandhas Board Memberat theRoyal Association. Heisalong-time and Region HomeBuilders Institute andtheRegina the Saskatchewan Masonry Darrell isaBoard Memberof for TaylorMade AdidasGolf. Sales andMarketing Manager he worked astheTerritory the Cityof Prince Albert.Jerri Director of FinancialServices for Jerri iscurrently theAssistant volunteer with theSPCA. Fundraiser, andasa Corporate Way United Share Saskatoon, the throughcommunity the Care & with involved She enjoysstaying Inc. fundraiserin2019. of thePrairieVascular Research and wasafounding member University of Regina in2009, Championships hostedbythe CIS Women’s National Basketball Volunteer Committeefor the also servedasCo-chairfor the management company. She Inc., aprivate equityfund of Lex CapitalManagement family investmentvehicle,and Community College. diploma from Lethbridge and aBusinessAdministration Business Managementcertificate Darrell hasaProfessional Jamie Heward andMike Sillinger. Golf Tournament hostedby Shooting StarsFoundation including theInaugural University of Saskatchewan Senate. committees, includingaseat inthe local boards, associations, and has heldpositionsonseveral

SASKTEL 2020/21 ANNUAL REPORT | 105

He returned to consulting to to consulting He returned and expansion, growth, support clients for recovery corporate industries. of within a variety supporter Alan is a passionate various through the business of He obtained the associations. through ICD.D designation Corporate the Institute of Education Directors Directors’ and holds several Program, and Committee Director Board positions in industry and associations.community-based topics such as fundamentals of topics such as fundamentals of risk management, accounting, financial of interpretation and monitoring information, She has financial performance. served on several community East including Arcola boards, Regina Community Association, Limited, Exhibition Association and Gymnastics Saskatchewan. regarding access to the U.S. to the U.S. access regarding and other industry-related market issues. He was active as President and Campaign Manager for the constituency. local provincial both Grant has also completed training with the Syngentalevels of the Richard University at Grower Business. Ivey School of Debbie Grant and his wife live in Assiniboia. He currently enjoys his family and travelling, while staying active in the community.

executive training and executive development sessions for on organizations numerous of Saskatchewan and a Chartered a Chartered and Saskatchewan of (CPA, Accountant Professional Alan started CA) designation, with working his career LLP PricewaterhouseCoopers transitioned and later as an auditor, he was where to consulting and leading the technology in risk management practice Canada. Western a spans Alan’s work experience industries, including number of industry, the Canadian banking and development, economic industry. the transportation With a Bachelor’s degree in degree Bachelor’s With a University the from Commerce Association of Canadian Custom of Association Harvesters Inc., and other various and organizations. committees in Grant’s background led him to sit on the agriculture Ownership Farm Saskatchewan years He spent several Board. as an Agricultural Representative the Assiniboia Economic for Development Committee. years he spent four Additionally, of the Association of as President Canadian Custom Harvesters Inc., custom he represented where Canada harvesters in Western Glenys is a Chartered Professional Professional Glenys is a Chartered and was awarded Accountant, Fellowship She served for in 2007. six years as a Councillor with the Accountants Chartered Institute of including Saskatchewan, of and Chair. as President service She also obtained the Chartered in 2011. designation Director and board Glenys facilitates

Glenys Sylvestre Board Member is Executive Glenys Sylvestre University Governance, Director, She Regina. the University of at R for has been with the U of than 20 years, previously more Dean and serving as Associate Hill Instructor with the Paul J. Business. Prior to her School of employment with the University, she was an Audit and Assurance Deloitte & Touche. Manager at Grant Payant Board Member from Grant Payant is retired farming, ranching, and numerous other businesses he has been involved in during the last few years, and plays an active role with his son who has taken over the agricultural-related businesses. He is a long-standing Canadian Western member of Saskatchewan Growers, Wheat Canadian Canola Growers, Independent of Federation the member of Business, a life clients across Western Canada Canada Western clients across businesses for to prepare or to new owners succession their businesses to improve restructuring, financial through and acquisitions, or divestitures on the capacity typically takes or Officer Chief Executive of while Chief Financial Officer working with his clients. Alan Migneault Alan MemberBoard in Saskatchewan,Born and raised is the President Alan Migneault Corp. As AJM Management of Management a Professional Alan works with Consultant, Board of Directors Committee Priorities

AUDIT AND RISK COMMITTEE ENVIRONMENTAL AND HUMAN Members RESOURCES COMMITTEE Glenys Sylvestre, Chair Members Pamela Lothian, Chair JoeAnne Hardy, Member Richard Ahenakew, Member Jerri Hoback, Member JoeAnne Hardy, Member Darrell Kennedy, Member Valerie Makela, Member Valerie Makela, Member Grant Payant, Member Alan Migneault, Member Glenys Sylvestre, Member Priorities • Oversee the implementation of evolving Priorities accounting standards • Oversee management’s efforts to improve • Monitor progress on the Enterprise Risk employee engagement Management Program, including COVID-19 • Oversee executive’s succession plans, impacts and recovery including the CEO

CORPORATE GROWTH AND GOVERNANCE COMMITTEE TECHNOLOGY COMMITTEE Members Members Joel Friesen, Chair Rachel Heidecker, Chair Richard Ahenakew, Member Joel Friesen, Member Rachel Heidecker, Member Jerri Hoback, Member Darrell Kennedy, Member Alan Migneault, Member Pamela Lothian, Member Grant Payant, Member Priorities Priorities • Ensure compliance with shareholders’ • Monitor the industry’s technological risks, governance practices with a focus on evolving the networks to new technologies • Oversee the growth strategies of SaskTel and the subsidiaries BOARD OF DIRECTORS COMMITTEE PRIORITIES OF DIRECTORS BOARD 106 | SASKTEL 2020/21 ANNUAL REPORT | 107 Telecommunications, providing solutions to communications service providers and network service operators worldwide. He was born, raised, and educated in Saskatchewan, loves cottage life, and remains active on the family farm. Doug was born and raised in Doug was born and raised Regina and is active in his community. designation. He is a member of designation. of Saskatchewan the Law Society as a Board Member and serves Foundation, for the Wicihitowin SaskTel SecurTek, Directwest, International, Junior Achievement, and West Wind Aviation. and a strong will that drives their will that and a strong David is a caring execution. the business member of and a true, trusted community advisor to many. David and his partner Leanne Saskatoon just outside of reside children. grown and have four

and Co-operators Data Services Limited. Jim also serves as the CEO of SaskTel International, a fully owned subsidiary of Saskatchewan 39-year career in the Information Technology industry, he has held positions with Saskatchewan Government Insurance (SGI), Saskatchewan Workers’ Compensation Board (WCB), client satisfaction and financial performance. Throughout his Doug began his career at SaskTel his career at SaskTel Doug began Counsel, in 1990 as Corporate advice and providing legal the Corporation in services to Prior to every facet of business. practised joining SaskTel, Doug to 1989. law in Regina from 1983 Arts He holds a Bachelor of Regina, from the University of the a Bachelor of Laws from University of Saskatchewan, and a Certified Human (CHRP) Resources Professional A recognized industry leader, industry leader, A recognized than 25 years of he has more management and leadership Canada and across experience David’s experience in the U.S. spans sales and operational at including roles roles, His CompuCom and Rogers. and excellence passion for the best customer pursuit of possible has rewarded experience of following him with a strong and customers during associates high With infectious his career. he has the edge to make energy, tough decisions when necessary

Jim Dundas Officer Chief Information Prior to joining SaskTel in November 2013, Jim Dundas was Regional Vice President at CGI, where he had overall executive responsibility for operations in Saskatchewan. He received the prestigious CGI Builder Award for exceptional leadership achievements, having grown the Saskatchewan operation fourfold by delivering excellent David Ekstrand Vice President, Business Sales and Solutions David Ekstrand leads the SaskTel sales, for team responsible and operations marketing, business market. SaskTel’s for delivered are These services by David’s team and assured qualified and experienced of and IT communications on Saskatchewan’s professionals networks, and most advanced data hosted in advanced built, and centres—designed, by SaskTel. operated President and Chief Executive and President Officer (CEO) Burnett In January 2019, Doug and was appointed President CEO. Prior to his appointment, President Doug served as Acting as Vice and CEO. He also served President of Human Resources and and Corporate Services, Acting President of SaskTel 1, 2008International from June to October 19, 2009. Doug Burnett SaskTel Executive SaskTel Charlene Gavel of senior leadership positions Charlene earned a Bachelor of Chief Financial Officer throughout her career. Most Administration degree from the recently, she has held the University of Regina and is a As Chief Financial Officer, position of Vice President and Chartered Professional Accountant Charlene Gavel is responsible Chief Financial Officer at SaskTel (CPA, CA). She has also achieved for the Corporation’s financial International. Prior to that, the Institute of Corporate Directors activities and provides leadership Charlene held positions with designation (ICD.D). in the development of financial the Regina Qu’Appelle Health strategies. She is responsible for Charlene currently serves on the Region as Chief Financial Officer providing strategic, accounting, boards of SaskTel International, and Vice President of Financial and financial advice to the SecurTek, Directwest, and the Services, and at Information President and CEO, subsidiary Public Employees Pension Plan Services Corporation (ISC) as Presidents, SaskTel’s Executive (PEPP). Chief Financial Officer and Team, and the Board of Directors. Vice President of Finance and Charlene has gained extensive Administration. experience from holding a variety

Daryl Godfrey His SaskTel International government bodies involved in Chief Technology Officer assignments include Network the security of critical Canadian Services Director in Leicester, infrastructure. Appointed Chief Technology UK and Chief Technology Officer Officer at SaskTel in 2012, Daryl has a BScME from the for Tanzania Telecommunications Daryl Godfrey and his team University of Saskatchewan and Company. Daryl has held positions of technical professionals are is a member of the Association in the Regina Engineering Society responsible for the planning, of Professional Engineers and (RES) and on the Board of TRLabs. design, implementation, and Geoscientists of Saskatchewan He is a member of the Advisory support of SaskTel’s wired and (APEGS) with a P. Eng. designation. wireless voice, data, video Board for the University of Regina networks and services. Prior to Faculty of Engineering and Applied Daryl was born, raised, and his current position, Daryl’s 38- Science and represents SaskTel educated in Saskatchewan and year career with SaskTel includes on the Canadian Security lives in Regina with his wife Karen. senior positions in Network Telecommunications Advisory Planning and Provisioning, Committee (CSTAC), which SaskTel International, Business includes representation from all Development, and Stentor. Canadian carriers and various

Doug Kosloski During his more than 20 years at He received his Chartered Vice President, Corporate Counsel CIC, he held several positions, Director designation in 2012 and Regulatory Affairs and Chief including General Counsel and through McMaster University. Privacy Officer Corporate Secretary, and Vice Doug received the Queen’s President, Economic Initiatives Counsel (QC) designation in In January 2020, Doug Kosloski Division. Prior to CIC, Doug 2014, which recognizes lawyers was appointed Vice President was Legislative Analyst with for exceptional merit and of Corporate Counsel and Saskatchewan Environment contributions to the Regulatory Affairs, and Chief and Resource Management, legal profession. Privacy Officer. Doug is and began his career with responsible for SaskTel’s Legal He is also a member of numerous Willows, Howe & Linka as Department, Chief Privacy boards and associations, including Barrister and Solicitor. Office, Carrier Relations, Land the Regina Downtown Business and Easements, and Regulatory His educational background is Improvement District (RDBID), Affairs, including regulatory equally as extensive as his career SaskTel International, Directwest, policy matters. and includes a Bachelor of Arts SecurTek, The Canadian Bar degree in Economics from the Association, the Canadian Doug was previously Senior Vice University of Regina, a Bachelor Corporate Counsel Association, President and Chief Legal Officer of Commerce degree in Finance, and the Law Society at Crown Investments and a Law degree from the of Saskatchewan. Corporation (CIC) and has University of Saskatchewan. extensive knowledge of the Crown and private sectors. SASKTEL EXECUTIVE 108 | SASKTEL 2020/21 ANNUAL REPORT | 109

Born, raised, and educated in Born, raised, and educated enjoys living Greg Saskatchewan, of community in the growing Nadine with his wife Warman and daughter Cassidy. Kerstin holds a Master of a Master of holds Kerstin degree Administration Business and University Harvard from Arts degrees Bachelor of School in Ivey Business from Western from Business and An Economics. University in participant, active community with she has volunteered non-profit various charitable and including youth organizations, schools, swimming, children’s start-ups. and social venture serves on the Shara currently International, SaskTel of boards as well and SecurTek, Directwest, Centre as Ignite Adult Learning and Sexual Assault Services (SASS). She is Saskatchewan of the Advisor of also the Executive Helping Our Own People SaskTel (HOOP) program. Greg holds a Bachelor of holds a Bachelor of Greg the from degree Commerce Saskatchewan University of in he majored where He and Marketing. Finance for certificates has received the from extension programs British Columbia University of As a and Queen’s University. is Greg volunteer, dedicated Saskatchewan of Past President with Crime Stoppers, Director Gun Club, and the Saskatoon with Saskatchewan Director Shooting Corp. Skeet Kerstin brings a wealth of of a wealth brings Kerstin experience strategy and leadership in telecom, her career from in both and consulting strategy, A passionate, the U.S. Canada and isKerstin executive, customer-first and developing building known for teams. high-performing Kerstin Prior to joining SaskTel, roles executive held a number of Communications Rogers at marketing, of in the areas and sales, strategy, commercial role held the and most recently Commercial President, Vice of Prior to her work Strategy. Communications, Rogers at in management worked Kerstin planning. and strategic consulting Shara has an MBA and a B.Admin Regina, the University of from a Certificate and completed the from in Internet Marketing British Columbia.University of She has also been a Sessional the University of at Lecturer Chair She is the past Vice Regina. Authority Safety the Technical of (TSASK) Saskatchewan of Board and the Chair of Directors of the TSASK Human Resources the Board. Committee of

Greg MeisterGreg Operations Vice President, Meister leads the SaskTel Greg building, for team responsible and connecting operating, customers to the Corporation’s networks, solutions, advanced and services. with beginning his career Since he has held in 1993, SaskTel Sales, andpositions in Marketing, and allowing Greg Operations, his family to live and participate Regina, of in the communities Albert, North Battleford, Prince and Saskatoon. Shara McCormick Human ResourcesVice President, Services and Corporate Shara McCormick In April 2019, President was appointed Vice and Human Resources of and is Services Corporate the Acting President currently Shara has SecurTek. of and CEO 1994 since SaskTel at worked in various management roles in various management roles Advanced SaskTel in Marketing, Interactive Solutions, and SaskTel Human Resources. Kerstin Lack Kerstin Vice President, and SolutionsConsumer Sales in Lack joined SaskTel Kerstin responsibility 2021, with March sales, consumer SaskTel’s for Her marketing. and services, our customers team supports industry-leading retail through dealer partners, customer stores, departments, and digital care internet, channels delivering our and wireless, service, maxTV smartHOME security services. team is marketing Kerstin’s brand strategy, on focused advertising, communications, management, and product operations. marketing 110 | SASKTEL 2020/21 ANNUAL REPORT SASKTEL 2020/21 ANNUAL REPORT | 111 On October 15, 2014, the CSA announced amendments announced the CSA 2014, On October 15, Corporate of 58-101 Disclosure Instrument to National 31, 2014. December effective Practices Governance or explain” The amendments implement a “comply women of the representation model regarding disclosure positions and the director officer and in executive on boards any do not introduce The amendments selection process. to increase intended They are targets. quotas or mandatory women on of the representation regarding transparency no sanctions are There and in senior management. boards non-compliance. for CORPORATE GOVERNANCE PRACTICES GOVERNANCE CORPORATE of set a comprehensive has implemented Board The SaskTel to clear disclosure is committed and practices governance best with current in accordance practices its governance of standards. disclosure practice Administrators the Canadian Securities 2005, On June 30, Governance 58-201 on Corporate Policy (CSA) National 58-101 on Governance Instrument Guidelines and National standards The CSA Rules came into effect. Disclosure Corporate Exchange Stock Toronto the supercede used previously the Board Guidelines, which Governance Committee has Governance The to assess its practices. adapting the Board’s the Guidelines with a view of reviewed and effective to the guidelines, where practices governance comply with to required is not beneficial. Although SaskTel used has guidelines, the Corporation the CSA governance in Practices Governance them to benchmark its Corporate section. the following

KEY ACCOUNTABILITIES the supervising for is responsible Directors of The Board focusing While of the Corporation. management and affairs the Board the Corporation, leadership of on the strategic holds to management and day-to-day operations delegates performance. the Corporation’s for them accountable by delegation directly, its responsibilities discharges The Board the Board. Committees of to management and through and Risk the Audit the Board: Committees of four are There and Technology Growth Committee; the Corporate and Human Resources Committee; the Environment Committee. Committee; and the Governance The Lieutenant Governor in Council appoints members ofThe Lieutenant Governor in Council appoints Subject Chair. and Vice the Chair and designates the Board a fixed appointed for are Directors to applicable legislation, expiry. at term and their appointments can be renewed (12) members on the Board. twelve are There BOARD APPOINTMENTS BOARD

AUTHORITY governed by The Saskatchewan Corporation is a Crown SaskTel Act, and subject Corporation Holding Telecommunications Corporation Investments The Crown of to the provisions of Investments Corporation Act, 1993. The Crown for holding company (CIC), as the Saskatchewan has Corporations, Crown commercial Saskatchewan’s to certain related SaskTel for direction authority to establish set out in legislation. matters the Board is an independent Director, who the Chair, Through for the Minister Responsible to is accountable Directors of communications is a key The Minister Responsible SaskTel. the Legislature, Cabinet, CIC, link among the Corporation, and the public. Corporate Governance Statement 112 | CORPORATE GOVERNANCE STATEMENT NI 58-101F1 58-101F1 NI Instrument, Disclosure and 58-201, NP Policy, Governance Corporate CSA 3.2 NP 58-201,section3.2 (d) (c) (b) 1(a) NI 58-101F1,sections1(a)to(d) 3.1 NP 58-201,section3.1 COMPOSITION OFTHEBOARD successfully carryoutitsduties. board’s agendawillenableitto board andwhoensures that the is theeffective leader of the be anindependentdirector who The chairof theboard should is areporting issuer. director of anyotherissuerthat Disclose whetheradirector isa and of directors are independent; Disclose whetherthemajority the basisfor that determination; who are notindependentand Disclose theidentityof directors who are independent; Disclose theidentityof directors independent directors. a majorityof The board shouldhave (Summary)

an effective balance betweenthe role of theBoard andthat of management. between theBoard andtheshareholder, andensures Board agendasreflect in Board organization, processes, effectiveness and renewal, servesasliaison The Chairof theBoard isanindependentdirector whoprovides leadership and isnotanissuer. Section 1(d)doesnotapplytoSaskTel asSaskTel doesnothaveshare capital, 52-110, AuditCommittees. and isbasedonanassessmentof therequirements inMultilateral Instrument The determination of independence ismadebytheGovernance Committee Glenys Sylvestre: INDEPENDENT Retired Grant Payant:INDEPENDENT Alan Migneault:INDEPENDENT Retired Valerie Makela: INDEPENDENT Lawyer Pamela Lothian:INDEPENDENT Darrell Kennedy: INDEPENDENT Jerri Hoback:INDEPENDENT Consultant Rachel Heidecker: INDEPENDENT JoAnne Hardy:INDEPENDENT Joel Friesen: INDEPENDENT Richard Ahenakew: INDEPENDENT Grant Kook, Chair:INDEPENDENT are independent. The majorityof directors ontheSaskTel Board (12 out of 12) Comments and Discussion and Comments Executive Director, UniversityGovernance at theUniversityof Regina President, AJMManagementCorp. Business Owner, TimberstoneRegina Business Owner, HobackEnterprisesInc. President, WBMSaskatoon Lawyer, AndersonandCompany General Manager, NorthernLightsCasino President andCEO, Westcap Mgt.Ltd. SaskTel align? Does Does Yes Yes Yes

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Yes Yes Yes Does SaskTel align? SaskTel chairing meetings of the Board and ensuring meetings are properly properly ensuring meetings are and the Board chairing meetings of legally is conducted and business convened to set Board Secretary and the Corporate working with the CEO establish agendas meeting schedules and by full participation and encouraging monitoring meeting attendance meetings at directors between meetings with directors communicating to related any concerns and addressing in assessing taking a lead role performance or director committee, Board, individual abilities of full utilization to achieve assisting directors between working relationship an open and constructive promoting senior management and the Board communications chairs to maintain effective working with committee responsibilities and division of and senior management to the CEO and counsel advice providing and perspective to interests the shareholder’s representing management’s views to the shareholder management, and representing and relationships developing productive with the CEO, in conjunction stakeholders key and with the shareholder the Corporation representing holding in-camera sessions of no fixed duration where directors are are directors where duration no fixed holding in-camera sessions of concern to raise any issues of encouraged the Board as Chair of having an independent director and between Board responsibilities the division of clearly delineating management external advice to access the Board/directors for providing • • • • • • • • • • • • • • • is an independent director. and he the Board is the Chair of Grant Kook and is the shareholder to and ultimately to the Board The Chair reports the that and ensuring the Board meetings of over presiding for responsible primary responsibilities. The Chair’s and legal its fiduciary discharges Board duties include: Comments and Discussion The Board is satisfied that its governance practices foster full and open practices its governance that is satisfied The Board mind to make of independence the it retains and that discussion and debate and the shareholder. the Corporation of decisions in the best interests meetings held in 2020/21, and during all nine nine (9) Board were There but present meetings, in-camera sessions without management regular held. were including all directors and open and candid discussion among, facilitate that practices Board include: independent judgment by directors, As a Standing Agenda item, the Board holds an in-camera session without holds an in-camera As a Standing Agenda item, the Board All directors Board. the meeting of each regular at management present with an has a conflict a director where in the sessions, except participate item under discussion.

(Summary) Disclose whether the chair of the chair of Disclose whether is an independent the board the identity of disclose director; the role the chair and describe the chair. of Disclose whether the hold independent directors scheduled meetings regularly which members of at not present; management are such disclose the number of meetings held in the previous 12 months; if such meetings the not held, disclose what are open does to facilitate board and candid discussion among independent directors. The independent directors The independent directors scheduled should hold regularly which non- meetings at and independent directors management are members of not present. NI 58-101F1, section 1(f)NI 58-101F1, 1(f) NP 58-201,and Disclosure Instrument, CSA Corporate Governance Policy, NI 58-101F1 NI 58-101F1, section 1(e) 1(e) MEETINGS OF INDEPENDENT DIRECTORS NP 58-201, section 3.3 3.3 114 | CORPORATE GOVERNANCE STATEMENT NI 58-101F1 58-101F1 NI Instrument, Disclosure and 58-201, NP Policy, Governance Corporate CSA 3.4 NP 58-201,section3.4 BOARD MANDATE 1(g) NI 58-101F1,section1(g) (e) (d) (c) (b) (a)

policy for theCorporation; adopting acommunications monitoring seniormanagement; appointing, trainingand succession planning,including systems tomanagetheserisks; implementation of appropriate business andensuringthe risks of theCorporation’s identification of theprincipal and risksof thebusiness; other things,theopportunities takes intoaccount, among annually astrategic planwhich process andapproving at least adopting astrategic planning organization; of integritythroughout the they havecreated aculture CEO andexecutive andthat itself astotheintegrityof the to theextentpossible,satisfying Corporation andresponsibility for: for thestewardship of the acknowledges responsibility written mandate whichexplicitly The board shouldadopta financial year. most recently completed board meetingsheldinthe record of eachdirector for Disclose theattendance (Summary)

expectations andresponsibilities of individualdirectors are delineated. The Board hasapproved Terms of Reference for Directors where the function asstewards of theCorporation and to: Board’s principaldutiesandresponsibilities, including responsibility to the elementsrequired by thePolicy. TheTerms of Reference outlinesthe The Board haswrittenTerms of Reference that contains themajorityof period inwhichtheindividualwasaBoard member. ** Figures inbrackets represent themaximumnumberof meetingsfor the were considered tobepresent. * Forthepurposesof thisreport, memberswhoattended meetingsinpart Glenys Sylvestre Grant Payant Alan Migneault Valerie Makela Pamela Lothian Darrell Kennedy Jerri Hoback Rachel Heidecker JoeAnne Hardy Joel Friesen Richard Ahenakew Grant Kook, Chair Director meetings attended byeachdirector in2020/21issetoutbelow. The Board heldnine(9)meetingsin2020/21.Thenumberof Board Comments and Discussion and Comments • • • • • management information systems monitor theintegrityof theCorporation’s internalcontrol and the shareholder, stakeholders andthepublic adopt policiesandprocesses toenableeffective communications with ensure effective succession planningprocesses appoint theCEO, evaluate theperformance of seniormanagementand systems tomanagetherisks Corporation isengagedandoverseetheimplementation of appropriate participate inidentifyingtheprincipalrisksof thebusinessinwhich direction andannuallyapprove theCorporation’s overallstrategic plan provide leadershipinsettingtheCorporation’s long-rangestrategic Meetings Attended* 8 9 9 9 9 9 9 9 9 8 9 9 (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9)** SaskTel align? compliance Substantial Does Does Yes

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Yes Yes Yes Does SaskTel align? SaskTel The Board’s principal responsibilities are described above. The text of the of described above. The text are responsibilities principal The Board’s the Corporate be obtained by contacting can Reference of Terms Board’s to the Board. Secretary Comments and Discussion to obtain stakeholders surveys internal and external regularly SaskTel in a participates the Board Chair of activities. The about Corporate feedback all subsidiary of the chairs of which is comprised CIC, established by forum and mutual interest of issues where and senior CIC officials, boards Crown shared. are concern Reference of Terms not specifically identified in the the Policy Elements of has established (a), the Board and (g). Respecting include (a) the Board for (see discussion ethical business conduct of a culture promote that practices has delegated to (g) the Board respect NP 58-201). With of under section 3.8 Committee to oversee the Corporation’s to the Governance responsibility governance. to corporate approach the Description for has developed a written Position The Board CEO. each Committee, and the the Chair of the Board, Chair of the Chair of the Board, for Reference of Terms has approved The Board individual each Committee, each Committee and of the Chair the Board, the CEO. for Description and has adopted a Position directors, primary accountabilities Description sets out the CEO’s Position The CEO’s management address Reference of Terms The Board and responsibilities. non- applicable to monetary and Policy, duties, and a Final Authorization and approval Board require that sets out those matters monetary matters, to management. other matters delegates (EHR) Committee annually and Human Resources The Environment and personal goals the Corporation for indicators performance recommends a annually approves The Board by the Board. approved are that the CEO for objectives, priorities, and performance includes Corporate business plan that achieves the the Corporation to see that is responsible The CEO indicators. assigned by the Board. business plan and to meet any other targets

(Summary) the integrity of the of the integrity internal Corporation’s and management control systems; and information developing the Corporation’s to corporate approach set including a governance, principles and guidelines of specific to the Corporation. the board’s Disclose the text of written mandate. Disclose whether the board has developed written position the chair descriptions for the chair and the board of committee each board of and, if not, describe how the and the role delineates board each of responsibilities such position. and Disclose whether the board have developed a written CEO the CEO. position description for The board should: develop should: The board clear position descriptions for and the the board the chair of committee; each board chair of develop together with the CEO, the a position description for management’s delineating CEO develop or responsibilities; goals and corporate approve is the CEO objectives that to meet. responsible (b) (f) (g) should also The written mandate receiving for measures address (for stakeholders from feedback stakeholders for example, a process directors); independent to contact and and the expectations including directors, of responsibilities meetings and basic duties to attend in advance. materials review NI 58-101F1, section 2 2 NI 58-101F1, sections 3(a) and (b) 3(a) POSITION DESCRIPTIONS NP 58-201, section 3.5 3.5 NP 58-201,and Disclosure Instrument, CSA Corporate Governance Policy, NI 58-101F1 116 | CORPORATE GOVERNANCE STATEMENT NI 58-101F1 58-101F1 NI Instrument, Disclosure and 58-201, NP Policy, Governance Corporate CSA (b) 4(a) NI 58-101F1,sections4(a)and(b) 3.7 3.6 NP 58-201,sections3.6 and3.7 CONTINUING EDUCATION ORIENTATION AND

opportunities for alldirectors. provide continuing education Describe themeasures taken to the Corporation’s business. directors andtothenature of of theboard, committees, and orient newdirectors totherole Describe themeasures taken to business iscurrent. knowledge of theCorporation’s abilities andensure their to enhance theirskillsand opportunities for alldirectors continuing education The board shouldprovide operation of thebusiness. to make, andthenature and individual directors are expected committees, thecontribution the role of theboard and orientation andfullyunderstand directors receive comprehensive The board shouldensure new (Summary)

where authorized bytheCorporation ortheBoard. external developmentopportunitiesrelated totheirdutiesasdirectors new developmentsincorporate governance. Directors canparticipate in need toeffectively discharge their responsibilities, andbest practices and and responsibilities of boards, committees anddirectors, theskillsdirectors of CICsubsidiaryCrown boards. Theprogram hasfocused onthekey roles Each year, CICsponsorsacomprehensive education program for directors educational sessionstodirectors toexplaintechnicalaspectsof thebusiness. to theBoard andseniormanagement.Managementhasalsodelivered in variousaspectsof thetelecommunications industryare invitedtospeak about thebusiness.Priortosomeregular Board meetings,outsideexperts New directors are ableto meetinformally withseniormanagerstolearn strategic plan,organizational structure, andresponsibilities of seniorstaff. addresses key industrytrends, criticalbusinessrisksandchallenges,the an orientation sessiondelivered bymanagement.Theorientation session comprehensive Directors’ Reference Manual,andnewdirectors receive The Corporation provides allmembersappointedtotheBoard witha opportunities madeavailabletodirectors are describedbelow. processes, andbestpractices incorporate governance. Otherdevelopment focuses ontheskillsthat directors needtodotheirjobs,effective Board to thebusinessandindustry. CICdeliversatrainingprogram that Management provides newdirectors withacomprehensive orientation Comments and Discussion and Comments SaskTel align? Does Does Yes Yes

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Yes Yes Does SaskTel align? SaskTel

t can be obtained by contacting t can be obtained by contacting Conduc of Code the Directors’ of A copy can be obtained by Conduct of the Business Code of A copy CIC. SaskTel. contacting Code with the Directors’ monitor compliance the Board Committees of Committee monitors compliance . The Governance and the Business Code to and sponsorship policies and is responsible donation with Corporate the The Chair of Code. the Directors’ and enforce monitor, administer, meeting any such issues each regular at to the Board Committee reports to the Board report by the Committee, and submits an annual addressed Code. with the Directors’ compliance regarding of the The Audit and Risk Committee monitors the financial performance respecting to meet its responsibilities and assists the Board Corporation controls, reporting, risk management, internal and financial accounting the internal and with The Committee interacts directly and accountability. among other to the Committee concerning, external auditors, who report assets. Corporate of treatment illegal or improper of things, any instances including quarterly risk management reports, The Audit Committee receives to the the Committee reports to legal risks. The Chair of related reports by the Committee, meeting any such issues addressed each regular at Board risk management reports. summaries of receive and all directors health with environmental, The EHR Committee monitors compliance with the including compliance programs, and human resource and safety, management that from reports The Committee receives Business Code. policies, legislation, with related among other things, compliance address, any issues raised the Committee reports The Chair of and regulations. the Board. meeting of each regular at the Committee level to the Board at no Therefore, capital and is not an issuer. does not have share SaskTel have been filed. change reports material Comments and Discussion , which Conduct of Code with the Directors’ must comply members Board Crown all its subsidiary of and applies to the directors was developed by CIC and its subsidiaries must the Corporation of and employees Officers boards. , which includes a whistle- Conduct of Business Code with SaskTel’s comply blowing policy. integrity and deter wrongdoing, to promote Each Code is designed corporation, as they apply to a Crown the Policy the elements of address illegal or unethical behaviour. report a mechanism to and provide

(Summary) has adopted a written code has adopted a written code ethical business conduct of and officers, the directors, for the Corporation; employees of the of how to obtain a copy monitors Code; how the board with the Code; and compliance change any material reference in the most recent report to any relating financial year or officer a director of conduct a departure constitutes that the Code. from The board should adopt a The board business of written code and ethics applicable conduct and officers, to directors, the Corporation employees of integrity designed to promote The and deter wrongdoing. should address: code including of interest, conflicts transactions and agreements has or officer a director where interest; a material use of and proper protection assets corporate and opportunities; of confidentiality information; corporate fair dealing with the security Corporation’s holders, customers, suppliers, and employees; competitors, with laws, rules, compliance and and regulations; illegal or of reporting unethical behaviour. CONDUCT OF BUSINESS CODE AND ETHICS section 3.8 NP 58-201, 3.8 (a) (b) (c) (d) (e) (f) NI 58-101F1, section 5(a) board Disclose whether the 5(a) NP 58-201,and Disclosure Instrument, CSA Corporate Governance Policy, NI 58-101F1 118 | CORPORATE GOVERNANCE STATEMENT NI 58-101F1 58-101F1 NI Instrument, Disclosure and 58-201, NP Policy, Governance Corporate CSA 5(c) NI 58-101F1,section5(c) 5(b) NI 58-101F1,section5(b) 3.9 NP 58-201,section3.9 business conduct. promote aculture of ethical board takes to encourage and Describe otherstepsthe officer hasa material interest. agreements where adirector or considering transactionsand independent judgmentin to ensure directors exercise Describe stepstheboard takes details of thematerial change. officers shoulddisclosefull the code for anydirectors or for amaterial departure from board committee. Anywaivers granted bytheboard ora executive officers shouldbe the benefit of directors and and anywaiversgrantedfor compliance withthecode The board shouldmonitor (Summary)

to theChairof theGovernance Committee. whistle-blowing policy. Whistle-blowingreports mayalsobemadedirectly Committee respecting significantissuesthat havearisenpursuant tothe by theEHRCommitteeandmanagementreports totheGovernance arising undertheBusinessCode of Conduct are reported toandmonitored mechanism tofacilitate reporting byemployeesof issuesof concern. Issues Business Code of Conduct wasrevised toincorporate awhistle-blowing and anydirectives orpoliciesof theBoard ortheshareholder. In2005, the accordance withallapplicablelegislation, theBusinessCode of Conduct The Board expectsmanagementtoactethicallyinits businessdealings,in and seniormanagement. issues at Board meetingsandat informal gatherings betweentheBoard practices are reinforced byopenandhonestdiscussionaboutbusiness by following current bestpractices incorporate governance. These The Board encourages andpromotes aculture of ethicalbusinessconduct the director. may haveamaterial interest andsuchitemsare notdistributedto Management monitorsagendaitemstoidentifyanyissueswhere adirector assist theminproactively addressing potentialconflict of interests. the Governance Committee,theCorporate Secretary, andtheiradvisorsto services availabletothegeneralpublic.Thecompleted form isprovided to or itssubsidiaries.Therequired information excludes theacquisitionof SaskTel, andanymaterial contracts theymayhaveentered intowithSaskTel their knowledgeof thebusinesstheirassociates haveormaytransactwith their directorships onandmaterial interests inbusinessesotherthanSaskTel, In 2005, theBoard adoptedadisclosure form toenabledirectors todeclare and nottoparticipate indiscussionsaboutorvoteonthematter. to declare anysuchinterest at themeetingwhere thematter isconsidered transaction beingconsidered bytheCorporation, thedirector isresponsible Where adirector has,ormaybeperceived tohave,apersonalinterest ina in 2020/21. No waiversfrom eitherCodehavebeengrantedtoanydirector orofficer dealt withpursuanttoeachCodethefullBoard. compliance withtheCodesof Conduct.TheCommitteesreport anyissues The Board hasdelegated toitsCommitteestheresponsibility tomonitor Comments and Discussion and Comments SaskTel align? Does Does Yes Yes Yes

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Yes Does Substantial Substantial Compliance Compliance SaskTel align? SaskTel as the Nominating Committee functions The Governance Committee, of the Governance members Committee. All five (5) independent directors. are Chair, including the Committee Comments and Discussion a decision made by are SaskTel of directors Appointments of The Governance in Council. an Order the government through as Nominating their responsibility through Committee may, Board qualified nominees to the SaskTel Committee, recommend and to have those nominees be recommended consideration for the government. and ultimately to the CIC Board consideration for the reviews Committee, the Governance through The Board, with a view to annually directors and skill sets of composition and expertise, experience, mix of maintaining an appropriate and direction to support the strategic diversity on the Board the Corporation. needs of operating identifying the skill for Committee is responsible The Governance developing and maintaining a Skills sets needed on the Board, and directors, of current competencies the delineates that Profile to the recommending identifies any skill gaps while seeking and to fill any competencies have the required nominees that Board and skills, current competencies identified gaps. In addition to In the Board. of diversity in the composition encourage practices recommendations the Committee may receive seeking candidates, senior management, and the shareholder. the directors, from may be interviewed to determine their overall candidates Potential preclude would that conflicts any of the Board, fit with the needs and whether they have the time to participation, their effective a list of work. The Committee may recommend devote to Board which in turn to the Board, each vacant position for candidates approval. for to the shareholder candidates would recommend to make authority has the legislative The shareholder appointments. Board to related best practices following The Committee believes that and recruiting maintaining a skills matrix, appointments, Board skills, of combination who possess the required candidates decision- and diversity to add value to Corporate background, process. making supports an objective nomination The Governance Committee has written Terms of Reference Reference of Committee has written Terms The Governance which address setting out its purpose and principal responsibilities, and recruiting of to lead the process the Committee’s responsibility as well as the appointment to the Board, for candidates nominating and the member qualifications except the Policy other elements of tasks. The Committee has authority to engage ability to delegate its duties, subject to the outside advisors to assist it in performing has the right to nominate The shareholder the Board. of approval appointment to the Board. for candidates

(Summary) The nominating committee should committee The nominating have a written charter establishing the purpose, responsibilities, committee’s member member qualifications, structure appointment and removal, (including any authority and operations to individual directors to delegate and manner of or subcommittees), In addition, the to the board. reporting should be given committee nominating authority to engage and compensate to permit it outside advisors necessary a third to carry out its work. Where party has a legal right to nominate the selection and nomination directors, need not involve those directors of an independent of the approval committee. nominating The board should appoint a nominating should appoint a nominating The board entirely of comprised committee independent directors. Describe the process by which the by which Describe the process for identifies new candidates board nomination. board has aDisclose whether the board comprised committee nominating and, independent directors of entirely the boardif not, describe the steps an objective to encourage takes process. nomination

NP 58-201, section 3.10 NP 58-201, 3.10 Nomination of Directors Nomination 6(a) and (b) NI 58-101F1, sections 6(a) (b) NP 58-201,and Disclosure Instrument, CSA Corporate Governance Policy, NI 58-101F1 NP 58-201, section 3.11 3.11 120 | CORPORATE GOVERNANCE STATEMENT 3.14 NP 58-201,section3.14 NI 58-101F1 58-101F1 NI Instrument, Disclosure and 58-201, NP Policy, Governance Corporate CSA 3.13 NP 58-201,section3.13 3.12 NP 58-201,section3.12 6(c) NI 58-101F1,section6(c) resources toboard work. devote sufficienttimeand each newnomineecan each nominee;andwhether competencies andskillsof skills of existingdirectors; the possess; thecompetencies and for theboard asawholeto the board considers necessary competencies andskillsthat should consider: the the nominating committee In makingitsrecommendations the newdirector nominees. and recommending totheboard become newboard members identifying individualsqualifiedto should beresponsible for The nominating committee of thenominating committee. consider theadvice andinput decision-making, andshould with aviewtoeffective appropriate size of theboard, should alsoconsider the of eachdirector. Theboard personality andotherqualities director; andconsiders the possessed byeachexisting competencies andskills a whole;assessesthe and skillsof theboard as considers thecompetencies nomination process which The board shouldadopta operation of thecommittee. responsibilities, powers,and committee, describethe If theboard hasanominating (Summary)

out inthePolicy andisdescribedabove. The process followed bytheGovernance Committeecomplies withthat set decision madebytheGovernmentthrough anOrder inCouncil. the Board. Theidentification andappointment of Directors of SaskTel are a The Governance Committeeidentifiestheskillsetsthat are required for and effective decision-making. governance, theCommitteemakes recommendations topromote timely As theCommitteeresponsible for theBoard’s approach tocorporate By legislation, theBoard iscomprised of amaximumof twelve(12)directors. guidelines of theInstrument. The Board’s nomination process isdescribedabove,anditmeetsthe can beobtainedbycontacting theCorporate Secretary totheBoard. within itsarea of responsibility. Acopy of theCommittee’sTerms of Reference serves inanadvisorycapacity, andmaymake recommendations totheBoard and operation of theCommittee.TheCommitteeisappointedbyBoard, committee, anditsTerms of Reference describe theresponsibilities, powers, The Governance Committeeperforms thefunctionsof anominating Comments and Discussion and Comments SaskTel align? compliance compliance Partial Partial Does Does Yes Yes

SASKTEL 2020/21 ANNUAL REPORT | 121

Yes Yes Does SaskTel align? SaskTel 3,500.00 40,000.00 $ 25,000.00 $ $ 2,500.00 $ 750.00 $ Director Remuneration Schedule Remuneration Director Audit and Risk Committee Chair retainer Other Committee Chair retainer Committee member meeting fee day $750; (Meeting Fees = Full Half day $375 – less than 4 hours) Board member retainer Board Board Chair retainer Board The EHR Committee performs the functions of a compensation committee. committee. a compensation of the functions performs The EHR Committee the EHR Committee, including the members of all six (6) Currently independent directors. are Committee Chair, the the EHR Committee, which serves as of members The majority of independent directors. are Committee, Compensation expense levels and set remuneration authority to fix CIC has the legislative authority to Committee has The Governance directors. guidelines for to directors’ to CIC) adjustments (and the Board to the Board recommend the respecting quarterly reports receives The Committee compensation. any anomalies and reports the Board of by members received remuneration to the Board. The member. acting as a Board for an annual retainer receives Each director set are the Board members of levels established by CIC for remuneration out below. Comments and Discussion A copy of CIC’s remuneration and expense guidelines for directors can be directors and expense guidelines for CIC’s remuneration of A copy to the Board. Secretary the Corporate obtained by contacting and the Board compensation, executive CIC has established a framework for framework. The Board packages within that compensation can approve and making recommendations addressing for responsibility has delegated issues to the EHR Committee. management compensation concerning to changes the Board: to and recommends The EHR Committee reviews and benefits plans; overall compensation the Corporation’s the design of industry standards; reflect packages that management compensation indicators, and annual Corporate programs; compensation performance senior for compensation including a subset used to determine performance this function, the Committee has the ability management. In discharging by the Board. external advisors, subject to approval to retain

(Summary) The board should appoint a The board committee compensation of entirely comprised independent directors. directors and, if not, describedirectors to takes the steps the board for an objective process ensure determining such compensation. has a compensation committeehas a compensation independent of entirely comprised the board determinesthe board the directors for compensation of the Corporation. and officers Disclose whether the board Describe the process by which Describe the process COMPENSATION section 3.15 NP 58-201, 3.15 NI 58-101F1, sections 7(a) and (b) NI 58-101F1, sections (b) 7(a) NP 58-201,and Disclosure Instrument, CSA Corporate Governance Policy, NI 58-101F1 122 | CORPORATE GOVERNANCE STATEMENT 3.17 Thecompensation committee NP 58-201,section3.17 (c) NI 58-101F1,section7(c) NI 58-101F1 58-101F1 NI Instrument, Disclosure and 58-201, NP Policy, Governance Corporate CSA 3.16 Thecompensation committee NP 58-201,section3.16 public disclosure. compensation priorto and reviewing executive plans andequity-basedplans; incentive-compensation and director compensation, respecting non-CEO officer recommendations totheboard on theevaluation; making compensation levelbased and determiningtheCEO’s corporate goalsandobjectives, performance inlightof those evaluating theCEO’s relevant toCEO compensation, corporate goalsandobjectives reviewing andapproving should beresponsible for: operation of thecommittee. responsibilities, powers,and committee, describethe If theboard hasacompensation out itswork. necessary topermititcarry compensate outsideadvisors authority toengageand committee shouldbegiven addition, thecompensation of reporting totheboard. In subcommittees), andmanner to individualdirectors or any authoritytodelegate structure, operations (including appointment andremoval, member qualifications, member purpose, responsibilities, establishing thecommittee’s should haveawrittencharter (Summary)

executive compensation reports priortopublicdisclosure. publication of Crown payeereports. TheCommitteedoesnotreview Executive compensation information isavailable tothepublicthrough Director compensation isdeterminedbyCIC. by CIC. AsaCrown corporation, SaskTel doesnothaveequity-basedplans. Executive compensation decisionsare subjecttoanyguidelinesestablished eligibility for performance compensation. and theextenttowhichtargets are achieveddeterminesmanagement’s Board reviews andapproves theachievementof Corporate targets annually performance compensation programs, andannualperformance targets. The for recommending totheBoard managementcompensation packages, Respecting non-CEO officer compensation, theCommitteeis responsible determining compensation. the CEO’s performance are approved bythefullBoard, andare usedin Corporate objectivesandtheCEO’s individual targets. Theresults of for theCEO. TheCEO’s performance isassessedagainsttheestablished performance targets, andleadstheannualperformance evaluation process The EHRCommitteeannuallyrecommends totheBoard theCEO’s can beobtainedbycontacting theCorporate Secretary totheBoard. its area of responsibility. Acopy of theCommittee’sTerms of Reference an advisorycapacity, andmakes recommendations totheBoard within of theCommittee.TheCommitteeisappointedbyBoard, servesin respecting compensation issues,aswellthepowersandoperation its Terms of Reference describestheCommittee’sresponsibilities The EHRCommitteeservesastheCompensation Committee,and the Board. advisors toassistitinperforming itsduties,subjecttotheapproval of the abilitytodelegate tasks.TheCommitteehasauthoritytoengageoutside well astheotherelementsof thePolicy except memberqualifications and addresses theCommittee’sresponsibilities withrespect tocompensation, as The Board hasapproved Terms of Reference for theEHRCommittee,which Comments and Discussion and Comments SaskTel align? compliance compliance Substantial Substantial Does Does Yes

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Yes Yes Yes Does SaskTel align? SaskTel In addition to the Audit and Risk, Governance, and EHR Committees, the EHR Committees, and Governance, to the Audit and Risk, In addition (CGT) Committee. and Technology Growth has a Corporate also Board to develop a growth Committee: works with management The CGT investments and and recommends reviews policies; and related strategy the performance respecting to the Board reports monitors and divestitures; concerning recommendations and makes investments; and reviews of long-term technology in the Corporation, technology the evolution of Terms the Committee’s of investments. A copy and technology strategies, to Secretary the Corporate can be obtained by contacting Reference of the Board. Comments and Discussion Board, Board Chair, Committee Chair, and Committee evaluations as well evaluations and Committee Committee Chair, Chair, Board Board, cycle, annually on a three-year performed peer assessments are as director being conducted Chair evaluations and Board Board with comprehensive the next year, Committee evaluations Committee Chair and one year, into take The evaluations year. peer assessments the third and director the Policy. the elements of consideration conducted. were Chair evaluations Committee and Committee In 2020, the above of Committee oversees the implementation The Governance survey-based, using an instrument are The evaluations processes. evaluation and with outside consultant with an developed by CIC in consultation members. Board Crown against the is measured performance Committee, and director Chair, Board, and Reference of Terms set out in their respective duties and expectations The purpose instruments. outlined in the evaluation the specific standards Chair, Committee, the Board, where is to identify areas the evaluations of may benefit by that is managing well and to highlight areas or director and attention. additional focus in writing on the feedback surveys to provide complete Directors Committees, Chairs, and of the Board, contribution and effectiveness up party may follow Chair or a third The Board individual directors. to elicit additional directors with interviews of the written responses improvement. or suggestions for concerns outlining the evaluation reports Committee prepares The Governance approval. and review for submitted to the Board which are results, as a result action required follow-up The Committee recommends and tracks reports, made in the evaluation recommendations of any action items. of implementation

(Summary) If the board has standing If the board other the board, of committees than audit, compensation, committees, and nominating and identify the committees describe their function. and each individual director and each individual director assessed. should be regularly An assessment should consider: or to the board with respect or its mandate committees, to an charter; with respect the applicable individual director, position description(s), as well and skillsas the competencies brings to each individual director the board. Disclose whether the board, its Disclose whether the board, and individual committees, assessed regularly are directors to their effectivenesswith respect and, if yes, and contribution used. describe the process OTHER BOARD COMMITTEES BOARD OTHER section 8 NI 58-101F1, 8 BOARD ASSESSMENTS BOARD NP 58-201, section 3.18 3.18 its committees,The board, NI 58-101F1, section 9 9 NP 58-201,and Disclosure Instrument, CSA Corporate Governance Policy, NI 58-101F1 124 | CORPORATE GOVERNANCE STATEMENT 12 NI 58-101F1 58-101F1 NI Instrument, Disclosure and 58-201, NP Policy, Governance Corporate CSA 11(a) 10 Governance Practices Disclosure ofCorporate CSA National Policy58-101 (b) (iv) (iii) (ii) (i) reasons for not doingso. board, disclosetheissuer’s election orre-election tothe nominating candidates for the board inidentifyingand representation of womenon not consider thelevelof the board. Iftheissuerdoes for electionorre-election to and nominating candidates on theboard inidentifying of representation of women committee considers thelevel how theboard ornominating Disclose whether, andifso, the policy: the following inrespect of policy referred toin(a),disclose If anissuerhasadopteda why ithasnotdoneso. adopted suchapolicy, disclose directors. Iftheissuerhasnot and nomination of women relating totheidentification has adoptedawrittenpolicy Disclose whethertheissuer disclose whyithasnotdoneso. mechanisms of board renewal, director termlimitsorother If theissuerhasnotadopted mechanisms of board renewal. director termlimitsorother include adescriptionof those of board renewal and,ifso, board orothermechanisms limits for thedirectors onits the issuerhasadoptedterm Disclose whetherornot effectiveness of the policy. the of effectiveness committee measures the nominating its or board the how so, if and, whether the policy, and achieving theobjectivesof progress bytheissuerin annual andcumulative effectively implemented, that thepolicyhasbeen the measures taken toensure objectives andkey provisions, a shortsummaryof its (Summary)

representation of womenonthe Board. It istheresponsibility of Executive Counciltoconsider thelevelof comprised of six(6)womenoutof atotalof twelve(12)members(50%). a totalof twelve(12)members(50%).Asof March 31,2021,theBoard was As of December 31,2020, theBoard wascomprised of six(6)womenoutof skill setsrequired for theBoard anddiversitystatistics. when Board appointmentdecisionsare made.Theinformation includesthe Annually, CICforwards information totheshareholder tobeconsidered progress madeinthepercentage of womenservingonCrown Boards. CIC maintainsstatistics regarding diversityof eachCrown Board, including women, Aboriginalpersons,andvisibleminorities. term “diversitycandidates” isnotdefinedbutitinterpreted asincluding Directors, itrequires Crown Boards toinclude“diversitycandidates.” The does notspecifically refer totheidentification andnomination of female CIC hasawritten“Board of Directors’ AppointmentPolicy”. Whilethepolicy not subjecttotermlimits. Telecommunications HoldingCorporation Act.Director appointmentsare the LieutenantGovernorinCouncilpursuanttoTheSaskatchewan The appointmentandremoval of Directors istheprerogative of Comments and Discussion and Comments SaskTel align? Compliance Compliance Partial Partial Does Does Yes Yes

SASKTEL 2020/21 ANNUAL REPORT | 125

No Yes Yes Yes Does SaskTel align? SaskTel Currently, three (3) out of the nine (9) Executive Officers are women (33.3%). Officers the nine (9) Executive (3) out of three Currently, Comments and Discussion with consultation CEO in made by the are appointments Officer Executive of representation the level of to consideration gives The CEO the Board. relevant factors, along with other positions, Officer women in Executive appointments. Officer Executive when making Although the CIC policy requires Crown Boards to include diversity to Boards Crown requires Although the CIC policy for policy does not adopt a specific target the CIC candidates, Board. women on the of representation regarding a target adopted a policy to provide SaskTel 2015, On August 13, positions. Officer women in Executive positions. women in Executive least 40% is to have at The target which of twelve (12) members, six (6) of comprised is currently The Board women (50%). are

(Summary) the target; and the target; cumulative and annual the progress of the issuer in achieving the target.

Disclose whether, and if so, how and Disclose whether, the level of the issuer considers in women of representation positions when officer executive officer making executive appointments. If the issuer level of the does not consider women in of representation positions officer executive officer when making executive the appointments, disclose not doing so. for issuer’s reasons For purposes of this Item, a this For purposes of a number or means “target” or a range of percentage, adopted numbers or percentages, women onby the issuer of the or in executive issuer’s board of the issuer by positions officer a specific date. Disclose whether the issuer regarding has adopted a target women on the issuer’s board. If the issuer has not adopted a disclose why it has not target, done so. Disclose whether the issuer regarding has adopted a target officer women in executive If the the issuer. positions of issuer has not adopted a target, disclose why it has not done so. If the issuer has adopted a to in either (b) or referred target (c), disclose: Disclose the number and (in percentage proportion on the directors terms) of women. are who issuer’s board Disclose the number and (in percentage proportion of officers executive terms) of including all major the issuer, who the issuer, subsidiaries of women. are (i) (ii)

(b) (b) (d) 13 14(a) 14(c) 15(a) NP 58-201,and Disclosure Instrument, CSA Corporate Governance Policy, NI 58-101F1 Contact Us

Website: sasktel.com Phone: 1-800-SASKTEL (1-800-727-5835) Email: sasktel.com/about-us/contact-us Twitter: @SaskTel Facebook: facebook.com/SaskTel Instagram: @SaskTel

Our Locations

SaskTel Head Office SaskTel District Offices Regina Estevan 2121 Saskatchewan Drive 401 Kensington Avenue Regina SK S4P 3Y2 Estevan SK S4A 2B4

SaskTel International Moose Jaw 1855 Lorne Street, 3rd Floor 55 Ominica Street West Regina SK S4P 3Y2 Moose Jaw SK S6H 1W8 P: Toll Free in US and Canada: 1-877-242-9950 North Battleford E: [email protected] 1201 100th Street North Battleford SK S9A 3Z9 Directwest Corporation 355 Longman Crescent Prince Albert Regina SK S4N 6G3 Second Floor P: (306) 777-0333 47 12th Street East Toll Free: 1-800-667-8201 Prince Albert SK S6V 1B3 F: (306) 352-6514 Saskatoon SecurTek Head Office 838 48th Street East 70 1st Avenue North Saskatoon SK S7N 1Y7 Yorkton SK S3N 1J6 Swift Current P: Toll Free in Canada: 1831 North Service Road West 1-844-321-2712 Swift Current SK S9H 3T2 E: [email protected] Weyburn 1711 East Avenue Weyburn SK S4H 2Y7

Yorkton 210 York Road West Yorkton SK S3N 3N4

View this Annual Report at sasktel.com/about-us/company-info/financial-reports

For more information about SaskTel, our initiatives, and operations, please contact CONTACT US CONTACT Corporate Communications at sasktel.com/about-us/news

126 | To obtain additional copies of the 2020/21 SaskTel Annual Report, please call 1-306-777-4897 Our Customer Service Technicians (CSTs) are on the front line and go the extra mile every day. When Pierce McLachlan left a bouquet of flowers for a lonely customer, he was exemplifying a quality that makes us SaskTel proud.

“It was more than a service call,” said McLachlan. “It was about caring for her well-being. After all, at the end of the day, we are all people and we deserve that.”

Pierce wasn’t the first SaskTel CST to go above and beyond. When Landon Adelman learned one of his customers was going through chemotherapy, he left a note in the mailbox that read: “Good luck with the rest of your chemo. You can beat this! Keep fighting and stay strong.”

The note prompted this social media post from the customer: “Just knowing that you took the time to leave this note in my mailbox left me in tears. You are an amazingly wonderful human being.” A YEAR FOR CARING... making outright donations, to providing services where no one else will, to simply being a friend. no one else will, to simply being a services where to providing making outright donations, of humans pulling together to help and support one another. Here at SaskTel, we’re trying to do our part, from trying to do our part, from we’re SaskTel, at Here humans pulling together to help and support one another. of It’s been a year like no other. If there’s anything positive to take from the current COVID-19 situation, it’s the stories it’s the stories situation, COVID-19 the current from anything positive to take If there’s no other. It’s been a year like