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MAKE MORE POSSIBLE

Rogers Communications Inc. 2020 Annual Report OUR PURPOSE

To connect Canadians to a world of possibilities and the memorable moments that matter most in their lives

03 04 06 08 10 12 About Create best-in- Invest in our Deliver Drive profitable Develop class customer networks and innovative growth in all the our people experiences by technology to solutions and markets we serve and a high putting our deliver leading compelling performance customers first in performance and content that our culture everything we do reliability customers will love

14 16 18 20 22 152 Be a strong, A message from A message from Senior Executive 2020 Financial Corporate and socially Edward Joe Officers & Report shareholder responsible Directors information leader in our communities across

2 INC. 2020 ANNUAL REPORT ABOUT ROGERS We are a team of proud Canadians dedicated to making more possible for our customers each and every day.

Our founder, Ted Rogers, believed in the power of communication to enrich, entertain, and embolden Canadians. He followed in his father’s footsteps, and at the age of 27, purchased his first station, CHFI.

From these modest beginnings, Rogers has grown to become a proud Canadian company — a company devoted to delivering the very best in , residential, and media to Canadians and Canadian businesses.

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 3 OUR COMPANY PRIORITIES

In addition to keeping our customers connected and keeping our people safe throughout the pandemic, our six company priorities guided our work and decision-making in 2020. We further improved our operational execution, made well-timed investments to grow our core businesses, and delivered increased long-term shareholder value. Below are some highlights from 2020.

1 Create best-in-class customer experiences by putting our customers first in everything we do

4 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT Improved monthly Wireless postpaid churn by 11 basis points to 1.00%

Accelerated our digital-first plan and added self-serve options during COVID-19, with overall digital adoption up 6 points to 84% and virtual assistant conversations up over 130%

Moved to 100% Canada-based customer care specialists and opened our Kelowna Customer Solution Centre virtually

Introduced an Ignite self-installation program, including a Drop & Go option, Launched Express Pickup, making Rogers as a safe, easy, no-contact way for customers the only national carrier to give customers the to install our Ignite ™ and Ignite TV ™ convenience of ordering online and picking up services, with over 93% of customers easily in-store on the same day installing their products themselves since the beginning of April

Expanded Pro On-the-Go™ to more cities across Canada, including Vancouver, , Edmonton, and Ottawa

Supported customers with goodwill measures at the onset of COVID-19 by waiving pay-per-use international roaming fees in all available destinations until April 30, 2020 and long-distance voice calling fees across Canada until June 30, 2020

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 5 2 Invest in our networks and technology to deliver leading performance and reliability

6 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT Launched and expanded Expanded our cable network through the Canada’s first and largest acquisition of Cable Cable Inc. and Ruralwave Inc. in the Kawartha Lakes region, and 5G network to over 170 announced a partnership with Southwestern cities and towns and started Integrated Fibre Technology (SWIFT) to bring rolling out Canada’s first 5G services to underserved communities in the Regional Municipality of Waterloo and Dufferin, standalone core network in Norfolk, Oxford, and Simcoe counties in Ontario , Ottawa, , and Vancouver to be ready to support future devices and chipsets as they become available

Started rolling out wireless home Evolved our 5G partner ecosystem and broadband Internet service to more than 5G research and development – launched 100 communities in Southwestern Ontario Canada’s first 5G smart city in Kelowna in partnership with UBC; launched 5G Create Lab at Communitech to develop leading Strengthened our Advanced Services 5G solutions portfolio to make it easier for businesses and governments to serve the public, including with new Internet of Things (IoT) Named best in Canada collaborations for the second year in a row, in July, by umlaut, the global leader in mobile network benchmarking Added capacity and managed traffic where needed to ensure customers stayed connected during COVID-19, with total Earned the number one spot in the Canada traffic on our networks up by over 50% during Wireless Network Quality Study by J.D. Power the first few months in the West and Ontario, in April

Ranked most consistent national wireless and broadband Internet provider in Canada by Ookla, in Q3 and Q4 of 2020

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 7 3 Deliver innovative solutions and compelling content that our customers will love

8 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT Launched Ignite SmartStream™, an entertainment add-on for Ignite Internet customers, to give customers access to their favourite streaming services in one place

Launched 14 new apps and subscription video on-demand services on Ignite TV and expanded free content on Ignite TV with the introduction of new apps, including Fun at Home and Health at Home, tubi, XITE, and zone-ify

Leveraged our media assets to advance inclusion and diversity, including a prime time special Ending Racism: What Will it Take?, a new digital series LIVE: #Cityline Real on Race, and a new ™ interview series Top of HER Game™

Delivered industry-leading coverage with the return of live sports, with Sportsnet the most-watched sports media brand in Canada in 2020, and Sportsnet National the number one Canadian network overall in prime time in August

Launched access to Amazon Music on Ignite TV so customers can listen to their favourite music, as well as thousands of playlists and stations

Provided free access for our customers to a rotating selection of channels for a select period of time during COVID-19 and temporarily removed data usage caps for customers on limited home Internet plans so they could stream, surf, and connect during the initial phase of the pandemic

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 9 4 Drive profitable growth in all the markets we serve

10 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT Attracted 245,000 218,000 net Wireless postpaid net Ignite TV subscribers subscribers

Expanded Generated consolidated free cash of adjusted EBITDA margin by $2,366 90 basis million points up 4%

Ended the year with strong liquidity position of $5.7 billion

Paid over $1 billion in dividends

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 11 5 Develop our people and a high performance culture

12 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT Launched new five-year Inclusion and Diversity Strategy with measurable targets and held 85 Inclusion & Diversity events and listening sessions

Delivered enhanced programs and employee communications to ensure employees were supported and informed during COVID-19

Extended our employee virtual health care solution to provide access to health care professionals during COVID-19

Received Canada’s Top 100 Employers Award for the eighth year in a row and reclaimed certification for Canada’s Most Admired Corporate Cultures in 2020

Achieved all-time high employee engagement score of 87%, up two points from 2019 and seven points above best-in-class

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 13 6 Be a strong, socially responsible leader in our communities across Canada

14 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT Partnered with Food Canada and Jays Care Foundation for Step Up to the Plate, using the ™ for the largest food hamper program in the organization’s history, distributing over eight million meals for Canadian families

Launched an awareness campaign across media and digital assets to raise money for Food Banks Canada to address acute food shortages during COVID-19; and donated more than one million meals through a corporate donation and employee contributions

Donated $1 million to Jays Care Foundation to deliver programs to support 35,000 youth across Canada, including virtual summer camps for 10,000 marginalized youth

Announced a $10 million commitment Raised approximately $1 million through the over the next five years in free advertising and Hearts and Smiles campaign in support of creative services via our sports and media assets The Frontline Fund to help Canada’s frontline to charities and small businesses that support health care workers during COVID-19 Black, Indigenous and People of Colour and equity-seeking communities

Launched the 60,000 Hours Challenge as part of The 60 Project to mark our 60th anniversary in 2020, with employee volunteers supporting over 200 organizations

Awarded scholarships, through the Ted Rogers Scholarship Fund, to over 400 young people to pursue post-secondary education, with an estimated 75% of community recipients from Black, Indigenous, and People of Colour communities

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 15 Edward S. Rogers Chair of the Board A MESSAGE Rogers Communications Inc. FROM EDWARD

Dear Fellow Shareholders,

2020 tested our business as never before but our Finally, our Sports and Media business was notably team rose to the challenge. Our networks were impacted by COVID-19. We experienced lower strong and resilient, we demonstrated leadership sports-related revenue associated with the Toronto in delivering 5G to Canadians, our balance sheet Blue Jays not being able to play in front of fans at remained sound, and we supported our most the Rogers Centre, as well as overall declines in vulnerable communities. television and radio advertising revenue across the country. However, we have the best sports assets in Navigating our business effectively through the country, and we know fans are excited with the challenging times prospects of watching and supporting their favourite teams as major sports leagues continue to recover. In 2020, while we prioritized the actions we needed to take as a result of COVID-19, our results started Healthy balance sheet, strong cash flow to improve over the second half of the year and we generation, and delivering results for ended the year with a strong balance sheet and shareholders solid efficiency gains across our businesses. While consolidated revenue was down 8%, we were able Despite these pandemic-driven pressures affecting to expand consolidated adjusted EBITDA margins our 2020 results, our underlying assets remain very by 90 basis points. strong. We generated free cash flow of $2.4 billion, an increase of 4%, and we returned $1.0 billion in In our Wireless business, we ended the year with 2.5 dividends to shareholders. As the economy moves million unlimited data customers, which grew 79% past the COVID-19 environment, we anticipate solid year over year, and represents the largest customer improvements in our business, underpinned by a base in Canada that is no longer paying overage healthy balance sheet and targeted and consistent charges. However, we felt the impacts of global investments in our networks. travel restrictions and reduced store traffic due to the pandemic’s retail restrictions, but we increased I am tremendously proud of our operational our customer base in the second half of the year and transformation, in real-time, to keep our employees attracted 245,000 net new wireless subscribers as safe and our customers connected, while still customers embraced our digital transaction options. pursuing opportunities to grow and innovate.

In our Cable business, revenue was consistent with Investing for the future and launching Canada’s last year, adjusted EBITDA grew 1%, and we expanded largest and most reliable 5G network margins by 50 basis points. We saw significant growth in our Ignite TV subscriber base, which grew 67% on This innovation was demonstrated as we solidified a year over year basis to over 540,000 subscribers. our 5G leadership position, launching and expanding We also achieved capital efficiency gains through the Canada’s first and largest 5G network to more than growing popularity of customer self-install options for 170 cities and towns. We also began our rollout Ignite Internet and Ignite TV. of Canada’s first 5G standalone core network in Montreal, Ottawa, Toronto, and Vancouver.

16 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT With increased adoption of our 5G-ready Rogers Infinite plans, Rogers now has the largest unlimited customer base in Canada. Rogers continues to deliver the best wireless network in Canada, an achievement recognized for the second year in a row by umlaut, the global leader in mobile network benchmarking. We were also ranked number one in the Canada Wireless Network Quality Study by J.D. Power in Ontario and in the West, and we were ranked most consistent national wireless and broadband Internet provider in Canada by Ookla in November.

At Rogers for Business, we continue to enable small business and entrepreneurs to stay productive and connected to their customers and people. With innovative IoT solutions and collaboration tools, we provide seamless solutions for businesses and governments. As 5G’s possibilities come to life and the economy regains stable footing, we will be there

As the economy moves past the COVID-19 environment, we anticipate solid improvements in our business, underpinned by a healthy balance sheet and targeted and consistent investments in our networks. like to thank the Rogers team for their incredible efforts in giving back to our communities from coast- to support our Rogers for Business customers as they to-coast-to-coast this year. Setting record levels of rebuild and reconnect. volunteerism and giving across the company, the Rogers family was pleased to support these efforts Our #1 priority is to deliver the best customer with $60 million in donations to charities across the experience, and this year, our 100% Canadian-based country for families in need. customer care team stepped up to provide the additional support and care needed by customers In an unprecedented year, Rogers Communications in these extraordinary times. At the peak of the showed unwavering leadership and commitment pandemic, we developed and launched interactive to our customers, incredible resilience in the face digital touchpoints and self-serve options to keep our of the pandemic’s challenges, and entrepreneurial customers’ needs met despite the physical distance. spirit and focus on our long-term future growth and Customers have embraced these advancements and success. I want to express my thanks to our President we will continue to build on them to keep pace with and CEO, Joe Natale, the management team, and our evolving customer needs. full team of approximately 23,500 for all their efforts as we collectively showed our strength and resilience Supporting our communities as a leading to deliver for Canadians during an unprecedented Canadian corporation year.

While continuing to stay focused on the future and ensure our business ran smoothly, our Rogers Edward S. Rogers team also worked to ensure we supported the most Chair of the Board vulnerable residents in our communities. I would Rogers Communications Inc.

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 17 Joe Natale President and CEO A MESSAGE Rogers Communications Inc. FROM JOE

My Fellow Shareholders,

2020 was an extraordinary year in so many ways. of our wireless, cable, and sports and media assets remain intact. With exceptional assets, a strong Our company turned 60 – a major milestone that balance sheet, and efficient operations across all reminded us of our deep history in Canada and of our businesses, Rogers is well positioned as the the generations of innovation we helped catalyze. economy recovers. That history met the future head-on when in January of last year, we were proudly the first carrier to bring Throughout the pandemic, with millions of Canadians a 5G network to Canada as we launched this cutting- relying on us to work, learn, and connect from home, edge technology in downtown Toronto, Montreal, our networks have served as the connective tissue Vancouver, and Ottawa and continued to drive across peoples’ lives. Despite the unprecedented Canada’s largest 5G network to more than spike in demand with home Internet traffic shooting 170 communities across Canada. up more than 50%, our networks held up incredibly well. Three months into 2020, however, all of us were faced with a challenge none of us could have predicted. Being ready for this moment took decades of investment – $60 billion over the last 35 years in our Every Canadian was affected by the pandemic, as was networks. These investments contribute to Canadians every aspect of our wireless, cable, and sports and enjoying the fastest mobile download speeds media businesses. Customers worked from home in the world – faster than all other G7 countries – and stopped travelling. Work from home became the according to OpenSignal, an independent global rule versus the exception. Sports leagues paused and body that provides analytics and insights on wireless stadiums were idled. Through all these changes, our connectivity. networks and operations had to shift seamlessly to ensure Canadians stayed connected and served and But investment alone didn’t get us here. The we had to find new ways of doing business in order extraordinary efforts of our team enabled network to offset the significant financial pressures being felt connection, but also, personal connection. across the business. Our Rogers Sports & Media teams turned basements We saw sharp revenue and adjusted EBITDA declines and backyards into studios to deliver the news associated with COVID-19 of $1.4 billion and $500 to Canadians 24/7. And our Sportsnet team kept million, respectively, with our wireless and sports Canadians entertained through creative, digital and media businesses feeling the most impact. Our programming during a required hiatus from live cable business was resilient, with stable revenue sports. and profitability through the period, and expanding margins through our efficiency initiatives. Despite Our strong culture of innovation was also evident the environment, we grew free cash flow by 4% in in our customer service pivots. Our offerings and 2020, and ended the year with a healthy balance delivery transformed in record time. In under five sheet, including $5.7 billion in available liquidity. weeks, we moved 90% of our team to work from Notwithstanding the short-term impacts on our home – including our 7,000 Canada-based contact businesses, the fundamental long-term value centre employees.

18 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT The fundamentals of our operations accelerated our digital service offerings. Our apps helped customers navigate self-installations and service issues without technicians having to enter homes. While many customers have embraced digital, for those who required a retail experience, we kept our stores open where allowed and evolved our unique Pro On-the-Go service to bring the retail experience to our customers’ front doors. The launch of our Express Pickup service – a first in our industry – enabled customers to order their devices Sisters, to transforming the Rogers Centre into the online but pick up at a store on the same day. These largest food pantry from which to distribute eight capabilities were built with durability in mind and million meals for Canadian families as part of our Step were accelerations of initiatives already underway. Up To The Plate initiative with Jays Care Foundation. They will form the basis of our operating platform We used our media assets to ensure women fleeing going forward long past COVID-19 delivering better domestic violence had awareness of who to call, and customer experiences and lower operating costs. access to free phones and data plans once they found safety in shelters. Millions of dollars in scholarships In 2020, with more customers looking to connect, and community grants went to help rising talent across we added over 120,000 customer relationships across the country. our products. We now have more than 540,000 Ignite TV customers and 2.5 million Infinite customers. We expect shareholders to benefit from the Our continued focus on improving the customer investments we are making across our businesses, experience has yielded a significant increase in our particularly with our 5G network. Going forward, likelihood to recommend scores across the business. you should expect Rogers to maintain its disciplined and balanced approach to capital allocation, with a 2020 was also an important year for new action prioritization on growing our core businesses, while tackling anti-Black racism and renewed efforts continuing to return steady dividends and excess for inclusion and diversity within and beyond our capital to shareholders over the long term. workplace. We reset our five-year Inclusion & Diversity strategy with meaningful reporting targets. We signed a pledge to the BlackNorth initiative and became a Rogers has been part of the Canadian partner of the Black Professionals in Tech Network to fabric for 60 years. And today, as our onboard more Black talent into our company. And nation moves through the stages of we mandated Unconscious Bias training for all our recovery and rebuilds what’s been lost, leaders. Our work here continues in 2021. we will be there to help Canadians create a new, and better, future. In a year that tested our team like no other, we achieved record employee engagement levels (87%) and secured our position as one of Canada’s Top 100 In a year like no other, I am tremendously proud of Employers for the 8th year in a row. We also reclaimed our accomplishments and the dedication of our team our certification as one of Canada’s Most Admired to keep our customers and Canadians connected. Corporate Cultures. I would also like to thank you, our shareholders, for your ongoing support. Building out the deep The engagement, and helping hands, of our team footprints of our founder Ted Rogers, we proudly reached beyond the virtual walls of our organization continue our path of innovation and smart investments and into our most vulnerable communities. We to make more possible for Canadians. achieved new company records for volunteerism and supported nearly 1,500 charities. We leveraged the full range of our unique corporate assets – from My very best, giving free devices and plans to Big Brothers Big Joe

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 19 SENIOR EXECUTIVE OFFICERS DIRECTORS

As at March 4, 2021

1 2 3 4 5

6 7 8 9 10

11

1. Joe Natale 7. Graeme McPhail President and Chief Legal and Regulatory Chief Executive Officer Officer and Secretary

2. Eric P. Agius 8. Sevaun T. Palvetzian Chief Customer Officer Chief Communications Officer

3. Jordan R. Banks 9. Dean Prevost President, Rogers Sports & Media President, Connected Home and Rogers for Business 4. Lisa L. Durocher Executive Vice President, Financial 10. James M. Reid and Emerging Services Chief Human Resources Officer

5. Jorge Fernandes 11. Tony Staffieri,FCPA, FCA Chief Technology and Chief Financial Officer Information Officer

6. Brent R. Johnston President, Wireless

20 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT SENIOR EXECUTIVE OFFICERS DIRECTORS

As at March 4, 2021

1 2 3 4 5

6 7 8 9 10

11 12 13 14

1. Edward S. Rogers 6. Ellis Jacob, C.M., O.Ont., FCPA, 11. The Hon. David R. Peterson, Chair FCA, FCMA PC, QC President and CEO of Chairman Emeritus, 2. Bonnie R. Brooks, C.M. Cineplex Inc. Cassels Brock & Blackwell LLP Company Director 7. Philip B. Lind, C.M. 12. Loretta A. Rogers 3. Robert Dépatie Vice Chair Company Director Company Director 8. John A. MacDonald 13. Martha L. Rogers 4. Robert J. Gemmell Lead Director Company Director Company Director 9. Isabelle Marcoux, C.M. 14. Melinda M. Rogers-Hixon 5. Alan D. Horn, CPA, CA Chair, Transcontinental Inc. Deputy Chair President and Chief Executive Officer,Rogers 10. Joe Natale Limited President and Chief Executive Officer

ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT 21 MANAGEMENT’S DISCUSSION AND ANALYSIS

2020 Financial Report

23 MANAGEMENT’S DISCUSSION AND ANALYSIS 56 Managing Our Liquidity and Financial Resources 56 Sources and Uses of Cash 25 Executive Summary 59 Financial Condition 25 About Rogers 60 Financial Risk Management 25 2020 Highlights 63 Dividends and Share Information 27 Financial Highlights 65 Commitments and Contractual Obligations 65 Off-Balance Sheet Arrangements 28 Understanding Our Business 28 Products and Services 66 Governance and Risk Management 29 Competition 66 Governance at Rogers 31 Industry Trends 67 Corporate Responsibility 69 Income Tax and Other Government Payments 33 Our Strategy, Key Performance Drivers, and Strategic 69 Risk Management Highlights 70 Risks and Uncertainties Affecting Our Business 33 Our Strategic Priorities 77 Controls and Procedures 34 2020 Objectives 34 Key Performance Drivers and 2020 Strategic Highlights 78 Regulation In Our Industry 37 2021 Objectives 80 Wireless 37 Financial and Operating Guidance 82 Cable

38 Capability to Deliver Results 85 Other Information 38 Leading Networks 85 Accounting Policies 40 Powerful Brands 88 Key Performance Indicators 40 Widespread Product Distribution 91 Non-GAAP Measures and Related Performance 40 First-Class Media Content Measures 41 Customer Experience 93 Summary of Financial Results of Long-Term Debt 41 Engaged People Guarantor 41 Financial Strength and Flexibility 94 Five-Year Summary of Consolidated Financial Results 42 Widespread Shareholder Base and Dividends

43 2020 Financial Results 43 Summary of Consolidated Results 44 KeyChangesinFinancialResultsThisYearComparedto 2019 45 Wireless 46 Cable 47 Media 48 Capital Expenditures 49 Review of Consolidated Performance 52 Quarterly Results 55 Overview of Financial Position

22 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 23 | and similar expressions, ROGERS COMMUNICATIONS INC. could, expect, may, anticipate, 2020 ANNUAL REPORT assume, believe, likely,potential, intend, guidance, estimate, plan, outlook,although not project, all target, forward-looking predict, information includes them; on our currentexpectations, assumptions, objectives and other and factors,confidential most strategies and of which and proprietary, are reasonable at on that the estimates, time weincorrect; they and were believe applied to but may have prove to been be subscribe; of new services; financial condition, or results. • includes conclusions, forecasts, and projections that are based • was approved by our management onOur the date of forward-looking this MD&A. informationand includes projections related conclusions, to forecasts, non-GAAP the following measures items, somePerformance (see of Measures”), among which others: “Non-GAAP are • Measures revenue; and• Related total service revenue; •adjustedEBITDA; • capital expenditures; • cash income tax•freecashflow; payments; •dividendpayments; • the growth of new• products and expected services; growth in subscribers and the• services the to cost which of they acquiring and retaining subscribers• and deployment continued cost reductions and• efficiency improvements; our debt leverage ratio; • the COVID-19 pandemic (COVID-19)• and its all impact other on statements us; that and are not historicalWe facts. basefollowing our factors, among others: conclusions,• forecasts, general economic and and industry• growth projections rates; currency exchange on rates and• interest the rates; product pricing levels and• competitive intensity; subscriber growth; • pricing, usage, and churn• rates; changes in government regulation; • technology deployment; • availability of devices; • timing of new product• launches; content and equipment costs; • the integration of acquisitions; • industry structure and stability;• and the anticipated impact of COVID-19 on our operations, liquidity, about, among other things, ourperformance business, and operations, condition and approved financial bydate our of management on this the assumptions MD&A. include, but This are forward-lookingobjectives not information limited and to, and strategies statementsour to these about our achieve beliefs, thoseintentions. objectives, plans, and about expectations,Forward-looking information: anticipations, estimates,• typically or includes words like subscribers, the Company ™ and refers to the twelve Ignite TV refers to the twelve months refers to the three months last year nto Stock Exchange (TSX: RCI.A ibers and Phone subscribers. In and Analysis (MD&A) contains business and our performance for refers to the three months ended nue per account (ARPA), customer refers to the three months ended refers to the three months ended ,thisyear 2021 Rogers Communications © fourth quarter second quarter third quarter first quarter Rogers and related marks are trademarks of Rogers ended December 31, 2020 ended December 31,months 2020, ended and Decembercompared to 31, the equivalent 2019. periods in2019, All as 2019 applicable, or unless results as otherwise at indicated. December commentary 31, is Effective January 1, 2020, weand updated our key Cable segment performance financial presenting indicator Cable disclosures average reve suchrelationships, that and we marketsubscriber began reporting penetration. to report We Internet and also amended our This MD&A includes “forward-lookinglooking information” statements” and within “forward- laws the (collectively, meaning “forward-looking information”), of and applicable assumptions securities ABOUT FORWARD-LOOKING INFORMATION ™ Management’s Discussion and Analysis This Management’s Discussion important information about our refer to Rogers Communications Inc.to and its the subsidiaries. RCI legal refers entitysubsidiaries. Rogers Rogers also Communications holds Inc., interestsventures. in not various including investments its and We are publicly traded onand the RCI.B) Toro and on the New York Stock ExchangeIn (NYSE: RCI). this MD&A, the year ended December 31,conjunction 2020. This MD&A should with beStatements, read in our whichInternational 2020 have Financial Reporting Audited Standards beenInternational (IFRS) Accounting as Standards prepared Consolidated issued Board (IASB). by in the Financial All accordance dollar amounts with are inAll Canadian percentage changes dollars are unless calculated otherwise usingas stated. the they rounded appear numbers in2021 the and tables. was This MD&A approvedThis is MD&A by current includes RCI’s forward-looking as Board statementsSee at of and “About March Forward-Looking assumptions. Directors Information” 4, for (the more Board). information. We, us, our, Rogers, Rogers Communications, March 31, 2020, June 30, 2020, September 30, 2020, addition to the changeslonger to our report key performance revenue indicators,Television, by we and no our Phone) Cable andrevenue” amount. instead, sub-products These we (i.e. changes presentwe are Internet, manage a a our single result business of “service technology due the to used way the in ongoing torepresent which convergence deliver the of key the Internet metrics againstour and which Cable we television will segment. services measureCable” See growth and and “Results in “Key Performance of Indicators” for our more information. Reportable Segments – removing legacy Television subscr Communications Inc. or anbrand affiliate, names, logos, used and under markstheir are licence. respective trademarks All owners. and/or copyright other of MANAGEMENT’S DISCUSSION AND ANALYSIS

Except as otherwise indicated, this MD&A and our forward-looking Accordingly, we warn investors to exercise caution when information do not reflect the potential impact of any non-recurring considering statements containing forward-looking information or other special items or of any dispositions, monetization events, and caution them that it would be unreasonable to rely on such mergers, acquisitions, other business combinations, or other statements as creating legal rights regarding our future results or transactions that may be considered or announced or may occur plans. We are under no obligation (and we expressly disclaim any after the date on which the statement containing the forward- such obligation) to update or alter any statements containing looking information is made. forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future RISKS AND UNCERTAINTIES events, or otherwise, except as required by law. All of the forward- Actual events and results can be substantially different from what is looking information in this MD&A is qualified by the cautionary expressed or implied by forward-looking information as a result of statements herein. risks, uncertainties, and other factors, many of which are beyond our control, including but not limited to: BEFORE MAKING AN INVESTMENT DECISION • regulatory changes; Before making any investment decisions and for a detailed • technological changes; discussion of the risks, uncertainties, and environment associated • economic, geopolitical, and other conditions affecting with our business, fully review the sections in this MD&A entitled commercial activity; “Regulation In Our Industry” and “Governance and Risk • unanticipated changes in content or equipment costs; Management”, as well as our various other filings with Canadian • changing conditions in the entertainment, information, and/or and US securities regulators, which can be found at sedar.com and communications industries; sec.gov, respectively. • the integration of acquisitions; • changing consumer habits and preferences; FOR MORE INFORMATION • litigation and tax matters; You can find more information about us, including our Annual • the level of competitive intensity; Information Form, on our website (investors.rogers.com), on • the emergence of new opportunities; SEDAR (sedar.com), and on EDGAR (sec.gov), or you can e-mail us • external threats, such as epidemics, pandemics, and other public at [email protected]. Information on or connected health crises, natural disasters, the effects of climate change, or to these and any other websites referenced in this document does cyberattacks, among others; and not constitute part of this MD&A. • new interpretations and new accounting standards from accounting standards bodies. You can also find information about our governance practices, corporate social responsibility reporting, a glossary of These risks, uncertainties, and other factors can also affect our communications and media industry terms, and additional objectives, strategies, and intentions. Many of these risks, information about our business at investors.rogers.com. uncertainties, and other factors are beyond our control or our current expectations or knowledge. Should one or more of these risks, uncertainties, or other factors materialize, our objectives, strategies, or intentions change, or any other factors or assumptions underlying the forward-looking information prove incorrect, our actual results and our plans could vary significantly from what we currently foresee.

24 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 25 | ted 140 (64) ures. These are not 6.8% (3.6 pts) 2019 % Chg 6,212 (6) 2,135 (19) 2,8074,5262,278 (18) (5) 7,156 4 9,2504,345 (8) (8) (6) 2,072 (22) 2,043 (22) 3,9541,919 – 1 48.5% 0.5 pts 41.2% 0.9 pts 60.7%47.0% 1.1 pts 0.7 pts 12,965 (8) 15,073 (8) $ 3.99 (21) $ 4.17 (18) ions to right-of-use assets. 51 ROGERS COMMUNICATIONS INC. 3.2% 2020 Years ended December 31 4,321 6,579 8,530 4,067 5,857 1,725 2,312 2,366 1,606 1,592 3,946 1,935 49.0% 42.1% 61.8% 47.7% 11,955 13,916 $3.15 $3.42 2020 ANNUAL REPORT Almost all of ourhighly operations skilled and and salesemployees. are diversified Our in workforce Canada. head of Wenumerous office have approximately is a offices 23,500 inoperations Toronto, across in Ontario three reportable and Canada. segments.Business” we See for “Understanding have more We information. Our report our results of es and should not be considered substitutes or alternatives for GAAP meas luding how we calculate them and the ratios in which they are used. ent net of proceeds on disposition, but does not include expenditures for spectrum licences or addit 2 4 dio station, CHFI, in 1960. We have 5 2 3 2 1 2 2 Includes additions to property, plant andCalculated equipm using Wireless service revenue. Calculated using Wireless total revenue. As defined. See “Key Performance Indicators”. Adjusted EBITDA, adjusted net income, and free cash flow are non-GAAP measur defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Rela Performance Measures” for information about these measures, inc (In millions of dollars, except margins and per share amounts) Consolidated Total revenue 3 4 5 1 2 KEY FINANCIAL INFORMATION 2020 HIGHLIGHTS grown to become a leadingstrives technology to and provide media the companymedia very that to best in Canadianspublicly wireless, and residential, traded sports, Canadian on and RCI.B) the businesses. and Toronto on Our the Stock New shares York Exchange Stock are Exchange (TSX: (NYSE: RCI). RCI.A and Rogers is a proudpossible Canadian company for dedicated Canadians toRogers, making each purchased more his and first every ra day. Our founder, Ted Executive Summary ABOUT ROGERS Adjusted EBITDA margin Basic earnings per share Adjusted basic earnings per share Cash provided by operating activities Free cash flow Wireless Service revenue Revenue Adjusted EBITDA Adjusted EBITDA service margin Capital expenditures Adjusted EBITDA Media Revenue Adjusted EBITDA margin Net income Adjusted net income Adjusted EBITDA margin Cable Revenue Adjusted EBITDA Adjusted EBITDA margin Adjusted EBITDA Total service revenue MANAGEMENT’S DISCUSSION AND ANALYSIS

KEY PERFORMANCE INDICATORS As at or years ended December 31 2020 2019 Chg

Subscriber results (in thousands) 1 Wireless postpaid net additions 245 334 (89) Wireless prepaid net losses (142) (97) (45) Wireless subscribers 10,943 10,840 103

Internet net additions 57 104 (47) Internet subscribers 2,3 2,598 2,534 64

Ignite TV net additions 218 284 (66) Total Ignite TV subscribers 544 326 218

Customer relationships net additions 12 21 (9) Total customer relationships 2,3 2,530 2,510 20

Additional Wireless metrics 1 Postpaid churn (monthly) 1.00% 1.11% (0.11 pts) Blended ABPU (monthly) $ 63.24 $ 66.23 ($ 2.99) Blended ARPU (monthly) $ 50.75 $ 55.49 ($ 4.74)

Additional Cable metrics 1 ARPA (monthly) $130.70 $131.71 ($ 1.01) Penetration 55.3% 56.1% (0.8 pts)

Ratios Capital intensity 1 16.6% 18.6% (2.0 pts) Dividend payout ratio of net income 1 63.4% 50.0% 13.4 pts Dividend payout ratio of free cash flow 1,4 42.7% 44.9% (2.2 pts) Return on assets 1 4.1% 5.5% (1.4 pts) Debt leverage ratio 4 3.0 2.9 0.1

Employee-related information Total active employees 23,500 25,300 (1,800)

1 As defined. See “Key Performance Indicators”. 2 On September 30, 2020, we acquired approximately 2,000 Internet subscribers and customer relationships as a result of our acquisition of Ruralwave Inc., which are not included in net additions, but do appear in the ending total balance for December 31, 2020. 3 On October 1, 2020, we acquired approximately 5,000 Internet subscribers and 6,000 customer relationships as a result of our acquisition of Cable Cable Inc., which are not included in net additions, but do appear in the ending total balance for December 31, 2020. 4 This ratio uses one or more of free cash flow, adjusted EBITDA, and adjusted net debt, all of which are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate them and the ratios in which they are used.

26 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 27 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NET INCOME AND ADJUSTED NET INCOME Net income decreased 22%19% and this adjusted net year,EBITDA. income primarily decreased See as a “Reviewinformation. result of of Consolidated the decrease Performance” in for adjusted SUBSTANTIAL more FREE CASH FLOW SUPPORTS FINANCIAL FLEXIBILITY We returned substantial cash topayment shareholders of this $1,011 year million through in the $0.50 dividends. per share In dividend addition, on we January declared 27, 2021. a Our cash providedyear, by primarily operating as a activities resultincreased decreased of 4% by lower this adjusted 5% EBITDA.lower year this Free to cash capital $2,366 flow EBITDA. million, expenditures, primarily partially as a offset resultOur of debt by leverage ratio lower was2.9 3.0 as as adjusted at at December December 31, 31, 2019, driven 2020, by up lower from Our adjusted EBITDA. overall weighted averageDecember cost of 31, borrowings 2020 wasaverage 4.09% (2019 as term at – toDecember 4.30%) 31, 2020 maturity and (2019 – 14.1 our on years). overall ourWe weighted ended debt the wasliquidity year (2019 12.8 with – $2.5 approximately yearsbillion) billion), $5.7 as available including billion $2.6 under at $0.6 of billion our available billion (2019 (2019 – –receivables $0.4 and $1.6 securitization billion) letter program, availablebillion) in and of under cash and $2.5 credit our cash equivalents. billion $1.2 facilities, (2019 billion – $0.5 Cable adjusted EBITDA increased 1%of this various year, cost efficiencies. primarily as a result Media adjusted EBITDA decreasedlower 64% sports this and year advertising primarily revenue,offset due by as lower to discussed sports programming above, and partially suspension operating of costs due major to sports the leaguesquarter from and mid-March the until postponed theseasons. start third of the 2020-2021 NHL and NBA unlimited data ™ . ™ sons, which traditionally Rogers Infinite luding at the , mentioned decreases in revenue, oughout this year enabled us to Today’s Shopping Choice plans. Wireless equipment revenuegross decreased additions as a and result lowerduring of device COVID-19. lower upgrades by existing customers Cable revenue was inConnected line Home with roadmap, driven 2019.significant by We growth our remain in Ignite focused our TV on Igniteyear. product, our TV with subscriber base during the past Media revenue decreased by 22%lower this sports-related year, primarily revenue, asdue inc a to result of the impactleagues from of mid-March until COVID-19, the the thirdstart quarter, suspension of and of the the postponed major 2020-2021start NHL sports early in and the NBA fourthrelated quarter, sea as to well as softness lowerhigher advertising revenues in revenue at the advertising market, partially offset by partially offsetsignificantly improved by our Wireless the equipmentcost margin, efficiencies and and shift various productivity initiatives. to device financing, which has ADJUSTED EBITDA Adjusted EBITDA decreased 6%decrease this in year, primarilyadjusted EBITDA Wireless due margin of to 42.1%, adjusted an a expansion 6% of EBITDA, 90Wireless basis adjusted points. EBITDA with decreased 6%flow-through this a impact year of as consolidated the a result afore of the prioritize the actions wecontinue needed to to take makeensure as high customers a stayed priority connected result during investments of this critical COVID-19, in time. our network,REVENUE and Revenue decreased bydecrease in 8% Wireless service this revenuerevenue. and year, a 22% decrease largely in Media drivenWireless by service an revenue 8% decreasedresult by of 8% lower thisduring roaming COVID-19, year, revenue and largely lower due overage asof to revenue, a the primarily global as continued travel a adoption result restrictions of our FINANCIAL HIGHLIGHTS Our solid financial position thr MANAGEMENT’S DISCUSSION AND ANALYSIS

Understanding Our Business Rogers is a leading Canadian technology and media company. • text messaging; •e-mail; THREE REPORTABLE SEGMENTS • global voice and data roaming, including Roam Like Home™ We report our results of operations in three reportable segments. and Fido Roam™; Each segment and the nature of its business are as follows: • bridging phones with wireless phones through products like Rogers Unison™; Segment Principal activities • machine-to-machine solutions and Internet of Things (IoT) Wireless Wireless telecommunications operations for solutions; and Canadian consumers and businesses. • advanced wireless solutions for businesses. Cable Cable telecommunications operations, including CABLE Internet, television, (phone), and smart We are one of the largest cable providers in Canada. Our cable home monitoring services for Canadian network provides an innovative and leading selection of high- consumers and businesses, and network broadband Internet access, and online connectivity through our fibre network and data viewing, phone, smart home monitoring, and advanced home WiFi centre assets to support a range of voice, data, services to consumers in Ontario, , and on the island networking, hosting, and cloud-based services for of Newfoundland. We also provide services to businesses across the business, public sector, and carrier wholesale Canada that aim to meet the increasing needs of today’s critical markets. business applications. Media A diversified portfolio of media properties, including sports media and entertainment, In 2019, we adopted ’s new WiFi solution as a next step on television and radio , specialty our innovation roadmap. This whole-home networking solution channels, multi-platform shopping, and digital provides customers with a simple, fast, and intuitive way to control media. and manage their connected devices. The cloud-based platform links to Data Over Cable Service Interface Specifications (DOCSIS) 3.1 See “Capability to Deliver Results” for more information about our WiFi gateway devices to deliver fast, reliable connectivity in the home extensive wireless and cable networks and significant wireless and allows customers to easily add and control devices and pair ™ spectrum position. Ignite WiFi pods that boost signal strength, and use voice controls toseewhoisonthenetwork,allinasafeandsecuremanner. Wireless and Cable are operated by our wholly owned subsidiary, Rogers Communications Canada Inc. (RCCI), and certain of our In 2020, in response to COVID-19, we launched customer self- other wholly owned subsidiaries. Media is operated by our wholly installation capabilities within Cable as a safe, easy, no-contact way ™ owned subsidiary, Rogers Media Inc., and its subsidiaries. for our customers to install our Ignite Internet and Ignite TV services. Since launching in late March, over 93% of our Cable installations have been through the self-install program. We also PRODUCTS AND SERVICES launched Blitzz™, a remote visual assistance tool that enables customers to access support virtually and reduces the need to WIRELESS deploy field technicians for installation and service calls. Rogers is a Canadian leader in delivering a range of innovative Internet services include: wireless network technologies and services. We were the first • Internet access (including basic and unlimited usage packages), Canadian carrier to launch a 5G network, in January 2020, and we security solutions, and e-mail; have the largest 5G network in Canada, serving over 160 • access speeds of up to one gigabit per second (Gbps), covering communities and 45% of the Canadian population as at our entire Cable footprint; December 31, 2020. Our postpaid and prepaid wireless services • Rogers Ignite™ and Fido Internet unlimited packages, combining areofferedundertheRogers™,Fido™,andchatr™ brands, and fast and reliable speeds with the freedom of unlimited usage provide consumers and businesses with the latest wireless devices, and options for self-installation; services, and applications including: • Rogers Ignite WiFi Hub, offering a personalized WiFi experience • mobile high-speed Internet access, including our Rogers Infinite with a simple digital dashboard for customers to manage their unlimited data plans; home WiFi network, providing visibility and control over family • wireless voice and enhanced voice features; usage; and • Rogers Pro On-the-Go™, a personalized service experience for • Rogers™ Smart Home Monitoring, offering services such as device delivery and setup to a customer’s location of choice monitoring, security, automation, energy efficiency, and smart within the service area; control through a app. • Express Pickup, a convenient service for purchasing devices online, with the ability to pick up in-store as soon as the same day; Television services include: • device and accessory financing; • local and network TV, made available through traditional digital • wireless home phone; or IP-based Ignite TV, including starter and premium channel • device protection; packages along with à la carte channels; • in-store expert device repair service; • on-demand television;

28 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 29 | , ™ ™ and , Fido ™ ;and ™ Sportsnet (Canada), World Elite ™ ™ ,JACKFM ™ ,andthe NOW Rogers ,KiSS and ROGERS COMMUNICATIONS INC. ; ™ (Canada), FXX ™ ™ ian retail distribution outlets. ™ l conventional and specialty s a highly competitive industry ce providers and plan offerings. ; ™ Platinum Mastercard 2020 ANNUAL REPORT ™ , Sportsnet The FAN ™ ,and ™ Sportsnet NOW+ (formerly Outdoor Life Network); and Rogers multicultural broadcast television stations, including ™ , which allow customers to earn cashback rewards points , network, which, together with affiliated stations, has ,and . ™ ™ 680 NEWS ™ ™ , ™ OMNI Regional, which provide multilingualto all newscasts digital nationally basic television subscribers; and OLN broadcast distributionindividuals; to approximately 79% of Canadian NOW Entertainment Ltd. (MLSE), which ownsthe the Toronto , Raptors,the Toronto FC, Toronto the Marlies,holdings; Toronto as and Argonauts, well and as various associatedprovider real of estate services multicarrier with several hundred wireless Canad and wireline products and associated with our various brands and businesses. shopping channel, whichportion generates of its a revenue from significant online and sales. growing SONiC • specialty channels that include FX through traditional streaming services asIt well as also through NHL grants LIVE. Stanley Rogers Cup Playoffs national and Stanleyevents rights Cup and Final, on non-game all events those NHL-relatedthe (such special NHL platforms as Draft), the and to rights NHL to All-Star the sublicense broadcasting Game rights. In and Television,television we networks, including: operate• severa Sportsnet’s four regional stations along with • other digital assets including FXNOW •OMNI •Citytv COMPETITION The telecommunications industry i served by manyconsumers a national, broad choice regional,The in servi and industry reseller is players very giving capital intensive and requires meaningful, We also offer a range of• digital services our and products, digital including: sports-related assets, including NHL LIVE, OTHER We offer several credit cards, includingMastercard the on spending. OTHER INVESTMENTS We holdarrangements, some of interests which include: • in our a 37.5% number ownership of interest associates in and Maple joint Leaf• Sports our 50% & ownership interest in Glentel Inc. (Glentel), a large • a range of other websites, apps, podcasts, and digital products We also holdpublicly a traded number companies, ofCommunications including Inc. interests in Inc. marketable and securities Cogeco of • Today’s Shopping Choice, Canada’s only nationally televised In Radio, weacross operate Canada, 55 AMCHFI including and popular FM radio radio stations brands in such markets as 98.1 Mastercard Ignite Rogers Toronto app. ™ ,andAmazon ™ llows us to deliver more than ball Association (NBA) games; d, cloud-based, professionally et, and multi-protocol label Rogers Anyplace TV Sportsnet NOW , restart features, and integrated for businesses that have one or ts, and personal computers, both , an entertainment add-on for TM home games and select marquee National Hockey customers, giving them access to their favourite ™ SmartStream TM event venue, which hosts the Toronto Blue Jays’ home TM ™ onto your smartphone or tablet toIgnite TV watch app; at a later time using the streamingservicesinoneplace; Blue Jays Internet League (NHL) and National Basket personal computers through the and TV services; apps such as YouTube, , offerings with security-embedde and back-upapplicable) connectivity. (including through our wireless network, if switching services, providingwide scalable area and privatecritical secure networking business metro that applications many and enables offices, and data interconnects cloud centres, applications) across Canada; or points of presence (as well as managed solutions; and service customer accessand devices add that services, allow suchand customers as cloud private to solutions, networking, scale which Internet,business blend requirements; IP seamlessly voice, to grow with their and 4K PVR capabilities; Ignite TV (includingtablet, laptop, setting or computer; recordings) onIgnite their smartphone, Prime Video on Ignite TV; • Download and Go, the ability to download recorded programs • linear and time-shifted programming; • digital specialty channels; • 4K television programming, including regular season • televised content delivered on , tablets, and MEDIA Our portfolio of Media assets,TV with and a focus radio oncoast. sports programming, and regional reaches CanadiansIn from Sports Media coast and Entertainment, to Canada’s we only own Major the League Toronto Baseball Blue (MLB) Jays, team, and the Centre • cloud-based digital video recorders (DVRs) available• with Ignite voice-activated remote controls 1,200 regulartelevision, season smartphones, games table during a typical season across games, concerts, trade shows, and special events. Our agreementthrough with the 2025-2026 the NHL season, a NHL (NHL Agreement), which runs • simplified information technology (IT) and network technology • extensive cable access network services for primary, bridging, Phone services include: • residential and small business• local telephony calling service; features and such as voicemail, call waiting,Enterprise and services long include: distance. • voice, data networking, IP, and services over multi- • optical wave, Internet, Ethern • personal video recorders (PVRs), including• Whole an Home Ignite PVR TV app, giving customers the• ability to experience MANAGEMENT’S DISCUSSION AND ANALYSIS

continual investments to implement next-generation technology networks. On August 27, 2020, ISED Canada launched a and to support existing infrastructure. Given the highly regulated consultation, proposing changes to the spectrum utilization of the nature of the industry, the already competitive dynamic could be 3800 MHz band, making 250 MHz of the spectrum available for further influenced by regulatory change (see “Regulation In Our 5G. The outcome of these auctions may increase competition. See Industry” for more information). “Regulation In Our Industry” for more information. Traditional wireline telephony and television services are now offered over the Internet. Consumers continue to change how they CABLE choose to communicate or watch video, and this is changing the Internet mix of packages and pricing that service providers offer and could We compete with other Internet service providers (ISPs) that offer affect churn levels. fixed connection residential high-speed Internet access services. Rogers and Fido high-speed Internet services compete directly In the media industry, there also continues to be a shift in consumer with, among others: viewing habits towards digital and online media consumption and • Bell’s Internet services in Ontario, New Brunswick, and on the advertisers are directing more advertising dollars to those media island of Newfoundland, including Virgin Mobile; and channels. In addition, we now compete with a range of digital and • various resellers using wholesale company online media companies, including large global companies. digital subscriber line (DSL) and cable Third-Party Internet Access (TPIA) services in local markets. WIRELESS A number of different players in the Canadian market also We compete on customer experience, price, quality of service, compete for enterprise network and communications services. scope of services, network coverage, sophistication of wireless There are relatively few national providers, but each market has its technology, breadth of distribution, selection of devices, branding, own competitors that usually focus on the geographic areas in and positioning. which they have the most extensive networks. In the enterprise • Wireless technology – our extensive long-term evolution (LTE) market, we compete with facilities- and non-facilities-based network caters to customers seeking the increased capacity and telecommunications service providers. In markets where we own speed it provides. We are also working to expand our 5G network infrastructure, we compete with incumbent fibre-based network to further these capabilities. We compete with BCE Inc. providers. Our main competitors are as follows: (Bell) and Corporation (Telus) at a national level, and with • Ontario – Bell, Cogeco Data Services, and Digital Colony; Vidéotron ltée (Videotron) at a regional level, all of whom • – Bell, Telus, and Videotron; operate 5G networks, and with Inc. • Atlantic Canada – Bell and ; and (Shaw), Saskatchewan Telecommunications (SaskTel), • Western Canada – Shaw and Telus. Communications Inc. (Xplornet), and Eastlink Inc. (Eastlink) at a regional level, all of whom operate LTE networks. We also Television compete with these providers on high-speed packet access We compete with: (HSPA) and global system for mobile communications (GSM) • other Canadian multi-channel broadcast distribution networks and with providers that use alternative wireless undertakings (BDUs), including Bell, Shaw, and other satellite technologies, such as WiFi “hotspots” and mobile virtual network and IPTV providers; operators (MVNO), such as Primus. • over-the-top (OTT) video offerings through providers like Netflix, • Product, branding, and pricing – we compete nationally with Bell, YouTube, Apple, Amazon Prime Video, Crave, , Disney+, Telus, and Shaw, including their flanker brands Virgin Mobile and other channels streaming their own content; and (Bell), (Bell), Koodo (Telus), (Telus), • over-the-air local and regional broadcast television signals and (Shaw). We also compete with various received directly through antennas, the illegal distribution of regional players and resellers. Canadian and international channels via video streaming boxes, • Distribution of services and devices – we have one of the largest and the illegal reception of US direct broadcast satellite services. distribution networks in the country, and compete with other service providers for dealers, prime locations for our own stores, and third-party retail distribution shelf space. We also compete Phone with other service providers on the quality and ease of use of our While Phone represents a small portion of our business, we self-serve options and other digital capabilities. compete with other telephony service providers, including: • Wireless networks – consolidation amongst regional players, or • Bell’s wireline phone service in Ontario, New Brunswick, and on with incumbent carriers, could alter the regional or national the island of Newfoundland; competitive landscapes for Wireless. • incumbent local exchange carrier (ILEC) local loop resellers and • Spectrum – we currently have the largest spectrum position in voice over IP (VoIP) service providers (such as Primus the country. Innovation, Science and Economic Development Telecommunications Canada Inc. and Comwave Networks Inc.), Canada (ISED Canada) has announced that flexible use licences other VoIP-only service providers (such as Vonage and Skype), and in a 200 MHz frequency range from 3450-3650 MHz will be other voice applications that use the Internet access services of ISPs issued to both existing and new wireless licensees, with an (such as Facebook and WhatsApp); and auction of the 3500 MHz spectrum not retained by existing • substitution of wireline for wireless products, including mobile licensees to occur in June 2021. The 3500 MHz spectrum, along phones and wireless home phone products. with other frequency bands, is essential to the deployment of 5G

30 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 31 | ROGERS COMMUNICATIONS INC. itional competitors, consumer ments are key areas influencing ta. Mobile commerce continues ing in the next generation of es. This may negatively impact 2020 ANNUAL REPORT CABLE TRENDS Technology advancement, non-trad behaviours, and regulatory develop Cable. This market isoffering very capital is intensive,Applications and the on a strong backbone thesubstitute Internet for Internet to wireline are telephoneincreasingly effectively services, increasingly available and televised being serving online. content(cord used Downward is this television shaving) as market. tiersubstitution a and migration (cord televisionadoption cutting) cancellation of have withTelecommunications OTT been the services. growing Commission’s intentwholesale The with (CRTC) Canadian of increased Internet decisioncompanies Radio-television that offer to access and wholesale Internet servicesOur lower (see Industry” rates “Regulation for In more information). mayCable also and wireline companies are adversely expandingto their service offerings affect includeincluding faster Rogers, are increasingly broadbandGbps offering or download Internet. higher speeds and of Canadian 1 Internet offerings companies, with unlimited . support themessaging, and expanded other wirelessto use da increase oftechnology to as facilitate applications, wireless transactions. more mobileWireless devices video, providers and are platforms invest adopt secure broadband wireless dataAccess and 5G networks, technologies, to such supportand the new products growing as and data applications. demand Licensed Assisted In 2019, weunlimited were data the first plans.carriers national in Following carrier Canada Rogers,plans in have certain Canada introduced that new to other areincreased unlimited launch consumer simpler wireless wireless data for usage, data were being and customers incurred eliminate on legacy to overage plans.had fees As understand, 2.5 at that December million allow 31, 2020, subscribersplans. we for In on January our 2020, Rogers wea were Infinite 5G the network unlimited first and, Canadian data in carrierbegin December to rolling 2020, launch out the a firstis Canadian 5G carrier standalone to the core network.170 communities largest Our and 5G 45% network of 5G the Canadian population. networkTo help in make the costconsumers, Canada, of Rogers new and reaching wireless other devicesintroduced Canadian more more affordable wireless wireless for carriers than have devicefinance also up to financing, the full cost wherebyinterest. of We the believe consumers device being over a able can will 24-month reduce to term subscriber finance at churn. devices 0% over 24 months In addition tosubscribers the are wireless increasingly bringing device theirtheir financing existing own devices devices plans longer or now and keeping contracts therefore available, may not for enter intosubscriber term churn, wireless butopportunities servic may as a also result of create increasedtrend churn gross may from also addition other negatively carriers. impact subscriber This to the subscribers monthly as they service shop fees for charged plans that bestWireless meet market their penetration needs. in Canada ispopulation approximately and 92% is of the expectedAmerica to Merrill Lynch continue October growing, 2020 Global per Wireless the Matrix. Bank of erchandise sales revenue; and ing and sophisticated wireless ting to changing technologies, or channel placement, viewer including digital news services,available streaming via social services, networking and services; content attention, and loyalty. games; owned and operatedEntertainment; by the CBC, BellApple,AmazonPrimeVideo,Crave,Google,Disney+,andother Media, andchannels streaming their Corus own content; Pandora, and Radioplayer Canada; advertising; and cloud, such as socialservices, media digital platforms, online assistants,media players. web music information downloading, and portable networks that havefast enabled consumers and multimedia businessesConsumer to capabilities demand utilize on-demand through content for is pushing providers wireless mobile to build networks that data devices, can digital services. media, and WIRELESS TRENDS The ongoing extensiveproviders investment has made created by Canadian far-reach wireless The telecommunications industry in Canadaand is very highly capital intensive regulated.various Our reportable overarching segments trends are rela affected by INDUSTRY TRENDS consumer demands,regulatory economic developments, all conditions, ofinvestments and, which could in in limitUncertainties essential particular, the Affecting future OurIndustry” Canadian for Business” more information. marketplace. and Belowtrends affecting is our See “Regulation a specific summary reportable segments. In of “Risks the Our industry and Our products compete forwith: readership and advertisers • online information and entertainment websites• magazines, and both digital and• apps, printed; and other traditional media, such as TV and radio. Today’s Shopping Choice competes with: • web-only e-commerce sites, including• social commerce; retail stores and their• related e-commerce infomercials websites; that sell products• on television; other and television channels, f MEDIA Competition in Sports Media and Entertainment• includes other: televised and online sports• broadcasters; Toronto professional teams, for attendance at Toronto• Blue Jays MLB teams, for Toronto• Blue Jays local players sporting and and fans; special• event venues; professional sports teams, for• m new digital sports media companies. Television and Radio,regional content, both compete for of audiences and• which advertisers with: other are Canadian focused television on and local radio and stations, including• those OTT video offerings through providers like Netflix,• YouTube, OTT radio offerings, such as iHeartRadio,• Apple Music, other Spotify, media, including newspapers,• magazines, and other outdoor technologies available on the Internet or through the MANAGEMENT’S DISCUSSION AND ANALYSIS

Consumers are demanding faster-than-ever speeds for streaming The CRTC Basic Telecommunications Services decision in 2016 online media, uploading personal content, and playing online established several criteria to improve Internet access for Canadian video games, and for their ever-growing number of connected residents and businesses. As a result, the CRTC believes fixed devices. In order to help facilitate these speeds, cable and wireline broadband subscribers should have access to speeds of at least 50 companies are shifting their networks towards higher speed and Mbps download and 10 Mbps upload, and access to a service with capacity DOCSIS 3.1 and fibre-to-the-home (FTTH) technologies. an unlimited data allowance. These technologies provide faster potential The CRTC has created a new code of conduct for Internet services, speeds than earlier technologies, allowing both television and which came into effect on January 31, 2020, in order to establish Internet signals to reach consumers more quickly in order to sustain guidelines for consumer interactions with their ISPs. reliable speeds to address the increasing number of Internet- capable devices. MEDIA TRENDS COVID-19 has required many people to work or study from home Consumer viewing behaviours are continually evolving and the simultaneously, further establishing the need for strong cable industry continues to adjust to these changes. Access to live sports networks that are able to handle increased capacity than previously and other premium content has become even more important for existed. Cable and wireline companies have needed to quickly add acquiring and retaining audiences that in turn attract advertisers and capacity and manage traffic to continue reliably supporting the subscribers. Therefore, ownership of content and/or long-term needs of Canadians. agreements with content owners has also become increasingly Our business customers use fibre-based access and cloud important to media companies. Leagues, teams, networks, and new computing to capture and share information in more secure and digital entrants are also experimenting with the delivery of live sports accessible environments. This, combined with the rise of content through online, social, and virtual platforms, while multimedia and Internet-based business applications, is driving non-traditional sports are also growing in mindshare. exponential growth in data demand. Consumer demand for digital media, content on mobile devices, Businesses and all levels of government are transforming data and on-demand content is increasing and media products, such as centre infrastructure by moving toward virtual data storage and magazines, have experienced significant digital uptake, requiring hosting. This is driving demand for more advanced network industry players to increase their efforts in digital content and functionality, robust, scalable services, and supportive dynamic capabilities in order to compete. This trend is also causing network infrastructure. advertisers to shift their spending from conventional TV and print publishing to digital platforms. Canadian wireline companies are dismantling legacy networks and investing in next-generation platforms that combine voice, data, Competition has changed and traditional media assets in Canada and video solutions onto a single distribution and access platform. are increasingly being controlled by a small number of competitors As next-generation platforms become more popular, our with significant scale and financial resources. Technology has competition will begin to include systems integrators and allowed new entrants and even individuals to become media manufacturers. playersintheirownright. Devices and machines are becoming more interconnected and Some of our competitors have become more vertically integrated there is more reliance on the Internet and other networks to across both traditional and emerging platforms. Relationships facilitate updates and track usage. between providers and purchasers of content have become more complex. Global aggregators have also emerged and are Broadcast television technology continues to improve with 4K TV competing for both content and viewers. broadcasts and high dynamic range (HDR) for higher resolution and improved video image colour and saturation.

32 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 33 | ROGERS COMMUNICATIONS INC. m more cost-effective for us. Our nt that our customers will love and 2020 ANNUAL REPORT ectives to measure progress on our six strategic priorities and to DEVELOP OUR PEOPLE, DRIVE ENGAGEMENT, ANDA BUILD HIGH-PERFORMING AND INCLUSIVE CULTURE Our people and our cultureand are the their heart andremarkable. soul passion First of and our foremost, for success, ourand priority well-being. is our A to high-performing ensureto and customers their inclusive our safety culture success and is andexperience integral that our as starts by company employees.employment investing brand We in is so our are thattalent team Rogers working and and remains their reflects to afostering the destination strengthen an for rich open, our top diversity diverse,accountability and and of performance. inclusive our workplace country. grounded This in means BE A STRONG, SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE LEADER IN OUR COMMUNITIES Givingbackwhereweliveandworkisanimportantpartofwhowe are. We strive to partneracross with Canada communities to and deepen our communitylevel. engagement groups and impact We at theenvironmentally local are responsible also fashionSocial, through focused and anreputation on as Governance a Environmental, great growing Canadian company. program, in continuing a to socially build and our DRIVE GROWTH IN EACH OF OURGrowth LINES and OF BUSINESS innovation havestrive always to deliver been compelling a conte innovative part of products, our services, DNA.easier and We and drive solutions market growth. that Weand will make execute leverage product their roadmaps proven lives from across technologies the globe, making and the goal remarkable is to innovations beour a country, relevant and and we respectedin will provider exploit the in opportunities various each todigital continue regions region and to of sports-related of grow growth Canada. areas. In Media, we willDRIVE BEST-IN-CLASS diversify FINANCIAL our OUTCOMES FOR OUR SHAREHOLDERS The overarching goalgrowth in of a sustainable our wayprofit, and free strategy to cash translate flow, is it returnOur into on to focus strong assets, is margins, accelerate and on returnscost our revenue to and shareholders. core productivity management growth to drivers support with future investments. a strong capability in e and reliability. Additionally, nt, a best-in-class customer customers first in everything we do; performance, reliability, and coverage; performing and inclusive culture; and our communities. We believe thatworld-class networks performance are the isdeliver lifeblood critical high-performing of to our network ourperformance, business reliability, services future. and and Our with coverage.to In plan a Wireless, roll is as focus we out to customers’ continue on data Canada’s demands core keep growing, first ourthe investments and to best deliver largest wirelessinvestments experience 5G in in network Canada ourimprove and will cable Cable as remain Internet network our critical. performanc will Our allow us to continue to INVEST IN OUR NETWORKS AND TECHNOLOGYDELIVER TO LEADING PERFORMANCE, RELIABILITY AND COVERAGE expanding our network footprintconnect underserved and communities product and reachUnderpinning grow everything will are our help our customer IT us modernize, base. leveraging systems, cloud which and we data capabilities. continue to Everything starts and endsexperience with is our core customers, to so ourend-to-end improving strategy. service We their experiences obsess by overof listening our our carefully customers’ customers to the andeliminating voices our customer frontline. friction We andour will being customers continue clear, while to simple, we focusbehaviours and evolve on continue fair our to for channel change.and strategy We as self-serve continue consumer capabilities to withso build expanded our service our digital channelexperiences options across our customers channels. have reliable, consistent, and seamless CREATE BEST-IN-CLASS CUSTOMER EXPERIENCES BY PUTTING OUR CUSTOMERS FIRST IN EVERYTHING WE DO address short-term opportunities and risks. Our long-term vision buildsunique on mix our many of strengths,deliver technology including and our media best-in-classexperience, assets. and industry-leading Our shareholder engageme value. focus is clear: To achieve this vision, our strategic• priorities are Create as follows: best-in-class customer• experiences Invest by in putting our• networks our Drive growth and in each• of technology our Drive lines best-in-class of to financial business; outcomes• for deliver our Develop shareholders; our leading people, drive• engagement, Be a and strong, build socially and a environmentally high- responsible leader in OUR STRATEGIC PRIORITIES Our Strategy, Key Performance Drivers,As and part Strategic of our Highlights long-term vision to become number one, we set annual obj MANAGEMENT’S DISCUSSION AND ANALYSIS

2020 OBJECTIVES For 2020, we set forth the following objectives related to our strategic priorities.

Strategic Priority 2020 Objectives Create best-in-class customer experiences by putting our Evolve our customer experience across all our channels; solve customers first in everything we do customer problems the first time they contact us; and invest in tools to create frictionless digital and frontline experiences Invest in our networks and technology to deliver leading Continue our cable and wireless network uplift programs; performance and reliability accelerate our network leadership in 5G and IoT; and deliver reliable systems and leverage emerging technologies Deliver innovative solutions and compelling content that our Drive a growth agenda in each of our lines of business; create customers will love capabilities to establish great partnerships; and challenge the core value propositions in each of our businesses Drive profitable growth in all the markets we serve Deliver on our 2020 financial commitments and execute on our cost management playbook Develop our people and a high performance culture Build our culture and reputation as a great Canadian company; attract diverse talent that builds our future workforce; and deliver a differentiated and rewarding employee experience Be a strong, socially responsible leader in our communities across Grow our presence both locally and regionally; distinguish our Canada community investment and social responsibility programs; and grow our business in key underserved markets across Canada

KEY PERFORMANCE DRIVERS AND 2020 STRATEGIC HIGHLIGHTS COVID-19 continues to significantly impact Canadians and In the third quarter, live sports, which were suspended in March, economies around the world as a second wave affects Canada and resumed (although with no in-person attendance) and allowed our other locations globally. As a critical service provider during this broadcast teams to provide coverage to Canadians despite time, it is of utmost importance to ensure our customers stay continued restricted attendance at live sports events. As public connected and that our customers and employees remain safe. health restrictions were lifted to certain extents across the country, This has not changed since the onset of the pandemic, when we we maintained our focus on keeping our employees safe and our quickly shifted priorities to keep our team members safe and customers connected during this time. customers connected. In late September, several Canadian provinces declared a second In March 2020, we took swift action to protect our customers and wave of COVID-19 had commenced and provinces have adjusted employees during the pandemic, including temporarily closing the restrictions, including mandatory closures of certain types of majority of our retail stores across Canada and enabling businesses and introducing stricter limits on social gatherings. As approximately 90% of our employees to work from home. We also an essential service, almost all our retail stores remained open to took steps to ensure our customers could stay connected to the serve customers, even as lockdowns were reintroduced in certain world around them, including temporarily providing free services areas in the fourth quarter. As the fourth quarter progressed, the (offering a rotating selection of premium television channels), second wave of COVID-19 accelerated, resulting in lower-than- waiving certain fees for a designatedperiodoftime(forexample normal consumer activity during key selling periods. While international roaming fees and long distance voice calling fees), COVID-19 continues to have a significant worldwide impact, we and adding network capacity and managing traffic. remain confident we have the right team, a strong balance sheet, and world-class networks that will allow us to get through the In 2020, we also implemented compensation- and health and pandemic having maintained our long-term focus on growth and safety-related programs to help our employees get through this doing the right thing for our customers. challenging time, including supporting employees unable to work. As provinces relaxed certain public health restrictions, we The following achievements display the progress we made towards reopened most of our retail stores throughout the fall, while meeting our strategic priorities and the objectives we set along implementing public health and safety measures. We also with them, as discussed above. launched several community initiatives to support vulnerable Canadians, including partnerships with several organizations to provide digital lifelines to Canadians in need and a historic partnership with Food Banks Canada to support their largest ever food drive.

34 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 35 | ROGERS COMMUNICATIONS INC. hwestern Ontario as part of our ’s first and largest 5G network ng COVID-19, with total traffic vering more value to our customers. 2020 ANNUAL REPORT months free when signingselect Rogers up Infinite plans, to deli Apple Music for customers on more than 100 communities in Sout commitment to expand connectivity to rural and remote areas. services on Ignite TVwith and the introduction expanded of freeHealth new content at apps, on including Home, Ignite Fun tubi, TV at XITE, Home and and zone-ify; launched access to customers stayed connected duri on our wireline networks upof by COVID-19 over as 50% more during people started the working first from months home. to serve citizenstemporary COVID-19 during health assessment the centres. public health crisis and enabled Ignite Internet customers,favourite streaming to services in one give place. customers access to their serving over 170 cities and towns. Montreal, Ottawa,support Toronto, future devices and and chipsets as Vancouver they become available. toa be row, ready in July,benchmarking, to and by earned umlaut, the number theWireless one global Network spot leader in Quality the in StudyOntario, Canada by mobile in April. J.D. network Power in the West and Brunswick andnetwork Canada’s and Internet provider most inOokla’s the Speedtest fourth results. consistent quarter, according to national wireless development, including through the launchsmart of city Canada’s in first Kelowna 5G Columbia in and partnership the with launch the of theto University 5G develop of leading Create British 5G Lab solutions. at Communitech focused on developing interoperablegeographic 5G regions, standards including acrossEurope. key the Americas, Asia-Pacific, and easier for businesses andand governments to serve citizens, theirestablished customers including the withUniversity Rogers of Calgary to new advance Internet IoT research. IoT of Things collaborations,Cable Chair and Inc.companies with and the inannounced Ruralwave a the Inc., partnershipTechnology Ontario with local Southwestern (SWIFT) Kawarthacommunities Integrated telecommunications Fibre in Lakes toDufferin, the Norfolk, region, Oxford, Regional and bring Simcoe counties Municipality and in Ontario. services of Waterloo to and underserved • Launched an exclusive offer in Canada to• provide Launched the 14 first new six apps and subscription video on-demand • Started rolling out wireless home broadband Internet service• to Added capacity and managed traffic where needed to ensure • Launched and added capacity for government 1-800 numbers DELIVER INNOVATIVE SOLUTIONS AND COMPELLING CONTENTTHATOURCUSTOMERSWILLLOVE • Launched Ignite SmartStream, an entertainment add-on for INVEST IN OUR NETWORKS AND TECHNOLOGYDELIVER TO LEADING PERFORMANCE AND RELIABILITY • Launched and expanded Canada • Started rolling out Canada’s first 5G standalone core network in • Awarded best wireless network in Canada for the second year in • Ranked fastest broadband Internet provider in Ontario and New • Evolved our 5G partner ecosystem and 5G research and • Became a founding member of the 5G Future Forum, which is • Strengthened our Advanced Services portfolio to help make it • Expanded our cable network through the acquisition of Cable ult of COVID-19, with no account , a daily payment option, and Top Up as a ™ COVID-19 by waiving pay-per-useall international available roaming destinations fees in untilvoice April calling fees 30, across Canada 2020 until and June 30, long-distance 2020. financial uncertainty as a res Executive Leadership Teamcustomers and to frontline strengthen teamsour Customers, and where the people launched leaders voice Connectingteams spend a with of day to with frontline our experience strengthen and customer improvement their processes. understanding of the customer Guest, which allowssigning customers in, to on top ,and both up flexibility. new an features account focused on without affordability suspensions or disconnections for a designated period of time. during COVID-19, with overall84% and digital virtual assistant adoption conversations up up over 130%. 6 points to opened our Kelowna customer solution centre virtually. Drop & Go option, asto a install safe, our easy, Ignite no-contact Internet wayof and for customers Ignite customers easily TV installing services, their withbeginning products over of themselves 93% April. since the technical support team toreduce enable the prompt need virtual to assistanceservice deploy and calls. field technicians for installation and give customers the convenience of orderingin-store online on and the picking same up day. locations allowing customers to gethours. their devices repaired within Vancouver, Calgary,telecommunications Edmonton, exclusive andcustomer’s that door, Ottawa, brings asdelivery soon and the a one-on-one expert as setup store support. Canadian the same to day, the accessories with affordable for free Rogers phone Google customers, Nest including products, AirPods, cases, screenbulbs, protectors, and more. chargers, smart plans to overcustomer base in 2.5 Canada. million subscribers, the largest unlimited build or rebuild their credit,economy. facilitating participation in the digital two-thirds of Fido customers. • Supported customers with goodwill measures at the onset of • Implemented flexible payment options for customers• facing Appointed a Chief Customer Officer as a member of our CREATE BEST-IN-CLASS CUSTOMER EXPERIENCES BY PUTTING OUR CUSTOMERS FIRST IN EVERYTHING• WE ImprovedWirelesspostpaidchurnby11basispointsto1.00%. DO • Accelerated our digital-first plan and added self-serve options • Moved to 100% Canada-based customer• care Introduced specialists and an Ignite self-installation program, including a • Launched Blitzz, a remote visual assistance tool,• with Launched Express our Pickup, making us the only national carrier• to Launched WeFix, a new smartphone repair service at select retail • Expanded Pro On-the-Go to cities across Canada, including • Expanded financing to device accessories to make the latest • Increased adoption of 5G-ready Rogers Infinite unlimited data • Grew adoption of• Fido Launched Data chatr Overage credit cards Protection to plans help more to Canadian• residents Launched DAY PASS MANAGEMENT’S DISCUSSION AND ANALYSIS

Amazon Music so customers can listen to their favourite music, as COVID-19, with 83% of our teams reporting in our annual well as thousands of playlists and stations. employee survey they felt supported on well-being & work-life • Launched Rogers Smart Community™ in partnership with balance during COVID-19. 1VALET to deliver a new platform that consolidates building and • Extended our employee virtual health care solution in management activities into one seamless experience for multi- partnership with Sun Life to give employees and their families residential communities and condominiums. quick access to health care professionals during COVID-19. • Leveraged our media assets to advance inclusion and diversity, • Launched a new five-year Inclusion and Diversity (I&D) Strategy including a prime-time special Ending Racism: What Will it Take?, with measurable targets, including representation goals for a new digital series LIVE: #Cityline Real on Race,andanew equity-seeking groups across the business, and held 85 I&D Sportsnet interview series Top of HER Game™. events and listening sessions through our Employee Resource • Launched two new national daily newscasts in Arabic and Filipino Groups. on ™ to reflect these communities and shed • Launched For the Love of Work™, Made Possible by Rogers,a light on underreported topics and issues. podcast that explores key themes at the heart of a winning • Brought gender equality in sports to the forefront with the first employee experience, including resilience, inclusion and all-female broadcast team to call an NHL game, a week-long diversity, and values, to attract talent and build pride within our national programming campaign shining the spotlight on team; ranked top 5 in Careers Canada charts on Apple Podcasts female sports game-changers, and partnered with Ryerson from October to December. University on the Sportsnet Diversity & Gender Equity program. • Provided free access for our customers to a rotating selection of BE A STRONG, SOCIALLY RESPONSIBLE LEADER IN OUR channels for a select period of time during COVID-19 and COMMUNITIES ACROSS CANADA temporarily removed data usage caps for customers on limited • Partnered with Food Banks Canada (FBC) and Jays Care home Internet plans so they could stream, surf, and connect Foundation for Step Up to the Plate, the largest food hamper during the initial phase of the pandemic. program in the organization’s history to distribute eight million • Created original content and programming for Sportsnet meals for Canadian families; launched an awareness campaign viewers with the suspension of live sports during COVID-19. across our media and digital assets to raise money for FBC to • Delivered industry-leading coverage with the return of live sports, address acute food shortages during COVID-19; and donated ™ with Sportsnet the most-watched sports media brand in more than one million meals through a corporate donation and Canada in 2020 and Sportsnet National the number-one employee contributions. Canadian network overall in primetime in August. • Launched the 60,000 Hours Challenge as part of The 60 Project to mark our 60th anniversary in 2020, with employee volunteers DRIVE PROFITABLE GROWTH IN ALL THE MARKETS WE supporting over 200 organizations. SERVE • Announced a $10 million commitment over the next five years in • Expanded consolidated adjusted EBITDA margin by 90 basis free advertising and creative services to charities and small points. businesses that support Black, Indigenous and People of Colour • Attracted 245,000 net Wireless postpaid subscribers, 57,000 net (BIPOC) and equity-seeking communities by leveraging our Internet subscribers, and 218,000 net Ignite TV subscribers. sports and media assets as part of our I&D plan. • Generated free cash flow of $2,366 million, up 4%. • Raised approximately $1 million through the Hearts and Smiles campaign in support of The Frontline Fund to help Canada’s DEVELOP OUR PEOPLE AND A HIGH PERFORMANCE frontline health care workers during COVID-19. CULTURE • Provided thousands of devices and free voice and data plans as • Achieved an all-time high employee engagement score of 87% digital lifelines to vulnerable Canadians to help them stay in our annual employee survey, up two points from 2019 and connected, in partnership with Women’s Shelters Canada, seven points above best-in-class. National Aboriginal Circle Against Family Violence, Big Brothers • Achieved an all-time high score of 93% for employee pride in a Big Sisters of Canada, Pflag Canada, LGBTQ2S+ organizations, company-wide pulse survey during the first months of seniors’ homes, hospitals, and youth organizations. COVID-19, six points above best-in-class. • Provided advertising space across our media and digital assets to • Received Canada’s Top 100 Employers Award (2021) for the promote sheltersafe.ca for women escaping violence and abuse eighth year in a row, by Mediacorp Canada Inc., including Top and provided financial support through our Fido brand to Employers in the Greater Toronto Area (2021), Top Employers national organizations supporting LGBTQ2S+ people. for Young People in Canada (2021), and Best Diversity • Launched Rogers Community Draft to support families Employers in Canada (2020). as children return to sport, with assistance toward league fees • Reclaimed certification for Canada’s Most Admired Corporate and access to mentorship. Cultures by Waterstone Human Capital in 2020. • Partnered with the Orange Shirt Society, in its efforts to expand • Accelerated progress during COVID-19 on our plan to offer Indigenous education across Canada and raise awareness on increased flexibility to our employees through work-from-home Indigenous reconciliation, with a specially designed t-shirt for programs across the company, with 90% of employees currently Orange Shirt Day by Ojibwe artist Patrick Hunter sold on Today’s working remotely, including approximately 7,000 customer Shopping Choice and raising nearly $100,000, with all proceeds solution specialists. going to the society. • Delivered enhanced programs and employee communications to ensure employees were supported and informed during

36 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 37 | ROGERS COMMUNICATIONS INC. financial results for 2021. See act; grow our presence in a 2020 ANNUAL REPORT ce our marketing and sales capabilities to propel 2020 year toand organizations education. across Canada that support youth to reach over 250,000 households with 340 housing partners. mprove financial performance and drive cost and productivity Accelerate digitalmomentum and generated during self-serve COVID-19;across reinvent adoption experiences allcustomer by channels problems the building first tous; on time, and or optimize invest evenfrictionless digital before, customer in and they frontline experiences. tools, contact journeys; capabilities,Invest solve and in our ourleading team connectivity cable to to our and create and customers; grow wireless reestablish our leadership leadership networksand in in to 5G IoT; product deliver expand reachmodernize our industry- our to systems network by connect leveraging footprint cloud underserved and data capabilities. communities; and consistent andbusiness in sustainable key regional markets acrossservices, customer Canada; and create products, content additions;Media that customers strategy grow will inrelated love; our sports growth and areas. and anchor diversify our into digital andimprovements sports- across Rogers. Ensure the safety andour well-being ways of of ourmembers, working; employees build customers, and a evolve anddiverse culture communities; of talent inclusion and andworkforce. for attract develop our top our team and teamPartner as we build withengagement our and future communities increasesustainable and imp environmentally responsible acrossour manner; culture and and reputation build as Canada a great Canadian company. to deepen 2021 FULL-YEAR CONSOLIDATED GUIDANCE Due to thepotential continued outcomes uncertainty of surroundingpredict COVID-19, the the we duration future are and overallresults, unable impact but at on the this ourmaterial time impact operations in to in and 2021. financial It 2020financial is results was difficult for material at full-yearfinancial and this 2021. outlook We time could for will to remain 2021 thereforemake reliably unless not a estimate and provide reasonable our until a estimate such“Risks of a our and time asForward-Looking Uncertainties we Information” can for Affecting more informationincluding Our the on impacts COVID-19, it Business” has hadthe and and actions we may are have “About taking on in our response. business and • Provided nearly $1 million in community grants for• the Expanded 2019- our low-cost Internet program Connected for Success impacted total service revenue ults for the year was material. the Ted Rogers Scholarship Fund, d consolidated annual guidance Invest in our networks and technologyperformance, to reliability, deliver and leading coverage Drive growth in each of our lines of business Enhan Strategic PriorityCreate best-in-class customer experiences by puttingcustomers our first in everything we do 2021 Objectives Drive best-in-class financial outcomes for our shareholdersDevelop our people, drive engagement, andperforming build and a inclusive high- culture I Be a strong, socially and environmentallycommunities responsible leader in our to over 400 youngwith an people estimated to 75% of pursue community recipients post-secondary from BIPOC. education, programs to supportvirtual summer 35,000 camps for youth 10,000 marginalized across youth. Canada, including and adjusted EBITDA incash the flow, short-term, which we will continue generatedand to strong remain Uncertainties free a Affecting priorityLooking for Our Information” us. for See Business” more “Risks information and onthe COVID-19, “About including impacts Forward- itactions has we are had taking in and response. may have on our business and the 2020 FINANCIAL GUIDANCE In April 2020, due topotential the uncertainty outcomes surrounding theguidance duration of originally and issued COVID-19, on Januaryoperations 22, we 2020. and The withdrew impact our on our the financial res financial FINANCIAL AND OPERATING GUIDANCE Historically, we have provide Although COVID-19 has adversely ranges for selected financialannual metrics plans on approved a by the basis Board. consistent with the 2021 OBJECTIVES • Donated $1 million to the Jays• Care Awarded Foundation scholarships, through to deliver MANAGEMENT’S DISCUSSION AND ANALYSIS

Capability to Deliver Results LEADING NETWORKS WIRELESS • densifying our wireless network with additional macro and small Rogers has one of the most extensive and advanced wireless cells in key markets; and networks in Canada, which: • purchasing incremental 5G-ready equipment with • is the only national network in Canada fully owned by a single lower unit and operational costs, and the ability to aggregate carrier; more radio carriers and achieve greater spectral efficiency. • was the first LTE high-speed network in Canada, reaching 96% of In early 2020, we launched our 5G network commercially in the Canadian population as at December 31, 2020 on our LTE downtown Vancouver, Toronto, Ottawa, and Montreal and now network alone; reach over 170 communities. We also became the exclusive • was the first 5G network in Canada, reaching 45% of the Canadian member of the global 5G Future Forum, a first-of-its-kind Canadian population as at December 31, 2020 on our 5G 5G and mobile edge computing forum that includes Verizon, network alone; ,,KT,andAméricaMóvil. • is supported by voice and data roaming agreements with domestic and international carriers in more than 200 Our 5G network uses a combination of the 2500 MHz, AWS, and destinations, including a growing number of LTE roaming 600 MHz spectrum bands, and is also aggregated with the LTE operators; and spectrum bands. 600 MHz spectrum is best suited to carry wireless • includes network sharing arrangements with two regional wireless data across long distances and through dense urban buildings, operators that operate in urban and rural parts of Canada. creating more consistent and higher-quality coverage in both remote and urban areas and in smart cities. We have deployed dynamic We are continuously enhancing our IP service infrastructure for all spectrum sharing, which allows our existing spectrum supporting 4G our wireless services. Advances in technology have transformed the to also be used for 5G networks. In the future, we will deploy 3.5 GHz ways in which our customers interact and use the variety of tools spectrum for 5G to add additional capacity to the network. available to them in their personal and professional lives. Technology has also changed the way businesses operate. Significant spectrum position We are augmenting our existing LTE network with 4.5G technology Our wireless services are supported by our significant wireless investments that are designed to migrate to a 5G environment. In spectrum licence holdings in low-band, mid-band, and high-band 2019, we increased our 5G-related trials across key applications frequency ranges. As part of our network strategy, we expect to and multiple frequencies in preparation for the launch of our 5G continue making significant capital investments in spectrum to: network in January 2020. A number of future investments will be • support the rapidly growing usage of broadband wireless data required to successfully operate and maintain our 5G network, services; including but not limited to: • support the expansion and maintenance of our 5G network; and • refarming spectrum currently used for and 3G to LTE and • introduce new innovative network-enabled features and for 5G; functionality.

Our spectrum holdings as at December 31, 2020 include:

Type of spectrum Rogers licences Who the licences support 600 MHz 20 to 40 MHz across Canada, covering 100% of the Canadian 5G subscribers. population. 700 MHz 24 MHz in Canada’s major geographic markets, covering 95% of 4G / 4.5G LTE subscribers; future 5G the Canadian population. subscribers. 850 MHz 25 MHz across Canada. 2G GSM, 3.5G HSPA+, 4G / 4.5G LTE subscribers; future 5G subscribers. 1900 MHz 60 MHz in all areas of Canada except 40 MHz in northern 2G GSM, 3.5G HSPA+, 4G / 4.5G LTE Quebec, 50 MHz in southern Ontario, and 40 MHz in the , subscribers; future 5G subscribers. Northwest Territories, and . AWS 1700/2100 MHz 40 MHz in and , 30 MHz in southern 4G / 4.5G LTE subscribers; 5G Ontario, an additional 10 MHz in the Greater Toronto Area, and subscribers. 20 MHz in the rest of Canada. 2500 MHz 40 MHz FDD across the majority of Canada except 20 MHz in 4G,4.5GLTE,and5Gsubscribers. parts of Quebec and no holdings in Nunavet and the Northwest Territories. Rogers also holds an additional 25 MHz TDD in key population areas in Quebec, Ontario, and British Columbia. 3500 MHz Between 20 MHz and 30 MHz across the majority of the Fixed wireless subscribers; future 5G fixed Canadian population. and mobile broadband subscribers.

38 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 39 | ROGERS COMMUNICATIONS INC. service providers that provide inesses over copper facilities. By 5G subscribers. 3.5G / 4G HSPA+, 4G LTE,subscribers. 5G 4G LTE subscribers. 2020 ANNUAL REPORT spectrum withupstream capacity additional and deployingare DOCSIS expected DOCSIS to 4.0 support 3.1 that,per downstream second over speeds (Gbps); up time, downstream to 10 gigabits and advanced video protocols; digital video; and multiple dwelling unit buildings,to and fibre. business premises directly • increasing capacity per subscriber by enabling the 1.2 GHz of • improving video signal• compression improving channel by and on-demand moving capacity• through to switched increasing more the FTTH footprint by connectingBroadband more Internet homes, service3.0/3.1 is provided platform,channels using which a onto DOCSIS combinesdelivering one CCAP exceptional multiple performance. accessnode Over radio the segmentation, point last along frequency evolution 20 at with years, DTV from the HFC spectrumdownstream repurposing DOCSIS customer and and upstream 1.0 premise, capacity200 by to times, approximately 1,000networks DOCSIS respectively. and This and 3.1,deploy track demonstrating best-in-class has service record is the one increased that of of our capability we key stay investing strategies to for competitiveInternet ensuring in service with into cost-effectively other homes our and bus the end of 2016,to 100% of DOCSIS our CCAP cable technologyGigabit network Internet. supporting had DOCSIS been 3.1 upgraded and Ignite We have beendevelopment deploying areas and transitioning 1 to FTTH GHzbegan since 2005. upgrading fibre-to-the-curb In our 2018, (FTTC) we HFCFTTH. in network FTTC to new provides a the mixDOCSIS, foundation including of Remote for 1.2 PHY subsequent and GHz DOCSIS generationshigh-speed FTTC 4.0, of Internet which and will accessibility, improve quality, andwhile tier increasing speed the attainability, capacitybased on of gigabit our passive HFCcan optical network. support network Rogers symmetrical (GPON) FTTHGbps downstream/upstream per technology is speeds that in select up neighbourhoods. to 10 less Partnership, primarily in ugh the following network sharing agreements: nada, respectively, we deliver moving radio frequency amplifiers, ugh , Milwaukee, and lt from fibre cuts and other events. ; and province of Quebec and Ottawa. eastern Canada, including certain populationand centres in eastern southern Ontario, southernNew Quebec, and Brunswick, smaller Manitoba, holdingsOrion in Alberta, fixed wireless and LTE British2300 national MHz network bands. Columbia. utilizes The the jointly held Two network-sharing arrangementsnetwork capabilities: to enhance coverage• and with Bell MTS, which covers• 98% with of Videotron to the provide population HSPA across and LTE services across the which Rogers holds aMHz 50% of interest. FDD Orion 2300previously holds MHz licences held spectrum for (of by 30 which Inukshuk 20 MHz Wire is usable), 850 MHz, 1900 MHz AWS spectrum, 700 MHz, 2500 MHz TDD Type of spectrum2300 MHz Type of network venture Orion Wireless Partnership (Orion) is a joint operation with Bell in Who it supports the same time improving networkby performance, deploying quality, digital and fibre reliability optics, re and reducing homes passed per node to an average of 60; Our expansive inter-city and intra-city(HFC) fibre infrastructure and delivers hybrid services fibre-coaxial in to Ontario, consumers New and Brunswick, and businesses onalso the operate island of a Newfoundland. transcontinental, We with facilities-based 80,000 fibre-optic network kilometres ofbusiness fibre optic cabletelecommunications that customers, service is providers. used to Wefibre network service including also for backhaul use for our wirelessnetwork cell extensive site government extends traffic. In coast-to-coast Canada,fibre, the and and includes transmissionpresence, local electronics and and IP other routing regional and andalso switching extends infrastructure. systems, to The the network Manitoba-Minnesota US hubs, border from thro Vancouver points southChicago; to of Seattle; from from the through Toronto Albany through toconnect New Buffalo; Canada’s York largest and Citymarkets for markets, and the from exchange Ashburn, of while data Montreal and allowing also voice traffic. usThe reaching network to is key structured to US optimizeto performance allow and reliability for and theover simultaneous a delivery of singleinterconnect video, platform. voice, with and Itminimize Internet disruptions distribution is that can resu generally hubs, constructedHomes providing in and redundancy rings commercialthrough buildings that to HFC are nodes connectednetwork or to using FTTH. our fibre We network opticcoaxial connect cable cable the and HFC or thespectrum node home fibre. in to to Ontario Using the the video, and 860 node voice, Atlantic and using MHz Ca broadbandsegmentation and services reduces the to 750 number our ofthereby MHz homes customers. increasing passed HFC the per of bandwidth node HFC and node, capacity cable per subscriber. We continually upgrade the networkperformance to and improve reliability, capacity, reduce enhance operatingnew features costs, and and functionality. introduce Our investments• are focused on: uplifting our HFC network to 1.2 GHz (and, over time, 1.8 GHz) while at CABLE We also have access to additional spectrum thro MANAGEMENT’S DISCUSSION AND ANALYSIS

We continue to invest in and improve our cable network services; for WIDESPREAD PRODUCT DISTRIBUTION example, with technology to support gigabit Internet speeds, Ignite TV, Rogers 4K TV, our 4K PVR set-top box, and a significant WIRELESS commitment to live broadcasting in 4K, including regular season We have an extensive national distribution network and offer our Toronto Blue Jays home games for 2021 and numerous NHL and wireless products nationally through multiple channels, including: NBA games. • company-owned Rogers, Fido, and chatr retail stores; • customer self-serve using rogers.com, fido.ca, chatrwireless.com, Voice-over-cable telephony services are also served using the and e-commerce sites; DOCSIS network. Our offerings ensure a high quality of service by • an extensive independent dealer network; including geographic redundancy and network backup powering. • major retail chains and convenience stores; Our phone service includes a rich set of features, such as TV Call • other distribution channels, such as WOW! mobile boutique, as Display (available on our NextBox™ set-top boxes), three-way well as Wireless Wave and TBooth Wireless through our calling, and advanced voicemail features that allow customers to be ownership interest in Glentel; notified of, and listen to, their home voicemail on their wireless • our contact centres; phoneorovertheInternet. • outbound telemarketing; and We own and operate some of the most advanced networks and • Rogers Pro On-the-Go, a personalized retail service that delivers data centres in Canada. We leverage our national fibre, cable, and and sets up new wireless devices to the customer’s location of wireless networks and data centre infrastructure to enable choice within the service area. businesses to deliver greater value to their customers through proactive network monitoring and problem resolution with CABLE enterprise-level reliability, security, and performance. Our primary We distribute our residential cable products using various channels, and secondary Network Operation Centres proactively monitor including: Rogers’ networks to mitigate the risk of service interruptions and to • company-owned Rogers and Fido retail stores; allow for rapid responses to any outages. • customer self-serve using rogers.com and fido.ca; Our data centres provide guaranteed uptime and expertise in • our contact centres, outbound telemarketing, and door-to-door collocation, cloud, and managed services solutions. We own and agents; and operate 9 state-of-the-art, highly reliable, certified data centres • major retail chains. across Canada, including: Our sales team and third-party retailers sell services to the business, • Canada’s first Tier III Design and Construction certified multi- public sector, and carrier wholesale markets. An extensive network of tenant facility in Toronto; third-party channel distributors deals with IT integrators, consultants, • Alberta’s first Tier III certified data centre; and local service providers, and other indirect sales relationships. This • a third Tier III certified data centre in Ottawa. diverse approach gives greater breadth of coverage and allows for strong sales growth for next-generation services. POWERFUL BRANDS The Rogers brand has strong national recognition through our: FIRST-CLASS MEDIA CONTENT • established networks; We deliver highly sought-after sports content enhanced by the • extensive distribution; following initiatives: • recognizable media content and programming; • an exclusive 12-year agreement with the NHL, which runs • advertising; through the 2025-2026 season, that allows us to deliver • event and venue sponsorships; coverage of professional hockey in Canada across television, • community investment, including the Ted Rogers Scholarship smartphones, tablets, and the Internet; Fund; and • exclusive broadcasting and distribution rights of the Toronto • to some of Canada’s landmark buildings. Blue Jays in Canada through our ownership of the team; We also own or utilize some of Canada’s most recognized brands, • NHL LIVE, an online OTT destination for NHL action on any screen; including: • Sportsnet NOW, Canada’s first OTT sports service, offering 24/7 • the wireless brands of Rogers, Fido, and chatr; access to Sportsnet’s TV content; • the residential brands of Rogers and Fido; • Sportsnet NOW+, which offers access to additional content, • 23 TV stations and specialty channels, including Sportsnet, such as additional NHL and NBA games, the Bundesliga, Omni, Citytv, FX (Canada), and FXX (Canada); PremiershipRugby,andtheIndyCarSeries; • 55 radio stations, including 98.1 CHFI™, 680 NEWS™,Sportsnet • the MLB Network, a 24-hour network dedicated to baseball, The FAN™,KiSS™,JACKFM™, and SONiC™; brought to Canada on Rogers television services; • major league sports teams, including the Toronto Blue Jays, and • an 8-year, multi-platform broadcast rights agreement with MLB teams owned by MLSE, such as the Toronto Maple Leafs, the Properties and MLB Advanced Media to show live and , Toronto FC, and the ; in-progress games and highlights within Canada through • an exclusive 12-year agreement with the NHL, which runs November 2021; and through the 2025-2026 season, that allows us to deliver • a 10-year, multi-platform agreement that runs through August coverage of professional hockey in Canada; and 2024, which makes Rogers the exclusive wholesaler and • Today’s Shopping Choice, a premium online and TV shopping Canadian distributor of World Wrestling Entertainment’s (WWE) retailer. flagship programming.

40 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 41 | ROGERS COMMUNICATIONS INC. ngagement surveys and leadership 2020 ANNUAL REPORT through initiatives including e development programs; and development, performance-drivenprograms, employee and recognition employees; career progression programs for front-line employees the tools and training to be successful. ENGAGED PEOPLE For our teamcreate of a great approximately workplace, 23,500experience, focusing which on employees, include: all we aspects• of strive the engaging employee to employees and building high-performing• teams aiming to attract and retain top talent through effective training • maintaining our commitment to• diversity and providing inclusion; a and safe, collaborative, and agile workplace that provides FINANCIAL STRENGTH AND FLEXIBILITY We have anleverage, investment-grade and balance substantial sheet,December available 31, conservative 2020. liquidity Our debt capital ofbalances, resources consist cash $5.7 primarily of provided billion cash credit, by as funds operating available under at activities, our receivablesissuances available securitization program, lines of of USunder dollar-denominated our commercial US paper CPapproximately program, (US $1,535 and CP) long-term millionpublicly debt. traded of companies We as marketable also at December owned equity 31, 2020. securitiesThe following in information is forward-lookingconjunction and should with be “About read in Forward-Lookingand Information”, Operating “Financial Guidance”, “RisksBusiness”, and Uncertainties and Affecting Our ourcompetitive, and other regulatory disclosurescould assumptions, cause about factors, our variousdiffer and actual from those economic, risks future currently expected. financial that andWe operating expect that results we will to haveanticipated sufficient capital resources cash to satisfy fundingfunding our requirements of inmaturing dividends short-term 2021, on borrowings includingfinancing our and the long-term and common debt,opening investing shares, and cash activities. balance, other repayment cashfunds This provided of by takes available operatingsecuritization into activities, to and program, account us ourpublicly our issued, under US or private CP placement creditDecember debt 31, from program, facilities, 2020, time to and thereflow time. our of were As other funds no at between receivables RCI significant bank, and its restrictions subsidiary on companies. We the believerequirements by we issuing additional financing,market which, can depending conditions, on could satisfycredit include and restructuring foreseeable letter our offacilities, additional existing credit issuing bank facilities, public funding enteringamending or into the new private terms bank long-termprograms, credit of or our or short-term receivablesrefinance debt, issuing securitization a or equity.conditions US portion and CP We other of factors.these There may is existing financing no also initiatives assurance, debtnecessary. however, will opportunistically that depending or can on be market done as they become ireless device, a connected ing English, French, Mandarin, , a tool that gives customers the ability to ™ , a flexible daily payment option for chatr customers; ™ track on theirinstallation or phone service call; when a technician will arrive for an products attechnician their visiting their residence; and convenience,Rogers without EnRoute the need for a accounts online ortheir through the Facebook Fido loginremember MyAccount multiple credentials, app login using eliminating credentialseasier and to the access; making self-service need to plan changes and hardware upgrades online; control over their WiFi experience; both ofcustomize which their data usage in allow real-time through MyRogers; Wireless customersadditional five hours to of data, per manage billing cycle, at no and extraInternet charge; customers free access to newas perks every deals Thursday, such andapparel, giveaways entertainment, and from more; leading brands on food,understand their drinks, monthly charges; allowing Canadians tohome use when traveling their to included wireless destinations; DAY PASS plan like they do at solutions professional willlocation meet of choice a (within the customer servicebased area) on at and their set preferences; their up their time device and Rogers Infinite plans and through our Fido Payment Program; within hours of ordering a new w online chat through our websites; • • the ability for customers to install their Internet and TV • a simplified login, allowing Fido customers to log in to their located entirely within Canada; take calls in four languages, includ that automatically identifiesvoice, our registered increasing customerspotential fraud; by security their and protecting• customers the ability from for Fido and Rogers customers to complete price and Cantonese; monitoring, and Ignite SmartStream services. account without signing in; and • Ignite WiFi Hub for all Ignite TV customers• to give Family them Data ultimate Manager, a data manager tool, and Data Top• Ups, Fido 5 Extra Hours,• Fido which XTRA, grant a program Fido that Pulse gives customers Fido postpaid an Wireless and • a simple online bill, making it• easier for Roam customers Like to Home read and and Fido Roam, worry-free wireless roaming • • Rogers Infinite unlimited data• plans with 24-month, no overage $0 charges; down, interest-free wireless• device Rogers financing Pro on On-the-Go, a personalized retail service whereby • customer care available over Facebook Messenger, Twitter, and CUSTOMER EXPERIENCE We are committedexperience possible. To to do this, providing wemake have it invested our in easier several customers and areas to us, more such with convenient as: for the customers• to best interact live with customer support handled by customer• solution an specialists innovative Integrated Voice Response (IVR) system that can • voice authentication technology across all of our contact centres • self-serve options, including: • customer self-install for Internet, TV, home phone, smart home • Top Up as a Guest, which allows chatr customers to top up an MANAGEMENT’S DISCUSSION AND ANALYSIS

WIDESPREAD SHAREHOLDER BASE AND with a combined average daily trading volume of approximately 1.7 million shares in 2020. In addition, RCI’s Class A Voting DIVIDENDS common shares (Class A Shares) trade on the TSX. At the discretion of the Board, we pay an equal dividend on both classes of shares. RCI’sClassBNon-Votingcommonshares(ClassBNon-Voting In 2020, each share paid an annualized dividend of $2.00. Shares) are widely held and actively trade on the TSX and the NYSE

42 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 43 | ted 140 (64) (203) (18) (192) 2 2019 % Chg ures. These are not 9,250 (8) 3,954 – 2,072 (22) 6,212 (6) 2,135 (19) 2,278 4 4,345 (6) 1,919 1 2,807 (18) 4,526 (5) 2,043 (22) 41.2% 0.9 pts 15,073 (8) 12,965 (8) $ 4.17$ 4.15 (18) (18) $ 3.99$ 3.97 (21) (21) 51 (166) (196) ROGERS COMMUNICATIONS INC. 2020 8,530 3,946 1,606 5,857 1,725 2,366 4,067 1,935 2,312 4,321 1,592 Years ended December 31 42.1% 13,916 11,955 $3.42 $3.40 $3.15 $3.13 2020 ANNUAL REPORT competitors. Many of theseshould are not not defined be terms considered underany alternative IFRS other and measures financial measure toPerformance of net performance Indicators” income under and or IFRS.Performance “Non-GAAP See Measures” for “Key Measures more information. and Related es and should not be considered substitutes or alternatives for GAAP meas luding how we calculate them and the ratios in which they are used. 2 2 2 2 1 2 2 2 Wireless Cable Media Corporate items and intercompany eliminations Wireless Cable Media Corporate items and intercompany eliminations As defined. See “Key Performance Indicators”. Adjusted EBITDA, adjusted net income, and free cash flow are non-GAAP measur defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Rela Performance Measures” for information about these measures, inc Revenue Total service revenue Adjusted EBITDA Revenue (In millions of dollars, except margins and per share amounts) 1 2 SUMMARY OF CONSOLIDATED RESULTS Adjusted EBITDA margin Adjusted basic earnings per share 2020 Financial Results See “Accounting Policies” in thisAudited MD&A and the notes Consolidated toaccounting our policies 2020 and Financial estimatesdiscussion. as they Statements relate to for theWe following use important performance several against our key strategy and performance the results of indicators our peers to and measure our Adjusted diluted earnings per share Capital expenditures Cash provided by operating activities Free cash flow Net income Basic earnings per share Diluted earnings per share Adjusted net income Adjusted EBITDA MANAGEMENT’S DISCUSSION AND ANALYSIS

KEY CHANGES IN FINANCIAL RESULTS THIS ADJUSTED EBITDA Wireless adjusted EBITDA decreased this year primarily as a result YEAR COMPARED TO 2019 of the decrease in service revenue as discussed above, partially offset by the shift to device financing, which has significantly REVENUE improved the Wireless equipment margin, and various cost Wireless service revenue decreasedthisyearasaresultoflower efficiencies and productivity initiatives. This gave rise to a margin of roaming revenue due to global travel restrictions during COVID-19 47.7%, up 70 basis points from last year. and lower overage revenue as a result of the continued adoption of our Rogers Infinite unlimited data plans. Cable adjusted EBITDA increased this year as a result of various cost efficiencies, which led to a margin of 49.0%, up 50 basis points Cable revenue was in line with 2019. from last year. Media revenue decreased this year as a result of lower sports- Media adjusted EBITDA decreased this year primarily as a result of related revenues, including at the Toronto Blue Jays, due to the decreased revenue as discussed above, partially offset by lower impact of COVID-19, the suspension of major sports leagues from sports-related costs due to the suspension of major sports leagues mid-March until the third quarter, and the postponed start of the from mid-March until the third quarter and the postponed start of 2020-2021 NHL and NBA seasons, which traditionally start early in the 2020-2021 NHL and NBA seasons, which led to a margin of the fourth quarter, as well as lower advertising revenue related to 3.2%, down 360 basis points from last year. softness in the advertising market, partially offset by higher revenues at Today’s Shopping Choice™. NET INCOME AND ADJUSTED NET INCOME Net income and adjusted net income both decreased this year primarily as a result of lower adjusted EBITDA.

44 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 45 | ROGERS COMMUNICATIONS INC. -to-day operations, to service ndependent dealers, agents, and ity during key selling periods. 2020 ANNUAL REPORT existing subscriber relationships, and to attract new subscribers. by economic conditions during COVID-19. COVID-19; and adoption of our Rogerswireless Infinite data unlimited usage data as plansWiFi. customers and spent lower more time at home on The 13% decrease in the costthe of same equipment factors this discussed year was into a equipment customers result revenue of financing above. The theirimprovements in shift device our equipment purchases margin. is reflectedThe in 5% decrease the in other operating• expenses this year lower was roaming a costs result due• of: to COVID-19 various travel cost restrictions; efficiencies and and productivity initiatives; partially offset • higher bad debt expense due toADJUSTED EBITDA theThe adverse 6% decrease change inrevenue in adjusted and expense EBITDA changes this discussed above. year was a result of the OPERATING EXPENSES We record operating expenses in two• categories: the cost of wireless• devices and all equipment; and other expenses involved in day Service revenue Service revenue includesservices from: revenue derived• from postpaid voice and prepaid and monthly•datausage; fees; data •airtime; •longdistancecharges; • essential services charges; • inbound and outbound roaming• charges; and certain other fees and charges. The 8% decrease in service revenue• this year lower was a roaming result of: revenue, due to global• travel a restrictions decrease during in overage revenue as a result of strong customer The 5% decrease indeclines blended in ABPU roaming wasongoing and primarily shift overage a in revenue, resultpurchases. partially subscribers of offset the financing by new, an higher-valueWe device believe thepostpaid subscriber decreases base this inCOVID-19, year with gross were store a closures and resultCanadians. and of net overall the lower impacts additions market of activity to by our Equipment revenue Equipment revenue includesthrough fulfillment revenue by from Wireless’ customertelesales, sales service corporate groups, to stores, websites, and subscribers retailers. i The 7% decrease in equipment revenue• this year lower was gross a additions result due• of: to COVID-19; lower and device upgrades by• existing customers; the partially shift offset in by product• mix towards disciplined higher-value promotional devices; activ and (97) (45) 334 (89) 773 (223) 2019 % Chg 7,1562,0949,250 (8) (7) 2,231 (8) 2,6744,905 (13) 4,345 (5) (9) (6) 1,320 (17) 2019 Chg 60.7%47.0% 1.1 pts 0.7 pts 1,5669,438 (185) 245 1,402 (142) 1.11% (0.11 pts) 4.86% (0.48 pts) $ 66.23$ 55.49 ($ ($ 2.99) 4.74) Years ended December 31 Years ended December 31 245 550 2020 (142) 6,579 1,951 8,530 1,932 2,531 4,463 4,067 1,100 2020 61.8% 47.7% 1,381 9,683 1,260 1.00% 4.38% $ 63.24 $ 50.75 1 1 2 2 2 Service revenue Equipment revenue Cost of equipment Other operating expenses Gross additions Net additions Churn (monthly) Gross additions Churn (monthly) Total postpaid subscribers Net losses Total prepaid subscribers Canadian wireless market. As at end of period. Subscriber counts, subscriberperformance churn, indicators. See blended “Key Performance ABPU, Indicators”. and blended ARPU are key Calculated using service revenue. Calculated using total revenue. Revenue Revenue Operating expenses Operating expenses Adjusted EBITDA Adjusted EBITDA service margin (In millions of dollars, except margins) REVENUE Our revenue dependsrevenue per on user, the the revenue fromother size the equipment sale revenue. of of wireless our devices, and subscriber base, the 1 2 Postpaid Prepaid Blended ABPU (monthly) Blended ARPU (monthly) WIRELESS SUBSCRIBER RESULTS (In thousands, except churn, blended ABPU, and blended ARPU) 1 2 WIRELESS FINANCIAL RESULTS As at December 31, 2020, we• had: approximately 10.9 million subscribers;• and approximately 31% subscriber and revenue share of the WIRELESS ROGERS IS CANADA’S LARGEST PROVIDER OF WIRELESS COMMUNICATIONS SERVICES Adjusted EBITDA margin Capital expenditures MANAGEMENT’S DISCUSSION AND ANALYSIS

CABLE REVENUE Service revenue Service revenue includes revenue derived from: ONE OF CANADA’S LEADING PROVIDERS OF HIGH- • monthly subscription and additional use service revenue from SPEED INTERNET, , AND PHONE residential, small business, enterprise, public sector, and SERVICES wholesale Internet access subscribers; • monthly service revenue from our smart home monitoring As at December 31, 2020, we had: products; and • approximately 2.6 million high-speed Internet subscribers; • modem and other equipment rental fees. • approximately 0.5 million Ignite TV subscribers; and • IPTV and digital cable services, such as: • a network passing approximately 4.6 million homes in • basic service fees; Ontario, New Brunswick, and on the island of Newfoundland. • tier service fees; • access fees for use of channel capacity by third parties; and CABLE FINANCIAL RESULTS • premium and specialty service subscription fees, including pay-per-view service fees and video-on-demand service fees; Years ended December 31 and (In millions of dollars, except margins) 2020 2019 % Chg • rentals of television set-top boxes. Revenue • monthly service fees; Service revenue 3,936 3,940 – • calling features, such as voicemail, call waiting, and caller ID; and Equipment revenue 10 14 (29) • long distance calling.

Revenue 3,946 3,954 – Cable service revenue was in line with 2019 as a result of: Operating expenses 2,011 2,035 (1) • declines in our legacy television and home phone subscriber Adjusted EBITDA 1,935 1,919 1 bases; offset by

Adjusted EBITDA margin 49.0% 48.5% 0.5 pts • the movement of Internet customers from our legacy Internet to Capital expenditures 940 1,153 (18) our Ignite Internet offerings and service pricing changes and discipline; and • the increase in total customer relationships over the past year, CABLE SUBSCRIBER RESULTS 1 due to growth in our Internet and Ignite TV subscriber bases.

Years ended December 31 (In thousands, except ARPA and Equipment revenue penetration) 2020 2019 Chg Equipment revenue includes revenue generated from the sale of Internet television set-top boxes, Internet modems and other equipment, Net additions 57 104 (47) and smart home monitoring equipment. The decrease in Total Internet subscribers 2,3,4 2,598 2,534 64 equipment revenue this year was a result of lower installation Ignite TV activity due to COVID-19. Net additions 218 284 (66) Total Ignite TV subscribers 2 544 326 218 OPERATING EXPENSES Homes passed 2 4,578 4,472 106 We record Cable operating expenses in three categories: Customer relationships • the cost of programming; Net additions 12 21 (9) • the cost of equipment revenue (television set-top boxes, Internet Total customer relationships 2,3,4 2,530 2,510 20 ARPA (monthly) $130.70 $131.71 ($ 1.01) modem and other equipment, and smart home monitoring Penetration 2 55.3% 56.1% (0.8 pts) equipment); and • all other expenses involved in day-to-day operations, to service 1 Subscriber counts are key performance indicators. See “Key Performance Indicators”. and retain existing subscriber relationships, and to attract new 2 As at end of period. 3 On September 30, 2020, we acquired approximately 2,000 Internet subscribers and subscribers. customer relationships as a result of our acquisition of Ruralwave Inc., which are not included in net additions, but do appear in the ending total balance for The 1% decrease in operating expenses this year was a result of: December 31, 2020. • lower costs associated with fewer subscriber additions and 4 On October 1, 2020, we acquired approximately 5,000 Internet subscribers and 6,000 customer relationships as a result of our acquisition of Cable Cable Inc., which increased self-installation; and are not included in net additions, but do appear in the ending total balance for • various cost efficiencies and productivity initiatives. December 31, 2020. ADJUSTED EBITDA The 1% increase in adjusted EBITDA this year was a result of the revenue and expense changes described above.

46 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 47 | ROGERS COMMUNICATIONS INC. s a result of reduced operating 2020 ANNUAL REPORT attendance was prohibited during COVID-19; until the third quarter; and and delayed start of the 2020-2021 NHL and NBA seasons; and of the shortened season; and activity and other cost efficiencies. properties; and concession sales; and • lower game-day revenue at• the the Toronto suspension Blue of all Jays major• as sports the fan leagues delayed from start mid-March of the 2020-2021 NHL andmarket. NBA seasons; and production; • lower programming and production costs• as a Toronto Blue result Jays player of payroll the and game-day costs as a result ADJUSTED EBITDA The 64% decrease in adjustedrevenue and EBITDA expense this changes year described above. was a result of the REVENUE Media revenue is earned from: • advertising sales across its television,• radio, subscriptions and to televised digital and• OTT media products; ticket sales, fund redistribution and other distributions from• MLB, retail product sales. The 22% decrease in revenue this• year was lower a sports-related result revenue of: as a result of COVID-19, including: • lower advertising revenue as a result of softness in the advertising OPERATING EXPENSES We record Media operating expenses in• four primary the categories: cost of broadcast content,• including Toronto Blue sports Jays player• programming compensation; the cost of retail• products sold; all and other expenses involved in day-to-day operations. The 20% decrease in operating expenses• this year was lower a sports-related result costs of: as a result of COVID-19, including: • lower general operating costs a 140 (64) 102 (23) 6.8% (3.6 pts) 2019 % Chg 2,072 (22) 1,932 (20) 51 79 3.2% 2020 1,606 1,555 Years ended December 31 Toronto Blue Jays; through the 2025-2026 season; properties; (In millions of dollars, except margins) Revenue Our Media resultsCOVID-19 this and year reflect the havefrom suspension mid-March been of until significantly all thesubsequent major affected beginning sports postponed of by leagues the startseasons third which of traditionally quarter start early and the in the the 2020-2021 fourth quarter. NHL and NBA MEDIA FINANCIAL RESULTS We have a broad portfolio ofsignificantly media includes: properties, which most • sports media and entertainment, such as Sportsnet and the • our exclusive national 12-year NHL Agreement, which runs • category-leading television and radio broadcasting • multi-platform televised and online• shopping; and digital media. MEDIA DIVERSIFIED CANADIAN MEDIA COMPANY Operating expenses Adjusted EBITDA Adjusted EBITDA margin Capital expenditures MANAGEMENT’S DISCUSSION AND ANALYSIS

CAPITAL EXPENDITURES WIRELESS Capital expenditures in Wireless this year, while lower than in 2019, reflect continued investments in our networks. We continued Capital expenditures include costs associated with acquiring augmenting our existing LTE network with 4.5G technology property, plant and equipment and placing it into service. The investments that are also 5G-ready and we continued to work on telecommunications business requires extensive and continual our 5G deployments in the 600 MHz band and other bands as we investments, including investment in new technologies and the have deployed our 5G network in more than 170 cities and towns. expansion of capacity and geographical reach. Expenditures related to the acquisition of spectrum licences and additions to right-of-use assets are not included in capital expenditures and do CABLE not factor into the calculation of free cash flow or capital intensity. The decrease in capital expenditures in Cable this year was a result See “Managing Our Liquidity and Financial Resources”, “Key of lower residential installation activity during COVID-19 and lower Performance Indicators”, and “Non-GAAP Measures and Related purchases of customer premise equipment. While we continue to Performance Measures” for more information. work towards our ongoing goal of recognizing capital efficiencies and improving our capital intensity, we have prioritized our capital Capital expenditures are significant and have a material impact on expenditures through continued upgrades to our network our cash flows; therefore, our management teams focus on infrastructure with additional fibre deployments, including planning, funding, and managing them. We believe this measure increasing our fibre-to-the-home and fibre-to-the-curb distribution. best reflects our cost of property, plant and equipment in a given These upgrades will lower the number of homes passed per node period and is a simpler measure for comparing between periods. and incorporate the latest technologies to help deliver more Years ended December 31 bandwidth and an even more reliable customer experience as we (In millions of dollars, except capital progress in our Connected Home roadmap. intensity) 2020 2019 % Chg Wireless 1,100 1,320 (17) MEDIA Cable 940 1,153 (18) The decrease in capital expenditures this year was primarily a result Media 79 102 (23) of lower stadium and facility investments at the Toronto Blue Jays, Corporate 193 232 (17) partially offset by an increase in IT and broadcast infrastructure Capital expenditures 1 2,312 2,807 (18) expenditures. Capital intensity 2 16.6% 18.6% (2.0 pts) CORPORATE 1 Includes additions to property, plant and equipment net of proceeds on disposition, The decrease in corporate capital expenditures this year was a but does not include expenditures for spectrum licences or additions to right-of-use assets. result of lower investments in our real estate facilities, partially offset 2 As defined. See “Key Performance Indicators”. by higher IT infrastructure expenditures.

Consolidated capital expenditures have declined by 18% this year. CAPITAL INTENSITY Most of this decline has been a result of fewer residential Capital intensity decreased this year as a result of lower capital installations, deferrals of projects that have been delayed as a result expenditures, resulting from capital cost efficiencies, partially offset of the pandemic, and lower costs associated with the introduction by lower revenue, as discussed above. of self-install in our Cable business, and other overall efficiencies as evidenced by our improving capital intensity ratios. Despite the overall decline, we continue to prioritize capital spending to support our long-term strategy, including expansion of our 5G network and our Connected Home roadmap.

48 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 49 | 21 29 19 (100) 80 n/m 11 18 61 15 (79) n/m (19) – 840 5 746 5 2019 % Chg – 27 13 70 (97) (19) 881 107 780 ROGERS COMMUNICATIONS INC. 2020 Years ended December 31 ffset the foreign exchange risk n short-term borrowings and on long-term 1 2020 ANNUAL REPORT the past year; partially offset by debt. instruments debt benefits liability Interest on borrowings includes interestdebt. o Total finance costs Loss (gain) on foreign exchange Change in fair value of derivative Capitalized interest Other Loss on repayment of long-term Interest on post-employment Interest on lease liabilities FINANCE COSTS 1 The 5% increase inhigher finance interest costs on borrowings, this caused year by: • was primarily higher a outstanding result debt of as a result• of a our lower debt weighted issuances average cost over of borrowing on our outstanding Loss on repayment of long-term debt In 2019, we recognizedterm a $19 debt, million lossassociated reflecting on with repayment the our ofnotes long- redemption payment in of November of $900 20192020. that million redemption were of premiums otherwise 4.7% due senior in September Foreign exchange and change in fairWe value recognized of $107 derivative million instruments in net(2019 foreign exchange – losses in $79 2020 primarily million attributed in net topaper (US gains). CP) our program These borrowings. US losses dollar-denominated andThese gains commercial foreign were exchangeoffset by losses the (2019 $97 – millionderivatives gains) gain (2019 related were – to $80 substantially the millionthe change loss) debt in that fair was derivatives, value primarilyaccounting of which attributed purposes, to we were used notrelated to to o designated these US as dollar-denominated borrowings. hedges for See “Managing Ourinformation Liquidity about and our debt Financial and related Resources” finance costs. for more (In millions of dollars) Interest on borrowings 16 (31) (10) n/m 712 (19) 139 33 840 5 175 24 2019 % Chg 2019 % Chg 2,043 (22) 6,212 (6) 2,488 5 2,297 4 2,488 5 1 11 580 185 881 217 2020 2020 1,592 5,857 2,618 2,390 2,618 Years ended December 31 Years ended December 31 1 other Income tax expense Depreciation and amortization Restructuring, acquisition and Finance costs Other expense (income) equipment Adjusted EBITDA is a non-GAAPor measure and alternative should for not GAAP be measures.have considered a It a substitute is standard not a meaning,companies. defined so See term may under “Non-GAAP IFRS notinformation and about Measures be this does measure, a and not including how reliable Related we way calculate it. Performance to Measures” compare us for to other Net income Deduct (add): During the$185 million year (2019 – ended $139other million) expenses. in December In restructuring, acquisitiontemporary 2020, and 31, these employee costs compensation 2020,response were and to primarily we other COVID-19 incremental, as coststhe incurred well incurred targeted as in restructuring severance of costscosts associated were our with primarily employee severance base.restructuring costs of In associated our 2019, with employee these other the base costs. targeted and contract termination and RESTRUCTURING, ACQUISITION AND OTHER See “Key Changes2019” for in a discussion Financial of the Results increase in This adjusted EBITDA this Year year. DEPRECIATION Compared AND AMORTIZATION to ADJUSTED EBITDA n/m - not meaningful 1 REVIEW OF CONSOLIDATED PERFORMANCE This section discusses our netnotformpartofthesegmentdiscussionsabove. income and other expenses that do (In millions of dollars) (In millions of dollars) Depreciation of property, plant and Adjusted EBITDA Depreciation of right-of-use assets Amortization Total depreciation and amortization Total depreciation andlower amortization capital increased expenditures thiscumulative in impact year, of 2020, despite increasing capital primarilyto expenditures and as right-of-use additions a assetsExpenditures” for result over more information. of the the past several years. See “Capital MANAGEMENT’S DISCUSSION AND ANALYSIS

INCOME TAX EXPENSE ADJUSTED NET INCOME Below is a summary of the difference between income tax expense Adjusted net income was 19% lower compared to 2019, primarily computed by applying the statutory income tax rate to income as a result of lower adjusted EBITDA, higher depreciation and before income tax expense and the actual income tax expense for amortization, and higher finance costs. the year. Years ended December 31 (In millions of dollars, except per Years ended December 31 share amounts) 2020 2019 % Chg (In millions of dollars, except tax rates) 2020 2019 Adjusted EBITDA 1 5,857 6,212 (6) Statutory income tax rate 26.6% 26.7% Deduct (add): Income before income tax expense 2,172 2,755 Depreciation and amortization 2,618 2,488 5 Finance costs 2 881 821 7 Computed income tax expense 578 736 Other expense (income) 1 (10) n/m Increase (decrease) in income tax Income tax expense 3 632 778 (19) expense resulting from: Non-deductible portion of equity Adjusted net income 1 1,725 2,135 (19) losses 10 7 Adjusted basic earnings per share 1 $3.42 $ 4.17 (18) Income tax adjustment, legislative Adjusted diluted earnings per share 1 $3.40 $ 4.15 (18) tax change (3) (23) Non-taxable portion of capital 1 Adjusted EBITDA, adjusted net income, and adjusted basic and diluted earnings per gains – (2) share are non-GAAP measures and should not be considered as substitutes or alternatives for GAAP measures. These are not defined terms under IFRS, and do not Other items (5) (6) have standard meanings, so may not be a reliable way to compare us to other Total income tax expense 580 712 companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate them. Effectiveincometaxrate 26.7% 25.8% 2 Finance costs above exclude a $19 million loss on repayment of long-term debt for Cash income taxes paid 418 400 the year ended December 31, 2019. 3 Income tax expense above excludes a $49 million recovery (2019 – $43 million recovery) for the year ended December 31, 2020 related to the income tax impact for Our effective income tax rate this year was 26.7% compared to adjusted items. Income tax expense also excludes a $3 million recovery as a result of 25.8% for 2019. The effective income tax rate for 2020 legislative tax changes for the year ended December 31, 2020 (2019 – $23 million). approximated the statutory income tax rate. Cash income taxes paid increased this year primarily as a result of EMPLOYEES the timing of installment payments. Our transition to a device Employee salaries and benefits represent a material portion of our financing business model results in earlier recognition of expenses. As at December 31, 2020, we had approximately 23,500 equipment revenue for income tax purposes. As a result, we expect employees (2019 – 25,300) across all of our operating groups, a further approximately $300 million increase in our 2021 cash including shared services and the corporate office. Total salaries income tax, mostly within the first quarter, reflecting our final 2020 and benefits for full-time and part-time employees in 2020 were tax installment. $1,847 million (2019 – $2,005 million).

NET INCOME Net income was 22% lower than last year. See “Key Changes in Financial Results This Year Compared to 2019” for more information. Years ended December 31 (In millions of dollars, except per share amounts) 2020 2019 % Chg Net income 1,592 2,043 (22) Basic earnings per share $3.15 $ 3.99 (21) Diluted earnings per share $3.13 $ 3.97 (21)

50 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 51 | ROGERS COMMUNICATIONS INC. sult of continuing to monetize offset by higher Sportsnet and ected subscriber adoption of our creased in 2019 to $6,212 million, und subscriber base management. 2020 ANNUAL REPORT Revenue Consolidated revenue remained stable ingrowth 2019, of driven by 1% revenue Media. in Wireless and CableWireless offset revenue by increased a asthe 4% a increasing re decline demand for in with data a disciplined in approach the aro This first increase half was of partially the offset(as by a year a result along decrease of innew the overage faster-than-exp revenue Rogerscompetitive market Infinite environment in the unlimited second half of data 2019. Cable revenue increased plans) by 1%from and as the the increase an general in Internetusage movement revenue elevated tiers of customers ofdecrease to in our legacy higher Internet Television speed subscriberspricing offerings and and packages. the was impact of partially Phone offsetMedia by revenue the decreasedpublishing by business 4% during asToronto a the Blue result year Jays, ofLeague and Baseball the primarily lower in sale due 2018, revenueToday’s of partially at Shopping to our Choice the asale revenue. distribution of Excluding our from theLeague publishing impact Baseball Major business last of year, and the Media1% revenue the this would year. distribution have increased from by Major Adjusted EBITDA Consolidated adjusted EBITDA in reflecting increasesEBITDA in increased 6% Wireless as awhich result and of contributed the Cable. impact approximately ofvarious adopting Wireless 4% cost IFRS 16, of efficiencies adjusted and theEBITDA productivity overall initiatives. increased Cable growth, by adjusted and revenue 2% growth in 2019EBITDA and as decreased various a 29% costrevenue result primarily as discussed of efficiencies. as above. strong a Media Internet result adjusted of theNet income decrease and adjusted in net income Net income andprimarily adjusted as net a income resulthigher finance of both costs, higher partially decreased offset depreciation byincome in higher and decreased adjusted 2019 to amortization EBITDA. $2,043 Net and million2018 in 2019 and from $2,059 adjusted million2019 in net from $2,241 million income in 2018. decreased to $2,135 million in %Chg 1 196 (29) (204) – (177) 8 5,983 4 2,241 (5) 2,059 (1) 1,874 2 4,090 6 2,168 (4) 3,932 1 9,200 1 39.6% 1.6 pts 2018 15,096 – 12,974 – 1 140 (203) (192) 6,212 2,135 2,043 1,919 4,345 2,072 3,954 9,250 41.2% 2019 15,073 12,965 Years ended December 31 nce Measures” for information about ively from that date. Our 2018 results have 2 3 3 2 3 3 intercompany eliminations intercompany eliminations Media Cable Corporate items and Wireless Corporate items and Media Cable Wireless Adjusted EBITDA, adjusted EBITDA margin,measures and adjusted and net income should aremeasures. non-GAAP not These are bemeanings, not so considered defined may substitutes not terms“Non-GAAP be or Measures under a and alternatives IFRS reliable Related way for and Performa to do GAAP compare not us to have other standard companies. See Effective January 1,standard 2019, included we in adopted our results IFRS prospect 16, with theAs defined. ongoing See “Key impacts Performance Indicators”. of this not been restated for the effects of IFRS 16. See “Accounting Policies”. these measures, including how we calculate them. Adjusted EBITDA margin Adjusted net income Net income Revenue Total service revenue Adjusted EBITDA 1 2 3 Adjusted EBITDA 2019 FULL-YEAR RESULTS COMPARED TO 2018 Revenue (In millions of dollars, except margins) MANAGEMENT’S DISCUSSION AND ANALYSIS

QUARTERLY RESULTS Below is a summary of our quarterly consolidated financial results and key performance indicators for 2020 and 2019.

QUARTERLY CONSOLIDATED FINANCIAL SUMMARY 2020 2019 (In millions of dollars, except per share amounts) Full Year Q4 Q3 Q2 Q1 Full Year Q4 Q3 Q2 Q1 Revenue Wireless 8,530 2,291 2,228 1,934 2,077 9,250 2,493 2,324 2,244 2,189 Cable 3,946 1,019 988 966 973 3,954 987 994 997 976 Media 1,606 409 489 296 412 2,072 530 483 591 468 Corporate items and intercompany eliminations (166) (39) (40) (41) (46) (203) (58) (47) (52) (46) Total revenue 13,916 3,680 3,665 3,155 3,416 15,073 3,952 3,754 3,780 3,587 Total service revenue 1 11,955 3,023 3,086 2,797 3,049 12,965 3,244 3,233 3,345 3,143 Adjusted EBITDA Wireless 4,067 1,034 1,089 918 1,026 4,345 1,064 1,138 1,128 1,015 Cable 1,935 520 508 454 453 1,919 497 499 478 445 Media 51 82 89 (35) (85) 140 22 130 72 (84) Corporate items and intercompany eliminations (196) (46) (48) (43) (59) (192) (53) (55) (43) (41)

Adjusted EBITDA 2 5,857 1,590 1,638 1,294 1,335 6,212 1,530 1,712 1,635 1,335 Deduct (add): Depreciation and amortization 2,618 666 663 650 639 2,488 638 627 614 609 Restructuring, acquisition and other 185 73 49 42 21 139 38 42 39 20 Finance costs 881 228 219 214 220 840 230 215 206 189 Other expense (income) 1 2 6 7 (14) (10) (12) 16 (1) (13) Net income before income tax expense 2,172 621 701 381 469 2,755 636 812 777 530 Income tax expense 580 172 189 102 117 712 168 219 186 139 Net income 1,592 449 512 279 352 2,043 468 593 591 391 Earnings per share: Basic $3.15$ 0.89 $ 1.01 $ 0.55 $ 0.70 $ 3.99 $ 0.92 $ 1.16 $ 1.15 $ 0.76 Diluted $3.13$ 0.89 $ 1.01 $ 0.54 $ 0.68 $ 3.97 $ 0.92 $ 1.14 $ 1.15 $ 0.76 Net income 1,592 449 512 279 352 2,043 468 593 591 391 Add (deduct): Restructuring, acquisition and other 185 73 49 42 21 139 38 42 39 20 Loss on repayment of long-term debt – –––– 1919––– Income tax impact of above items (49) (19) (13) (11) (6) (43) (14) (13) (10) (6) Income tax adjustment, legislative tax change (3) (3) – – – (23) – – (23) –

Adjusted net income 2 1,725 500 548 310 367 2,135 511 622 597 405

Adjusted earnings per share 2: Basic $3.42$ 0.99 $ 1.09 $ 0.61 $ 0.73 $ 4.17 $ 1.00 $ 1.22 $ 1.17 $ 0.79 Diluted $3.40$ 0.99 $ 1.08 $ 0.60 $ 0.71 $ 4.15 $ 1.00 $ 1.19 $ 1.16 $ 0.78 Capital expenditures 2,312 656 504 559 593 2,807 791 657 742 617 Cash provided by operating activities 4,321 947 986 1,429 959 4,526 1,166 1,305 1,057 998 Free cash flow 2 2,366 568 868 468 462 2,278 497 767 609 405

1 As defined. See “Key Performance Indicators”. 2 Adjusted EBITDA, adjusted net income, adjusted basic and diluted earnings per share, and free cash flow are non-GAAP measures and should not be considered as substitutes or alternatives for GAAP measures. These are not defined terms under IFRS, and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate them.

52 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 53 | ROGERS COMMUNICATIONS INC. value of derivative instruments, r to those of traditional postpaid , along with ongoing disciplined it, and collection; however, most of ed in lower roaming revenue. Most 2020 ANNUAL REPORT financing higher-value devices and recommencedSeptember with 2020, causing sports-related contracted revenuesuch and as expenses, seasons programming rights amortization,in from to the be year recognized than July later is typical; and to late December 2020related and revenue and early expenses that January arefourth typically quarter 2021, recognized to in not causing the be recognized sports- at that point. promotional activity,equipment margin; and which is contributingreflect the realization to ofpartially our offset by enhanced improving customer service efforts; unlimited data plans. other income and expenses, impairmentincome of tax expense. assets, and changes in Wireless Trends affecting bothreflect: Wireless revenue• the and growing number adjusted of• wireless subscribers; greater EBITDA usage of• wireless data; higher wireless equipment revenue as more consumers shift to fluctuations, amongsegments. other This means our things, resultsindicative in in one of quarter are each how notCable, necessarily we of and will Media our performcertain other each in historical reportable trends have in, a their unique businesses. future seasonal quarter.COVID-19 has aspects Wireless, significantly affected to, our operatingaddition and results to in the 2020 typical in seasonaldescribed fluctuations below. in In our Wireless, business the thatglobal are decline travel in customer restrictions travel result duenotably to in Media, major professional sports• leagues: postponed their 2019-20 seasons between March and July 2020 • postponed the start of the 2020-21 NBA and NHL seasons to We expect COVID-19 will continue to2021 affect and our operating there results is in and continued potential uncertainty outcomes of surrounding COVID-19. the duration Fluctuations in netattributed income to from losses quarter ongains the to or repayment losses, quarter changes of can in debt, also the foreign fair be exchange • decreasing postpaid churn, which we believe is beginning• to lower overage revenue as customersAdditional continue trends affecting to Wireless adjusted adoptcosts EBITDA related reflect our to higher the increasing number of subscribers. We continue tosubscribers, target reflected organic in growthsubscribers in the relative higher-value increasingevolving to postpaid proportion to have prepaid of properties simila subscribers. postpaid Prepaid plans are plans. We believe thischoice evolution of subscribing provides to a consumers postpaidinourcustomerbaseovertimehasresultedinhighercostsfor with or prepaid greater service plan. Growth customer service, retention, cred the costefficiencies. increases have beenWireless offset operating results bymarketing are and gains influenced promotionalsubscriber by in expenditures additions the operating and timing and higher of related our levels subsidies, of resulting in higher ice revenue, as discussed above. sed by 3%, primarily as a result of nues and lower general operating QUARTERLY TRENDS AND SEASONALITY Our operating results generallyresult vary of from changes quarter in to general quarter as economic a conditions and seasonal Net income and adjusted net income Net income and adjusted netquarter income both by decreased 4% in and thedepreciation fourth 2%, and respectively, primarily amortization, as partiallyEBITDA. a offset result by of higher higher adjusted Adjusted EBITDA and margins In the fourth quarter,4% consolidated and adjusted EBITDA ourpoints. increased adjusted by EBITDA marginWireless expanded adjusted EBITDA by decrea 450 basis This gave rise toyear. a margin of 51.0%, upMedia 60 basis adjusted points EBITDA fromquarter, increased primarily last due by to lower $60associated programming with and million, the production delayed in costs startour of the major maintained fourth sports subscriber leagues relative reve costs to as a result ofpartially reduced offset operating by activity lower and revenue,to cost as a efficiencies, discussed margin of above. 20.0%. This gave rise Revenue Total revenue decreased by 7%by in an the 8% fourth decrease in quarter, Wireless largely service driven revenue. The Wireless service revenue decreaseroaming was revenue mainly due to a global result traveland of restrictions lower lower during COVID-19, overage revenue,adoption primarily as of a our resultequipment of Rogers the revenue continued Infiniteadditions decreased unlimited and as dataduring lower plans. a COVID-19. Wireless device result upgrades ofCable by a revenue increased existing by lower 3%the subscribers in gross movement the of fourth Internet quarterour as customers a Ignite from result our of Internetdiscipline. legacy offerings Internet to and serviceMedia revenue pricing decreased by 23% changes ina the result and fourth quarter, of primarily as theand postponement NBA of the seasons,quarter, start and of which softness the in traditionallypartially 2020-2021 the offset NHL by advertising start higher market revenue early at due Today’s to Shopping in Choice. COVID-19, the fourth FOURTH QUARTER 2020 RESULTS Results commentary inthe “Fourth fourth quarter Quarter of 2020 2020 with the Results” fourth quarter compares of 2019. the flow-throughrevenue, impact partially offset of bysignificantly the improved the shift our to Wireless aforementioned equipment devicecost margin, financing, and decrease which efficiencies. various has in Thismargin gave of 63.2%, riseyear. an to improvement an of 370 adjusted basisCable EBITDA points adjusted service from EBITDA last primarily increased as a by result of 5% higher in serv the fourth quarter, MANAGEMENT’S DISCUSSION AND ANALYSIS

subscriber acquisition- and activation-related expenses, typically in Cable results from our business customers do not generally have the third and fourth quarters. Conversely, periods with higher any unique seasonal aspects. activity may adversely impact subscriber churn metrics as a result of heightened competitive activity. The third and fourth quarters Media typically experience higher volumes of activity as a result of “back to Trends affecting Media revenue and adjusted EBITDA are generally school” and holiday season-related consumer behaviour. the result of: Aggressive promotional offers are often advertised during these • fluctuations in advertising and consumer market conditions; periods and also contribute to the impact on subscriber metrics. In • subscriber rate increases; contrast, we typically see lower subscriber additions in the first • higher sports and rights costs, including increases as we move quarter of the year. further along in our NHL Agreement; • general cord shaving and cord cutting by television subscribers The launch of popular new wireless device models can also affect regardless of service provider; and the level of subscriber activity. Highly anticipated device launches • continual investment in primetime and specialty programming typically occur in the fall season of each year. Wireless roaming relating to both our broadcast networks (such as Citytv) and our revenue is dependent on customer travel volumes and timing, specialty channels (such as FX (Canada)). which is affected by the foreign exchange rate of the Canadian dollar and general economic conditions. Seasonal fluctuations relate to: • periods of increased consumer activity and their impact on Cable advertising and related retail cycles, which tend to be most active Trends affecting Cable service revenue primarily reflect: in the fourth quarter due to holiday spending and slower in the • higher Internet subscription fees as customers increasingly first quarter; upgrade to higher-tier speed plans, including those with • the MLB season, where: unlimited usage; • games played are concentrated in the spring, summer, and • customers adopting Ignite TV; fall months (generally the second and third quarters of the • general service pricing increases; and year); • the shift of business customers from lower-margin, off-net legacy • revenue related to game day ticket sales, merchandise sales, long distance and data services to higher-margin, next- and advertising are concentrated in the spring, summer, and generation services and data centre businesses; partially offset fall months (generally the second and third quarters of the by year), with postseason games commanding a premium in • competitive losses of legacy Television and Phone subscribers; advertising revenue and additional revenue from game day • Television subscribers downgrading their service plans; and ticket sales and merchandise sales, if and when the Toronto • lower additional usage of our products and services as service Blue Jays play in the postseason; and plans are increasingly bundling more features, such as unlimited • programming and production costs and player payroll are usage or a greater number of TV channels. expensed based on the number of games aired or played, as applicable; and Trends affecting Cable adjusted EBITDA primarily reflect: • the NHL season, where: • higher Internet operating margins, as a result of the shift from • regular season games are concentrated in the fall and winter conventional Television to Internet services; and months (generally the first and fourth quarters of the year) and • the shift to a self-install model for most of our Cable products; playoff games are concentrated in the spring months partially offset by (generally the second quarter of the year). We expect a • higher premium supplier fees in Television as a result of correlation between the quality of revenue and earnings and bundling more value-added offerings into our Cable products. the extent of Canadian teams’ presence during the playoffs; Cable’s operating results are affected by modest seasonal • programming and production costs are expensed based on fluctuations in subscriber additions and disconnections, typically the timing of when the rights are aired or are expected to be caused by: consumed; and • university and college students who live in residence moving out • advertising revenue and programming expenses are early in the second quarter and canceling their service as well as concentrated in the fall, winter, and spring months, with playoff students moving in late in the third quarter and signing up for games commanding a premium in advertising revenue. cable service; • individuals temporarily suspending service for extended Other expenses vacations or seasonal relocations; and Depreciation and amortization has been trending upward over the • the focused marketing we generally conduct in our fourth past several years as a result of an increase in our general quarter. depreciable asset base, related significantly to the ongoing expansions of our wireless and cable networks. This is a direct result Cable operating results are also influenced by trends in cord of increasing capital expenditures in previous years as we worked shaving and cord cutting, which has resulted in fewer subscribers to upgrade our wireless network and roll out Ignite TV, Ignite watching traditional cable television, as well as a lower number of Gigabit Internet, and 4K TV to our Cable footprint. We expect Television subscribers. In addition, trends in the use of wireless future depreciation and amortization to align with ongoing capital products and Internet or as substitutes for traditional expenditures and additions to right-of-use assets. home phone products have resulted in fewer Phone subscribers.

54 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 55 | have reclassified certain ivative instrument liabilities have ROGERS COMMUNICATIONS INC. ve been separately disclosed and lues of certain debt derivatives as a result act liabilities related to device financing values of our equity derivatives as a result of ncing receivables and business seasonality. rrent of our $1,450 million senior notes due our $1,450 million senior notes. 2020 ANNUAL REPORT ccounts receivable”, “financing receivables” ha device financing agreements. a result of the appreciation of the Cdn$ relative to the US$. contracts. issuance of US$750 million of seniorthe notes changes due as March a 2022, result partially of offsetthe the by reclassification appreciation to of current the of Cdn$ relative to the US$ and of changes in the Canadian andappreciation US of interest the rate Cdn$ environment relatives and to the net the pension US$. liability. Also reflects an increase in our March 2021. and tax bases for certain assets and liabilities. thedecreaseinthesharepriceofClassBNon-VotingShares. financing plans. of changes in the Canadian andappreciation US of interest the rate Cdn$ environments relative and to the the US$. hich we manage our business, effective this quarter and retroactively, we “contract assets” have been reclassified to “other long-term assets”. Der – 1,450 – Reflects the reclassification to cu 36 6 17 n/m 48 296 n/m Reflects the excess of current income tax expense over tax installments paid. 76 672 n/m Reflects an increase as a result of strong adoption of device and accessory 224 112 50 Primarily reflects an increase in contr 704 445 63 Primarily reflects changes in market va 191 52 27 Primarily reflects changes in market values of certain expenditure derivatives as 756 (410) (54) Reflects a decrease in contract assets as we transition our consumer offerings to 460 19452101 64 4 (40) n/m 14 (40) n/m Primarily reflects changes in market 230 48 21 Reflects liabilities related to new leases entered. 494 1,990 n/m See “Managing our Liquidity and Financial Resources”. 2019 $ Chg % Chg Explanation of significant changes 3,923 50 1 n/m 3,437 (241) (7) Primarily reflects a decrease in temporary differences between the accounting 2,238 (1,017)3,033 (45) (319) Reflects a decrease in borrowings (11) under our US CP program. Reflects reduced spending due to the effects of COVID-19. 1,495 62 4 Reflects liabilities related to new leases entered. 2,376 480 20 Primarily reflects the increase in fina 1,234 (701) (57) Reflects our transition of consumer offerings to device financing agreements. 5,964 622 10 9,416 157 2 Reflects changes in retained earnings and equity reserves. 5,117 1,812 35 8,9052,830 211,478 (294) (100) (10) – Primarily reflects fair value (7) decreases n/m for certain publicly traded Primarily investments. reflects changes in market values of certain debt derivatives as a result 15,967 784 5 Reflects the issuance of $1.5 billion of senior notes due March 2027, the 37,019 1,835 5 27,603 1,678 6 37,019 1,835 5 13,934 84 1 n/m 61 42 336 344 243 748 346 479 533 516 278 2020 1,149 3,973 1,450 3,196 1,221 2,714 1,557 2,856 6,586 9,573 6,929 8,926 2,536 1,378 2,484 16,751 38,854 29,281 38,854 14,018 een reclassified from “other current assets” to “a 1 1 1 1 1 1 Contract liabilities Current portion of long-term debt Short-term borrowings Accounts payable and accrued liabilities Income tax payable Other current liabilities Inventories Current portion of contract assets Other current assets Current portion of derivative instruments Current portion of lease liabilities Cash and cash equivalents Accounts receivable Current liabilities: Current assets: balances. Current financing receivables have b As a result of the growth of our financing receivable program and the ways in w reclassified from “other long-term assets”,been and reclassified the to “other long-term current portion liabilities” of and “other long-term liabilities”, as applicable. Long-term debt 1 Goodwill Total assets Deferred tax liabilities Liabilities and shareholders’ equity Lease liabilities Other long-term liabilities As at December 31 (In millions of dollars) OVERVIEW OF FINANCIAL POSITION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Total current liabilities Provisions Total liabilities Shareholders’ equity Total liabilities and shareholders’ equity Total current assets Property, plant and equipment Other long-term assets Intangible assets Investments Derivative instruments Assets Financing receivables MANAGEMENT’S DISCUSSION AND ANALYSIS

Managing Our Liquidity and Financial Resources SOURCES AND USES OF CASH OPERATING, INVESTING, AND FINANCING ACTIVITIES Years ended December 31 (In millions of dollars) 2020 2019 Cash provided by operating activities before changes in net operating assets and liabilities, income taxes paid, and interest paid 5,880 6,167 Change in net operating assets and liabilities (333) (462) Income taxes paid (418) (400) Interest paid (808) (779) Cash provided by operating activities 4,321 4,526 Investing activities: Capital expenditures (2,312) (2,807) Additions to program rights (57) (60) Changes in non-cash working capital related to capital expenditures and intangible assets (37) (35) Acquisitions and other strategic transactions, net of cash acquired (103) (1,731) Other (49) 21 Cash used in investing activities (2,558) (4,612) Financing activities: Net (repayment of) proceeds received on short-term borrowings (1,146) 30 Net issuance of long-term debt 2,540 2,184 Net proceeds (payments) on settlement of debt derivatives and forward contracts 80 (121) Transaction costs incurred (23) (61) Principal payments of lease liabilities (213) (167) Repurchase of Class B Non-Voting Shares – (655) Dividends paid (1,011) (1,016) Other – (19) Cash provided by financing activities 227 175 Change in cash and cash equivalents 1,990 89 Cash and cash equivalents, beginning of year 494 405 Cash and cash equivalents, end of year 2,484 494

OPERATING ACTIVITIES FINANCING ACTIVITIES The decrease in cash provided by operating activities this year was This year, we received net amounts of $1,451 million (2019 – a result of lower adjusted EBITDA, partially offset by lower received net amounts of $2,032 million) on our short-term investment in net operating assets and liabilities. borrowings, long-term debt, and related derivatives, net of transaction costs. See “Financial Risk Management” for more INVESTING ACTIVITIES informationonthecashflowsrelatingtoourderivativeinstruments. Capital expenditures We spent $2,312 million this year on property, plant and Short-term borrowings equipment before related changes in non-cash working capital Our short-term borrowings consist of amounts outstanding under items, which was 18% lower than 2019. See “Capital Expenditures” our receivables securitization program and under our US CP for more information. program. Below is a summary of our short-term borrowings as at December 31, 2020 and 2019.

Years ended December 31 (In millions of dollars) 2020 2019 Receivables securitization program 650 650 US commercial paper program 571 1,588 Total short-term borrowings 1,221 2,238

56 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 57 | – (3) 30 12 33 (61) (458) 2019 2,184 2,184 1,000 3,984 2,184 (1,800) (Cdn$) (Cdn$) 14,290 15,967 Notional Notional 14 rate rate (23) (297) 2020 2,540 15,967 18,201 Exchange Exchange ––– ––– ROGERS COMMUNICATIONS INC. Years ended December 31 420 1.336 561 (420) 1.343 (564) (US$) (US$) 2,250 1.326 2,984 12,897 1.328 17,127 (12,876) 1.328 (17,094) Notional Notional – – 21 2,519 2,540 1,500 2,519 (1,146) (1,146) (Cdn$) (Cdn$) 2020 ANNUAL REPORT Notional Notional rate rate all of our senior notes and debentures. Exchange Exchange ––– ––– letter of credit facilities and the senior notes and debentures we 970 1.428 1,385 750 1.359 1,019 (970) 1.406 (1,364) (US$) (US$) 3,316 1.329 4,406 securitization program. The newtrade program enables accounts us toprogram, with sell receivable the certain proceeds recorded and infloating current rate liabilities loans as financing of revolving up toin receivables $1.2 the billion, an previous into increase from program.continue $1.05 the Similar billion to to service therecorded the previous receivables as program, we andapplicable, on accounts will our they Consolidated Statement will receivable of Financial continue Position. orThe to terms be of financing our receivablesuntil securitization receivables, program are its committed as $650 million expiry was available on December ona 23, 2020 minimum and December increased of to interest 22, in $800 these million receivables 2023. ranksof on our ahead receivables of Initial January has our no further interest. 25, claim The funding on 2021. buyer any of The our of other assets. buyer’s (4,098) 1.355 (5,552) Year ended December 31, 2020 Year ended December 31, 2019 Year ended December 31, 2020 Year ended December 31, 2019 Notional Notional o our long-term debt for the years ended December 31, 2020 and 2019. rt-term borrowings for the years ended December 31, 2020 and 2019. , guaranteed by RCCI, and ranks equally with tion costs, beginning of year Net issuance of senior notes Net issuance of long-term debt Net repayment of credit facilities Repayment of credit facilities Net (repayment of) proceeds received from short-term borrowings Credit facility borrowings (US$) Receivables securitization program On Decembersecuritization 23, program to 2020, replace our we previous accounts entered receivable into a new receivables We have a US CPaggregate program that allows principal us toborrowed issue amount up under to this of a program maximum 1 with US$1.5 to terms 397 to billion. days, maturity subjectmade to ranging Funds ongoing from under market the conditions. can Any USobligations issuances CP be of program RCI will be underguaranteed issued the by at RCCI, US a and CP discount.our rank program The equally senior are in unsecured notes rightmore and of and information. payment debentures. with all See “FinancialConcurrent Condition” with for derivatives our to US hedgeprincipal the CP and foreign interest issuances, components currencyCP of program. risk we the See “Financial associated borrowings Risk entered under Management” with for our more the into US information. debt Credit facility repayments (US$) Net borrowings under credit facilities Proceeds received from US commercialRepayment paper of US commercial paper Long-term debt Our long-term debt consists of amountshave outstanding issued. under The tables our below bank summarize and the activity relating t Senior note issuances (Cdn$) Senior note issuances (US$) Total senior note issuances Senior note repayments (Cdn$) Long-term debt net of transac (In millions of dollars) Net issuance of long-term debt Gain on foreign exchange Deferred transaction costs incurred Amortization of deferred transaction costs Long-term debt net of transaction costs, end of year The revolving credit facility is unsecured The table below summarizes the activity relating to our sho (In millions of dollars, except exchange rates) (In millions of dollars, except exchange rates) Net (repayment of) proceeds received from US commercialProceeds paper received from credit facilities MANAGEMENT’S DISCUSSION AND ANALYSIS

Issuance of senior notes and related debt derivatives Below is a summary of the senior notes that we issued in 2019 and 2020. In 2020, the proceeds were used to repay outstanding US CP and bank credit facility borrowings, and for general corporate purposes. In 2019, the proceeds were used to purchase 600 MHz spectrum licenses, to repay senior notes maturing in 2019 and 2020, and for general corporate purposes.

(In millions of dollars, except interest rates and discounts) Discount/ Total gross Transaction costs Principal premium at proceeds 1 and discounts 2 Date issued amount Due date Interest rate issuance (Cdn$) (Cdn$) 2020 issuances March 31, 2020 1,500 2027 3.650% 99.511% 1,500 16 June 22, 2020 US 750 2022 USD LIBOR + 0.60% 100% 1,019 5

2019 issuances April 30, 2019 US 1,250 2049 4.350% 99.667% 1,676 20 November 12, 2019 US 1,000 2049 3.700% 98.926% 1,308 25

1 Gross proceeds before transaction costs, discounts, and premiums. 2 Transaction costs, discounts, and premiums are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the effective interest method.

The US dollar-denominated senior notes were issued pursuant to paid $1,011 million in cash dividends. See “Dividends and Share public offerings in the US. The Canadian dollar-denominated Information” for more information. senior notes were issued pursuant to a public offering in Canada. Shelf prospectuses Concurrent with the US dollar-denominated issuances, we entered We have two shelf prospectuses that qualify the offering of debt into debt derivatives to convert all interest and principal payment securities from time to time. One shelf prospectus qualifies the obligations on the senior notes to Canadian dollars at a fixed public offering of up to $4 billion of our debt securities in each of interest rate. See “Financial Risk Management” for more the provinces of Canada (Canadian Shelf) and the other shelf information. prospectus (together with a corresponding registration statement The issued notes are unsecured and guaranteed by RCCI, ranking filed with the US Securities and Exchange Commission) qualifies equally with all of our other unsecured senior notes and the public offering of up to US$4 billion of our debt securities in debentures, bank credit facilities, and letter of credit facilities. the United States and Ontario (US Shelf). Both the Canadian Shelf and the US Shelf were set to expire in May 2020 and were renewed Repayment of senior notes and related derivative settlements such that they now expire in May 2022. We have issued nil under We did not repay any senior notes or settle any related debt the Canadian Shelf and an aggregate of US$750 million of derivatives during 2020. Below is a summary of the repayment of securities under US Shelf. our senior notes during 2019. There were no debt derivatives associated with the repayments. FREE CASH FLOW (In millions of dollars) Years ended December 31 Notional (In millions of dollars) 2020 2019 % Chg amount Adjusted EBITDA 1 5,857 6,212 (6) Maturity date (Cdn$) Deduct (add): 2 2019 repayments Capital expenditures 2,312 2,807 (18) Interest on borrowings, net of March 2019 400 capitalized interest 761 727 5 November 2019 500 Cash income taxes 3 418 400 5 September 2020, repaid November 2019 900 Free cash flow 1 2,366 2,278 4 Total for 2019 1,800 1 Adjusted EBITDA and free cash flow are non-GAAP measures and should not be considered as substitutes or alternatives for GAAP measures. These are not defined terms under IFRS, and do not have standard meanings, so may not be a reliable way Repurchase of Class B Non-Voting Shares to compare us to other companies. See “Non-GAAP Measures and Related We did not repurchase any RCI Class B Non-Voting common Performance Measures” for information about these measures, including how we shares (Class B Non-Voting Shares) in 2020. Last year, we calculate them. repurchased for cancellation 9,887,357 Class B Non-Voting Shares 2 Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences or additions to right-of-use under our NCIB programs for a total purchase price of assets. $655 million. See “Financial Condition” for more information. 3 Cash income taxes are net of refunds received. The 4% increase in free cash flow this year was primarily a result of Dividends lower capital expenditures, partially offset by lower adjusted In 2020, we declared and paid dividends on each of RCI’s EBITDA, higher cash income taxes, and higher interest on outstanding Class A Shares and Class B Non-Voting Shares. We borrowings.

58 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 59 | – 550 2,619 2,619 2,484 5,653 2 Net available Net available BBB+ with a stable outlook BBB+ with a stable outlook 1 1 ROGERS COMMUNICATIONS INC. Baa1 with a stable outlook Baa1 with a stable outlook 2020 ANNUAL REPORT BBB+ with a stable outlook BBB+ with a stable outlook A-2 P-2 N/A 1 1 1 issuer default rating debt paper Unchanged for the year. We have not sought a rating from Fitch for our short-term obligations. acilities, letters of credit facilities, and short-term borrowings. Issuance S&P Moody’s Fitch Corporate credit Senior unsecured US commercial 1 2 Ratings for long-termcomposite rates debt range from AAA instrumentsrepresenting (S&P and across the Fitch) or the highest Aaa (Moody’s), Substantial quality universe Risk of (Fitch), of securities andsecurities C rated, rated. (Moody’s) to forconsidered D Investment-grade the to (S&P), lowest range credit from qualityto BBB- of AAA ratings (S&P (S&P and and are Fitch) Fitch) or or Aaa (Moody’s). generally Baa3 (Moody’s) Ratings for short-termcomposite debt rates instruments ranges(Moody’s), across representing the from the highest quality A-1+(S&P universe of and securities (S&P), of rated, Fitch), to and C F1+securities not prime (Fitch), rated. (Moody’s) for orconsidered the Investment-grade lowest to P-1 quality credit be of (Moody’s) ratings ratings quality of or higher. at are least generally A-3Credit (S&P), ratings F3 are not (Fitch),securities, recommendations or to nor P-3 purchase, are hold,suitability. or they There sell is a no assurance comment thata a on rating given will market period, remain in orentirely price effect for that by or a a investor rating ratingThe will agency ratings if not it be onMoody’s are believes revised investment-grade our ratings. circumstances or warrant withdrawn senior it. debt provided by S&P, Fitch, and Outstanding letters of credit 101 – 101 – RevolvingRevolvingOutstanding letters of credit 3,200 – 101 8 3,200 – 573 – 101 8 – 1,593 – 1,599 The US CP program amounts are gross of the discounts on issuance. CREDIT RATINGS Credit ratings provide an independentan measure issue of of credit securities quality and of and can long-term affect our financing ability andagencies to the obtain lower short-term terms ofdowngrade the the below financing. credit investment-grade, If itcost ratings rating of could financing adversely on and access affect to our our liquidity and capital. debt,We have particularly engagedMoody’s a each Investors of Service S&Prate (Moody’s), certain and Global of Fitch Ratings ourcredit Ratings Services public ratings (Fitch) debt (S&P), on to issues. RCI’s(long-term) Below and outstanding US is CP senior a (short-term) as summary notes at of December and 31, the debentures 2020. The provisions ofdescribed our in $3.2restrictions billion on “Sources our revolving operations and andwhich bank activities, are the leverage-related credit Uses maintenance most tests. facility significant2020 As and of of at 2019, we December were 31, Cash”financial in compliance ratios, with impose all and financialagreements. covenants, all certain Throughout of 2020, therestrictions these terms of any covenants and material consequence did conditions on not our of operations. impose our debt COVENANTS Weighted average cost of borrowings Our borrowings hadDecember 31, a 2020 (2019 weighted –to average maturity 4.30%) of and 12.8 cost a years (2019 weighted of – average 14.1 term years). 4.09% as at In addition to$1,535 the noted million sourcescompanies as of at of December available 31, 2020 (2019 liquidity, marketable – $1,831 we million). securities held in publicly traded 1 As at December 31, 2020 (In millions of dollars) Total available Drawn Letters of credit US CP program FINANCIAL CONDITION LIQUIDITY Below is a summary of our total available liquidity under our bank credit f Total bank credit facilitiesCash and cash equivalents 3,301 2,484 – – 109 – 573 Receivables securitizationTotalAs at December 31, 2019 (In millions of dollars) 1,200 650 Total available Drawn 6,985 Letters of credit – US CP program 650 – 109 573 Bank credit facilities: Bank credit facilities: Total bank credit facilitiesReceivables securitizationCash and cash equivalentsTotal 3,301 1,050 494 650 – – 4,845 109 – – 650 1,593 – 1,599 109 – 400 1,593 494 2,493 MANAGEMENT’S DISCUSSION AND ANALYSIS

ADJUSTED NET DEBT AND DEBT LEVERAGE RATIO In addition, as at December 31, 2020, we held $1,535 million of We use adjusted net debt and debt leverage ratio to conduct marketable securities in publicly traded companies valuation-related analysis and make capital structure-related (2019 – $1,831 million). decisions. Adjusted net debt includes long-term debt, net debt Our adjusted net debt decreased by $341 million from derivative assets or liabilities, short-term borrowings, and cash and December 31, 2019 as a result of: cash equivalents. • a decrease in short-term borrowings from repayments of US CP; and As at As at • an increase in our net cash position; partially offset by December 31 December 31 (In millions of dollars, except • an increase in long-term debt from senior note issuances. ratios) 2020 2019 See “Overview of Financial Position” for more information. Long-term debt 1 18,373 16,130 Net debt derivative assets valued PENSION OBLIGATIONS without any adjustment for Our defined benefit pension plans had a net funding deficit of credit risk 2 (1,101) (1,414) approximately $574 million as at December 31, 2020 (2019 – $451 Short-term borrowings 1,221 2,238 million). During 2020, our net funding deficit increased by Lease liabilities 1,835 1,725 $123 million primarily as a result of a net increase in the plan Cash and cash equivalents (2,484) (494) obligations resulting from lower discount rates.

3 Adjusted net debt 17,844 18,185 We made a total of $150 million (2019 – $179 million) of Divided by: trailing 12-month contributions to our funded defined benefit pension plans this year. 3 adjusted EBITDA 5,857 6,212 We expect our total estimated funding requirements for our funded Debt leverage ratio 3 3.0 2.9 defined benefit pension plans to be $169 million in 2021 and to be adjusted annually thereafter based on various market factors, such as 1 Includes current and long-term portion of long-term debt before deferred interest rates, expected returns, and staffing assumptions. transaction costs and discounts. See “Reconciliation of adjusted net debt” in “Non-GAAP Measures and Related Performance Measures” for the calculation of this Changes in factors such as the discount rate, participation rates, amount. increases in compensation, and the expected return on plan assets 2 For purposes of calculating adjusted net debt and debt leverage ratio, we believe including debt derivatives valued without adjustment for credit risk is commonly used can affect the accrued benefit obligation, pension expense, and to evaluate debt leverage and for market valuation and transactional purposes. the deficiency of plan assets over accrued obligations in the future. 3 Adjusted net debt and adjusted EBITDA are non-GAAP measures and should not be See “Accounting Policies” for more information. considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate them and the debt leverage ratio in which they are used.

FINANCIAL RISK MANAGEMENT We use derivative instruments from time to time to manage risks related to our business activities, summarized as follows: Derivative The risk they manage Types of derivative instruments Debt derivatives Impact of fluctuations in foreign exchange rates on Cross-currency interest rate exchange agreements principal and interest payments for US dollar- Forward foreign exchange agreements denominated senior notes and debentures, credit facility borrowings, commercial paper borrowings, and certain lease liabilities Expenditure derivatives Impact of fluctuations in foreign exchange rates on Forward foreign exchange agreements and forecast US dollar-denominated expenditures foreign exchange option agreements Equity derivatives Impact of fluctuations in share price on stock-based Total return swap agreements compensation expense

We also manage our exposure to fluctuating interest rates and we dollar-denominated senior notes and debentures, lease liabilities, have fixed the interest rate on 93.6% (2019 – 87.2%) of our debt, credit facility borrowings, and US CP borrowings. We designate the including short-term borrowings, as at December 31, 2020. debt derivatives related to our senior notes, debentures and lease liabilities as hedges for accounting purposes against the foreign DEBT DERIVATIVES exchange risk associated with specific debt instruments. Debt We use cross-currency interest rate agreements and forward derivatives related to our credit facility and US CP borrowings have foreign exchange agreements (debt derivatives) to manage risks not been designated as hedges for accounting purposes. from fluctuations in foreign exchange rates associated with our US

60 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 61 | 3 (13) 2019 87.2% 4.30% (Cdn$) 1.1932 100.0% Notional US dollar- 14.1 years US$ 8,300 US$ 8,300 $$ 17,496 15,254 rate Equivalent (Cdn$) As at December 31 2020 Exchange 93.6% 4.09% 1 1.2069 100.0% 12.8 years US$ 9,050 US$ 9,050 $$ 18,994 17,773 curitization programs. 420 1.336 561 420 1.343 564 (US$) ROGERS COMMUNICATIONS INC. 12,89712,847 1.328 1.329 17,127 17,069 Notional interest rate (21) Fixedhedged(Cdn$) 101 (Cdn$) Notional 2020 ANNUAL REPORT rate Exchange US$ Hedging effect 970 1.428 1,385 970 1.406 1,364 (US$) 3,3164,091 1.329 1.330 4,406 5,441 Year ended December 31, 2020 Year ended December 31, 2019 Notional y date Coupon rate d senior notes and debentures, all of which were hedged using vatives to offset the foreign exchange and interest rate risk on our ted to our credit facility borrowings and commercial paper program facility and US CP borrowings as a result of a favourable interest rate , as at December 31, 2020 and December 31, 2019, RCI accounted for 100% of its debt llar-denominated debt. As a result, as at December 31, 2020 and 2019, 100% of our s, and short-term borrowings associated with our US CP and receivables se amount (US$) Maturit Financial instruments Principal/Notional edged exchange rate and the hedged interest rate. ity and commercial paper borrowings. 1 3 nge rates, percentages, and years) st rate on borrowings 2 Percent hedged Debt derivatives entered Hedged with debt derivatives Hedged exchange rate Debt derivatives settled Net cash (paid) received Total borrowings at fixed rates Percent of borrowings at fixed rates Total borrowings Weighted average intere Weighted average term to maturity June 22, 2020April 30, 2019November 12, 2019 750 1,000 1,250 2022 USD LIBOR + 0.60% 2049 2049 0.955% 3.700% 4.350% 1,019 3.996% 4.173% 1,308 1,676 Debt derivatives entered Debt derivatives settled Net cash received (paid) derivatives related to senior notes as hedges against designated US do denominated senior notes and debentures are hedged for accounting and economic purposes. Pursuant to the requirements for hedge accounting under IFRS 9, Borrowings include long-term debt, including the impact of debt derivative US dollar-denominated long-term debt reflects the h Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate. Amount of borrowings at fixed rates (In millions of dollars, except exchange rates) Credit facilities (In millions of dollars, except interest rates) Effective date Debt derivatives related to credit facilitiesDuring and the US year, CP we enteredspread into obtained debt from derivatives borrowing related funds to inUS our dollar-denominated US credit credit dollars. facil We used these deri during 2020 and 2019. 2 3 1 Below is a summary of the debt derivatives we entered and settled rela 1 Settlement of debt derivatives related toWe senior did notes not settle any debt derivatives related toAs senior at notes December during 31, 2020. 2020, we had US$9.1 billion of US dollar-denominate debt derivatives. Issuance of debt derivatives related to senior notes US dollar-denominated long-term debt (In millions of dollars, except excha 2020 issuances 2019 issuances Commercial paper program MANAGEMENT’S DISCUSSION AND ANALYSIS

Lease liabilities Below is a summary of the debt derivatives we entered and settled related to our outstanding lease liabilities during 2020 and 2019. Year ended December 31, 2020 Year ended December 31, 2019 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$)

Debt derivatives entered 115 1.374 158 70 1.314 92 Debt derivatives settled 43 1.372 59 –n/a–

As at December 31, 2020, we had US$142 million notional amount of debt derivatives outstanding related to our outstanding lease liabilities (2019 – US$70 million) with terms to maturity ranging from January 2021 to December 2023 (2019 – January 2020 to December 2022), at an average rate of $1.352/US$ (2019 – $1.318/US$). See “Mark-to-market value” for more information about our debt derivatives.

EXPENDITURE DERIVATIVES We use foreign currency derivative contracts (expenditure derivatives) to hedge the foreign exchange risk on the notional amount of certain forecast US dollar-denominated expenditures. Below is a summary of the expenditure derivatives we entered and settled to manage foreign exchange risk related to certain forecast expenditures. Year ended December 31, 2020 Year ended December 31, 2019 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$)

Expenditure derivatives entered 1,560 1.343 2,095 810 1.321 1,070 Expenditure derivatives settled 940 1.299 1,221 900 1.249 1,124

The expenditure derivatives noted above have been designated as or offset thereto, which serves to offset a substantial portion of the hedges for accounting purposes. impact of changes in the market price of Class B Non-Voting Shares on the accrued value of the stock-based compensation liability for As at December 31, 2020, we had US$1,590 million of expenditure our stock-based compensation programs. derivatives outstanding (2019 – US$990 million), at an average rate of $1.342/US$ (2019 – $1.300/US$), with terms to maturity ranging This year, we made net payments of $1 million to reset the from January 2021 to December 2022 (2019 – January 2020 to weighted average price to $54.16 and reset the expiry dates to December 2021). As at December 31, 2020, our outstanding April 2021 (from April 2020) on 0.5 million equity derivatives. expenditure derivatives maturing in 2021 are hedged at an average During the year ended December 31, 2020, we entered into exchange rate of $1.36/US$. 0.3 million equity derivatives (2019 – nil) with a weighted average price of $56.08 (2019 – nil). During the year ended December 31, EQUITY DERIVATIVES 2019, we settled 0.7 million equity derivatives at a weighted We use stock-based compensation derivatives (equity derivatives) to average price of $71.66 for net proceeds of $16 million. hedge the market price appreciation risk of the Class B Non-Voting Shares granted under our stock-based compensation programs. As Additionally, we executed extension agreements for the remainder at December 31, 2020, we had equity derivatives for 4.6 million of our equity derivative contracts under substantially the same (2019 – 4.3 million) Class B Non-Voting Shares with a weighted commitment terms and conditions with revised expiry dates to average price of $51.82 (2019 – $51.76). These derivatives have not March 2021 and April 2021. been designated as hedges for accounting purposes. We record changes in their fair value as a stock-based compensation expense,

62 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 63 | (Cdn$) Fair value Dividends paid (Cdn$) amount Notional (in millions of dollars) rate As at December 31, 2019 ROGERS COMMUNICATIONS INC. Exchange s and Class B Non-Voting Shares. (US$) amount Notional 2020 ANNUAL REPORT Dividend per share (dollars) As assetsAs liabilitiesAs liabilities 5,800 2,570 1.1357 1.3263 6,587 3,409 1,223 1,508 As assets (96) 1.3227As liabilities 1,618 (29) 270 720As assets 1.2391 1.3228 335 952 16 (15) – – 223 55 for as cash flow hedges: not accounted for as hedges: derivative assetaccounted for as cash flow hedges: expenditure derivative assetaccounted for as hedges: 1,383 1 Declaration dateApril 20, 2021 RecordJune date 2, 2021October 20, 2021 June 10, 2021 December 10, 2021 Payment September date 9, 2021 January 4, 2022 October 1, 2021 July 2, 2021 We currently expect that thefor remaining the record 2021 and declaration paymentthe of dates declaration dividends by the will Board be each as quarter at follows, its subject sole discretion: to (In millions of dollars, except exchange rates) Debt derivatives accounted Short-term debt derivatives Net mark-to-market debt Expenditure derivatives Net mark-to-market Equity derivatives not Net mark-to-market asset 1,439 nRCI’soutstandingClassAShare 34 (12) Fair (307) (109) (109) value 1,011 1,405 1,086 (Cdn$) (Cdn$) amount Notional rate As at December 31, 2020 Exchange (US$) amount Notional As assetsAs liabilities 4,550 1.0795 4,912 449 1.2995 583 As assets – – 238 As liabilities 4,642 1.3359 6,201 As liabilities 1,590 1.3421 2,134 as cash flow hedges: accounted for as hedges: derivative asset expenditure derivative liability for as hedges: accounted for as cash flow hedges: On January 27, 2021,$0.50 the per Board Class declared Abe Voting a paid Share quarterly on and dividend April Class of 2021. 1, B 2021, Non-Voting to Share, shareholders to of record on March 10, January 21, 2020April 21, 2020July 21, 2020October 21, 2020January 24, March 2019 10, 2020April 18, 2019June 5, June 2019 10, 2020 December 10,October 2020 23, 2019 September 9, 2020 March 12, 2019 June 10, 2019 April 1, December 2020 11, 2019 January September 4, 9, 2021 2019 October 1, 2020 July 2, 2020 April 1, 2019 January 2, 2020 October 1, 2019 July 2, 2019 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 252 252 253 253 257 253 256 256 Net mark-to-market asset Debt derivatives accounted for Short-term debt derivatives not Net mark-to-market debt Net mark-to-market Equity derivatives not accounted Expenditure derivatives Declaration date Record date Payment date DIVIDENDS Below is a summary of the dividends that have been declared and paid o DIVIDENDS AND SHARE INFORMATION (In millions of dollars, except exchange rates) MARK-TO-MARKET VALUE We record ourmark-to-market valuation, calculated derivatives in accordance using with IFRS. an estimated credit-adjusted, MANAGEMENT’S DISCUSSION AND ANALYSIS

NORMAL COURSE ISSUER BID OUTSTANDING COMMON SHARES In April 2020, the TSX accepted a notice of our intention to As at December 31 commence a normal course issuer bid (NCIB) program (2020 NCIB) that allows us to purchase, between April 24, 2020 and 2020 2019 April 23, 2021, the lesser of 34.9 million Class B Non-Voting Shares Common shares outstanding 1 and that number of Class B Non-Voting Shares that can be Class A Voting 111,154,811 111,154,811 purchased under the 2020 NCIB for an aggregate purchase price Class B Non-Voting 393,770,507 393,770,507 of $500 million. Rogers security holders may obtain a copy of this Total common shares 504,925,318 504,925,318 notice, without charge, by contacting us. We have not purchased any Class B Non-Voting Shares under the 2020 NCIB. Options to purchase Class B Non-Voting Shares In April 2019, the TSX accepted a notice of our intention to Outstanding options 4,726,634 3,154,795 commence a NCIB program (2019 NCIB) that allowed us to Outstanding options purchase, between April 24, 2019 and April 23, 2020, the lesser of exercisable 1,470,383 993,645 35.7 million Class B Non-Voting Shares and that number of Class B Non-Voting Shares that could be purchased under the 2019 NCIB 1 Holders of our Class B Non-Voting Shares are entitled to receive notice of and to for an aggregate purchase price of $500 million. RCI security attend shareholder meetings; however, they are not entitled to vote at these meetings except as required by law or stipulated by stock exchanges. If an offer is holders may obtain a copy of this notice, without charge, by made to purchase outstanding Class A Shares, there is no requirement under contacting us. applicable law or our constating documents that an offer be made for the outstanding Class B Non-Voting Shares, and there is no other protection available to In 2019, we purchased 9.9 million shares under our NCIB programs shareholders under our constating documents. If an offer is made to purchase both for $655 million. Pursuant to the 2019 NCIB, we repurchased for classes of shares, the offer for the Class A Shares may be made on different terms cancellation 7.7 million Class B Non-Voting Shares for $500 million, than the offer to the holders of Class B Non-Voting Shares. thereby purchasing the maximum allowed under the 2019 NCIB. In As at February 28, 2021, 111,154,811 Class A Shares, 393,770,507 2019, pursuant to the NCIB program we commenced in 2018, we Class B Non-Voting Shares, and 4,705,342 options to purchase repurchased for cancellation 2.2 million Class B Non-Voting Shares Class B Non-Voting Shares were outstanding. for $155 million. We use the weighted average number of shares outstanding to calculate earnings per share and adjusted earnings per share.

Years ended December 31 (Number of shares in millions) 2020 2019 Basic weighted average number of shares outstanding 505 512 Diluted weighted average number of shares outstanding 506 513

64 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 65 | ntract inception. After 5Years Total ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT for periods in excess of one year at co 5 (256) 46 (383) (588) 8373 27 87 – – – – 110 160 295626 178 1,198 70 1,078 48 316 591 3,218 1,450 3,274 1,490 12,159 18,373 1 Year 1-3 Years 4-5 Years Less than rrangements as at December 31, 2020. See notes 3, 21, and 27 to our 2020 orts broadcasting programs and films 2 2 4 1 3 5 Contractual obligations under service, product, andAgreements wireless into device which contracts we to have which entered we to have acquire committed. broadcasting rights for sp Principal obligations of long-term debt (includingNet current (receipts) portion) disbursements due due at at maturity. maturity. USToronto dollar Blue amounts Jays have players’ been salary translated contracts into into Canadian which dollars we have at the entered Bank and of are Canada contractually year-end obligated to rate. pay. Net interest paymentsLease liabilitiesDebt derivative instruments 747 278 1,322 1,167 647 8,331 300 11,567 1,128 2,353 Player contracts Purchase obligations GUARANTEES As a regular partprovide of for our indemnification business,transactions and we enter involving guarantees into to businessagreements, agreements counterparties sales that sale of in services, andassets. and Due purchases business to and the development combination natureto of of make these a indemnifications, reasonable we estimatewe are of could unable the be maximum requirednot potential to made amount pay any significant counterparties. paymentguarantees. Historically, under we these See indemnifications have or Financial note Statements. 27 to our 2020 Audited Consolidated 5 OFF-BALANCE SHEET ARRANGEMENTS 1 2 3 4 Audited Consolidated Financial Statements for more information. (In millions of dollars) COMMITMENTS AND CONTRACTUAL OBLIGATIONS CONTRACTUAL OBLIGATIONS Below is a summary of our obligations under firm contractual a Short-term borrowingsLong-term debt 1,221 – – – 1,221 Property, plant and equipmentIntangible assetsProgram rights Other long-term liabilitiesTotal 186 157 – 30 1 14 – 4,994 – 2 6,648 – 344 4,154 6 – 21,605 22 37,401 30 Expenditure derivative instruments MANAGEMENT’S DISCUSSION AND ANALYSIS

Governance and Risk Management GOVERNANCE AT ROGERS BOARD OVERSIGHT The Board delegates certain responsibilities to its eight standing Rogers is a family-founded, family-controlled company and we take committees to ensure proper oversight and accountability: pride in our proactive and disciplined approach to ensuring that • Audit and Risk Committee - reviews our accounting policies and our governance structure and practices instill confidence in our practices, the integrity of our financial reporting processes and shareholders. procedures, and the financial statements and other relevant disclosure for release to shareholders and the public. It assists Voting control of Rogers Communications Inc. is held by a trust, the the Board in its oversight of our compliance with legal and beneficiaries of which are members of the Rogers family. The trust regulatory requirements for financial reporting, assesses our holds voting control of RCI for the benefit of successive generations accounting and financial control systems, and evaluates the of the Rogers family via the trust’s ownership of 98% of the qualifications, independence, and work of our internal and outstanding Class A Shares of RCI (2019 – 98%). The Rogers family external auditors. It also reviews risk management policies and are substantial stakeholders and owned approximately 29% of our associated processes used to manage major risk exposures. equity as at December 31, 2020 (2019 – 29%) through its • Corporate Governance Committee – assists the Board to ensure ownership of a combined total of 147 million (2019 – 147 million) it has appropriate systems and procedures for carrying out its Class A Shares and Class B Non-Voting Shares. responsibilities. This committee develops governance policies The Board is currently made up of four members of the Rogers and practices, recommends them to the Board for approval, and family and another ten directors who bring a rich mix of experience leads the Board in its periodic review of Board and committee as business leaders in North America. Each of our directors is firmly performance. committed to effective governance, strong oversight, and the • Nominating Committee – identifies prospective candidates to ongoing creation of shareholder value. The Board as a whole is serve on the Board. Nominated directors are either elected by committed to sound corporate governance and continually reviews shareholders at a meeting or appointed by the Board. The its governance practices and benchmarks them against committee also recommends nominees for each Board acknowledged leaders and evolving legislation. The Board believes committee, including each committee chair. that Rogers’ governance system is effective and that there are • Human Resources Committee – assists the Board in monitoring, appropriate structures and procedures in place. reviewing, and approving compensation and benefit policies and practices. It is also responsible for recommending the GOVERNANCE BEST PRACTICES compensation of senior management and monitoring senior We have adopted many best practices for effective governance, executive succession planning. including: • ESG Committee – assists the Board in fulfilling its oversight • separation of the CEO and Chair roles; responsibilities of relevant environmental sustainability, social • an independent lead director; responsibility, and governance policies, strategies, and programs • formal corporate governance policies and charters; and the actions we can take to be a responsible corporate • a code of business conduct and whistleblower hotline; citizen. • director share ownership requirements; • Executive Committee – assists the Board in discharging its • Board and committee in camera discussions; responsibilities between meetings, including acting in such areas • annual reviews of Board and Committee performance; as are specifically designated and authorized at a preceding • Audit and Risk Committee meetings with internal and external Board meeting to consider matters that may arise from time to auditors; time. • an orientation program for new directors; • Finance Committee – reviews our investment strategies, general • regular Board and committee education sessions; debt, and equity structure and reports on them to the Board. • committee authority to retain independent advisors; and • Pension Committee – oversees the administration of our retiree • director material relationship standards. pension plans and reviews the investment performance and provisions of the plans. Prior to John H. Clappison’s resignation from the Board effective January 28, 2021, a majority of our directors were independent, You can find more details about governance at Rogers on our while currently half of our directors are independent. If all of the Investor Relations website (investors.rogers.com), including: proposed directors are elected to the Board at the annual general • a complete statement of our corporate governance practices; shareholder meeting, half of the Board will continue to be • our codes of conduct and ethics; comprised of independent directors. We are actively undertaking a • full Board committee charters; search for an additional independent director to serve on the Board • director biographies; and as soon as practicable. Following the identification and • a summary of the differences between the NYSE corporate appointment of a suitable candidate, we expect to return to a governance rules that apply to US-based companies and our majority independent board. governance practices as a non-US-based issuer listed on the NYSE. We comply with all relevant corporate governance guidelines and standards as a Canadian listed on the TSX and as a foreign private issuer listed on the NYSE in the US.

66 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 67 | Pension Chair Member Nominating ROGERS COMMUNICATIONS INC. sult of our efforts, our employee Human Resources 2020 ANNUAL REPORT representation for persons withand disabilities, LGBTQ2S+. Indigenous peoples, inclusion, We which aim are currentlybased to at on 87% continue our (up teams’ 3culture increasing of feedback. points inclusion Our feelings from and belonging ultimate last withmembers, of year) goal the our support is of I&D to all Council, our createnewly five team a Employee formed Resource Groups, Blackleadership the team, Leadership to Council, makepeople and Rogers and to a deliver better better an as a place business. accountable to work forsupport our ourfocusing employees’ on the safetyphysical whole and and mental employee, healthpriority well-being including throughout at the their work holistically, pandemic safety andbeing has of been in and our the their team. safety To lives.National and increase Our well- our Wellness support, top we Fund, rolledaccess out giving a to new employeescoverage and additional and their benefits virtual families wide healthcare. like information We sessions increased onbeing regularly the experts mental host to pandemic share company- and health ongoing their bring knowledge. in updates We well- continuouslyprocedures share from guided by our Canadamental Public CHRO health Health, and and on well-being. resources Wemental on also our health implemented and dedicated policies,self-care well-being and campaigns safety resilience. to Assurvey drive a scores re adoption on Rogers of well-being10 and and work-life 15 points, support respectively, are to up 83% each. working environments forvisitors, and employees, members of volunteers, theactivity. contractors, public We who have may a be robust,that affected risk-based is by safety focused our management on system identifyinginjuries our greatest safety through risks, preventing performance multi-faceted to ensure continuous programs, improvementresults over show and time. significant Our improvements auditingapproach in will areas continue our of in years focus to and come. this • Safety and Well-being: We are on a dedicated journey to • We are also committed to providing and maintaining safe ESG Executive Finance Corporate Governance Risk Audit and ) increase representation for Board of Directors and its Committees Directors and Board of PC, QC C.M. C.M. CPA, CA C.M. C.M., O.Ont. women and people ofteam colour, members, including at specific goals the for executive Black level and (ii) increase overall capabilities, and careers ofand our people to to make supportimportant Rogers their we live success the our values, best developsupport our place teams, our and to continue employees to Human work Resources on in Officer (CHRO) their Canada. overseeswhile talent It career management, the is journeys. Humanmonitoring, Our reviewing, Resources and Chief approving Committee compensation andpolicies assists benefit and practices. the Board in updated five-yearfeedback Inclusion from and our teamsOur Diversity strategy and is an grounded strategy, in externalour concrete race built equity-seeking actions customers, to relations drive communities, with expert. progressOur and for team strategy members. includes goals to (i show that employeeacross engagement the is company, up stronger 2we points than started from measuring ever in last 2014, year, at and up 7 points 87% 14 above points best-in-class. since Isabelle Marcoux, The Hon. David R. Peterson, Loretta A. Rogers Martha L. Rogers Melinda M. Rogers-Hixon Philip B. Lind, Joe Natale Robert J. Gemmell Robert Dépatie Edward S. Rogers Alan D. Horn, Bonnie R. Brooks, John A. MacDonald Ellis Jacob, As at March 4, 2021 As at March 4, • Talent Management: It is our goal to invest in building the skills, • Inclusion and Diversity: In November 2020, we launched an EMPLOYEE EXPERIENCE • Employee engagement: The results of our annual employee survey At Rogers, being a good corporatebusiness. citizen Corporate is at responsibility the veryTed was heart Rogers, important of and our to continues totoday our be founder, a and core value an embracedfocused at on integral Rogers growing part inmanner a of socially our and through environmentallyprogram, long-term responsible an strategy. building Wecompany. environmental, on are social, our and reputationThe material governance as aspects ofgrouped a into our six corporate great focus responsibilityapproaches areas in platform addressing that Canadian them: are are listed below, along with our CORPORATE RESPONSIBILITY MANAGEMENT’S DISCUSSION AND ANALYSIS

CUSTOMER EXPERIENCE volunteers donated more than 50,000 hours across over 225 • Customer Service and Transparency: We believe in putting events in six months. customers first in everything we do to deliver the best • Digital Inclusion: A priority for us, digital inclusion is one of the experience, regardless of how customers choose to interact with best ways in which we can contribute to society. Our Connected us. This is a core pillar of our strategic priorities. We continue to for Success program provides low-cost broadband Internet to focus on self-serve options for our customers and invest in rent-subsidized tenants within partnered non-profit organizations training and tools for our customer-facing teams. and housing providers. Approximately 250,000 Canadian • Network Leadership and Innovation: Innovation is part of our households are eligible for Internet access through the DNA, whether it is bringing new products or the latest network Connected for Success program, giving them the tools and technologies to market. In 2020, we invested $2.3 billion in resources needed to experience the benefits of connectivity. In capital expenditures, with much of that investment going to our addition, we provided wireless plans for over 30,000 Apple iPads wireless and cable networks. We focus on core performance and to school boards in British Columbia, Alberta, Manitoba, and reliability and invest in our wireless network to build and maintain Ontario to assist with connecting families who previously did not our 5G network. have Internet connectivity. • Product Responsibility: We have programs and policies in place to manage a range of product responsibility issues. For example, ENVIRONMENTAL RESPONSIBILITY we have policies in place to comply with all relevant safety • Environmental Policy: We maintain a formal Environmental Policy regulations and codes, we have programs and teams to manage that sets out how we conduct business in an environmentally and advise on our accessibility offerings, and we operate responsible manner. Rogers also maintains an Environmental stewardship programs to manage the proper disposal and Management System, including 25 separate procedures to recycling of our used products, including Rogers Trade-Up and support our Environmental Policy and manage environmental FidoTrade™. risksacrossouroperations. • Customer Privacy and Information Security: We actively work to • Oversight: We have an Energy Executive Council and an improve transparency and we strive to be an industry leader in Environmental Compliance Committee to manage and govern the privacy space. Our Privacy Policy outlines our responsibilities our energy utilization and environmental risks, respectively, and practices regarding the protection of the personal supporting decision-making to advance our strategies and information of our employees and customers. Our Chief Privacy program effectiveness in both areas. Officer oversees our compliance with this policy and all • Energy Use and Climate Change: We recognize the implications applicable laws, and responds to requests from law enforcement of our energy use and the potential climate change impacts for customer data. associated with increasing worldwide energy usage (such as droughts, water shortages and quality, extreme weather events, COMMUNITY INVESTMENT flooding, wildfires, social inequities etc.). We are committed to • Community Giving: Giving back and supporting the managing of our operations in order to reduce our impact on communities where we live and work was especially important in the environment, strive to ensure stakeholder satisfaction, and 2020. In 2020, we provided over $75 million in cash and in-kind maintain investor confidence. Annually, we measure and disclose donations to support 1,500 organizations and causes. details on our energy use and greenhouse gas (GHG) emissions • Youth Education: We awarded 414 Ted Rogers Scholarships to across our buildings and retail stores, cell transmission sites, help some of the brightest young leaders across the country power supply stations, data centres, fleet, employee travel and succeed in their educational aspirations. We estimate BIPOC commuting, and the operations of the Toronto Blue Jays and students represented 75% of the scholarships. In addition, we Rogers Centre. We continue to invest in programs that reduce awarded 42 Ted Rogers Community Grants to assist youth energy and associated GHG emissions, including LED lighting organizations in their efforts to promote after school educational retrofits, cooling optimization strategies across our headends, programming. and decommissioning equipment for better energy • Community Support: We helped tackle food insecurity by performance and space utilization. To drive continuous supporting Food Banks Canada to distribute a total of 9 million improvement in our performance, we also have targets to reduce meals across Canada; 8 million of those meals were packed by our GHG emissions and energy use by 2025 based on 2011 Rogers employee volunteers at the Rogers Centre and the other levels. 1 million meals were distributed with the help of a Rogers • Waste Reduction: Reducing the amount of waste we produce is financial donation that helped raise awareness of the need to fill another important way in which we manage our environmental shelves during the pandemic. We also supported 208 footprint. To reduce and responsibly manage the waste we organizations (for example, Women’s Shelters Canada, produce, we look for opportunities to avoid waste generation Indigenous Women’s Shelters, and Big Brothers Big Sisters) with through collaboration with our supply chain, run programs to 2,600 free devices and wireless service plans. recycle and reuse end of life materials and equipment, and work • Volunteering: As part of the 60,000 Hours Challenge, part of The to increase employees’ recycling behaviours through our “Get 60 Project to mark our 60th anniversary in 2020, employee Up and Get Green” program.

68 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 69 | Total taxes and other payments 014, 2015, and 2019, ROGERS COMMUNICATIONS INC. Property and business taxes tion matters that affect Rogers 1 2020 ANNUAL REPORT Regulatory and spectrum fees id for the acquisition of spectrum licences in 2 taxes Payroll te significantly to Canadians by paying taxes and fees to federal, INCOME TAX AND OTHER GOVERNMENT PAYMENTS We proactively managedecisions our tax and affairsinvestment optimize to in enhance after-tax our ourcomprehensive free business business policies cash andcompliant shareholder with and flow all returns. available tax proceduresfiling laws We and making for and all to have reporting income anda requirements, sales ensure tax including timely returns and basis. payments wecooperative on As relationships with revenue a are authorities to parteffort minimize audit of and thisgovernment process, policy reduce we makers pursue onanditsshareholders,employees,customers,andother tax taxa open and uncertainty.stakeholders. We also engageINCOME TAX PAYMENTS with Our total income tax expense ofexpense $580 computed million on in our 2020 is accountingof close income to 26.6%. at the Cash the income statutory tax rate The payments primary totaled reason $418 our milliontax in cash 2020. income expense tax is iscontinue lower a than our result income telecommunications of to networks the throughout significant Canada,required make capital as timing well of investment as payments.$300 we in the We million expect increase a inthe further our our first approximately 2021 cash quarter,increase income is tax, wireless reflecting primarily mostly our a within under result final and of our 2020 thethroughout timing tax device the of broadband revenue installment. world, financingsuch recognition Canadian The tax model. productivity-enhancing lawspurposes Similar assets permit more investments to quickly tostatement in purposes. than tax be they systems deducted are depreciated for for tax financial order to generate earnings and encourageus innovation as that a advance customer-centric marketand leader. To trust, maintain we ouroperational, reputation will strategic, regulatory, always privacy, and workrisk-taking activities cybersecurity) are to of understood our and ensure areobjectives in and the line company with values. impacts our strategic (financial, s taxes on our products and services and $609 million in employee sales taxes Unrecoverable taxes e $3.3 billion, $24 million, and $1.7 billion we pa of integrity, ethicalunderpinned behaviour, by guidelines and and policies goodour that govern directors corporate the and actions citizenship, of employeesSee and “Governance at promote Rogers” responsible for more conduct. information. customers, create diversebusinesses, and pay well-paying taxes jobs,dividends to support all to small levels shareholders.$12.9 of billion In government, to and 2020, theteam deliver Canadian we economy members and directlyeconomic employed across contributed 23,500 impacts, theeconomic country. benefits, ourservices and including Beyond significant charitable performance donations. locally these procured produces direct which goods indirect is and whyprocesses and we management, and ensure conductand business with we environmentally socially havevalues. responsible strong We companies supplier havedemand that selection strong, that share our soundConduct. our suppliers procurement This adhere code processesterms sets to and out our of expectations Supplierenvironmental for behaviours. Code ethical, We our continue of to suppliers supportdiversity social, in inclusion and in labour, ourimplementation of communities health our through suppliercollaboration and with diversity the non-profit program organizations. development and safety, through and and respectively. Includes an allocation of $252 million relating to th RISK MANAGEMENT We strivecapabilities to topurpose continually of protect risk management is and strengthen nottrade-offs to eliminate enhance between our risk but toorganization. shareholder risk optimize risk As and value. such, management Rogers return The will to knowingly maximize take certain value risks to in the We also collected on behalf of the government $1,994 million in sale 1 (In millions of dollars) Income In addition to payingprovincial, income and municipal tax governments, on including: • the profits various we taxes on earn, the• we salaries and contribu property wages and we business pay taxes; • (payroll taxes) to unrecoverable approximately sales 23,500 taxes employees; • and custom duties; broadcast, and spectrum, and other regulatory fees. As outlined in the table below, the total cost to Rogers of these payments in 2020 was $1,105 million. payroll taxes. OTHER GOVERNMENT PAYMENTS See our annualwebsite Corporate (about.rogers.com/responsibility) Socialabout for our Responsibility social and more environmental report performance. on information our GOOD GOVERNANCE • Governance and Ethics: We strive to uphold the highest standards ECONOMY AND SOCIETY • Economic Performance: We strive to offer innovative solutions for • Supply Chain Management: Suppliers are key to our success, Total payments 418 8 137 492 50 1,105 MANAGEMENT’S DISCUSSION AND ANALYSIS

RISK GOVERNANCE corporate objectives. ERM reports the results of the annual strategic The Board has overall responsibility for risk governance and risk assessment to the Executive Leadership Team, the Audit and oversees management in identifying the key risks we face in our Risk Committee, and the Board. business and implementing appropriate risk assessment processes ERM also facilitates management’s completion of the financial to manage these risks. It delegates certain risk oversight and statement fraud risk assessment to ensure there is no potential management duties to the Audit and Risk Committee. fraud or misstatement in our financial statements and disclosures The Audit and Risk Committee discusses risk policies with and to assess whether controls are adequately designed and management and the Board and assists the Board in overseeing operating effectively. our compliance with legal and regulatory requirements. Internal Audit is the third line of defence. Internal Audit evaluates The Audit and Risk Committee also reviews: the design and operational effectiveness of the governance • the adequacy of the internal controls that have been adopted to program, internal controls, and risk management. Risks, controls, safeguard assets from loss and unauthorized use, to prevent, and mitigation plans identified through this process are deter, and detect fraud, and to ensure the accuracy of the incorporated into the annual Internal Audit plan. financial records; The Executive Leadership Team and the Audit and Risk Committee • the processes for identifying, assessing, and managing risks; are responsible for approving our enterprise risk policies. Our ERM • our exposure to major risks and trends and management’s methodology and policies rely on the expertise of our implementation of risk policies and actions to monitor and management and employees to identify risks and opportunities control these exposures, including cybersecurity, privacy, and implement risk mitigation strategies as required. technology, and environmental; • the implementation of new major systems and changes to existing major systems; RISKS AND UNCERTAINTIES AFFECTING OUR • our business continuity and disaster recovery plans; BUSINESS • any special audit steps adopted due to material weaknesses or significant deficiencies that may be identified; and This section describes the principal risks and uncertainties that • other risk management matters from time to time as determined could have a material adverse effect on our business and financial by the Audit and Risk Committee or directed by the Board. results. Any discussion about risks should be read in conjunction with “About Forward-Looking Information”. ENTERPRISE RISK MANAGEMENT Our Enterprise Risk Management (ERM) program uses the “3 Lines OUTBREAK OF COVID-19 AND RELATED PANDEMIC of Defence” framework to identify, assess, manage, monitor, and On March 11, 2020, the World Health Organization recognized the communicate risks. Our business units and departments, led by the outbreak of COVID-19 as a pandemic and we have closely Executive Leadership Team, are the first line of defence and are monitored related developments. As COVID-19 continues to accountable for managing or accepting the risks. Together, they significantly impact the well-being of individuals and the Canadian identify and assess key risks, define controls and action plans to and global economies, we have invoked our business continuity minimize these risks, and enhance our ability to meet our business plans and implemented a specific response plan to continue objectives. providing our essential services and support to our customers and communities while safeguarding the health and safety of the public ERM is the second line of defence. ERM helps management and our employees. identify the key risks in meeting our corporate and business unit objectives, our risk appetite, and emerging risks. At the business We are focused on operating and maintaining our wireless and unit and department level, ERM works with management to cable networks, our media operations, and the key business provide governance and advice in managing the key risks and operations required to ensure service continuity for customers. We associated controls to mitigate these risks. Business Continuity is a have implemented work-from-home arrangements for employees function within ERM which also assists the business in mitigating while we review and follow directions from the government to key risks. Specifically, the Business Continuity function oversees ensure the safety of our team and implement necessary safeguards incident management and planning for various events to maintain to accommodate a gradual approach in reopening our sites to customer service and operate our network in the event of threats employees. and natural disasters. Such threats include cyberattacks or Public and private sector regulations, policies, and other measures equipment failures that could cause various degrees of network aimed at reducing the transmission of COVID-19 include the outages; supply chain disruptions; natural disaster threats; imposition of business closures, travel restrictions, the promotion of epidemics; pandemics; and political instability. Our ERM program social distancing, and the adoption of work-from-home and online also includes insurance coverage to address certain risks. Lastly, education by companies, schools, and institutions. These measures ERM works with Internal Audit to monitor the adequacy and are impacting how customers use our networks, products, and effectiveness of controls to reduce risks to an acceptable level. services,themannerorextenttowhichwecanoffercertain Annually, ERM carries out a strategic risk assessment. The products and services, and the ability of certain suppliers and assessment includes reviewing risk and audit reports and industry vendors to provide products and services to us. benchmarks and, conducting an annual risk survey of all senior We maintained our programs to help employees manage through leaders. Based on the survey results, ERM, in consultation with COVID-19 and provide support and services to our customers and senior management, identifies the key risks to achieving our

70 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 71 | (PIPEDA) was first Personal Information , which introduces two ROGERS COMMUNICATIONS INC. s, leveraging external threat Consumer Privacy Protection Act ions, and attacks, amongst other 2020 ANNUAL REPORT Personal Information and Data Protection Tribunal Digital Charter Implementation Act, 2020 . These acts, if passed, would offer new consumer rights and TECHNOLOGY New technologies Our network plans assumeboth the wireless availability and ofthe wireline new networks, wireless technology including industry for wireline 5G industry. and technology While we in future work withour DOCSIS industry vendors standards to bodies enhancements ensure and timely inno delivery assurances the of new these technology,required. technologies there In are will 2020, be Rogerslargest available was 5G network the as in first Canada. and to when launch 5GAs and new had technologies the portion become of available, our weadvanced future expect services, revenue a and growth substantial continue companies may to such come from as investnetworks new Rogers and significant implement and will in capital an needand agile resources business to framework timelines. to to meet It customers be is develop sufficient possible, consumer however, our demand, thatsatisfy there or demand may that for not certain we products may and not services or anticipate be or able to offer PRIVACY In the evolvinghandling digital personal world, information privacy isfor consumers. and becoming Ensuring an how appropriate governance increasing organizationsbecome over priority even this are more data has critical. Asbeen the move accelerated to digital bygreater transactions has amounts COVID-19, ofnature companies data of on the continue our products and towe customers services are and we entrusted gain with offer employees. a ourThis The significant customers amount means means of personal that information. privacy ensuring protections in there place are isof a this appropriate priority data and for safeguards this us. responsibility and We is are of the theAgainst utmost stewards this importance backdrop, to the us. Federalthe Government introduced Bill C-11, new federal private sectorreforms to privacy Canada’s acts privacy legislation that sinceProtection are the the most and significant introduced. Bill Electronic C-11 introduced the (CPPA) Documents and the Act Act protections, along with a strong enforcement model. Management has committed toprogram an designed information and tosecure, cybersecurity reinforce vigilant, the anddepends importance resilient of organization. on Our remaining protectinginformation ongoing a about our success our sensitivesecurity awareness customers data, training, policies, and procedures, includingprotect and employees. IT personal systems this We to continuing rely information. to on Successintelligence, monitor internal also these monitoring,implementing depends risk controls reviewing as on bestinsurance required practices, Rogers to and coveragecybersecurity mitigate them. breaches, against We intrus things. have certainExternal damages threats to relatedconstantly the changing and network to thereprotect and is the no our assurance network business weattacks from may generally will affect all our be are customer able future service or to threats. our financial results. The impact of such te substantially increased or shortening of future major heft of assets, unauthorized s and services, or maintaining or nes of their respective provinces, games, the potential suspension such as longchannels; distance calling, roaming, and free television or unwilling to travel and continue to stay home; sports league seasons dueand the to associated television a programming; and second wave of COVID-19, revenue; networks in order to accommoda upgrading our networks, due todisruptions; store and closures and supply chain network usage. increased bad debt expense; • customers downgrading or cancelling• their services; the restriction of fan attendance at major sports• services league temporarily provided to our customers at no cost, • lower roaming and overage revenue as customers are unable services due to businesses closingassociated or downsizing, financial job losses hardship, and level or, of retail more activity, whichresult generally, may of: lead a to a declining decline• in revenue lower as Wireless a subscriber activity, including lower equipment Our industry is vulnerable toboth cybersecurity frequency risks and that complexity. areemploys Rogers, growing in along systems with and ourcyberattacks, network suppliers, which infrastructureaccess that may are include to subjectcorruption t proprietary to of orcyberattack sensitive data, against information, orinfrastructure and destruction our, operational supporting or informationservice or disruption. systems could disruptions, our A resultremediation costs, in and litigation, suppliers’, reputational significant damage. loss critical of network customers, significant CYBERSECURITY • additional capital expenditures to maintain orWhile expand we expect our certainrevenue, such cost as savings lower equipment to costs,extent offset we to also which some cannot they predict of would the be the offset. lower Although vaccines have started being administeredduration to and the potential public, outcomes the of COVID-19government remain has uncertain. enforced The measures throughout 2020to and slow into the 2021 spread ofthe COVID-19 Canadian that and may haveunable global broader at economies impacts this or on timeliquidity, financial to financial markets. predict condition, the We or overall results;and are impact however, may on continue COVID-19 to has our have, had, operations, Any a material, future adverse epidemic, impact onoccurs pandemic, in our the results. or future may other pose similar public risks to health us. crisis that • issues delivering certain product • an increase in delinquent or unpaid bills, which could lead to audiences. After temporarilynationally closing in most of Marchapproach our 2020, retail to we locations following continued the reopening public a health guideli ourand steady had and retail reopened phased most2020. locations of our across retail stores Canada, asThe of full December extent 31, adverse impacts and of the impact pandemic include,• of but are the COVID-19 not limited risk to: is of a unknown. material reduction Potential in demand for our products and MANAGEMENT’S DISCUSSION AND ANALYSIS

or market these new products and services successfully to We work to protect our networks and our service from the impact subscribers. If we do not attract subscribers to new products and of natural disasters and major weather events such as ice storms, services profitably or keep pace with changing consumer wind storms, forest fires, flooding, earthquakes, or landslides where preferences, we could experience slower revenue growth and it is necessary and feasible to do so. There are no assurances that a increased churn. This could have a material adverse effect on our future event will not cause service outages and that such outages business, results of operations, and financial condition. would not affect our results. Service disruptions or outages could also affect our operations if not quickly resolved, potentially causing Several technologies have affected the way our services are a risk of billing delays or errors. If we fail to have appropriate delivered, including: response strategies and protocols in place to handle service • broadband; outages in the face of these types of events, they could have an • IP-based voice, data, and video delivery services; impact on our revenue and our customer experience. Recovering • increased use of optical fibre technologies to businesses and from these disasters could require significant resources and residences; remediation costs, which are difficult to estimate. • broadband wireless access and wireless services using a radio frequency spectrum to which we may have limited or no access; and COMPETITIVE INTENSITY • applications and services using cloud-based technology, Competitive behaviour and market dynamics are continuously independent of carrier or physical connectivity. changing in our fast-paced industry. There is no assurance that our current or future competitors will not provide services that are These technologies may also lead to significantly different cost superior to ours or at lower prices, adapt more quickly to evolving structures for users and therefore affect the long-term viability of industry trends or changing market requirements, enter markets in some of our current technologies. Some of these technologies which we operate, or introduce competing services. The federal have allowed competitors to enter our markets with similar government also continues to promote competition and products or services at lower costs. These competitors may also be affordability, and is committed to universal high-speed Internet for larger, have greater access to financial resources, and have fewer every Canadian by 2030. Any of these factors could increase churn regulatory restrictions than Rogers. Additional competitors with or reduce our business market share or revenue. advances in technology, such as high-speed Internet service from low Earth orbit satellite operators like Starlink, may soon enter the The strategic offering of unlimited wireless plans continues to offer Canadian market and could potentially have a material adverse greater value to our customers and has helped us take a significant impact on our operations and results. step towards simplifying our products and services. However, depending on economic conditions and the response from our Thecontinuedemergenceandgrowth of subscriber-based satellite competitors and/or current and potential customers, we may need and digital radio products could affect AM and FM radio audience to extend lower wireless pricing offers to attract new customers and listening habits and have a negative effect on the results of our retain existing subscribers. As wireless penetration of the radio stations. Certain audiences are also migrating away from population deepens, new wireless customers may generate lower traditional broadcast platforms to the Internet as more video and average monthly revenue, which could slow revenue growth. audio content streaming becomes available. Global technology giants continue to ramp up content spending into new markets such as sports media, resulting in increased Reliance on technology competition for our Media and Cable business segments. This may Our technologies, processes, and systems are operationally result in an increase in subscriber churn as customers now have complex and increasingly interconnected. Further, our businesses additional choices of supplementary sources of media content. depend on IT systems for day-to-day operations and critical elements of our network infrastructure and IT systems are In addition, competition is increasing for content programming rights concentrated in various physical facilities. If we are unable to from both traditional linear television broadcasters and online operate our systems, make enhancements to accommodate competitors. Online providers are moving towards self-made, self- customer growth and new products and services, or if our systems hosted exclusive content, and may compete for rights more experience disruptions or failures, it could have an adverse effect aggressively than expected, such that traditional broadcasters may on our ability to acquire new subscribers, service customers, not gain access to desirable programming. Overall increased manage subscriber churn, produce accurate and timely subscriber competition for content will likely increase costs of programming invoices, generate revenue growth, and manage operating rights. As broadcasters and distributors sign longer-term agreements expenses. This could have an adverse impact on our results and to secure programming rights, this could affect the availability of financial position. desirable programming rights and result in lower revenue due to a lack of access to these rights. Lower revenue in turn could adversely Impact of failures on customer service affect the operating results of our business if we are unable to recover Customers have high expectations of reliable and consistent programming investments through advertising revenue and performance of our networks. Failure to maintain high service levels subscription fee increases that reflect the market. and to effectively manage network traffic could have an impact on In addition, the CRTC Broadcasting Distribution Regulations do not the customer experience, potentially resulting in an increase in allow cable operators to obtain exclusive contracts in buildings where customer churn. Due to the increased demand and traffic on our it is technically feasible to install two or more transmission systems. Internet and wireless networks, there could be capacity and congestion pressures. If our networks or key network components Continued deployments of fibre networks by competitors may lead fail, it could, in some circumstances, result in a loss of service for our to an increase in the reach, speed, and stability of their wireline- customers for certain periods and have an adverse effect on our related services. This could result in an increase in churn pertaining results and our financial position. to our wireline business segment services.

72 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 73 | ROGERS COMMUNICATIONS INC. vicesorexposeustopotential 2020 ANNUAL REPORT Wireless pricing and operating structure Implementation of theScience objective and ininstruments, the Industry’s including Minister the mandate forPolicy Directive, Innovation, advancement to reduce letter the of averageCanada cost by to the of 25%, cellular could phone 2019 negatively use billspricing. impact in The wireless Telecom and Minister all Internet is plan tothis work available objective with and telecom to companiesletter to expand further achieve MVNOs states in that if the thisyears, market. price The target the is mandate not Minister achievedCRTC within can two mandate expand on MVNOthese affordable qualifying areas, pricing. rules orgovernment, and Any could other the have adverse regulatory a decisionresults material, and burdens adverse future in effect investments. implemented on our by financial the Spectrum Radio spectrum is one ofon the our fundamental assets Wireless requiredimprove to business. current carry Our servicesamong ability and other to to offer factors, continueadequate new continued to spectrum, services access offer including depends to,spectrum and the on, licences and and ability acquire new deployment to spectrum licences. of, bothIf renew we current cannot acquire andthe retain needed government spectrum, whetherregional due providing carriers to through favourable setwe asides may spectrum and not lower beservices auctions able rates to or and continue otherwise, for to deployproviding offer competitive new and data speeds improve services our ourour customers current want. on As ability a a result, toaffected. timely attract In basis, addition, andspectrum including an retain could affect inability customers network toexpenditures. quality could acquire and be result and in adversely retain higherChanges needed capital to government spectrum feesour could payments significantly and therefore increase materially reduce our net income. Radio frequency emissions From time toalleged time, links media betweendevices and radio other (including frequency reportsconcerns, emissions new including have from cancer, highlighted and 5G wireless devices, interference with technology) including variousdiscourage medical and hearing the use various aids oflitigation wireless even health de and thoughstating there pacemakers. that are these no Thisfrequency health definitive emissions. issues may Future reports regulatory are orrestrictive actions directly studies may attributable result standards in tolow-powered more devices radio like on wirelessnature devices. or extent We of radio cannot any restrictions. predict the frequencyObtaining access emissions to support structures andway municipal from rights of To build and support theour rollout of cable 5G, network, and tostructures we continue must upgrading and continue municipalmunicipal to rights poles have and of access buildings,apply to way and on support to to First install NationsTelecommunications land. the equipment Act We in on can CRTC areasto where to municipal we rights cannot of obtainour secure way. costs access Failure and a adversely to affect obtain our right business. access could of increase access under the instances, replacing traditional chnology for wireless Internet result,wehavenoticedanincrease (see “Regulation In Our Industry” and “Litigation Risks”); Our Industry”); and phone billsstructure” by below). 25% (see “Wireless pricing and operating Regulatory changes or decisionsadversely made by impact theseregulation regulators our could relates to, resultsfees, among competition, other on the things,must cable a licensing distribute, television wireless and programming and consolidated related the wireline services rates interconnection we basis. we agreements, may chargeparties, This to provide the access resale to our ofour networks our operation by networks and third ownership and of roamingability communications on to systems, our and acquire our networks, anaddition, interest the in costs othertime of communications to systems. providing time In services asinitiatives may a be result to increased ofInternet-related compliance from address with issues consumer industrycommercial or e-mail, protection as legislative cybercrime, and lawful concerns access. copyright orGenerally, infringement, our such licences unsolicited aresubject to granted conditions for on the alicensing maintenance conditions specified of and term these related fees licences. andby may These the are regulators. be The modified regulators at maywhen any decide it not time expires, to and renew any aon failure licence by the us to maintenance complyforfeiture of with the of a conditions any licencecable, could of wireless, result our and in licencestransferred broadcasting a without or regulatory licences revocation approval. the generally or imposition may of notThe fines. be Our licencesCanadian include ownership conditions restrictions ofare requiring the currently applicable in us legislation. complianceand We to with control all requirements. comply If ofwould these these with requirements be Canadian were ownership subject violated,extreme we to case, the various loss of penalties, a licence. possibly including, in the Changes in government regulations Substantially all ofCanada our and/or business the activitiescould CRTC. are adversely Any affect regulated our regulatorymost by consolidated changes ISED results or significant ofbusiness decisions operations. are: outstanding The regulatory• the proceedings ongoing review to of wholesale our • Internet thepotentialexpansionoftheMVNOregime(see“RegulationIn costing and pricing • the ongoing objective to reduce the average cost of cellular REGULATORY RISKS Improvements in the qualitycoupled of with streaming increasing video availability overonline of through television the OTT shows Internet, content and providers,for movies has resulted viewership in competition andtelevision service providers. increased As a competition for Canadian cable in cordwithdraw cutting from traditional and cableare services. cord made If advances shaving to in anydistribution technology as alternative Canadian consumers system, multi-channelcompetition. broadcasting continue our In to addition, cablecontinues as to the develop, services it te wireline is, Internet. in may some face increased MANAGEMENT’S DISCUSSION AND ANALYSIS

The Supreme Court of Canada ruled in 2003, however, that the great employee experience. Failure to maintain and achieve this CRTC does not have the jurisdiction to establish the terms and focus, and changes to our workforce as a result of factors such as conditions of accessing the poles of hydroelectric companies. As a turnover and restructuring, failing to develop internal succession, result, we normally obtain access under terms established by the cost reduction initiatives, ongoing union negotiations, or other provincial utility boards. events, could have an adverse effect on the customer experience, and as a result our revenue and profitability. On October 30, 2020, the CRTC launched consultations regarding “potential regulatory measures to make access to poles owned by Canadian carriers more efficient”. The CRTC expressed concerns RELIANCE ON THIRD PARTIES that untimely and costly access to poles owned by Canadian We have outsourcing, managed service, and supplier carriers has negative impacts on the deployment of efficient arrangements with third parties to provide certain essential broadband-capable networks, particularly in areas of Canada with components of our business operations to our employees and limited or no access to such networks. Therefore, the CRTC initiated customers. These include, but are not limited to, certain critical a proceeding to identify and implement regulatory measures that infrastructure components and devices; facilities or property will make access to such poles more efficient. We are actively management functions; contact centre support; installation and participating in the process. service technicians; network and IT functions; and invoice printing. Some of these essential suppliers are relatively small in number and we have limited operational or financial control over them. If CUSTOMER EXPERIENCE interruptions in these services or at these suppliers occur, it could Creating best-in-class customer experiences is an important adversely affect our ability to service our customers. Additionally, in strategic priority for us, as we understand that great customer thecourseoffulfillingservicearrangements, third-party service experience is key to our long-term success. Our customers’ loyalty providers must ensure our information is appropriately protected and their likelihood to recommend Rogers are both dependent and safeguarded. Failure to do so may affect Rogers through upon our ability to provide a service experience that meets or increased regulatory risk, reputational damage, and damage to the exceeds their expectations. We handle many customer interactions customer experience. annually, ranging from potential new customers making in-store purchases to existing customers calling for technical support and everything in between. We understand that every time a customer FINANCIAL RISKS uses one of our services, such as making a call on their wireless Capital commitments, liquidity, debt, and interest payments device, browsing the Internet or watching their favourite show using Our capital commitments and financing obligations could have their Internet or television services, or listening to one of our radio important consequences, including: stations, their experience affects all future interactions with the • requiring us to dedicate a substantial portion of cash provided Rogers brand. If our products do not deliver the usage experience by operating activities to pay interest, principal amounts, and our customers expect from us, and if we do not have clear, simple, dividends, which reduces funds available for other business and fair interactions with our customers, it could cause confusion purposes, including other financial operations; and frustrate our customers. This could result in the potential for • making us more vulnerable to adverse economic and industry lost sales opportunities and increased churn, both of which could conditions; have negative effects on our reputation, results of operations, and • limiting our flexibility in planning for, and reacting to, changes in financial condition. our business and industry; • putting us at a competitive disadvantage compared to competitors who may have more financial resources and/or less RESULTS PERFORMANCE financial leverage; or One of our strategic priorities is to drive profitable growth in all • restricting our ability to obtain additional financing to fund markets we serve. This means we will focus on core growth drivers in working capital and capital expenditures and for other general each of our businesses, including increasing subscribers and corporate purposes. reducing churn, expanding products in our enterprise business, and stabilizing our Media performance. At the same time, our goal is to Our ability to satisfy our financial obligations depends on our future continue to develop strong capabilities in cost management to operating performance and economic, financial, competitive, and support investments that will fuel our future. If we are not successful in other factors, many of which are beyond our control. Our business achieving these goals, as a result of economic conditions or the may not generate sufficient cash flow in the future and financings competitive landscape, this could negatively impact confidence with may not be available to provide sufficient net proceeds to meet our investors and external stakeholders, and ultimately our stock price. obligations or to successfully execute our business strategy.

TALENT ACQUISITION AND RETENTION Credit ratings A significant transformation is underway in our industry, and as Credit ratings provide an independent measure of credit quality of competition for talent increases, our success is highly dependent a securities issuer and can affect our ability to obtain short- and on our ability to attract and retain a high-performing, diverse, and long-term financing and the terms of the financing. If rating engaged workforce, including in key growth areas, such as the agencies lower the credit ratings on our debt, particularly a network, IT, and digital fields. Our focus must be on providing downgrade below investment-grade, it could adversely affect our career and development opportunities, competitive compensation cost of financing and access to liquidity and capital. and benefits, fostering an inclusive and diverse workplace, and a

74 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 75 | ROGERS COMMUNICATIONS INC. ws and regulations. Situations tions (and adjacent businesses) ees and/or external parties, and 2020 ANNUAL REPORT Monitoring and controlling fraudulent activities As a large companyrange with of tens of desirableprevention thousands requires and of a employees valuableexposure disciplined and identification program and products a assessment, covering prevention, andreporting. detection, governance, and services, fraud Thismisappropriation of assets program byFraud employees events can and/or must result externaladdition in parties. financial to loss consider and unauthorizedmodems, brand degradation. a access In corruption sample to ofinclude potential digital (i) and examples boxes inappropriate of(ii) fraud use subscription and fraud relevant of and Internet to fraudulent our accountof us takeovers hardware cable for theft purpose or or SIMfinancial wireless swapping, statements (iii) networks, intentional by manipulation(iv) of employ copyright theftundermine the exclusivity and of our other content offerings. forms ofUnauthorized access unauthorized to digital use boxes orWith Internet that modems apre-loaded significant set-top boxes numberproducts, and cord-shaving, of illegally cord-cuttingcould streaming Canadians and increase. our To customer purchasing television developed address churn and illegal this, supported rates signals we by our use from vendors encryptionprogramming unauthorized to technology based protect access ourencryption on cable and and subscription toaccess security packages. to our technologies Internet control We service. to also access preventThereisnoassurancethatwewillbeabletoeffectivelyprevent use to unauthorized unauthorized decoding of televisionthe signals future. or If Internetencryption technology, access we and in subscriptions areincluding to unable digital programming, tovideo-on-demand, control premium this cable couldrevenue. access result video-on-demand with in our a and declineLegal in and ethical compliance our subscription We Cable rely onbusiness our partners employees, to behave officers, consistentlyethical Board, standards with in suppliers, applicable all legal and jurisdictionsbut and in other which not we limited operate,where including, to, individuals or anti-bribery others,do la whether not inadvertently adhere or to intentionally, contractual our policies, obligations applicable lawspossibility and may of regulations, damages, sanctions, or expose and fines,from or bidding us of on being disqualified contracts. to Thisresults, may financial litigation position, have reputation, an and adverse and brand. effect on the our Acquisitions, divestitures, or investments Acquiringdeveloping complementary strategicbusiness alliances, businesses are and oftenstrategy. divesting Some required and areas to portions ofare our optimally subject of technologies, opera to execute rapidly our and our evolving technologies demand business and trends. consumerforecast usage It the is valuetechnologies possible of resulting that consumer wemissed in opportunities. demand may higher or not valuations risk effectively of for competing acquisitions or . Should our vendors not deliver , which could either reduce the ssment of interest and penalties. Strategy and business plans Our strategy is vitalpriorities to or our long-term addingexisting success. initiatives new Changing and strategic could strategicbusiness, have results priorities a of operations, material could and adverse financial effect condition. compromise onWe our develop businessventures to plans, grow execute our business.do projects, If not the materialize, and expected this benefits launch couldbusiness, from have results new these a of operations, material and adverse financial effect condition. on our Our products, services, and networks, inrely, particular Connected in Home, part, on certain vendors Economic conditions Our businesses are affectedconsumer by general confidence economic conditionseconomic and and activity, and spending. economicand uncertainty business Recessions, can confidence erode and consumer declinesof reduce discretionary in these spending. Any advertising, factors lower candecreased revenue demand negatively anddebt for profitability, affect expense. A and significant our us portion higherrevenue of churn comes our through products broadcasting from and and the digital bad strength sale reduced and of of the economy. advertising and services, is affected by the OTHER RISKS solutions that operate as intended,could our business be and adversely financial results lower affected. revenue, and unfavourable This customer satisfaction. may result in subscriber losses, Capital markets External capital market conditionsstrategic could affect our investments abilityrequirements. to Risk make and factors includedisruptions in a meet capital reduction markets, inincrease and ongoing lending regulatory in activity, requirements bank for capital an capitalization funding While we believe we haveof paid tax, and our provided business for is adequatein interpreting amounts complex how and tax significant legislation and judgment regulations is apply to required us. Income taxes and other taxes We collect, pay,other and taxes, accrue such as significant federalproperty amounts taxes. and provincial of sales, employment, income and and We have recordedincome significant tax amounts liabilities and ofbased expense, deferred on and substantively and calculated enactedrelevant these current amounts income time. tax A ratesmaterial effect legislative in on the change effect amounts recorded at in and payable the these inWe the rates future. provide could foravailable have income a and information otherprovided and taxes for based these believemany on items. cases, however, The all that requires calculation currently significanttax judgment we rules of and in regulations. applicable interpreting Our have taxcould taxes filings are in adequately materially subject to audits, changeincome which tax the assets, amountcircumstances, liabilities, result in of and the asse expense, current and and could, in deferred certain availability, or increase the cost of capital. MANAGEMENT’S DISCUSSION AND ANALYSIS

Services, technologies, key personnel, or businesses of companies to recognize and adequately respond could result in fines, we acquire may not be effectively integrated into our business or regulatory scrutiny, or damage to our reputation or brand. service offerings, or our alliances may not be successful. We also may not be able to successfully complete certain divestitures on Controlling shareholder ownership risk satisfactory terms, if at all. Rogers is a family-founded, family-controlled company. Voting control of Rogers Communications Inc. is held by the Rogers Decline of television subscribers in Canada (cord-cutting and Control Trust (the Trust) for the benefit of successive generations of cord-shaving) the Rogers family. The beneficiaries of the Trust are a small group The number of households that subscribe to television service in of individuals who are members of the Rogers family, several of Canada continues to decline. Other video offerings available to whom are also directors of the Board. The trustee is the trust consumers (for example, direct-to-consumer subscription and free company subsidiary of a Canadian chartered bank. services), as well as piracy, have contributed to this trend. If this As at December 31, 2020, private Rogers family holding companies decline continues, it could have a material adverse effect on our controlled by the Trust owned approximately 98% of our outstanding results of operations. Class A Shares (2019 – 98%) and approximately 10% of our Class B Non-Voting Shares (2019 – 10%), or in total approximately 29% of the Migrating from conventional to digital media total shares outstanding (2019 – 29%). Only Class A Shares carry the Our Media business operates in many industries that can be righttovoteinmostcircumstances.Asaresult,theTrustisableto affected by customers migrating from conventional to digital elect all members of the Board and to control the vote on most media, which is driving shifts in the quality and accessibility of data matters submitted to a shareholder vote. and mobile alternatives to conventional media. We have been shifting our focus towards the digital market. Increasing competition for advertising revenue from digital platforms, such as LITIGATION RISKS search engines, social networks, and digital content alternatives, Wholesale Internet costing and pricing has resulted in advertising dollars migrating from conventional On August 15, 2019, in Telecom Order CRTC 2019-288, Follow-up television broadcasters to digital platforms. The impact is greater to Telecom Orders 2016-396 and 2016-448 – Final rates for on conventional over-the-air broadcast networks, such as Citytv and aggregated wholesale high-speed access services (Order), the OMNI, which do not have a second revenue stream from CRTC set final rates for facilities-based carriers’ wholesale high- subscription revenue. Our Media results could be adversely speed access services, including Rogers’ third-party Internet access affected if we are unsuccessful in shifting advertising dollars from (TPIA) service. The Order set final rates for Rogers that are conventional to digital platforms. significantly lower than the interim rates that were previously billed and it further determined that these final rates will apply retroactively to March 31, 2016. Our market position in radio and television Advertising dollars typically migrate to media properties that are We do not believe the final rates set by the CRTC are just and leaders in their respective markets and categories, particularly when reasonable as required by the Telecommunications Act as we advertising budgets are tight. Our radio and television properties believe they are below cost. On September 13, 2019, Rogers, in may not continue performing how they currently perform. conjunction with the other large Canadian cable companies (Cable Advertisers base a substantial part of their purchasing decisions on Carriers), filed a motion for Leave to Appeal pursuant to ratings data generated by industry associations and agencies. If our Section 64(1) of the Telecommunications Act with the Federal radio and television ratings decrease substantially, our advertising Court of Appeal (Court) and an associated motion for an sales volumes and the rates that we charge advertisers could be interlocutory Stay of the CRTC Order. On September 27, 2019, the adversely affected. Court granted an Interim Stay suspending the Order until the Court rules on the Cable Carriers’ motion for an interlocutory Stay Climate change of the CRTC’s Order pending the Court’s determination of the Climate change is an increasingly important consideration in all Cable Carriers’ motion for Leave to Appeal. On November 22, businesses, including the telecommunications business. Failure of 2019, the Court granted Leave to Appeal and an interlocutory Stay climate change mitigation and adaptation efforts could affect our of the CRTC Order. The appeal was heard in June 2020. On business through potential disruption of our operations or supply September 10, 2020, the Court dismissed the Cable Carrier’s chains, damage to our infrastructure, and the effects on the appeal and simultaneously vacated the interlocutory Stay previously communities we serve. granted. On September 28, 2020, the CRTC issued a Stay of Order 2019-288 (CRTC Stay) pending review of the appropriateness of Climate change and the environment are drawing more attention the rates established in the Order. On November 12, 2020, the through evolving public interest. Many aspects of our operations Cable Carriers filed a motion for Leave to Appeal the Court’s are subject to evolving and increasingly stringent federal, provincial, decision with the Supreme Court of Canada. The Supreme Court and local environmental, health, and safety laws and regulations. of Canada dismissed the request for Leave on February 25, 2021 Such laws and regulations impose requirements with respect to without reasons. matters such as the release of substances into the environment, corrective and remedial action concerning such releases, and the Due to the CRTC Stay, and the significant uncertainty surrounding proper handling and management of substances. These evolving both the outcome and the amount, if any, we could ultimately have considerations and more stringent laws and regulations could lead to repay to the resellers, we have not recorded a liability for this to increased costs for compliance and rising costs of utilities. Failure contingency at this time. The CRTC’s order as drafted would have

76 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 77 | ROGERS COMMUNICATIONS INC. ess of our internal control over o provide reasonable assurance hat our financial statements are Management also takes steps to wever, no matter how well designed, 2020 ANNUAL REPORT prepared and fairly presented intheIASB.Thesystemisintendedt accordance with IFRS as issuedthat by transactionsfinancial are records authorized, areassure assets the reliable. flow are of informationmonitors safeguarded, and performance and communication our is and internal effective, control and procedures. Management assessed the effectiven financial reporting as at Decemberset out 31, in 2020, the based Internal Control onby – the Integrated the criteria Framework Committee (2013) issued ofCommission Sponsoring (COSO), Organizations and of concludeddate. the that Our Treadway it wasunqualified independent effective opinion on at auditors, the that effectivenesscontrol KPMG of the over LLP, Company’s internal financialreport have reporting is issued as included ofStatements an filed in on December SEDAR our (sedar.com). 31, 2020 2020. AuditedAll This internal Consolidated control systems, ho Financial have inherentdetermined limitations, to be and effective canabout the even only preparation provide and reasonable presentation systems of assurance financial statements. that haveCHANGES IN been INTERNAL CONTROL OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES There have been no changes inreasonably 2020 that likely materially affected, or tofinancial are reporting. materially affect, our internal controls over MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management isadequate responsible internal controls over for financial reporting. establishingOur and internal control maintaining systemthe is Board designed to reasonable give assurance management t and CONTROLS AND PROCEDURES DISCLOSURE CONTROLS AND PROCEDURES We conducted an evaluation ofoperation the effectiveness of of the designDecember and our 31, disclosureparticipation 2020, of controls our underOfficer and management, including and procedures the thepromulgated Chief Chief as supervision under Financial Executive the at andamended. US Officer, Based Securities on this with pursuant Exchange evaluation, ourChief Act Chief to Financial the Executive of Officer Officer and 1934, Rule concludedprocedures as that were 13a-15 our effective at disclosure that controls date. and is notproceedings probable and claims, that individually oradverse the in total, ultimate effect will havecondition. resolution a on If material of circumstances our changewe any and business, it will of becomes financial be probableestimable, these we that held results, will recognize liable a orthe provision for during change financial the claims in period against probability inConsolidated which occurs, Statements us which of and could Incomeof be such Financial or Position. material claim Consolidated to Statements is our viously billed to the resellers of rrently known to us, we believe it es other than Saskatchewan have n relates to the Outcome of proceedings The outcomeincluding of the allresolution the matters that proceedings described includespossible and for above, the us to claims uncertainties predict isto the against of result subject or the magnitude litigation. us, of toprocess. various the It Based claims due on factors is future information not cu and uncertainties involved in the legal wireless carriers charge toare some seeking of unspecified theirwould damages customers. effectively The and plaintiffs be punitivecollected. a damages, reimbursement which of allIn system 2007, the access Saskatchewan fees Courtto granted have the the plaintiffs’ proceeding application certifiedwhere as affected a customers outside national, Saskatchewan “opt-in”steps must class to take action specific participate in thethe proceeding. proceeding In 2008, based ourservice motion on agreements to was the granted. stay The arbitrationthat Saskatchewan Court clause its directed order, inexclude in our customers respect wireless who of arethe the class bound certification of plaintiffs. by of an the arbitration action, clauseIn would from 2009, counselunder for the the Class plaintiffsclaims Actions as began Act the a (Saskatchewan) originalaction second asserting proceeding. would proceeding If the successful,proceeding same be this was an second ordered class conditionallywas “opt-out” an stayed abuse class of on process. the proceeding. basis thatAt This it the second corresponding time claims the wereCanada. Saskatchewan The filed claims class in in all action multiple provinc jurisdictions was across commenced, Other claims There are certain otherdo claims not and expect potential any of claims these,a against individually material us. or adverse in We effect the on aggregate, our to financial have results. System access fee – Saskatchewan In 2004, awireless communications class in action Canada(Saskatchewan). The under was class the commenced actio Class against Actions Act providers of 911 fee In June 2008, aproviders class of action wireless was communications launchedallegations services in in Saskatchewan of Canada. It against advertising, involves breach among other of things,been in contract, relation charged to misrepresentation, the byproviders 911 in and us fee Canada. that The and false had plaintiffsand are the restitution. seeking unspecified The other damages plaintiffsproceeding wireless intend as a telecommunication to national seek classrecognized an a action liability order in for Saskatchewan. this certifying contingency. We the have not approximately $210retroactive basis million, from March representing 31,estimate 2016 to the the December 31,$15 million ongoing 2020. impact per We quarter. impact on would a be between $10 and now been dismissed orliability discontinued. for this We contingency. have not recognized a resulted in a refund of amounts pre MANAGEMENT’S DISCUSSION AND ANALYSIS

Regulation In Our Industry Our business, except for the non-broadcasting operations of in 2016, as the CRTC believes there is enough competition for Media, is regulated by two groups: these services provided by other carriers to protect the interests of • ISED Canada on behalf of the Minister of Innovation, Science users and has forborne from regulating them. Regulations can and and Industry; and do, however, affect the terms and conditions under which we offer • the CRTC, under the Telecommunications Act and the these services. Broadcasting Act. Regulation relates to the following, among other things: SPECTRUM LICENCES • wireless spectrum and broadcasting licensing; ISED Canada sets technical standards for telecommunications under • competition; the Radiocommunication Act (Canada) (Radiocommunication Act) • the cable television programming services we must, and can, and the Telecommunications Act. It licences and oversees: distribute; • the technical aspects of the operation of radio and television • wireless and wireline interconnection agreements; stations; • rates we can charge third parties for access to our network; • the frequency-related operations of cable television networks; and • the resale of services on our networks; • spectrum for wireless communications systems in Canada. • roaming on our networks and the networks of others; • ownership and operation of our communications systems; and ROYALTIES • our ability to acquire an interest in other communications The Copyright Board of Canada (Copyright Board) oversees the systems. administration of copyright royalties in Canada and establishes the royaltiestobepaidfortheuseofcertain copyrighted works. It sets Regulatory changes or decisions can adversely affect our results of the copyright tariff royalties that Canadian broadcasting operations. undertakings, including cable, radio, television, and specialty Our costs of providing services may increase from time to time as services, pay to copyright collectives. we comply with industry or legislative initiatives to address consumer protection concerns or Internet-related issues like BILLING AND CONTRACTS copyright infringement, unsolicited commercial e-mail, cybercrime, Manitoba, Newfoundland and Labrador, Ontario, and Quebec and lawful access. have enacted consumer protection legislation for wireless, wireline, and Internet service contracts. This legislation addresses the Generally, our spectrum and broadcast licences are granted for a content of such contracts, the determination of the early specified term and are subject to conditions for maintaining these cancellation fees that can be charged to customers, the use of licences. Regulators can modify these licensing conditions at any security deposits, the cancellation and renewal rights of customers, time, and they can decide not to renew a licence when it expires. If the sale of prepaid cards, and the disclosure of related costs. we do not comply with the conditions, a licence may be forfeited or Rogers is also currently subject to the CRTC Wireless Code, the revoked, or we may be fined. CRTC Television Service Provider Code of Conduct that became The licences have conditions that require us, amongst other things, effective on September 1, 2017, and the CRTC Internet Code that to comply with Canadian ownership restrictions of the applicable became effective on January 31, 2020. See “CRTC Wireless Code” legislation. We are currently in compliance with these conditions. If and “CRTC Internet Code” for more information. we violate the requirements, we would be subject to various penalties, including the loss of a licence in extreme cases. FOREIGN OWNERSHIP AND CONTROL Non-Canadians can own and control, directly or indirectly: Cable, wireless, and broadcasting licences generally cannot be • up to 33.3% of the voting shares and the related votes of a transferred without regulatory approval. that has a subsidiary operating company licenced under the Broadcasting Act, and CANADIAN BROADCASTING AND • up to 20% of the voting shares and the related votes of the TELECOMMUNICATIONS OPERATIONS operating licensee company may be owned and controlled The CRTC is responsible for regulating and supervising all aspects directly or indirectly by non-Canadians. of the Canadian broadcasting and telecommunications system. Our Canadian broadcasting operations – including our cable Combined, these limits can enable effective foreign control of up television systems, radio and television stations, and specialty to 46.7%. services – are licensed (or operated under an exemption order) and The chief executive officer and 80% of the members of the board regulated by the CRTC under the Broadcasting Act. of directors of the operating licensee must be resident Canadians. The CRTC is also responsible under the Telecommunications Act There are no restrictions on the number of non-voting shares that for the regulation of telecommunications carriers, including: may be held by non-Canadians at either the holding company or • Wireless’ mobile voice and data operations; and the licensee company level. Neither the Canadian carrier nor its • Cable’s Internet and telephone services. parent may be otherwise controlled in fact by non-Canadians. Subject to appeal to the federal Cabinet, the CRTC has the Our cable and telecommunications retail services are not currently jurisdiction to determine as a question of fact whether a given subject to price regulation, other than our affordable entry-level licensee is controlled by non-Canadians. basic cable television service ordered by the CRTC and introduced

78 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 79 | the CRTC ROGERS COMMUNICATIONS INC. Final 2019 revenue-percent released on December 4, 2019. The ractices for industry. 2020 ANNUAL REPORT CANADA’S ANTI-SPAM LEGISLATION Canada’s anti-spamDecember 15, 2010 legislation and cameof into force was on such Julycomputer 1, legislation passed 2014. programs Sections or related2015. software into A came to private into right lawthe the force of legislation action on effective unsolicited that on January July wasare 15, 1, in to installation compliance 2017 come with was into this of legislation. deferred. place We under believe we MANDATORY NOTIFICATION OF PRIVACY BREACHES On June 18, 2015, Billlaw. S-4 – It the Digitalintroduction Privacy made of Act mandatory was several passed breach into force notification amendments on rules November that 1, came to 2018.individuals into Businesses PIPEDA, must and now notify including thebreach impacted where federal the it is Privacyrisk reasonable to Commissioner of believe of the significantcompleted breach a harm creates as a privacy to soon real occurred. as the Businesses feasible individual. mustprovide after Notification these also it records must keep to isThe be the records Privacy determined Privacy Commissioner may of Commissioner a also upon launchbased breaches breach request. an on investigation the and or information audit containedprovide in the notification breach or report. maintain Failure$100,000 to records could per result violation. inconducted fines In up to late atelecommunications 2019, the services review Privacyrecommendations for providers, Commissioner best of p issuing breach a report reporting with among seven determined that the currentincumbent $115 local telephone million company local high-cost serving servicebe areas subsidy phased would for out insuch that six the voice equal subsidy increments will be between eliminated by 2019For the 2020, end and the of $100 2021 2021. millionFund funding requirements will of be the added Broadband toan the voice increased and projected VRS subsidy requirements,Telecom requirement resulting in of Decision $170.7 million CRTC per 2019-395, maximum fundingimplementation. level This level will of increase bythe $100 $25 following four million years annually million to over reachthe an in annual incremental cap of increases the $200review in million, with of first years the four fund yearefficiently and in and the five is of third achieving contingent its year intended on to purpose. ensure a itA is percent being managed ofwireless revenue voice levy revenuesservice has since to been 2000 designatedprovide applied to high-cost a national local support on video voiceon providing wireline relay wireline serving service voice and and (VRS). wireless area In voicesubsidies. and revenues 2019, The generated a to voice $94.2 0.52% million service levy over-year in subsidy because component in is Telecom decliningPhase-out Regulatory year- of Policy the CRTC 2018-213, local voice service subsidy regime, charge and related matters, percent of revenue levyvoice currently revenues applied to willtexting wireline revenue be and and wireless extended is setthis to for expanded 2020 revenue also on base, an subject apply interim torevenues basis in finalization to at late based 0.45% 2020. on Internet on actual and Modern , released on the universal service objective bile wireless technology should . ribers should be able to access , on December 21, 2016 and be available not only inas Canadian many homes major and transportation businesses, roads but as on possible in Canada. speeds of at least 50to Mbps download and subscribe 10 Mbpsallowance upload, to and by 2021, a withreceiving service such the service by remaining offering 2031; 10% and of with the population an unlimited data Internet access service subsc are consideredmeaning basic of subsection 46.5(1) of telecommunications the• Telecommunications Act: services fixed and within mobile the wireless broadband• Internet fixed access and services; mobile wireless voice services. To assist inremote locations, extending the broadband CRTCbroadband into fund stated to that under-served which itCanada all rural entities would must and providing establish Internet a contribute.guiding services new in The principles, fund specificsestablished design, of in and theDevelopment assessment of fund, Telecom the criteria, including Commission’sSeptember Regulatory Broadband were 27, Fund 2018. Policy Two2020 calls for marks CRTC applications occurred the in 2018-377, first 2019. year of payments into the fund, with a To help attain the universal serviceshift objective, the the CRTC will focus beginservices to of to itsfollowing broadband regulatory services frameworks Internet that from form access part wireline of services. voice As such, the • the latest generally deployed mo CRTC REVIEW OF BASIC TELECOMMUNICATIONS SERVICES After an extensive proceeding examiningservices which telecommunications Canadians require toeconomy participate meaningfully and in theaffordable the digital basic telecommunications CRTC’s servicesCRTC role released to Telecom all Regulatory in Canadians, Policy CRTC the ensuring 2016-496, the availability of The CRTC set asurban its areas universal as service well objectivevoice that as services Canadians, in in and rural and broadbandfixed remote Internet and areas, access mobile have services,achievement wireless access on of to networks. both this To objective,criteria, measure including: the the CRTC successful has• established several 90% of Canadian residential and business fixed broadband telecommunications services – Theeconomy path forward for Canada’s digital Pursuant toregulations, the thetelecommunications carriers Telecommunications such as sameno Wireless, Act except requirement that that there rulesCanadian. and is We the believe associated chief alsoforeign we ownership executive and are control requirements. in officer apply compliance be withOn a June the to 29, foregoing resident 2012, Billpassed C-38 Canadian amending into the Telecommunications law.companies Act with less The than 10% amendments ofmarket total Canadian measured exempt telecommunications by telecommunications Companies revenue from that foreign areexcess investment successful of restrictions. 10% in of total Canadian growingother telecommunications market their than revenue market byexempt shares way from the in restrictions. of merger or acquisitions will continue to be MANAGEMENT’S DISCUSSION AND ANALYSIS

GOVERNMENT OF CANADA REVIEW OF Rogers and others filed their comments on the consultation TELECOMMUNICATIONS AND BROADCASTING ACTS document on July 12, 2018. Reply comments were filed on On November 17, 2020, ISED Canada Minister Bains introduced August 10, 2018. In its Spectrum Outlook 2018 to 2022, also Bill C-11, the Digital Charter Implementation Act, 2020, which released on June 6, 2018, ISED Canada anticipated that 3500 MHz introduces two new federal private sector privacy acts, the CPPA spectrum would be released for flexible use in late 2020 following and the Personal Information and Data Protection Tribunal Act. an auction in 2020. These acts are the most significant reforms to Canada’s privacy On June 6, 2019, ISED Canada released its Decision on its legislation and if passed will offer new consumer rights and Consultation on Revisions to the 3500 MHz Band to Accommodate protections and introduce a strong enforcement model. PIPEDA Flexible Use and Preliminary Consultation on Changes to the 3800 will be separated, with the Electronic Documents Act standing MHz Band. The Decision determined that ISED Canada will issue alone and the remainder being replaced by the CPPA. flexible use licences in a 200 MHz frequency range from 3450- In addition to new consumer rights, such as the right to withdraw 3650 MHz. Existing wireless licensees in this range that meet all of consent, the right for data deletion or destruction, and the right for their conditions of licence will be eligible to be issued flexible use data mobility when leaving one service provider for another, the licences covering the same geographic area for the following most significant change is the introduction of the new enhanced spectrum amounts: powers for the Office of the Privacy Commissioner of Canada • any licensee that holds 75 MHz of existing spectrum or more will (OPC). Under the CPPA, the OPC will be able to recommend be eligible to apply for 60 MHz; monetary penalties for non-compliance. At their highest, penalties • any licensee that holds 50 MHz of existing spectrum will be can be the greater of 5% of gross global revenue or $25 million. eligible to apply for 50 MHz; and The Bill is at second reading and has not been studied by • all other licensees will be eligible to apply for 20 MHz. committee yet. Rogers and Bell previously held 3500 MHz spectrum licences across the country in Inukshuk, a partnership between the two companies. GOVERNMENT OF CANADA TABLING OF Inukshuk held between 100-175 MHz of 3500 MHz spectrum in AMENDMENTS TO THE BROADCASTING ACTS most major urban markets in Canada. Because Inukshuk held 75 or On October 30, 2020, based on the feedback provided by the more MHz of 3500 MHz spectrum in each of the top 10 service Broadcasting and Telecommunications Legislative Review Panel, areas in Canada by population, it was eligible to retain 60 MHz in the Federal Government tabled Bill C-10, An Act to amend the those areas. As of September 25, 2020 Rogers and Bell unwound Broadcasting Act and to make related and consequential Inukshuk and transferred to each partner 50% of Inukshuk’s 3500 amendments to other Acts. The purported goal of Bill C-10 is to MHz holdings. As such, in accordance with the Decision and the support Canada’s cultural policy objectives of producing Canadian transfer, Rogers in effect, will retain 30 MHz of 3500 MHz spectrum stories in the midst of a changing broadcasting landscape. The licences for re-designation to flexible use licences in each of the top main amendments would subject online streaming services to 10 service areas in Canada by population. CRTC regulation as well as give administrative monetary penalty powers to the CRTC in order to enforce the new and existing ISED Canada will only begin issuing flexible use licences in the requirements. The CRTC will decide how the new regulatory 3500 MHz band after the conclusion of the auction process. On regime is to be implemented subject to the guidance that would March 5, 2020, ISED Canada released its Policy and Licensing be provided by the Government in a policy direction to be issued Framework for Spectrum in the 3500 MHz Band following the when (and if) the Bill is passed. consultation, establishing the rules and timelines for the 3500 MHz spectrum licence auction. The framework set aside up to 50 MHz of the spectrum available for auction (i.e. after existing holders’ WIRELESS retained spectrum is deducted from the 200 MHz in the band) for carriers other than the three national carriers, Rogers, Bell, and 3500 AND 3800 MHZ SPECTRUM LICENCE BANDS Telus. The auction will commence on June 15, 2021. In December 2014, ISED Canada released its policy changes to the 3500 MHz spectrum band. The 3500 MHz band will be reallocated The Decision further announced that ISED Canada will launch a for mobile services (it is currently only licensed for fixed wireless future consultation to address potential changes to the spectrum access in Canada). The band will eventually be relicensed on a utilization policy, band plans, and the technical and policy flexible-use basis whereby licensees will be permitted to determine considerations to optimize the use of the 3700-4200 MHz bands in the extent to which they will implement fixed and/or mobile support of a future spectrum release currently planned to take services in the band in a given geographic area. place in 2022 to support 5G wireless technologies deployment. This proceeding, Consultation on the Technical and Policy On June 6, 2018, ISED Canada released its Consultation on Framework for the 3650-4200 MHz Band and Changes to the Revisions to the 3500 MHz Band to Accommodate Flexible Use Frequency Allocation of the 3500-3650 MHz Band, was launched in and Preliminary Consultation on Changes to the 3800 MHz Band. August 2020 with initial submissions filed on October 26, 2020 and The 3500 MHz band is viewed as key spectrum to support 5G reply comments filed on November 30, 2020. It will establish the technologies. In its consultation documents, ISED Canada guidelines for the allocation of frequencies between 3650 MHz proposed two options for claw back of existing spectrum licences. and 4200 MHz. A decision is expected in 2021.

80 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 81 | the CRTC ROGERS COMMUNICATIONS INC. ). The CRTC determined that rise from purchase or sale options roviders may, however, allow account 2020 ANNUAL REPORT Show cause proceeding and call for comments – The Review of the Wireless Code not allow any that resultreduced in competition. “undue Decisions spectrum will concentration” bebasis and made and will on be a issued case-by-case publicly to increase transparency; and any agreement that couldCanada will lead review to the agreement athat as could prospective though arise the from transfer. licence it ISED has transfer been made. holders to authorize other users onto a additional family charges. or shared The plan CRTC tothe also consent made caps clear apply that on in adevices, all for instances, per multi-line account plans and basis, individual regardless lines on of the theIn account. number of Julyagreements with 2019, both2019, Rogers 24- the and CRTC introduced 36-month2019-309, initiated terms. wireless Telecom On Notice August device of 30, Consultation financing CRTC CRTC WIRELESS CODE OF CONDUCT In June 2013,(Wireless the Code) CRTC thatWireless issued came Code its into imposes Wirelessincluding effect maximum several Code contract in term obligations of length, Decemberunlocking roaming on Conduct bill 2013. requirements, caps, wireless device and The carriers, contractthe rules summaries. for device It subsidies also andWireless early lays Code, cancellation if fees. out Under a the only customer charge cancels a the contractreceived, outstanding early, which balance carriers decreases of can byno the an more than device equal 24 amount months. subsidy every they monthOn over June 15, 2017, thereview CRTC released of its decision the2017-200, on the Wireless three-year Codeas of (Telecom December Regulatory 1,service customers 2017, Policy will all have CRTC the individual rightother and to have mobile small their cellular business devices phonesaddition, wireless and unlocked, all free newly of purchasedfrom that charge, devices day must upon forward. beshared request. The plans provided CRTC In (multi-line also unlocked plans), determinedbe the that the account for one holder who family consents must, or tobeyond by data overage default, and data the roamingrespectively). charges Wireless established service p caps ($50 and $100 per month, TRANSFERS, DIVISIONS, AND SUBORDINATE LICENSING OF SPECTRUM LICENCES In JuneTransfers, 2013, ISED DivisionsLicences Canada and for released Commercial Subordinateout Mobile Framework the Spectrum. criteria Licensing Relating ISED The Canadause to of Framework will consider lays and when Spectrum theprospective processes transfers that it it could will a and reviews other agreements. Key items spectrum to• note are that: ISED licence Canada will review transfers, all spectrum including transfer requests, and will • licensees must ask for a review within 15 days of entering into On December 17,Lower-cost 2018, data-only in plans Telecom forapproved mobile Decision the wireless plans CRTC services, proposedthat 2018-475, by the introduction Rogers, of Bell,in these and addressing lower-cost a Telus, data-only previously stating plans identifieda gap will variety in assist the of market new bypreviously plans bringing available, to with the marketboth a within a mix 90 prepaid of days andnetworks. prices that postpaid Rogers and were introduced basis, its not data and plans in on capacities, March both 2019. on the 3G and LTE , ), .The rs (Bell and Telus) charge other domestic GSM-based wholesale Regulatory framework for wholesale mobile Reconsideration of Telecom Decision 2017-56 , would start by March 2019. The CRTC further ) to reconsider its earlier decision maintaining the Regulatory framework for wholesale mobile wireless , to exclude public WiFi networks from the definition of Lower-cost data-only plans for mobile wireless services . The CRTC determined it is necessary to regulate the rates WHOLESALE DOMESTIC WIRELESS ROAMING RATES TERMS & CONDITIONS AND RATES On May 5,2015-177, 2015, the CRTC released Telecom Regulatorythat Policy Rogers and two of its competito services Canadian wireless carriers for establishing the final wholesalemay tariffs charge that any Rogers, ofrates the Bell, were non-national and made carriers Telus retroactive forhave to roaming. a May material The impact 5, final on 2015. our This financial results. decisionOn did July not 20, 2017,the prompted CRTC by Order initiated in aCRTC Council proceeding P.C. (Telecom 2017-259, 2017-0557, Notice ofregarding Consultation final terms androaming conditions service for wholesale mobileintegrity wireless of domesticexpanding roaming the agreements scope of and theinnovative instead wholesale business roaming consider models regime and to technologicalresult explore solutions that in could especially more those meaningful withreconsider the choices exclusion low of public for WiFi incomes.of networks from “home Canadian the The network” definition consumers, that specificrights. disqualifies issue such networks was from to On roaming March 22, 2018, the CRTCReconsideration released of Telecom Telecom Decision Decision 2018-97, 2017-56 regardingand final conditions terms for wholesale mobile wireless roaming service roaming. Pending its finalthe CRTC determination approved, on on the anof interim GSM-based proposed voice, basis, tariffs, text, a and maximum dataBell, rate wholesale for roaming Rogers, provided each and by Canadian Telus wireless across their carriers.CRTC respective These gave interim networks rates approval to to were theby other proposed replaced the cost-based carriers tariffs when on filed December the effective 3, 2015 November and 23, made 2015. theserates The interim extended rates CRTC into 2018. process to establish final The CRTC further determined thatwholesale it MVNO is access. not appropriate to mandate Finally, theestablishedinthedecisionwouldremaininplaceforaminimumof CRTC determinedfive years, that duringconditions the which in the time mobile regulatory wireless the market. CRTC measures willOn monitor March 22, competitive 2018,Wholesale the CRTC mobile released wireless Telecom Order roaming 2018-99, service tariffs – Final rates “home network” andnetworks. not The CRTC mandate also announced wholesale thatwireless the access five-year wholesale review to of the wireless Policy regime 2015-177, established in Telecom Regulatory CRTC maintained itsconfirming policy of its facilities-based originalWholesale competition, mobile decision while wireless roaming inconditions service tariffs Telecom – Final Decision terms and 2017-56, wireless services initiated a new public proceeding2018-98, (Telecom Notice of Consultation requiring Rogers, Bell, andonly Telus plans. to file proposed lower-cost data- MANAGEMENT’S DISCUSSION AND ANALYSIS

Wireless Code – Device financing plans, to consider whether device to improve choice and affordability for Canadians. After extensive financing plans, including those with terms longer than 24 months, written submissions were filed in 2019, a two-week oral hearing are compliant with the Wireless Code. We voluntarily ceased began on February 18, 2020. Final written submissions were filed offering device financing. arrangements with terms greater than on July 15, 2020; a final decision from the CRTC will follow. Any 24 months at that time. Final reply submissions were filed on adverse decision regarding the items being reviewed in the October 29, 2019. On March 4, 2021, the CRTC released Telecom proceeding could have a material, adverse effect on our financial Decision CRTC 2021-98, Wireless Code - Application to device results and future investments. financing plans, confirming that the Wireless Code does apply to device financing plans sold with a wireless service plan and that CABLE device financing plans must comply with all relevant protections of the Wireless Code. The CRTC also established that device financing DIFFERENTIAL PRICING RELATED TO INTERNET DATA plans are similar to device subsidies when determining early PLANS cancellation fees under the Wireless Code On April 20, 2017, the CRTC released Telecom Regulatory Policy CRTC 2017-104, Framework for assessing the differential pricing TOWER SHARING POLICY practices of Internet service providers, setting out the evaluation In March 2013, ISED Canada released Revised Frameworks for criteria it will apply to determine whether a specific differential Mandatory Roaming and Antenna Tower and Site Sharing, pricing practice complies with subsection 27(2) of the concluding a consultation initiated in 2012. It sets out the current Telecommunications Act on a case-by-case basis, as follows: rules for tower and site sharing, among other things. The key terms • the degree to which the treatment of data is agnostic (i.e., data is of the tower and site sharing rules are: treated equally regardless of its source or nature); • all holders of spectrum licences, radio licences, and • whether the offering is exclusive to certain customers or certain broadcasting certificates must share towers and antenna sites, content providers; where technically feasible, at commercial rates; and • the impact on Internet openness and innovation; and • the timeframe for negotiating agreements is 60 days, after which • whether there is financial compensation involved. arbitration according to ISED Canada arbitration rules will begin. Of these criteria, the degree to which data is treated agnostically will In Telecom Regulatory Policy 2015-177, Regulatory framework for generally carry the most weight. The overriding expectation is that all wholesale mobile wireless services, released in May 2015, the CRTC content and applications will be treated in a neutral manner. Zero- determined that it would not mandate or require general rating of account management functions (e.g., monitoring of Internet wholesale tariffs for tower and site sharing. At the same time, it data usage or the payment of bills online) will generally be permitted. determined that its existing powers and processes are sufficient to address tower and site sharing disputes related to rates, terms, and WHOLESALE INTERNET COSTING AND PRICING conditions. As a result, carriers may use the arbitration process On March 31, 2016, the CRTC released its decision on the review established by ISED Canada, or they may request the CRTC to of costing inputs and the application process for existing wholesale intervene in the event that tower and site sharing negotiations fail. high-speed access services (HAS) that provide for a single provincial point of interconnection, but which are not available over POLICY DIRECTION TO THE CRTC ON FTTH access facilities (Telecom Decision CRTC 2016-117, Review of TELECOMMUNICATIONS costing inputs and the application process for wholesale high- On February 26, 2019, the Minister of Innovation, Science and speed access). The CRTC determined that wholesale telecom rates Economic Development tabled a Proposed Order Issuing a paid by competitive telecom providers were no longer appropriate, Direction to the CRTC on Implementing the Canadian and required all wholesale HAS providers to file new cost studies Telecommunications Policy Objectives to Promote Competition, with proposed rates for final approval. The CRTC further Affordability, Consumer Interests and Innovation. The Direction determined that all wholesale Internet rates that were currently signals the government’s intention to require the CRTC to consider approved were to be made interim as of the date of the decision. competition, affordability, consumer interests, and innovation in its The CRTC will assess the extent to which, if at all, retroactivity will telecommunications decisions and to demonstrate to Canadians in apply when new cost studies are submitted in support of revised those decisions that it has done so. wholesale high-speed access service rates. On June 30, 2016, we On June 17, 2019, the Order Issuing a Direction to the CRTC on filed our new cost studies with the CRTC, which detailed our Implementing the Canadian Telecommunications Policy Objectives proposed rates. to Promote Competition, Affordability, Consumer Interests and On October 6, 2016, the CRTC issued Telecom Order 2016-396, Innovation came into effect after review and revision. It requires the Tariff notice applications concerning aggregated wholesale high- CRTC to consider competition, affordability, consumer interests, speed access services – Revised interim rates, significantly reducing and innovation in its telecommunications decisions and to existing interim rates for the capacity charge tariff component of demonstrate to Canadians in those decisions that it has done so. wholesale HAS pending approval of final rates. The interim rate reductions took effect immediately. The CRTC will assess the extent CRTC REVIEW OF MOBILE WIRELESS SERVICES to which, if at all, retroactivity will apply when wholesale HAS rates On February 28, 2019, through Telecom Notice of Consultation are set on a final basis. CRTC 2019-57, Review of mobile wireless services,theCRTC initiated its five-year review to examine the state of the mobile On August 15, 2019, in Telecom Order CRTC 2019-288, Follow-up wireless market and to determine whether further action is required to Telecom Orders 2016-396 and 2016-448 – Final rates for

82 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 83 | ROGERS COMMUNICATIONS INC. aints for Telecom-television , establishing a mandatory code ervice Provider Codes already in vember 12, 2020, Rogers, again in 2020 ANNUAL REPORT Follow-up to Telecom Regulatory Policy Review of wholesale wireline services and ), determining which wireline services, and under The Internet Code , addressing the technical implementation of new, Cable Carrier HAS servicesand apply only on a prospective basis; the Federal Court of Appealstay is terminated of or varied, the an Orderdeterminations interim in pending respect of completion both (a) of and (b) the above. Commission’s associated policies what terms andcarriers must conditions, make facilities-based availableproviders, to telecommunications such other as telecommunications resellers.high-speed service The CRTC access determined thatcompetition services, wholesale for which services,Internet are access, such would used continue asprovincially to to be aggregated local mandated. support The services, phone,mandated provision retail however, of television, and would would and implementation no be of longer a phased be telephone disaggregated company out central service offices in and withThe cable conjunction company connections head-ends. requirement with at tospeed the implement access disaggregated servicesfibre-to-the-premises wholesale will (FTTP) high- include accesscontinue facilities. making to be based Regulated them on long-run rates available increment cost will studies. over On September 20,CRTC 2016, the 2016-379, CRTC2015-326 released – Telecom Implementation Decision speed of access a service, disaggregatedfacilities including wholesale over high- fibre-to-thedisaggregated, premises high-speed access access TPIA,access a service to that FTTP willruling. facilities provide The as decision ordered isRogers in consistent in the with our CRTC’s filings. thefor Proposed positions July tariffs the submitted 22, and by new 2015 supportinginformation service cost filed studies later were in filedwas 2017 on and anticipated 2018. January AJune in 9, decision 11, 2020 on 2017, 2020 by final with CRTC rates Call Telecom but further Notice of for was Consultation 2020-187, temporarily comments suspended – on Appropriate network configuration for CRTC REVIEW OF WHOLESALE WIRELINE TELECOMMUNICATIONS SERVICES On July 22, 2015, theframework CRTC released for its decision wholesale onPolicy the wireline regulatory 2015-326, services (Telecom Regulatory CRTC INTERNET CODE On July 31, 2019,CRTC 2019-269, the CRTC releasedof conduct Telecom (Code) Regulatory for Policy largecompanies’ facilities-based provision ISPs that of applies fixedindividual to customers. wireline the As Internet is accessDisconnection, the services and case to for Television theplace, S Wireless, Deposit the and ServicesInc.(CCTS)willadministertheCode.TheCodecameinto Commission foreffect Compl on January 31, 2020. c) in the event that the interlocutory stay of the Order granted by On September 28,2019-288 pending 2020, review theestablished in of the CRTC Order. the On issuedconjunction No with appropriateness the a other of Cable Stayto the Carriers, Appeal the filed of Court’s rates a decision motion Order The with for Supreme the Leave Court Supreme Court of of CanadaFebruary Canada. dismissed 25, the 2021 without request reasons. for Leave on , (Order), the ,Part1ofthe Telecommunications Act t recognized that the final lesale regulatory framework. Revised Guidelines for review , and Telecommunications iew. Finally, we asked that the Telecommunications Act with the Federal Court of Appeal (Court) as we believe they are below cost. . Specifically, we seek: rates approved for theHAS Cable Carriers’ in aggregated the wholesale planned CRTC review Orderwholesale of telecommunications services in generally; its conjunction approach with to theregarding setting CRTC’s retroactivity such the that rates any new for wholesale rates for a) review and variance of the methodology and the resulting b) review and variance of the determination in the Order Canadian Radio-television andRules Telecommunications Commission ofInformation Bulletin Practice CRTC 2011-214, and and vary applications Procedure asking the Cabinet to order2019 the CRTC to decision reconsiderannounced its review August in 15, ofWe the conjunction also entire asked who that withbroader the telecommunications Cabinet policy order the objectives the intoof CRTC account as to CRTC’s the part take Canada’s reconsiderationCabinet previously and vary the rev windfall granted August to 15,rates the 2019 that resellers the and decisionapplicable CRTC making only by on the establishes, a cancelling final after forward-lookingreduce basis. wholesale the reconsidering This the would its substantially regulatory decision, August uncertainty 15, arising 2020, fromrates the the did Federal not decision. always Cabine On the appropriately balance wholesale the policyundermine network objectives of investment and indecided were not high-quality concerned to refer networks.matter that the was matter They they already back before however toapplication would them filed the by as CRTC, Rogers a and given result the that other of Cable the the Carriers. On review December and vary 13,other 2019, Cable Rogers, Carriers, again filedreview an in and Application conjunction variance with27(1), with and the 61(2), the stay CRTC and seeking of 62 of the the Order pursuant to sections CRTC set finalincluding rates Rogers’ TPIA for service. The facilities-basedthat Order carriers’ set are final wholesale ratespreviously significantly for HAS, billed Rogers and it lower furtherapply determined than retroactively that to these March the finalrates rates 31, will set 2016. interim We by do the ratesTelecommunications not CRTC Act believe are that the just final and were reasonable asOn required September by 13, the large 2019, Canadian cable Rogers, companies (Cable in Carriers),Leave filed conjunction a motion with for the toTelecommunications Act other Appealand an associated pursuantOrder. motion On for September 27, an to 2019,suspending interlocutory the the Court Stay Order granted of until an Section Interim themotion the Stay Court for CRTC ruled an on interlocutory 64(1) theCourt’s Stay Cable of determination Carriers’ the of of CRTC’s theAppeal. Order Cable pending On the Carriers’ the November motionAppeal for and 22, Leave an 2019, to interlocutorywas Stay the heard of Court the indismissed CRTC granted Order. June the Leave The Cable 2020. appeal to Carriers’the On interlocutory appeal Stay and previously September granted. simultaneously 10, vacated 2020,On the November 13, Court other 2019, Cable Carriers, Rogers, filed again anCabinet, appeal pursuant in of to the conjunction Section Order 12(1) with with of the the the Federal aggregated wholesale high-speed access services MANAGEMENT’S DISCUSSION AND ANALYSIS

disaggregated wholesale high-speed access services.Initial The decision also addressed rules for distribution of foreign comments for this proceeding were filed on October 5, 2020 and services authorized for distribution in Canada, including reply comments were filed on December 7, 2020. requirements that foreign services make their channels available “à la carte” and in “pick-packs” or in smaller pre-assembled packages CRTC REVIEW OF LOCAL AND COMMUNITY and abide by the Wholesale Code. Access rules for VI-owned PROGRAMMING services and independent services, channel packaging, and On June 15, 2016, the CRTC released Broadcasting Regulatory buy-through rules for multicultural services were also addressed. Policy CRTC 2016-224, Policy framework for local and community On March 26, 2015, in the final decision related to Let’s Talk TV, the television. The CRTC created a new model for BDU contributions to CRTC announced plans to establish a Television Service Provider Canadian programming that took effect on September 1, 2017. (TVSP) Code of Conduct to govern certain aspects of the Annual contributions will remain at 5% of annual gross relationship between TVSPs and their customers as well as to allow broadcasting revenues; however, of that amount, in all licensed consumers to complain to the Commissioner for Complaints for cable systems, up to 1.5% (rather than the previous 2%) can be Telecommunications Services about their providers which came used to fund community channel programming. Of this revenue, into effect on September 1, 2017. 0.3% must now go to a newly created Independent Local News Fund for independently owned local TV stations, and the remaining TV LICENCE RENEWALS funding will continue to go to the Canada Media Fund and On August 2, 2018, in Broadcasting Decision CRTC 2018-265, independent production funds. This decision provides the flexibility Rogers – Licence renewal for various terrestrial broadcasting for BDUs that operate community channels in large markets distribution undertakings, the CRTC renewed Rogers’ Broadcasting (Montreal, Toronto, Edmonton, Calgary, and Vancouver) to now Distribution Undertaking licences in Ontario and Atlantic Canada direct their community channel revenues from those markets to for a full seven-year licence term with conditions substantially fund either community channel programming in smaller markets, consistent with Rogers’ application. or to fund local news on TV stations (such as Citytv, in the case of Rogers). Rogers has closed its Greater Toronto Area community channels and redirected these revenues. CRTC PROCEEDING ON FUTURE PROGRAMMING DISTRIBUTION MODELS On October 12, 2017, prompted by Order in Council P.C. 2017- TELEVISION SERVICES DISTRIBUTION 1195, the CRTC initiated a proceeding (Broadcasting Notice of On March 19, 2015, the CRTC released the third of its decisions Consultation CRTC 2017-359, Call for comments on the Governor related to its Let’s Talk TV proceeding. The CRTC ordered in Council’s request for a report on future programming distribution distributors to offer customers an option for a small basic service models) to report on the distribution model or models of consisting only of Canadian local channels (local radio is optional), programming that are likely to exist in the future; how and through national mandatory services, community and provincial legislature whom Canadians will access that programming; and the extent to channels, and, should they wish, US 4+1 networks beginning which these models will ensure a vibrant domestic market that is March 1, 2016. The retail rate for this entry-level service will be capable of supporting the continued creation, production, and capped at $25 per month (excluding equipment). Effective distribution of Canadian programming, in both official languages, March 1, 2016, we began offering a small basic service consisting including original entertainment and information programming. of Canadian local channels, national mandatory services, community and provincial legislature channels, and the US 4+1 On May 30, 2018, the CRTC issued its report on future networks. programming distribution models requested by the government in September 2017 through Order in Council P.C. 2017-1195. The The CRTC also adopted phased-in requirements for selling report proposes new tools and regulatory approaches to support channels to customers “à la carte” and as part of “pick-packs”. All the production and promotion of audio and video content made channels above the basic tier must be offered on an à la carte basis by and for Canadians. The report will inform the government’s and in smaller, reasonably priced packages as of December 2016. review of the Broadcasting Act and Telecommunications Act. As a BDU, we are permitted to continue to offer our existing basic service and programming packages. The CRTC also revised its existing “preponderance” rule so that consumers will have to be offered, but will not have to receive, a majority of Canadian services. A number of changes to the Wholesale Code (formerly the (VI) Code) addressing, amongst other matters, penetration-based rate cards and minimum guarantees were also made. All licensed programmers and BDUs are to comply with the Wholesale Code, which came into effect on January 22, 2016.

84 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 85 | ROGERS COMMUNICATIONS INC. sted value. If the derivatives are count rate. The estimated credit- uation. If the derivatives are in an ing industry trends and company- s are recorded using an estimated (including goodwill and spectrum s owes the counterparty), our credit e assessed for impairment on an 2020 ANNUAL REPORT FINANCIAL INSTRUMENTS The fair values ofcredit-adjusted our mark-to-market val derivative asset position (i.e. the counterpartyfor owes the Rogers), bank the credit counterparty spread determine is the added estimated to credit-adju thein risk-free a discount liability rate position to spread (i.e. is Roger added to the risk-free dis CAPITALIZING DIRECT LABOUR, OVERHEAD, AND INTEREST Certain direct labour, overhead,the and acquisition, interest construction, costs development, associated ornetworks with improvement of are our capitalizedcapitalized to amounts property, are plantprojects calculated and that based equipment. are on The capitalper-hour estimated in rate. costs nature, of In anddevelopment are addition, and generally interest basedequipment. construction costs Capitalized on amounts of a are increase theresult capitalized certain cost in of a during the property, higher asset depreciation and expense plant in future periods. and IMPAIRMENT OF ASSETS Indefinite-life intangible assets and/or broadcast licences)annual basis, ar or more oftenfinite-life if events assets or circumstances (including warrant,other and intangible property, assets) plantcircumstances are and assessed warrant. for equipmentgenerating impairment and unit The if (CGU) events involvescash significant recoverable or estimates such flows, amount asestimates future terminal differ of growth unfavourablyimpairment a in rates, charges that the could and cash decrease future, net income. we discount could rates. experience If key LEASES We estimatecircumstances that the can create lease anextension economic incentive option, term to or exercise an not bycertain exercise qualitative a and considering termination quantitativevalue assumptions option. of the when We the economic deriving make incentive. facts the and USEFUL LIVES We depreciate the cost of property,estimated plant useful and lives equipment by over consider their specific factors, including changing technologiesfor and the expectations in-service periodour of certain estimates assets at ofchange, the to ensure time. useful they We match reassess lives thefrom anticipated life a annually, of the revenue-producing or technology happens perspective. more when quickly, If or circumstances might technological in have a change different toequipment, way, reduce which than could the anticipated, result estimated we infuture a life periods higher depreciation or of expense an property,We in monitor impairment plant and charge review and our to depreciationat write rates least and down once asset a useful the lives year value. previous and change them estimates. ifestimates they in We are net different income from prospectively. recognize our the effect of changes in s, rebates, refunds, credits, price s could be different from these one selling price is not directly FAIR VALUE We use estimates to determine theliabilities fair value of assumed assets acquiredinformation, and in including an informationestimates acquisition, from include key financial using assumptions markets.rates, such the as These and discount best terminal rates,flow growth attrition available analyses. rates for performing discounted cash observable, we estimate theaccount stand-alone reasonably selling available priceconditions, entity-specific information taking factors, and into relating the class to of customer. theIn market determining the stand-alonebetween selling performance price, obligations weenforceable based allocate on amounts revenue expected toabove minimum which the Rogers isrevenue minimum as entitled. they enforceable are Any earned. amounts amounts are recognized as Determining the stand-alone selling price andtransaction the price allocation of the The transaction price is allocated toon performance the obligations based relative stand-aloneservices selling in the prices contract. of Theprice the best is distinct evidence the goods of observable asells or price stand-alone that of good selling a or service goodsimilar separately or in service customers. similar when circumstances If and the to entity a stand-al REVENUE FROM CONTRACTS WITH CUSTOMERS Determining the transaction price The transactionenforceable price and to is which wethe expect the to goods be amount and entitled in servicesdetermine exchange of we for the have consideration transaction promisedcontract price that to by and our considering is business customer.particular the line We practices terms of business. of Discount thatconcessions, the are incentives, customary penalties,reflected within in the and transaction that price at other contract inception. similar items are ESTIMATES estimates. These estimatesunderstanding are our critical resultsadditional of judgment to because operations. of our theassumptions We sensitivity used of business may in the methods need determining operationsexpense and the amounts. to asset, and use liability, revenue, and CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS Management makes judgments, estimates,affect and how accounting assumptions policies that arein applied, the assets, amounts wedisclosure report liabilities, about revenue,changes and contingent in our expenses, assumptions, assetsbusiness including and those and plans related our toamounts liabilities. and our we related future cash record. Significant Actual flows, result could materially change the Other Information ACCOUNTING POLICIES MANAGEMENT’S DISCUSSION AND ANALYSIS

adjusted value of derivatives requires assessment of the credit risk of the liabilities and compensation costs based on the awards’ fair the parties to the instruments and the instruments’ discount rates. values, which are based on the market price of the Class B Non-Voting Shares, and recognizing them as charges to operating For all derivative instruments where hedge accounting is applied, costs over the vesting period of the awards. If an award’s fair value we are required to ensure that the hedging relationships meet changes after it has been granted and before the exercise date, we hedge effectiveness criteria. Hedge effectiveness testing requires recognize the resulting changes in the liability within operating the use of both judgments and estimates. costs in the year the change occurs. For RSUs, the payment amount is established as of the vesting date. For DSUs, the payment PENSION BENEFITS amount is established as of the exercise date. When we account for defined benefit pension plans, assumptions are made in determining the valuation of benefit obligations. JUDGMENTS Assumptions and estimates include the discount rate, the rate of future compensation increase, and the mortality rate. Changes to REVENUE FROM CONTRACTS WITH CUSTOMERS these primary assumptions and estimates would affect the pension Distinct goods and services expense, pension asset and liability, and other comprehensive We make judgments in determining whether a promise to deliver income. Changes in economic conditions, including financial goods or services is considered distinct. We account for individual markets and interest rates, may also have an impact on our pension products and services separately if they are distinct (i.e. if a product plans,asthereisnoassurancethattheplanswillbeabletoearn or service is separately identifiable from other items in the bundled the assumed rate of return. Market-driven changes may also result package and if the customer can benefit from it). The consideration in changes in the discount rates and other variables that could is allocated between separate products and services in a bundle require us to make contributions in the future that differ significantly based on their stand-alone selling prices. For items we do not sell from the current contributions and assumptions incorporated into separately, we estimate stand-alone selling prices using the the actuarial valuation process. adjusted market assessment approach. Below is a summary of the effect an increase or decrease in the primary assumptions and estimates would have had on our Determining costs to obtain or fulfill a contract accrued benefit obligation as at December 31, 2020. Determining the costs we incur to obtain or fulfill a contract that meet the deferral criteria within IFRS 15 requires us to make Increase (decrease) significant judgments. We expect incremental commission fees in accrued paid to internal and external representatives as a result of obtaining (In millions of dollars) benefit obligation contracts with customers to be recoverable. Discount rate Impact of 0.5% increase (279) Residual value arrangements Impact of 0.5% decrease 319 Under certain customer offers, we allow customers to defer a Rate of future compensation increase Impact of 0.25% increase 20 component of the device cost until contract termination. We use Impact of 0.25% decrease (20) judgment in determining whether these arrangements constitute Mortality rate revenue-generating arrangements or leases. In making this Impact of 1 year increase 76 determination, we use judgment to assess the extent of control Impact of 1 year decrease (80) over the devices that passes to our customer, including whether the customer has a significant economic incentive at contract inception to return the device at contract termination. STOCK-BASED COMPENSATION Stock option plans Our employee stock option plans attach cash-settled share LEASES appreciation rights (SARs) to all new and previously granted We make judgments in determining whether a contract contains options. The SAR feature allows the option holder to elect to an identified asset. The identified asset should be physically distinct receive a cash payment equal to the intrinsic value of the option, or represent substantially all of the capacity of the asset, and should instead of exercising the option and acquiring Class B Non-Voting provide us with the right to substantially all of the economic Shares. We measure stock-based compensation to employees at benefits from the use of the asset. fair value. We determine the fair value of options using our Class B We also make judgments in determining whether or not we have Non-Voting Share price and option pricing models, and record all the right to control the use of the identified asset. We have that outstanding stock options as liabilities. The liability is marked to right when we have the decision-making rights that are most market each period and is amortized to expense using a graded relevant to changing how and for what purpose the asset is used. In vesting approach over the period during which employee services rare cases where the decisions about how and for what purpose are rendered, or over the period to the date an employee is the asset is used are predetermined, we have the right to direct the eligible to retire, whichever is shorter. The expense in each period useoftheassetifwehavetherighttooperatetheassetorifwe is affected by the change in the price of our Class B Non-Voting designed the asset in a way that predetermines how and for what Shares during the period. purpose the asset will be used.

Restricted share unit (RSU) and deferred share unit (DSU) plans We make judgments in determining the incremental borrowing We recognize outstanding RSUs and DSUs as liabilities, measuring rate used to measure our lease liability for each lease contract, including an estimate of the asset-specific security impact. The

86 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 87 | 69 (62) 212 (43) 2019 % Chg 26 121 2020 Years ended December 31 ROGERS COMMUNICATIONS INC. oadcasting rights) and Glentel sactions in the normal course of mes probable that a contingent 2020 ANNUAL REPORT (In millions of dollars) Purchases liability will resultrecord in a provision an in outflowThe the amount period of of the economic change theavailable resources, in loss at probability we involves that occurs. judgment will time.liability could based Any be on material provision to information recognizedresults our of consolidated for operations. financial position a and contingent CONTINGENCIES Considerable judgmentcontingent is liabilities. involvedcurrently Our known to in us, judgment and theof the is probability the of the determination based contingencies. ultimate resolution If on of it information beco ONEROUS CONTRACTS Significant judgment is required toto determine when we unavoidable are subject judgments costs may include, for arising example,legally whether binding from a or certain promise whetherwith onerous is the we counterparty. may contracts. be These successful in negotiations TRANSACTIONS WITH RELATED PARTIES We have entered into certain tran SEGMENTS We make significantsegments. These are judgments components that in engagefrom in which determining business activities they our mayoperating earn operating revenue results and are incurdecision makers regularly expenses, to for make reviewed which decisions aboutand by resources to to our be allocated assess chieffinancial component information operating is available. performance, and for which discrete INCOME TAXES AND OTHER TAXES We accrue income andcurrently other available tax in provisions each based ofWhile on the information jurisdictions we in whichamounts believe of we tax, operate. we our business isrequired have complex in and interpreting significant how paid judgment tax is legislationus. and and Our regulations apply tax provided to filingsrevenue are for authorities subject and to adequate the auditmaterially results by of the change the relevant the government government amountincome audit of could our tax actualreceivable, income and payable deferred tax income expense, tax or assetsin and liabilities certain and receivable, circumstances, could, resultpenalties. other in the taxes assessment of payable interest and or business with related partiesbeing in primarily which MLSE we(Wireless (primarily have distribution br an support). The equity amounts interest, to received these from parties were or as paid follows: Revenue certain brand names) as there is cences, and certain brand names. We makefinancial significant instruments judgments qualify fordetermination of in hedge hedge effectiveness. accounting, determining including whether our our HEDGE ACCOUNTING IMPAIRMENT OF ASSETS We make judgments ingoodwill determining CGUs to andimpairment CGUs the allocation or of testing.considerable management groups judgment in of The determininggroups the of CGUs CGUs CGUs) (or that allocation are for expecteda to business benefit the from combination. of the A synergiesof purpose CGU of assets is that goodwill of the generates smallestof cash identifiable the inflows involves group cash that inflows are fromand largely other assets independent indefinite-life or groups intangiblegroups of assets. assets of Goodwill are CGUs)monitors goodwill, allocated which based is not to higher on than CGUs an operating the segment. (or level at which management We makedepreciating our significant property, plantmost judgments and accurately equipment in represent thatfrom the we those choosing believe consumption assetssubstance of and methods of the are benefits intended use most derived for of the representative underlying of assets. We amortize the the economic cost ofestimated intangible useful assets lives. with We finiteand review lives the their over amortization methods their useful at lives, least once residual a values, year. We do not amortize intangible assetslicences, with broadcast indefinite lives licences, (spectrum and no foreseeable limitexpected to to generate the net cash periodto inflows for determine over us. that which We makerelevant these these judgments assets factors, assets have including are typical indefinite the life lives, cycle expected of analyzing the usagedemand asset, all and of for anticipated changes the the in asset, products theAfter market review and the of services the competitive, theit legal, asset is regulatory, and our helps other view generate. factors, spectrum that licences, broadcast these li factors do not limitJudgment is the also useful applied livesintangible in of choosing our methods assets foraccurately amortizing and represent our the consumption program ofrepresentative those assets of rights and the are most economic thatthe substance underlying assets. of we the intended believe use of most USEFUL LIVES AND DEPRECIATION AND AMORTIZATION METHODS incremental borrowing rate should reflect thehave interest to that pay we to borrow would at a similar termCertain and of with a our similar leases security. containexercisable extension or renewal only optionscommencement, that are we by assess whetherexercise us we any are and reasonably ofeconomic certain the to return not extension fromoptions the options by on lease. our based We leases, the on especiallydue typically related to our exercise to lessor. the our expected extension significant networks,network cost At primarily towers that would and lease be relatedwhether required equipment. we to We relocate are periodically our account reasonably for reassess any changes certain at the to date of exercise the reassessment. the options and MANAGEMENT’S DISCUSSION AND ANALYSIS

We have also entered into business transactions with • Amendments to IAS 1, Presentation of Financial Statements – Transcontinental Inc., a company that provides us with printing Classification of Liabilities as Current or Non-current,clarifying services. Isabelle Marcoux, C.M., is chair of the board of requirements for the classification of liabilities as non-current. Transcontinental Inc. and a Director of RCI. • Amendments to IAS 16, Property Plants and Equipment: Proceeds before intended use, prohibiting reducing the cost of Years ended December 31 property, plant, and equipment by proceeds while bringing an (In millions of dollars) 2020 2019 asset to capable operations. Printing services 4 6 • Amendments to IFRS 3, Business Combinations – Updating a Reference to the Conceptual Framework, updating a reference to We have also entered into certain transactions with our controlling the Conceptual Framework. shareholder and companies it controls. These transactions are • Amendments to IFRS 16, Leases, allowing lessees to not assess subject to formal agreements approved by the Audit and Risk whether a COVID-19-related rent concession is a lease Committee. Total amounts paid to these related parties generally modification. reflect the charges to Rogers for occasional business use of aircraft, We do not expect IFRS 17, Insurance Contracts, will have an effect net of other administrative services, and were less than $1 million on our consolidated financial statements. We are assessing the for each of 2020 and 2019. impacts, if any, the remaining new standards or amendments will These transactions are measured at the amount agreed to by the have on our consolidated financial statements, but we currently do related parties, which are also reviewed by the Audit and Risk notexpectanymaterialimpacts. Committee. The amounts owing are unsecured, interest-free, and due for payment in cash within one month from the date of the transaction. KEY PERFORMANCE INDICATORS We measure the success of our strategy using a number of key NEW ACCOUNTING PRONOUNCEMENTS ADOPTED IN performance indicators, which are outlined below. We believe 2020 these key performance indicators allow us to appropriately measure our performance against our operating strategy and We adopted the following IFRS amendments in 2020. They did not against the results of our peers and competitors. The following key have a material effect on our financial statements. performance indicators are not measurements in accordance with • Amendments to IFRS 9, Financial Instruments, IAS 39, Financial IFRS and should not be considered alternatives to net income or Instruments: Recognition and Measurement, and IFRS 7, Financial any other measure of performance under IFRS. They include: Instruments: Disclosures, Interest Rate Benchmark Reform, • subscriber counts; detailing the fundamental reform of major interest rate • Wireless; benchmarks being undertaken globally to replace or redefine •Cable;and Inter-Bank Offered Rates (IBORs) with alternative nearly risk-free • homes passed (Cable); benchmark rates (referred to as “IBOR reform”). There is significant • Wireless subscriber churn (churn); uncertainty over the timing of when the replacements for IBORs • Wireless blended average billings per user (ABPU); will be effective and what those replacements will be. We will • Wireless blended average revenue per user (ARPU); actively monitor the IBOR reform and consider circumstances as • Cable average revenue per account (ARPA); we renew or enter into new financial instrument contracts. • Cable customer relationships; • Changes to the Conceptual Framework, seeking to provide • Cable market penetration (penetration); improvements to concepts surrounding various financial • capital intensity; reporting considerations and existing IFRS standards. • total service revenue; • Amendments to IAS 1, Presentation of Financial Statements and • dividend payout ratios; and IAS 8, Accounting Policies, Changes in Accounting Estimates and • returnonassets. Errors, clarifying the definition of “material”.

Effective January 1, 2020, we updated the key performance indicators RECENT ACCOUNTING PRONOUNCEMENTS NOT YET we present for our Cable segment to align our external reporting ADOPTED with the focus of our internal business strategy as a result of the The IASB has issued the following new standards that will become convergence of technologies used to deliver Internet and television effective in future years and could have an impact on our services, including the continued adoption of Ignite TV. We have consolidated financial statements in future periods: begun disclosing Cable average revenue per account (ARPA), • IAS 37, Provisions, Contingent Liabilities and Contingent Assets – customer relationships, and market penetration as defined below. Onerous Contracts, specifying costs an entity should include in Additionally, we have amended the definition of our subscriber determining the “cost of fulfilling” a potential onerous contract. counts for Television to include only Ignite TV and renamed the • IFRS 17, Insurance Contracts, a replacement of IFRS 4, Insurance metric accordingly as a result of shifting our product offering to focus Contracts, that aims to provide consistency in the application of onIPTV.Finally,wehaveceasedreporting Phone subscribers and accounting for insurance contracts. total service units as our Phone product is increasingly being • Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS bundled with our Internet and Television products for a very low 9, IAS 39, and IFRS 7), addressing issues that might affect incremental cost. These changes have been made to align our financial reporting after the reform of an interest rate benchmark. external disclosure with the focus of the business and our strategy.

88 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 89 | ROGERS COMMUNICATIONS INC. . Internet, legacy television or ct assets to accounts receivable, ng the sum of Wireless service dered one customer relationship. 2020 ANNUAL REPORT Ignite TV, and/or home phone) areservice installed or and operating, services and are the billedone accordingly. unit When there in istenant one more with than dwelling, at suchindividual least as customer one an relationship, ofseparately apartment whether our or building, Cable the included each services service inhospitals or is is the hotels, are counted tenant’s invoiced each consi rent. as Institutional an units, like CUSTOMER RELATIONSHIPS Customer relationships are represented byleast dwelling one units where of at our Cable services (i.e MARKET PENETRATION Market penetrationattracting new (penetration) households tonetwork our measures brands footprint. and Market products ourcustomer within penetration relationships our success is bypenetration homes calculated at rate passed. by reflects Annew dividing homes more increasing passed. new market customer relationships than CAPITAL INTENSITY Capital intensity allowsexpenditures to us that to of otherOur compare capital companies expenditures within the do the not include level samelicences. expenditures industry. on of spectrum We ourexpenditures by capital calculate revenue. We useour it capital assets to and evaluate the when intensity performance makingWe of decisions believe about by that capital certain expenditures. to investors measure dividing the and performance analysts of capital asset userelation purchases to capital and revenue. construction intensity in BLENDED AVERAGE BILLINGS PER USER (WIRELESS) We use blendedaverage amount ABPU we invoice asbasis. an individual Blended a subscriber ABPU on measuresuccess a helps in that monthly us attracting approximates identifycalculate and trends blended the retaining and ABPU higher-value measurerevenue, by the subscribers. dividi our amortization of We contra and billingsintroduction of related this new toWireless offering) subscribers for by the financing same the period. average receivables total number (following of BLENDED AVERAGE the REVENUE PER USER (WIRELESS) Blended ARPU helps us identifyattracting trends and measure and our success retainingblended in ARPU by higher-value dividing Wireless subscribers.total service number revenue of We by Wireless the subscribers average calculate for the same period. AVERAGE REVENUE PER ACCOUNT (CABLE) Average revenue perspending by a account single customer account (ARPA)it on Cable to measures products. We identify use totalretaining trends multiple-service average accounts. and We calculate measureCable ARPA our service by dividing revenue success byrelationships in for the the attracting same average period. and total number of customer the sum of the numberdivided of by subscribers the deactivating sum for ofbeginning each the of period each aggregate period. number of subscribers at the h, subscriber churn represents apartment building, each tenant withan cable service is individual counted as separately subscriber, or included whethersuch as in hospitals or the the hotels, are tenant’s each considered service rent. one subscriber. Institutional issubscribers units, who have invoiced serviceare installed being billed and accordingly. operating, and who over our fibre network andswitched data local centre infrastructure, and and long circuit- services distance voice services where andnetwork legacy access elements data and tariffed is ILEC services. delivered using leased third-party dwelling unit. prepaid. Postpaid anddata-only prepaid include subscribers, voice-onlyintegrating subscribers, both and voice and data. subscribers withmonth in service arrears. Prepaid subscribersoverage plans cannot charges incur in usage excess of and/or their plan limits or account balance. of 90 days from the date of their last revenue-generating usage. telephone number. SUBSCRIBER CHURN Subscriber churn (churn) is a measurethat of the deactivated number of during subscribers subscriber base, a usually period calculatedchurn on as a measures a monthly basis. percentage ourcalculate Subscriber it of success by the indeactivated dividing total retaining (usually the in our numbersubscribers a at of subscribers. the month) beginning Wireless of We subscribers by thefor period. a that When the period used or aggregate greater reported than numbers one of mont Homes passed (Cable) Homes passed are representedthat by either the are total Cable numberthe of subscribers addresses or are ability non-subscribers,geographical but area. to have When there accessdwelling, is such more as our an thansubscriber, apartment one or cable building, unit has each the in ability unit services, to aas that access single our is an cable within a services, individual Cable issuch counted home as a hospitals passed. or hotels, Institutional defined are each or considered one commercial home passed. units, • When there is more than one unit in a single dwelling, such as an • Cable Ignite TV and Internet subscribers• include Subscriber only counts those exclude certain business services delivered Subscriber count (Cable) • Cable Ignite TV and Internet subscribers are represented by a • We report wireless subscribers in two categories: postpaid and • Usage and overage charges for postpaid subscribers are billed a • Wireless prepaid subscribers are considered active for a period Subscriber count (Wireless) • A wireless subscriber is represented by each identifiable SUBSCRIBER COUNTS We determine the number ofactive subscribers to our subscribers. services basedvoluntarily on When or involuntarily subscribersdeactivations for in non-payment, are the period theysubscriber deactivated, the are counts services to considered are measure either discontinued.ability our core We to business use benefit performance frompassed and recurring (Cable) revenue as a streams.within measure We a for defined use geographical our area. homes potential market penetration MANAGEMENT’S DISCUSSION AND ANALYSIS

TOTAL SERVICE REVENUE RETURN ON ASSETS We use total service revenue to measure our core business We use return on assets to measure our efficiency in using our performance from the provision of services to our customers assets to generate net income. We calculate return on assets by separate from revenue generated from the sale of equipment we dividing net income for the year by total assets as at year-end. have acquired from device manufacturers and resold. Included in this metric is our retail revenue from Today’s Shopping Choice and the Toronto Blue Jays, which are also core to our business. We calculate total service revenue by subtracting equipment revenue from total revenue.

DIVIDEND PAYOUT RATIOS We calculate the dividend payout ratio by dividing dividends declared for the year by net income or free cash flow for the year. We use dividends as a percentage of net income and free cash flow to conduct analysis and assist with determining the dividends we should pay.

90 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 91 | Long-term debt divided by net income Long-term debt Cash provided by operating activities Net income Basic and diluted earnings per share Net income Most comparable IFRS financial measure ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT Adjusted net debt (defined above) divided by 12-month trailing adjusted EBITDA (defined above). Total long-term debt add (deduct) current portion of long-term debt; deferred transaction costs and discounts; net debt derivative (assets) liabilities; credit risk adjustment related to net debt derivatives; current portion of lease liabilities; lease liabilities; bank advances (cash and cash equivalents); and short-term borrowings. Adjusted EBITDA deduct capital expenditures; interest on borrowings net of capitalized interest; and cash income taxes. Adjusted net income: Net income add (deduct) restructuring, acquisition and other; loss (recovery) on sale orof wind investments; down loss (gain) on disposition of property, plant and equipment; (gain) on acquisitions; loss on non-controlling interest purchase obligations; loss on repayment of long-term debt; loss on bond forward derivatives; and income tax adjustments on these items, including adjustments as a result of legislative changes. Adjusted basic and diluted earnings per share: Adjusted net income and adjusted net income including the dilutive effect of stock-based compensation divided by basic and diluted weighted average shares outstanding. Adjusted EBITDA: Net income add (deduct) income tax expense (recovery); finance costs; depreciation and amortization; other expense (income); restructuring, acquisition and other; and loss (gain) on disposition of property, plant and equipment. Adjusted EBITDA margin: Adjusted EBITDA divided by revenue (or service revenue for Wireless). , lending institutions, and credit rating agencies as indicators of ve standard meanings under IFRS, so may not be reliable ways to e measures. These are reviewed regularly by management and the and as measurements to value companies in the telecommunications alysis and make decisions about alysis and make decisions about To conductcapital valuation-related structure. an We believe thisand helps equity investors value and and assess our analysts leverage. analyze our enterprise To conductcapital valuation-related structure. an We believe thisand helps equity investors value and and assess our analysts leverage. analyze our enterprise To show how much cashin we have our available to repay company,strength debt and and which performance. reinvest isWe an believe important thatvalue some indicator a business investors of and its and underlying our analysts assets. financial use free cash flow to To assess the performance ofnoted our businesses items, before the because effectsresults of they the and affect could potentially theperformance. distort comparability the Excluding analysis of of these our trendsnon-recurring. financial in items business does not imply that they are To evaluate thedecisions performance of about our theability businesses, to ongoing generate and cash operations when flows. We of making believe the that certain business investorsmeasure and and analysts our use our adjusted ability EBITDAobligations. to to serviceWe also debt use it and ascompensation one to for component all in management meet determining employees. short-term incentive other payment • • • • • • • • • • Non-GAAP measure or related performance measure How and why we use it How we calculate it Debt leverage ratio Adjusted net debt Free cash flow Adjusted net income Adjusted basic and diluted earnings per share Adjusted EBITDA Adjusted EBITDA margin sector. These are not recognized measures under GAAP and do not ha our operating performance, of our ability to incur and servicecompare debt, us to other companies. NON-GAAP MEASURES AND RELATED PERFORMANCE MEASURES We use the following non-GAAP measures and related performanc Board in assessing our performancecash and flows. making Some decisions or all regarding of the these ongoing measures operations may of also our be business used and by its investors ability to generate MANAGEMENT’S DISCUSSION AND ANALYSIS

RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED RECONCILIATION OF FREE CASH FLOW EBITDA MARGIN Years ended December 31 Years ended December 31 (In millions of dollars) 2020 2019

(In millions of dollars) 2020 2019 Cash provided by operating activities 4,321 4,526 Net income 1,592 2,043 Add (deduct): Add (deduct): Capital expenditures (2,312) (2,807) Income tax expense 580 712 Interest on borrowings, net of capitalized Other expense (income) 1 (10) interest (761) (727) Finance costs 881 840 Interest paid 808 779 Restructuring, acquisition and other 185 139 Restructuring, acquisition and other 185 139 Depreciation and amortization 2,618 2,488 Program rights amortization (77) (77) Change in net operating assets and Adjusted EBITDA 5,857 6,212 liabilities 1 333 462 Other adjustments 1 (131) (17)

Years ended December 31 Free cash flow 2,366 2,278

(In millions of dollars, except percentages) 2020 2019 1 As a result of the growth of our financing receivable program and the ways in which we manage our business, effective this quarter and retroactively, we have reclassified the Adjusted EBITDA 5,857 6,212 “net change in contract asset balances” and the “net change in financing receivable Divided by: total revenue 13,916 15,073 balances” into “change in net operating assets and liabilities”. Additionally, certain Adjusted EBITDA margin 42.1% 41.2% 2019 reported figures have been reclassified to conform to the current presentation.

RECONCILIATION OF DIVIDEND PAYOUT RATIO OF FREE RECONCILIATION OF ADJUSTED NET INCOME CASH FLOW Years ended December 31 Years ended December 31

(In millions of dollars) 2020 2019 (In millions of dollars, except percentages) 2020 2019 Net income 1,592 2,043 Dividends declared during the year 1,010 1,022 Add (deduct): Divided by: free cash flow 2,366 2,278 Restructuring, acquisition and other 185 139 Loss on repayment of long-term debt – 19 Dividend payout ratio of free cash flow 42.7% 44.9% Income tax impact of above items (49) (43) Income tax adjustment, legislative tax change (3) (23) RECONCILIATION OF ADJUSTED NET DEBT AND DEBT Adjusted net income 1,725 2,135 LEVERAGE RATIO

As at As at RECONCILIATION OF ADJUSTED EARNINGS PER SHARE December 31 December 31

Years ended December 31 (In millions of dollars) 2020 2019 (In millions of dollars, except per share amounts; number of shares outstanding in millions) 2020 2019 Current portion of long-term debt 1,450 – Long-term debt 16,751 15,967 Adjusted basic earnings per share: Deferred transaction costs and discounts 172 163 Adjusted net income 1,725 2,135 Divided by: weighted average number of 18,373 16,130 shares outstanding 505 512 Add (deduct): Netdebtderivativeassets (1,086) (1,383) Adjusted basic earnings per share $3.42 $4.17 Credit risk adjustment related to net debt Adjusted diluted earnings per share: derivative assets (15) (31) Adjusted net income 1,725 2,135 Short-term borrowings 1,221 2,238 Effect on net income of dilutive securities (7) (6) Current portion of lease liabilities 278 230 Lease liabilities 1,557 1,495 Diluted adjusted net income 1,718 2,129 Cash and cash equivalents (2,484) (494) Dividedby:dilutedweightedaveragenumber of shares outstanding 506 513 Adjusted net debt 17,844 18,185

Adjusted diluted earnings per share $3.40 $4.15 As at As at December 31 December 31

(In millions of dollars, except ratios) 2020 2019

Adjusted net debt 17,844 18,185 Divided by: trailing 12-month adjusted EBITDA 5,857 6,212

Debt leverage ratio 3.0 2.9

92 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 93 | Total Total 2019 2019 2,043 5,117 5,964 15,073 31,902 21,639 2020 2020 6,929 1,592 6,586 13,916 31,925 22,694 1 1 (215) 2019 2019 (1,916) (1,306) (56,453) (28,198) (58,065) r co-obligor, as the case may be, ROGERS COMMUNICATIONS INC. adjustments adjustments Consolidating Consolidating (187) 2020 2020 (1,487) (1,278) (56,512) (27,744) (58,139) 1 1 184 138 2019 2019 2,159 3,710 8,278 10,552 dentified below, presented with a separate 2020 ANNUAL REPORT subsidiaries subsidiaries 171 152 Non-guarantor Non-guarantor 2020 2020 1,703 9,929 3,650 9,294 1,2 1 2019 4,938 2019 24,447 26,342 29,201 1,732 RCCI RCCI 13,129 edit and letter of credit facilities, and derivatives are unsecured 2020 a combined basis, (iv) consolidating adjustments, and (v) the total 5,080 2020 1,316 26,326 24,835 28,167 12,400 1 1 – 2019 2019 26,571 30,048 26,550 17,869 2,043 – 2020 2020 1,592 27,186 31,184 27,264 18,740 financial information for RCI for the periods i ary companies are accounted for by the equity method. Net income (loss) Revenue Current assets Non-current assets Current liabilities Non-current liabilities under any of RCI’s long-term debt. Amounts recorded in current liabilities and non-current liabilities for RCCI do not include any obligations arising as a result of being a guarantor o For the purposes of this table, investments in subsidi Selected Statements of Income data measure: Selected Statements of Financial Position data measure: column for: (i) RCI,consolidated amounts, (ii) is RCCI, set forth (iii) as follows: our non-guarantor subsidiaries on (In millions of dollars) (In millions of dollars) 2 1 As at December 31 (unaudited) RCI obligations of RCI, as obligor, and RCCI, as eitherThe co-obligor selected or guarantor, unaudited as consolidating applicable. summary Years ended December 31 (unaudited) RCI SUMMARY OF FINANCIAL RESULTS OF LONG-TERM DEBTOur GUARANTOR outstanding public debt, amounts drawn on our $3.3 billion bank cr MANAGEMENT’S DISCUSSION AND ANALYSIS

FIVE-YEAR SUMMARY OF CONSOLIDATED FINANCIAL RESULTS

As at or years ended December 31 (In millions of dollars, except per share amounts, subscriber count results, churn, ABPU, ARPU, percentages, and ratios) 2020 2019 2018 1 2017 2 2016 3 Revenue Wireless 8,530 9,250 9,200 8,569 7,916 Cable 3,946 3,954 3,932 3,894 3,871 Media 1,606 2,072 2,168 2,153 2,146 Corporate items and intercompany eliminations (166) (203) (204) (247) (231) Total revenue 13,916 15,073 15,096 14,369 13,702 Total service revenue 4 11,955 12,965 12,974 12,550 13,027 Adjusted EBITDA 5 Wireless 4,067 4,345 4,090 3,726 3,262 Cable 1,935 1,919 1,874 1,819 1,773 Media 51 140 196 127 159 Corporate items and intercompany eliminations (196) (192) (177) (170) (163) Total adjusted EBITDA 5,857 6,212 5,983 5,502 5,031 Net income 1,592 2,043 2,059 1,845 835 Adjusted net income 5 1,725 2,135 2,241 1,902 1,432 Cash provided by operating activities 4,321 4,526 4,288 3,938 3,957 Free cash flow 5 2,366 2,278 2,134 1,685 1,705 Capital expenditures 2,312 2,807 2,790 2,436 2,352 Earnings per share Basic $3.15 $ 3.99 $ 4.00 $ 3.58 $ 1.62 Diluted $3.13 $ 3.97 $ 3.99 $ 3.57 $ 1.62 Adjusted earnings per share 5 Basic $3.42 $ 4.17 $ 4.35 $ 3.69 $ 2.78 Diluted $3.40 $ 4.15 $ 4.34 $ 3.68 $ 2.77 Statements of Financial Position: Assets Property, plant and equipment 14,018 13,934 11,780 11,143 10,749 Goodwill 3,973 3,923 3,905 3,905 3,905 Intangible assets 8,926 8,905 7,205 7,244 7,130 Investments 2,536 2,830 2,134 2,561 2,174 Other assets 9,401 7,427 6,894 5,637 4,384 Total assets 38,854 37,019 31,918 30,490 28,342 Liabilities and Shareholders’ Equity Long-term liabilities 22,695 21,639 16,903 16,111 17,960 Current liabilities 6,586 5,964 6,836 6,883 5,113 Total liabilities 29,281 27,603 23,739 22,994 23,073 Shareholders’ equity 9,573 9,416 8,179 7,496 5,269 Total liabilities and shareholders’ equity 38,854 37,019 31,918 30,490 28,342 Subscriber count results (in thousands) 4 Wireless subscribers 6 10,943 10,840 10,783 10,482 10,274 Internet subscribers 7,8 2,598 2,534 2,430 2,321 2,145 Ignite TV subscribers 9 544 326 n/a n/a n/a Customer relationships 7,8,9 2,530 2,510 n/a n/a n/a Additional Wireless metrics 4 Postpaid churn (monthly) 1.00% 1.11% 1.10% 1.20% 1.23% Blended ABPU (monthly) 10 $ 63.24 $ 66.23 $ 64.74 $ 62.31 n/a Blended ARPU (monthly) $ 50.75 $ 55.49 $ 55.64 $ 54.23 $ 60.42 Additional Cable metrics ARPA (monthly) 9 $130.70 $131.71 n/a n/a n/a Penetration 9 55.3% 56.1% n/a n/a n/a Additional consolidated metrics Revenue growth (8)% –% 5% 5% 2% Adjusted EBITDA growth (6)% 4% 9% 9% 1% Dividends declared per share $2.00 $ 2.00 $ 1.92 $ 1.92 $ 1.92 Dividend payout ratio of net income 4 63.4% 50.0% 48.0% 53.6% 118.3% Dividend payout ratio of free cash flow 4,5 42.7% 44.9% 55.8% 58.6% 57.9% Return on assets 4 4.1% 5.5% 6.5% 6.1% 2.9% Debt leverage ratio 5 3.0 2.9 2.5 2.7 3.0

1 2018 and prior reported figures have not been restated applying IFRS 16. See “Accounting Policies”. 2 2017 reported figures have been restated applying IFRS 15. 3 Amounts calculated on a basis consistent with our previous revenue recognition accounting policies prior to adopting IFRS 15. 4 As defined. See “Key Performance Indicators”. 5 Adjusted EBITDA, adjusted net income, and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS, and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate them and the ratios in which they are used. 6 Effective October 1, 2019, and on a prospective basis, we reduced our Wireless postpaid subscriber base by 53,000 subscribers to remove a low-ARPU public services customer that was in the process of migrating to another service provider. We believe adjusting our base for a customer of this size that migrates off our network provides a more meaningful reflection of the underlying organic performance of our Wireless business. Effective April 1, 2019, we adjusted our Wireless prepaid subscriber base to remove 127,000 subscribers as a result of a change to our deactivation policy from 180 days to 90 days to be more consistent within the industry. 7 On September 30, 2020, we acquired approximately 2,000 Internet subscribers and customer relationships as a result of our acquisition of Ruralwave Inc., which are not included in net additions, but do appear in the ending total balance for 2020. 8 On October 1, 2020, we acquired approximately 5,000 Internet subscribers and 6,000 customer relationships as a result of our acquisition of Cable Cable Inc., which are not included in net additions, but do appear in the ending total balance for December 31, 2020. 9 Ignite TV subscribers, customer relationships, ARPA, and penetration have not been presented for periods prior to 2018. We commenced using the aforementioned measures as key performance indicators in the first quarter of 2020. See “Key Performance Indicators”. 10 Blended ABPU has not been presented for periods prior to 2017. We commenced using blended ABPU as a key performance indicator in the first quarter of 2018. See “Key Performance Indicators”.

94 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 95 | ROGERS COMMUNICATIONS INC. Anthony Staffieri, FCPA, FCA Chief Financial Officer esponsibility through its Audit and for shareholder approval. 2020 ANNUAL REPORT reviewing and approving the consolidated financialBoard statements. The of Directors carriesand Risk out Committee. this r The Audit and Risk Committeeas meets well regularly with as management, controls the over the internal financial and reportingfinancial process, reporting external auditing issues; matters, auditors, to and satisfydischarging to itself discuss that each its internal partyconsolidated is financial properly statements, responsibilities; and the externalThe and auditors’ Audit report. and Risk toDirectors Committee reports for its review its findingsfinancial to consideration statements MD&A, the for when Board issuance to of approving the the Risk shareholders. the Committee The also Audit consolidated considers and the engagementof or the re-appointment external auditorsthe before Board of submitting Directors its for review recommendation to The consolidated financial statements have beenLLP, audited the by external KPMG auditors, inPublic accordance Company with Accounting the standardsbehalf Oversight of Board the of (United thereporting States) as on shareholders. of Our DecemberLLP, 31, internal in 2020 control accordance hasAccountability been with Oversight over audited Board the financial by (Unitedand States). standards KPMG free KPMG access of to LLP the has the Audit full and Risk Public Committee. Company March 4, 2021 Joe Natale President and Chief Executive Officer olidated financial statements nancial statements of Rogers dAnalysis(MD&A)arethe n all material respects, Rogers ing and is ultimately responsible for preparation of consolidated financial statements; and properly accounted for and safeguarded. The accompanying consolidatedCommunications Inc. fi and its subsidiariesManagement’s and all the information Discussion in an Management’s Responsibility for Financial Reporting December 31, 2020 responsibility of managementBoard and of Directors. have been approvedManagement by has the prepared the cons The Board of Directors is responsibleresponsibility for for overseeing financial management’s report in accordance with Internationalissued Financial Reporting by Standardsconsolidated the as financial statements International include certainbased Accounting amounts on that Standards management’s are their best Board. estimates opinion, The andCommunications judgments present Inc.’s and, financial position, fairly, in resultscash of i operations, flows. and Managementpresented has elsewhere in prepared MD&A and the haswith the ensured financial consolidated that financial information it statements. is consistent Management has developedcontrols and maintains that a furtherfinancial system enhances statements. The of system the of internal internal integritythe controls is of supported by the internalcommunication consolidated to employees about its auditconduct. policies on ethical business functionManagement and believes these internalassurance that: includes controls provide reasonable • management transactions are properly authorized• and recorded; financial records are reliable and• form the a assets of proper Rogers Communications basis Inc. and for its subsidiaries the are CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Rogers Critical Audit Matter Communications Inc. The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial Opinion on the Consolidated Financial Statements statements that was communicated or required to be We have audited the accompanying consolidated statements of communicated to the Audit and Risk Committee and that: financial position of Rogers Communications Inc. (the Company) as (1) relates to accounts or disclosures that are material to the of December 31, 2020 and 2019, the related consolidated consolidated financial statements and (2) involved our especially statements of income, comprehensive income, changes in challenging, subjective, or complex judgments. The shareholders’ equity, and cash flows for each of the years in the communication of critical audit matters does not alter in any way two-year period ended December 31, 2020, and the related notes our opinion on the consolidated financial statements, taken as a (collectively, the consolidated financial statements). In our opinion, whole, and we are not, by communicating the critical audit matter the consolidated financial statements present fairly, in all material below, providing a separate opinion on the critical audit matter or respects, the financial position of the Company as of December 31, on the accounts or disclosures to which it relates. 2020 and 2019, and its financial performance and its cash flows for each of the years in the two-year period ended December 31, Recoverability of the carrying value of goodwill in the Media 2020, in conformity with International Financial Reporting segment Standards as issued by the International Accounting Standards As discussed in Note 9 to the consolidated financial statements, the Board. Company tests goodwill for impairment once per year as of October 1, or more frequently if they identify indicators of We also have audited, in accordance with the standards of the impairment. Goodwill is impaired if the recoverable amount of a Public Company Accounting Oversight Board (United States) cash-generating unit (CGU) or group of cash-generating units (PCAOB), the Company’s internal control over financial reporting as (CGUs) that contain goodwill is less than the carrying amount. The of December 31, 2020, based on criteria established in Internal Company makes judgments in determining CGUs and the Control – Integrated Framework (2013) issued by the Committee of allocation of goodwill for the purpose of impairment testing. Sponsoring Organizations of the Treadway Commission, and our Goodwill is monitored at an operating segment level in the Media report dated March 4, 2021 expressed an unqualified opinion on segment. The goodwill balance in the Media segment as of the effectiveness of the Company’s internal control over financial December 31, 2020 was $955 million. A number of businesses reporting. within the Company’s Media segment are partially reliant on traditional advertising revenues, are subject to a highly competitive Basis for Opinion environment and continue to have profitability challenges due to These consolidated financial statements are the responsibility of declining advertising revenue growth rates and increasing costs of the Company’s management. Our responsibility is to express an producing and/or providing content. The estimate of the opinion on these consolidated financial statements based on our recoverable amount, which is determined based on the higher of audits. We are a public accounting firm registered with the PCAOB fair value less costs to sell and value in use, is based on significant and are required to be independent with respect to the Company estimates developed by the Company relating to future cash flows, in accordance with the U.S. federal securities laws and the the terminal growth rate, and the discount rate applied in its applicable rules and regulations of the Securities and Exchange valuation model. Commission and the PCAOB. We identified the assessment of the recoverability of the carrying We conducted our audits in accordance with the standards of the value of goodwill in the Media segment as a critical audit matter. PCAOB. Those standards require that we plan and perform the There was a high degree of auditor judgment applied in assessing audit to obtain reasonable assurance about whether the the level at which goodwill was tested and in evaluating the key consolidated financial statements are free of material misstatement, assumptions used in the valuation models, which included the whether due to error or fraud. Our audits included performing CGUs’ future cash flows, the discount rate and the terminal growth procedures to assess the risks of material misstatement of the rate. consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such The following are the primary procedures we performed to address procedures included examining, on a test basis, evidence this critical audit matter. We evaluated the design and tested the regarding the amounts and disclosures in the consolidated operating effectiveness of certain internal controls related to the financial statements. Our audits also included evaluating the Company’s impairment testing process, including controls related accounting principles used and significant estimates made by to the determination that goodwill should be tested at the Media management, as well as evaluating the overall presentation of the segment level and the key assumptions used in estimating the consolidated financial statements. We believe that our audits recoverable amount of the Media segment. We compared the provide a reasonable basis for our opinion. Company’s historical cash flow forecasts to actual results achieved

96 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 97 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT w forecasts used to estimate the Chartered Professional Accountants, Licensed Public Accountants We have served as the Company’sToronto, auditor Canada since 1969. March 4, 2021 to assess theresults. We Company’s compared the ability cashrecoverable flo to accurately amountassumptions forecast used to financial to determineflows approved the Media by segment’s plans. comparing futuremarket cash to We underlying andprofessionals documentation assessed with specialized relevant and skills the and external evaluating knowledge, industry who the assisted discount in rate, data.to by comparing the We the discount Company’sentities, inputs independently involved rate developing a to rangerates valuation of publicly and reasonable comparing discount those available to thegrowth data Company’s rate, rate for and for the terminal comparable thedocumentation Media and publicly segment, available bysensitivity market comparing data. analyses to We over underlying performed thedetermine the Company’s recoverable amount key to assess assumptionsin the used impact those of to changes assumptionsrecoverable amount. on the Company’s determination of the CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Rogers internal control over financial reporting was maintained in all Communications Inc. material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control Opinion on Internal Control Over Financial Reporting over financial reporting, assessing the risk that a material weakness We have audited Rogers Communications Inc.’s internal control over exists, and testing and evaluating the design and operating financial reporting as of December 31, 2020, based on criteria effectiveness of internal control based on the assessed risk. Our established in Internal Control – Integrated Framework (2013) issued audit also included performing such other procedures as we by the Committee of Sponsoring Organizations of the Treadway considered necessary in the circumstances. We believe that our Commission. In our opinion, Rogers Communications Inc. (the audit provides a reasonable basis for our opinion. Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on Definition and Limitations of Internal Control Over Financial criteria established in Internal Control – Integrated Framework Reporting (2013) issued by the Committee of Sponsoring Organizations of the A company’s internal control over financial reporting is a process Treadway Commission. designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for We also have audited, in accordance with the standards of the external purposes in accordance with generally accepted Public Company Accounting Oversight Board (United States) accounting principles. A company’s internal control over financial (PCAOB), the consolidated statements of financial position of the reporting includes those policies and procedures that (1) pertain to Company as of December 31, 2020 and 2019, the related the maintenance of records that, in reasonable detail, accurately consolidated statements of income, comprehensive income, and fairly reflect the transactions and dispositions of the assets of changes in shareholders’ equity, and cash flows for each of the the company; (2) provide reasonable assurance that transactions years in the two-year period ended December 31, 2020, and the are recorded as necessary to permit preparation of financial related notes (collectively, the consolidated financial statements), statements in accordance with generally accepted accounting and our report dated March 4, 2021 expressed an unqualified principles, and that receipts and expenditures of the company are opinion on those consolidated financial statements. being made only in accordance with authorizations of management and directors of the company; and (3) provide Basis for Opinion reasonable assurance regarding prevention or timely detection of The Company’s management is responsible for maintaining unauthorized acquisition, use, or disposition of the company’s effective internal control over financial reporting and for its assets that could have a material effect on the financial statements. assessment of the effectiveness of internal control over financial reporting, included under the heading Management’s Report on Because of its inherent limitations, internal control over financial Internal Control over Financial Reporting contained within reporting may not prevent or detect misstatements. Also, Management’s Discussion and Analysis for the year ended projections of any evaluation of effectiveness to future periods are December 31, 2020. Our responsibility is to express an opinion on subject to the risk that controls may become inadequate because the Company’s internal control over financial reporting based on of changes in conditions, or that the degree of compliance with the our audit. We are a public accounting firm registered with the policies or procedures may deteriorate. PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the Chartered Professional Accountants, Licensed Public Accountants PCAOB. Those standards require that we plan and perform the Toronto, Canada audit to obtain reasonable assurance about whether effective March 4, 2021

98 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 99 | 139 840 712 (10) 2019 2,043 2,755 8,861 2,488 15,073 $3.99 $3.97 1 185 881 580 2020 1,592 2,172 8,059 2,618 13,916 $3.15 $3.13 ROGERS COMMUNICATIONS INC. 5 6 10 11 12 13 14 14 Note 7, 8, 9 2020 ANNUAL REPORT Basic Finance costs Depreciation and amortization Restructuring, acquisition and other Diluted Operating costs Earnings per share: Other expense (income) Net income for the year Income tax expense Income before income tax expense Revenue The accompanying notes are an integral part of the consolidated financial statements. Years ended December 31 Consolidated Statements of Income (In millions of Canadian dollars, except per share amounts) Operating expenses: CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Comprehensive Income (In millions of Canadian dollars)

Years ended December 31 Note 2020 2019 Net income for the year 1,592 2,043 Other comprehensive (loss) income: Items that will not be reclassified to net income: Defined benefit pension plans: Remeasurements 23 (121) (159) Related income tax recovery 32 40 Defined benefit pension plans (89) (119) Equity investments measured at fair value through other comprehensive income (FVTOCI): (Decrease) increase in fair value 18 (302) 737 Related income tax recovery (expense) 40 (104) Equity investments measured at FVTOCI (262) 633 Items that will not be reclassified to net income (351) 514

Items that may subsequently be reclassified to net income: Cash flow hedging derivative instruments: Unrealized (loss) gain in fair value of derivative instruments (320) 66 Reclassification to net income of loss on debt derivatives 286 458 Reclassification to net income or property, plant and equipment of gain on expenditure derivatives (36) (61) Reclassification to net income for accrued interest (49) (46) Related income tax recovery (expense) 50 (29) Cash flow hedging derivative instruments (69) 388 Share of other comprehensive loss of equity-accounted investments, net of tax (5) (8) Items that may subsequently be reclassified to net income (74) 380 Other comprehensive (loss) income for the year (425) 894 Comprehensiveincomefortheyear 1,167 2,937

The accompanying notes are an integral part of the consolidated financial statements.

100 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 101 | – 76 36 48 494 101 704 452 460 756 191 224 230 As at 2019 5,117 1,234 5,964 3,033 3,923 2,238 1,495 3,437 9,416 2,376 8,905 2,830 1,478 13,934 15,967 37,019 27,603 37,019 December 31 42 61 516 748 346 243 336 278 479 533 344 As at 2020 6,929 6,586 2,484 2,714 3,973 1,221 1,450 1,557 1,149 3,196 9,573 2,856 8,926 2,536 1,378 16,751 14,018 38,854 29,281 38,854 ROGERS COMMUNICATIONS INC. December 31 9 5 8 8 5 9 15 19 21 20 21 22 13 24 27 28 15 16 17 18 17 7, 8 Note 17, 20 19, 24 2020 ANNUAL REPORT Robert J. Gemmell Director Accounts receivable Current portion of lease liabilities Other current assets Current portion of derivative instruments Current portion of contract assets Contract liabilities Current portion of long-term debt Cash and cash equivalents Other current liabilities Income tax payable Accounts payable and accrued liabilities Inventories Short-term borrowings Property, plant and equipment Total current assets Deferred tax liabilities Provisions Other long-term assets Goodwill Total current liabilities Assets Current assets: Edward S. Rogers Director On behalf of the Board of Directors: Commitments and contingent liabilities Subsequent events The accompanying notes are an integral part of the consolidated financial statements. Consolidated Statements of Financial(In Position millions of Canadian dollars) Long-term debt Total assets Other long-term liabilities Total liabilities Total liabilities and shareholders’ equity Investments Derivative instruments Financing receivables Intangible assets Lease liabilities Liabilities and shareholders’ equity Current liabilities: Shareholders’ equity Guarantees CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Changes in Shareholders’ Equity (In millions of Canadian dollars, except number of shares)

Class A Class B Voting Shares Non-Voting Shares Number Number FVTOCI Equity Total of shares of shares Retained investment Hedging investment shareholders’ Year ended December 31, 2020 Amount (000s) Amount (000s) earnings reserve reserve reserve equity Balances, January 1, 2020 71 111,154 397 393,771 7,419 1,265 263 1 9,416 Net income for the year – – – – 1,592 – – – 1,592 Other comprehensive (loss) income: Defined benefit pension plans, net of tax – – – – (89) – – – (89) FVTOCI investments, net of tax – – – – – (262) – – (262) Derivative instruments accounted for as hedges, net of tax – – – – – – (69) – (69) Share of equity-accounted investments, net of tax – – – – – – – (5) (5) Total other comprehensive (loss) income – – – – (89) (262) (69) (5) (425) Comprehensive income (loss) for the year – – – – 1,503 (262) (69) (5) 1,167 Reclassification to retained earnings for disposition of FVTOCI investments – – – – 4 (4) – – – Transactions with shareholders recorded directly in equity: Dividends declared – – – – (1,010) – – – (1,010) Total transactions with shareholders – – – – (1,010) – – – (1,010) Balances, December 31, 2020 71 111,154 397 393,771 7,916 999 194 (4) 9,573

Class A Class B Voting Shares Non-Voting Shares Number Number FVTOCI Equity Total of shares of shares Retained investment Hedging investment shareholders’ Year ended December 31, 2019 Amount (000s) Amount (000s) earnings reserve reserve reserve equity Balances, January 1, 2019 71 111,155 406 403,657 7,159 636 (125) 9 8,156 Net income for the period – – – – 2,043 – – – 2,043 Other comprehensive income (loss): Defined benefit pension plans, net of tax – – – – (119) – – – (119) FVTOCI investments, net of tax – – – – – 633 – – 633 Derivative instruments accounted for as hedges, net of tax – – – – – – 388 – 388 Share of equity-accounted investments, net of tax – – – – – – – (8) (8) Total other comprehensive income (loss) – – – – (119) 633 388 (8) 894 Comprehensive income (loss) for the year – – – – 1,924 633 388 (8) 2,937 Reclassification to retained earnings for disposition of FVTOCI investments 4 (4) Transactions with shareholders recorded directly in equity: Repurchase of Class B Non-Voting Shares – – (9) (9,887) (646) – – – (655) Dividends declared – – – – (1,022) – – – (1,022) Share class exchange (1) – 1 – – – – – Total transactions with shareholders – (1) (9) (9,886) (1,668) – – – (1,677) Balances, December 31, 2019 71 111,154 397 393,771 7,419 1,265 263 1 9,416

The accompanying notes are an integral part of the consolidated financial statements.

102 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 103 | 89 21 77 82 30 (35) (60) (61) (75) (19) 494 175 405 840 712 (779) (400) (167) (462) (655) (121) 2019 4,526 2,043 6,167 2,184 2,488 (4,612) (2,807) (1,016) (1,731) – – 80 77 13 (37) (49) (57) (23) 119 227 494 881 580 (808) (418) (103) (213) (333) 2020 1,990 2,484 4,321 1,592 5,880 2,540 2,618 (2,558) (2,312) (1,146) (1,011) ROGERS COMMUNICATIONS INC. 9 9 8 9 19 21 17 21 24 24 11 13 23 29 7, 29 Note 7, 8, 9 2020 ANNUAL REPORT its that have an original maturity of less than 90 days, less bank ed to capital expenditures and intangible ash provided by operating activities: ransactions, net of cash acquired Other Income tax expense Post-employment benefits contributions, net of expense Depreciation and amortization Finance costs Program rights amortization assets liabilities, income taxes paid, and interest paid Acquisitions and other strategic t Net (repayment of) proceeds received on short-term borrowings Changes in non-cash working capital relat Principal payments of lease liabilities Additions to program rights Other Capital expenditures Interest paid Repurchase of Class B Non-Voting Shares Other Income taxes paid Adjustments to reconcile net income to c Net income for the year Dividends paid Transaction costs incurred Change in net operating assets and liabilities Cash provided by operating activities before changes in net operating assets and Net proceeds (payments) on settlement of debt derivatives and forward contracts Net issuance of long-term debt Cash and cash equivalentsadvances. are defined as cash and short-term depos Financing activities: Cash provided by financing activities Change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Investing activities: Cash provided by operating activities Cash used in investing activities The accompanying notes are an integral part of the consolidated financial statements. Operating activities: Years ended December 31 Consolidated Statements of Cash(In Flows millions of Canadian dollars) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Notes to Consolidated Financial Statements

We, us, our, Rogers, Rogers Communications, and the Company refer to Rogers Communications Inc. and its subsidiaries. RCI refers to the legal entity Rogers Communications Inc., not including its subsidiaries. Rogers also holds interests in various investments and ventures. Page Note Page Note 104 Note 1 Nature of the Business 122 Note 16 Inventories 105 Note 2 Significant Accounting Policies 122 Note 17 Financial Risk Management and Financial 107 Note 3 Capital Risk Management Instruments 108 Note 4 Segmented Information 132 Note 18 Investments 109 Note 5 Revenue 133 Note 19 Short-Term Borrowings 111 Note 6 Operating Costs 135 Note 20 Provisions 112 Note 7 Property, Plant and Equipment 136 Note 21 Long-Term Debt 114 Note 8 Leases 139 Note 22 Other Long-Term Liabilities 115 Note 9 Intangible Assets and Goodwill 139 Note 23 Post-Employment Benefits 118 Note 10 Restructuring, Acquisition and Other 142 Note 24 Shareholders’ Equity 119 Note 11 Finance Costs 143 Note 25 Stock-Based Compensation 119 Note 12 Other Expense (Income) 145 Note 26 Related Party Transactions 119 Note 13 Income Taxes 146 Note 27 Guarantees 121 Note 14 Earnings Per Share 147 Note 28 Commitments and Contingent Liabilities 122 Note 15 Accounts Receivable 149 Note 29 Supplemental Cash Flow Information

NOTE 1: NATURE OF THE BUSINESS

Rogers Communications Inc. is a diversified Canadian See note 4 for more information about our reportable operating communications and media company. Substantially all of our segments. operations and sales are in Canada. RCI is incorporated in Canada and its registered office is located at 333 Bloor Street East, Toronto, BUSINESS SEASONALITY Ontario, M4W 1G9. RCI’s shares are publicly traded on the Toronto Our operating results generally vary from quarter to quarter as a Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock result of changes in general economic conditions and seasonal Exchange (NYSE: RCI). fluctuations, among other things, in each of our reportable We report our results of operations in three reportable segments. segments. This means our results in one quarter are not necessarily Each segment and the nature of its business is as follows: indicative of how we will perform in a future quarter. Wireless, Cable, and Media each have unique seasonal aspects to, and Segment Principal activities certain other historical trends in, their businesses, which are described below. Fluctuations in net income from quarter to Wireless Wireless telecommunications operations quarter can also be attributed to losses on the repayment of debt, for Canadian consumers and businesses. other income and expenses, impairment of assets, and changes in Cable Cable telecommunications operations, income tax expense. including Internet, television, telephony The COVID-19 pandemic (COVID-19) has significantly affected our (phone), and smart home monitoring operating results in 2020 in addition to the typical seasonal services for Canadian consumers and fluctuations in our business that are described below. In Wireless, businesses, and network connectivity the decline in customer travel due to global travel restrictions through our fibre network and data centre resulted in lower roaming revenue. Most notably in Media, major assets to support a range of voice, data, professional sports leagues: networking, hosting, and cloud-based • postponed their 2019-20 seasons between March and July 2020 services for the business, public sector, and recommenced with contracted seasons from July to and carrier wholesale markets. September 2020, causing sports-related revenue and expenses, such as programming rights amortization, to be recognized later Media A diversified portfolio of media properties, in the year than is typical; and including sports media and entertainment, • postponed the start of the 2020-21 NBA and NHL seasons to television and radio broadcasting, late December 2020 and early January 2021, causing sports- specialty channels, multi-platform related revenue and expenses that are typically recognized in the shopping, and digital media. fourth quarter to not be recognized at that point. During the year ended December 31, 2020, Wireless and Cable We expect COVID-19 will continue to affect our operating results in were operated by our wholly owned subsidiary, Rogers 2021 and there is continued uncertainty surrounding the duration Communications Canada Inc. (RCCI), and certain other wholly and potential outcomes of COVID-19. owned subsidiaries. Media was operated by our wholly owned subsidiary, Rogers Media Inc., and its subsidiaries.

104 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 105 | ROGERS COMMUNICATIONS INC. related government responses, e” (2020 – $1,031 million, 2019 – ntract assets based on changing 2020 ANNUAL REPORT year), with postseasonadvertising games revenue commanding andticket additional a sales revenue premium and from merchandise in Blue game Jays sales, play day if in the and postseason; and when the Toronto expensed based on the numberapplicable; of and games aired or played, as months (generally the first andplayoff fourth quarters of the games year) and (generally are the concentrated secondcorrelation between quarter in the quality ofthe of the extent the revenue of Canadian and teams’ year). spring earnings presence during and We the months playoffs; expectthe a timing of when theconsumed; and rights are aired or are expected to be concentrated in theplayoff fall, games winter,revenue. commanding and spring a months, premium with in advertising $72 million); assets” to “accounts receivabl • programming and production costs and player payroll are • regular season games are concentrated in the fall and winter • programming and production costs are expensed based on • advertising revenue and programming expenses are On March 11, 2020, the Worldoutbreak Health of Organization recognized COVID-19 the asmonitoring a related developments pandemic and and theDue we impact on have to our been business. the closely outcomes uncertainty of the surrounding COVID-19 pandemic,continuously the and changing impacts the duration and unpredictable and and there potential isexpectations, more and uncertainty estimates.affected estimates We associated are believe relatedallowance with for the to doubtful our accounts our most and expectedDecember as significantly a credit assumptions, result, losses 31, for the and $90 year ended 2020, million infinancing we bad receivables, have debt and expense co recognized on our an accounts incremental receivable, STATEMENT OF COMPLIANCE We prepared our consolidatedwith financial International statements Financial in Reporting accordance Standardsthe (IFRS) International as Accounting issued Standards by BoardDirectors (IASB). The (the Board of statements Board) for issue on authorized March 4, 2021. these consolidated financial ESTIMATION UNCERTAINTY economic conditions. Reclassifications As a result ofthe the growth ways of our inended financing which receivable December program 31, we and 2020certain manage and retroactively, our balances we business, havePosition in and reclassified effective our Consolidated our the Statements of year Consolidated Cash Flows. On Statements our Consolidated Statements of of Financial• Financial Position, we reclassified have: current financing receivables from “other current • the (NHL) season, where: s on a historical cost basis, except e customers do not generally have and advertising are concentratedfall in the months spring, (generally summer, the and second and third quarters of the fall months (generallyyear); the second and third quarters of the measured at fair value; described in note 23; and fair value as disclosed in note 25. • revenue related to game day ticket sales, merchandise sales, • games played are concentrated in the spring, summer, and advertising and related retail cycles, whichin tend the to fourth be most quarter active duefirst quarter; to holiday spending and slower in the vacations or seasonal relocations; and quarter. out early in the second quarteras and students canceling moving their in service late ascable in well service; the third quarter and signing up for All amounts are infunctional Canadian dollars currency unlessconsolidated otherwise is financial noted. statement the Our for: Canadian dollar.• We certain financial prepare instruments as the disclosed in• note the 17, which net are deferred• pension liabilities for liability, stock-based compensation, which which are measured is at measured as NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (a) BASIS OF PRESENTATION • the season, where: Media Seasonal fluctuations relate to: • periods of increased consumer activity and their impact on any unique seasonal aspects. Cable results from our enterpris • individuals temporarily• suspending the concentrated service marketing we generally for conduct in our extended fourth Cable Cable’s operatingfluctuations, typically results caused by: are• university affected and college by students who modest live seasonal in residences moving Wireless Wireless operating resultsmarketing are and influenced promotionalsubscriber by additions, expenditures resulting the in higher and timingactivation-related subscriber acquisition- higher of and expenses, our levelsquarters. typically of The third in andvolumes fourth quarters the of typically activity experienceseason-related third higher consumer as behaviour. and Aggressive a promotionalare offers result fourth often of advertised during “backsee these lower to periods. subscriber-related activity In school” in contrast, the and we first quarter typically holiday ofThe the year. launch of newwireless products device and services, models,activity. including Highly can popular anticipated device new also launchesseason typically affect occur of in each the the fall year.customer level Wireless travel of roaming revenue volumes subscriber foreign is exchange and rates dependent and general on timing, economic conditions. and is also impacted by NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

• separately disclosed the long-term portion of “financing (e) GOVERNMENT GRANTS receivables” reclassified from “other long-term assets” (2020 – We recognize government financial assistance as a deduction from $748 million, 2019 – $76 million); the related expense when there is reasonable assurance that we will • reclassified the long-term portion of “contract assets” to “other comply with the conditions of the assistance and the assistance will be long-term assets” (2020 – $88 million, 2019 – $557 million); and received. During the year ended December 31, 2020, we qualified for • reclassified derivative instrument liabilities to “other current $91 million of funding associated with the Canada Emergency Wage liabilities” and “other long-term liabilities”, as applicable. Subsidy (CEWS) program, a federal government initiative offered to eligible employers who kept individuals employed during COVID-19. On our Consolidated Statements of Cash Flows, we have As at December 31, 2020, we had received $82 million; we expect to reclassified the “net change in contract asset balances” (2020 – receive the remaining $9 million in early 2021. $1,170 million, 2019 – $(204) million) and the “net change in financing receivable balances” (2020 – $1,658 million, 2019 – (f) NEW ACCOUNTING PRONOUNCEMENTS ADOPTED IN $(120) million) to “change in net operating assets and liabilities”. 2020 We adopted the following IFRS amendments in 2020. They did not (b) BASIS OF CONSOLIDATION have a material effect on our financial statements. Subsidiaries are entities we control. We include the financial • Amendments to IFRS 9, Financial Instruments, IAS 39, Financial statements of our subsidiaries in our consolidated financial Instruments: Recognition and Measurement,andIFRS7,Financial statements from the date we gain control of them until our control Instruments: Disclosures, Interest Rate Benchmark Reform, ceases. We eliminate all intercompany transactions and balances detailing the fundamental reform of major interest rate between our subsidiaries on consolidation. benchmarks being undertaken globally to replace or redefine Inter-Bank Offered Rates (IBORs) with alternative nearly risk-free (c) FOREIGN CURRENCY TRANSLATION benchmark rates (referred to as “IBOR reform”). There is significant We translate amounts denominated in foreign currencies into uncertainty over the timing of when the replacements for IBORs Canadian dollars as follows: will be effective and what those replacements will be. We will • monetary assets and liabilities – at the exchange rate in effect as actively monitor the IBOR reform and consider circumstances as at the date of the Consolidated Statements of Financial Position; we renew or enter into new financial instrument contracts. • non-monetary assets and liabilities, and related depreciation and • Changes to the Conceptual Framework, seeking to provide amortization – at the historical exchange rates; and improvements to concepts surrounding various financial • revenue and expenses other than depreciation and amortization reporting considerations and existing IFRS standards. – at the average rate for the month in which the transaction was • Amendments to IAS 1, Presentation of Financial Statements and recognized. IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, clarifying the definition of “material”. (d) BUSINESS COMBINATIONS We account for business combinations using the acquisition (g) RECENT ACCOUNTING PRONOUNCEMENTS NOT YET method of accounting. Only acquisitions that result in our gaining ADOPTED IN 2020 control over the acquired businesses are accounted for as business The IASB has issued the following new standards that will become combinations. We possess control over an entity when we effective in a future year and could have an impact on our conclude we are exposed to variable returns from our involvement consolidated financial statements in future periods: with the acquired entity and we have the ability to affect those • IAS 37, Provisions, Contingent Liabilities and Contingent Assets – returns through our power over the acquired entity. Onerous Contracts, specifying costs an entity should include in determining the “cost of fulfilling” a potential onerous contract. We calculate the fair value of the consideration paid as the sum of • IFRS 17, Insurance Contracts, a replacement of IFRS 4, Insurance the fair value at the date of acquisition of the assets we transferred Contracts, that aims to provide consistency in the application of and the equity interests we issued, less the liabilities we assumed to accounting for insurance contracts. acquire the subsidiary. • Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS We measure goodwill as the fair value of the consideration 9, IAS 39, and IFRS 7), addressing issues that might affect transferred less the net recognized amount of the identifiable financial reporting after the reform of an interest rate benchmark. assets acquired and liabilities assumed, which are generally • Amendments to IAS 1, Presentation of Financial Statements – measured at fair value as of the acquisition date. When the excess Classification of Liabilities as Current or Non-current,clarifying is negative, a gain on acquisition is recognized immediately in net requirements for the classification of liabilities as non-current. income. • Amendments to IAS 16, Property Plants and Equipment: Proceeds before intended use, prohibiting reducing the cost of We expense the transaction costs associated with acquisitions as property, plant, and equipment by proceeds while bringing an we incur them. asset to capable operations. During the year ended December 31, 2020, we made several • Amendments to IFRS 3, Business Combinations – Updating a individually immaterial acquisitions and recognized $50 million of Reference to the Conceptual Framework, updating a reference to related goodwill, all of which has been allocated to our Cable the Conceptual Framework. operating segment. • Amendments to IFRS 16, Leases, allowing lessees to not assess whether a COVID-19-related rent concession is a lease modification.

106 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 107 | ROGERS COMMUNICATIONS INC. idated financial statements; enue, and expenses. Our significant 2020 ANNUAL REPORT have a significant risk ofamounts resulting recognized in in the a consol material adjustment to the policies that haverecognized the in the most consolidated financial significant statements; and effect on the amounts We monitor debtliquidity leverage and ratios shareholders’ as return tothe part sustain of future business, the development of decisions management about conduct of capital. valuation-relatedThe analyses, wholly andprograms owned make subsidiary areSuperintendent through operated of which isminimum Financial our regulated Institutions, level creditsubsidiary which by of card requires was the regulatoryDecember that in 31, capital Office a 2020 be and of compliancematerial 2019. maintained. the The with to capitalDecember Rogers’ requirements 31, that 2019. the are not requirement CompanyWith as the as exception at of our atthrough credit which card they programs December are andimposed operated, the capital we subsidiary 31, requirements. are not Ourmanagement 2020 subject overall has not to strategy changed externally or since for December capital 31, 2019. risk report as assets, liabilities,accounting rev policies, estimates, and judgmentsnote are identified or in disclosed this throughoutbelow, including: the notes as• identified in information about the assumptions table and estimation uncertainties that • information about judgments made in applying• accounting information on our significant accounting policies. , will have an effect ated financial statements, edness (including the current s, our investment priorities, and Insurance Contracts Note Topic45 Reportable7 Segments Revenue8 Recognition Property,9 Plant and Equipment Leases13 Intangible14 Assets and Goodwill Income Taxes15 Earnings Per Share16 Accounts Receivable17 Inventories18 Financial Instruments20 Investments 112 10823 Provisions25 109 Post-Employment Benefits Page 11528 Accounting Stock-Based Policy Compensation X X Use Commitments of and Estimates Contingent Liabilities Use of Judgments X X 121 119 122 114 147 X 122 X X X X X 139 122 X 143 X 132 X X X 135 X X X X X X X X X X X X X X X X X X working capital requirements.structure, To we maintain may, ordebt with and/or short-term adjust approval borrowings, from issue our ordividends, the repurchase capital shares, or Board, pay issue undertakeunder or other the repay activities circumstances. asannual The deemed capital Board appropriate andtransactions reviews operating that and are budgets, approves notincluding as the part proposals well of the astransactions, for investments, ordinary or any divestitures. acquisitions course material of or business, other major financing Our objectives in managing capitalavailable are to liquidity ensure to we meet haveour sufficient all of our business commitmentsshareholders’ and plan. to equity execute Weportion and define indebt ofborrowings, capital our the current that long-termliabilities). portion we of debt, our manage lease long-term liabilities,We as and debt, manage lease our short-term and capital make structure, adjustments commitments,financial based and markets, on maturities operating general risk economic conditions, NOTE 3: CAPITAL RISK MANAGEMENT Whenmanagement preparing makes judgments, estimates,affect our and how assumptions accounting that policies consolid are applied and the amounts we (h) ADDITIONAL SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES, AND JUDGMENTS We do not expect IFRS 17, on our consolidatedimpacts, financial if statements. any, the Wehave remaining on are new our assessing consolidated standards financial ornotexpectanymaterialimpacts. the statements, amendments but will we currently do NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4: SEGMENTED INFORMATION

ACCOUNTING POLICY USE OF ESTIMATES AND JUDGMENTS Reportable segments JUDGMENTS We determine our reportable segments based on, among other We make significant judgments in determining our operating things, how our chief operating decision maker, the Chief Executive segments. These are components that engage in business activities Officer and Chief Financial Officer of RCI, regularly review our from which they may earn revenue and incur expenses, for which operations and performance. They review adjusted EBITDA as the operating results are regularly reviewed by our chief operating key measure of profit for the purpose of assessing performance of decision makers to make decisions about resources to be allocated each segment and to make decisions about the allocation of and assess component performance, and for which discrete resources, as they believe adjusted EBITDA reflects segment and financial information is available. consolidated profitability. Adjusted EBITDA is defined as income before depreciation and amortization; (gain) loss on disposition of EXPLANATORY INFORMATION property, plant and equipment; restructuring, acquisition and Our reportable segments are Wireless, Cable, and Media (see note other; finance costs; other expense (income); and income tax 1). All three segments operate substantially in Canada. Corporate expense. items and eliminations include our interests in businesses that are We follow the same accounting policies for our segments as those not reportable operating segments, corporate administrative described in the notes to our consolidated financial statements. functions, and eliminations of inter-segment revenue and costs. We account for transactions between reportable segments in the Segment results include items directly attributable to a segment as same way we account for transactions with external parties, but well as those that can be allocated on a reasonable basis. eliminate them on consolidation.

INFORMATION BY SEGMENT

Corporate Year ended December 31, 2020 items and Consolidated (In millions of dollars) Note Wireless Cable Media eliminations totals

Revenue 5 8,530 3,946 1,606 (166) 13,916 Operating costs 6 4,463 2,011 1,555 30 8,059 Adjusted EBITDA 4,067 1,935 51 (196) 5,857

Depreciation and amortization 7, 8, 9 2,618 Restructuring, acquisition and other 10 185 Finance costs 11 881 Other expense 12 1 Income before income tax expense 2,172

Capital expenditures 7, 29 1,100 940 79 193 2,312 Goodwill 9 1,160 1,858 955 – 3,973 Total assets 20,639 7,877 2,569 7,769 38,854

Corporate Year ended December 31, 2019 items and Consolidated (In millions of dollars) Note Wireless Cable Media eliminations totals

Revenue 5 9,250 3,954 2,072 (203) 15,073 Operating costs 6 4,905 2,035 1,932 (11) 8,861 Adjusted EBITDA 4,345 1,919 140 (192) 6,212

Depreciation and amortization 7, 8, 9 2,488 Restructuring, acquisition and other 10 139 Finance costs 11 840 Other income 12 (10) Income before income tax expense 2,755

Capital expenditures 1 7, 29 1,320 1,153 102 232 2,807 Goodwill 9 1,160 1,808 955 – 3,923 Total assets 20,105 7,891 2,550 6,473 37,019

1 Includes proceeds on disposition of $38 million (see note 29).

108 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 109 | ROGERS COMMUNICATIONS INC. into “other long-term assets” on nsfer of wireless devices. Our long- 2020 ANNUAL REPORT activation or purchase by the end customer n the related games are played during the baseball season Timing of satisfaction of the performance obligation As the service is provided (usually monthly) As the service is provided displayed on our digital properties When the services are delivered tosubscribers cable (usually and monthly) satellite providers’ and when goods are sold In the applicable period, when the amount is determinable distinct good or service.can modify We their also contract determine withinnot predefined whether able terms a to such that customer enforcecontractually we the are enforce transaction a price lowerwe agreed amount. allocate to, In but revenue situations can betweenminimum such only performance as enforceable obligations these, usingamount rights is the recognized as and revenue as it obligations is earned. Revenue and for each any performance obligationtime is excess recognized (e.g. either over services)performance or obligations satisfied at over time,as a revenue the is point services recognized are inand provided. time These thus services (e.g. are revenueRevenue equipment). typically for is provided, For performance obligations typicallyrecognized satisfied at recognized, when a control on point ofcustomer. in a time Typically, the is this monthly item is (or(e.g. when basis. in service) the the customer transfers case activates to ofthe the goods a the (e.g. goods wireless other device) equipment). or has physical possession of Contract assets and liabilities We record aservices contract to asset our when customerthe but we our have performance right provided toperformance obligation related goods consideration obligations. and is for Contractrights conditional to assets consideration for primarily on the tra relateterm satisfying contract to assets other our areour grouped Consolidated Statements of Financial Position. bligations in our contracts with customers and when we recognize Revenue from contracts with on credit card receivables using ces and voice and data services). as follows: consideration provided by the customer; obligations in thevalues; and contract based on their relativeeach performance obligation. fair 1. identify2. the contract with a customer; identify3. the performance obligations in the determine contract; the4. transaction price, allocate the which transaction is price the among5. the total performance recognize revenue when the relevant criteria are met for Performance obligations from contracts with customers Wireless airtime, data, and other services;Internet, television, and telephony, smart home monitoring services;media network subscriptions; services; and rental of equipment Roaming, long-distance, and other optional orservices, non-subscription and pay-per-use services Wireless devices and related equipmentSubscriptions by television stations for subscriptionsand from satellite cable providers Toronto Blue Jays’ home game admission and concessionsToronto Upon Blue Jays revenue from theRevenue Major Sharing League Agreement, Baseball which redistributes fundsmember between clubs Whe based on each club’sleague relative revenue revenue, sharing and other Radio and television broadcast agreementsSublicensing of program rights When the related programs are aired Over the course of the applicable licence period Installation services for Cable subscribersAdvertising When the services are performed When the advertising airs on our radio or television stations or is Many ofarrangements (e.g. our wireless devi products and services are sold in bundled customers Items inperformance these obligations arrangements if are the accounted item meets for the as definition separate of a Contracts with customers We record revenue fromwith contracts with the customers five in accordance steps in IFRS 15, NOTE 5: REVENUE ACCOUNTING POLICY The table below summarizes theperformance on nature those of obligations. the various performance o We also recognize interest revenue the effective interest method in accordance with IFRS 9. Payment for Wirelessdue and Cable 30 monthlyequipment service days is fees typically due is after eitherover upon typically receipt billing. of the the equipment Payment subsequentthrough or our 24 for equipment financing months plans). WirelessMedia (when Payment terms and equipment for performance typical isToronto Cable Blue obligations Jays financed tickets) to range 30 days (e.g. from advertising contracts). immediate (e.g. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

We record a contract liability when we receive payment from a In determining the stand-alone selling price, we allocate revenue customer in advance of providing goods and services. This includes between performance obligations based on expected minimum subscriber deposits, deposits related to Toronto Blue Jays ticket enforceable amounts to which Rogers is entitled. Any amounts sales, and amounts subscribers pay for services and subscriptions above the minimum enforceable amounts are recognized as that will be provided in future periods. revenue as they are earned. A portion of our contract liabilities relates to discounts provided to JUDGMENTS customers on our device financing contracts (see note 15). Due to We make significant judgments in determining whether a promise the allocation of the transaction price to the performance to deliver goods or services is considered distinct, in determining obligations, the financing receivable we recognize is greater than the costs that are incremental to obtaining or fulfilling a contract the related equipment revenue. As a result, we recognize a with a customer, and in determining whether our residual value contract liability simultaneously with the financing receivable and arrangements constitute revenue-generating arrangements or equipment revenue and subsequently reduce the contract liability leases. on a monthly basis.

We account for contract assets and liabilities on a Distinct goods and services contract-by-contract basis, with each contract presented as either a We make judgments in determining whether a promise to deliver netcontractassetoranetcontractliabilityaccordingly. goods or services is considered distinct. We account for individual products and services separately if they are distinct (i.e. if a product Deferred commission cost assets or service is separately identifiable from other items in the bundled We defer, to the extent recoverable, the incremental costs we incur package and if the customer can benefit from it). The consideration to obtain or fulfill a contract with a customer and amortize them is allocated between separate products and services in a bundle over their expected period of benefit. These costs include certain based on their stand-alone selling prices. For items we do not sell commissions paid to internal and external representatives that we separately, we estimate stand-alone selling prices using the believe to be recoverable through the revenue earned from the adjusted market assessment approach. related contracts. We therefore defer them as deferred commission cost assets in other assets and amortize them to operating costs Determining costs to obtain or fulfill a contract over the pattern of the transfer of goods and services to the Determining the costs we incur to obtain or fulfill a contract that customer, which is typically evenly over either 12 or 24 consecutive meet the deferral criteria within IFRS 15 requires us to make months. significant judgments. We expect incremental commission fees paid to internal and external representatives as a result of obtaining USE OF ESTIMATES AND JUDGMENTS contracts with customers to be recoverable. ESTIMATES We use estimates in the following key areas: Residual value arrangements • determining the transaction price of our contracts requires Under certain customer offers, we allow customers to defer a estimating the amount of revenue we expect to be entitled to for component of the device cost until contract termination. We use delivering the performance obligations within a contract; and judgment in determining whether these arrangements constitute • determining the stand-alone selling price of performance revenue-generating arrangements or leases. In making this obligations and the allocation of the transaction price between determination, we use judgment to assess the extent of control performance obligations. over the devices that passes to our customer, including whether the customer has a significant economic incentive at contract inception Determining the transaction price to return the device at contract termination. The transaction price is the amount of consideration that is enforceable and to which we expect to be entitled in exchange for EXPLANATORY INFORMATION the goods and services we have promised to our customer. We CONTRACT ASSETS determine the transaction price by considering the terms of the Below is a summary of our contract assets from contracts with contract and business practices that are customary within that customers and the significant changes in those balances during the particular line of business. Discounts, rebates, refunds, credits, price years ended December 31, 2020 and 2019. concessions, incentives, penalties, and other similar items are reflected in the transaction price at contract inception. Years ended December 31

Determining the stand-alone selling price and the allocation of the (In millions of dollars) 2020 2019 transaction price Balance, beginning of year 1,791 1,587 The transaction price is allocated to performance obligations based Additions from new contracts with on the relative stand-alone selling prices of the distinct goods or customers, net of terminations and services in the contract. The best evidence of a stand-alone selling renewals 104 1,653 price is the observable price of a good or service when the entity Amortization of contract assets to sells that good or service separately in similar circumstances and to accounts receivable (1,274) (1,449) similar customers. If a stand-alone selling price is not directly observable, we estimate the stand-alone selling price taking into Balance, end of year 621 1,791 account reasonably available information relating to the market conditions, entity-specific factors, and the class of customer.

110 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 111 | 14 (203) 2019 7,156 2,094 9,250 3,940 3,954 2,072 15,073 10 (166) 2020 6,579 1,951 8,530 3,936 3,946 1,606 13,916 ROGERS COMMUNICATIONS INC. Years ended December 31 2021 2022 2023 Thereafter Total 2020 ANNUAL REPORT Service revenue Equipment revenue Service revenue Equipment revenue contracts with a duration of one year or less; or revenue we recognize corresponds withthe the customer. amount invoiced to service 2,072 741 188 149 3,150 eliminations UNSATISFIED PORTIONS OF PERFORMANCE OBLIGATIONS The table below shows thefuture revenue we related expect toobligations to as recognize at in unsatisfied December the 31, 2020.transaction or The price unsatisfied of portion partially of the the performanceservices; obligations satisfied we relates expect to to performance monthly recognize it over the next three to five(In years. millions of dollars) Telecommunications We have elected tonot utilize disclose: the following• practical expedients the and unsatisfied portions of performance• obligations the related unsatisfied to portions of performance obligations where the DISAGGREGATION OF REVENUE (In millions of dollars) Wireless Total Wireless Cable Total revenue Total Cable Total Media Corporate items and intercompany 242 296 329 305 233 213 224 (320) (222) 2019 2019 2019 2,005 2,254 8,861 4,360 305 248 262 224 365 405 (291) (184) 261 2020 2020 2020 1,847 1,946 8,059 4,005 Years ended December 31 Years ended December 31 Years ended December 31 urrent assets (when they will be 1 assets commission cost assets recognized as revenue in current year customers stock-based compensation Net of government grants received (see note 2). 1 NOTE 6: OPERATING COSTS DEFERRED COMMISSION COST ASSETS Below is a summarycost of assets the recognized changesobtain in from the contracts the deferredDecember incremental commission 31, with costs 2020assets incurred customers are and presented to 2019. within during other The c deferred the commission cost years ended amortized into net income withinfinancial twelve statements) or months other of long-term the assets. date of the CONTRACT LIABILITIES Below iswith a customers summary andduring of the the our years significant contract ended changes December liabilities in 31, from those 2020 contracts and balances 2019. Cost of equipment sales (In millions of dollars) (In millions of dollars) (In millions of dollars) Total operating costs Merchandise for resale Other external purchases Balance, beginning of year Additions to deferred commission cost Amortization recognized on deferred Balance, end of year Balance, beginning of year Revenue deferred in previous year and Net additions from contracts with Balance, end of year Employee salaries, benefits, and NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7: PROPERTY, PLANT AND EQUIPMENT

ACCOUNTING POLICY USE OF ESTIMATES AND JUDGMENTS The following accounting policy applies to property, plant and ESTIMATES equipment excluding right-of-use assets recognized under IFRS 16. Components of an item of property, plant and equipment may Our accounting policies for right-of-use assets are included in have different useful lives. We make significant estimates when note 8. determining depreciation rates and asset useful lives, which require taking into account company-specific factors, such as our past Recognition and measurement, including depreciation experience and expected use, and industry trends, such as We measure property, plant and equipment upon initial technological advancements. We monitor and review residual recognition at cost and begin recognizing depreciation when the values, depreciation rates, and asset useful lives at least once a year asset is ready for its intended use. Subsequently, property, plant and change them if they are different from our previous estimates. and equipment is carried at cost less accumulated depreciation We recognize the effect of changes in estimates in net income and accumulated impairment losses. prospectively. Cost includes expenditures (capital expenditures) that are directly We use estimates to determine certain costs that are directly attributable to the acquisition of the asset. The cost of self- attributable to self-constructed assets. These estimates primarily constructed assets includes: include certain internal and external direct labour, overhead, and • the cost of materials and direct labour; interest costs associated with the acquisition, construction, • costs directly associated with bringing the assets to a working development, or betterment of our networks. condition for their intended use; Furthermore, we use estimates in determining the recoverable • expected costs of decommissioning the items and restoring the amount of property, plant and equipment. The determination of sites on which they are located (see note 20); and the recoverable amount for the purpose of impairment testing • borrowing costs on qualifying assets. requires the use of significant estimates, such as: We depreciate property, plant and equipment over its estimated • future cash flows; useful life by charging depreciation expense to net income as • terminal growth rates; and follows: • discount rates.

Estimated We estimate value in use for impairment tests by discounting Asset Basis useful life estimated future cash flows to their present value. We estimate the Buildings Diminishing balance 5 to 40 years discounted future cash flows for periods of up to five years, Cable and wireless network Straight-line 3 to 40 years depending on the cash-generating unit (CGU), and a terminal Computer equipment and Straight-line 4 to 10 years value. The future cash flows are based on our estimates and software expected future operating results of the CGU after considering Customer premise equipment Straight-line 3 to 6 years economic conditions and a general outlook for the CGU’s industry. Leasehold improvements Straight-line Over shorter of Our discount rates consider market rates of return, debt to equity estimated useful ratios, and certain risk premiums, among other things. The terminal life or lease term value is the value attributed to the CGU’s operations beyond the Equipment and vehicles Diminishing balance 3 to 20 years projected time period of the cash flows using a perpetuity rate based on expected economic conditions and a general outlook for We calculate gains and losses on the disposal of property, plant the industry. and equipment by comparing the proceeds from the disposal with We determine fair value less costs to sell in one of the following two the item’s carrying amount and recognize the gain or loss in net ways: income. • Analyzing discounted cash flows – we estimate the discounted We capitalize development expenditures if they meet the criteria future cash flows for five-year periods and a terminal value, for recognition as an asset and amortize them over their expected similar to the value in use methodology described above, while useful lives once the assets to which they relate are available for use. applying assumptions consistent with those a market participant We expense research expenditures, maintenance costs, and would make. Future cash flows are based on our estimates of training costs as incurred. expected future operating results of the CGU. Our estimates of future cash flows, terminal values, and discount rates consider Impairment testing, including recognition and measurement of an similar factors to those described above for value in use impairment charge estimates; or See “Impairment Testing” in note 9 for our policies relating to • Usingamarketapproach–weestimatetherecoverableamount impairment testing and the related recognition and measurement of the CGU using multiples of operating performance of of impairment charges. The impairment policies for property, plant comparable entities and precedent transactions in that industry. and equipment are similar to the impairment policies for intangible Wemakecertainassumptionswhenderivingexpectedfuturecash assets with finite useful lives. flows, which may include assumptions pertaining to discount and terminal growth rates. These assumptions may differ or change

112 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 113 | Net 716 461 312 481 1,851 8,089 2,108 12,167 14,018 amount amount carrying amount Net carrying Net carrying depreciation Accumulated Disposals and other Disposals and other ROGERS COMMUNICATIONS INC. Net Depreciation amount Cost carrying 1 2020 ANNUAL REPORT Acquisitions combinations Depreciation from business depreciation Accumulated 596 (281) 315 539 (250) 289 Cost Effect of 1,182 (461) 721 1,125 (428) 697 5,9031,963 (3,749)1,244 (1,387) 2,154 5,514 576 (776) 1,908 468 (3,305) 2,209 1,292 (1,279) 629 (810) 482 1,911 (175) 1,736 – – – 21,778 (13,814) 7,964 21,024 (13,550) 7,474 32,666 (20,468) 12,198 31,402 (19,622) 11,780 34,577 (20,643) 13,934 31,402 (19,622) 11,780 JUDGMENTS We makedepreciating our significant property, plantmost judgments and accurately equipment in represent thatfrom the we those choosing believe consumption assetssubstance of and methods of the are benefits intended use most derived for of the representative underlying of assets. the economic IFRS 16 transition Additions Net 716 461 312 481 8,089 2,108 1,851 12,167 14,018 amount carrying mounts of property, plant and equipment during 2020 and 2019. amount Additions amount Net carrying Net carrying depreciation Accumulated Cost Excludes proceeds on disposition of $38 million (see note 29). Land and buildingsCable and wireless networks 22,357 1,212 (14,268) (496) 1 (In millions of dollars) December 31, 2018 December 31, 2019 (In millions of dollars) December 31, 2019 December 31, 2020 The tables below summarize the changes in the net carrying a (In millions of dollars) December 31, 2020 December 31, 2019 December 31, 2018 EXPLANATORY INFORMATION The table below summarizes our property, plant and equipment as at December 31, 2020, 2019, and 2018. quickly depending on economictherefore conditions possible or othernegatively that events. affect It future future is could valuations result in changes of impairment losses. CGUs in and goodwill, assumptions which may Computer equipment and softwareCustomer premise equipmentLeasehold improvements 6,361Property, plant and equipment 1,976 (4,253) (1,515) 625 33,851 (21,684) (313) Equipment and vehicles 1,320 (839) Total property, plant and equipment 13,934 2,649 43 (2,607) (1) Right-of-use assets (note 8)Land and buildingsCable and wireless networksComputer equipment and softwareCustomer premise equipmentLeasehold improvementsEquipment and vehicles 1,736Property, plant and equipmentRight-of-use assets (note 8) 337Total property, plant and equipment 2,209 7,474 – 629 697 289 (217) 11,780 – 11,780 (95) 482 (5) 1,739 – 644 – – (95) 1,481 – (1,157) 236 (706) – 57 2,845 3,180 1,576 60 3 (292) 7 109 (2,297) (2,472) (34) 335 7,964 (33) (35) 2,154 3 (35) (75) 1 (175) 12,198 13,934 (1) 576 (48) 721 – 315 468 1,736 Land and buildingsCable and wireless networksComputer equipment and softwareCustomer premise equipmentLeasehold improvementsEquipment and vehiclesProperty, plant and equipment 2,154 7,964 653 576 1,334 721 315 12,198 165 30 468 37 2,312 4 32 98 – (747) (1,196) – 43 1 11 (17) (288) 1 (2,390) (37) (36) 8 4 2 (86) – – Total 36,099 (22,081) Right-of-use assets 2,248 (397) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Property, plant and equipment not yet in service and therefore not Annually, we perform an analysis to identify fully depreciated assets subject to depreciation as at December 31, 2020 was $848 million that have been disposed of. In 2020, this resulted in an adjustment (2019 – $1,320 million). During 2020, capitalized interest pertaining to cost and accumulated depreciation of $978 million (2019 – to property, plant and equipment was recognized at a weighted $1,159 million). The disposals had nil impact on the Consolidated average rate of approximately 3.7% (2019 – 3.9%). Statements of Income. In 2019, we disposed of certain assets with a net carrying amount of $38 million. We received total proceeds of $38 million for these assets.

NOTE 8: LEASES

ACCOUNTING POLICY Lease payments included in the measurement of the lease liability At inception of a contract, we assess whether that contract is, or include: contains, a lease. A contract is, or contains, a lease if the contract • fixed payments, including in-substance fixed payments; conveys the right to control the use of an identified asset for a • variable lease payments that depend on an index or rate; period of time in exchange for consideration. To assess whether a • amounts expected to be payable under a residual value contract conveys the right to control the use of an identified asset, guarantee; and we assess whether: • the exercise price under a purchase option that we are • the contract involves the use of an identified asset; reasonably certain to exercise, lease payments in an optional • we have the right to obtain substantially all of the economic renewal period if we are reasonably certain to exercise an benefits from use of the identified asset throughout the period extension option, and penalties for early termination of a lease of use; and unless we are reasonably certain not to terminate early. • wehavetherighttodirecttheuseoftheasset. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is LESSEE ACCOUNTING a change in our estimate of the amount expected to be payable We record a right-of-use asset and a lease liability at the lease under a residual value guarantee, or if we change our assessment commencement date. The right-of-use asset is initially measured at of whether or not we will exercise a purchase, extension, or cost, consisting of: termination option. When the lease liability is remeasured in this • the initial amount of the lease liability adjusted for any lease way, a corresponding adjustment is made to the carrying amount payments made at or before the commencement date; of the right-of-use asset. The lease liability is also remeasured when • any initial direct costs incurred; and the underlying lease contract is amended. • an estimate of costs to dismantle and remove the underlying We have elected not to separate fixed non-lease components and asset or restore the site on which it is located; less account for the lease and any fixed non-lease components as a • any lease incentives received. single lease component. The right-of-use asset is depreciated on a straight-line basis over the lease term, unless we expect to obtain ownership of the leased Variable lease payments asset at the end of the lease. The lease term consists of: Certain leases contain provisions that result in differing lease • the non-cancellable period of the lease; payments over the term as a result of market rate reviews or • periods covered by options to extend the lease, where we are changes in the Consumer Price Index (CPI)orothersimilarindices. reasonably certain to exercise the option; and We reassess the lease liabilities related to these leases when the • periods covered by options to terminate the lease, where we are index or other data is available to calculate the change in lease reasonably certain not to exercise the option. payments. If we expect to obtain ownership of the leased asset at the end of Certain leases require us to make payments that relate to property the lease, we depreciate the right-of-use asset over the underlying taxes, insurance, and other non-rental costs. These non-rental costs asset’s estimated useful life. In addition, the right-of-use asset is are typically variable and are not included in the calculation of the periodically reduced by impairment losses, if any, and adjusted for right-of-use asset or lease liability. certain remeasurements of the lease liability. LESSOR ACCOUNTING The lease liability is initially measured at the present value of lease When we act as a lessor, we determine at lease inception whether payments that are not paid at the commencement date, each lease is a finance lease or an operating lease. discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our incremental borrowing rate. We In order to classify each lease as either finance or operating, we generally use our incremental borrowing rate as the interest rate make an overall assessment of whether the lease transfers to the implicit in our leases cannot be readily determined. The lease lessee substantially all of the risks and rewards incidental to liability is subsequently measured at amortized cost using the ownership of the underlying asset. If it does, the lease is a finance lease; if not, it is an operating lease. effective interest rate method.

114 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 115 | 61 (49) 230 335 (167) 2019 1,725 1,495 1,725 1,545 70 (67) 320 278 (213) 2020 1,835 1,557 1,835 1,725 ROGERS COMMUNICATIONS INC. Years ended December 31 onably certain to exercise the cences, and certain brand names. 2020 ANNUAL REPORT purchase taxes, afterand deducting trade discounts and rebates; intended use. liabilities liabilities Net additions Interest expense on lease liabilities Interest payments on lease Principal payments of lease Lease liabilities, end of year Current liability Long-term liability Lease liabilities EXPLANATORY INFORMATION We primarily lease landcable and networks, buildings our relating retail to storeand our presence, wireless and other certain and ofequipment. our corporate offices The buildings, non-cancellabletypically as contract range periods from well for fiveduring as 2020 to our were fifteen $23 leases customer million years. (2019 – Variable premise $22 lease million). payments LEASE LIABILITIES Below is a summary ofthe twelve the months activity ended related December to 31,liabilities our 2020. Certain lease are of liabilities our secured for lease underlying by right-of-use the$240 assets underlying million as right-of-use have at December assets; 31, a 2020 the (2019 – net $114 million). carrying amount of (In millions of dollars) Lease liabilities, beginning of year Cost includes expendituresacquisition of that the asset. are The costasset of directly comprises: a separately attributable acquired intangible • to its the purchase price, including import duties and non-refundable • any directly attributable cost of preparingIndefinite useful lives the assetWe do not for amortize intangible its spectrum assets licences, with broadcast indefinite li lives, including Certain of our leases containexercisable extension or renewal only optionscommencement, that are we by assess whetherexercise us we any are and reasonably ofeconomic certain return the to from not the extension lease. Weof options by are exercising typically extension based reasonably options certain the on onour our networks, our leases, lessor. primarily especially expected related duerequired to At to to the relocate lease significant ourWe cost network reassess that towers whether would andoptions we be related if are equipment. there reas circumstance within is our control and a accountdate of for significant the any reassessment. changes event at the or significant change in ase and non-lease components, distinct asset or a capacity portion RECOGNITION AND MEASUREMENT, INCLUDING AMORTIZATION Upon initial recognition,unless they we are acquired measure throughcase a intangible business they combination, assets in which areamortization at on measured cost intangible assets atasset is with ready fair finite for its useful intended value.at lives use. Subsequently, when We the asset the cost is beginimpairment carried losses. recognizing less accumulated amortization and accumulated NOTE 9: INTANGIBLE ASSETS AND GOODWILL ACCOUNTING POLICY JUDGMENTS We make judgments in determining whethera a contract lease, is or which contains identified involves asset (either assessing a physically that whether a represents contractAdditionally, substantially contains the an allsubstantially contract all of of the should economic benefits the from provide the use capacityWe of us also the make asset. of judgments with in determiningto the whether the control we the have asset). the right use right we of to the have identified asset. thechanging We how have and decision-making that for right what rightswhere purpose when the the that asset decisions is about are used.used how In are rare most and predetermined, cases for we relevant what haveasset the purpose if to right we the to have asset the direct is asset right the to in use operate of a the the way assetasset or will that if be predetermines we used. designed how the and forWe what make purpose judgments in the determiningused the to incremental measure borrowing our rate leasean liability estimate for each of leaseborrowing the contract, rate including should asset-specific reflect security theto interest borrow impact. that the we The would fundsterm, incremental have with necessary a to to similar pay security, obtain in a a similar similar economic environment. asset at a similar USE OF ESTIMATES AND JUDGMENTS ESTIMATES We estimatecircumstances that the can create an leaseextension economic incentive option, term to or exercise an notcertain by exercise qualitative a and considering quantitative terminationvalue assumptions option. of when the the We economic deriving make incentive. the facts and We act as the lessorcertain on certain collocation leases,telecommunication regulatory whereby, due companies to tonetwork requirements, towers. lease We do spacethe we not on risks believe and we ourleased transfer must rewards wireless substantially asset incidental all to to of operating the allow leases. ownership lessee of and the other therefore underlying classifyIf an these arrangement contains leases both as le we apply IFRSbetween the 15 lease and to the non-lease allocate components. theWe recognize consideration lease payments received in underincome operating the on leases a into contract straight-line basis.lessor All are of classified the as operating leases leases. for which we act as NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Finite useful lives higher than an operating segment. The allocation of goodwill is We amortize intangible assets with finite useful lives, other than made to CGUs (or groups of CGUs) that are expected to benefit acquired program rights, into depreciation and amortization on the from the synergies of the business combination from which the Consolidated Statements of Income on a straight-line basis over goodwill arose. their estimated useful lives as noted in the table below. We monitor and review the useful lives, residual values, and amortization Recognition and measurement of an impairment charge methods at least once per year and change them if they are An intangible asset or goodwill is impaired if the recoverable different from our previous estimates. We recognize the effects of amount is less than the carrying amount. The recoverable amount changes in estimates in net income prospectively. of a CGU or asset is the higher of its: • fair value less costs to sell; and Intangible asset Estimated useful life • value in use. Customer relationships 3 to 10 years If our estimate of the asset’s or CGU’s recoverable amount is less than its carrying amount, we reduce its carrying amount to the recoverable amount and recognize the loss in net income Acquired program rights immediately. Program rights are contractual rights we acquire from third parties to broadcast programs, including rights to broadcast live sporting We reverse a previously recognized impairment loss, except in events. We recognize them at cost less accumulated amortization respect of goodwill, if our estimate of the recoverable amount of a and accumulated impairment losses. We capitalize program rights previously impaired asset or CGU has increased such that the on the Consolidated Statements of Financial Position when the impairment recognized in a previous year has reversed. The licence period begins and the program is available for use and reversal is recognized by increasing the asset’s or CGU’s carrying amortize them to other external purchases in operating costs on amount to our new estimate of its recoverable amount. The the Consolidated Statements of Income over the expected carrying amount of the asset or CGU subsequent to the reversal exhibition period. If we have no intention to air programs, we cannot be greater than its carrying amount had we not recognized consider the related program rights impaired and write them off. an impairment loss in previous years. Otherwise, we test them for impairment as intangible assets with finite useful lives. USE OF ESTIMATES AND JUDGMENTS The costs for multi-year sports and television broadcast rights ESTIMATES agreements are recognized in operating expenses during the We use estimates in determining the recoverable amount of applicable seasons based on the pattern in which the rights are intangible assets and goodwill. The determination of the aired or are expected to be consumed. To the extent that recoverable amount for the purpose of impairment testing requires prepayments are made at the commencement of a multi-year the use of significant estimates, such as: contract towards future years’ rights fees, these prepayments are • future cash flows; recognized as intangible assets and amortized to operating • terminal growth rates; and expenses over the contract term. To the extent that prepayments • discount rates. are made for annual contractual fees within a season, they are We estimate value in use for impairment tests by discounting included in other current assets on our Consolidated Statements of estimated future cash flows to their present value. We estimate the Financial Position, as the rights will be consumed within the next discounted future cash flows for periods of up to five years, twelve months. depending on the CGU, and a terminal value. The future cash flows are based on our estimates and expected future operating results Goodwill of the CGU after considering economic conditions and a general We recognize goodwill arising from business combinations when outlook for the CGU’s industry. Our discount rates consider market the fair value of the separately identifiable assets we acquired and rates of return, debt to equity ratios, and certain risk premiums, liabilities we assumed is lower than the consideration we paid among other things. The terminal value is the value attributed to (including the recognized amount of the non-controlling interest, if the CGU’s operations beyond the projected time period of the any). If the fair value of the consideration transferred is lower than cash flows using a perpetuity rate based on expected economic that of the separately identified assets and liabilities, we conditions and a general outlook for the industry. immediately recognize the difference as a gain in net income. We determine fair value less costs to sell in one of the following two ways: IMPAIRMENT TESTING • Analyzing discounted cash flows – we estimate the discounted We test intangible assets with finite useful lives for impairment future cash flows for five-year periods and a terminal value, whenever an event or change in circumstances indicates that their similar to the value in use methodology described above, while carrying amounts may not be recoverable. We test indefinite-life applying assumptions consistent with those a market participant intangible assets and goodwill for impairment once per year as at would make. Future cash flows are based on our estimates of October 1, or more frequently if we identify indicators of expected future operating results of the CGU. Our estimates of impairment. future cash flows, terminal values, and discount rates consider If we cannot estimate the recoverable amount of an individual similar factors to those described above for value in use intangible asset because it does not generate independent cash estimates; or inflows, we test the entire CGU to which it belongs for impairment. • Usingamarketapproach–weestimatetherecoverableamount of the CGU using multiples of operating performance of Goodwill is allocated to CGUs (or groups of CGUs) based on the comparable entities and precedent transactions in that industry. level at which management monitors goodwill, which cannot be

116 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 117 | 34 Net 151 234 136 amount carrying 8,775 8,926 3,973 8,371 12,899 amount Net carrying losses impairment 1 Accumulated ee note 6), and $11 million in ROGERS COMMUNICATIONS INC. amortization Accumulated losses impairment Net Cost prior to Net additions Amortization amount carrying 2020 ANNUAL REPORT 234136 – – – – losses 3,923 50 – 8,734 52 (11) amount impairment Accumulated Net carrying amortization Accumulated judgments to determineanalyzing that all relevant these factors,asset, assets including the the have typical expected life indefinite usage cyclethe of of lives, market the the demand asset, for andgenerate. the anticipated After products changes and in review servicesother of the factors, it asset the is helps competitive, ourlives view of legal, our that spectrum regulatory, these and factors broadcast and do licences. not limitJudgment the is useful also appliedintangible in choosing assets methods ofaccurately and represent amortizing the our consumption program ofrepresentative those assets of rights and the are most economic thatthe substance underlying assets. of we the intended believe useFinally, of most weallocation make of goodwill to judgments CGUsof or impairment groups in testing. of CGUs determining for the purpose CGUs and the 253 (77) (5) 171 251 (58) (5) 188 333420 (270) – (14) (99) 136 234 420 333 (270) – (14) 136 (99) 234 losses 1,611 (1,578)4,144 – – 33 1,609 (221) 3,923 (1,562) 4,126 – – 47 (221) 3,905 8,331 – – 8,331 6,600 – – 6,600 10,948 (1,925)15,092 (118) 8,905 (1,925) 9,213 (339) 12,828 (1,890) 13,339 (118) (1,890) 7,205 (339) 11,110 impairment Cost prior to g amounts of intangible assets and goodwill in 2020 and 2019. 34 Net 151 234 136 8,926 3,973 8,371 amount carrying 12,899 losses impairment Accumulated amortization Accumulated 233 (77) (5) 333420 (270) – (14) (99) losses 1,623 (1,589)4,194 – – (221) 8,371 – – 10,980 (1,936)15,174 (118) (1,936) (339) impairment Cost prior to relationships Acquired program rights Goodwill Spectrum licences Broadcast licences Brand names Customer and goodwill assets: assets: depreciation and amortization on the Consolidated Statements of Income. Of the $88 million of total amortization, $77 million related to acquired program rights is included in other external purchases in operating costs (s Acquired program rightsTotal intangible assetsGoodwill Total intangible assets and goodwill 12,828 171 8,905 159 57 109 (88) (77) (88) Spectrum licencesBroadcast licences Brand names Customer relationships 8,331 33 40 12 – (11) 1 (In millions of dollars) December 31, 2019 December 31, 2020 The tables below summarize the changes in the net carryin Total intangible assets Total intangible assets Finite-life intangible Indefinite-life intangible (In millions of dollars) December 31, 2020 December 31, 2019 December 31, 2018 EXPLANATORY INFORMATION The table below summarizes our intangible assets as at December 31, 2020, 2019, and 2018. JUDGMENTS We make significant judgments thatintangible affect assets the and measurement goodwill. of our Judgment is appliedand when broadcast licences deciding as assets to withbelieve designate indefinite the useful our lives licences since spectrum we arefuture likely such to that be thereassets renewed is for are no the limit expected foreseeable to to the period generate over net which these cash inflows. We make Wemakecertainassumptionswhenderivingexpectedfuturecash flows, which may includeterminal assumptions growth pertaining to rates. discountquickly These and depending assumptions on may economictherefore differ conditions possible or or othernegatively change that events. affect It future future is could valuations result in changes of impairment losses. CGUs in and goodwill, assumptions which may NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions of dollars) December 31, 2018 December 31, 2019 Net carrying Net Net carrying amount additions Amortization 1 amount Spectrum licences 6,600 1,731 – 8,331 Broadcast licences 234 – – 234 Brand names 136 – – 136 Customer relationships 47 2 (16) 33 7,017 1,733 (16) 8,734 Acquired program rights 188 60 (77) 171 Total intangible assets 7,205 1,793 (93) 8,905 Goodwill 3,905 18 – 3,923 Total intangible assets and goodwill 11,110 1,811 (93) 12,828

1 Of the $93 million of total amortization, $77 million related to acquired program rights is included in other external purchases in operating costs (see note 6), and $16 million in depreciation and amortization on the Consolidated Statements of Income.

ANNUAL IMPAIRMENT TESTING For purposes of testing goodwill for impairment, our CGUs, or groups of CGUs, correspond to our operating segments as disclosed in note 4. Below is an overview of the methods and key assumptions we used in 2020 to determine recoverable amounts for CGUs, or groups of CGUs, with indefinite-life intangible assets or goodwill that we consider significant.

(In millions of dollars, except periods used and rates) Carrying value Period of Carrying value of indefinite-life Recoverable projected cash Terminal growth Pre-tax discount of goodwill intangible assets amount method flows (years) rates (%) rates (%) Wireless 1,160 8,465 Value in use 5 0.5 8.4 Cable 1,858 – Value in use 5 1.5 7.8 Media 955 235 Fair value less cost to sell 5 2.0 9.6

Our fair value measurement for Media is classified as Level 3 in the We did not recognize an impairment charge related to our fair value hierarchy. goodwill or intangible assets in 2020 or 2019 because the recoverable amounts of the CGUs, or groups of CGUs, exceeded their carrying values.

NOTE 10: RESTRUCTURING, ACQUISITION AND OTHER

During the year ended December 31, 2020, we incurred targeted restructuring of our employee base. In 2019, these costs $185 million (2019 – $139 million) in restructuring, acquisition and were primarily severance costs associated with the targeted other expenses. In 2020, these costs were primarily incremental, restructuring of our employee base and contract termination and temporary employee compensation and other costs incurred in other costs. response to COVID-19 as well as severance costs associated with the

118 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 119 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT current tax assets andand liabilities liabilities will on be a realized and net settled simultaneously. basis or the tax assets USE OF ESTIMATES AND JUDGMENTS JUDGMENTS We makeregulations significant when judgments wejudgments in to calculate evaluate interpreting whether income webased can tax tax recover on a our rules expense. deferred assessment taxprofitability, asset We and of and tax existing planning make strategies. tax laws, estimates of future FOREIGN EXCHANGE AND CHANGE IN FAIRDERIVATIVE VALUE INSTRUMENTS OF We recognized $107 million in net(2019 foreign exchange – losses in $79 2020 primarily million attributed in net topaper (US gains). CP) our program These borrowings US (see losses note 17). dollar-denominated andThese gains commercial foreign were exchange losses$97 (2019 million – gain gains) related(2019 were to – offset the $80 change by millionderivatives, in the loss) which that fair were was value notpurposes, primarily of designated we attributed derivatives used as to to hedges the substantiallyrelated for debt offset to these the accounting US foreign dollar-denominated exchange borrowings. risk Deferred tax assetsenforceable and right to liabilities offset current arerelate tax to assets offset income and taxes levied liabilities if by and•thesametaxableentity;or the there they same authority is on: a• legally different taxable entities where these entities intendWe to recognize settle a deferredand tax deductible temporary asset differences forthat to future unused taxable the losses, income extent will tax be it available credits, is to use probable the asset. 21 19 80 25 61 11 (79) (19) (35) (10) 840 746 2019 2019 – 1 27 70 13 40 (97) (19) (39) 881 107 780 2020 2020 8 23 21 18 Note Note Years ended December 31 Years ended December 31 tements of Financial Position arise from temporary differences n short-term borrowings and on long-term 1 instruments liability ventures Interest on borrowings includes interestdebt. o Total finance costs Loss (gain) on foreign exchange Change in fair value of derivative Capitalized interest Other Other investment income Total other expense (income) Interest on post-employment benefits Loss on repayment of long-term debt between the carryingrecognize amounts on our ofand Consolidated their the respective Sta tax assets bases. Weliabilities and calculate using deferred liabilities enacted tax assets or we and apply substantively in enacted the years tax in ratesto which reverse. that the will temporary differences are expected NOTE 13: INCOME TAXES ACCOUNTING POLICY Income tax expense includes bothrecognize current income and tax deferred expense taxes. initem We net recognized income directly unless in it equity relatesWe or to provide other an for comprehensive income income. taxescurrently based available. on all of the information that is Current tax expense isour tax taxable we expect incomecurrent to or pay tax or loss receiveenacted expense during based as at on using the the reportingpayable date, year. tax or including receivable any We related adjustment rates to to previous calculate taxes years. enacted the Deferred or tax assets substantively and liabilities NOTE 12: OTHER EXPENSE (INCOME) 1 NOTE 11: FINANCE COSTS Losses from associates and joint (In millions of dollars) (In millions of dollars) Interest on borrowings Interest on lease liabilities NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

EXPLANATORY INFORMATION Below is a summary of the difference between income tax expense computed by applying the statutory income tax rate to income Years ended December 31 before income tax expense and the actual income tax expense for the year. (In millions of dollars) 2020 2019 Total current tax expense 712 269 Years ended December 31 Deferred tax (recovery) expense: (In millions of dollars, except tax rates) 2020 2019 (Reversal) origination of temporary 26.6% differences (129) 466 Statutory income tax rate 26.7% 2,172 Revaluation of deferred tax balances Income before income tax expense 2,755 due to legislative changes (3) (23) Computed income tax expense 578 736 Total deferred tax (recovery) expense (132) 443 Increase (decrease) in income tax expense resulting from: Total income tax expense 580 712 Non-deductible portion of equity losses 10 7 Income tax adjustment, legislative tax change (3) (23) Non-taxable portion of capital gains – (2) Other (5) (6) Total income tax expense 580 712 Effectiveincometaxrate 26.7% 25.8%

DEFERRED TAX ASSETS AND LIABILITIES Below is a summary of the movement of net deferred tax assets and liabilities during 2020 and 2019.

Property, Contract and plant and Goodwill Non-capital deferred Deferred tax assets (liabilities) equipment and other loss commission (In millions of dollars) and inventory intangibles Investments carryforwards cost assets Other Total December 31, 2019 (1,366) (1,318) (168) 12 (570) (27) (3,437) (Expense) recovery in net income (108) (129) (2) 4 387 (20) 132 Recovery in other comprehensive income – – 40 – – 82 122 Acquisitions (10) (3) – – – – (13) December 31, 2020 (1,484) (1,450) (130) 16 (183) 35 (3,196)

Property, Contract and plant and Goodwill Non-capital deferred Deferred tax assets (liabilities) equipment and other loss commission (In millions of dollars) and inventory intangibles Investments carryforwards cost assets Other Total December 31, 2018 (1,145) (1,192) (66) 29 (515) (21) (2,910) Effect of IFRS 16 adoption – – – – – 9 9 (Expense) recovery in net income (221) (126) 2 (17) (55) (26) (443) (Expense) recovery in other comprehensive income – – (104) – – 11 (93) December 31, 2019 (1,366) (1,318) (168) 12 (570) (27) (3,437)

120 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 121 | 1 512 513 2019 2,043 $3.99 $3.97 1 505 506 2020 1,592 $3.15 $3.13 ROGERS COMMUNICATIONS INC. Years ended December 31 seeable future. Reversing these ents using the equity-settled s for these temporary differences 2020 ANNUAL REPORT shares outstanding – basic restricted share units Weighted average number of Employee stock options and Basic Diluted year millions): outstanding – diluted (In millions of dollars, except per share amounts) EXPLANATORY INFORMATION taxable temporary differencessignificant tax is implications. not expected to result in any There areinvestments taxable in temporaryrecognize differences Canadian deferred tax associated domesticbecause liabilitie we with subsidiaries. are able our reversal We to is control not the do probable timing in of not the the fore reversal and the Numerator (basic) – Net income for the Denominator – Number of shares (in Effect of dilutive securities (in millions): Weighted average number of shares Earnings per share: For the years ended Decemberoutstanding 31, 2020 and 2019, share-based accounting for paym method for stock-basedmore dilutive compensation than was usingincome the determined for cash-settled the method. to As year$7 be a ended million result, December net (2019 31,calculation. – 2020 was $6 reduced million) by in theFor diluted the earnings yearoptions per ended out share December of the 31,calculation money 2020, of (2019 there – earnings 1,077,875) werefrom per the for 3,895,948 calculation share. purposes of of These thewere the effect anti-dilutive. options of dilutive were securities excluded because they 41 67 41 149 2019 43 67 82 192 2020 As at December 31 spectively) outstanding during jurisdictions between 2023 and 2039 Canada that can be applied againstcapital future gains Total unrecognized temporary differences Deductible temporary differences in foreign Tax losses in foreign jurisdictions that expire the year. We calculate dilutedincome earnings or loss pershareholders attributable and share the to weighted by Class averageand adjusting number A Class of the Class and B Adilutive Class Non-Voting net Shares B Shares potential outstanding Non-Voting method common for for calculating the shares. diluted effect earnings Wethe per of impact share, of use which all employee considers stock theinstruments. options and other treasury potentially dilutive stock Options with tandemalternatives stock appreciation are rights accountedawards or for can cash as be payment considered cash-settled exchanged potentially for awards. dilutive common and Asof are shares our these included diluted of in net RCI, the earningsin the per calculation they period. share are if they have a dilutive impact ACCOUNTING POLICY We calculate basic earningsor per share loss by attributable dividingNon-Voting the to shareholders net by our income the RCI weightedClass average A Class number Voting A and of RCI RCI and Voting Class Class and B Non-Voting B RCI shares Non-Voting (Class Class Shares, A B Shares re NOTE 14: EARNINGS PER SHARE Realized and accrued capital losses in We have not recognized deferred tax assets for the following items: (In millions of dollars) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15: ACCOUNTS RECEIVABLE

ACCOUNTING POLICY EXPLANATORY INFORMATION Accounts receivable represent amounts owing to us that are currently due and collectible, as well as amounts owed to us under As at December 31 device or accessory financing agreements that have not yet been (In millions of dollars) Note 2020 2019 billed. We initially recognize accounts receivable on the date they originate. We measure accounts receivable initially at fair value, and Customer accounts receivable 3,170 1,727 subsequently at amortized cost, with changes recognized in net Other accounts receivable 656 785 income. We measure an impairment loss for accounts receivable as Allowance for doubtful accounts 17 (222) (60) the excess of the carrying amount over the present value of future Total accounts receivable 3,604 2,452 cashflowsweexpecttoderivefromit,ifany.Theexcessisallocated to an allowance for doubtful accounts and recognized as a loss in Current 2,856 2,376 net income. Long-term 748 76 Total accounts receivable 3,604 2,452

The long-term portion of our accounts receivable is recorded within “financing receivables” on our Consolidated Statements of Financial Position and is composed of our financing receivables that will be billed to customers beyond the next 12 months.

NOTE 16: INVENTORIES

ACCOUNTING POLICY EXPLANATORY INFORMATION We measure inventories, including wireless devices and merchandise for resale, at the lower of cost (determined on a As at December 31 weighted average cost basis for wireless devices and accessories 2020 2019 and a first-in, first-out basis for other finished goods and (In millions of dollars) merchandise) and net realizable value. We reverse a previous Wireless devices and accessories 399 380 writedown to net realizable value, not to exceed the original Other finished goods and merchandise 80 80 recognized cost, if the inventories later increase in value. Total inventories 479 460

Cost of equipment sales and merchandise for resale includes $2,207 million of inventory costs for 2020 (2019 – $2,496 million).

NOTE 17: FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

ACCOUNTING POLICY Recognition We initially recognize cash and cash equivalents, bank advances, accounts receivable, financing receivables, debt securities, and accounts payable and accrued liabilities on the date they originate. All other financial assets and financial liabilities are initially recognized on the tradedatewhenwebecomeapartytothecontractualprovisionsoftheinstrument.

Classification and measurement We measure financial instruments by grouping them into classes upon initial recognition, based on the purpose of the individual instruments. We initially measure all financial instruments at fair value plus, in the case of our financial instruments not classified as fair value through profit and loss (FVTPL) or FVTOCI, transaction costs that are directly attributable to the acquisition or issuance of the financial instruments.

122 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 123 | 1 asured at FVTPL. Debt net income. accounting purposes, the effective ROGERS COMMUNICATIONS INC. ments of Financial Position when with no reclassification to net income 4 2020 ANNUAL REPORT FVTOCI and FVTPL Cross-currency interest rate exchange agreements Forward foreign exchange agreements Forward foreign exchange agreements and foreign exchange option agreements Total return swap agreements ecognition of our financial assets and financial liabilities are as We assess, on a quarterlycontinues basis, to be whether highly each effective hedgingvalue in instrument or offsetting cash flows the of changes the in item the it fair isWe hedging. assess host contracts in orderEmbedded to identify derivatives embedded are derivatives. accounted separated for from as the separate hostfinancial asset derivatives contract and if certain and criteria the are met. host contract is not a net amount on the Consolidated State rtain activities in which we are involved. They include: wings have not been designated as hedges for accounting purposes and are me ated as hedges for accounting purposes and are measured at FVTOCI. tuations in foreign exchange rates on mpensation expense or recovery in operating costs. recognized in the FVTOCI investment reserve. principal anddenominated interest senior notes paymentsfacility and for borrowings, debentures, credit commercial USand paper certain lease liabilities dollar- borrowings, forecast US dollar-denominated expenditures compensation expense 3 2 Bond forwardsExpenditure derivativesEquity derivatives FVTOCI FVTOCI FVTPL Bank advancesShort-term borrowingsAccounts payableAccrued liabilitiesLong-term debtLease liabilities Amortized cost Amortized cost Amortized cost Amortized cost Amortized cost Amortized cost Cash and cash equivalentsAccounts receivableFinancing receivablesInvestments, measured at FVTOCI Amortized cost FVTOCI Amortized cost Amortized cost Debt derivatives Derivatives Financial liabilities Financial instrumentFinancial assets Classification and measurement method portionofthehedgeisrecognizedinaccumulatedothercomprehensiveincomeandtheineffectiveportionofthehedgeisrecognizedimmediatelyinto Debt derivatives related to our credit facility and commercial paperSubsequent borro changes are offset against stock-based co Subsequently measured at fair value withDerivatives changes can be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for derivatives related to our senior notes and debentures are design Derivatives The risk they manage Types of derivative instruments Debt derivatives Impact of fluctuations in foreign exchange rates on Expenditure derivatives Impact ofEquity derivatives fluc Impact of fluctuations in share price on stock-based Offsetting financial assets and financial liabilities We offset financial assets and financial liabilities and present the 3 4 1 2 Derivative instruments We use derivative instruments to manage risks related to ce follows: we have a legal right to offset them and intend to settle on a net basis or realize the asset and liability simultaneously. We use derivativespurposes. only to manage risk, andWhen not for we speculative instrument designate for accounting ahedging purposes, we derivative instrument firstchanges will instrument determine in that fair be as the valuethen highly or a formally cash effective document flows hedging instrument of the in the and relationship item offsetting hedgedobjectives between it and the is item, the strategy hedging. and hedging including theongoing We effectiveness methods of the we the hedging will risk relationship. use to management assess the The classifications and methods of measurement subsequent to initial r NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Hedge ratio We measure impairment for financial assets as follows: Our policy is to hedge 100% of the foreign currency risk arising • Contract assets – we measure an impairment loss for contract from principal and interest payment obligations on US dollar- assets based on the lifetime expected credit losses, which is denominated senior notes and debentures using debt derivatives. allocated to an allowance for doubtful accounts and recognized We also hedge up to 100% of the remaining lease payments when as a loss in net income (see note 5). we enter into debt derivatives on our US dollar-denominated lease • Accounts receivable – we measure an impairment loss for liabilities. We typically hedge up to 100% of forecast foreign accounts receivable based on the lifetime expected credit losses, currency expenditures net of foreign currency cash inflows using which is allocated to an allowance for doubtful accounts and expenditure derivatives. From time to time, we hedge up to 100% recognized as a loss in net income (see note 15). of the interest rate risk on forecast future senior note issuances • Financing receivables – we measure an impairment loss for using bond forwards. financing receivables based on the lifetime expected credit losses, which is allocated to an allowance for doubtful accounts Hedging reserve and recognized as a loss in net income (see note 15). The hedging reserve represents the accumulated change in fair • Investments measured at FVTOCI – we measure an impairment value of our derivative instruments to the extent they were effective loss for equity investments measured at FVTOCI as the excess of hedges for accounting purposes, less accumulated amounts the cost to acquire the asset (less any impairment loss we have reclassified into net income. previously recognized) over its current fair value, if any. The difference is recognized in the FVTOCI investment reserve. Deferred transaction costs and discounts We consider financial assets to be in default when, in the case of We defer transaction costs and discounts associated with issuing contract assets, accounts receivable, and financing receivables, the long-term debt and direct costs we pay to lenders to obtain certain counterparty is unlikely to satisfy its obligations to us in full. Our credit facilities and amortize them using the effective interest investments measured at FVTOCI cannot default. To determine if method over the life of the related instrument. our financial assets are in default, we consider the amount of time for which it has been outstanding, the reason for the amount being FVTOCI investment reserve outstanding (for example, if the customer has ongoing service or, if The FVTOCI investment reserve represents the accumulated they have been deactivated, whether voluntarily or involuntarily), change in fair value of our equity investments that are measured at and the risk profile of the underlying customers. We typically FVTOCI less accumulated impairment losses related to the write-off accounts receivable when they have been outstanding for investments and accumulated amounts reclassified into equity. a significant period of time.

Impairment (expected credit losses) USE OF ESTIMATES AND JUDGMENTS We consider the credit risk of a financial asset at initial recognition ESTIMATES and at each reporting period thereafter until it is derecognized. For Fair value estimates related to our derivatives are made at a specific a financial asset that is determined to have low credit risk at the point in time based on relevant market information and information reporting date and that has not had significant increases in credit about the underlying financial instruments. These estimates require risk since initial recognition, we measure any impairment loss based assessment of the credit risk of the parties to the instruments and on the credit losses we expect to recognize over the next twelve the instruments’ discount rates. These fair values and underlying months. For other financial assets, we will measure an impairment estimates are also used in the tests of effectiveness of our hedging loss based on the lifetime expected credit losses. Certain assets, relationships. such as trade receivables, financing receivables and contract assets without significant financing components, must always be recorded at lifetime expected credit losses. JUDGMENTS We make significant judgments in determining whether our Lifetime expected credit losses are estimates of all possible default financial instruments qualify for hedge accounting. These events over the expected life of a financial instrument. Twelve- judgments include assessing whether the forecast transactions month expected credit losses are estimates of all possible default designated as hedged items in hedging relationships will events within twelve months of the reporting date or over the materialize as forecast, whether the hedging relationships expected life of a financial instrument, whichever is shorter. designated as effective hedges for accounting purposes continue Financial assets that are significant in value are assessed individually. to qualitatively be effective, and determining the methodology to All other financial assets are assessed collectively based on the determine the fair values used in testing the effectiveness of nature of each asset. hedging relationships.

124 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 125 | 90 114 148 274 102 127 238 (251) 2019 2019 3,458 1,791 1,053 1,667 66 76 621 793 207 2020 3,569 1,806 2,948 250 114 307 As at December 31 (171) 2020 ROGERS COMMUNICATIONS INC. Years ended December 31 tives, expenditure derivatives, ion and potential outcome, and 2020 ANNUAL REPORT Unbilled financing receivables Less than 30 days past billing date 30-60 days past billing date Greater than 90 days past billing date 61-90 days past billing date contract assets and $54, respectively) allowances of $222 and $60, respectively) expense Below is adoubtful summary accounts of the oncontract assets. activity total related customer to our accounts allowance receivable for and Total customer accounts receivable and (In millions of dollars) Total contract assets (net of allowance of $28 Balance, end of year We use variousdeposits on controls account, and and billingWe processes, in monitor advance, and such to take mitigate appropriate ascustomers credit action have credit to risk. suspend fully checks, services used when established their approved payment creditprocesses limits have terms. or been effective violated in Whileeliminate managing credit credit risk, our risk theycontrols cannot and will credit continue there to can controlsexperience be will effective continue. be or and no that our assurance current creditThe that loss increase these in allowancethe for changing doubtful economic conditions accountsuncertainty during primarily surrounding COVID-19. reflects its Due condit tothe the unpredictable and continuously changinggovernment impacts and responses, related incorporated there into issignificantly affected our estimates related more to assumptions ourand expected allowance credit risk for losses and doubtful accounts. andincremental As expectations, a $90 result, million we uncertainty which in recognizedeconomic an bad conditions. debt expense based on changing Derivative instruments Credit risk related toand our debt deriva equitycounterparties to derivatives the agreements mayWe arises default assess on their the from obligations. creditworthinessthe of risk the the of counterpartiesother to counterparty possibility minimize default security that and to do support the not the require collateral credit or risk associated with these (In millions of dollars) Below is areceivable, including summary financing ofallowances receivables, for doubtful the net accounts. of aging the of respective our customer accounts Customer accounts receivable Total customer accounts receivable (net of Balance, beginning of year Allowance for doubtful accounts Net use sing lifetime expected credit exchange exchange price Liquidity, market price, and foreign exchange and interest rate and interest rate exchange sures by financial instrument. ccounts receivable and financing 1 Debt derivatives Credit, liquidity, and foreign Expenditure derivativesEquity derivatives Credit, liquidity, and foreign Credit, liquidity, and market Cash and cash equivalentsAccounts receivableFinancing Credit receivables and foreign exchange Investments, measured at FVTOCI Credit and foreign Credit exchange Bank advancesShort-term borrowingsAccounts payable Liquidity,Accrued foreign liabilities exchange, Long-term debt Liquidity Lease liabilities Liquidity Liquidity Liquidity, foreign exchange, Liquidity and foreign Derivatives can be in an assetfuture. or liability position at a point in time historically or in the Financial instrumentFinancial assets Financial risks Financial liabilities Derivatives CREDIT RISK Credit risk represents thecounterparty financial to loss a weamount financial owing, could failed instrument, experience to if fromconditions meet of its a its whom contracts obligations with we under us. the have terms and Our an credit riskreceivable, exposure our is financing receivables, primarily andand to attributable our to debt, equity expenditure, ourconcentration accounts derivatives. of this Our risk. broad Our a customer base limits the losses related to our accounts receivable.for We doubtful believe the accounts allowance sufficientlywith reflects the credit our risk$349 million associated accounts (2019 – $464considered receivable. million) of past gross As accounts due, receivablebeyond which are at normal is credit definedcustomers. December as terms amounts 31, and outstanding conditions 2020, for the respective 1 Accounts receivable Our accountscomponents receivable as defined do by IFRSallowance not 15 and for therefore contain doubtful we measure significant accounts our u financing receivables on the Consolidatedare net Statements of allowances of for Financial doubtful accounts. Position EXPLANATORY INFORMATION We are exposed to credit, liquidity,and market interest price, rate foreign risks. exchange, Ourprotect primary our risk management income, objective cash isWe flows, to and, ultimately, design shareholderdiscussed value. and below to ensure implement ourconsistent risks with the and our the business related risk objectivesa exposures summary and of are risk management our tolerance. potential risk Below expo strategies is NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

derivatives. Counterparties to the entire portfolio of our derivatives our commitments and maturities, capital structure, and financial are financial institutions with a S&P Global Ratings (or the leverage (see note 3). We also manage liquidity risk by continually equivalent) ranging from A to AA-. monitoring actual and projected cash flows to ensure we will have sufficient liquidity to meet our liabilities when due, under both LIQUIDITY RISK normal and stressed conditions, without incurring unacceptable Liquidity risk is the risk that we will not be able to meet our financial losses or risking damage to our reputation. obligations as they fall due. We manage liquidity risk by managing Below is a summary of the undiscounted contractual maturities of our financial liabilities and the receivable components of our derivatives as at December 31, 2020 and 2019.

December 31, 2020 Carrying Contractual Less than 1to3 4to5 More than (In millions of dollars) amount cash flows 1year years years 5years Short-term borrowings 1,221 1,221 1,221 – – – Accounts payable and accrued liabilities 2,714 2,714 2,714 – – – Long-term debt 18,201 18,373 1,450 3,274 1,490 12,159 Lease liabilities 1,835 2,353 278 647 300 1,128 Other long-term financial liabilities 22 22 – 14 2 6 Expenditure derivative instruments: Cash outflow (Canadian dollar) – 2,134 1,305 829 – – Cash inflow (Canadian dollar equivalent of US dollar) – (2,024) (1,222) (802) – – Equity derivative instruments – (34) (34) – – – Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) – 11,114 86 2,516 937 7,575 Cash inflow (Canadian dollar equivalent of US dollar) 1 – (11,702) (81) (2,772) (891) (7,958) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) – 585 585 – – – Cash inflow (Canadian dollar equivalent of US dollar) 1 – (573) (573) – – – Net carrying amount of derivatives (asset) (1,011) 22,982 24,183 5,729 3,706 1,838 12,910

1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives.

December 31, 2019 Carrying Contractual Less than 1to3 4to5 More than (In millions of dollars) amount cash flows 1year years years 5years Short-term borrowings 2,238 2,238 2,238 – – – Accounts payable and accrued liabilities 3,033 3,033 3,033 – – – Long-term debt 15,967 16,130 – 2,050 2,353 11,727 Lease liabilities 1,725 2,220 230 413 326 1,251 Other long-term financial liabilities 26 26 – 12 7 7 Expenditure derivative instruments: Cash outflow (Canadian dollar) – 1,287 1,248 39 – – Cash inflow (Canadian dollar equivalent of US dollar) – (1,286) (1,247) (39) – – Equity derivative instruments – (55) (55) – – – Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) – 9,903 – – 1,392 8,511 Cash inflow (Canadian dollar equivalent of US dollar) 1 – (10,780) – – (1,753) (9,027) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) – 1,622 1,622 – – – Cash inflow (Canadian dollar equivalent of US dollar) 1 – (1,593) (1,593) – – – Bondforwards – ––––– Net carrying amount of derivatives (asset) (1,439) 21,550 22,745 5,476 2,475 2,325 12,469

1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives.

126 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 127 | – – 7 14 2019 Other income – – 12 14 2020 comprehensive – – – 17 2019 – – 7 9 ROGERS COMMUNICATIONS INC. Net income 2020 me and other comprehensive bt, short-term borrowings, and significant exposures with respect d in US dollars. Due to the short- 2020 ANNUAL REPORT 1% change in interest rates in interest rates foreign exchange rate $0.01 change in Cdn$ relative to US$ investments $1 change Floating interest rate senior notes Short-term borrowings 1% change Expenditure derivatives – change in INTEREST RATE RISK We are exposed tothe risk of changes impact inborrowings market this interest and rates bank has due93.6% credit to on facilities. of As interestborrowings at was December at our expense fixed 31, interest rates for 2020, outstanding (2019 – 87.2%). our long-term short-term Sensitivity analysis debtBelow and is a short-term sensitivityto analysis our for publicly tradedterm investments, borrowings, expenditure derivatives, seniorDecember short- notes, 31, andconstant. 2020 bank It and credit showsincome 2019 facilities would how have as with net beenvariables. at affected all inco by changes other in the variables relevant risk held instruments anddesignated lease the debt derivatives contracts,hedges related for to respectively. accounting our purposes. USto We CP We program use as manage expenditure havedesignating derivatives them the not as hedges forand foreign certain capital of expenditures. our forecast As exchangedollar-denominated operational at December long-term risk 31, de 2020,lease all in of liabilities our US ourexchange were rates operations, using hedged debtterm debt derivatives. and against With US CP respect program,one-cent fluctuations as to change a our result in in of long- the ourwould debt have Canadian foreign derivatives, no effect a dollar on relative net income. to theA US portion dollar ofaccrued our liabilities accounts is receivable denominate term and accounts nature payable ofsignificant and risk these from receivablesDecember fluctuations 31, and 2020. in payables, foreign they exchange rates carry as no at Share price of publicly traded (Change in millions of dollars) 5years 5years More than More than years years 4to5 4to5 years years 1to3 1to3 1year 1year result of our equity derivatives, a lling with respect to our publicly related to these investments to Less than Less than We use debtforeign exchange derivatives rates associated with tolong-term our US manage debt, dollar-denominated short-term risksdesignate borrowings, from the and fluctuations debt leasedebentures in derivatives and liabilities. lease related liabilities We as toagainst hedges for our the accounting purposes senior foreign notes exchange and risk associated with specific debt FOREIGN EXCHANGE RISK one-dollar change inwould not the have a price material effect of on net a income. Class B Non-Voting Share Market price risk – Class BOur Non-Voting liability Shares related to stock-basedfair compensation is value remeasured at eachaffected by period. changes in Stock-based theduring price the life of compensation of our an Class expense award,units B including Non-Voting stock is (RSUs), Shares options, restricted and share derivatives from deferred time to share timebased to compensation units manage liability. the As (DSUs). exposure a in We our stock- use equity traded investments. Market price risk – publicly tradedWe investments manage risk relatedinvestments to fluctuations in in publicly thepublicly market traded prices companies of available by our information regularly reviewing Market price risk isfluctuations the in risk the that changes marketFVTOCI in or prices our market of share prices, price ourvalue such will of investments as affect our measured our financial instruments. income, at Theto cash derivative manage flows, instruments this or we risk the use are described in this note. ensure that anytolerance. We do risks not engage are inhedging, risk management derivatives, within practices or such as our short se established levels of risk MARKET PRICE RISK Net interest paymentsDecember 31, 2019 (In millions of dollars) Net interest payments 747 1,322 1,167 8,331 735 1,299 1,121 8,763 December 31, 2020 (In millions of dollars) Below is a summary oflong-term the net interest debt, payments over includingderivatives, the as life at of the December the 31, 2020 impact and 2019. of the associated debt NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DERIVATIVE INSTRUMENTS Below is a summary of the net cash proceeds (payments) on debt As at December 31, 2020 and 2019, all of our US dollar- derivatives. denominated long-term debt instruments were hedged against fluctuations in foreign exchange rates for accounting purposes. Years ended December 31 Below is a summary of our net asset (liability) position for our (In millions of dollars) 2020 2019 various derivatives. Proceeds on debt derivatives related to As at December 31, 2020 US commercial paper 5,542 17,056 Proceeds on debt derivatives related to Notional Notional Fair credit facility borrowings 1,364 564 (In millions of dollars, except amount Exchange amount value Proceeds on debt derivatives related to exchange rates) (US$) rate (Cdn$) (Cdn$) senior notes – – Debt derivatives accounted for as cash flow hedges: Total proceeds on debt derivatives 6,906 17,620 As assets 4,550 1.0795 4,912 1,405 Payments on debt derivatives related to As liabilities 4,642 1.3359 6,201 (307) US commercial paper (5,441) (17,069) Short-term debt derivatives not Payments on debt derivatives related to accounted for as hedges: credit facility borrowings (1,385) (561) As liabilities 449 1.2995 583 (12) Payments on debt derivatives related to Net mark-to-market debt senior notes – – derivative asset 1,086 Total payments on debt derivatives (6,826) (17,630) Expenditure derivatives Net proceeds (payments) on accounted for as cash flow settlement of debt derivatives 80 (10) hedges: As liabilities 1,590 1.3421 2,134 (109) Equity derivatives not accounted for as hedges: As assets 238 34 Net mark-to-market asset 1,011

As at December 31, 2019 Notional Notional Fair (In millions of dollars, except amount Exchange amount value exchange rates) (US$) rate (Cdn$) (Cdn$) Debt derivatives accounted for as cash flow hedges: As assets 5,800 1.1357 6,587 1,508 As liabilities 2,570 1.3263 3,409 (96) Short-term debt derivatives not accounted for as hedges: As liabilities 1,223 1.3227 1,618 (29) Net mark-to-market debt derivative asset 1,383 Expenditure derivatives accounted for as cash flow hedges: As assets 270 1.2391 335 16 As liabilities 720 1.3228 952 (15) Net mark-to-market expenditure derivative asset 1 Equity derivatives not accounted for as hedges: As assets – – 223 55 Net mark-to-market asset 1,439

128 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 129 | (309) (428) Total Total 1,439 8,047 1,011 1,439 1,011 (8,166) instruments instruments Equity Equity derivatives derivatives ROGERS COMMUNICATIONS INC. (see note 19). We designate the derivatives derivatives Expenditure Expenditure 2020 ANNUAL REPORT Debt Bond forwards derivatives (unhedged) Debt Debt derivatives (unhedged) (hedged) As at December 31,outstanding 2020, debt US$9.2 derivatives billion have notionalaccounting been amount purposes designated (2019 of as – hedges our 2020, for US$8.4 100% billion). of As our at outstandingdesignated December as expenditure 31, hedges derivatives for have accounting purposes been (2019 – 100%). Debt derivatives We use cross-currency interestrisks from exchange fluctuations agreements in foreign to exchangeUS manage rates dollar-denominated associated debt with instruments, our credit facilityand borrowings, commercial paper borrowings debt derivatives relatedhedges to for accounting our purposes senior againstassociated the with notes foreign specific debt exchange and instruments. risk Wedebt debentures do not as designate derivatives the commercial paper related borrowings as hedges to for accounting purposes. our credit facility borrowings or derivatives (50) (90) Debt 101 (140) 2019 1,478 1,579 1,439 (hedged) derivatives As at December 31 61 (110) (318) (428) 2020 1,378 1,439 1,011 erivatives – (17,620) – (1,194) (15) (18,829) erivatives 80 (80) (24) (51) (22) (97) e of derivatives (314) 97 (70) (22) Below is aderivative summary instruments ofStatements liabilities of Financial the reflected Position. derivative on instruments our assets Consolidated and Mark-to-market assetMark-to-market liabilityMark-to-market asset (liability) 1,412 1,508 (96) (29) – (29) – – – 1 (15) 16 55 55 – 1,439 1,579 (140) Derivative instruments, beginning of yearProceeds received from settlement of d Payment on derivatives settledIncrease (decrease) in fair value of d Derivative instruments, end of year 1,332 41 1,412 (87) – 17,630 122 (29) 111 – 92 1,124 1,500 1 – 18,865 55 1,439 Payment on derivatives settled – 6,826 1,221 – Derivative instruments, beginning of yearProceeds received from settlement of derivatives(Decrease) increase in fair valu 1,412 – (6,906) (29) (1,261) 1 1 55 Derivative instruments, end of yearMark-to-market assetMark-to-market liabilityMark-to-market asset (liability) 1,098 (12) 1,098 1,405 (307) (109) (12) (12) 34 – (109) (109) – 34 – 34 Long-term asset Current liability Net mark-to-market asset (In millions of dollars) Current asset Long-term liability Year ended December 31, 2019 (In millions of dollars) Below is a summary of the changes in fair value of our derivative instruments for 2020 andYear 2019. ended December 31, 2020 (In millions of dollars) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During 2020 and 2019, we entered and settled debt derivatives related to our credit facility borrowings and US CP program as follows:

Year ended Year ended December 31, 2020 December 31, 2019 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Credit facilities Debt derivatives entered 970 1.428 1,385 420 1.336 561 Debt derivatives settled 970 1.406 1,364 420 1.343 564 Net cash (paid) received (21) 3 Commercial paper program Debt derivatives entered 3,316 1.329 4,406 12,897 1.328 17,127 Debt derivatives settled 4,091 1.330 5,441 12,847 1.329 17,069 Net cash received (paid) 101 (13)

In 2020 and 2019, we entered into debt derivatives to hedge the foreign currency risk associated with the principal and interest components of the US dollar-denominated senior notes issued during these years (see note 21). Below is a summary of the debt derivatives we entered to hedge senior notes issued during 2020 and 2019.

(In millions of dollars, except for coupon and interest rates) US$ Hedging effect Principal/Notional Fixed hedged (Cdn$) Effective date amount (US$) Maturity date Coupon rate interest rate 1 Equivalent (Cdn$) 2020 issuances June 22, 2020 750 2022 USD LIBOR + 0.60% 0.955% 1,019 2019 issuances April 30, 2019 1,250 2049 4.350% 4.173% 1,676 November 12, 2019 1,000 2049 3.700% 3.996% 1,308

1 Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate.

During the year, concurrent with the issuances of our US$750 million senior notes, we entered into debt derivatives to convert all interest and principal payment obligations to Canadian dollars. As a result, we received net proceeds of $1,019 million from the issuances. In 2019, concurrent with the issuances of our US$1,250 million and US$1,000 million senior notes, we entered into debt derivatives to convert all interest and principal payment obligations to Canadian dollars. As a result, we received net proceeds of $1,676 million and $1,308 million, respectively, from the issuances. During 2020 and 2019, we entered and settled debt derivatives related to our outstanding lease liabilities as follows:

Year ended Year ended December 31, 2020 December 31, 2019 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Debt derivatives entered 115 1.374 158 70 1.314 92 Debt derivatives settled 43 1.372 59 –n/a–

As at December 31, 2020, we had US$142 million notional amount Bond forwards of debt derivatives outstanding related to our outstanding lease During the year ended December 31, 2019, we exercised a liabilities (2019 – US$70 million) with terms to maturity ranging $500 million notional bond forward due 2019 in relation to the from January 2021 to December 2023 (2019 – January 2020 to issuance of the $1 billion senior notes due 2029 and paid December 2022), at an average rate of $1.35/US$ (2019 – $54 million to settle the derivative. We also exercised a $400 million $1.32/US$) notional bond forward due 2019 in relation to the issuance of the US$1.25 billion senior notes due 2049 and paid $57 million to settle the derivative. As at December 31, 2020 and 2019, we had no outstanding bond forwards.

130 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 131 | (Cdn$) Notional Year ended rate Exchange December 31, 2019 810900 1.321 1.249 1,070 1,124 (US$) ROGERS COMMUNICATIONS INC. Notional e credit spread for the financial (Cdn$) Notional Year ended rate 2020 ANNUAL REPORT Exchange December 31, 2020 940 1.299 1,221 (US$) 1,560 1.343 2,095 Notional referring to quoted pricesand liabilities; in active markets for identical assets inputs based onindirectly, other than observable the quoted prices; market data, eitherobservable market data. directly or follow-on financing rounds, third-party sale negotiations,based or market- approaches.investment These depending are onprospects. applied its appropriately future operating toThe and fair each values profitability of eachthe of our period-end public debt estimated instrumentsvalues, are based market where on available. yields, Wederivatives or determine and the period-end expenditure fair derivatives trading adjusted values using mark-to-market of valuation an our by estimated discounting debt measurement credit- cash date. flows In to the the case ofderivatives debt in derivatives and an expenditure assetinstitution position, counterparty th is addeddetermine the to estimated the credit-adjusted risk-freeFor value these discount for debt rate each derivatives derivative. to position, and our expenditure credit spread derivatives is in addedeach to a derivative. the liability risk-free discount rate for The fairperiod-end values quoted market value of of Class B Non-Voting our Shares. Our equity disclosure of derivativessignificance the of the are three-level inputs used fair in• based measuring value fair financial value: hierarchy on assets reflects and the the financial liabilities in Level 1• are valued financial assets by and financial liabilities in Level 2 are valued using • Level 3 valuations are based on inputsThere were that no are material financial notas instruments based at categorized in on December Level 31, 3 between Level 2020 1, and Level 2, 2019 or Level and 3 there during the were respective periods. no transfers ettled during 2020 and 2019 to manage foreign exchange risk related f these financial instruments. approximate their fair values t-term borrowings, and accounts The carryingreceivable, values bank of advances,payable shor cash and andbecause accrued of cash the liabilities short-termThe equivalents, carrying natures values accounts o oftheir our fair values financing based receivables on ourallowance. also recognition approximate of an expected credit loss We determineinvestments the using fair quotedvalue value market of values. of our We private each determine investments by the of using fair our implied valuations publicly from traded FAIR VALUES OF FINANCIAL INSTRUMENTS Equity derivatives We have equity derivatives toassociated hedge with market Class price B appreciation Non-Voting risk under Shares our that stock-based have compensation been programs granted equity (see note derivatives 25). The average were price originally ofextendible entered for $50.37 into further withhedge at one-year terms periods counterparties. a with todesignated weighted The as the hedges maturity for consent equity accounting purposes. of of derivatives the oneAs at have year, December 31, notfor 2020, 4.6 million been we (2019 had –weighted 4.3 equity average million) derivatives price Class of outstanding B $51.82 Non-Voting (2019 Shares – with $51.76). a During thepayments year of ended $1$54.16 million December and to reset 31, the reseton expiry 0.5 2020, the million dates equity to weighted derivatives. we April average 2021 made price (fromDuring April to net the 2020) year0.3 million ended equity December derivativesprice (2019 31, of – $56.08 2020, nil) (2019 with –2019, we nil). a During we entered weighted the average into year settledaverage price ended of December 0.7 $71.66 31, for net million proceeds of equity $16Additionally, million. we derivatives executed extension at agreementsof for the a our remainder weighted equitycommitment derivative terms contracts andMarch under 2021 conditions and April with substantially 2021. revised the expiry same dates to Expenditure derivatives settled As at December 31, 2020, wederivatives had outstanding US$1,590 (2019 million – of US$990 expenditure of million), $1.34/US$ at an (2019 average –from rate $1.30/US$), January with 2021 termsDecember to to December maturity 2021). ranging 2022 Asexpenditure (2019 at – derivatives December January maturingaverage 2020 exchange 31, rate in to of 2020, $1.36/US$. 2021 our were outstanding hedged at an to certain forecast expenditures. Expenditure derivatives entered Expenditure derivatives Below is a summary of the expenditure derivatives we entered and s (In millions of dollars, except exchange rates) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Below is a summary of the financial instruments carried at fair value.

As at December 31 Carrying value Fair value (Level 1) Fair value (Level 2) (In millions of dollars) 2020 2019 2020 2019 2020 2019 Financial assets Investments, measured at FVTOCI: Investments in publicly traded companies 1,535 1,831 1,535 1,831 – – Held-for-trading: Debt derivatives accounted for as cash flow hedges 1,405 1,508 – – 1,405 1,508 Expenditure derivatives accounted for as cash flow hedges – 16 – – – 16 Equity derivatives not accounted for as cash flow hedges 34 55 – – 34 55 Total financial assets 2,974 3,410 1,535 1,831 1,439 1,579 Financial liabilities Held-for-trading: Debt derivatives accounted for as cash flow hedges 307 96 – – 307 96 Debt derivatives not accounted for as hedges 12 29 – – 12 29 Expenditure derivatives accounted for as cash flow hedges 109 15 – – 109 15 Total financial liabilities 428 140 – – 428 140

Below is a summary of the fair value of our long-term debt.

As at December 31 (In millions of dollars) 2020 2019 Carrying amount Fair value 1 Carrying amount Fair value 1 Long-term debt (including current portion) 18,201 22,006 15,967 18,354

1 Long-term debt (including current portion) is measured at Level 2 in the three-level fair value hierarchy, based on year-end trading values. We did not have any non-derivative held-to-maturity financial assets during the years ended December 31, 2020 and 2019.

NOTE 18: INVESTMENTS ACCOUNTING POLICY We use the equity method to account for our investments in Investments in publicly traded and private companies associates and joint ventures; we recognize our proportionate We have elected to irrevocably classify our investments in interest in the assets, liabilities, revenue, and expenses of our joint companies over which we do not have control or significant operations. influence as FVTOCI with no subsequent reclassification to net We initially recognize our investments in associates and joint income because we do not hold these investments with the intent ventures at cost and subsequently increase or decrease the of short-term trading. We account for them as follows: carrying amounts based on our share of each entity’s income or • publicly traded companies – at fair value based on publicly loss. Distributions we receive from these entities reduce the quoted prices; and carrying amounts of our investments. • private companies – at fair value using implied valuations from follow-on financing rounds, third-party sale negotiations, or We eliminate unrealized gains and losses from our investments in market-based approaches. associates or joint ventures against our investments, up to the amount of our interest in the entities. Investments in associates and joint arrangements An entity is an associate when we have significant influence over the Impairment in associates and joint ventures entity’s financial and operating policies but do not control the At the end of each reporting period, we assess whether there is entity. We are generally presumed to have significant influence objective evidence that impairment exists in our investments in over an entity when we hold more than 20% of the voting power. associates and joint ventures. If objective evidence exists, we compare the carrying amount of the investment to its recoverable A joint arrangement exists when there is a contractual agreement amount and recognize the excess over the recoverable amount, if that establishes joint control over activities and requires unanimous any, as a loss in net income. consent for strategic financial and operating decisions. We classify our interests in joint arrangements into one of two categories: • joint ventures – when we have the rights to the net assets of the arrangement; and • joint operations – when we have the rights to the assets and obligations for the liabilities related to the arrangement.

132 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 133 | (3) 33 30 (52) (24) 851 491 (906) 2019 2,314 1,679 3,501 (2,366) (1,407) (Cdn$) Notional rate (40) Exchange 900 512 (100) (857) 2020 1,310 1,706 3,409 (1,410) (1,358) ROGERS COMMUNICATIONS INC. 420 1.336 561 (420) 1.343 (564) (US$) 12,897 1.328 17,127 (12,876) 1.328 (17,094) Notional As at or years ended December 31 – (1,146) (1,146) (Cdn$) Notional 2020 ANNUAL REPORT rate Exchange ––– ––– (US$) 3,316 1.329 4,406 (4,098) 1.355 (5,552) Net loss Our share of net loss One of our jointright ventures to has require a our non-controllinginterest interest joint at a that venture future has to date a at purchase fair that value. non-controlling Expenses Our share of net assets Revenue Total net assets Current liabilities Long-term liabilities (In millions of dollars) Current assets Long-term assets with our portion representing ainvestment 37.5% equity in interest MLSE in is MLSE.equity Our method. accounted for as a joint venture usingGlentel the Glentel is a large,hundred multicarrier Canadian mobile wireless phone50% retail retailer equity distribution with interest outlets. several owned in We by BCE. Glentel, own Our investment a with inventure Glentel using the is the accounted equity remaining for method. as 50% a joint interest Below is asignificant associates summary and joint ventures of and our financial portions thereof. information pertaining to our Notional Year ended December 31, 2020 Year ended December 31, 2019 650 107 892 2019 2019 1,588 2,238 1,938 2,830 1,831 97 term borrowings for the years ended December 31, 2020 and 2019. 904 2020 650 571 1,632 2,536 1,535 2020 1,221 As at December 31 As at December 31 Private companies Publicly traded companies (In millions of dollars, except exchange rates) Net repayment of credit facilities Proceeds received from US commercial paper Total short-term borrowings Receivables securitization program US commercial paper program (In millions of dollars) Below isDecember 31, a 2020 and 2019. summary of our short-term borrowings as at NOTE 19: SHORT-TERM BORROWINGS Maple Leaf Sports and Entertainment LimitedMLSE, (MLSE) a sports andthe entertainment Arena, company, the ownsToronto NHL’s and Raptors, Toronto operates MLS’ Maple Torontothe Leafs, FC, AHL’s the the Toronto NBA’s CFL’s Marlies,Inc. Toronto and (BCE), Argonauts, other jointly assets. own We, an along indirect with net 75% BCE equity interest in MLSE INVESTMENTS, ASSOCIATES AND JOINT VENTURES We have interestssome in of which a include: number of associates and joint ventures, Publicly traded companies We hold aincluding Cogeco number Inc. and of Cogecowerecognizedrealizedlossesofnilandunrealizedlossesof Communications interests Inc. This in year, $296 publicly million traded (2019 companies, unrealized – gains) in other nil comprehensive income. of realized losses and $780 million of INVESTMENTS, MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME EXPLANATORY INFORMATION (In millions of dollars) Net (repayment of) proceeds received from short-term borrowings Net (repayment of) proceeds received from US commercial paper Proceeds received from credit facilities Repayment of credit facilities Repayment of US commercial paper Below is a summary of the activity relating to our short- Investments, associates and joint ventures Investments, measured at FVTOCI Total investments Investments in: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

RECEIVABLES SECURITIZATION PROGRAM As at December 31 We participate in a receivables securitization program with a (In millions of dollars) 2020 2019 Canadian financial institution that allows us to sell certain trade Receivables sold to buyer as security 2,130 1,359 receivables into the program. On December 23, 2020, we entered Short-term borrowings from buyer (650) (650) into a new receivables securitization program to replace our previous accounts receivable securitization program. The new Overcollateralization 1,480 709 program enables us to sell certain trade accounts receivable and financing receivables into the program, with the proceeds We continue to service and retain substantially all of the risks and recorded in current liabilities as revolving floating rate loans of up rewards relating to the accounts receivable we sell, and therefore, to $1.2 billion, an increase from $1.05 billion in the previous the receivables remain recognized on our Consolidated program. Similar to the previous program, we will continue to Statements of Financial Position and the funding received is service the receivables and they will continue to be recorded as recognized as short-term borrowings. The buyer’s interest in these accounts receivable or financing receivables, as applicable, on our trade receivables ranks ahead of our interest. The program restricts Consolidated Statement of Financial Position. us from using the receivables as collateral for any other purpose. The buyer of our trade receivables has no claim on any of our other The terms of our receivables securitization program are committed assets. until its expiry on December 22, 2023. Initial funding of $650 million was available on December 23, 2020 and increased to a minimum of $800 million on January 25, 2021. The buyer’s US COMMERCIAL PAPER PROGRAM interest in these receivables ranks ahead of our interest. The buyer We have a US CP program that allows us to issue up to a maximum of our receivables has no further claim on any of our other assets. aggregate principal amount of US$1.5 billion. Funds can be borrowed under this program with terms to maturity ranging from As at December 31, 2020, the proceeds of the sales were 1 to 397 days, subject to ongoing market conditions. Any issuances committed up to a maximum of $1,200 million (2019 – $1,050 made under the US CP program will be issued at a discount. million) and the program has a term of three years, ending on Borrowings under our US CP program are classified as short-term December 22, 2023. borrowings on our Consolidated Statements of Financial Position when they are due within one year from the date of the financial statements. Below is a summary of the activity relating to our US CP program for the years ended December 31, 2020 and 2019.

Year ended December 31, 2020 Year ended December 31, 2019 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) US commercial paper, beginning of year 1,223 1.298 1,588 1,177 1.364 1,605 Net (repayment of) proceeds received from US commercial paper (782) 1.465 (1,146) 21 1.571 33 Discounts on issuance 1 8 1.250 10 25 1.320 33 Loss (gain) on foreign exchange 1 119 (83) US commercial paper, end of year 449 1.272 571 1,223 1.298 1,588

1 Included in finance costs.

Concurrent with the US CP borrowings, we entered into debt CP program (see note 17). We have not designated these debt derivatives to hedge the foreign currency risk associated with the derivatives as hedges for accounting purposes. principal and interest components of the borrowings under the US

134 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 135 | Liabilities Other Total ROGERS COMMUNICATIONS INC. Decommissioning 2020 ANNUAL REPORT current liabilities”) 4 – 4 December 31, 2019AdditionsAdjustments to existing provisionsAmounts usedDecember 31, 2020Current (recorded in “other Long-term 5Decommissioning and 41 restoration – costs Cash outflows associated withgenerally our 5 expected 3 decommissioning to liabilities occurassets are at the to decommissioning 44 which datestiming of they the and relate, 45 whichrequired extent – for (1) are these of sites long-term is uncertain. restoration in nature. work 1 (3) The 1 that will 46 (4) ultimately be 1 41 1 42 USE OF ESTIMATES AND JUDGMENTS ESTIMATES We recognize aconstructive provision obligation when that alikely can past to result be event in an reasonably creates outflowprovision of estimated a even economic resources. when and legal We the recognize is or be a timing uncertain, which or can amount require us of to use the significant obligation estimates. may JUDGMENTS Significant judgment is required toto determine when we unavoidable are subject judgments costs may include, for arising example,legally whether binding from a or certain promise whetherwith onerous is the we counterparty. may contracts. be These successful in negotiations EXPLANATORY INFORMATION (In millions of dollars) contracts when the unavoidable Decommissioning and restoration costs We use network andour other business assets on activities. leasedfuture We premises and expect in we some to thereforewith of exit make decommissioning provisions these the for premisestheir assets the in original costs and the associated restoring conditionsobligation the to when do locations we so. to estimate We have of calculate the a these coststhe costs legal that future will based based or be on on incurred, a constructive management’sin project best current those prices, estimates costs of inflation, future into andpresent trends value. other We factors, revise our andtechnological forecasts requirements discount when change. business them conditions to or their When we recognize acorresponding decommissioning liability, asset weproperty, plant recognize in and equipment a or property, abased right-of-use on asset, the as plant underlying applicable asset)the and and depreciate corresponding the asset’s asset equipmentpolicies based useful for on property, (as life plant andas following equipment our and applicable. right-of-use depreciation We assets, charge to recognize finance costs on the the Consolidated accretion Statements ofRestructuring of Income. the liabilityWe make as provisions a fordetailed and restructuring formal when restructuring wehas plan and have started either approved the a features restructuring or to the management employeesthat affected has by it. announced have Restructuringprovisions; obligations the otherwise uncertain they plan’s are timingcharges main recognized are as accrued or recognized liabilities. inthe All restructuring, Consolidated amounts Statements acquisition of Income and are (see other note 10). on Onerous recognized contracts as We make provisions for onerous NOTE 20: PROVISIONS ACCOUNTING POLICY costs of meetingbenefits we our expect to obligation realizeat from under it. the We a measureterminating these present contract provisions the exceed value contract orthe the of the contract. expected the We costassociatedwiththecontractbeforewemaketheprovision. of lower recognize continuing any of with impairment the loss expected on the cost assets of NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 21: LONG-TERM DEBT

As at December 31

Due Principal Interest (In millions of dollars, except interest rates) date amount rate 2020 2019 Senior notes 2021 1,450 5.340% 1,450 1,450 Senior notes 2022 600 4.000% 600 600 Senior notes 2022 US 750 Floating 955 – Senior notes 2023 US 500 3.000% 637 649 Senior notes 2023 US 850 4.100% 1,082 1,104 Senior notes 2024 600 4.000% 600 600 Senior notes 2025 US 700 3.625% 890 909 Senior notes 2026 US 500 2.900% 637 649 Senior notes 2027 1,500 3.650% 1,500 – Senior notes 2029 1,000 3.250% 1,000 1,000 Senior debentures 1 2032 US 200 8.750% 255 260 Senior notes 2038 US 350 7.500% 446 455 Senior notes 2039 500 6.680% 500 500 Senior notes 2040 800 6.110% 800 800 Senior notes 2041 400 6.560% 400 400 Senior notes 2043 US 500 4.500% 637 649 Senior notes 2043 US 650 5.450% 827 844 Senior notes 2044 US 1,050 5.000% 1,337 1,365 Senior notes 2048 US 750 4.300% 955 973 Senior notes 2049 US 1,250 4.350% 1,592 1,624 Senior notes 2049 US 1,000 3.700% 1,273 1,299 18,373 16,130 Deferred transaction costs and discounts (172) (163) Less current portion (1,450) –

Total long-term debt 16,751 15,967

1 Senior debentures originally issued by Rogers Cable Inc. which are unsecured obligations of RCI and for which RCCI was an unsecured guarantor as at December 31, 2020 and 2019.

Each of the above senior notes and debentures are unsecured and, the foreign exchange risk associated with the principal and interest as at December 31, 2020, were guaranteed by RCCI, ranking components of all of our US dollar-denominated senior notes and equally with all of RCI’s other senior notes, debentures, bank credit debentures (see note 17). facilities, and letter of credit facilities. We use derivatives to hedge

136 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 137 | – 2,184 3,984 2,184 1,000 (1,800) (Cdn$) Notional rate Exchange ––– ––– ROGERS COMMUNICATIONS INC. (US$) 2,250 1.326 2,984 Notional – 21 2,540 2,519 2,519 1,500 (Cdn$) Notional 2020 ANNUAL REPORT rate Exchange 750 1.359 1,019 970 1.428 1,385 (970) 1.406 (1,364) (US$) Year ended December 31, 2020 Year ended December 31, 2019 Notional SENIOR NOTES AND DEBENTURES We paydebentures interest on a semi-annual on basis.rate We senior pay all notes interest on on a our quarterly of floating basis. ourWe have the fixed-rate option toand senior redeem debentures, each of in notes ourpremiums whole fixed-rate specified and in senior or the notes corresponding in agreements. part, at any time, if we pay the maturity. The interest rate chargedcredit on borrowings facility from ranges the revolving prime from nil rate to oracceptance 1.75% rate base or per London Inter-Bank rate, annum Offered Rate. over or theAs 0.85% at bank December to 31, 2020,(2019 2.75% we – had $1.6 over available billion) liquidity under thefacilities of our (2019 $2.6 $3.3 bankers’ billion billion – bank $3.3 and(2019 billion), letter – of of $0.1 credit which billion) we forbackstop letters had of utilized credit amounts $0.1 and billion reservedborrowings (2019 $0.6 outstanding – billion $1.6 to billion). under our US CP program 12 (61) (458) 2019 2,184 14,290 15,967 long-term debt for the years ended December 31, 2020 and 2019. 14 (23) (297) 2020 2,540 15,967 18,201 Years ended December 31 costs, beginning of year costs costs, end of year Senior note repayments (Cdn$) Net issuance of long-term debt Total senior note issuances Net issuance of senior notes Senior note issuances (US$) Our $3.2 billion revolving creditbasis facility is until available maturity on and a fully there revolving are no scheduled reductions prior to BANK CREDIT AND LETTER OF CREDIT FACILITIES As at December 31,rate 2020, on our all effective debt weighted andall average of short-term interest the borrowings, associated including debt derivatives the(2019 and – effect bond 4.30%). of forwards, was 4.09% Credit facility repayments (US$) Net borrowings under credit facilities Senior note issuances (Cdn$) Net issuance of long-term debt WEIGHTED AVERAGE INTEREST RATE (In millions of dollars) Long-term debt net of transaction Credit facility borrowings (US$) The tables below summarize the activity relating to our (In millions of dollars, except exchange rates) Gain on foreign exchange Deferred transaction costs incurred Amortization of deferred transaction Long-term debt net of transaction NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Issuance of senior notes Below is a summary of the senior notes that we issued in 2020 and 2019.

(In millions of dollars, except interest rates and discounts) Transaction Discount/ Total gross costs and Principal premium at proceeds 1 discounts 2 Date issued amount Due date Interest rate issuance (Cdn$) (Cdn$) 2020 issuances March 31, 2020 1,500 2027 3.650% 99.511% 1,500 16 June 22, 2020 US 750 2022 USD LIBOR + 0.60% 100% 1,019 5 2019 issuances April 30, 2019 US 1,250 2049 4.350% 99.667% 1,676 20 November 12, 2019 US 1,000 2049 3.700% 98.926% 1,308 25

1 Gross proceeds before transaction costs and discounts. 2 Transaction costs and discounts are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the effective interest method.

Concurrent with the US dollar-denominated issuances, we entered PRINCIPAL REPAYMENTS into debt derivatives to convert all interest and principal payment Below is a summary of the principal repayments on our long-term obligations to Canadian dollars (see note 17). debt due in each of the next five years and thereafter as at December 31, 2020. Repayment of senior notes and related derivative settlements We did not repay any senior notes or settle any related debt (In millions of dollars) derivatives during the year ended December 31, 2020. Below is a 2021 1,450 summary of the repayment of our senior notes during 2019. There 2022 1,555 were no debt derivatives associated with the 2019 repayments. 2023 1,719 2024 600 (In millions of dollars) 2025 890 Notional amount Thereafter 12,159 Maturity date (Cdn$) Total long-term debt 18,373 2019 repayments March 2019 400 November 2019 500 TERMS AND CONDITIONS September 2020, repaid November 2019 900 As at December 31, 2020 and 2019, we were in compliance with all Total 2019 repayments 1,800 financial covenants, financial ratios, and all of the terms and conditions of our long-term debt agreements. There were no financial leverage covenants in effect other than those under our In November 2019, we repaid the entire outstanding principal bank credit and letter of credit facilities. amount of our $900 million 4.7% senior notes otherwise due in September 2020. For the year ended December 31, 2019, we The 8.75% debentures due in 2032 contain debt incurrence tests recognized a $19 million loss on repayment of long-term debt and restrictions on additional investments, sales of assets, and reflecting our obligation to pay redemption premiums upon payment of dividends, all of which are suspended in the event the repayment(seenote11). public debt securities are assigned investment-grade ratings by at least two of three specified credit rating agencies. As at December 31, 2020, these public debt securities were assigned an investment-grade rating by each of the three specified credit rating agencies and, accordingly, these restrictions have been suspended as long as the investment-grade ratings are maintained. Our other senior notes do not have any of these restrictions, regardless of the related credit ratings. The repayment dates of certain debt agreements can also be accelerated if there is a change in control of RCI.

138 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 139 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT USE OF ESTIMATES AND JUDGMENTS ESTIMATES Detailed below are the significant assumptionscalculations used used in to the actuarial determinepension the obligation amount and of related expense. the defined benefit Significant estimates are involvedbalances. in determining Actuarial pension-related employees’ estimates compensationRetirement are levels benefits based atearnings, subject are on to the certain primarily adjustments.valuations projections time were The completed most based as recent at of of January actuarial 1, on 2020. retirement. career average an employeeConsolidated Statements benefit of Income inprovide expense the the related periods services. the in employees operatingPost-employment costs benefits – defined on contribution pensionIn plan the 2016, wemembers and closed introduced a the defined contributionchange defined pension plan. did This benefit not pensiontime; impact any plans current employee enrolled to defined inplans benefit any new at of members that the date at defined continues benefitservice the to in pension their earn respective pension plan. benefits and credited We recognize a pension expensethe in relation to defined our contributions to provides service contribution to the Company. pension plan whenTermination benefits theWe employee recognize terminationcommitted benefits to as an abefore expense formal the normal when detailed retirement we date planwithdraw and it. are to it is terminate not realistic employment that we will – 29 73 47 90 704 465 2019 41 92 39 69 590 318 2020 1,149 As at December 31 5 23 23 25 17 Note members; and expensed in net income. future benefits; plan Total other long-term liabilities Stock-based compensation Derivative instruments Supplemental executive retirement Contract liabilities We recognize ourpension net plans pension and expense contributions for to our defined contribution defined plans benefit as • mortality rates for• calculating past the service life costs expectancy from plan of amendments plan are immediately ACCOUNTING POLICY Post-employment benefits – defined benefit pensionWe plans offerpension contributory plans that andpension on provide retirement. non-contributory employees defined withWe a separately benefit calculate lifetime our net monthly pension obligation for each plan defined benefit employees have by earned in return estimating forprior their service years the in the and currentpresent amount and value. discounting of those benefits futureWe to accrue benefits our determine pension planservices obligations their as necessary employees to provide the based earn on the market pension.measurement yields We on use date high-quality aobligation. to corporate discount Remeasurements bonds rate calculate atobligation of the the are accrued the determinedactuarial at pension accrued gains the benefit and pensioninterest end income, losses, of benefit and returns any theThese change on are year in recognized in plan the and other effect comprehensiveearnings. assets include income of and the in retained asset excess ceiling. of The cost ofaccount pensions the is followingaccounting related actuarially to assumptions our defined determined benefit and• pension and plans: expected methods takes rates for into of pension salary increases for calculating increases in NOTE 23: POST-EMPLOYMENT BENEFITS Deferred pension liability NOTE 22: OTHER LONG-TERM LIABILITIES (In millions of dollars) Other NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Principal actuarial assumptions certain senior executives to provide benefits in excess of amounts that can be provided from the defined benefit pension plan under 2020 2019 the Income Tax Act (Canada)‘s maximum pension limits. Weighted average of significant We also sponsor smaller defined benefit pension plans in addition assumptions: to the Rogers Defined Benefit Pension Plan. The Pension Plan for Defined benefit obligation Employees of Rogers Communications Inc. and the Rogers Discount rate 2.7% 3.2% Pension Plan for Selkirk Employees are closed legacy defined Rate of compensation 1.0% to 4.5%, 1.0% to 4.5%, benefit pension plans. The Pension Plan for Certain Federally increase based on based on Regulated Employees of Rogers Cable Communications Inc. is employee age employee age similar to the main pension plan but only federally regulated Mortality rate CPM2014Priv CPM2014Priv employees from the Cable business were eligible to participate; with Scale with Scale this plan was closed to new members in 2016. CPM-B CPM-B In addition to the defined benefit pension plans, we provide various Pension expense defined contribution plans to certain groups of employees of the Discount rate 3.2% 3.9% Company and to employees hired after March 31, 2016 who choose Rate of compensation 1.0% to 4.5%, 1.0% to 4.5%, to join. Additionally, we provide other tax-deferred savings increase based on based on arrangements, including a Group RRSP and a Group TFSA program, employee age employee age which are accounted for as deferred contribution arrangements. Mortality rate CPM2014Priv CPM2014Priv with Scale with Scale During the year ended December 31, 2019, we amended certain CPM-B CPM-B of our defined benefit pension plans and recognized a $21 million reduction in past service cost, which was recorded as a reduction of pension expense, included in “operating costs” in the Sensitivity of key assumptions Consolidated Statements of Income. In the sensitivity analysis shown below, we determine the defined benefit obligation for our funded plans using the same method The Pension Committee of the Board oversees the administration used to calculate the defined benefit obligation we recognize on of our registered pension plans, which includes the following the Consolidated Statements of Financial Position. We calculate principal areas: sensitivity by changing one assumption while holding the others • overseeing the funding, administration, communication, and constant. This leads to limitations in the analysis as the actual change investment management of the plans; in defined benefit obligation will likely be different from that shown • selecting and monitoring the performance of all third parties in the table, since it is likely that more than one assumption will performing duties in respect of the plans, including audit, change at a time, and that some assumptions are correlated. actuarial, and investment management services; • proposing, considering, and approving amendments to the Increase (decrease) in plans; accrued benefit obligation • proposing, considering, and approving amendments to the (In millions of dollars) 2020 2019 Statement of Investment Policies and Procedures; • reviewing management and actuarial reports prepared in Discount rate respect of the administration of the pension plans; and Impact of 0.5% increase (279) (233) Impact of 0.5% decrease 319 266 • reviewing and approving the audited financial statements of the pension plan funds. Rate of future compensation increase Impact of 0.25% increase 20 17 The assets of the defined benefit pension plans are held in Impact of 0.25% decrease (20) (17) segregated accounts that are isolated from our assets. They are Mortality rate invested and managed following all applicable regulations and the Impact of 1 year increase 76 61 Statement of Investment Policies and Procedures with the objective Impact of 1 year decrease (80) (64) of having adequate funds to pay the benefits promised by the plans. Investment and market return risk is managed by: • contracting professional investment managers to execute the EXPLANATORY INFORMATION investment strategy following the Statement of Investment We sponsor a number of contributory and non-contributory Policies and Procedures and regulatory requirements; pension arrangements for employees, including defined benefit • specifying the kinds of investments that can be held in the plans and defined contributions plans. We do not provide any and monitoring compliance; non-pension post-retirement benefits. We also provide unfunded • using asset allocation and diversification strategies; and supplemental pension benefits to certain executives. • purchasing annuities from time to time. The Rogers Defined Benefit Pension Plan provides a defined The defined benefit pension plans are registered with the Office of pension based on years of service and earnings, with no increases the Superintendent of Financial Institutions and are subject to the in retirement for inflation. The plan was closed to new members in Federal Pension Benefits Standards Act. Two of the defined 2016. Participation in the plan was voluntary and enrolled contribution pension plans are registered with the Financial employees are required to make regular contributions into the Services Regulatory Authority, subject to the Ontario Pension plan. An unfunded supplemental pension plan is provided to

140 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 141 | 8 8 4 10 89 (30) (21) (81) 967 108 112 121 277 (154) (401) 2019 2019 2019 2019 1,472 2,449 – (4) 4 15 10 10 91 163 (81) (113) (272) 156 160 146 2020 2020 As at December 31 2,791 1,689 1,087 2020 2020 ROGERS COMMUNICATIONS INC. Years ended December 31 Years ended December 31 Years ended December 31 2020 ANNUAL REPORT Administrative expense Net interest cost Net pension expense Current service cost Past service recovery finance costs other comprehensive income and equity income interest income) Total fair value of plan assets (In millions of dollars) Equity securities Debt securities Other – cash Below is a summary of ourincluded net in pension finance expense. Net costs; interestsalaries other cost pension is expenses and areConsolidated included Statements in of benefits Income. expense in operating costs on the Net interest cost, recognized in The remeasurement recognized in theComprehensive Consolidated Income Statements is of determined as follows: (In millions of dollars) (In millions of dollars) (In millions of dollars) Effect of experience adjustments Remeasurement loss, recognized in Plan assets arecommon comprised stocks mainly and ofBelow bonds pooled is a that funds summary that are ofby the invest traded major fair category. value in in of the an total active pension plan market. assets Net interest cost, a componentin finance of costs the and plan is cost outlined as above, follows: is included Total pension cost recognized in net Interest cost on plan obligation Plan cost: Interest income on plan assets Return on plan assets (excluding Change in financial assumptions (3) 14 81 36 89 36 (86) (21) (86) 277 179 121 431 (465) (451) (451) 2019 2019 2019 2,449 1,965 2,449 2,330 2,900 (2,900) 16 (590) (574) (574) – 2020 2,791 (4) 81 34 91 34 (3,365) (82) (82) 163 150 146 276 2020 2020 As at December 31 2,900 3,365 2,449 2,791 22 Note Years ended December 31 Years ended December 31 Deferred pension liability Deferred pension asset comprehensive income and equity assets of year comprehensive income and equity year Plan assets, at fair value Benefits Act.Revenue The Agency and plans areThe subject are benefits to provided the also under Income the Taxplans plans registered and Act the (Canada). with are contributions toapplicable the the legislation funded and regulations. Canada and administeredThe defined in benefitrelated accordance pension with to plansunfunded are all contribution obligations, subjectmitigate to and increases, through certain the market governance inadequate risks describedchanges rates to above. these Any plan items of significant may affect our return, surplus, future cashBelow flows. which is a we summarybenefits of and the the estimated estimated present market valueprovide value these of of benefits the for accrued net our assets plan funded available defined to benefit pension plans. (In millions of dollars) (In millions of dollars) (In millions of dollars) Net deferred pension liability Accrued benefit obligations Net deferred pension liability Interest income Remeasurements, recognized in other Contributions by employees Contributions by employer Benefits paid Administrative expenses paid from plan Below is a summary offunded the obligations. accrued benefit obligations arising from Accrued benefit obligations, beginning Current service cost Past service recovery Interest cost Benefits paid Contributions by employees Remeasurements, recognized in other Accrued benefit obligations, end of Plan assets, beginning of year Plan assets, end of year Below is a summary of our pension fund assets. Consists of: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

We also provide supplemental unfunded defined benefit pensions Plan assets consist primarily of pooled funds that invest in common to certain executives. Below is a summary of our accrued benefit stocks and bonds. The pooled funds have investments in our equity obligations, pension expense included in employee salaries and securities. As a result, approximately $10 million (2019 – benefits, net interest cost, remeasurements, and benefits paid. $10 million) of plan assets are indirectly invested in our own securities under our defined benefit plans. Years ended December 31 We make contributions to the plans to secure the benefits of plan (In millions of dollars) 2020 2019 members and invest in permitted investments using the target ranges established by our Pension Committee, which reviews Accrued benefit obligation, beginning of year 73 67 actuarial assumptions on an annual basis. Pension expense, recognized in Below is a summary of the actual contributions to the plans. employee salaries and benefits expense 13 2 Years ended December 31 Net interest cost, recognized in finance costs 3 3 (In millions of dollars) 2020 2019 Remeasurements, recognized in Employer contribution 150 179 other comprehensive income 8 5 Employee contribution 34 36 Benefits paid (5) (4) Total contribution 184 215 Accrued benefit obligation, end of year 92 73 We estimate our 2021 employer contributions to our funded plans We also have defined contribution plans with total pension to be $169 million. The actual value will depend on the results of expense of $15 million in 2020 (2019 – $12 million), which is the 2021 actuarial funding valuations. The average duration of the included in employee salaries and benefits expense. defined benefit obligation as at December 31, 2020 is 18 years (2019 – 17 years). ALLOCATION OF PLAN ASSETS Plan assets recognized an actual net gain of $240 million in 2020 (2019 – $355 million net gain). Allocation of plan assets Target asset allocation We have recognized a cumulative loss in other comprehensive 2020 2019 percentage income and retained earnings of $592 million as at December 31, 2020 (2019 – $503 million) associated with post-retirement benefit Equity securities: plans. Domestic 11.9% 12.0% 8% to 18% International 48.6% 48.1% 37% to 67% Debt securities 39.0% 39.5% 25% to 45% Other – cash 0.5% 0.4% 0% to 2% Total 100.0% 100.0%

NOTE 24: SHAREHOLDERS’ EQUITY

CAPITAL STOCK

Number of shares Share class authorized for issue Features Voting rights Preferred shares 400,000,000 • Without par value •None • Issuable in series, with rights and terms of each series to befixedbytheBoardprior to the issue of any series RCI Class A Voting Shares 112,474,388 • Without par value • Each share entitled to 50 • Each share can be converted votes into one Class B Non-Voting share RCI Class B Non-Voting Shares 1,400,000,000 • Without par value • None

RCI’s Articles of Continuance under the Business Corporations Act to refuse to register transfers of any of our shares to any person (British Columbia) impose restrictions on the transfer, voting, and who is not a Canadian, as defined in RCI’s Articles of Continuance, issue of Class A Shares and Class B Non-Voting Shares to ensure in order to ensure that Rogers remains qualified to hold the we remain qualified to hold or obtain licences required to carry on licences referred to above. certain of our business undertakings in Canada. We are authorized

142 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 143 | 1.9% 2.8% 2019 16.4% 5.5 years $8.11 1.7% 3.4% 2020 16.1% 5.5 years $5.86 ROGERS COMMUNICATIONS INC. Years ended December 31 n-Voting Shares for $500 million, 2020 ANNUAL REPORT USE OF ESTIMATES AND JUDGMENTS ESTIMATES Significant management estimates arevalue used of stock to options, determine RSUs, theweighted and DSUs. average fair The fair table value belowand shows of the stock 2019 options and grantedBlack-Scholes during the 2020 principal modeldetermine assumptions their for fair used value at in the non-performance-based grant date. applying options, the to NORMAL COURSE ISSUER BID In April 2020,commence the a TSX normalNCIB) accepted course that a allows issuerApril notice us 23, bid 2021, to of the (NCIB) lesser purchase,and our of program 34.9 between million intention that (2020 Class April B to numberpurchased Non-Voting 24, for Shares an of 2020 aggregate purchase and Class pricesecurity of holders $500 B million. may Rogers obtain Non-Votingby a contacting Shares copy us. of We that thisShares have under notice, not can the without purchased 2020 NCIB. charge, any be Class B Non-Voting In April 2019,commence the a TSX NCIBpurchase, between accepted program April 24, a 2019 (201935.7 and notice million April NCIB) Class 23, of B 2020, Non-Voting thatNon-Voting the our Shares Shares lesser and allowed of intention that that number could us of to befor Class purchased to B under an the 2019 aggregateholders NCIB purchase may price obtaincontacting us. of a $500 copy million. of RCIIn this 2019, we security purchased notice, 9.9 millionfor without shares $655 under charge, our million. NCIB programs Pursuant by cancellation to 7.7 million the Class 2019 Bthereby No NCIB, purchasing the we maximum repurchased allowed under for 2019, the pursuant 2019 to NCIB. our In NCIBrepurchased program for we cancellation commenced 2.2 million infor Class 2018, $155 B we million. Non-Voting Shares No performance-based optionsended December 31, were 2020 and December issued 31, 2019. during the years Dividend yield Volatility of Class B Non-Voting Shares Weighted average expected life Risk-free interest rate Weighted average fair value Employee share accumulation plan Employees voluntarily participate in thecontributing share accumulation a plan specified by percentagematch of their employee regular earnings.recognize contributions our We contributions as up a compensationwe expense to in the make year aaccumulation plan them. certain are included in amount Expenses operating costs. and relating to the employee share 2.00 2.00 (dollars) Dividend per share ually in dividends above $0.05 per Restricted share unit (RSU) and deferredWe share recognize unit outstanding (DSU) plans RSUs andthe DSUs as liabilities liabilities, and measuring values, compensation costs which based areNon-Voting on Shares, the based and recognizing awards’ them oncosts as fair over charges the the to vesting operating market periodchanges after of price it the has awards. been of If grantedrecognize an and the before the award’s the fair exercise resulting Class value date,costs we changes in B the in year the the changeis occurs. liability For established RSUs, the within payment asamount amount operating is of established as of the the exercise vesting date. date. For DSUs, the payment ACCOUNTING POLICY Stock option plans Cash-settled share appreciationstock rights options granted (SARs) underfeature are our employee allows attached stock topayment the option equal plan. all option to This thewhich holder the intrinsic market to value price of ofexercise choose the the Class option B price to Non-Voting (the Shareexercising of receive amount exceeds the the by the a optionclassify option cash to all outstanding acquire on stock options Classliabilities with the cash B and settlement exercise features Non-Voting carry as Black-Scholes them Shares. date) option at We instead pricing theirmodel, of fair model depending value, or on determined aremeasure the the using trinomial fair nature the value option of ofoperating the pricing liability costs the each using period share-based graded and vesting,ortothedateanemployeeiseligibletoretire(whicheverisshorter). amortize award. either it over to We the vesting period NOTE 25: STOCK-BASED COMPENSATION Date declared Date paid DIVIDENDS We declared and paid theClass following A Shares dividends and on Class our B outstanding Non-Voting Shares: January 21, 2020April 21, 2020July 21, 2020 AprilOctober 1, 21, 2020 2020 July 2, 2020 January 4, 2021 October 1, 2020 0.50 0.50 0.50 0.50 January 24, 2019April 18, 2019June 5, 2019 AprilOctober 1, 23, 2019 2019 July 2, 2019 January 2, 2020 OctoberThe 1, 2019 holders of Classthe A rate Shares of up are to entitledrate five to cents of receive per five share dividends butClass cents at only B after per Non-Voting dividends Shares. share at Class the Shares A have Shares therefore been and participate Class paid eq Bshare. or Non-Voting 0.50 set aside on the On January 0.50 27, 0.50 2021,$0.50 0.50 the per Board Class declared Abe Voting a paid Share quarterly on and dividend April Class of 2021. 1, B 2021, Non-Voting to Share, shareholders to of record on March 10, NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Volatility has been estimated based on the actual trading statistics trading price of the Class B Non-Voting Shares for all vested share- of our Class B Non-Voting Shares. based awards, as at December 31, 2020 was $103 million (2019 – $106 million). EXPLANATORY INFORMATION We paid $60 million in 2020 (2019 – $84 million) to holders of Below is a summary of our stock-based compensation expense, stock options, RSUs, and DSUs upon exercise using the cash which is included in employee salaries and benefits expense. settlement feature, representing a weighted average share price on Years ended December 31 the date of exercise of $60.00 (2019 – $70.97). (In millions of dollars) 2020 2019 STOCK OPTIONS Stock options (1) 1 Options to purchase our Class B Non-Voting Shares on a Restricted share units 49 47 one-for-one basis may be granted to our employees, directors, and Deferred share units (3) 4 officers by the Board or our Management Compensation Equity derivative effect, net of interest Committee. There are 65 million options authorized under various receipt 15 18 plans; each option has a term of seven to ten years. The vesting period is generally graded vesting over four years; however, the Total stock-based compensation Management Compensation Committee may adjust the vesting expense 60 70 terms on the grant date. The exercise price is equal to the fair As at December 31, 2020, we had a total liability recognized at its market value of the Class B Non-Voting Shares, determined as the fair value of $204 million (2019 – $220 million) related to stock- five-day average before the grant date as quoted on the TSX. based compensation, including stock options, RSUs, and DSUs. The current portion of this is $165 million (2019 – $173 million) and Performance options is included in accounts payable and accrued liabilities. The long- We granted no performance-based options to certain key executives term portion of this is $39 million (2019 – $47 million) and is in 2020 or 2019. These options vest on a graded basis over four included in other long-term liabilities (see note 22). years provided that certain targeted stock prices are met on or after each anniversary date. As at December 31, 2020, we had 1,068,776 The total intrinsic value of vested liabilities, which is the difference performance options (2019 – 1,068,776) outstanding. between the exercise price of the share-based awards and the

Summary of stock options Below is a summary of the stock option plans, including performance options.

Year ended December 31, 2020 Year ended December 31, 2019 Weighted average Weighted average (In number of units, except prices) Number of options exercise price Number of options exercise price Outstanding, beginning of year 3,154,795 $61.82 2,719,612 $53.22 Granted 1,598,590 $62.56 1,179,160 $72.03 Exercised (17,230) $54.80 (743,977) $46.56 Forfeited (9,521) $58.45 —— Outstanding, end of year 4,726,634 $62.10 3,154,795 $61.82 Exercisable, end of year 1,470,383 $56.75 993,645 $52.38

Below is a summary of the range of exercise prices, the weighted average exercise price, and the weighted average remaining contractual life as at December 31, 2020. Options outstanding Options exercisable Weighted average Number remaining contractual Weighted average Number Weighted average Range of exercise prices outstanding life (years) exercise price exercisable exercise price $42.85 – $44.99 153,937 3.82 $44.24 153,937 $44.24 $45.00 – $49.99 499,844 3.00 $48.87 499,844 $48.87 $50.00 – $59.99 890,011 6.41 $58.10 380,499 $57.82 $60.00 – $64.99 2,013,647 8.66 $62.63 134,379 $62.89 $65.00 – $69.99 129,025 8.38 $66.21 41,684 $66.64 $70.00 – $73.00 1,040,170 7.89 $73.00 260,040 $73.00 4,726,634 7.30 $62.10 1,470,383 $56.75

144 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 145 | 2019 (24,274) 110,003 (348,285) 2,004,440 1,741,884 2020 (9,477) 80,252 (192,718) 1,741,884 1,619,941 ROGERS COMMUNICATIONS INC. Years ended December 31 2020 ANNUAL REPORT Forfeited EMPLOYEE SHARE ACCUMULATION PLAN Participation in the planto is 10% voluntary. of Employees their can regular contributean earnings up through annual payroll deductions maximumadministrator (up purchases to contribution Class of Bbasis Non-Voting on $25 the Shares open on thousand). marketeach on a behalf The monthly of month, the plan employee. we Atemployee’s the make end contribution of that auses month contribution this and amount of the toemployee. 25% purchase plan additional to administrator We sharescompensation 50% expense. on behalf of recognize of the the ourCompensation contributions expenseaccumulation plan was $51 made million related in 2020 (2019 as – to $51 million). EQUITY a DERIVATIVES theWe employee have entered into equitystock-based share derivatives compensation to expense hedge (see a notea portion 17) $15 and of million recognized expense our (2019compensation – expense $18 for these million derivatives. expense) in stock-based (In number of units) Outstanding, beginning of year Granted and reinvested dividends Exercised Outstanding, end of year Unrecognized stock-basedDecember 31, 2020 compensationmillion) related and to will expense be theseyears recognized as DSUs the in executive net was DSUs as vest. income nil All over other DSUs (2019 the are at next fully – vested. three $1 We entered intoholding certain companies transactions controlled withwere recognized by private at the Rogers theand family Trust. amount are subject agreed These to to theapproved transactions by terms by and the the conditions Audit related of andpaid parties formal Risk were less agreements Committee. than The $1 totals million received for each or of 2020 and 2019. Performance DSUs We grantedexecutives 10,513 in 2020 performance-based (2019and – DSUs may 29,300). be The to redeemed numberdate of certain by will units the that key be holder vest based three within upon years 50% from the tothree-year the non-market achievement 150% grant targets. of of certain the initial annual number and granted Summary cumulative of DSUs Below isperformance DSUs. a summary of the DSUs outstanding, including 2019 (177,737) (582,314) 2,472,774 2,218,925 1,013,900 2020 (121,681) (803,266) 2,573,894 2,472,774 1,026,067 Years ended December 31 e-based RSUs to certain key Outstanding, end of year Unrecognized stock-basedDecember 31, compensation(2019 2020 – $56 related million) expense andnext to will three be years as recognized these as the in RSUs net vest. RSUs income over was at the $50 million Forfeited CONTROLLING SHAREHOLDER Our ultimate controlling(the shareholder Trust), is which the holdsthe Rogers voting Trust are Control control members of Trust of the RCI.represent Rogers the The family. Rogers Certain beneficiaries family. directors of of RCI NOTE 26: RELATED PARTY TRANSACTIONS DEFERRED SHARE UNITS The DSU plan allowssenior directors, certain management keycompensation executives, in to and DSUs. other issued Under elect to the the participant terms and toof the of up units to issued the three cliff receive years vest plan, from over the DSUs a grant certain period date. are types of Summary of RSUs Below isperformance RSUs. a summary of the RSUs outstanding, including Performance RSUs We granted 219,493executives in 2020 performanc (2019 –and 180,896). will The be number paid of threeto units years that from vest the 170% grant dateachievement will of be within of 30% non-market the targets. certain initial number annual granted and based cumulative upon three-year the RESTRICTED SHARE UNITS The RSUparticipate plan in the allows growthterms and of employees, development the plan, of RSUsissued Rogers. directors, vest are Under over issued a the and to period of the up participant to officers and threeOn years the the from to units the vesting grant date, date. wecash will or redeem by all issuing of one thehave Class reserved participants’ B 4,000,000 RSUs Non-Voting Class in Share B for Non-Votingthis each plan. Shares RSU. for We issue under Unrecognized stock-basedDecember 31, 2020 compensation related(2019 to – $6 stock-option million) expense plansnextfouryearsastheoptionsvest. and was will $5 be as million recognized in net income at over the Outstanding, beginning of year (In number of units) Granted and reinvested dividends Exercised NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL SUBSIDIARIES, ASSOCIATES, AND JOINT ARRANGEMENTS Key management personnel include the directors and our most We have the following material operating subsidiaries as at senior corporate officers, who are primarily responsible for December 31, 2020 and 2019: planning, directing, and controlling our business activities. • Rogers Communications Canada Inc.; and • Rogers Media Inc. Compensation We have 100% ownership interest in these subsidiaries. They are Compensation expense for key management personnel included incorporated in Canada and have the same reporting period for in “employee salaries, benefits, and stock-based compensation” annual financial statements reporting. wasasfollows: When necessary, adjustments are made to conform the accounting Years ended December 31 policies of the subsidiaries to those of RCI. There are no significant restrictions on the ability of subsidiaries, joint arrangements, and (In millions of dollars) 2020 2019 associates to transfer funds to Rogers as cash dividends or to repay Salaries and other short-term loans or advances, subject to the approval of other shareholders employee benefits 11 15 where applicable. Post-employment benefits 2 2 We carried out the following business transactions with our 1 Stock-based compensation 19 20 associates and joint arrangements, being primarily MLSE Total compensation 32 37 (broadcasting rights) and Glentel (Wireless distribution support). Transactions between us and our subsidiaries have been 1 Stock-based compensation does not include the effect of changes in fair value of eliminated on consolidation and are not disclosed in this note. Class B Non-Voting Shares or equity derivatives.

Transactions Years ended December 31 We have entered into business transactions with Transcontinental (In millions of dollars) 2020 2019 Inc., a company that provides us with printing services. Isabelle Marcoux, C.M., is chair of the board of Transcontinental Inc. and a Revenue 26 69 Director of RCI. Purchases 121 212

We recognize these transactions at the amount agreed to by the Outstanding balances at year-end are unsecured, interest-free, and related parties, which are also reviewed by the Audit and Risk settled in cash. Committee. The amounts owing are unsecured, interest-free, and due for payment in cash within one month of the date of the As at December 31 transaction. Below is a summary of related party activity for the business transactions described above. (In millions of dollars) 2020 2019 Accounts receivable 92 86 Outstanding Accounts payable and accrued Years ended balance as at liabilities 59 24 (In millions of dollars) December 31 December 31 2020 2019 2020 2019 Printing services 4 6 1–

NOTE 27: GUARANTEES

We had the following guarantees as at December 31, 2020 and SALES OF SERVICES 2019 as part of our normal course of business: As part of transactions involving sales of services, we may be required to make payments to counterparties as a result of BUSINESS SALE AND BUSINESS COMBINATION breaches of representations and warranties, changes in laws and AGREEMENTS regulations (including tax legislation), or litigation against the As part of transactions involving business dispositions, sales of counterparties. assets, or other business combinations, we may be required to pay counterparties for costs and losses incurred as a result of breaches PURCHASES AND DEVELOPMENT OF ASSETS of representations and warranties, intellectual property right As part of transactions involving purchases and development of infringement, loss or damages to property, environmental liabilities, assets, we may be required to pay counterparties for costs and changes in laws and regulations (including tax legislation), litigation losses incurred as a result of breaches of representations and against the counterparties, contingent liabilities of a disposed warranties, loss or damages to property, changes in laws and business, or reassessments of previous tax filings of the corporation regulations (including tax legislation), or litigation against the that carries on the business. counterparties.

146 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 147 | as we with the Federal After 5Years Total ROGERS COMMUNICATIONS INC. Telecommunications Act Telecommunications Act 2020 ANNUAL REPORT of one year at contract inception. ctual commitments that are not recognized as liabilities as at significantly lower thanbilled the and it interim furtherretroactively rates to determined March 31, that that 2016. these were final previously We rates will do apply notreasonable believe the as final required rates by set by the the CRTC are just and believe they are belowconjunction with cost. the On other large September CanadianCarriers), 13, cable 2019, companies (Cable filed Rogers, in Section a 64(1) motion ofCourt the for ofinterlocutory Leave Appeal Stay of the to (Court) CRTCCourt Order. On and Appeal granted September 27, an 2019, an pursuantCourt the Interim rules on associated to Stay theof Cable suspending motion Carriers’ the the motion for CRTC’s for OrderCable an Order interlocutory an until Carriers’ pending Stay the motion the2019, for the Court’s Court Leave determination granted Leave to ofof to Appeal. Appeal the the and On an CRTC interlocutorySeptember November Stay Order. 22, 10, The 2020,appeal appeal and the simultaneously was vacated the Court heard interlocutorygranted. Stay On dismissed previously in September 28, the June 2020, the2019-288 Cable CRTC 2020. (CRTC issued Carrier’s a On Stay) Stay of pendingthe Order review rates of established the inCable appropriateness the Carriers of Order. filed Ondecision a with November the 12, motion Supreme 2020,of for Court Canada the of Leave dismissed Canada. the The towithout request Supreme reasons. Appeal for Court Leave the on Court’s February 25, 2021 USE OF ESTIMATES AND JUDGMENTS JUDGMENTS We are exposed tolawsuits possible against losses us related fortherefore to which various the claims make outcomeprobability and of is loss when significant not we assess yet contingent liabilities. known. judgments We in determining the No amount has beenFinancial accrued in Position the relating Consolidatedguarantees to as Statements at of these December 31, typesnot 2020 made or any of 2019. significant Historically, payments indemnifications we underguarantees. have these or indemnifications or 73 87 – – 160 295626 178 1,198 1,078 70 316 48 3,218 591 1 Year 1-3 Years 4-5 Years 30 344 405 779 Less than 2020 ograms and films for periods in excess (Order), the As at December 31 t final rates for Rogers that are 2 1 3 equipment ventures Contractual obligations under service, product, andAgreements wireless into device which contracts we to have which entered we to have acquire committed. broadcasting rights for pr Toronto Blue Jays players’ salary contracts into which we have entered and are contractually obligated to pay. Player contracts Wholesale Internet costing and pricing On AugustFollow-up 15, to Telecom Orders 2019, 2016-396 andfor 2016-448 aggregated in – wholesale Final high-speed rates access Telecom services Order CRTC 2019-288, We have the2020: following contingent liabilities as at December 31, Canadian Radio-television and Telecommunications Commission (CRTC) sethigh-speed final access services, rates including Rogers’access third-party (TPIA) for Internet service. The facilities-based Order se carriers’ wholesale CONTINGENT LIABILITIES 2 3 Below is a summary ofnot our included other in the contractual table commitments above. that are 1 (In millions of dollars) (In millions of dollars) EXPLANATORY INFORMATION COMMITMENTS Below is a summary of the future minimum payments for our contra ACCOUNTING POLICY Contingent liabilities are liabilities ofare uncertain not timing recognized or until amount we and past have a event, present obligation it asresources a is result embodying of probable a economicand that benefits a reliable we to estimate can will settle be made of the experience theWe amount obligation, an of disclose the outflow obligation. our of outflow contingent of liabilities resources in unless settlement is the remote. possibility of an December 31, 2020. Acquisition of property, plant and NOTE 28: COMMITMENTS AND CONTINGENT LIABILITIES INDEMNIFICATIONS We indemnify our directors, officers,reasonably and employees incurred against claims andservices resulting to from Rogers. We the haveofficers performance liability and insurance of those for of their our our subsidiaries. directors and Acquisition of intangible assets Total other commitments Commitments related to associates and joint Purchase obligations Program rights Total commitments 994 1,463 1,148 364 3,969 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Due to the CRTC Stay, and the significant uncertainty surrounding 911 fee both the outcome and the amount, if any, we could ultimately have In June 2008, a class action was launched in Saskatchewan against to repay to the resellers, we have not recorded a liability for this providers of wireless communications services in Canada. It involves contingency at this time. The CRTC’s order as drafted would have allegations of breach of contract, misrepresentation, and false resulted in a refund of amounts previously billed to the resellers of advertising, among other things, in relation to the 911 fee that had approximately $210 million, representing the impact on a been charged by us and the other wireless telecommunication retroactive basis from March 31, 2016 to December 31, 2020. We providers in Canada. The plaintiffs are seeking unspecified damages estimate the ongoing impact would be between $10 and and restitution. The plaintiffs intend to seek an order certifying the $15 million per quarter. proceeding as a national class action in Saskatchewan. We have not recognized a liability for this contingency. System access fee – Saskatchewan In 2004, a class action was commenced against providers of Income taxes wireless communications in Canada under the Class Actions Act We provide for income taxes based on all of the information that is (Saskatchewan). The class action relates to the system access fee currently available and believe that we have adequately provided for wireless carriers charge to some of their customers. The plaintiffs these items. The calculation of applicable taxes in many cases, are seeking unspecified damages and punitive damages, which however, requires significant judgment (see note 13) in interpreting would effectively be a reimbursement of all system access fees tax rules and regulations. Our tax filings are subject to audits, which collected. could materially change the amount of current and deferred income tax assets and liabilities and provisions, and could, in certain In 2007, the Saskatchewan Court granted the plaintiffs’ application circumstances, result in the assessment of interest and penalties. to have the proceeding certified as a national, “opt-in” class action where affected customers outside Saskatchewan must take specific Other claims steps to participate in the proceeding. In 2008, our motion to stay There are certain other claims and potential claims against us. We the proceeding based on the arbitration clause in our wireless do not expect any of these, individually or in the aggregate, to have service agreements was granted. The Saskatchewan Court directed a material adverse effect on our financial results. that its order, in respect of the certification of the action, would exclude customers who are bound by an arbitration clause from the class of plaintiffs. Outcome of proceedings The outcome of all the proceedings and claims against us, In 2009, counsel for the plaintiffs began a second proceeding including the matters described above, is subject to future under the Class Actions Act (Saskatchewan) asserting the same resolution that includes the uncertainties of litigation. It is not claims as the original proceeding. If successful, this second class possible for us to predict the result or magnitude of the claims due action would be an “opt-out” class proceeding. This second to the various factors and uncertainties involved in the legal proceeding was ordered conditionally stayed on the basis that it process. Based on information currently known to us, we believe it was an abuse of process. is not probable that the ultimate resolution of any of these proceedings and claims, individually or in total, will have a material At the time the Saskatchewan class action was commenced, adverse effect on our business, financial results, or financial corresponding claims were filed in multiple jurisdictions across condition. If circumstances change and it becomes probable that Canada. The claims in all provinces other than Saskatchewan have we will be held liable for claims against us and such claim is now been dismissed or discontinued. We have not recognized a estimable, we will recognize a provision during the period in which liability for this contingency. the change in probability occurs, which could be material to our Consolidated Statements of Income or Consolidated Statements of Financial Position.

148 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 149 | (38) 2019 2,807 2,845 – 2020 2,312 2,312 Years ended December 31 ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT disposition CAPITAL EXPENDITURES Capital expenditures (In millions of dollars) Capital expenditures before proceeds on Proceeds on disposition 9 7 61 (41) (174) (120) (462) (204) 2019 (19) 455 177 (333) (132) (326) 2020 1,170 (1,658) Years ended December 31 receivables liabilities Accounts receivable, excluding financing (In millions of dollars) NOTE 29: SUPPLEMENTAL CASH FLOW INFORMATION CHANGE IN NET OPERATING ASSETS AND LIABILITIES Financing receivables Contract assets Total change in net operating assets and Inventories Other current assets Contract and other liabilities Accounts payable and accrued liabilities Glossary of selected industry terms and helpful links

3G (Third Generation Wireless):Thethird BDU (Broadcast Distribution Undertaking):An environmental controls (e.g., air conditioning, fire generation of standards and undertaking for the reception of broadcasting and suppression), and security controls. technology. A key goal of 3G standards was to the retransmission thereof by radio waves or other enable mobile broadband data speeds above 384 means of telecommunication to more than one DOCSIS (Data Over Cable Service Interface Kbps. 3G networks enable network operators to offer permanent or temporary residence or dwelling unit Specification): A non-proprietary industry standard users a wider range of more advanced services while or to another such undertaking. developed by CableLabs that allows for equipment achieving greater network capacity through improved interoperability from the headend to the CPE. The spectral efficiency. Advanced services include video bps (Bits per Second): A measurement of data latest version (DOCSIS 3.1) enables bonding of and multimedia messaging and broadband wireless transmission speed used for measuring the amount multiple channels to allow for download speeds up data, all in a mobile environment. of data that is transferred in a second between two to 10 Gbps and upload speeds up to 2 Gbps, telecommunications points orwithinnetworkdevices. depending upon how many channels are bonded 3.5G (Enhanced Third Generation Wireless): Kbps (kilobits per second) is thousands of bps; Mbps together. Evolutionary upgrades to 3G services that provide (megabitspersecond)ismillionsofbps;Gbps significantly enhanced broadband wireless data (gigabitspersecond)isbillionsofbps;andTbps DSL (Digital Subscriber Line): A family of broadband performance to enable multi-megabit data speeds. (terabitspersecond)istrillionsofbps. technologies that offers always-on, high-bandwidth The key 3.5G technologies in North America are (usually asymmetrical) transmission over an existing HSPA and CDMA EV-DO. Broadband: Communications service that allows for twisted-pair copper telephone line. DSL shares the the high-speed transmission of voice, data, and video samephonelineasthetelephoneservicebutusesa 4G (Fourth Generation Wireless): A technology that simultaneously at rates of 1.544 Mbps and above. different part of the phone line’s bandwidth. offers increased voice, video, and multimedia capabilities, a higher network capacity, improved Bundling: Refers to the coupling of independent Edge Computing: The process of obtaining, spectral efficiency, and high-speed data rates over products or services offered into one retail package. processing, and analyzing data close to of current 3G benchmarks. Also referred to as LTE. its creation, Edge computing eliminates the need for BYOD (Bring Your Own Device): Refers to the action data to travel through a distant server, reducing 4.5G (Enhanced Fourth Generation Wireless): that customers are able to sign up for wireless latency and bandwidth usage. Evolutionary upgrades to 4G services that enables services on a personally purchased device, as two to three times the download speeds of 4G opposed to the traditional means of acquiring one Fibre Optics: A method for the transmission of technology. 4.5G technology has been designed to through a term contract. information (voice, video, or data) in which light is support virtual and augmented reality, 4K streaming, modulated and transmitted over hair-thin filaments of and other emerging services. Cable Telephony (Phone): The transmission of real- glass called fibre optic cables. The bandwidth time voice communications over a cable network. capacity of fibre optic cable is much greater than that 5G (Fifth Generation Wireless): The proposed next of copper wire and light can travel relatively long generation of wireless telecommunications Churn:Thisbusinessperformancemeasureisusedto distances through glass without the need for standards. We expect 5G technology to result in describe the disconnect rate of customers to a amplification. significantly reduced latency compared to LTE, telecommunications service. It is a measure of improvements in signalling efficiency and coverage, customer turnover and is often at least partially FTTH (Fibre-to-the-Home)/FTTP (Fibre-to-the- and the ability to connect to more devices at once reflective of service quality and competitive intensity. It Premise): Represents fibre optic cable that reaches than ever before. is usually expressed as a percentage and calculated the boundary of the home or premise, such as a box as the number of subscriber units disconnecting in a on the outside wall of a home or business. 4K—Ultra-High Definition Video: Denotes a specific period divided by the average number of units on the television display resolution of 4096x2160 pixels. network in the same period. GSM (Global System for Mobile Communications): 1920x1080 resolution full-HD televisions present an A TDMA-based technology and a member of the image of around 2 megapixels, while the 4K CLEC (Competitive Local Exchange Carrier):A “second generation” (2G) family of mobile protocols generation of screens displays an 8 megapixel telecommunications provider company that that is deployed widely around the world, especially image. competes with other, already established carriers, at the 850, 900, 1800, and 1900 MHz frequency generally the ILEC. bands. ABPU (Average Billings per User):Thisbusiness performance measure, expressed as a dollar rate per Cloud Computing: The ability to run a program or Hardware Upgrade (HUP):Theactofanexisting month, is predominantly used in the wireless industry application on many connected computers wireless customer upgrading to a new wireless to describe the average amount billed to customers simultaneously as the software, data, and services device. per month. ABPU is an indicator of a business’ reside in data centres. operating performance. HDR (High Dynamic Range): An imaging technique CPE (Customer Premise Equipment): used to reproduce a greater dynamic range of ARPA (Average Revenue per Account):This Telecommunications hardware, such as a modem or luminosity than is possible with standard digital business performance measure, expressed as a dollar set-top box, that is located at the home or business of imaging or photographic techniques. rate per month, is predominantly used in wireless and acustomer. cable industries to describe the revenue generated Hertz: A unit of frequency defined as one cycle per percustomeraccountpermonth.ARPAisan CRTC (Canadian Radio-television and second. It is commonly used to describe the speeds indicator of a wireless and cable business’ operating Telecommunications Commission):Thefederal at which electronics are driven in the radio industry. performance. regulator for radio and television broadcasters and MHz (megahertz) is millions of hertz; GHz (gigahertz) cable TV and telecommunications companies in is billions of hertz; and THz (terahertz) is trillions of ARPU (Average Revenue per User):Thisbusiness Canada. hertz. performance measure, expressed as a dollar rate per month, is predominantly used in the wireless and Customer Relationships: This Cable metric refers Homes Passed: Total number of homes that have the cable industries to describe the revenue generated dwelling units where at least one of our Cable potential for being connected to a cable system in a percustomerpermonth.ARPUisanindicatorofa services is installed and operating and the service(s) defined geographic area. wireless or cable business’ operating performance. are billed accordingly. When there is more than one unit in one dwelling, such as an apartment building, Hosting (Web Hosting): The business of housing, AWS (Advanced Wireless Services):Thewireless each tenant with at least one of our Cable services is serving, and maintaining files for one or more telecommunications spectrum band that is used for counted as an individual customer relationship, websites or e-mail accounts. Using a hosting service wireless voice, data, messaging services, and whether the service is invoiced separately or included allows many companies to share the cost of a high- multimedia. in the tenant’s rent. Institutional units, like hospitals or speed Internet connection for serving files, as well as hotels, are each considered one customer other Internet infrastructure and management costs. Bandwidth: Bandwidth can have two different relationship. meanings: (1) a band or block of radio frequencies Hotspot: A Wi-Fi access point in a public place, such measured in cycles per second, or Hertz; or (2) an Data Centre: A facility used to house computer as a café, train station, airport, commercial office amount or unit of capacity in a telecommunications systems and associated components, such as property, or conference centre. transmission network. In general, bandwidth is the telecommunications and storage systems. It generally available space to carry a signal. The greater the includes redundant or backup power supplies, bandwidth, the greater the information-carrying redundant data communications connections, capacity.

150 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT HSPA (High-Speed Packet Access):HSPAisan Off-net: Customer location(s) where network at lower speeds. Wi-Fi allows any user with a IP-based packet-data enhancement technology that infrastructure is not readily available, necessitating the Wi-Fi-enabled device to connect to a wireless access provides high-speed broadband packet data services use of a third-party leased access for connectivity to point. over 3G networks. HSPA+ provides high-speed the premises. broadband packet data services at even faster speeds than HSPA over 4G networks. On-net: Customer location(s) where network Helpful links infrastructure is in place to provide connectivity to the Hybrid Fibre-Coaxial Network Architecture (HFC):A premises without further builds or third-party leases. Canadian Radio-Television and technology in which fibre optic cable and coaxial An on-net customer can be readily provisioned. Telecommunications Commission (CRTC) cable are used in different portions of a network to The CRTC is an independent public organization that carry broadband content (such as video, voice, and OTT (Over-the-Top): Audio, visual, or alternative regulates and supervises the Canadian broadcasting data) from a distribution facility to a subscriber media distributed via the Internet or other and telecommunications systems. It reports to premise. non-traditional media. Parliament through the Minister of Canadian Heritage. www.crtc.gc.ca ILEC (Incumbent Local Exchange Carrier):The Penetration: The degree to which a product or dominant telecommunications company providing service has been sold into, or adopted by, the base of Innovation, Science and Economic Development local telephone service in a given geographic area potential customers or subscribers in a given Canada (ISED Canada) when competition began. Typically, an ILEC is the geographic area. This value is typically expressed as a ISED Canada is a ministry of the federal government traditional phone company and the original local percentage. whose mission is to foster a growing, competitive, exchange carrier in a given market. knowledge-based Canadian economy. It also works Postpaid: A conventional method of payment for with Canadians throughout the economy and in all IoT (Internet of Things): The concept of connecting wireless service where a subscriber pays a fixed parts of the country to improve conditions for everyday objects and devices (e.g., appliances and monthly fee for a significant portion of services. investment, improve Canada’s innovation cellular phones) to the Internet and each other. This Usage (e.g. long distance) and overages are billed in performance, increase Canada’s share of global allows them to sense their environment and arrears, subsequent to consuming the services. The trade, and build an efficient and competitive communicate between themselves, allowing for the fees are often arranged on a term contract basis. marketplace. www.ic.gc.ca seamless flow of data. Prepaid: A method of payment for wireless service Federal Communications Commission (FCC) IP (Internet Protocol): The packet-based computer that requires a subscriber to prepay for a set amount The FCC is an independent United States network protocol that all machines on the Internet of airtime or data usage in advance of actual usage. government agency. The FCC was established by the must know so they can communicate with one Generally, a subscriber’s prepaid account is debited Communications Act of 1934 and is charged with another. IP is a set of data switching and routing rules at the time of usage so that actual usage cannot regulating interstate and international that specify how information is cut up into packets exceed the prepaid amount until an additional communications by radio, television, wire, satellite, and how they are addressed for delivery between prepayment is made. and cable. The FCC’s jurisdiction covers the 50 states, computers. the District of Columbia, and U.S. territories. PVR (Personal Video Recorder): A consumer www.fcc.gov IPTV (Internet Protocol Television): A system where electronics device or application software that records a digital television signal is delivered using IP. Unlike video in a digital format. The term includes set-top Canadian Wireless Telecommunications broadcasting, viewers receive only the stream of boxes with direct-to-disk recording capabilities, which Association (CWTA) content they have requested (by surfing channels or enables video capture and playback to and from a The CWTA is the industry trade organization and ordering video on demand). hard disk. authority on wireless issues, developments, and trends in Canada. It represents wireless service ISED Canada (Innovation, Science and Economic Set-Top Box: A standalone device that receives and providersaswellascompaniesthatdevelopand Development Canada): The Canadian federal decodes programming so that it may be displayed produce products and services for the industry, government department responsible for, amongst on a television. Set-top boxes may be used to receive including handset and equipment manufacturers, other things, the regulation, management, and broadcast, cable, and satellite programming. content and application creators, and allocation of radio spectrum and establishing business-to-business service providers. www.cwta.ca technical requirements for various wireless systems. Spectrum: A term generally applied to electromagnetic radio frequencies used in the The Wireless Association (CTIA) ISP (Internet Service Provider): A provider of Internet transmission of sound, data, and video. Various The CTIA is an international non-profit membership access service to consumers and/or businesses. portions of spectrum are designated for use in organization, founded in 1984, representing wireless cellular service, television, FM radio, and satellite carriers and their suppliers, as well as providers and LAN ():Anetworkcreatedvia transmissions. manufacturers of wireless data services and products. linked computers within a small area, such as a single The CTIA advocates on their behalf before all levels of site or building. Subscription Video-on-Demand (SVOD): Refers to a government. www.ctia.org service that offers, for a monthly charge, access to LTE (Long-Term Evolution): A fourth generation specific programming with unlimited viewing on an GSM Association (GSMA) cellular wireless technology (also known as 4G) that on-demand basis. The GSMA is a global trade association representing has evolved and enhanced the UMTS/HSPA+ mobile nearly 800 operators with more than 300 companies phone standards. LTE improves spectral efficiency, TPIA (Third-Party Internet Access): Wholesale high- in the broader mobile ecosystem, including handset lowers costs, improves services, and, most speed access services of large cable carriers that and device makers, software companies, equipment importantly, allows for higher data rates. LTE enable independent service providers to offer retail providers, and Internet companies, as well as technology is designed to deliver speeds up to Internet services to their own end-users. organizations in adjacent industry sectors. In addition, 300 Mbps. more than 180 manufacturers and suppliers support Video-on-Demand (VOD): A cable service that allows the Association’s initiatives as associate members. LTE Advanced (LTE-A): A mobile communication a customer to select and view movies and shows at The GSMA works on projects and initiatives that standard that represents a major enhancement of the any time from a library of thousands of titles. address the collective interests of the mobile industry, LTE standard. With a peak data rate of 1 Gbps, LTE and of mobile operators in particular. Advanced also offers faster switching between power VoIP (Voice over IP): The technology used to www.gsma.com states and improved performance at the cell edge. transmit real-time voice conversations in data packets overadatanetworkusingIP.Suchdatanetworks Commission for Complaints for Telecom-television Machine-to-Machine (M2M): The wireless inter- include telephone company networks, cable TV Services (CCTS) connection of physical devices or objects that are networks, wireless networks, corporate intranets, and An independent organization dedicated to working seamlessly integrated into an information network to the Internet. with consumers and service providers to resolve become active participants in business processes. complaints about telephone, television, and Internet Services are available to interact with these ‘smart VoLTE (Voice over LTE): A platform to provide voice services. Its structure and mandate were approved by objects’ over the Internet, query, change their state, services to wireless customers over LTE wireless the CRTC. www.ccts-cprst.ca and capture any information associated with them. networks. The LTE standard only supports , as it is all IP-based technology. Voice calls MVNO (Mobile Virtual Network Operator):A in GSM are circuit switched, so with the adoption of wireless communications service provider that does LTE, carriers are required to re-engineer their voice not own the wireless network infrastructure through call network, while providing continuity for traditional which it provides services to its customers. circuit-switched networks on 2G and 3G networks.

Near-net: Customer location(s) adjacent to network Wi-Fi: The commercial name for a networking For a more comprehensive glossary infrastructure allowing connectivity to the premises to technology standard for wireless LANs that essentially of industry and technology terms, be extended with relative ease. provide the same connectivity as wired networks, but go to rogers.com/glossary

2020 ANNUAL REPORT ROGERS COMMUNICATIONS INC. | 151 Corporate and shareholder information

CORPORATE OFFICES STOCK EXCHANGE LISTINGS COMMON STOCK TRADING AND Rogers Communications Inc. (TSX): DIVIDEND INFORMATION 333 Bloor Street East, RCI.A – Class A Voting shares Toronto, ON M4W 1G9 Price RCI.B on TSX Dividends (CUSIP # 775109101) Declared 416.935.7777 RCI.B – Class B Non-Voting shares 2020 High Low Close per Share (CUSIP # 775109200) CUSTOMER SERVICE AND First Quarter $67.34 $46.81 $58.74 $0.50 PRODUCT INFORMATION (NYSE): Second Quarter $63.40 $54.09 $54.55 $0.50 888.764.3771 or rogers.com RCI – Class B Non-Voting shares Third Quarter $58.68 $50.68 $52.82 $0.50 (CUSIP # 775109200) Fourth Quarter $61.66 $52.15 $59.26 $0.50 SHAREHOLDER SERVICES If you are a registered shareholder and have inquiries regarding your account, wish to change your name or Shares Outstanding at December 31, address, or have questions about lost stock 2020 certificates, share transfers, estate settlements or Class A Voting 111,154,811 dividends, please contact our transfer agent and registrar: DEBT SECURITIES Class B Non-Voting 393,770,507 For details of the public debt securities of the Rogers AST Trust Company (Canada) companies, please refer to the “Debt Securities” 2021 Expected Dividend Dates P.O. Box 700, Postal Station B section under investors.rogers.com Record Date*: Payment Date*: Montreal, QC H3B 3K3, Canada 416.682.3860 or 800.387.0825 INDEPENDENT AUDITORS March 10, 2021 April 1, 2021 [email protected] KPMG LLP June 10, 2021 July 2, 2021 Duplicate Mailings ONLINE INFORMATION September 9, 2021 October 1, 2021 If you receive duplicate shareholder mailings from Rogers is committed to open and full financial December 10, 2021 January 4, 2022 Rogers Communications, please contact AST Trust disclosure and best practices in corporate Company (Canada) as detailed above to consolidate governance.Weinviteyoutovisit * Subject to Board approval your accounts. investors.rogers.com where you will find additional information about our business, including events and Unless indicated otherwise, all dividends paid by INVESTOR RELATIONS presentations, news releases, regulatory filings, Rogers Communications are designated as “eligible” Institutional investors, securities analysts and others governance practices, corporate social responsibility dividends for the purposes of the Income Tax Act requiring additional financial information can visit and our continuous disclosure materials, including (Canada) and any similar provincial legislation. investors.rogers.com or contact us at: quarterly financial releases, annual information forms, and management information circulars. You may also DIVIDEND REINVESTMENT PLAN (DRIP) 647.435.6470 or subscribe to our news by email or RSS feeds to Rogers offers a convenient dividend reinvestment 416.935.7777 (outside North America) automatically receive Rogers news releases program for eligible shareholders to purchase or [email protected] electronically. additional Rogers Communications shares by reinvesting their cash dividends without incurring CORPORATE PHILANTHROPY DIRECT DEPOSIT SERVICE brokerage fees or administration fees. For plan For information relating to Rogers’ various Shareholders may have dividends deposited directly information and enrolment materials or to learn more philanthropic endeavours, refer to the “About into accounts held at financial institutions. To arrange about Rogers’ DRIP, please visit https:// Rogers” section of rogers.com direct deposit service, please contact AST Trust ca.astfinancial.com/InvestorServices/Search-DRIP or Company (Canada) as detailed earlier on this page. contact AST Trust Company (Canada) as detailed SUSTAINABILITY earlier on this page. Rogers is committed to continuing to grow responsibly and we focus our social and ELECTRONIC DELIVERY OF environmental sustainability efforts where we can SHAREHOLDER MATERIALS make the most meaningful impacts on both. To learn Registered shareholders can receive electronic notice more, please visit rogers.com/csr of financial reports and proxy materials by registering at https://ca.astfinancial.com/edelivery.This approach gets information to shareholders faster than conventional mail and helps Rogers protect the environment and reduce printing and postage costs.

Facebook CAUTION REGARDING FORWARD-LOOKING INFORMATION AND OTHER RISKS facebook.com/rogers This annual report includes forward-looking statements about the financial condition and Twitter prospects of Rogers Communications that involve significant risks and uncertainties that are @rogers detailed in the “Risks and Uncertainties Affecting our Business” and “About Forward-Looking LinkedIn Information” sections of the MD&A contained herein, which should be read in conjunction with linkedin.com/company/ all sections of this annual report. rogers-communications

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152 | ROGERS COMMUNICATIONS INC. 2020 ANNUAL REPORT The best is yet to come.