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MAKE MORE POSSIBLE Communications Inc. | 2019 Annual Report OUR PURPOSE

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

2 INC. 2019 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.

TABLE OF CONTENTS

PAGE 3 PAGE 4 PAGE 6 PAGE 8 PAGE 10

About Life at Bringing 5G to A Message A Message Rogers Rogers Canadians First from Edward from Joe

PAGE 12 PAGE 14 PAGE 15 PAGE 16 PAGE 150

A Year Senior Executive Directors 2019 Corporate and in Review Officers Financial Report Shareholder Information

2019 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 3 We are a team of proud Canadians who love to work at Rogers: 88% of our LIFE AT team recommend Rogers as a great # to work! Incredible rewards, benefits & workplace As a proud Canadian company, we offer some of the best benefits and perks around:

·· Terrific discounts on our products and services, including the Blue Jays ·· Robust Wealth Accumulation Program ·· On-site fitness and health centres ·· Open-concept workspaces and cafés to meet and collaborate

Amazing brands to build & grow your career Our amazing brands offer meaningful growth opportunities:

·· Over 100 brands to work for across radio stations, television stations, cable and wireless services, and sports ·· Invest more than $40 million in employee programs every year ·· Progressive programs for interns and new grads to get a head start in their career ·· Strong local teams in every major Canadian city

4 ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT An inclusive & diverse culture Our diverse team and culture are what set us apart:

·· 89% of our team say they feel included at work ·· Strong three-year inclusion and diversity targets ·· Recognized as one of ’s Best Diversity Employers

Inspiring vision & leadership We have strong, experienced leaders:

·· 87% of our team recommend their manager as a great person to work for ·· We have engaging, authentic and transparent leaders who care about their team

Strong commitment to the community and CSR We care deeply about the communities where we live and work, and integrating sustainability in our strategy:

·· We support the charities that matter most to our employees and help 80 charities through our annual volunteering program ·· CSR initiatives are focused on governance, our customers’ experience, our employees’ experience, our environmental footprint, community investment, and Canada’s economy

2019 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 5 Thirty-five years ago, Ted Rogers launched wireless services in Canada with a $500,000 loan. It was a bold and brave move. Ted’s courage and foresight laid the foundation for bringing 5G to Canadians. BRINGING 5G TO CANADIANS FIRST

Investing to build Canada’s only national

·· First to launch 1, 2, 3, 4G, and now 5G technology in Canada ·· Invested over $30 billion in wireless networks over the past 35 years

Introducing Canada’s first 5G network

·· Launched 5G in downtown , Toronto, , and ·· We will expand to over 20 more markets in 2020 ·· Deployed 5G technology on 2.5 GHz spectrum with 600 MHz to follow

6 ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT Partnering with Ericsson on 5G

·· Builds on Rogers and Ericsson’s 30+ year partnership

·· Ericsson is North America’s 5G partner of choice

Leading industry with 5G-ready unlimited plans

·· First national carrier to introduce unlimited data plans with no data overages ·· 1.4 million Canadians have already embraced these plans ·· Drove 65% growth in data usage from Rogers InfiniteTM users

Advancing 5G research and development

·· Investing in made-in-Canada technology

·· Established six key partnerships to research, incubate, and commercialize 5G technology ·· Collaborating with global telecom leaders on 5G applications, network engineering, and security, to accelerate 5G adoption

2019 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 7 Edward S. Rogers Chair of the Board Rogers Communications Inc.

A MESSAGE FROM EDWARD

Dear fellow shareholders,

2020 represents a milestone year for Rogers on two very guided those early transformational events still embodies historical and transformational fronts. the spirit of Rogers today.

The first was 60 years ago when Ted Rogers made a Rogers Communications is making the forward-looking bold decision to purchase CHFI radio, the country’s first decisions needed to drive the long-term success of all FM station. In those early days, only 5% of homes could our businesses. Not only are these investments expected receive the station’s FM signal while its AM competitors to create long-term value for shareholders, but they could boast 100% access based on their more demonstrate that Rogers remains committed to leading established format. our industry in innovation and keeping Canadians at the forefront of new technology. The second event occurred 35 years ago when Rogers made a visionary decision to launch a wireless network in Our customers are at the centre of everything we do, Canada. While this investment in an emerging industry and our priority is to provide Canadians with products was met with skepticism, our company persevered and and services that offer the best value and best customer the Cantel network launched its first wireless call on experience. With that in mind, Rogers was the first Canada Day in 1985. national telecom provider to offer Canadians unlimited wireless data plans. This customer-friendly rejuvenation While both of these decisions are important from of the marketplace is ensuring customers will no longer a historical basis, what is even more significant and have to endure overage charges. Our customers have common to both of these events is the underlying embraced these plans and we are excited they see entrepreneurial leadership and courage that was needed the value in what these plans will provide them going to turn risk into successful, long-term opportunities. forward.

As Rogers enters the next technology revolution of 5G, I We followed up on these popular plans with another am pleased to say that the successful and bold spirit that major technological event earlier this year when Rogers

8 ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT “We remain committed to leading our industry in innovation and keeping Canadians at the forefront of technology”

proudly launched Canada’s first 5G network. Like In 2019, we increased our dividend and completed the importance of bringing the wireless industry to notable share repurchases. Going forward, you should Canada 35 years ago, Rogers 5G will bring Canadians expect Rogers to maintain its disciplined and balanced entertainment, innovation, and powerful new tools to approach to capital allocation, with a prioritization assist in their personal lives and drive their professional on growing our core businesses, while still returning lives and businesses for years to come. meaningful amounts of capital to shareholders over the long term. Rogers remains the #1 choice for wireless needs with the most wireless customers in Canada. We also are the only Each of our three main businesses is a valuable company in Canada to offer Canadians a high-quality contributor to the social and economic fabric that makes coast-to-coast-to-coast wireless facilities-based network. Canada what it is today and what it will be in the future. I could not be happier with how the Rogers organization In our Cable business, we continued to roll out our has embraced this responsibility and how it is positioned innovative Ignite TV to more customers and we are to lead on these fronts. providing the fastest and most reliable speeds across our entire cable footprint. The multi-decade Rogers Communications is continuing to build on investments in our four-product Cable business are its legacy of putting customers first through driving ensuring our customers get the value, flexibility, and innovation, embracing entrepreneurship, and executing performance they require in these important home on to market. These are characteristics that Ted services. Rogers founded and built our company on and they drive our organization today. I am confident in our Board At Rogers, we have a strong foundation of sports and of Directors, our CEO, our management, and the more media assets and we are very proud of our national than 25,000 team members whose abilities, passion, and sports presence and the contribution teams like the Blue hard work will allow us to meet the challenges in front of Jays and Raptors make to Canada’s culture. We remain us today and rise to the exciting opportunities committed to making ongoing investments in our sports of tomorrow. and media assets as we bring the best content and formats to our Canadian viewers and fans. Edward S. Rogers Shareholders are benefitting from the successful Chair of the Board investments we are making across our businesses. Rogers Communications Inc.

2019 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 9 Joe Natale President and CEO Rogers Communications Inc.

A MESSAGE FROM JOE

My Fellow Shareholders,

I am pleased to share we made meaningful progress Social Responsibility is an integral part of our long-term on our strategic priorities in 2019. We delivered best-in- strategy decisions with a focus on governance, our class employee engagement, grew customer likelihood customers’ experience, our employees’ experience, our to recommend, and delivered industry-leading total environmental footprint, community investment, and shareholder return over the past three years. We also laid Canada’s economy. We report annually on our progress in the groundwork to introduce new innovative services and our Corporate Social Responsibility report, which is based technologies to Canadians. on independent external measurement of broad-based key indicators. Overall, we made a number of strategic moves to position Rogers for long-term growth. Investing in our customers’ experience In 2019, we continued to make significant headway on our Building a high-performing culture comprehensive multi-year plan to improve our customers’ I truly believe our success starts with our people – investing experience. I am pleased to share we grew customer in their growth and building a strong and inclusive culture. likelihood to recommend, improved service levels in In 2019, we continued to invest significantly in our team customer care, and grew online digital adoption. achieving an employee engagement score of 85%, five points above global best-in-class. We also introduced a number of innovative new services such as Rogers Pro On-the-Go and announced a new Our efforts were also recognized externally through customer solutions centre in , B.C. numerous employment awards, including being named one of Canada’s Top Employers for Young People and one Bringing Canadians a superior IPTV service of Canada’s Most Admired Corporate Cultures. We migrated 325,000 subscribers to Ignite TV. We significantly enhanced our product roadmap, launched Investing in our communities and Corporate Social global best-in-class WiFi hub technology, introduced Responsibility (CSR) customer self-install and added new content like Amazon We care deeply about the communities where we live Prime video. and work, and are committed to integrating sustainability into our strategy. In 2019, we contributed $14.1 billion Looking at 2020 we are excited about our product to Canada’s economic footprint. We helped 80 charities roadmap which includes enhanced smart home through our annual volunteering program and contributed technologies, video entertainment flexibility, and exciting more than $60 million in cash and in-kind investments to new content with the integration of popular streaming help our communities thrive across Canada. Corporate services.

10 ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT

Bringing Canadians worry- Wireless 2020 marks the start of our multi-year rollout of 5G In 2019, we led the industry with the launch of unlimited technology. Working with Ericsson, North America’s 5G data plans and announced simple, interest-free device partner of choice, we will bring 5G to over 20 markets financing. We made this bold move to stimulate data use including Vancouver, Toronto, Ottawa and Montreal. while improving our customer experience.

Rapid consumer adoption of these new plans reinforces the pent-up demand for clear, simple and worry-free “It is truly an exciting time for Wireless services. In the first 6 months, 1.4 million our company, our customers customers chose our Rogers Infinite plans. and our country ” While this move created short-term financial impact given the loss in data overage revenue, it was a critical step to 5G will support a massive increase in the number of reposition Wireless for 5G and the long-term. Despite this connected devices that will instantaneously connect transition, we still delivered strong growth in free cash everything – from smart cities and remote patient and adjusted EBITDA while revenue was flat. If you exclude healthcare, to robotics and driverless vehicles – it is the the impact of data overage losses, we continued to grow biggest technological transformation since the launch of the underlying fundamentals in Wireless. Our 2020 targets Wireless in 1985. reflect this continued transition. It is critical that we have a regulatory environment that This was a key strategic move and I am incredibly proud of facilitates and supports investment and allows a long-term our team for their leadership in this area. perspective.

Returning significant capital to shareholders Looking ahead In 2019, we continued to return capital to shareholders, It is truly an exciting time for our company, our customers, maintained the strength of our balance sheet, and and our country. The innovations happening across our delivered on our capital allocation priorities. industry will forever change how Canadians connect to each other and the world around them. We returned $1.7 billion in cash to shareholders through dividends and share buy-backs – an almost 70% increase As we celebrate our 60th anniversary in Canada, we will over last year. build on Ted’s legacy to connect Canadians to a world of possibilities and the moments that matter most in their Importantly, we delivered industry-leading total lives. shareholder returns of 36% over the past three years. I am tremendously proud of our team and their hard Investing in 5G and Canada’s digital future work and commitment to make more possible In 2019, we invested over $2.5 billion in digital for Canadians. infrastructure and network technology, the backbone of Canada’s digital economy. Thanks to these investments, My very best, Rogers was recognized with the "Best Network Experience" Joe in Wireless and the "Fastest Internet Service Provider" in our residential business.

2019 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 11 A YEAR IN REVIEW

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

·· Increased customer likelihood to recommend ·· Grew customer self-serve and online digital adoption ·· Introduced new device financing options to give customers more choice and transparency ·· Introduced Rogers Pro On-the-Go™, a new retail service that delivers and sets up wireless devices to a customer's location of choice

Deliver innovative solutions and compelling content that our customers will love

·· Led the industry with the launch of Rogers Infinite unlimited data plans with no overage fees ·· Launched Fido Data Overage Protection to help customers manage their wireless data, worry-free ·· Expanded Ignite TV™ service across the entire footprint ·· Invested $683 million to produce compelling

Invest in our networks and technology to deliver leading performance and reliability

·· Awarded "Best in Test" for overall wireless experience by Umlaut, a global benchmarking leader ·· Awarded the 2019 Speedtest Award for Canada’s fastest Internet by Ookla™ ·· Secured 600 MHz 5G spectrum in every single province and territory

12 ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT Drive profitable growth in all the markets we serve

·· Achieved revised 2019 financial guidance targets ·· Returned $1.7 billion to shareholders ·· Delivered industry-leading total shareholder return of 36% over the past three years ·· Delivered strong growth in Cable driven by Internet leadership

Develop our people and a high performance culture

·· Achieved a company-wide engagement score of 85%

·· Recognized with 10 employment awards, including one of Canada’s Most Admired Corporate Cultures

·· Recognized by the 2019 Bloomberg Gender-Equality Index for transparency in gender reporting

·· Included on the LGBT Corporate Canadian Index for advancing equality in the workplace

Be a strong, socially responsible leader in our communities across Canada

·· Contributed $14.1 billion to Canada’s economic footprint ·· Contributed more than $60 million in cash and in-kind investments to help our communities thrive ·· We report annually on our progress in a Corporate Social Responsibility report and utilize an outside firm to provide assurance on our key performance indicators

2019 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 13 SENIOR EXECUTIVE OFFICERS As at March 5, 2020

1 2 3 4 5

6 7 8 9 10

11 12

1. Joe Natale 7. Brent R. Johnston President and President, Wireless Chief Executive Officer 8. Graeme McPhail 2. Eric P. Agius Chief Legal and Regulatory Officer Chief Customer Officer and Secretary

3. Jordan R. 9. Sevaun T. Palvetzian President, Media Chief Communications Officer

4. Lisa L. Durocher 10. Dean Prevost Chief Digital Officer President, Rogers for Business

5. Jorge Fernandes 11. James M. Reid Chief Technology and Chief Human Resources Officer Information Officer

12. Tony Staffieri,FCPA , FCA 6. Philip J. Hartling Chief Financial Officer President, Connected Home

14 ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT DIRECTORS As at March 5, 2020

1 2 3 4 5

6 7 8 9 10

11 12 13 14

1. Edward S. Rogers 7. Philip B. Lind, C.M. 12. Loretta A. Rogers Chair Vice Chair Company Director

2. John H. Clappison, FCPA, FCA 8. John A. MacDonald 13. Martha L. Rogers Lead Director Company Director Company Director

3. Bonnie R. Brooks, C.M. 9. Isabelle Marcoux, C.M. 14. Melinda M. Rogers Company Director Chair, Transcontinental Inc. Deputy Chair

4. Robert Dépatie 10. Joe Natale Company Director President and Chief Executive Officer 5. Robert J. Gemmell Company Director 11. The Hon. David R. Peterson, PC, QC 6. Alan D. Horn, CPA, CA Chairman Emeritus, President and Chief Cassels Brock & Blackwell LLP Executive Officer,Rogers Limited

2019 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 15 MANAGEMENT’S DISCUSSION AND ANALYSIS

2019 Financial Report

17 MANAGEMENT’S DISCUSSION AND ANALYSIS 51 Managing Our Liquidity and Financial Resources 51 Sources and Uses of Cash 19 Executive Summary 54 Financial Condition 19 About Rogers 56 Financial Risk Management 19 2019 Highlights 59 Dividends and Share Information 21 Financial Highlights 61 Commitments and Contractual Obligations 61 Off-Balance Sheet Arrangements 22 Understanding Our Business 22 Products and Services 62 Governance and Risk Management 23 Competition 62 Governance at Rogers 25 Industry Trends 63 Social Responsibility 64 Income Tax and Other Government Payments 27 Our Strategy, Key Performance Drivers, and Strategic 65 Risk Management Highlights 66 Risks and Uncertainties Affecting Our Business 27 Our Strategic Priorities 73 Controls and Procedures 28 2019 Objectives 28 Key Performance Drivers and 2019 Strategic Highlights 74 Regulation In Our Industry 30 2020 Objectives 76 Wireless 30 Financial and Operating Guidance 78 Cable 80 Media 32 Capability to Deliver Results 32 Leading Networks 82 Other Information 34 Powerful Brands 82 Accounting Policies 34 Widespread Product Distribution 87 Key Performance Indicators 34 First-Class Media Content 89 Non-GAAP Measures and Related Performance 35 Customer Experience Measures 35 Engaged People 91 Summary of Financial Results of Long-Term Debt 35 Financial Strength and Flexibility Guarantor 36 Widespread Shareholder Base and Dividends 92 Five-Year Summary of Consolidated Financial Results

37 2019 Financial Results 37 Summary of Consolidated Results 38 KeyChangesinFinancialResultsThisYearComparedto 2018 39 Wireless 40 Cable 42 Media 43 Capital Expenditures 44 Review of Consolidated Performance 47 Quarterly Results 50 Overview of Financial Position

16 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 17 | , , guidance anticipate , , may , project , expect ROGERS COMMUNICATIONS INC. plan , , al facts are forward-looking could estimate , 2019 ANNUAL REPORT intend , , and similar expressions, although not all forward- believe , assume outlook, target looking 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; date of thisassumptions 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 • includes conclusions, forecasts, and projections that are based • was approved by our managementOur on the forward-looking date of information this MD&A. and 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; reduction of our debt• leverage ratio; all and other statements that areSpecific not historical forward-looking facts. informationthis included MD&A or incorporated includes,statements in but under is “Financial and notour Operating 2020 limited consolidated Guidance” guidance to, relating onEBITDA, to our total service information revenue, capital adjusted and statements expenditures, that andinformation. are free not cashWe base flow. historic our conclusions, All forecasts,aforementioned guidance) and on projections other the (including following the factors,• among others: general economic and industry• growth rates; currency exchange rates and• interest 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;• and industry structure and stability. refers RCI refers to the the Company and refers to the twelve refers to the three last year refers to the three months refers to the three months ,thisyear ssion cost asset balances”. We nto Stock Exchange (TSX: RCI.A and Analysis (MD&A) contains business and our performance for fourth quarter refers to the three months ended (IFRS 16), that is discussed in “Accounting 2020 Rogers Communications third quarter © second quarter Leases first quarter Rogers and related marks are trademarks of Rogers twelve months ended December 31,is 2018. All results compared commentary December 31, to 2018, as applicable, the unless otherwise indicated. equivalentEffective January periodsstandard, 1, IFRS in 16, 2019, 2018Policies” we in or this MD&A. adoptedeffect as The adoption the on of at our IFRS newmethod, we 16 have reported had accounting not restated a results. our significant prior Due year comparatives. Effective to January 1, 2019, our wemeasure, redefined selected free such cash transition flow, that acontract we non-GAAP asset no and longer deferredredefined commi adjust free for the cashremoving this “ flow adjustment will change make to in usindustry. more simplify comparable See within this our “Non-GAAPMeasures” measure for more Measures information. and and believe Related Performance ended September 30,months 2019, ended December 31,months 2019 ended December 31, 2019, and Communications Inc. or anbrand affiliate, names, logos, used and under markstheir are licence. respective trademarks All owners. and/or copyright other of ABOUT FORWARD-LOOKING INFORMATION This MD&A includes “forward-lookinglooking information” statements” and within “forward- laws the (collectively, meaning “forward-looking information”), ofabout, and among applicable assumptions other securities things, ourperformance business, and operations, condition and approved financial by our management on the ™ Management’s Discussion and Analysis This Management’s Discussion important information about our refer to Rogers Communications Inc.to and its the subsidiaries. legal 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 2019. This MD&A should with beStatements, read in our whichInternational 2019 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 rounded numbers theyMarch appear 5, 2020 in andBoard). was approved the by This RCI’s tables.assumptions. Board MD&A of See This Directors “About includes (the Forward-Looking MD&Ainformation. Information” forward-looking for is statements more current and We, as us, our, at Rogers, Rogers Communications, March 31,ended 2019, June 30, 2019, 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, monetizations, 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; • litigation and tax matters; FOR MORE INFORMATION • the level of competitive intensity; You can find more information about us, including our Annual • the emergence of new opportunities; and Information Form, on our website (investors.rogers.com), on • new interpretations and new accounting standards from SEDAR (sedar.com), and on EDGAR (sec.gov), or you can e-mail us accounting standards bodies. at [email protected]. Information on or connected These factors can also affect our objectives, strategies, and to these and any other websites referenced in this document does intentions. Many of these factors are beyond our control or our not constitute part of this MD&A. current expectations or knowledge. Should one or more of these You can also find information about our governance practices, risks, uncertainties, or other factors materialize, our objectives, corporate social responsibility reporting, a glossary of strategies, or intentions change, or any other factors or communications and media industry terms, and additional assumptions underlying the forward-looking information prove information about our business at investors.rogers.com. incorrect, our actual results and our plans could vary significantly from what we currently foresee.

18 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 19 | ted %Chg 1 ures. These are not esults have not been on. 196 (29) 9.0% (2.2 pts) 2,168 (4) 1,874 2 3,932 1 4,090 6 9,200 1 4,2887,091 6 1 5,9832,241 4 (5) 2,7902,134 1 7 2,059 (1) 47.7% 0.8 pts 44.5% 2.5 pts 39.6% 1.6 pts 2018 12,974 – 15,096 – ions to right-of-use assets. $4.00 – $4.35 (4) ROGERS COMMUNICATIONS INC. Years ended December 31 140 6.8% 2019 2,072 1,919 3,954 4,345 9,250 4,526 7,156 6,212 2,135 2,807 2,278 2,043 48.5% 47.0% 41.2% 12,965 15,073 $3.99 $4.17 2019 ANNUAL REPORT included in our results prospectively from that date. Our 2018 r Almost all of ourhighly operations skilled and and salesemployees. are diversified Our in workforce Canada. head of Wenumerous office have approximately is a offices 25,300 inoperations Toronto, across in 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 on-GAAP Measures and Related Performance Measures” for more informati luding how we calculate them and the ratios in which they are used. e ongoing impact of this standard ent net of proceeds on disposition, but does not include expenditures for spectrum licences or addit 3 3 4 3 2 3 3,5 Includes additions to property, plant and2018 equipm free cash flow has been restated to adapt to our current definition. See “N Effective January 1, 2019, we adopted IFRS 16, withAs defined. th See “Key Performance Indicators”. Adjusted EBITDA, adjusted net income, and free cash flow are non-GAAP measur restated for the effect of IFRS 16. See “Accounting Policies”. 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 Adjusted EBITDA Adjusted EBITDA margin Adjusted EBITDA margin Media Revenue Adjusted EBITDA Adjusted EBITDA margin Cable Revenue Adjusted EBITDA Free cash flow Revenue Adjusted EBITDA margin Basic earnings per share Adjusted basic earnings per share Cash provided by operating activities Wireless Service revenue Adjusted net income Adjusted EBITDA Consolidated Total revenue Total service revenue (In millions of dollars, except margins and per share amounts) 4 5 1 2 3 KEY FINANCIAL INFORMATION 2019 HIGHLIGHTS Rogers is a proudpossible Canadian company dedicated for toTed making Canadians Rogers, more purchased eachhave his grown first to and become radio athat station, leading every technology CHFI, strives and in day. media to company media 1960. provide We Our to the Canadians very founder, publicly and best traded Canadian in onRCI.B) the wireless, businesses. and Toronto on residential, Our the Stock New and shares York Exchange Stock are Exchange (TSX: (NYSE: RCI). RCI.A and Executive Summary ABOUT ROGERS Capital expenditures Net income MANAGEMENT’S DISCUSSION AND ANALYSIS

KEY PERFORMANCE INDICATORS As at or years ended December 31 2019 2018 1 Chg

Subscriber results (in thousands) 2 Wireless postpaid net additions 334 453 (119) Wireless prepaid net losses (97) (152) 55 Wireless subscribers 3 10,840 10,783 57

Internet net additions 104 109 (5) Internet subscribers 2,534 2,430 104

Television net losses (106) (55) (51) Television subscribers 1,579 1,685 (106)

Phone net (losses) additions (44) 8 (52) Phone subscribers 1,072 1,116 (44)

Total service unit net (losses) additions 4 (46) 62 (108) Total service units 4 5,185 5,231 (46)

Additional Wireless metrics 2 Postpaid churn (monthly) 1.11% 1.10% 0.01 pts Blended ABPU (monthly) $ 66.23 $ 64.74 $ 1.49 Blended ARPU (monthly) $ 55.49 $ 55.64 ($ 0.15)

Ratios Capital intensity 2 18.6% 18.5% 0.1 pts Dividend payout ratio of net income 2 50.0% 48.0% 2.0 pts Dividend payout ratio of free cash flow 2,5 44.9% 46.3% (1.4 pts) Return on assets 2 5.5% 6.5% (1.0 pts) Debt leverage ratio 5 2.9 2.5 0.4

Employee-related information Total active employees 25,300 26,100 (800)

1 Effective January 1, 2019, we adopted IFRS 16, with the ongoing impacts of this standard included in our results prospectively from that date. Our 2018 results have not been restated for the effects of IFRS 16. See “Accounting Policies”. 2 As defined. See “Key Performance Indicators”. 3 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 is 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 basetoremove127,000 subscribers as a result of a change to our deactivation policy from 180 days to 90 days to be more consistent within the industry. 4 Includes Internet, Television, and Phone subscribers. 5 These ratios use free cash flow, adjustedEBITDA,andadjustednetdebt,allofwhicharenon-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.

20 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 21 | ROGERS COMMUNICATIONS INC. discussed above, which led to a dividends and our normal course eration enabled us to continue 2019 ANNUAL REPORT issuer bid (NCIB) programs. Wein paid 2019. $1,016 million In in addition, dividends weNCIB programs purchased for 9.9 $655 million million in shares 2019. under our year, primarily as aflow result increased 7% of this higher yearadjusted to adjusted $2,278 EBITDA. million Free as EBITDA, a cash borrowings. result of higher partially offsetfrom by 2.5 as higher at600 December MHz 31, spectrum interest 2018, licences driven inIFRS 2019 by 16, on and which the the contributed acquisition 0.2 impact of of of the adopting increase. at December 31, 2019 (2018average – 4.45%) term and to ourDecember overall 31, maturity weighted 2019 (2018 on – 10.7 years). our debt wasavailable 14.1 liquidity years (2018(2018 – – as $2.4 $1.6 billion) at available billion),facilities, under our including $0.4 billion and $1.6 letter$1.05 (2018 of billion credit billion – accounts $0.4$0.5 billion billion) receivable (2018 – available securitization $0.4 billion) under in program, cash our and and cash equivalents. 5% primarily as a resultand of higher higher depreciation finance andEBITDA. amortization costs, See “Review partiallyinformation. of offset Consolidated by Performance” higher for more adjusted making investments incapital to our shareholders through network and returning substantial strong Internet revenue growth and various cost efficiencies. result of decreased revenuemargin as of 6.8%, down 220the basis points impact from last ofdistribution year. Excluding the from saleadjusted EBITDA Major of would have increased our League by 1% publishing this Baseball year. business last and the year, Media • Our cash provided by operating activities increased by 6% this • Our debt leverage ratio was 2.9 as at December 31, 2019, up • Our overall weighted average cost of borrowings was 4.30% as • We ended the year with approximately $2.5 billion of NET INCOME AND ADJUSTED NET INCOME • Net income decreased 1% and adjusted net income decreased SUBSTANTIAL FREE CASH FLOW SUPPORTS FINANCIAL FLEXIBILITY • Our substantial cash flow gen • Cable adjusted EBITDA increased 2%• this Media year adjusted EBITDA as decreased a 29% this result year of primarily as a ™ Rogers Infinite partially offset by higher s a result of the faster-than- unlimited dataenvironment plans) in the second and half of 2019. an elevatedInternet competitive revenue, due to market thehigher general movement speed of and customerspricing to usage changes, and tiers, a larger thepartially subscriber offset impact base. by The of lower increasedue Television Internet was to and Television service Phone and revenue, Phoneand subscriber primarily losses the over impact the of pastWe promotional year continue pricing to provided see tomargin an subscribers. ongoing Internet shift services, inbase product with at mix 68% the to100megabitspersecondorhighercomparedto60%atthe of higher- end our of residential 2019end of Internet on 2018. plans with download speedspublishing of business during theToronto year and Blue lowerMajor revenue Jays, League at the primarily Baseball due in 2018, to a distribution from and TSC revenue. Excludingour publishing the business impact and of the theBaseball distribution sale from last of Major League year,1% this year. Media revenue would have increased by adjusted EBITDA marginpoints. of 41.2%, This an increase250 expansion was basis of point primarily expansion 160 to drivenpoint basis 47.0%, expansion and to by Cable, 48.5%. with Wireless, an 80 with basis a the impactapproximately 4% ofefficiencies of and productivity initiatives. adopting the overall IFRS growth, and 16, various which cost contributed expected subscriber adoption of our new service revenue growth ofrevenue. 1%, offset by a 4% decline incontinuing Media to monetize thefirst increasing half demand of for thesubscriber data year base in along management. the with Thisby a increase a decrease was disciplined in partially approach overage offset around revenue (a • Cable revenue increased by 1% as a result of the 7% increase in • Media revenue decreased as a result of the sale of our ADJUSTED EBITDA • Adjusted EBITDA increased 4% this year, with a consolidated • Wireless adjusted EBITDA increased 6% this year as a result of FINANCIAL HIGHLIGHTS REVENUE • Revenue remained stable this year, driven by Wireless and Cable • Wireless service revenue increased largely as a result of MANAGEMENT’S DISCUSSION AND ANALYSIS

Understanding Our Business Rogers is a leading Canadian technology and media company. In 2019, we were the first national carrier to launch unlimited data through our Rogers Infinite plans. These plans provide customers THREE REPORTABLE SEGMENTS with a shareable pool of high-speed LTE data and unlimited data at We report our results of operations in three reportable segments. reduced speeds thereafter, thereby eliminating data overage fees Each segment and the nature of its business are as follows: on these plans. The reduced speed data is fast enough to send instant messages and emails, browse the Internet, engage in social Segment Principal activities media, or stream standard definition video. Wireless Wireless telecommunications operations for Canadian consumers and businesses. CABLE Cable Cable telecommunications operations, including We are one of the largest cable providers in Canada. Our cable Internet, television, (phone), and smart network provides an innovative and leading selection of high- home monitoring services for Canadian speed broadband Internet access, and online consumers and businesses, and network viewing, phone, smart home monitoring, and advanced home WiFi connectivity through our fibre network and data services to consumers in Ontario, , and on the island centre assets to support a range of voice, data, of Newfoundland. We also provide services to businesses across networking, hosting, and cloud-based services for Canada that aim to meet the increasing needs of today’s critical the business, public sector, and carrier wholesale business applications. markets. In 2018, we launched our new Internet protocol (IP) television Media A diversified portfolio of media properties, ™ including sports media and entertainment, product, Ignite TV , to our entire Ontario Cable footprint; in 2019, television and radio , specialty we expanded Ignite TV to our remaining Cable footprint in New channels, multi-platform shopping, and digital Brunswick and Newfoundland. Ignite TV, which is licensed from media. Corporation (Comcast), delivers a high-value, premium service with advanced features and video experiences and is the See “Capability to Deliver Results” for more information about our foundation to a robust product roadmap of innovation leading to a extensive wireless and cable networks and significant wireless truly connected home service. spectrum position. We have adopted Comcast’s new WiFi solution as a next step on our Wireless and Cable are operated by our wholly owned subsidiary, innovation roadmap. This whole-home networking solution provides Rogers Communications Canada Inc. (RCCI), and certain of our customers with a simple, fast, and intuitive way to control and other wholly owned subsidiaries. Media is operated by our wholly manage their connected devices. The cloud-based platform links to owned subsidiary, Rogers Media Inc., and its subsidiaries. Data Over Cable Service Interface Specifications (DOCSIS) 3.1 WiFi gateway devices to deliver fast, reliable connectivity in the home and allows customers to easily add and control devices and pair PRODUCTS AND SERVICES Ignite WiFi™ pods that boost signal strength, and use voice controls WIRELESS toseewhoisonthenetwork,allinasafeandsecuremanner. Rogers is a Canadian leader in delivering a range of innovative Internet services include: wireless network technologies and services. Our postpaid and • Internet access (including basic and unlimited usage packages), ™ ™ prepaid wireless services are offered under the Rogers ,Fido , security solutions, and e-mail; ™ and brands, and provide consumers and businesses with • access speeds of up to one gigabit per second (Gbps), covering the latest wireless devices, services, and applications including: our entire Cable footprint; • mobile high-speed Internet access, including our Rogers Infinite • Rogers Ignite™ and Fido Internet unlimited packages, combining unlimited data plans; fast and reliable speeds with the freedom of unlimited usage • wireless voice and enhanced voice features; and options for self-installation; ™ • Rogers Pro On-the-Go , a personalized service experience for • Rogers Ignite WiFi Hub, offering a personalized WiFi experience device delivery and setup to a customer’s location of choice with a simple digital dashboard for customers to manage their within the service area; home WiFi network, providing visibility and control over family • device financing; usage; and • wireless home phone; • Rogers™ Smart Home Monitoring, offering services such as • device protection; monitoring, security, automation, energy efficiency, and smart • text messaging; control through a app. •e-mail; • global voice and data roaming, including Roam Like Home™ Television services include: and Fido Roam™; • local and network TV, made available through traditional digital • bridging phones with wireless phones through products or IP-based Ignite TV, including starter and premium channel like Rogers Unison™; packages along with à la carte channels; • machine-to-machine solutions and Internet of Things (IoT) • on-demand television; solutions; and • cloud-based digital video recorders (DVRs) available with Ignite • advanced wireless solutions for businesses. TV services;

22 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 23 | , , ™ ™ Platinum ;and Sportsnet ™ ™ ,JACKFM ™ Rogers ,KiSS , ™ NOW ROGERS COMMUNICATIONS INC. ; , credit cards that allow ™ ian retail distribution outlets. l conventional and specialty s a highly competitive industry ce providers and plan offerings. ; ent next-generation technology ™ Mastercard ™ , Sportsnet The FAN World Elite Mastercard ™ Fido 2019 ANNUAL REPORT ™ ,and ™ Sportsnet NOW+ Rogers . 680 NEWS multicultural broadcast television stations, including , ™ ,andthe network, which, together with affiliated stations, has ™ ,and ™ ™ , Canada’s only nationally televised shopping channel, ™ ™ SONiC OMNI Regional, which provide multilingualto all newscasts digital nationally basic television subscribers; OLN (formerly Outdoor Life Network); and associated with our various brands and businesses. broadcast distributionindividuals; to approximately 82% of Canadian which generates a significant andfrom growing online portion sales. of its revenue 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 NOW • specialty channels that include FX (Canada),•TSC FXX (Canada), and customers tospending. earn cashback rewards points on • a range of other websites, apps, podcasts, and digital products Mastercard • other digital assets including FXNOW and •OMNI In Radio, weacross operate 55 Canada, AM98.1 CHFI and including FM radio popular stations in radio markets brands such as and •Citytv OTHER We offer the 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 COMPETITION The telecommunications industry i served by manyconsumers a national, broad choice regional,The in servi and industry reseller iscontinual players very investments giving to capitaland implem intensive to support and existingnature requires infrastructure. of Given the meaningful, the industry,further highly the influenced regulated already by competitiveIndustry”). regulatory dynamic change could be (see “Regulation In Our We also holdpublicly a traded number companies, ofCommunications including Inc. interests in Inc. marketable and securities Cogeco of We also offer a range of• digital services our and products, digital including: sports-related assets, including NHL LIVE, In Television,television we networks, including: operate• severa Sportsnet’s four regional stations along with 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 home games and select marquee National Hockey ™ event venue, which hosts the ’ home ™ League (NHL) and National Basket personal computers through the and 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) on their smartphone, onto your smartphone or tablet toIgnite TV watch app; at a later time using the Prime Video on Ignite TV; Blue Jays • 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 Sports from Media and coast Entertainment,Canada’s we only to own Major the League Toronto Baseball Blue (MLB) Jays, team, and the Centre • voice-activated remote controls games, concerts, trade shows, and special events. Our agreementthrough with the 2025-2026 the NHL season, a NHL (NHL Agreement), which runs 1,200 regularsmartphones, season tablets,traditional games and streaming services personal per asgrants computers, well Rogers season national as rights both through on thosePlayoffs NHL across platforms through and LIVE. to the Stanley It Stanley television, Cup also Cup non-game Final, events all NHL-related (such specialDraft), as and events the rights and to NHL sublicense broadcasting All-Star rights. Game and the NHL • 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,Enterprise call services waiting, include: and long 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 Download to and Go, experience the ability to download recorded programs • linear and time-shifted programming; • digital specialty channels; • 4K television programming, including regular season MANAGEMENT’S DISCUSSION AND ANALYSIS

Traditional wireline telephony and television services are now CABLE offered over the Internet. Consumers continue to change how they Internet choose to communicate or watch video, and this is changing the We compete with other Internet service providers (ISPs) that offer mix of packages and pricing that service providers offer and could fixed connection residential high-speed Internet access services. affect churn levels. Rogers and Fido high-speed Internet services compete directly with, among others: In the media industry, there also continues to be a shift in consumer • Bell’s Internet services in Ontario, New Brunswick, and on the viewing habits towards digital and online media consumption and island of Newfoundland; and advertisers are directing more advertising dollars to those media • various resellers using wholesale company channels. In addition, we now compete with a range of digital and digital subscriber line (DSL) and cable Third-Party Internet Access online media companies, including large global companies. (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, and own competitors that usually focus on the geographic areas in branding and positioning. which they have the most extensive networks. In the enterprise • Wireless technology – our extensive long-term evolution market, we compete with facilities- and non-facilities-based (LTE) network caters to customers seeking the increased telecommunications service providers. In markets where we own capacity and speed it provides. We are also working to network infrastructure, we compete with incumbent fibre-based expand our 5G network to further these capabilities. We providers. Our main competitors are as follows: compete with BCE Inc. (Bell) and Corporation (Telus) • Ontario – Bell, Cogeco Data Services, and Zayo; at a national level, and with Inc. • – Bell, Telus, and Videotron; (Shaw), Videotron, SaskTel, and Inc. (Eastlink) at a • – Bell and Eastlink; and regional level, all of whom operate LTE networks. We also • – Shaw and Telus. compete with these providers on high-speed packet access (HSPA) and global system for mobile communications Television (GSM) networks and with providers that use alternative We compete with: wireless technologies, such as WiFi “hotspots” and mobile • other Canadian multi-channel broadcast distribution undertakings virtual network operators (MVNO), such as Primus. (BDUs), including Bell, Shaw, and other satellite and IPTV • Product, branding, and pricing – we compete nationally with Bell, providers; Telus, and Shaw, including their flanker brands Virgin Mobile • over-the-top (OTT) video offerings through providers like Netflix, (Bell), (Bell), Koodo (Telus), (Telus), YouTube, Apple, Amazon Prime Video, Crave, , Disney+, and (Shaw). We also compete with various and other channels streaming their own content; and regional players and resellers. • over-the-air local and regional broadcast television signals • Distribution of services and devices – we have one of the largest received directly through antennas, the illegal distribution of distribution networks in the country, and compete with other Canadian and international channels via video streaming boxes, service providers for dealers, prime locations for our own stores, and the illegal reception of US direct broadcast satellite services. and third-party retail distribution shelf space. • Wireless networks – consolidation amongst regional players, or Phone with incumbent carriers, could alter the regional or national While Phone represents a small portion of our business, we competitive landscapes for Wireless. compete with other telephony service providers, including: • Spectrum – we currently have the largest spectrum position in • Bell’s wireline phone service in Ontario, New Brunswick, and on the country. Innovation, Science and Economic Development the island of Newfoundland; Canada (ISED Canada) has announced that flexible use licences • incumbent local exchange carrier (ILEC) local loop resellers and in a 200 MHz frequency range from 3450-3650 MHz will be voice over IP (VoIP) service providers (such as Primus and issued to both existing and new wireless licensees, with an ), other VoIP-only service providers (such as auction of the 3500 MHz spectrum not retained by existing and Skype), and other voice applications riding over the Internet licensees to occur in December 2020. The 3500 MHz spectrum, access services of ISPs (such as Facebook and WhatsApp); and along with other frequency bands, is essential to the deployment • substitution of wireline for wireless products, including mobile of 5G networks. An additional future high-frequency spectrum phones and wireless home phone products. release is currently planned to take place in 2022. The outcome of these auctions may increase competition. See “Regulation In Our Industry” for more information.

24 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 25 | ROGERS COMMUNICATIONS INC. itional competitors, consumer ments are key areas influencing ta. Mobile commerce continues e these speeds, cable and wireline ing in the next generation of es. This may negatively impact 2019 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 and available televised serving being 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 wholesale to access and Internet servicesIndustry” lower (see for rates “Regulation more In information). Our mayCable also and wireline companies are adversely expandingto their service offerings affect includeincluding faster Rogers, are broadband1 increasingly Gbps or Internet. offering higher download andConsumers Internet Canadian are speeds offerings demanding with of companies, unlimited faster-than-everonline . speeds media, for streaming uploadingvideo personal games, content, anddevices. for and In order their playing to ever-growing helpcompanies online facilitat number are shifting of theircapacity connected networks DOCSIS towards 3.1 higher and speed fibre-to-the-home and (FTTH) technologies. 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 plans. firstcarriers Along national in with carrier Canadaplans Rogers, in have certain Canada introduced that other new to areincreased unlimited launch wireless consumer simpler wireless data for usage, data were being and customers incurred eliminate on legacy to overage plans. fees understand, that To allow help make for the costconsumers, of Rogers new and wireless other devicesintroduced Canadian more affordable wireless wireless for carriers have devicefinance also the financing, full whereby0% cost consumers interest. of can 24 We months will the reduce believe subscriber churn. device being overIn able a addition to to 24-monthsubscribers the finance are term wireless increasingly devices bringing device at theirtheir financing over existing own devices plans devices 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 89% is of the expectedAmerica to Merrill Lynch continue October growing, 2019 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; 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. TSC competes with: • retail stores and their• related e-commerce web-only websites; e-commerce sites, including• social commerce; infomercials 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, both ofregional which content, compete are for both audiences focused and• on advertisers with: local other and Canadian television and radio 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

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 Our business customers use fibre-based access and cloud Consumer viewing behaviours are continually evolving and the computing to capture and share information in more secure and industry continues to adjust to these changes. Access to live sports accessible environments. This, combined with the rise of and other premium content has become even more important for multimedia and Internet-based business applications, is driving acquiring and retaining audiences that in turn attract advertisers exponential growth in data demand. and subscribers. Therefore, ownership of content and/or long-term agreements with content owners has also become increasingly Businesses and all levels of government are transforming data important to media companies. Leagues, teams, networks, and centre infrastructure by moving toward virtual data storage and new digital entrants are also experimenting with the delivery of live hosting. This is driving demand for more advanced network sports content through online, social, and virtual platforms, while functionality, robust, scalable services, and supportive dynamic non-traditional sports are also growing in mindshare. network infrastructure. Consumer demand for digital media, content on mobile devices, Canadian wireline companies are dismantling legacy networks and and on-demand content is increasing and media products, such as investing in next-generation platforms and data centres that magazines, have experienced significant digital uptake, requiring combine voice, data, and video solutions onto a single distribution industry players to increase their efforts in digital content and and access platform. As next generation platforms become more capabilities in order to compete. This trend is also causing popular, our competition will begin to include systems integrators advertisers to shift their spending from conventional TV and print and manufacturers. publishing to digital platforms. Devices and machines are becoming more interconnected and Competition has changed and traditional media assets in Canada there is more reliance on the Internet and other networks to are increasingly being controlled by a small number of competitors facilitate updates and track usage. with significant scale and financial resources in order to compete with digital competitive factors. Technology has allowed new Broadcast television technology continues to improve with 4K TV entrants and even individuals to become media players in their own broadcasts and high dynamic range (HDR) for higher resolution right. and improved video image colour and saturation. Some players have become more vertically integrated across both The CRTC Basic Telecommunications Services decision in 2016 traditional and emerging platforms. Relationships between established several criteria to improve Internet access for Canadian providers and purchasers of content have become more complex. residents and businesses. As a result, the CRTC believes fixed Global aggregators have also emerged and are competing for broadband subscribers should have access to speeds of at least both content and viewers. 50 Mbps download and 10 Mbps upload, and access to a service with an unlimited data allowance.

26 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 27 | ROGERS COMMUNICATIONS INC. after media assets in Canada, 2019 ANNUAL REPORT ectives to measure progress on our six strategic priorities and to DEVELOP OUR PEOPLE AND A HIGHCULTURE PERFORMANCE Our people and our cultureand are the their heart andremarkable. soul passion A of our high-performing for success, and culture that is our starts integral byemployees. to customers We investing our are in and working success toand our strengthen our team to our employment and make brand companyretaining their Rogers the experience is a best as top talent.and This employer means known diverse fosteringperformance. for an attracting open, workplace trusting, and groundedBE A STRONG, in SOCIALLY RESPONSIBLE LEADERCOMMUNITIES IN ACROSS OUR accountability CANADA Givingbackwhereweliveandworkisanimportantpartofwhowe and are. Our goal is toin be each a region relevant of andlocal respected our community country. teams leader Thiscommunities means to and leveraging our beprogram. to strong active deliver a and strong, engaged regionally volunteers empowered in our DRIVE PROFITABLE GROWTH IN ALL THESERVE MARKETS WE The overarching goal of oura plan sustainable is way to and accelerate to revenuecash growth translate in flow, it into return strong on margins, assets,is profit, and free on returns to our shareholders.management Our to core support focus future investments. growth drivers with a strong capability in cost Rogers has some of theincluding most a sought- deep roster ofand leading award-winning sports assets, television top programming. radiobe Canadians stations, able expect to to consumewant. the content We they want, willaudiences when continue and value where to they andchoice. invest want in most, delivering delivered the on content their our screens of vations from across the globe, -in-class customer experience, customers first in everything we do; performance and reliability; customers will love; across Canada. making them more cost-effective for us. DELIVER INNOVATIVE SOLUTIONS AND COMPELLING CONTENTTHATOURCUSTOMERSWILLLOVE Innovation has always been acompelling part products and of innovative our solutions DNA. tomake We our customers strive their that to deliver livestechnologies and easier. remarkable We inno will do this by leveraging proven INVEST IN OUR NETWORKS AND TECHNOLOGYDELIVER TO LEADING PERFORMANCE AND RELIABILITY We believe thatworld-class networks performance are the isdeliver lifeblood critical high-performing of to our network ourperformance business and services future. and reliability. Our with Ourwill investments plan a allow in is our focus us cable to toand on network reliability. continue Accelerated core to investments improve innecessary our to Cable wireless keep Internet network up performance are while with launching our 5G in customers’ Canada. growing data demands Everything starts and endsexperience with is our core customers, to so ourend-to-end service improving strategy. experiences We their by obsess listening overour carefully our customers to the and customers’ voice to of thefocus voice of on our frontline. making We thingswhile will continue clear, we to simple, evolve anddigital our fair capabilities channel for so strategy our ourexperiences and across customers customers our continue channels. have to reliable build and our consistent 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 of network many and strengths,best-in-class media including assets. engagement, Our our focus is aand clear: industry-leading deliver shareholder best value. To achieve this vision, our strategic• priorities are Create as follows: best-in-class customer• experiences Invest by in putting our• networks our Deliver and innovative technology solutions and to• compelling deliver Drive content profitable growth leading that in• all our the Develop markets our we people serve; and• a high Be performance culture; and a strong, socially responsible leader in our communities 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

2019 OBJECTIVES For 2019, we set forth the following objectives related to our strategic priorities.

Strategic Priority 2019 Objectives Create best-in-class customer experiences by putting our Improve our end-to-end customer experience by creating customers first in everything we do frictionless multi-channel capabilities; invest in distribution improvements; simplify frontline tools; and deliver personalized online tools and apps to improve our customers’ experiences Invest in our networks and technology to deliver leading Deliver network performance and a system stability plan that performance and reliability supports our 5G and Connected Home roadmaps by increasing our fibre deployments, densifying our network, and modernizing our IT systems Deliver innovative solutions and compelling content that our Deliver solutions that will grow our core businesses by customers will love expanding our 5G network capabilities, extending our Ignite Connected Home products, and growing our compelling content and data-driven advertising solutions Drive profitable growth in all the markets we serve Drive company-wide financial results by achieving our financial goals and 2019 guidance while investing to support future growth and driving a focus on cost management and margin improvement Develop our people and a high performance culture Build our culture and our reputation by cultivating strong, accountable leaders in a high-performing culture, sustaining and growing best-in-class engagement, and becoming a destination for talent Be a strong, socially responsible leader in our communities Become a strong home team in each region by growing across Canada our community investment and giving program, building on our regional focus, and supporting our rural and affordable access agenda

KEY PERFORMANCE DRIVERS AND 2019 STRATEGIC HIGHLIGHTS The following achievements display the progress we made towards meeting our refocused strategic priorities and the objectives we set along with them, as discussed above.

CREATE BEST-IN-CLASS CUSTOMER EXPERIENCES BY • Ended the year with over 325,000 subscribers on Ignite TV, the PUTTING OUR CUSTOMERS FIRST IN EVERYTHING WE DO foundation of our Connected Home future. • Increased our customer likelihood to recommend scores across • Invested in our IT infrastructure to improve system stability, all business units. decreasing customer-impacting minutes by over 80%. • Improved service levels in our call centres and reduced the average handle time. INVEST IN OUR NETWORKS AND TECHNOLOGY TO • Grew online digital adoption and reduced call volume into our DELIVER LEADING PERFORMANCE AND RELIABILITY call centres. • Secured 20-year 600 MHz spectrum licences covering all • Launched Rogers Infinite unlimited data plans with no overage provinces and territories across the country for a total price of charges, the first national Canadian carrier to introduce such $1.7 billion to give our customers the best wireless experience. plans. This low-frequency spectrum is a critical foundation for • Introduced 24-month $0 down, interest-free wireless device deploying 5G technology across Canada. financing on Rogers Infinite plans. • Announced our initial rollout of Canada’s first 5G network in • Attracted 1.4 million customers to our new Rogers Infinite downtown Vancouver, Toronto, Ottawa, and Montreal in unlimited data plans. preparation for the commercial availability of 5G devices in 2020; • Announced a new customer solutions centre in Kelowna, BC, to we expect to expand the Rogers 5G network to over 20 more better serve our customers across time zones. markets in 2020. • Launched Rogers Pro On-the-Go, a new, personalized retail • Became a founding member of the 5G Future Forum, which will service that delivers and sets up new wireless devices to the collaborate to develop interoperable 5G standards for Mobile customer’s location of choice within the service area. Edge Computing across key geographic regions, including the • Launched Fido Data Overage Protection, which pauses data Americas, Asia-Pacific, and Europe. usage when a customer’s limit is reached so they can enjoy their wireless services worry-free.

28 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 29 | Volunteer Days. ™ ROGERS COMMUNICATIONS INC. rt 80 volunteer events across Give Together 2019 ANNUAL REPORT Canada for our second annual economy. investments to help our communities thrive. Ted Rogers ScholarshipTed Fund, Rogers Community Jays Grants program. Care Foundation, and the program to 335 community housing partners. Together Month, with Rogers matchingto employee $1,000. donations up five points above global best-in-class companies. 100 employers by MediaCorparow. Canada Inc. for the 7th yearAdmired Corporate in Cultures by Waterstone. Workplaces in Northand America innovation in by engaging our Achievers employees and for workplaces. our leadership January 2019,transparency which named inequality 230 gender in the companies workplace. reporting committed and to advancingEmployers by women’s Canada Inc. index that recognizes companies advancing equality. cybersecurity centre at Ryersondiverse digital University skills focused of ondemand the for building future skilled cybersecurity and professionals. to help fulfill our ongoing BE A STRONG, SOCIALLY RESPONSIBLE LEADERCOMMUNITIES IN ACROSS OUR CANADA • Contributed $14 billion in• economic Contributed value to over the $60 Canadian • Made million a meaningful through difference in the cash lives of and youth through• the in-kind Expanded our Connected for• Success Raised affordable over broadband $2 million for over• 1,100 Volunteered 20,000 charities hours to during suppo Give DEVELOP OUR PEOPLE AND A HIGHCULTURE PERFORMANCE • Achieved a company-wide• Recognized, engagement in November score 2019, of as• 85%, one Recognized, of in Canada’s November Top 2019,• as Recognized, one in July of 2019, Canada’s as Most one• of Named the 50 to Most the Engaged 2019 Bloomberg Gender-Equality Index• in Recognized, in March 2019, as• one of Named, in Canada’s May Best 2019, to Diversity the LGBT Corporate Canadian• Index, an Announced a $10 million investment to support a new Award for ® extend LTE-M coverage forand the IoT United States. customers throughout Canada Canada’s Fastest Internetbroadband mobile by network testing. Ookla, a global leader in fixed payments and share repurchases. 104,000 net new Internet subscribers. and produce compelling Canadian content. WiFi pods to manageconnectivity in home homes. WiFi networks and enhance WiFi broadcast the first-ever NHL game in Plains Cree. Ignite TV. of British Columbiatesting to facilitate ofpartnership pre-commercial 5G research agreement and advance applications with 5G research. and the University announced of5G a applications and Waterloo use three-year cases at to Communitech in Waterloo. nationally by Umlaut,leader, a based global mobile onMay 6 network and measurement July benchmarking 15, testing 2019. conducted between • Announced a reciprocal roaming arrangement with AT&T to • Returned $1.7 billion to shareholders through dividend DRIVE PROFITABLE GROWTH IN ALL THESERVE MARKETS WE • Achieved our revised 2019•GrewadjustedEBITDAby4%. guidance targets. • Attracted 334,000 net new wireless postpaid subscribers and • Launched Ignite TV in• Newfoundland and Invested New $683 Brunswick. million during the 2019• broadcast year Launched to the create Ignite WiFi Hub app and introduced Wall-to-Wall • Partnered with the Aboriginal Peoples Television Network to DELIVER INNOVATIVE SOLUTIONS AND COMPELLING CONTENTTHATOURCUSTOMERSWILLLOVE • Launched Sportsnet Now and Amazon Prime Video on • Turned on Canada’s first 5G-powered campus at the University • Announced the launch of• a 5G Awarded “Best innovation in hub Test” for that overall will wireless customer test experience • Awarded, in October 2019, the 2019 Speedtest MANAGEMENT’S DISCUSSION AND ANALYSIS

2020 OBJECTIVES

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 Grow our presence both locally and regionally; distinguish our across Canada community investment and social responsibility programs; and grow our business in key underserved markets across Canada.

FINANCIAL AND OPERATING GUIDANCE We provide consolidated annual guidance ranges for selected financial metrics on a basis consistent with the annual plans approved by the Board. 2019 ACHIEVEMENTS AGAINST GUIDANCE The following table outlines guidance ranges that we had previously provided and our actual results and achievements for the selected full-year 2019 financial metrics.

2019 2018 Guidance 2019 (In millions of dollars, except percentages) Actual Ranges Actual Achievement Consolidated Guidance 1 Revenue 15,096 Decrease of 1% to increase of 1% 15,073 (0.2)% ✓ Adjusted EBITDA 2 5,983 Increase of 3% to 5% 6,212 3.8% ✓ Capital expenditures 3 2,790 2,750 to 2,850 2,807 n/m ✓ Free cash flow 2,4 2,134 Increase of 100 to 200 2,278 6.7% ✓ n/m – not meaningful 1 The table outlines guidance ranges for selected full-year 2019 consolidated financial metrics provided in our January 25, 2019 earnings release and subsequently updated on October 22, 2019. Guidance ranges presented as percentages reflect percentage increases or decreases over 2018 actual results. 2 Adjusted EBITDA 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. 3 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 assets. 4 Effective January 1, 2019, we redefined free cash flow such that we no longer adjust for the “net change in contract asset and deferred commission cost asset balances”. We redefined free cash flow to simplify this measure and believe removing it will make us more comparable within our industry. Free cash flow presented above reflects this change.

2020 FULL-YEAR CONSOLIDATED GUIDANCE For the full-year 2020, we expect relatively stable service revenue and that growth in adjusted EBITDA will drive higher free cash flow. In 2020, we expect to have the financial flexibility to maintain our network advantages and to continue to return cash to shareholders. We are providing a guidance range for total service revenue this year as this metric more closely reflects our core business with our customers.

2019 2020 (In millions of dollars, except percentages) Actual Guidance Ranges 1 Consolidated Guidance Total service revenue 2 12,965 Decrease of 2% to increase of 2% Adjusted EBITDA 3 6,212 Increase of 0% to 2% Capital expenditures 4 2,807 2,700 to 2,900 Free cash flow 3 2,278 Increase of 2% to 4%

1 Guidance ranges presented as percentages reflect percentage increases over full-year 2019 results. 2 As defined. See “Key Performance Indicators”. 3 Adjusted EBITDA 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. 4 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 assets.

30 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 31 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT competitive wireless and cable networks5G through wireless (i) network building and a (ii)network upgrading our to hybrid fibre-coaxial lowerutilize the the numberreliable latest of customer experience; homes technologies, and passed and per deliver , Home an roadmap in 2020. even more regulatory decisions issuedunderlying assumptions during around our 2020Media 2020 results Wireless, could in Cable, the and/or materially currentare currently and alter unknown future and years, not the factored impacts into our of guidance; which March 2016,services; to resellers of ourvalue high-speed smartphones at similar Internet rates in 2020 access compared to 2019; service plans and wireless device financing; result of the introductionsecond of quarter of our 2019; Rogers Infinite plans late insimilar rate the as in 2019; impacted byshifts changing in consumer competitive video and/or data dynamics consumption; ordeclining accelerated Televisioncustomers migrating to subscribers, Ignite TVdeclineinourPhonesubscriberbase; from including our legacy product; and the a impacttraditional media businesses; and of • we continue to invest appropriately to ensure we have • we continue to make expenditures related to our Connected • specifically, we continue to charge the interim• rates, Wireless as customers set continue to in adopt, and• upgrade an to, overall higher- shift in the market dynamics• to unlimited lower data overage wireless revenue, most notably in the first half of 2020, as• a overall wireless market penetration in Canada grows• in 2020 our at relative a market share in Wireless and Cable is not• negatively continued subscriber growth in Wireless and Internet; stable to • in Media, continued growth• in with sports respect to and the increase declines in capital in expenditures: certain assist investors, shareholders, arious economic, competitive, r evaluating the performance of ness”, the material assumptions expenditures is$1.30/US$; hedged at an average exchangeeconomic rate conditions,environment or of affecting macro our changes business in activities. the competitive We note that which we operate; The above table2020 outlines consolidated guidanceconsideration ranges financial for our metrics. selectedpurpose current of full-year the These outlook financial outlook ranges and is to our take 2019 into results. The • a substantial portion of• our key interest 2020 rates• remain relatively US no stable throughout significant 2020; additional dollar-denominated legal or regulatory developments, shifts in Key underlying assumptions Our 2020Consolidated guidance Guidance”including, but ranges not are limited to,the the full-year presented following based 2020: material assumptions for • in on continued “2020 increase many in Full-Year competitive assumptions intensity in all segments in and others inexpected understanding 2020 certain financial results financial fo metrics relating to listed below under “Keydisclosure underlying and assumptions”, and informationand the about related regulatory v assumptions, factors,actual future and financial risks and thatcurrently operating expect. may results cause to our differ from whatAny we updates to ourthe full-year year would financial only guidance bethat over made appear to the above. the course consolidated of guidance ranges our business. Thispurposes. information Information may about notassumptions our underlying be it, guidance, appropriate is including forward-lookingconjunction for and the should with other be various “About read Forward-Looking in Uncertainties Information”, “Risks Affecting and Our Busi MANAGEMENT’S DISCUSSION AND ANALYSIS

Capability to Deliver Results LEADING NETWORKS WIRELESS • purchasing 5G-ready equipment with lower unit Rogers has one of the most extensive and advanced wireless and operational costs, the ability to aggregate more radio networks in Canada, which: carriers, and greater spectral efficiency. • is the only national network in Canada fully owned by a single In early 2020, we launched our 5G network commercially in carrier; downtown Vancouver, Toronto, Ottawa, and Montreal. We expect • was the first LTE high-speed network in Canada; to expand to over 20 more markets by the end of the year. We also • was the first 5G network in Canada; announced we are the exclusive Canadian member of the global • reached 96% of the Canadian population as at December 31, 5G Future Forum, a first-of-its-kind 5G and mobile edge computing 2019 on our LTE network alone; forum that includes Verizon, , , KT, and • is supported by voice and data roaming agreements with América Móvil. international carriers in more than 200 destinations, including a growing number of LTE roaming operators; and Our 5G network currently uses 2500 MHz spectrum in the • includes network sharing arrangements with three regional downtowncoresofVancouver,Toronto,Ottawa,andMontreal.In wireless operators that operate in urban and rural parts of 2020, we will expand the network to use the 600 MHz spectrum Canada. licences we acquired in 2019. 600 MHz spectrum is best suited to carry wireless data across long distances and through dense urban We are continuously enhancing our IP service infrastructure for all buildings, creating more consistent and higher-quality coverage in our wireless services. Advances in technology have transformed the both remote and urban areas and in smart cities. In the future, we ways in which our customers interact and use the variety of tools will deploy 3.5 GHz spectrum and dynamic spectrum sharing, available to them in their personal and professional lives. which will allow our existing spectrum supporting 4G to also be Technology has also changed the way businesses operate. used for 5G networks. We are augmenting our existing LTE network with 4.5G technology investments that are designed to migrate to a 5G environment. We Significant spectrum position increased our 5G-related trials across key applications and multiple Our wireless services are supported by our significant wireless frequencies in 2019. A number of investments will be required to spectrum licence holdings in both high-band and low-band successfully launch and maintain a 5G network, including: frequency ranges. As part of our network strategy, we expect to • refarming spectrum currently used for and to LTE and continue making significant capital investments in spectrum to: for 5G; • support the rapidly growing usage of wireless data services; • densifying our wireless network with macro and small cells in key • support the expansion of our 5G network; and markets; and • introduce new innovative network-enabled features and functionality. Our spectrum holdings as at December 31, 2019 include: Type of spectrum Rogers licence Who it supports 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 , 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; future 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 Canada except 20 MHz in parts of Quebec 4G,4.5GLTE,and5Gsubscribers. and an additional 25 MHz TDD in key population areas in Quebec, Ontario, and British Columbia.

32 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 33 | ROGERS COMMUNICATIONS INC. ving radio frequency amplifiers, Fixed wireless subscribers. 3.5G / 4G HSPA+, 4G LTE subscribers. 3.5G / 4G HSPA+, 4G LTE subscribers. 3.5G / 4G LTE subscribers. 2019 ANNUAL REPORT improving networkdeploying digital performance, fibre optics, remo and quality, reducing homes passed per and node to an average reliability of 60; spectrum by 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 directly to fibre. 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 while at the• same increasing time 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 connecting moreBroadband homes Internet and service3.0/3.1 is provided platform,channels using which a onto DOCSIS combinesdelivering one CCAP exceptional multiple accessHFC performance. radio point Over frequency repurposing at node the and the evolution lasthas segmentation, customer from 20 DOCSIS premise, increasedapproximately years, along 1.0 1,000 to downstreamrecord and DOCSIS with of 3.1, 200 andcapability investing DTV times, to in upstream cost-effectivelyof respectively. our our deploy spectrum This key networks best-in-class capacityother strategies track service service and for providers is ensuring by demonstratingand that that one provide the businesses we Internet stay100% over service competitive of into with copper ourCCAP homes facilities. cable technology By network supportingInternet. had the DOCSIS been 3.1 end upgraded and of to Ignite 2016, DOCSIS Gigabit joint operation with BCE Inc. in ugh the following network sharing agreements: nada, respectively, we deliver ugh , Milwaukee, and ies-based fibre-optic network with ; northwestern Ontario; and across the province of Quebec and Ottawa. which Rogers holds a30 MHz 50% (of interest. which Inukshuk 20primarily MHz holds in is eastern licences usable) Canada, of for FDD includingin 2300 certain southern MHz population spectrum and centres easternholdings Ontario, southern in Quebec, andColumbia. smaller New Inukshuk also holds Brunswick, 3500 MHz50-175 TDD Manitoba, licences MHz) (between in Alberta,Canada. most The and of current fixed the British the wireless jointly major LTE held population 2300 national“3500 MHz centres network and utilizes across MHz 3500 MHz SpectrumIndustry” spectrum for more bands. Licence information. See Band” inThree network-sharing “Regulation arrangements In tonetwork capabilities: enhance Our coverage and • with Bell MTS, which covers• 98% with of , that the covers population the combined across • base of with customers in (Videotron) to provide HSPA and LTE services Partnership is a 850 MHz, 1900 MHz AWS spectrum, 700 MHz Type of spectrum2300 MHz/3500 MHz range Kind of venture Who it supports 76,000 kilometres ofbusiness fibre optictelecommunications customers, cable service providers. that Wefibre network is including also for backhaul use used for our wirelessnetwork cell to extensive site government extends traffic. service 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 south to of Seattle; from the CABLE Our expansive fibredelivers and hybrid services fibre-coaxialNew (HFC) to Brunswick, infrastructure andoperate consumers a on transcontinental, and the facilit island businesses of Newfoundland. in We Ontario, also Chicago; fromthrough Toronto Albany through toconnect New Buffalo; York Canada’s and CityUS markets largest and for from the Ashburn, exchange markets, of Montreal data allowing and voice usThe while traffic. network to is also structuredand to reaching to optimize allow performance key Internet for and over reliability the a single simultaneousthat platform. interconnect delivery It with of is distributionminimize generally video, hubs, constructed disruptions voice, providing in redundancy and rings thatevents. to can result fromHomes fibre and cuts commercial and buildingsthrough are HFC other connected nodes to ornetwork our using FTTH. network fibre We optic connectcoaxial cable the cable and HFC the or nodespectrum home fibre. to in to the Ontario the Using and nodevideo, 860 Atlantic using voice, Ca MHz and broadband and servicessegmentation to 750 our customers. MHz reduces HFCHFC of node the node, cable therebysubscriber. number increasing the of bandwidth and homes capacity passed per per We also have access to additional spectrum thro MANAGEMENT’S DISCUSSION AND ANALYSIS

We have been deploying 1 GHz fibre-to-the-curb (FTTC) in new We also own or utilize some of Canada’s most recognized brands, development areas and transitioning to FTTH since 2005. In 2018, including: we began upgrading our HFC network to a mix of 1.2 GHz FTTC • the wireless brands of Rogers, Fido, and chatr; and FTTH. FTTC provides the foundation for subsequent • the residential brands of Rogers and Fido; generations of DOCSIS, including Remote PHY and DOCSIS 4.0, • 23 TV stations and specialty channels, including Sportsnet, which will improve high-speed Internet accessibility, quality, and Omni, Citytv, FX (Canada), and FXX (Canada); tier speed attainability, while increasing the capacity of our HFC • 55 radio stations, including 98.1 CHFI™, 680 NEWS™,Sportsnet network. FTTH will be based on gigabit passive optical network The FAN™,KiSS™,JACKFM™, and SONiC™; (GPON) technology that is expected to support symmetrical • major league sports teams, including the Toronto Blue Jays, and downstream/upstream speeds up to 10 Gbps per node in select teams owned by MLSE, such as the Toronto Maple Leafs, the neighbourhoods. , Toronto FC, and the ; • an exclusive 12-year agreement with the NHL, which runs We continue to invest in and improve our cable network services; through the 2025-2026 season, that allows us to deliver for example, with technology to support gigabit Internet speeds, coverage of professional hockey in Canada; and Ignite TV, Rogers 4K TV, our 4K PVR set-top box, and a significant • TSC, a premium online and TV shopping retailer. commitment to live broadcasting in 4K, including regular season Toronto Blue Jays home games for 2020 and numerous NHL and NBA games. WIDESPREAD PRODUCT DISTRIBUTION Voice-over-cable telephony services are also served using the WIRELESS DOCSIS network. Our offerings ensure a high quality of service by We have an extensive national distribution network and offer our including geographic redundancy and network backup powering. wireless products nationally through multiple channels, including: Our phone service includes a rich set of features, such as TV Call • company-owned Rogers, Fido, and chatr retail stores; Display (available on our NextBox™ set-top boxes), three-way • customer self-serve using rogers.com, fido.ca, chatrwireless.com, calling, and advanced voicemail features that allow customers to be and e-commerce sites; notified of, and listen to, their home voicemail on their wireless • an extensive independent dealer network; phoneorovertheInternet. • major retail chains and convenience stores; • other distribution channels, such as WOW! mobile boutique, as We own and operate some of the most advanced networks and well as Wireless Wave and TBooth Wireless through our data centres in Canada. We leverage our national fibre, cable, and ownership interest in Glentel; wireless networks and data centre infrastructure to enable • our contact centres; businesses to deliver greater value to their customers through • outbound telemarketing; and proactive network monitoring and problem resolution with • Rogers Pro On-the-Go, a new, personalized retail service that enterprise-level reliability, security, and performance. Our primary delivers and sets up new wireless devices to the customer’s and secondary Network Operation Centres proactively monitor location of choice within the service area. Rogers’ networks to mitigate the risk of service interruptions and to allow for rapid responses to any outages. CABLE Our data centres provide guaranteed uptime and expertise in We distribute our residential cable products using various channels, collocation, cloud, and managed services solutions. We own and including: operate 12 state-of-the-art, highly reliable, certified data centres • company-owned Rogers and Fido retail stores; across Canada, including: • customer self-serve using rogers.com and fido.ca; • Canada’s first Tier III Design and Construction certified • our contact centres, outbound telemarketing, and door-to-door multi-tenant facility in Toronto; agents; and • Alberta’s first Tier III certified data centre; and • major retail chains. • a third Tier III certified data centre in Ottawa. Our sales team and third-party retailers sell services to the business, public sector, and carrier wholesale markets. An extensive network POWERFUL BRANDS of third-party channel distributors deals with IT integrators, The Rogers brand has strong national recognition through our: consultants, local service providers, and other indirect sales • established networks; relationships. This diverse approach gives greater breadth of • extensive distribution; coverage and allows for strong sales growth for next-generation • recognizable media content and programming; services. • advertising; • event and venue sponsorships, including the Rogers Cup; FIRST-CLASS MEDIA CONTENT • community investment, including the Ted Rogers Scholarship Fund; and We deliver highly sought-after sports content enhanced by the • to some of Canada’s landmark buildings. following initiatives: • an exclusive 12-year agreement with the NHL, which runs through the 2025-2026 season, that allows us to deliver coverage of professional hockey in Canada across television, smartphones, tablets, and the Internet;

34 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 35 | ROGERS COMMUNICATIONS INC. ngagement surveys and leadership 2019 ANNUAL REPORT control over their WiFi experience; both ofcustomize which their data usage in allow real-time through MyRogers; Wireless customershour of data, to five times per manage billing cycle, at no and extra charge; Internet 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; and allowing Canadians tohome use when traveling their to included wireless destinations. plan like they do at 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. • Ignite WiFi Hub for all Ignite TV customers• to give Family them Data ultimate Manager, a data manager tool, and Data Top• Ups, Fido Data Bytes, which grant Fido Pulse• customers an Fido additional XTRA, a program that gives Fido postpaid Wireless and • a simple online bill, making it• easier for Roam customers Like to Home read and and Fido Roam, worry-free wireless roaming FINANCIAL STRENGTH AND FLEXIBILITY We have anleverage, investment-grade and balance substantial sheet,at available conservative December liquidity debt 31, ofof 2019. $2,493 cash Our millioncredit, as capital provided resources by consistsecuritization funds primarily operating and(US available activities, US CP) available programs, dollar-denominatedowned under and lines commercial approximately issuancessecurities our of of paper $1,831 in long-term2019. debt. accounts publicly million We traded of also receivable companiesThe marketable as following information at is equity forward-lookingconjunction and December should with be “About read 31, 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 andAs operating noted results in to generating “Financial positive and free cash Operatinghave flow Guidance”, in 2020. sufficient we Werequirements anticipate expect capital that in we 2020, resources will includingcommon the to shares, funding of repayment satisfyand dividends of on our long-term maturing our activities, cash short-term debt, borrowings and funding and other other requirements. This financing takes activities, into investing account our ENGAGED PEOPLE For our teamcreate of a great approximately workplace, 25,300experience, 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 , which brings hockey- ireless device, a connected ing English, French, Mandarin, Tour over the 2019-2020 NHL season; ™ , a tool that gives customers the ability to ™ Hometown Hockey ™ 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 to and the access; making self-service need to plan changes and hardware upgrades online; themed25 festivities communities across Canada and outdoor viewing parties to brought to Canada on Rogers television services; Properties andin-progress MLB games AdvancedNovember 2021; and Media highlights to within show2024, Canada live which through Canadian and distributor makes of World Rogersflagship Wrestling programming; Entertainment’s and (WWE) the exclusive wholesalerBlue Jays through and our ownership of . 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 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 take calls in four languages,and includ Cantonese; on any screen; access to Sportsnet’s TV content; such as additionalRugby, and NHL the IndyCar Series; games,Rogers the Bundesliga, Premiership • the MLB Network, a• 24-hour an network 8-year, dedicated multi-platform to broadcast rights baseball, agreement with MLB • a 10-year, multi-platform agreement that runs through August • exclusive broadcasting and distribution rights of the Toronto • 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 • voice authentication technology across all of our contact centres • self-serve options, including: 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 contact with centres located• throughout Canada; an innovative Integrated Voice Response (IVR) system that can CUSTOMER EXPERIENCE • NHL LIVE, an online OTT destination• for enhancing Sportsnet NHL NOW, action Canada’s first OTT sports service,• offering 24/7 Sportsnet NOW+, which offers access to• additional content, MANAGEMENT’S DISCUSSION AND ANALYSIS

opening cash balance, cash provided by operating activities, and market conditions and other factors. There is no assurance, funds available to us under credit facilities, our accounts receivable however, that these financing initiatives will or can be done as they securitization program, our US CP program, and other bank, become necessary. publicly issued, or private placement debt from time to time. As at December 31, 2019, there were no significant restrictions on the WIDESPREAD SHAREHOLDER BASE AND flow of funds between RCI and its subsidiary companies. DIVIDENDS We believe we can satisfy foreseeable additional funding requirements by issuing additional debt financing, which, RCI’sClassBNon-Votingcommonshares(ClassBNon-Voting depending on market conditions, could include restructuring our Shares) are widely held and actively trade on the TSX and the NYSE existing bank credit and letter of credit facilities, entering into new with a combined average daily trading volume of approximately bank credit facilities, issuing public or private long-term or short- 1.5 million shares in 2019. In addition, RCI’s Class A Voting term debt, amending the terms of our accounts receivable common shares (Class A Shares) trade on the TSX. At the discretion securitization or US CP programs, or issuing equity. We may also of the Board, we pay an equal dividend on both classes of shares. opportunistically refinance a portion of existing debt depending on In 2019, each share paid an annualized dividend of $2.00.

36 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 37 | ted %Chg 1 196 (29) (204) – (177) 8 ures. These are not 9,200 1 3,932 1 2,168 (4) 5,983 4 2,241 (5) 2,134 7 4,090 6 1,874 2 2,790 1 4,288 6 2,059 (1) 39.6% 1.6 pts 2018 15,096 – 12,974 – results have not been on. 43 (4) $4.35 (4) $4.34 40 – $4.00 (1) $3.99 140 (203) (192) ROGERS COMMUNICATIONS INC. 2019 9,250 3,954 2,072 6,212 2,135 2,278 4,345 1,919 2,807 4,526 2,043 Years ended December 31 41.2% 15,073 12,965 $4.17 $4.15 $3.99 $3.97 2019 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 s standard included in our results prospectively from that date. Our 2018 on-GAAP Measures and Related Performance Measures” for more informati luding how we calculate them and the ratios in which they are used. 3 3 3 3 2 3 3 3,4 Wireless Cable Media Corporate items and intercompany eliminations Wireless Cable Media Corporate items and intercompany eliminations Adjusted EBITDA, adjusted net income, and free cash flow are non-GAAP measur 2018 free cash flow has been restated to adapt to our current definition. See “N Effective January 1, 2019, we adopted IFRS 16, withAs the defined. ongoing See “Key impacts Performance of Indicators”. thi restated for the effects of IFRS 16. See “Accounting Policies”. 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) 3 4 1 2 SUMMARY OF CONSOLIDATED RESULTS Adjusted EBITDA margin Adjusted basic earnings per share 2019 Financial Results See “Accounting Policies” in thisAudited MD&A and the notes Consolidated toaccounting our policies 2019 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 increased this year primarily as a result of YEAR COMPARED TO 2018 the adoption of IFRS 16, which contributed approximately 4% of the growth, and a larger postpaid subscriber base, which led to a REVENUE margin of 47.0%, up 250 basis points from last year. Wireless service revenue increased this year as a result of continuing to monetize the increasing demand for data in the first Cable adjusted EBITDA increased this year as a result of strong half of the year along with a disciplined approach around Internet revenue growth, the ongoing product mix shift to subscriber base management. This increase was partially offset by a higher-margin Internet services, and various cost efficiencies, which decrease in overage revenue (as a result of stronger customer led to a margin of 48.5%, up 80 basis points from last year. adoption of our new Rogers Infinite unlimited data plans) in the second half of 2019. Wireless equipment revenue decreased 1% Media adjusted EBITDA decreased this year primarily as a result of this year driven by a decrease in gross subscriber additions and lower revenue as discussed above and higher programming costs, fewer hardware upgrades. partially offset by lower player compensation at the Toronto Blue Jays, which led to a margin of 6.8%, down 220 basis points Cable revenue increased this year as a result of the increase in from last year. Excluding the impact of the sale of our publishing Internet revenue, due to the general movement of customers to business and the distribution from last year, higher speed and usage tiers, the impact of Internet service pricing Media adjusted EBITDA would have increased by 1% this year. changes, and a larger subscriber base for our Internet products, partially offset by promotional pricing provided to subscribers and NET INCOME AND ADJUSTED NET INCOME Television and Phone subscriber losses over the past year. Net income and adjusted net income both decreased this year Media revenue decreased this year as a result of the sale of our primarily as a result of higher depreciation and amortization and publishing business and a Major League Baseball distribution to the higher finance costs, partially offset by higher adjusted EBITDA. Toronto Blue Jays in 2018. Excluding the impact of the sale of our publishing business and the distribution from Major League Baseball last year, Media revenue would have increased by 1% this year.

38 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 39 | ROGERS COMMUNICATIONS INC. -to-day operations, to service ndependent dealers, agents, and 2019 ANNUAL REPORT existing subscriber relationships, and to attract new subscribers. adoption of our Rogers Infinite unlimited data plans. The 1% decrease in thethe cost same factors of discussed equipment in this equipment year revenue above. was a result of OPERATING EXPENSES We record operating expenses in two• categories: the cost of wireless• devices and all equipment; and other expenses involved in day The 6% decrease in other operating• expenses this year the was adoption a of result IFRS• of: 16; and various cost efficiencies and productivity initiatives. ADJUSTED EBITDA The 6% increase inrevenue and adjusted expense EBITDA changes discussed this above. year was a result of the 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 1% increase in service revenue• this year a was larger a postpaid result subscriber of: • base; partially a offset decrease by in overage revenue as a result of the strongThe customer 2% increase in blendedin ABPU the product was mix a of result device sales of towards an higher-valueWe ongoing devices. shift believe thepostpaid subscriber decreases base this inapproach year were gross around a result and subscribersoftness of base in net our the disciplined management additions marketpartially in and to offset the an by first our increases half overall the in of second the postpaid half year. gross of the This andRogers year decline net Infinite as plans was additions a by result in new of customers. the strong adoption of our Equipment revenue Equipment revenue includesthrough fulfillment revenue by from Wireless’ customertelesales, sales service corporate groups, to stores, websites, and subscribers retailers. i The 1% decrease in equipment revenue• this year fewer was device a upgrades result by• of: existing subscribers; fewer and gross additions; partially• offset by an increase in sales of higher-value devices. 751 22 453 (119) (152) 55 2018 % Chg 2018 Chg 7,0912,1099,200 1 (1) 2,2642,846 1 5,110 (1) 4,090 (6) (4) 1,086 6 22 9,157 281 1,626 (224) 1,632 (66) 44.5% 2.5 pts 1.10% 0.01 pts 4.38% 0.48 pts $ 64.74 $ 1.49 $ 55.64 ($ 0.15) Years ended December 31 Years ended December 31 (97) 773 334 2019 2019 7,156 2,094 9,250 2,231 2,674 4,905 4,345 1,320 9,438 1,402 1,566 47.0% 1.11% 4.86% $ 66.23 $ 55.49 1 2,3 2,4 Service revenue Equipment revenue Cost of equipment Other operating expenses Gross additions Churn (monthly) Net losses Churn (monthly) Gross additions Net additions Total postpaid subscribers Total prepaid subscribers Canadian wireless market. Effective April 1, 2019, we127,000 adjusted subscribers our as Wireless a prepaid resultto subscriber of 90 a base days change to to be to remove more our consistent deactivation within policy the industry. from 180 days As at end of period. Effective October 1,postpaid 2019, and subscriber on baseservices a customer by prospective that is 53,000 basis, inbelieve we subscribers the adjusting process reduced our to of our base migrating removeprovides for to Wireless a another a a more service customer meaningful provider. low-ARPU of reflection We Wireless of this business. public the size underlying that organic migrates performance of off our our network Subscriber counts, subscriberperformance churn, indicators. See blended “Key Performance ABPU, Indicators”. and blended ARPU are key Revenue Revenue Operating expenses Operating expenses Adjusted EBITDA Adjusted EBITDA margin Capital expenditures (In millions of dollars, except margins) Prepaid Blended ABPU (monthly) Our revenue dependsrevenue per on user, the the revenue fromother size the equipment sale revenue. of of wireless our devices, and subscriber base, the REVENUE 4 2 3 1 WIRELESS SUBSCRIBER RESULTS (In thousands, except churn, blended ABPU, and blended ARPU) Postpaid WIRELESS FINANCIAL RESULTS As at December 31, 2019, we• had: approximately 10.8 million subscribers;• and approximately 33% subscriber and revenue share of the WIRELESS ROGERS IS CANADA’S LARGEST PROVIDER OF WIRELESS COMMUNICATIONS SERVICES Blended ARPU (monthly) MANAGEMENT’S DISCUSSION AND ANALYSIS

CABLE REVENUE Internet revenue includes: • monthly subscription and additional use service revenue from ONE OF CANADA’S LEADING PROVIDERS OF HIGH- residential, small business, enterprise, public sector, and SPEED INTERNET, , AND PHONE wholesale Internet access subscribers; SERVICES • monthly service revenue from our smart home monitoring products; and As at December 31, 2019, we had: • modem and other equipment rental fees. • approximately 2.5 million high-speed Internet subscribers; • approximately 1.6 million Television subscribers, including Television revenue includes: • IPTV and digital cable services, such as: 325,000 subscribers on our premier Ignite TV product; • basic service fees; • approximately 1.1 million Phone subscribers; and • tier service fees; • a network passing approximately 4.5 million homes in • access fees for use of channel capacity by third parties; and Ontario, New Brunswick, and on the island of Newfoundland. • premium and specialty service subscription fees, including pay-per-view service fees and video-on-demand service fees; CABLE FINANCIAL RESULTS and • rentals of television set-top boxes. Years ended December 31

(In millions of dollars, except margins) 2019 2018 % Chg Phone revenue includes revenue from residential and small business local telephony service from: Revenue • monthly service fees; Internet 2,259 2,114 7 • calling features, such as voicemail, call waiting, and caller ID; and Television 1,430 1,442 (1) • long distance calling. Phone 251 363 (31)

Service revenue 3,940 3,919 1 The 1% increase in Cable revenue this year was a result of: Equipment revenue 14 13 8 • the movement of Internet customers to higher speed and usage tiers; Revenue 3,954 3,932 1 • the impact of service pricing changes; and Operating expenses • a larger Internet subscriber base; partially offset by Cost of equipment 23 21 10 • promotional pricing provided to subscribers; and Other operating expenses 2,012 2,037 (1) • lower subscriber bases for our Television and Phone products. Operating expenses 2,035 2,058 (1) Internet revenue Adjusted EBITDA 1,919 1,874 2 The 7% increase in Internet revenue this year was a result of: Adjusted EBITDA margin 48.5% 47.7% 0.8 pts • general movement of customers to higher speed and usage Capital expenditures 1,153 1,429 (19) tiers of our Internet offerings, with 68% of our residential Internet base on plans of 100 megabits per second or higher (2018 – 60%); 1 CABLE SUBSCRIBER RESULTS • a larger Internet subscriber base; and Years ended December 31 • the impact of Internet service pricing changes; partially offset by • promotional pricing provided to subscribers. (In thousands) 2019 2018 Chg

Internet Television revenue Net additions 104 109 (5) The 1% decrease in Television revenue this year was a result of: Total Internet subscribers 2 2,534 2,430 104 • the decline in legacy Television subscribers over the past year; Television partially offset by Net losses (106) (55) (51) • the migration of subscribers from our legacy TV product to Total Television subscribers 2 1,579 1,685 (106) Ignite TV; Phone • the movement of customers to higher content tiers; and Net (losses) additions (44) 8 (52) Total Phone subscribers 2 1,072 1,116 (44) • the impact of Television service pricing changes.

2 Homes passed 4,472 4,361 111 Phone revenue Total service units 3 The 31% decrease in Phone revenue this year was a result of: Net (losses) additions (46) 62 (108) • new bundled pricing constructs that provide a larger Phone Total service units 2 5,185 5,231 (46) discount; and 1 Subscriber counts are key performance indicators. See “Key Performance Indicators”. • the general decline in Phone subscribers over the past year. 2 As at end of period. 3 Includes Internet, Television, and Phone. Equipment revenue Equipment revenue includes revenue generated from the sale of television set-top boxes, Internet modems and other equipment, and smart home monitoring equipment. Equipment revenue this year was in line with 2018.

40 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 41 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT ADJUSTED EBITDA The 2% increase inrevenue and adjusted expense EBITDA changes described this above. year was a result of the The 1% decrease in operating expenses• this year was the a impact result of of: the• adoption of various IFRS cost 16; efficiencies and and productivity initiatives. -to-day operations, to service and retain existing subscribersubscribers. relationships, and to attract new modem and otherequipment); and equipment, and smart home monitoring OPERATING EXPENSES We record Cable operating expenses in• three categories: the cost of programming; • the cost of equipment revenue (television set-top boxes, Internet • all other expenses involved in day MANAGEMENT’S DISCUSSION AND ANALYSIS

MEDIA The 4% decrease in revenue this year was a result of: • the sale of our publishing business in the second quarter of 2019; and DIVERSIFIED CANADIAN MEDIA COMPANY • lower revenue at the Toronto Blue Jays, primarily as a result of a distribution from Major League Baseball in 2018; partially offset by We have a broad portfolio of media properties, which most • higher revenue generated by Sportsnet and TSC. significantly includes: • sports media and entertainment, such as Sportsnet and the Excluding the sale of our publishing business and the impact of the Toronto Blue Jays; distribution from Major League Baseball last year, Media revenue • our exclusive national 12-year NHL Agreement; would have increased by 1% this year. • category-leading television and radio broadcasting properties; OPERATING EXPENSES • multi-platform televised and online shopping; and We record Media operating expenses in four primary categories: • digital media. • the cost of broadcast content, including sports programming and production; • Toronto Blue Jays player compensation; MEDIA FINANCIAL RESULTS • the cost of retail products sold; and Years ended December 31 • all other expenses involved in day-to-day operations. (In millions of dollars, except margins) 2019 2018 % Chg The 2% decrease in operating expenses this year was a result of:

Revenue 2,072 2,168 (4) • lower Toronto Blue Jays player compensation; and Operating expenses 1,932 1,972 (2) • lower publishing-related costs due to the sale of this business; partially offset by Adjusted EBITDA 140 196 (29) • higher programming costs; and

Adjusted EBITDA margin 6.8% 9.0% (2.2 pts) • higher cost of sales as a result of higher revenue at TSC. Capital expenditures 102 90 13 ADJUSTED EBITDA The 29% decrease in adjusted EBITDA this year was a result of the REVENUE revenue and expense changes described above. Excluding the Media revenue is earned from: impact of the sale of our publishing business in the second quarter • advertising sales across its television, radio, and digital media of 2019 and the distribution from Major League Baseball last year, properties; adjusted EBITDA would have increased by 1% this year. • subscriptions to televised and OTT products; • ticket sales, fund redistribution and other distributions from MLB, and concession sales; and • retail product sales.

42 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 43 | ROGERS COMMUNICATIONS INC. rformance for our customers. We n. These upgrades will lower the 2019 ANNUAL REPORT MEDIA The increase in capital expendituresinvestments this year in was renovations apartially result at of various higher offset Torontoinfrastructure by Blue and the Jays sale lower of facilities, our publishing investment business. inCORPORATE our broadcastThe and increase IT inresult of Corporate higher investments capital in ITthis expenditures and year, our this including various the real year estate impactsale facilities of of was certain $25 assets million a last of year. proceeds from the CAPITAL INTENSITY Capital intensity this year was in line with 2018. WIRELESS The increase inresult capital of expenditures investments incontinue made Wireless delivering to this reliable upgrade yearcontinued pe our was wireless augmenting a networktechnology our investments to that existing arecommercial also launch of 5G-ready LTE 5G to in select prepare markets network in for earlyIn the 2020. with 2019, we acquired 4.5G spectrumnot licences included for $1,731 in million, the which tableFinancial is above. Resources”. See “Managing Our Liquidity and CABLE The decrease in capital expendituresof in Cable lower this year purchases wasinvestments a of result related customer to premisecontinued the equipment upgrading initial and ourfibre launch lower deployments, network of including increasing infrastructure Ignite ourfibre-to-the-curb with fibre-to-the-home TV. and additional distributio Wenumber have of homestechnologies passed to per help node deliverreliable more and customer bandwidth incorporate experience andHome the as an roadmap. latest even we more progress in our Connected 90 13 185 25 2018 % Chg 1,0861,429 22 (19) 2,790 1 18.5% 0.1 pts 232 102 2019 1,320 1,153 2,807 18.6% Years ended December 31 equipment net of proceeds on disposition, 1 1 2 Corporate Wireless Cable Media As defined. See “Key Performance Indicators”. Includes additions to property, plant and but does not include expendituresassets. for spectrum licences or additions to right-of-use Capital expenditures 2 1 (In millions of dollars, except capital intensity) CAPITAL EXPENDITURES Capital expendituresproperty, include plant costs andtelecommunications equipment associated business and with placinginvestments, requires it including acquiring extensive into investmentexpansion and service. in The continual of new technologiesrelated capacity to and the and the right-of-use acquisition assets geographical of are not spectrum reach. includednot licences in factor capital and Expenditures into expenditures additions the andSee calculation do to of “Managing free cashPerformance Our flow Indicators”, or Liquidity capital and intensity. “Non-GAAPPerformance and Measures” Measures for more Financial and information. Related Resources”,Capital “Key expenditures are significant andour have a cash material impactplanning, flows; on funding, and therefore, managingbest them. our reflects We our believe management cost thisperiod of and teams measure property, is a plant focus simpler and measure equipment for on comparing in between a periods. given Capital intensity Capital expenditures MANAGEMENT’S DISCUSSION AND ANALYSIS

REVIEW OF CONSOLIDATED PERFORMANCE FINANCE COSTS This section discusses our net income and other expenses that do Years ended December 31 notformpartofthesegmentdiscussionsabove. (In millions of dollars) 2019 2018 % Chg Years ended December 31 Interest on borrowings 1 746 709 5 Interest on post-employment 2019 (In millions of dollars) 2018 % Chg benefits liability 11 14 (21) Adjusted EBITDA 1 6,212 5,983 4 Loss on repayment of long-term Deduct (add): debt 19 28 (32) Depreciation and amortization 2,488 2,211 13 (Gain) loss on foreign exchange (79) 136 n/m Gain on disposition of property, Change in fair value of derivative plant and equipment – (16) (100) instruments 80 (95) n/m Restructuring, acquisition and Capitalized interest (19) (20) (5) Other 21 21 – other 139 210 (34) Finance costs 840 793 6 Finance costs before interest on lease Other income (10) (32) (69) liabilities 779 793 (2) Income tax expense 712 758 (6) Interest on lease liabilities 2 61 –n/m Net income 2,043 2,059 (1) Total finance costs 840 793 6

1 Adjusted EBITDA is a non-GAAP measure and should not be considered a substitute 1 Interest on borrowings includes interest on short-term borrowings and on long-term or alternative for GAAP measures. It is not a defined term under IFRS and does not debt. 2 have a standard meaning, so may not be a reliable way to compare us to other See “Accounting Policies” for more information. companies. See “Non-GAAP Measures and Related Performance Measures” for information about this measure, including how we calculate it. The 6% increase in finance costs this year was a result of: • interest on lease liabilities as a result of our adoption of IFRS 16; and ADJUSTED EBITDA • higher outstanding debt as a result of our debt issuances in See “Key Changes in Financial Results This Year Compared to April 2019, in large part to fund our acquisition of 600 MHz 2018” for a discussion of the increase in adjusted EBITDA this year. spectrum licences (see “Managing Our Liquidity and Financial Resources”); partially offset by DEPRECIATION AND AMORTIZATION • a $21 million loss on discontinuation of hedge accounting on certain bond forward derivatives recognized in 2018. Years ended December 31

(In millions of dollars) 2019 2018 % Chg Interest on borrowings Depreciation 2,297 2,174 6 Interest on borrowings increased this year as a result of the net Amortization 16 37 (57) issuance of senior notes throughout the year, partially offset by a higher proportion of borrowings under our lower-interest US CP Depreciation and amortization before program compared to 2018. See “Managing Our Liquidity and depreciation of right-of-use assets 2,313 2,211 5 Financial Resources” for more information about our debt and Depreciation of right-of-use assets 1 175 –n/mrelated finance costs.

Total depreciation and amortization 2,488 2,211 13 Loss on repayment of long-term debt 1 See “Accounting Policies” for more information. This year, we recognized a $19 million loss (2018 – $28 million loss) on repayment of long-term debt, reflecting the payment of Total depreciation and amortization increased this year primarily as redemption premiums associated with our redemption of a result of depreciation of right-of-use assets due to our adoption $900 million (2018 – US$1.4 billion) of 4.7% senior notes in of IFRS 16 on January 1, 2019 and higher capital expenditures over November 2019 that were otherwise due in September 2020 the past several years. See “Capital Expenditures” for more (2018 – 6.8% senior notes in April 2018 that were otherwise due in information. August 2018).

RESTRUCTURING, ACQUISITION AND OTHER Foreign exchange and change in fair value of derivative instruments During the year ended December 31, 2019, we incurred We recognized $79 million in net foreign exchange gains in 2019 $139 million (2018 – $210 million) in restructuring, acquisition and (2018 – $136 million in net losses). These gains and losses were other expenses. These expenses in 2019 and 2018 primarily primarily attributed to our US dollar-denominated commercial consisted of severance costs associated with the targeted paper (US CP) program borrowings. restructuring of our employee base and other contract termination These foreign exchange gains (2018 – losses) were offset by the costs. $80 million loss related to the change in fair value of derivatives In 2018, these costs also included certain sports-related contract (2018 – $95 million gain) that was primarily attributed to the debt termination costs. derivatives, which were not designated as hedges for accounting purposes, we used to offset the foreign exchange risk related to these US dollar-denominated borrowings.

44 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 45 | (32) (69) 744819 10 (5) 2018 % Chg 2018 % Chg 2,241 (5) 5,9832,211 4 13 2,059 (1) $4.35 (4) $4.34 (4) $4.00$3.99 – (1) (10) 821 778 2019 2,135 6,212 2,488 2019 2,043 ROGERS COMMUNICATIONS INC. $4.17 $4.15 $3.99 $3.97 Years ended December 31 Years ended December 31 million). Finance costs also exclude a 1 adjusted basic and diluted earnings per 1 3 2019 ANNUAL REPORT 1 2 1 Other income Income tax expense Depreciation and amortization Finance costs Adjusted EBITDA, adjusted net income,share and are non-GAAPalternatives measures for GAAP and measures. These should arehave not not standard defined terms be meanings, under IFRS,companies. considered so and may as See do not not substitutes “Non-GAAPinformation be or about Measures these a measures, and including reliable howFinance Related we way calculate costs them. Performance to above exclude Measures” compare athe us year $19 for ended million to December loss 31, other 2019 on$21 (2018 repayment million – loss of $28 on long-term discontinuation debt ofthe hedge for year accounting ended on December certain 31, bond 2018. forwardsIncome for tax expenserecovery) for above the year excludes ended December aadjusted 31, items. 2019 $43 related Income to tax the million expense incomeas also tax a recovery impact result excludes for of a (2018 legislative – $23 tax $61 changes million for recovery million the (2018 year – ended nil) December 31, 2019. Net income Basic earnings per share Diluted earnings per share Adjusted net income 1 2 3 EMPLOYEES Employee salaries and benefits representexpenses. a material As portion of25,300 at our employees December (2018groups, 31, – including 26,100) 2019, shared across servicessalaries we and all and benefits had the for of full-time corporatewere approximately and $2,005 our office. million part-time (2018 employees Total operating – in $2,089 2019 million). NET INCOME Net income wasFinancial 1% lower Results thaninformation. last This year. See Year “Key Changes Compared in (In millions to of dollars, except per 2018”share amounts) for more ADJUSTED NET INCOME Adjusted net income was 5%a lower result compared of to higher 2018, depreciation primarilycosts, and as partially amortization offset and by higher higher finance adjusted EBITDA. (In millions of dollars, except per share amounts) Adjusted EBITDA Adjusted diluted earnings per share Adjusted basic earnings per share Deduct (add): – 5 1 9 (9) 752 758 370 2018 2,817 26.7% 26.9% – 7 (6) (2) (23) 736 712 400 2019 2,755 26.7% 25.8% Years ended December 31 f derivative instruments”). We d hedge accounting on those bond ateoverafour-yearperiod. compensation losses tax change gains Non-deductible stock-based Non-deductible portion of equity Income tax adjustment, legislative Other items Non-taxable portion of capital expense resulting from: INCOME TAX EXPENSE Below is a summary ofcomputed the difference by between income applying taxbefore expense the income statutory tax expense income andthe the tax year. actual rate income tax to expense income for During the year endedwe December would 31, 2018, noforward we longer determined derivatives be that within ableConsequently, we the to discontinue exercise originally certain designated ten-year time bond frame. forward derivatives andhedging reclassified reserve a $21(recorded within in million “change shareholders’ loss insubsequently equity from fair extended value the the to bond o the forwards finance to ability May costs to 31,effective 2019, hedges. extend with During them theexercised year our further, ended remaining bond December and forwards. 31, redesignated 2019, we See them “Managing as Our Liquidityinformation about and our debt Financial and related Resources” finance costs. for more Statutory income tax rate (In millions of dollars, except tax rates) Income before income tax expense Computed income tax expense Increase (decrease) in income tax Total income tax expense Effectiveincometaxrate Cash income taxes paid Our effective income26.9% tax for rate 2018. this Thethan year effective the income statutory was tax tax 25.8% rate rateAlberta primarily compared corporate for income as 2019 to tax a r was result of lower a reductionCash to income the taxes paidthe increased timing this of year installment payments. primarily as a result of MANAGEMENT’S DISCUSSION AND ANALYSIS

2018 FULL-YEAR RESULTS COMPARED TO 2017 Revenue Consolidated revenue increased by 5% in 2018, reflecting revenue Years ended December 31 growth of 7% in Wireless and 1% in both Cable and Media. (In millions of dollars, except margins) 2018 1 2017 1 %Chg Wireless revenue increased as a result of the increased mix of Revenue subscribers on higher-rate plans from our various brands and an Wireless 9,200 8,569 7 increase in sales of higher-value devices. Cable revenue increased Cable 3,932 3,894 1 by 1% as the increase in Internet revenue from the general Media 2,168 2,153 1 movement of customers to higher speed and usage tiers of our Corporate items and Internet offerings was partially offset by the decrease in legacy intercompany eliminations 2 (204) (247) (17) Television subscribers and the impact of Phone pricing packages. Media revenue increased by 1% as a result of higher revenue at the Revenue 15,096 14,369 5 Toronto Blue Jays, including a distribution from Major League Total service revenue 2 12,974 12,550 3 Baseball, and higher Sportsnet and other network subscription Adjusted EBITDA 3 revenue, partially offset by lower advertising revenue. Wireless 4,090 3,726 10 Cable 1,874 1,819 3 Adjusted EBITDA Media 196 127 54 Consolidated adjusted EBITDA increased in 2018 to $5,983 million, Corporate items and reflecting increases in Wireless, Cable, and Media. Wireless intercompany eliminations (177) (170) 4 adjusted EBITDA increased 10% as a result of the strong flow-through of service revenue growth, partially offset by higher 3 Adjusted EBITDA 5,983 5,502 9 expenditures associated with increased subscriber volumes and 3 Adjusted EBITDA margin 39.6% 38.3% 1.3pts costs of devices. Cable adjusted EBITDA increased by 3% in 2018 Net income 2,059 1,845 12 as a result of strong Internet revenue growth, the ongoing product Adjusted net income 3 2,241 1,902 18 mix shift to higher-margin Internet services, and various cost efficiency and productivity initiatives. Media adjusted EBITDA 1 Effective January 1, 2019, we adopted IFRS 16, with the ongoing impacts of this increased 54% primarily as a result of the increase in revenue as standard included in our results prospectively from that date. Our 2018 and 2017 results have not been restated for the effects of IFRS 16. See “Accounting Policies”. discussed above and lower operating expenses from 2 As defined. See “Key Performance Indicators”. improvements made to our cost structure across the divisions. 3 Adjusted EBITDA, adjusted EBITDA margin, and adjusted net income are non-GAAP measures and should not be considered substitutes or alternatives for GAAP Net income and adjusted net income 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 Net income and adjusted net income both increased in 2018 “Non-GAAP Measures and Related Performance Measures” for information about primarily as a result of higher adjusted EBITDA, partially offset by these measures, including how we calculate them. higher depreciation and amortization. Net income increased to $2,059 million in 2018 from $1,845 million in 2017 and adjusted net income increased to $2,241 million in 2018 from $1,902 million in 2017.

46 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 47 | other companies. ered as substitutes on. 1 2018 ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT 2019 – – – – (16) – ––––– (5) – (11) ––(23)– –––– 2121––– – – – – (16) – (5) – (11) 22 130 72 (84) 196 40 73 60 23 38 42 39 20 210 94 47 26 43 38 42 39 20 210 94 47 26 43 19 – – – 28 – – – 28 (12) 16 (1) (13) (32) (26) 15 2 (23) (53) (55) (43) (41) (177) (36) (42) (47) (52) (14) (13) (10) (6) (61) (32) (11) (10) (8) (58) (47) (52) (46) (204) (55) (33) (57) (59) Q4 Q3 Q2 Q1 Full Year Q4 Q3 Q2 Q1 168468 219 593 186 591 139 391 758 2,059 182 502 235 594 200 538 141 425 636 812 777 530 2,817 684 829 738 566 497 499 478 445638 1,874 627 489 614 490230 609 462 215 2,211 433 206 564 189 558 793 545 205 544 176 193 219 497 767 609 405 2,134 471 627 595 441 530 483 591 468 2,168 540 488 608 532 468 593 591 391 2,059 502511 594 622 538 597 425 405 2,241 585 625 554 477 987 994 997 976 3,932 989 983 991 969 791 657 742 617 2,790 828 700 657 605 1,064 1,138 1,128 1,0151,530 4,090 1,712 1,028 1,635 1,099 1,335 1,029 5,983 934 1,521 1,620 1,504 1,338 3,952 3,754 3,780 3,587 15,096 3,938 3,769 3,756 3,633 2,493 2,324 2,244 2,189 9,2003,244 2,464 3,233 2,331 3,345 2,214 3,143 2,191 12,974 3,276 3,271 3,300 3,127 1,166 1,305 1,057 998 4,288 1,051 1,304 1,048 885 do not have standard meanings, so may not be a reliable way to compare us to $ 0.92 $ 1.16 $ 1.15 $ 0.76 $ 4.00 $ 0.97 $ 1.15 $ 1.04 $ 0.83 $ 0.92 $ 1.14 $ 1.15 $ 0.76 $ 3.99 $ 0.97 $ 1.15 $ 1.04 $ 0.80 $ 1.00 $ 1.22 $ 1.17 $ 0.79 $ 4.35 $ 1.14 $ 1.21 $ 1.08 $ 0.93 $ 1.00 $ 1.19 $ 1.16 $ 0.78 $ 4.34 $ 1.13 $ 1.21 $ 1.07 $ 0.90 on-GAAP Measures and Related Performance Measures” for more informati per share, and free cash flow are non-GAAP measures and should not be consid – – – 19 (10) (23) (43) 712 140 139 840 139 l results and key performance indicators for 2019 and 2018. (192) (203) ormation about these measures, including how we calculate them. 2,043 2,755 1,919 2,488 2,278 2,072 2,043 2,135 3,954 4,345 6,212 9,250 4,526 2,807 rior periods. See “Accounting Policies” for more information. 15,073 12,965 $3.99 $3.97 $4.17 $4.15 Full Year : 3 3 2 3 3,4 equipment equipment Basic Income tax expense Corporate items and intercompany eliminations Diluted Media Gain on disposition of property, plant and Other (income) expense Cable Depreciation and amortization Restructuring, acquisition and other Finance costs Income tax adjustment, legislative tax change Basic Corporate items and intercompany eliminations Restructuring, acquisition and other Loss on bond forward derivatives Media Cable Wireless Loss on repayment of long-term debt Gain on disposition of property, plant and Income tax impact of above items Diluted Wireless or alternatives for GAAP measures. TheseSee are “Non-GAAP not Measures defined and terms Related under Performance IFRS, Measures” and for inf As defined. See “Key Performance Indicators”. Adjusted EBITDA, adjusted net income, adjusted basic and diluted earnings 2018 free cash flow has been restated to adapt to our current definition. See “N Effective January 1, 2019, we adopted IFRS 16. We have not restated p Net income Earnings per share: Net income before income tax expense Adjusted EBITDA Deduct (add): Adjusted net income Total revenue Total service revenue 2 3 4 1 Add (deduct): Adjusted earnings per share Net income Adjusted EBITDA QUARTERLY CONSOLIDATED FINANCIAL SUMMARY (In millions of dollars, except per share amounts) QUARTERLY RESULTS Below is a summary of our quarterly consolidated financia Free cash flow Revenue Cash provided by operating activities Capital expenditures MANAGEMENT’S DISCUSSION AND ANALYSIS

FOURTH QUARTER 2019 RESULTS Wireless Results commentary in “Fourth Quarter 2019 Results” compares Trends affecting both Wireless revenue and adjusted EBITDA the fourth quarter of 2019 with the fourth quarter of 2018. reflect: • the growing number of wireless subscribers; Revenue • greater usage of wireless data; Total revenue was stable in the fourth quarter and total service • higher wireless device sales as consumers continue shifting to revenue decreased by 1%, largely driven by a 1% decrease in smartphones; and Wireless service revenue. The Wireless service revenue decrease • decreasing postpaid churn, which we believe is beginning to was primarily a result of the faster-than-expected subscriber reflect the realization of our enhanced customer service efforts; adoption of our new Rogers Infinite unlimited data plans and the partially offset by related decrease in overage revenue and an elevated competitive • lower overage revenue as customers continue to adopt our market environment. unlimited data plans. Cable revenue was stable in the fourth quarter, as Internet revenue Additional trends affecting Wireless adjusted EBITDA reflect: growth of 7% was primarily offset by a decrease in Phone revenue. • higher wireless device subsidies that offset the higher wireless device sales as more consumers shift to higher-cost Media revenue decreased by 2% in the fourth quarter, primarily as smartphones; and a result of the sale of our publishing business earlier this year, • higher costs related to the increasing number of subscribers. partially offset by higher revenue at TSC. Excluding the impact of the sale of our publishing business, Media revenue would have We continue to target organic growth in higher-value postpaid increased by 1% in the fourth quarter. subscribers, reflected in the increasing proportion of postpaid subscribers relative to prepaid subscribers. Prepaid plans are Adjusted EBITDA and margins evolving to have properties similar to those of traditional postpaid In the fourth quarter, consolidated adjusted EBITDA increased by plans. We believe this evolution provides consumers with greater 1% and our adjusted EBITDA margin expanded by 10 basis points. choice of subscribing to a postpaid or prepaid service plan. Growth TheadoptionofIFRS16resultedinanincreaseinadjustedEBITDA inourcustomerbaseovertimehasresultedinhighercostsfor compared to the fourth quarter of 2018 as we have not restated customer service, retention, credit, and collection; however, most of 2018 comparatives; this contributed 3 percentage points of the cost increases have been offset by gains in operating growth, the majority of which impacts Wireless. efficiencies. Wireless adjusted EBITDA increased by 4%, leading to a margin of Wireless operating results are influenced by the timing of our 42.7%, an expansion of 100 basis points from last year, primarily as marketing and promotional expenditures and higher levels of a result of the impact of adopting IFRS 16. subscriber additions and related subsidies, resulting in higher subscriber acquisition- and activation-related expenses, typically in Cable adjusted EBITDA increased by 2% in the fourth quarter, the third and fourth quarters. Conversely, periods with higher primarily as a result of higher Internet revenue, as discussed above. activity may adversely impact subscriber churn metrics as a result of This gave rise to a margin of 50.4% this quarter, up 100 basis points heightened competitive activity. The third and fourth quarters from last year. typically experience higher volumes of activity as a result of “back to Media adjusted EBITDA decreased by 45%, or $18 million, in the school” and holiday season-related consumer behaviour. fourth quarter, primarily as a result of lower revenue, as discussed Aggressive promotional offers are often advertised during these above, and higher programming costs. periods and also contribute to the impact on subscriber metrics. In contrast, we typically see lower subscriber additions in the first quarter of the year. Net income and adjusted net income Net income and adjusted net income both decreased in the fourth The launch of popular new wireless device models can also affect quarter as the increase in adjusted EBITDA was more than offset by the level of subscriber activity. Highly anticipated device launches higher depreciation and amortization and higher finance costs. typically occur in the fall season of each year. Wireless roaming revenue is dependent on customer travel volumes and timing, QUARTERLY TRENDS AND SEASONALITY which is affected by the foreign exchange rate of the Canadian Our operating results generally vary from quarter to quarter as a dollar and general economic conditions. result of changes in general economic conditions and seasonal fluctuations, among other things, in each of our reportable Cable segments. This means our results in one quarter are not necessarily Trends affecting Cable service revenue primarily reflect: indicative of how we will perform in a future quarter. Wireless, • higher Internet subscription fees as customers increasingly Cable, and Media each have unique seasonal aspects to, and upgrade to higher-tier speed plans, including those with certain other historical trends in, their businesses. unlimited usage; • customers adopting Ignite TV; Fluctuations in net income from quarter to quarter can also be • general service pricing increases; and attributed to losses on the repayment of debt, foreign exchange • the shift of business customers from lower-margin, off-net legacy gains or losses, changes in the fair value of derivative instruments, long distance and data services to higher-margin, other income and expenses, impairment of assets, and changes in next-generation services and data centre businesses; partially income tax expense. offset by

48 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 49 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT fall months (generallyyear); the second and third quarters ofand the advertising are concentratedfall in the months spring, (generally summer,year), the and second with and postseasonadvertising third games revenue quarters commanding and ofticket additional a the 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 advertising and related retail cycles, whichin tend the to fourth be most quarter active duefirst quarter; to holiday spending and slower in the • games played are concentrated in the spring, summer, and • revenue related to game day ticket sales, merchandise sales, • 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 Seasonal fluctuations relate to: • periods of increased consumer activity and their impact• on the MLB season, where: • the NHL season, where: Other expenses Depreciation and amortization has beenpast trending upward several over the depreciable years as assetexpansions a base, of our result wireless related and cableof of networks. increasing significantly This capital is an a expenditures direct towe in increase result previous worked the and in to current upgradepremise years ongoing our equipment, as our and general wireless roll network, outand purchase Ignite 4K TV, customer TV Ignite to Internetand our Gigabit, amortization Cable to footprint. alignadditions We to with expect right-of-use assets. ongoing future depreciation capital expenditures and ustomers do not generally have relating to both our broadcastspecialty channels networks (such (such as as FX (Canada)). Citytv) and our further along in our NHL Agreement; and 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 bundling more value-added offerings into our Cable products. conventional Television to Internet services; partially offset by products and services as servicemore plans features, are such increasingly as bundling TV unlimited channels. usage or a greater number of • continual investment in primetime and specialty programming Cable operating resultsshaving and are cord also cutting,watching which influenced traditional has cable by resulted television, inTelevision as trends fewer well subscribers. subscribers in as In aproducts cord lower addition, and number trends Internet of or inhome social the media phone as products use substitutes haveCable of for resulted results traditional wireless in from fewer our Phone business subscribers. c Media Trends affecting Media revenue andthe adjusted result EBITDA of: are generally • fluctuations in advertising and• consumer market subscriber conditions; rate increases; • higher sports and rights costs, including increases as we move • individuals temporarily• suspending the service focused marketing for we extended generally conduct in our fourth any unique seasonal aspects. Cable’s operatingfluctuations results in subscriber arecaused additions by: and affected disconnections,• by typically university and modest college seasonal students who live in residences moving • higher premium supplier fees in Television as a result of Trends affecting Cable adjusted EBITDA primarily• reflect: higher Internet operating margins, as a result of the shift from • competitive losses of legacy• Television and Television Phone subscribers subscribers; downgrading their• service plans; lower and additional usage of Internet, Television, and Phone MANAGEMENT’S DISCUSSION AND ANALYSIS

OVERVIEW OF FINANCIAL POSITION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at As at December 31, January 1 (In millions of dollars) 2019 2019 1 $ Chg % Chg Explanation of significant changes

Assets Current assets: Cash and cash equivalents 494 405 89 22 See “Sources and Uses of Cash”. Accounts receivable 2,304 2,236 68 3 Primarily reflects an increase in certain customer receivables. Inventories 460 466 (6) (1) n/m Current portion of contract assets 1,234 1,052 182 17 Reflects net increases in contracts with customers. Other current assets 524 436 88 20 Reflects an increase in device financing receivables. Current portion of derivative instruments 101 270 (169) (63) Primarily reflects a decrease in the fair values of our expenditure derivatives. See “Financial Risk Management”. Total current assets 5,117 4,865 252 5 Property, plant and equipment 13,934 13,261 673 5 Primarily reflects capital expenditures and additions to right-of-use assets, partially offset by depreciation expense. Intangible assets 8,905 7,205 1,700 24 Primarily reflects the acquisition of 600 MHz spectrum licences. Investments 2,830 2,134 696 33 Primarily reflects fair value increases for certain publicly traded investments. Derivative instruments 1,478 1,339 139 10 Primarily reflects changes in market values of our debt derivatives as a result of the appreciation of the Cdn$ relative to the US$. See “Financial Risk Management”. Contract assets 557 535 22 4 Reflects net increases in contracts with customers. Other long-term assets 275 132 143 108 Reflects an increase in device financing receivables. Goodwill 3,923 3,905 18 – n/m

Total assets 37,019 33,376 3,643 11

Liabilities and shareholders’ equity Current liabilities: Short-term borrowings 2,238 2,255 (17) (1) Reflects net repayments under our US CP program. Accounts payable and accrued liabilities 3,033 2,997 36 1 Primarily reflects an overall increase in trade payables as a result of the timing of payments made. Income tax payable 48 177 (129) (73) Reflects the timing of tax installments. Other current liabilities 141 132 9 7 n/m Contract liabilities 224 233 (9) (4) n/m Current portion of long-term debt – 900 (900) (100) Reflects the repayment of a total of $900 million in senior notes that were due in 2019. Current portion of lease liabilities 230 190 40 21 Reflects liabilities related to new leases entered into during the year. Current portion of derivative instruments 50 87 (37) (43) Reflects the exercise of our bond forwards, partially offset by an increase in the fair value of our short-term US CP debt derivatives. See “Financial Risk Management”.

Total current liabilities 5,964 6,971 (1,007) (14)

Provisions 36 35 1 3 n/m Long-term debt 15,967 13,390 2,577 19 Primarily reflects the net issuance of senior notes during the year. See “Managing our Liquidity and Financial Resources”. Derivative instruments 90 22 68 n/m Reflects changes in market values of our debt derivatives, primarily as a result of the appreciation of the Cdn$ relative to the US$. See “Financial Risk Management”. Lease liabilities 1,495 1,355 140 10 Reflects liabilities related to new leases entered into during the year. Other long-term liabilities 614 546 68 12 Primarily reflects an increase in our net pension liability. Deferred tax liabilities 3,437 2,901 536 18 Primarily reflects an increase in temporary differences between the accounting and tax bases for certain assets.

Total liabilities 27,603 25,220 2,383 9 Shareholders’ equity 9,416 8,156 1,260 15 Reflects changes in retained earnings and equity reserves.

Total liabilities and shareholders’ equity 37,019 33,376 3,643 11

1 Effective January 1, 2019, we adopted IFRS 16. We have not restated comparatives for 2018. We will therefore use January 1, 2019 figures for comparative purposes. See “Accounting Policies”.

50 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 51 | – – – – (6) 25 (18) (54) 411 405 650 508 388 (933) (988) (114) (370) (726) (125) (823) 2018 2018 2,255 1,605 5,498 5,384 4,288 (2,944) (2,790) 89 30 21 (19) (61) (60) (35) 650 405 494 175 (167) (655) (138) (400) (779) (121) 2019 2019 2,238 1,588 5,843 5,705 4,526 2,184 (1,016) (4,612) (2,807) (1,731) ROGERS COMMUNICATIONS INC. Years ended December 31 Years ended December 31 es and transaction costs. See 2019 ANNUAL REPORT program Total short-term borrowings “Financial Risk Management”flows for relating to more our derivative instruments. information on the cash Short-term borrowings Our short-term borrowings consistour of amounts accounts outstanding under receivableUS CP securitization program. Below program isas a at and December summary 31, of under 2019 our and 2018. short-term our borrowings FINANCING ACTIVITIES This year, we received net amountsnet of amounts $2,032 million of (2018 – $55term repaid million) debt, on our and short-term borrowings, related long- derivativ (In millions of dollars) Accounts receivable securitization US commercial paper program paratives for 2018. See “Accounting Policies” for more information. n non-cash working capital items, income taxes paid, to capital expenditures and intangible assets 1 ransactions, net of cash acquired igher than 2018. See “Capital Other Repurchase of Class B Non-Voting Shares Dividends paid Change in non-cash operating working capital items Income taxes paid Interest paid Net issuance (repayment) of long-term debt Principal payments of lease liabilities Changes in non-cash working capital related Net proceeds received on short-term borrowings Capital expenditures Acquisitions and other strategic t Other Net (payments) proceeds on settlement ofTransaction debt costs derivatives incurred and forward contracts Additions to program rights and interest paid Effective January 1, 2019, we adopted IFRS 16. We have not restated com Cash and cash equivalents (bank advances), beginning of yearCash and cash equivalents, end of year Change in cash and cash equivalents Cash provided by (used in) financing activities (In millions of dollars) Cash provided by operating activities before changes i Acquisitions and other strategic transactions This year, we paidspectrum $1,731 licences. million We for didother the strategic not transactions acquisition make in 2018. of any 600 material MHz acquisitions or Expenditures” for more information. Capital expenditures We spent a netplant and amount equipment of before $2,807 relatedcapital changes million in items, this non-cash year working which on was property, 1% h INVESTING ACTIVITIES OPERATING ACTIVITIES The increase in cash providedresult by operating of activities higher this adjusted yearpaid EBITDA, was and a partially higher income offset taxes by paid. higher interest 1 OPERATING, INVESTING, AND FINANCING ACTIVITIES Managing Our Liquidity and Financial Resources SOURCES AND USES OF CASH Cash provided by operating activities before income taxes paid and interest paid Cash provided by operating activities Cash used in investing activities Financing activities: Investing activities: MANAGEMENT’S DISCUSSION AND ANALYSIS

In April 2019, we entered into a US$2.2 billion ($2.9 billion) non-revolving credit facility. During 2019, we borrowed US$420 million ($561 million) and subsequently repaid US$420 million ($564 million) on this facility. Concurrent with the borrowings, we entered into debt derivatives to hedge the foreign currency risk associated with the borrowings under the non-revolving credit facility. We did not designate these debt derivatives as hedges for accounting purposes. In May 2019, we cancelled the non-revolving credit facility. The table below summarizes the activity relating to our short-term borrowings for the years ended December 31, 2019 and 2018.

Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Proceeds received from US commercial paper 12,897 1.328 17,127 15,262 1.294 19,752 Repayment of US commercial paper (12,876) 1.328 (17,094) (14,858) 1.295 (19,244) Net proceeds received from US commercial paper 33 508 Proceeds received from accounts receivable securitization – 225 Repayment of accounts receivable securitization – (225) Net proceeds received from accounts receivable securitization – – Proceeds received from credit facilities 420 1.336 561 ––– Repayment of credit facilities (420) 1.343 (564) ––– Net repayment of credit facilities (3) – Net proceeds received on short-term borrowings 30 508

We have a US CP program that allows us to issue up to a maximum Concurrent with our US CP issuances, we entered into debt aggregate principal amount of US$1.5 billion. Funds can be derivatives to hedge the foreign currency risk associated with the borrowed under this program with terms to maturity ranging from principal and interest components of the borrowings under our 1 to 397 days, subject to ongoing market conditions. Any issuances US CP program. See “Financial Risk Management” for more made under the US CP program will be issued at a discount. The information. obligations of RCI under the US CP program are unsecured and guaranteed by RCCI, and rank equally in right of payment with all our senior notes and debentures. See “Financial Condition” for more information.

Long-term debt Our long-term debt consists of amounts outstanding under our bank and letter of credit facilities and the senior notes and debentures we have issued. The tables below summarize the activity relating to our long-term debt for the years ended December 31, 2019 and 2018.

Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Credit facility borrowings (US$) –––125 1.257 157 Credit facility repayments (US$) –––(125) 1.256 (157) Net borrowings under credit facilities – – Senior note issuances (Cdn$) 1,000 – Senior note issuances (US$) 2,250 1.326 2,984 750 1.251 938 Total senior note issuances 3,984 938 Senior note repayments (Cdn$) (1,800) – Senior note repayments (US$) –––(1,400) 1.258 (1,761) Total senior note repayments (1,800) (1,761) Net issuance (repayment) of senior notes 2,184 (823) Net issuance (repayment) of long-term debt 2,184 (823)

52 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 53 | 2 11 (18) 672 (823) 2018 14,290 14,448 (Cdn$) 12 and discounts (61) Transaction costs (458) 2019 2,184 recognized in net income 15,967 14,290 1 ROGERS COMMUNICATIONS INC. Years ended December 31 (Cdn$) Total gross proceeds ich was separately funded through 2019 ANNUAL REPORT at issuance all of our senior notes and debentures. Discount/premium rate In November 2019,amount we of repaid ourSeptember $900 the million 2020. entire 4.7% For outstandingrecognized senior the principal notes a year otherwise $19 ended duereflecting million December in loss our 31, onrepayment. obligation 2019, repayment we to of long-term pay debt In redemption April 2018, premiums we repaidour the upon US$1.4 entire outstanding billion principal ($1.8 amount billion)August of 6.8% senior 2018. notes At otherwise duewere the in settled same for net time, proceedswe the received repaid of a associated $326 net debt million. amountassociated As of derivatives debt a $1.5 result, derivatives, billion, including wh settlementour of the US CPrecognized program a and $28reflecting million our loss our bank onrepayment. credit obligation repayment facility. to of In long-term pay 2018, debt redemption we Repurchase premiums of Class B upon Non-Voting Shares During the year, we repurchasedNon-Voting for cancellation Shares 9,887,357 under Class our B price NCIB programs for of ainformation. total $655 purchase million. SeeDividends “Financial Condition”In for 2019,outstanding more we Class declared A Sharespaid and $1,016 and paid million Class in BInformation” dividends for cash Non-Voting more dividends. information. on Shares. See We each “Dividends and of Share RCI’s neral corporate purposes. In 2018, the proceeds were used to repay Interest 2019. In 2019, the proceeds were used to purchase 600 MHz spectrum (Cdn$) amount action costs and discounts in the carrying value of the long-term debt, and Due Notional date (US$) amount Notional amount Principal , guaranteed by RCCI, and ranks equally with nominated issuances, we entered s, and letter of credit facilities. March 2019November 2019September 2020, repaid November 2019August 2018, repaid April 2018 – 900 1,400 – – 1,761 500 400 April 30, 2019April 30, 2019November 12, 2019February 8, 2018 US 1,000 US 1,250 1,000 2049 2049 US 2029 3.700% 750 4.350% 3.250% 2048 4.300% 98.926% 99.667% 99.746% 1,308 99.398% 1,676 1,000 938 25 20 7 16 using the effective interest method. Gross proceeds before transaction costs, discounts,Transaction and premiums. costs, discounts, and premiums are included as deferred trans Long-term debt net of transaction costs, end of year (Gain) loss on foreign exchange Deferred transaction costs incurred Amortization of deferred transaction costs (In millions of dollars) 2019 repayments Total for 20192018 repayments – 1,800 There wererepayments. no debt derivatives associated with the 2019 Maturity date (In millions of dollars) The US dollar-denominated seniorpublic notes were offerings issued pursuant insenior notes to were the issued pursuant to US. a public The offeringConcurrent in with Canada. Canadian the US dollar-denominated dollar-de into debt derivatives toobligations convert on all the senior interest notesRisk and to Management” principal for Canadian more payment dollars. information. See “Financial The issued notes are unsecuredequally and guaranteed with by RCCI,debentures, bank ranking all credit facilitie of our other unsecured senior notes and 1 2 Repayment of senior notes and relatedBelow derivative settlements is a summary2019 of and 2018. the repayment of our senior notes during Date issued (In millions of dollars, except interest rates and discounts) Net issuance (repayment) of long-term debt The revolving credit facility is unsecured Issuance of senior notes and relatedBelow debt is derivatives a summary of the senior notes that we issued in 2018 and Long-term debt net of transaction costs, beginning of year licences, to repay senior notes maturing in 2019 and 2020, and for ge maturing senior notes and for general corporate purposes. 2019 issuances 2018 issuances MANAGEMENT’S DISCUSSION AND ANALYSIS

Shelf prospectuses FREE CASH FLOW We have two shelf prospectuses that qualify the offering of debt Years ended December 31 securities from time to time. One shelf prospectus qualifies the public offering of up to $4 billion of our debt securities in each of 2018 (In millions of dollars) 2019 (restated) 1 %Chg the provinces of Canada (Canadian Shelf) and the other shelf prospectus (together with a corresponding registration statement Adjusted EBITDA 2 6,212 5,983 4 filed with the US Securities and Exchange Commission) qualifies Deduct (add): Capital expenditures 3 2,807 2,790 1 the public offering of up to US$4 billion of our debt securities in Interest on borrowings, net of the United States and Ontario (US Shelf). We have issued an capitalized interest 727 689 6 aggregate of $1.0 billion of debt securities under the Canadian Cash income taxes 4 400 370 8 Shelf and an aggregate of US$2.25 billion of debt securities under Free cash flow 1,2 2,278 2,134 7 the US Shelf. Both the Canadian Shelf and the US Shelf will expire 1 Effective January 1, 2019, we have redefined free cash flow such that we no longer in May 2020. adjust for the “net change in contract asset and deferred commission cost asset balances”. We have redefined free cash flow to simplify this measure and believe removing it will make us more comparable within our industry. 2 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 to compare us to other companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate them. 3 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 assets. 4 Cash income taxes are net of refunds received.

The 7% increase in free cash flow this year was primarily a result of: • higher adjusted EBITDA; partially offset by • higher interest on borrowings, net of capitalized interest; and • higher cash income taxes.

FINANCIAL CONDITION LIQUIDITY Below is a summary of our total available liquidity under our bank credit facilities, letters of credit facilities, and short-term borrowings. As at December 31, 2019 (In millions of dollars) Total available Drawn Letters of credit US CP program 1 Net available Bank credit facilities: Revolving 3,200 – 8 1,593 1,599 Outstanding letters of credit 101 – 101 – – Total bank credit facilities 3,301 – 109 1,593 1,599 Accounts receivable securitization 1,050 650 – – 400 Cash and cash equivalents 494 – – 494 Total 4,845 650 109 1,593 2,493

As at December 31, 2018 (In millions of dollars) Total available Drawn Letters of credit US CP program 1 Net available Bank credit facilities: Revolving 3,200 – 9 1,605 1,586 Outstanding letters of credit 982 – 982 – – Total bank credit facilities 4,182 – 991 1,605 1,586 Accounts receivable securitization 1,050 650 – – 400 Cash and cash equivalents 405 – – – 405 Total 5,637 650 991 1,605 2,391

1 Amounts presented are inclusive of the outstanding discounts on issuance.

Subsequent to the final payment for the 600 MHz spectrum licence In addition to the noted sources of available liquidity, we held acquisition in May 2019, we cancelled $881 million of letters of $1,831 million of marketable securities in publicly traded credit, which reduced total available liquidity to $4.8 billion as at companies as at December 31, 2019 (2018 – $1,051 million). December 31, 2019 (December 31, 2018 – $5.6 billion).

54 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 55 | As at December 31 2.7 2.5 (405) (405) As at 2019 2018 1,545 – 6,157 5,983 2,255 2,255 (1,448) (1,448) 14,404 14,404 16,351 14,806 January 1 ROGERS COMMUNICATIONS INC. 2.9 (494) As at 2019 1,725 6,212 2,238 make capital structure-related (1,414) 16,130 18,185 short-term borrowings, and cash and December 31 2019 ANNUAL REPORT 4 4 1 3 2 4 equivalents assets valued without any adjustment for credit risk 12-month adjusted EBITDA Includes currenttransaction and costs and long-term discounts.GAAP See portion “Reconciliation Measures of and of adjustedamount. net Related debt” long-term Performance in “Non- Measures” debtFor purposes for before of the calculatingincluding calculation deferred adjusted debt derivatives net of valued debt without this and adjustmentto evaluate for debt debt credit leverage leverage risk and is ratio, for commonlySee market we used “Accounting valuation Policies” and believe for transactional purposes. more information. Adjusted net debt and adjusted EBITDAconsidered are substitutes non-GAAP measures or and shouldterms alternatives not under for be IFRS and GAAP doto measures. not have These compare standard are meanings, so usPerformance not may Measures” not defined to be for a other information reliablecalculatethemandthedebtleverageratioinwhichtheyareused. way about companies. these See measures, including “Non-GAAP how Measures we and Related Cash and cash Adjusted net debt Debt leverage ratio 1 2 3 4 ADJUSTED NET DEBT AND DEBT LEVERAGEWe RATIO use adjustedvaluation-related net debt analysis anddecisions. debt Adjusted and leverage netderivative ratio debt assets includes to or liabilities, long-term conduct cash debt, equivalents. net debt (In millions of dollars, except ratios) Long-term debt Netdebtderivative Divided by: trailing of securities rated.considered Investment-grade to credit ratings beP-3 (Moody’s) are quality ratings or generally higher. of atCredit least ratings are A-3 notsecurities, recommendations (S&P), to nor purchase, F3 are hold,suitability. or they (Fitch), There sell is a no or 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 Short-term borrowings Lease liabilities 2 BBB+ with a stable outlook BBB+ with a stable outlook Baa1 with a stable outlook Baa1 with a stable outlook A-2 P-2 N/A BBB+ with a stable outlook BBB+ with a stable outlook 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. Issuance S&P Moody’s Fitch Corporate credit Senior unsecured US commercial 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 instrumentsP-1 across (Moody’s), ranges representing the theto highest universe from C quality (S&P of and of Fitch), A-1+ securities and rated, not prime (S&P), (Moody’s) for the lowest F1+ quality (Fitch), or 1 2 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 2019. COVENANTS 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 significant2019 As and of of at 2018, we December were 31, Cash”financial in compliance ratios, with impose all and financialagreements. covenants, all certain Throughout of 2019, therestrictions these terms of any covenants and material consequence did conditions on not our of operations. impose our debt Weighted average cost of borrowings Our borrowings hadDecember 31, a 2019 (2018 weighted –to average maturity 4.45%) of and 14.1 cost a years (2018 weighted of – average 10.7 term years). 4.30% as at MANAGEMENT’S DISCUSSION AND ANALYSIS

As a result of our adoption of IFRS 16 effective January 1, 2019, we PENSION OBLIGATIONS have modified our definition of adjusted net debt such that it now Our defined benefit pension plans had a net funding deficit of includes the total of “current portion of lease liabilities” and “lease approximately $451 million as at December 31, 2019 liabilities”. We believe adding total lease liabilities to adjusted net (2018 – $365 million). During 2019, our net funding deficit debt is appropriate as they reflect payments to which we are increased by $86 million primarily as a result of a net increase in the contractually committed and the related payments have been plan obligations resulting from lower discount rates. removed from our calculation of adjusted EBITDA due to the accounting change. We made a total of $179 million (2018 – $148 million) of contributions to our funded defined benefit pension plans this In addition, as at December 31, 2019, we held $1,831 million of year. We expect our total estimated funding requirements for our marketable securities in publicly traded companies funded defined benefit pension plans to be $145 million in 2020 (2018 – $1,051 million). and to be adjusted annually thereafter based on various market factors, such as interest rates, expected returns, and staffing Our adjusted net debt increased by $3,379 million from assumptions. December 31, 2018 as a result of: • the inclusion of lease liabilities in the calculation, which had a Changes in factors such as the discount rate, participation rates, balance of $1,725 million at year-end, as discussed above; and increases in compensation, and the expected return on plan assets • a net increase in our outstanding long-term debt, in part due to can affect the accrued benefit obligation, pension expense, and the 600 MHz spectrum licences we acquired for $1,731 million the deficiency of plan assets over accrued obligations in the future. this year; partially offset by See “Accounting Policies” for more information. • an increase in our net cash position. See “Overview of Financial Position” for more information.

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 (from time denominated senior notes and debentures, credit to time as necessary) facility borrowings, commercial paper borrowings, and certain lease liabilities Bond forwards Impact of fluctuations in market interest rates on Forward interest rate agreements forecast interest payments for expected long-term debt 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 associated with our US dollar-denominated senior notes and have fixed the interest rate on 87.2% (2018 – 85.3%) of our debt, debentures, lease liabilities, credit facility borrowings, and US CP including short-term borrowings, as at December 31, 2019. borrowings. We designate the debt derivatives related to our senior notes and debentures and lease liabilities as hedges for DEBT DERIVATIVES accounting purposes against the foreign exchange risk associated We use cross-currency interest rate agreements (debt derivatives) with specific debt instruments. Debt derivatives related to our credit to manage risks from fluctuations in foreign exchange rates facility and US CP borrowings have not been designated as hedges for accounting purposes.

56 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 57 | (1) 63 2018 4.45% 85.3% 1.1438 100.0% Financial (Cdn$) 10.7 years Notional US$ 6,050 $ 13,070 US$ 6,050 $ 15,320 rate As at December 31 2019 4.30% 87.2% 1.1932 100.0% Exchange 14.1 years US$ 8,300 $ 15,254 US$ 8,300 $ 17,496 ROGERS COMMUNICATIONS INC. 125 1.256 157 125 1.257 157 (US$) 15,26214,833 1.294 1.291 19,751 19,148 Notional 1 3 3 (13) llion loss from the hedging reserve within (Cdn$) 2019 ANNUAL REPORT Notional 2 rate , as at December 31, 2019 and December 31, 2018, RCI accounted for Exchange borrowings ion) of debt derivatives related to our outstanding US dollar- Weighted average term to maturity Percent hedged Weighted average interest rate on Hedged exchange rate Percent of borrowings at fixed rates Hedged with debt derivatives Total borrowings at fixed rates Total borrowings vatives to offset the foreign exchange and interest rate risk on our 420 1.343 564 420 1.336 561 ttle any debt derivatives related to our lease liabilities during the Borrowings include long-term debt,short-term including borrowings the impactsecuritization associated programs. of debt with derivatives, and our US CP and accounts receivable US dollar-denominated long-term debthedged reflects interest the rate. hedged exchangePursuant rate and to the instruments the requirements100% for of its hedge debt derivatives relateddollar-denominated accounting to debt. senior As notes under a as result, hedgesour IFRS against as US designated dollar-denominated at US senior 9, December notes 31,and and 2019 economic debentures purposes. and are hedged 2018, for 100% accounting of (US$) (In millions of dollars, except exchange rates, percentages, and years) Amount of borrowings at fixed rates 3 1 2 As at Decemberdenominated 31, 2019, senior we noteshedged had using and debt US$8.3 derivatives. debentures, billion of all US of dollar- which were US dollar-denominated long-term debt $900 million notional amount of outstanding bond forwards within ted to our credit facility borrowings and commercial paper program e derivatives settle on a monthly basis over the next 36 months to facility and US CP borrowings as a result of a favourable interest rate 12,89712,847 1.328 1.329 17,127 17,069 Year ended December 31, 2019 Year ended December 31, 2018 Notional ts” within finance costs. We subsequently extended the bond forwards (Cdn$) Equivalent 1 rate Fixed (Cdn$) interest hedged rate d hedge accounting and reclassified a $21 mi Coupon US$ Hedging effect date ity and commercial paper borrowings. Maturity (US$) amount Notional Principal/ Debt derivatives entered Debt derivatives settled Net cash (paid) received Net cash received (paid) Debt derivatives settled Debt derivatives entered April 30, 2019November 12, 2019February 1,000 8, 2018 1,250 2049 3.700% 2049 4.350% 3.996% 4.173% 1,308 750 1,676 2048 4.300% 4.193% 938 Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate. Lease liabilities During 2019, we entereddenominated lease into liabilities US$70 at millionsatisfy an notional all average future amount rate US ($91 ofyear. dollar-denominated mill $1.318/US$. lease Thes payments. We did not se Commercial paper program (In millions of dollars, except exchange rates) Credit facilities 2019 issuances 2018 issuances the designated timeshareholders’ frame, equity we to “change discontinue inand fair redesignated value them of as derivative effective instrumen hedges. During 2018, after determining we would not be able to exercise our BOND FORWARDS spread obtained from borrowing funds inUS US dollar-denominated dollars. credit We facil used these deri during 2019 and 2018. Debt derivatives related to credit facilitiesDuring and the US year, CP we entered into debt derivatives related to our credit Below is a summary of the debt derivatives we entered and settled rela 1 Settlement of debt derivatives related toWe senior notes did notduring 2019. settle any debt derivativesIn related April to 2018,repayment senior we of notes settled theUS$1.4 billion the entire ($1.8 outstanding debtAugust billion) principal derivatives 6.8% 2018. senior amount relatedinformation. notes See of to otherwise our the “Sources due in and Uses of Cash” for more Issuance of debt derivatives related to senior notes (In millions of dollars, except interest rates) Effective date MANAGEMENT’S DISCUSSION AND ANALYSIS

During 2019, we exercised our $500 million notional bond forward due 2019 in relation to the issuance of the $1 billion senior notes due 2029 and paid $54 million to settle the derivative. We also exercised our $400 million 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. We did not enter into or settle any other bond forwards during 2019 or 2018. As at December 31, 2019, we had no outstanding bond forwards.

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, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$)

Expenditure derivatives entered 810 1.321 1,070 720 1.244 896 Expenditure derivatives settled 900 1.249 1,124 840 1.301 1,093

The expenditure derivatives noted above have been designated as (2018 – 5.0 million) Class B Non-Voting Shares with a weighted hedges for accounting purposes. average price of $51.76 (2018 – $51.54). These derivatives have not been designated as hedges for accounting purposes. We record As at December 31, 2019, we had US$990 million of expenditure changes in their fair value as a stock-based compensation expense, derivatives outstanding (2018 – US$1,080 million), at an average rate or offset thereto, which serves to offset a substantial portion of the of $1.300/US$ (2018 – $1.241/US$), with terms to maturity ranging impact of changes in the market price of Class B Non-Voting Shares from January 2020 to December 2021 (2018 – January 2019 to on the accrued value of the stock-based compensation liability for December 2020). As at December 31, 2019, our outstanding our stock-based compensation programs. expenditure derivatives maturing in 2020 are hedged at an average exchange rate of $1.30/US$. This year, we settled 0.7 million (2018 – 0.4 million) equity derivatives at a weighted average price of $71.66 (2018 – $61.15) EQUITY DERIVATIVES for net proceeds of $16 million (2018 – $4 million). We use stock-based compensation derivatives (equity derivatives) to We have executed extension agreements for our equity derivative hedge the market price appreciation risk of the Class B Non-Voting contracts under substantially the same terms and conditions with Shares granted under our stock-based compensation programs. As revised expiry dates to April 2020 (from April 2019). at December 31, 2019, we had equity derivatives for 4.3 million

58 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 59 | (Cdn$) Fair value Dividends paid (Cdn$) amount Notional (in millions of dollars) rate As at December 31, 2018 ROGERS COMMUNICATIONS INC. 1.2413 1,341 122 Exchange (US$) 1,080 amount Notional 2019 ANNUAL REPORT Dividend per share (dollars) As assets As assets – – 258 92 As assetsAs liabilitiesAs assets 5,500 550 1.1243 1.3389 6,184As 736 1,354 liabilities 1,178 1.3276 (22) 1,564 41 – – 900 (87) accounted for as hedges: for as cash flow hedges: not accounted for as hedges: derivative assetas cash flow hedges: accounted for as cash flow hedges: 1,373 Declaration dateApril 21, 2020 RecordJune date 3, 2020October 21, 2020 June 10, 2020 December 10, 2020 Payment September date 9, 2020 January 4, 2021 October 1, 2020 July 2, 2020 aid on RCI’s outstanding Class A Shares and Class B Non-Voting We currently expect that thefor remaining the record 2020 and declaration paymentthe of dates declaration dividends by the will Board be each as quarter at follows, its subject sole discretion: to Equity derivatives not Net mark-to-market asset 1,500 (In millions of dollars, except exchange rates) Debt derivatives accounted Short-term debt derivatives Net mark-to-market debt Bond forwards accounted for Expenditure derivatives 1 16 55 (96) (29) (15) Fair value 1,508 1,383 1,439 (Cdn$) (Cdn$) amount Notional rate As at December 31, 2019 Exchange (US$) amount Notional As liabilities 2,570 1.3263 3,409 As assetsAs liabilitiesAs assets 270 720 1.2391 1.3228 335 952 – – 223 As assetsAs liabilities 5,800 1.1357 6,587 1,223 1.3227 1,618 accounted for as cash flow hedges: for as hedges: as cash flow hedges: accounted for as hedges: derivative asset derivative asset Expenditure derivatives Equity derivatives not accounted Net mark-to-market asset Debt derivatives accounted for Short-term debt derivatives not Net mark-to-market debt Net mark-to-market expenditure On January 22, 2020, the$0.50 Board of per Directors Class declared A a Share dividendon April and of 1, Class 2020 B to Non-Voting shareholders of Share record to on be March 10, paid 2020. January 24, 2019April 18, 2019June 5, 2019October 23, 2019 March 12,January 2019 25, 2018April 19, 2018 June 10,August 2019 15, 2018 December 11, 2019October September 19, 9, 2018 2019 March 12, 2018 June April September 11, 1, 14, 2018 2019 2018 December 11, 2018 January 2, 2020 October 1, 2019 July 2, 2019 April 3, 2018 October 3, 2018 January 3, 2019 July 3, 2018 0.50 0.50 0.50 0.50 0.48 0.48 0.48 0.48 257 253 256 256 247 247 247 247 Shares. Declaration date Record date Payment date DIVIDENDS AND SHARE INFORMATION DIVIDENDS Below is a summary of the dividends that have been declared and p (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 2019, the TSX accepted a notice of our intention to As at December 31 commence a NCIB program (2019 NCIB) that allows us to purchase, during the twelve-month period beginning April 24, 2019 2018 2019 and ending April 23, 2020, the lesser of 35.7 million Class B Common shares outstanding 1 Non-Voting Shares and that number of Class B Non-Voting Shares Class A Voting 111,154,811 111,155,637 that can be purchased under the 2019 NCIB for an aggregate Class B Non-Voting 393,770,507 403,657,038 purchase price of $500 million. Rogers security holders may obtain Total common shares 504,925,318 514,812,675 a copy of this notice, without charge, by contacting us. Options to purchase Class B In April 2018, the TSX accepted a notice of our intention to Non-Voting Shares commence a NCIB program (2018 NCIB) that allowed us to Outstanding options 3,154,795 2,719,612 purchase, during the twelve-month period beginning April 24, Outstanding options 2018 and ending April 23, 2019, the lesser of 35.8 million Class B exercisable 993,645 1,059,590 Non-Voting Shares and that number of Class B Non-Voting Shares that could be purchased under the NCIB for an aggregate 1 Holders of our Class B Non-Voting Shares are entitled to receive notice of and to purchase price of $500 million. We did not repurchase any shares 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 during the year ended December 31, 2018. made to purchase outstanding Class A Shares, there is no requirement under applicable law or our constating documents that an offer be made for the In 2019, we purchased 9.9 million shares under our NCIB programs outstanding Class B Non-Voting Shares, and there is no other protection available to for $655 million. Pursuant to the 2019 NCIB, we repurchased for shareholders under our constating documents. If an offer is made to purchase both cancellation 7.7 million Class B Non-Voting Shares for $500 million, classes of shares, the offer for the Class A Shares may be made on different terms thereby purchasing the maximum allowed under the 2019 NCIB. In than the offer to the holders of Class B Non-Voting Shares. 2019, pursuant to the 2018 NCIB, we repurchased for cancellation As at February 29, 2020, 111,154,811 Class A Shares, 393,770,507 2.2 million Class B Non-Voting Shares for $155 million. Class B Non-Voting Shares, and 3,145,274 options to purchase Class B Non-Voting Shares were outstanding. 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) 2019 2018 Basic weighted average number of shares outstanding 512 515 Diluted weighted average number of shares outstanding 513 516

60 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 61 | ntract inception. After 5Years Total ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT for periods in excess of one year at co –– 2,050 2,353 – 11,727 (361) 16,130 (516) (877) 1–––1 95 108 45 – 248 312620 215 1,111 92 1,052 41 830 660 3,613 1 Year 1-3 Years 4-5 Years Less than rrangements as at December 31, 2019. See notes 3, 21, and 27 to our 2019 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. Property, plant and equipmentIntangible assetsProgram rights Other long-term liabilitiesTotal 106 93 – 44 1 12 19 4,381 – 7 5,320 – 200 4,636 7 – 22,103 26 63 36,440 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 2019 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 Player contracts Net interest paymentsLease liabilitiesDebt derivative instruments Expenditure derivative instruments 735 230 1,299 1,121 413 8,763 326 11,918 1,251 2,220 Purchase obligations Short-term borrowingsLong-term debt 2,238 – – – 2,238 MANAGEMENT’S DISCUSSION AND ANALYSIS

Governance and Risk Management GOVERNANCE AT ROGERS BOARD OVERSIGHT The Board delegates certain responsibilities to its seven 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 the confidence of 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 (2018 – 92%). 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, 2019 (2018 – 27%) through its • Corporate Governance Committee – assists the Board to ensure ownership of a combined total of 147 million (2018 – 141 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: • Executive Committee – assists the Board in discharging its • separation of the CEO and Chair roles; responsibilities between meetings, including acting in such areas • an independent lead director; as are specifically designated and authorized at a preceding • formal corporate governance policies and charters; Board meeting to consider matters that may arise from time to • a code of business conduct and whistleblower hotline; time. • director share ownership requirements; • Finance Committee – reviews our investment strategies, general • Board and committee in camera discussions; debt, and equity structure and reports on them to the Board. • annual reviews of Board and Committee performance; • Pension Committee – oversees the administration of our retiree • Audit and Risk Committee meetings with internal and external pension plans and reviews the investment performance and auditors; provisions of the plans. • an orientation program for new directors; You can find more details about governance at Rogers on our • regular Board and committee education sessions; Investor Relations website (investors.rogers.com), including: • committee authority to retain independent advisors; and • a complete statement of our corporate governance practices; • director material relationship standards. • our codes of conduct and ethics; Prior to Mr. Burgess’ resignation from the Board effective • full Board committee charters; November 20, 2019, a majority of our directors were independent, • director biographies; and while currently half of the directors are independent. The Board • a summary of the differences between the NYSE corporate currently intends to nominate proposed directors that would result governance rules that apply to US-based companies and our in a majority of independent directors, if all those nominated are governance practices as a non-US-based issuer listed on the elected at the upcoming annual general shareholder meeting. 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.

62 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 63 | Pension Chair Member ROGERS COMMUNICATIONS INC. Nominating nefit policies and practices. xt generation of wireless cy outlines our responsibilities Human Resources 2019 ANNUAL REPORT . ™ improve transparency and wethe strive privacy to space. Our be Privacyand an Poli industry leader practices in information of regarding our employees andOfficer the customers. Our oversees Chief protection Privacy applicable laws, our and of responds to compliance requestsfor the from customer law data. with enforcement personal this policy and all capabilities, and careers ofand our people to to make supportachieve their Rogers this, success it the isteams, best important and that place continue we to to livejourneys. support our work our values, employees in In develop onengagement our Canada. their scores 2019, career To byimproving investing our we in frontline experience, growth strengtheningand sustained and collaboration, rallying development, around best-in-class ourOfficer purpose. Our employee Chief overseesResources Human Committee Resources assists talent the Board inand monitoring, approving management, reviewing, compensation and be while the Human on core performancenetwork and reliability to andtechnology. invest prepare in our for wireless theto manage ne a range of productwe responsibility issues. have For example, policiesregulations and in codes, we place haveand programs to and teams advise to comply manage stewardship with on all programs our relevant torecycling accessibility of safety manage our offerings, used theFidoTrade products, and including proper Rogers we Trade-Up disposal and operate and • Customer Privacy and Information Security: We actively work to Employee experience • Talent Management: It is our goal to invest in building the skills, • Product Responsibility: We have programs and policies in place Executive Finance Corporate Governance Risk Audit and Board of Directors and its Committees Directors and Board of behaviour, and good corporate PC, QC FCPA, FCA C.M. C.M. CPA, CA C.M. customers first in everythingstrategic priorities. we We continue do; to this focusour on is self-serve customers options a for core andcustomer pillar we service of our invest representatives.Likelihood In in to 2019, trainingbest-in-class we survey and Recommend experiences improved tools anddrive increase improved the (LTR) for insights. response rates our to surveys toa part of align our identity,latest whether with it network is bringing technologies$2.8 new billion to products in or capital market. the expenditures,going with In to much our of 2019, that wireless investment and we cable networks. invested We continue to focus citizenship, underpinned by guidelines andthe policies that actions govern responsible of conduct. our directors and employees and promote standards of integrity, ethical Isabelle Marcoux, The Hon. David R. Peterson, Loretta A. Rogers Martha L. Rogers Melinda M. Rogers Philip B. Lind, Joe Natale Robert Dépatie Bonnie R. Brooks, Edward S. Rogers Robert J. Gemmell John H. Clappison, Alan D. Horn, John A. MacDonald As at March 5, 2020 As at March 5, Customer experience • Customer Service and Transparency: We believe in putting • Network Leadership and Innovation: Innovation has always been Good governance • Governance and Ethics: We strive to uphold the highest SOCIAL RESPONSIBILITY CORPORATE SOCIAL RESPONSIBILITY At Rogers, being a good corporatebusiness. citizen is Corporate at the very socialfounder, heart Ted of responsibility Rogers, our and wasat continues Rogers to today. important be a to core value our embraced The material aspects of ourare corporate grouped social into responsibility six platform our focus approaches in areas addressing that them: are listed below, along with MANAGEMENT’S DISCUSSION AND ANALYSIS

• Inclusion and Diversity: We aim to create an open, trusting, and organizations and housing providers. Approximately 200,000 inclusive workplace where we embrace diversity of thought and Canadian households are eligible for Internet access through the straight talk. We believe that reflecting the diversity of our Connected for Success program, giving them the tools and customers and communities allows us to serve them better. Our resources needed to experience the benefits of connectivity. Inclusion & Diversity Council is composed of leaders who oversee the development and implementation of our Inclusion & Economy and society Diversity strategy. We aim to increase representation at the • Economic Performance: We strive to offer innovative solutions for executive level for women and visible minorities, and to increase customers, create diverse and well-paying jobs, support small representation overall for persons with disabilities, Indigenous businesses, pay our fair share of taxes, and deliver dividends to peoples, and LGBTQ2S+. shareholders. Beyond these direct economic impacts, our • Safety and Well-being: We are on a dedicated journey to performance produces indirect economic benefits, including support our employees’ safety and well-being holistically, significant charitable donations and locally procured goods and focusing on the whole employee, including their safety and services. physical and mental health at work and in their lives. We are also • Supply Chain Management: Suppliers play a huge role in our committed to providing and maintaining safe working success, which is why we ensure that we have strong supplier environments for employees, volunteers, contractors, visitors, and selection processes and management, and that we conduct members of the public who may be affected by our activity. We business with socially and environmentally responsible have a robust, risk-based safety management system that is companies that share our values. We have strong, sound focused on identifying our greatest safety risks, preventing procurement processes and demand that our suppliers adhere injuries through multi-faceted programs, and auditing our to our Supplier Code of Conduct. This code sets out performance to ensure continuous improvement over time. Our expectations for our suppliers in terms of ethical, social, labour, results show significant improvements in areas of focus and this health and safety, and environmental behaviours. Through our approach will continue in years to come. membership in the Joint Audit Cooperation (JAC), we share audit findings with a group of twelve other global telecom companies, allowing us to manage sustainability among our Environmental responsibility suppliers. • Energy Use and Climate Change: Annually, we measure and disclose details on our energy use and greenhouse gas (GHG) See our annual Corporate Social Responsibility report on our emissions across our buildings and retail stores, cell transmission website (about.rogers.com/responsibility) for more information sites, power supply stations, data centres, fleet, employee travel about our social and environmental performance. and commuting, and the operations of the Toronto Blue Jays and . We continue to invest in programs that INCOME TAX AND OTHER GOVERNMENT reduce energy and associated GHG emissions, including LED lighting retrofits, cooling optimization strategies across our PAYMENTS headends, and decommissioning equipment for better energy We proactively manage our tax affairs to enhance our business performance and space utilization. To drive continuous decisions and optimize after-tax free cash flow available for improvement in our performance, we also have targets to reduce investment in our business and shareholder returns. We have our GHG emissions and energy use by 2025 based on 2011 comprehensive policies and procedures to ensure we are levels. compliant with all tax laws and reporting requirements, including • Waste Reduction: Reducing the amount of waste we produce is filing and making all income and sales tax returns and payments on another important way in which we manage our environmental a timely basis. As a part of this process, we pursue open and footprint. To reduce and responsibly manage the waste we cooperative relationships with revenue authorities to minimize audit produce, we look for opportunities to avoid waste generation, effort and reduce tax uncertainty. We also engage with run programs to recycle and reuse materials, and work to government policy makers on taxation matters that affect Rogers increase employees’ recycling behaviours through our “Get Up anditsshareholders,employees,customers,andother and Get Green” program. stakeholders.

Community investment INCOME TAX PAYMENTS • Community Giving: In 2019, we provided over $60 million in cash Our total income tax expense of $712 million in 2019 is close to the and in-kind community investments to support various expense computed on our accounting income at the statutory rate organizations and causes. We awarded 365 Ted Rogers of 26.7%. Cash income tax payments totaled $400 million in 2019. Scholarships and 116 Ted Rogers Community Grants to help Cash income tax payments differ from the income tax expense some of the brightest young leaders across the country succeed in shown on the financial statements for various reasons, including the their educational aspirations. We also held our second annual Give required timing of payments. The primary reason our cash income Together Volunteer Days in June, volunteering 20,000 hours at tax is lower than our income tax expense is a result of the significant over 80 volunteer events coast-to-coast, and raised $2.1 million capital investment we continue to make in our wireless and through our annual Give Together giving campaign. broadband telecommunications networks throughout Canada. • Digital Inclusion: Digital inclusion is a priority for us and it is one Similar to tax systems throughout the world, Canadian tax laws of the best ways in which we can contribute to society. Our permit investments in such productivity-enhancing assets to be Connected for Success program provides low-cost broadband deducted for tax purposes more quickly than they are depreciated Internet to rent-subsidized tenants within partnered non-profit for financial statement purposes.

64 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 65 | Total taxes and other payments 014, 2015, and 2019, ROGERS COMMUNICATIONS INC. Property and for various events to maintain business taxes ese risks. Business Continuity is a ess Continuity function oversees 1 2019 ANNUAL REPORT Regulatory and spectrum fees id for the acquisition of spectrum licences in 2 taxes Payroll ENTERPRISE RISK MANAGEMENT Our Enterprise Risk Management (ERM)of program uses Defence” the framework “3 to Lines communicate risks. identify, Our assess, business units manage, andExecutive monitor, departments, Leadership led and by Team, the areaccountable the for first managing line oridentify of accepting and defence the assess and risks.minimize key these are Together, risks, risks, they define and enhanceobjectives. controls our and ability to action meet plans our business to ERM is theidentify the second key line risksobjectives, in of our meeting risk defence. our appetite,unit corporate ERM and and and emerging helps business risks.provide department unit management At governance the level, and business associated ERM advice controls to works in mitigate managingfunction th with within the management ERM key whichkey to risks also risks. and assists Specifically, theincident the business management and in Busin planning mitigating customer service and operateerror our or human-caused network threats. in Such the threatsequipment include event cyberattacks failures of or that human outages; could cause supply variousepidemics; degrees pandemics; chain of political network locations; instability disruptions; and, in information security certain and naturaldata privacy international breaches, loss including or disaster theftmonitor of the threats; data. adequacy Lastly, and effectiveness ERMto of an works acceptable controls with level. to Internal reduce Audit risks to Annually, ERMassessment carries includes reviewing risk outbenchmarks and and audit a reports interviewing andunit senior strategic accountability. industry management Using an risk with aggregatemanagement approach, business ERM identifies assessment. with senior theobjectives. The key ERM risks reports toassessment achieving to the the our results ExecutiveCommittee, corporate Leadership of and Team, the Board. the the Audit annual and strategic Risk ERM risk also facilitatesstatement management’s fraud risk completionfraud assessment of or to misstatement the ensure inand financial our there to financial is statements assessoperating no and effectively. disclosures potential whether controls are adequately designed and • property and business taxes; • unrecoverable sales taxes• and custom duties; broadcast, and spectrum, and other regulatory fees. s taxes on our products and services and $618 million in employee sales taxes Unrecoverable taxes Income e $3.3 billion, $24 million, and $1.7 billion we pa unauthorized use, to prevent, riate risk assessment processes ing the key risks we face in our implementation of riskcontrol these policies exposures, andand including environmental; actions cybersecurity, to data monitor privacy, and existing major systems; significant deficiencies that may be identified; and by the Audit and Risk Committee or directed by the Board. deter, and detectfinancial records; fraud, and to ensure the accuracy of the safeguard assets from loss and approximately 25,300 employees; Includes an allocation of $252 million relating to th respectively. • the processes for identifying,• assessing, and our managing risks; exposure to major risks and trends and• management’s the implementation of new• major our business systems continuity and• disaster and recovery any plans; special changes audit to steps adopted due• to material other weaknesses risk management or matters from time to time as determined to manage thesemanagement duties to risks. the Audit It and Risk Committee. delegatesThe certain Audit riskmanagement oversight and and and the Risk Boardour compliance and with Committee legal assists and the regulatory discusses requirements. Board inThe risk Audit overseeing and Risk policies Committee also• reviews: with the adequacy of the internal controls that have been adopted to RISK GOVERNANCE The Boardoversees has management overall in identify responsibility for risk governance and business and implementing approp 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 order Rogers return to The generate will to earnings knowingly and encourageus maximize take innovation as that certain a advance value customer-centric risks marketand to in leader. To trust, the 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, We also collected on behalf of the government $1,957 million in sale 1 (In millions of dollars) payroll taxes. OTHER GOVERNMENT PAYMENTS In addition tocontribute significantly paying to income Canadiansfederal, provincial, by tax and paying municipal on governments, taxes including: • the and fees various profits taxes to on we the salaries earn, and wages we we pay (payroll taxes) to As outlined in the table below, the total cost to Rogers of these payments in 2019 was $1,127 million. Total payments 400 9 136 532 50 1,127 MANAGEMENT’S DISCUSSION AND ANALYSIS

Internal Audit is the third line of defence. Internal Audit evaluates INFORMATION SECURITY RISK the design and operational effectiveness of the governance program, internal controls, and risk management. Risks, controls, Our industry is vulnerable to cyber risks that are growing in both and mitigation plans identified through this process are frequency and complexity. Rogers, along with our suppliers, incorporated into the annual Internal Audit plan. employs systems and network infrastructure that are subject to cyberattacks, which may include theft of assets, unauthorized The Executive Leadership Team and the Audit and Risk Committee access to proprietary or sensitive information, destruction or are responsible for approving our enterprise risk policies. Our corruption of data, or operational disruption. A significant ERM methodology and policies rely on the expertise of our cyberattack against our, or our suppliers’, critical network management and employees to identify risks and opportunities infrastructure and supporting information systems could result in and implement risk mitigation strategies as required. service disruptions, litigation, loss of customers, significant remediation costs, and reputational damage. RISKS AND UNCERTAINTIES AFFECTING OUR Management has committed to an information and cybersecurity BUSINESS program designed to reinforce the importance of remaining a This section describes the principal risks and uncertainties that secure, vigilant, and resilient organization. Our ongoing success could have a material adverse effect on our business and financial depends on protecting our sensitive data, including personal results. Any discussion about risks should be read in conjunction information about our customers and employees. We rely on with “About Forward-Looking Information”. security awareness training, policies, procedures, and IT systems to protect this information. Success also depends on Rogers COMPETITIVE INTENSITY continuing to monitor these risks, leveraging external threat intelligence, internal monitoring, reviewing best practices, and Competitive behaviour and market dynamics are continuously implementing controls as required to mitigate them. We have changing in our fast-paced industry. There is no assurance that our insurance coverage against certain damages related to current or future competitors will not provide services that are cybersecurity breaches, intrusions, and attacks, amongst other superior to ours or at lower prices, adapt more quickly to evolving things. The Audit and Risk Committee is responsible for overseeing industry trends or changing market requirements, enter markets in management’s policies and associated procedures related to which we operate, or introduce competing services. Any of these cybersecurity risks. factors could increase churn or reduce our business market share or revenue. External threats to the network and our business generally are The strategic offering of unlimited wireless plans offers greater constantly changing and there is no assurance we will be able to value to our customers and represents a significant step towards protect the network from all future threats. The impact of such simplifying our products and services. However, depending on the attacks may affect our revenue. response from our competitors and/or current and potential customers, we may still need to extend lower wireless pricing offers TECHNOLOGY to attract new customers and retain existing subscribers. As wireless Our network plans assume the availability of new technology for penetration of the population deepens, new wireless customers both wireless and wireline networks. While we work with industry may generate lower average monthly revenue, which could slow standards bodies and our vendors to ensure timely delivery of new revenue growth. technology, there are no assurances these technologies will be Global technology giants continue to ramp up content spending available as and when required. into new markets such as sports media, resulting in increased competition for our Media and Cable business segments. This may Several technologies have affected the way our services are result in an increase in subscriber churn as customers now have delivered, including: additional choices of supplementary sources of media content. • broadband; • IP-based voice, data, and video delivery services; Wireless could face increased competition with changes to foreign • increased use of optical fibre technologies to businesses and ownership rules and control of wireless licences. Foreign residences; telecommunication companies could enter the Canadian market • broadband wireless access and wireless services using a radio by acquiring wireless licences or a holder of wireless licences. If frequency spectrum to which we may have limited or no access; companies with significantly greater capital resources enter the and Canadian market, it could increase the intensity of competition and • applications and services using cloud-based technology, reduce our wireless market share. ISED Canada’s policy regarding independent of carrier or physical connectivity. the transfer of spectrum licences, combined with 2012 legislation that allows foreign ownership of wireless providers with less than These technologies may also lead to significantly different cost 10% market share, could make it harder for incumbent wireless structures for users and therefore affect the long-term viability of carriers to acquire additional spectrum. See “Foreign Ownership some of our current technologies. Some of these technologies and Control” for more information. have allowed competitors to enter our markets with similar products or services at lower costs. These competitors may also be In addition, the CRTC Broadcasting Distribution Regulations do not larger, have greater access to financial resources, and have fewer allow cable operators to obtain exclusive contracts in buildings regulatory restrictions than Rogers. where it is technically feasible to install two or more transmission systems.

66 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 67 | . Changes arising ROGERS COMMUNICATIONS INC. rdability, consumer interests, Order Issuing a Direction to the CRTC on 2019 ANNUAL REPORT Review of mobile wireless services came into effect after review and revision. It requires the from the review mayOur Industry” adversely for more affect information. Rogers. See “Regulation In DIRECTION TO THE CRTC ON TELECOMMUNICATIONS AND CRTC REVIEW OF MOBILE WIRELESSOn SERVICES June 17, 2019,Implementing the the Canadian Telecommunications Policyto Objectives Promote Competition,Innovation Affordability, ConsumerCRTC Interests to consider and and competition, affo innovationdemonstrate in to Canadians in itsThe those final decisions telecommunications Order that it willstate decisions has apply of done to and so. the theFebruary five-year mobile to 28, review wireless toCRTC 2019 market 2019-57, examine the initiated through by Telecom the Notice CRTC on of Consultation 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. FEDERAL GOVERNMENT MINISTERIAL MANDATE LETTERS Implementation of theScience objective and ininstruments, the Industry’s including Minister the mandate forPolicy Directive, Innovation, advancement to reduce letter the of averageCanada cost to the of by cellular phone 2019 25 use billsInternet in Telecom per all plan cent,companies pricing. could available to achieve negatively The thisnetwork impact objective Minister and operators wireless to is (MVNO) and expandfurther mobile in states to virtual that the workyears, if market. the this with The Minister priceCRTC telecom mandate can target mandate expand letter is on MVNO notthese affordable achieved qualifying areas, within pricing. rules ornewly two and Any elected other government, the adverse could regulatory have a decisionour material, financial burdens adverse results in effect and implemented on future investments. by the The 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 instances, replacing traditional chnology for wireless Internet ip advertising aired on television result,wehavenoticedanincrease CHANGES IN GOVERNMENT REGULATIONS Substantially allISED of Canada ourdecisions and/or business could theoperations. activities See adversely CRTC. “Regulation In are Our affect Any Industry” for more regulated regulatory our information. Regulatory changes by changes consolidated or decisions or adversely results made by impact of 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 not fines. be Our REGULATORY RISKS Continued deployments of fibre networks byto competitors may an lead increaseservices. in This the could result reachwireline in and an stability increase business in of churnIndicators” their for pertaining more segment to wireline-related information. our services.Improvements See in the quality “Keycoupled of with streaming increasing Performance 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 faceThe increased use ofadvertising revenue PVRs as viewers can has sk networks. affected The our continuedbased ability emergence satellite to and and generateFM radio growth digital television audience listening of radio habitsresults and subscriber- products have of a negative could our effectaway radio on affect the from stations. AM traditional Certainvideo broadcast and audiences and platforms audio are content to streaming also becomes the available. migrating Internet as more MANAGEMENT’S DISCUSSION AND ANALYSIS

THE WIRELESS CODE everything in between. We understand that every time a customer The CRTC’s decision to implement its Wireless Code, among other uses one of our services, such as making a call on their wireless things, effectively required Canadian wireless carriers to move away device, browsing the Internet or watching their favourite show using from offering three-year service contracts and instead offer two-year their Internet or television services, or listening to one of our radio contracts. This affects our customer acquisition and retention costs stations, their experience affects all future interactions with the and subscriber churn. The code was applied to all contracts Rogers brand. If our products do not deliver the usage experience (excluding enterprise plans) entered into or renewed after our customers expect from us, and if we do not have clear, simple, December 2, 2013 and applied to contracts (excluding enterprise and fair interactions with our customers, it could cause confusion plans) as of June 3, 2015, no matter when they were originally and frustrate our customers. This could result in the potential for entered. See “Regulation In Our Industry” for more information. lost sales opportunities and increased churn, both of which could have negative effects on our reputation, results of operations, and Our Wireless business could be adversely affected if laws, regulation, financial condition. or customer behaviour make it difficult for us to apply term commitments or early cancellation fees to customers or receive the RESULTS PERFORMANCE service revenue we anticipate from the term commitments. Industry fundamentals are evolving and to remain competitive, we RADIO FREQUENCY EMISSIONS have made strategic decisions to support long-term customer From time to time, media and other reports have highlighted retention and loyalty. Some of these decisions have had a short- alleged links between radio frequency emissions from wireless term impact on financial results. With this evolution, we are devices and various health concerns, including cancer, and committed to providing education and support to our external interference with various medical devices, including hearing aids investor community to ensure they understand the potential and pacemakers. This may discourage the use of wireless devices impacts throughout the transition and support the changes or expose us to potential litigation even though there are no alongside us. If these changes are not fully understood by our definitive reports or studies stating that these health issues are external investor community, it could have negative effects on our directly attributable to radio frequency emissions. Future regulatory reputation. actions may result in more restrictive standards on radio frequency emissions from low-powered devices like wireless devices. We TALENT ACQUISITION AND RETENTION cannot predict the nature or extent of any restrictions. A significant transformation is underway in our industry, and as competition for talent increases, our success is highly dependent OBTAINING ACCESS TO SUPPORT STRUCTURES AND on our ability to attract and retain a high-performing and engaged MUNICIPAL RIGHTS OF WAY workforce, including in key growth areas, such as the network, IT, To build and support the rollout of 5G, and to continue upgrading and digital fields. Our focus must be on providing career and our cable network, we must continue to have access to support development opportunities, competitive compensation and structures and municipal rights of way to install equipment on benefits, and a great employee experience. Failure to maintain and municipal poles and buildings, and on First Nations land. We can achieve this focus, and changes to our workforce as a result of apply to the CRTC to obtain a right of access under the factors such as turnover and restructuring, failing to develop Telecommunications Act (Canada) (Telecommunications Act) in internal succession, cost reduction initiatives, ongoing union areas where we cannot secure access to municipal rights of way. negotiations, or other events, could have an adverse effect on the Failure to obtain access could increase our costs and adversely customer experience, and as a result our revenue and profitability. affect our business. The Supreme Court of Canada ruled in 2003, however, that the IMPACT OF NETWORK FAILURES ON REVENUE AND CRTC does not have the jurisdiction to establish the terms and CUSTOMER SERVICE conditions of accessing the poles of hydroelectric companies. As a result, we normally obtain access under terms established by the Customers have high expectations of reliable and consistent provincial utility boards. performance of our networks. Failure to maintain high service levels and to effectively manage network traffic could have an impact on COPYRIGHT TARIFFS the customer experience, potentially resulting in an increase in Any increase in copyright tariff fees negatively affects our operating customer churn. Due to the increased demand and traffic on our results. Internet and wireless networks, there could be capacity and congestion pressures. Such pressures may cause issues with our networks in terms of speed and connectivity. If our networks or key CUSTOMER EXPERIENCE network components fail, it could, in some circumstances, result in Creating best-in-class customer experiences is an important a loss of service for our customers for certain periods and have an strategic priority for us, as we understand that great customer adverse effect on our results and our financial position. We also rely experience is key to our long-term success. Our customers’ loyalty on business partners to carry some traffic for certain customers. If and their likelihood to recommend Rogers are both dependent one of these carriers has a service failure, it might also cause a upon our ability to provide a service experience that meets or service interruption for certain customers that would last until we exceeds their expectations. We handle many customer interactions could reroute the traffic to another carrier. This could have an annually, ranging from potential new customers making in-store adverse effect on our ability to service existing customers and purchases to existing customers calling for technical support and acquire new subscribers.

68 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 69 | ROGERS COMMUNICATIONS INC. ws and regulations. Situations r Cable revenue, and unfavourable 2019 ANNUAL REPORT LEGALANDETHICALCOMPLIANCE We 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, including, to, anti-bribery la UNAUTHORIZED ACCESS TO DIGITAL BOXES ORMODEMS INTERNET With apre-loaded significant set-top boxes numberproducts, customer and churn of rates illegally coulduse streaming increase. Canadians To encryption our address this, purchasing television vendors technology we to protect developed illegal our cableto and signals from supported unauthorized control access and packages. by access We our alsoprevent to use unauthorized access encryption to our programming and Internet service. security basedThereisnoassurancethatwewillbeabletoeffectivelyprevent technologies to onunauthorized decoding subscription of television signalsfuture. or Internet If access we in are the unabletechnology, to and control cable subscriptions accesspremium to with our video-on-demand digital encryption programming, andthis could including result subscription in a decline video-on-demand, in our Cable revenue. 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 The Connected Homecertain roadmap vendors. Should and the products productsbusiness not and rely, operate financial as results in intended, couldresult our be part, in adversely affected. subscriber on This losses, may customer lowe satisfaction. MONITORING AND CONTROLLING FRAUDULENT ACTIVITIES As a largerange company with of tensprevention desirable of requires thousands and of aexposure employees valuable identification disciplined and and products program a assessment,reporting. prevention, covering and detection, governance, and services, Thismisappropriation fraud of assets programFraud by events employees can and/or result mustaddition in external to financial parties. loss considermodems, unauthorized and a brand access sample degradation. corruptioninclude of In to potential (i) digital examples inappropriate and (ii) boxes of use fraud and fraudulent of relevantestablished Internet to our using account us cable afinancial or takeovers false statements wireless identity, (such by(iv) (iii) networks, intentional employees copyright as manipulation and/orundermine theft the of “SIM exclusivity external of and our content parties, swapping”) offerings. other and forms of unauthorized use that revenue comes from thestrength sale of of the economy. advertising and is affected by the ngements, third-party service tional damage, and damage to the OTHER BUSINESS RISKS 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 higher of churn our through products broadcasting and and digital bad reduced and services, We have outsourcingthird and parties managedbusiness service to operations arrangements provide to with certain our certain facilities employees or essential and property managementsupport, customers, components functions, certain including installation contact and centre of serviceand technicians, IT our certain functions, network and invoice printing.could Interruptions in adversely these affect services ourcourse ability to of serviceproviders our must fulfilling customers. ensure In ourand service the information safeguarded. is arra appropriately Failureincreased protected regulatory to risk, reputa do so may affect Rogers through RELIANCE ON THIRD-PARTY SERVICE PROVIDERS customer experience. DEPENDENCE ON INFORMATION TECHNOLOGY SYSTEMS Our businesses depend on ITwe systems are for day-to-day unable operations.accommodate If to customer growth operate and new ourif products and systems, our services, or systems make experience enhancementsadverse disruptions to effect or on failures,customers, it our manage could subscriber ability churn, have to produce an subscriber accurate acquire and timely new invoices, subscribers,operating service generate expenses. This revenueresults could and financial have growth, position. an and adverseMost impact manage on of our ourinfrastructure and employees IT and systemsfacilities. are If critical concentrated we elements in cannotresult various access of of physical one our or aoperations may more network be natural of significantly affected these or todifficult the facilities for human-made extent us as that to it a disaster recover mayor without be negative or a impact significant to our interruption otherwise, revenue in or service our customer base. We work to protectof our networks natural and disasters our andwind service major storms, from forest weather the fires, events impact flooding,it earthquakes, such or is as landslides necessary where and ice feasible storms, future to do event so. will There not arewould cause no not assurances service that affect outages a our andalso results. that affect our Service such operations disruptions outages if nota or quickly outages resolved, risk potentially could causing ofresponse billing strategies delaysoutages and or in errors. protocols the If face inimpact we of on place these our fail revenue typesfrom to to and of our have events, handle these customer they appropriate experience. service remediation could disasters Recovering costs, which have are an could difficult to estimate. require significant resources and MANAGEMENT’S DISCUSSION AND ANALYSIS

where individuals or others, whether inadvertently or intentionally, forecast the value of consumer demand or risk of competing do not adhere to our policies, applicable laws and regulations, or technologies resulting in higher valuations for acquisitions or missed contractual obligations may expose us to litigation and the opportunities. possibility of damages, sanctions, and fines, or of being disqualified Services, technologies, key personnel, or businesses of companies from bidding on contracts. This may have an adverse effect on our we acquire may not be effectively integrated into our business or results, financial position, reputation, and brand. service offerings, or our alliances may not be successful. We also may not be able to successfully complete certain divestitures on DEPENDENCE ON CERTAIN KEY INFRASTRUCTURE AND satisfactory terms, if at all. WIRELESS DEVICE VENDORS Our wireless business has relationships with a relatively small ACCESS TO PROGRAMMING RIGHTS number of essential network infrastructure and device vendors. We Competition is increasing for content programming rights from do not have operational or financial control over them and only both traditional linear television broadcasters and online have limited influence on how they conduct their business with us. competitors. Online providers are moving towards self-made, self- Wireless device vendor market share has recently shifted towards hosted exclusive content, and may compete for rights more fewer top suppliers, which will augment this dependency. aggressively than expected, such that traditional broadcasters may If one of our network infrastructure suppliers fails, it could delay not gain access to desirable programming. Additionally, if adding network capacity or new capabilities and services. Device broadcasters and distributors sign longer-term agreements to and network infrastructure suppliers can extend delivery times, raise secure programming rights, this could affect the availability of prices, and limit supply due to their own shortages and business desirable programming rights and result in lower revenue due to a requirements, among other things. If these suppliers do not lack of access to these rights. develop devices that satisfy customer demands, nor deliver products and services on a timely basis, it could have a material INCREASING PROGRAMMING COSTS adverse effect on our business, financial condition, and results of Acquiring programming is the single most significant purchasing operations. Any interruption in the supply of equipment for our commitment in our Cable television business and is a material cost networks could also affect the quality of our service or impede for Media television properties. Increased competition for network development and expansion. programming rights to content and popular properties from both traditional linear television broadcasters and online competitors REVENUE EXPECTATIONS FROM NEW AND ADVANCED continue to increase the cost of programming rights. Higher SERVICES programming costs could adversely affect the operating results of With the wireless industry working toward implementing our business if we are unable to recover programming investments 5G networks and the wireline industry working towards future through advertising revenue and subscription fee increases that DOCSIS enhancements, we expect that a substantial portion of our reflect the market. future revenue growth may come from new and advanced services, and we continue to invest significant capital resources to develop DECLINE OF SUBSCRIBERS IN CANADA our networks so we can offer these services. It is possible, however, The number of pay television households in Canada has declined. that there may not be sufficient consumer demand, or that we may Other video offerings available to consumers (for example, not anticipate or satisfy demand for certain products and services direct-to-consumer subscription and free services), as well as piracy, orbeabletoofferormarketthesenewproductsandservices have contributed to this trend. If this decline continues, it could successfully to subscribers. If we do not attract subscribers to new have a material adverse effect on our results of operations. products and services profitably or keep pace with changing consumer preferences, we could experience slower revenue MIGRATING FROM CONVENTIONAL TO DIGITAL MEDIA growth and increased churn. This could have a material adverse Our Media business operates in many industries that can be effect on our business, results of operations, and financial affected by customers migrating from conventional to digital condition. media, which is driving shifts in the quality and accessibility of data and mobile alternatives to conventional media. We have been COMPLEXITY OF OUR BUSINESS shifting our focus towards the digital market. Increasing Our businesses, technologies, processes, and systems are competition for advertising revenue from digital platforms, such as operationally complex and increasingly interconnected. If we do search engines, social networks, and digital content alternatives, not execute properly, or if errors or disasters affect them, customers has resulted in advertising dollars migrating from conventional may have a negative experience, resulting in increased churn and television broadcasters to digital platforms. The impact is greater lower revenue. on conventional over-the-air broadcast networks, such as Citytv and OMNI, which do not have a second revenue stream from ACQUISITIONS, DIVESTITURES, OR INVESTMENTS subscription revenue. Our Media results could be adversely Acquiring complementary businesses and technologies, affected if we are unsuccessful in shifting advertising dollars from developing strategic alliances, and divesting portions of our conventional to digital platforms. business are often required to optimally execute our business strategy. Some areas of our operations (and adjacent businesses) OUR MARKET POSITION IN RADIO AND TELEVISION are subject to rapidly evolving technologies and consumer usage Advertising dollars typically migrate to media properties that are and demand trends. It is possible that we may not effectively leaders in their respective markets and categories, particularly when

70 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 71 | ROGERS COMMUNICATIONS INC. ignificant judgment is required s of operations, and financial , which could either reduce the ssment of interest and penalties. 2019 ANNUAL REPORT While we believe we haveof paid tax, and provided our for business adequate isin amounts complex interpreting and how s tax legislation and regulations apply to us. INVENTORY OBSOLESCENCE Our inventories balancemobile mainly data consists devices, which oflifecycles generally wireless due have relatively to devices short frequenteffectively and product manage new inventory device levels introductions. basedmay on If increase product the we demand, risk this of cannot inventory obsolescence. HIGHER DEVICE COSTS Our wirelesssubstantially on subsidizing business the cost ofother model subscriber devices, Canadian similar to has wirelessdevices, we carriers. moved historically to Withmany a US device been carriers. the financing This model model increasing attracts based pay instead, customers similar for costs and to allows their them of device to over with a no 24-month upfront period.devicesupfront.Ifweareunabletorecoverthecostsofthedevices initial We costs also for commit someover to the devices paying term suppliers of for theeffect customer contract, on this could have our an adverse business, result 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 foravailability, capital or an increase capitalization the cost funding of capital. 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 condition. long-term financing andagencies the lower termsdowngrade the below of credit investment-grade, it thecost ratings of could financing financing. adversely on and access affect to If our our liquidity and rating capital. debt, particularly a c, financial, competitive, and ssociations and agencies. If our terest, principal amounts, and se substantially, our advertising laws and regulations could lead ngly stringent federal, provincial, ncerning such releases, and the conditions; our business and industry; competitors who may have morefinancial leverage; financial or resources and/or less working capital and capitalcorporate purposes. expenditures and for other general dividends, which reducespurposes, including other funds financial operations; available for other business by operating activities to pay in CREDIT RATINGS Credit ratings provide an independenta measure securities of credit issuer quality and of can affect our ability to obtain short- and other factors, many of whichmay are not beyond generate our sufficient control.may Our cash not business flow be available in to the provideobligations sufficient future or net to and proceeds successfully financings execute to our meet business our strategy. Our ability to satisfy our financialoperating obligations performance depends on and our economi future • making us more vulnerable to• adverse economic limiting our and flexibility industry in planning for, and reacting• to, changes putting in us at a• competitive restricting disadvantage our ability compared to to obtain additional financing to fund Our capital commitmentsimportant and consequences, including: financing obligations• could requiring have us to dedicate a substantial portion of cash provided FINANCIAL RISKS CAPITAL COMMITMENTS, LIQUIDITY, DEBT, AND INTEREST PAYMENTS radio and television ratingssales decrea volumes and theadversely affected. rates that we charge advertisers could be CLIMATE CHANGE Climate change isbusinesses, an including increasingly the important telecommunicationsclimate business. consideration change Failure in mitigation of and all business adaptation through efforts potential could disruption affectchains, of our our damage operations or tocommunities we supply serve. our infrastructure, andClimate change the and the effectsthrough environment evolving on are drawing public the more interest.are attention subject Many to evolving aspects and of increasi and our local operations environmental, health,Such and laws safety and lawsmatters regulations and such impose regulations. as requirementscorrective the with and release respect remedial of to action substances co into the environment, advertising budgets are tight.may Our radio not andAdvertisers television base properties continue a substantial part performingratings of data their generated purchasing by how decisions industry a on they currently perform. proper handling and managementconsiderations of and more substances. stringent These evolving to increased costs for compliance andto rising costs of recognize utilities. Failure regulatory and scrutiny, or damage adequately to our reputation respond or brand. could result in fines, MANAGEMENT’S DISCUSSION AND ANALYSIS

LITIGATION RISKS In 2009, counsel for the plaintiffs began a second proceeding under the Class Actions Act () asserting the same WHOLESALE INTERNET COSTING AND PRICING claims as the original proceeding. If successful, this second class On August 15, 2019, in Telecom Order CRTC 2019-288, action would be an “opt-out” class proceeding. This second Follow-up to Telecom Orders 2016-396 and 2016-448 – Final proceeding was ordered conditionally stayed on the basis that it rates for aggregated wholesale high-speed access services was an abuse of process. (Order), the Canadian Radio-television and Telecommunications Commission (CRTC) set final rates for facilities-based carriers’ At the time the Saskatchewan class action was commenced, wholesale high-speed access services, including Rogers’ third- corresponding claims were filed in multiple jurisdictions across party Internet access (TPIA) service. The Order set final rates Canada. The claims in all provinces other than Saskatchewan have for Rogers that are significantly lower than the interim rates now been dismissed or discontinued. We have not recognized a that were previously billed and it further determined that liability for this contingency. these final rates will apply retroactively to March 31, 2016. 911 FEE We do not believe the final rates set by the CRTC are just and In June 2008, a class action was launched in Saskatchewan against reasonable as required by the Telecommunications Act as we providers of wireless communications services in Canada. It involves believe they are below cost. On September 13, 2019, Rogers, allegations of breach of contract, misrepresentation, and false in conjunction with the other large Canadian cable companies advertising, among other things, in relation to the 911 fee that had (Cable Carriers), filed a motion for Leave to Appeal pursuant to been charged by us and the other wireless telecommunication Section 64(1) of the Telecommunications Act with the Federal providers in Canada. The plaintiffs are seeking unspecified damages Court of Appeal (Court) and an associated motion for an and restitution. The plaintiffs intend to seek an order certifying the interlocutory Stay of the CRTC Order. On September 27, 2019, proceeding as a national class action in Saskatchewan. We have not the Court granted an Interim Stay suspending the Order until recognized a liability for this contingency. the Court rules on the Cable Carriers’ motion for an interlocutory Stay of the CRTC’s Order pending the Court’s CELLULAR DEVICES determination of the Cable Carriers’ motion for Leave to In July 2013, a class action was launched in British Columbia against Appeal. On November 22, 2019, the Court granted Leave to providers of wireless communications in Canada and Appeal and an interlocutory Stay of the CRTC Order. It is manufacturers of wireless devices. The class action relates to the anticipated that the appeal will be heard in mid-2020 with a alleged adverse health effects incurred by long-term users of decision thereafter. cellular devices. The plaintiffs were seeking unspecified damages Due to the Court’s granting of the interlocutory Stay and Leave to and punitive damages, effectively equal to the reimbursement of Appeal, and the significant uncertainty surrounding both the the portion of revenue the defendants have received that can outcome and the amount, if any, we could ultimately have to repay reasonably be attributed to the sale of cellular phones in Canada. to the resellers, we have not recorded a liability for this contingency In March 2019, the plaintiffs discontinued the class action without at this time. The CRTC’s order as drafted would have resulted in a any payment by Rogers. refund of amounts previously billed to the resellers of approximately $150 million, representing the impact on a OTHER CLAIMS retroactive basis from March 31, 2016 to December 31, 2019. We There are certain other claims and potential claims against us. We estimate the ongoing impact would be approximately $11 million do not expect any of these, individually or in the aggregate, to have per quarter. a material adverse effect on our financial results.

SYSTEM ACCESS FEE – SASKATCHEWAN OUTCOME OF PROCEEDINGS In 2004, a class action was commenced against providers of The outcome of all the proceedings and claims against us, wireless communications in Canada under the Class Actions Act including the matters described above, is subject to future (Saskatchewan). The class action relates to the resolution that includes the uncertainties of litigation. It is not wireless carriers charge to some of their customers. The plaintiffs possible for us to predict the result or magnitude of the claims due are seeking unspecified damages and punitive damages, which to the various factors and uncertainties involved in the legal would effectively be a reimbursement of all system access fees process. Based on information currently known to us, we believe it collected. is not probable that the ultimate resolution of any of these In 2007, the Saskatchewan Court granted the plaintiffs’ application proceedings and claims, individually or in total, will have a material to have the proceeding certified as a national, “opt-in” class action adverse effect on our business, financial results, or financial where affected customers outside Saskatchewan must take specific condition. If it becomes probable that we will be held liable for steps to participate in the proceeding. In 2008, our motion to stay claims against us, we will recognize a provision during the period in the proceeding based on the arbitration clause in our wireless which the change in probability occurs, which could be material to service agreements was granted. The Saskatchewan Court directed our Consolidated Statements of Income or Consolidated that its order, in respect of the certification of the action, would Statements of Financial Position. exclude customers who are bound by an arbitration clause from the class of plaintiffs.

72 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 73 | 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, 2019 ANNUAL REPORT CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES There have been no changes inreasonably 2019 that likely materially affected, or tofinancial are reporting. materially affect, our internal controls over 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 2019, 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, 2019 2019. 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 have been Our internal control systemthe is Board designed to reasonable give assurance management t and y-controlled company. Voting MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management isadequate responsible internal controls over for financial reporting. establishing and maintaining DISCLOSURE CONTROLS AND PROCEDURES We conducted an evaluation ofoperation the effectiveness of of the designDecember and our 31, disclosureparticipation 2019, 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 CONTROLS AND PROCEDURES control of RogersControl Trust Communications (the Trust) Inc. forthe the is benefit Rogers of family. held successive The generationsof beneficiaries by of of individuals the the who Trust Rogers whom are are a members are small of group alsocompany the subsidiary directors Rogers of a of family, Canadian chartered several the bank. of Board.As at The December 31, trustee 2019,controlled private by is the Rogers Trust the family owned holding approximatelyClass trust 98% companies A of our Shares outstanding (2018 –Non-Voting Shares 92%) (2018 and – 10%), approximately or 10%total in total of shares approximately outstanding our 29% (2018 Class of the – B righttovoteinmostcircumstances.Asaresult,theTrustisableto 27%). Only Class Aelect Shares carry all the membersmatters of submitted to the a shareholder Board vote. and to control the vote on most OWNERSHIP RISK CONTROLLING SHAREHOLDER Rogers is a family-founded, famil 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 (Canada) (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 the copyright tariff royalties that Canadian broadcasting consolidated results of 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

74 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 75 | . the CRTC ROGERS COMMUNICATIONS INC. Broadcasting Act (Canada) Final 2019 revenue-percent and released on December 4, 2019. The 2019 ANNUAL REPORT GOVERNMENT OF CANADA REVIEW OF TELECOMMUNICATIONS AND BROADCASTING ACTS On June 5,Heritage 2018, Minister ISEDTelecommunications Act Canada (Canada) Joly Minister Bains announced and a Canadian joint review of the CANADA’S ANTI-SPAM LEGISLATION Canada’s anti-spamDecember 15, 2010 legislation and cameof into force was on such Julycomputer 1, legislation passed 2014. Sections related programsJanuary into 15, to 2015. or law Aplace the private under the right unsolicited legislation on of software effectivebelieve action July we installation are that 1, in 2017 was compliance came of was with to deferred. this come legislation. We into intoMANDATORY NOTIFICATION OF force PRIVACY BREACHES On June on 18, 2015, Billlaw, S-4 – and the DigitalInformation Privacy made Act was a Protection passed into amendment number that and introduced ofcame mandatory Electronic into amendments breach force on notification Documents November toimpacted 1, rules 2018. individuals Act. the Businesses must and nowprivacy Personal the notify The breach federal where it Privacy isa Commissioner reasonable real to risk of believe of a the significantcompleted breach harm creates to as the individual. soon Notificationoccurred. must as be Businesses feasible mustprovide after these also it records keep to isThe 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 per could violation. result in fines up to 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, the following four years to reachthe an annual incremental cap of increases $200review in million, with of years the four fundefficiently and in and the five is 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 be available not only inas Canadian many homes major and transportation businesses, roads but as on possible in Canada. Internet access service subsc 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 are consideredmeaning basic of subsection 46.5(1) of telecommunications the• Telecommunications Act: services fixed and mobile within wireless• broadband Internet the fixed access and services; mobile and 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 themaximum in 2018-377, first 2019. funding yearimplementation. level This level of will of increase payments by $100 $25 into million annually million over the in fund, the with a first year of 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 CRTC set asurban its areas universal as service wellvoice objective as services that in and Canadians, ruralfixed in broadband and and Internet remote mobile areas, accessachievement have wireless services, of access networks. on this to Tocriteria, both objective, including: measure the the CRTC• has successful 90% established several of Canadian residential and business fixed broadband • 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 digital the basic telecommunications CRTC’s servicesCRTC released to role Telecom all Regulatory in Canadians, Policy the CRTC ensuring 2016-496, the availability of telecommunications services – Theeconomy path forward for Canada’s digital On June 29, 2012, Billpassed C-38 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 restrictions. in of growingrevenue 10% other their than by market of waybe shares of exempt merger from total in the or restrictions. acquisitions Canadian will continue to telecommunications market 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 with a the to foregoing resident Canadian MANAGEMENT’S DISCUSSION AND ANALYSIS

A seven-person expert panel conducted the review. The review use licences covering the same geographic area for the following attempts to modernize the legislative framework with specific spectrum amounts: instruction that the exercise be guided by the principles of net • any licensee that holds 75 MHz of existing spectrum or more will neutrality. It examines support mechanisms for creation, be eligible to apply for 60 MHz; production, and distribution of Canadian content, with an • any licensee that holds 50 MHz of existing spectrum will be emphasis on exploring how all players (including over-the-top eligible to apply for 50 MHz; and services) can contribute. The review also seeks to address how to • all other licensees will be eligible to apply for 20 MHz. best promote competition and affordability for Internet and mobile Rogers and BCE Inc. currently hold 3500 MHz spectrum licences wireless services. Rogers and others filed their written submissions across the country in Inukshuk, a partnership between the two with the panel on January 11, 2019. An interim report briefly companies. Because Inukshuk currently holds 75 or more MHz of summarizing major themes in the submissions was released in 3500 MHz spectrum in each of the top 10 service areas in Canada June 2019. The final report, entitled Canada’s Communications by population, it will be able to apply to retain 60 MHz in those Future: Time to Act, released on January 29, 2020, made areas. As such, the Decision means that Rogers, in effect, will retain 97 recommendations in regard to modernizing the legislation 30 MHz of 3500 MHz spectrum licences for re-designation to governing Canada’s communications sector and is now in the flexible use licences in each of the top 10 service areas in Canada hands of the government for consideration. by population. WIRELESS ISED Canada will only begin issuing flexible use licences in the 3500 MHz band after the conclusion of the auction process. On 600 MHZ SPECTRUM LICENCE BAND March 5, 2020, ISED Canada released its Policy and Licensing ISED Canada’s 600 MHz wireless spectrum licence auction began Framework for Spectrum in the 3500 MHz Band following the on March 12, 2019, and ended on April 4, 2019. The results were consultation, establishing the rules and timelines for the 3500 MHz publicly released on April 10, 2019. Twelve companies participated spectrum licence auction. The framework set aside up to 50 MHz of in the auction and 104 of 112 licences were awarded to nine of the spectrum available for auction (i.e. after existing holders’ those participants, with a total value of $3.5 billion. We acquired retained spectrum is deducted from the 200 MHz in the band) for 52 licences at a cost of $1.7 billion. We took possession of these carriers other than the three national carriers, Rogers, Bell, and licences in May 2019, after making payment for the licences. Telus. The auction will commence on December 15, 2020. The Decision further announced that ISED Canada will launch a 3500 MHZ SPECTRUM LICENCE BAND future consultation to address potential changes to the spectrum In December 2014, ISED Canada released its policy changes to the utilization policy, band plans, and the technical and policy 3500 MHz spectrum band. Rogers has a 50% interest in the considerations to optimize the use of the 3700-4200 MHz bands in Inukshuk Wireless Partnership (Inukshuk), which holds between support of a future spectrum release currently planned to take 100-175 MHz of 3500 MHz spectrum in most major urban markets place in 2022 to support 5G wireless technologies deployment. in Canada. The 3500 MHz band will be reallocated for mobile services (it is currently only licensed for fixed wireless access in WHOLESALE DOMESTIC WIRELESS ROAMING RATES Canada). The band will eventually be relicensed on a flexible-use TERMS & CONDITIONS AND RATES basis whereby licensees will be permitted to determine the extent On May 5, 2015, the CRTC released Telecom Regulatory Policy to which they will implement fixed and/or mobile services in the 2015-177, Regulatory framework for wholesale mobile wireless band in a given geographic area. services. The CRTC determined it is necessary to regulate the rates On June 6, 2018, ISED Canada released its Consultation on that Rogers and two of its competitors (Bell and Telus) charge other Revisions to the 3500 MHz Band to Accommodate Flexible Use Canadian wireless carriers for domestic GSM-based wholesale and Preliminary Consultation on Changes to the 3800 MHz Band. roaming. Pending its final determination on the proposed tariffs, The 3500 MHz band is viewed as key spectrum to support the CRTC approved, on an interim basis, a maximum rate for each 5G technologies. In its consultation documents, ISED Canada of GSM-based voice, text, and data wholesale roaming provided by proposed two options for claw back of existing spectrum licences. Bell, Rogers, and Telus across their respective networks to other Canadian wireless carriers. These rates were replaced when the Rogers and others filed their comments on the consultation CRTC gave interim approval to the proposed cost-based tariffs filed document on July 12, 2018. Reply comments were filed on by the carriers on December 3, 2015 and made these interim rates August 10, 2018. In its Spectrum Outlook 2018 to 2022, also effective November 23, 2015. The CRTC process to establish final released on June 6, 2018, ISED Canada anticipated that 3500 MHz rates extended into 2018. spectrum would be released for flexible use in late 2020 following an auction in 2020. The CRTC further determined that it is not appropriate to mandate wholesale MVNO access. On June 6, 2019, ISED Canada released its Decision on its Consultation on Revisions to the 3500 MHz Band to Accommodate Finally, the CRTC determined that the regulatory measures Flexible Use and Preliminary Consultation on Changes to the establishedinthedecisionwouldremaininplaceforaminimumof 3800 MHz Band. The Decision determined that ISED Canada will five years, during which time the CRTC will monitor competitive issue flexible use licences in a 200 MHz frequency range from conditions in the mobile wireless market. 3450-3650 MHz. Existing wireless licensees in this range that meet all of their conditions of licence will be eligible to be issued flexible

76 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 77 | Show cause ). The CRTC ROGERS COMMUNICATIONS INC. Regulatory framework for y). Wireless service providers , released in May 2015, the CRTC 2019 ANNUAL REPORT Review of the Wireless Code Final reply submissions were filed on October 29, 2019 broadcasting certificates mustwhere share technically towers feasible, at and commercial rates; antenna and sites, arbitration according to ISED Canada arbitration rules will begin. any agreementISED that Canada will could reviewtransfer that lead the could arise agreement from to as it has though been a made. the licence prospective transfer. wholesale mobile wireless services determined that it would not mandate or require general In July 2019, Rogers introducedwith wireless both device 24- financing agreements andinitiated 36-month Telecom Notice terms. of On Consultationproceeding CRTC August 2019-309, and 30, 2019, callfinancing the for plans, CRTC to comments considerthose – whether device The with financing Wireless plans, termsWireless including Code. Code longer – thanand Device 24 a decision months, isdevice are financing expected arrangements with in compliant terms 2020. greater with than We 24 months. have the since ceased offering TOWER SHARING POLICY In March 2013,Mandatory ISED Roaming Canadaconcluding released and a Revised consultation initiated Antenna Frameworksrules in for for 2012. tower Tower and It site setsof sharing, and the out among tower other the and Site things. site current The sharing• key rules Sharing, are: terms all holders of spectrum• the timeframe licences, for negotiating agreements is radio 60 days, after which licences,In Telecom Regulatory and Policy 2015-177, 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, the CRTCreview released its decision on of theCRTC three-year the 2017-200, determined Wireless that as of Codebusiness December wireless 1, service 2017, customers (Telecom will allcellular have phones individual the and Regulatory and right other small mobile toupon devices have Policy unlocked, their request. free of In charge, provided addition, all unlocked newlydetermined purchased from that devices for must that familyaccount be holder or must, day shared by default, plansoverage forward. be and (multi-line the data one plans), The who roaming the ($50 consents charges and to CRTC $100 beyond data per the month, also may, established respectivel however, caps allow account holdersfamily to or authorize shared other plan usersalso to on consent a made to clear additionalaccount charges. that basis, The regardless in CRTC ofplans all and the individual instances, number lines on of the the account. devices, caps for apply multi-line on a per • licensees must ask for a review within 15 days of entering into , ), .The the CRTC rise from purchase or sale options 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 , to exclude public WiFi networks from the definition of Lower-cost data-only plans for mobile wireless services 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 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 reviews spectrum licence transfers, including and other agreements. Key items to• note are that: ISED Canada will review all spectrum transfer requests, and will On March 22, 2018,Wholesale the CRTC mobile released wireless Telecom Order roaming 2018-99, service tariffs – Final rates 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 “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 approved the plans proposedthat the by 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 mix a 90 of days prepaidLTE prices that networks. and and were Rogers introduced postpaid not data its plans capacities, basis, in March on 2019. and on both the 3G and requiring Rogers, Bell, andonly Telus plans. to file proposed lower-cost data- On December 17,Lower-cost 2018, data-only in plans Telecom for mobile Decision wireless CRTC services, 2018-475, MANAGEMENT’S DISCUSSION AND ANALYSIS

wholesale tariffs for tower and site sharing. At the same time, it • whether the offering is exclusive to certain customers or certain determined that its existing powers and processes are sufficient to content providers; address tower and site sharing disputes related to rates, terms, and • the impact on Internet openness and innovation; and conditions. As a result, carriers may use the arbitration process • whether there is financial compensation involved. established by ISED Canada, or they may request the CRTC to Of these criteria, the degree to which data is treated agnostically intervene in the event that tower and site sharing negotiations fail. will generally carry the most weight. The overriding expectation is that all content and applications will be treated in a neutral manner. POLICY DIRECTION TO THE CRTC ON Zero-rating of account management functions (e.g., monitoring of TELECOMMUNICATIONS Internet data usage or the payment of bills online) will generally be On February 26, 2019, the Minister of Innovation, Science and permitted. Economic Development tabled a Proposed Order Issuing a Direction to the CRTC on Implementing the Canadian WHOLESALE INTERNET COSTING AND PRICING Telecommunications Policy Objectives to Promote Competition, On March 31, 2016, the CRTC released its decision on the review Affordability, Consumer Interests and Innovation. The Direction of costing inputs and the application process for existing wholesale signals the government’s intention to require the CRTC to consider high-speed access services (HAS) that provide for a single competition, affordability, consumer interests, and innovation in its provincial point of interconnection, but which are not available over telecommunications decisions and to demonstrate to Canadians in FTTH access facilities (Telecom Decision CRTC 2016-117, Review of those decisions that it has done so. costing inputs and the application process for wholesale high- speed access). The CRTC determined that wholesale telecom rates On June 17, 2019, the Order Issuing a Direction to the CRTC on paid by competitive telecom providers were no longer appropriate, Implementing the Canadian Telecommunications Policy Objectives and required all wholesale HAS providers to file new cost studies to Promote Competition, Affordability, Consumer Interests and with proposed rates for final approval. The CRTC further Innovation came into effect after review and revision. It requires the determined that all wholesale Internet rates that were currently CRTC to consider competition, affordability, consumer interests, approved were to be made interim as of the date of the decision. and innovation in its telecommunications decisions and to The CRTC will assess the extent to which, if at all, retroactivity will demonstrate to Canadians in those decisions that it has done so. apply when new cost studies are submitted in support of revised wholesale high-speed access service rates. On June 30, 2016, we CRTC REVIEW OF MOBILE WIRELESS SERVICES filed our new cost studies with the CRTC, which detailed our On February 28, 2019, through Telecom Notice of Consultation proposed rates. CRTC 2019-57, Review of mobile wireless services,theCRTC initiated its five-year review to examine the state of the mobile On October 6, 2016, the CRTC issued Telecom Order 2016-396, wireless market and to determine whether further action is required Tariff notice applications concerning aggregated wholesale high- to improve choice and affordability for Canadians. The CRTC is also speed access services – Revised interim rates, significantly reducing seeking comments on its preliminary view that mobile virtual existing interim rates for the capacity charge tariff component of network operators (MVNO) should have mandated access to the wholesale HAS pending approval of final rates. The interim rate networks of the national wireless providers (Rogers, Bell, and Telus) reductions took effect immediately. The CRTC will assess the extent until they are able to establish themselves in the market. Finally, the to which, if at all, retroactivity will apply when wholesale HAS rates CRTCwillbelookingaheadtothefutureofmobilewireless are set on a final basis. services in Canada, and, in particular, at whether regulatory On August 15, 2019, in Telecom Order CRTC 2019-288, Follow-up measures are needed to facilitate the deployment of 5G network to Telecom Orders 2016-396 and 2016-448 – Final rates for infrastructure, such as small-cell sites. Extensive written submissions aggregated wholesale high-speed access services (Order), the were filed in 2019 and a two-week oral hearing began on CRTC set final rates for facilities-based carriers’ wholesale HAS, February 18, 2020. Final written submissions are to be filed on including Rogers’ TPIA service. The Order set final rates for Rogers March 23, 2020 with a decision thereafter. Any adverse decision that are significantly lower than the interim rates that were regarding the items being reviewed in the proceeding could have previously billed and it further determined that these final rates will a material, adverse effect on our financial results and future apply retroactively to March 31, 2016. We do not believe the final investments. rates set by the CRTC are just and reasonable as required by the Telecommunications Act as we believe they are below cost. CABLE On September 13, 2019, Rogers, in conjunction with the other large Canadian cable companies (Cable Carriers), filed a motion for DIFFERENTIAL PRICING RELATED TO INTERNET DATA Leave to Appeal pursuant to Section 64(1) of the PLANS Telecommunications Act with the Federal Court of Appeal (Court) On April 20, 2017, the CRTC released Telecom Regulatory Policy and an associated motion for an interlocutory Stay of the CRTC CRTC 2017-104, Framework for assessing the differential pricing Order. On September 27, 2019, the Court granted an Interim Stay practices of Internet service providers, setting out the evaluation suspending the Order until the Court ruled on the Cable Carriers’ criteria it will apply to determine whether a specific differential motion for an interlocutory Stay of the CRTC’s Order pending the pricing practice complies with subsection 27(2) of the Court’s determination of the Cable Carriers’ motion for Leave to Telecommunications Act on a case-by-case basis, as follows: Appeal. On November 22, 2019, the Court granted Leave to • the degree to which the treatment of data is agnostic (i.e., data is Appeal and an interlocutory Stay of the CRTC Order. It is anticipated treated equally regardless of its source or nature); that the appeal will be heard in mid-2020 with a decision thereafter.

78 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 79 | ROGERS COMMUNICATIONS INC. rovincial legislature channels, of that amount, in all licensed isting of Canadian local channels, Policy framework for local and community 2019 ANNUAL REPORT Follow-up to Telecom Regulatory Policy . The CRTC created a new model for BDU contributions to , addressing the technical implementation of new, TELEVISION SERVICES DISTRIBUTION On March 19,related 2015, to its the Let’s CRTC Talk TVto released proceeding. offer The the CRTC customers ordered an third distributors optionof of for a its Canadian small decisions basicmandatory service local consisting services, only community channels and p (local radio is optional), national CRTC REVIEW OF LOCAL AND COMMUNITY PROGRAMMING On June 15,Policy 2016, CRTC the 2016-224, CRTCtelevision released Broadcasting Regulatory Canadian programming thatAnnual took effect on contributionsbroadcasting September 1, revenues; will 2017. however, cable remain systems, up at toused to 1.5% fund (rather 5% community than0.3% channel the must of programming. now previous Of go 2%)Fund this annual for to can revenue, independently owned a be local gross newly TVfunding stations, created and will the Independent remaining Local continueindependent production News funds. to This decision go providesfor the to flexibility BDUs the(Montreal, that Canada Toronto, operate Media ,direct community , Fund their and channels and community Vancouver)fund in channel to either revenues large now community from channelor markets those programming to in markets fund smaller local to Rogers). markets, news on Rogers TV has stationschannels closed (such and as redirected its these Citytv, Greater revenues. in Toronto the Area case of community and, should they wish,The US retail 4+1 rate networks beginning formonth March this (excluding 1, entry-level equipment). 2016. service Effectiveoffering will a March be small 1, capped basic 2016, atnational service we $25 cons mandatory per began services,channels, community and the and US 4+1 networks. provincial legislature The CRTCchannels also to customers adopted “àchannels la above phased-in carte” the basic and tier as requirementsand must be part in offered smaller, of for on reasonably “pick-packs”. an pricedAs à All selling la packages a carte as BDU, basis of we December are 2016. permitted to continue to offer our existing basic mandated and wouldimplementation be of a phasedtelephone company disaggregated out central service offices in andThe with cable conjunction company connections head-ends. requirement with at tospeed the implement access disaggregated servicesfibre-to-the-premises wholesale will (FTTP) high- include accesscontinue to facilities. making be based Regulated them on long-run rates increment available 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 fibre-to-the high- disaggregated, 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 filings. the CRTC’sfor Proposed positions July the tariffs submitted 22, and by new 2015 supportinginformation service filed cost later studies were in 2017 filedanticipated and in 2018. on 2020. A decision January on final 9, rates 2017, is with further , ,Part1ofthe Telecommunications Act lesale regulatory framework. aints for Telecom-television Revised Guidelines for review , and Telecommunications , establishing a mandatory code iew. Finally, we asked that the ervice Provider Codes already in Telecommunications Act . Specifically, we seek: Review of wholesale wireline services and ), determining which wireline services, and under The Internet Code rates approved for theHAS Cable Carriers’ in aggregated the wholesale planned CRTC review Orderwholesale of telecommunications services in generally; its conjunction approach with to theretroactivity setting such CRTC’s that any the newHAS services wholesale rates apply rates only for on for a Cable prospective Carrier basis; and 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 On July 22, 2015, theframework CRTC released for its decision wholesalePolicy on the wireline regulatory 2015-326, servicesassociated policies (Telecom Regulatory what terms andcarriers must conditions, make facilities-based availableproviders, to such telecommunications other as resellers. telecommunicationshigh-speed The service CRTC access determinedcompetition that services, wholesale for whichInternet services, are access, such would used continueprovincially as to to be aggregated local mandated. support The services, phone, provision retail however, of television, would and no longer be CRTC REVIEW OF WHOLESALE WIRELINE TELECOMMUNICATIONS SERVICES a) review and variance of the methodology and the resulting b) review and variance of the determination in the Order regarding c) in the event that the interlocutory stay of the Order granted by place, the Commission for Compl Canadian Radio-television andRules Telecommunications Commission ofInformation Bulletin Practice CRTC 2011-214, and and vary applications Procedure 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 the S Wireless, Deposit and ServicesInc.(CCTS)willadministertheCode.TheCodecameinto effect on January 31, 2020. asking theAugust 15, Cabinet 2019 decision in conjunctionannounced to with review the CRTC’s of order previously We the also entire the asked who thatbroader the CRTC telecommunications Cabinet policy order objectives to the intoof account CRTC as to the reconsider part take reconsiderationCabinet Canada’s its vary and the rev windfall granted August to 15,rates the that 2019 resellers the and decisionapplicable CRTC making only by on establishes, the a cancelling after final forward-lookingreduce basis. the wholesale reconsidering the This regulatory would uncertainty its arising substantially from decision, the decision. On December 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 of 62 seeking of the the Order pursuant to sections On November 13,other 2019, Cable Carriers, Rogers, filed again anCabinet, appeal pursuant in of to the Section conjunction Order 12(1) with with of the the the Federal MANAGEMENT’S DISCUSSION AND ANALYSIS

service and programming packages. The CRTC also revised its MEDIA existing “preponderance” rule so that consumers will have to be offered, but will not have to receive, a majority of Canadian services. COPYRIGHT RETRANSMISSION OF DISTANT SIGNALS Pursuant to section 31(2) of the Copyright Act, television service A number of changes to the Wholesale Code (formerly the Vertical providers are permitted to retransmit programming within distant Integration (VI) Code) addressing, amongst other matters, over-the-air television signals as part of a compulsory licensing penetration-based rate cards and minimum guarantees were also regime. Rates for the distribution of the programming are made. All licensed programmers and BDUs are to comply with the established through negotiation or set by the Copyright Board. Wholesale Code, which came into effect on January 22, 2016. Distributors and content providers were unable to agree on a new The decision also addressed rules for distribution of foreign rate for the distribution of distant signals after the expiration of the services authorized for distribution in Canada, including current agreement in 2013. A proceeding was initiated by the requirements that foreign services make their channels available “à Copyright Board, which began on November 23, 2015. The la carte” and in “pick-packs” or in smaller pre-assembled packages proceeding continued into 2016 and 2017; a decision was and abide by the Wholesale Code. Access rules for VI-owned rendered on December 18, 2018. services and independent services, channel packaging, and The decision increased the rate paid by BDUs by approximately 8% buy-through rules for multicultural services were also addressed. for 2014, a further 7.5% for 2015, and a further 2.5% for 2016, with On March 26, 2015, in the final decision related to Let’s Talk TV, the 2017 and 2018 held constant at the 2016 rate. The impact of these CRTC announced plans to establish a Television Service Provider additional costs is not material. (TVSP) Code of Conduct to govern certain aspects of the relationship between TVSPs and their customers as well as to allow LICENCE RENEWALS consumers to complain to the Commissioner for Complaints for In a proceeding initiated by Broadcasting Notice of Consultation Telecommunications Services about their providers which came CRTC 2016-225, Renewal of television licences held by large into effect on September 1, 2017. English- and French-language ownership groups,released June 15, 2016, Rogers sought renewal of our group-based licences ROGERS CABLE TV LICENCE RENEWALS (six Citytv over-the-air English stations, Sportsnet 360, , On August 2, 2018, in Broadcasting Decision CRTC 2018-265, G4Tech,OLN,FX,andFXX),ourfiveover-the-airethnic Rogers – Licence renewal for various terrestrial broadcasting licences, and our mainstream sports licences distribution undertakings, the CRTC renewed Rogers’ Broadcasting (Sportsnet and Sportsnet One). We also sought approval of an Distribution Undertaking licences in Ontario and Atlantic Canada application seeking a new licence to operate a discretionary service for a full seven-year licence term with conditions substantially called OMNI Regional, which would operate pursuant to a section consistent with Rogers’ application. 9(1)(h) order granting it mandatory carriage on the basic service with a regulated affiliation fee. CRTC PROCEEDING ON FUTURE PROGRAMMING On May 18, 2017, the CRTC released Broadcasting Decision DISTRIBUTION MODELS CRTC 2017-151, Rogers Media Inc. – Licence renewals for English- On October 12, 2017, prompted by Order in Council language television stations, services and network, approving five- P.C. 2017-1195, the CRTC initiated a proceeding (Broadcasting year renewals of our group-based licences. Five-year licence Notice of Consultation CRTC 2017-359, Call for comments on the renewals were also approved for our mainstream sports services Governor in Council’s request for a report on future programming licences (Sportsnet and Sportsnet One) and our on-demand distribution models) to report on the distribution model or models service(RogersonDemand).Tocoincidewiththeexpirydateof of programming that are likely to exist in the future; how and the broadcasting licence for our new discretionary service, OMNI through whom Canadians will access that programming; and the Regional, discussed below, the broadcasting licences for our five extent to which these models will ensure a vibrant domestic market over-the-air ethnic OMNI television licences were renewed for a that is capable of supporting the continued creation, production, three-year period in this Broadcasting Decision. and distribution of Canadian programming, in both official languages, including original entertainment and information In Broadcasting Decision CRTC 2017-152, OMNI programming. Regional – National, multilingual multi-ethnic discretionary service, released the same day, the CRTC also approved our application On May 30, 2018, the CRTC issued its report on future seeking a new licence to operate a discretionary service called programming distribution models requested by the government in OMNI Regional, which would operate pursuant to a section 9(1)(h) September 2017 through Order in Council P.C. 2017-1195. The order, granting it mandatory carriage on the basic service with a report proposes new tools and regulatory approaches to support regulated affiliation fee of $0.12/subscriber/month for a three-year the production and promotion of audio and video content made term. The CRTC further issued a call (Broadcasting Notice of by and for Canadians. The report will inform the government’s Consultation 2017-154, Call for applications for a national, review of the Broadcasting Act (Canada) and Telecommunications multilingual multi-ethnic television service offering news and Act (Canada). information programming) for competing applications to determine whether OMNI Regional should retain its 9(1)(h) designation after three years or whether the designation should be granted to another applicant.

80 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 81 | ,theCRTC Licensing of ROGERS COMMUNICATIONS INC. l service will better reflect es will have improved access to 2019 ANNUAL REPORT news and programming relevantwill to them. succeed The newavailable Rogers’ service, which existing onCanada. OMNI all Regional The digitalCanada’s service, new diverse basic ethnic will and OMNI linguistic televisionnews be communities and Regiona and information packages offer more programming fromFour throughout a losing Canadian applicants perspective. filedwith the a Federal number Cabinet and of the Federal appeals Court of ofOn Appeal. the August Decision 17,Federal 2019, in Cabinet, Orderdeclined through to in set aside Council the orthe refer P.C. decision back Governor and 2019-1227, to on the August the General CRTCdismissed 15, for the 2019, reconsideration in the motions. Federal On CourtGroup, Council, September of one Appeal 16, of 2019, the fourthe CorrCan Federal applicants Media Cabinet, that filed filed a thefor motion losing in appeal a the with Federal judicialGeneral Court in of Council review issued Appeal on August of 17, 2019. the pronouncement by the Governor granted Rogers Media a licenceand to operate multi-ethnic a television national, multilingual, servicesection in 9(1)(h) order, 20 granting languagesservice it pursuant with mandatory to a carriage a regulatedfor on a affiliation the three-year basic fee term from ofThis September follows $0.19/subscriber/month 1, a 2020 competitive tothat August process 31, Rogers in 2023. best which met theThe the CRTC criteria CRTC determined set further outCanada’s stated in third-language its that communiti call beginning for on applications. September 1, 2020, On May 23, 2019, ina Broadcasting national, Decision 2019-172, multilingual multi-ethnic discretionary service ,the ting applications to determine hanges, lowered the amount that CRTC determined that Rogers’be PNI expenditure maintained requirements will revenues at as determined 5% in thegroups of will original be decision. the required Rogers to and direct previousgross 0.17% other of revenues previous broadcast to broadcast support year’s year’sbe music programming. gross This counted amountexpenditure may towards requirement.ordered meeting for short-form No content. the Theuntil conditions additional August of 31, licence Canadian 2022, will the expenditures apply end of programming the five-yearWith were licence term. regard toreferenced above Broadcasting calling for Notice compe whether OMNI of Regional Consultation shouldthree retain 2017-154 its years 9(1)(h) designation oranother after applicant, whether the CRTC the oral hearingNovember on 2018. designation the matter should occurred in be granted to some major broadcastersInterest must (PNI). The spend CRTC on issignificant to contributions Programs “consider are of how made it to National of can the creation be programs and ensured of presentation that nationaland interest, short-form documentaries.” music programming, short films, On August 30,Reconsideration 2018, in of Broadcasting licenceservices Decision of renewal CRTC large 2018-335, decisions English-language for private ownership the groups television On August 14, 2017, theMinister Governor in Council, on of theP.C. advice 2017-1060, of Canadian directed the the CRTCrenewal to Heritage reconsider decisions its group throughbroadcasters licence issued that, among Order other May c in 15, 2017 Council for large television MANAGEMENT’S DISCUSSION AND ANALYSIS

Other Information ACCOUNTING POLICIES LEASES We estimate the lease term by considering the facts and CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS circumstances that can create an economic incentive to exercise an extension option, or not exercise a termination option. We make Management makes judgments, estimates, and assumptions that certain qualitative and quantitative assumptions when deriving the affect how accounting policies are applied, the amounts we report value of the economic incentive. in assets, liabilities, revenue, and expenses, and our related disclosure about contingent assets and liabilities. Significant USEFUL LIVES changes in our assumptions, including those related to our future We depreciate the cost of property, plant and equipment over their business plans and cash flows, could materially change the estimated useful lives by considering industry trends and company- amounts we record. Actual results could be different from these specific factors, including changing technologies and expectations estimates. for the in-service period of certain assets at the time. We reassess These estimates are critical to our business operations and our estimates of useful lives annually, or when circumstances understanding our results of operations. We may need to use change, to ensure they match the anticipated life of the technology additional judgment because of the sensitivity of the methods and from a revenue-producing perspective. If technological change assumptions used in determining the asset, liability, revenue, and happens more quickly, or in a different way, than anticipated, we expense amounts. might have to reduce the estimated life of property, plant and equipment, which could result in a higher depreciation expense in ESTIMATES future periods or an impairment charge to write down the value. We monitor and review our depreciation rates and asset useful lives REVENUE FROM CONTRACTS WITH CUSTOMERS at least once a year and change them if they are different from our Determining the transaction price previous estimates. We recognize the effect of changes in The transaction price is the amount of consideration that is estimates in net income prospectively. enforceable and to which we expect to be entitled in exchange for the goods and services we have promised to our customer. We CAPITALIZING DIRECT LABOUR, OVERHEAD, AND determine the transaction price by considering the terms of the INTEREST contract and business practices that are customary within that Certain direct labour, overhead, and interest costs associated with particular line of business. Discounts, rebates, refunds, credits, price the acquisition, construction, development, or improvement of our concessions, incentives, penalties, and other similar items are networks are capitalized to property, plant and equipment. The reflected in the transaction price at contract inception. capitalized amounts are calculated based on estimated costs of projects that are capital in nature, and are generally based on a Determining the stand-alone selling price and the allocation of the per-hour rate. In addition, interest costs are capitalized during transaction price development and construction of certain property, plant and The transaction price is allocated to performance obligations based equipment. Capitalized amounts increase the cost of the asset and on the relative stand-alone selling prices of the distinct goods or result in a higher depreciation expense in future periods. services in the contract. The best evidence of a stand-alone selling price is the observable price of a good or service when the entity IMPAIRMENT OF ASSETS sells that good or service separately in similar circumstances and to Indefinite-life intangible assets (including goodwill and spectrum similar customers. If a stand-alone selling price is not directly and/or broadcast licences) are assessed for impairment on an observable, we estimate the stand-alone selling price taking into annual basis, or more often if events or circumstances warrant, and account reasonably available information relating to the market finite-life assets (including property, plant and equipment and conditions, entity-specific factors, and the class of customer. other intangible assets) are assessed for impairment if events or In determining the stand-alone selling price, we allocate revenue circumstances warrant. The recoverable amount of a cash between performance obligations based on expected minimum generating unit (CGU) involves significant estimates such as future enforceable amounts to which Rogers is entitled. Any amounts cash flows, terminal growth rates, and discount rates. If key above the minimum enforceable amounts are recognized as estimates differ unfavourably in the future, we could experience revenue as they are earned. impairment charges that could decrease net income.

FAIR VALUE FINANCIAL INSTRUMENTS We use estimates to determine the fair value of assets acquired and The fair values of our derivatives are recorded using an estimated liabilities assumed in an acquisition, using the best available credit-adjusted mark-to-market valuation. If the derivatives are in an information, including information from financial markets. These asset position (i.e. the counterparty owes Rogers), the credit spread estimates include key assumptions such as discount rates, attrition for the bank counterparty is added to the risk-free discount rate to rates, and terminal growth rates for performing discounted cash determine the estimated credit-adjusted value. If the derivatives are in flow analyses. a liability position (i.e. Rogers owes the counterparty), our credit spread is added to the risk-free discount rate. The estimated credit-

82 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 83 | ROGERS COMMUNICATIONS INC. bility for each lease contract, 2019 ANNUAL REPORT LEASES We make judgments inan identified determining asset. whether The identified a assetor contract should represent be substantially contains physically all of distinct theprovide capacity of us the asset, and withbenefits should from the the use of right the asset. toWe substantially also make all judgmentsthe in of right determining the whether to or controlright economic not the we when use have of werelevant the to have changing identified how and asset. the forrare We what decision-making purpose cases have the where asset rights that is thethe used. that asset decisions In is about used are are how predetermined,useoftheassetifwehavetherighttooperatetheassetorifwe most and we have for the what right todesigned purpose direct the the asset inpurpose a the way asset that will be predetermines used. how and forWe what make judgmentsrate in used determining to theincluding measure incremental an our borrowing estimate leaseincremental lia of borrowing the ratewould asset-specific have should security to reflect impact. paysecurity. to the The borrow interest at that a similarCertain we term of our and leases with containexercisable a extension or similar 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, cost At primarily that would lease be required to relocate our JUDGMENTS REVENUE FROM CONTRACTS WITH CUSTOMERS Distinct goods and services We make judgments ingoods determining or whether services a is promise consideredproducts to and distinct. deliver services We separately account if foror they service individual are is distinct separately (i.e. identifiable ifpackage from a and other product if items the in customer the canis bundled benefit allocated from it). between The separate consideration based products on their and stand-alone servicesseparately selling in prices. (e.g. a For items bundle third-party weselling prices do gift using not the adjusted sell cards), market assessment we approach. estimateDetermining stand-alone costs to obtain or fulfillDetermining a contract the costs wemeet incur the to obtain deferralsignificant or criteria judgments. fulfill a within Wepaid contract to expect IFRS that internal and incremental 15 external representativescontracts commission requires with as customers a fees to result us be of recoverable. obtaining to make values, which areNon-Voting Shares, based and recognizing them oncosts as 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 in accrued benefit obligation Increase (decrease) assumptions incorporated into -driven changes may also result Impact of 0.5% increaseImpact of 0.5% decreaseImpact of 0.25% increaseImpact of 0.25% decreaseImpact of 1 year increaseImpact of 1 year decrease (233) 266 17 (17) 61 (64) Restricted share unit (RSU) and deferredWe share recognize unit outstanding (DSU) plans RSUs andthe DSUs as liabilities liabilities, and measuring compensation costs based on the awards’ fair STOCK-BASED COMPENSATION Stock option plans Our employeeappreciation stock rights optionoptions. (SARs) plans The to SAR attachreceive all feature a new cash-settled cash allows paymentinstead and the equal share of to exercising option previously the the holder optionShares. intrinsic granted and We value to acquiring of measure Class elect the B stock-basedfair Non-Voting option, to compensation value. We to determine employees theNon-Voting at fair Share value price of and options optionoutstanding using pricing our stock models, Class and options B recordmarket as all each liabilities. period The andvesting liability is approach amortized is over to the marked periodare expense to during using rendered, which a employee or graded services eligible to over retire, the whichever isis period shorter. affected The to by expense the the inShares during change each date the period in period. an the price employee of is our Class B Non-Voting (In millions of dollars) Discount rate Rate of future compensation increase Mortality rate PENSION BENEFITS When we account forare defined benefit made pension plans, inAssumptions assumptions and determining estimates the includefuture the compensation valuation discount increase, of rate, andthese the the benefit primary rate mortality assumptions and obligations. rate. of estimates Changesexpense, would to affect pension the pension assetincome. and Changes liability,markets in and and interest rates, other economic may alsoplans,asthereisnoassurancethattheplanswillbeabletoearn comprehensive conditions, have an impact including on ourthe pension financial assumed rate of return.in Market changes inrequire the us to discount make contributions rates infrom the and the future that current other differ contributions significantly variablesthe and actuarial that valuation process. could Below is a summaryprimary of assumptions the effectaccrued and benefit an obligation as increase estimates at or December 31, would decrease 2019. in have the had on our adjusted value of derivatives requiresthe assessment parties to of the the instruments credit and risk the instruments’ of discountFor rates. all derivative instrumentswe where are hedge accounting requiredhedge is to applied, effectiveness ensure criteria. that Hedgethe use the effectiveness of both testing hedging judgments and requires relationships estimates. meet MANAGEMENT’S DISCUSSION AND ANALYSIS

network towers and related equipment. We periodically reassess INCOME TAXES AND OTHER TAXES whether we are reasonably certain to exercise the options and We accrue income and other tax provisions based on information account for any changes at the date of the reassessment. currently available in each of the jurisdictions in which we operate. While we believe we have paid and provided for adequate USEFUL LIVES AND DEPRECIATION AND AMORTIZATION amounts of tax, our business is complex and significant judgment is METHODS required in interpreting how tax legislation and regulations apply to We make significant judgments in choosing methods for us. Our tax filings are subject to audit by the relevant government depreciating our property, plant and equipment that we believe revenue authorities and the results of the government audit could most accurately represent the consumption of benefits derived materially change the amount of our actual income tax expense, from those assets and are most representative of the economic income tax payable or receivable, other taxes payable or substance of the intended use of the underlying assets. receivable, and deferred income tax assets and liabilities and could, in certain circumstances, result in the assessment of interest and We amortize the cost of intangible assets with finite lives over their penalties. estimated useful lives. We review their useful lives, residual values, and the amortization methods at least once a year. CONTINGENCIES We do not amortize intangible assets with indefinite lives (spectrum Considerable judgment is involved in the determination of licences, broadcast licences, and certain brand names) as there is contingent liabilities. Our judgment is based on information no foreseeable limit to the period over which these assets are currently known to us, and the probability of the ultimate resolution expected to generate net cash inflows for us. We make judgments of the contingencies. If it becomes probable that a contingent to determine that these assets have indefinite lives, analyzing all liability will result in an outflow of economic resources, we will relevant factors, including the expected usage of the asset, the record a provision in the period the change in probability occurs. The amount of the loss involves judgment based on information typical life cycle of the asset, and anticipated changes in the market available at that time. Any provision recognized for a contingent demand for the products and services the asset helps generate. liability could be material to our consolidated financial position and After review of the competitive, legal, regulatory, and other factors, results of operations. it is our view that these factors do not limit the useful lives of our spectrum licences, broadcast licences, and certain brand names. ONEROUS CONTRACTS Judgment is also applied in choosing methods for amortizing our Significant judgment is required to determine when we are subject intangible assets and program rights that we believe most to unavoidable costs arising from onerous contracts. These accurately represent the consumption of those assets and are most judgments may include, for example, whether a certain promise is representative of the economic substance of the intended use of legally binding or whether we may be successful in negotiations the underlying assets. with the counterparty.

IMPAIRMENT OF ASSETS TRANSACTIONS WITH RELATED PARTIES We make judgments in determining CGUs and the allocation of We have entered into certain transactions in the normal course of goodwill to CGUs or groups of CGUs for the purpose of business with related parties in which we have an equity interest, impairment testing. The allocation of goodwill involves being primarily MLSE and Glentel. The amounts received from or considerable management judgment in determining the CGUs (or paid to these parties were as follows: groups of CGUs) that are expected to benefit from the synergies of Years ended December 31 a business combination. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent (In millions of dollars) 2019 2018 % Chg of the cash inflows from other assets or groups of assets. Goodwill Revenue 69 86 (20) and indefinite-life intangible assets are allocated to CGUs (or Purchases 212 197 8 groups of CGUs) based on the level at which management monitors goodwill, which is not higher than an operating segment. We have also entered into business transactions with companies whose partners or senior officers are Directors of RCI. These HEDGE ACCOUNTING Directors are: We make significant judgments in determining whether our • The Hon. David R. Peterson, P.C., Q.C., the non-executive financial instruments qualify for hedge accounting, including our chairman emeritus of Cassels Brock and Blackwell LLP, a law firm determination of hedge effectiveness. that provides legal services to Rogers; and • Isabelle Marcoux, C.M., the chair of the board of SEGMENTS Transcontinental Inc., a company that provides printing services We make significant judgments in determining our operating to Rogers. segments. These are components that engage in business activities Years ended December 31 from which they may earn revenue and incur expenses, for which (In millions of dollars) 2019 2018 operating results are regularly reviewed by our chief operating decision makers to make decisions about resources to be allocated Printing and legal services 1 6 13

and to assess component performance, and for which discrete 1 The amount paid for legal services is nominal. financial information is available.

84 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 85 | Provisions, contingent ROGERS COMMUNICATIONS INC. as at December 31, 2018 as an edients were available to us. We ties, adjusted for any prepaid or January 1, 2019. Generally, right- atment for lessors remains largely ry 1, 2019. We have not restated 2019 ANNUAL REPORT characteristics; as at January 1, 2019; contains purchase, extension, or termination options; and under theliabilities requirements and contingent of assets alternative to reviewing IAS our right-of-use assets 37, for impairment. increase toStatements both of Financial Position, assets ascosts well as (for and a the decrease to removal liabilitiesdepreciation operating and of amortization on rent (due expense touse our depreciation for asset), of and leases), the an Consolidated an increase right-of- lease to increase liability). finance to costs The (due accounting to tre thesameasunderIAS17. accretion of the We adopted IFRS 16 withrecognized the cumulative effect of as initialshareholders’ application equity an oncomparatives adjustment Janua for to 2018.expedient that At allows retained us transition,under to earnings maintain we IAS our 17 applied lease within definition and assessments of the made IFRIC a practical lease 4entered into under for or IFRS changed existing after 16 January contracts. 1, was 2019. applied Therefore,For only the leases to that contracts werelease classified liabilities as at operatingvalue transition leases of have under been IAS remainingincremental measured 17, borrowing lease rate at as payments, theof-use at assets present discounted at transition at haveto been the measured the at corresponding related an lease amountaccrued equal liabili rent relating to that lease.readily For available certain information, leases we where have weof-use elected have to assets measure the at right- applied their since carrying the amountsincremental lease borrowing as commencement rate if dateJanuary for IFRS 1, using the 2019. 16 the remaining had related lease been periodWhen as applying at IFRS 16 toleases, leases the previously following classified practical ashave: exp operating • applied a single discount rate to a portfolio• of leases excluded with initial similar direct costs from measuring the right-of-use asset • used hindsight in determining the lease term where• the contract relied upon our assessment of whether leases were onerous We have elected to not separatelease fixed components non-lease and components instead from accountand for each associated lease component fixedcomponent. On non-lease transition, componentsexemptions we on as have short-term a leases notmay or elected single choose low-value to the leases; elect lease however, the recognition recognitionbasis we exemptions for on new a class-by-class classes,future. and lease-by-lease basis, respectively, in the There was no significantlessor. impact for contracts in which we are the Financial and IFRS 11, ,clarifyingthe , providing guidance Determining whether unsecured, interest-free, and Uncertainty over Income Tax unting model for lessees unless Borrowing Costs (IFRIC 4). obligation to make lease payments. Investments in Associates and Joint Business Combinations Employee Benefits (IAS 17) and IFRIC 4, , clarifying the distinction between a business Leases including its impairment requirements, to long-term , aiming to reduce diversity in how companies , clarifying the requirement in applying IFRS 9, LEASES Treatments recognize and measure auncertainty tax over income liability tax or treatments. tax asset when there is Ventures on accountingamended, for curtailed, or settled during defined a period. benefit plansrequirement that thatconstruction have borrowings of been made qualifyinggeneral borrowings after assets specifically completion. become to part finance of a poolInstruments of interests in an associatepart or of joint the venture net that, investmentwhich in in the substance, the equity form associate method is or not joint applied. venture but to andagroupofassetstoaidinapplyingIFRS3. Joint Arrangements Additionally, we adoptedeffects IFRS this 16 new pronouncement effective hasare January on described below. our 1, results 2019. and operations The • Amendments to IAS 23, • Amendments to IAS 28, • Amendments to IFRS 3, • Amendments to IFRIC 23, As a result of adopting IFRS 16, we have recognized a significant IFRS 16, IFRS 16 supersedesincluding IAS 17, previous accounting standards for leases, IFRS 16 introduced athe single underlying acco assetrecognize, on its is statement of of financialrepresenting position, a its low right-of-use asset, right value.lease to liability, A use representing lessee its the underlying is leased required asset, to and a an arrangement contains a lease We adopted the following IFRS amendmentshave a in material 2019. effect They on did our not • financial statements. Amendments to IAS 19, NEW ACCOUNTING PRONOUNCEMENTS ADOPTED IN 2019 due for payment intransaction. cash within one month from the date of the We have also entered intoshareholder certain transactions and with our companiessubject controlling it to formal controls.Committee. agreements Total These amounts approved transactions paidreflect by to are the these the charges to related Audit Rogers partiesnet for generally and occasional of business other Risk use administrative offor aircraft, services, each of and 2019 were and 2018. less than $1These million transactions are measuredrelated at the parties, amount which agreedCommittee. to are The by amounts also the owing reviewed are by the Audit and Risk MANAGEMENT’S DISCUSSION AND ANALYSIS

EFFECT OF IFRS 16 TRANSITION Below is a summary of the IFRS 16 adjustments on certain key financial metrics from our Consolidated Statement of Financial Position as at January 1, 2019. Subsequent to As reported as at Effect of transition as at (in millions of dollars) Reference December 31, 2018 IFRS 16 transition January 1, 2019 Assets Current assets: Other current assets 459 (23) 436 Remainder of current assets 4,429 – 4,429 Total current assets 4,888 (23) 4,865 Property, plant and equipment i 11,780 1,481 13,261 Remainder of long-term assets 15,250 – 15,250

Total assets 31,918 1,458 33,376 Liabilities and shareholders’ equity Current liabilities: Accounts payable and accrued liabilities 3,052 (55) 2,997 Current portion of lease liabilities i – 190 190 Remainder of current liabilities 3,784 – 3,784 Total current liabilities 6,836 135 6,971 Lease liabilities i – 1,355 1,355 Deferred tax liabilities 2,910 (9) 2,901 Remainder of long-term liabilities 13,993 – 13,993 Total liabilities 23,739 1,481 25,220 Shareholders’ equity 8,179 (23) 8,156

Total liabilities and shareholders’ equity 31,918 1,458 33,376

i) Right-of-use assets and lease liabilities • periods covered by options to extend the lease, where we are We have recorded a right-of-use asset and a lease liability for all reasonably certain to exercise the option; and existing leases at the lease commencement date, which is • periods covered by options to terminate the lease, where we are January 1, 2019 for the purposes of our adoption. The lease liability reasonably certain not to exercise the option. has been initially measured at the present value of lease payments that remain to be paid at the commencement date. Lease payments RECENT ACCOUNTING PRONOUNCEMENTS NOT YET included in the measurement of the lease liability include: ADOPTED • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or rate; The IASB has issued the following new standards that will become • amounts expected to be payable under a residual value effective in future years and could have an impact on our guarantee; and consolidated financial statements in future periods: • the exercise price under a purchase option that we are • Changes to the Conceptual Framework, seeking to provide reasonably certain to exercise, lease payments in an optional improvements to concepts surrounding various financial renewal period if we are reasonably certain to exercise an reporting considerations and existing IFRS standards. extension option, and penalties for early termination of a lease • Amendments to IAS 1, Presentation of Financial Statements and unless we are reasonably certain not to terminate early. IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, clarifying the definition of “material”. After transition, the right-of-use asset will initially be measured at • IFRS 17, Insurance Contracts, a replacement of IFRS 4, Insurance cost, consisting of: Contracts, that aims to provide consistency in the application of • the initial amount of the lease liability, adjusted for any lease accounting for insurance contracts. payments made at or before the commencement date; • Amendments to IFRS 9, IAS 39, and IFRS 7, Interest Rate • any initial direct costs incurred; and Benchmark Reform, seeking to reduce uncertainty and • an estimate of costs to dismantle and remove the underlying diminishing long-term viability of certain interest rate asset or restore the site on which it is located; less benchmarks used in global financial markets, such as interbank • any lease incentives received. offer rates (IBORs). The right-of-use asset will typically be depreciated on a straight-line We do not expect IFRS 17, Insurance Contracts, will have an effect basis over the lease term, unless we expect to obtain ownership of on our consolidated financial statements. We are assessing the the leased asset at the end of the lease. The lease term will consist of: impacts, if any, the remaining new standards or amendments will • the non-cancellable period of the lease; have on our consolidated financial statements.

86 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 87 | ROGERS COMMUNICATIONS INC. ss. We calculate total service h, subscriber churn represents ct assets to accounts receivable, ng the sum of Wireless service 2019 ANNUAL REPORT TOTAL SERVICE REVENUE We useperformance total from service theseparate revenue from provision revenue to generated ofhave measure from acquired the services from our sale device of tothis core manufacturers equipment metric is our we and our business resold. retail customers revenue Includedwhich from in TSC are and the also Torontorevenue Blue by core Jays, subtracting equipment to revenue from our total revenue. busine 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. 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 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 the than numbers sum one of of mont the numberdivided of by subscribers the deactivating sum for ofbeginning each the of period each aggregate period. number of subscribers at the 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, ubscribers are represented by a apartment building, each tenant withan cable service is individual countedseparately as subscriber, or includedsuch whether as in hospitals or the the hotels, are tenant’s each considered service rent. one subscriber. Institutionalthose is units, subscribers who invoiced have servicewho are installed being and billed operating, accordingly. and over our fibre network andswitched data local centre and infrastructure, 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; Cable Phonecounts. subscribers are represented by line prepaid. Postpaid anddata-only prepaid include subscribers, voice-onlyintegrating both subscribers, voice and and data. subscribers withmonth in arrears. service Prepaid subscribersoverage cannot plans charges incur in excess usage of and/or their plan limits or account balance. of 90 days from the date of their last revenue-generating usage. telephone number. • Wireless; •Cable;and • homes passed (Cable); • When there is more than one unit in a single dwelling, such as an • Cable Television, Internet, and Phone subscribers include only • Subscriber counts exclude certain business services delivered Subscriber count (Cable) • Cable Television and Internet s • 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. servicesvoluntarily based on When or involuntarily subscribersdeactivations for in non-payment, are the period theysubscriber the deactivated, counts are services to considered are measure either ability our discontinued. core to We business use benefit performance frompassed and recurring (Cable) as revenue a streams.within measure We a for defined use geographical our area. homes potential market penetration KEY PERFORMANCE INDICATORS We measure theperformance success of indicators, our whichthese strategy are using key a outlinedmeasure number below. performance of our We key indicators performanceagainst believe the against results allow of our ourperformance peers us indicators and operating are competitors. to The not strategyIFRS following measurements key and in and appropriately should accordance with notany other be measure considered of performance alternatives under• to IFRS. They net subscriber include: counts; income or • subscriber churn (churn); • blended average billings• per user (ABPU); blended average revenue• per user (ARPU); capital intensity; • total service revenue; • dividend payout ratios;• and returnonassets. MANAGEMENT’S DISCUSSION AND ANALYSIS

DIVIDEND PAYOUT RATIOS RETURN ON ASSETS We calculate the dividend payout ratio by dividing dividends We use return on assets to measure our efficiency in using our declared for the year by net income or free cash flow for the year. assets to generate net income. We calculate return on assets by We use dividends as a percentage of net income and free cash dividing net income for the year by total assets as at year-end. flow to conduct analysis and assist with determining the dividends we should pay.

88 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 89 | sset balances”. We Long-term debt divided by net income Net income Basic and diluted earnings per share Long-term debt Net income Cash provided by operating activities Most comparable IFRS financial measure ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT Adjusted net debt (defined above) divided by 12-month trailing adjusted EBITDA (defined above). 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. 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: 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. Adjusted EBITDA deduct capital expenditures; interest on borrowings net of capitalized interest; and cash income taxes. , 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 djust for the “net change in contract asset and deferred commission cost a alysis and make decisions about alysis and make decisions about removing it will make us more comparable within our industry. To conductcapital valuation-related structure. an We believe thisand helps equity investors value and and assess our analysts leverage. analyze our enterprise 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 conductcapital valuation-related structure. an We believe thisand helps equity investors value and and assess our analysts leverage. analyze our enterprise 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 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 • • • • • • • • • • 1 Effective January 1, 2019, we redefined free cash flow such that we no longer a redefined free cash flow to simplify this measure and we believe Non-GAAP measure or related performance measure How and why we use it How we calculate it Free cash flow Debt leverage ratio Adjusted net income Adjusted basic and diluted earnings per share Adjusted net debt Adjusted EBITDA Adjusted EBITDA margin 1 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 2018 1 (In millions of dollars) 2019 2018 (In millions of dollars) 2019 (restated)

Net income 2,043 2,059 Cash provided by operating activities 4,526 4,288 Add (deduct): Add (deduct): Income tax expense 712 758 Capital expenditures (2,807) (2,790) Other income (10) (32) Interest on borrowings, net of capitalized Finance costs 840 793 interest (727) (689) Restructuring, acquisition and other 139 210 Interest paid 779 726 Gain on disposition of property, plant and Restructuring, acquisition and other 139 210 equipment – (16) Program rights amortization (77) (58) Depreciation and amortization 2,488 2,211 Netchangeincontractassetbalances 204 354 Net change in financing receivable balances 84 – Adjusted EBITDA 6,212 5,983 Change in non-cash operating working capital items 138 114 Other adjustments 19 (21) Years ended December 31 Free cash flow 2,278 2,134 (In millions of dollars, except percentages) 2019 2018 1 Effective January 1, 2019, we redefined free cash flow such that we no longer adjust Adjusted EBITDA 6,212 5,983 for the “net change in contract asset and deferred commission cost asset balances”. Divided by: total revenue 15,073 15,096 We redefined free cash flow to simplify this measure and believe removing it will Adjusted EBITDA margin 41.2% 39.6% make us more comparable within our industry.

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) 2019 2018 2018 Net income 2,043 2,059 (In millions of dollars, except percentages) 2019 (restated) 1 Add (deduct): Dividends declared during the year 1,022 988 Restructuring, acquisition and other 139 210 Divided by: free cash flow 2,278 2,134 Loss on bond forward derivatives – 21 Loss on repayment of long-term debt 19 28 Dividend payout ratio of free cash flow 45% 46% Gain on disposition of property, plant and equipment – (16) Income tax impact of above items (43) (61) Income tax adjustment, legislative tax change (23) –

Adjusted net income 2,135 2,241

RECONCILIATION OF ADJUSTED EARNINGS PER SHARE

Years ended December 31 (In millions of dollars, except per share amounts; number of shares outstanding in millions) 2019 2018 Adjusted basic earnings per share: Adjusted net income 2,135 2,241 Divided by: weighted average number of shares outstanding 512 515

Adjusted basic earnings per share $4.17 $4.35 Adjusted diluted earnings per share: Adjusted net income 2,135 2,241 Effect on net income of dilutive securities (6) (2)

Diluted adjusted net income 2,129 2,239 Dividedby:dilutedweightedaveragenumber of shares outstanding 513 516

Adjusted diluted earnings per share $4.15 $4.34

90 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 91 | As at Total Total 2018 2018 6,836 4,888 2,059 27,030 16,903 15,096 December 31 2019 2019 5,964 5,117 2,043 31,902 21,639 15,073 2.7 2.5 As at 2019 2018 6,157 5,983 1 1 16,351 14,806 January 1 (213) 2018 2018 (1,381) (2,166) (26,551) (54,535) (52,925) r co-obligor, as the case may be, ROGERS COMMUNICATIONS INC. 2.9 As at 2019 6,212 adjustments adjustments Consolidating Consolidating 18,185 (215) 2019 2019 (1,306) (1,916) (28,198) (58,065) (56,453) December 31 1 1 110 348 2018 2018 3,700 8,206 2,225 10,256 dentified below, presented with a separate 2019 ANNUAL REPORT subsidiaries subsidiaries 138 184 Non-guarantor Non-guarantor 2019 2019 3,710 8,278 2,159 10,552 1 1,2 2018 2018 3,025 1,818 RCCI 22,396 27,170 22,870 13,073 RCCI adjusted EBITDA Divided by: trailing 12-month Adjusted net debt edit and letter of credit facilities, and derivatives are unsecured 2019 2019 4,938 1,732 Debt leverage ratio (In millions of dollars, except ratios) a combined basis, (iv) consolidating adjustments, and (v) the total 26,342 29,201 24,447 13,129 1 1 11 As at RCI RCI 2018 2018 2,059 15,149 27,485 25,995 24,687 – December 31 2019 2019 2,043 17,869 30,048 26,550 26,571 (75) (75) 114 114 900 900 190 – (405) (405) As at 2019 2018 2,255 2,255 1,355 – (1,373) (1,373) financial information for RCI for the periods i 13,390 13,390 14,404 14,404 16,351 14,806 January 1 – ary companies are accounted for by the equity method. (31) 163 230 (494) As at 2019 2,238 1,495 (1,383) 15,967 16,130 18,185 December 31 netdebtderivativeassets liabilities Netdebtderivativeassets Credit risk adjustment related to Short-term borrowings Current portion of lease Lease liabilities Cash and cash equivalents discounts Non-current liabilities Non-current assets Current liabilities Current assets Revenue Net income (loss) For the purposes of this table,Amounts investments recorded in in subsidi current liabilities and non-current liabilities for RCCI do not include any obligations arising as a result of being a guarantor o under any of RCI’s long-term debt. Deferred transaction costs and Add (deduct): (In millions of dollars) Current portion of long-term debt Long-term debt column for: (i) RCI,consolidated amounts, (ii) is RCCI, set forth (iii) as follows: our non-guarantor subsidiaries on Adjusted net debt 1 2 As at December 31 (unaudited) (In millions of dollars) obligations of RCI, as obligor, and RCCI, as eitherThe co-obligor selected or guarantor, unaudited as consolidating applicable. summary Years ended December 31 (unaudited) (In millions of dollars) Our outstanding public debt, amounts drawn on our $3.3 billion bank cr SUMMARY OF FINANCIAL RESULTS OF LONG-TERM DEBT GUARANTOR RECONCILIATION OF ADJUSTED NET DEBT ANDLEVERAGE DEBT RATIO Selected Statements of Financial Position data measure: Selected Statements of Income data measure: 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) 2019 2018 1 2017 2 2016 3 2015 3 Revenue Wireless 9,250 9,200 8,569 7,916 7,651 Cable 3,954 3,932 3,894 3,871 3,870 Media 2,072 2,168 2,153 2,146 2,079 Corporate items and intercompany eliminations (203) (204) (247) (231) (186) Total revenue 15,073 15,096 14,369 13,702 13,414 Total service revenue 4 12,965 12,974 12,550 13,027 12,649

Adjusted EBITDA 5 Wireless 4,345 4,090 3,726 3,262 3,217 Cable 1,919 1,874 1,819 1,773 1,751 Media 140 196 127 159 167 Corporate items and intercompany eliminations (192) (177) (170) (163) (159) Total adjusted EBITDA 6,212 5,983 5,502 5,031 4,976 Net income 2,043 2,059 1,845 835 1,342 Adjusted net income 5 2,135 2,241 1,902 1,432 1,433 Cash provided by operating activities 4,526 4,288 3,938 3,957 3,747 Free cash flow 5 2,278 2,134 1,685 1,705 1,676 Capital expenditures 2,807 2,790 2,436 2,352 2,440 Earnings per share Basic $3.99 $ 4.00 $ 3.58 $ 1.62 $ 2.61 Diluted $3.97 $ 3.99 $ 3.57 $ 1.62 $ 2.60 Adjusted earnings per share 5 Basic $4.17 $ 4.35 $ 3.69 $ 2.78 $ 2.78 Diluted $4.15 $ 4.34 $ 3.68 $ 2.77 $ 2.77 Statements of Financial Position: Assets Property, plant and equipment 13,934 11,780 11,143 10,749 10,997 Goodwill 3,923 3,905 3,905 3,905 3,905 Intangible assets 8,905 7,205 7,244 7,130 7,243 Investments 2,830 2,134 2,561 2,174 2,271 Other assets 7,427 6,894 5,637 4,384 4,773 Total assets 37,019 31,918 30,490 28,342 29,189 Liabilities and Shareholders’ Equity Long-term liabilities 21,639 16,903 16,111 17,960 18,536 Current liabilities 5,964 6,836 6,883 5,113 5,017 Total liabilities 27,603 23,739 22,994 23,073 23,553 Shareholders’ equity 9,416 8,179 7,496 5,269 5,636 Total liabilities and shareholders’ equity 37,019 31,918 30,490 28,342 29,189

Subscriber count results (in thousands) 4 Wireless subscribers 6 10,840 10,783 10,482 10,274 9,877 Internet subscribers 2,534 2,430 2,321 2,145 2,048 Television subscribers 1,579 1,685 1,740 1,820 1,896 Phone subscribers 1,072 1,116 1,108 1,094 1,090

Additional Wireless metrics 4 Postpaid churn (monthly) 1.11% 1.10% 1.20% 1.23% 1.27% Blended ABPU (monthly) 7 $ 66.23 $ 64.74 $ 62.31 n/a n/a Blended ARPU (monthly) $ 55.49 $ 55.64 $ 54.23 $ 60.42 $ 59.71 Additional consolidated metrics Revenue growth 0% 5% 5% 2% 4% Adjusted EBITDA growth 4% 9% 9% 1% 0% Dividends declared per share $2.00 $ 1.92 $ 1.92 $ 1.92 $ 1.92 Dividend payout ratio of net income 4 50.0% 48.0% 53.6% 118.3% 73.6% Dividend payout ratio of free cash flow 4,5 44.9% 55.8% 58.6% 57.9% 58.9% Return on assets 4 5.5% 6.5% 6.1% 2.9% 4.6% Debt leverage ratio 5 2.9 2.5 2.7 3.0 3.1

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, adjusted basic and diluted earnings per share, free cash flow, debt leverage ratio, and dividend payout ratio of 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. 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 is 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 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”.

92 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 93 | ROGERS COMMUNICATIONS INC. Anthony Staffieri, FCPA, FCA Chief Financial Officer esponsibility through its Audit and for shareholder approval. 2019 ANNUAL REPORT Joe Natale President and Chief Executive Officer Board 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 consolidatedKPMG financial LLP, the statements external auditors,of have in the accordance Public Company with been Accounting the Oversighton standards Board audited (United behalf States) of by thereporting shareholders. as Our internalKPMG of control LLP, over December financial Company in 31, accordance Accountability 2019KPMG with has LLP Oversight theCommittee. been has standards Board full audited of and by the (United free Public March States). 5, access 2020 to the Audit and Risk 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 Board of Directors is responsibleresponsibility for for overseeing financial management’s report Management believes these internalassurance that: controls provide reasonable • 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 reviewing and approving the consolidated financial statements. The Management has developedcontrols and that maintainsfinancial further statements. a enhances The system systemthe the internal of of audit internal integrity function internal controls andto includes is employees of about management supported its communication policies the by on ethical business consolidated conduct. The accompanying consolidatedCommunications Inc. fi and its subsidiariesManagement’s and all the information Discussion in an Management’s Responsibility for Financial Reporting December 31, 2019 responsibility of managementBoard and of Directors. have been approvedManagement by has the prepared the cons 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 CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Rogers regarding the amounts and disclosures in the consolidated Communications Inc. financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by Opinion on the Consolidated Financial Statements management, as well as evaluating the overall presentation of the We have audited the accompanying consolidated balance sheets consolidated financial statements. We believe that our audits of Rogers Communications Inc. (the Company) as of December 31, provide a reasonable basis for our opinion. 2019 and 2018, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash Critical Audit Matter flows for each of the years in the two-year period ended The critical audit matter communicated below is a matter arising December 31, 2019, and the related notes (collectively, the from the current period audit of the consolidated financial consolidated financial statements). In our opinion, the consolidated statements that was communicated or required to be financial statements present fairly, in all material respects, the communicated to the Audit and Risk Committee and that: financial position of the Company as of December 31, 2019 and (1) relates to accounts or disclosures that are material to 2018, and its financial performance and its cash flows for each of the consolidated financial statements and (2) involved our the years in the two-year period ended December 31, 2019, in especially challenging, subjective, or complex judgments. The conformity with International Financial Reporting Standards as communication of critical audit matters does not alter in any way issued by the International Accounting Standards Board. our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter We also have audited, in accordance with the standards of the below, providing separate opinions on the critical audit matter or Public Company Accounting Oversight Board (United States) on the accounts or disclosures to which it relates. (PCAOB), the Company’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Assessment of the recoverability of the carrying value of goodwill in Control – Integrated Framework (2013) issued by the Committee of the Media segment Sponsoring Organizations of the Treadway Commission, and our As discussed in Note 9 to the consolidated financial statements, the report dated March 5, 2020 expressed an unqualified opinion on Company tests goodwill for impairment on an annual basis during the effectiveness of the Company’s internal control over financial the fourth quarter of each or more frequently if indicators reporting. of impairment are identified. The impairment tests involve comparing the carrying value of the relevant cash-generating unit Change in Accounting Principle (CGU) or group of cash-generating units (CGUs) that contain As discussed in Note 2 to the consolidated financial statements, the goodwill to its corresponding recoverable amount. Goodwill is Company has changed its method of accounting for leases during monitored at an operating segment level in the Media segment. 2019 due to the adoption of IFRS 16, Leases, and included the The determination that goodwill is monitored at the segment level presentation of the statement of financial position as at requires the application of judgment. In addition, a number of January 1, 2019. businesses within the Company’s Media segment are partially reliant on traditional advertising revenues, are subject to a highly Basis for Opinion competitive environment, and continue to have profitability These consolidated financial statements are the responsibility of challenges due to declining advertising revenue growth rates and the Company’s management. Our responsibility is to express an increasing costs of producing and/or providing content. The opinion on these consolidated financial statements based on our estimate of the recoverable amount, which is determined based on audits. We are a public accounting firm registered with the PCAOB the higher of fair value less costs to sell and value in use, is based and are required to be independent with respect to the Company on significant estimates developed by the Company relating to in accordance with the U.S. federal securities laws and the future cash flows, the terminal growth rate, and the discount rate applicable rules and regulations of the Securities and Exchange applied in its valuation model. The goodwill balance in the Media Commission and the PCAOB. segment as at December 31, 2019 was $955 million. We conducted our audits in accordance with the standards of the We identified the assessment of the recoverability of the carrying PCAOB. Those standards require that we plan and perform the value of goodwill in the Media segment as a critical audit matter. audit to obtain reasonable assurance about whether the There were judgments applied in assessing the level at which consolidated financial statements are free of material misstatement, goodwill was tested and there was a high degree of subjective whether due to error or fraud. Our audits included performing auditor judgment required in evaluating the key assumptions used procedures to assess the risks of material misstatement of the in the valuation models, which included the CGUs’ future cash consolidated financial statements, whether due to error or fraud, flows, the discount rate, and the terminal growth rate. and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence

94 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 95 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT w forecasts used to estimate the t goodwill should be tested at the Chartered Professional Accountants, Licensed Public Accountants We have served as the Company’sToronto, auditor Canada since 1969. March 5, 2020 The primary procedures we performedmatter to included address this the critical following. audit over We the Company’s tested impairment certain testingrelated process, internal including to controls controls the determination tha Media segment level andthe the key recoverable assumptions amount used of in the estimating Media CGUs.to We assess compared the the results. 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 and We industry underlying data. Wespecialized documentation assessed involved skills and valuation professionals and the external with discount knowledge, rate, who by comparing assisted therate in Company’s inputs evaluating to the the toindependently discount developing a publiclyand range of comparing available reasonable thosegrowth discount to rates, data rate the forunderlying Company’s documentation for the rate and Media publicly andperformed available comparable Group the market a data. of terminal sensitivity We entities, valuation CGUs, analysis over by model the comparingdetermination key of to the to assumptions recoverable amount. assess in the their impact on the Company’s Company’s historical cash flow forecasts to actual results achieved 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, 2019, 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, 2019, based on Definition and Limitations of Internal Control Over Financial criteria established in Internal Control – Integrated Framework (2013) Reporting 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, 2019 and 2018, 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, 2019, 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 5, 2020 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, 2019. 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 5, 2020

96 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 97 | (32) (16) 210 793 758 2018 2,817 2,059 9,113 2,211 15,096 $3.99 $4.00 – (10) 139 840 712 2019 2,755 2,043 8,861 2,488 15,073 $3.97 $3.99 ROGERS COMMUNICATIONS INC. 5 6 7 14 10 11 12 13 14 Note 7, 8, 9 2019 ANNUAL REPORT Basic Restructuring, acquisition and other Depreciation and amortization Gain on disposition of property, plant and equipment Diluted Operating costs Income tax expense Income before income tax expense Revenue Earnings per share: Finance costs Other income Net income for the year 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 2019 2018 Net income for the year 2,043 2,059 Other comprehensive income (loss): Items that will not be reclassified to net income: Defined benefit pension plans: Remeasurements 23 (159) 53 Related income tax recovery (expense) 40 (12) Defined benefit pension plans (119) 41 Equity investments measured at fair value through other comprehensive income (FVTOCI): Increase (decrease) in fair value 18 737 (440) Related income tax (expense) recovery (104) 63 Equity investments measured at FVTOCI 633 (377) Items that will not be reclassified to net income 514 (336)

Items that may subsequently be reclassified to net income: Cash flow hedging derivative instruments: Unrealized gain in fair value of derivative instruments 66 725 Reclassification to net income of loss (gain) on debt derivatives 458 (671) Reclassification to net income or property, plant and equipment of gain on expenditure derivatives (61) (8) Reclassification to net income for accrued interest (46) (43) Related income tax expense (29) (65) Cash flow hedging derivative instruments 388 (62) Equity-accounted investments: Shareofothercomprehensive(loss)incomeof equity-accounted investments, net of tax (8) 14 Equity-accounted investments (8) 14 Items that may subsequently be reclassified to net income 380 (48) Other comprehensive income (loss) for the year 894 (384) Comprehensiveincomefortheyear 2,937 1,675

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

98 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 99 | As at December 31 873522 87 35 22 132233190 132 233 – 546 546 405 405 900 900 177 177 466 466 436 459 270 270 535132 535 132 As at 2019 2018 6,971 6,836 2,255 2,255 1,3552,9018,156 – 2,910 8,179 2,997 3,052 2,236 2,236 1,052 1,052 4,865 4,888 7,205 7,205 2,134 2,134 1,339 1,339 3,905 3,905 25,22033,376 23,739 31,918 13,390 13,390 13,261 11,780 33,376 31,918 ROGERS COMMUNICATIONS INC. January 1 (see note 2) (see note 15) – 50 36 90 48 141 224 230 614 494 460 524 101 557 275 As at 2019 5,964 2,238 1,495 3,437 9,416 3,033 2,304 1,234 5,117 8,905 2,830 1,478 3,923 27,603 37,019 15,967 13,934 37,019 2019 ANNUAL REPORT December 31 5 8 8 5 9 5 9 19 20 21 17 20 21 17 22 13 24 27 28 24 15 16 17 18 17 7, 8 Note John H. Clappison, FCPA, FCA Director Accounts payable and accrued liabilities Income tax payable Contract liabilities Current portion of long-term debt Current portion of derivative instruments Cash and cash equivalents Accounts receivable Inventories Current portion of lease liabilities Other current liabilities Current portion of contract assets Other current assets Current portion of derivative instruments Short-term borrowings Total current liabilities Long-term debt Lease liabilities Provisions Other long-term liabilities Total liabilities Total liabilities and shareholders’ equity Shareholders’ equity Guarantees 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) Deferred tax liabilities Assets Current assets: Derivative instruments Total current assets Property, plant and equipment Intangible assets Investments Derivative instruments Contract assets Other long-term assets Goodwill Total assets Liabilities and shareholders’ equity Current liabilities: 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, 2019 Amount (000s) Amount (000s) earnings reserve reserve reserve equity Balances, December 31, 2018 71 111,155 406 403,657 7,182 636 (125) 9 8,179 Adjustments pertaining to IFRS 16 adoption (see note 2) – – – – (23) – – – (23) Balances, January 1, 2019 (restated, see note 2) 71 111,155 406 403,657 7,159 636 (125) 9 8,156 Net income for the year – – – – 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

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, 2018 Amount (000s) Amount (000s) earnings reserve reserve reserve equity Balances, January 1, 2018 72 112,407 405 402,403 6,070 1,013 (63) (5) 7,492 Net income for the period – – – – 2,059 – – – 2,059 Other comprehensive income (loss): Defined benefit pension plans, net of tax – – – – 41 – – – 41 FVTOCI investments, net of tax – – – – – (377) – – (377) Derivative instruments accounted for as hedges, net of tax – – – – – – (62) – (62) Share of equity-accounted investments, net of tax – – – – – – – 14 14 Total other comprehensive income (loss) – – – – 41 (377) (62) 14 (384) Comprehensive income (loss) for the year – – – – 2,100 (377) (62) 14 1,675 Transactions with shareholders recorded directly in equity: Dividends declared – – – – (988) – – – (988) Shares issued on exercise of stock options – – – 2 – – – – – Share class exchange (1) (1,252) 1 1,252 – – – – – Total transactions with shareholders (1) (1,252) 1 1,254 (988) – – – (988) Balances, December 31, 2018 71 111,155 406 403,657 7,182 636 (125) 9 8,179

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

100 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 101 | – – – – – (6) 25 33 58 (54) (44) (18) (16) 508 411 405 758 388 793 (823) (125) (988) (933) (726) (370) (114) (354) 2018 4,288 5,384 5,498 2,059 2,211 (2,944) (2,790) – 30 89 21 46 77 (35) (19) (60) (84) (75) (61) 405 175 494 712 840 (655) (779) (400) (138) (167) (204) (121) 2019 2,184 4,526 5,705 5,843 2,488 2,043 (1,016) (4,612) (1,731) (2,807) ROGERS COMMUNICATIONS INC. 9 9 7 8 5 9 21 19 24 24 29 17 23 21 13 17 11 7, 29 Note 7, 8, 9 2019 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: ore changes in non-cash working capital ransactions, net of cash acquired Gain on disposition of property, plant and equipment Net change in financing receivable balances Other Net change in contract asset balances Post-employment benefits contributions, net of expense Program rights amortization Income tax expense Depreciation and amortization Finance costs assets items, income taxes paid, and interest paid Net (payments) proceeds on settlement of debt derivatives and forward contracts Net issuance (repayment) of long-term debt Net proceeds received on short-term borrowings Acquisitions and other strategic t Changes in non-cash working capital relat Additions to program rights Other Dividends paid Other Capital expenditures Interest paid Income taxes paid Cash provided by operating activities before income taxes paid and interest paid Principal payments of lease liabilities Repurchase of Class B Non-Voting Shares Change in non-cash operating working capital items Cash provided by operating activities bef Transaction costs incurred Adjustments to reconcile net income to c Net income for the year Cash and cash equivalents (bank advances), beginning of year Financing activities: Cash provided by (used in) financing activities Change in cash and cash equivalents Cash and cash equivalents, end of year Cash and cash equivalentsadvances. are defined as cash and short-term depos Cash used in investing activities Investing activities: Cash provided by operating 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. RCI also holds interests in various investments and ventures. Page Note Page Note 102 Note 1 Nature of the Business 121 Note 16 Inventories 103 Note 2 Significant Accounting Policies 121 Note 17 Financial Risk Management and Financial 106 Note 3 Capital Risk Management Instruments 106 Note 4 Segmented Information 130 Note 18 Investments 108 Note 5 Revenue 131 Note 19 Short-Term Borrowings 110 Note 6 Operating Costs 133 Note 20 Provisions 111 Note 7 Property, Plant and Equipment 134 Note 21 Long-Term Debt 113 Note 8 Leases 137 Note 22 Other Long-Term Liabilities 115 Note 9 Intangible Assets and Goodwill 137 Note 23 Post-Employment Benefits 118 Note 10 Restructuring, Acquisition and Other 140 Note 24 Shareholders’ Equity 118 Note 11 Finance Costs 141 Note 25 Stock-Based Compensation 118 Note 12 Other (Income) Expense 144 Note 26 Related Party Transactions 118 Note 13 Income Taxes 145 Note 27 Guarantees 120 Note 14 Earnings Per Share 145 Note 28 Commitments and Contingent Liabilities 121 Note 15 Accounts Receivable 147 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. Fluctuations in net income from quarter to quarter can also be attributed to losses Wireless Wireless telecommunications operations on the repayment of debt, other income and expenses, for Canadian consumers and businesses. impairment of assets, and changes in income tax expense. Cable Cable telecommunications operations, including Internet, television, telephony Wireless (phone), and smart home monitoring Wireless operating results are influenced by the timing of our services for Canadian consumers and marketing and promotional expenditures and higher levels of businesses, and network connectivity subscriber additions and related subsidies, resulting in higher through our fibre network and data centre subscriber acquisition- and activation-related expenses, typically in assets to support a range of voice, data, the third and fourth quarters. The third and fourth quarters typically networking, hosting, and cloud-based experience higher volumes of activity as a result of “back to school” services for the business, public sector, and holiday season-related consumer behaviour. Aggressive and carrier wholesale markets. promotional offers are often advertised during these periods. In contrast, we typically see lower subscriber-related activity in the first Media A diversified portfolio of media properties, quarter of the year. including sports media and entertainment, television and radio broadcasting, The launch of new products and services, including popular new specialty channels, multi-platform wireless device models, can also affect the level of subscriber shopping, and digital media. activity. Highly anticipated device launches typically occur in the fall season of each year. Wireless roaming revenue is dependent on During the year ended December 31, 2019, Wireless and Cable customer travel volumes and timing, and is also impacted by were operated by our wholly owned subsidiary, Rogers foreign exchange rates and general economic conditions. Communications Canada Inc. (RCCI), and certain other wholly owned subsidiaries. Media was operated by our wholly owned subsidiary, Rogers Media Inc., and its subsidiaries.

102 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 103 | ROGERS COMMUNICATIONS INC. tion of the assets we transferred 2019 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 amortization – at thetransaction was average recognized. rate for the month in which the • 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 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 5, 2020. these consolidated financial (d) BUSINESS COMBINATIONS We accountmethod for of accounting. business Onlycontrol acquisitions combinations over that the result acquired using in businessescombinations. our are the accounted gaining for We as acquisition business conclude possess we are exposed control towith variable over the returns from acquired our anreturns involvement entity through our and entity power over we the acquired when have entity. theWe we calculate ability the to fair valuethe affect of fair those the value consideration at paid theand as date the the equity of interests sum acquisi we of issued,acquire less the the subsidiary. liabilities we assumed to We measuretransferred goodwill less as theassets the net fair acquired recognizedmeasured value and amount at fair of of value liabilities asis the the of negative, assumed, the a identifiable consideration acquisition gain date. which onincome. When acquisition the is are excess recognized immediately generally in net We expense the transactionwe incur costs them. associated with acquisitions as STATEMENT OF COMPLIANCE • revenue and expenses other than depreciation and • 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 at the date of the Consolidated Statements of Financial Position; amortization – at the historical exchange rates; and 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 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 vacations or seasonal relocations; and quarter. (c) FOREIGN CURRENCY TRANSLATION We translate amountsCanadian dollars as denominated follows: in• foreign monetary assets currencies and liabilities into – at the• exchange rate non-monetary in assets effect and as liabilities, and related depreciation and (b) BASIS OF CONSOLIDATION Subsidiaries arestatements entities we ofstatements control. our from the We date subsidiaries weceases. include gain We control in the of eliminate them allbetween until our financial our our intercompany subsidiaries control on transactions consolidated consolidation. and balances financial for: • certain financial instruments as disclosed in• note the 17, which net are deferred• pension liabilities for liability, stock-based compensation, which which are measured is at measured as (a) BASIS OF PRESENTATION All amounts are infunctional Canadian dollars currency unlessconsolidated otherwise is financial noted. statement the Our Canadian dollar. We prepare the NOTE 2: SIGNIFICANT ACCOUNTING POLICIES • the Major League Baseball season, where: Cable results from our enterpris Media Seasonal fluctuations relate to: • periods of increased consumer activity and their impact on Cable Cable’s operatingfluctuations, typically results caused by: are• university affected and college by students who modest live seasonal in residences moving • individuals temporarily• suspending the concentrated service marketing we generally for conduct in our extended fourth any unique seasonal aspects. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(e) NEW ACCOUNTING PRONOUNCEMENTS ADOPTED IN We adopted IFRS 16 with the cumulative effect of initial application 2019 recognized as an adjustment to retained earnings within We adopted the following IFRS amendments in 2019. They did not shareholders’ equity on January 1, 2019. We have not restated have a material effect on our financial statements. comparatives for 2018. At transition, we applied the practical • Amendments to IAS 19, Employee Benefits, providing guidance expedient that allows us to maintain our lease assessments made on accounting for defined benefit plans that have been under IAS 17 and IFRIC 4 for existing contracts. Therefore, the amended, curtailed, or settled during a period. definition of a lease under IFRS 16 was applied only to contracts • Amendments to IAS 23, Borrowing Costs,clarifyingthe entered into or changed after January 1, 2019. requirement that borrowings made specifically to finance For leases that were classified as operating leases under IAS 17, construction of qualifying assets become part of a pool of lease liabilities at transition have been measured at the present general borrowings after completion. value of remaining lease payments, discounted at the related • Amendments to IAS 28, Investments in Associates and Joint incremental borrowing rate as at January 1, 2019. Generally, right- Ventures, clarifying the requirement in applying IFRS 9, Financial of-use assets at transition have been measured at an amount equal Instruments including its impairment requirements, to long-term to the corresponding lease liabilities, adjusted for any prepaid or interests in an associate or joint venture that, in substance, form accrued rent relating to that lease. For certain leases where we have part of the net investment in the associate or joint venture but to readily available information, we have elected to measure the which the equity method is not applied. right-of-use assets at their carrying amounts as if IFRS 16 had been • Amendments to IFRS 3, Business Combinations and IFRS 11, applied since the lease commencement date using the related Joint Arrangements, clarifying the distinction between a business incremental borrowing rate for the remaining lease period as at andagroupofassetstoaidinapplyingIFRS3. January 1, 2019. • Amendments to IFRIC 23, Uncertainty over Income Tax Treatments, aiming to reduce diversity in how companies When applying IFRS 16 to leases previously classified as operating recognize and measure a tax liability or tax asset when there is leases, the following practical expedients were available to us. We uncertainty over income tax treatments. have: • applied a single discount rate to a portfolio of leases with similar Additionally, we adopted IFRS 16, Leases (IFRS 16) effective characteristics; January 1, 2019. The effects this new pronouncement has on our • excluded initial direct costs from measuring the right-of-use asset results and operations are described below. as at January 1, 2019; • used hindsight in determining the lease term where the contract IFRS 16, LEASES contains purchase, extension, or termination options; and Effective January 1, 2019, we adopted IFRS 16, which supersedes • relied upon our assessment of whether leases were onerous previous accounting standards for leases, including IAS 17, Leases under the requirements of IAS 37, Provisions, contingent (IAS 17) and IFRIC 4, Determining whether an arrangement liabilities and contingent assets as at December 31, 2018 as an contains a lease (IFRIC 4). alternative to reviewing our right-of-use assets for impairment. IFRS 16 introduced a single accounting model for lessees. A lessee We have elected to not separate fixed non-lease components from is generally required to recognize, on its statement of financial lease components and instead account for each lease component position, a right-of-use asset, representing its right to use the and associated fixed non-lease components as a single lease underlying leased asset, and a lease liability, representing its component. On transition, we have not elected the recognition obligation to make lease payments. As a result of adopting IFRS 16, exemptions on short-term leases or low-value leases; however, we we have recognized a significant increase to both assets and may choose to elect the recognition exemptions on a class-by-class liabilities on our Consolidated Statements of Financial Position, as basis for new classes, and lease-by-lease basis, respectively, in the well as a decrease to operating costs (for the removal of rent future. expense for leases), an increase to depreciation and amortization (due to depreciation of the right-of-use asset), and an increase to There was no significant impact for contracts in which we are the finance costs (due to accretion of the lease liability). The accounting lessor. treatment for lessors remains largely the same as under IAS 17.

104 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 105 | and Insurance transition as at Subsequent to January 1, 2019 Interest Rate , seeking to provide transition ROGERS COMMUNICATIONS INC. Effect of IFRS 16 – 190– 1,355 190 1,355 873522 – – – 87 35 22 405466459270 – – (23) –535 405 132 466 436 270 – –177132233900 535 132 – – – –546 177 132 233 900 – 546 , a replacement of IFRS 4, 2,2361,0524,888 –7,205 –2,1341,339 (23) 2,236 3,905 1,052 – – 4,865 –2,255 – 7,205 2,134 1,339 3,905 –6,836 2,255 1352,9108,179 6,971 (9) (23) 2,901 8,156 11,780 1,48131,918 13,261 1,458 33,376 13,39023,739 –31,918 1,481 13,390 1,458 25,220 33,376 Presentation of Financial Statements tements in future periods: (see note 15) , seeking to reduce uncertainty and 2019 ANNUAL REPORT Conceptual Framework As reported as at December 31, 2018 that aims to provide consistency in the application of Insurance Contracts Accounting Policies, Changes in Accounting Estimates and , clarifying the definition of “material”. Contracts, accounting for insurance contracts. Benchmark Reform diminishing long-termbenchmarks used in viability globaloffer financial rates (IBORs). markets, of such as interbank certain interest rate IAS 8, Errors improvements toreporting considerations and existing concepts IFRS standards. surrounding various financial • Amendments to IFRS 9, IAS 39, and IFRS 7, • IFRS 17, (f) RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED IN 2019 The IASB has issued theeffective following new in standards that aconsolidated will financial sta become future year and could have an impact on• our Amendments to IAS 1, • Changes to the nsolidated statement of financial position as at January 1, 2019. tement of financial position as at January 1, 2019 lease liabilities recognized on Cash and cash equivalents Accounts receivable Inventories Current portion of contract assets Other current assets Current portion of derivative instruments Short-term borrowings Accounts payable and accrued liabilitiesIncome tax payable Other current liabilities Contract liabilities Current portion of long-term debt Current portion of derivative instruments Current portion of lease liabilities 3,052 (55) 2,997 Current assets: Total current assets Current liabilities: Total current liabilities commitments relating toor reasonably extension certain optionsDecember renewal that 31, had periods 2018; partially not offset yet by been exercised aslease at contracts but which dolease not qualify liability, to be such accountedindex for as or as rate. a variable lease payments not tied to an Assets Property, plant and equipment Intangible assets Investments Derivative instruments Contract assets Other long-term assets Goodwill Total assets Liabilities and shareholders’ equity Provisions Long-term debt Derivative instruments Lease liabilities Other long-term liabilities Deferred tax liabilities Total liabilities Shareholders’ equity Total liabilities and shareholders’ equity See note 8judgments, for we use the to account accounting for leases. policies, including estimates and Prior to adoptingcommitments IFRS as 16, atweighted December our average discount 31, total rate 2018 applied to minimumon were the total transition operating $979 lease was payments million. lease 3.82%.minimum The The lease difference payments set betweenFinancial out the Statements in total Note and of 27transition the the was to total a our result of: 2018• Annual the inclusion of lease• the payments effect of discounting• on the certain beyond minimum lease costs payments; and to minimum which we are contractually committed under Below is the effect of transition to IFRS 16 on our condensed co (In millions of dollars) Reconciliation of condensed consolidated sta NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

We do not expect IFRS 17, Insurance Contracts, will have an effect report as assets, liabilities, revenue, and expenses. Our significant on our consolidated financial statements. We are assessing the accounting policies, estimates, and judgments are identified in this impacts, if any, the remaining new standards or amendments will note or disclosed throughout the notes as identified in the table have on our consolidated financial statements. below, including: • information about assumptions and estimation uncertainties that (g) ADDITIONAL SIGNIFICANT ACCOUNTING POLICIES, have a significant risk of resulting in a material adjustment to the ESTIMATES, AND JUDGMENTS amounts recognized in the consolidated financial statements; When preparing our consolidated financial statements, • information about judgments made in applying accounting management makes judgments, estimates, and assumptions that policies that have the most significant effect on the amounts affect how accounting policies are applied and the amounts we recognized in the consolidated financial statements; and • information on our significant accounting policies.

Note Topic Page Accounting Policy Use of Estimates Use of Judgments 4 Reportable Segments 106 X X 5 Revenue Recognition 108 X X X 7 Property, Plant and Equipment 111 X X X 8 Leases 113 X X X 9 Intangible Assets and Goodwill 115 X X X 13 Income Taxes 118 X X 14 Earnings Per Share 120 X 15 Accounts Receivable 121 X 16 Inventories 121 X 17 Financial Instruments 121 X X X 18 Investments 130 X 20 Provisions 133 X X X 23 Post-Employment Benefits 137 X X 25 Stock-Based Compensation 141 X X 28 Commitments and Contingent Liabilities 145 X X

NOTE 3: CAPITAL RISK MANAGEMENT

Our objectives in managing capital are to ensure we have sufficient We monitor debt leverage ratios as part of the management of liquidity to meet all of our commitments and to execute our liquidity and shareholders’ return to sustain future development of business plan. We define capital that we manage as shareholders’ the business, conduct valuation-related analyses, and make equity and indebtedness (including the current portion of our long- decisions about capital. term debt, long-term debt, short-term borrowings, the current The wholly owned subsidiary through which our Rogers World Elite portion of our lease liabilities, and lease liabilities). Mastercard, Rogers Platinum Mastercard, and Fido Mastercard We manage our capital structure, commitments, and maturities programs are operated is regulated by the Office of the and make adjustments based on general economic conditions, Superintendent of Financial Institutions, which requires that a financial markets, operating risks, our investment priorities, and minimum level of regulatory capital be maintained. Rogers’ working capital requirements. To maintain or adjust our capital subsidiary was in compliance with that requirement as at structure, we may, with approval from the Board, issue or repay December 31, 2019 and 2018. The capital requirements are not debt and/or short-term borrowings, issue or repurchase shares, pay material to the Company as at December 31, 2019 or dividends, or undertake other activities as deemed appropriate December 31, 2018. under the circumstances. The Board reviews and approves the With the exception of the Rogers World Elite Mastercard, annual capital and operating budgets, as well as any material Rogers Platinum Mastercard, and Fido Mastercard programs transactions that are not part of the ordinary course of business, and the subsidiary through which they are operated, we are including proposals for acquisitions or other major financing not subject to externally imposed capital requirements. Our transactions, investments, or divestitures. overall strategy for capital risk management has not changed since December 31, 2018.

NOTE 4: SEGMENTED INFORMATION

ACCOUNTING POLICY operations and performance. They review adjusted EBITDA as the Reportable segments key measure of profit for the purpose of assessing performance of We determine our reportable segments based on, among other each segment and to make decisions about the allocation of things, how our chief operating decision maker, the Chief Executive resources, as they believe adjusted EBITDA reflects segment and Officer and Chief Financial Officer of RCI, regularly review our consolidated profitability. Adjusted EBITDA is defined as income

106 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 107 | (16) (32) (10) 210 139 793 840 totals totals 2,211 2,488 2,817 2,755 Consolidated Consolidated items and items and ROGERS COMMUNICATIONS INC. Corporate Corporate eliminations eliminations 2019 ANNUAL REPORT 9,200 3,932 2,168 (204) 15,096 5,110 2,058 1,972 (27) 9,113 9,250 3,954 2,072 (203) 15,073 4,905 2,035 1,932 (11) 8,861 1,086 1,429 90 185 2,790 1,320 1,153 102 232 2,807 1,160 1,808 937 – 3,905 1,160 1,808 955 – 3,923 Wireless Cable Media Wireless Cable Media 5 6 7 5 6 9 9 10 10 11 11 12 12 7, 29 7, 29 Note Note 7, 8, 9 7, 8, 9 EXPLANATORY INFORMATION Our reportable(see note segments 1). All areCorporate three segments Wireless, items operatebusinesses substantially that Cable, and in are Canada. not andadministrative reportable eliminations functions, operating and segments, eliminations Media include corporate ofand inter-segment revenue costs. our Segment resultssegment include interests as items well directly in attributable asbasis. to those a that can be allocated on a reasonable from which they mayoperating earn revenue results and are incurdecision makers regularly expenses, to for make reviewed which decisions aboutand by resources to our be assess allocated chieffinancial component information operating is available. performance, and for which discrete ion; (gain) loss on disposition of 1 1 Includes proceeds on disposition of $25 million (see note 29). Includes proceeds on disposition of $38 million (see note 29). Revenue Operating costs Gain on disposition of property, plantRestructuring, and acquisition equipment and other Revenue Adjusted EBITDADepreciation and amortization 4,090 1,874 196 (177) 5,983 Operating costs Restructuring, acquisition and other Finance costs Adjusted EBITDADepreciation and amortization 4,345 1,919 140 (192) 6,212 Finance costs Other income Income before income tax expense Capital expenditures Other income Income before income tax expense Capital expenditures Goodwill Goodwill Total assets 16,572 7,666 2,438 5,242 31,918 Total assets 20,105 7,891 2,550 6,473 37,019 1 Year ended December 31, 2018 (In millions of dollars) 1 Year ended December 31, 2019 (In millions of dollars) INFORMATION BY SEGMENT USE OF ESTIMATES AND JUDGMENTS JUDGMENTS We make significantsegments. These are judgments components that in engage in determining business activities our operating before depreciation and amortizat property, plantother; and finance equipment; costs;expense. restructuring, other acquisition expense and (income);We and follow the income same accounting tax described policies for in our the segments asWe notes those account to for our transactionssame consolidated between way reportable financial segments we statements. ineliminate account them the on for consolidation. transactions with external parties, but NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5: REVENUE

ACCOUNTING POLICY distinct good or service. We also determine whether a customer Contracts with customers can modify their contract within predefined terms such that we are We record revenue from contracts with customers in accordance not able to enforce the transaction price agreed to, but can only with the five steps in IFRS 15, Revenue from contracts with contractually enforce a lower amount. In situations such as these, customers as follows: we allocate revenue between performance obligations using the 1. identify the contract with a customer; minimum enforceable rights and obligations and any excess 2. identify the performance obligations in the contract; amount is recognized as revenue as it is earned. 3. determine the transaction price, which is the total Revenue for each performance obligation is recognized either over consideration provided by the customer; time (e.g. services) or at a point in time (e.g. equipment). For 4. allocate the transaction price among the performance performance obligations satisfied over time, revenue is recognized obligations in the contract based on their relative fair as the services are provided. These services are typically provided, values; and and thus revenue is typically recognized, on a monthly basis. 5. recognize revenue when the relevant criteria are met for Revenue for performance obligations satisfied at a point in time is each performance obligation. recognized when control of the item (or service) transfers to the Many of our products and services are sold in bundled customer. Typically, this is when the customer activates the goods arrangements (e.g. wireless devices and voice and data services). (e.g. in the case of a wireless device) or has physical possession of Items in these arrangements are accounted for as separate the goods (e.g. other equipment). performance obligations if the item meets the definition of a The table below summarizes the nature of the various performance obligations in our contracts with customers and when we recognize performance on those obligations.

Performance obligations from contracts with customers Timing of satisfaction of the performance obligation Wireless airtime, data, and other services; television, telephony, As the service is provided (usually monthly) Internet, and smart home monitoring services; network services; media subscriptions; and rental of equipment Roaming, long-distance, and other optional or non-subscription As the service is provided services, and pay-per-use services Wireless devices and related equipment Upon activation or purchase by the end customer Installation services for Cable subscribers When the services are performed Advertising When the advertising airs on our radio or television stations or is displayed on our digital properties Subscriptions by television stations for subscriptions from cable When the services are delivered to cable and satellite providers’ and satellite providers subscribers (usually monthly) Toronto Blue Jays’ home game admission and concessions When the related games are played during the baseball season and when goods are sold Toronto Blue Jays revenue from the Major League Baseball When the amount is determinable Revenue Sharing Agreement, which redistributes funds between member clubs based on each club’s relative revenue Radio and television broadcast agreements When the related programs are aired Sublicensing of program rights Over the course of the applicable licence period

We also recognize interest revenue on credit card receivables using the performance obligation is conditional on satisfying other the effective interest method in accordance with IFRS 9. performance obligations. Contract assets primarily relate to our rights to consideration for the transfer of wireless devices. Payment for Wireless and Cable monthly service fees is typically due 30 days after billing. Payment for Wireless and Cable equipment is We record a contract liability when we receive payment from a typically due either upon receipt of the equipment or over the customer in advance of providing goods and services. This includes subsequent 24 months (when equipment is financed through our subscriber deposits, deposits related to Toronto Blue Jays ticket equipment financing plans). Payment terms for typical Media sales, and amounts subscribers pay for services and subscriptions performance obligations range from immediate (e.g. Toronto Blue that will be provided in future periods. Jays tickets) to 30 days (e.g. advertising contracts). We account for contract assets and liabilities on a contract-by-contract basis, with each contract presented as either a Contract assets and liabilities netcontractassetoranetcontractliabilityaccordingly. We record a contract asset when we have provided goods and services to our customer but our right to related consideration for

108 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 109 | 223 233 278 (268) 2018 2018 1,587 1,572 1,233 (1,218) 213 224 233 (222) 2019 2019 1,791 1,653 1,587 (1,449) ROGERS COMMUNICATIONS INC. Years ended December 31 Years ended December 31 2019 ANNUAL REPORT accounts receivable customers, net of terminations and renewals customers recognized as revenue in current year Balance, end of year Amortization of contract assets to EXPLANATORY INFORMATION CONTRACT ASSETS Below is acontract summary of assetssignificant the changes current from inDecember and those 31, long-term contracts 2019 balances portions and during of with 2018. the years customers ended and the CONTRACT LIABILITIES Below is a summary of thecontracts current portion with of contract customers liabilitiesbalances from during and the years ended the December 31, significant 2019 and 2018. changes in those (In millions of dollars) Additions from new contracts with (In millions of dollars) Net additions from contracts with Balance, end of year products and services separately ifor they service are is distinct separately (i.e. identifiable ifpackage from a and other product if items the in customer the canis bundled benefit allocated from it). between The separate consideration based products on their and stand-alone servicesseparately selling in prices. (e.g. a For items bundle third-party weselling prices do gift using not the adjusted sell cards), market assessment we approach. estimate stand-alone Determining costs to obtain or fulfillDetermining a contract the costs wemeet incur the to obtain deferralsignificant or criteria judgments. fulfill a within Wepaid contract to expect IFRS that internal and incremental 15 external representativescontracts commission requires with as customers a fees to result us be of recoverable. obtaining to make Residual value arrangements Under certain customercomponent offers, of the we devicejudgment allow cost in until customers determining contract whetherrevenue-generating to termination. these We defer arrangements arrangements use constitute a determination, or we use leases.over judgment the devices to that In assess passes tocustomer the our has customer, making a extent including significant whether of economic the this to incentive control return at the contract device inception at contract termination. Balance, beginning of year Balance, beginning of year Revenue deferred in previous year and s, rebates, refunds, credits, price one selling price is not directly nue-generating arrangements or defer them as deferred commission estimating the amount of revenue wedelivering expect the to performance be obligations entitled within to a for contract; and obligations and the allocationperformance of obligations. the transaction price between Distinct goods and services We make judgments ingoods determining or whether services a is promise considered to distinct. deliver We account for individual leases. JUDGMENTS We make significant judgments into determining deliver whether goods a promise orthe services costs is that considered are distinct,with in incremental a determining to customer, obtainingarrangements and of in fulfilling constitute determining a whether contract reve our residual value observable, we estimate theaccount stand-alone reasonably selling available priceconditions, entity-specific information taking factors, and into relating the class to of customer. theIn determining market 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 concessions, incentives, penalties,reflected in the and transaction price at other contract inception. similar items are 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 that the are customary within that We use estimates in the following• key areas: determining the transaction price of our• determining contracts requires the stand-alone selling price of performance USE OF ESTIMATES AND JUDGMENTS ESTIMATES Deferred commission cost assets We defer, to the extentto recoverable, the obtain incremental or costs we fulfillover incur a their contract expected period withcommissions of a paid benefit. customer to These and internal costsbelieve and amortize include to external them certain representatives be thatrelated recoverable we contracts. through We therefore the revenue earned from the cost assets in otherover assets the and amortize patterncustomer, them which of is to typically the operating evenlymonths. costs over transfer either 12 of or 24 goods consecutive and services to the NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DEFERRED COMMISSION COST ASSETS We have elected to utilize the following practical expedients and Below is a summary of the changes in the deferred commission not disclose: cost assets recognized from the incremental costs incurred to • the unsatisfied portions of performance obligations related to obtain contracts with customers during the years ended contracts with a duration of one year or less; or December 31, 2019 and 2018. The deferred commission cost • the unsatisfied portions of performance obligations where the assets are presented within other current assets (when they will be revenue we recognize corresponds with the amount invoiced to amortized into net income within twelve months of the date of the the customer. financial statements) or other long-term assets. DISAGGREGATION OF REVENUE Years ended December 31 (In millions of dollars) 2019 2018 Years ended December 31 Balance, beginning of year 296 278 (In millions of dollars) 2019 2018 Additions to deferred commission cost Wireless assets 329 340 Service revenue 7,156 7,091 Amortization recognized on deferred Equipment revenue 2,094 2,109 commission cost assets (320) (322) Total Wireless 9,250 9,200 Balance, end of year 305 296 Cable Internet 2,259 2,114 UNSATISFIED PORTIONS OF PERFORMANCE OBLIGATIONS Television 1,430 1,442 The table below shows the revenue we expect to recognize in the Phone 251 363 future related to unsatisfied or partially satisfied performance Service revenue 3,940 3,919 obligations as at December 31, 2019. The unsatisfied portion of the Equipment revenue 14 13 transaction price of the performance obligations relates to monthly services; we expect to recognize it over the next three to five years. Total Cable 3,954 3,932 Total Media 2,072 2,168 (In millions of dollars) 2020 2021 2022 Thereafter Total Corporate items and intercompany Telecommunications eliminations (203) (204) service 2,350 983 186 177 3,696 Total revenue 15,073 15,096

NOTE 6: OPERATING COSTS

Years ended December 31 (In millions of dollars) 2019 2018 Cost of equipment sales 2,254 2,284 Merchandise for resale 242 231 Other external purchases 4,360 4,509 Employee salaries, benefits, and stock-based compensation 2,005 2,089 Total operating costs 8,861 9,113

110 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 111 | ROGERS COMMUNICATIONS INC. r present value. We estimate the 2019 ANNUAL REPORT future cash flowssimilar to for the five-year valueapplying in periods assumptions use consistent methodology and with described thosewould above, a a while make. market terminal participant Future value, cashexpected future flows operating are results basedfuture of on the cash CGU. our flows, Our estimatessimilar estimates terminal of of values, factors andestimates; discount to or rates those consider described aboveof for the valuecomparable CGU entities in and precedent using transactions use in that multiples industry. of operating performance of USE OF ESTIMATES AND JUDGMENTS ESTIMATES Components of anhave item different of property, usefuldetermining plant lives. depreciation rates and We and asset equipment useful maketaking may lives, which significant into require estimates accountexperience when company-specific and factors,technological expected such advancements. as use, ourvalues, We and depreciation past rates, monitor and industry assetand and useful change lives trends, at them review least if such once theyWe residual a are year recognize different as from the ourprospectively. effect previous estimates. of changes in estimatesWe in use net estimates income attributable to to self-constructed determineinclude assets. certain certain internal These costs andinterest estimates that external primarily direct are costs labour,development, directly overhead, or betterment and associated of our networks. withFurthermore, the we use acquisition,amount estimates of property, construction, in plantthe determining and recoverable the equipment. amount Therequires recoverable the for determination use of of the significant estimates, purpose• such as: of future cash impairment flows; • testing terminal growth rates; and • discount rates. We estimate valueestimated future in cash flows use todiscounted thei for future impairment cash testsdepending on by flows the discounting forvalue. cash-generating periods The unit of futureexpected (CGU), up cash future and operating to flows aeconomic results conditions terminal are five and of a based years, general theOur outlook on for CGU discount the rates CGU’s after our consider industry. considering ratios, market estimates and rates certain and of risk premiums, return,value among debt other is to things. the The equity terminal valueprojected attributed time to period thebased CGU’s of on operations expected the economic beyond cash conditions the andthe flows a industry. general using outlook for a perpetuityWe rate determine fair value less costsways: to sell in one of• the following two Analyzing discounted cash flows – we estimate the discounted • Usingamarketapproach–weestimatetherecoverableamount Wemakecertainassumptionswhenderivingexpectedfuturecash flows, which may include assumptions pertaining to discount and Estimated useful life estimated useful life or lease term Straight-line 4 to 10 years condition for their intended use; sites on which they are located (see note 20); and software BuildingsCable and wireless networkComputer equipment and Straight-line 3 to 40 years Diminishing balanceEquipment and 5 vehicles to 40 years Diminishing balance 3 to 20 years AssetCustomer premise equipmentLeasehold improvements Straight-line Basis Straight-line 3 to 6 years Over shorter of Impairment testing, including recognition and measurementimpairment of charge an See “Impairment Testing”impairment in testing and note the 9 relatedof impairment recognition for charges. and The our measurement impairmentand policies policies equipment for are relating property, similar plant to to theassets impairment with finite policies useful for lives. intangible We calculate gains andand equipment losses by on comparing the thethe proceeds disposal from item’s the of carrying disposal property, with amountincome. plant and recognize the gain orWe loss capitalize in development net expendituresfor if recognition as they an meet assetuseful the lives and once criteria amortize the them assets to overWe which their they expected relate expense are availabletraining for research costs use. as incurred. expenditures, maintenance costs, and Recognition and measurement, including depreciation We measurerecognition at property, cost andasset begin plant is recognizing ready depreciation and when forand the its equipment intended equipment is use.and carried accumulated Subsequently, upon impairment at property, losses. cost plant initial less accumulatedCost depreciation includes expenditures (capitalattributable expenditures) that to are directly theconstructed assets includes: acquisition of• the the cost of materials• asset. and direct costs The labour; directly cost associated with of bringing self- • the assets expected costs to of a decommissioning the working items and• restoring the borrowing costs on qualifying assets. We depreciate property, plantuseful and life equipment over byfollows: its charging estimated depreciation expense to net income as The following accountingequipment excluding policy right-of-use assets applies recognized underOur to IFRS 16. property, accounting plant policiesnote 8. and for right-of-use assets are included in NOTE 7: PROPERTY, PLANT AND EQUIPMENT ACCOUNTING POLICY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

terminal growth rates. These assumptions may differ or change JUDGMENTS quickly depending on economic conditions or other events. It is We make significant judgments in choosing methods for therefore possible that future changes in assumptions may depreciating our property, plant and equipment that we believe negatively affect future valuations of CGUs and goodwill, which most accurately represent the consumption of benefits derived could result in impairment losses. from those assets and are most representative of the economic substance of the intended use of the underlying assets.

EXPLANATORY INFORMATION

The table below summarizes our property, plant and equipment as at December 31, 2019, 2018, and 2017.

(In millions of dollars) December 31, 2019 December 31, 2018 December 31, 2017 Net Net Net Accumulated carrying Accumulated carrying Accumulated carrying Cost depreciation amount Cost depreciation amount Cost depreciation amount Land and buildings 1,182 (461) 721 1,125 (428) 697 1,090 (397) 693 Cable and wireless networks 21,778 (13,814) 7,964 21,024 (13,550) 7,474 20,252 (13,206) 7,046 Computer equipment and software 5,903 (3,749) 2,154 5,514 (3,305) 2,209 4,996 (2,807) 2,189 Customer premise equipment 1,963 (1,387) 576 1,908 (1,279) 629 1,565 (1,090) 475 Leasehold improvements 596 (281) 315 539 (250) 289 496 (220) 276 Equipment and vehicles 1,244 (776) 468 1,292 (810) 482 1,246 (782) 464 Property, plant and equipment 32,666 (20,468) 12,198 31,402 (19,622) 11,780 29,645 (18,502) 11,143 Right-of-use assets 1,911 (175) 1,736 –––––– Total 34,577 (20,643) 13,934 31,402 (19,622) 11,780 29,645 (18,502) 11,143

The tables below summarize the changes in the net carrying amounts of property, plant and equipment during 2019 and 2018.

(In millions of dollars) December 31, 2018 December 31, 2019 Net carrying Effect of Disposals Net carrying amount IFRS 16 transition Additions 1 Depreciation and other 2 amount Land and buildings 697 – 57 (34) 1 721 Cable and wireless networks 7,474 (95) 1,739 (1,157) 3 7,964 Computer equipment and software 2,209 – 644 (706) 7 2,154 Customer premise equipment 629 – 236 (292) 3 576 Leasehold improvements 289 – 60 (33) (1) 315 Equipment and vehicles 482 – 109 (75) (48) 468 Property, plant and equipment 11,780 (95) 2,845 (2,297) (35) 12,198 Right-of-use assets (note 8) – 1,576 335 (175) – 1,736 Total property, plant and equipment 11,780 1,481 3,180 (2,472) (35) 13,934

1 Excludes proceeds on disposition of $38 million (see note 29). 2 Includes disposals, reclassifications, and other adjustments.

(In millions of dollars) December 31, 2017 December 31, 2018 Net carrying Disposals Net carrying amount Additions 1 Depreciation and other 2 amount Land and buildings 693 40 (32) (4) 697 Cable and wireless networks 7,046 1,556 (1,128) – 7,474 Computer equipment and software 2,189 653 (633) – 2,209 Customer premise equipment 475 423 (269) – 629 Leasehold improvements 276 44 (31) – 289 Equipment and vehicles 464 99 (81) – 482 Total property, plant and equipment 11,143 2,815 (2,174) (4) 11,780

1 Excludes proceeds on disposition of $25 million (see note 29). 2 Includes disposals, reclassifications, and other adjustments.

112 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 113 | ROGERS COMMUNICATIONS INC. (CPI)orothersimilarindices. ns that result in differing lease 2019 ANNUAL REPORT guarantee; and reasonably certain torenewal exercise, period lease payments ifextension in option, we and an penalties are optional unless for we reasonably are early reasonably termination certain certain not of to terminate a to early. lease exercise an When we act as aeach lessor, lease is we a determine finance at lease or lease an inception operatingIn whether lease. order to classifymake each an overall lease assessment aslessee of either whether substantially finance the orownership all lease operating, of transfers the we of to underlyinglease; the asset. the if If not, it risks it is does, an the and operating lease lease. is rewards a finance incidental to LESSOR ACCOUNTING $38 millionrecognizing a (2018 nil (2018 – – $16 million) gain $25 onAnnually, disposition. we perform million) an analysisthat to for have identify fully been depreciated disposed these assets of.to In 2019, assets, this resulted cost thereby in(2018 an adjustment and –Consolidated $943 Statements accumulated of Income. million). depreciation The disposals of had $1,159 nil impact million on the Lease payments included in theinclude: measurement of the lease• liability fixed payments, including in-substance• fixed payments; variable lease payments that• depend on amounts an index or expected rate; to• be the payable exercise under price a under residual a value purchase option that weThe are lease liability islease remeasured payments when arising from there a isa change in a change an change in index in our orunder rate, future estimate a if of residual there is the valueof guarantee, amount or expected whether if to we be ortermination change payable our option. not assessment When we theway, lease a will corresponding liability adjustment exercise isof is remeasured the a made right-of-use in to asset. purchase, this The thethe lease carrying underlying extension, liability lease amount is contract also or is remeasured amended. when We have elected not toaccount separate for fixed non-lease the componentssingle lease and lease and component. any fixed non-lease components asVariable lease a payments Certain leases containpayments over provisio thechanges in term the Consumer as PriceWe Index a reassess result the leaseindex of liabilities or market related other to ratepayments. data these reviews is leases available when or to the calculateCertain the leases require change us in totaxes, make lease insurance, payments and that other relate non-rentalare to costs. typically These property non-rental variable costs andright-of-use are asset not or included lease liability. in the calculation of the sideration. To assess whether a asset or restore the site on which it is located; less reasonably certain to exercise the option; and reasonably certain not to exercise the option. payments made at or before the commencement date; plus benefits from use ofof the use; identified and asset throughout the period If we expect to obtainthe ownership lease, of we the depreciate leased theasset’s asset right-of-use estimated at asset the over useful end theperiodically life. of underlying reduced In by impairment addition, losses,certain the if remeasurements of any, right-of-use the and lease asset adjusted liability. for is The lease liability ispayments initially measured at that thediscounted present using value are the of interest lease rate not implicitcannot in be the readily lease paid determined, or, our ifgenerally incremental that borrowing at use rate rate. our We the incrementalimplicit borrowing in rate commencement our asliability the date, leases is interest cannot rate subsequentlyeffective be interest measured rate readily method. at determined. amortized The cost lease using the • any initial direct costs• incurred; and an estimate of costs to• dismantle any and lease incentives remove received. theThe underlying right-of-use asset isthe lease depreciated term, on unless we aasset expect at straight-line to the obtain basis end ownership of over of the• the lease. The leased the lease term non-cancellable consists period of: of• the lease; periods covered by options to extend• the periods lease, covered where by options we to are terminate the lease, where we are LESSEE ACCOUNTING We record acommencement right-of-use date. The asset right-of-use asset andcost, is consisting a initially of: measured lease at liability• at the the initial lease amount of the lease liability adjusted for any lease ACCOUNTING POLICY At inception of acontains, contract, a lease. we A assessconveys contract whether the is, that or right contract contains,period to is, a of control or time lease in the if exchange the use for contract of con an identified asset for a NOTE 8: LEASES contract conveys the right towe assess control whether: the use of• an identified the contract asset, involves the• use of we an identified have asset; the right to obtain substantially• all wehavetherighttodirecttheuseoftheasset. of the economic Property, plant and equipment notsubject yet in service to and$1,320 therefore not million depreciation (2018interest – as $1,339 pertaining million).recognized at During to at 2019, December a capitalized (2018 property, – weighted 3.9%). 31, average plant rate 2019 andIn of 2019, approximately we equipment was disposed 3.9% of of was $38 certain assets million with (2018 a – net $9 carrying million). amount We received total proceeds of NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

We act as the lessor on certain collocation leases, whereby, due to commencement, we assess whether we are reasonably certain to certain regulatory requirements, we must allow other exercise any of the extension options based on our expected telecommunication companies to lease space on our wireless economic return from the lease. We are typically reasonably certain network towers. We do not believe we transfer substantially all of of exercising extension options on our leases, especially related to the risks and rewards incidental to ownership of the underlying our networks, primarily due to the significant cost that would be leased asset to the lessee and therefore classify these leases as required to relocate our network towers and related equipment. operating leases. We reassess whether we are reasonably certain to exercise the options if there is a significant event or significant change in If an arrangement contains both lease and non-lease components, circumstance within our control and account for any changes at the we apply IFRS 15, Revenue from contracts with customers to date of the reassessment. allocate the consideration in the contract between the lease and the non-lease components. EXPLANATORY INFORMATION We recognize lease payments received under operating leases into We primarily lease land and buildings relating to our wireless and income on a straight-line basis. All of the leases for which we act as cable networks, our retail store presence, and certain of our offices lessor are classified as operating leases. and other corporate buildings, as well as customer premise equipment. The non-cancellable contract periods for our leases USE OF ESTIMATES AND JUDGMENTS typically range from five to fifteen years. ESTIMATES Operating leases and other rental contracts are for network sites, We estimate the lease term by considering the facts and office premises, and retail outlets across the country. Variable lease circumstances that can create an economic incentive to exercise an payments during 2019 were $22 million. Total rent expense in extension option, or not exercise a termination option. We make 2018 was $228 million. certain qualitative and quantitative assumptions when deriving the value of the economic incentive. LEASE LIABILITIES Below is a summary of the activity related to our lease liabilities for JUDGMENTS the twelve months ended December 31, 2019. Certain of our lease We make judgments in determining whether a contract is or liabilities are secured by the underlying right-of-use assets; the contains a lease, which involves assessing whether a contract underlying right-of-use assets have a net carrying amount of contains an identified asset (either a physically distinct asset or a $114 million. capacity portion that represents substantially all of the capacity of the asset). Additionally, the contract should provide us with the (In millions of dollars) December 31, 2019 right to substantially all of the economic benefits from the use of the asset. Lease liabilities, beginning of year 1,545 Net additions 335 We also make judgments in determining whether we have the right Interest expense on lease liabilities 61 to control the use of the identified asset. We have that right when Interest payments on lease liabilities (49) we have the decision-making rights that are most relevant to Principal payments of lease liabilities (167) changing how and for what purpose the asset is used. In rare cases Lease liabilities, end of year where the decisions about how and for what purpose the asset is 1,725 used are predetermined, we have the right to direct the use of the Current liability 230 asset if we have the right to operate the asset or if we designed the Long-term liability 1,495 asset in a way that predetermines how and for what purpose the asset will be used. Lease liabilities 1,725 We make judgments in determining the incremental borrowing rate used to measure our lease liability for each lease contract, ACCOUNTING POLICY PRIOR TO JANUARY 1, 2019 including an estimate of the asset-specific security impact. The Prior to the adoption of IFRS 16, leases of property, plant and incremental borrowing rate should reflect the interest that we equipment were recognized as finance leases if we obtained would have to pay to borrow the funds necessary to obtain a similar substantially all the risks and rewards of ownership of the asset at a similar term, with a similar security, in a similar economic underlying assets. All other leases were classified as operating environment. leases for which we recognized an operating lease expense in operating costs on the Consolidated Statements of Income on a Certain of our leases contain extension or renewal options that are straight-line basis over the term of the lease. exercisable only by us and not by the lessor. At lease

114 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 115 | ROGERS COMMUNICATIONS INC. the non-controlling interest, if ing the asset’s or CGU’s carrying ights fees, these prepayments are 2019 ANNUAL REPORT IMPAIRMENT TESTING We test intangiblewhenever assets an event with or finitecarrying change in amounts useful circumstances may indicates lives not thatintangible for their assets be and impairment recoverable. goodwill WeOctober for impairment test once 1, indefinite-life perimpairment. year or as at more frequentlyIf we if cannotintangible we estimate asset because the identify itinflows, recoverable we does indicators test amount not the entire of generate of CGU to independent an which cash itGoodwill individual belongs is for impairment. allocated tolevel CGUs (or at groups which of managementhigher CGUs) monitors than based on goodwill, an the which operatingmade to cannot segment. CGUs be The (or allocationfrom groups of the of goodwill CGUs) synergies that is goodwill of arose. are the expected business to benefit combination from whichRecognition the and measurement of an impairmentAn charge intangible assetamount is or less goodwill thanof the a is carrying CGU or amount. impaired asset The is• recoverable if the higher amount fair of the value its: less recoverable costs• to sell; value and in use. If our estimate ofthan the its asset’s or carrying CGU’srecoverable amount, recoverable amount we amount is reduceimmediately. less and its carrying recognize amount to theWe the reverse loss arespect in previously of goodwill, net recognized if ourpreviously impairment estimate income of loss, impaired the except recoverable assetimpairment amount in or of a recognized CGUreversal in has is increased a recognized by suchamount previous increas that to year the ourcarrying has amount new reversed. of the estimatecannot The be asset greater of or than CGU its itsan carrying subsequent impairment amount loss recoverable to had in previous we the amount. years. not reversal recognized The contract towards future years’recognized r asexpenses intangible over the assets contractare term. and made To the for amortizedincluded extent annual in that to other contractual current prepayments assets operating fees onFinancial our Position, within Consolidated Statements as a of thetwelve season, months. rights they will be are consumed within the next Goodwill We recognize goodwill arisingthe from fair business value combinations of when liabilities the separately we identifiable assets assumed(including we the is acquired recognized and lower amount of any). than If the the fair considerationthat value we of the paid of considerationimmediately transferred recognize the the is difference lower as a than gain separately in net income. identified assets and liabilities, we cences, and certain brand names. intended use. purchase taxes, afterand deducting trade discounts and rebates; Intangible asset Estimated useful life Customer relationships 3 to 10 years Finite useful lives We amortize intangibleacquired assets program rights, with into depreciation finite andConsolidated amortization useful on Statements lives, the of other Incometheir than estimated on useful lives a as noted straight-lineand in basis the table review over below. Wemethods the monitor at useful leastdifferent lives, once from our residual per previouschanges estimates. values, year in We estimates and in recognize and net the income change effects amortization prospectively. of them if they are Indefinite useful lives We do not amortize intangible assetsspectrum with licences, broadcast indefinite li lives, including • any directly attributable cost of preparing the asset for its 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 accumulatedCost includes expenditures amortizationacquisition of that the asset. are and The costasset directly of comprises: a separately attributable accumulated acquired intangible to• the its purchase price, including import duties and non-refundable NOTE 9: INTANGIBLE ASSETS AND GOODWILL ACCOUNTING POLICY Acquired program rights Program rights are contractual rightsto we broadcast acquire programs, from including thirdevents. rights parties We to recognize broadcast them liveand at sporting accumulated cost impairment less losses. accumulated Weon amortization capitalize the program rights Consolidatedlicence Statements period of begins Financialamortize and Position them the to when program otherthe the is external available purchases Consolidated for inexhibition use operating Statements period. and costs on of Ifconsider we the Income related have program overOtherwise, no rights we impaired intention the test and to them writefinite expected useful for air them lives. impairment off. programs, as we intangible assetsThe with costs foragreements multi-year are sports recognizedapplicable and seasons in based television operating onaired broadcast expenses the or pattern rights during inprepayments are the which are expected the made rights to at are be the consumed. commencement of To a the multi-year extent that NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

USE OF ESTIMATES AND JUDGMENTS Wemakecertainassumptionswhenderivingexpectedfuturecash ESTIMATES flows, which may include assumptions pertaining to discount and We use estimates in determining the recoverable amount of terminal growth rates. These assumptions may differ or change intangible assets and goodwill. The determination of the quickly depending on economic conditions or other events. It is recoverable amount for the purpose of impairment testing requires therefore possible that future changes in assumptions may the use of significant estimates, such as: negatively affect future valuations of CGUs and goodwill, which • future cash flows; could result in impairment losses. • terminal growth rates; and • discount rates. JUDGMENTS We make significant judgments that affect the measurement of our We estimate value in use for impairment tests by discounting intangible assets and goodwill. estimated future cash flows to their present value. We estimate the discounted future cash flows for periods of up to five years, Judgment is applied when deciding to designate our spectrum depending on the CGU, and a terminal value. The future cash flows and broadcast licences as assets with indefinite useful lives since we are based on our estimates and expected future operating results believe the licences are likely to be renewed for the foreseeable of the CGU after considering economic conditions and a general future such that there is no limit to the period over which these outlook for the CGU’s industry. Our discount rates consider market assets are expected to generate net cash inflows. We make rates of return, debt to equity ratios, and certain risk premiums, judgments to determine that these assets have indefinite lives, among other things. The terminal value is the value attributed to analyzing all relevant factors, including the expected usage of the the CGU’s operations beyond the projected time period of the asset, the typical life cycle of the asset, and anticipated changes in cash flows using a perpetuity rate based on expected economic the market demand for the products and services the asset helps conditions and a general outlook for the industry. generate. After review of the competitive, legal, regulatory, and other factors, it is our view that these factors do not limit the useful We determine fair value less costs to sell in one of the following two lives of our spectrum and broadcast licences. ways: • Analyzing discounted cash flows – we estimate the discounted Judgment is also applied in choosing methods of amortizing our future cash flows for five-year periods and a terminal value, intangible assets and program rights that we believe most similar to the value in use methodology described above, while accurately represent the consumption of those assets and are most applying assumptions consistent with those a market participant representative of the economic substance of the intended use of would make. Future cash flows are based on our estimates of the underlying assets. expected future operating results of the CGU. Our estimates of Finally, we make judgments in determining CGUs and the future cash flows, terminal values, and discount rates consider allocation of goodwill to CGUs or groups of CGUs for the purpose similar factors to those described above for value in use of impairment testing. estimates; or • Usingamarketapproach–weestimatetherecoverableamount of the CGU using multiples of operating performance of comparable entities and precedent transactions in that industry.

EXPLANATORY INFORMATION The table below summarizes our intangible assets as at December 31, 2019, 2018, and 2017.

(In millions of dollars) December 31, 2019 December 31, 2018 December 31, 2017

Cost prior to Accumulated Net Cost prior to Accumulated Net Cost prior to Accumulated Net impairment Accumulated impairment carrying impairment Accumulated impairment carrying impairment Accumulated impairment carrying losses amortization losses amount losses amortization losses amount losses amortization losses amount

Indefinite-life intangible assets: Spectrum licences 8,331 – – 8,331 6,600 – – 6,600 6,600 – – 6,600 Broadcast licences 333 – (99) 234 333 – (99) 234 329 – (99) 230 Brand names 420 (270) (14) 136 420 (270) (14) 136 420 (270) (14) 136 Finite-life intangible assets: Customer relationships 1,611 (1,578) – 33 1,609 (1,562) – 47 1,609 (1,525) – 84 Acquired program rights 253 (77) (5) 171 251 (58) (5) 188 263 (64) (5) 194 Total intangible assets 10,948 (1,925) (118) 8,905 9,213 (1,890) (118) 7,205 9,221 (1,859) (118) 7,244 Goodwill 4,144 – (221) 3,923 4,126 – (221) 3,905 4,126 – (221) 3,905 Total intangible assets and goodwill 15,092 (1,925) (339) 12,828 13,339 (1,890) (339) 11,110 13,347 (1,859) (339) 11,149

116 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 117 | 33 171 234 136 8,734 8,905 3,923 8,331 12,828 amount amount rates (%) Net carrying Net carrying Pre-tax discount 2 1 Other ee note 6), and $37 million in ee note 6), and $16 million in ROGERS COMMUNICATIONS INC. rates (%) 1 Terminal growth Net additions Amortization 2019 ANNUAL REPORT Period of Net flows (years) 234136 – – – – 3,905 18 – 7,017 1,733 (16) projected cash additions Amortization amount Net carrying 7,050 4 (37) – 7,017 amount We didgoodwill not recognize orrecoverable an intangible amounts of impairment the assets CGUs exceeded charge their in carrying values. related 2019 to or our 2018 because the n 2019 to determine recoverable amounts for CGUs, or groups of Net carrying oups of CGUs, correspond to our operating segments as disclosed in g amounts of intangible assets and goodwill in 2019 and 2018. Recoverable amount method or goodwill that we consider significant. Carrying value of indefinite-life intangible assets ssifications, and other adjustments. of goodwill Carrying value depreciation and amortization on the ConsolidatedIncludes Statements disposals, of writedowns, Income. recla Of the $95 million of total amortization, $58 million related to acquired program rights is included in other external purchases in operating costs (s Of the $93 million of total amortization, $77 million related to acquired program rights is included in other external purchases in operating costs (s depreciation and amortization on the Consolidated Statements of Income. Acquired program rightsTotal intangible assetsGoodwill Total intangible assets and goodwill 11,110 188 7,205 1,811 60 1,793 (93) (77) (93) Spectrum licencesBroadcast licences Brand names Customer relationships 6,600 47 1,731 2 – (16) note 4. Below is an overview of the methods and key assumptions we used i (In millions of dollars, except periods used and rates) For purposes of testing goodwill for impairment, our CGUs, or gr Spectrum licencesBroadcast licencesBrand namesCustomer relationshipsAcquired program rightsTotal intangible assetsGoodwillTotal intangible assets and goodwill2 ANNUAL IMPAIRMENT TESTING CGUs, with indefinite-life 6,600 intangible assets 230 84 – 11,149 194 136 4 7,244 – 58 54 – 58 – 3,905 – (37) (95) (58) – – (95) – – – (2) (2) 6,600 (2) – 11,110 234 47 188 – 7,205 136 – 3,905 1 (In millions of dollars) December 31, 2017 December 31, 2018 1 The tables below summarize the changes in the net carryin (In millions of dollars) December 31, 2018 December 31, 2019 Our fair value measurement forfair Media value is hierarchy. classified as Level 3 in the WirelessCableMedia 1,160 1,808 955 8,465 Value in use – 235 Value in use Fair value less cost to sell 5 5 5 0.5 2.0 1.5 8.4 9.8 7.8 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10: RESTRUCTURING, ACQUISITION AND OTHER

During the year ended December 31, 2019, we incurred In 2018, these costs also included certain sports-related contract $139 million (2018 – $210 million) in restructuring, acquisition and termination costs. other expenses. These expenses in 2019 and 2018 primarily consisted of severance costs associated with the targeted restructuring of our employee base and other contract termination costs. NOTE 11: FINANCE COSTS

Years ended December 31 These foreign exchange gains (2018 – losses) were partially offset by the $80 million loss related to the change in fair value of (In millions of dollars) Note 2019 2018 derivatives (2018 – $95 million gain) that was primarily attributed to Interest on borrowings 1 746 709 the debt derivatives, which were not designated as hedges for Interest on post-employment benefits accounting purposes, we used to substantially offset the foreign liability 23 11 14 exchange risk related to these US dollar-denominated borrowings. Loss on repayment of long-term debt 21 19 28 (Gain) loss on foreign exchange (79) 136 During the year ended December 31, 2018, after determining we Change in fair value of derivative would not be able to exercise our outstanding bond forward instruments 80 (95) derivatives (bond forwards) within the designated time frame, we Capitalized interest (19) (20) discontinued hedge accounting and reclassified a $21 million loss Other 21 21 from the hedging reserve within shareholders’ equity to “change in fair value of derivative instruments” within finance costs. We Finance costs before interest on lease subsequently extended the bond forwards and redesignated them liabilities 779 793 as effective hedges. During the year ended December 31, 2019, Interest expense on lease liabilities 8 61 – we exercised these bond forwards. See note 17 for more Total finance costs 840 793 information on our bond forwards.

1 Interest on borrowings includes interest on short-term borrowings and on long-term debt.

FOREIGN EXCHANGE AND CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS We recognized $79 million in net foreign exchange gains in 2019 (2018 – $136 million in net losses). These gains and losses were primarily attributed to our US dollar-denominated commercial paper (US CP) program borrowings (see note 17).

NOTE 12: OTHER (INCOME) EXPENSE

Years ended December 31 (In millions of dollars) Note 2019 2018 Losses from associates and joint ventures 18 25 – Other investment income (35) (32) Total other income (10) (32)

NOTE 13: INCOME TAXES

ACCOUNTING POLICY Income tax expense includes both current and deferred taxes. We Current tax expense is tax we expect to pay or receive based on recognize income tax expense in net income unless it relates to an our taxable income or loss during the year. We calculate the item recognized directly in equity or other comprehensive income. current tax expense using tax rates enacted or substantively We provide for income taxes based on all of the information that is enacted as at the reporting date, including any adjustment to taxes currently available. payable or receivable related to previous years.

118 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 119 | – 5 1 9 (9) 752 758 2018 2,817 26.9% 26.7% – 7 (2) (6) (23) 736 712 2019 2,755 25.8% 26.7% Years ended December 31 ROGERS COMMUNICATIONS INC. deferred cost assets Other Total commission Contract and loss 2019 ANNUAL REPORT Non-capital carryforwards compensation losses change Non-deductible stock-based Non-deductible portion of equity Income tax adjustment, legislative tax Non-taxable portion of capital gains Other resulting from: Income before income tax expense Computed income tax expense Increase (decrease) in income tax expense Below is a summary ofcomputed the difference by between income applying taxbefore expense the income statutory tax income expenseyear. tax and rate the to income tax income expense for the Effectiveincometaxrate Total income tax expense (In millions of dollars, except rates) Statutory income tax rate – Goodwill and other 758 275 275 483 intangibles Investments 2018 Property, plant and (23) equipment 712 443 466 269 2019 and inventory Years ended December 31 tements of Financial Position arise from temporary differences due to legislative changes Revaluation of deferred tax balances Origination of temporary differences current tax assets andand liabilities liabilities will on be a realized and net settled simultaneously. basis or the tax assets income – – (104) – – 11 (93) Total income tax expense Total deferred tax expense (In millions of dollars) Deferred tax expense: December 31, 2018Effect of IFRS 16 adoption (see(Expense) note recovery 2) in net income(Expense) recovery in other comprehensive December 31, 2019 – (221) (1,145) (126) – (1,192) (1,366) 2 (66) – (1,318) (17) 29 (168) – (515) (55) 12 (21) (26) – (570) (2,910) (443) 9 (27) (3,437) 9 Deferred tax assets (liabilities) (In millions of dollars) DEFERRED TAX ASSETS AND LIABILITIES Below is a summary of the movement of net deferred tax assets and liabilities during 2019 and 2018. EXPLANATORY INFORMATION We makeregulations significant when judgments wejudgments in to calculate evaluate interpreting whether income webased can tax tax recover on a rules our expense. deferred tax assessmentprofitability, We asset and of and tax existing make planning strategies. tax laws, estimates of future USE OF ESTIMATES AND JUDGMENTS JUDGMENTS Deferred tax assets and liabilities We recognize a deferredand tax deductible asset temporary differences forthat to unused future taxable the losses, income extent will tax be it credits, available is to use probable the asset. 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 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 intend to settle Total current tax expense NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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, 2017 (1,060) (1,075) (126) 18 (418) 40 (2,621) (Expense) recovery in net income (85) (117) (3) 11 (97) 16 (275) Recovery (expense) in other comprehensive income – – 63 – – (77) (14) December 31, 2018 (1,145) (1,192) (66) 29 (515) (21) (2,910)

We have not recognized deferred tax assets for the following items: There are taxable temporary differences associated with our investments in Canadian domestic subsidiaries. We do not As at December 31 recognize deferred tax liabilities for these temporary differences because we are able to control the timing of the reversal and the (In millions of dollars) 2019 2018 reversal is not probable in the foreseeable future. Reversing these Realized and accrued capital losses in taxable temporary differences is not expected to result in any Canada that can be applied against future significant tax implications. capital gains 41 98 Tax losses in foreign jurisdictions that expire between 2023 and 2038 67 68 Deductible temporary differences in foreign jurisdictions 41 25 Total unrecognized temporary differences 149 191

NOTE 14: EARNINGS PER SHARE ACCOUNTING POLICY EXPLANATORY INFORMATION We calculate basic earnings per share by dividing the net income or loss attributable to our RCI Class A Voting and RCI Class B Years ended December 31 Non-Voting shareholders by the weighted average number of RCI (In millions of dollars, Class A Voting and RCI Class B Non-Voting shares (Class A Shares except per share amounts) 2019 2018 and Class B Non-Voting Shares, respectively) outstanding during the year. Numerator (basic) – Net income for the year 2,043 2,059 We calculate diluted earnings per share by adjusting the net income or loss attributable to Class A and Class B Non-Voting Denominator – Number of shares (in shareholders and the weighted average number of Class A Shares millions): and Class B Non-Voting Shares outstanding for the effect of all Weighted average number of dilutive potential common shares. We use the treasury stock shares outstanding – basic 512 515 method for calculating diluted earnings per share, which considers Effect of dilutive securities (in millions): the impact of employee stock options and other potentially dilutive Employee stock options and instruments. restricted share units 1 1 Options with tandem stock appreciation rights or cash payment Weighted average number of shares alternatives are accounted for as cash-settled awards. As these outstanding – diluted 513 516 awards can be exchanged for common shares of RCI, they are Earnings per share: considered potentially dilutive and are included in the calculation Basic $3.99 $4.00 of our diluted net earnings per share if they have a dilutive impact Diluted $3.97 $3.99 in the period. For the years ended December 31, 2019 and 2018, accounting for outstanding share-based payments using the equity-settled method for stock-based compensation was determined to be more dilutive than using the cash-settled method. As a result, net income for the year ended December 31, 2019 was reduced by $6 million (2018 – $2 million) in the diluted earnings per share calculation. For the year ended December 31, 2019, there were 1,077,875 options out of the money (2018 – 37,715) for purposes of the calculation of earnings per share. These options were excluded from the calculation of the effect of dilutive securities because they were anti-dilutive.

120 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 121 | 67 (55) 466 399 762 2018 2018 2,236 1,529 80 (60) 460 380 785 2019 2019 2,304 1,579 As at December 31 As at December 31 15 Note ROGERS COMMUNICATIONS INC. s receivable” to “other current 2019 ANNUAL REPORT s receivable, financing receivables, debt securities, and accounts ancial assets and financial liabilities are initially recognized on the Total accounts receivable We haveDecember 31, 2018 retrospectively andfinancing January programs 1, from reclassified 2019assets” “account related as to $23 the ouraccounts collection wireless receivable. time million frame of the as amounts differs at from Cost of equipment$2,496 million sales of inventory costs and for 2019 merchandise (2018 – $2,515 for million). resale includes Total inventories Wireless devices and accessories Other finished goods and merchandise (In millions of dollars) EXPLANATORY INFORMATION (In millions of dollars) Customer accounts receivable Other accounts receivable Allowance for doubtful accounts EXPLANATORY INFORMATION ACCOUNTING POLICY Recognition We initially recognize cash andpayable cash and equivalents, accrued bank advances, liabilities account tradedatewhenwebecomeapartytothecontractualprovisionsoftheinstrument. on the date they originate. All other fin NOTE 17: FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS ACCOUNTING POLICY We measuremerchandise for inventories, resale,weighted at average including cost the basisand lower for wireless of Wireless a devices costmerchandise) and (determined devices first-in, accessories and on first-out net a writedown and realizable to basis value. netrecognized for cost, We if realizable the reverse inventories other value, later increase a in not finished value. previous to goods exceed and the original NOTE 16: INVENTORIES Accounts receivable representcurrently amounts due owingreceivable and to on collectible. us thereceivable We initially that at date initially fair value, are theywith and recognize subsequently originate. at accounts changes amortized We cost, impairment recognized measure loss accounts in forcarrying amount accounts net over receivableexpect the income. as to present value the derive Weallowance of from excess for measure future doubtful it, of cash accountsincome. if an flows the and any. we recognized as The a excess loss is in net allocated to an NOTE 15: ACCOUNTS RECEIVABLE ACCOUNTING POLICY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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. The classifications and methods of measurement subsequent to initial recognition of our financial assets and financial liabilities are as follows:

Financial instrument Classification and measurement method Financial assets Cash and cash equivalents Amortized cost Accounts receivable Amortized cost Financing receivables Amortized cost Investments, measured at FVTOCI FVTOCI with no reclassification to net income 1

Financial liabilities Bank advances Amortized cost Short-term borrowings Amortized cost Accounts payable Amortized cost Accrued liabilities Amortized cost Long-term debt Amortized cost Lease liabilities Amortized cost

Derivatives 2 Debt derivatives 3 FVTOCI and FVTPL Bond forwards FVTOCI Expenditure derivatives FVTOCI Equity derivatives FVTPL 4

1 Subsequently measured at fair value with changes recognized in the FVTOCI investment reserve. 2 Derivatives 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 accounting purposes, the effective portionofthehedgeisrecognizedinaccumulatedothercomprehensiveincomeandtheineffectiveportionofthehedgeisrecognizedimmediatelyintonet income. 3 Debt derivatives related to our credit facility and commercial paper borrowings have not been designated as hedges for accounting purposes and are measured at FVTPL. Debt derivatives related to our senior notes and debentures are designated as hedges for accounting purposes and are measured at FVTOCI. 4 Subsequent changes are offset against stock-based compensation expense or recovery in operating costs.

Offsetting financial assets and financial liabilities We offset financial assets and financial liabilities and present the net amount on the Consolidated Statements of Financial Position when we have a legal right to offset them and intend to settle on a net basis or realize the asset and liability simultaneously.

Derivative instruments We use derivative instruments to manage risks related to certain activities in which we are involved. They include:

Derivatives 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 (from time to denominated senior notes and debentures, credit time as necessary) facility borrowings, commercial paper borrowings, and certain lease liabilities Bond forwards Impact of fluctuations in market interest rates on Forward interest rate agreements forecast interest payments for expected long-term debt Expenditure derivatives Impact of fluctuations in foreign exchange rates on Forward foreign exchange agreements and foreign forecast US dollar-denominated expenditures exchange option agreements

Equity derivatives Impact of fluctuations in share price on stock-based Total return swap agreements compensation expense

122 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 123 | ROGERS COMMUNICATIONS INC. we measure an impairment ble, the counterparty is unlikely nvoluntarily), and the risk profile – we measure an impairment loss for – we measure an impairment loss for 2019 ANNUAL REPORT – we measure an impairment loss for contract Contract assets assets based onallocated the to an lifetime allowance expected foras doubtful a credit loss accounts in and losses, net recognized incomeAccounts which (see note is 5). receivable accounts receivable based on the lifetimewhich expected credit is losses, allocatedrecognized to as a an loss in allowance netFinancing income for (see note receivables doubtful 15). accountsfinancing and receivables basedlosses, which on is allocated theand to recognized an lifetime as a allowance loss expected for inInvestments doubtful net credit income. measured accounts at FVTOCIloss – for equity investments measuredthe at cost FVTOCI as to the acquire excesspreviously the of asset recognized) (less over anydifference impairment is its recognized loss in we the current FVTOCI have investment fair reserve. value, if any. The We makefinancial significant judgments instrumentsjudgments in include qualify determining assessingdesignated whether for whether as our thematerialize hedge forecast hedged as transactions accounting. itemsdesignated as forecast, effective These in hedgesto for whether qualitatively hedging accounting be purposes effective, continue the relationshipsdetermine and determining the will the hedging methodology fairhedging relationships. to relationships values used in testing the effectiveness of USE OF ESTIMATES AND JUDGMENTS ESTIMATES Fair value estimates related topoint our in derivatives time are based made on at relevantabout a market the specific information underlying and financial information instruments.assessment These estimates of require the creditthe risk of instruments’ the discount partiesestimates rates. to are These the also instruments used fair in and relationships. values the tests and of underlying effectiveness of our hedging JUDGMENTS Lifetime expected credit losses areevents estimates of over all possible the default month expected expected credit life lossesevents of are estimates within a of twelve financial allexpected possible life instrument. months of default a Twelve- of financial instrument, the whichever is reporting shorter. Financial assets date that are or significant inAll over value are other the assessed individually. financialnature assets of each are asset. assessed collectivelyWe based measure impairment on for financial the assets• as follows: • • • We consider financial assetscontract to assets be and accounts in receiva defaultto when, satisfy in its the obligationsFVTOCI case to cannot us of in default. full. Todefault, Our determine investments we if measured our consider at financialoutstanding, the assets the amount are reason in ofexample, for time if the the for customer has amount whichdeactivated, ongoing whether it being service voluntarily or, or has outstanding if i of they been (for have been thereceivable underlying when customers. theyperiod of We time. have typically been outstanding write-off for accounts a significant Impairment (expected credit losses) We consider the credit riskand at of each a reporting financial period asseta thereafter at until financial it initial is asset recognition derecognized. thatreporting For date is and determined that torisk has since have not initial recognition, low had we credit significant measureon any increases risk the impairment in loss at credit based credit the lossesmonths. we For expect other financial toloss assets, recognize we based over will on the measure the nextsuch an lifetime twelve impairment as expected trade creditfinancing receivables losses. and Certain components, contract assets, expected must assets credit losses. without always significant be recorded at lifetime FVTOCI investment reserve The FVTOCIchange investment in fair value reserve ofFVTOCI our equity represents investments less that areinvestments the and measured accumulated accumulated at amounts accumulated reclassified impairment into equity. losses related to the Deferred transaction costs and discounts We defer transaction costslong-term debt and and discounts direct costs associatedcredit we with pay to issuing facilities lenders to andmethod obtain over certain the amortize life of them the related instrument. using the effective interest Hedging reserve The hedging reservevalue represents of the our derivative accumulated instrumentshedges to change the in extent for they fair werereclassified accounting into effective net income. purposes, less accumulated amounts Hedge ratio Our policy is tofrom hedge principal 100% and ofdenominated senior the interest notes foreign and payment currency debenturesWe obligations also using risk hedge debt arising up on derivatives. towe 100% US of enter the into dollar- remaining debt lease derivativesliabilities. payments on when our We US dollar-denominated typically lease currency expenditures hedge net up ofexpenditure derivatives. foreign to From currency time 100% cash toof time, of inflows the we using hedge forecast interest upusing rate foreign to bond forwards. 100% risk on forecast future senior note issuances We use derivativespurposes. only to manage risk,When and not we forinstrument speculative 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 We assess assess, the on a quarterlycontinues basis, to be whether highly each effective hedgingvalue in instrument or offsetting cash flows the of changes the in item the itWe fair is assess hedging. 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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

EXPLANATORY INFORMATION Below is a summary of the aging of our customer accounts We are exposed to credit, liquidity, market price, foreign exchange, receivable. and interest rate risks. Our primary risk management objective is to As at December 31 protect our income, cash flows, and, ultimately, shareholder value. We design and implement the risk management strategies (In millions of dollars) 2019 2018 discussed below to ensure our risks and the related exposures are Customer accounts receivable (net of consistent with our business objectives and risk tolerance. Below is allowance for doubtful accounts) a summary of our potential risk exposures by financial instrument. Less than 30 days past billing date 1,053 970 30-60 days past billing date 274 300 Financial instrument Financial risks 61-90 days past billing date 90 100 Financial assets Greater than 90 days past billing date 102 104 Cash and cash equivalents Credit and foreign exchange Total 1,519 1,474 Accounts receivable Credit and foreign exchange Financing receivables Credit Below is a summary of the activity related to our allowance for Investments, measured at Liquidity, market price, and doubtful accounts. FVTOCI foreign exchange Years ended December 31 Financial liabilities Bank advances Liquidity (In millions of dollars) 2019 2018 Short-term borrowings Liquidity, foreign exchange, and interest rate Balance, beginning of year 55 61 Accounts payable Liquidity Allowance for doubtful accounts Accrued liabilities Liquidity expense 238 201 Long-term debt Liquidity, foreign exchange, Net use 1 (233) (207) and interest rate Balance, end of year 60 55 Lease liabilities Liquidity and foreign exchange 1 Includes $17 million of recoveries arising from the sale of fully provided for accounts 1 Derivatives receivable for the year ended December 31, 2018. Debt derivatives Credit, liquidity, and foreign exchange We use various controls and processes, such as credit checks, Bond forwards Credit, liquidity, and interest deposits on account, and billing in advance, to mitigate credit risk. rate We monitor and take appropriate action to suspend services when Expenditure derivatives Credit, liquidity, and foreign customers have fully used their approved credit limits or violated exchange established payment terms. While our credit controls and Equity derivatives Credit, liquidity, and market processes have been effective in managing credit risk, they cannot price eliminate credit risk and there can be no assurance that these 1 Derivatives can be in an asset or liability position at a point in time historically or in the controls will continue to be effective or that our current credit loss future. experience will continue.

CREDIT RISK Derivative instruments Credit risk represents the financial loss we could experience if a Credit risk related to our debt derivatives, expenditure derivatives, counterparty to a financial instrument, from whom we have an and equity derivatives arises from the possibility that the amount owing, failed to meet its obligations under the terms and counterparties to the agreements may default on their obligations. conditions of its contracts with us. We assess the creditworthiness of the counterparties to minimize the risk of counterparty default and do not require collateral or Our credit risk exposure is primarily attributable to our accounts other security to support the credit risk associated with these receivable, our financing receivables, and to our debt, expenditure, derivatives. Counterparties to the entire portfolio of our derivatives and equity derivatives. Our broad customer base limits the are financial institutions with a S&P Global Ratings (or the concentration of this risk. Our accounts receivable and financing equivalent) ranging from A to AA-. receivables on the Consolidated Statements of Financial Position are net of allowances for doubtful accounts. LIQUIDITY RISK Liquidity risk is the risk that we will not be able to meet our financial Accounts receivable obligations as they fall due. We manage liquidity risk by managing Our accounts receivable do not contain significant financing our commitments and maturities, capital structure, and financial components and therefore we measure our allowance for doubtful leverage (see note 3). We also manage liquidity risk by continually accounts using lifetime expected credit losses related to our monitoring actual and projected cash flows to ensure we will have accounts receivable. We believe the allowance for doubtful sufficient liquidity to meet our liabilities when due, under both accounts sufficiently reflects the credit risk associated with our normal and stressed conditions, without incurring unacceptable accounts receivable. As at December 31, 2019, $464 million losses or risking damage to our reputation. (2018 – $477 million) of gross accounts receivable are considered past due, which is defined as amounts outstanding beyond normal credit terms and conditions for the respective customers.

124 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 125 | 5years 5years More than More than years years 4to5 4to5 tives. tives. ROGERS COMMUNICATIONS INC. years years 1to3 1to3 1year 1year 2019 ANNUAL REPORT Less than Less than cash flows cash flows Contractual Contractual ncial liabilities and the receivable components of our derivatives – (8,254)– (1,601) – (1,601) – – (1,842) (6,412) – – – (10,780)– (1,593) – (1,593) – – (1,753) (9,027) – – 18,135 18,237 6,061 2,343 1,997 7,836 21,550 22,745 5,476 2,475 2,325 12,469 amount amount Carrying Carrying 5years 5years o an equal amount of US dollar maturities in long-term debt for debt deriva o an equal amount of US dollar maturities in long-term debt for debt deriva More than More than 1 1 1 1 years years 4to5 4to5 years years 1to3 1to3 1year 1year Less than Less than Cash outflow (Canadian dollar)Cash inflow (Canadian dollar equivalent of US dollar)Cash outflow (Canadian dollar)Cash inflow (Canadian dollar equivalent of US dollar) – (1,286) (1,247) – (39) 1,287 – 1,248 – 9,903 39Cash outflow (Canadian dollar) – Cash inflow (Canadian dollar equivalent of – US dollar) –Cash outflow (Canadian dollar)Cash inflow (Canadian dollar equivalent of – US dollar) – – 1,392 (1,473) 8,511 (1,146) – (327) 1,341 – 1,045 – 6,920 296 – – – – – 1,392 5,528 Cash outflow (Canadian dollar)Cash inflow (Canadian dollar equivalent of US dollar) – 1,560 1,560 – – – Cash outflow (Canadian dollar)Cash inflow (Canadian dollar equivalent of US dollar) – 1,622 1,622 – – – Represents Canadian dollar equivalent amount of US dollar inflows matched t Represents Canadian dollar equivalent amount of US dollar inflows matched t Short-term borrowingsAccounts payable and accrued liabilitiesLong-term debtLease liabilitiesOther long-term financial liabilitiesExpenditure derivative instruments: Equity derivative instrumentsDebt derivative instruments accounted for as hedges: 3,033 3,033 2,238 3,033 26 2,238 15,967 – 2,238 26 1,725 16,130Short-term borrowings –Accounts 2,220 payable and – accrued – liabilities –Long-term debt –Other long-term financial liabilities 230Expenditure derivative (55) instruments: 2,050 – 12 – 413Equity (55) derivative 2,353 instrumentsDebt derivative instruments accounted for as 7 hedges: 11,727 – 326 – 3,052 1,251 7 3,052 – 2,255 38 3,052 2,255 – 14,290 38 – 2,255 14,404 – 1 – – 900 (92) 2,350 24 – – (92) 2,442 5 8,712 – – 8 – – Net interest paymentsNet interest payments 735 1,299 1,121 8,763 658 1,141 913 5,923 December 31, 2018 (In millions of dollars) December 31, 2019 (In millions of dollars) 1 Below is a summary oflong-term the net interest debt, payments over includingderivatives, the as life at of the December the 31, 2019 impact and 2018. of the associated debt December 31, 2018 (In millions of dollars) 1 as at December 31, 2019 and 2018. Below is a summary of the undiscounted contractual maturities of our fina December 31, 2019 (In millions of dollars) odowrs–8787––– Debt derivative instruments not accounted for as hedges: Bondforwards Net carrying amount of derivatives (asset) (1,500) Debt derivative instruments not accounted for as hedges: Net carrying amount of derivatives (asset) (1,439) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARKET PRICE RISK Sensitivity analysis Market price risk is the risk that changes in market prices, such as Below is a sensitivity analysis for significant exposures with respect fluctuations in the market prices of our investments measured at to our publicly traded investments, expenditure derivatives, short- FVTOCI or our share price will affect our income, cash flows, or the term borrowings, senior notes, and bank credit facilities as at value of our financial instruments. The derivative instruments we use December 31, 2019 and 2018 with all other variables held to manage this risk are described in this note. constant. It shows how net income and other comprehensive income would have been affected by changes in the relevant risk Market price risk – publicly traded investments variables. We manage risk related to fluctuations in the market prices of our investments in publicly traded companies by regularly reviewing Other publicly available information related to these investments to comprehensive ensure that any risks are within our established levels of risk Net income income tolerance. We do not engage in risk management practices such as (Change in millions of dollars) 2019 2018 2019 2018 hedging, derivatives, or short selling with respect to our publicly Share price of publicly traded traded investments. investments $1 change – – 14 14 Expenditure derivatives – change in Market price risk – Class B Non-Voting Shares foreign exchange rate $0.01 Our liability related to stock-based compensation is remeasured at change in Cdn$ relative to US$ – – 7 8 Short-term borrowings 1% change fair value each period. Stock-based compensation expense is in interest rates 17 17 – – affected by changes in the price of our Class B Non-Voting Shares during the life of an award, including stock options, restricted share units (RSUs), and deferred share units (DSUs). We use equity DERIVATIVE INSTRUMENTS derivatives from time to time to manage the exposure in our stock- As at December 31, 2019 and 2018, all of our US dollar- based compensation liability. As a result of our equity derivatives, a denominated long-term debt instruments were hedged against one-dollar change in the price of a Class B Non-Voting Share fluctuations in foreign exchange rates for accounting purposes. would not have a material effect on net income. Below is a summary of our net asset (liability) position for our various derivatives. FOREIGN EXCHANGE RISK We use debt derivatives to manage risks from fluctuations in As at December 31, 2019 foreign exchange rates associated with our US dollar-denominated Notional Notional Fair long-term debt, short-term borrowings, and lease liabilities. We (In millions of dollars, except amount Exchange amount value designate the debt derivatives related to our senior notes and exchange rates) (US$) rate (Cdn$) (Cdn$) debentures and lease liabilities as hedges for accounting purposes Debt derivatives accounted for against the foreign exchange risk associated with specific debt as cash flow hedges: instruments and lease contracts, respectively. We have not As assets 5,800 1.1357 6,587 1,508 designated the debt derivatives related to our US CP program as As liabilities 2,570 1.3263 3,409 (96) hedges for accounting purposes. We use expenditure derivatives Short-term debt derivatives not to manage the foreign exchange risk in our operations, accounted for as hedges: designating them as hedges for certain of our forecast operational As liabilities 1,223 1.3227 1,618 (29) and capital expenditures. As at December 31, 2019, all of our Net mark-to-market debt US dollar-denominated long-term debt, short-term borrowings, derivative asset 1,383 and lease liabilities were hedged against fluctuations in foreign Expenditure derivatives exchange rates using debt derivatives. With respect to our long- accounted for as cash flow term debt and US CP program, as a result of our debt derivatives, a hedges: one-cent change in the Canadian dollar relative to the US dollar As assets 270 1.2391 335 16 would have no effect on net income. As liabilities 720 1.3228 952 (15) A portion of our accounts receivable and accounts payable and Net mark-to-market expenditure accrued liabilities is denominated in US dollars. Due to the short- derivative asset 1 term nature of these receivables and payables, they carry no Equity derivatives not accounted significant risk from fluctuations in foreign exchange rates as at for as hedges: December 31, 2019. As assets 223 55 Net mark-to-market asset 1,439 INTEREST RATE RISK We are exposed to risk of changes in market interest rates due to the impact this has on interest expense for our short-term borrowings and bank credit facilities. As at December 31, 2019, 87.2% of our outstanding long-term debt and short-term borrowings was at fixed interest rates (2018 – 85.3%).

126 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 127 | (97) 157 388 (157) (140) 2018 Total Total 1,761 1,500 1,439 1,579 1,439 (1,436) 19,211 21,129 18,865 (19,148) (20,741) (18,829) instruments instruments – – (10) 564 (561) 2019 Equity Equity 17,056 17,620 (17,069) (17,630) derivatives derivatives Years ended December 31 ROGERS COMMUNICATIONS INC. derivatives derivatives Expenditure Expenditure 2019 ANNUAL REPORT Bond Bond forwards forwards Debt Debt derivatives derivatives US commercial paper credit facility borrowings senior notes US commercial paper senior notes credit facility borrowings of debt derivatives (unhedged) (unhedged) Below is a summary ofderivatives. the net cash (payments) proceeds on debt Proceeds on debt derivatives related to Proceeds on debt derivatives related to Proceeds on debt derivatives related to Total proceeds on debt derivatives Payments on debt derivatives related to Payments on debt derivatives related to Total payments on debt derivatives (In millions of dollars) Payments on debt derivatives related to Net (payments) proceeds on settlement Debt Debt Fair value (Cdn$) (hedged) (hedged) derivatives derivatives (Cdn$) amount Notional rate As at December 31, 2018 ivatives (1,761) (19,368) – (1,089) (4) (22,222) Exchange – – 258 92 f derivatives – (17,620) – (1,194) (15) (US$) 1,080 1.2413 1,341 122 f derivatives 80 (80) (24) (51) (22) amount Notional e of derivatives 505 127 (23) 157 28 794 As assetsAs liabilitiesAs assets 5,500 550 1.1243 1.3389As liabilities 6,184 736 1,354 1,178 1.3276As assets (22) 1,564 41 As assets – – 900 (87) accounted for as hedges: derivative assetcash flow hedges: accounted for as cash flow hedges: for as hedges: 1,373 as cash flow hedges: Mark-to-market assetMark-to-market liabilityMark-to-market asset (liability) 1,332 1,354 (22) 41 41 – (87) – (87) 122 122 – 92 92 1,500 – 1,609 (109) Derivative instruments, end of year 1,332 41 (87) 122 92 1,500 Derivative instruments, beginning of yearProceeds received from settlement o Derivative instruments, end of yearMark-to-market assetMark-to-market liability 1,332Mark-to-market asset (liability) 41Derivative 1,412 (87) instruments, beginning of yearProceeds received from settlement of der Payment on derivatives settledIncrease (decrease) in fair 122 valu (29) 1,412 1,508 – 92 (96) 1,152 (29) – (29) 1 (23) – 1,436 – – (64) 55 19,305 1 (15) 16 (39) – 55 68 55 – 1,093 1,094 – 21,834 Payment on derivatives settledIncrease (decrease) in fair value o – 17,630 111 1,124 – Year ended December 31, 2018 (In millions of dollars) Year ended December 31, 2019 (In millions of dollars) Short-term debt derivatives not Net mark-to-market debt Bond forwards accounted for as Expenditure derivatives Equity derivatives not accounted Net mark-to-market asset 1,500 Debt derivatives accounted for (In millions of dollars, except exchange rates) Below is a summary of the changes in fair value of our derivative instruments for 2019 and 2018. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Below is a summary of the derivative instruments assets and accounting purposes (2018 – US$6.1 billion). As at derivative instruments liabilities reflected on our Consolidated December 31, 2019, 100% of our currently outstanding Statements of Financial Position. expenditure derivatives have been designated as hedges for accounting purposes (2018 – 100% of our then-outstanding bond As at December 31 forwards and expenditure derivatives). In 2019, we recognized a nil impact to net income related to hedge ineffectiveness (In millions of dollars) 2019 2018 (2018 – $10 million decrease). Current asset 101 270 Long-term asset 1,478 1,339 Debt derivatives 1,579 1,609 We use cross-currency interest exchange agreements to manage Current liability (50) (87) risks from fluctuations in foreign exchange rates associated with our Long-term liability (90) (22) US dollar-denominated debt instruments, credit facility borrowings, and commercial paper borrowings (see note 19). We designate the (140) (109) debt derivatives related to our senior notes and debentures as Net mark-to-market asset 1,439 1,500 hedges for accounting purposes against the foreign exchange risk associated with specific debt instruments. We do not designate the As at December 31, 2019, US$8.4 billion notional amount of our debt derivatives related to our credit facility borrowings or outstanding debt derivatives have been designated as hedges for commercial paper borrowings as hedges for accounting purposes. During 2019 and 2018, we entered and settled debt derivatives related to our credit facility borrowings and US CP program as follows:

Year ended Year ended December 31, 2019 December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Credit facilities Debt derivatives entered 420 1.336 561 125 1.257 157 Debt derivatives settled 420 1.343 564 125 1.256 157 Net cash received (paid) 3 (1) Commercial paper program Debt derivatives entered 12,897 1.328 17,127 15,262 1.294 19,751 Debt derivatives settled 12,847 1.329 17,069 14,833 1.291 19,148 Net cash (paid) received (13) 63

In 2019 and 2018, we entered into debt derivatives to hedge the During the year, concurrent with the issuances of our foreign currency risk associated with the principal and interest US$1,250 million and US$1,000 million senior notes, we entered components of the US dollar-denominated senior notes issued into debt derivatives to convert all interest and principal payment during these years (see note 21). Below is a summary of the debt obligations to Canadian dollars. As a result, we received net derivatives we entered to hedge senior notes issued proceeds of $1,676 million and $1,308 million, respectively, from during 2019 and 2018. the issuances. In 2018, concurrent with the issuance of our US$750 million senior US$ Hedging effect notes, we entered into debt derivatives to convert all interest and (In millions of dollars, except Fixed principal payment obligations to Canadian dollars. As a result, we for coupon and interest Principal/ hedged received net proceeds of $938 million from the issuance. rates) Notional (Cdn$) amount Maturity Coupon interest Equivalent Effective date (US$) date rate rate 1 (Cdn$)

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

2018 issuances February 8, 2018 750 2048 4.300% 4.193% 938

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

128 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 129 | 2018 (Cdn$) Notional rate Exchange ROGERS COMMUNICATIONS INC. Years ended December 31 f these financial instruments. 840 1.301 1,093 720 1.244 896 approximate their fair values e credit spread for the financial (US$) t-term borrowings, and accounts Notional ents” within finance costs. We subsequently 2019 ANNUAL REPORT 2019 (Cdn$) Notional rate tional bond forward due 2019 in relation to the issuance of the Exchange referring to quoted pricesand liabilities; in active markets for identical assets uld not be able to exercise our $900 million notional amount of ntinued hedge accounting and reclassified a $21 million loss from 2049 and paid $57 million to settle the derivative. We did not enter vative. We also exercised a $400 million notional bond forward due FAIR VALUES OF FINANCIAL INSTRUMENTS The carryingreceivable, values bank of advances, shor cash and cash equivalents, accounts payable andbecause accrued of the liabilities short-termThe carrying natures values o oftheir our fair values financing based receivables on ourallowance. also recognition approximate of an expected credit loss We determineinvestments the using fair quotedvalue value market of values. of our We privatefollow-on each determine investments financing rounds, by the of third-party using sale fair negotiations,based our implied or valuations market- publicly approaches. from investment traded These depending are onprospects. applied its appropriately future operating toThe and fair each values profitability of eachthe of our period-end public debt estimated instrumentsvalues, are based market where on available. yields, Wederivatives or determine and the period-end expenditure fair derivatives trading adjusted values using mark-to-market of valuation an our by estimated discounting debt measurement credit- cash date. flows In to the the case ofderivatives debt in derivatives and an expenditure assetinstitution position, counterparty th is addeddetermine the to estimated the credit-adjusted risk-freeFor value these discount for debt rate each derivatives derivative. to position, and our expenditure credit spread derivatives is in addedeach to a derivative. the liability risk-free discount rate for The fairperiod-end values quoted market value of of Class B Non-Voting our Shares. Our equity disclosure of derivativessignificance the of the are three-level inputs used fair in• based measuring value fair financial value: hierarchy on assets reflects and the the financial liabilities in Level 1 are valued by ettled during 2019 and 2018 to manage foreign exchange risk related 900 1.249 1,124 810 1.321 1,070 (US$) Notional nded December 31, 2019 or 2018. As at December 31, 2019, we have no ty to “change in fair value of derivative instrum Equity derivatives We have equity derivatives toassociated hedge with market Class price B appreciation Non-Voting risk under Shares our that have stock-based been compensation granted RSUs, programs for and stock options, originally DSUs entered into (see atterms a note weighted to average 25). price maturityperiods of The with of $50.37 the with consent equity one ofexecuted the year, derivatives extension hedge counterparties. agreements extendible were In forcontracts 2019, for each we under further of our one-year conditions substantially equity with revised derivative the expiry dates ofThe same April equity 2020 (from committed derivatives April 2019). accounting terms have purposes. not and been designatedDuring as the hedges year ended for December(2018 31, – 0.4 2019, million) we equity settled derivatives$71.66 0.7 at a million weighted average (2018 price(2018 of – – $4 million). $61.15)During 2019, for we recognized an net expense,$18 net of interest proceeds million receipts, of compensation of expense (2018 related $16 to –equity the change million derivative $33 inDecember fair contracts 31, million value 2019, of the net our recovery), fairasset of value of $55 of in million the (2018 received equitycurrent – portion derivatives stock-based of $92 was payments. derivative million an instruments. asset), which As isAs included at at in December 31,for 2019, 4.3 million we (2018 had –weighted 5.0 equity average million) derivatives price Class of outstanding B $51.76 Non-Voting (2018 Shares – with $51.54). a As at December 31,derivatives 2019, we outstanding had (2018 US$990rate million – of US$1,080 of expenditure million), $1.300/US$ranging at (2018 an – average $1.241/US$),(2018 with – from January terms toDecember maturity 31, January 2019maturing 2019, in our 2020 to 2020$1.30/US$. were outstanding hedged expenditure at an derivatives December to average exchange rate of 2020). December As 2021 at Expenditure derivatives settled Expenditure derivatives entered (In millions of dollars, except exchange rates) outstanding bond forwards within thethe designated hedging time frame, reserve we within disco shareholders’ equi Bond forwards During the year ended December 31, 2018, after determining we wo to certain forecast expenditures. Expenditure derivatives Below is a summary of the expenditure derivatives we entered and s outstanding bond forwards. extended the bond forwards and redesignated them asDuring effective the hedges. year ended December 31,$1 2019, billion we senior exercised notes a due $500 20292019 million and in no paid relation to $54 the million issuance tointo of settle the or the US$1.25 deri settle billion senior any notes due other bond forwards during the years e NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

• financial assets and financial liabilities in Level 2 are valued using There were no material financial instruments categorized in Level 3 inputs based on observable market data, either directly or as at December 31, 2019 and 2018 and there were no transfers indirectly, other than the quoted prices; between Level 1, Level 2, or Level 3 during the respective periods. • Level 3 valuations are based on inputs that are not based on observable market data. 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) 2019 2018 2019 2018 2019 2018 Financial assets Investments, measured at FVTOCI: Investments in publicly traded companies 1,831 1,051 1,831 1,051 — — Held-for-trading: Debt derivatives accounted for as cash flow hedges 1,508 1,354 — — 1,508 1,354 Debt derivatives not accounted for as cash flow hedges — 41 — — — 41 Expenditure derivatives accounted for as cash flow hedges 16 122 — — 16 122 Equity derivatives not accounted for as cash flow hedges 55 92 — — 55 92 Total financial assets 3,410 2,660 1,831 1,051 1,579 1,609 Financial liabilities Held-for-trading: Debt derivatives accounted for as cash flow hedges 96 22 — — 96 22 Debt derivatives not accounted for as hedges 29 — — — 29 — Bond forwards accounted for as cash flow hedges — 87 — — — 87 Expenditure derivatives accounted for as cash flow hedges 15 — — — 15 — Total financial liabilities 140 109 — — 140 109

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

As at December 31 (In millions of dollars) 2019 2018 Carrying amount Fair value 1 Carrying amount Fair value 1 Long-term debt (including current portion) 15,967 18,354 14,290 15,110

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, 2019 and 2018.

NOTE 18: INVESTMENTS

ACCOUNTING POLICY entity. We are generally presumed to have significant influence Investments in publicly traded and private companies over an entity when we hold more than 20% of the voting power. We have elected to irrevocably classify our investments in A joint arrangement exists when there is a contractual agreement companies over which we do not have control or significant that establishes joint control over activities and requires unanimous influence as FVTOCI with no subsequent reclassification to net consent for strategic financial and operating decisions. We classify income because we do not hold these investments with the intent our interests in joint arrangements into one of two categories: of short-term trading. We account for them as follows: • joint ventures – when we have the rights to the net assets of the • publicly traded companies – at fair value based on publicly arrangement; and quoted prices; and • joint operations – when we have the rights to the assets and • private companies – at fair value using implied valuations from obligations for the liabilities related to the arrangement. follow-on financing rounds, third-party sale negotiations, or market-based approaches. We use the equity method to account for our investments in associates and joint ventures; we recognize our proportionate Investments in associates and joint arrangements interest in the assets, liabilities, revenue, and expenses of our joint An entity is an associate when we have significant influence over the operations. entity’s financial and operating policies but do not control the

130 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 131 | – 1 935 489 (740) 2018 1,903 1,794 3,303 (1,902) (1,258) (52) (24) 851 491 (906) 2019 2,314 1,679 3,501 (2,366) (1,407) ROGERS COMMUNICATIONS INC. As at or years ended December 31 2019 ANNUAL REPORT 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 Net (loss) income Our share of net (loss) income Expenses Our share of net assets Revenue Total net assets Current liabilities Long-term liabilities Current assets Long-term assets (In millions of dollars) INVESTMENTS, ASSOCIATES AND JOINT VENTURES We have interestssome in of which a include: number of associates andMaple joint Leaf Sports ventures, and Entertainment LimitedMLSE, (MLSE) a sports andthe entertainment Arena, company, the ownsToronto NHL’s and Raptors, Toronto operates MLS’ Maple Torontothe Leafs, FC, the AHL’s the NBA’s CFL’s TorontoBCE Toronto Inc. Argonauts, Marlies, (BCE), and jointlyMLSE own other with an our assets. indirectMLSE. net portion Our We, 75% investment representing in along equityusing a MLSE interest the with is equity 37.5% in method. accounted for equity as interest a joint in venture Glentel 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 650 145 938 2018 2018 1,605 2,255 1,051 1,196 2,134 107 892 2019 650 1,831 1,938 2,830 2019 1,588 2,238 As at December 31 As at December 31 Publicly traded companies Private companies Accounts receivable securitization program US commercial paper program (In millions of dollars) Below isDecember 31, a 2019 and 2018. summary of our short-term borrowings as at NOTE 19: SHORT-TERM BORROWINGS Publicly traded companies We hold aincluding Cogeco number Inc. and of Cogecowe Communications interests Inc. This recognized in year, realized$780 publicly million losses traded (2018 companies, ofunrealized – losses) in nil other nil comprehensive income. and of realized unrealized losses gains and of $414 million of INVESTMENTS, MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME EXPLANATORY INFORMATION (In millions of dollars) Impairment in associates and joint ventures At the end ofobjective each evidence reporting that period,associates impairment we and assess exists whether in jointcompare there the our is ventures. carrying investments amount Ifamount of in and the objective recognize investment the to evidenceany, excess its as over recoverable a exists, loss the in recoverable net we amount, income. if We initially recognizeventures our at investmentscarrying cost amounts in and based associates onloss. subsequently our and Distributions share increase of joint carrying we amounts each or of entity’s our receive investments. decrease income from or the We these eliminate unrealized entities gainsassociates and reduce losses or from the joint ouramount investments of ventures in our interest against in the our entities. investments, up to the Total short-term borrowings Investments in: Investments, measured at FVTOCI Investments, associates and joint ventures Total investments NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Below is a summary of the activity relating to our short-term borrowings for the years ended December 31, 2019 and 2018.

Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Proceeds received from US commercial paper 12,897 1.328 17,127 15,262 1.294 19,752 Repayment of US commercial paper (12,876) 1.328 (17,094) (14,858) 1.295 (19,244) Net proceeds received from US commercial paper 33 508 Proceeds received from accounts receivable securitization – 225 Repayment of accounts receivable securitization – (225) Net proceeds received from accounts receivable securitization – – Proceeds received from credit facilities 420 1.336 561 ––– Repayment of credit facilities (420) 1.343 (564) ––– Net repayment of credit facilities (3) – Net proceeds received on short-term borrowings 30 508

ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM US COMMERCIAL PAPER PROGRAM We participate in an accounts receivable securitization program We have a US CP program that allows us to issue up to a maximum with a Canadian financial institution that allows us to sell certain aggregate principal amount of US$1.5 billion. Funds can be trade receivables into the program. As at December 31, 2019, the borrowed under this program with terms to maturity ranging from proceeds of the sales were committed up to a maximum of 1 to 397 days, subject to ongoing market conditions. Any issuances $1,050 million (2018 – $1,050 million) and the program has a term made under the US CP program will be issued at a discount. of November 1, 2020. Borrowings under our US CP program are classified as short-term borrowings on our Consolidated Statements of Financial Position As at December 31 when they are due within one year from the date of the financial (In millions of dollars) 2019 2018 statements. Trade accounts receivable sold to buyer as security 1,359 1,391 Short-term borrowings from buyer (650) (650) Overcollateralization 709 741

There was no net activity related to our accounts receivable securitization program for the years ended December 31, 2019 and 2018. We continue to service and retain substantially all of the risks and rewards relating to the accounts receivable we sell, and therefore, the receivables remain recognized on our Consolidated Statements of Financial Position and the funding received is recognized as short-term borrowings. The buyer’s interest in these trade receivables ranks ahead of our interest. The program restricts 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 assets. Below is a summary of the activity relating to our US CP program for the years ended December 31, 2019 and 2018.

Year ended December 31, 2019 Year ended December 31, 2018 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 1,177 1.364 1,605 746 1.253 935 Net proceeds received from US commercial paper 21 1.571 33 404 1.257 508 Discounts on issuance 1 25 1.320 33 27 1.333 36 (Gain) loss on foreign exchange 1 (83) 126 US commercial paper, end of year 1,223 1.298 1,588 1,177 1.364 1,605

1 Included in finance costs.

132 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 133 | Liabilities Other Total ROGERS COMMUNICATIONS INC. Decommissioning 2019 ANNUAL REPORT current liabilities”) 7 1 8 December 31, 2018Adjustments to existing provisionsAmounts usedDecember 31, 2019Current (recorded in “other Long-term 7Decommissioning and restoration costs –Cash outflows 36 associated withgenerally our expected 7 decommissioning to liabilities occurassets are at the to 3 decommissioning which datestiming of they the and relate, 39 41 whichrequired extent for are these (2) of sites long-term is uncertain. restoration in nature. work 3 The that – will 44 ultimately be (2) 34 2 36 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) 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 US$420 million ($564 million)borrowings, on we this entered into facility. debtcurrency Concurrent derivatives with to the hedge risk thenon-revolving foreign credit associated facility.derivatives as We with hedges did forwe cancelled the accounting not the purposes. non-revolving designate credit On facility. borrowings May these 3, debt 2019, under the contracts when the unavoidable Onerous contracts We make provisions for onerous Restructuring We make provisions 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 recognized as 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 of of Income. the liability as a 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 NOTE 20: PROVISIONS ACCOUNTING POLICY On April($2.9 1, billion) 2019,borrowed non-revolving we entered US$420 credit into facility. million a Subsequently, new we ($561 US$2.2 billion million) and repaid NON-REVOLVING CREDIT FACILITY Concurrent with thederivatives US to hedge CP theprincipal borrowings, foreign and currency we interest risk enteredUS associated components CP into with program of (see the debt the notederivatives 17). borrowings as We hedges have under for not accounting the designated purposes. these debt 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 2019 2018 Senior notes 2019 400 2.800% – 400 Senior notes 2019 500 5.380% – 500 Senior notes 2020 900 4.700% – 900 Senior notes 2021 1,450 5.340% 1,450 1,450 Senior notes 2022 600 4.000% 600 600 Senior notes 2023 US 500 3.000% 649 682 Senior notes 2023 US 850 4.100% 1,104 1,160 Senior notes 2024 600 4.000% 600 600 Senior notes 2025 US 700 3.625% 909 955 Senior notes 2026 US 500 2.900% 649 682 Senior notes 2029 1,000 3.250% 1,000 – Senior debentures 1 2032 US 200 8.750% 260 273 Senior notes 2038 US 350 7.500% 455 478 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% 649 682 Senior notes 2043 US 650 5.450% 844 887 Senior notes 2044 US 1,050 5.000% 1,365 1,433 Senior notes 2048 US 750 4.300% 973 1,022 Senior notes 2049 US 1,250 4.350% 1,624 – Senior notes 2049 US 1,000 3.700% 1,299 – 16,130 14,404 Deferred transaction costs and discounts (163) (114) Less current portion – (900)

Total long-term debt 15,967 13,390

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, 2019 and 2018.

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, 2019, 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

134 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 135 | – – – 938 (823) (823) (1,761) (Cdn$) Notional rate Exchange ROGERS COMMUNICATIONS INC. 125 1.257 157 750 1.251 938 (125) 1.256 (157) (US$) (1,400) 1.258 (1,761) Notional – 1,000 2,184 2,184 3,984 (Cdn$) (1,800) (1,800) Notional 2019 ANNUAL REPORT rate Exchange ––– ––– ––– (US$) 2,250 1.326 2,984 Year ended December 31, 2019 Year ended December 31, 2018 Notional SENIOR NOTES AND DEBENTURES We paydebentures interest on a semi-annual basis. on allWe have of the option to ourand redeem debentures, each fixed-rate of in ourpremiums whole fixed-rate senior specified in senior or the notes notes corresponding in agreements. part, and at any time, if we pay the reductions priorborrowings to from the maturity.1.25% per revolving annum The credit over theto facility interest bank 2.25% prime ranges over rate rate the from orOffered bankers’ base Rate. nil rate, acceptance charged or rate to 0.85% or on London Inter-Bank In 2018, we amendedthings, our revolving extend credit the facility maturityMarch to, among 2022 date other to of September theon 2023 the $2.5 $700 and million billion to tranche tranche from extend March from the 2020 to maturityAs September at date 2021. December 31, 2019,(2018 we – had $1.6 available billion) liquidity underfacilities of our (2018 $1.6 $3.3 billion billion – bank $4.2 and(2018 billion), letter – of of $1.0 credit which billion) we forbackstop letters had of utilized credit amounts $0.1 and billion reservedborrowings (2018 $1.6 outstanding – billion $1.6 to billion). under our US CP program 11 (18) 672 (823) 2018 14,448 14,290 long-term debt for the years ended December 31, 2019 and 2018. 12 (61) (458) 2019 2,184 14,290 15,967 Years ended December 31 debt costs, beginning of year costs, end of year costs BANK CREDIT AND LETTER OF CREDITOur FACILITIES $3.2 billionrevolving revolving basis credit until facility is maturity available and on there a fully are no scheduled As at December 31,rate 2019, on our all effective debt weighted andall average of short-term interest the borrowings, associated including debt derivatives the(2018 and – effect bond 4.45%). of forwards, was 4.30% WEIGHTED AVERAGE INTEREST RATE Net issuance (repayment) of long-term Long-term debt net of transaction (In millions of dollars) Credit facility borrowings (US$) The tables below summarize the activity relating to our Credit facility repayments (US$) Net borrowings under credit facilities Senior note issuances (Cdn$) Senior note issuances (US$) Total senior note repayments Net issuance (repayment) of long-term debt Net issuance (repayment) of senior notes (In millions of dollars, except exchange rates) (Gain) loss on foreign exchange Long-term debt net of transaction Deferred transaction costs incurred Amortization of deferred transaction Total senior note issuances Senior note repayments (Cdn$) Senior note repayments (US$) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Issuance of senior notes Below is a summary of the senior notes that we issued in 2019 and 2018.

(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$) (Cdn$) 2019 issuances April 30, 2019 1,000 2029 3.250% 99.746% 1,000 7 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 2018 issuances February 8, 2018 US 750 2048 4.300% 99.398% 938 16

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 2019 and 2018 US dollar-denominated December 31, 2018, we recognized a $28 million loss on issuances, we entered into debt derivatives to convert all interest repayment of long-term debt reflecting our obligation to pay and principal payment obligations to Canadian dollars (see redemption premiums upon repayment (see note 11). note 17). PRINCIPAL REPAYMENTS Repayment of senior notes and related derivative settlements Below is a summary of the principal repayments on our long-term Below is a summary of the repayment of our senior notes during debt due in each of the next five years and thereafter as at 2019 and 2018. There were no debt derivatives associated with the December 31, 2019. 2019 repayments. The associated debt derivatives for the 2018 repayment were settled at time of repayment. (In millions of dollars) 2020 – (In millions of dollars) 2021 1,450 Notional amount Notional amount 2022 600 Maturity date (US$) (Cdn$) 2023 1,753 2019 repayments 2024 600 March 2019 – 400 Thereafter 11,727 November 2019 – 500 Total long-term debt 16,130 September 2020, repaid November 2019 – 900 TERMS AND CONDITIONS Total 2019 repayments – 1,800 As at December 31, 2019 and 2018, we were in compliance with all financial covenants, financial ratios, and all of the terms and 2018 repayments conditions of our long-term debt agreements. There were no August 2018, repaid financial leverage covenants in effect other than those under our April 2018 1,400 1,761 bank credit and letter of credit facilities.

In November 2019, we repaid the entire outstanding principal The 8.75% debentures due in 2032 contain debt incurrence tests amount of our $900 million 4.7% senior notes otherwise due in and restrictions on additional investments, sales of assets, and September 2020. For the year ended December 31, 2019, we payment of dividends, all of which are suspended in the event the recognized a $19 million loss on repayment of long-term debt public debt securities are assigned investment-grade ratings by at reflecting our obligation to pay redemption premiums upon least two of three specified credit rating agencies. As at repayment(seenote11). December 31, 2019, these public debt securities were assigned an investment-grade rating by each of the three specified credit rating In April 2018, we repaid the entire outstanding principal amount of agencies and, accordingly, these restrictions have been suspended our US$1.4 billion ($1.8 billion) 6.8% senior notes otherwise due in as long as the investment-grade ratings are maintained. Our other August 2018. At the same time, the associated debt derivatives senior notes do not have any of these restrictions, regardless of the were settled for net proceeds received of $326 million. As a result, related credit ratings. The repayment dates of certain debt we repaid a net amount of $1.5 billion, including settlement of the agreements can also be accelerated if there is a change in control associated debt derivatives, which was separately funded through of RCI. our US CP program and our bank credit facility. For the year ended

136 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 137 | 3.9% 3.7% 3.0% 2018 based on CPM B scale CPM B scale 1.0% to 4.5%, employee age CIA Private with CIA Private with 3.2% 3.9% 2019 ROGERS COMMUNICATIONS INC. based on based on CPM B Scale CPM B Scale 1.0% to 4.5%, 1.0% to 4.5%, employee age employee age CIA Private with CIA Private with 2019 ANNUAL REPORT increase increase Mortality rate Discount rate Rate of compensation Discount rate Rate of compensation Mortality rate assumptions: 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 2019. retirement. careerPrincipal actuarial average assumptions Weighted average of significant Defined benefit obligation 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 Pension expense 40 67 66 546 373 2018 29 73 47 614 465 2019 As at December 31 23 23 25 Note members; and expensed in net income. future benefits; plan Total other long-term liabilities Stock-based compensation Other Post-employment benefits – defined contribution pensionIn plan 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 ourpension net plans pension and expense contributionsan for to our defined employee contribution definedConsolidated plans benefit Statements benefit as of Income inprovide expense the the related periods services. the in employees operating costs on the • mortality rates for• calculating past the service life costs expectancy from plan of amendments plan are immediately 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 gains at pension accrued and losses, the returns benefit pension ontheeffectoftheassetceiling.Thesearerecognizedinother end plan assets, of benefit and any the changecomprehensive in income year and retained and earnings. include 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 ACCOUNTING POLICY NOTE 22: OTHER LONG-TERM LIABILITIES (In millions of dollars) Supplemental executive retirement Deferred pension liability NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Sensitivity of key assumptions arrangements, including a Group RRSP and a Group TFSA In the sensitivity analysis shown below, we determine the defined program, which are accounted for as deferred contribution benefit obligation for our funded plans using the same method arrangements. used to calculate the defined benefit obligation we recognize on During the year ended December 31, 2019, we amended certain the Consolidated Statements of Financial Position. We calculate of our defined benefit pension plans and recognized a $21 million sensitivity by changing one assumption while holding the others reduction in past service cost (2018 – $43 million), which was constant. This leads to limitations in the analysis as the actual recorded as a reduction of pension expense, included in change in defined benefit obligation will likely be different from “operating costs” in the Consolidated Statements of Income. that shown in the table, since it is likely that more than one assumption will change at a time, and that some assumptions are The Pension Committee of the Board oversees the administration correlated. of our registered pension plans, which includes the following principal areas: Increase (decrease) in • overseeing the funding, administration, communication, and accrued benefit obligation investment management of the plans; (In millions of dollars) 2019 2018 • selecting and monitoring the performance of all third parties performing duties in respect of the plans, including audit, Discount rate actuarial, and investment management services; Impact of 0.5% increase (233) (196) Impact of 0.5% decrease 266 224 • proposing, considering, and approving amendments to the plans; Rate of future compensation increase • proposing, considering, and approving amendments to the Impact of 0.25% increase 17 16 Statement of Investment Policies and Procedures; Impact of 0.25% decrease (17) (16) • reviewing management and actuarial reports prepared in Mortality rate respect of the administration of the pension plans; and Impact of 1 year increase 61 47 • reviewing and approving the audited financial statements of the Impact of 1 year decrease (64) (50) pension plan funds. The assets of the defined benefit pension plans are held in EXPLANATORY INFORMATION segregated accounts that are isolated from our assets. They are We sponsor a number of contributory and non-contributory invested and managed following all applicable regulations and the pension arrangements for employees, including defined benefit Statement of Investment Policies and Procedures with the objective and defined contributions plans. We do not provide any of having adequate funds to pay the benefits promised by the non-pension post-retirement benefits. We also provide unfunded plans. Investment and market return risk is managed by: supplemental pension benefits to certain executives. • contracting professional investment managers to execute the investment strategy following the Statement of Investment The Rogers Defined Benefit Pension Plan provides a defined Policies and Procedures and regulatory requirements; pension based on years of service and earnings, with no increases • specifying the kinds of investments that can be held in the plans in retirement for inflation. The plan was closed to new members in and monitoring compliance; 2016. Participation in the plan was voluntary and enrolled • using asset allocation and diversification strategies; and employees are required to make regular contributions into the • purchasing annuities from time to time. plan. An unfunded supplemental pension plan is provided to certain senior executives to provide benefits in excess of amounts The defined benefit pension plans are registered with the Office of that can be provided from the defined benefit pension plan under the Superintendent of Financial Institutions and are subject to the the Income Tax Act (Canada)’s maximum pension limits. Federal Pension Benefits Standards Act. Two of the defined contribution pension plans are registered with the Financial We also sponsor smaller defined benefit pension plans in addition Services Regulatory Authority, subject to the Ontario Pension to the Rogers Defined Benefit Pension Plan. The Pension Plan for Benefits Act. The plans are also registered with the Canada Employees of Rogers Communications Inc. and the Rogers Revenue Agency and are subject to the Income Tax Act (Canada). Pension Plan for Selkirk Employees are closed legacy defined The benefits provided under the plans and the contributions to the benefit pension plans. The Pension Plan for Certain Federally plans are funded and administered in accordance with all Regulated Employees of Rogers Cable Communications Inc. is applicable legislation and regulations. similar to the main pension plan but only federally regulated employees from the Cable business were eligible to participate; The defined benefit pension plans are subject to certain risks this plan was closed to new members in 2016. related to contribution increases, inadequate plan surplus, unfunded obligations, and market rates of return, which we In addition to the defined benefit pension plans, we provide mitigate through the governance described above. Any significant various defined contribution plans to certain groups of employees changes to these items may affect our future cash flows. of the Company and to employees hired after March 31, 2016 who choose to join. Additionally, we provide other tax-deferred savings

138 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 139 | 6 4 54 85 12 20 12 (10) (43) (73) 810 158 112 116 143 (114) 2018 2018 2018 2018 1,965 1,149 – 8 4 8 (30) 10 89 277 (21) (81) (401) (154) 967 108 112 121 2019 As at December 31 2019 2019 2019 2,449 1,472 ROGERS COMMUNICATIONS INC. Years ended December 31 Years ended December 31 Years ended December 31 2019 ANNUAL REPORT Administrative expense Net interest cost Net pension expense Current service cost Past service recovery finance costs in other comprehensive income and equity income interest income) 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 (In millions of dollars) Debt securities Other – cash Total fair value of plan assets 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) Change in financial assumptions Change in demographic assumptions Effect of experience adjustments Remeasurement (loss) gain, recognized 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 Equity securities 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 (loss) on plan assets (excluding 8 (3) 39 73 85 39 (68) (43) (68) 148 143 (114) (168) (365) (373) (365) 2018 2018 2018 1,965 1,890 1,965 2,342 2,330 (2,330) 14 (451) (465) (451) 2019 2,449 (3) 89 36 (2,900) 36 81 (21) (86) (86) 121 431 179 277 2019 As at December 31 2019 2,900 2,330 2,449 1,965 22 Note Years ended December 31 Years ended December 31 Deferred pension asset Deferred pension liability plan assets comprehensive income and equity comprehensive income and equity year of year Contributions by employer Benefits paid Administrative expenses paid from Plan assets, end of year Below is a summary offunded the obligations. accrued benefit obligations arising from Remeasurements, recognized in other Plan assets, at fair value Below is a summary ofbenefits the and estimated present the value estimated of marketto accrued value provide plan these of benefits the for net our funded assets plans. available (In millions of dollars) Contributions by employees Plan assets, beginning of year Interest income (In millions of dollars) (In millions of dollars) Accrued benefit obligations Net deferred pension liability Current service cost Past service recovery Interest cost Benefits paid Contributions by employees Remeasurements, recognized in other Accrued benefit obligations, end of Accrued benefit obligations, beginning Consists of: Net deferred pension liability Below is a summary of our pension fund assets. 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 (2018 – $5 million) benefits, net interest cost, remeasurements, and benefits paid. 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) 2019 2018 members and invest in permitted investments using the target ranges established by our Pension Committee, which reviews Accrued benefit obligation, beginning of year 67 66 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 2 2 Years ended December 31 Net interest cost, recognized in finance costs 3 2 (In millions of dollars) 2019 2018 Remeasurements, recognized in other Employer contribution 179 148 comprehensive income 5 1 Employee contribution 36 39 Benefits paid (4) (4) Total contribution 215 187 Accrued benefit obligation, end of year 73 67 We estimate our 2020 employer contributions to our funded plans We also have defined contribution plans with total pension to be $145 million. The actual value will depend on the results of expense of $12 million in 2019 (2018 – $8 million), which is the 2020 actuarial funding valuations. The average duration of the included in employee salaries and benefits expense. defined benefit obligation as at December 31, 2019 is 17 years (2018 – 18 years). ALLOCATION OF PLAN ASSETS Plan assets recognized an actual net gain of $355 million in 2019 Target asset (2018 – $44 million net loss). Allocation of plan assets allocation 2019 2018 percentage We have recognized a cumulative loss in other comprehensive income and retained earnings of $503 million as at December 31, 2019 Equity securities: (2018 – $384 million) associated with post-retirement benefit plans. Domestic 12.0% 11.8% 8% to 18% International 48.1% 46.7% 37% to 67% Debt securities 39.5% 41.2% 25% to 45% Other – cash 0.4% 0.3% 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 be fixed by the Board prior to the issue of any series RCI Class A Voting Shares 112,474,388 • Without par value • Each share entitled to •Eachsharecanbe 50 votes converted 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

140 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 141 | ROGERS COMMUNICATIONS INC. bid (NCIB) program (2019 NCIB) n-Voting Shares for $500 million, 2019 ANNUAL REPORT NORMAL COURSE ISSUER BID In Aprilcommence 2019, a normal the course issuer that TSX accepted allowsbeginning a us April notice 24, to 201935.7 of and million purchase, Class ending our B AprilNon-Voting intention Non-Voting during 23, Shares Shares 2020, that to and the can the that bean lesser number purchased twelve-month aggregate of of under Class purchase the B period 2019 pricemay obtain NCIB of a for copy $500 of million. this notice, RCI without charge,In security by contacting holders us. Aprilcommence 2018, the apurchase, TSX NCIB during the accepted program twelve-month periodand a beginning (2018 April ending notice 24, NCIB) 2018 AprilNon-Voting of that Shares 23, our and allowed that 2019,that intention number could us the of be to purchased Class under to lesser Bprice the of Non-Voting NCIB of $500 for Shares an million. 35.8 aggregateyear We purchase ended did million December not 31, 2018. repurchase Class any shares B during the In 2019, we purchased 9.9 millionfor shares $655 under our million. NCIB programs Pursuantcancellation to 7.7 million the Class 2019 Bthereby No NCIB, purchasing the we maximum repurchased allowed under for 2019, the pursuant 2019 to NCIB. the In 20182.2 NCIB, million Class we B repurchased Non-Voting for Shares for cancellation $155 million. 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.Employee For share accumulation DSUs, plan theEmployees voluntarily payment 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 1.92 (dollars) Dividend per share ually in dividends above $0.05 per ACCOUNTING POLICY Stock option plans Cash-settled share appreciationstock rights options (SARs) granted under are ourfeature attached employee stock allows to option all plan. thepayment This equal option to the holderwhich intrinsic to the value of market choose the pricethe option to of exercise (the the receive amount price Class by ofexercising a B the Non-Voting the cash Share option option exceeds on toclassify the all acquire outstanding exercise Class stock date) Bas options instead liabilities Non-Voting with and of cash Shares. carry settlement them We Black-Scholes features at their option fair pricing value, determined modelmodel, using or depending the a on trinomial theremeasure the option nature fair pricing of value of theto the share-based operating liability award. each costs period We periodortothedateanemployeeiseligibletoretire(whicheveris using and amortize graded it vesting,shorter). either over the vesting NOTE 25: STOCK-BASED COMPENSATION On January 22,$0.50 2020, per the Class A Board Votingpaid Share declared on and April Class a 1, B 2020, quarterly Non-Voting to Share, shareholders dividend to of be record of on March 10, 2020. Date declared Date paid DIVIDENDS We declared and paid theClass following A Shares dividends and on Class our B outstanding Non-Voting Shares: January 24, 2019April 18, 2019June 5, 2019 AprilOctober 1, 23, 2019 2019 July 2, 2019 January 2, 2020 October 1, 2019 0.50 0.50 0.50 0.50 January 25, 2018April 19, 2018August 15, 2018 AprilOctober 3, 19, 2018 2018 July October 3, 3, 2018 2018 January 3, 2019The 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 set 0.48 aside on 0.48 the 0.48 0.48 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

USE OF ESTIMATES AND JUDGMENTS As at December 31, 2019, we had a total liability recognized at its ESTIMATES fair value of $220 million (2018 – $252 million) related to stock- Significant management estimates are used to determine the fair based compensation, including stock options, RSUs, and DSUs. value of stock options, RSUs, and DSUs. The table below shows the The current portion of this is $173 million (2018 – $186 million) and weighted average fair value of stock options granted during 2019 is included in accounts payable and accrued liabilities. The long- and 2018 and the principal assumptions used in applying the term portion of this is $47 million (2018 – $66 million) and is Black-Scholes model for non-performance-based options and included in other long-term liabilities (see note 22). trinomial option pricing models for performance-based options to The total intrinsic value of vested liabilities, which is the difference determine their fair value at the grant date. between the exercise price of the share-based awards and the Years ended December 31 trading price of the Class B Non-Voting Shares for all vested share- based awards, as at December 31, 2019 was $106 million 2019 2018 (2018 – $112 million). Weighted average fair value $8.11$8.42We paid $84 million in 2019 (2018 – $69 million) to holders of Risk-free interest rate 1.9% 1.7% stock options, RSUs, and DSUs upon exercise using the cash Dividend yield 2.8% 3.3% settlement feature, representing a weighted average share price on Volatility of Class B Non-Voting Shares 16.4% 20.1% the date of exercise of $70.97 (2018 – $61.84). Weighted average expected life 5.5 years 6.2 years Weighted average time to vest n/a 2.5 years STOCK OPTIONS Weighted average time to expiry n/a 10.0 years Options to purchase our Class B Non-Voting Shares on a Employee exit rate n/a 4.9% one-for-one basis may be granted to our employees, directors, and Suboptimal exercise factor n/a 1.4 officers by the Board or our Management Compensation Lattice steps n/a 50 Committee. There are 65 million options authorized under various n/a – no performance-based options were issued during the year ended December 31, plans; each option has a term of seven to ten years. The vesting 2019. period is generally graded vesting over four years; however, the Volatility has been estimated based on the actual trading statistics Management Compensation Committee may adjust the vesting of our Class B Non-Voting Shares. terms on the grant date. The exercise price is equal to the fair market value of the Class B Non-Voting Shares, determined as the EXPLANATORY INFORMATION five-day average before the grant date as quoted on the TSX. Below is a summary of our stock-based compensation expense, which is included in employee salaries and benefits expense. Performance options We granted nil performance-based options to certain key Years ended December 31 executives in 2019 (2018 – 439,435). These options vest on a (In millions of dollars) 2019 2018 graded basis over four years provided that certain targeted stock prices are met on or after each anniversary date. As at Stock options 1 17 December 31, 2019, we had 1,068,776 performance options Restricted share units 47 51 (2018 – 1,575,605) outstanding. Deferred share units 4 30 Equity derivative effect, net of interest receipt 18 (33) Total stock-based compensation expense 70 65

142 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 143 | 2018 (597,015) (213,392) 1,811,845 1,217,487 2,218,925 exercise price exercise price Weighted average Weighted average 2019 (582,314) (177,737) 2,218,925 1,013,900 2,472,774 ROGERS COMMUNICATIONS INC. Years ended December 31 (89,272) $55.94 850,700 $58.88 Number (679,706) $45.20 1,059,590 $46.26 2,719,612 $53.22 2,637,890 $49.42 exercisable 2019 ANNUAL REPORT exercise price Weighted average exercise price Number of options Weighted average e exercise price, and the weighted average remaining contractual –– 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 (In number of units) Outstanding, beginning of year Granted and reinvested dividends Exercised Forfeited Outstanding, end of year Unrecognized stock-basedDecember 31, compensation(2018 2019 – $59 related million) expense andnext to will three be years as recognized these as the in RSUs net vest. RSUs income over was at the $56 million Summary of RSUs Below isperformance RSUs. a summary of the RSUs outstanding, including life (years) 993,645 $52.38 (743,977) $46.56 Weighted average 3,154,795 $61.82 1,179,160 $72.03 2,719,612 $53.22 Year ended December 31, 2019 Year ended December 31, 2018 Options outstanding Options exercisable remaining contractual Number 3,154,795 7.56 $61.82 993,645 $52.38 outstanding e-based RSUs to certain key Below is a summary of thelife as range at of December exercise 31, prices, 2019. the weighted averag Exercisable, end of year Outstanding, end of year Granted Outstanding, beginning of year Performance RSUs We granted 180,896 performanc $42.85 – $44.99$45.00 – $49.99$50.00 – $59.99$60.00 – $64.99$65.00 – $69.99$70.00 – $73.00Unrecognized stock-basedDecember 31, 2019 compensation related(2018 to – $8 stock-option 153,937 million) expense plansnextfouryearsastheoptionsvest. and was will $6 be 506,011 as million recognized in net income 910,595 at over the RESTRICTED SHARE UNITS 415,057The 129,025 RSU 1,040,170participate plan in the allows growthterms and of employees, development the plan, of RSUsissued Rogers. directors, 4.82 vest are Under over issued a the and to period of the up 4.67 participant to officers and threeOn years the the from to units the vesting 7.76 grant date, date. wecash will or redeem by all 7.72 issuing of one thehave Class reserved participants’ B 4,000,000 RSUs Non-Voting 9.38 Class in Share B for 8.90 Non-Votingthis each plan. Shares RSU. $44.24 for We issue under $48.88 $58.10 153,937 $62.91 442,257executives in $66.21 265,564 2019 $73.00 (2018 –and 263,239). will The 122,459 be number paid of threeto units years that from vest the 150% grant dateachievement will $44.24 9,428 of be within of 50% non-market the targets. $48.73 certain initial $57.82 – number annual granted and $62.82 based cumulative upon three-year the $68.10 – Range of exercise prices Summary of stock options Below is a summary of the stock option plans, including performance options. Forfeited Exercised (In number of units, except prices) Number of options NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Performance DSUs (2018 – $7 million) and will be recognized in net income over the We granted 29,300 performance-based DSUs to certain key next three years as the executive DSUs vest. All other DSUs are fully executives in 2019 (2018 – 40,269). The number of units that vest vested. and may be redeemed by the holder three years from the grant date will be within 50% to 150% of the initial number granted EMPLOYEE SHARE ACCUMULATION PLAN based upon the achievement of certain annual and cumulative Participation in the plan is voluntary. Employees can contribute up three-year non-market targets. to 10% of their regular earnings through payroll deductions (up to an annual maximum contribution of $25 thousand). The plan Summary of DSUs administrator purchases Class B Non-Voting Shares on a monthly Below is a summary of the DSUs outstanding, including basis on the open market on behalf of the employee. At the end of performance DSUs. each month, we make a contribution of 25% to 50% of the employee’s contribution that month and the plan administrator Years ended December 31 uses this amount to purchase additional shares on behalf of the employee. We recognize our contributions made as a (In number of units) 2019 2018 compensation expense. Outstanding, beginning of year 2,004,440 2,327,647 Compensation expense related to the employee share Granted and reinvested dividends 110,003 131,051 accumulation plan was $51 million in 2019 (2018 – $46 million). Exercised (348,285) (334,930) Forfeited (24,274) (119,328) EQUITY DERIVATIVES Outstanding, end of year 1,741,884 2,004,440 We have entered into equity derivatives to hedge a portion of our stock-based compensation expense (see note 17) and recognized Unrecognized stock-based compensation expense as at an $18 million expense (2018 – $33 million recovery) in stock-based December 31, 2019 related to these DSUs was $1 million compensation expense for these derivatives. NOTE 26: RELATED PARTY TRANSACTIONS

CONTROLLING SHAREHOLDER Transactions Our ultimate controlling shareholder is the Rogers Control Trust We have entered into business transactions with companies whose (the Trust), which holds voting control of RCI. The beneficiaries of partners or senior officers are Directors of RCI. These directors are: the Trust are members of the Rogers family. Certain directors of RCI • The Hon. David R. Peterson, P.C., Q.C., the non-executive represent the Rogers family. chairman emeritus of Cassels Brock and Blackwell LLP, a law firm that provides legal services to the Company; and We entered into certain transactions with private Rogers family • Isabelle Marcoux, C.M., the chair of the board of holding companies controlled by the Trust. These transactions Transcontinental Inc., a company that provides printing services were recognized at the amount agreed to by the related parties to the Company. and are subject to the terms and conditions of formal agreements approved by the Audit and Risk Committee. The totals received or We recognize these transactions at the amount agreed to by the paid were less than $1 million for each of 2019 and 2018. related parties, which are also reviewed by the Audit and Risk Committee. The amounts owing are unsecured, interest-free, and TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL due for payment in cash within one month of the date of the Key management personnel include the directors and our most transaction. Below is a summary of related party activity for the senior corporate officers, who are primarily responsible for business transactions described above. planning, directing, and controlling our business activities. Outstanding Compensation Years ended balance as at Compensation expense for key management personnel included (In millions of dollars) December 31 December 31 in “employee salaries, benefits, and stock-based compensation” 2019 2018 2019 2018 wasasfollows: Printing and legal services 1 6 13 – –

Years ended December 31 1 The amounts paid for legal services are nominal. (In millions of dollars) 2019 2018 SUBSIDIARIES, ASSOCIATES, AND JOINT ARRANGEMENTS Salaries and other short-term We have the following material operating subsidiaries as at employee benefits 15 13 December 31, 2019 and 2018: Post-employment benefits 2 2 • Rogers Communications Canada Inc.; and 1 Stock-based compensation 20 18 • Rogers Media Inc. Total compensation 37 33 We have 100% ownership interest in these subsidiaries. They are 1 Stock-based compensation does not include the effect of changes in fair value of incorporated in Canada and have the same reporting period for Class B Non-Voting Shares or equity derivatives. annual financial statements reporting.

144 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 145 | 99 20 2018 86 24 2019 As at December 31 ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT 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 No amount has beenFinancial accrued in Position the relating Consolidatedguarantees to as Statements at of these December 31, typesnot 2019 made or any of 2018. significant Historically, payments indemnifications we underguarantees. have these or indemnifications or 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 (In millions of dollars) PURCHASES AND DEVELOPMENT OF ASSETS As part ofassets, transactions we involving may purchaseslosses be and required incurred development to as of warranties, pay a loss counterparties result for orregulations of costs damages (including and breaches to ofcounterparties. tax property, representations legislation), changes and or in laws litigation and against the Accounts receivable Accounts payable and accrued Outstanding balances at year-end aresettled unsecured, in interest-free, cash. and 86 197 2018 69 212 2019 Years ended December 31 erty, environmental liabilities, idiaries, joint arrangements, and s incurred as a result of breaches Contingent liabilities are liabilitiesand of are uncertain not timingresultofapastevent,itisprobablethatwewillexperiencean recognized or until amount weoutflow have of a resources present embodyingobligation, obligation and economic as a benefits reliable a tothe estimate obligation. settle can be the made of the amountWe of disclose ouroutflow contingent of liabilities resources in unless settlement is the remote. possibility of an NOTE 28: COMMITMENTS AND CONTINGENT LIABILITIES ACCOUNTING POLICY changes in laws and regulations (includingagainst tax legislation), the litigation counterparties,business, or reassessments contingent of previous liabilitiesthat tax carries filings of on of the the business. corporation a disposed SALES OF SERVICES As part ofrequired transactions to involvingbreaches make sales of payments representations of andregulations to services, warranties, (including we changes counterparties in maycounterparties. tax as laws be and legislation), a or result litigation of against the of representationsinfringement, loss and or damages to warranties, prop intellectual property right As part ofassets, or transactions other business involving combinations,counterparties we business for may costs be dispositions, and required to losse sales pay of BUSINESS SALE AND BUSINESS COMBINATION AGREEMENTS NOTE 27: GUARANTEES We had the following2018 as guarantees part as of our at normal course December of business: 31, 2019 and When necessary, adjustments are made topolicies conform of the the accounting subsidiaries torestrictions those on of RCI. the There abilityassociates are to no of transfer significant funds subs toloans Rogers as or cash advances, dividends or subjectwhere to applicable. repay to the approval of otherWe shareholders carriedassociates out and the jointGlentel. following Transactions arrangements, between business us beingeliminated and on transactions consolidation our primarily and are subsidiaries with not MLSE have disclosed in our been and this note. (In millions of dollars) Revenue Purchases NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

EXPLANATORY INFORMATION COMMITMENTS Below is a summary of the future minimum payments for our contractual commitments that are not recognized as liabilities as at December 31, 2019.

Less than After (In millions of dollars) 1 Year 1-3 Years 4-5 Years 5Years Total Player contracts 1 95 108 45 – 248 Purchase obligations 2 312 215 92 41 660 Program rights 3 620 1,111 1,052 830 3,613 Total commitments 1,027 1,434 1,189 871 4,521 1 Toronto Blue Jays players’ salary contracts into which we have entered and are contractually obligated to pay. 2 Contractual obligations under service, product, and wireless device contracts to which we have committed. 3 Agreements into which we have entered to acquire broadcasting rights for programs and films for periods in excess of one year at contract inception.

Below is a summary of our other contractual commitments that are interlocutory Stay of the CRTC Order. It is anticipated that the not included in the table above. appeal will be heard in mid-2020 with a decision thereafter. Due to the Court’s granting of the interlocutory Stay and Leave to As at December 31 Appeal, and the significant uncertainty surrounding both the (In millions of dollars) 2019 outcome and the amount, if any, we could ultimately have to repay to the resellers, we have not recorded a liability for this contingency Acquisition of property, plant and at this time. The CRTC’s order as drafted would have resulted in a equipment 200 refund of amounts previously billed to the resellers of Acquisition of intangible assets 63 approximately $150 million, representing the impact on a Commitments related to associates and joint retroactive basis from March 31, 2016 to December 31, 2019. We ventures 312 estimate the ongoing impact would be approximately $11 million Total other commitments 575 per quarter.

System access fee – Saskatchewan CONTINGENT LIABILITIES In 2004, a class action was commenced against providers of We have the following contingent liabilities as at December 31, wireless communications in Canada under the Class Actions Act 2019: (Saskatchewan). The class action relates to the system access fee wireless carriers charge to some of their customers. The plaintiffs Wholesale Internet costing and pricing are seeking unspecified damages and punitive damages, which On August 15, 2019, in Telecom Order CRTC 2019-288, Follow-up would effectively be a reimbursement of all system access fees to Telecom Orders 2016-396 and 2016-448 – Final rates for collected. aggregated wholesale high-speed access services (Order), the Canadian Radio-television and Telecommunications Commission In 2007, the Saskatchewan Court granted the plaintiffs’ application (CRTC) set final rates for facilities-based carriers’ wholesale high- to have the proceeding certified as a national, “opt-in” class action speed access services, including Rogers’ third-party Internet access where affected customers outside Saskatchewan must take specific (TPIA) service. The Order set final rates for Rogers that are steps to participate in the proceeding. In 2008, our motion to stay significantly lower than the interim rates that were previously billed the proceeding based on the arbitration clause in our wireless and it further determined that these final rates will apply service agreements was granted. The Saskatchewan Court directed retroactively to March 31, 2016. that its order, in respect of the certification of the action, would exclude customers who are bound by an arbitration clause from We do not believe the final rates set by the CRTC are just and the class of plaintiffs. reasonable as required by the Telecommunications Act as we believe they are below cost. On September 13, 2019, Rogers, in In 2009, counsel for the plaintiffs began a second proceeding conjunction with the other large Canadian cable companies (Cable under the Class Actions Act (Saskatchewan) asserting the same Carriers), filed a motion for Leave to Appeal pursuant to claims as the original proceeding. If successful, this second class Section 64(1) of the Telecommunications Act with the Federal action would be an “opt-out” class proceeding. This second Court of Appeal (Court) and an associated motion for an proceeding was ordered conditionally stayed on the basis that it interlocutory Stay of the CRTC Order. On September 27, 2019, the was an abuse of process. Court granted an Interim Stay suspending the Order until the At the time the Saskatchewan class action was commenced, Court rules on the Cable Carriers’ motion for an interlocutory Stay corresponding claims were filed in multiple jurisdictions across of the CRTC’s Order pending the Court’s determination of the Canada. The claims in all provinces other than Saskatchewan have Cable Carriers’ motion for Leave to Appeal. On now been dismissed or discontinued. We have not recognized a November 22, 2019, the Court granted Leave to Appeal and an liability for this contingency.

146 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 147 | (25) 2018 2,790 2,815 (38) 2019 2,807 2,845 Years ended December 31 ROGERS COMMUNICATIONS INC. rrently known to us, we believe it 2019 ANNUAL REPORT disposition Capital expenditures Proceeds on disposition CAPITAL EXPENDITURES however, requires significant judgment (see notetax 13) rules in and interpreting regulations. Our taxcould filings are materially subject to audits, changeincome which tax the assets amountcertain and of circumstances, liabilities result currentpenalties. and in and provisions, the deferred and assessment could, of in interestOther claims and 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. 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 is and not uncertaintiesproceedings probable involved and claims, that in individually oradverse the the in total, ultimate legal effect will havecondition. resolution a on material If of it our becomesclaims any against business, probable us, of we that will financial recognize wewhich these a the will results, provision change during be in the or probability period heldour occurs, in liable which financial could for Consolidated beStatements material of to Financial Statements Position. of Income or Consolidated (In millions of dollars) Capital expenditures before proceeds on (6) (47) (31) 103 (114) (133) 2018 9 7 61 (41) (138) (174) 2019 Years ended December 31 ncurred by long-term users of s. The class action relates to the hat we have adequately provided working capital items Contract and other liabilities Total change in non-cash operating (In millions of dollars) Accounts receivable Inventories Other current assets Accounts payable and accrued liabilities CHANGE IN NON-CASH OPERATING WORKING CAPITAL ITEMS NOTE 29: SUPPLEMENTAL CASH FLOW INFORMATION Income taxes We provide for income taxescurrently based on available all and of the believe information t that is alleged adverse healthcellular devices. effects The i plaintiffsand were punitive seeking damages, unspecified effectivelythe damages equal portion to the ofreasonably reimbursement revenue be of attributed the toIn the defendants March sale have 2019, of the cellular receivedany plaintiffs phones payment discontinued in that by Rogers. Canada. the can class action without for these items. The calculation of applicable taxes in many cases, Cellular devices In July 2013, a class actionproviders was launched in British Columbia ofmanufacturers against of wireless device wireless communications in Canada and 911 fee In June 2008, a classproviders action of wireless was communications launched services in inallegations Saskatchewan Canada. against It of involves breachadvertising, among of other things, contract, inbeen relation to misrepresentation, charged the 911 by and feeproviders us that false had and in thedamages Canada. other and wireless restitution. Thecertifying telecommunication The plaintiffs plaintiffs the intendSaskatchewan. are to proceeding We seek seekingcontingency. an have unspecified as order not a recognized national a class liability for action this in Glossary of selected industry terms and helpful links

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

148 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT Helpful links

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

Penetration: The degree to which a product or service Wi-Fi: The commercial name for a networking has been sold into, or adopted by, the base of technology standard for wireless LANs that essentially For a more comprehensive glossary potential customers or subscribers in a given provide the same connectivity as wired networks, but of industry and technology terms, geographic area. This value is typically expressed as a at lower speeds. Wi-Fi allows any user with a Wi-Fi- percentage. enabled device to connect to a wireless access point. go to rogers.com/glossary

2019 ANNUAL REPORT ROGERS COMMUNICATIONS INC. | 149 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 2019 High Low Close per Share (CUSIP # 775109200) CUSTOMER SERVICE AND First Quarter $73.82 $68.38 $71.87 $0.50 PRODUCT INFORMATION (NYSE): Second Quarter $72.89 $65.40 $70.10 $0.50 888.764.3771 or rogers.com RCI – Class B Non-Voting shares Third Quarter $71.78 $64.42 $64.53 $0.50 (CUSIP # 775109200) Fourth Quarter $66.73 $60.06 $64.48 $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 2019 certificates, share transfers, estate settlements or Class A Voting 111,154,811 dividends, please contact our transfer agent and registrar: Class B Non-Voting 393,770,507 DEBT SECURITIES AST Trust Company (Canada) For details of the public debt securities of the Rogers 2020 Expected Dividend Dates P.O. Box 700, Postal Station B companies, please refer to the “Debt Securities” Record Date*: Payment Date*: Montreal, QC H3B 3K3, Canada section under investors.rogers.com 416.682.3860 or 800.387.0825 March 10, 2020 April 1, 2020 [email protected] INDEPENDENT AUDITORS June 10, 2020 July 2, 2020 KPMG LLP Duplicate Mailings September 9, 2020 October 1, 2020 If you receive duplicate shareholder mailings from ON-LINE INFORMATION December 10, 2020 January 4, 2021 Rogers Communications, please contact AST Trust Rogers is committed to open and full financial Company (Canada) as detailed above to consolidate disclosure and best practices in corporate * Subject to Board approval your accounts. governance.Weinviteyoutovisit investors.rogers.com where you will find additional Unless indicated otherwise, all dividends paid by INVESTOR RELATIONS information about our business, including events and Rogers Communications are designated as “eligible” Institutional investors, securities analysts and others presentations, news releases, regulatory filings, dividends for the purposes of the Income Tax Act requiring additional financial information can visit governance practices, corporate social responsibility (Canada) and any similar provincial legislation. investors.rogers.com or contact us at: and our continuous disclosure materials, including quarterly financial releases, annual information forms, DIVIDEND REINVESTMENT PLAN (DRIP) 647.435.6470 or and management information circulars. You may also Rogers offers a convenient dividend reinvestment 416.935.7777 (outside North America) subscribe to our news by email or RSS feeds to program for eligible shareholders to purchase or [email protected] automatically receive Rogers news releases additional Rogers Communications shares by electronically. reinvesting their cash dividends without incurring CORPORATE PHILANTHROPY brokerage fees or administration fees. For plan For information relating to Rogers’ various DIRECT DEPOSIT SERVICE information and enrolment materials or to learn more philanthropic endeavours, refer to the “About Shareholders may have dividends deposited directly about Rogers’ DRIP, please visit https://ca.astfinancial. Rogers” section of rogers.com into accounts held at financial institutions. To arrange com/InvestorServices/Search-DRIP or contact AST direct deposit service, please contact AST Trust Trust Company (Canada) as detailed earlier on this SUSTAINABILITY Company (Canada) as detailed earlier on this page. 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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150 | ROGERS COMMUNICATIONS INC. 2019 ANNUAL REPORT The best is yet to come.