MAKE MORE POSSIBLE Rogers Communications Inc
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MAKE MORE POSSIBLE Rogers 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 ROGERS COMMUNICATIONS 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 radio station, CHFI. From these modest beginnings, Rogers has grown to become a proud Canadian company – a company devoted to delivering the very best in wireless, 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 #ROGERS place 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 Toronto 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 Canada’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 wireless network · 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 Vancouver, Toronto, Ottawa, and Montreal · 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 Internet 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 speed 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.