one ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT WIRELESS CABLE MEDIA ROGERS COMMUNICATIONS INC. Rogers Communications (TSX: RCI; NYSE: RCI) is a diversified Canadian telecommunications and media company. As discussed on the following pages, Rogers Communications is engaged in the telecom and media businesses through its primary reporting segments Wireless, Cable, Business Solutions and Media. ROGERS COMMUNICATIONS WIRELESS CABLE BUSINESS SOLUTIONS MEDIA WIRELESS SEGMENT The Wireless segment provides wireless voice and data communications services across Canada to approximately 9.5 million customers under the Rogers, Fido and chatr brands. Wireless is Canada’s largest wireless provider and the only national carrier operating on the combined global standard GSM/HSPA+/LTE technology platforms. Wireless is also Canada’s leader in innovative wireless services, and provides customers with the best and latest wireless devices and applications and the fastest network speeds. Wireless provides seamless wireless roaming across the U.S. and more than 200 other countries, and is the Canadian leader in the deployment of mobile commerce and machine-to-machine communications. CABLE AND BUSINESS SOLUTIONS SEGMENTS Cable is a leading Canadian cable services provider, whose service territory covers approximately 4.0 million homes in Ontario, New Brunswick and Newfoundland representing approximately 30% of the total Canadian cable market. Our advanced digital hybrid fibre-coax network provides market leading high-speed broadband Internet access speeds, the most innovative selection of digital television and online viewing and telephony services to millions of residential and small business customers. Together with the Business Solutions segment, it also provides scalable carrier-grade business telecom, networking, hosting and managed data services, and IP connectivity and solutions to medium and large enterprise, government and carrier customers. MEDIA SEGMENT Media is Canada’s premier destination for category-leading television and radio broadcasting, sports entertainment, publishing, and digital media properties. Television assets include the national City network which reaches approximately 80% of Canadians, five OMNI Television multilingual channels, seven regional and national Sportsnet channels, as well as specialty channels FX, FXX, OLN and G4. Media also owns The Shopping Channel, Canada’s only nationally televised and online shopping service. It operates more than 50 Canadian radio stations, publishes 40+ well known consumer and business magazines, and owns a suite of digital media properties including Next Issue. Media owns the Toronto Blue Jays Baseball Club and Rogers Centre, holds a 37.5% investment in Maple Leaf Sports & Entertainment, owner of Toronto Maple Leafs, Toronto Raptors and Toronto FC, and a 50% interest in streaming subscription video on demand (SVOD) service shomi. AT A GLANCE REVENUE ADJUSTED OPERATING PROFIT 2014 CONSOLIDATED REVENUE 1 ($ IN BILLIONS) ($ IN BILLIONS) $12.9 BILLION 2014 12.9 2014 5.0 WIRELESS 56% CABLE 27% 2013 12.7 2013 5.0 $12.9 BILLION MEDIA 14% 2012 12.5 2012 4.8 BUSINESS SOLUTIONS 3% 1 Includes elimination of intersegment revenues REVENUE ADJUSTED OPERATING PROFIT 2014 REVENUE ($ IN BILLIONS) ($ IN BILLIONS) $7.3 BILLION 2014 7.3 2014 3.2 DATA 48% POSTPAID VOICE 42% 2013 7.3 2013 3.2 $7.3 BILLION 2012 7.3 2012 3.1 EQUIPMENT 8% PREPAID VOICE 2% REVENUE ADJUSTED OPERATING PROFIT 2014 REVENUE ($ IN BILLIONS) ($ IN BILLIONS) $3.9 BILLION 2014 0.38 3.5 2014 0.12 1.7 TELEVISION 45% INTERNET 33% 2013 0.37 3.5 2013 0.11 1.7 $3.9 BILLION PHONE 12% 2012 0.35 3.4 2012 0.09 1.6 BUSINESS SOLUTIONS 10% BUSINESS SOLUTIONS / CABLE BUSINESS SOLUTIONS / CABLE REVENUE ADJUSTED OPERATING PROFIT 2014 REVENUE ($ IN BILLIONS) ($ IN BILLIONS) $1.8 BILLION TELEVISION 47% 2014 1.8 2014 0.13 THE SHOPPING CHANNEL 16% SPORTS ENTERTAINMENT 13% 2013 1.7 2013 0.16 $1.8 BILLION RADIO 13% 2012 1.6 2012 0.19 PUBLISHING 11% AT A GLANCE Our Business Rogers Communications Inc. is a diversified Canadian telecommunications and media company. In Wireless we are Canada’s largest wireless voice and data telecommunications services provider and the country’s only national carrier operating on the combined world standard GSM/HSPA+/ LTE technology platforms. Our Cable segment is a leading Canadian cable services provider, offering high-speed Internet access, television, and telephony products, and together with our Business Solutions segment, provides business telecom, networking, hosting, managed services and IP solutions to small, medium and large enterprise, government and carrier customers. Our Media segment is Canada’s premier group of category-leading broadcast, specialty, print and online media assets, with businesses in radio and television broadcasting, televised shopping, sports entertainment, magazine and trade journal publishing and digital media. Our Class B common shares actively trade on the TSX and NYSE with a combined average daily trading volume of approximately 1.3 million shares. In addition, our Class A shares trade on the TSX. Dividends are the same on both classes of shares and have been increased in each of the past 12 years. In 2014, each share paid an annualized dividend of $1.83, which our Board recently announced has been increased by 5% to $1.92 per share for 2015. We are included in the S&P/TSX 60 Index of the largest publicly traded companies in Canada. FOR A DETAILED DISCUSSION OF OUR FINANCIAL AND OPERATING METRICS AND RESULTS, Financial Highlights 2014 PLEASE SEE THE ACCOMPANYING MANAGEMENT’S DISCUSSION AND ANALYSIS LATER IN THIS REPORT. 2014 CONSOLIDATED REVENUE AND ADJUSTED OPERATING PROFIT PROFILE REVENUE ADJUSTED OPERATING PROFIT WIRELESS 56% WIRELESS 63% CABLE 27% $12.9 $5.0 CABLE 32% BILLION BILLION MEDIA 14% MEDIA 3% BUSINESS SOLUTIONS 3% BUSINESS SOLUTIONS 2% (IN MILLIONS OF DOLLARS, EXCEPT MARGINS, PER SHARE AMOUNTS, SUBSCRIBER AND EMPLOYEE DATA) 2014 2013 2012 2011 2010 Revenue 12,850 12,706 12,486 12,346 11,999 Adjusted operating profit 1 5,019 4,993 4,834 4,739 4,668 Adjusted operating profit margin 1 39% 39% 39% 38% 39% Adjusted net income 1 1,532 1,769 1,781 1,736 1,704 Adjusted diluted earnings per share 1 $2.96 $3.42 $3.41 $3.17 $2.94 Annualized dividend rate at year-end $1.83 $1.74 $1.58 $1.42 $1.28 Total assets 26,522 23,601 19,618 18,362 17,033 Long-term debt (includes current portion) 14,787 13,343 10,789 10,034 8,654 Shareholders’ equity 5,481 4,669 3,768 3,572 3,760 Market capitalization of equity 23,435 24,903 23,346 20,736 19,435 Wireless subscribers (000s) 9,450 9,503 9,437 9,335 8,977 Internet subscribers (000s) 2,011 1,961 1,864 1,793 1,686 Television subscribers (000s) 2,024 2,127 2,214 2,297 2,305 Cable telephony subscribers (000s) 1,150 1,153 1,074 1,052 1,003 Number of employees (approximate) 27,000 28,000 27,000 29,000 28,000 1 For a definition of these measures (which are “Non-GAAP”) see “Non-GAAP Measures” in Management’s Discussion and Analysis. Delivering on Our Commitments in 2014 ROGERS 3.0 GO TO MARKET AS FREE CASH FLOW DIVIDEND ONE ROGERS GENERATION GROWTH WHAT WE SAID: Develop and WHAT WE SAID: Re-establish our WHAT WE SAID: Deliver another WHAT WE SAID: Increase cash implement a plan to overhaul the growth by better leveraging our year of significant consolidated returns to shareholders customer experience and assets and consistently executing free cash flow. consistently over time. accelerate growth. as One Rogers. WHAT WE DID: Generated WHAT WE DID: Increased the WHAT WE DID: Unveiled a multi- WHAT WE DID: Developed a $1.4 billion of free cash flow in annualized dividend per share year plan to lay the groundwork plan to leverage all Rogers’ assets 2014, supporting the significant 5% from $1.74 to $1.83 in 2014. to reaccelerate revenue and cash to increase customer loyalty, with investments and cash we returned Further increased the dividend flow growth relative to peers. the NHL and shomi roll-out to shareholders during the year. by 5% to $1.92 in January 2015. successes as point of proof. FAST AND RELIABLE DATA REVENUE HIGHER VALUE EVOLVE AND ENHANCE NETWORKS GROWTH WIRELESS SUBSCRIBERS TELEVISION PLATFORM WHAT WE SAID: Maintain Rogers WHAT WE SAID: Generate strong WHAT WE SAID: Continue the WHAT WE SAID: Invest in the leadership in network technology wireless and broadband data growth in our smartphone evolution of our current TV and innovation. growth consistent with our data subscriber base to drive wireless platform and extend our video usage monetization strategy. data revenue and ARPU. offerings to new platforms. WHAT WE DID: Acquired 24 MHz of contiguous 700 MHz spectrum WHAT WE DID: Grew wireless WHAT WE DID: Activated over WHAT WE DID: Enhanced and and was again named both the and broadband data revenues 2.6 million smartphones and expanded NextBox3.0 superior fastest wireless network and the by 10% and 7%, respectively over shifted wireless subscriber growth TV experience and launched fastest broadband ISP in Canada 2013 levels. to higher ARPU ‘Share Everything’ complimentary shomi subscription by PCMag.com. service plans. video on demand OTT service. 2014 ACHIEVEMENTS AGAINST GUIDANCE 1 2014 2014 (IN MILLIONS OF DOLLARS) GUIDANCE ACTUALS ACHIEVEMENT Consolidated Guidance Adjusted operating profit 2 5,000 to 5,150 5,019 ✔ Additions to property, plant and equipment 2,275 to 2,375 2,366 ✔ Free cash flow 2 1,425 to 1,500 1,437 ✔ 1 Should be read in conjunction with the accompanying Management’s Discussion and Analysis later in this report. ✖ Missed ✔ Achieved Exceeded 2 For a definition of these measures (which are “Non-GAAP”) see “Non-GAAP Measures” in Management’s Discussion and Analysis.