2017 Annual Report 1 Report to Shareholders 3 Management’s Discussion and Analysis 62 Management’s Responsibility for Financial Statements and Report on Internal Control over Financial Reporting 64 Independent Auditors’ Reports 66 Consolidated Financial Statements 125 Corporate Information The Annual General Meeting of Shareholders will be held on January 11, 2018 at 11:00 a.m. (Mountain Time) at Shaw Court, 630 – 3rd Avenue SW, Calgary, Alberta. Shaw Communications Inc. Report to Shareholders August 31, 2017 Dear Fellow Shareholders: Every day, across Canada, more people than ever are choosing Shaw to satisfy their connectivity needs and in 2017 we took deliberate steps to make it possible for even more to rely on Shaw in the future. Building on the foundation provided by the acquisition of Freedom Mobile (formerly, WIND Mobile) and the divestiture of Shaw Media in 2016, we have taken purposeful strides to evolve our value proposition, provide leading and innovative products and services, drive operational momentum and enhance our customers’ connectivity. From technology to network deployment, marketing to product pricing and packaging, and billing to service delivery, we are developing a connectivity experience made possible through converging platforms that will meet the future expectations and demands of our customers. In fiscal 2017, our team reached several milestones on our journey towards becoming a leading Canadian connectivity company. MORE COVERAGE FOR MORE CUSTOMERS By the end of 2017, more than 1.1 million Canadians had chosen our Freedom Mobile service as their wireless carrier, 10% more than in the previous year. Early in the year, we began deployment of Canada’s newest LTE network in the major metropolitan centres of Toronto, Vancouver, Calgary, Edmonton and Ottawa – giving a large majority of Freedom Mobile customers faster data speeds, smoother streaming and faster downloading. In the fourth quarter, we acquired 700 MHz and 2500 MHz wireless spectrum licences from Quebecor Media Inc (“Quebecor”). This new spectrum will materially improve our customers’ experiences and network coverage across Alberta, British Columbia and Ontario, enhancing our ability to provide true facilities-based competition and affordable wireless services on a more robust network. Also in the fourth quarter, we completed the sale of ViaWest, Inc. and its subsidiaries, to Peak 10 Holding Corporation for approximately US$1.675 billion. A portion of the net cash proceeds were used to fund the acquisition of the 700MHz and 2500 MHz spectrum licences from Quebecor. THE STRENGTH OF OUR NETWORK ALLOWS US TO DO MORE The value of our Internet service and plans is reflected in outstanding results – five consecutive quarters of robust net gains in Internet subscribers. Our continued investments in our extensive ultra-broadband network enable us to offer our fastest speeds to over 99% of Western Canadians today – a claim no other provider can make. We believe Canadians shouldn’t have limitations on how much they use the Internet, so we are making it even easier for them to take advantage of our top-tier speeds and ultra-fast network. We have maximized our significant broadband advantage to make getting online easier and more accessible. By making our flagship WideOpen Internet 150 plan available with unlimited data, we are pleased to give customers peace of mind in knowing they can stream, download and browse without any penalty for going over monthly data limits. REINVENTING CANADA’S VIDEO EXPERIENCE Subscriber gains were not just limited to our Internet and wireless businesses – our cable Video business posted a remarkable turnaround in the second half of 2017, fueled by greater choice, compelling packaging, and leading technology. The launch of Shaw BlueSky TV in mid-2017 provided momentum to our video operations, delivering a new premium television product for Canadians. Powered by Comcast’s next generation X1 platform, Shaw BlueSky TV leverages the strength of our network to make this new television experience possible for Shaw customers. Integrated with Netflix and featuring benefits like voice-controlled remote and advanced search, Shaw BlueSky TV has given customers an elevated video and entertainment experience – one that has never before been available in Canadian homes. Shaw is the first in Canada to deploy the X1 platform, and BlueSky TV has brought forward more product and feature benefits than any other television service available in the country. Its voice-controlled remote has made it easier than ever for customers to discover content: by simply saying what they are looking for, customers can immediately enjoy what they want to watch. By making it easier and more enjoyable for our customers, their families and friends to connect to the sports, shows, and movies they love, Shaw BlueSky TV has set a very high standard for Canadian television viewing. 2017 Annual Report Shaw Communications Inc. 1 Shaw Communications Inc. Report to Shareholders August 31, 2017 BECOMING CANADA’S CONNECTIVITY LEADER We look back on these achievements as critical building blocks to achieve our ultimate goal of becoming the Canadian connectivity leader. We continually remind ourselves that the journey is a long one: it requires discipline to stay true to our goal, and flexibility to capitalize on opportunity or to correct course. Our management team is well aware of the need to maintain our financial strength, so we continue to evolve our operating model to ensure we remain efficient and effective in our decision- making. As our business transforms, we are also evolving our workplace to support and empower our 14,000 employees with an adaptive and collaborative environment. By investing in and ensuring a cohesive internal employee experience, we foster the culture necessary to bring our long-term vision to life. Building off a strong foundation of leadership discipline and alignment to our core values, our team is united by a clear and single purpose which places our customer at the centre of everything we do – to connect people to the world and everything in it. For more than four decades, our success and strength has been rooted in the quality and integrity of our people, and we are committed to ensuring Shaw is the place where the best people choose to work. We are grateful to every member of our team for making that choice, and for contributing to our ongoing success by caring more, connecting more, and delivering unparalleled customer experiences across the country. [Signed] [Signed] JR Shaw Bradley S. Shaw Executive Chair Chief Executive Officer 2 Shaw Communications Inc. 2017 Annual Report Shaw Communications Inc. Management’s Discussion and Analysis August 31, 2017 November 28, 2017 FORWARD Tabular dollar amounts are in millions of Canadian dollars, except per share amounts or unless otherwise indicated. This Management’s Discussion and Analysis should be read in conjunction with the Consolidated Financial Statements. The terms “we,” “us,” “our,” “Shaw” and “the Company” refer to Shaw Communications Inc. and, as applicable, Shaw Communications Inc. and its direct and indirect subsidiaries as a group. CAUTION CONCERNING FORWARD LOOKING STATEMENTS Statements included in this Management’s Discussion and Analysis that are not historic constitute “forward-looking statements” within the meaning of applicable securities laws. Such statements include, but are not limited to: Š statements about future capital expenditures; Š asset acquisitions and dispositions; Š cost efficiencies; Š financial guidance for future performance; Š business and technology strategies and measures to implement strategies; Š statements about the Company’s equity investments, joint ventures and partnership arrangements; Š competitive strengths; Š expected growth in subscribers and the products/services to which they subscribe; Š the cost of acquiring and retaining subscribers and deployment of new services; and Š expansion and growth of Shaw’s business and operations and other goals and plans. They can generally be identified by words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “target”, “goal” and similar expressions (although not all forward-looking statements contain such words). All of the forward-looking statements made in this report are qualified by these cautionary statements. Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances as of the current date. The Company’s management believes that its assumptions and analysis in this Management’s Discussion and Analysis are reasonable and that the expectations reflected in the forward-looking statements contained herein are also reasonable based on the information available on the date such statements are made and the process used to prepare the information. These assumptions, many of which are confidential, include but are not limited to: Š general economic conditions; Š interest; Š income tax and exchange rates; Š technology deployment; Š subscriber growth; Š pricing, usage, and churn rates; Š availability of devices; Š content and equipment costs; Š industry structure; Š conditions and stability; Š government regulation; Š the completion of any transactions; and Š the integration of acquisitions. You should not place undue reliance on any forward-looking statements. Many factors, including