Rogers Communications Inc. Class A · TSX:RCI.A
Rogers Communications Inc. Class A — Q4 2017 Earnings Presentation
16 slides from Rogers Communications Inc. Class A's earnings presentation, Jan 25, 2018
Slide 1: Q4 2017 Results
4 Q4 2017 Results January 25, 2018 © ROGERS
Slide 2: Cautionary note
Cautionary note The following materials are for presentation purposes only. They accompany the discussions held during Rogers’ investor conference call on January 25, 2018 These materials should be read both in conjunction with the disclosure documents referenced below and Rogers’ Fourth Quarter 201
Slide 3: Excellent 2017 financial and subscriber performance
Excellent 2017 financial and subscriber performance + Best financial and subscriber performance in many years + Strong growth in total service revenue, adjusted operating profit, margins and free cash flow + Delivered on 2017 guidance and paid $988 million in dividends to shareholders Consolidated T
Slide 4: 2017 overall performance largely driven by Wireless
2017 overall performance largely driven by Wireless + Best Wireless financial results since 2009: + 2017 Wireless service revenue growth of 7% and AOP growth of 8% + 354,000 Wireless postpaid net subscriber additions with churn of 1.20% - best results since 2010 Wireless Service Postpaid Postpaid re
Slide 5: 2017 revenue growth in each of sports, TV, radio and digital
2017 revenue growth in each of sports, TV, radio and digital Remain focused on local content and live sports Media revenue Broadcasting TSC and other City Sportsnet remains Canada’s #1 sports media brand for third straight year Exclusive national 12-year licensing agreement , Owner of the Toronto Bl
Slide 6: Strong Q4 financial performance
Strong O4 financial performance + Continued strong financial performance in the fourth quarter driven by growth in core business + Growth in total service revenue of 4% and adjusted operating profit of 6% Consolidated Total service TEVENUE ooo eee cece +4% AOP cs +6% AOP margin ........ +1 00 bps (s
Slide 7: Q4 Wireless and Cable performance
O4 Wireless and Cable performance Wireless Cable Blended ARPU ............ +5% Postpaid gross adds ..... +20k So . + Strong financials with (s) (000s) revenue and profit growth + Balanced subscriber 456 additions with ARPU 436 performance L Jd Q4'16 Q4'17 J Ne wy Postpaid net adds Postpaid churn Per
Slide 8: Accelerated momentum in 2018
y Accelerated momentum in 2018 2018 guidance reflects continued expected growth in revenue and accelerated growth in profit and free cash flow Revenue 3% - 5% Adjusted EBITDA 5% -7% Capital expenditures 2,650 to 2,850 M Free cash flow 3% - 5% * Focused on growing the fundamentals -sustainable growth
Slide 9: Focused on our six strategic priorities
Focused on our six strategic priorities ee Create best-in-class customer Invest in our networks and Deliver innovative solutions experience by putting technology to deliver leading and compelling content that customers first in everything we do performance and reliability our customers love S, > Dri
Slide 10: Highlights from our 2018 plan
Y Highlights from our 2018 plan Create best-in-class customer experience by putting customers first in everything we do + Revised 2018 incentive plan to place 50% on customer measures * Simplifying products and processes + Accelerating website, mobile and digital roadmaps 10| 2017 O4 Results Invest
Slide 11: 11] 2017
11] 2017 24 Results
Slide 12: Q4 & 2017 financial performance
y O4 & 2017 financial performance Q4 and full-year continued Total revenue 3 strong service revenue growth; Wireless 2,189 6 margin expansion reflects solid Cable 871 2 3,466 . traction on cost reduction Business Solutions 99 3 387 1 Media 526 (4) 2,153 - 4 Wireless revenue flow Total service revenu
Slide 13: Q4 & 2017 financial performance
y O4 & 2017 financial performance Full-year free cash flow growth in line with guidance; Q4 not Net income 419 meaningful 1,711 105 impacted by timing of capex programs Adjusted net income 455 19 1,821 23 Adjusted diluted EPS $0.88 19 $3.52 23 Q4 capex and capital intensity in line with updated 2017
Slide 14: Enhancing financial flexibility
V Enhancing financial flexibility Strong AOP contributed to operating cash flow of Debt $1,142 million in Q4 Leverage Ratio Continue to focus on meaningful progress toward target debt leverage ratio of <2.5 Strong investment-grade debt ratings with stable 3.0 2.8 outlooks $2.7 billion in available l
Slide 15: 2018 guidance
2018 guidance Revenue 14,143 3% - 5% growth Adjusted EBITDA 5,318 5% - 7% growth Capital expenditures, net 2,436 2,650 to 2,850 Free cash flow 1,685 3% - 5% growth (ln millions of dollars, except percentages} * Focused on driving sustainable growth in our core business including improving our overal
Slide 16: Q&A
Rogers Communications — Q4 2017 Earnings Presentation on 6ix