14 slides from Rogers Communications Inc. Class A's earnings presentation, 2017
Slide 1: Q1 2017 Results
© ROGERS. Q1 2017 Results
Slide 2: Cautionary note
Cautionary note Certain statements made in this presentation, including, but not limited to, statements relating to expected future events, financial and operating results, guidance, objectives, plans, strategic priorities and other statements that are not historical facts, are forward-looking. By t
Slide 3: Accelerated operating momentum in Q1
Accelerated operating momentum in Q1 e Accelerated momentum in total service revenue and adjusted operating profit growth underpinned by strong subscriber performance in both Wireless and Cable e Executed on all key Wireless metrics including growth in revenue, adjusted operating profit, and postpai
Slide 4: Excellence in Wireless financial and operating metrics
Excellence in Wireless financial and operating metrics ° Highest service revenue growth since 2010 on a combination of subscriber growth and blended ARPU/postpaid ARPA growth ® Strong ARPA growth on continued adoption of Share Everything plans ° Blended ARPU growth of 2% Q1'16 Q1'17 ($) 119.61 Postp
Slide 5: Excellence in Wireless financial and operating metrics
Excellence in Wireless financial and operating metrics ue . (000s) * Strongest Q1 net additions since 2009 60 ° Jth . . Net adds 7‘ consecutive quarter of increased 446k postpaid net adds year on year YoY Q1"6 Q117 1.17 ° Lowest Q1 postpaid churn since 2010 monn 7bps Q116 Q117 5 © ROGERS
Slide 6: Continued strength in Internet results
Continued strength in Internet results ($M) * Cable revenue driven by solid Internet Cable 856 855 revenue growth stable . stable ° 1% Cable revenue growth excluding impact of lower wholesale revenue! Q1'16 Q117 ($M) ° Hi i ibuti Cable 328 igher margin Internet contributing to AOP AOP * 3% Cable AOP
Slide 7: Internet competitive advantage driving strong subscriber performance
Internet competitive advantage driving strong subscriber performance ® TSU net additions positive for 34 consecutive quarter driven by Internet ° Strong net adds reflect competitive advantage in Internet * 48% of residential Internet base on speeds 2100 Mbps * Ignite Gigabit Internet service availab
Slide 8: Strengthening Cable with our Comcast offerings
Strengthening Cable with our Comcast offerings ¢ X1 integration underway with plans to launch X1 IPTV in early 2018 e Includes access to Comcast's state-of-the-art customer premise equipment e Variable opex model and shifting capex to success-based investment e Our customers to benefit from a contin
Slide 9: Improving customer experience through self-serve
Improving customer experience through self-serve Increase in self-serve EnRoute expanded to Customer contact volumes transactions entire footprint down ° Focused on being a leader in flexible self-service offerings including digital adoption to empower our customers and improve our productivity ° Fi
Slide 10: Media focused on sports and shift to digital
Se Media focused on sports and shift to digital * Positive trends in Q1 revenue and AOP largely due to higher oy Sports sports-related revenue including a distribution from Major S p League Baseball and higher Sportsnet subscription revenue NW Lp ~ » GAMECENTRE 4 XK : SZ — LIVE * Shifting from print
Slide 11: Wireless Cable Business Solutions Media results table
Wireless 1,849 1,734 7% Cable 853 854 – Business Solutions 93 95 (2%) Media 474 448 6% Wireless 813 763 7% Cable 392 393 – Business Solutions 31 31 – Media (28) (49) (43%) $0.64 $0.47 36%
Slide 12: Enhancing financial flexibility
Enhancing financial flexibility ° Continue to focus on meaningful progress toward target leverage ratio of <2.5 ° Held leverage ratio stable sequentially despite seasonality impact in Q1 * Strong investment-grade debt ratings with stable outlooks * $2.6 billion in available liquidity ° Weighted aver
Slide 13: Stronger growth outlook in 2017
Se Stronger growth outlook in 2017 2016 Actuals 2017 Guidance Revenue 13,702 3% - 5% growth Adjusted operating profit 5,092 2% - 4% growth Capital expenditures 2,352 2,250 to 2,350 Free cash flow 1,705 2% - 4% growth (In millions of dollars, except percentages) ¢ Building on momentum in Wireless and
Slide 14: Well positioned to deliver increasing returns
Well positioned to deliver increasing returns 1 oo . . oO Delivering on our strategy to reaccelerate revenue and translate into attractive margins, profits, free cash flow and return on assets 2 . . (2) Growth centred on management execution of existing opportunities without the need for major acqui