Rogers 2014 Annual Report Download - page 40

MANAGEMENT’S DISCUSSION AND ANALYSIS
2015 OBJECTIVES
OVERHAUL THE CUSTOMER EXPERIENCE
We aim to create a seamless experience across all channels and further
reduce the number of customer complaints. Our objective is to
continue to improve the customer experience and track those
improvements through meaningful statistics.
DRIVE GROWTH IN THE BUSINESS MARKET
We aim to grow our business market share and roll out new, next
generation products that help our business customers succeed,
resulting in growth in our market share.
INVEST IN AND DEVELOP OUR PEOPLE
We aim to transform the employee experience by rolling out selected
onboarding and development programs, as well as evolve the physical
space in which we work to promote agility and collaboration.
DELIVER COMPELLING CONTENT EVERYWHERE
We aim to continue to invest to deliver compelling content and
enhance the value of and further leverage our Media assets across
Rogers to deliver more value to our customers.
FOCUS ON INNOVATION AND NETWORK LEADERSHIP
We aim to deliver a world-class mobile video experience, continue to
innovate and bring new products and services to market, and expand
the speed and coverage of our networks, including our continued LTE
expansion.
GO TO MARKET AS ONE ROGERS
We aim to re-position our key brands and bring new products to
market as One Rogers.
FINANCIAL AND OPERATING GUIDANCE
We provide consolidated annual guidance ranges for selected financial metrics on a consolidated basis consistent with the annual plans
approved by our Board of Directors.
2014 ACHIEVEMENTS AGAINST GUIDANCE
The following table outlines guidance ranges that we had previously
provided and our actual results and achievements for the selected full
year 2014 financial metrics.
(In millions of dollars)
2014
Guidance
2014
Actual Achievement
Consolidated Guidance
Adjusted operating profit 15,000 to 5,150 5,019 ✓
Additions to property, plant
and equipment 22,275 to 2,375 2,366 ✓
Free cash flow 11,425 to 1,500 1,437 ✓
Missed x Achieved ✓Exceeded +
1Adjusted operating profit and free cash flow are non-GAAP measure and should not
be considered as a substitute or alternative for GAAP measures. These are not
defined terms under IFRS and do not have standard meanings, so may not be a
reliable way to compare us to other companies. See “Non-GAAP Measures” for
information about these measures, including how we calculate them.
2Includes additions to property, plant and equipment expenditures for Wireless,
Cable, Business Solutions, Media, and Corporate segments and excludes purchases
of spectrum licences.
2015 FULL YEAR CONSOLIDATED GUIDANCE
The following table outlines guidance ranges for selected full year
2015 consolidated financial metrics, which takes into consideration our
current outlook and our actual results for 2014 and are based on a
number of assumptions, including those noted after the table below.
Information about our guidance, including the various assumptions
underlying our guidance, is forward-looking and should be read in
conjunction with “About Forward-Looking Information” and “Risks and
Uncertainties Affecting Our Business” and the related disclosure and
information about various economic, competitive and regulatory
assumptions, factors and risks that may cause our actual future financial
and operating results to differ from what we currently expect.
We provide annual guidance ranges on a consolidated full year basis
and are consistent with annual full year board-approved plans. Any
updates to our full year financial guidance over the course of the year
would be made only to the consolidated level guidance ranges that
appear below.
Full Year 2015 Guidance
(In millions of dollars)
2014
Actual
2015
Guidance
Consolidated Guidance
Adjusted operating profit 15,019 5,020 to 5,175
Additions to property, plant and equipment 22,366 2,350 to 2,450
Free cash flow 11,437 1,350 to 1,500
1Adjusted operating profit and free cash flow are non-GAAP measures and should
not be considered as a substitute or alternative for GAAP measures. These are not
defined terms under IFRS and do not have standard meanings, so may not be a
reliable way to compare us to other companies. See “Non-GAAP Measures” for
information about these measures, including how we calculate them.
2Includes additions to property, plant and equipment expenditures for Wireless,
Cable, Business Solutions, Media, and Corporate segments and excludes purchases
of spectrum licences.
Key underlying assumptions
Our 2015 guidance ranges above are based on many assumptions,
including but not limited to the following material assumptions:
(1) Continued intense competition in all segments in which we
operate.
(2) A substantial portion of US dollar-denominated expenditures has
been hedged.
(3) No significant additional regulatory developments, shifts in
economic conditions or macro changes in the competitive
environment affecting our business activities. We note that
regulatory decisions expected during 2015 could potentially
materially alter underlying assumptions around our 2015 Wireless,
Cable, Business Solutions and/or Media results in the current and
future years, the impacts of which are currently unknown and not
factored into our guidance.
36 ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT