Rogers 2014 Annual Report Download - page 5

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Contents
2 Message to Shareholders
4 Overhaul the Customer Experience
6 Drive Growth in the Business Market
8 Invest In and Develop Our People
10 Deliver Compelling Content Everywhere
12 Focus on Innovation and Network Leadership
14 Go to Market as One Rogers
16 Good Corporate Citizenship
18 Corporate Governance
20 Directors and Senior Executive Ocers
22 Why Invest in Rogers
24 Management’s Discussion and Analysis
87 Management’s Responsibility for
Financial Reporting
87 Independent Auditors’ Report
88 Consolidated Statements of Income
89 Consolidated Statements of
Comprehensive Income
90 Consolidated Statements of
Financial Position
91 Consolidated Statements of
Changes in Shareholders’ Equity
92 Consolidated Statements of Cash Flows
93 Notes to Consolidated Financial Statements
132 Glossary of Selected Industry Terms
and Helpful Links
134 Corporate and Shareholder Information
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 ✔
✖ Missed ✔ Achieved Exceeded
1 Should be read in conjunction with the accompanying Management’s Discussion and Analysis later in this report.
2 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
GO TO MARKET AS
ONE ROGERS
WHAT WE SAID: Re-establish our
growth by better leveraging our
assets and consistently executing
as One Rogers.
WHAT WE DID: Developed a
plan to leverage all Rogers’ assets
to increase customer loyalty, with
the NHL and shomi roll-out
successes as point of proof.
DATA REVENUE
GROWTH
WHAT WE SAID: Generate strong
wireless and broadband data
growth consistent with our data
usage monetization strategy.
WHAT WE DID: Grew wireless
and broadband data revenues
by 10% and 7%, respectively over
2013 levels.
FREE CASH FLOW
GENERATION
WHAT WE SAID: Deliver another
year of significant consolidated
free cash flow.
WHAT WE DID: Generated
$1.4 billion of free cash flow in
2014, supporting the significant
investments and cash we returned
to shareholders during the year.
HIGHER VALUE
WIRELESS SUBSCRIBERS
WHAT WE SAID: Continue the
growth in our smartphone
subscriber base to drive wireless
data revenue and ARPU.
WHAT WE DID: Activated over
2.6 million smartphones and
shifted wireless subscriber growth
to higher ARPU ‘Share Everything’
service plans.
DIVIDEND
GROWTH
WHAT WE SAID: Increase cash
returns to shareholders
consistently over time.
WHAT WE DID: Increased the
annualized dividend per share
5% from $1.74 to $1.83 in 2014.
Further increased the dividend
by 5% to $1.92 in January 2015.
EVOLVE AND ENHANCE
TELEVISION PLATFORM
WHAT WE SAID: Invest in the
evolution of our current TV
platform and extend our video
offerings to new platforms.
WHAT WE DID: Enhanced and
expanded NextBox3.0 superior
TV experience and launched
complimentary shomi subscription
video on demand OTT service.
FAST AND RELIABLE
NETWORKS
WHAT WE SAID: Maintain Rogers
leadership in network technology
and innovation.
WHAT WE DID: Acquired 24 MHz
of contiguous 700 MHz spectrum
and was again named both the
fastest wireless network and the
fastest broadband ISP in Canada
by PCMag.com.
ROGERS 3.0
WHAT WE SAID: Develop and
implement a plan to overhaul the
customer experience and
accelerate growth.
WHAT WE DID: Unveiled a multi-
year plan to lay the groundwork
to reaccelerate revenue and cash
flow growth relative to peers.
2014 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 1