GlobeNewswire Inc | Jan 28, 2021 07:00AM EST

January 28, 2021

-- Continued solid execution and a strong balance sheet despite COVID-19 impacts positions Rogers well for current and post-pandemic recovery environments -- Strong delivery of Wireless postpaid net subscriber additions of 114,000, with adjusted EBITDA service margin up 370 basis points despite impacts of new Q4 lockdownsMonthly postpaid churn of 1.19%, improved 7 basis pointsService revenue down 8% and adjusted EBITDA down 3% -- Increased Cable service revenue by 3%; grew adjusted EBITDA by 5%Adjusted EBITDA margin up 60 basis points; capital intensity decreased to 22%, down 700 basis points19,000 net new Internet subscribers, 71,000 net new Ignite TV subscribers in quiet selling period -- Strong Media margins despite delays of live professional sports broadcasting -- Free cash flow of $568 million, up 14%; strong liquidity position of $5.7 billion -- Paid $253 million in dividends and declared a quarterly dividend of $0.50 per share

TORONTO, Jan. 28, 2021 (GLOBE NEWSWIRE) -- Rogers Communications Inc. today announced its unaudited financial and operating results for the fourth quarter ended December31, 2020.

Consolidated Financial Highlights

Three months ended Twelve months ended December 31 December 31(In millions of Canadian % %dollars, except per share 2020 2019 Chg 2020 2019 Chg amounts, unaudited) Total revenue 3,680 3,952 (7 ) 13,916 15,073 (8 )Total service revenue ^1 3,023 3,244 (7 ) 11,955 12,965 (8 )Adjusted EBITDA ^2 1,590 1,530 4 5,857 6,212 (6 )Net income 449 468 (4 ) 1,592 2,043 (22 )Adjusted net income ^2 500 511 (2 ) 1,725 2,135 (19 ) Diluted earnings per share $0.89 $0.92 (3 ) $3.13 $3.97 (21 )Adjusted diluted earnings $0.99 $1.00 (1 ) $3.40 $4.15 (18 )per share^ 2 Cash provided by operating 947 1,166 (19 ) 4,321 4,526 (5 )activitiesFree cash flow ^2 568 497 14 2,366 2,278 4

1 As defined. See "Key Performance Indicators".2As defined. See "Non-GAAP Measures and Related Performance Measures". These measures should not be considered substitutes or alternatives 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.

"Rogers continued to see sequential improvement in Q4, finishing the year with solid efficiency gains across all of our businesses, a strong balance sheet, solid Wireless postpaid net subscribers, and continued momentum in cash flow growth in our Cable business," said Joe Natale, President and CEO. "Despite the ongoing uncertainty from the pandemic, we remain committed to investing in our customers and our country by expanding our world-class networks that Canadians are relying on and continuing to build out Canada's largest 5G network, which will play an important role in Canada's long-term productivity and post-pandemic recovery efforts."

Quarterly Financial Highlights

Our solid financial position enables us to prioritize the actions we need to take as a result of the COVID-19 pandemic (COVID-19), continue to make high priority investments in our network, and ensure customers stay connected during this critical time.

RevenueTotal revenue decreased by 7% this quarter, largely driven by an 8% decrease in Wireless service revenue.

The Wireless service revenue decrease was mainly a result of lower roaming revenue due to global travel restrictions during COVID-19, and lower overage revenue, primarily as a result of the continued adoption of our Rogers Infinite unlimited data plans. Wireless equipment revenue decreased as a result of a lower gross additions and lower device upgrades by existing subscribers during COVID-19.

Cable revenue increased by 3% this quarter as a result of the movement of Internet customers from our legacy Internet to our Ignite Internet offerings and service pricing changes and discipline.

Media revenue decreased by 23% this quarter, primarily as a result of the postponement of the start of the 2020-2021 NHL and NBA seasons, which traditionally start early in the fourth quarter, and softness in the advertising market due to COVID-19, partially offset by higher revenue at Today's Shopping Choice.

Adjusted EBITDA and marginsConsolidated adjusted EBITDA increased 4% this quarter and our adjusted EBITDA margin increased by 450 basis points.

Wireless adjusted EBITDA decreased by 3%, primarily as a result of the flow-through impact of the aforementioned decrease in revenue, partially offset by the shift to device financing, which has significantly improved our Wireless equipment margin, and various cost efficiencies. This gave rise to an adjusted EBITDA service margin of 63.2%, an improvement of 370 basis points from last year.

Cable adjusted EBITDA increased by 5% this quarter, primarily as a result of higher service revenue, as discussed above. This gave rise to a margin of 51.0% this quarter, up 60 basis points from last year.

Media adjusted EBITDA increased by $60 million this quarter primarily due to lower programming and production costs associated with the delayed start of major sports leagues relative to our maintained subscriber revenues and lower general operating costs as a result of reduced operating activity and cost efficiencies, partially offset by lower revenue, as discussed above. This gave rise to a margin of 20.0% this quarter.

Net income and adjusted net incomeNet income and adjusted net income decreased this quarter by 4% and 2%, respectively, primarily as a result of higher depreciation and amortization and higher other expenses, partially offset by higher adjusted EBITDA.

Substantial cash flow and available liquidityThis quarter, we continued to generate substantial cash flow from operating activities of $947 million, down 19% as a result of an increase in net working capital and cash income taxes, and free cash flow of $568 million, up 14%.

Furthermore, as at December31, 2020, we had $5.7 billion of available liquidity, including $2.5 billion in cash and cash equivalents and a combined $3.2 billion available under our bank credit facility and receivables securitization program, and investment-grade credit ratings with a stable outlook.

We also returned $253 million in dividends to shareholders this quarter and we declared a $0.50 per share dividend on January 27, 2021.

Operating Environment and Strategic Highlights

COVID-19 continues to significantly impact Canadians and economies around the world as a second wave affects Canada and other locations globally. After experiencing the most significant impact of COVID-19 to date in the second quarter, our results have recovered materially and are growing sequentially, although they are still down compared to last year. As a critical service provider during this time, it is of utmost importance to ensure our customers stay connected and that our customers and employees remain safe. This has not changed since the onset of the pandemic, when we quickly shifted priorities to keep our team members safe and customers connected.

In March 2020, we took swift action to ensure our customers and employees remain safe during the pandemic, including temporarily closing the majority of our retail stores across Canada and enabling about 90% of our employees to work from home. We also took steps to ensure our customers could stay connected to the world around them, including temporarily providing free services (offering a rotating selection of premium television channels), waiving certain fees for a designated period of time (for example international roaming fees and long distance voice calling fees), and adding network capacity and managing traffic.

In early 2020, we also implemented compensation- and health and safety-related programs to help our employees get through this challenging time, including supporting employees unable to work. As provinces relaxed certain public health restrictions, we reopened most of our retail stores throughout the fall, while implementing public health and safety measures. We also launched several community initiatives to support vulnerable Canadians during the pandemic, including partnerships with several organizations to provide digital lifelines to Canadians in need and a historic partnership with Food Banks Canada to support their largest ever food drive.

In the third quarter, live sports, which were suspended in March, resumed and allowed our broadcast teams to provide coverage to Canadians despite continued restricted attendance at live sports events. As public health restrictions were lifted to certain extents across the country, we maintained our focus on keeping our employees safe and our customers connected during this time.

In late September, several Canadian provinces declared a second wave of COVID-19 had commenced and provinces have adjusted various restrictions, including mandatory closures of certain types of businesses and reduced limits on social gatherings. As an essential service, almost all our retail stores remained open to serve customers, even as lockdowns were reintroduced in certain areas in the fourth quarter. As the fourth quarter progressed, the second wave of COVID-19 accelerated, resulting in lower-than-normal consumer activity during key selling periods. While COVID-19 continues to have a significant worldwide impact, we remain confident we have the right team, a strong balance sheet, and the world-class networks that will allow us to get through the pandemic having maintained our long-term focus on growth and doing the right thing for our customers.

Our six company priorities guide our work and decision-making as we further improve our operational execution and make well-timed investments to grow our core businesses and deliver increased shareholder value. Below are some highlights from 2020.

Create best-in-class customer experiences by putting our customers first in everything we do

-- Improved Wireless postpaid churn by 11 basis points to 1.00%. -- Accelerated our digital-first plan and added self-serve options during COVID-19, with overall digital adoption up 6 points to 84% and virtual assistant conversations up over 130%. -- Moved to 100% Canada-based customer care specialists and opened our Kelowna Customer Solution Centre virtually. -- Introduced an Ignite self-installation program, including a Drop & Go option, as a safe, easy, no-contact way for customers to install our Ignite Internet and Ignite TV services, with over 93% of customers choosing to easily install their products themselves since the beginning of April. -- Launched Express Pickup, the only national carrier to give customers the convenience of ordering online and picking up in-store on the same day; expanded Pro On-the-Go to more cities across Canada, including Vancouver, Calgary, Edmonton, and Ottawa. -- Supported customers with goodwill measures at the onset of COVID-19 by waiving pay-per-use international roaming fees in all available destinations until April 30 and long distance voice calling fees across Canada until June 30.

Invest in our networks and technology to deliver leading performance and reliability

-- Launched and expanded Canada's first and largest 5G network to 160 cities and towns and started rolling out Canadas first 5G standalone core network in Montreal, Ottawa, Toronto, and Vancouver to be ready to support future devices and chipsets as they become available. -- Named best wireless network in Canada for the second year in a row, in July, by umlaut, the global leader in mobile network benchmarking, earned the number one spot in the Canada Wireless Network Quality Study by J.D. Power in the West and Ontario, in April, and ranked most consistent national wireless and broadband Internet provider in Canada by Ookla, in November. -- Expanded our cable network through the acquisition of Cable Cable Inc. and Ruralwave Inc., local telecommunications companies in the Ontario Kawartha Lakes region, and announced partnerships with Southwestern Integrated Fibre Technology (SWIFT) to bring services to underserved communities in the Regional Municipality of Waterloo and Dufferin, Norfolk, Oxford, and Simcoe counties in Ontario. -- Started rolling out wireless home broadband Internet service to more than 100 communities in Southwestern Ontario as part of our commitment to expand connectivity to rural and remote areas. -- Strengthened our Advanced Services portfolio to help make it easier for businesses and governments to serve their customers and citizens, including with new Internet of Things (IoT) collaborations, and established the Rogers Internet of Things Chair with the University of Calgary to advance IoT research. -- Added capacity and managed traffic where needed to ensure customers stayed connected during COVID-19, with total traffic on our networks up by over 50% during the first months of COVID-19, as more people started working and studying from home.

Deliver innovative solutions and compelling content that our customers will love

-- Launched Ignite SmartStream, an entertainment add-on for Ignite Internet customers, to give customers access to their favourite streaming services in one place. -- Launched 14 new apps and subscription video on-demand services on Ignite TV and expanded free content on Ignite TV with the introduction of new apps, including Fun at Home and Health at Home, tubi, XITE, and zone-ify. -- Leveraged our media assets to advance inclusion and diversity, including a prime time special Ending Racism: What Will it Take?, a new digital series LIVE: #Cityline Real on Race, and a new Sportsnet interview series Top of HER Game. -- Delivered industry-leading coverage with the return of live sports, with Sportsnet the most-watched network for all programming in Canada for key demographics and first overall in prime time in August. -- Launched access to Amazon Music on Ignite TV so customers can listen to their favourite music, as well as thousands of playlists and stations. -- Provided free access for our customers to a rotating selection of channels for a select period of time during COVID-19 and temporarily removed data usage caps for customers on limited home Internet plans so they could stream, surf, and connect during the initial phase of the pandemic.

Drive profitable growth in all the markets we serve

-- Expanded consolidated adjusted EBITDA margin by 90 basis points. -- Attracted 245,000 net Wireless postpaid subscribers, 57,000 net Internet subscribers, and 218,000 net Ignite TV subscribers. -- Generated free cash flow of $2,366 million, up 4%. -- Maintained our focus on long-term strategic growth despite the short-term economic downturn.

Develop our people and a high performance culture

-- Achieved an all-time high employee engagement score of 87% in our annual employee survey, up two points from 2019 and seven points above best-in-class. -- Received Canadas Top 100 Employers Award for the eighth year in a row and reclaimed certification for Canadas Most Admired Corporate Cultures in 2020. -- Delivered enhanced programs and employee communications to ensure employees were supported and informed during COVID-19, with 83% of teams reporting in our annual employee survey they felt supported on well-being & work-life balance during the COVID-19 crisis. -- Extended our employee virtual health care solution in partnership with Sun Life until the end of the year to give employees and their families quick access to health care professionals during COVID-19. -- Launched a new five-year Inclusion and Diversity (I&D) Strategy with measurable targets, including representation goals for equity-seeking groups across the business and at the executive level, and held 85 I&D events and listening sessions through our Employee Resource Groups. -- Announced a $10 million commitment over the next five years in free advertising and creative services to charities and small businesses that support Black, Indigenous and People of Colour (BIPOC) and equity-seeking communities by leveraging our sports and media assets as part of our I&D plan.

Be a strong, socially responsible leader in our communities across Canada

-- Partnered with Food Banks Canada (FBC) and Jays Care Foundation for Step Up to the Plate, using the Rogers Centre to store and sort provisions for the largest food hamper program in the organizations history to distribute over eight million meals for Canadian families; launched an awareness campaign across media and digital assets to raise money for FBC to address acute food shortages during COVID-19; and donated more than one million meals through a corporate donation and employee contributions. -- Raised approximately $1 million through the Hearts and Smiles campaign in support of The Frontline Fund to help Canadas frontline health care workers during COVID-19. -- Launched the 60,000 Hours Challenge as part of The 60 Project to mark our 60th anniversary in 2020, with employee volunteers supporting over 200 organizations. -- Donated $1 million to the Jays Care Foundation to deliver programs to support 35,000 youth across Canada, including virtual summer camps for 10,000 marginalized youth. -- Awarded scholarships, through the Ted Rogers Scholarship Fund, to over 400 young people to pursue post-secondary education, with an estimated 75% of community recipients from BIPOC communities. -- Partnered with The Salvation Army Canada to provide more than 1,600 digital donation units, a touchless giving option for Canadians to safely donate to the annual Christmas Kettle Campaign.

2020 Financial Guidance

In April 2020, due to the uncertainty surrounding the duration and potential outcomes of COVID-19, we withdrew the financial guidance originally issued on January 22, 2020. The impact on our operations and our financial results for the year has been material. Although COVID-19 has adversely impacted total service revenue and adjusted EBITDA in the short-term, we generated strong free cash flow, which will continue to remain a priority for us. See "About Forward-Looking Information" for more information on COVID-19, including the impacts it has had and may have on our business and the actions we are taking in response.

2021 Full-Year Consolidated Guidance

Due to the continued uncertainty surrounding the duration and potential outcomes of COVID-19, we are unable at this time to predict the ongoing future impacts on our operations and financial results, but the impact in 2020 was material and could remain material in 2021. It is difficult at this time to reliably estimate our financial results for the full-year 2021. We will therefore not provide a financial outlook for 2021 unless and until such a time as we can make a reasonable estimate of our financial results for 2021. See "About Forward-Looking Information" for more information on COVID-19, including the impacts it has had and may have on our business and the actions we are taking in response.

About Rogers

Rogers is a proud Canadian company dedicated to making more possible for Canadians each and every day. Our founder, Ted Rogers, purchased his first radio station, CHFI, in 1960. We have grown to become a leading technology and media company that strives to provide the very best in wireless, residential, sports, and media to Canadians and Canadian businesses. Our shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).

Investment community contact Media contact Paul Carpino Andrew Garas647.435.6470 647.242.7924paul.carpino@rci.rogers.com andrew.garas@rci.rogers.com

Quarterly Investment Community Teleconference

Our fourth quarter 2020 results teleconference with the investment community will be held on:

-- January28, 2021 -- 8:00 a.m. Eastern Time -- webcast available at investors.rogers.com -- media are welcome to participate on a listen-only basis

A rebroadcast will be available at investors.rogers.com for at least two weeks following the teleconference. Additionally, investors should note that from time to time, Rogers' management presents at brokerage-sponsored investor conferences. Most often, but not always, these conferences are webcast by the hosting brokerage firm, and when they are webcast, links are made available on Rogers' website at investors.rogers.com.

For More Information

You can find more information relating to us on our website (investors.rogers.com), on SEDAR (sedar.com), and on EDGAR (sec.gov), or you can e-mail us at investor.relations@rci.rogers.com. Information on or connected to these and any other websites referenced in this earnings release is not part of, or incorporated into, this earnings release.

You can also go to investors.rogers.com for information about our governance practices, corporate social responsibility reporting, a glossary of communications and media industry terms, and additional information about our business.

About this Earnings Release

This earnings release contains important information about our business and our performance for the three and twelve months ended December31, 2020, as well as forward-looking information about future periods. This earnings release should be used as preparation for reading our forthcoming Management's Discussion and Analysis (MD&A) and Audited Consolidated Financial Statements for the year ended December31, 2020, which we intend to file with securities regulators in Canada and the US in the coming weeks. These documents will be made available at investors.rogers.com, sedar.com, and sec.gov or mailed upon request.

The financial information contained in this earnings release is prepared using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This earnings release should be read in conjunction with our 2019 Annual MD&A, our 2019 Audited Consolidated Financial Statements, our 2020 First, Second, and Third Quarter MD&A and Interim Condensed Consolidated Financial Statements, and our other recent filings with Canadian and US securities regulatory authorities, which are available on SEDAR at sedar.com or EDGAR at sec.gov, respectively.

We, us, our, Rogers, Rogers Communications, and the Company refer to Rogers Communications Inc. and its subsidiaries. RCI refers to the legal entity Rogers Communications Inc., not including its subsidiaries. Rogers also holds interests in various investments and ventures.

All dollar amounts are in Canadian dollars unless otherwise stated and are unaudited. All percentage changes are calculated using the rounded numbers as they appear in the tables. Information is current as at January27, 2021 and was approved by RCI's Board of Directors (the Board). This earnings release includes forward-looking statements and assumptions. See "About Forward-Looking Information" for more information.

We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).

In this earnings release, this quarter, the quarter, or fourth quarter refer to the three months ended December31, 2020, first quarter refers to the three months ended March 31, 2020, second quarter refers to the three months ended June 30, 2020, third quarter refers to the three months ended September 30, 2020, and year to date or full-year refer to the twelve months ended December31, 2020. All results commentary is compared to the equivalent periods in 2019 or as at December31, 2019, as applicable, unless otherwise indicated.

Effective January 1, 2020, we updated the key performance indicators we present for our Cable segment to align our external reporting with the focus of our internal business strategy as a result of the convergence of technologies used to deliver Internet and television services, including the continued adoption of Ignite TV. We have begun disclosing Cable average revenue per account (ARPA), customer relationships, and market penetration as defined below. Additionally, we have amended the definition of our subscriber counts for Television to include only Ignite TV and renamed the metric accordingly as a result of shifting our product offering to focus on IPTV. Finally, we have ceased reporting Phone subscribers and total service units as our Phone product is increasingly being bundled with our Internet and Television products for a very low incremental cost. These changes have been made to align our external disclosure with the focus of the business and our strategy.

Rogers and related marks are trademarks of Rogers Communications Inc. or an affiliate, used under licence. All other brand names, logos, and marks are trademarks and/or copyright of their respective owners. 2021 Rogers Communications

Reportable segmentsWe report our results of operations in three reportable segments. Each segment and the nature of its business is as follows:

Segment Principal activitiesWireless Wireless telecommunications operations for Canadian consumers and businesses. Cable telecommunications operations, including Internet, television, telephony (phone), and smart home monitoring services for CanadianCable consumers and businesses, and network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the business, public sector, and carrier wholesale markets. A diversified portfolio of media properties, including sports mediaMedia and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, and digital media.

Wireless and Cable are operated by our wholly owned subsidiary, Rogers Communications Canada Inc. (RCCI), and certain of our other wholly owned subsidiaries. Media is operated by our wholly owned subsidiary, Rogers Media Inc., and its subsidiaries.

Summary of Consolidated Financial Results

Three months ended Twelve months ended December 31 December 31(In millions ofdollars, except 2020 2019 %Chg 2020 2019 %Chg margins and per shareamounts) Revenue Wireless 2,291 2,493 (8 ) 8,530 9,250 (8 )Cable 1,019 987 3 3,946 3,954 ? Media 409 530 (23 ) 1,606 2,072 (22 )Corporate items andintercompany (39 ) (58 ) (33 ) (166 ) (203 ) (18 )eliminationsRevenue 3,680 3,952 (7 ) 13,916 15,073 (8 )Total service revenue 3,023 3,244 (7 ) 11,955 12,965 (8 )^1 Adjusted EBITDA^ 2 Wireless 1,034 1,064 (3 ) 4,067 4,345 (6 )Cable 520 497 5 1,935 1,919 1 Media 82 22 n/m 51 140 (64 )Corporate items andintercompany (46 ) (53 ) (13 ) (196 ) (192 ) 2 eliminationsAdjusted EBITDA ^2 1,590 1,530 4 5,857 6,212 (6 )Adjusted EBITDA margin 43.2 % 38.7 % 4.5 pts 42.1 % 41.2 % 0.9 pts^ 2 Net income 449 468 (4 ) 1,592 2,043 (22 )Basic earnings per $0.89 $0.92 (3 ) $3.15 $3.99 (21 )shareDiluted earnings per $0.89 $0.92 (3 ) $3.13 $3.97 (21 )share Adjusted net income^ 2 500 511 (2 ) 1,725 2,135 (19 )Adjusted basic $0.99 $1.00 (1 ) $3.42 $4.17 (18 )earnings per share^ 2Adjusted diluted $0.99 $1.00 (1 ) $3.40 $4.15 (18 )earnings per share^ 2 Capital expenditures 656 791 (17 ) 2,312 2,807 (18 )Cash provided by 947 1,166 (19 ) 4,321 4,526 (5 )operating activitiesFree cash flow ^2 568 497 14 2,366 2,278 4

n/m - not meaningful1As defined. See "Key Performance Indicators".2Adjusted EBITDA, adjusted net income, and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives 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 and Related Performance Measures" for information about these measures, including how we calculate them and the ratios in which they are used.

Results of our Reportable Segments

WIRELESS

Wireless Financial Results

Three months ended Twelve months ended December 31 December 31(In millions ofdollars, except 2020 2019 %Chg 2020 2019 %Chg margins) Revenue Service revenue 1,637 1,788 (8 ) 6,579 7,156 (8 )Equipment revenue 654 705 (7 ) 1,951 2,094 (7 )Revenue 2,291 2,493 (8 ) 8,530 9,250 (8 ) Operating expenses Cost of equipment 654 733 (11 ) 1,932 2,231 (13 )Other operating 603 696 (13 ) 2,531 2,674 (5 )expensesOperating expenses 1,257 1,429 (12 ) 4,463 4,905 (9 ) Adjusted EBITDA 1,034 1,064 (3 ) 4,067 4,345 (6 ) Adjusted EBITDA 63.2 % 59.5 % 3.7 pts 61.8 % 60.7 % 1.1 ptsservice margin^ 1Adjusted EBITDA 45.1 % 42.7 % 2.4 pts 47.7 % 47.0 % 0.7 ptsmargin^ 2Capital expenditures 337 360 (6 ) 1,100 1,320 (17 )

1Calculated using service revenue.2Calculated using total revenue.

Wireless Subscriber Results1

Three months ended Twelve months ended December 31 December 31(Inthousands,exceptchurn, 2020 2019 Chg 2020 2019 Chg blendedABPU, andblendedARPU) Postpaid Gross 458 483 (25 ) 1,381 1,566 (185 )additionsNet 114 131 (17 ) 245 334 (89 )additionsTotalpostpaid 9,683 9,438 245 9,683 9,438 245 subscribers^ 2Churn 1.19 % 1.26 % (0.07 pts) 1.00 % 1.11 % (0.11 pts)(monthly)Prepaid Gross 127 168 (41 ) 550 773 (223 )additionsNet losses (40 ) (76 ) 36 (142 ) (97 ) (45 ) Totalprepaid 1,260 1,402 (142 ) 1,260 1,402 (142 )subscribers^ 2Churn 4.31 % 5.58 % (1.27 pts) 4.38 % 4.86 % (0.48 pts)(monthly)BlendedABPU $62.82 $66.17 ($3.35 ) $63.24 $66.23 ($2.99 )(monthly)BlendedARPU $50.02 $55.26 ($5.24 ) $50.75 $55.49 ($4.74 )(monthly)

1Subscriber counts, subscriber churn, blended ABPU, and blended ARPU are key performance indicators. See "Key Performance Indicators".2As at end of period.

Service revenueThe 8% decrease in service revenue and the 9% decrease in blended ARPU this quarter were a result of:

-- lower roaming revenue, due to global travel restrictions during COVID-19; and -- a decrease in overage revenue as a result of strong customer adoption of our Rogers Infinite unlimited data plans and lower wireless data usage as customers spent more time at home on WiFi during COVID-19.

The 5% decrease in blended ABPU this quarter was primarily a result of the declines in roaming and overage revenue, partially offset by an ongoing shift as subscribers finance new, higher-value device purchases.

The decrease in postpaid gross additions, the lower postpaid net additions, and the lower postpaid churn this quarter were all a result of the impacts of COVID-19, with overall lower market activity by Canadians.

Equipment revenueThe 7% decrease in equipment revenue this quarter was a result of:

-- lower gross additions due to COVID-19, and -- lower device upgrades by existing customers; partially offset by -- the shift in product mix towards higher-value devices; and -- disciplined promotional activity during key selling periods.

Operating expensesCost of equipmentThe 11% decrease in the cost of equipment this quarter was a result of the same factors discussed in equipment revenue above. The shift to customers financing their device purchases is reflected in the improvements in our equipment margin.

Other operating expensesThe 13% decrease in other operating expenses this quarter was primarily a result of:

-- lower roaming costs due to COVID-19 travel restrictions; and -- various cost efficiencies and productivity initiatives.

Adjusted EBITDAThe 3% decrease in adjusted EBITDA this quarter was a result of the revenue and expense changes discussed above.

CABLE

Cable Financial Results

Three months ended Twelve months ended December 31 December 31(In millions of dollars, 2020 2019 %Chg 2020 2019 %Chg except margins) Revenue Service revenue 1,016 984 3 3,936 3,940 ? Equipment revenue 3 3 ? 10 14 (29 )Revenue 1,019 987 3 3,946 3,954 ? Operating expenses 499 490 2 2,011 2,035 (1 ) Adjusted EBITDA 520 497 5 1,935 1,919 1 Adjusted EBITDA margin 51.0 % 50.4 % 0.6 pts 49.0 % 48.5 % 0.5 ptsCapital expenditures 227 289 (21 ) 940 1,153 (18 )

Cable Subscriber Results 1

Three months ended December Twelve months ended December 31 31(Inthousands,except ARPA 2020 2019 Chg 2020 2019 Chg andpenetration) Internet Net additions 19 27 (8 ) 57 104 (47 )TotalInternet 2,598 2,534 64 2,598 2,534 64 subscribers^2,3,4Ignite TV Net additions 71 106 (35 ) 218 284 (66 )Total IgniteTV 544 326 218 544 326 218 subscribers^2 Homes passed 4,578 4,472 106 4,578 4,472 106 ^2Customer relationshipsNet additions 11 8 3 12 21 (9 )Totalcustomer 2,530 2,510 20 2,530 2,510 20 relationships^2,3, 4ARPA $134.43 $130.86 $3.57 $130.70 $131.71 ($1.01 )(monthly) Penetration ^ 55.3 % 56.1 % (0.8 pts) 55.3 % 56.1 % (0.8 pts)2

1Subscriber results are key performance indicators. See "Key Performance Indicators".2As at end of period.3On September 30, 2020, we acquired approximately 2,000 Internet subscribers and customer relationships as a result of our acquisition of Ruralwave Inc., which are not included in net additions, but do appear in the ending total balance for December 31, 2020.4On October 1, 2020, we acquired approximately 5,000 Internet subscribers and 6,000 customer relationships as a result of our acquisition of Cable Cable Inc., which are not included in net additions, but do appear in the ending total balance for December 31, 2020.

RevenueThe 3% increase in service revenue this quarter was a result of:

-- a 3% increase in ARPA as a result of the movement of Internet customers from our legacy Internet to our Ignite Internet offerings and service pricing changes and discipline; and -- the increase in total customer relationships over the past year, due to growth in our Internet and Ignite TV subscriber bases; partially offset by -- declines in our legacy television and home phone subscriber bases.

We remain focused on our Connected Home roadmap, driven by our Ignite TV product. During the past year, we have achieved significant growth in our Ignite TV subscriber base. The next steps on our roadmap include adding more apps and content to Ignite TV and launching more new products to help keep our customers connected.

Operating expensesThe 2% increase in operating expenses this quarter was a result of higher costs related to the increased revenue, partially offset by various cost efficiencies.

Adjusted EBITDAThe 5% increase in adjusted EBITDA this quarter was a result of the service revenue and expense changes discussed above.

MEDIA

Media Financial Results

Three months ended Twelve months ended December 31 December 31(In millions ofdollars, except 2020 2019 %Chg 2020 2019 %Chg margins) Revenue 409 530 (23 ) 1,606 2,072 (22 )Operating expenses 327 508 (36 ) 1,555 1,932 (20 ) Adjusted EBITDA 82 22 n/m 51 140 (64 ) Adjusted EBITDA margin 20.0 % 4.2 % 15.8 pts 3.2 % 6.8 % (3.6 pts)Capital expenditures 36 46 (22 ) 79 102 (23 )

Our Media results this quarter have been significantly affected by COVID-19 and reflect the postponement of the 2020-2021 NHL and NBA seasons, which traditionally start early in the fourth quarter. Additionally, our Media segment is affected by seasonal fluctuations, some of which relate to the typical amount of consumer activity and its impact on advertising and related retail cycles.

Revenue The 23% decrease in revenue this quarter was a result of:

-- lower sports-related and other advertising revenue, primarily as a result of the delayed start of major sports leagues and softness in the overall advertising market due to COVID-19; partially offset by -- higher Today's Shopping Choice revenue.

Operating expenses The 36% decrease in operating expenses this quarter was a result of:

-- lower sports programming and production costs, as a result of the delayed start of major sports leagues; and -- lower general operating costs as a result of reduced operating activity and cost efficiencies.

Adjusted EBITDAThe increase in adjusted EBITDA this quarter was a result of the revenue and expense changes discussed above.

CAPITAL EXPENDITURES

Three months ended Twelve months ended December 31 December 31(In millions ofdollars, except 2020 2019 %Chg 2020 2019 %Chg capitalintensity) Wireless 337 360 (6 ) 1,100 1,320 (17 )Cable 227 289 (21 ) 940 1,153 (18 )Media 36 46 (22 ) 79 102 (23 )Corporate 56 96 (42 ) 193 232 (17 ) Capital 656 791 (17 ) 2,312 2,807 (18 )expenditures ^1 Capital intensity 17.8 % 20.0 % (2.2 pts) 16.6 % 18.6 % (2.0 pts)^ 2

1Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences or additions to right-of-use assets.2As defined. See "Key Performance Indicators".

Consolidated capital expenditures have declined by 17% this quarter. Most of this decline has been a result of fewer residential installations, lower costs given the introduction of self-install in our Cable business, deferrals of certain projects that have been delayed as a result of the pandemic, and overall cost efficiencies as evidenced by our improving capital intensity ratios. Despite the overall decline, we continue to prioritize capital spending to support our long-term strategy, including expansion of our 5G network and our Connected Home roadmap.

WirelessCapital expenditures in Wireless this quarter, while lower than in 2019, reflect continued investments in our networks. We continued to work on our 5G deployments in the 600 MHz band and other bands as we have deployed our 5G network in 160 cities and towns and we started rolling out our 5G standalone core network in Montreal, Ottawa, Toronto, and Vancouver.

CableThe decrease in capital expenditures in Cable this quarter was a result of lower residential installation activity during the pandemic and the recognition of capital efficiencies and improved capital intensity as we prioritized network infrastructure projects, including additional fibre deployments to increase our fibre-to-the-home and fibre-to-the-curb distribution. These upgrades will lower the number of homes passed per node and incorporate the latest technologies to help deliver more bandwidth and an even more reliable customer experience as we progress in our Connected Home roadmap.

Media The decrease in capital expenditures in Media this quarter was primarily a result of lower stadium and facility investments at the Toronto Blue Jays, partially offset by an increase in IT and broadcast infrastructure expenditures.

CorporateThe decrease in corporate capital expenditures this quarter was a result of lower investments in our real estate facilities.

Capital intensityCapital intensity decreased this quarter as a result of lower capital expenditures partially offset by lower revenue, as discussed above.

Review of Consolidated Performance

This section discusses our consolidated net income and other income and expenses that do not form part of the segment discussions above.

Three months ended Twelve months ended December 31 December 31(In millions of dollars) 2020 2019 %Chg 2020 2019 %Chg Adjusted EBITDA ^1 1,590 1,530 4 5,857 6,212 (6 )Deduct (add): Depreciation and 666 638 4 2,618 2,488 5 amortizationRestructuring, 73 38 92 185 139 33 acquisition and otherFinance costs 228 230 (1 ) 881 840 5 Other expense (income) 2 (12 ) n/m 1 (10 ) n/mIncome tax expense 172 168 2 580 712 (19 ) Net income 449 468 (4 ) 1,592 2,043 (22 )

1Adjusted EBITDA is a non-GAAP measure and should not be considered a substitute or alternative for GAAP measures. It is not a defined term under IFRS and does not have a standard meaning, so may not be a reliable way to compare us to other companies. See "Non-GAAP Measures and Related Performance Measures" for information about this measure, including how we calculate it.

Depreciation and amortization

Three months ended Twelve months ended December 31 December 31(In millions of dollars) 2020 2019 %Chg 2020 2019 %Chg Depreciation of property, 605 588 3 2,390 2,297 4 plant and equipmentDepreciation of right-of-use 58 47 23 217 175 24 assetsAmortization 3 3 ? 11 16 (31 ) Total depreciation and 666 638 4 2,618 2,488 5 amortization

Total depreciation and amortization increased this quarter primarily as a result of the cumulative impact of higher capital expenditures and additions to right-of-use assets over the past several years. See "Capital Expenditures" for more information.

Restructuring, acquisition and otherThis quarter, we incurred $73 million (2019 - $38 million), in restructuring, acquisition and other expenses. In 2020, these costs were incremental, temporary employee compensation and other costs incurred in response to COVID-19 as well as severance costs associated with the targeted restructuring of our employee base. In 2019, these costs were primarily severance costs associated with the targeted restructuring of our employee base and contract termination and other costs.

Finance costs

Three months ended Twelve months ended December 31 December 31(In millions of dollars) 2020 2019 %Chg 2020 2019 %Chg Interest on borrowings^ 1 195 192 2 780 746 5 Interest on lease liabilities 18 17 6 70 61 15 Interest on post-employment 3 3 ? 13 11 18 benefits liabilityLoss on repayment of long-term ? 19 (100 ) ? 19 (100 )debt(Gain) loss on foreign exchange (8 ) (27 ) (70 ) 107 (79 ) n/mChange in fair value of 16 26 (38 ) (97 ) 80 n/mderivative instrumentsCapitalized interest (4 ) (5 ) (20 ) (19 ) (19 ) ? Other 8 5 60 27 21 29 Total finance costs 228 230 (1 ) 881 840 5

1Interest on borrowings includes interest on short-term borrowings and on long-term debt.

Income tax expense

Three months ended Twelve months ended December 31 December 31(In millions of dollars, except tax 2020 2019 2020 2019 rates) Statutory income tax rate 26.6 % 26.7 % 26.6 % 26.7 %Income before income tax expense 621 636 2,172 2,755 Computed income tax expense 165 170 578 736 Increase (decrease) in income tax expense resulting from:Non-deductible stock-based 3 ? ? ? compensationNon-deductible portion of equity 3 ? 10 7 lossesIncome tax adjustment, legislative (3 ) ? (3 ) (23 )tax changeNon-taxable portion of capital ? ? ? (2 )gainsOther items 4 (2 ) (5 ) (6 ) Total income tax expense 172 168 580 712 Effective income tax rate 27.7 % 26.4 % 26.7 % 25.8 %Cash income taxes paid 175 55 418 400

Cash income taxes increased this quarter as a result of the timing of installment payments. Our transition to a device financing business model results in earlier recognition of equipment revenue for income tax purposes. As a result, we expect a further approximately $300 million increase in our 2021 cash income tax, mostly within the first quarter, reflecting our final 2020 tax installment.

Net income

Three months ended Twelve months ended December 31 December 31(In millions ofdollars, except per 2020 2019 %Chg 2020 2019 %Chg share amounts) Net income 449 468 (4 ) 1,592 2,043 (22 )Basic earnings per $0.89 $0.92 (3 ) $3.15 $3.99 (21 )shareDiluted earnings per $0.89 $0.92 (3 ) $3.13 $3.97 (21 )share

Adjusted net incomeWe calculate adjusted net income from adjusted EBITDA as follows:

Three months ended Twelve months ended December 31 December 31(In millions ofdollars, except per 2020 2019 %Chg 2020 2019 %Chg share amounts) Adjusted EBITDA^ 1 1,590 1,530 4 5,857 6,212 (6 )Deduct: Depreciation and 666 638 4 2,618 2,488 5 amortizationFinance costs ^2 228 211 8 881 821 7 Other expense (income) 2 (12 ) n/m 1 (10 ) n/mIncome tax expense^ 3 194 182 7 632 778 (19 ) Adjusted net income^ 1 500 511 (2 ) 1,725 2,135 (19 ) Adjusted basic earnings $0.99 $1.00 (1 ) $3.42 $4.17 (18 )per share^ 1Adjusted diluted $0.99 $1.00 (1 ) $3.40 $4.15 (18 )earnings per share^ 1

1Adjusted EBITDA and adjusted net income are non-GAAP measures and should not be considered substitutes or alternatives 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 and Related Performance Measures" for information about these measures, including how we calculate them and the ratios in which they are used.2Finance costs exclude a $19 million loss on repayment of long-term debt for the three and twelve months ended December 31, 2019.3Income tax expense excludes recoveries of $19 million and $49 million (2019 - recoveries of $14 million and $43 million) for the three and twelve months ended December31, 2020, respectively, related to the income tax impact for adjusted items. Income tax expense also excludes a $3 million recovery as a result of legislative tax changes for the three and twelve months ended December 31, 2020 (2019 - $23 million for the twelve months ended December 31).

Managing our Liquidity and Financial Resources

Operating, investing, and financing activities

Three months Twelve months ended ended December December 31 31(In millions of dollars) 2020 2019 2020 2019 Cash provided by operating activities beforechanges in net operating assets and 1,581 1,521 5,880 6,167 liabilities, income taxes paid, and interestpaidChange in net operating assets and (265 ) (102 ) (333 ) (462 )liabilities ^1Income taxes paid (175 ) (55 ) (418 ) (400 )Interest paid (194 ) (198 ) (808 ) (779 ) Cash provided by operating activities 947 1,166 4,321 4,526 Investing activities: Capital expenditures (656 ) (791 ) (2,312 ) (2,807 )Additions to program rights (12 ) (31 ) (57 ) (60 )Changes in non-cash working capital related 97 109 (37 ) (35 )to capital expenditures and intangible assetsAcquisitions and other strategic (95 ) ? (103 ) (1,731 )transactions, net of cash acquiredOther 11 20 (49 ) 21 Cash used in investing activities (655 ) (693 ) (2,558 ) (4,612 ) Financing activities: Net proceeds received from (repayments of) 256 553 (1,146 ) 30 short-term borrowingsNet (repayment) issuance of long-term debt ? (92 ) 2,540 2,184 Net proceeds (payments) on settlement of debt ? 5 80 (121 )derivatives and forward contractsPrincipal payments of lease liabilities (58 ) (43 ) (213 ) (167 )Transaction costs incurred (1 ) (28 ) (23 ) (61 )Repurchase of Class B Non-Voting Shares ? (361 ) ? (655 )Dividends paid (253 ) (256 ) (1,011 ) (1,016 )Other ? (19 ) ? (19 ) Cash (used in) provided by financing (56 ) (241 ) 227 175 activities Change in cash and cash equivalents 236 232 1,990 89 Cash and cash equivalents, beginning of 2,248 262 494 405 period Cash and cash equivalents, end of period 2,484 494 2,484 494

1As a result of the growth of our financing receivable program and the ways in which we manage our business, effective this quarter and retroactively, we have reclassified the "net change in contract asset balances" and the "net change in financing receivable balances" into "change in net operating assets and liabilities". Additionally, certain 2019 reported figures have been reclassified to conform to the current presentation.

Operating activitiesThe 19% decrease in cash provided by operating activities this quarter was primarily a result of higher investments in net operating assets and liabilities due to timing, as well as higher income taxes paid. For the year, our net investment in net operating assets and liabilities was lower than in 2019.

Investing activitiesCapital expendituresDuring the quarter, we incurred $656 million on capital expenditures before changes in non-cash working capital items. See "Capital Expenditures" for more information.

Financing activitiesDuring the quarter, we received net amounts of $255 million (2019 - received $438 million), on our short-term borrowings, long-term debt, and related derivatives, net of transaction costs paid. See "Financial Risk Management" for more information on the cash flows relating to our derivative instruments.

Short-term borrowingsOur short-term borrowings consist of amounts outstanding under our receivables securitization program and under our US dollar-denominated commercial paper (US CP) program. Below is a summary of our short-term borrowings as at December31, 2020 and December 31, 2019.

As at As at December December31 31(In millions of dollars) 2020 2019 Receivables securitization program 650 650 US commercial paper program (net of the discount 571 1,588 on issuance) Total short-term borrowings 1,221 2,238

The tables below summarize the activity relating to our short-term borrowings for the three and twelve months ended December31, 2020 and 2019.

Three months ended Twelve months ended December 31, 2020 December 31, 2020(In millionsof dollars, Notional Exchange Notional Notional Exchange Notionalexcept (US$) rate (Cdn$) (US$) rate (Cdn$) exchangerates) Proceedsreceived from 200 1.280 256 3,316 1.329 4,406 US commercialpaperRepayment ofUS commercial ? ? ? (4,098 ) 1.355 (5,552 )paperNet proceedsreceived from(repayment 256 (1,146 )of) UScommercialpaper Net proceedsreceived from(repayment 256 (1,146 )of)short-termborrowings

Three months ended Twelve months ended December 31, 2019 December 31, 2019(In millionsof dollars, Notional Exchange Notional Notional Exchange Notionalexcept (US$) rate (Cdn$) (US$) rate (Cdn$) exchangerates) Proceedsreceived from 2,851 1.321 3,766 12,897 1.328 17,127 US commercialpaperRepayment ofUS commercial (2,430 ) 1.322 (3,213 ) (12,876 ) 1.328 (17,094 )paperNet proceedsreceived from 553 33 US commercialpaper Proceedsreceived from ? ? ? 420 1.336 561 creditfacilitiesRepayment ofcredit ? ? ? (420 ) 1.343 (564 )facilitiesNet repaymentof credit ? (3 )facilities Net proceedsreceived from 553 30 short-termborrowings

Concurrent with our US CP issuances, we entered into debt derivatives to hedge the foreign currency risk associated with the principal and interest components of the borrowings. See "Financial Risk Management" for more information.

Receivables securitization programOn December 23, 2020, we entered into a new receivables securitization program to replace our previous accounts receivable securitization program. The new program enables us to sell certain trade accounts receivable and financing receivables into the program, with the proceeds recorded in current liabilities as revolving floating rate loans of up to $1.2 billion, an increase from $1.05 billion in the previous program. Similar to the previous program, we will continue to service the receivables and they will continue to be recorded as accounts receivable or financing receivables, as applicable, on our Consolidated Statement of Financial Position.

The terms of our receivables securitization program are committed until its expiry on December 22, 2023. Initial funding of $650 million was available on December 23, 2020 and will increase to a minimum of $800 million on January 25, 2021. The buyers interest in these receivables ranks ahead of our interest. The buyer of our receivables has no further claim on any of our other assets.

Long-term debtOur long-term debt consists of amounts outstanding under our bank credit facilities and the senior notes and debentures we have issued. The tables below summarize the activity relating to our long-term debt for the three and twelve months ended December31, 2020 and 2019.

Three months ended Twelve months ended December 31, 2020 December 31, 2020(In millionsof dollars, Notional Exchange Notional Notional Exchange Notionalexcept (US$) rate (Cdn$) (US$) rate (Cdn$) exchangerates) Creditfacility ? ? ? 970 1.428 1,385 borrowings(US$)Creditfacility ? ? ? (970 ) 1.406 (1,364 )repayments(US$) Netborrowings ? 21 under creditfacilities Senior noteissuances ? 1,500 (Cdn$)Senior noteissuances ? ? ? 750 1.359 1,019 (US$) Net issuanceof senior ? 2,519 notes Net issuanceof long-term ? 2,540 debt

Three months ended Twelve months ended December 31, 2019 December 31, 2019(In millionsof dollars, Notional Exchange Notional Notional Exchange Notionalexcept (US$) rate (Cdn$) (US$) rate (Cdn$) exchangerates) Senior noteissuances ? 1,000 (Cdn$)Senior noteissuances 1,000 1.308 1,308 2,250 1.326 2,984 (US$)Total seniornote 1,308 3,984 issuances Senior noterepayments (1,400 ) (1,800 )(Cdn$) Net(repayment)issuance of (92 ) 2,184 long-termdebt

Three months Twelve months ended ended December 31 December 31(In millions of dollars) 2020 2019 2020 2019 Long-term debt net of transaction 18,747 16,279 15,967 14,290 costs, beginning of periodNet issuance (repayment) of ? (92 ) 2,540 2,184 long-term debtGain on foreign exchange (550 ) (195 ) (298 ) (458 )Deferred transaction costs incurred (1 ) (28 ) (23 ) (61 )Amortization of deferred transaction 5 3 15 12 costs Long-term debt net of transaction 18,201 15,967 18,201 15,967 costs, end of period

Issuance of senior notes and related debt derivativesIn November 2019, we issued US$1 billion senior notes due 2049 at a rate of 3.7%. At the same time, we entered into debt derivatives to convert all interest and principal payment obligations to Canadian dollars at a fixed interest rate. As a result, we received net proceeds of $1.3 billion from the issuance. We did not issue any senior notes this quarter.

Repayment of senior notes and related derivative settlementsWe did not repay any senior notes or settle any related debt derivatives this quarter.

In November 2019, we repaid the entire outstanding principal amount of our $900 million 4.7% senior notes otherwise due in September 2020 for which we recognized a $19 million loss on repayment of long-term debt reflecting our obligation to pay redemption premiums upon repayment. We also repaid the entire outstanding principal amount of our $500 million 5.38% senior notes, which came due in November 2019. There were no derivatives associated with these senior notes.

Repurchase of Class B Non-Voting SharesWe did not repurchase any RCI Class B Non-Voting common shares (Class B Non-Voting Shares) this quarter or year. During the three months ended December 31, 2019, we repurchased for cancellation 5.6 million Class B Non-Voting Shares under our normal course issuer bid (NCIB) program for a purchase price of $357 million. During 2019, we repurchased for cancellation 9.9 million Class B Non-Voting Shares under our NCIB programs for a total purchase price of $655 million.

DividendsBelow is a summary of the dividends we declared and paid on our outstanding RCI Class A Voting common shares (Class A Shares) and Class B Non-Voting Shares in 2020 and 2019. On October 21, 2020, the Board of Directors declared a dividend of $0.50 per Class A Share and Class B Non-Voting Share to be paid on January 4, 2021 to shareholders of record on December 10, 2020.

Declaration Payment Dividendper Dividendspaiddate Record date date share (inmillionsofdollars) (dollars) January 21, March 10, April 1, 0.50 252 2020 2020 2020April 21, June 10, July 2, 0.50 253 2020 2020 2020July 21, September 9, October 1, 0.50 253 2020 2020 2020October 21, December 10, January 4, 0.50 252 2020 2020 2021 January 24, March 12, April 1, 0.50 257 2019 2019 2019April 18, June 10, July 2, 0.50 256 2019 2019 2019June 5, 2019 September 9, October 1, 0.50 256 2019 2019October 23, December 11, January 2, 0.50 253 2019 2019 2020

Free cash flow

Three months ended Twelve months ended December 31 December 31(In millions of 2020 2019 %Chg 2020 2019 %Chg dollars) Adjusted EBITDA ^1 1,590 1,530 4 5,857 6,212 (6 )Deduct: Capital 656 791 (17 ) 2,312 2,807 (18 )expenditures^ 2Interest onborrowings, net of 191 187 2 761 727 5 capitalizedinterestCash income taxes^ 175 55 n/m 418 400 5 3 Free cash flow ^1 568 497 14 2,366 2,278 4

1Adjusted EBITDA and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives 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 and Related Performance Measures" for information about these measures, including how we calculate them and the ratios in which they are used.2Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences or additions to right-of-use assets.3Cash income taxes are net of refunds received.

Free cash flow increased this quarter primarily as a result of higher adjusted EBITDA and lower capital expenditures, partially offset by higher cash income taxes.

Financial Condition

Below is a summary of our total available liquidity under our cash and cash equivalents, bank credit facilities, letter of credit facilities, and short-term borrowings as at December31, 2020 and December 31, 2019.

As at December 31, 2020(In millions of Total Drawn Letters of US CP Net dollars) available credit program^ 1 available Bank credit facilities:Revolving 3,200 ? 8 573 2,619 Outstanding letters 101 ? 101 ? ? of creditTotal bank credit 3,301 ? 109 573 2,619 facilitiesReceivables 1,200 650 ? ? 550 securitizationCash and cash 2,484 ? ? ? 2,484 equivalents Total 6,985 650 109 573 5,653

As at December 31, 2019(In millions of Total Drawn Letters of US CP Net dollars) available credit program^ 1 available Bank credit facilities:Revolving 3,200 ? 8 1,593 1,599 Outstanding letters 101 ? 101 ? ? of creditTotal bank credit 3,301 ? 109 1,593 1,599 facilitiesReceivables 1,050 650 ? ? 400 securitizationCash and cash 494 ? ? ? 494 equivalents Total 4,845 650 109 1,593 2,493

1The US CP program amounts are gross of the discount on issuance.

In addition to the sources of available liquidity noted above, we held $1,535 million of marketable securities in publicly traded companies as at December31, 2020 (December31, 2019 - $1,831 million).

Weighted average cost of borrowingsOur weighted average cost of borrowings was 4.09% as at December31, 2020 (December31, 2019 - 4.30%) and our weighted average term to maturity was 12.8 years (December31, 2019 - 14.1 years).

Credit ratingsBelow is a summary of the credit ratings on RCI's outstanding senior notes and debentures (long-term) and US CP (short-term) as at December31, 2020.

Issuance Standard & Poor's Moody's FitchCorporate credit issuer BBB+ with a Baa1 with a BBB+ with adefault rating ^1 stable outlook stable outlook stable outlookSenior unsecured debt ^1 BBB+ with a Baa1 with a BBB+ with a stable outlook stable outlook stable outlookUS commercial paper ^1 A-2 P-2 N/A ^2

1Unchanged in the quarter.2We have not sought a rating from Fitch for our short-term obligations.

Adjusted net debt and debt leverage ratioWe use adjusted net debt and debt leverage ratio to conduct valuation-related analysis and make capital structure-related decisions. Adjusted net debt includes long-term debt, net debt derivative assets or liabilities, short-term borrowings, lease liabilities, and cash and cash equivalents or bank advances.

As at As at December December31 31(In millions of dollars, except ratios) 2020 2019 Long-term debt ^1 18,373 16,130 Net debt derivative assets valued without any (1,101 ) (1,414 )adjustment for credit risk ^2Short-term borrowings 1,221 2,238 Lease liabilities 1,835 1,725 Cash and cash equivalents (2,484 ) (494 ) Adjusted net debt^ 3 17,844 18,185 Divided by: trailing 12-month adjusted EBITDA^ 3 5,857 6,212 Debt leverage ratio^ 3 3.0 2.9

1Includes current and long-term portion of long-term debt before deferred transaction costs and discounts. See "Reconciliation of adjusted net debt and debt leverage ratio" in "Non-GAAP Measures and Related Performance Measures" for the calculation of this amount.2For purposes of calculating adjusted net debt and debt leverage ratio, we believe including debt derivatives valued without adjustment for credit risk is commonly used to evaluate debt leverage and for market valuation and transactional purposes.3Adjusted net debt and adjusted EBITDA are non-GAAP measures and should not be considered substitutes or alternatives 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 and Related Performance Measures" for information about these measures, including how we calculate them and the ratios in which they are used.

Normal course issuer bidIn April 2020, the TSX accepted a notice of our intention to commence a NCIB program that allows us to purchase, during the twelve-month period beginning April 24, 2020 and ending April 23, 2021, the lesser of 34.9 million Class B Non-Voting Shares and that number of Class B Non-Voting Shares that can be purchased for an aggregate purchase price of $500 million (2020 NCIB). Rogers security holders may obtain a copy of this notice, without charge, by contacting us.

In April 2019, we commenced a NCIB program that allowed us to purchase, during the twelve-month period beginning April 24, 2019 and ending April 23, 2020, the lesser of 35.7 million Class B Non-Voting Shares and that number of Class B Non-Voting Shares that can be purchased for an aggregate purchase price of $500 million (2019 NCIB).

We did not repurchase any Class B Non-Voting Shares this year. During the three months ended December 31, 2019, we repurchased for cancellation 5.6 million Class B Non-Voting Shares under our 2019 NCIB for a purchase price of $357 million. During 2019, we repurchased for cancellation 9.9 million Class B Non-Voting Shares under our 2019 NCIB program and our prior NCIB program for a total purchase price of $655 million.

Outstanding common shares

As at As at December 31 December 31 2020 2019 Common shares outstanding^ 1 Class A Voting Shares 111,154,811 111,154,811 Class B Non-Voting Shares 393,770,507 393,770,507 Total common shares 504,925,318 504,925,318 Options to purchase Class B Non-Voting Shares Outstanding options 4,726,634 3,154,795 Outstanding options exercisable 1,470,383 993,645

1Holders of our Class B Non-Voting Shares are entitled to receive notice of and to attend shareholder meetings; however, they are not entitled to vote at these meetings except as required by law or stipulated by stock exchanges. If an offer is made to purchase outstanding Class A Shares, there is no requirement under applicable law or our constating documents that an offer be made for the outstanding Class B Non-Voting Shares, and there is no other protection available to shareholders under our constating documents. If an offer is made to purchase both classes of shares, the offer for the Class A Shares may be made on different terms than the offer to the holders of Class B Non-Voting Shares.

Financial Risk Management

This section should be read in conjunction with "Financial Risk Management" in our 2019 Annual MD&A. We use derivative instruments to manage financial risks related to our business activities. We only use derivatives to manage risk and not for speculative purposes. We also manage our exposure to both fixed and fluctuating interest rates and had fixed the interest rate on 93.6% of our outstanding debt, including short-term borrowings, as at December31, 2020 (December31, 2019 - 87.2%).

Debt derivativesWe use cross-currency interest rate agreements and foreign exchange forward agreements (debt derivatives) to manage risks from fluctuations in foreign exchange rates and interest rates associated with our US dollar-denominated senior notes and debentures, lease liabilities, credit facility borrowings, and US dollar-denominated commercial paper borrowings. We designate the debt derivatives related to our senior notes, debentures and lease liabilities as hedges for accounting purposes against the foreign exchange risk associated with specific debt instruments. Debt derivatives related to our credit facility and US CP borrowings have not been designated as hedges for accounting purposes.

Credit facilities and US CPBelow is a summary of the debt derivatives we entered and settled related to our credit facilities and US CP program during the three and twelve months ended December31, 2020 and 2019.

Three months ended Twelve months ended December 31, 2020 December 31, 2020(In millionsof dollars, Notional Exchange Notional Notional Exchange Notionalexcept (US$) rate (Cdn$) (US$) rate (Cdn$) exchangerates) Credit facilitiesDebtderivatives ? ? ? 970 1.428 1,385 enteredDebtderivatives ? ? ? 970 1.406 1,364 settledNet cash paid ? (21 ) US commercial paper programDebtderivatives 200 1.280 256 3,316 1.329 4,406 enteredDebtderivatives ? ? ? 4,091 1.330 5,441 settledNet cash ? 101 received

Three months ended Twelve months ended December 31, 2019 December 31, 2019(In millionsof dollars, Notional Exchange Notional Notional Exchange Notionalexcept (US$) rate (Cdn$) (US$) rate (Cdn$) exchangerates) Credit facilitiesDebtderivatives ? ? ? 420 1.336 561 enteredDebtderivatives ? ? ? 420 1.343 564 settledNet cash ? 3 received US commercial paper programDebtderivatives 2,851 1.321 3,766 12,897 1.328 17,127 enteredDebtderivatives 2,426 1.321 3,204 12,847 1.329 17,069 settledNet cashreceived 5 (13 )(paid)

As at December31, 2020, we had nil and US$448 million notional amount of debt derivatives outstanding relating to our credit facility borrowings and US CP program (December31, 2019 - nil and US$1,226 million), respectively.

Senior notesBelow is a summary of the debt derivatives we entered related to senior notes during the twelve months ended December31, 2020 and 2019.

(In millions of dollars, except interest rates) US$ Hedging effect Principal/ FixedEffective Notional Maturity Coupon hedged Equivalentdate amount date rate (Cdn$) (Cdn$) (US$) interest rate^ 1 2020 issuancesJune 22, 750 2022 USD LIBOR % 0.955 % 1,019 2020 + 0.60 2019 issuancesApril 30, 1,250 2049 4.350 % 4.173 % 1,676 2019November 1,000 2049 3.700 % 3.996 % 1,308 12, 2019

1Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate.

As at December31, 2020, we had US$9,050 million (December31, 2019 - US$8,300 million) in US dollar-denominated senior notes and debentures, of which all of the associated foreign exchange and interest rate risk had been hedged using debt derivatives.

Lease liabilitiesBelow is a summary of the debt derivatives we entered and settled related to our outstanding lease liabilities for the three and twelve months ended December31, 2020 and 2019.

Three months ended December 31, Twelve months ended December 31, 2020 2020(Inmillions ofdollars, Notional Exchange Notional Notional Exchange Notional except (US$) rate (Cdn$) (US$) rate (Cdn$)exchangerates) Debtderivatives 25 1.280 32 115 1.374 158 enteredDebtderivatives 13 1.462 19 43 1.372 59 settled

Three months ended December Twelve months ended December 31, 2019 31, 2019(In millionsof dollars, Notional Exchange Notional Notional Exchange Notionalexcept (US$) rate (Cdn$) (US$) rate (Cdn$) exchangerates) Debtderivatives 70 1.314 92 70 1.314 92 enteredDebtderivatives ? ? ? ? ? ? settled

As at December31, 2020, we had US$142 million notional amount of debt derivatives outstanding relating to our outstanding lease liabilities (December31, 2019 - US$70 million) with terms to maturity ranging from January 2021 to December 2023 (December31, 2019 - January 2020 to December 2022), at an average rate of $1.352/US$ (December31, 2019 - $1.318/US$).

See "Mark-to-market value" for more information about our debt derivatives.

Expenditure derivativesWe use foreign currency forward contracts (expenditure derivatives) to manage the foreign exchange risk in our operations, designating them as hedges for accounting purposes for certain of our forecast operational and capital expenditures.

Below is a summary of the expenditure derivatives we entered and settled during the three and twelve months ended December31, 2020 and 2019.

Three months ended December 31, Twelve months ended December 31, 2020 2020(Inmillions ofdollars, Notional Exchange Notional Notional Exchange Notional except (US$) rate (Cdn$) (US$) rate (Cdn$)exchangerates) Expenditurederivatives 294 1.286 378 1,560 1.343 2,095 enteredExpenditurederivatives 205 1.298 266 940 1.299 1,221 settled

Three months ended December 31, Twelve months ended December 31, 2019 2019(Inmillions ofdollars, Notional Exchange Notional Notional Exchange Notional except (US$) rate (Cdn$) (US$) rate (Cdn$)exchangerates) Expenditurederivatives 30 1.300 39 810 1.321 1,070 enteredExpenditurederivatives 210 1.243 261 900 1.249 1,124 settled

As at December31, 2020, we had US$1,590 million notional amount of expenditure derivatives outstanding (December31, 2019 - US$990 million) with terms to maturity ranging from January 2021 to December 2022 (December31, 2019 - January 2020 to December 2021), at an average rate of $1.342/US$ (December31, 2019 - $1.300/US$).

See "Mark-to-market value" for more information about our expenditure derivatives.

Equity derivativesWe use total return swaps (equity derivatives) to hedge the market price appreciation risk of the Class B Non-Voting Shares granted under our stock-based compensation programs. The equity derivatives have not been designated as hedges for accounting purposes.

As at December31, 2020, we had equity derivatives outstanding for 4.6 million (December 31, 2019 - 4.3 million) Class B Non-Voting Shares with a weighted average price of $51.82 (December 31, 2019 - $51.76).

We did not enter into or settle any equity derivatives during the three months ended December31, 2020 or 2019.

See "Mark-to-market value" for more information about our equity derivatives.

Mark-to-market valueWe record our derivatives using an estimated credit-adjusted, mark-to-market valuation, calculated in accordance with IFRS.

As at December 31, 2020 (In millions of dollars, except Notional Exchange Notional Fairvalueexchange rates) amount rate amount (Cdn$) (US$) (Cdn$)Debt derivatives accounted for as cash flow hedges:As assets 4,550 1.0795 4,912 1,405 As liabilities 4,642 1.3359 6,201 (307 )Short-term debt derivatives not accounted for as hedges:As liabilities 449 1.2995 583 (12 )Net mark-to-market debt 1,086 derivative assetExpenditure derivativesaccounted for as cash flow hedges:As liabilities 1,590 1.3421 2,134 (109 )Equity derivatives not accounted for as hedges:As assets ? ? 238 34 Net mark-to-market asset 1,011

As at December 31, 2019 (In millions of dollars, except Notional Exchange Notional Fairvalueexchange rates) amount rate amount (Cdn$) (US$) (Cdn$)Debt derivatives accounted for as cash flow hedges:As assets 5,800 1.1357 6,587 1,508 As liabilities 2,570 1.3263 3,409 (96 )Short-term debt derivatives not accounted for as hedges:As liabilities 1,223 1.3227 1,618 (29 )Net mark-to-market debt 1,383 derivative assetExpenditure derivativesaccounted for as cash flow hedges:As assets 270 1.2391 335 16 As liabilities 720 1.3228 952 (15 )Net mark-to-market expenditure 1 derivative assetEquity derivatives not accounted for as hedges:As assets ? ? 223 55 Net mark-to-market asset 1,439

Updates to Risks and Uncertainties

See our 2019 Annual MD&A for a discussion of the principal risks and uncertainties that could have a material adverse effect on our business and financial results as at March 5, 2020, which should be reviewed in conjunction with this MD&A. The following factors may contribute to those risks and uncertainties.

Outbreak of COVID-19 and related pandemicOn March 11, 2020, the World Health Organization recognized the outbreak of COVID-19 as a pandemic and we have been closely monitoring related developments. As COVID-19 continues to significantly impact the well-being of individuals and the Canadian and global economies, we have invoked our business continuity plans and implemented a specific response plan to continue providing our essential services and support to our customers and communities while safeguarding the health and safety of the public and our employees.

We are focused on operating and maintaining our wireless and cable networks, including adding capacity and managing traffic where needed, our media operations, and the key business operations required to ensure service continuity for customers. We have implemented alternative working arrangements for employees while we review and follow directions from the government to ensure the safety of our team and implement necessary safeguards to accommodate a gradual approach in reopening our sites to employees. On March 16, 2020, and until June 30, 2020, we announced a series of measures to help our customers, including the temporary waiving of certain fees and providing access to a rotating selection of television channels and content, as we continually seek new ways to support our customers.

Public and private sector regulations, policies, and other measures aimed at reducing the transmission of COVID-19 include the imposition of business closures, travel restrictions, the promotion of social distancing, and the adoption of work-from-home and online education by companies, schools, and institutions. These measures are impacting how customers use our networks, products, and services, the manner or extent to which we can offer certain products and services (including the suspension of major sports leagues and live events), and the ability of certain suppliers and vendors to provide products and services to us.

We maintained our programs to help employees manage through COVID-19 and provide support and services to our customers and audiences. After temporarily closing most of our retail locations nationally in March, we continued a steady and phased approach to reopening our retail locations across Canada, following the public health guidelines of their respective provinces, and had reopened most of our retail stores as at December 31, 2020.

In late September, several Canadian provinces declared a second wave of COVID-19 had commenced and provinces are adjusting various restrictions, including mandatory closures of certain types of businesses and reduced limits on social gatherings. In response to the second wave, we formed a regional hotspot assessment team to monitor COVID-19 infection rates across Canada and alert management to allow appropriate responses across our businesses as required.

We remain in close contact with government officials at all levels, suppliers, partners, and key business customers, and our pandemic response plans are continually evolving.

The full extent and impact of COVID-19 is unknown. Potential adverse impacts of the pandemic include, but are not limited to:

-- the risk of a material reduction in demand for our products and services due to businesses closing or downsizing, job losses and associated financial hardship, or, more generally, a declining level of retail activity, which may lead to a decline in revenue as a result of: lower Wireless subscriber activity, including lower equipment revenue;the restriction of fan attendance at major sports league games, the potential suspension or further shortening of current or future major sports league seasons due to the second wave of COVID-19, and the associated television programming;services temporarily provided to our customers at no cost, such as long distance calling, roaming, and free television channels;lower roaming and overage revenue as customers are unable or unwilling to travel and continue to stay home; andcustomers downgrading or cancelling their services; -- an increase in delinquent or unpaid bills, which could lead to increased bad debt expense; -- issues delivering certain products and services, or maintaining or upgrading our networks, due to store closures and supply chain disruptions; -- additional capital expenditures to maintain or expand our networks in order to accommodate substantially increased network usage; and -- higher costs for new capital.

While we expect certain cost savings to offset some of the lower revenue, such as lower equipment costs, we also cannot predict the extent to which they would be offset or the extent to which they would materialize.

Although vaccine candidates have recently been announced, with a potential for the majority of Canadians being vaccinated by the fall of 2021, there is still significant uncertainty surrounding the duration and potential outcomes of COVID-19. The federal and provincial governments have introduced measures throughout the year to slow the spread of COVID-19 that may have broader impacts on the Canadian and global economies or financial markets. We are unable at this time to predict the overall impact on our operations, liquidity, financial condition, or results; however, it has had, and may continue to have, a material, adverse impact on our results. Any future epidemic, pandemic, or other public health crisis that occurs in the future may pose similar risks to us.

Wholesale Internet costing and pricingIn August 2019, in Telecom Order CRTC 2019-288, Follow-up to Telecom Orders 2016-396 and 2016-448 - Final rates for aggregated wholesale high-speed access services (Order), the CRTC set final rates for facilities-based carriers' wholesale high-speed access services, including Rogers' third party internet access (TPIA) service. The Order set final rates for Rogers that are significantly lower than the interim rates that were previously billed and it further determined that these final rates will apply retroactively to March 31, 2016.

We do not believe the final rates set by the CRTC are just and reasonable as required by the Telecommunications Act as we believe they are below cost. On September 13, 2019, Rogers, in conjunction with the other large Canadian cable companies (Cable Carriers), filed a motion for Leave to Appeal pursuant to Section 64(1) of the Telecommunications Act with the Federal Court of Appeal (Court) and an associated motion for an interlocutory Stay of the CRTC Order. The Cable Carriers also filed an appeal to Cabinet and a review and vary application back to the CRTC. On September 27, 2019, the Court granted an Interim Stay suspending the Order until the Court rules on the Cable Carriers motion for an interlocutory Stay of the CRTCs Order pending the Courts determination of the Cable Carriers motion for Leave to Appeal. On November 22, 2019, the Court granted Leave to Appeal and an interlocutory Stay of the CRTC Order. The appeal was heard in June 2020. On September 10, 2020, the Court dismissed the Cable Carriers' appeal and simultaneously vacated the interlocutory Stay previously granted. On September 28, 2020, the CRTC issued a Stay of Order 2019-288 pending review of the appropriateness of the rates established in the Order. On November 12, 2020, the Cable Carriers filed a motion for Leave to Appeal the Court's decision with the Supreme Court of Canada.

Due to the CRTC's issuance of the Stay, and the significant uncertainty surrounding both the outcome and the amount, if any, we could ultimately have to repay to the resellers, we have not recorded a liability for this contingency at this time. The CRTC's order as drafted would have resulted in a refund of amounts previously billed to the resellers of approximately $210 million, representing the impact on a retroactive basis from March 31, 2016 to December 31, 2020. We estimate the ongoing impact would be between $10 and $15 million per quarter.

Outcome of proceedingsThe outcome of all the proceedings and claims against us, including the matters described above, is subject to future resolution that includes the uncertainties of litigation. It is not possible for us to predict the result or magnitude of the claims due to the various factors and uncertainties involved in the legal process. Based on information currently known to us, we believe it is not probable that the ultimate resolution of any of these proceedings and claims, individually or in total, will have a material adverse effect on our business, financial results, or financial condition. If circumstances change and it becomes probable that we will be held liable for claims against us and such claim is estimable, we will recognize a provision during the period in which the change in probability occurs, which could be material to our Consolidated Statements of Income or Consolidated Statements of Financial Position.

Key Performance Indicators

We measure the success of our strategy using a number of key performance indicators that are defined and discussed in our 2019 Annual MD&A and this earnings release. We believe these key performance indicators allow us to appropriately measure our performance against our operating strategy and against the results of our peers and competitors. The following key performance indicators are not measurements in accordance with IFRS and should not be considered alternatives to net income or any other measure of performance under IFRS. They include:

-- subscriber counts; Wireless;Cable; andhomes passed (Cable); -- Wireless subscriber churn (churn); -- Wireless blended average billings per user (ABPU); -- Wireless blended average revenue per user(ARPU); -- Cable average revenue per account (ARPA); -- Cable customer relationships; -- Cable market penetration (penetration); -- capital intensity; and -- total service revenue.

Effective January 1, 2020, we updated the key performance indicators we present for our Cable segment to align our external reporting with the focus of our internal business strategy as a result of the convergence of technologies used to deliver Internet and television services, including the continued adoption of Ignite TV. We have begun disclosing Cable average revenue per account (ARPA), customer relationships, and market penetration as defined below. Additionally, we have amended the definition of our subscriber counts for Television to include only Ignite TV and renamed the metric accordingly as a result of shifting our product offering to focus on IPTV. Finally, we have ceased reporting Phone subscribers and total service units as our Phone product is increasingly being bundled with our Internet and Television products for a very low incremental cost. These changes have been made to align our external disclosure with the focus of the business and our strategy. Our updated definitions are as follows:

SUBSCRIBER COUNTSSubscriber count (Cable)

-- Cable Ignite TV and Internet subscribers are represented by a dwelling unit. -- When there is more than one unit in a single dwelling, such as an apartment building, each tenant with cable service is counted as an individual subscriber, whether the service is invoiced separately or included in the tenant's rent. Institutional units, such as hospitals or hotels, are each considered one subscriber. -- Cable Ignite TV and Internet subscribers include only those subscribers who have service installed and operating, and who are being billed accordingly. -- Subscriber counts exclude certain business services delivered over our fibre network and data centre infrastructure, and circuit-switched local and long distance voice services and legacy data services where access is delivered using leased third-party network elements and tariffed ILEC services.

CUSTOMER RELATIONSHIPSCustomer relationships are represented by dwelling units where at least one of our Cable services (i.e. Internet, legacy television or Ignite TV, and/or home phone) are installed and operating, and the service or services are billed accordingly. When there is more than one unit in one dwelling, such as an apartment building, each tenant with at least one of our Cable services is counted as an individual customer relationship, whether the service is invoiced separately or included in the tenant's rent. Institutional units, like hospitals or hotels, are each considered one customer relationship.

AVERAGE REVENUE PER ACCOUNT (CABLE) Average revenue per account (ARPA) measures total average spending by a single customer account on Cable products. We use it to identify trends and measure our success in attracting and retaining multiple-service accounts. We calculate ARPA by dividing Cable service revenue by the average total number of customer relationships for the same period.

MARKET PENETRATIONMarket penetration (penetration) measures our success at attracting new households to our brands and products within our network footprint. Market penetration is calculated by dividing customer relationships by homes passed. An increasing market penetration rate reflects more new customer relationships than new homes passed.

Non-GAAP Measures and Related Performance Measures

We use the following non-GAAP measures and related performance measures. These are reviewed regularly by management and the Board in assessing our performance and making decisions regarding the ongoing operations of our business and its ability to generate cash flows. Some or all of these measures may also be used by investors, lending institutions, and credit rating agencies as indicators of our operating performance, of our ability to incur and service debt, and as measurements to value companies in the telecommunications sector. These are not recognized measures under GAAP and do not have standard meanings under IFRS, so may not be reliable ways to compare us to other companies.

Non-GAAP Mostmeasure or comparablerelated Why we use it How we calculate it IFRSfinancialperformance measuremeasure To evaluate the Adjusted EBITDA: performance of our Net income businesses, and when add (deduct) ? making decisions about income tax expense the ongoing operations (recovery); finance of the business and costs; depreciation andAdjusted our ability to amortization; otherEBITDA generate cash flows. expense (income); We believe that restructuring, certain investors and acquisition and other; analysts use adjusted and loss (gain) on Net incomeAdjusted ? EBITDA to measure our disposition of property,EBITDA ability to service plant and equipment.margin debt and to meet other payment obligations. We also use it as one component in Adjusted EBITDA margin: ? determining short-term Adjusted EBITDA incentive compensation divided by for all management revenue (or service employees. revenue for Wireless). Adjusted net income: Net income add (deduct) restructuring, acquisition and other; loss (recovery) on sale or wind down of investments; loss (gain) on disposition of property, plant and equipment; (gain) on To assess the acquisitions; loss onAdjusted performance of our non-controlling interestnet businesses before the purchase obligations;income effects of the noted loss on repayment of Net income items, because they long-term debt; loss on affect the bond forward derivatives; comparability of our and income taxAdjusted ? financial results and adjustments on these Basic andbasic could potentially items, including dilutedand diluted distort the analysis adjustments as a result earnings perearnings of trends in business of legislative changes. shareper performance. Excludingshare these items does not imply that they are non-recurring. Adjusted basic and diluted earnings per share: Adjusted net income and adjusted net income including the dilutive effect of stock-based compensation divided by basic and diluted weighted average shares outstanding. To show how much cash we have available to repay debt and Adjusted EBITDA ? reinvest in our deduct company, which is an capital expenditures;Free cash important indicator of interest on borrowings Cash providedflow our financial strength net of capitalized by operating and performance. interest; and cash income activities We believe that some taxes. investors and analysts ? use free cash flow to value a business and its underlying assets. Total long-term debt To conduct add (deduct) valuation-related current portion of ? analysis and make long-term debt; deferred decisions about transaction costs and capital structure. discounts; net debtAdjusted derivative (assets)net liabilities; credit risk Long-termdebt adjustment related to net debt We believe this helps debt derivatives; current investors and analysts portion of lease ? analyze our enterprise liabilities; lease and equity value and liabilities; bank assess our leverage. advances (cash and cash equivalents); and short-term borrowings. To conduct valuation-related ? analysis and make Adjusted net debtDebt decisions about (defined above) Long-term debtleverage capital structure. divided by divided by netratio We believe this helps 12-month trailing income investors and analysts adjusted EBITDA (defined ? analyze our enterprise above). and equity value and assess our leverage.

Reconciliation of adjusted EBITDA

Three months ended Twelve months ended December 31 December 31(In millions of dollars) 2020 2019 2020 2019 Net income 449 468 1,592 2,043 Add: Income tax expense 172 168 580 712 Finance costs 228 230 881 840 Depreciation and 666 638 2,618 2,488 amortization EBITDA 1,515 1,504 5,671 6,083 Add (deduct): Other expense (income) 2 (12 ) 1 (10 )Restructuring, acquisition 73 38 185 139 and other Adjusted EBITDA 1,590 1,530 5,857 6,212

Reconciliation of adjusted EBITDA margin

Three months ended Twelve months ended December 31 December 31(In millions of dollars, 2020 2019 2020 2019 except margins) Adjusted EBITDA 1,590 1,530 5,857 6,212 Divided by: total revenue 3,680 3,952 13,916 15,073 Adjusted EBITDA margin 43.2 % 38.7 % 42.1 % 41.2 %

Reconciliation of adjusted net income

Three months ended Twelve months ended December 31 December 31(In millions of dollars) 2020 2019 2020 2019 Net income 449 468 1,592 2,043 Add (deduct): Restructuring, acquisition and 73 38 185 139 otherLoss on repayment of long-term ? 19 ? 19 debtIncome tax impact of above (19 ) (14 ) (49 ) (43 )itemsIncome tax adjustment, (3 ) ? (3 ) (23 )legislative tax change Adjusted net income 500 511 1,725 2,135

Reconciliation of adjusted earnings per share

Three months Twelve months ended December ended December 31 31(In millions of dollars, except per shareamounts; number of shares outstanding in 2020 2019 2020 2019 millions) Adjusted basic earnings per share: Adjusted net income 500 511 1,725 2,135 Divided by: Weighted average number of shares 505 509 505 512 outstanding Adjusted basic earnings per share $0.99 $1.00 $3.42 $4.17 Adjusted diluted earnings per share: Diluted adjusted net income 500 511 1,718 2,129 Divided by: Diluted weighted average number of shares 506 510 506 513 outstanding Adjusted diluted earnings per share $0.99 $1.00 $3.40 $4.15

Reconciliation of free cash flow

Three months ended Twelve months ended December 31 December 31(In millions of dollars) 2020 2019 2020 2019 Cash provided by operating 947 1,166 4,321 4,526 activitiesAdd (deduct): Capital expenditures (656 ) (791 ) (2,312 ) (2,807 )Interest on borrowings, net of (191 ) (187 ) (761 ) (727 )capitalized interestInterest paid 194 198 808 779 Restructuring, acquisition and 73 38 185 139 otherProgram rights amortization (23 ) (19 ) (77 ) (77 )Change in net operating assets 265 102 333 462 and liabilities ^1Other adjustments ^1 (41 ) (10 ) (131 ) (17 ) Free cash flow 568 497 2,366 2,278

1As a result of the growth of our financing receivable program and the ways in which we manage our business, effective this quarter and retroactively, we have reclassified the "net change in contract asset balances" and the "net change in financing receivable balances" into "change in net operating assets and liabilities". Additionally, certain 2019 reported figures have been reclassified to conform to the current presentation.

Reconciliation of adjusted net debt and debt leverage ratio

As at Asat December December31 31(In millions of dollars) 2020 2019 Current portion of long-term debt 1,450 ? Long-term debt 16,751 15,967 Deferred transaction costs and discounts 172 163 18,373 16,130 Add (deduct): Net debt derivative assets (1,086 ) (1,383 )Credit risk adjustment related to net debt (15 ) (31 )derivative assetsShort-term borrowings 1,221 2,238 Current portion of lease liabilities 278 230 Lease liabilities 1,557 1,495 Cash and cash equivalents (2,484 ) (494 ) Adjusted net debt 17,844 18,185

As at As at December 31 December31(In millions of dollars, except ratios) 2020 2019 Adjusted net debt 17,844 18,185 Divided by: trailing 12-month adjusted EBITDA 5,857 6,212 Debt leverage ratio 3.0 2.9

Other Information

Consolidated financial results - quarterly summaryBelow is a summary of our consolidated results for the past eight quarters.

2020 2019(In millionsof dollars, Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 except pershare amounts)Revenue Wireless 2,291 2,228 1,934 2,077 2,493 2,324 2,244 2,189 Cable 1,019 988 966 973 987 994 997 976 Media 409 489 296 412 530 483 591 468 Corporateitems and (39 ) (40 ) (41 ) (46 ) (58 ) (47 ) (52 ) (46 )intercompanyeliminationsTotal revenue 3,680 3,665 3,155 3,416 3,952 3,754 3,780 3,587 Total service 3,023 3,086 2,797 3,049 3,244 3,233 3,345 3,143 revenue ^1 Adjusted EBITDA ^2Wireless 1,034 1,089 918 1,026 1,064 1,138 1,128 1,015 Cable 520 508 454 453 497 499 478 445 Media 82 89 (35 ) (85 ) 22 130 72 (84 )Corporateitems and (46 ) (48 ) (43 ) (59 ) (53 ) (55 ) (43 ) (41 )intercompanyeliminationsAdjusted 1,590 1,638 1,294 1,335 1,530 1,712 1,635 1,335 EBITDADeduct (add): Depreciationand 666 663 650 639 638 627 614 609 amortizationRestructuring,acquisition 73 49 42 21 38 42 39 20 and otherFinance costs 228 219 214 220 230 215 206 189 Other expense 2 6 7 (14 ) (12 ) 16 (1 ) (13 )(income)Net incomebefore income 621 701 381 469 636 812 777 530 tax expenseIncome tax 172 189 102 117 168 219 186 139 expenseNet income 449 512 279 352 468 593 591 391 Earnings per share:Basic $0.89 $1.01 $0.55 $0.70 $0.92 $1.16 $1.15 $0.76 Diluted $0.89 $1.01 $0.54 $0.68 $0.92 $1.14 $1.15 $0.76 Net income 449 512 279 352 468 593 591 391 Add (deduct): Restructuring,acquisition 73 49 42 21 38 42 39 20 and otherLoss onrepayment of ? ? ? ? 19 ? ? ? long-term debtIncome taximpact of (19 ) (13 ) (11 ) (6 ) (14 ) (13 ) (10 ) (6 )above itemsIncome taxadjustment, (3 ) ? ? ? ? ? (23 ) ? legislativetax changeAdjusted net 500 548 310 367 511 622 597 405 income ^2 Adjustedearnings per share ^2:Basic $0.99 $1.09 $0.61 $0.73 $1.00 $1.22 $1.17 $0.79 Diluted $0.99 $1.08 $0.60 $0.71 $1.00 $1.19 $1.16 $0.78 Capital 656 504 559 593 791 657 742 617 expendituresCash providedby operating 947 986 1,429 959 1,166 1,305 1,057 998 activitiesFree cash flow 568 868 468 462 497 767 609 405 ^2

1As defined. See "Key Performance Indicators".2Adjusted EBITDA, adjusted net income, and free cash flow are non-GAAP measures and should not be considered substitutes or alternatives 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 and Related Performance Measures" for information about these measures, including how we calculate them and the ratios in which they are used.

Supplementary Information

Rogers Communications Inc.Interim Condensed Consolidated Statements of Income(In millions of dollars, except for per share amounts, unaudited)

Three months ended Twelve months ended December 31 December 31 2020 2019 2020 2019 Revenue 3,680 3,952 13,916 15,073 Operating expenses: Operating costs 2,090 2,422 8,059 8,861 Depreciation and 666 638 2,618 2,488 amortizationRestructuring, acquisition 73 38 185 139 and otherFinance costs 228 230 881 840 Other expense (income) 2 (12 ) 1 (10 ) Income before income tax 621 636 2,172 2,755 expenseIncome tax expense 172 168 580 712 Net income for the period 449 468 1,592 2,043 Earnings per share: Basic $0.89 $0.92 $3.15 $3.99 Diluted $0.89 $0.92 $3.13 $3.97

Rogers Communications Inc.Interim Condensed Consolidated Statements of Financial Position(In millions of dollars, unaudited)

As at As at December 31 December 31 2020 2019 Assets Current assets: Cash and cash equivalents 2,484 494 Accounts receivable ^1 2,856 2,376 Inventories 479 460 Current portion of contract assets 533 1,234 Other current assets ^1 516 452 Current portion of derivative instruments 61 101 Total current assets 6,929 5,117 Property, plant and equipment 14,018 13,934 Intangible assets 8,926 8,905 Investments 2,536 2,830 Derivative instruments 1,378 1,478 Financing receivables ^1 748 76 Other long-term assets ^1 346 756 Goodwill 3,973 3,923 Total assets 38,854 37,019 Liabilities and shareholders? equity Current liabilities: Short-term borrowings 1,221 2,238 Accounts payable and accrued liabilities 2,714 3,033 Income tax payable 344 48 Other current liabilities ^1 243 191 Contract liabilities 336 224 Current portion of long-term debt 1,450 ? Current portion of lease liabilities 278 230 Total current liabilities 6,586 5,964 Provisions 42 36 Long-term debt 16,751 15,967 Lease liabilities 1,557 1,495 Other long-term liabilities ^1 1,149 704 Deferred tax liabilities 3,196 3,437 Total liabilities 29,281 27,603 Shareholders? equity 9,573 9,416 Total liabilities and shareholders? equity 38,854 37,019

1As a result of the growth of our financing receivable program and the ways in which we manage our business, effective this quarter and retroactively, we have reclassified certain balances. Current financing receivables have been reclassified from "other current assets" to "accounts receivable", "financing receivables" have been separately disclosed and reclassified from "other long-term assets", and "contract assets" have been reclassified to "other long-term assets". Derivative instrument liabilities have been reclassified to "other current liabilities" and "other long-term liabilities", as applicable.

Rogers Communications Inc.Interim Condensed Consolidated Statements of Cash Flows(In millions of dollars, unaudited)

Three months Twelve months ended ended December December 31 31 2020 2019 2020 2019 Operating activities: Net income for the period 449 468 1,592 2,043 Adjustments to reconcile net income to cash provided by operating activities:Depreciation and amortization 666 638 2,618 2,488 Program rights amortization 23 19 77 77 Finance costs 228 230 881 840 Income tax expense 172 168 580 712 Post-employment benefits contributions, net 39 7 13 (75 )of expenseOther^ 1 4 (9 ) 119 82 Cash provided by operating activities beforechanges in net operating assets and 1,581 1,521 5,880 6,167 liabilities, income taxes paid, and interestpaidChange in net operating assets and (265 ) (102 ) (333 ) (462 )liabilities ^1Income taxes paid (175 ) (55 ) (418 ) (400 )Interest paid (194 ) (198 ) (808 ) (779 ) Cash provided by operating activities 947 1,166 4,321 4,526 Investing activities: Capital expenditures (656 ) (791 ) (2,312 ) (2,807 )Additions to program rights (12 ) (31 ) (57 ) (60 )Changes in non-cash working capital related 97 109 (37 ) (35 )to capital expenditures and intangible assetsAcquisitions and other strategic (95 ) ? (103 ) (1,731 )transactions, net of cash acquiredOther 11 20 (49 ) 21 Cash used in investing activities (655 ) (693 ) (2,558 ) (4,612 ) Financing activities: Net proceeds received from (repayments of) 256 553 (1,146 ) 30 short-term borrowingsNet (repayment) issuance of long-term debt ? (92 ) 2,540 2,184 Net proceeds (payments) on settlement of debt ? 5 80 (121 )derivatives and forward contractsPrincipal payments of lease liabilities (58 ) (43 ) (213 ) (167 )Transaction costs incurred (1 ) (28 ) (23 ) (61 )Repurchase of Class B Non-Voting Shares ? (361 ) ? (655 )Dividends paid (253 ) (256 ) (1,011 ) (1,016 )Other ? (19 ) ? (19 ) Cash (used in) provided by financing (56 ) (241 ) 227 175 activities Change in cash and cash equivalents 236 232 1,990 89 Cash and cash equivalents, beginning of 2,248 262 494 405 period Cash and cash equivalents, end of period 2,484 494 2,484 494

1As a result of the growth of our financing receivable program and the ways in which we manage our business, effective this quarter and retroactively, we have reclassified the "net change in contract asset balances" and the "net change in financing receivable balances" into "change in net operating assets and liabilities". Additionally, certain 2019 reported figures have been reclassified to conform to the current presentation.

Change in net operating assets and liabilities

Three months ended Twelve months ended December 31 December 31(In millions of dollars) 2020 2019 2020 2019 Accounts receivable, excluding 30 (228 ) 455 (174 )financing receivablesFinancing receivables (540 ) (83 ) (1,658 ) (120 )Contract assets^ 1 256 (148 ) 1,170 (204 )Inventories (17 ) (66 ) (19 ) 7 Other current assets (60 ) 27 (132 ) (41 )Accounts payable and accrued 15 313 (326 ) 61 liabilitiesOther liabilities^ 1 51 83 177 9 Total change in net operating (265 ) (102 ) (333 ) (462 )assets and liabilities

1As a result of the growth of our financing receivable program and the ways in which we manage our business, effective this quarter and retroactively, we have reclassified certain balances. Changes in contract liabilities previously presented on a net basis within "contract assets" have been reclassified to "other liabilities".

Investments

As at Asat December December31 31(In millions of dollars) 2020 2019 Investments in: Publicly traded companies 1,535 1,831 Private companies 97 107 Investments, measured at fair value through other 1,632 1,938 comprehensive incomeInvestments, associates and joint ventures 904 892 Total investments 2,536 2,830

Long-term debt

As at As at December December31 31(In millions of Principal Interestdollars, except Duedate amount rate 2020 2019 interest rates) Senior notes 2021 1,450 5.340% 1,450 1,450 Senior notes 2022 600 4.000% 600 600 Senior notes 2022 US 750 Floating 955 ? Senior notes 2023 US 500 3.000% 637 649 Senior notes 2023 US 850 4.100% 1,082 1,104 Senior notes 2024 600 4.000% 600 600 Senior notes 2025 US 700 3.625% 890 909 Senior notes 2026 US 500 2.900% 637 649 Senior notes 2027 1,500 3.650% 1,500 ? Senior notes 2029 1,000 3.250% 1,000 1,000 Senior debentures ^ 2032 US 200 8.750% 255 260 1Senior notes 2038 US 350 7.500% 446 455 Senior notes 2039 500 6.680% 500 500 Senior notes 2040 800 6.110% 800 800 Senior notes 2041 400 6.560% 400 400 Senior notes 2043 US 500 4.500% 637 649 Senior notes 2043 US 650 5.450% 827 844 Senior notes 2044 US 1,050 5.000% 1,337 1,365 Senior notes 2048 US 750 4.300% 955 973 Senior notes 2049 US 1,250 4.350% 1,592 1,624 Senior notes 2049 US 1,000 3.700% 1,273 1,299 18,373 16,130 Deferredtransaction costs (172 ) (163 )and discountsLess current (1,450 ) ? portion Total long-term 16,751 15,967 debt

1Senior debentures originally issued by Rogers Cable Inc. which are unsecured obligations of RCI and for which RCCI was an unsecured guarantor as at December31, 2020 and December31, 2019.

About Forward-Looking Information

This earnings release includes "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking information"), and assumptions about, among other things, our business, operations, and financial performance and condition approved by our management on the date of this earnings release. This forward-looking information and these assumptions include, but are not limited to, statements about our objectives and strategies to achieve those objectives, and about our beliefs, plans, expectations, anticipations, estimates, or intentions.

Forward-looking information:

-- typically includes words like could, expect, may, anticipate, assume, believe, intend, estimate, plan, project, guidance, outlook, target, and similar expressions, although not all forward-looking information includes them; -- includes conclusions, forecasts, and projections that are based on our current objectives and strategies and on estimates, expectations, assumptions, and other factors, most of which are confidential and proprietary and that we believe to have been reasonable at the time they were applied but may prove to be incorrect; and -- was approved by our management on the date of this earnings release.

Our forward-looking information includes forecasts and projections related to the following items, some of which are non-GAAP measures (see "Non-GAAP Measures and Related Performance Measures"), among others:

-- revenue; -- total service revenue; -- adjusted EBITDA; -- capital expenditures; -- cash income tax payments; -- free cash flow; -- dividend payments; -- the growth of new products and services; -- expected growth in subscribers and the services to which they subscribe; -- the cost of acquiring and retaining subscribers and deployment of new services; -- continued cost reductions and efficiency improvements; -- traction against our debt leverage ratio; -- statements relating to plans we have implemented in response to COVID-19 and its impact on us; and -- all other statements that are not historical facts.

Our conclusions, forecasts, and projections are based on the following factors, among others:

-- general economic and industry growth rates; -- currency exchange rates and interest rates; -- product pricing levels and competitive intensity; -- subscriber growth; -- pricing, usage, and churn rates; -- changes in government regulation; -- technology deployment; -- availability of devices; -- timing of new product launches; -- content and equipment costs; -- the integration of acquisitions; -- industry structure and stability; and, -- the impact of COVID-19 on our operations, liquidity, financial condition, or results.

Except as otherwise indicated, this earnings release and our forward-looking information do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations, or other transactions that may be considered or announced or may occur after the date on which the statement containing the forward-looking information is made.

Risks and uncertaintiesActual events and results can be substantially different from what is expressed or implied by forward-looking information as a result of risks, uncertainties, and other factors, many of which are beyond our control, including, but not limited to:

-- regulatory changes; -- technological changes; -- economic, geopolitical, and other conditions affecting commercial activity; -- unanticipated changes in content or equipment costs; -- changing conditions in the entertainment, information, and communications industries; -- the integration of acquisitions; -- litigation and tax matters; -- the level of competitive intensity; -- the emergence of new opportunities; -- external threats, such as epidemics, pandemics, and other public health crises, natural disasters, the effects of climate change, or cyberattacks, among others; and -- new interpretations and new accounting standards from accounting standards bodies.

These factors can also affect our objectives, strategies, and intentions. Many of these factors are beyond our control or our current expectations or knowledge. Should one or more of these risks, uncertainties, or other factors materialize, our objectives, strategies, or intentions change, or any other factors or assumptions underlying the forward-looking information prove incorrect, our actual results and our plans could vary significantly from what we currently foresee.

Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and caution them that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future events, or otherwise, except as required by law. All of the forward-looking information in this earnings release is qualified by the cautionary statements herein.

Before making an investment decisionBefore making any investment decisions and for a detailed discussion of the risks, uncertainties, and environment associated with our business, fully review the "Updates to Risks and Uncertainties" section in this earnings release and fully review the sections in our 2019 Annual MD&A entitled "Regulation in Our Industry" and "Governance and Risk Management", as well as our various other filings with Canadian and US securities regulators, which can be found at sedar.com and sec.gov, respectively. Information on or connected to sedar.com, sec.gov, our website, or any other website referenced in this document is not part of or incorporated into this earnings release.