MANAGEMENT’S DISCUSSION AND ANALYSIS OUR STRATEGY 1. DELIVER DIFFERENTIATED END-TO-END CUSTOMER EXPERIENCES OUR PROGRESS IN 2013 4. STRENGTHEN THE CUSTOMER EXPERIENCE OUR PROGRESS IN 2013 2. MAINTAIN INDUSTRY-LEADING NETWORKS OUR PROGRESS IN 2013 OUR PROGRESS IN 2013 5. IMPROVE PRODUCTIVITY AND COST STRUCTURE 3. EXPAND OUR SERVICES REACH 6. DRIVE FUTURE GROWTH OPPORTUNITIES OUR PROGRESS IN 2013 OUR PROGRESS IN 2013 32 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT Focus on evolving our cross-device, multi-screen integration to enable seamless, reliable and easy-to-use product experiences anytime, anyplace and anywhere; on delivering a differentiated range of devices and device-related services; and on enabling greater integration of our media assets across screens. We launched new products, including Rogers Smart Home Monitoring, to customers in Ontario’s Golden Horseshoe area and Atlantic Canada. We completed several strategic acquisitions this year that strengthened our offering of cable television, Internet and telephony services in the Hamilton, Ontario area, established Business Solutions as a leader in Canadian data centre and hosting services and increased the reach of our television broadcast network to over 80 % of Canadian households. We continued to evolve our wireless offering this year, redesigning and simplifying wireless offerings and pricing tiers, and introducing Canada’s first wireless Share Everything plan. We also launched a hybrid wireless home and small business phone solution that operates on our national wireless network. Cable unveiled the next generation of TV experience with NextBox 3.0, and Media made significant progress this year, announcing a landmark exclusive 12-year licensing agreement to broadcast national NHL games, launching a subscription digital magazine service, upgrading The Shopping Channel, and including adding a mobile app and social media. It also launched Sportsnet 360, and announced a 10-year partnership extension with the Vancouver Canucks. Constantly improve the experience that customers have using our products and services by making it easier for them, providing the tools and resources customers need to use our products with confidence, being attuned to our customers’ evolving needs and continuing to simplify our product offerings. We launched several new programs this year to improve the customer experience, including Canada’s first Share Everything plans for individuals, families and small businesses, our “worry free” $7.99 per day US wireless data roaming plan, a new suite of simplified travel value packs of voice, text and data roaming, and the Rogers First Rewards loyalty program, and we received regulatory approval for the Rogers credit card. Connected for Success, our new broadband Internet pilot project is designed to provide affordable broadband Internet, computers and software to residents of Toronto Community Housing as part of the Rogers Youth Fund program. Reinforce our network’s reliability and speed to capture and monetize the growth in data consumption by expanding our LTE network to a wider proportion of the Canadian population, continuing to increase broadband Internet speeds, and further enhancing our TV platforms with next generation features and functionality. We continued to expand our high speed wireless LTE 4G broadband network this year, and offered the largest selection of LTE devices of any carrier in Canada. Our LTE 4G network was the first in Canada, which covered approximately 73 % of the Canadian population at December 31, 2013. Continue to focus on cost-optimization initiatives and organizational efficiency by improving service delivery, reducing complexity, focusing on fewer projects with more impact, managing expenses and working more closely with key suppliers. We continued to make progress on our cost efficiency initiatives this year, which contributed to a 3 % increase in consolidated adjusted operating profit and a 6 basis point increase in our consolidated adjusted operating profit margin to 39.3 % , driven mostly by Wireless and Cable. We were also recognized for our networks: PCMag.com named us Canada’s fastest broadband Internet service provider and wireless network in October 2013, and SamKnows stated through in-home testing in May 2013, that we delivered, on average, 100 % or more of our advertised download speeds on our most popular Internet packages, better than most providers they tested in the US and Europe. Continue to develop targeted new growth areas of our business, including machine-to-machine (M2M) communications, mobile commerce and video, business communications services, local and digital media services, home automation and sports. Expand the reach of our networks and services through new construction and targeted acquisitions that complement our existing platforms; by more widely deploying products and services; and by expanding the reach of our key media brands nationally and across our digital platforms. We made strides in the M2M market this year, demonstrating a single, worldwide SIM card with our M2M global alliance partners that will strengthen our M2M offering to multinational customers, and announcing an M2M agreement with Sprint to bring a comprehensive in-car infotainment solution to the Canadian market. We also certified the Suretap wallet, our mobile payment service, for the Android and BlackBerry 10 operating smartphone systems. We received a licence to operate a bank for the purposes of launching a Rogers’ branded credit card. In addition, we expanded our Rogers Smart Home Monitoring footprint, and launched other initiatives such as Outrank, an online site for marketing and advertising small business, introduced Rogers Alerts and other digital opportunities. We expanded our wireless network by establishing key network sharing agreements to bring LTE to more customers at faster speeds to customers in Manitoba, Quebec and the Ottawa region, and through our relationship with AT&T to become the first Canadian carrier to offer LTE roaming for customers travelling to the US. We also secured an option to buy Shaw’s Advanced Wireless Service (AWS) spectrum holdings. To achieve our vision and drive our future growth, we have six strategic objectives. We made significant progress this year against each of these, across all business segments. See “Key Highlights” for more detail about individual highlights.