MANAGEMENT’S DISCUSSION AND ANALYSIS MEDIA FINANCIAL RESULTS ACQUISITIONS (In millions of dollars, except percentages) 2013 1 2012 % Chg Operating revenue – Media $ 1,704 $ 1,620 5 Operating expenses (1,543) (1,430) 8 Adjusted operating profit – Media $ 161 $ 190 (15) Adjusted operating profit margin 9.4 % 11.7 % Additions to property, plant and equipment $ 79 $ 55 44 Years ended December 31 GLYPH<129> Closed our agreement to acquire Metro 14 Montreal for $10 million on February 4, 2013, and relaunched the station as City Montreal, expanding the City broadcast TV network into the largest market in Quebec and increasing the City television network reach to over 80 % of Canadian households. GLYPH<129> Finalized our purchase of theScore, Canada’s third largest specialty sports channel, for $167 million. We later rebranded theScore as Sportsnet 360. GLYPH<129> Advanced our strategy of delivering highly sought-after sports content anywhere, anytime, on any platform and strengthening the value of our sports brand by entering into an exclusive 12-year licensing agreement with the NHL which begins with the 2014-2015 season and grants Rogers the following: GLYPH<129> advertising sales across its television, radio, publishing and digital media properties GLYPH<129> circulation GLYPH<129> subscriptions GLYPH<129> retail product sales GLYPH<129> ticket sales, receipts of MLB revenue sharing and concession sales associated with Rogers Sports Entertainment. GLYPH<129> higher subscription and advertising revenue generated by the Sportsnet properties, including the acquisition of theScore, and overall growth in distribution of our other specialty channels GLYPH<129> higher advertising revenue of $21 million resulting from timing of NHL hockey games. Advertising revenue last year was lower than normal due to the NHL player lockout which resulted in no NHL games being aired, and higher than normal this year due to the compressed 2012-2013 season which started in January 2013 and the compressed 2013-2014 NHL schedule in advance of the upcoming winter Olympics GLYPH<129> higher attendance and merchandise sales at Blue Jays games GLYPH<129> higher sales at The Shopping Channel. The increases in revenue were partially offset by continuing volatility in advertising spending across most industry sectors, driven by a continued slow economy. Through this agreement, Rogers plans to provide Canadians with a unique viewing experience that will feature expanded pre- and post- game coverage of regular season and playoff games and other enhanced NHL content. We expect this agreement to drive Sportsnet subscriber growth and to provide highly sought after content in multiple languages across all of Rogers’ platforms. - national rights across television broadcasts, wireless and mobile tablets and Internet streaming - national rights to all regular season games, all playoff games and the Stanley Cup Final, and all special events and non- game events (e.g. NHL All-Star Game, NHL Draft) – in multiple languages - out-of-market rights for all regional games - ownership of all linear and digital highlights, including condensed games and video archives - NHL broadcast assets: Rogers to operate NHL Centre Ice and NHL Game Centre Live - sponsorship rights to the NHL Shield logo as an official partner of the NHL - Canadian representation of ad sales for NHL.com - ownership of all commercial inventories for the television broadcasts - rights to sublicense broadcasting rights to TVA and CBC - rights to use the Hockey Night In Canada brand through the CBC sublicense agreement. Operating revenue was 5 % higher this year, mainly because of: 48 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT Higher Operating Revenue Media generates revenue in five areas: 1 Results of operations include theScore’s operating results as of April 30, 2013 (the date of acquisition). (IN MILLIONS OF DOLLARS) MEDIA REVENUE 2013 2012 2011 $1,704 $1,620 $1,611 NHL