Capital Intensity Return on Assets Dividend Payout Ratios 1 Adjusted operating profit and adjusted net debt are Non-GAAP measures and should not be considered as substitutes or alternatives for GAAP measures. They are not defined terms under IFRS, and do not have a standard meaning, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures” for information about these measures, including how we calculate them. 1 Pre-tax free cash flow is a Non-GAAP measure and should not be considered as 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” for information about these measures, including how we calculate them. Capital intensity allows us to compare the level of our additions to property, plant and equipment to that of other companies within the same industry. We calculate it by dividing additions to property, plant and equipment by operating revenue. For Wireless, capital intensity is calculated using total network revenue. We use it to evaluate the performance of our assets and when making decisions about the capital expenditures. We believe that certain investors and analysts use capital intensity to measure the performance of asset purchases and construction in relation to revenue. We use return on assets to measure our efficiency in using our assets to generate net income. We calculate return on assets by dividing net income for the year by total assets as at year end. We use adjusted net debt to conduct valuation-related analysis and make capital structure related decisions and calculate it as adjusted net debt divided by adjusted operating profit. We calculate the dividend payout ratio by dividing dividends declared for the year by net income for the year. We use dividends as a percentage of pre-tax free cash flow to conduct analysis and assist with determining the dividends we should pay. We calculate dividends as a percentage of pre-tax cash flow as dividends declared for the year divided by pre-tax free cash flow for the year. Adjusted Net Debt to Adjusted Operating Profit MANAGEMENT’S DISCUSSION  AN D ANALYSIS 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 83 Years ended December 31 (In millions of dollars, except percentages and ratios) 2013 2012 Return on assets Net income $ 1,669 $ 1,693 Divided by: total assets as at December 31 23,601 19,618 Return on assets 7.1 % 8.6 % Years ended December 31 (In millions of dollars, except percentages and ratios) 2013 2012 Adjusted net debt/adjusted operating profit Adjusted net debt $11,734 $11,169 Divided by: adjusted operating profit 1 4,993 4,834 Debt/adjusted operating profit 2.4 2.3 Years ended December 31 (In millions of dollars, except percentages and ratios) 2013 2012 Dividend payout ratio Dividends declared for the year $ 896 $ 820 Divided by: net income 1,669 1,693 Ratio 54 % 48 % Dividends as a percentage of pre-tax free cash flow Dividends declared for the year $ 896 $ 820 Divided by: pre-tax free cash flow 1 2,044 2,029 Ratio 44 % 40 %