Rogers Cable
Rogers Cable A leading Canadian cable provider: ~30% national share, 58% basic TV penetration & 5.2M cable service units ~91% of subscribers in 3 fibre-linked Ontario clusters (~66% in Toronto) 99% digital, cable telephony & Internet availability Highly upgraded cable plant (99% of Ontario systems at 860 MHz) Internet 30% Home Phone 14% Revenue Profile Television 56% Television Cluster (000's) Subscribers % of Total Toronto (GTA & SYD) 1,437.6 66% Ottawa 236.2 11% Southwestern Ontario 345.0 16% Total Ontario 2,018.8 91% Atlantic Canada 195.2 9% Total 2,214.0 100% Ontario Atlantic Highly clustered & upgraded cable systems 2
Growth in New Cable Services High-Speed Internet 49% penetration of homes passed (84% of TV subs) Most speed - up to 150Mbps Most choice - Ultimate, Extreme, Express, Lite & Ultra Lite tiers Most services - premium offering with best in class email & portal from Yahoo! Usage based billing (charges for usage above monthly allowances) 1,619 1,571 1,686 1,793 1,864 Digital TV Households 80% penetration of TV subs ~$20 incremental ARPU +475 channels in main markets +170 HD channels & growing Pioneer of digital simulcast 80 multicultural channels Most sports, ethnic & movies VOD & SVOD, time-shifting, whole-home PVR s, tablet TV 1,664 1,733 1,777 1,768 Cable Telephony 28% penetration of homes passed (49% of basic television subs) 1.07M telephony lines at 4Q12 Available in 99% of territory Bundled with cable, Internet, & wireless on single bill Robust small business offerings 937 1,003 1,052 1,074 1,465 1,550 1,353 656 840 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Significant penetration of high-speed Internet, digital & home phone 3
Rogers On Demand Television Available to over 97% of digital cable homes On-demand library now exceeds 8,000 titles of movies, TV shows, specials & adult Rich library of prime-time episodic content (24, 30 Rock, Mad Men, MTV etc.) Studio agreements cover 95% of Hollywood output & growing Most release dates same as video stores Subscription Video On Demand for Movie Network/HBO, Super Channel, WWE, Treehouse, National Geographic, NFL, Family Channel, HGTV, Food Network & more Array of free content including karaoke, music videos, sporting events, & TV specials Leverages digital infrastructure with minimal incremental capital 4
Broadband Television Rogers Anyplace TV First Cableco in North America to launch aggregated TV Everywhere model extending TV subscription online Three tiers of content: 1) premium TV authenticated to Rogers cable subscription, 2) Rogers customer exclusive content & 3) sample layer available to all Canadians Strong performance across platforms: - ~500,000 registered users & growing - Available on desktop, smartphones, tablets & Xbox 360 - +15,000 on demand assets on site & growing (nearly 7,000 hours), from +70 content providers - +1,100 movie titles (& growing), including new releases to rent through Anyplace TV Rentals online store Rapidly growing the service in 2012: - Continue extending Anyplace TV to multiple platforms - Building out offering for live sports events, news - Adding new content partners - Strong roadmap of enhanced features An innovative, multi-platform evolution of our TV service towards TV Everywhere: any content, any time, any place, any device 5
NEXTBOX 2.0 Watch TV anywhere with whole home PVR Watch live streaming TV on tablet New interactive program guide offers full HD, enhanced functionality, & advanced search capabilities Netbox 2.0 provides significantly enhanced user interface & functionality 6
Top Quartile Video Penetration Basic Penetration of Homes Passed 69% 59% 58% 56% 52% 42% 42% 35% 2nd highest basic cable television penetration in North America 79% digital penetration of television subscribers Digital subscribers receive enhanced choice & quality of service resulting in lower churn Incremental revenue from premium on demand & HD services Current migration to all digital allows for re-harvest of significant analog spectrum A North American leader in basic cable penetration At 3Q12 7
High-Definition Television Penetration High-Definition TV Customers 1,039 000 s 942 59% 848 53% 715 49% 7.1% 43% 4Q09 4Q10 4Q11 4Q12 HD Customers % of Digital Households 59% of digital households now subscribe to Rogers HD services (47% of all television subs) Incremental cable ARPU from HD customer >$20 over digital only & ~$40 over analog only Most HD movies & sports +170 HD channels & +1,100 HD titles on-demand 10x the HD content available from satellite Viewership of HD on-demand doubled in past year Full on-demand library of primetime episodics Strong HDTV subscriber growth driving higher television ARPU 8
Cable Financial Performance Revenue $3.4 $B Growth driven by subscriber additions & improvements in ARPU $3.2 $3.3 Higher ARPU from product bundling focus & selected price changes $2.9 $3.1 Slowing TSU additions & highly competitive markets impacting growth 2008 2009 2010 2011 2012 Operating Profit $1.6 $1.5 $1.4 48% $1.3 47% $1.2 45% 42% 41% 2013E ~48% $B Significant margin expansion over past five years Sharpened focus on operating expense efficiencies Circuit switched business divestiture complete Analog to digital conversion underway 2008 2009 2010 2011 2012 2013E 2013E Range Top-line & operating profit growth with strong margins 9
Rogers Business Solutions Primarily fiber provisioned business data & telephony solutions for medium & large enterprise, public sector & carrier segments Dedicated enterprise focused sales channel leveraging Rogers brand, core networks & multi product capabilities ~2,000 serviceable on-net & 20,000 near-net commercial buildings (representing ~34,000 target business customers) A suite of carrier class next-gen Ethernet & IP-based commercial services Positioned well to capitalize on a significant growth opportunity ~$350M revenue run rate with expanding margins ~15,000 existing enterprise customers ~50,000 broadband data circuits in service ~$4B readily serviceable enterprise market opportunity Leveraging Rogers core network, brand & strategic relationships as a preferred Canadian enterprise solutions provider 10