Annual General Meeting of Shareholders

Transcription

1 Annual General Meeting of Shareholders April 23, 2013 Certain Slides Updated July, 2013

2 Alan Horn Chairman of the Board of Directors

3 Agenda Opening Remarks Alan Horn, Chairman Business of the Meeting Alan Horn, Chairman CEO s Remarks Nadir Mohamed, CEO Financial Review Tony Staffieri, CFO Questions & Answers Reception with Directors & Officers 2013 Annual Meeting of Shareholders 3

4 Agenda Opening Remarks Alan Horn Business of the Meeting Alan Horn CEO s Remarks Nadir Mohamed Financial Review Tony Staffieri Questions & Answers Reception with Directors & Officers 2013 Annual Meeting of Shareholders 4

5 Slide Updated July, 2013 Cautionary Note Certain statements made in this presentation, including, but not limited to, statements relating to expected future events, financial & operating results, guidance, objectives, plans, strategic priorities & other statements that are not historical facts, are forward-looking. By their nature, forward-looking statements require Rogers management to make assumptions & predictions & are subject to inherent risks & uncertainties, thus there is risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results & events to differ materially from that expressed in the forward-looking statements. Accordingly our comments are subject to the disclaimer & qualified by the assumptions & risk factors referred to in Rogers 2012 annual MD&A, as filed with securities regulators at sedar.com & sec.gov, & also available at rogers.com/investors. The forward-looking statements made in this presentation & discussion describe our expectations as of today &, accordingly, are subject to change going forward. Except as required by law, Rogers disclaims any intention or obligation to update or revise forward-looking statements. In addition, this presentation includes non-gaap measures including adjusted operating profit, adjusted net income, adjusted EPS, & pre & after tax free cash flow. Descriptions of these measures & why they are used can be found in the disclosure documents referenced above & a reconciliation of them to IFRS measures can be found later in this presentation as an addendum.

6 Nadir Mohamed Then and now. 6

7 Agenda Opening Remarks Alan Horn, Chairman Business of the Meeting Alan Horn, Chairman CEO s Remarks Nadir Mohamed, CEO Financial Review Tony Staffieri, CFO Questions & Answers Reception with Directors & Officers 2013 Annual Meeting of Shareholders 7

8 Nadir Mohamed President & Chief Executive Officer

9 Positioning Rogers for What s Next Welcome & Introduction 9

10 Positioning Rogers for What s Next Welcome & Introduction Our Performance 10

11 Positioning Rogers for What s Next Welcome & Introduction Our Performance Our Game Plan 11

12 Positioning Rogers for What s Next Welcome & Introduction Our Performance Our Game Plan Conclusion 12

13 Agenda Opening Remarks Alan Horn, Chairman Business of the Meeting Alan Horn, Chairman CEO s Remarks Nadir Mohamed, CEO Financial Review Tony Staffieri, CFO Questions & Answers Reception with Directors & Officers 2013 Annual Meeting of Shareholders 13

14 Tony Staffieri Executive Vice President & Chief Financial Officer

15 Quarterly Financial Growth Profile FY Revenue - $12.5B FY Adjusted Operating Profit - $4.8B 3% 1Q12 2Q12 3Q12 4Q12 1Q13 3% 3% 8% 1Q12 2Q12 3Q12 4Q12 1Q13 8% 7% 2% 5% 5% 1% 1% 3% 3% 0% 0% 0% -1% (1%) -6% (6%) Financial trajectory improved throughout year & guidance targets met 15

16 2012 Performance Against Targets 2012 Guidance Ranges 2012 Actuals Achievement Adjusted Operating Profit $4,730 to $4,915 $4,834 Additions to PP&E $2,075 to $2,175 $2,142 Pre-Tax Free Cash Flow $1,950 to $2,050 $2,029 Cash Income Taxes $425 to $475 $380 Met Exceeded Solid performance in challenging competitive & economic environment 16

17 Growth in Earnings Adjusted Net Income & Earnings Per Share $3.43 $3.50 $3.17 $3.00 $1.79 $2.94 $1.74 $2.50 $2.53 $1.70 $2.00 $B $1.99 $1.27 $1.57 $1.50 $ Adjusted Net Income 2011 Adjusted EPS 2012 Share buybacks have further accelerated adjusted EPS growth 17

18 Significant Cash Returns to Shareholders Annualized Dividend Share Buybacks in 2012 $1.74 $1.58 Amount $350M $1.42 $1.28 Shares repurchased 9.6M $1.00 $1.16 % of float Average price per repurchased share 3% $ Buybacks have further supported dividend increases & EPS accretion 18

19 Cost of Debt Weighted Average Cost of Long-term Debt 8% 7% 6% % 7.29% 7.27% 6.68% 6.22% 6.06% Reduced our cost of longterm debt by 221 basis points since 2006 $9.4B of new issues & $3.0B of redemptions & maturities over past 5 years % 1Q $3.9B liquidity available at end of quarter Lower cost of debt enables greater shareholder returns & financial flexibility 19

20 Above Market Shareholder Returns One-Year Comparative Total Return Ten-Year Comparative Total Return 20% 654% 18% 16% 12% 7% 254% 141% 99% 109% RCI.b on TSX S&P/TSX Composite Index S&P 500 Index TSX Telecom Index S&P 500 Telecom Index RCI.b on TSX S&P/TSX Composite Index S&P 500 Index TSX Telecom Index S&P 500 Telecom Index to 2012 A long-term record of above market shareholder returns 20

21 2013 Financial Guidance Adjusted Operating Profit Pre-tax Free Cash Flow 2012 Actuals 2013 Guidance 2013 Range $4,834 $4,865 to $5,050 1% to 5% Up to 5% 2012 Actuals 2013 Guidance 2013 Range 2,029 2,030 to 2,090 0% to 3% Up to 3% Additions to PP&E Cash Income Taxes 2012 Actuals 2013 Guidance 2013 Range 2,142 2,150 to 2,250 0% to 5% Flat to up 5% 2012 Actuals 2013 Guidance 2013 Range to % to 84% Up ~$300M Annualized Dividend $ $ Up 10% Continued growth & profitability in a highly competitive environment 21

22 First Quarter 2013 Highlights YoY ($M's except per share data) 1Q13 Change Consolidated Revenue $ 3,027 3% Wireless Network Revenue $ 1,683 4% Cable Revenue $ 861 4% Media Revenue $ 341 (4%) Postpaid ARPU % Postpaid Churn 1.22% +4bp Smartphones as % of Postpaid Base 71% 18% Wireless Data Revenue $ % Cable Service Unit Adds Cable Internet Revenue $ % Consolidated Adjusted Operating Profit $ 1,179 8% Consol. Adjusted Operating Profit Margin 38.9% +170bp Adjusted Earnings Per Share (Diluted) $ % Pre-Tax Free Cash Flow Per Share $ % Annualized Dividends Per Share $ % Balanced performance in a challenging competitive & economic environment 22

23 Financial Strength Committed $2.0B undrawn bank credit facility at 03/31/13, with cash of $1.4B & $500M available under A/R securitization No material near term debt maturities ~$2B pre-tax free cash flow generation Dividend to after-tax free cash flow payout ratio at ~65% Conservative leverage with net debt to adjusted operating profit at ~2.3x Investment grade credit ratings at all three rating agencies Consistent & significant returns of cash to shareholders An investment grade balance sheet with significant available liquidity 23

24 Agenda Opening Remarks Alan Horn, Chairman Business of the Meeting Alan Horn, Chairman CEO s Remarks Nadir Mohamed, CEO Financial Review Tony Staffieri, CFO Questions & Answers Reception with Directors & Officers 2013 Annual Meeting of Shareholders 24

25 Agenda Opening Remarks Alan Horn, Chairman Business of the Meeting Alan Horn, Chairman CEO s Remarks Nadir Mohamed, CEO Financial Review Tony Staffieri, CFO Questions & Answers Reception with Directors & Officers 2013 Annual Meeting of Shareholders 25

26 Reconciliation of Non-GAAP Measures - Addendum (In millions of dollars, except per share amounts; Three months ended March 31, Year ended December, number of shares outstanding in millions) Operating income $ 662 $ 583 $ 2,766 Add: Depreciation and amortization ,819 Stock-based compensation expense Integration, restructuring and acquisition expenses Impairment of assets Adjusted operating profit $ 1,179 $ 1,094 $ 4,834 Free Cash Flow Adjusted operating profit $ 1,179 $ 1,094 $ 4,834 Add (deduct): PP&E expenditures (464) (449) (2,142) Interest on long-term debt, net of capitalization (172) (157) (663) Pre-tax free cash flow ,029 Cash income taxes (115) (72) (380) After-tax free cash flow $ 428 $ 416 $ 1,649 Net income from continuing operations $ 353 $ 324 $ 1,732 Add (deduct): Stock-based compensation expense Integration, restructuring and acquisition expenses Impairment of assets Gain on spectrum distribution - - (233) Income tax impact of above items (6) (12) (14) Income tax adjustment, legislative tax change Adjusted net income $ 414 $ 360 $ 1,788 Adjusted diluted earnings per share: Adjusted net income $ 414 $ 360 $ 1,788 Divided by: diluted weighted average number of shares outstanding Adjusted diluted earnings per share $ 0.80 $ 0.68 $ 3.43 Cash provided by operating activities $ 805 $ 528 $ 3,421 Add (deduct): PP&E expenditures (464) (449) (2,142) Interest on long-term debt, net of capitalization (172) (157) (663) Integration, restructuring and acquisition expenses Cash income taxes Interest paid Other adjustments Pre-tax free cash flow ,029 Cash income taxes (115) (72) (380) After-tax free cash flow $ 428 $ 416 $ 1,649 Reconciliation of Non-GAAP Measures Slide Added July,