Rogers Communications Inc. (TSX:RCI.B)
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AGM 2020

Apr 22, 2020

Operator

We've got 11 minutes.

Edward Rogers
Chairman of the Board, Rogers

Good morning, ladies and gentlemen. My name is Edward Rogers, Chairman of the Board. On behalf of the Rogers family, the Rogers Board, Officers of Rogers, I want to thank you for attending this year's Annual General Shareholders Meeting. As a result of the unprecedented public health impact of COVID-19, and to support the health and safety of our customers, shareholders, and employees, we are hosting our Annual General Shareholders Meeting for the first time through a virtual meeting platform accessible to all of our shareholders. Our thoughts are with our customers, employees, and other stakeholders as the COVID-19 continues to impact the health and well-being of Canadians and the Canadian and global economies.

As Canadians do their part to slow the spread of the virus, we want them to know that they can depend on Rogers to provide them with the essential services they need, whether they are working, whether they are attending school online, or staying connected with family and friends. We will continue to provide service and support our customers while safeguarding the health and safety of our employees and the public. We are focused on maintaining and operating our wireless and wireline networks and adding the capacity our customers need through this time. Our media outlets are keeping Canadians informed and up to date and keeping families entertained during these stressful times. My father, Ted Rogers, started the company 60 years ago, and he introduced technologies that improved the lives of Canadians and our customers, and we are all so proud of Rogers today to be carrying that legacy on.

We take our responsibility seriously, and we will continue to do everything we can to support Canadians through these difficult times while continuing to invest for the future. To my fellow members of the Rogers Board, thank you all very much for your hard work, guidance, and leadership. We remain focused on executing for our customers and building long-term value for our shareholders. I would like to recognize the Rogers Executive Team, our more than 25,000 men and women across the company that work for Rogers, and our partners for all of your ongoing contributions and commitment to Rogers during this crisis. The people at Rogers continue to work tirelessly to make sure that our networks work and that our media continues to work and function. They quickly introduced programs to ease the financial burden of our customers and continue to do everything to try to put them first.

Lastly, I would like to thank all of the Rogers shareholders for your continued confidence in our company. We will get through this difficult period, and we will continue to execute well for our customers, and we will continue to build a strong future for Rogers. In accordance with the company's articles, I will act as the Chair of the Meeting, and our Chief Legal and Regulatory Affairs Officer, Graeme McPhail, will act as the Recording Secretary. I would now like to call the Annual General Meeting of Shareholders of Rogers to order. We will now commence with the formal part of the meeting. Registered holders of Class A Shares and duly appointed proxy holders will have the opportunity to vote via an electronic ballot for any ballot that comes before them during this meeting. Shareholders have already voted by proxy.

You do not need to vote online unless you wish to change your vote. A voting panel will appear on your screen when it is time to vote on a matter. After we address the motions contained in the meeting materials and consider any other business that might properly come before today's meeting, we will close the formal part of the meeting, and then our President and Chief Executive Officer, Joe Natale, will make some comments. Following Joe's comments, we will then take questions. Shareholders can submit questions throughout this meeting. To submit a question through the online platform, click on the messaging icon at the top of your screen, type your message within the chat box at the bottom of the messaging screen, and then click Send.

I would now like to appoint Tony Tacchino and Caye Harrison of AST Trust Company Canada, Rogers Registrar and Transfer Agent, to act as scrutineers for this meeting. The notice calling this meeting and proxy related to this meeting were mailed on March 20th, 2020, to shareholders of record as of March 2nd, 2020. AST Trust Company Canada has provided proof of delivery to shareholders as required of the notice and proxy related to this meeting, with the meeting materials and the 2019 annual report and financial statements having been made available to shareholders per notice and access under applicable securities laws. I will dispense with the reading of the notice of this meeting. I've also received the scrutineer's initial report on attendance, and I am advised that there are sufficient numbers of shareholders and proxy holders in attendance to constitute a quorum.

Notice having been properly given and a quorum being present, I now declare the meeting to be regularly called and constituted for the transaction of business. As noted in the meeting materials, only registered holders of Class A shares or their proxy holders are entitled to vote on matters at today's meeting. Holders of Class B shares are encouraged to participate during the question and answer period. First item on the business is the presentation of the company's 2019 annual report and consolidated financial statements. I now formally present these items to the meeting, including the reported external auditors, KPMG LLP. Questions related to the financial statements will be addressed after the presentations.

Before we proceed with the election of the company's directors, on behalf of our board, our senior management, the Rogers family, and all Rogers shareholders, I would like to take a moment to recognize and thank Robert Burgess for the value he has added for his over four years of service as a director on the Rogers Board. His contributions have been many, and we all extend our sincere appreciation to Robert. I would also like to welcome our new director, nominee Ellis Jacob. Ellis brings a wealth of experience as an entrepreneur and as President and CEO of Cineplex since 2003. He has won many awards for his leadership, his contributions to Canada, and given back. The board has fixed the number of directors to be elected at the meeting at 15, and we will now proceed with the election of directors.

The nominating committee intends to nominate all proposed directors whose names are contained in the meeting materials. I now call on Melinda Rogers to make the nominations. Melinda.

Melinda Rogers
Deputy Chaiman, Rogers

Thank you. I nominate the following persons for election as directors of the company: Bonnie Brooks, John Clappison, Robert Dépatie, Robert Gemmell, Alan Horn, Ellis Jacob, Bill Linton, John MacDonald, Isabelle Marcoux, Joe Natale, David Peterson, Edward Rogers, Loretta Rogers, Martha Rogers, and Melinda Rogers, and move that they be elected directors to hold office until the next annual meeting of shareholders.

Graeme McPhail
Chief Legal and Regulatory Affairs Officer, Rogers

Mr. Chairman, I am Graeme McPhail, and I'm pleased to second the motion.

Edward Rogers
Chairman of the Board, Rogers

Melinda and Graeme, thank you. As no other nominations have been received in accordance with the company's articles, I declare the nominations closed. The number of nominees is the same as the number of directors to be elected. I hereby declare that the individuals nominated have been elected directors of Rogers until the next annual meeting. The next item of business is a resolution appointing the external auditors of Rogers. I now call on Melinda to make a motion with respect to the appointment of auditors. Melinda.

Melinda Rogers
Deputy Chaiman, Rogers

I move that KPMG LLP, Chartered Professional Accountants, be appointed as auditors of the company to hold office until the next annual meeting or until their successor is appointed.

Graeme McPhail
Chief Legal and Regulatory Affairs Officer, Rogers

It's Graeme McPhail, and I'm pleased to second the motion.

Edward Rogers
Chairman of the Board, Rogers

Thank you again, Melinda and Graeme. Management has received proxies representing approximately 98% of the corporation's Class A shares. These proxies direct me to vote over 98% of the Class A shares in favor of the resolution. If you are a registered holder of Class A shares or duly appointed proxy holder, please record your vote by the auditors now via the online platform. If you have already voted or sent in a proxy, there is no need to do anything unless you wish to change your vote. We will now take a short pause while we do the voting. The voting is now closed. I declare the motion carried. The final voting results will be released later this afternoon. Ladies and gentlemen, as there is no other formal business that has properly been brought before today's meeting, I declare the meeting now closed.

We will now proceed with some comments from Joe Natale, our President and Chief Executive Officer. Following his comments, we will address questions from shareholders. I caution everyone that the presentations and discussions today may contain forward-looking statements. Such statements are based on assumptions as to the future, our management's current expectations, and are naturally subject to risk and uncertainties. As noted on the slide now shown, you should review Rogers' 2019 annual report and first quarter 2020 MD&A. I am now pleased to call on our President and Chief Executive Officer and our friend Joe Natale to say a few words. Joe.

Joe Natale
President and CEO, Rogers

Good morning, and thank you, Edward. Let me start by saying to everyone listening that I hope that you and your loved ones are staying healthy and safe. Typically, at our annual general meeting, I would be spending this time telling shareholders about the proactive changes your company made last year by launching unlimited data plans and how Canadians have embraced them, our next generation technology roadmaps, or the stock repurchases we completed. While these more typical business discussions are important and will resume in the future, I'd like to focus my comments today on the bigger purpose for Rogers. Each one of us has been touched by this pandemic, and we know that it will have a profound impact on the Canadian economy and indeed on all people around the world. That's why we've stepped up to help.

That's why in these uncertain times, our commitment to our customers and to our country is unwavering. As we face one of the greatest public health threats in generations, I, along with our entire team, our board, and the Rogers family, feel privileged to be working in this industry. Our networks are the critical lifeline that connects each and every one of us in these incredibly challenging times. And now, more than ever, we all truly understand what connectivity means to Canadians. Since this crisis began, we've been focused on two priorities: one, keeping our teams and customers safe and healthy; and two, keeping Canadians connected to the services that matter now more than ever, staying in touch with loved ones, learning and working from home in new ways, staying informed and entertained.

I'm incredibly proud of our 25,000 team members at Rogers for their relentless dedication and commitment to our customers and to each other. Also, I want to thank all the essential frontline workers supporting us every day, with a very special heartfelt thanks to healthcare teams and first responders who are working tirelessly to keep us all healthy and safe. For 60 years, our networks have helped power our nation, supporting people, communities, and businesses from coast to coast, and that will not change. We have invested for six decades to make sure we could be ready for unforeseen moments like this. We want our customers, employees, our government partners, our communities, and fellow Canadians to know that we are here for them and that we are proud of the world-class capability and reliability our networks are delivering to them every day.

Like most businesses, COVID-19 will have an impact on our financial results in the short term, but the current environment does not affect the underlying strength of our company, nor the long-term sustainable growth of our business and the long-term prospects of our country. We have never been short-term thinkers. We have always invested in Canada for the long term. As a result, we've built a financially strong company that can adapt, make the right decisions, and manage through the economic volatility ahead of us while still keeping an eye on the long-term investments that will matter in the years ahead. Our company and our industry have invested to fuel innovation and build the best networks in the world. Rogers alone has invested CAD 60 billion in our networks in the past 35 years.

Our investments have propelled Canada through the wireless and internet revolution, beginning with the first wireless call in 1985, the availability of 1 Gb speeds on home internet across our entire footprint, industry-leading Ignite TV and Wi-Fi, the smart home, and now the first to begin the exciting rollout of 5G. We stand proudly and gratefully on the shoulders of 60 years of investments in radio and news, of 50 years of investment in cable TV, 35 years of wireless investment, 25 years of home and business internet, and 20 years of delivering a great fan experience with Sportsnet. As Canadians stay home to limit the impact of COVID-19, our investments in broadband have made a big difference in their lives. Our networks are delivering, and they're being relied upon like never before. Throughout the day, on average, home internet usage is up over 50%.

To put that in context, we've seen as much growth in a few weeks as we would normally see over two years. We've been successfully adding capacity and managing our networks to meet these rapidly changing needs. For our industry, to be able to seamlessly deliver for Canadians at the pace and volume needed during this crisis emphasizes the enormous importance of consistent, long-term, facilities-based investment to our country for today and for the future. We are helping Canadians come together during this crisis, and when we come through on the other side, that won't change. Looking to the future, we know what needs to be done for Canadians, for our resiliency, our strength, and our connectivity. That means investing in the promise of 5G and the Internet of Things. It means powering the connected home and driving the next chapter in our technology roadmap.

It means continuing to invest and build our networks so that future generations in Canada can prosper and thrive. It means delivering insights and engaging innovative sports content through our media channels. Ultimately, it means playing a key role in fueling the digital economy and the future prosperity of our nation. Sustained investment in next-generation networks and technology and the competitive advantage they bring is essential to help Canadians rebuild our economy and maintain our place on the world stage. We have some of the best networks in the world, and your company is committed to maintaining this leadership position for generations to come. It is because of our history of sustained investment and our culture of collaboration and innovation that we've been able to respond to changing customer needs by rapidly evolving the way we do business.

Our teams have stepped up to meet the challenge, and they've come together with incredible determination in a few short weeks to rethink and reinvent how we serve customers in this new environment. Let me share some examples. We introduced new self-serve capabilities so our customers can activate TV, internet, and home phones safely from inside their homes and without requiring our technicians to enter their home, communicate directly through a video app. We made this operational change in a matter of a few weeks. Over the past month, we've rapidly deployed thousands of technology kits to enable our 7,000 customer care agents across the country to serve our customers from their homes without having to come to the office.

Our retail teams are keeping a small and essential number of stores open to support other essential workers and healthcare providers that have urgent needs for wireless services during this time. Our media teams are doing whatever it takes to ensure news and entertainment continues to pour into homes across the country, broadcasting from their basements, from their living rooms, because they know the Canadians are counting on us to deliver the insights of the world at a time when it matters most. Our engineering and field technicians are out in neighborhoods and businesses every day to make sure Canadians get the essential services they need. In recognition of these roles, we've implemented premium pay for our colleagues who are delivering critical and direct services to the public through this time.

We thank them from the bottom of our hearts for their dedication, for their commitment to our customers, and to each other every single day. Whether they're working from home or out in the community, I've never been prouder and more inspired by our teams. Thank you. Thank you from all of us. Just as we rely on our frontline workers, we appreciate how much our customers rely on us. A recent survey reflected that Canadians view us similarly to other essential services like drugstores and pharmacies in terms of the confidence they have in our ability to manage through this pandemic. Our customers remain at the center of everything we do.

We've put in place measures to support them through our Forward Together program, including waiving roaming charges, removing data usage caps for home internet, providing access to a rotating selection of free TV channels, and working with customers in financial difficulty to make sure their services continue and they can stay connected. We know governments across the nation are working hard to keep Canadians safe, and we're proud to stand beside them as a trusted partner. This crisis has touched every one of us, but the most vulnerable in our communities are hit the hardest. Just recently, we announced that we're collaborating with the Government of Ontario, local school boards, and Apple to offer iPads with data plans at no cost to help students in need who do not have the tools for online learning. We've launched three national partnerships to help deal with additional challenges brought on by COVID-19.

We've donated a million meals to Food Banks Canada and are raising awareness of the need to fill shelves with food. We're working with Big Brothers Big Sisters of Canada to keep vulnerable youth and their mentors connected, and together with Women's Shelters Canada, we're spreading the word through our media platforms to let women and families in need know that help is available during these difficult times. The strength and resiliency of our networks is being relied upon by many community groups in all orders of government, and we're very proud to support them. With so many people affected by COVID-19, corporations are looking at what's right for our people, our communities, our customers, our shareholders, the true meaning of corporate responsibility.

It is understood that Canadians want the companies they support and invest in to take meaningful action to advance social and environmental concerns, just as they do on profits. All businesses need to rise to new heights of corporate responsibility, a united response that is as momentous as the impact of this pandemic, a response that helps put our country on the right path to recovery. We, as Canadians, have the advantage of being able to count on the collective strength and determination of 37 million proud people who have shown their resolve in good times and tough times for more than 153 years. We need it because no one industry and no individual leader has a monopoly on good ideas, and none of us, not one of us, has the privilege of inaction.

To get through this, we must work together to ensure our nation has the best chance to succeed, to enjoy a prosperous and productive future. It's not just public health and government officials we need to look to to pull us out of this. It's up to all of us, corporations and citizens, to push the levers we have available to us, our talent, our resources, our technology, our capabilities, to take us through the economic recovery. Collective action is the only way forward. And you have our commitment that we will work in partnership with government, with community groups, with industry peers, with fellow business leaders as we all rebound, recover, and work to rebuild our nation together. Thank you for your time. And with that, let me now pass it back to our Chairman, Edward. Back to you.

Edward Rogers
Chairman of the Board, Rogers

Thank you, Joe. Thank you for those inspiring words.

I'd say a mix of focus on our company and the future, but at a time like this, putting Canada first. We thank you and the men and women across Rogers for the great work that you're doing. With that, we would like.

Joe Natale
President and CEO, Rogers

Thank you, Edward. Thank you, Edward, to you and the board and the Rogers family for your incredible support and encouragement through the last period. It does take a village of leaders to drive some of the things we've been driving, and the executive team is very appreciative of the support from the board.

Edward Rogers
Chairman of the Board, Rogers

Thank you. With that, we will now address any questions from our shareholders.

To submit a question through the online platform, click on the messaging icon at the top of your screen, type your message within the chat box at the bottom of the messaging screen, and then press the send button. Only questions of interest to all shareholders will be addressed. If your question is related to a personal matter, product matter, a Rogers representative will call you and follow up with you after this meeting. We will do our best to get through all the questions in the time that we have. If we are not able to go through all the questions, we will again follow up with every question following this meeting. Paul, do we have any questions?

Paul Carpino
VP of Investor Relations, Rogers

Mr. Chairman, there are no questions.

Edward Rogers
Chairman of the Board, Rogers

Okay. Well, ladies and gentlemen, with that, there are no further questions.

I thank you for your attendance today and participating in our call and wish you and your families health and safety. Thank you very much.

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