Slide 1: Q1 2021 investor conference call
Q1 2021 investor conference call Friday, May 7, 2021
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements Today’s discussion may contain forward-looking statements, including statements relating to our objectives and strategies, our targets, outlook, updates, our plans and expectations regarding the impact of the COVID-19 pandemic and responses to it, and our
Slide 3: Executing on our long-standing growth strategy
Executing on our long-standing growth strategy ● Achieving strong operational and financial results ● Industry-leading profitable customer growth ● World-leading performance culture ● Delivering outstanding connected experiences ● Differentiated and potent asset mix 3
Slide 4: Industry-leading first quarter results
Industry-leading first quarter results ● 145,000 customer net additions ● Strong consolidated revenue and EBITDA growth ● Mobile phone churn of 0.89% ● Fixed product churn below 1% 4
Slide 5: Mobile operating results
Mobile Operating results $56.10 0.89% +31,000 Mobile phone Mobile phone Mobile phone net ARPU churn adds (3.7%) y/y 5 bps improvement +10,000 y/y Leveraging our strong digital capabilities and best-in-class customer service to sustain high-quality and profitable customer growth 5
Slide 6: Fixed operating results
Fixed Operating results +33,000 +11,000 +17,000 +51,000 Internet TV Security Total fixed net adds net adds net adds net adds +7,000 y/y +3,000 y/y +2,000 y/y +15,000 y/y Our premium, diversified, and evolving product portfolio continues to drive industry-leading customer growth 6
Slide 7: Broadband Investment Program
Broadband Investment Program ● Investing from a position of strength and leadership ● Enabling up to 225,000 additional premises with fibre ● Enhancing the speed and coverage of wireless network ● Declining capex beginning in 2023 to $2.5 billion, or less 7
Slide 8: Leading the world in social capitalism
Leading the world in social capitalism ● 1,800 TELUS team members supporting Government of B.C.’s Immunise B.C. initiative ● Over one million vaccination appointments booked for eligible British Columbians ● Health for Good clinics providing close to 18,000 COVID-19 assessments for marginalised popu
Slide 9: TELUS Health
TELUS Health ● Leading integrated healthcare services and technology company ● 2020 in health revenues of over $800 million ● Accelerated adoption of digitally-enabled healthcare tools ● Exponential growth in demand for virtual care solutions 9
Slide 10: Health services Q1 2021 results
Health services Q1 2021 results $123 17.5 2.0 133.3 million million million million Services Lives Virtual care Digital revenue covered members transactions +9.8% y/y +2.9 million y/y +1.3 million y/y (6.4 million) y/y Continuously innovating and transforming how Canadians experience healthcare to d
Slide 11: Financial Results
Financial Results
Slide 12: TELUS Technology Solutions (TTech)
TELUS Technology Solutions (TTech) Q1 2021 results $1,503 $1,067 $3,489 $1,365 million million million million Mobile network Fixed data External Adjusted revenue services revenue revenue EBITDA (0.5%) +10.6% +6.0% +1.8% Our consistent focus on profitable loading and our diversified asset mix contin
Slide 13: Digitally-led customer experiences (DLCX)
Digitally-led customer experiences (DLCX) Q1 2021 results $535 $138 $102 4% million million million External Adjusted Capital EBITDA less revenue EBITDA intensity capex +33.1% +3.0% flat +14.6% Driving digital transformation journeys and enabling customers to embrace digital technologies to deliver
Slide 14: Strong liquidity position
Strong liquidity position Successful equity and debt offerings in March enhances our strong balance sheet and liquidity position ● Weighted average cost of long-term debt of 3.80% ● Average long-term debt term to maturity of 12.0 years ● $3.6 billion total available liquidity ● $2.75 billion syndica
Slide 15: Questions?
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Slide 16: Appendix
Appendix be
Slide 17: Appendix 1: Q1 2021 EPS summary
Appendix 1: Q1 2021 EPS summary Basic EPS (Q1 2020) $0.28 Restructuring and other costs $0.04 Adjusted basic EPS (Q1 2020) $0.32 Higher adjusted EBITDA $0.01 Higher depreciation and amortization ($0.04) Higher net financing costs ($0.01) Higher outstanding shares ($0.01) Adjusted basic EPS (Q1 2021)
Slide 18: Appendix 2: Free cash flow continuity ($M)
Appendix 2: Free cash flow continuity ($M) 18
Slide 19: Appendix 3: DLCX to TELUS International reconciliation - Revenue
Appendix 3: DLCX to TELUS International (TI) reconciliation - Revenue Millions (except foreign exchange (FX) rate) Q1 2021 Q1 2020 Y/Y growth (%) TI revenue (USD$) 506 322 57 Average FX rate 1.2665 1.3429 CAD$ equivalent 678 433 57 Subtract: FX impact (stronger CAD to USD) (39) Add: Xavient put opti
Slide 20: Appendix 4: DLCX to TELUS International reconciliation - Adjusted EBITDA
Appendix 4: DLCX to TELUS International (TI) reconciliation - Adjusted EBITDA Millions (except foreign exchange (FX) rate) Q1 2021 Q1 2020 Y/Y growth (%) TI Adjusted EBITDA (USD$) 129 68 90 Subtract: share based compensation (26) (2) Subtotal 103 66 55 Average FX rate 1.2665 1.3429 CAD$ equivalent 1
Slide 21: Appendix 5: Ad hoc disclosure items
Appendix 5: Ad hoc disclosure items ● Postpaid mobile phone churn of 0.72% ● Network revenue growth of approximately 3% when excluding roaming ● Internet, TV, Security, Residential Voice churn all below 1% ● Double-digit monthly recurring revenue for new internet customers ● PureFibre stats (vs copp
Slide 22: Appendix 6: Key definitions
Appendix 6: Key definitions Our presentation and answers include the following non-GAAP measures, which may not be comparable to similar measures used by other issuers: ● EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted basic EPS and Free cash flow are non- GAAP measures and do not have any st
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