Slide 1: Q1 2023 investor conference call
Q1 2023 investor conference call May 4, 2023
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 our strategies to achieve those objectives, our 2023 targets, outlook, updates, our expectations regarding trends in the telecommunications indu
Slide 3: Demonstrating Continued Execution Excellence
Demonstrating Continued Execution Excellence ● Achieving strong operational and financial results across our business ● Leading customer growth underpinned by industry-best client loyalty ● Delivering exceptional customer experiences over our globally-leading networks ● Continuing strong momentum fr
Slide 4: Mobile Operating Results
Mobile Operating Results Q1 2023 $58.61 0.88% +47,000 +58,000 Mobile phone Mobile phone Mobile phone Connected device ARPU churn net adds net adds +3.8% y/y +7 bps y/y +1,000 y/y +12,000 y/y Continued high-quality and profitable customer growth leveraged by our strong digital capabilities and abilit
Slide 5: Fixed Operating Results
Fixed Operating Results Q1 2023 +35,000 +9,000 +22,000 +58,000 Internet TV Security Total fixed net adds net adds net adds net adds +5,000 y/y (1,000) y/y (4,000) y/y +2,000 y/y Superior product portfolio driving high quality customer growth and higher product intensity 5
Slide 6: Our leading mobile and fixed broadband networks
Our leading mobile and fixed broadband networks ● PureFibre network connecting more than 3.0 million premises ● 5G covering approximately 83% of Canadians and growing ● Expanding world-leading connectivity to rural and indigenous communities ● Actively removing, retiring and monetizing legacy copper
Slide 7: Health Services
Health Services Revolutionizing Access to Healthcare Q1 2023 $423 million 67.0 million 5.2 million 148.9 million Services revenue Lives covered Virtual care members Digital transactions +$283 million y/y +45.1 million y/y1 +1.9 million y/y +9.3 million y/y 1 During the third quarter of 2022, we adde
Slide 8: Agriculture & Consumer Goods Services
Agriculture & Consumer Goods Services Digitally connecting the food value chain Q1 2023 $84 million 1,600+ team Serving customers in (1.2%) revenue over 50 countries members globally growth y/y Expecting double-digit agriculture revenue growth in 2023, reflecting the significant long-term value we a
Slide 9: Returning Capital to Shareholders
Returning Capital to Shareholders ● Targeting 7 to 10% annual dividend growth from 2023 through 2025 ● Quarterly dividend declared of $0.3636 payable July 4, 2023, up 7.4% y/y ● 24 dividend increases since dividend growth program initiated in May 2011 ● Returning $23 billion to shareholders since 20
Slide 10: Leading the World in Social Capitalism
Leading the World in Social Capitalism ● TELUS Friendly Future Foundation (TFFF) and TELUS Community Boards have supported the health and well-being of more than 300,000 youth, so far in 2023, by granting $2.1 million to 173 charitable organizations. ● Since its inception in 2018, TFFF has provided
Slide 11: Our 20+ years of sustainability leadership
Our 20+ years of sustainability leadership 2000 2008 2011 2015 First CSR Report Launched Work Styles Initial 10-year climate change targets TELUS Garden green mortgage bond Enhanced disclosure to environmental, Improved team member engagement Exceeded 2020 target early: 31% $225 million; first green
Slide 12: Financial Results
Financial Results
Slide 13: TELUS Technology solutions (TTech)
TELUS Technology solutions (TTech) Q1 2023 $1,697 $1,128 $4,208 $1,593 million million million million Mobile network Fixed data Operating Adjusted revenue services revenue1 revenues EBITDA +7.6% y/y +6.7% y/y +15.7% y/y +11.0% y/y 1 Excludes health services as well as agriculture & consumer goods s
Slide 14: Digitally-led customer experiences (DLCX)
Digitally-led customer experiences (DLCX) Q1 2023 $756 million $186 million 20.1% External Adjusted Adjusted EBITDA revenue EBITDA margin1 +17.4% y/y +8.1% y/y -2.6 pts 1 This is a non-GAAP ratio that does not have any standardized meaning prescribed by IFRS-IASB and might not be comparable to simil
Slide 15: Consolidated Q1 2023 results
Consolidated Q1 2023 results $4,964 $224 $1,779 $761 $535 million million million million million Operating Net Adjusted Cash provided Free revenues and income1 EBITDA2 by operating cash flow2 other income (44.6%) y/y +10.7% y/y activities +28.9% +15.9% y/y (33.0%) y/y 1 In Q1 2023, Adjusted Net inc
Slide 16: Re-affirming our 2023 consolidated targets
Re-affirming our 2023 consolidated targets Operating revenues(1) Growth of 11 to 14% Adjusted EBITDA Growth of 9.5 to 11% Consolidated capital expenditures Approximately $2.6 billion (excluding spectrum licences)(2) Free cash flow Approximately $2.0 billion 1 For 2023, we are guiding on operating re
Slide 17: Strong liquidity position
Strong liquidity position Leading results driving our strong balance sheet and liquidity position ● Weighted average cost of long-term debt of 4.18% ● Average long-term debt term to maturity of 11.8 years ● Available liquidity1 of $1.8 billion ● $2.75 billion syndicated credit facility expiring Apri
Slide 18: Questions?
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Slide 19: Appendix: Key definitions
Appendix: Key definitions Our presentation and answers include the following non-GAAP and other specified financial measures, which may not be comparable to similar measures presented by other issuers: ● DLCX Adjusted EBITDA margin is a non-GAAP ratio. Adjusted Net income and Available liquidity are
Slide 20: Let's make the future friendly, together.
Let's make the future friendly, _ sae together. eas