Slide 1: Q2 2023 investor conference call
Q2 2023 investor conference call August 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 resilient operational and financial results for second quarter ● Leading customer growth underpinned by industry-best client loyalty ● Delivering exceptional customer experiences over our globally-leading networks ● Accelerating cost efficienc
Slide 4: Mobile Operating Results
Mobile Operating Results Q2 2023 $58.80 0.91% +110,000 +124,000 Mobile phone Mobile phone Mobile phone Connected device ARPU churn net adds net adds +1.8% y/y +10 bps y/y +17,000 y/y +32,000 y/y Continued high-quality and profitable customer growth leveraging our strong digital capabilities and abil
Slide 5: Fixed Operating Results
Fixed Operating Results Q2 2023 +35,000 +17,000 +15,000 +59,000 Internet TV Security Total fixed net adds net adds net adds net adds +1,000 y/y +2,000 y/y (5,000) y/y (3,000) y/y Superior product portfolio and leading PureFibre network driving leading 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 approximately 3.1 million premises ● 5G covering approximately 84% of Canadians ● Expanding world-leading connectivity to rural and indigenous communities ● Actively removing, retiring and monetizing legacy copper cables
Slide 7: Health Services
Health Services Revolutionizing Access to Healthcare Q2 2023 $428 million 68.3 million 5.3 million 152.9 million Services revenue Lives covered Virtual care members Digital transactions +$291 million y/y +45.9 million y/y1 +1.7 million y/y +7.5 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 Q2 2023 $79 million 1,600+ team Serving Agriculture and members customers in Consumer Goods services revenue globally over 50 countries (2.5)% y/y Remain focused on becoming the world’s largest global independent provide
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 October 2, 2023, up 7.4% y/y ● 24 dividend increases since dividend growth program initiated in May 2011 ● Returning approximately $24 billion to shar
Slide 10: Leading the World in Social Capitalism
Leading the World in Social Capitalism ● Hosting our 18th annual TELUS Days of Giving across 32 countries with more than 80,000 TELUS team members, retirees, family and friends volunteering around the world in 260 local communities, making this year’s event our most giving year on record. ● Since 20
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 corporate green Enhanced disclosure to environmental, Improved team member engagement Exceeded 2020 target early: 31% mortgage bond $225 million; fi
Slide 12: Financial Results
Financial Results
Slide 13: TELUS Technology solutions (TTech)
TELUS Technology solutions (TTech) Q2 2023 $1.72 $1.15 $4.21 $1.55 billion billion billion billion Mobile network Fixed data Operating Adjusted revenue services revenue1 revenues EBITDA +5.9% y/y +6.2% y/y +13.8% y/y +8.1% y/y 1 Excludes health services as well as agriculture & consumer goods servic
Slide 14: Digitally-led customer experiences (DLCX)
Digitally-led customer experiences (DLCX) Q2 2023 $723 million $152 million 16.9% External Adjusted Adjusted EBITDA revenue EBITDA margin1 +7.6% y/y (18.6)% y/y (6.5) 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 sim
Slide 15: Consolidated Q2 2023 results
Consolidated Q2 2023 results $4.95 $196 $1.70 $1.12 $279 billion million billion billion million Operating Net Adjusted Cash provided Free revenues and income1 EBITDA2 by operating cash flow2 other income (60.6%) y/y +5.0% y/y activities +36.1% +12.4% y/y (10.6%) y/y 1 In Q2 2023, Adjusted Net incom
Slide 16: Accelerating Cost Efficiency Programs
Accelerating Cost Efficiency Programs ● Announcing extensive cost efficiency programs (CEP) across TELUS ● CEP in response to the evolving regulatory, competitive and macroeconomic environment ● Investments in leading broadband networks and digitization enabling meaningfully cost optimization ● Seek
Slide 17: 2023 consolidated targets
2023 consolidated targets Operating revenues(1) Growth of 9.5 to 11.5% Adjusted EBITDA Growth of 7 to 8% (2) Approximately $2.6 billion Consolidated capital expenditures (unchanged) Free cash flow Approximately $1.5 billion 1 For 2023, we are guiding on operating revenues, which excludes other incom
Slide 18: Strong liquidity position
Strong liquidity position Leading results driving our strong balance sheet and liquidity position ● Weighted average cost of long-term debt of 4.19% ● Average long-term debt term to maturity of 11.6 years ● Available liquidity1 of $1.5 billion ● $2.75 billion syndicated credit facility expiring July
Slide 19: Questions?
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Slide 20: 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 21: Let's make the future friendly, together.
Let's make the future friendly, _ sae together. eas