Slide 1: Q3 2021 investor conference call
Q3 2021 investor conference call Friday, November 5, 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 across our business ● Industry-leading profitable customer growth and customer loyalty ● Delivering outstanding connected experiences on our world-leading networks ● Diversified growth portfolio and l
Slide 4: Industry-leading third quarter results
Industry-leading Third quarter results ● Record mobile and fixed net additions of 320,000 ● Consolidated revenue and EBITDA growth of 6.8% and 7.1%, respectively ● Leading mobile phone churn of 0.90% ● Strong fixed product customer loyalty results 4
Slide 5: Mobile operating results
Mobile Operating results $58.13 0.90% +135,000 +110,000 Mobile phone Mobile phone Mobile phone Connected churn ARPU net adds device net adds 9 bps Flat y/y +24,000 y/y +23,000 y/y improvement y/y Leveraging our strong digital capabilities and best-in-class customer service to sustain high-quality an
Slide 6: Fixed operating results
Fixed Operating results +46,000 +10,000 +30,000 +75,000 Internet TV Security Total fixed net adds net adds net adds net adds (4,000) y/y (9,000) y/y +12,000 y/y (4,000) y/y Our premium and diversified product portfolio combined with driving higher product intensity continues to sustain high quality
Slide 7: Accelerated Broadband Investment Program
Accelerated Broadband Investment Program ● Investing from a position of strength and leadership ● Approx. 2.6 million premises covered by PureFibre network ● 5G network covering 24.1 million Canadians (64% of population) ● 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 ● TELUS Friendly Future Foundation distributed $4.2 million in Community Board grants to 307 local charitable projects and $2.2 million to 26 national, territorial or provincial charitable initiatives this year. ● Health for Good clinics have provided 26,000 CO
Slide 9: Health services
Health services Q3 2021 results $130 19.3 2.3 137.9 million million million million Services Lives Virtual care Digital revenue covered members transactions +12% y/y +3.3 million y/y +0.9 million y/y +1.9 million y/y Continuously innovating and transforming how Canadians experience healthcare to dri
Slide 10: Financial Results
Financial Results
Slide 11: TELUS Technology Solutions (TTech)
TELUS Technology Solutions (TTech) Q3 2021 results $1,588 $1,109 $3,664 $1,410 million million million million Mobile network Fixed data External Adjusted revenue services revenue revenue EBITDA +3.7% +12.8% +4.1% +7.4% Our consistent focus on profitable loading and our diversified asset mix continu
Slide 12: Digitally-led customer experiences (DLCX)
Digitally-led customer experiences (DLCX) Q3 2021 results $587 $149 $120 4% million million million External Adjusted Capital Adjusted EBITDA revenue EBITDA intensity less capex +27.3% +4.7% (1) pt +4.3% Driving digital transformation journeys and enabling clients globally to embrace digital technol
Slide 13: Strong liquidity position
Strong liquidity position Continued execution excellence resulting in our strong balance sheet and liquidity position ● Weighted average cost of long-term debt of 3.72% ● Average long-term debt term to maturity of 12.7 years ● Over $3.6 billion total available liquidity ● $2.75 billion syndicated cr
Slide 14: Questions?
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Slide 15: Appendix 1: Q3 2021 EPS summary
Appendix 1: Q3 2021 EPS summary Basic EPS (Q3 2020) $0.24 Restructuring and other costs $0.03 Other equity losses related to real estate joint ventures $0.01 Adjusted basic EPS (Q3 2020) $0.28 Higher adjusted EBITDA $0.06 Higher depreciation and amortization ($0.02) Higher outstanding shares ($0.02)
Slide 16: Appendix 2: Free cash flow continuity
Appendix 2: Free cash flow continuity ($M) Q3 2021 Q3 2020 YTD 2021 YTD 2020 EBITDA 1,496 1,390 4,408 4,158 Non-cash gains from the sale of property, plant, and equipment - (1) - (3) Restructuring and other costs, net of disbursements 21 (5) 7 21 Effect of contract asset, acquisition and fulfilment
Slide 17: Appendix 3: DLCX to TELUS International reconciliation - Revenue
Appendix 3: DLCX to TELUS International (TI) reconciliation - Revenue Millions (except foreign exchange (FX) rate) Q3 2021 Q3 2020 Y/Y growth (%) TI revenue (USD$) 556 427 30.2% CAD$ equivalent, in constant currency (Q3 2020 rate) 741 568 Subtract: FX impact (stronger CAD to USD) (41) - Revenue per
Slide 18: 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) Q3 2021 Q3 2020 Y/Y growth (%) TI Adjusted EBITDA (USD$) 137 111 23.4% Subtract: Share-based compensation (21) (5) Subtotal (USD$) 116 106 9.4% CAD$ equivalent, in constant curr
Slide 19: Appendix 5: Ad hoc disclosure items
Appendix 5: Ad hoc disclosure items ● Blended mobile phone, PureFibre internet, Optik TV, Security, and voice churn are all below 1%, on a year-to-date basis; postpaid churn of 0.75% in Q3/21, down 10bps year-over-year ● Q3/21 represents the strongest quarter on record for mobile and home loading ●
Slide 20: 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 sta
Slide 21: Giving back
Giving compar