Telus Corporation · TSX:T
Telus — Q3 2023 Earnings Presentation
21 slides from Telus's earnings presentation, Nov 3, 2023
Slide 1: Q3 2023 investor conference call
Q3 2023 investor conference call November 3, 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 third quarter ● Leading customer growth underpinned by industry-best client loyalty ● Delivering exceptional customer experiences over our globally-leading networks ● Accelerating cost efficiency
Slide 4: Mobile Operating Results
Mobile Operating Results Q3 2023 $59.19 1.00% +160,000 +179,000 Mobile phone Mobile phone Mobile phone Connected device ARPU churn net adds net adds (0.5%) y/y +5 bps y/y +10,000 y/y +55,000 y/y Delivering high-quality and profitable customer growth leveraging our strong digital capabilities, custom
Slide 5: Fixed Operating Results
Fixed Operating Results Q3 2023 +37,000 +20,000 +18,000 +67,000 Internet TV Security Total fixed net adds net adds net adds net adds +1,000 y/y +2,000 y/y (7,000) y/y (6,000) 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 more than 3.1 million premises ● 5G covering over 85% of Canadians ● Expanding world-leading connectivity to rural and indigenous communities ● Actively removing, retiring and monetizing legacy copper cables Advanced Pure
Slide 7: Health Services
Health Services Revolutionizing Access to Healthcare Q3 2023 $422 million 69.6 million 5.5 million 150.6 million Services revenue1 Lives covered Virtual care members Digital health +$197 million y/y +9.2 million y/y +1.5 million y/y transactions +7.4 million y/y 1 Inclusive of our acquisition of Lif
Slide 8: Agriculture & Consumer Goods Services
Agriculture & Consumer Goods Services Digitally connecting the food value chain Q3 2023 $83 million 1,500+ team Serving Agriculture and members customers in Consumer Goods services revenue globally over 50 countries (2.4)% 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 $0.3761 payable January 2, 2024, up 7.1% y/y ● 25 dividend increases since dividend growth program initiated in May 2011 ● Returning more than $24 billion to sharehol
Slide 10: Leading the World in Social Capitalism
Leading the World in Social Capitalism ● Launching, through TELUS Friendly Future Foundation, the new $50 million TELUS Student Bursary Fund, the largest bursary fund in Canada, supporting hundreds of young people annually facing financial barriers accessing post-secondary education. ● Aligning with
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) Q3 2023 $1.75 $1.15 $4.28 $1.63 billion billion billion billion Mobile network Fixed data Operating Adjusted revenue services revenue1 revenues EBITDA +3.4% y/y +4.9% y/y +7.8% y/y +7.0% y/y 1 Excludes health services as well as agriculture and consumer goods servi
Slide 14: Digitally-led customer experiences (DLCX)
Digitally-led customer experiences (DLCX) Q3 2023 $706 million $187 million 21.0% External Adjusted Adjusted EBITDA revenue EBITDA margin1 +5.8% y/y (6.5)% y/y (3.9) 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 simi
Slide 15: Consolidated Q3 2023 results
Consolidated Q3 2023 results $5.01 $137 $1.82 $1.31 $355 billion million billion billion million Operating Net Adjusted Cash provided Free revenues and income1 EBITDA2 by operating cash flow2 other income activities +7.2% y/y (75.1%) y/y +5.5% y/y +0.5% y/y +7.3% y/y 1 In Q3 2023, Adjusted Net incom
Slide 16: Accelerating Cost Efficiency Programs
Accelerating Cost Efficiency Programs ● TELUS announced extensive cost efficiency programs (CEP) in Q2 2023 ● CEP in response to the evolving regulatory, competitive and macroeconomic environment ● Investments in leading broadband networks and digitization enabling meaningfully cost optimization ● S
Slide 17: 2023 consolidated annual targets
2023 consolidated annual targets Operating revenues(1) Growth of 9.5 to 11.5% Adjusted EBITDA Growth of 7 to 8% Capital expenditures(2) Approximately $2.6 billion Free cash flow Approximately $1.5 billion 1 For 2023, we are guiding on operating revenues, which excludes other income. Operating revenu
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 4.33% ● Average long-term debt term to maturity of 11.5 years ● Available liquidity1 of more than $3.0 billion ● $2.75 billion syndicated credit facility exp
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