Slide 1: Q4 2020 investor conference call
Q4 2020 investor conference call February 11, 2021
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements This presentation and answers to questions contain forward-looking statements about our objectives and our strategies to achieve those objectives, our 2021 targets, outlook, updates, our plans and expectations regarding the impact of the COVID-19 pandemic
Slide 3: Consistently driving profitable long-term growth
3 | Q4 2020 investor conference call Consistently driving profitable long-term growth ● Leading performance culture driving strong operational and financial results ● Delivering premium customer experiences over our world-leading networks ● Leveraging the strength of our digital channels to drive le
Slide 4: Operating results
O00 UU} Operating results
Slide 5: Q4 2020 Wireless results
5 | Q4 2020 investor conference call Q4 2020 Wireless results +87,000 1.09% +88,000 Mobile phone Mobile phone Mobile connected net additions churn devices net additions +17,000 y/y 11 bps improvement +28,000 y/y Leveraging strong digital capabilities to achieve strong results despite the unprecedent
Slide 6: Q4 2020 Wireline results
6 | Q4 2020 investor conference call Q4 2020 Wireline results +44,000 +20,000 +23,000 +78,000 Internet TV Security Total wireline net adds net adds net adds net adds +16,000 y/y +5,000 y/y +8,000 y/y +32,000 y/y Our premium and diversified product portfolio and customer service excellence driving in
Slide 7: Investing in our leading broadband network
7 | Q4 2020 investor conference call Investing in our leading broadband network $613 ● Approx. 2.5 million premises now have immediate million access to our PureFibre network ● 81% PureFibre coverage of our high-speed broadband consolidated capex (17.4%) y/y footprint ● LTE covering 99% of Canadians
Slide 8: 2021 consolidated financial targets
8 | Q4 2020 investor conference call 2021 consolidated financial targets1 2021 Targets Revenues and other income 8 to 10 per cent Adjusted EBITDA 6 to 8 per cent Free cash flow2 Approx. $1.5 billion Capital expenditures3 Approx. $2.75 billion 1 See slide 2 – Caution regarding forward looking stateme
Slide 9: Giving back to the communities where we live, work, and serve
9 | Q4 2020 investor conference call Giving back to the communities where we live, work, and serve More than $85 million 1.25 million hours of contributed to charitable and volunteered service community organizations 28,000 patient visits supported by 14,200 mobile devices donated our mobile health
Slide 10: Consistent shareholder returns
10 | Q4 2020 investor conference call Consistent shareholder returns $14 $19 $1.2448 billion billion +6.8% y/y Dividends paid Total capital returned Annualized dividend Supporting citizens through the pandemic, while thoughtfully returning capital to shareholders
Slide 11: Financial results
Financial results
Slide 12: Q4 2020 Wireless results
12 | Q4 2020 investor conference call Q4 2020 Wireless results (1.0%) (3.4%) (1.1%) Network Mobile phone Adjusted revenue ARPU EBITDA $1,515 million $57.29 $898 million Our consistent focus on profitable customer growth helped mitigate the persisting impacts of the pandemic
Slide 13: Q4 2020 Wireline results
13 | Q4 2020 investor conference call Q4 2020 Wireline results +14.3% +21.6% +1.5% External Data services Adjusted revenue revenue EBITDA $1,946 million $1,617 million $511 million Delivered stable wireline financial results driven by our consistent customer growth and unique asset mix
Slide 14: Q4 2020 Consolidated results
14 | Q4 2020 investor conference call Q4 2020 Consolidated results +5.2% (0.2%) +61.5% External Adjusted Free revenue EBITDA cash flow $4,060 million $1,409 million $218 million Consolidated results are reflective of our team’s agility and Innovation in a challenging and rapidly changing environment
Slide 15: Capital spend driving strong success
15 | Q4 2020 investor conference call Capital spend driving strong success
Slide 16: Strong liquidity position during times of uncertainty
16 | Q4 2020 investor conference call Strong liquidity position during times of uncertainty Successful $500 million debt offering issued in October enhances our strong balance sheet and liquidity $2.8 billion total available liquidity ● $848M in cash and temporary investments, net ● $2.25B committed
Slide 17: Questions?
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Slide 18: Appendix – Q4 2020 EPS summary
18 | Q4 2020 investor conference call Appendix – Q4 2020 EPS summary Basic EPS (Q4 2019) $0.30 Restructuring and other costs $0.02 Adjusted basic EPS (Q4 2019) $0.32 Higher depreciation and amortization ($0.07) Higher net financing costs ($0.01) Other ($0.02) Adjusted basic EPS (Q4 2020) $0.22 Restr
Slide 19: Appendix – free cash flow continuity ($M)
19 | Q4 2020 investor conference call Appendix – free cash flow continuity ($M) C$ millions Q4 2019 Q4 2020 2019 2020 EBITDA 1,368 1,336 5,554 5,494 Restructuring and other costs, net of disbursements (1) 14 (36) 35 Effect of contract asset, acquisition and fulfilment (IFRS 15 impact) and TELUS Easy
Slide 20: Appendix – definitions
20 | Q4 2020 investor conference call Appendix – definitions Our presentation and answers include the following non-GAAP measures, which may not be comparable to similar measures used by other issuers: ● EBITDA is a non-GAAP measure and does not have any standardized meaning prescribed by IFRS-IASB.