Slide 1: Q4 2023 investor conference call
Q4 2023 investor conference call February 9, 2024
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 2024 targets, our expectations regarding trends in the telecommunications industry (including de
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 ● Enhancing our operational and
Slide 4: Mobile Operating Results Q4 2023
Mobile Operating Results Q4 2023 $58.50 1.40% +126,000 +203,000 Mobile phone Mobile phone Mobile phone Connected device ARPU churn net adds net adds (0.3%) y/y +18 bps y/y +14,000 y/y +97,000 y/y Delivering high-quality and profitable customer growth leveraging our strong digital capabilities, custo
Slide 5: Mobile Operating Results Fiscal 2023
Mobile Operating Results Fiscal 2023 $58.78 1.05% +443,000 +564,000 Mobile phone Mobile phone Mobile phone Connected device ARPU churn net adds net adds +1.2% y/y +10 bps y/y +42,000 y/y +196,000 y/y Delivered highest mobile phone net additions since 2010, record high Connected Device net additions
Slide 6: Fixed Operating Results Q4 2023
Fixed Operating Results Q4 2023 +36,000 +23,000 +23,000 +75,000 Internet TV Security Total fixed net adds net adds net adds net adds (6,000) y/y +6,000 y/y (5,000) y/y (8,000) y/y Superior product portfolio and leading PureFibre network driving leading customer growth and higher product intensity 6
Slide 7: Fixed Operating Results Fiscal 2023
Fixed Operating Results Fiscal 2023 +143,000 +69,000 +78,000 +259,000 Internet TV Security Total fixed net adds net adds net adds net adds +1,000 y/y +9,000 y/y (21,000) y/y (15,000) y/y Our team achieved its second highest annual record for Fixed subscriber growth of 259,000 reflecting our industry
Slide 8: Our leading mobile and fixed broadband networks
Our leading mobile and fixed broadband networks ● PureFibre network connecting approximately 3.2 million premises and 5G covering approximately 86% of Canadians ● Secured 100 MHz of contiguous premium mid-band spectrum across the 3500 and 3800 MHz spectrum bands, further enhancing our 5G network lea
Slide 9: Health Services
Health Services Revolutionizing Access to Healthcare Fiscal 2023 $1,705 million 69.5 million 5.6 million 610 million Services revenue Lives covered Virtual care members Digital health transactions +$792 million y/y +1.8 million y/y +1.1 million y/y +30 million y/y Delivering strong revenue growth wh
Slide 10: Agriculture & Consumer Goods Services
Agriculture & Consumer Goods Services Digitally connecting the food value chain Fiscal 2023 $347 million 1,500+ team Serving Agriculture and members customers in Consumer Goods services revenue globally over 50 countries (2.0)% y/y Remain focused on becoming the world’s largest global independent pr
Slide 11: 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 April 1, 2024, up 7.1% y/y ● 25 dividend increases since dividend growth program initiated in May 2011 ● Returning approximately $25 billion to shareh
Slide 12: Leading the World in Social Capitalism
Leading the World in Social Capitalism ● Inspiring our team members, retirees and their family and friends to volunteer 1.5 million hours around the world, making 2023 our most giving year ever. ● Since 2000, our extended TELUS family has provided $1.7 billion in cash, in-kind contributions, time an
Slide 13: 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 14: Financial Results
Financial Results
Slide 15: TELUS Technology solutions (TTech) Q4 2023
TELUS Technology solutions (TTech) Q4 2023 $1.8 $1.2 $4.4 $1.6 billion billion billion billion Mobile network Fixed data Operating Adjusted revenue services revenue1 revenues EBITDA +3.8% y/y +3.6% y/y +2.6% y/y +8.0% y/y 1 Excludes health services as well as agriculture and consumer goods services
Slide 16: TELUS Technology solutions (TTech) Fiscal 2023
TELUS Technology solutions (TTech) Fiscal 2023 $6.9 $4.6 $17 $6.4 billion billion billion billion Mobile network Fixed data Operating Adjusted revenue services revenue1 revenues EBITDA +5.1% y/y +5.3% y/y +9.5% y/y +8.5% y/y 1 Excludes health services as well as agriculture and consumer goods servic
Slide 17: Digitally-led customer experiences (DLCX) Q4 2023
Digitally-led customer experiences (DLCX) Q4 2023 $741 million $249 million 26% External Adjusted Adjusted EBITDA Revenues EBITDA1 margin2 +6.8% y/y +19.4% y/y +1.2 pts 1 For certain metrics, there are definitional differences between TELUS and TELUS International reporting. These differences largel
Slide 18: Digitally-led customer experiences (DLCX) Fiscal 2023
Digitally-led customer experiences (DLCX) Fiscal 2023 $2.9 billion $774 million 21% External Adjusted Adjusted EBITDA revenue EBITDA1 margin2 +9.3% y/y +0.9% y/y (2.9) pts 1 For certain metrics, there are definitional differences between TELUS and TELUS International reporting. These differences lar
Slide 19: Consolidated Q4 2023 results
Consolidated Q4 2023 results $5.2 $310 $1.9 $1.3 $590 billion million billion billion million Operating Net Adjusted Cash provided Free revenues income1 EBITDA2 by operating cash flow2 activities +2.6% y/y +17% y/y +9.4% y/y +17% y/y +83% y/y 1 Adjusted Net Income was $341 million, up 0.6% y/y. Adju
Slide 20: Consolidated Fiscal 2023 results
Consolidated Fiscal 2023 results $20 $867 $7.2 $4.5 $1.8 billion million billion billion billion Operating Net Adjusted Cash provided Free revenues income1 EBITDA2 by operating cash flow2 activities +9.4% y/y (50%) y/y +7.6% y/y (6.5%) y/y +38% y/y 1 Adjusted Net Income was $1.37 billion, down 16.6%
Slide 21: Accelerating Cost Efficiency Programs
Accelerating Cost Efficiency Programs ● Executing extensive cost efficiency programs (CEP) first announced in Q2 2023 ● CEP in response to the evolving regulatory, competitive and macroeconomic environment ● Investments in leading broadband networks and digitization enabling meaningfully cost optimi
Slide 22: Establishing robust 2024 financial targets
Establishing robust 2024 financial targets TTech Operating revenues(1) Growth of 2 to 4% TTech Adjusted EBITDA Growth of 5.5 to 7.5% Consolidated Free cash flow Approximately $2.3 billion Consolidated Capital expenditures(2) Approximately $2.6 billion 1 For 2024, we are guiding on TTech Operating re
Slide 23: 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 11.3 years ● Available liquidity1 of approximately $3.1 billion ● $2.75 billion syndicated credit facility
Slide 24: Questions?
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Slide 25: 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 26: Let's make the future friendly, together.
Let's make the future friendly, _ sae together. eas