Slide 1: Q4 2022 investor conference call
Q4 2022 investor conference call February 9, 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 plans and expectations regarding the impact of the COVID-19
Slide 3: Demonstrating Continued Execution Excellence
Demonstrating Continued Execution Excellence ● Achieving strong operational and financial results across our business ● Leading customer growth underpinned by our consistent industry-best client loyalty ● Delivering exceptional customer experiences over our globally-leading networks ● Continuing str
Slide 4: Mobile Operating Results
Mobile Operating Results Q4 2022 $58.69 1.22% +112,000 +106,000 Mobile phone Mobile phone Mobile phone Connected device ARPU churn net adds net adds +2.2% y/y +18 bps flat +25,000 y/y Continued high-quality and profitable customer growth leveraged by our strong digital capabilities and ability to de
Slide 5: Mobile Operating Results
Mobile Operating Results Fiscal 2022 $58.10 0.95% +401,000 +368,000 Mobile phone Mobile phone Mobile phone Connected device ARPU churn net adds net adds +1.8% y/y +4 bps +34,000 y/y +30,000 y/y Strong customer growth for 2022, including the highest Mobile Phone net additions for TELUS since 2010 alo
Slide 6: Fixed Operating Results
Fixed Operating Results Q4 2022 +42,000 +17,000 +28,000 +83,000 Internet TV Security Total fixed net adds net adds net adds net adds +2,000 y/y (1,000) y/y (3,000) y/y +4,000 y/y Our diversified and superior product portfolio drove higher product intensity and high quality customer growth, resulting
Slide 7: Fixed Operating Results
Fixed Operating Results Fiscal 2022 +142,000 +60,000 +99,000 +274,000 Internet TV Security Total fixed net adds net adds net adds net adds (7,000) y/y 10,000 y/y 2,000 y/y +19,000 y/y Our team achieved another best-ever year for Fixed subscriber growth of 274,000 reflecting our industry-leading Pure
Slide 8: Accelerated Broadband Investment Program
Accelerated Broadband Investment Program ● Investing from a position of strength ● Accelerated broadband build completed in 2022 ● PureFibre network enabling 3.0 million premises ● Covering approximately 83% of Canadians over our 5G network Capex to decline meaningfully in 2023 reflecting the conclu
Slide 9: Health Services
Health Services Revolutionizing Access to Healthcare Fiscal 2022 $913 million 67.7 million 4.5 million 580.5 million Services revenue Lives covered Virtual care members Digital transactions +$392 million y/y +47.1 million y/y1 +1.7 million y/y +29.4 million y/y 1 During the third quarter of 2022, we
Slide 10: Agriculture & Consumer Goods Services
Agriculture & Consumer Goods Services Digitally connecting the food value chain Fiscal 2022 $354 million 1,600+ team Serving customers in +24% revenue over 50 countries members globally growth y/y Empowering the agriculture and consumer goods industry with digital technologies and data insights to c
Slide 11: Returning Capital to Shareholders
Returning Capital to Shareholders ● Targeting 7 to 10% annual dividend growth for 2023 through 2025 ● Quarterly dividend declared of $0.3511 payable April 3, 2023, up 7.2% YoY ● 23 dividend increases since dividend growth program initiated in May 2011 ● Returning $23 billion to shareholders since 20
Slide 12: Leading the World in Social Capitalism
Leading the World in Social Capitalism ● In 2022, TELUS, our team members and retirees provided $125 million, in cash, in-kind contributions, time and programs, and volunteered 1.44 million hours in support of charitable and community organizations. ● Additionally, through TELUS Friendly Future Foun
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 green mortgage bond Enhanced disclosure to environmental, Improved team member engagement Exceeded 2020 target early: 31% $225 million; first green
Slide 14: Financial Results
Financial Results
Slide 15: TELUS Technology solutions (TTech)
TELUS Technology solutions (TTech) Q4 2022 results $1,695 $1,116 $4,329 $1,479 million million million million Mobile network Fixed data Operating Adjusted revenue services revenue1 revenues EBITDA +6.5% +5.9% +13% +9.9% 1 Excludes health services as well as agriculture & consumer goods services rev
Slide 16: TELUS Technology solutions (TTech)
TELUS Technology solutions (TTech) Fiscal 2022 results $6,591 $4,351 $15,615 $5,874 million million million million Mobile network Fixed data Operating Adjusted revenue services revenue1 revenues EBITDA +6.2% +5.2% +7.5% +7.3% 1 Excludes health services as well as agriculture & consumer goods servic
Slide 17: Digitally-led customer experiences (DLCX)
Digitally-led customer experiences (DLCX) Fiscal 2022 results $2,677 million $769 million 23.9% Operating Adjusted Adjusted EBITDA revenues EBITDA margin1 +16% +30% +2.3 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
Slide 18: Consolidated
Consolidated Q4 2022 results $5,023 $265 $1,689 $1,126 $323 million million million million million Operating Net Adjusted Cash provided Free revenues income1 EBITDA2 by operating Cash Flow2 +13% -60.0% +11% activities +651% +26% 1 Net income in the fourth quarter of 2021 included the gain on sale o
Slide 19: Consolidated
Consolidated Fiscal 2022 results $18,292 $1,718 $6,643 $4,811 $1,274 million million million million million Operating Net Adjusted Cash provided Free revenues income1 EBITDA2 by operating Cash Flow2 +8.6% +1.2% +9.5% activities +64% +9.6% 1 Net income in the fourth quarter of 2021 included the gain
Slide 20: 2023 consolidated targets
2023 consolidated targets Operating revenues(1) Growth of 11 to 14% Adjusted EBITDA Growth of 9.5 to 11% Consolidated capex (excluding Approximately $2.6 billion spectrum licences)(2) Free cash flow Approximately $2.0 billion 1 For 2023, we are guiding on operating revenues, which excludes other inc
Slide 21: Strong liquidity position
Strong liquidity position Leading results driving our strong balance sheet and liquidity position ● Weighted average cost of long-term debt of 4.03% ● Average long-term debt term to maturity of 12.1 years ● Available liquidity1 of $2.8 billion ● $2.75 billion syndicated credit facility expiring Apri
Slide 22: Questions?
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Slide 23: Appendix 1: Ad hoc disclosure items
Appendix 1: Ad hoc disclosure items ● Mobile and fixed net additions of 301,000 in Q4/22, up 29,000 over last year, our strongest fourth quarter on record. ● Record fourth quarter connected device net additions of 106,000 and best fixed customer growth on record with 83,000 net additions. ● Total mo
Slide 24: Appendix 2: Key definitions
Appendix 2: 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 25: Let's make the future friendly, together.
Let's make the future friendly, together.