Slide 1: Q2 2021 investor conference call
Q2 2021 investor conference call Friday, July 30, 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 ● Industry-leading profitable customer growth ● World-leading customer-centric culture ● Delivering outstanding connected experiences ● Advancing our 5G leadership with 3500 MHz spectrum ● Differentia
Slide 4: Industry-leading second quarter results
Industry-leading second quarter results ● Customer net additions of 223,000 ● Consolidated revenue and Adjusted EBITDA growth of 10% ● Stable mobile phone churn of 0.81% ● Strong fixed product customer loyalty results 4
Slide 5: Mobile Operating results
Mobile Operating results $56.56 0.81% +89,000 Mobile phone Mobile phone Mobile phone net ARPU churn adds +0.2% y/y Essentially flat y/y +28,000 y/y Leveraging our strong digital capabilities and best-in-class customer service to sustain high-quality and profitable customer growth 5
Slide 6: Fixed Operating results
Fixed Operating results +30,000 +11,000 +19,000 +50,000 Internet TV Security Total fixed net adds net adds net adds net adds (7,000) y/y +3,000 y/y +7,000 y/y +3,000 y/y Our premium and diversified product portfolio combined with driving higher product intensity continues to deliver industry-leading
Slide 7: Accelerated Broadband Investment Program
Accelerated Broadband Investment Program ● Investing from a position of strength and leadership position ● Enabling up to 225,000 additional premises with PureFibre ● Enhancing the speed and coverage of our 5G network ● Declining capex beginning in 2023 to $2.5 billion, or less 7
Slide 8: Enhancing our leading 5G network with 3500 MHz
Enhancing our leading 5G network with 3500 MHz ● Acquired 16.4 MHz of 3500 MHz spectrum licences nationally; hold 40 MHz in key markets including spectrum acquired privately ● Securing the spectrum necessary to bring transformational, next- generation, 5G connectivity to Canadians ● Enhancing our gl
Slide 9: Leading the world in social capitalism
Leading the world in social capitalism ● Over 290,000 volunteer hours through TELUS #FriendlyFuture Days and $4.8 million in grants through the TELUS Friendly Future Foundation and Community Boards in 2021 ● Health for Good clinics have provided 24,000 COVID-19 assessments and 5,400 vaccinations for
Slide 10: Health services Q2 2021 results
Health services Q2 2021 results $127 18.1 2.2 137.1 million million million million Services Lives Virtual care Digital revenue covered members transactions +26% y/y +2.6 million y/y +1.0 million y/y +13 million y/y Continuously innovating and transforming how Canadians experience healthcare to driv
Slide 11: TELUS Agriculture
TELUS Agriculture ● Targeting double digit revenue growth in 2021 to approximately $400M ● Supporting thousands of customers across 50+ different countries ● Over 87 million acres under active management ● 1,200+ team members around the world including N.A., Europe, APAC ● Providing digital solution
Slide 12: Financial Results
Financial Results
Slide 13: TELUS Technology Solutions (TTech)
TELUS Technology Solutions (TTech) Q2 2021 results $1,526 $1,091 $3,561 $1,353 million million million million Mobile network Fixed data External Adjusted revenue services revenue revenue EBITDA +3.7% +13.9% +10.6% +7.3% Our consistent focus on profitable loading and our diversified asset mix contin
Slide 14: Digitally-led customer experiences (DLCX)
Digitally-led customer experiences (DLCX) Q2 2021 results $550 $137 $106 5% million million million Operating Adjusted Capital Adjusted EBITDA revenue EBITDA intensity less capex +26% +36.5% Unchanged +47% Driving digital transformation journeys and enabling clients globally to embrace digital techn
Slide 15: Strong liquidity position
Strong liquidity position Successful equity and debt offerings enhances our strong balance sheet and liquidity position ● Weighted average cost of long-term debt of 3.70% ● Average long-term debt term to maturity of 12.3 years ● Over $5.1 billion total available liquidity ● $2.75 billion syndicated
Slide 16: Questions?
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Slide 17: Appendix
Appendix
Slide 18: Appendix 1: Q2 2021 EPS summary
Appendix 1: Q2 2021 EPS summary Basic EPS (Q2 2020) $0.23 Restructuring and other costs $0.02 Adjusted basic EPS (Q2 2020) $0.25 Higher adjusted EBITDA $0.07 Higher depreciation and amortization ($0.04) Higher outstanding shares ($0.02) Adjusted basic EPS (Q2 2021) $0.26 Restructuring and other cost
Slide 19: Appendix 2: Free cash flow continuity
Appendix 2: Free cash flow continuity ($M) Q2 2021 Q2 2020 YTD 2021 YTD 2020 EBITDA 1,451 1,359 2,912 2,768 Non-cash gains from the sale of property, plant, and equipment - 1 - (2) Restructuring and other costs, net of disbursements (2) 14 (14) 26 Effect of contract asset, acquisition and fulfilment
Slide 20: Appendix 3: DLCX to TELUS International reconciliation - Revenue
Appendix 3: DLCX to TELUS International (TI) reconciliation - Revenue Millions (except foreign exchange (FX) rate) Q2 2021 Q2 2020 Y/Y growth (%) TI revenue (USD$) 533 391 36% CAD$ equivalent, in constant currency (Q2 2020 rate) 739 541 Subtract: FX impact (stronger CAD to USD) (81) - Add: Xavient p
Slide 21: 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) Q2 2021 Q2 2020 Y/Y growth (%) TI Adjusted EBITDA (USD$) 131 84 56% CAD$ equivalent, in constant currency (Q2 2020 rate) 182 116 Subtract: FX impact (stronger CAD to USD) (21) S
Slide 22: Appendix 5: Ad hoc disclosure items
Appendix 5: Ad hoc disclosure items ● PureFibre internet, Optik TV, Residential voice churn all below 1% ● Enabled nearly 60,000 homes and business with fibre this quarter ● Mobile phone customer renewals up 23% year over year ● 70% of mobile rate plan changes either step-ups or flat on revenue ● Pe
Slide 23: 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 st
Slide 24: Most connected company in the world
Most GING company in the world. Pe Teus