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TELUS CorporationFourth Quarter, 2020Supplemental Investor Information(UNAUDITED)Financial information presented according toInternational Financial Reporting Standards (IFRS)as issued by the International Accounting Standards Board (IASB)For further information, please contact:TELUS Investor n McMillan(604) 695-4539ian.mcmillian@telus.comRobert Mitchell(647) 837-1606robert.mitchell2@telus.comSupplemental Investor Information (Unaudited)Fourth Quarter, 2020Table of ContentsTELUS Corporation- Selected Consolidated Data- Segmented Data- Segmented Data (Historical Trend)TELUS Wireless- Operations- Operations (Historical Trend)- Operating Statistics- Operating Statistics (Historical Trend)TELUS Wireline- Operations- Operations (Historical Trend)- Operating Statistics- Operating Statistics (Historical Trend)Non-GAAP measures and definitions2345678910111213TELUS CorporationPage 1
TELUS CorporationSelected Consolidated Data millions except shares, per share amounts, ratios andtotal customer Q2/19Q1/19Dec YTD2020Annual2019Net Income2713213153533794405204371,2601,776Adjusted Net 50.291250.281250.281250.272501.184951.12625Basic earnings per share ( )(B)Adjusted Basic earnings per share ( )Dividends declared per share ( )(A)(B)(B)1Return on common equityEBITDA interest coverage ratio10.1%2Free cash flow 3Net debt4Net debt : EBITDA (times)5Outstanding shares at end of period (M)(B)Basic weighted average shares outstanding (M)Total customer connections 6614,50014,25414,05715,97215,166(A)Adjusted Net income and Adjusted EPS excludes the effects of restructuring and other costs, income tax-related adjustments, other equity losses related to real estate joint ventures, long-term debt prepayment premium and a gain on aretirement of a provision arising from business acquisition-related written put options within TELUS International (TI). Q2 2019 income tax-related adjustments include 121 million from the revaluation of our deferred income tax liability for the multiyear reduction in the Alberta provincial corporate tax rate that was substantively enacted in the second quarter of 2019.(B)All information pertaining to shares and per-share amounts for periods before March 17, 2020 reflects retrospective treatment of our 2 for 1 share split.Total WirelineTotal Customer Connections (000s)(C)(D)Total Q3-18Q4-1814,254(C)Customer Connections may not balance due to rounding alignment to YTD figures. Effective April 1, 2018 and on a prospective basis, we adjusted Wireline cumulative subscriber connections to remove approximately 68,000 TELUS TVsubscribers as we ceased marketing our Satellite TV product. In addition, the fourth quarter of 2018 opening mobile phone subscriber connections have been adjusted to exclude an estimated 23,000 subscribers impacted by the CRTC’s final prorating ruling in June 2018, which was effective October 1, 2018. As well, during the first quarter of 2019, we adjusted internet and total wireline cumulative subscriber connections to add approximately 16,000 subscribers from acquisitionsundertaken during the quarter.(D)Effective for the third quarter of 2019, with retrospective application to the launch of TELUS branded security services at the beginning of Q3 2018, we have added security subscriber connections to our total subscriber connections. December31, 2019 security subscriber connections have been increased to include approximately 490,000 subscribers related to our acquisition of ADT Canada (acquired on November 5, 2019). During the third quarter of 2020, we adjusted cumulativesubscriber connections to add approximately 31,000 security subscribers as a result of a business acquisition.Supplemental Investor Information (Unaudited)Fourth Quarter, 2020TELUS CorporationPage 2
TELUS CorporationSegmented DataQuarter 4 millions20202019Change% Change2020December YTD2019Change% ChangeOperating revenues and other incomeTELUS WirelessTELUS WirelineLess: Intersegment revenueOperating revenues and other %)(0.5%)(1.1%)41.9%22.0%32.9%41.3%26.7%35.5%0.6 pts.(4.7) pts.(2.6) pts.45.7%23.7%35.5%45.0%27.5%37.9%0.7 pts.(3.8) pts.(2.4) 9)(52)(131)8%22%15%11%28%19%(3) pts.(6) pts.(4) pts.723723658(32)626653297EBITDATELUS WirelessTELUS WirelineConsolidatedEBITDA marginTELUS WirelessTELUS WirelineConsolidatedCapital expendituresTELUS WirelessTELUS WirelineConsolidatedCapital expenditure intensity6TELUS WirelessTELUS .4%)(8.9%)(2.6%)(4.5%)10%25%18%11%30%20%(1) pts.(5) pts.(2) .4%29.1%38.8%0.8 pts.(3.1) pts.(1.8) pts.EBITDA less capexTELUS WirelessTELUS WirelineConsolidatedAdjusted EBITDA(A)TELUS WirelessTELUS 42.2%25.4%34.7%41.9%28.4%36.6%0.3 pts.(3.0) pts.(1.9) pts.Adjusted EBITDA margin(B)TELUS WirelessTELUS WirelineConsolidated(A)Adjusted EBITDA excludes restructuring and other costs, other equity losses related to real estate joint ventures, as well as retirement of a provision arising from business acquisition-related written putoptions within TI.(B)Adjusted EBITDA margin is Adjusted EBITDA divided by Operating revenues and other income, where the calculation of Operating revenues and other income excludes other equity losses related to realestate joint ventures and retirement of a provision arising from business acquisition-related written put options within TI.Q4 Segmented EBITDA ( eriods prior to 2019 have not been adjusted for adoption of IFRS16, accordingly, they are not comparable to 2019 and 2020 results.Supplemental Investor Information (Unaudited)Fourth Quarter, 2020TELUS CorporationPage 3
TELUS CorporationSegmented Data - Historical Trend 19Q1/19Dec YTD2020Annual2019Operating revenues and other incomeTELUS WirelessTELUS WirelineLess: Intersegment revenueOperating revenues and other Revenues % change on prior yearTELUS WirelessTELUS WirelineOperating revenues and other TDATELUS WirelessTELUS WirelineConsolidatedEBITDA % change on prior yearTELUS WirelessTELUS WirelineConsolidatedEBITDA marginTELUS WirelessTELUS WirelineConsolidatedCapital expendituresTELUS WirelessTELUS WirelineConsolidatedCapital expenditure intensity6TELUS WirelessTELUS 7192,804(156)2,648EBITDA less capexTELUS WirelessTELUS WirelineConsolidated(A)Adjusted EBITDATELUS WirelessTELUS WirelineConsolidatedAdjusted EBITDA (A) % change on prior yearTELUS WirelessTELUS WirelineConsolidatedAdjusted EBITDA %29.1%38.8%(B)TELUS WirelessTELUS WirelineConsolidated(A)Adjusted EBITDA excludes restructuring and other costs, other equity losses related to real estate joint ventures, as well as retirement of a provision arising from business acquisition-related written put options within TI. (seeHistorical Trend pages for Wireless and Wireline).Adjusted EBITDA margin is Adjusted EBITDA divided by Operating revenues and other income, where the calculation of Operating revenues and other income excludes other equity losses related to real estate joint ventures andretirement of a provision arising from business acquisition-related written put options within TI.(B)Segmented external revenue profile - Q4 2020(% of total operating revenues)Segmented EBITDA profile - Q4 pplemental Investor Information (Unaudited)Fourth Quarter, 2020TELUS CorporationPage 4
TELUS WirelessOperations(A) millionsOperating revenues and other income2020Quarter 42019Change% Change2020December YTD2019Change% ChangeNetwork revenueEquipment and other service revenueOperating revenues (arising from contracts with (130)(224)(1.5%)(6.5%)(2.8%)Other incomeTotal external 1)(235)(55.0%)(2.9%)Intersegment network revenueOperating revenues and other 7(228)13.2%(2.8%)Goods and services purchased(B)Employee benefits expense(B)Total operating (1.4%)41.9%41.3%45.7%45.0%0.7 pts.Capital expendituresCapital expenditure intensity61708%23811%81010%88911%EBITDA less capex723658659.9%2,8322,80428Add: Restructuring and other costs included in total operating expenseAdd: other equity losses related to real estate joint venturesAdjusted 233,72866(39)42.2%41.9%46.2%45.4%0.8 pts.EBITDAEBITDA margin (total revenue)Adjusted EBITDA margin(C)0.6 pts.(68)(28.6%)(3) pts.0.3 pts.(79)(8.9%)(1) pts.1.0%18.8%n.m.(1.0%)(A)May not balance due to rounding alignment to YTD figures.Includes restructuring and other costs.(B)(C)Adjusted EBITDA margin is Adjusted EBITDA divided by Operating revenues and other income, where the calculation of the Operating revenues and other income excludes other equity lossesrelated to real estate joint ventures.Wireless network revenue ( millions) 4571,5321,5131,4971,415Q1Q2Q3Q4(D)Periods prior to 2017 have not been adjusted for adoption of IFRS15 and IFRS9 accounting standards; accordingly, they are not comparable to 2017 - 2020 results. Theimplementation of IFRS16 standards did not impact network revenue.Supplemental Investor Information (Unaudited)Fourth Quarter, 2020TELUS CorporationPage 5
TELUS WirelessOperations - Historical Trend(A) millionsOperating revenues and other Dec YTD2020Q1/19Annual2019Network revenueEquipment and other service revenueOperating revenues (arising from contracts with 81,4924271,9196,0301,8757,9056,1242,0058,129Other incomeTotal external 98351,92497,914208,149Intersegment network revenueOperating revenues and other 1,997131,937607,974538,202Network revenue % change on prior yearTotal external revenue % change on prior 86344,3323,8446654,5093,693Goods and services purchasedEmployee benefits expense (B)Total operating A % change on prior 6%EBITDA margin (total .7%45.0%Capital expendituresCapital expenditure %1779%81010%88911%EBITDA less capex7237336367406587196967312,8322,804Add: Restructuring and other costs included in total operating expenseAdd: other equity losses related to real estate joint venturesAdjusted EBITDAAdjusted EBITDA % change on prior ,7287.7%Adjusted EBITDA 6.2%45.4%(A)May not balance due to rounding alignment to YTD figures.Includes restructuring and other costs.(B)(C)Adjusted EBITDA margin is Adjusted EBITDA divided by Operating revenues and other income, where the calculation of the Operating revenues and other income excludes other equity losses related to real estate joint ventures.Wireless EBITDA ( 93870844836842811800797Q1Q2Q3830Q4(D)Periods prior to 2019 have not been adjusted for adoption of IFRS16, accordingly, they are not comparable to 2019 and 2020 results.Supplemental Investor Information (Unaudited)Fourth Quarter, 2020TELUS CorporationPage 6
TELUS Wireless(A)Operating StatisticsQuarter 420202019December YTDChange% Change2020(8)17(2.1%)24.3%1,2772802.5%2019Change% Change1,375274(98)6(7.1%)2.2%8,9528,733219Mobile PhoneAdditions (000s)Gross additionsNet additions37487382708,9528,733 70.07 72.79( 2.72)(3.7%) 70.84 73.37( 2.53)(3.4%) 57.29 59.29( 2.00)(3.4%) 57.81 60.14( 2.33)(3.9%)Subscribers (000s)(B)ABPU ( )7ARPU ( )8Churn, per month (%)91.09%1.20%219(0.11) pts.0.95%1.08%2.5%(0.13) pts.Mobile Connected DeviceNet additions 3Subscribers (000s)(B)(6)316(2.3%)21.4%TotalNet additions (000s)Subscribers (000s)(A)(B)5355.2%May not balance due to rounding alignment to YTD figures.(B)Effective January 1, 2020 on a prospective basis, as a result of subscribers substantially loaded prior to 2019 and were identified as having limited or no cellular voice capabilitythrough an in-depth review of our mobile phone subscriber base, we made an adjustment to transfer approximately 60,000 mobile phone subscribers to our mobile connected devicessubscriber base.Mobile Phone Churn 0Q1-18Q2-18Q3-18Supplemental Investor Information (Unaudited)Fourth Quarter, ELUS CorporationPage 7
TELUS WirelessOperating Statistics - Historical 19Dec YTD2020Q1/19Annual2019Mobile PhoneAdditions (000s)Gross additionsNet 528,4708,9528,733ABPU ( )ABPU % change on prior year 70.07(3.7%) 71.39(4.9%) 69.65(5.1%) 72.300.2% 72.79(0.1%) 75.060.5% 73.430.5% 72.190.1% 70.84(3.4%) 73.370.2%ARPU ( )8ARPU % change on prior year 57.29(3.4%) 58.54(5.0%) 56.82(5.8%) 58.60(1.2%) 59.29(1.7%) 61.64(1.1%) 60.30(1.2%) 59.33(1.5%) 57.81(3.9%) %0.95%1.08%Subscribers (000s)(B)7Churn, per month (%)9Mobile Connected DeviceNet additions (000s)Subscribers 81,4801,4201,3381,2661,7961,480TotalNet additions (000s)Subscribers ,37510,28110,21310,0839,8909,73610,74810,213(A)May not balance due to rounding alignment to YTD figures.Effective January 1, 2020 on a prospective basis, as a result of subscribers substantially loaded prior to 2019 and were identified as having limited or no cellular voice capability through an indepth review of our mobile phone subscriber base, we made an adjustment to transfer approximately 60,000 mobile phone subscribers to our mobile connected devices subscriber base.(B)Mobile Phone Subscribers (000s) 8Q2-19Q3-19Q2-20Q3-20Q4-20(C)Fourth quarter of 2018 opening mobile phone subscriber connections have been adjusted to exclude an estimated 23,000 subscribers impacted by the CRTC’s final pro-rating ruling in June2018, as well as associated Q4 operating statistics (ARPU, ABPU and churn), which was effective October 1, 2018. In addition, Q2 2018 and Q4 2018 mobile phones were adjusted to reflect anadjustment for temporary subscribers in connected devices, instead of mobile phones. All associated Q2, Q3 and Q4 2018 operating statistics were also updated.Supplemental Investor Information (Unaudited)Fourth Quarter, 2020TELUS CorporationPage 8
TELUS WirelineOperations(A) millionsOperating revenues and other incomeData servicesVoice service (local and long distance)Other service and equipmentOperating revenues (arising from contracts with customers)Other incomeTotal external revenueIntersegment revenueOperating revenues and other incomeQuarter 42019Change2020Goods and services purchased(B)Employee benefits expense(B)Total operating 1%)44347222.0%26.7%44322%50428%EBITDA less capex-1,8521,861(4.7) pts.23.7%27.5%(3.8) pts.(9)(0.5%)(61)(12.1%)(6) pts.1,96525%2,01730%(52)(2.6%)(5) 3%25.4%28.4%Add: Restructuring and other costs included in total operating expenseAdd: other equity losses related to real estate joint venturesDeduct: retirement of a provision arising from business acquisition-related written put optionswithin TIAdjusted EBITDAAdjusted EBITDA margin% Change1,3302401061,676261,702681,770Capital expendituresCapital expenditure intensity6(C)December ITDAEBITDA margin% Change-(3.0) pts.2,0121,96526.0%29.1%27.6%(3.1) pts.(A)May not balance due to rounding alignment to YTD figures.(B)Includes restructuring and other costs.(C)Adjusted EBITDA margin is Adjusted EBITDA divided by Operating revenues and other income, where the calculation of Operating revenues and other income excludes other equity losses related to real estate joint venturesand retirement of a provision arising from business acquisition-related written put options within TI.Q4 Wireline revenue profile - (% of total external wireline revenue)(D)1%2%2%6%Other income6%6%7%4%11%14%16%20%23%0%2%Voice servicesOther services & ata services(D)Periods prior to 2017 have not been adjusted for adoption of IFRS15 and IFRS9 accounting standards; accordingly, they are not comparable to 2017 - 2020 results. The implementation of IFRS16 standards did not impactwireline revenue.Supplemental Investor Information (Unaudited)Fourth Quarter, 2020TELUS CorporationPage 9
TELUS WirelineOperations - Historical Trend(A) millionsOperating revenues and other Dec YTD2020Q1/19Annual2019Data servicesVoice service (local and long distance)Other service and equipmentOperating revenues (arising from contracts with ,0809863946,460Other incomeTotal external ,614121,5821137,549496,509Intersegment revenueOperating revenues and other 1,674561,6382627,8112516,760Data services revenue % change on prior yearTotal external revenue % change on prior Goods and services purchased(B)Employee benefits expense(B)Total operating 3,0675,9592,5302,3694,899EBITDAEBITDA % change on prior TDA marginCapital expenditures6Capital expenditure intensityEBITDA less capex-Add: Restructuring and other costs included in total operating expenseAdd: other equity losses related to real estate joint venturesDeduct: retirement of a provision arising from business acquisition-related written putoptions within TIAdjusted EBITDAAdjusted EBITDA % change on prior yearAdjusted EBITDA .0%29.1%1,965(A)May not balance due to rounding alignment to YTD figures.(B)Includes restructuring and other costs.(C)Adjusted EBITDA margin is Adjusted EBITDA divided by Operating revenues and other income, where the calculation of Operating revenues and other income excludes other equity losses related to real estate joint ventures and retirement of aprovision arising from business acquisition-related written put options within TI.Wireline data revenue ( 31,44420201,0191,051Q31,0641,200Q4(D)Periods prior to 2017 have not been adjusted for adoption of IFRS15 and IFRS9 accounting standards; accordingly, they are not comparable to 2017 - 2020 results. The implementation of IFRS16 standards did not impact wirelinerevenue.Supplemental Investor Information (Unaudited)Fourth Quarter, 2020TELUS CorporationPage 10
TELUS Wireline(A)Operating Statisticsthousands (000s)Internet Subscriber net additionsInternet SubscribersTV 3%687076089916.3%7846325,2244,953271(B)(C)Total Wireline net additions(A)% Change57.1%Security net additionsTotal Wireline SubscribersDecember YTD2019Change16(9)(B)(C)202028Residential Voice net additions (losses)Residential Voice Subscribers% Change44TV Subscriber net addsSecurity SubscribersQuarter 4,9532715.5%May not balance due to rounding alignment to YTD figures.(B)Effective for the third quarter of 2019, with retrospective application to the launch of TELUS branded security services at the beginning of Q3 2018, we have added security subscriber connections to ourtotal subscriber connections. December 31, 2019 security subscriber connections have been increased to include approximately 490,000 subscribers related to our acquisition of ADT Canada (acquired onNovember 5, 2019).(C)During the third quarter of 2020, we adjusted cumulative subscriber connections to add approximately 31,000 security subscribers as a result of a business acquisition.Security net addsWireline Residential Voice losses, Internet net adds,TV net adds and Security net adds (000s)Internet net addsTV net addsResidential Voice ntal Investor Information (Unaudited)Fourth Quarter, 9Q4-19Q1-20Q2-20Q3-20Q4-20TELUS CorporationPage 11
TELUS WirelineOperating Statistics - Historical Trend(A)thousands (000s)Q4/20Internet Subscriber net additionsInternet SubscribersTV Subscriber net addsTV SubscribersResidential Voice net additions (losses)Security net additionsSecurity Subscribers(B)(C)Total Wireline net additionsTotal Wireline 9Dec 101,2151,160(9)Residential Voice ,3644,3215,2244,953(A)May not balance due to rounding alignment to YTD figures.(B)Effective for the third quarter of 2019, with retrospective application to the launch of TELUS branded security services at the beginning of Q3 2018, we have added security subscriber connections to our totalsubscriber connections. December 31, 2019 security subscriber connections have been increased to include approximately 490,000 subscribers related to our acquisition of ADT Canada (acquired on November 5,2019).(C)During the third quarter of 2020, we adjusted cumulative subscriber connections to add approximately 31,000 security subscribers as a result of a business acquisition.TELUS TV subscribers upplemental Investor Information (Unaudited)Fourth Quarter, 3-201,215Q4-20TELUS CorporationPage 12
Non-GAAP measures and definitions of key operating indicators1Return on common equity is Net income attributed to equity shares for a 12-month trailing period, divided by the average Common equity for the12-month period.2EBITDA interest coverage ratio is defined as EBITDA (excluding restructuring and other costs), divided by net interest cost. Net interest cost isdefined as financing costs, net of capitalized long-term debt interest, excluding employee defined benefit plans net interest, as well as recoveries onredemption and repayment of debt, calculated on a 12-month trailing basis. Any losses recorded on the redemption of debt are included in netinterest. This measure is similar to the coverage ratio covenant in TELUS' credit facilities.3Free cash flow is a supplementary indicator of our operating performance, and there is no generally accepted industry definition of free cash flow.It should not be considered an alternative to the measures in the Consolidated statements of cash flows. Free cash flow excludes certain workingcapital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as found inthe Consolidated statements of cash flows. It provides an indication of how much cash generated by operations is available after capitalexpenditures (excluding purchases of spectrum licences) that may be used to, among other things, pay dividends, repay debt, purchase shares ormake other investments. We exclude impacts of accounting changes that do not impact cash, such as IFRS 15 and IFRS 16. Free cash flow maybe supplemented from time to time by proceeds from divested assets or financing activities.4Net debt is defined as Long-term Debt (including current maturities of long-term debt) plus debt issue costs netted against long-term debt, Shortterm borrowings and Accumulated other comprehensive income amounts arising from financial instruments used to manage interest rate andcurrency risks associated with U.S. dollar-denominated long-term debt (excluding tax effects), less Cash and temporary investments and netderivative assets.5Net debt to EBITDA excluding restructuring and other costs is defined as Net debt as at the end of the period divided by the 12-month trailingEBITDA excluding restructuring and other costs. Historically, Net debt to EBITDA excluding restructuring and other costs is similar to the LeverageRatio covenant in TELUS’ credit facilities.6Capital expenditure intensity is defined as capital expenditures (excluding spectrum licences and non-monetary transactions) as a percentage oftotal operating revenues and other income.7Mobile phone Average billing per subscriber per month (ABPU) is calculated as network revenue derived from monthly service plan, roamingand usage charges, as well as monthly re-payments of the outstanding device balance owing from customers on contract; divided by the
TELUS Investor Relations TELUS Corporation . 2018 and on a prospective basis, we adjusted Wireline cumulative subscriber connections to remove approximately 68,000 TELUS TV subscribers as we ceased marketing our Satellite TV product. In addition, the fourth quarter of 2018 opening mobile phone subscriber connections have been adjusted to .
