Slides
Page 1
Q3 2025 Investor Conference Call November 7, 2025
Page 2
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 2025 targets, our expectations regarding trends in the telecommunications industry (including demand for data and ongoing subscriber base growth), and our financing plans (including our multi-year dividend growth program). Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target and other similar expressions, or verbs such as aim, anticipate, believe, could, expect, intend, may, plan, predict, seek, should, strive and will. Our 2025 targets and outlook are presented for the purpose of assisting our investors and others in understanding certain key elements of our expected 2025 financial results as well as our objectives, strategic priorities and business outlook. Such information may not be appropriate for other purposes. Forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or other events may differ materially from expectations expressed today. These risks and assumptions underlying our forward-looking statements are described in additional detail in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings and Section 10 Risks and risk management in our 2024 annual management’s discussion and analysis (MD&A), and updated in our third quarter 2025 MD&A, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR+ at sedarplus.ca) and in the United States (on EDGAR at sec.gov). We disclaim any intention or obligation to update or revise any forward-looking statements except as required by law.
Page 3
Delivering on our consistent execution track record ● Strong Customer Growth: Industry-leading total customer additions of 288,000 ● Leading Customer Loyalty: Industry-best postpaid mobile phone churn of 0.91% ● Privatizing TELUS Digital: Integration to generate approximately $150 million in annualized cash synergies through operational efficiencies ● Robust Financial Performance: 3% TTech Adjusted EBITDA growth, including TELUS Health, with continued consolidated free cash flow expansion and stable capex ● TELUS Health Acceleration: 18% revenue growth and 24% Adjusted EBITDA growth, covering more than 160 million lives globally ● Progressing Deleveraging Initiatives: Targeting net debt to EBITDA of approximately 3.0-times by 2027, while stepping down and eliminating the Discounted DRIP
Page 4
Mobility operating results Q3 2025 Mobile phone ARPU $57.21 (-2.8% y/y) Mobile phone churn 1.11% Mobile phone net adds +82,000 Connected device net adds +169,000 Demonstrated disciplined execution with a continued commitment to profitable customer growth and customer service excellence 4
Page 5
Fixed operating results Q3 2025 Superior product portfolio and world-leading PureFibre network technology driving strong customer growth 5 Internet net adds +40,000 TV net adds +5,000 Security and automation net adds +6,000 Residential voice net losses (14,000) Total fixed net adds +37,000
Page 6
TELUS completes privatization of TELUS Digital ● In October, TELUS completed the acquisition of the remaining non-controlling interest in TELUS Digital, marking a significant milestone in our strategic evolution ● Integration to generate approximately $150 million in annualized cash synergies, by the end of 2026, through operational efficiencies ● Closer operational proximity will enable us to accelerate AI-powered transformation and SaaS solutions across our entire business portfolio, as well as drive attractive growth across our external client base Successful transaction positions TELUS as a global leader in AI-powered digital customer experience and SaaS transformation across multiple industries 6
Page 7
AI-enabling capabilities1 3-year revenue estimate 77 2025E 2028E ~$800 million ~$2 billion CAGR: >30% Across TELUS, our AI-enabling revenue is approaching $800 million for 2025, and expected to increase to approximately $2 billion by 2028, at a CAGR of more than 30%, derived solely from external clients 1 See appendix for more details.
Page 8
Connecting people through our globally unmatched networks ● Connecting over 3.6 million premises to leading fibre technology and 5G connecting 89% of Canadians ● Bridging digital and socio-economic divides by delivering world-leading connectivity to rural and Indigenous communities ● Reclaiming copper cables driving efficiencies, environmental benefits and aligned with real estate development opportunities Significant broadband network investments enabling our financial and operational performance, and the long-term sustainability of our industry-leading dividend growth program 8
Page 9
Leading the world in social capitalism ● Celebrating a landmark environmental milestone, our passionate and dedicated team has planted 25 million trees over the past 25 years that, when fully matured, will absorb 7.5 million metric tonnes of CO2 – equivalent to removing 1.8 million cars from our roads. ● Launching our Greater London Community Board with an inaugural £1 million in donation support through 2027 for charitable organizations delivering impactful youth programs - bringing the total to 21 TELUS Community Boards - 13 in Canada and eight internationally. 9
Page 10
FinancialResults
Page 11
Mobile network revenue $1.8 billion (1%) y/y Fixed data services revenue1 $1.2 billion +1% y/y Adjusted EBITDA2 $1.7 billion +2% y/y Adjusted EBITDA margin 43.4% +2.1pts TELUS technology solutions Q3 2025 Delivering solid financial results supported by our longstanding commitment to drive profitable customer growth and our ongoing focus on cost efficiency and effectiveness 11 1 Excludes agriculture and consumer goods services. 2 Excludes TELUS health reportable segment.
Page 12
TELUS health Q3 2025 Strong performance fuelled by strategic investments, product enhancements, expanding sales channels, and effective cost management - underpinned by putting customers first Operating revenues (arising from contracts with customers) $517 million +18% y/y Adjusted EBITDA $91 million +24% y/y Lives covered1 160.6 million +85 million y/y 10 1 During the second quarter of 2025, we added 79.3 million healthcare lives covered as a result of the Workplace Options acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly.
Page 13
1 This is a non-GAAP ratio that does not have any standardized meaning prescribed by IFRS Accounting Standards and is therefore unlikely to be comparable to similar measures presented by other issuers. See the Appendix in this presentation. 11 Robust revenue growth driven by TELUS and external clients, with continued strong performance in AI & Data Solutions and Digital Solutions; actively mitigating margin pressures TELUS digital experience Q3 2025 Operating revenues (arising from contracts with customers) $708 million +5% y/y Adjusted EBITDA $105 million (18%) y/y Adjusted EBITDA margin1 11.1% (3.4) pts y/y 11
Page 14
Consolidated Q3 2025 1 These are specified financial measures. For quantitative reconciliations, see Section 11.1 of the Q3 2025 MD&A available on SEDAR+ at www.sedarplus.ca. 14 Operating revenues $5.1 billion -% y/y Adjusted EBITDA1 $1.9 billion +1% y/y Free cash flow1 $611 million +8% y/y Capital expenditures (excluding real estate) $616 million (4)% y/y Resilient financial results reflecting operational execution excellence, continued focus on profitable and margin-accretive customer growth and focus on executing our extensive efficiency program 14
Page 15
1515 2025 financial targets Targets for 2025 demonstrate the resilience of our business and the effectiveness of our operational execution TTech operating revenues1 (including TELUS health reportable segment) Growth of 2 to 4% (At the lower end) TTech Adjusted EBITDA2 (including TELUS health reportable segment) Growth of 3 to 5% (Unchanged) Consolidated free cash flow Approximately $2.15 billion (Unchanged) Consolidated capital expenditures3 Approximately $2.5 billion (Unchanged) 15 1 TTech Operating revenues for 2024, including TELUS health reportable segment, were $17,407 million. 2 TTech Adjusted EBITDA for 2024, including TELUS health reportable segment, were $6,724 million. 3 Excludes approximately $100 million targeted towards real estate development initiatives.
Page 16
● Weighted average cost of long-term debt of 4.61% ● Average long-term debt term to maturity of 13.2 years ● Available liquidity1 of over $4.2 billion ● $2.75 billion syndicated credit facility expiring August 2030 ● Advancing deleveraging initiatives including successful Terrion partnership with La Caisse ● As of September 30, 2025, leverage ratio was 3.5x, down 0.2x from Q2 2025 1 This is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS Accounting Standards and might not be comparable to similar measures presented by other issuers. See the Appendix in this presentation. Strong balance sheet and liquidity position Continued EBITDA expansion, declining capital intensity and free cash flow growth, combined with ongoing strategic asset monetization initiatives, will continue to strengthen our balance sheet 16
Page 17
Balancing capital allocation priorities ● Quarterly dividend declared of $0.4184 payable January 2, 2026, up 4% y/y ● Targeting 3 to 8% annual dividend growth from 2026 through 2028 ● Focused on balance sheet deleveraging; targeted net debt to EBITDA leverage ratio of approximately 3x by the end of 2027 ● Stepping down Discounted DRIP beginning in 2026 with full removal planned for the end 2027 17 Dividend growth program underpinned by our confidence in generating meaningful free cash flow on a sustained basis while maintaining focus on balance sheet deleveraging and removing Discounted DRIP 17
Page 18
Questions? Investor relations 1-800-667-4871 telus.com/investors IR@telus.com
Page 19
Appendix Slide 7: AI-enabling capabilities includes TELUS Digital, including data and AI strategy and implementations, digital product experiences and growth marketing, and CX contact center technologies and other enterprise platform modernization, alongside data annotation, collection and validation, and support for GenAI LLMs development and maintenance; plus contribution from TELUS Business Solutions, including cloud connectivity services and Sovereign AI. 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: TELUS Digital Adjusted EBITDA margin is a non-GAAP ratio. Consolidated Adjusted EBITDA and free cash flow are other specified financial measures. For further definitions and explanations of these measures, see Section 11.1 of our third quarter 2025 MD&A available on SEDAR+ at www.sedarplus.ca and ‘Non-GAAP and other specified financial measures’ in our third quarter 2025 news release dated November 7, 2025. Key definitions
Page 20
Let’s make the future friendly, together.