TELUS : Supplément d'information (Offert en anglais seulement PDF, XLSX

TELUS Corporation

Second Quarter, 2021

Supplemental Investor Information

(UNAUDITED)

Financial information presented according to

International Financial Reporting Standards (IFRS)

as issued by the International Accounting Standards Board (IASB)

	For further information, please contact:		Table of Contents
	TELUS Investor Relations		TELUS Corporation
	1-800-667-4871		- User notes	2
	[e-mail]		- Selected Consolidated Data	3
	www.telus.com		- Segmented Data	4
			- Segmented Data (Historical Trend)	5
	Ian McMillan		TELUS technology solutions
	[phone]		- Operations	6
	[e-mail]		- Operations (Historical Trend)	7
			- Operating Statistics	8
	Robert Mitchell		- Operating Statistics (Historical Trend)	9
	[phone]		Digitally-led customer experiences - TELUS International
	[e-mail]		- Operations	10
			- Operations (Historical Trend)	11
			Non-GAAP measures and definitions	12-13

Supplemental Investor Information (Unaudited)	TELUS Corporation
Second Quarter, 2021	Page 1

User Notes

Effective January 1, 2021, TELUS Corporation's segment reporting structure was retrospectively re-cast to the beginning of 2020. This change came about due to:

1. Continually increasing technological convergence pushing the difference between mobile and fixed access further from the core network and closer to the customer point of access. This has resulted in an increasing demand for allocation of non- direct expenditure (both capital and operating) between mobile and fixed access
2. The increasing significance of digitally-led customer experience services, manifested as TELUS International (Cda) Inc.
3. The evolution of information regularly reported to the TELUS chief operating decision maker for purposes of allocating resources and assessing performance

New reporting segments:

TELUS technology solutions (TTech)provides a wide range of telecommunications products and services. Mobile products and services include network revenue (data and voice) and equipment sales arising from mobile technologies. Fixed products and services include data revenues (which include revenues from internet protocol; television; hosting, managed information technology and cloud-based services; home and business smart technology (including security and agriculture); and certain healthcare solutions), voice revenues, and other telecommunications services and equipment revenues. We currently earn the majority of our revenue from access to, and usage of, our telecommunications infrastructure, and from providing services and products that facilitate access to, and usage of, our infrastructure.

In alignment with our segment reporting changes, operating KPIs were impacted by changes to intersegment eliminations and have been retroactively adjusted to the beginning of 2020 in this document.

Digitally-ledcustomer experiences - TELUS International (DLCX)provides customer experience and digital enablement transformation through its customer care and business services operations, as well as designs, builds and delivers next-generationdigital solutions to enhance the customer experience for global and disruptive brands across multiple high-growthindustry verticals. We earn revenues pursuant to contracts with our clients that generally take the form of a master services agreement, or other service contracts.

Notable items:

The following information is provided to assist users of this document understand the restated information provided and compare it to other publicly available information:

1. Information presented on the DLCX segment was previously recorded in our legacy 'Wireline' segment. The remainder of the legacy 'Wireline' segment is consolidated with the results of our legacy 'Wireless' segment and recorded in the new TTech segment. DLCX intersegment revenue includes revenue that was previously eliminated within the legacy 'Wireline' segment.
2. DLCX segment current and comparative information presented reflects the Q2 2020 sale of a line of business from TELUS Communications Inc. to TELUS International (Cda) Inc (TI). This aligns to Management's view of the DLCX segment, however comparative information prior to Q2 2020 has not been adjusted in the information presented in Note 28(d) of the 2020 Annual TELUS Corporation Financial Statements as that information aligns with TI legal entity reporting, which accounted for the transaction using predecessor accounting prospectively applied.
3. In addition to the difference outlined in point b) above, there are additional definitional differences in other income, total operating revenue and adjusted EBITDA between the information presented in this document and the information contained within the TI consolidated financial statements as reported in their Form 20-F. These differences largely arise from TI adopting definitions consistent with practice in their industry.

Supplemental Investor Information (Unaudited)	TELUS Corporation
Second Quarter, 2021	Page 2

TELUS Corporation

Selected Consolidated Data

$ millions except shares, per share amounts, ratios and			Quarterly				June YTD	Annual
total customer connections	Q2/21	Q1/21	Q4/20	Q3/20	Q2/20	Q1/20		2021	2020
Net Income	344	333	271	321	315	353		677	1,260
Adjusted Net Income1(A)	348	359	289	356	316	400		707	1,361
Basic earnings per share ($)	0.25	0.25	0.20	0.24	0.23	0.28		0.50	0.95
Adjusted Basic earnings per share ($)(A)	0.26	0.27	0.22	0.28	0.25	0.32		0.53	1.06
Dividends declared per share ($)	0.3162	0.3112	0.3112	0.29125	0.29125	0.29125		0.6274	1.18495
Return on common equity2	9.4%	9.3%	10.1%	11.3%	12.7%	15.2%		9.4%	10.1%
EBITDA interest coverage ratio3	7.4	7.3	7.3	7.4	7.2	7.3		7.4	7.3
Free cash flow4	210	321	218	161	511	545		531	1,435
Net debt5	18,169	18,230	19,826	18,489	17,664	17,983		18,169	19,826
Net debt : EBITDA (times)6	3.11	3.15	3.45	3.21	3.06	3.13		3.11	3.45
Outstanding shares at end of period (M)	1,355	1,349	1,291	1,285	1,278	1,272		1,355	1,291
Basic weighted average shares outstanding (M)	1,355	1,298	1,291	1,284	1,278	1,248		1,327	1,275
Total customer connections (000s)(B)(C)	16,295	16,072	15,943	15,690	15,382	15,241		16,295	15,943

(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 a retirement of a provision arising from business acquisition-related written put options within DCLX.

Total Fixed						(B)(C)
Total Mobile			Total Customer Connections (000s)
			15,166	15,241	15,382	15,690	15,943	16,072	16,295
	14,254	14,500
14,057
			4,953	4,989	5,036	5,146	5,224	5,259	5,309
		4,417
4,321	4,364
9,736	9,890	10,083	10,213	10,252	10,346	10,544	10,719	10,813	10,986
Q1-19	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20	Q3-20	Q4-20	Q1-21	Q2-21

(B)Customer Connections may not balance due to rounding alignment to YTD figures. During the first quarter of 2019, we adjusted internet and total fixed cumulative subscriber connections to add approximately 16,000 subscribers from acquisitions undertaken during the quarter. 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. 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. Effective January 1, 2021, with retrospective application to January 1, 2020, in alignment with our segment reporting changes, we made a retroactive adjustment to remove internal network service revenue and approximately 29,000 subscribers from our mobile phone subscriber base. As well, effective January 1, 2021 on a prospective basis, following an in-depth review of customer accounts within a legacy subscriber provisioning system to be decommissioned, we adjusted our internet subscriber base to remove 16,000 subscribers.

Supplemental Investor Information (Unaudited)	TELUS Corporation
Second Quarter, 2021	Page 3

TELUS Corporation

Segmented Data

		Quarter 2					June YTD
$ millions	2021	2020	Change	% Change		2021	2020	Change	% Change
Operating revenues and other income
TELUS technology solutions	3,566	3,224	342	10.6%		7,060	6,517	543	8.3%
Digitally-led customer experiences - TELUS International	658	612	46	7.5%		1,297	1,111	186	16.7%
Less: Intersegment revenue	(113)	(108)	(5)	(4.6%)		(222)	(206)	(16)	(7.8%)
Operating revenues and other income	4,111	3,728	383	10.3%		8,135	7,422	713	9.6%
EBITDA7
TELUS technology solutions	1,323	1,197	126	10.5%		2,659	2,498	161	6.4%
Digitally-led customer experiences - TELUS International	128	162	(34)	(20.8%)		253	270	(17)	(6.3%)
Consolidated	1,451	1,359	92	6.8%		2,912	2,768	144	5.2%
EBITDA margin
TELUS technology solutions	37.1%	37.1%	-	pts.		37.7%	38.3%	(0.6) pts.
Digitally-led customer experiences - TELUS International	19.6%	26.6%	(7.0) pts.		19.6%	24.4%	(4.8) pts.
Consolidated	35.3%	36.5%	(1.2) pts.		35.8%	37.3%	(1.5) pts.
Capital expenditures
TELUS technology solutions	882	727	155	21.3%		1,544	1,373	171	12.5%
Digitally-led customer experiences - TELUS International	31	29	2	6.9%		54	48	6	12.5%
Consolidated	913	756	157	20.8%		1,598	1,421	177	12.5%
Capital expenditure intensity8
TELUS technology solutions	25%	23%	2	pts.		22%	21%	1	pts.
Digitally-led customer experiences - TELUS International	5%	5%	-	pts.		4%	4%	-	pts.
Consolidated	22%	20%	2	pts.		20%	19%	1	pts.
EBITDA less capex
TELUS technology solutions	441	470	(29)	(6.2%)		1,115	1,125	(10)	(0.9%)
Digitally-led customer experiences - TELUS International	97	133	(36)	(27.1%)		199	222	(23)	(10.4%)
Consolidated	538	603	(65)	(10.8%)		1,314	1,347	(33)	(2.4%)
Adjusted EBITDA9(A)
TELUS technology solutions	1,353	1,260	93	7.3%		2,718	2,602	116	4.4%
Digitally-led customer experiences - TELUS International	137	101	36	36.5%		275	234	41	17.4%
Consolidated	1,490	1,361	129	9.5%		2,993	2,836	157	5.5%
Adjusted EBITDA margin(B)
TELUS technology solutions	37.9%	39.1%	(1.2)	pts.		38.5%	39.9%	(1.4)	pts.
Digitally-led customer experiences - TELUS International	20.9%	18.6%	2.3	pts.		21.2%	22.6%	(1.4)	pts.
Consolidated	36.2%	37.2%	(1.0)	pts.		36.8%	38.6%	(1.8)	pts.

(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 DLCX (see Historical Trend pages for TTech and DLCX).

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 real estate joint ventures and retirement of a provision arising from business acquisition-related written put options within DLCX

DLCX TTech	Segmented EBITDA ($ millions)
1,409	1,359	1,390		1,461	1,451
1,336	125	128
108		132
162	116
1,301	1,197	1,258	1,220	1,336	1,323

Q1-20

Q2-20

Q3-20

Q4-20

Q1-21

Q2-21

Supplemental Investor Information (Unaudited)	TELUS Corporation
Second Quarter, 2021	Page 4

TELUS Corporation

Segmented Data - Historical Trend

			Quarterly				June YTD	Annual
$ millions	Q2/21	Q1/21	Q4/20	Q3/20	Q2/20	Q1/20		2021	2020
Operating revenues and other income
TELUS technology solutions	3,566	3,494	3,595	3,524	3,224	3,293		7,060	13,636
Digitally-led customer experiences - TELUS International	658	639	577	568	612	499		1,297	2,256
Less: Intersegment revenue	(113)	(109)	(112)	(111)	(108)	(98)		(222)	(429)
Operating revenues and other income	4,111	4,024	4,060	3,981	3,728	3,694		8,135	15,463
Revenues % change on prior year
TELUS technology solutions	10.6%	6.1%	1.3%	3.4%	(2.7%)	1.6%		8.3%	0.9%
Digitally-led customer experiences - TELUS International	7.5%	28.1%	41.1%	48.3%	66.3%	46.3%		16.7%	50.3%
Operating revenues and other income	10.3%	8.9%	5.2%	7.7%	3.6%	5.4%		9.6%	5.5%
EBITDA7
TELUS technology solutions	1,323	1,336	1,220	1,258	1,197	1,301		2,659	4,976
Digitally-led customer experiences - TELUS International	128	125	116	132	162	108		253	518
Consolidated	1,451	1,461	1,336	1,390	1,359	1,409		2,912	5,494
EBITDA % change on prior year
TELUS technology solutions	10.5%	2.7%	(3.8%)	(6.6%)	(7.5%)	(0.6%)		6.4%	(4.6%)
Digitally-led customer experiences - TELUS International	(20.8%)	15.4%	17.5%	51.3%	104.7%	53.3%		(6.3%)	54.4%
Consolidated	6.8%	3.7%	(2.3%)	(3.1%)	(1.0%)	2.2%		5.2%	(1.1%)
EBITDA margin
TELUS technology solutions	37.1%	38.3%	34.0%	35.7%	37.1%	39.5%		37.7%	36.5%
Digitally-led customer experiences - TELUS International	19.6%	19.5%	20.1%	23.1%	26.6%	21.7%		19.6%	22.9%
Consolidated	35.3%	36.3%	32.9%	34.9%	36.5%	38.1%		35.8%	35.5%
Capital expenditures
TELUS technology solutions	882	662	588	714	727	646		1,544	2,675
Digitally-led customer experiences - TELUS International	31	23	25	27	29	19		54	100
Consolidated	913	685	613	741	756	665		1,598	2,775
Capital expenditure intensity8
TELUS technology solutions	25%	19%	16%	20%	23%	20%		22%	20%
Digitally-led customer experiences - TELUS International	5%	4%	4%	5%	5%	4%		4%	4%
Consolidated	22%	17%	15%	19%	20%	18%		20%	18%
EBITDA less capex
TELUS technology solutions	441	674	632	544	470	655		1,115	2,301
Digitally-led customer experiences - TELUS International	97	102	91	105	133	89		199	418
Consolidated	538	776	723	649	603	744		1,314	2,719
Adjusted EBITDA9(A)
TELUS technology solutions	1,353	1,365	1,261	1,314	1,260	1,342		2,718	5,177
Digitally-led customer experiences - TELUS International	137	138	148	142	101	133		275	524
Consolidated	1,490	1,503	1,409	1,456	1,361	1,475		2,993	5,701
Adjusted EBITDA (A) % change on prior year
TELUS technology solutions	7.3%	1.8%	(3.8%)	(4.3%)	(4.6%)	(0.2%)		4.4%	(3.2%)
Digitally-led customer experiences - TELUS International	36.5%	3.0%	46.9%	55.4%	26.5%	87.4%		17.4%	52.8%
Consolidated	9.5%	1.9%	(0.2%)	(0.6%)	(2.9%)	4.2%		5.5%	0.2%
Adjusted EBITDA margin(B)
TELUS technology solutions	37.9%	39.1%	35.1%	37.2%	39.1%	40.7%		38.5%	37.9%
Digitally-led customer experiences - TELUS International	20.9%	21.6%	25.8%	24.8%	18.6%	26.8%		21.2%	24.0%
Consolidated	36.2%	37.4%	34.7%	36.5%	37.2%	39.9%		36.8%	37.0%

(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 DLCX (see Historical Trend pages for TTech and DLCX).

(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 real estate joint ventures and retirement of a provision arising from business acquisition-related written put options within DLCX.

Segmented external revenue profile - Q2 2021
Segmented EBITDA profile - Q2 2021
(% of total operating revenues)
TTech
86.6%	TTech
	91.2%

DLCX

DLCX

13.4%

8.8%

Supplemental Investor Information (Unaudited)	TELUS Corporation
Second Quarter, 2021	Page 5