TELUS (NYSE:TU) FY Conference Summary Company Overview - **Company**: TELUS Corporation - **Industry**: Telecommunications Key Points CEO Transition - The transition to the new CEO, Victor, is planned for May and July 2026, respectively, with a focus on continuity in strategic execution and culture alignment [3][4][5] - The management aims to maintain operational execution and continue deleveraging ahead of plan during the transition period [4][5] Wireless Business Performance - Subscriber growth is expected to mirror last year's performance due to a slowdown in immigration [7] - Average Revenue Per User (ARPU) is projected to continue improving, with the company leading in network revenue and churn reduction [7][10] - The competitive landscape is challenging, with aggressive pricing strategies from competitors impacting overall market dynamics [9][10] Market Dynamics - The Canadian telecommunications market is characterized by four well-capitalized operators, leading to competitive pricing pressures [12][13] - TELUS emphasizes value creation over subscriber loading, focusing on customer service and product bundling to maintain profitability [12][13][14] Fixed-Line Business Strategy - TELUS is expanding its market share in the eastern regions of Canada, focusing on providing value and relevant products to customers [19][20] - The company aims to avoid loss-making strategies in the east, similar to its approach in the west, by bundling services and ensuring profitability [20][21] Financial Performance and Deleveraging - The company has been transparent about its deleveraging plan, targeting a reduction in leverage from 3.4 to 3.0 by 2027 [27][49] - The fiber network is expected to yield returns over a long-term horizon, with a break-even period exceeding ten years in some communities [25][26] Capital Allocation and Investments - TELUS is focusing on reducing capital intensity to 10% or less, reallocating investments towards AI and digitization for improved customer service [28][30] - The company is exploring monetization opportunities for TELUS Health, with over 75 quality inbound interests [36][40] Future Outlook - TELUS aims to integrate digital and AI solutions into its core operations, enhancing customer service and maintaining relevance in a competitive market [45][48] - The company is committed to executing its operational plans and achieving its financial targets, with expectations of positive outcomes by the end of 2026 and 2027 [27][49] Additional Insights - The company has removed loading metrics from its performance scorecard, focusing instead on free cash flow and economic value [14][17] - TELUS Digital will remain part of the organization for now, with plans to enhance its AI capabilities and customer service offerings [41][42][43] This summary encapsulates the key discussions and strategic directions outlined during the TELUS FY Conference, highlighting the company's focus on operational execution, market competitiveness, and long-term financial health.

Core Viewpoint - TELUS Corporation is set to amend its Dividend Reinvestment and Share Purchase Plan (DRISP) by reducing the discount on shares issued from treasury to 1.75% effective April 1, 2026, impacting dividends payable on that date to shareholders of record on March 11, 2026 [1]. Summary by Relevant Sections Dividend Reinvestment Program Changes - Effective April 1, 2026, TELUS will reduce the discount on shares issued from treasury to 1.75% from the average market price for shares acquired through the reinvestment of dividends [1]. - The changes will apply to dividends payable on April 1, 2026, to shareholders of record on March 11, 2026 [1]. - Shares acquired with optional cash payments will be issued from treasury at 100% of the average market price [1]. Participation Details - Shareholders in Canada and the United States can elect to reinvest dividends in TELUS shares through the DRISP [1]. - Non-registered beneficial holders should consult their intermediaries for participation procedures [1]. - Enrollment forms must be received by Computershare Trust Company of Canada by the close of business on March 11, 2026, to participate in the April 1, 2026 dividend payment [1]. Company Overview - TELUS operates in over 45 countries, generating more than $20 billion in annual revenue with over 21 million customer connections [1]. - The company is committed to leveraging technology for positive human outcomes and has initiatives in health, agriculture, and digital customer experiences [1]. - TELUS has contributed $1.85 billion in cash and in-kind contributions since 2000, earning recognition as the world's most giving company [1].

Core Insights - TELUS Corporation reported strong customer growth with a total of 288,000 net additions in the third quarter of 2025, driven by demand for core connectivity services and the expansion of TELUS PureFibre connectivity [1][2][7] - The company achieved a 3% growth in TTech Adjusted EBITDA, reflecting a focus on profitable customer growth and cost efficiency [1][4] - TELUS Health demonstrated significant growth with an 18% increase in operating revenue and a 24% increase in Adjusted EBITDA, indicating successful execution of its global growth strategy [1][2][24] - Net income rose by 68% to $431 million, with basic earnings per share increasing to $0.32 [5][14] - Free cash flow grew by 8% to $611 million, supporting a quarterly dividend increase of 4% to $0.4184 per share [1][10][30] Financial Performance - Consolidated operating revenues were flat at $5.1 billion compared to the previous year, with a 2% increase in service revenue offset by lower mobile equipment revenue [1][14] - Adjusted EBITDA increased by 1% to approximately $1.9 billion, with varied results across segments [6][15] - Cash provided by operating activities increased by 4% to $1.5 billion, driven by working capital changes [10][14] Customer Growth and Segmentation - The total TTech subscriber base grew by 5% to 20.8 million, with mobile phone subscribers increasing by 2% and connected devices by 18% [8][15] - TELUS Health expanded its coverage to 160.6 million lives, a significant increase attributed to recent acquisitions and changes in service definitions [9][24] - Mobile phone net additions were 82,000, reflecting a decrease due to competitive pressures and changing customer preferences [7][19] Capital Expenditures and Investments - Consolidated capital expenditures decreased by 2% to $652 million, with a planned slowdown in network builds [11][14] - TELUS Digital's acquisition and integration are expected to generate approximately $150 million in annual cash synergies [3][11] Strategic Initiatives - TELUS closed a transaction with La Caisse to establish Terrion as Canada's largest dedicated wireless tower operator, enhancing connectivity and shareholder value [3][4] - The company celebrated planting 25 million trees, contributing to sustainability efforts and environmental leadership [3][34] Future Outlook - TELUS expects TTech operating revenue growth to be at the lower end of the original target range for 2025, while targets for Adjusted EBITDA and free cash flow remain unchanged [1][26][29] - The company is focused on maintaining a strong financial foundation and delivering sustainable growth through disciplined capital deployment [3][4][26]

Investment Rating - The report indicates a general decline in brand value across the top Canadian brands, with a total brand value of CAD342.1 billion in 2025, reflecting a 3.7% year-on-year decrease [20][21]. Core Insights - TD Bank Group remains the most valuable Canadian brand for the third consecutive year, valued at CAD23.4 billion, despite a 10% decline attributed to lower long-term revenue forecasts [25][33]. - Crown Royal is identified as the fastest-growing brand, with a remarkable 78% increase in value to CAD3.2 billion, and it also holds the highest Brand Strength Index score in Canada at 90.7 out of 100 [40][41]. - The banking sector leads in brand value, contributing one-third of the total brand value in the ranking, with notable performances from Circle K, CIBC, and Manulife, all recording double-digit growth [3][22]. Summary by Sections Valuation Analysis - The top 10 most valuable Canadian brands include TD, RBC, Circle K, Brookfield, Canada Life, Scotiabank, BMO, TELUS, CIBC, and Manulife, with varying changes in brand value [32][33]. - RBC ranks second with a stable brand value of CAD22.4 billion, supported by its acquisition of HSBC Bank Canada [26]. - Circle K's brand value increased by 11% to CAD17.2 billion, while Canada Life saw an 8% increase to CAD17.1 billion [28][29]. Brand Strength Analysis - Crown Royal's Brand Strength Index score increased by 23 points from the previous year, achieving a score of 90.7, indicating strong consumer perception [41][48]. - Dollarama follows as the second strongest brand with a BSI score of 86.6, driven by high familiarity among consumers [49]. - A&W and Canadian National Railway also rank highly in brand strength, with scores of 84.5 and 83.4, respectively [51]. Brand Guardianship Index - The Brand Guardianship Index evaluates the effectiveness of CEOs in managing brand value, with notable leaders including Calvin McDonald of Lululemon and Paul A Mahon of Great-West Lifeco [57][59]. Sustainability Analysis - Canadian brands are increasingly investing in sustainability initiatives, with Toromont leading in environmental sustainability perceptions [67][68]. - WSP Global ranks highest on social sustainability, while Jazz leads in governance perceptions [68][69].