Message from our CEO
People, purpose and passion. This powerful trifecta is the foundation upon which we have built your Company over the past 24 years. It is what enables TELUS to consistently deliver industry-leading results, and it has earned us our long-standing reputation as the global leader in social capitalism.
As the most giving company in the world, purpose is at the heart of everything we do. It is embedded into every aspect of our business and woven into the fabric of our culture, inspiring us to create the circumstances necessary to make the world a better place. Throughout 2023, your Company once again demonstrated the extraordinary outcomes that are possible when we leverage the potent combination of TELUS’ global-best networks alongside our team’s unparalleled passion for putting customers and communities first.
Supporting our customers and communities with passion
In 2023, our TELUS team continued to be there for our customers and communities when they needed us most. TELUS, our team members, retirees, customers and TELUS Friendly Future Foundation donated $100 million in cash, in-kind contributions, volunteer time and critical support programs to charitable and community organizations – more than any other company in Canada.
As people across the globe faced unimaginable challenges as a result of climate change and humanitarian crises, our TELUS family stepped up to help. Together, we supported 22 humanitarian and emergency relief efforts, providing $12.6 million toward global aid through cash donations and in-kind contributions, including support for the people facing unprecedented wildfires and hurricanes in Canada and earthquakes in Türkiye, Syria and Morocco.
Our 18th annual TELUS Days of Giving raised the bar higher than ever before, mobilizing a record-breaking 80,000 volunteers globally and helping to drive a world-leading 1.5 million volunteer hours through events such as planting community gardens across Canada, rebuilding schools in Guatemala and our canal cleanup in Amsterdam (see sidebar).
Since 2000, our TELUS family has generously donated $1.7 billion, including 2.2 million days of volunteerism – a feat unequalled by any other company on the planet.
Giving back with our hearts and our hands across the globe
In June 2023, 150 TELUS team members came together to clean up plastic waste from Amsterdam’s canals in Holland, in partnership with the Plastic Whale organization. Their efforts to liberate the canal of plastic bottles and other environmentally destructive waste were part of our 18th annual global TELUS Days of Giving, which inspired more than 80,000 team members to volunteer 1.5 million hours in 2023 – a feat unmatched by any other company in the world.
Connecting people through our globally unmatched networks
As events in 2023 once again demonstrated, having a reliable and powerful network is essential, as it enables us to stay connected to the people, information and resources that matter most. Indeed, in a world that continues to be ravaged by tragic disasters and humanitarian crises, a strong sense of connection and helping one another has never been more important.
In this regard, your Company has invested approximately $259 billion in network infrastructure, operations and spectrum over the past 24 years – and we have committed another $81 billion through 2027. These investments will ensure that TELUS customers continue to benefit from the best network experience in the world, which facilitates critical, generational change in healthcare, education, teleworking, the environment and our digital economy. Indeed, TELUS’ networks continued to earn global accolades in 2023 for reliability, expansiveness, speed and superiority, including multi-year recognition from independent, third-party organizations, such as Opensignal and PCMag. Perhaps most importantly, our networks also help us bridge digital divides, so every member of our society has the opportunity to reach their full potential.
In 2023, your Company celebrated the 10th anniversary of our unparalleled TELUS PureFibre network, which brings the fastest and most reliable communications technology in the world to 3.2 million households and businesses. Over the past decade, we have invested more than $7 billion to connect both urban and rural communities to our leading PureFibre network. Furthermore, $112 million has been invested to date, inclusive of the co-funding partnerships we initiated, to connect 248 Indigenous lands. We also demonstrated our leadership on the path of reconciliation by contributing $10 million to Indigenous initiatives, such as the digital Witness Blanket, as well as doubling the impact of the TELUS Indigenous Communities Fund, with a $2 million commitment through to 2028. Our goal is to make a meaningful impact in Indigenous communities and enable transformative outcomes that will be experienced positively by generations to come.
As we continue to expand TELUS PureFibre, your Company is progressing our global-best copper retirement program. Since 2022, we have retired over 77,000 premises from legacy copper infrastructure, and migrated over 98 per cent of eligible copper customers to fibre, paving the way for the many benefits inherent in fibre optics. By way of example, the transition from copper to fibre has already led to the reduction of more than 7,400 tonnes of greenhouse gas emissions cumulatively since the program’s inception. The program has also unlocked the potential of urban mining, in which we recycle unused telecom cables, mitigating the need to mine new copper sources. To date, we have repurposed more than 3,600 tonnes of copper, supporting the circular economy. Importantly, fibre is also more resilient to extreme weather, temperature changes and moisture, which helps ensure TELUS’ network is always available, including during severe weather emergencies.
2.2 million
days of service and $1.7 billion donated by TELUS, our team members and retirees in cash, in-kind contributions, time and programs since 2000, demonstrating our passion to give where we live.
Helping children learn and succeed
In Ottawa, team members came together with government officials to fill backpacks with essential school supplies and distribute them to school-age children to kick-start their school year. The initiative was part of our TELUS Kits for Kids program, which provides back-to-school supplies to children in need, demonstrating our social purpose in action. In 2023, we distributed 19,000 kits across Canada, bringing the total to more than 200,000 kits since the program began in 2006.
Subsidizing connectivity to bridge digital divides
We also celebrated the 10th anniversary of our TELUS Wise program, through which we provide citizens with free access to digital literacy tools and resources needed to stay safe and informed in our digital society. Certainly, the world has evolved significantly in recent years, with technology becoming more pervasive, including the accelerated adoption of generative artificial intelligence (AI). To help young people navigate this rapidly evolving technology, we launched a new workshop in 2023 on responsible AI.
Notably, your Company expanded our Internet for Good program to provide faster speeds and higher data usage to support the livelihoods of low-income families, seniors, youth, people with disabilities and refugees. Our Mobility for Good program for low-income seniors has provided invaluable support to nearly 14,000 individuals, facilitating essential connections that enable them to remain connected with loved ones, access vital healthcare services and utilize other crucial resources. Moreover, our Mobility for Good program was enhanced to provide over 6,200 government-assisted refugees with free smartphones and low-cost mobility plans. In doing so, TELUS is helping newcomers connect to support networks, online resources and their loved ones as they begin their new lives in Canada. These are just three examples of how our Connecting for Good programs ensure that the most vulnerable among us have access to world-leading technology and connectivity, to help them succeed in our digital world. Since inception, our TELUS team has supported over 1.1 million individuals through our Connecting for Good and TELUS Wise programs.
Creating a friendlier future for young people in need
At TELUS, we believe that every young person deserves an equal opportunity to thrive and reach their full potential. It was this philosophy that drove your Company to establish TELUS Friendly Future Foundation in 2018, and its positive and lasting impact will be felt by generations of youth.
The Foundation’s inspiring legacy continued to flourish in 2023, committing $11 million in cash grants to 550 grassroots charities and other community partners, while fundraising $3.6 million to advance the Foundation’s mission. The Foundation also made numerous sustainability-related investments, including providing $200,000 innovation grants to EcoSpark and Living Lakes Canada, organizations that teach students about environmental conservation and water stewardship. Importantly, this past year, TELUS and the Foundation celebrated a historic milestone, launching our $50 million TELUS Student Bursary – the largest bursary fund ever in Canada (see sidebar).
Since inception, the Foundation has contributed $47 million to local charities, supporting the incredible work of our TELUS Community Boards in Canada. In the United States, our recently launched TELUS North Carolina Community Board has already given US$350,000 to 38 grassroots organizations since 2022. Globally, TELUS Community Boards have invested $107 million in cash donations in more than 9,600 initiatives since 2005, assisting underserved youth populations in the communities where our team members live, work and serve.
Uplifting future leaders through the TELUS Student Bursary
History was made in October 2023 with the launch of the $50 million TELUS Student Bursary – the largest bursary fund in Canada. Disconcertingly, the average Canadian post-secondary student owes almost $30,000 upon graduation and two in five students consider withdrawing from school due to financial constraints. Our goal is to make the TELUS Student Bursary so large and impactful that every person in Canada who wants an education will get one, regardless of their financial or social circumstances.
Leading with purpose to protect our planet and strengthen communities
In 2023, we accelerated our sustainability efforts to reflect our team’s commitment to preserving our environment and our customers’ growing concerns about the impact of climate change. Notably, TELUS is demonstrating our commitment to being a nature positive company by offering critical connectivity and technology solutions that allow our customers to live, work and learn from anywhere and significantly enable a range of low-carbon behaviours and vital resource conservation, including virtual healthcare, precision agriculture and smart manufacturing.
Your Company achieved several sustainability milestones in 2023, including planting our one millionth tree and signing agreements with some of the world’s leading electric vehicle (EV) charging companies, including FLO and Jolt, to provide connectivity for thousands of EV charging stations. To help support a circular economy, we also extended our programs to repair, recycle and reuse wireless devices, which, to date, have diverted 15 million devices from landfills.
Beyond these initiatives, TELUS embraces tax morality as another way to improve outcomes for our fellow citizens. Since 2000, your Company has paid nearly $57 billion in total tax and spectrum remittances to federal, provincial and municipal governments. These funds support healthcare, education, national defence, arts and culture, public works projects and critical national infrastructure – all fundamental ingredients in the recipe for a vibrant and thriving society and growing economy.
Investing in businesses with a social purpose
One of the ways that TELUS amplifies our impact is by investing in companies and charities that share our passion for purpose. It was this vision that inspired us to create the TELUS Pollinator Fund four years ago, which today is one of the largest corporate impact funds in the world. In 2023, we increased the Fund’s portfolio to 30 companies, announcing investments in clean-tech startups like Flash Forest and Dryad Networks, which use cutting-edge technology to prevent and mitigate the effects of wildfires (see sidebar on page 14). To date, the Fund has committed nearly $50 million in investments to purpose-driven startups. Notably, 40 per cent of our portfolio companies are led by women and 50 per cent are led by Indigenous and racialized founders.
Similarly, through TELUS Ventures, your Company has invested in more than 100 market-transforming companies since 2001, including circa $200 million in 2023 alone, to support companies such as Miovision, which aims to reduce traffic congestion and emissions through real-time data analytics, and Rhino Health, which leverages AI insights to improve efficiency in the healthcare sector.
Through our fourth annual #StandWithOwners campaign, your organization championed game-changing small business owners, and five grand prize winners each received $125,000 in funding, along with advertising, technology and mentorship. This was a record-breaking year for the campaign, with over 12,000 applications, representing a 70 per cent year-over-year increase. Since 2020, your Company has committed $3.5 million through #StandWithOwners in support of deserving entrepreneurs.
Investing in companies that are protecting our planet
In response to the increasingly concerning wildfires in 2023, the TELUS Pollinator Fund made critical investments in Dryad and Flash Forest – two innovative startup businesses that are working to prevent and mitigate the impact of wildfires. Dryad leverages Internet of Things networks and sensor innovation to detect fires as early as their initial smoldering phase, greatly reducing the risk of fires spreading, while Flash Forest uses drones to reforest post-wildfire areas that are deemed unsafe for human tree planters.
Shining a spotlight on our amazing people
Your Company is also investing in our greatest asset: our amazing TELUS team members, whose collective grit, passion and ingenuity propel our leadership in social capitalism. In this regard, TELUS finalized four major collective agreements in 2023, securing long-term contracts that support the best interests of our team members, customers and Company.
In 2023, we unveiled several initiatives to support our team members and strengthen our award-winning culture. These included our new digital and interactive well-being platform, which supports team members’ health through group challenges and access to relevant, health-minded content. We also launched our new Indigenous Wellness Benefit, a unique program that provides up to $1,000 per year in reimbursement for traditional healing practices, ceremonies and medicines to help support our team members’ well-being. Additionally, we introduced a mentorship and career development program for Indigenous team members and expanded our Truth & Reconciliation e-learning program, which has been completed by over 17,000 team members.
Your Company also continued aligning our practices with the National Standard for Psychological Health and Safety in 2023 through our industry-leading TELUS Mental Health Commitment, including extensive mental health training for team members. In doing so, TELUS earned recognition from Excellence Canada for our holistic approach to well-being, once again placing us in the top echelon of Canadian employers.
These initiatives helped TELUS realize world-leading team member engagement of 82 per cent, once again placing us in the top 10 per cent of Canadian employers and the top quartile of employers, globally. These remarkable engagement scores were achieved amidst a challenging year, during which our organization implemented staff reductions as part of a significant cost efficiency program, demonstrating the resilience of our dedicated team members worldwide.
Your Company’s long-standing commitment to fostering a diverse and inclusive culture extends to our Board of Directors. Notably, in 2023, our Board of Directors adopted an enhanced diversity policy that reflects the true makeup of our Board – and our broader society – by ensuring that women and men each represent at least 40 per cent of independent directors. The policy also stipulates that TELUS’ Board must include at least three directors who are members of a visible minority, Indigenous, persons with disabilities or members of the LGBTQ2+ community.
1.1 million+
people helped by Connecting for Good and TELUS Wise programs. We are enabling remarkable human outcomes by providing citizens in need with access to our world-leading technology and connectivity, and building digital literacy knowledge.
Keeping people connected
in times of crisis
As natural disasters struck in 2023, the TELUS team was there to help. From historic flooding in Atlantic Canada to raging wildfires in Alberta and B.C., our team members worked around the clock to maintain critical infrastructure and network connectivity. We also provided support for local charities and organizations, and delivered mental health assistance, emergency care and essential supplies to the impacted communities. As well, following devastating earthquakes in Türkiye, Syria and Morocco, we provided support by waiving communication fees and raising funds to assist victims and their families. Throughout the year, we enabled $12.6 million in cash donations and in-kind contributions to help those facing humanitarian crises and natural disasters in Canada and around the world.
Achieving industry-leading customer growth and retention, with passion and purpose
TELUS continues to have the most loyal customer base in our industry, thanks to the commitment of our team members to deliver unrivalled customer experiences. We achieved a postpaid mobile phone churn rate of 0.87 per cent, representing our 10th consecutive year of industry-leading customer loyalty with churn rates of less than one per cent – an exceedingly rare achievement for any telecom in the world.
We recorded an all-time high 1.266 million new mobility and fixed customer additions in 2023, marking the second straight year of achieving net additions above one million, well above our Canadian peer group. This included surpassing one million mobile phone and connected device net additions – a record-best for your Company. Notably, we recorded 443,000 mobile phone net additions, the best result since 2010, and a record-high 564,000 connected devices, bringing our total connected devices to more than three million. During the year, we also welcomed our one millionth security customer, reinforcing TELUS’ leadership as the fastest-growing and most trusted security provider in North America.
Your Company’s consistent, industry-leading success is the result of our team’s dedication to putting our customers first. Indeed, it is thanks to our operational execution, unmatched bundled product offerings across mobile and home, and innovative programs such as HomePro, which provides 24/7 technical support for our customers, that millions of Canadians prefer to choose TELUS.
Converting our passion into strong operational and financial results
Throughout 2023, your Company successfully navigated a highly competitive industry, overcoming a dynamic regulatory environment and challenging macroeconomic landscape to achieve strong financial and operational results across our business. This was evidenced by operating revenues and Adjusted EBITDA increasing by 9.4 and 7.6 per cent, respectively. Net income declined by 50 per cent, primarily as a result of higher efficiency-related restructuring costs, depreciation and amortization from acquisitions, and financing costs. Importantly, free cash flow of approximately $1.8 billion was higher by an industry-leading 38 per cent, surpassing our updated target of approximately $1.5 billion.
TELUS International (TI) delivered solid revenue growth amidst a challenging operating landscape that impacted the global IT services sector. TI’s resilient results demonstrate its successful model of delivering end-to-end customer experience solutions backed by next-gen technology. This ongoing transformation led to the launch of Fuel iX – TI’s comprehensive suite of services that includes digital consulting, data and analytics, web and mobile development, and an AI-enabled platform. TI expanded operations into South Africa and Morocco, bringing the total number of countries in which TI operates to 32.
Similarly, our TELUS Business Solutions team contributed to our strong performance in 2023, notably delivering continued profitable growth and achieving best-ever results across several business verticals. In addition to our partnerships in the electric vehicle market, as outlined above, our team also accelerated the deployment of 5G industry solutions such as smart building technologies, worker safety measures, video fleet solutions, private wireless networks, data insight solutions and enhanced Internet of Things connectivity to help support organizations looking to reduce emissions, improve energy costs, enhance safety and drive efficiency.
80,000+
team members, retirees, family and friends came together during TELUS Days of Giving in 2023, volunteering with their hearts and hands to make a positive difference in communities around the world.
Creating stronger, more sustainable communities
More than 150 TELUS International (TI) Philippines team members partnered with non-profit Gawad Kalinga to transform its New Lucena community into a haven of hope for vulnerable citizens. Volunteering their time and energy, the team constructed and repainted houses, distributed groceries and learning kits to families, and created a sustainable community food garden. Since our first TELUS International Days of Giving in Manila in 2007, our extended TI family has made a positive impact in the lives of 1.6 million people in 32 countries.
Leveraging our purpose to revolutionize health and well-being
Across TELUS Health, we continue to pursue our mission to build the most trusted well-being company in the world and support the mental, physical and financial health of organizations and individuals around the globe. Notably, we grew our virtual care members to 5.6 million globally, up more than 24 per cent, year-over-year, and executed more than 610 million digital health transactions, bringing the lives covered, globally, through our TELUS Health programs to 69.5 million. Overall, we surpassed Health services revenue of $1.7 billion, up 87 per cent over 2022, and realized EBITDA contribution growth of 11 per cent. We also saw 20 per cent growth in TELUS Health MyCare users in 2023 and successfully finalized a significant MyCare contract with the Government of British Columbia.
In 2023, we launched Total Mental Health, offering unlimited access to counselling for organizations across Canada and the United States. This innovative solution provides our clients’ employees with access to a team of mental health professionals and personalized care, whenever and wherever they need it. We also introduced the TELUS Health Medical Alert Pendant with a state-of-the-art fall detection feature, empowering older adults with independence.
Our Health for Good program expanded in 2023 with the addition of new mobile clinics in Montreal and Victoria (see sidebar on page 11). This pioneering program provides vital support for underserved individuals, including people experiencing homelessness. To date, your Company has invested $13 million in cash, in-kind contributions, time and support programs to serve 25 communities across Canada, recording 200,000 patient visits. We also added two new Health for Good pillars, offering free TELUS Health MyCare counselling services for women in need of mental health support and low-cost TELUS Health Medical Alert services for low-income older adults.
69.5 million
lives covered by our health programs in
more than 160 countries worldwide.
Caring for our most vulnerable citizens and communities
Our TELUS team launched the Old Brewery Mission Mobile Health Clinic, powered by TELUS Health. With more than 10,000 Quebecers experiencing homelessness each night – some living with complex health and addiction issues – TELUS Health is committed to ensuring everyone has access to the dignity and care they need and deserve. By leveraging our technology and human compassion, we are bringing healthcare directly to the underserved communities that need it most.
Driving efficiency in agriculture through passion and technology
Through the power of our technology and innovative solutions, which harvest valuable data analytics and insights, our TELUS Agriculture & Consumer Goods (TAC) team is advancing the sector’s efficiency by reducing food waste, increasing yield, improving safety and optimizing the global supply chain.
Throughout 2023, your Company continued to integrate AI into our suite of TAC product offerings. Thanks to the efforts of our team, we are advancing the sector’s efficiency and effectiveness – including quality food production, waste reduction, food and retail execution, and trade promotion optimization – through data analytics.
TAC now serves more than 5,400 customers in over 50 countries, including 15 of the top 20 consumer packaged goods suppliers and nine of the 10 top crop protection and seed companies in the world. In the years ahead, we will continue to grow as we materially accelerate and significantly scale our TAC business into a major asset of consequence.
5,400+
customers in more than 50 countries enabled by TELUS Agriculture & Consumer Goods. We are creating a better world by powering value chains to drive more efficient production and reduce waste.
Improving farm safety with innovative technology
Keeping people safe is a top priority for farmers, including Tyson Ormann, who runs a mixed grain and cattle operation near Foremost, Alberta. TELUS Connected Worker solutions, available through Decisive Farming® by TELUS Agriculture, empower farmers like Tyson to prioritize safety in the field. With real-time monitoring of farm team activity and location, as well as access to emergency services, farmers can ensure the well-being of their team. The result is increased peace of mind, knowing team members are easily able to access help when they need it, especially when working alone or in higher-risk situations.
Delivering value for investors through our purpose
TELUS’ consistently strong results support our belief in a synergistic relationship between doing well in business and doing good in our communities. Over the past 24 years, your Company has delivered unparalleled long-term value for our shareholders – all while maintaining a robust balance sheet that enables us to execute on our passion for purpose.
Notably, over the course of the past 20 years, TELUS has generated a total shareholder return of 725 per cent, outpacing the Toronto Stock Exchange’s S&P/TSX Composite Index (TSX) by 376 percentage points and the MSCI World Telecom Services Index by 555 percentage points.
These results enable us to deliver value for our investors through our industry-leading dividend growth program, which is now in its 14th year. In 2023, we announced our 25th dividend increase since initiating our multi-year dividend growth program in 2011. Importantly, since 2004, TELUS has returned approximately $25 billion to shareholders, including $20 billion in dividends, representing $17 per share.
The dividend program continues to be a key differentiator for your Company and one of the many ways in which TELUS supports our investors across the globe, including individual shareholders, mutual funds and pension plans, and our team members and retirees, who collectively hold over 34 million TELUS shares, representing our fourth largest shareholder group among actively managed funds. Indeed, TELUS investors are our neighbours, friends and colleagues, which motivates us to continue delivering positive shareholder value through our purpose-driven strategy.
Bringing our brand promise to life with passion
The TELUS brand is synonymous with social purpose. Indeed, your Company is known worldwide for our unprecedented levels of giving and for our iconic brand promise, Let’s make the future friendly.
This brand recognition has contributed to TELUS receiving significant accolades for consumer trust, influence and impact. This includes being named the eighth most valuable brand in Canada, and the top telco brand, by Brand Finance, who valued our brand at $11.7 billion; up considerably from the $600 million it was valued at back in 2000. In addition, your Company was named the most trusted brand in Canada in the telecom, cable and digital category and one of the most authentic brands in Canada by Gustavson; the most trusted cellular service provider, home security provider and online healthcare platform by BrandSpark International; and one of the top 10 most valuable Canadian brands by Kantar BrandZ.
Setting bold targets to elevate our social purpose
To ensure your Company continues its industry leadership in key areas, we have established the following bold targets, which will motivate our team members and fuel their passion for excellence.
Our 2024 social impact targets include contributing an unparalleled 1.5 million hours of volunteerism, supporting an additional 212,000 citizens through our Connecting for Good and TELUS Wise programs, and granting more than $10 million to charities and bursary recipients through the Foundation.
Our sustainability targets include becoming a zero-waste and net carbon neutral company by 2030 or sooner, improving energy efficiency by 50 per cent from 2019 levels by 2030 and ensuring that 100 per cent of our electricity will effectively come from renewable or low-emitting sources by 2025.
Finally, our TELUS team has set ambitious, industry-leading financial targets for 2024, including growth in TELUS technology solutions (TTech) operating revenues and Adjusted EBITDA of up to four and 7.5 per cent, respectively, consolidated capital expenditures of approximately $2.6 billion, and consolidated free cash flow of approximately $2.3 billion, a year-over-year increase of circa 30 per cent. When combined with the 2024 financial targets set by TI, we expect TELUS’ consolidated operating revenues and Adjusted EBITDA to grow at similar rates approximate to our TTech outlook.
Thanking the amazing people who bring our purpose to life
Over the past year, TELUS’ people, purpose and passion once again differentiated our Company in the hearts and minds of citizens worldwide. Amidst a dynamic 12 months for our industry, our amazing team members demonstrated resilience and a heartwarming commitment to forging human connections with our customers and communities.
As we all navigate this complex world – with its inherent challenges and opportunities – you can continue to count on our 132,000 team members and retirees to demonstrate our hallmark passion for purpose while delivering leading operational and financial results.
On behalf of our entire TELUS team, thank you to our shareholders, customers and community partners for helping us create a better, safer and more connected world. Together, we are making the future friendly for all.
Darren Entwistle
Proud member of the TELUS team for more than two decades
February 16, 2024
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