2017 results and 2018 targets

We are driven to achieve outstanding performance

At TELUS, we believe in setting annual financial targets to provide clarity for investors and help drive our performance.

In 2017, we achieved three of our four revised consolidated targets. Our achievements reflect growth in wireless network revenues resulting from an increase in average revenue per subscriber unit and growth in our wireless subscriber base, as well as an increase in wireline data service revenue and an ongoing focus on operational efficiency. Capital expenditures exceeded our target due to a continued focus on investments in our broadband wireless and wireline infrastructure.

For further information, see Section 1.4 of Management’s discussion and analysis (MD&A) in this report.

2017 targets

We continued to pursue our proven national growth strategy focused on wireless and data

2017 results

We achieved our revenues and earnings targets, supported by profitable customer growth in wireless and wireline and cost efficiencies

2018 targets

Our targets reflect revenue, earnings and dividend growth, supported by customer growth, continued network investments and an ongoing focus on efficiency

We are currently guided by a number of long-term financial objectives, policies and guidelines, which are detailed in Section 4.3 of the MD&A.

With these policies in mind, our 2018 consolidated financial targets reflect continued execution of our successful national growth strategy focused on wireless and data. In each of the past eight years, we have met three of our four consolidated financial targets, which has supported the return of capital to shareholders through our shareholder-friendly initiatives, including our multi-year dividend growth program.

The following scorecard shows TELUS’ 2017 performance against our revised targets, as well as our targets for 2018.

For more information and a complete set of 2018 financial targets and the assumptions on which they are based, see our fourth quarter 2017 results and 2018 targets quarterly report issued on February 8, 2018.

2017 revised targets

2017 results and growth

2018 targets

Revenues

Targeted between

$13.180 and $13.310 billion

an increase of

3.0 to 4.0%

$13.30 billion

an increase of

3.9%

Targeting between

$13.835 and $14.100 billion

an increase of

4 to 6%

EBITDA – excluding restructuring and other costs

Targeted between

$4.875 and $5.040 billion

an increase of

3.5 to 7.0%

$4.91 billion

an increase of

4.4%

Adjusted EBITDA

$4.89 billion

an increase of

4.8%

Targeting between

$5.105 and $5.230 billion

an increase of

4 to 7%

Basic earnings per share (EPS)

Targeted between

$2.49 and $2.66

an increase of

2.0 to 9.0%

$2.51

an increase of

2.9%

Targeting between

$2.53 and $2.68

an increase of

3 to 9%

Capital expenditures (excluding spectrum licences)

Targeted

$3.0 billion

$3.09 billion

an increase of

4.2%

Approximately

$2.85 billion

OPERATING REVENUES

($ billions)

Targeting an increase of 4 to 6%, driven by growth in wireless and wireline data, including acquisitions

ADJUSTED EBITDA

($ billions)

Targeting 4 to 7% growth, generated by profitable revenue growth and operating efficiencies in both our wireless and wireline businesses

BASIC EPS

($)

Targeting an increase of 3 to 9%, driven by EBITDA growth, partly offset by higher depreciation and amortization and interest costs

CAPITAL EXPENDITURES (EXCLUDING SPECTRUM LICENCES)

($ billions)

Continuing investment in wireless and wireline broadband infrastructure to support customer growth, technology evolution and reliability