Darren Entwistle member of the TELUS team

Size: px

Start display at page:

Download "Darren Entwistle member of the TELUS team"

Suzanna Osborne
5 years ago
Views:

1 Darren Entwistle member of the TELUS team 1

2 agenda Review of strategy Report on operational and financial performance Progress to being Canada s premier corporate citizen Update on 2007 corporate priorities and targets First quarter 2007 results 2

3 growing together with a proven strategy Strategic imperatives Focusing on growth markets of data and wireless Building national capabilities Providing integrated solutions Investing in internal capabilities Partnering, acquiring and divesting as necessary Going to market as one team Quebec and Ontario team grown from 300 to 10,000 team members 3

4 [Staying ahead] with a proven strategy growing together with a proven strategy strategic intent to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move. Consistent strategy and execution

5 TELUS share price outperforms peers and market $175 $150 $125 TELUS MSCI World Telecom Index TSX Since % (40)% 34% $160 $134 $100 $75 $50 $60 $25 World Telco Index $0 Jun-00 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Apr-07 TELUS outperforms global telecom index by 167% 5

6 TELUS total customer connections (millions) Res NALs Bus NALs Dial-up Internet High-speed Internet Q Q Q Q Wireless 50% increase since 2000 in connections due to wireless and Internet 6

7 2006 consolidated performance $ Dollars 2006 Change Revenue 8.7B 7% Operating profit (EBITDA) 3.6B 9% Net income 1.1B 60% EPS % Capex 1.6B 23% Free cash flow 1.6B 9% Achieving record performance 7

8 Strategic strategic focus on data and wireless $5.7B Revenue LD 23% Wireless 18% Wireline local 49% Data 10% 28% Seven years ago data and wireless small part of revenue 8

9 strategic focus on data and wireless Strategic focus on data and wireless $5.7B Revenue $8.8B LD 23% Wireline local 49% Wireless 18% Data 10% 28% LD 9% Wireline local 27% Data 19% Wireless 45% 64% Data and wireless represent 64% or $5.6B of revenue 3 9

10 increasing exposure to wireless growth $2.3B Operating Profit (EBITDA) Wireless Wireline Wireline 83% 78% 17% Wireless Wireline 48% Wireless 52% Seven years ago wireless small part of operating profit 10

11 increasing exposure to wireless growth $2.3B Operating Profit (EBITDA) $3.5B Wireless Wireline Wireline 83% 78% 17% Wireless Wireline 48% Wireless 52% Wireless now represents over 50% operating profit 11

12 generating record wireless performance in 2006 Wireless revenue $3.9 billion 17% 6 Operating profit $1.8 billion 21% 7 Cash flow $1.3 billion 27% Creating sustainable economic value for shareholders 12

13 growing together in wireless to lead the way 2006 TELUS Other Cdn US Avg. N.A. ranking Revenue growth 17% 14% 13% No. 2 Operating Margin 45% 43% 32% No. 1 8 Cash flow yield 34% 31% 14% No.1 Six year annual growth in revenue 16%, operating profit 49% 13

9 low churn relative to peers in 2006 2.9 2.4 2.3 1.8 1.7 1.6 1.5 1.3 1.2 1.

14 9 low churn relative to peers in Source : Merrill Lynch Global Wireless Matrix TELUS top 3 globally over last 7 years for customer loyalty 14

15 10 growing cash flow from wireless High revenue per customer Excellent customer loyalty Lifetime revenue $4,850 return phase $3.6B $(1)B investment phase Generating increased profitability and cash flow 15

16 Canadian wireless industry - a huge success story $20 billion invested in technology, infrastructure and jobs Serving 31 million Canadians Relying on market forces for growth and innovation Successful industry model creating sustainable growth and innovation 16

17 review of operations growing Canada s wireless penetration E 12 Penetration: Customers: 42% 56% 70% 13.4M 18.5M 23M 4 to 5 million new customers expected over next 3 years 17

million Music downloads and video games Watch 24 channels on

18 growing high speed wireless data services Rolling out wireless high speed EVDO More than 50 regions for $150 million Music downloads and video games Watch 24 channels on mobile TV Kid Find GPS location service $33 million investment in Quebec 18

19 introducing Blackberry World Edition Integrates CDMA/GSM for global roaming Delivers powerful productivity tools Multimedia capabilities Sleek new design Unveiling global capabilities in sleek device 19

20 launch of Amp d Mobile in Canada 20

21 Q1 Wireless Double digit growth in revenue & profit Millions Q Yearly Change Revenue $ 1,000 13% 13 Operating profit (EBITDA adjusted) % Capital expenditures $ % Cash flow (EBITDA less Capex) $ % Subscribers % $ 17 th consecutive quarter of year over year increased ARPU 21

22 growing together in wireline Driving high-speed access in consumer markets Delivering managed data solutions across Canada 22

23 building economics of scale in Quebec & Ontario $ millions Revenue 950 Operating Profit Cash flow (200) 2006 Taking a disciplined approach to profitable growth 23

24 Growing growing together in wireline Driving high-speed access Delivering managed data solutions across Canada Pursuing operational efficiency 24

review of operations wireless driving significant high-speed Internet growth 949

25 review of operations wireless driving significant high-speed Internet growth Q customers (000s) Platform for TELUS Future Friendly Home strategy 25

26 TELUS TV digital entertainment your way Available in Alberta, B.C. and eastern Quebec Disciplined approach Customised channel packaging Time shifting and call display Video on demand Opportunity for future value creation 26

27 webcast - LHJMQ Partnering with LHJMQ Broadcasting 630 games Bringing unique Quebec content Supporting amateur sports and young athletes 27

28 creating innovative business solutions National business expansion Serving key industries and the public sector Delivering innovations to help customers achieve their goals 28

29 building success through thought leadership Partner of choice for public sector organisations 29

30 building success through thought leadership Partner of choice for public sector organisations Health care: driving efficiencies and improving care 30

31 building success through thought leadership Partner of choice for public sector organisations Health care: driving efficiencies and improving care Model for leading IP solutions in financial services 31

32 building success through thought leadership Partner of choice for public sector organisations Health care: driving efficiencies and improving care Model for IP solutions in large Canadian corporations 32

driving efficiencies and improving care Model for IP

33 building success through thought leadership Partner of choice for public sector organisations Health care: driving efficiencies and improving care Model for IP solutions in financial & large corporations Leader in energy sector 33

first of kind in Canada Includes email, security and

34 building success through thought leadership Offering small businesses IP solutions TELUS Business One is first of kind in Canada Includes , security and shared hosting Exemplifies our future friendly promise 34

35 investing for growth 2000 to 2006 Building high speed data Building national platforms Building a lower cost structure free cash flow consolidated return phase $5.2B ($1.1B) Investment phase Executing strategy creating significant cash flow 35

36 investing in Quebec Since 2000 $4 billion invested Building a strong presence Blanc-Sablon Havre-St-Pierre Sept-Îles Baie-Comeau Gaspé Chicoutimi Rimouski Québec Rouyn-Noranda Trois-Rivières Montréal Gatineau Sherbrooke 36

37 investing for growth 2007 capital expenditures E Wireless Wireline $1.2B $1.19B $427M $550M $1.75 billion core business investments for future success 37

38 Q1 wireline results modest growth in a tough industry (millions except Internet) Q Change Revenue $ 1, % 14 Operating profit (EBITDA adjusted) $ % Capital expenditures $ % Cash flow (EBITDA less Capex) $ 203 (2.2)% High-speed Internet (thousands) % High speed Internet base up 18% 38

39 creating value and returning cash to investors Repaying debt $1.5 billion refinancing June 2007 $33 million savings in annual interest Dividend growth model Payout ratio guideline 45% to 55% of net earnings 3 significant dividend increases Dividend declared for 37.5 payable July 1, 2007 Repurchasing TELUS shares 43 million shares for $2.0 billion since December 2004 Balancing interests of debt holders and shareholders 39

40 leading the way in social responsibility Building economic, environmental and social sustainability National mobile phone recycling program Contributing $91 million to charities since 2000 $15 million in Quebec We give where we live 40

41 Karen Radford member of the TELUS team 41

42 Quebec is a priority for our community investments 42

43 we give where we live Giving $15 million since 2000 to communities where we live 43

44 we give where we live Montreal Green Fund Partnering with City of Montreal Investing $1 million over three years Creating a green fund Delivering Being innovations present to in help Montreal customers today and achieve tomorrow their goals 44

45 leading the way in social responsibility Established seven community boards across Canada Fostering community investment for grassroots charities Dedicating $4.3 million in 2007 $1.1 million in Quebec Increasing support by almost 25% in

46 review of operations wireless TELUS Community Boards Leading the way in TELUS journey to be Canada s premier corporate citizen Arts and Culture Sports and Education Health and Well-being 46

47 TELUS Community Boards in Quebec Donating $2 million to more than 150 charities in Quebec 47

48 TELUS Montreal Community Board Bernard Lamarre Chair - TELUS Montreal Community Board 48

49 TELUS Montreal Community Board Jean-Rene Gagnon Vice President and Associate GGA Communications Larry Smith President and CEO, Montreal Alouettes Isabelle Hudon President and CEO Board of Trade of Montreal 49

50 TELUS Montreal Community Board Jean Turmel President, Perseus Capital A.K. Velan President and CEO Velan Valves Inc. 50

51 TELUS Rimouski Community Board Hugues St-Pierre Chair - TELUS Rimouski Community Board 51

52 TELUS Rimouski Community Board Gaston Desrosiers Partner, Cain Lamarre Casgrain Wells Vice Chair, Rimouski Community Board Pierre Harvey Engineer, Services Précicad Paul Lafleur Chairman and CEO, Groupe BPR 52

53 TELUS Rimouski Community board Marie-Josée Pineault Planning Officer Agence de santé et des services sociaux Hervé Pomerleau Chairman, Groupe Pomerleau 53

54 54

55 55

review of operations wireless earning recognition for

six years Only North American telco in global index One

Environmental Corporate Citizen 2005 Corporate Social

56 review of operations wireless earning recognition for social responsibility Dow Jones Sustainability Index for six years Only North American telco in global index One of only 11 Canadian companies Twice Canada s Best Environmental Corporate Citizen 2005 Corporate Social Responsibility report ranked 1st in North America and top 50 globally 56

57 TELUS National Day of Service More than 5,000 alumni, team members, family and friends participated in 2006 Over 1,400 volunteer activities across the country Saturday, September 29,

58 58

59 delivering on our investor commitment Setting clear and measurable targets What gets measured, gets done 88% of public targets achieved in last six years 2006 financial statements fully compliant with SOX 404 Consistent track record for delivering what we promise 59

60 TELUS corporate priorities for 2007 Advancing leadership position in Consumer, Business, and Wholesale markets Driving technology evolution and improvements in productivity and service excellence Strengthening spirit of the TELUS team and our brand Developing best talent in global communications industry Our business, our customers, our team, MY responsibility 60

61 18 TELUS 2007 outlook - consolidated 15 Billions except EPS 2007 targets YoY growth Revenue $9.175 to $ to 7% Operating profit (EBITDA adjusted) 16 $3.725 to $ to 7% 17 EPS (adjusted) $3.25 to $ to 24% Capital expenditures approx. $1.75 8% Setting robust growth targets across board 61

62 TELUS first quarter results - consolidated Millions except EPS Q Change Revenue $ 2,205 6% Operating profit (EBITDA adjusted) $ 938 9% EPS adjusted $ % Capital expenditures $ % Maintaining industry leading momentum 62

63 leading global telecom performance Growth in Revenue Top 25% #1 Top 25% Top 25% Operating profit Top 25% #1 Top 25% Top 25% EPS Top 25% Top 25% Top 25% TELUS top performing incumbent telco stock since

global best in value creation 7 years 1 TELUS 60% 2 Singapore Tel 35% 3 BCE 11% 4 Portugal Tel -9% 5 AT&T -11% 6 Bell Aliant -13% 7 Hellenic Tel -14% 8 Telefonica -16% 9 Verizon -23% 10

64 global best in value creation 7 years 1 TELUS 60% 2 Singapore Tel 35% 3 BCE 11% 4 Portugal Tel -9% 5 AT&T -11% 6 Bell Aliant -13% 7 Hellenic Tel -14% 8 Telefonica -16% 9 Verizon -23% 10 Swisscom -23% 11 Telstra -32% 12 Telia -36% 13 BT -47% 14 Sprint Nextel -56% 15 Nippon Tel -58% 16 Telecom Italia -69% 17 KPN -70% 18 Deutsche Tel -78% 19 France Tel -83% 20 PCCW -94% 64

65 financial review drawing inspiration from our past 65

66 66

67 2007 annual general meeting 67

68 poll results Election of directors Appointment of auditors Cutest critters 68

69 69

70 questions and answers Using a microphone: State your name Confirm you are a shareholder or proxyholder Direct questions to Chairman Keep your question brief One question at a time 70

71 71

72 2007 annual general meeting 72

73 We appreciate your participation Please hand in your feedback form and voting device Leave headsets on your seat Join us for a reception in the lower lobby level 73

74 2007 annual general meeting 74

Darren Entwistle President & CEO. Investor Meetings Toronto, ON March 12-13, 2009

Darren Entwistle President & CEO Investor Meetings Toronto, ON March 12-13, 2009 TELUS forward looking statements Today's presentation and answers to questions contain statements about expected future