6-K

UNITED STATES

SECURITIESAND EXCHANGE COMMISSION****WASHINGTON, D.C. 20549

FORM 6-K

Report of Foreign Private IssuerPursuant to Rule 13a-16 or 15d-16under the Securities Exchange Act of 1934

For the month of August 2024Commission File Number 001-15144

TELUSCORPORATION(Translation of registrant's name into English)

23rdFloor, 510 West Georgia StreetVancouver, British Columbia V6B 0M3Canada

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ¨ Form 40-F x

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

2

Exhibit Index

3

Exhibit 99.1

August 2, 2024

TELUS reports operational and financial results for second quarter 2024

Total Mobileand Fixed customer growth of 332,000, up 39,000 over last year, representing a record second quarter, driven by strong demand for ourleading portfolio of Mobility and Fixed services

Robust Mobile Phone net additions of 101,000,and record second quarter Connected Device net additions of 161,000; industry-leading postpaid mobile phone churn of 0.89 per centRecord secondquarter Fixed customer net additions of 70,000, including 33,000 internet customer additions, driven by our leading TELUS PureFibre network,premier portfolio of bundled services across Mobile and Home, and leading household client loyaltyTTech AdjustedEBITDA growth of 5.1 per cent and strong margin expansion of 150 basis points to 38.2 per cent reflecting a lower cost to serve and focuson driving higher margin per user and continued double digit momentum in health services EBITDA contribution growthNet incomeand earnings per share higher by 13 per cent and 7.1 per cent, respectively and on an adjusted basis increased by 34 and 32 per cent;Adjusted Consolidated EBITDA higher by 5.6 per cent and margin increased 170 basis points to 36.1 per cent; Consolidated free cash flowincreased by 71 per centFull year 2024 TTech operating revenues andAdjusted EBITDA trending to lower end of their respective original target growth ranges; Consolidated free cash flow being updated toapproximately $2.1 billion fully reflecting the flow through from TELUS Digital Experience’s revised EBITDA outlook; Consolidatedcapital expenditures of approximately $2.6 billion remains unchanged 1 Vancouver, B.C. – TELUSCorporation today released its unaudited results for the second quarter of 2024. Consolidated operating revenues and other income increasedby 0.6 per cent over the same period a year ago to $5.0 billion. This growth was driven by higher service revenue in our TELUS technologysolutions (TTech) segment offset by lower service revenue in our TELUS digital experience segment (TELUS Digital), formerly known asDigitally-led customer experiences – TELUS International. Within TTech, higher revenue from mobile network, residential internetand security services, driven largely by subscriber growth, higher organic growth across multiple lines of business in health servicesand higher agriculture and consumer goods service revenues related to business acquisitions and improving organic growth across certainlines of business in agriculture services was partially offset by declines in TV and fixed legacy voice services revenues due to technologicalsubstitution. The decline in TELUS Digital operating revenues were from lower external revenues reflecting macroeconomic conditions.See Second Quarter 2024 Operating Highlights within this news release for a discussion on TTech and TELUS digital experience results."In the second quarter, our team built upon our track record ofexecution excellence to drive industry-leading customer growth and strong financial results, leveraging our premier portfolio of assets,coupled with a relentless pursuit to drive cost efficiency and effectiveness,” said Darren Entwistle, President and CEO. “Ourresults demonstrate how we are delivering sustainable profitable growth, underpinned by our consistent strategic focus on margin-accretivecustomer expansion, globally leading broadband networks and customer-centric culture. This enabled a record second quarter, with totalcustomer net additions of 332,000, up 13 per cent, year-over-year, including healthy mobile phone net additions of 101,000, and recordsecond quarter customer additions for both connected devices of 161,000 and total fixed net additions of 70,000. Our team’s passionfor delivering customer service excellence once again contributed to leading loyalty across our key product lines. Notably, postpaid mobilephone churn was 0.89 per cent, alongside PureFibre churn circa one per cent, further showcasing the consistent potency of our unmatchedbundled product offerings across Mobile and Home, over our industry-best PureFibre and wireless broadband networks.”“Today, TELUS International, which will formally complete itsrebranding to TELUS Digital Experience (TELUS Digital) in the third quarter, reported its second quarter results that reflect a macroeconomicand operating environment that remains challenged. Notwithstanding the persistent headwinds, TELUS Digital continues to generate consistentlystrong cash flows that are being leveraged to reinvest into the business to support the reacceleration of top line growth along with anongoing focus on surfacing cost efficiency initiatives to optimize its operations. As our TELUS Digital team advances opportunities withexisting and prospective clients, their comprehensive and growing suite of AI solutions is capturing customer demand as demonstrated bythe double-digit revenue growth within its AI Data Solutions line of service in the first half of this year. Furthermore, the strengthof the generative AI fueled solutions, and tools created for TELUS across all areas of our business, fortify their go-to-market effortswith other clients. While we are encouraged by these positive indicators of longer-term growth opportunities, the challenged near-termenvironment impacts the expected levels of revenue and profit for 2024, leading TELUS Digital to revise its annual outlook for the fullyear. Our confidence in TELUS Digital remains steadfast as the business continues its evolution to a technology-centric model with significantopportunities in respect of digital transformation. This includes driving innovative generative AI solutions for our customers to elevateleading and differentiated digital client experiences in the market, creating a positive tailwind for TELUS Digital’s medium- andlong-term growth.” 2 “Within TELUS Health, we are pleased with the solid performance, returningto positive top line growth of four per cent as investments in our products, sales and distribution channels deliver strong momentum acrossmultiple lines of service. This includes MyCare, pharmacy management systems, virtual pharmacy, retirement benefits solutions, healthbenefits management, our precision health, and our employee assistance programmes. Our team also delivered over 33 per cent adjusted EBITDAcontribution growth. This was supported by the aforementioned revenue growth along with the achievement of $297 million in combined annualizedsynergies since the acquisition of LifeWorks in 2022, including $248 million in cost synergies along with $49 million in cross selling,as we work towards our overall objective of $427 million by the end of 2025. Furthermore, we drove a 10 per cent year-over-year increasein our global lives covered to more than 75 million. Similarly, within TELUS Agriculture & Consumer Goods, we are yielding positiveoutcomes as we strengthen our market position, delivering strong revenue growth of more than 15 per cent reflecting inorganic growth fromtuck-in acquisitions, and improving organic revenue performance in our consumer goods, precision agronomy, and animal agriculture businesses.This comes on the heels of continuing strong sales performance where we have more than doubled our year-to-date sales bookings versusthis time last year. Our commitment to amplifying the substantial growth potential of these distinctive global businesses is underscoredby harnessing the expertise, experience and high-performance culture and talent of our entire team. This includes capitalizing on thesignificant cross-selling opportunities across all of our businesses, showcasing the collective talent and effectiveness of our team inpropelling our success.”“Our TELUS team remains deeply committed to making the worlda better place,” added Darren. “This is reflected in the incredible work of our TELUS Community Boards, which leverage theexpertise of local leaders to ensure charitable funding is directed to where it will have the most impact, as well as the TELUS FriendlyFuture Foundation, with a mission to help youth realize their full potential. Impressively, since 2005, our 19 TELUS Community Boardsaround the world and the Foundation have contributed close to $130 million in cash donations in support of 10,300 initiatives, positivelyimpacting the lives of 33.5 million youth, globally.”Doug French, Executive Vice-president and CFO said, "Our strongperformance during the second quarter is a testament to our consistent track record of operational execution excellence. Despite facinga challenging competitive and macroeconomic environment, we are executing against our strategic objectives, including our significantcost efficiency programs. In the quarter, this supported strong consolidated EBITDA growth of 5.6 per cent, alongside margin expansionof 170 basis points to 36.1 per cent. Our unrelenting focus on efficiency and effectiveness is further demonstrated by surpassing ourfull year assumption on restructuring investments in the first half of the year as we look to maximize the in-year financial benefit.For 2024, we now anticipate restructuring expense to be $400 million as we further optimize our cost structure to drive EBITDA expansion,margin accretion and accelerated cash flow growth.”"As we enter the back half of the year, our financial positionremains strong. At the end of the second quarter, we had approximately $2.5 billion of available liquidity, our average cost of long-termdebt was 4.42 per cent, our average term to maturity of long-term debt is 11 years and our net debt to EBITDA ratio was 3.85 times. Aswe progress through 2024 and into future years, we anticipate our leverage ratio to improve as we work back towards our target ratio throughcontinued EBITDA growth, declining capital intensity toward the 10 per cent level and ongoing free cash flow expansion.”"Looking ahead, in light of the highly competitive environmentin mobility and fixed, we are trending to the lower end of our 2024 growth target for TTech operating revenues. Despite these industrypressures, we remain confident in our commitment to driving strong, sustainable and margin accretive growth. This will be supported bymaintaining our keen focus on driving a lower cost to serve as we work towards achieving the lower end of our annual TTech Adjusted EBITDAgrowth target. Consolidated free cash flow is being updated to approximately $2.1 billion, fully reflecting the flow through from TELUSDigital’s lower EBITDA outlook. Our confidence in the strength and resilience of our business remains unwavering, and we are excitedabout the future prospects that lie ahead for our organization. This includes our expectations for continued free cash flow expansionin the years ahead, driven by ongoing strong EBITDA growth and moderating capital expenditure intensity, further supporting the long-termsustainability and quality of our long-standing and leading dividend growth program,” concluded Doug. 3 As compared to the same period a year ago, net income in the quarterof $221 million was up 13 per cent and Basic earnings per share (EPS) of $0.15 increased by 7.1 per cent. These increases were drivenby higher Adjusted EBITDA as detailed below, partially offset by higher financing costs, driven by increased long-term debt and higherinterest rates on both floating-rate and recent fixed-rate issuances. These costs were mainly associated with investments in spectrumand fiber technology, business acquisitions, and higher restructuring costs related to efficiency programs, including workforce reductionsand real estate rationalization.As it relates to EPS, the trends also reflect the effect of a highernumber of Common shares outstanding. When excluding certain costs and other adjustments (see ‘Reconciliation of adjusted Netincome’ in this news release), adjusted net income of $366 million increased by 34 per cent over the same period last year,while adjusted basic EPS of $0.25 was up 32 per cent over the same period last year. Adjusted net income is a non-GAAP financial measureand adjusted basic EPS is a non-GAAP ratio. For further explanation of these measures, see ‘Non-GAAP and other specified financialmeasures’ in this news release.Compared to the same period last year, consolidated EBITDA increasedby 5.5 per cent to approximately $1.7 billion and Adjusted EBITDA increased by 5.6 per cent to approximately $1.8 billion. The growthin Adjusted EBITDA reflects: (i) broad-based cost reduction efforts, synergies achieved between LifeWorks^®^ and our legacyhealth business, and an increase in TTech outsourcing to TELUS Digital, as well as savings in marketing, discretionary and administrativecosts; (ii) mobile network, residential internet and security subscriber growth; (iii) higher gains in other income; and (iv) growth inhealth services revenue. These factors were partly offset by: (i) lower mobile phone ARPU; (ii) merit-based compensation increases; (iii)lower operational growth in TELUS Digital excluding other income; (iv) higher network operations costs; (v) declining TV and fixed legacyvoice margins; (vi) lower mobile equipment margins; (vii) higher bad debt expense; and (viii) higher costs related to the scaling of ourdigital capabilities.In the second quarter, we added 332,000 net customer additions, up39,000 over the same period last year, and inclusive of 101,000 mobile phones and 161,000 connected devices, in addition to 33,000 internet,25,000 TV and 20,000 security customer connections. This was partly offset by residential voice losses of 8,000. Our total TTech subscriberbase of 19.5 million is up 6.9 per cent over the last twelve months, reflecting a 4.5 per cent increase in our mobile phones subscriberbase to over 9.9 million and a 24 per cent increase in our connected devices subscriber base to approximately 3.4 million. Additionally,our internet connections grew by 5.3 per cent over the last twelve months to approximately 2.7 million customer connections, our TV customerbase stands at more than 1.3 million customer connections, and our security subscriber base increased by 8.2 per cent to approximately1.1 million customer connections. Lastly, our residential voice subscriber base declined slightly by 2.9 per cent to more than 1.0 million.In health services, as of the end of the second quarter of 2024, virtualcare members were 6.3 million and healthcare lives covered were 75.1 million, up 19 per cent and 10 per cent over the last twelve months,respectively. Digital health transactions in the second quarter of 2024 were 163.3 million, up 6.8 per cent over the second quarter of2023.Cash provided by operating activities of $1.4 billion increased by24 per cent in the second quarter of 2024 and free cash flow of $478 million increased by 71 per cent compared to the same period a yearago, reflecting higher EBITDA, lower capital expenditures and lower income taxes paid. These factors were partly offset by increased restructuringdisbursements and increased interest paid. Our definition of free cash flow, for which there is no industry alignment, is unaffected byaccounting standards that do not impact cash. 4 Consolidated capital expenditures of $691 million, including $23million for real estate development, decreased by $116 million or 14 per cent in the second quarter of 2024. TTech operations drove$121 million of the decrease in the second quarter of 2024, primarily driven by the planned slowdown of our fibre and wirelessnetwork builds and systems development. By June 30, 2024, our 5G network covered approximately 32.0 million Canadians, representingover 86 per cent of the population. TTech real estate development capital expenditures increased by $11 million in the secondquarter of 2024 due to an increase in capital investment to support construction of multi-year development projects, including TELUSOcean^TM^, TELUS Living residential buildings and other commercial buildings in British Columbia. TELUS Digital capitalexpenditures increased by $6 million in the second quarter of 2024, primarily driven by increased software investment in our ManagedDigital Solutions business and AI Data Solutions (software and application development), as well as continued expansion inAfrica.Consolidated Financial Highlights| C millions, except footnotes and unless noted otherwise | | | | Per cent | | || --- | --- | --- | --- | --- | --- | --- || (unaudited) | | 2023 | | change | | || Operating revenues (arising from contracts with customers) | 4,900 | | 4,934 | | (0.7 | ) || Operating revenues and other income | 4,974 | | 4,946 | | 0.6 | || Total operating expenses | 4,292 | | 4,364 | | (1.6 | ) || Net income | 221 | | 196 | | 12.8 | || Net income attributable to common shares | 228 | | 200 | | 14.0 | || Adjusted Net income(1) | 366 | | 273 | | 34.1 | || Basic EPS () | 0.15 | | 0.14 | | 7.1 | || Adjusted basic EPS(1) () | 0.25 | | 0.19 | | 31.6 | || EBITDA(1) | 1,676 | | 1,588 | | 5.5 | || Adjusted EBITDA(1) | 1,797 | | 1,703 | | 5.6 | || Capital expenditures(2) | 691 | | 807 | | (14.4 | ) || Cash provided by operating activities | 1,388 | | 1,117 | | 24.3 | || Free cash flow(1) | 478 | | 279 | | 71.3 | || Total telecom subscriber connections(3) (thousands) | 19,500 | | 18,246 | | 6.9 | || Healthcare lives covered(4 (millions) | 75.1 | | 68.3 | | 10.0 | |All values are in US Dollars.| (1) | These are non-GAAP and other specified financial measures, which do not have standardized meanings under IFRS-IASB and might not be<br>comparable to those used by other issuers. For further definitions and explanations of these measures, see ‘Non-GAAP and other<br>specified financial measures’ in this news release. || --- | --- || (2) | Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for. Consequently, capital expenditures<br>differ from Cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated financial statements.<br>Refer to Note 31 of the interim consolidated financial statements for further information. || --- | --- || (3) | The sum of active mobile phone subscribers, connected device subscribers, internet subscribers, residential voice subscribers, TV<br>subscribers and security subscribers, measured at the end of the respective periods based on information in billing and other source systems.<br>Effective for the first quarter of 2024, with retrospective application to January 1, 2023, we reduced our mobile phone subscriber base<br>by 283,000 subscribers to remove a subset of our public services customers that are now subject to dynamic pricing auction models. We<br>believe adjusting our base for these low margin customers provides a more meaningful reflection of the underlying performance of our mobile<br>phone business and our focus on profitable growth. As a result of this change, associated operating statistics (ARPU and churn) have also<br>been adjusted. Effective January 1, 2024, on a prospective basis, we adjusted our TV subscriber base to remove 97,000 subscribers as we<br>have ceased marketing our Pik TV^®^ product. || --- | --- |Second Quarter 2024 Operating HighlightsTELUS technology solutions (TTech)| ● | TTech operating revenues (arising from contracts with customers) increased by $23 million or 0.5 per cent in the second quarter of<br>2024, primarily reflecting increases in mobile network revenue, fixed data services revenues, health services and agriculture and consumer<br>goods services, as described below. || --- | --- | 5 | | Decreases in mobile equipment and other service revenues,<br>fixed voice services revenues and fixed equipment and other service revenues were partial offsets. || --- | --- || ● | TTech EBITDA increased by $65 million or 4.4 per cent in the second quarter of 2024, while TTech Adjusted EBITDA increased by $80<br>million or 5.1 per cent, reflecting: i) broad-based cost reduction efforts, including workforce reductions, synergies achieved between<br>LifeWorks and our legacy health business, and an increase in TTech outsourcing to TELUS Digital resulting in competitive benefits given<br>the lower cost structure in TELUS Digital, as well as savings in marketing, discretionary and administrative costs; (ii) mobile network,<br>residential internet and security subscriber growth; (iii) higher gains in other income; and (iv) growth in health services revenue. These<br>factors were partially offset by: (i) lower mobile phone ARPU; (ii) merit-based compensation increases; (iii) higher network operations<br>costs; (iv) declining TV and fixed legacy voice margins; (v) lower mobile equipment margins; (vi) higher bad debt expense; and (vii) higher<br>costs related to the scaling of our digital capabilities, inclusive of increased subscription-based licenses and cloud usage costs. |Mobile products and services| ● | Mobile network revenue increased by $16 million or 0.9 per cent in the second quarter of 2024, largely due to growth in our mobile<br>phone and connected device subscriber base, partly offset by lower mobile phone ARPU. || --- | --- || ● | Mobile equipment and other service revenues decreased by $16 million or 3.1 per cent in the second quarter of 2024, due to a reduction<br>in contracted volumes attributable to our efforts to match only on profitable offers due to aggressive promotional activity, in addition<br>to the growing number of customers taking advantage of bring-your-own-device promotional offerings. These were partly offset by the impact<br>of higher-value smartphones in the sales mix. || --- | --- || ● | TTech mobile products and services direct contribution decreased by $16 million or 1.0 per cent in the second quarter of 2024, largely<br>reflecting the impact of lower mobile phone ARPU, lower mobile equipment margin from lower contracted volume and increased competitor-driven<br>discounting, and higher amortization of deferred commissions attributable to rising retail traffic in the current and prior periods. These<br>were partly offset by mobile phone subscriber growth. || --- | --- || ● | Mobile phone ARPU was $58.49 in the second quarter of 2024, a decrease of $2.07 or 3.4 per cent, attributable to the adoption of base<br>rate plans with lower prices in response to more aggressive marketing and promotional pricing targeting both new and existing customers,<br>and a decline in overage and roaming revenues, partly offset by higher IoT revenue. We continue to see increasing adoption of unlimited<br>data and Canada- U.S. plans which provide higher and more stable ARPU on a monthly basis while also giving customers cost certainty in<br>lower roaming fees to the U.S. and lower data overage fees, respectively. || --- | --- || ● | Mobile phone gross additions were 415,000 in the second quarter of 2024, reflecting increases of 39,000 for the quarter, driven by<br>greater promotional activity, our shift to digital loading, and growth in the Canadian population. || --- | --- || ● | Mobile phone net additions were 101,000 in the second quarter of 2024, reflecting decreases of 9,000 for the quarter, driven by a<br>higher mobile phone churn rate, partially offset by higher mobile phone gross additions. || --- | --- || ● | Our mobile phone churn rate was 1.07 per cent in the second quarter of 2024, compared to 0.94 per cent in the second quarter of 2023,<br>largely as a result of customer switching decisions in response to more aggressive marketing and promotional pricing. These factors have<br>been partly mitigated by our continued focus on customer retention through our industry-leading service and network quality, along with<br>successful promotions and bundled offerings. || --- | --- || ● | Connected device net additions were 161,000 in the second quarter of 2024, an increase of 37,000 for the quarter, attributable to<br>growth in IoT connections from customers in the transportation, smart buildings and healthcare industries. || --- | --- |Fixed products and services| ● | Fixed data services revenues increased by $12 million or 1.0 per cent in the second quarter of 2024, driven by an increase in our<br>internet, security and TV subscribers. Our revenue per internet customer remained consistent with the prior year, while fixed data services<br>growth was partially offset by lower TV revenue per customer, reflecting an increased mix of customers selecting smaller TV combination<br>packages and technological substitution, as well as lower security revenue per customer reflecting increased demand for inherently lower-ARPU<br>home automation services. || --- | --- | 6 | ● | Fixed voice services revenues decreased by $12 million or 6.3 per cent in the second quarter of 2024, reflecting the ongoing decline<br>in legacy voice revenues as a result of technological substitution and price plan changes. Declines were partly mitigated by the success<br>of our bundled product offerings, our retention efforts, and the migration from legacy to IP services offerings. || --- | --- || ● | Fixed equipment and other service revenues decreased by $6 million or 4.6 per cent in the second quarter of 2024, largely due to a<br>reduction in business premises equipment sales, as equipment sales tend to be more one-time in nature. || --- | --- || ● | TTech fixed products and services direct contribution increased by $37 million or 2.8 per cent in the second quarter of 2024, reflecting<br>increased internet and security margins, driven by subscriber growth, and increased health and agriculture revenues. These were partly<br>offset by declines in TV and legacy voice margins attributable to technological substitution. || --- | --- || ● | Internet net additions were 33,000 in the second quarter of 2024, a decrease of 2,000, attributable to a higher churn rate due to<br>macroeconomic and competitive pressures that have continued to impact consumer purchasing decisions, partly offset by our success in driving<br>strong gross additions through robust sales strategies. || --- | --- || ● | TV net additions were 25,000 in the second quarter of 2024, an increase of 8,000, attributable to our diverse offerings catered towards<br>the changing needs of our consumers, partly offset by a higher churn rate due to the same factors as internet net additions. || --- | --- || ● | Security net additions were 20,000 in the second quarter of 2024, an increase of 5,000, attributable to higher demand for our bundled<br>offerings and diverse suite of products and services, partly offset by a higher churn rate due to the same factors as internet net additions || --- | --- || ● | Residential voice net losses were 8,000 in the second quarter of 2024, consistent with the prior year. || --- | --- |Health services| ● | Through TELUS Health, we are leveraging technology to deliver connected solutions and services, improving access to care and revolutionizing<br>the flow of information while facilitating collaboration, efficiency, and productivity across the healthcare ecosystem, progressing our<br>vision of transforming healthcare and empowering people to live healthier lives. || --- | --- || ● | Health services revenues increased by $17 million or 4.0 per cent in the second quarter of 2024, driven by growth from pharmacy management<br>software upgrades, virtual pharmacy sales, TELUS Health MyCare^TM^, employee assistance program and increased demand for health<br>benefits management services reflected by higher digital health transactions. || --- | --- || ● | At the end of the second quarter of 2024, 6.3 million members were enrolled in our virtual care services, an increase of 1.0 million<br>over the past 12 months, attributable to the continued adoption of virtual solutions that keep Canadians and others safely connected to<br>health and wellness care. || --- | --- || ● | At the end of the second quarter of 2024, our healthcare programs covered 75.1 million lives, an increase of 6.8 million over the<br>past 12 months, mainly reflecting robust growth in our employee and family assistance programs from both new and existing clients across<br>all of our regions, in addition to continued demand for virtual solutions. || --- | --- || ● | Digital health transactions totalled 163.3 million in the second quarter of 2024, an increase of 10.4 million, largely driven by increased<br>paid exchange of healthcare data between our health benefits management system and care providers resulting from higher patient demand<br>for elective health services. || --- | --- |Agriculture and consumer goods services| ● | Through TELUS Agriculture & Consumer Goods, we provide innovative digital solutions and actionable data-insights that better connect<br>the global supply chain, driving more efficient production processes and improving the safety, quality and sustainability of food and<br>consumer goods. Importantly, these efforts are also enabling better traceability to the end consumer, further supporting improved food<br>and consumer goods outcomes. || --- | --- || Agriculture and consumer goods services revenues increased by $12 million or 15 per cent, primarily attributed to business acquisitions<br>and improving organic growth across certain lines of business in agriculture services. This was partially tempered by an increase of agriculture<br>customer churn and macroeconomic headwinds slowing down subscription growth and sales funnel opportunities. || --- | 7 TELUS Digital| ● | TELUS Digital operating revenues (arising from contracts with customers) decreased by $57 million or 7.9 per cent in the second quarter<br>of 2024. The decrease was primarily attributable to lower revenues from a leading social media client<br>and other technology clients, and a reduction in revenue in other industry verticals, notably in communications (excluding the<br>TTech segment), eCommerce, and banking, financial services and insurance, also reflective<br>of a persistently challenging macroeconomic environment and competitive conditions in the industry, which were partially offset by growth<br>in services provided to existing clients, including Google, as well as new clients added since the same period in the prior year. These<br>decreases were partially offset by the strengthening of both the U.S. dollar and the European euro against the Canadian dollar, which<br>resulted in a favourable foreign currency impact on our TELUS Digital operating results. Revenues from contracts denominated in U.S. dollars,<br>European euros and other currencies will be affected by changes in foreign exchange rates. || --- | --- || ● | Revenue from our tech and games industry vertical decreased by $22 million or 5.5 per cent in<br>the second quarter of 2024, primarily due to lower revenue from a leading social media client and certain other technology clients, partially<br>offset by growth in revenue from Google and other clients within this industry vertical. || --- | --- || ● | Revenue from our communications and media industry vertical increased by $5 million or 2.4 per<br>cent in the second quarter of 2024, driven primarily by more services provided to the TTech segment, partially offset by lower service<br>revenue from certain other telecommunication clients. || --- | --- || ● | Revenue from our eCommerce and fintech industry vertical was unchanged in the second quarter<br>of 2024. || --- | --- || ● | Revenue from our healthcare industry vertical increased by $14 million or 28 per cent in the<br>second quarter of 2024, primarily due to additional services provided to the healthcare business unit of the TTech segment. || --- | --- || ● | Revenue from our banking, financial services and insurance industry vertical increased by $3<br>million or 6.0 per cent in the second quarter of 2024 due to growth from certain Canadian banks and smaller regional financial services<br>firms in North America. || --- | --- || ● | All other verticals decreased by $3 million or 3.1 per cent in the second quarter of 2024, due<br>to lower revenue across various client accounts notably in the travel and hospitality industry vertical. || --- | --- || ● | TELUS Digital EBITDA increased by $35 million or 27 per cent in the second quarter of 2024 while<br>TELUS Digital Adjusted EBITDA increased by $26 million or 18 per cent in the same period. The increases in Adjusted EBITDA were primarily<br>due to higher other income arising from the revaluation of our provisions for written put options, which were partially offset by higher<br>share-based compensation expense. || --- | --- | 8 TELUS updates 2024 financial targetsTELUS’ financial targets for 2024 are guided by a number of long-termfinancial objectives, policies and guidelines, which are detailed in Section 4.3 of the 2023 annual MD&A.Full year 2024 TTech operating revenues and Adjusted EBITDA are trendingto the lower end of their respective original target growth ranges, reflecting the competitive environment in mobility and fixed. Consolidatedfree cash flow is being updated due to the flow through from TELUS Digital Experience’s revised EBITDA outlook. Consolidated capitalexpenditures of approximately $2.6 billion remains unchanged.| | Updated 2024 targets | Original 2024 targets || --- | --- | --- || TTech Operating revenues^(1)^ | Growth of 2 to 4%<br><br> <br>(Lower end of the range) | Growth of 2 to 4% || TTech Adjusted EBITDA | Growth of 5.5 to 7.5%<br><br> <br>(Lower end of the range) | Growth of 5.5 to 7.5% || Consolidated Free cash flow | Approximately $2.1 billion | Approximately $2.3 billion || Consolidated Capital expenditures^(2)^ | Approximately $2.6 billion<br><br> <br>(Unchanged) | Approximately $2.6 billion || (1) | For 2024, we are guiding on TTech Operating revenues, which excludes other income. TTech Operating revenues for 2023 were $17,106<br>million. || --- | --- || (2) | Excludes approximately $100 million targeted towards real estate development initiatives. || --- | --- |TELUS’Consolidated Operating Revenues and Adjusted EBITDA are now expected to be in the low single digit range as compared to our previous expectationof being approximate to our TTech targets. Consolidated Operating Revenues and Adjusted EBITDA can be approximated when combiningthe lower end of our TTech targets referenced above with the revised 2024 financial targets set by TELUS Digital, as announced August2, 2024.The preceding disclosure respecting TELUS’ 2024 financial targetsis forward-looking information and is fully qualified by the ‘Caution regarding forward-looking statements’ below andbased on management’s expectations and assumptions as set out below and in Section 9.3 TELUS assumptions for 2024 in the2023 annual MD&A and updated in Sections 9 and 10 of our second quarter 2024 interim MD&A. This disclosure is presentedfor the purpose of assisting our investors and others in understanding certain key elements of our expected 2024 financial results aswell as our objectives, strategic priorities and business outlook. Such information may not be appropriate for other purposes.TELUS Digital announces executive leadership appointmentsTELUS Digital today announced executive leadership appointments. EffectiveSeptember 3, 2024, Jeff Puritt, President and CEO of TELUS Digital will retire from his current position, and assume a new role as ExecutiveVice-Chair of the Board of Directors at TELUS Digital. Supported by robust senior leadership talent succession, and in alignment withthe company’s strategy of bringing the best of technology to enable excellence in customer service, we are pleased to welcome JasonMacdonnell as Acting CEO of TELUS Digital and President, TELUS Digital Customer Experience. Jason is a 20-year tenured member of our TELUSsenior leadership team, with core expertise and a proven track record in leading growth business and digitally enabled customer servicetransformation across multiple teams at TELUS. In addition, Tobias Dengel, founder and President of WillowTree, will take on theelevated role of President of TELUS Digital Solutions, to propel the continued and successful evolution of our company to the next frontierof AI enabled digital transformation in CX. Meanwhile, in Jeff’s new capacity, he will be responsible for our corporate developmentactivities, given his expertise in mergers and acquisitions. Jeff’s efforts will complement and amplify the company’s returnto profitable growth. In his role, Jeff will also support the government and investor relations functions within TELUS Digital. This willallow Jason and Tobias to fully focus on the organic progression of our strategy and the material elevation of our operational excellenceand financial performance.Dividend DeclarationThe TELUS Board of Directors declared a quarterly dividendof $0.3891 per share on the issued and outstanding Common Shares of the Company payable on October 1, 2024 to holders of record at theclose of business on September 10, 2024. This quarterly dividend reflects an increase of 7.0 per cent from the $0.3636 per share dividenddeclared one year earlier and consistent with our multi-year dividend growth program. When a dividend payment date falls on a weekendor holiday, the payment shall be made on the next succeeding day that is a business day. 9 Corporate HighlightsTELUS makes significant contributions and investments in the communitieswhere team members live, work and serve and to the Canadian economy on behalf of customers, shareholders and team members. These include:| ● | Paying, collecting and remitting approximately $1.3 billion in the first six months of 2024 to federal, provincial and municipal governments<br>in Canada consisting of corporate income taxes, sales taxes, property taxes, employer portion of payroll taxes and various regulatory<br>fees. Since 2000, we have remitted over $36 billion in these taxes. || --- | --- || ● | Investing $1.4 billion in capital expenditures primarily in communities across Canada in the first half of 2024 and $55 billion since<br>2000. || --- | --- || ● | Disbursing spectrum renewal fees of $56 million to Innovation, Science and Economic Development Canada in the first six months of<br>2024. Since 2000, our total tax and spectrum remittances to federal, provincial and municipal governments in Canada have totalled more<br>than $45 billion. || --- | --- || ● | Spending $4.8 billion in total operating expenses in the first half of 2024, including goods and services purchased of approximately<br>$3.2 billion. Since 2000, we have spent $164 billion and $111 billion, respectively, in these areas. || --- | --- || ● | Generating a total team member payroll of $1.9 billion in the first half of 2024, including wages and other employee benefits, and<br>payroll taxes of $125 million. Since 2000, total team member payroll totals $63 billion. || --- | --- || ● | Returning approximately $1.1 billion in dividends declared through July 2024 to individual shareholders, mutual fund owners, pensioners<br>and institutional investors. Since 2004, we have returned $26 billion to shareholders through our dividend and share purchase programs,<br>including approximately $21 billion in dividends and $5.2 billion in share repurchases, representing more than $17 per share. || --- | --- |Community HighlightsGiving Back to Our Communities| ● | In May 2024, our 19th annual TELUS Days of Giving^®^ inspired 83,000 TELUS team members, retirees, family and friends<br>to volunteer across 33 countries in support of our local communities, surpassing last year’s record and making this year’s<br>event our most giving year yet. || --- | --- || ● | Currently, we have 19 TELUS Community Boards, 13 operating in Canada and six international boards. Our Community Boards entrust local<br>leaders to make recommendations on the allocation of grants in their communities. These grants support registered charities that offer<br>health, education or technology programs to help youth thrive. Since 2005, our 19 TELUS Community Boards and TELUS Friendly Future Foundation^®^<br>(the Foundation) have supported 33.5 million youth in-need in Canada, and around the world, by granting close to $130 million in cash<br>donations to 10,300 initiatives. || --- | --- || ● | Working in close collaboration with our 13 Canadian TELUS Community<br> Boards, the Foundation provides grants to charities that promote education, health and well-being<br> for youth across the country. Additionally, through the TELUS Student Bursary program, the<br> Foundation provides bursaries for post-secondary students who are facing financial barriers<br> and are committed to making a difference in their communities. During the first six months<br> of 2024, the Foundation supported over 400,000 youth by granting $5 million to more than<br> 300 Canadian registered charities. Since its inception in 2018, the Foundation has provided<br> $52 million in cash donations to our communities, helping 15.6 million youth reach their<br> full potential. For more information about the TELUS Student Bursary program, please visit<br> friendlyfuture.com/bursary. || --- | --- || ○ | In June 2024, the Foundation hosted its inaugural fundraising gala, with more than 700 guests attending the event, raising over $2.5<br>million in cash donations and in-kind contributions to help youth from underserved communities reach their full potential. With the support<br>of our partners, 100 per cent of funds raised will go directly to support the Foundation’s TELUS Student Bursary. || --- | --- || ● | The TELUS Indigenous Communities Fund offers grants for Indigenous-led social, health and community programs. In the first half of<br>2024, the Fund allocated its first round of grants to Indigenous-led organizations across Canada totalling $200,000 in cash donations.<br>Since its inception in 2021, the Fund has distributed $785,000 in cash donations to 35 community programs supporting food security, education,<br>cultural and linguistic revitalization, wildfire relief efforts, and the health, mental health and well-being of Indigenous Peoples across<br>Canada. || --- | --- | 10 Empowering Canadians with Connectivity| ● | Throughout the first half of 2024, we continued to leverage our Connecting for Good^®^ programs to support marginalized<br>individuals by enhancing their access to both technology and healthcare, as well as our TELUS Wise^®^ program to improve<br>digital literacy and online safety knowledge. Since the launch of these programs, they have provided support for 1.25 million individuals. || --- | --- || ○ | During the first six months of 2024, we welcomed more than 4,500 new households to our Internet for Good^®^ program.<br>Since we launched the program in 2016, we have connected 60,000 households, resulting in 188,500 low-income family members and seniors,<br>persons in need who are living with disabilities, government-assisted refugees and youth leaving foster care with low-cost, high-speed<br>internet service. || --- | --- || ○ | Our Mobility for Good^®^ program offers free or low-cost smartphones and mobility plans to youth aging out of foster<br>care, low-income seniors and low-income families across Canada. During the first half of 2024, we added 4,000 youth, low-income seniors<br>and families, as well as Indigenous women at risk of or surviving violence, government-assisted refugees and other marginalized individuals<br>to the program. Since we launched Mobility for Good in 2017, the program has provided support for over 56,000 people. || --- | --- || ■ | In May 2024, we expanded Mobility for Good to low-income families that are receiving the maximum Canada Child Benefit. || --- | --- || ■ | In May 2024, we expanded the Mobility for Good for Indigenous Women at Risk program to the province of Quebec in partnership with<br>Quebec First Nations Women’s Space. Since launching Mobility for Good for Indigenous Women at Risk in 2021, we have supported 3,500<br>individuals. || --- | --- || ○ | Our Health for Good^®^ mobile health clinics facilitated 32,000 patient visits during the first half of 2024. Since the<br>program’s inception, we have enabled 232,000 cumulative patient visits in 25 communities across Canada, bringing primary and mental<br>healthcare to individuals experiencing homelessness. || --- | --- || ○ | During the first six months of 2024, our Tech for Good^®^ program provided access to personalized assessments, recommendations<br>and training on mobile devices, computers, laptops and related assistive technology and/or access to discounted mobile plans for 1,600<br>Canadians living with disabilities, helping them improve their independence and quality of life. Since the program’s inception in<br>2017, we have supported more than 10,400 individuals in Canada who are living with disabilities through the program and/or the TELUS Wireless<br>Accessibility Discount. || --- | --- || ○ | During the first six months of 2024, more than 85,000 individuals in Canada and around the world participated in virtual TELUS Wise<br>workshops and events to improve digital literacy and online safety, bringing total cumulative participation to 765,000 since the program<br>launched in 2013. || --- | --- |Investing in Social Impact| ● | During the second quarter of 2024, TELUS Pollinator Fund for Good^®^ portfolio investment Dryad Networks, a Germany-based<br>company which produces IoT sensors to enable ultra-early wildfire detection within minutes, completed a TELUS reseller agreement with<br>Canadian exclusivity through to 2025. Since its inception in 2020, the Fund has invested in over 30 socially innovative companies, with<br>39 per cent led by women and 50 per cent led by Indigenous or racialized founders. || --- | --- |Global Social Capitalism awards and recognition| ● | In April 2024, we were recognized by Mediacorp Canada Inc. as one of Canada’s Greenest Employers (2024). || --- | --- || ● | In June 2024, we were recognized by TIME Magazine and Statista in their inaugural list of the World's Most Sustainable Companies,<br>ranking 21st out of 500 companies globally. TELUS was ranked as the most sustainable telecommunications company in Canada and the second<br>most sustainable Canadian company overall, recognizing our global leadership in corporate citizenship and philanthropy, innovation management,<br>and environmental and social impact reporting for more than two decades. || --- | --- || ● | In June 2024, we were named to the Corporate Knights Best 50 Corporate Citizens in Canada for the 18th time. || --- | --- | 11 Access to Quarterly results informationInterested investors, the media and others may review this quarterlyearnings news release, management’s discussion and analysis, quarterly results slides, audio and transcript of the investor webcastcall, supplementary financial information at telus.com/investors.TELUS’ second quarter 2024 conference call is scheduled forFriday, August 2, 2024 at 12:30 pm ET (9:30 am PT) and will feature a presentation followed by a question and answer period withinvestment analysts. Interested parties can access the webcast at telus.com/investors. An audio recording will be available approximately60 minutes after the call until September 2, 2024 at 1-855-201-2300. Please quote conference access code 96045# and playback access code0114521#. An archive of the webcast will also be available at telus.com/investors and a transcript will be posted on the websitewithin a few business days.Caution regarding forward-looking statementsThis news release contains forward-looking statements about expectedevents and the financial and operating performance of TELUS Corporation. The terms TELUS, the Company, we, usand our refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries.This news release contains forward-looking statements about expectedevents and the financial and operating performance of TELUS Corporation. The terms TELUS, the Company, we, usand our refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries.Forward-looking statements include any statements that do not referto historical facts. They include, but are not limited to, statements relating to our objectives and our strategies to achieve those objectives,our expectations regarding trends in the telecommunications industry (including demand for data and ongoing subscriber base growth), andour financing plans (including our multi-year dividend growth program). Forward-looking statements are typically identified by the wordsassumption, goal, guidance, objective, outlook, strategy, target and other similar expressions, or future or conditional verbs such asaim, anticipate, believe, could, expect, intend, may, plan, predict, seek,should, strive and will. These statements are made pursuant to the “safe harbour” provisions of applicablesecurities laws in Canada and the United States Private Securities Litigation Reform Act of 1995.By their nature, forward-looking statements are subject to inherentrisks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. Theseassumptions may ultimately prove to have been inaccurate and, as a result, our actual results or other events may differ materially fromexpectations expressed in or implied by the forward-looking statements.The assumptions for our 2024 outlook, as described in Section 9in our 2023 annual MD&A, remain the same, except for the following:| ● | Our revised estimates for 2024 economic growth in Canada, B.C., Alberta, Ontario and Quebec are 1.1%, 0.9%, 2.0%, 0.8% and 0.7%, respectively<br>(compared to 0.6%, 0.4%, 1.1%, 0.4% and 0.4%, respectively, as reported in our 2023 annual MD&A). || --- | --- || ● | Our revised estimates for 2024 annual inflation rates in B.C., Alberta, and Quebec are 2.5%, 2.9%, and 2.7%, respectively (compared<br>to 2.4%, 2.4%, and 2.5%, respectively, as reported in our 2023 annual MD&A). || --- | --- || ● | Our revised estimates for 2024 annual unemployment rates in Canada, B.C., Alberta, Ontario and Quebec are 6.3%, 5.8%, 6.6%, 6.9% and<br>5.3%, respectively (compared to 6.4%, 6.1%, 6.3%, 6.7% and 5.5%, respectively, as reported in our 2023 annual MD&A). || --- | --- || ● | Our revised estimates for 2024 annual rates of housing starts on an unadjusted basis in Canada, B.C., Alberta, Ontario and Quebec<br>are 241,000 units, 49,000 units, 42,000 units, 83,000 units and 44,000 units, respectively (compared to 234,000 units, 42,000 units, 36,000<br>units, 79,000 units and 46,000 units, respectively, as reported in our 2023 annual MD&A). || --- | --- || ● | Our revised estimates for 2024 annual rates of housing starts on an unadjusted basis in Canada, B.C., Alberta, Ontario and Quebec<br>are 241,000 units, 49,000 units, 42,000 units, 83,000 units and 44,000 units, respectively (compared to 234,000 units, 42,000 units, 36,000<br>units, 79,000 units and 46,000 units, respectively, as reported in our 2023 annual MD&A). || --- | --- | 12 | ● | The extent to which these economic estimates affect us and the timing of their impact will depend upon the actual experience of<br> specific sectors of the Canadian economy. The Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment device<br> financing assumption has been revised to a net cash outflow of approximately $100 million to $200 million from a net cash outflow of<br> approximately $150 million to $250 million. || --- | --- || ● | Our restructuring and other costs assumption has been revised to approximately $400 million from approximately $300 million. This<br>was largely driven by new cost efficiency programs implemented to drive EBITDA expansion, margin accretion and accelerated cash flow growth.<br>Approximately $200 million of cash restructuring and other disbursements from our 2023 efficiency program flowed into our 2024 free cash<br>flow guidance, and we expect total cash restructure and other disbursements of approximately $500 million in 2024 from approximately $400<br>million. || --- | --- || ● | Our income taxes computed at an applicable statutory rate assumption has been revised downward to 24.0 to 24.6% from 24.5 to 25.1%,<br>and our cash income tax payments assumption has been revised downward to a range of approximately $310 million to $390 million from a<br>range of approximately $370 million to $450 million. The decrease in applicable statutory rate assumption is primarily due to lower income<br>earned in jurisdictions with higher statutory income tax rates. The decrease in our cash income tax payments range is due to excess instalment<br>amounts from the prior period applied to the current period. || --- | --- || ● | While Innovation, Science and Economic Development Canada (ISED) had initially announced its intention to hold its millimetre wave<br>spectrum auction in 2024, it is possible that the auction may be deferred until after 2024. We do not expect to be materially impacted<br>should the timing of the auction be after 2024. || --- | --- || ● | We anticipate a 2024 Canadian dollar to U.S. dollar average exchange rate of C$1.35: US$1.00, compared to our original assumption<br>of C$1.32: US$1.00. || --- | --- |Risks and uncertainties that could cause actualperformance or other events to differ materially from the forward-looking statements made herein and in other TELUS filings include, butare not limited to, the following:| ● | Regulatory matters. We operate in a number of highly regulated industries and are therefore subject to a wide variety<br>of laws and regulations domestically and internationally. Policies and practices of elected officials and regulatory decisions, reviews<br>and government activity may have strategic, operational and/or financial implications (including on revenue and free cash flow). || --- | --- |Risks and uncertainties include:| ○ | potential changes to our regulatory regime or the outcomes of proceedings, cases or inquiries relating to its application, including<br>but not limited to those set out in Section 9.1 Communications industry regulatory developments and proceedings in our second quarter<br>2024 MD&A. || --- | --- || ○ | our ability to comply with complex and changing regulation of the healthcare, virtual care and medical devices industries in the jurisdictions<br>in which we operate, including as an operator of health clinics; and || --- | --- || ○ | our ability to comply with, or facilitate our clients’ compliance with, numerous, complex and sometimes conflicting legal regimes,<br>both domestically and internationally. || --- | --- || ● | Competitive environment. Competitor expansion, activity and intensity (pricing, including discounting, bundling),<br>as well as non-traditional competition, disruptive technology and disintermediation, may alter the nature of the markets in which we compete<br>and impact our market share and financial results (including revenue and free cash flow). TELUS Digital Experience (formerly TELUS<br>International), TELUS Health and TELUS Agriculture & Consumer Goods face intense competition in different markets. || --- | --- || ● | Technology. Consumer adoption of alternative technologies and changing customer expectations have the potential to<br>impact our revenue streams and customer churn rates.’ || --- | --- |Risks and uncertainties include:| ○ | a declining overall market for TV services; || --- | --- | 13 | ○ | disruptive technologies, including software-defined networks in the business market, that may displace or cause us to reprice our<br>existing data services, and self-installed technology solutions; || --- | --- || ○ | any failure to innovate, maintain technological advantages or respond effectively and in a timely manner to changes in technology; || --- | --- || ○ | the roll-out, anticipated benefits and efficiencies, and ongoing evolution of wireless broadband technologies and systems; || --- | --- || ○ | our reliance on wireless network access agreements, which have facilitated our deployment of mobile technologies; || --- | --- || ○ | our choice of suppliers and those suppliers’ ability to maintain and service their product lines, which could affect the success<br>of upgrades to, and evolution of, technology that we offer; || --- | --- || ○ | supplier limitations and concentration and market power for products such as network equipment, TELUS TV and mobile handsets; || --- | --- || ○ | our expected long-term need to acquire additional spectrum capacity through future spectrum auctions and from third parties to address<br>increasing demand for data, and our ability to utilize spectrum we acquire; || --- | --- || ○ | deployment and operation of new fixed broadband network technologies at a reasonable cost and the availability and success of new<br>products and services to be rolled out using such network technologies; and || --- | --- || ○ | our deployment of self-learning tools and automation, which may change the way we interact with customers. || --- | --- || ● | Security and data protection. Our ability to detect and identify potential threats and vulnerabilities depends on<br>the effectiveness of our security controls in protecting our infrastructure and operating environment, and our timeliness in responding<br>to attacks and recovering business operations. A successful attack may impede the operations of our network or lead to the unauthorized<br>interception, destruction, use or dissemination of customer, team member or business information. || --- | --- || ● | Generative AI (GenAI). GenAI exposes us to numerous risks including risks related to the responsible use of AI, data<br>privacy and cybersecurity, and the possibility that our use of AI may produce inaccurate or inappropriate content or create negative perceptions<br>among companies and regulators that could affect demand for our services. || --- | --- || ● | Climate and the environment. Natural disasters, pandemics, disruptive events and climate change may impact our operations,<br>customer satisfaction and team member experience. || --- | --- |Our goals to achieve carbon neutrality and reduce our greenhousegas (GHG) emissions in our operations are subject to our ability to identify, procure and implement solutions to reduce energy consumptionand adopt cleaner sources of energy, our ability to identify and make suitable investments in renewable energy, including in the formof virtual power purchase agreements, and our ability to continue to realize significant absolute reductions in energy use and the resultingGHG emissions in our operations.| ● | Operational performance and business combination. Investments and acquisitions present opportunities to expand our<br>operational scope, but may expose us to new risks. We may be unsuccessful in gaining market traction/share and realizing benefits, and<br>integration efforts may divert resources from other priorities. Risks include: || --- | --- || ○ | our reliance on third-party cloud-based computing services to deliver our IT services; and || --- | --- || ○ | economic, political and other risks associated with doing business globally (including war and other geopolitical developments). || --- | --- || ● | Our systems and processes. Systems and technology innovation, maintenance and management may impact our IT systems<br>and network reliability, as well as our operating costs. || --- | --- |Risks and uncertainties include: 14 | ○ | our ability to maintain customer service and operate our network in the event of human error or human-caused threats, such as cyberattacks<br>and equipment failures that could cause various degrees of network outages; || --- | --- || ○ | technical disruptions and infrastructure breakdowns; || --- | --- || ○ | delays and rising costs, including as a result of government restrictions or trade actions; and || --- | --- || ○ | the completeness and effectiveness of business continuity and disaster recovery plans and responses. || --- | --- || ● | Our team. The rapidly evolving and highly competitive nature of our markets and operating environment, along with<br>the globalization and evolving demographic profile of our workforce, and the effectiveness of our internal training, development, succession<br>and health and well-being programs, may impact our ability to attract, develop and retain team members with the skills required to meet<br>the changing needs of our customers and our business. There may be greater physical and mental health challenges faced by team members<br>(and their families) as a result of the pandemic and its aftermath, and the effect of other significant change initiatives at the organization<br>may result in the loss of key team members through short-term and long-term disability. || --- | --- || ● | Suppliers. We may be impacted by supply chain disruptions and lack of resiliency in relation to global or local events.<br>Dependence on a single supplier for products, components, service delivery or support may impact our ability to efficiently meet constantly<br>changing and rising customer expectations while maintaining quality of service. || --- | --- || ● | Real estate matters. Real estate investments are exposed to possible financing risks and uncertainty related to future<br>demand, occupancy and rental rates, especially following the pandemic. Future real estate developments may not be completed on budget<br>or on time and may not obtain lease commitments as planned. || --- | --- || ● | Financing, debt and dividends. Our ability to access funding at optimal pricing may be impacted by general market<br>conditions and changing assessments in the fixed-income and capital markets regarding our ability to generate sufficient future cash flow<br>to service our debt. Our current intention to pay dividends to shareholders could constrain our ability to invest in our operations to<br>support future growth. || --- | --- |Risks and uncertainties include:| ○ | our ability to use equity as consideration in business acquisitions is impacted by stock market valuations of TELUS Common Shares<br>and TELUS International (Cda) Inc. subordinate voting shares; || --- | --- || ○ | our capital expenditure levels and potential outlays for spectrum licences in auctions or purchases from third parties affect and<br>are affected by: our broadband initiatives; our ongoing deployment of newer mobile technologies; investments in network technology required<br>to comply with laws and regulations relating to the security of cyber systems, including bans on the products and services of certain<br>vendors; investments in network resiliency and reliability; the allocation of resources to acquisitions and future spectrum auctions held<br>by Innovation, Science and Economic Development Canada (ISED). Our capital expenditure levels could be impacted if we do not achieve our<br>targeted operational and financial results or if there are changes to our regulatory environment; and || --- | --- || ○ | lower than planned free cash flow could constrain our ability to invest in operations, reduce leverage or return capital to shareholders.<br>Quarterly dividend decisions are made by our Board of Directors based on our financial position and outlook. There can be no assurance<br>that our dividend growth program will be maintained through 2025 or renewed. || --- | --- |Factors that may affect TELUS Digital’sfinancial performance are described in TELUS International (Cda) Inc. public filings available on SEDAR+ and EDGAR. TELUS Digital maychoose to publicize targets or provide other guidance regarding its business and it may not achieve such targets. Failure to meet thesetargets could affect TELUS’ ability to achieve targets for the organization as a whole and could result in a decline in the tradingprice of the TELUS International (Cda) Inc. subordinate voting shares or the TELUS Common Shares or both.| ● | Tax matters. Complexity of domestic and foreign tax laws, regulations and reporting requirements applying to TELUS<br>and our international operating subsidiaries may impact financial results. International acquisitions and expansion of operations heighten<br>our exposure to multiple forms of taxation. || --- | --- || ● | The economy. Changing global economic conditions, including a potential recession and alternating expectations about<br>inflation, as well as our effectiveness in monitoring and revising growth assumptions || --- | --- | 15 | | and contingency plans, may impact the achievement of our corporate objectives, our financial results (including free cash flow), and our defined benefit pension plans. || --- | --- || ● | Litigation and legal matters. Complexity of, and compliance with, laws, regulations, commitments and expectations<br>may have a financial and reputational impact. Risks include: || ○ | our ability to defend against existing and potential claims or our ability to negotiate and exercise indemnity rights or other protections<br>in respect of such claims; and || --- | --- || ○ | the complexity of legal compliance in domestic and foreign jurisdictions, including compliance with competition, anti-bribery and<br>foreign corrupt practices laws. || --- | --- |The assumptions underlying our forward-looking statements are describedin additional detail in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings and Section10 Risks and risk management in our 2023 annual MD&A. Those descriptions are incorporated by reference in this cautionary statement.Updates to the assumptions on which our 2024 outlook is based are presented in Section 9 Update to general trends, outlook and assumptions,and regulatory developments and proceedings of our second quarter 2024 MD&A.Many of these risks and uncertainties are beyond our control or outsideof our current expectations or knowledge. Additional risks and uncertainties that are not currently known to us or that we currently deemto be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.Except as otherwise indicated in this document, the forward-looking statements made herein do not reflect the potential impact of anynon-recurring or special items or any mergers, acquisitions, dispositions or other business combinations or transactions that may be announcedor that may occur after the date of this document.Readers are cautioned not to place undue reliance on forward-lookingstatements. Forward-looking statements in this document describe our expectations, and are based on our assumptions, as at the date ofthis document and are subject to change after this date. Except as required by law, we disclaim any intention or obligation to updateor revise any forward-looking statements.This cautionary statement qualifies all of the forward-looking statementsin this document.Non-GAAP and other specified financial measuresWe have issued guidance on and report certain non-GAAP measures thatare used to evaluate the performance of TELUS, as well as to determine compliance with debt covenants and to manage our capital structure.As non-GAAP measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other issuers.For certain financial metrics, there are definitional differences between TELUS and TELUS International reporting. These differences largelyarise from TELUS International adopting definitions consistent with practice in its industry. Securities regulations require such measuresto be clearly defined, qualified and reconciled with their nearest GAAP measure. Certain of the metrics do not have generally acceptedindustry definitions.Adjusted Net income and adjusted basic earnings per share (EPS):These are non-GAAP measures that do not have any standardized meaning prescribed by IFRS-IASB and are therefore unlikely to be comparableto similar measures presented by other issuers. Adjusted Net income excludes the effects of restructuring and other costs, income tax-relatedadjustments, other equity (income) losses related to real estate joint ventures, long-term debt prepayment premium, unrealized changesin virtual power purchase agreements forward element, and other adjustments (identified in the following tables). Adjusted basic EPS iscalculated as adjusted Net income divided by the basic weighted-average number of Common Shares outstanding. These measures are used toevaluate performance at a consolidated level and exclude items that, in management’s view, may obscure underlying trends in businessperformance or items of an unusual nature that do not reflect our ongoing operations. They should not be considered alternatives to Netincome and basic EPS in measuring TELUS’ performance. 16 Reconciliation of adjusted Net income| | Three months ended June 30 | | | | | || --- | --- | --- | --- | --- | --- | --- || C$ and in millions | 2024 | | | 2023 | | || Net income attributable to Common Shares | | 228 | | | 200 | || Add (deduct) amounts of net of amount attributable to non-controlling interests: | | | | | | || Restructuring and other costs | | 117 | | | 107 | || Tax effects of restructuring and other costs | | (28 | ) | | (26 | ) || Real estate rationalization-related restructuring impairments | | 31 | | | — | || Tax effect of real estate rationalization-related restructuring impairments | | (8 | ) | | — | || Income tax-related adjustments | | (2 | ) | | (13 | ) || Unrealized changes in virtual power purchase agreements forward element | | 37 | | | 7 | || Tax effect of unrealized changes in virtual power purchase agreements forward element | | (9 | ) | | (2 | ) || Adjusted Net income | | 366 | | | 273 | |Reconciliation of adjusted basic EPS| | Three months ended June 30 | | | | | || --- | --- | --- | --- | --- | --- | --- || C$ | 2024 | | | 2023 | | || Basic EPS | | 0.15 | | | 0.14 | || Add (deduct) amounts of net of amount attributable to non-controlling interests: | | | | | | || Restructuring and other costs, per share | | 0.08 | | | 0.08 | || Tax effect of restructuring and other costs, per share | | (0.02 | ) | | (0.02 | ) || Real estate rationalization-related restructuring impairments, per share | | 0.03 | | | — | || Tax effect of real estate rationalization-related restructuring impairments, per share | | (0.01 | ) | | — | || Income tax-related adjustments, per share | | — | | | (0.01 | ) || Unrealized changes in virtual power purchase agreements forward element, per share | | 0.03 | | | — | || Tax effect of unrealized changes in virtual power purchase agreements forward element | | (0.01 | ) | | — | || Adjusted basic EPS | | 0.25 | | | 0.19 | |EBITDA (earnings before interest, income taxes, depreciationand amortization): We have issued guidance on and report EBITDA because it is a key measure used to evaluate performance at a consolidatedlevel. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company’s operatingperformance and ability to incur and service debt, and as a valuation metric. EBITDA should not be considered as an alternative to Netincome in measuring TELUS’ performance, nor should it be used as a measure of cash flow. EBITDA as calculated by TELUS is equivalentto Operating revenues and other income less the total of Goods and services purchased expense and Employee benefits expense.We also calculate Adjusted EBITDA to exclude items of an unusualnature that do not reflect our ongoing operations and should not, in our opinion, be considered in a long-term valuation metric or shouldnot be included in an assessment of our ability to service or incur debt. 17 EBITDA andAdjusted EBITDA reconciliations| | TTech | | | | TELUS Digital | | | | Eliminations | | | | | Total | | | || --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- || Three-month periods<br> ended June 30 (C$ millions) | 2024 | | 2023 | | 2024 | | 2023 | | 2024 | | | 2023 | | 2024 | | 2023 | || Net<br> income | | | | | | | | | | | | | | | 221 | | 196 || Financing<br> costs | | | | | | | | | | | | | | | 382 | | 323 || Income<br> taxes | | | | | | | | | | | | | | | 79 | | 63 || EBIT | | 638 | | 560 | | 56 | | 22 | | (12 | ) | | — | | 682 | | 582 || Depreciation | | 559 | | 553 | | 49 | | 45 | | — | | | — | | 608 | | 598 || Amortization<br> of intangible assets | | 325 | | 344 | | 61 | | 64 | | — | | | — | | 386 | | 408 || EBITDA | | 1,522 | | 1,457 | | 166 | | 131 | | (12 | ) | | — | | 1,676 | | 1,588 || Add restructuring<br> and other costs included in EBITDA | | 109 | | 94 | | 12 | | 21 | | — | | | — | | 121 | | 115 || Adjusted EBITDA | | 1,631 | | 1,551 | | 178 | | 152 | | (12 | ) | | — | | 1,797 | | 1,703 |Adjusted EBITDA less capital expendituresis calculated for our reportable segments, as it represents a performance measure that may be more comparable to other issuers.AdjustedEBITDA less capital expenditures reconciliations| | TTech | | | | | | TELUS Digital | | | | | | Eliminations | | | | | Total | | | | | || --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- || Three-months ended<br> June 30 (C$ millions) | 2024 | | | 2023 | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | 2024 | | | 2023 | | || Adjusted EBITDA | | 1,631 | | | 1,551 | | | 178 | | | 152 | | | (12 | ) | | — | | 1,797 | | | 1,703 | || Capital<br> expenditures | | (663 | ) | | (773 | ) | | (40 | ) | | (34 | ) | | 12 | | | — | | (691 | ) | | (807 | ) || Adjusted<br> EBITDA less capital expenditures | | 968 | | | 778 | | | 138 | | | 118 | | | — | | | — | | 1,106 | | | 896 | |Free cash flow: We report this measure as a supplementary indicatorof our operating performance, and there is no generally accepted industry definition of free cash flow. It should not be considered asan alternative to the measures in the condensed interim consolidated statements of cash flows. Free cash flow excludes certain workingcapital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as foundin the condensed interim consolidated statements of cash flows. It provides an indication of how much cash generated by operations isavailable after capital expenditures that may be used to, among other things, pay dividends, repay debt, purchase shares or make otherinvestments. We exclude impacts of accounting standards that do not impact cash, such as IFRS 15 and IFRS 16. Free cash flow may be supplementedfrom time to time by proceeds from divested assets or financing activities. 18 Freecash flow calculation| | Three months ended <br>June 30 | | | | | || --- | --- | --- | --- | --- | --- | --- || C$ and in millions | 2024 | | | 2023 | | || EBITDA | | 1,676 | | | 1,588 | || Restructuring and other costs, net of disbursements | | (5 | ) | | 15 | || Effects of contract asset, acquisition and fulfilment (IFRS 15 impact) and TELUS Easy Payment mobile device financing | | 17 | | | 17 | || Effects of lease principal (IFRS 16 impact) | | (154 | ) | | (129 | ) || Items from the condensed interim consolidated statements of cash flows: | | | | | | || Share-based compensation, net | | 39 | | | 30 | || Net employee defined benefit plans expense | | 17 | | | 16 | || Employer contributions to employee defined benefit plans | | (6 | ) | | (7 | ) || Loss from equity accounted investments and other | | 5 | | | — | || Interest paid | | (315 | ) | | (295 | ) || Interest received | | 10 | | | 3 | || Capital expenditures^1^ | | (691 | ) | | (807 | ) || Free cash flow before income taxes | | 593 | | | 431 | || Income taxes paid, net of refunds | | (115 | ) | | (152 | ) || Free cash flow | | 478 | | | 279 | |Free cash flow reconciliation with Cash provided by operating activities| | Three months ended <br>June 30 | | | | || --- | --- | --- | --- | --- | --- || C$ and in millions | 2024 | | 2023 | | || Free cash flow | | 478 | | 279 | || Add (deduct): | | | | | || Capital expenditures^1^ | | 691 | | 807 | || Effects of lease principal | | 154 | | 129 | || Net change in non-cash operating working capital not included in preceding line items and other individually immaterial items included in Net income neither provided nor using cash | | 65 | | (98 | ) || Cash provided by operating activities | | 1,388 | | 1,117 | || (1) | Refer to Note 31 of the interim consolidated financial statements for further information. || --- | --- |Mobile phone average revenue per subscriber per month (ARPU)is calculated as network revenue derived from monthly service plan, roaming and usage charges; divided by the average number of mobilephone subscribers on the network during the period, and is expressed as a rate per month. 19 AppendixOperating revenues and other income –TTech segment| C$ millions, except footnotes and unless noted otherwise | Three months ended June 30 | | | | Per cent | | || --- | --- | --- | --- | --- | --- | --- | --- || (unaudited) | 2024 | | 2023 | | change | | || Mobile network revenue | | 1,734 | | 1,718 | | 0.9 | || Mobile equipment and other service revenues | | 503 | | 519 | | (3.1 | ) || Fixed data services^(1)^ | | 1,158 | | 1,146 | | 1.0 | || Fixed voice services | | 178 | | 190 | | (6.3 | ) || Fixed equipment and other service revenues | | 125 | | 131 | | (4.6 | ) || Health services | | 445 | | 428 | | 4.0 | || Agriculture and consumer goods services | | 91 | | 79 | | 15.2 | || Operating revenues (arising from contracts with customers) | | 4,234 | | 4,211 | | 0.5 | || Other income | | 31 | | 12 | | n/m | || External Operating revenues and other income | | 4,265 | | 4,223 | | 1.0 | || Intersegment revenues | | 3 | | 4 | | (25.0 | ) || TTech Operating revenues and other income | | 4,268 | | 4,227 | | 1.0 | || (1) | Excludes health services and agriculture and consumer goods services. || --- | --- |Operating revenues and other income – TELUS digitalexperience segment| C$ millions, except footnotes and unless noted<br> otherwise | Three<br> months ended June 30 | | | | Per cent | | || --- | --- | --- | --- | --- | --- | --- | --- || (unaudited) | 2024 | | 2023 | | change | | || Operating revenues (arising from contracts with customers) | | 666 | | 723 | | (7.9 | ) || Other income | | 43 | | — | | n/m | || External Operating revenues and other income | | 709 | | 723 | | (1.9 | ) || Intersegment revenues | | 227 | | 173 | | 31.2 | || TELUS Digital Operating revenues and other income | | 936 | | 896 | | 4.5 | |Notations used in the tables above: n/m –not meaningful. 20 About TELUSTELUS (TSX: T, NYSE: TU) is a dynamic, world-leading communicationstechnology company with more than $20 billion in annual revenue and over 19 million customer connections spanning wireless, data, IP,voice, television, entertainment, video, and security. Our social purpose is to leverage our global-leading technology and compassionto drive social change and enable remarkable human outcomes. Our longstanding commitment to putting our customers first fuels every aspectof our business, making us a distinct leader in customer service excellence and loyalty. The numerous, sustained accolades TELUS has earnedover the years from independent, industry-leading network insight firms showcase the strength and speed of TELUS’ global-leadingnetworks, reinforcing our commitment to provide Canadians with access to superior technology that connects us to the people, resourcesand information that make our lives better.Operating in 32 countries around the world, TELUS Digital Experience(TSX and NYSE: TIXT) is a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions,including AI and content moderation, for global and disruptive brands across strategic industry verticals, including tech and games, communicationsand media, eCommerce and fintech, banking, financial services and insurance, healthcare, and others.TELUS Health is a global healthcare leader, which provides employeeand family primary and preventive healthcare and wellbeing solutions. Our TELUS team, along with our 100,000 health professionals, areleveraging the combination of TELUS’ strong digital and data analytics capabilities with our unsurpassed client service to dramaticallyimprove remedial, preventive and mental health outcomes covering over 75 million lives, and growing, around the world. As the largestprovider of digital solutions and digital insights of its kind, TELUS Agriculture & Consumer Goods enables efficient and sustainableproduction from seed to store, helping improve the safety and quality of food and other goods in a way that is traceable to end consumers.Driven by our determination and vision to connect all citizens forgood, our deeply meaningful and enduring philosophy to give where we live has inspired TELUS and our team to contribute $1.7 billion,including 2.2 million days of service since 2000. This unprecedented generosity and unparalleled volunteerism have made TELUS the mostgiving company in the world. Together, let’s make the future friendly.For more information about TELUS, please visit telus.com, followus at @TELUSNews on X and @Darren_Entwistle on Instagram.Investor RelationsRobert Mitchell(647) [email protected] RelationsSteve Beisswanger(514) [email protected] 21