TELUS announces C$1.3 billion equity offering - Seite 2

These transformational investments are expected to significantly bolster TELUS’ customer experience leadership and competitive position, enabling up to 225,000 additional rural and urban premises with its fibre technology, and enhancing the speed and coverage of its leading wireless network through the accelerated build-out of 5G. These generational investments are expected to drive enhanced customer growth and the realization of accelerated operating efficiencies, including advancing its copper decommissioning plans.

These investments will also result in positive cash flow benefits, as TELUS completes the accelerated build, including a faster than expected reduction in capital expenditures in outer years. With the expected completion of the stepped-up broadband build in 2022, we anticipate normal course annual capital expenditures, excluding spectrum purchases, to decline by at least C$250 million, to approximately C$2.5 billion or less, beginning in 2023.

TELUS expects this accelerated and opportunistic broadband program to significantly support elevated revenue growth and enhanced efficiencies resulting in incremental flow-through to EBITDA in future years. TELUS is reviewing its annual consolidated guidance to take into account the use of proceeds from this offering and will update it, as required, with the release of its first quarter 2021 results, on May 7, 2021.

In respect of the Offering, a prospectus supplement (the “Prospectus Supplement”) to the Company’s Canadian base shelf prospectus (the “Base Prospectus”) dated May 13, 2020 will be filed in Canada with applicable securities regulatory authorities, as well as in the United States with the Securities and Exchange Commission (the “SEC”) under the Company’s U.S. registration statement on Form F-10 which became effective on May 13, 2020.

Completion of the Offering is subject to customary conditions and the receipt of all necessary stock exchange approvals, including the approvals of the TSX and the NYSE. Closing is expected to occur on or about March 31, 2021.

This media release does not constitute an offer to sell or the solicitation of an offer to buy the Common Shares, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.