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Industry-leading fourth quarter total Mobile and Fixed customer growth of 272,000, the company's best fourth quarter on record and an increase of 19,000 over last year

Consolidated Revenue, Net Income, and Adjusted EBITDA grew 20 per cent, 145 per cent, and 7.6 per cent, respectively; excluding the recognized gain on sale of financial solutions business, Revenue and Net Income up 10 per cent and 16 per cent, respectively

Full year consolidated Operating Revenue, Net Income, and Adjusted EBITDA up 9.8 per cent, 35 per cent, and 6.4 per cent, respectively, alongside record 960,000 net customer additions

Burnaby, BC, February 14, 2022--(T-Net)--TELUS Corporation today released its unaudited results for the fourth quarter of 2021.

Consolidated operating revenues and other income increased by 20 per cent over the same period a year ago to approximately $4.9 billion.

In the fourth quarter, the company recognized a $410 million pre-tax gain arising from the disposition of their financial solutions business, as reported in other income. Excluding the gain, operating revenues and other income increased by 9.9 per cent.

Darren Entwistle, President and CEO, TELUS Communications Inc.

"Throughout 2021, TELUS achieved strong operational and financial results across our business," said Darren Entwistle, President and CEO.

"This is a trend the TELUS team has demonstrated over the long-term and, in 2021, was once again successfully achieved against the backdrop of an unprecedented operating environment. Our performance in the fourth quarter, and for the full year, was characterized by our hallmark combination of robust, high-quality and profitable customer growth, alongside strong financial results. The quarter concluded another year of industry-leading customer growth, with all-time record total net customer additions of 960,000, including another best-ever year for Fixed customer growth of 255,000 reflecting the potency of our expansive PureFibre network capabilities. Furthermore, over the last two years we have added over 1.7 million customer additions, demonstrating the significant economic value we are creating through the strong demand for our leading product portfolio. Notably, we achieved strong Free Cash Flow for the year, slightly ahead of our guidance as updated in May to reflect our accelerated broadband expansion program. Our industry-leading customer growth was driven by our team's passion for delivering outstanding customer experiences, which once again contributed to strong client loyalty across our key product lines, including blended Mobile Phone, Internet, Optik TV, Security and Voice churn all below one per cent for the year. Indeed, 2021 represented our eighth consecutive year of industry-leading postpaid wireless churn below one per cent."

"Our results are buttressed by our highly differentiated and potent asset mix geared towards high-growth, technology-oriented verticals," continued Darren.

"Earlier today, TELUS International (TI) announced strong double-digit revenue and profitability growth for the fourth quarter, concluding their first year as a public company with impressive financial results that surpassed their financial targets for 2021. TI's continued robust results demonstrate its consistent execution, and position as a leading partner of choice for premier digital customer experiences and IT services for its over 600 clients around the world. TI's enviable list of client partners rely on TI's talented and engaged team, along with its deep end-to-end digital capabilities to deliver a superior customer experience, including a unique and unparalleled mix of content moderation and artificial intelligence (AI) capabilities.

"At TELUS Health, our team drove double-digit year-over-year health services revenue growth for both the quarter and the year, while achieving important milestones along the way as we continue to meaningfully scale our health operations. This includes our healthcare programs covering over 20 million lives, an increase of nearly 22 per cent on a year-over-year basis, along with realizing more than 550 million digital health transactions in 2021 and earning over one million new virtual healthcare members, representing a 65 per cent increase over the prior year. We continue to successfully leverage our leading position in healthcare technology solutions to deliver improved health outcomes for citizens through access to better health information, which has never been more critical".

"In TELUS Agriculture, through our team's ongoing efforts to integrate and grow this unique business, we drove strong double-digit revenue growth across our three lines of business - agribusiness; food, beverage and consumer goods; and animal health - exceeding our annual revenue objective with revenues in agriculture, including telecom connectivity, of over $400 million in 2021. This is illustrative of the significant value we are creating as the globally-leading provider of agriculture technology solutions. We look forward to expanding disclosure with respect to agriculture in 2022 and beyond, which we are confident will further illustrate the value and asset of consequence we are creating in this important area."

Doug French, Executive Vice-president and CFO said, "In the fourth quarter, the TELUS team delivered strong operating and financial results that met our financial targets. Our results continue to reflect our operational execution excellence, supported by our leading broadband networks and our high quality asset mix geared towards high growth verticals and the growing global economy. Throughout 2021, our team continued to deliver on our customers' first promise, achieving nearly one million new customer additions along with leading loyalty results, reflecting our superior bundled offerings and strong customer retention efforts."

"During the quarter, our team continued to execute on our accelerated broadband build program, connecting more homes and businesses directly to our leading PureFibre network, finishing the year with more than 2.7 million premises enabled with fibre along with over 1.3 million customers connected to our world-leading PureFibre network," Doug added. "Our 5G network now reaches 70 per cent of the Canadian population and, in the months ahead, we will continue enhancing the customer experience with the deployment of our recently acquired 3500 MHz spectrum. Furthermore, we continue to migrate copper customers to our PureFibre network, finishing 2021 with only 11 per cent of our TV and internet customer base within our fibre footprint on copper. Notably, we are well on our way to substantially completing all of our copper-to-fibre migrations by the end of this year, leading to improved customer experiences and cost efficiencies, benefiting margins and cash flow, along with offering ongoing real estate rationalization opportunities."

"Our consolidated financial targets for 2022 build off our well established operating momentum strength and are supported by our healthy balance sheet, which provides us with the financial flexibility to further bolster our unrivaled growth profile, both through thoughtful organic investments, as well as targeted acquisitions. Our financial outlook reflects continued healthy growth within our core business, including profitable customer growth driven by continued demand for our superior bundled offerings over our leading broadband networks. Supporting our growth profile in 2022 are our unique and high growth businesses, including TELUS International, which today released its own set of strong financial targets for 2022, as well as TELUS Health and TELUS Agriculture, which are both increasingly becoming important contributors to revenue, profitability and cash flow."

"Our Capital Expenditure target for 2022 of approximately $3.4 billion, slightly below our preliminary guidance and inclusive of our accelerated broadband capital investment program now in its final year, will further enhance our strong competitive positioning. Specifically, these generational investments are advancing our PureFibre network coverage, connecting more homes and businesses to world-leading network technology, accelerating our 5G deployment across urban and rural Canada, as well as progressing our digitization strategy to bolster the customer experience and drive further efficiencies within our business. Furthermore, as we ramp down our accelerated broadband build at the end of this year, our capital expenditure profile will decline materially going forward, beginning in 2023, supporting sustainable cash flow generation and our commitment to our transparent dividend growth program. Powered by our leading asset mix, we are well positioned to continue executing against our long-standing growth strategy, while driving a collective focus on social capitalism, and delivering outstanding value for all TELUS stakeholders for years to come, while at the same time achieving our ambitious environmental goals," concluded Doug.

For the fourth quarter, net income of $663 million increased by 145 per cent over the same period last year and Basic earnings per share (EPS) of $0.47 increased by 135 per cent. These increases were driven by the impacts of increased Operating Income, including increased EBITDA, as detailed below, which were partially offset by higher depreciation and amortization; higher income taxes; and, as it relates to EPS, higher shares outstanding. When excluding the effects of restructuring and other costs, income tax-related adjustments, other equity losses related to real estate joint ventures, and the tax-effected gain arising from the disposition of our financial solutions business in the quarter, adjusted net income of $331 million increased by 15 per cent, while adjusted basic EPS of $0.23 was up 4.5 per cent. Adjusted net income is a non-GAAP financial measure and adjusted basic EPS is a non-GAAP ratio. For further explanation of these measures, see 'Non-GAAP and other financial measures' in this news release.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 41 per cent to approximately $1.9 billion, in part due to the gain on disposition of our financial solutions business, while Adjusted EBITDA, which excludes the aforementioned gain, increased by 7.6 per cent to $1.5 billion. This growth reflects: (i) growth in network revenues from increases in our mobile phone and connected devices subscriber bases, and higher year-over-year roaming margins; (ii) growth in mobile equipment margins; (iii) higher internet and data service margins, as well as other fixed data service margins, resulting from subscriber base growth and expanded services; (iv) an increased contribution from our digitally-led customer experiences - TELUS International (DLCX) segment from customer growth, including business acquisitions, and increased depth and breadth of services offered to its existing customers; and (v) lower bad debt expense. This growth was partly offset by lower legacy fixed voice and legacy fixed data services margins, and higher employee benefits expense.

In the fourth quarter, the company added 272,000 net customer additions, up 19,000 over last year, and inclusive of 112,000 mobile phones and 81,000 connected devices, in addition to 40,000 internet, 31,000 security and 18,000 TV customer connections. This was partly offset by residential voice losses of 10,000. Our total TELUS technology solutions (TTech) subscriber base of 16.9 million is up 5.9 per cent over the last twelve months, reflecting a 4.1 per cent increase in our mobile phones subscriber base to approximately 9.3 million, and a 19 per cent increase in our connected devices subscriber base to more than 2.1 million. Additionally, our internet connections grew by 6.2 per cent over the last twelve months to approximately 2.3 million customers, our security customer base expanded by 14 per cent to 804,000 customers, and our TV subscriber base increased by 4.1 per cent to approximately 1.3 million customers.

In health services, as of the end of 2021, virtual care members were 2.8 million and healthcare lives covered were 20.6 million, up 65 per cent and 22 per cent over the past 12 months, respectively. Digital health transactions in the fourth quarter of 2021 were 142.8 million, up 5.7 per cent over the fourth quarter of 2020.

Cash provided by operating activities decreased by $137 million in the fourth quarter of 2021 and free cash flow of $43 million decreased by $175 million compared to the same period a year ago. The decrease in free cash flow was driven by higher capital expenditures aligned with our planned accelerated capital investments and higher income taxes paid, partly offset by higher EBITDA.

Consolidated capital expenditures increased by $296 million in the fourth quarter of 2021, due to accelerated investments in our 5G network, broadband build, enhanced product development, and digitization to increase system capacity and reliability, as announced on March 25, 2021. With our investments, we are advancing the mobile speeds and coverage of our expanding 5G network, continuing to connect additional homes and businesses directly to our fibre optic technology, enhancing product development, and supporting system reliability and operational efficiency and effectiveness efforts. These investments also support our internet, TV and security subscriber growth, address our customers' demand for faster internet speeds, and extend the reach and functionality of our business, as well as our healthcare and agriculture solutions.

On May 7, 2021, the company announced that it intended to accelerate up to $750 million of capital spending in 2021. $708 million of accelerated capital had been invested throughout 2021, to advance their fibre build and 5G coverage.

This spend has enabled: (i) additional premises to be connected to our fibre network; (ii) acceleration of our copper-to-fibre migration program; (iii) expansion of the number of communities they are bringing fibre to, including many rural and Indigenous communities; (iv) advancement of their 5G network build which now covers over 26.2 million Canadians, representing 70 per cent of the Canadian population at December 31, 2021; and (v) progress in the implementation of their digital strategy and enhanced product development that will bolster both top-line revenue growth and operating expense efficiencies.

At December 31, 2021, our TELUS PureFibre network covered more than 2.7 million premises, up from approximately 2.5 million premises at December 31, 2020. Furthermore, at December 31, 2021, approximately 11 per cent of our TV and internet customers within our PureFibre footprint are serviced by copper, down from 12 per cent at September 30, 2021. The majority of the remaining customers are expected to be substantially migrated to TELUS PureFibre by the end of 2022.

Consolidated Financial Highlights

Fourth Quarter 2021 Operating Highlights

Commencing with the three-month period ended March 31, 2021, we transitioned to our new segment reporting structure and have recast comparative amounts on a comparable basis.

The TELUS technology solutions (TTech) segment includes: network revenues and equipment sales arising from mobile technologies; data revenues (which include internet protocol; television; hosting, managed information technology and cloud-based services; software, data management and data analytics-driven smart food-chain technologies; and home and business security); certain healthcare software and technology solutions; voice and other telecommunications services revenues; and equipment sales.

The digitally-led customer experiences - TELUS International (DLCX) segment, which has the U.S. dollar as its primary functional currency, is comprised of digital customer experience and digital-enablement transformation, including artificial intelligence and content management solutions, provided by TELUS International.

As noted in Section 1.2 of our 2021 annual MD&A, the COVID-19 pandemic, which emerged in the first quarter of 2020, continued to have a pervasive global impact throughout 2021. We expect the pandemic to continue to affect our operations until at least 2023. Whether this occurs will depend on both domestic and international factors, including vaccination progress and the potential proliferation of COVID-19 variants of concern. Therefore, results described below may not be indicative of future trends, as the COVID-19 pandemic prevents us and our customers from operating in the normal course of business in certain areas, while we continue to adjust our mode of operations to continue delivering on our customers first priorities and social purpose. Our results discussed below are compared to the equivalent period in 2020, unless otherwise indicated.

TELUS technology solutions (TTech)

• TTech operating revenues (arising from contracts with customers) increased by $231 million or 6.4 per cent in the fourth quarter of 2021, reflecting increases in mobile network revenue, mobile equipment and other service revenues, fixed data services revenues, and health services revenues, as described below. Lower fixed voice services revenues, as well as lower fixed equipment and other services revenues, were a partial offset.
• Other income in TTech was $411 million in the fourth quarter of 2021, an increase of $412 million, largely reflecting the impact of a $410 million gain arising from the disposition of our financial solutions business in the fourth quarter of 2021, as described below.
• TTech EBITDA increased by $501 million or 41 per cent in the fourth quarter of 2021, in part due to the gain on disposition of our financial solutions business, while Adjusted EBITDA increased by $87 million or 6.7 per cent, reflecting an increase in direct contribution from mobile and fixed products and services, as outlined below. These impacts were partially offset by higher employee benefits expense, operating and administrative costs related to business acquisitions and growth in business operations, in addition to higher advertising and promotional costs relative to subdued marketing activity in 2020.

Mobile products and services

• Mobile network revenue increased by $76 million or 5.0 per cent in the fourth quarter of 2021, due to subscriber growth and higher mobile phone ARPU, as described below. Compared to the fourth quarter of 2019 (pre-COVID-19 period), mobile network revenue increased by $60 million or 3.9 per cent.
• Mobile equipment and other service revenues increased by $30 million or 5.0 per cent in the fourth quarter of 2021, reflecting higher-value smartphones in the sales mix, despite an increased mix of certified pre-owned device sales. This was partially offset by industry-wide mobile handset inventory constraints, which resulted in lower revenue from mobile handset upgrade volumes.
• TTech mobile products and services direct contribution increased by $90 million or 6.9 per cent in the fourth quarter of 2021 due to higher network revenues, reflective of subscriber growth and higher mobile phone ARPU, higher equipment margins, and lower commissions expense, as we continue to drive customer transactions to digital channels, in addition to lower contracted volumes in the current and prior periods.
• Mobile phone ARPU was $57.45 in the fourth quarter of 2021, an increase of $0.57 or 1.0 per cent, largely due to higher roaming revenues as international travel volumes continued to recover, albeit below seasonal pre-pandemic levels, in addition to higher monthly recurring charges caused by a greater mix of high-value customer additions. This was partly offset by lower chargeable usage revenues as customers continued to adopt larger data allotments in their rate plans, as well as the impact of the competitive environment putting pressure on base rate plan prices in the current and prior periods.
• Mobile phone ABPU was $70.09 in the fourth quarter of 2021, an increase of $0.39 or 0.6 per cent, largely reflecting the same items noted above for mobile phone ARPU, in addition to a greater mix of bring-your-own device customer additions.
• Mobile phone gross additions were 398,000 in the fourth quarter of 2021, an increase of 24,000, driven by growth in high-value customer additions, improvements in retail traffic as pandemic-related restrictions had lessened when compared to the prior year, successful promotions, including the bundling of our mobility and home services, expanded channels, and the enhanced capabilities of our digital footprint, inclusive of increased self-serve functions. Industry-wide inventory shortages from global supply chain challenges had an impact on competitive activity during the fourth quarter of 2021. However, we mitigated these challenges by leveraging certified pre-owned device inventory, our Bring-it-Back device program and device repair businesses, including Mobile Klinik, in addition to our compelling rate plan offers.
• Mobile phone net additions were 112,000 in the fourth quarter of 2021, an increase of 25,000, demonstrating improvements in retail store traffic compared to the prior year, albeit still below pre-pandemic levels, our continued strong execution in digital sales and expanded channels, and our successful efforts to drive high-value customer net additions, inclusive of our consistently low customer churn, as discussed below.
• Our mobile phone churn rate was 1.04 per cent in the fourth quarter of 2021, compared to 1.09 per cent in the fourth quarter of 2020, reflecting the impacts of industry-wide inventory shortages arising from global supply chain challenges, which had an impact on customer switching activity. These relatively low churn rates in the current and comparative period reflect the impacts of the pandemic, with customers reducing their general shopping habits in retail outlets since the start of the pandemic, along with mandated capacity restrictions. Churn continues to benefit from our successful bundling of mobility and home services, our focus on executing customers first initiatives and handset upgrade volume programs, and our leading network quality.
• Connected device net additions were 81,000 in the fourth quarter of 2021, a decrease of 7,000, primarily due to lower Internet of Things net additions, which do not experience the same seasonal dynamics as our other customer connections.

Fixed products and services

• Fixed data services revenues increased by $121 million or 12 per cent in the fourth quarter of 2021. The increase was driven by: (i) increased internet and data service revenues, reflecting higher revenue per customer resulting from internet speed upgrades, larger allotted data internet rate plans and rate changes, in addition to a 6.2 per cent increase in our internet subscriber base over the past 12 months; (ii) increased revenues from smart food-chain technology, driven by business acquisitions; (iii) higher TV revenues, reflecting subscriber growth of 4.1 per cent over the past 12 months; and (iv) increased revenues from home and business security driven by expanded services and customer growth of 14 per cent over the past 12 months. This growth was partly offset by the ongoing decline in legacy data service revenues.
• Fixed voice services revenues decreased by $11 million or 5.0 per cent in the fourth quarter of 2021, reflecting the ongoing decline in legacy voice revenues resulting from technological substitution and price plan changes. Declines were mitigated by the success of our bundled product offerings and retention efforts and the migration from legacy to IP services offerings. The decline in residential voice subscribers over the past 12 months was 3.5 per cent, compared to a 3.3 per cent decline in residential voice subscribers for the 12-month period ended December 31, 2020.
• Fixed equipment and other service revenues decreased by $7 million or 6.4 per cent in the fourth quarter of 2021, mainly from lower business equipment sales.
• TTech fixed products and services direct contribution increased by $76 million or 7.2 per cent in the fourth quarter of 2021 due to growth in margins for internet and data services, smart food-chain technology and health services. This was partly offset by declining legacy data and legacy voice margins.
• Internet net additions were 40,000 in the fourth quarter of 2021, a decrease of 4,000, due to higher churn and lower market demand relative to the subdued switching activity in 2020 and record customer growth in 2020. This offset our success in driving strong net additions through bundled product offerings, including the TELUS Whole Home bundle and our bundling of mobility and home services.
• TV net additions were 18,000 in the fourth quarter of 2021, a decrease of 2,000, mainly due to higher churn relative to the subdued switching activity in 2020, offsetting the success of our bundled product offerings.
• Security net additions were 31,000 in the fourth quarter of 2021, an increase of 8,000, driven by strong growth in new customer connections and lower churn through demand for our bundled product offerings and diverse suite of products and services.
• Our continued focus on connecting more homes and businesses directly to fibre, expanding and enhancing our addressable high-speed internet and Optik TV footprint, and bundling these services together, contributed to combined internet, TV and security subscriber growth of 280,000 over the past 12 months.
• Residential voice net losses were 10,000 in the fourth quarter of 2021, compared to residential voice net losses of 9,000 in the fourth quarter of 2020. The residential voice subscriber losses continue to reflect the trend of substitution to mobile and internet-based services, mostly mitigated by our expanding fibre footprint and bundled product offerings, as well as our strong retention efforts, including lower-priced offerings.

Health services

• Through TELUS Health, we are leveraging technology to deliver connected solutions and services, improving access to care and revolutionizing the flow of information while facilitating collaboration, efficiency, and productivity across the healthcare ecosystem, progressing our vision of transforming healthcare and empowering people to live healthier lives.
• Health services revenues increased by $22 million or 18 per cent in the fourth quarter of 2021. The increase was mainly driven by business acquisitions, higher usage of value-added services including vaccination solutions, growth in health benefits management services with plan members resuming the use of elective health services, and higher TELUS Health Care Centres volume.
• At the end of 2021, 2.8 million members were enrolled in our virtual care services, an increase of 1.1 million over the past 12 months. The increase is due to the continued adoption of virtual solutions to keep Canadians safely connected to health and wellness care during the pandemic. A virtual care member means a primary enrolment to receive services on an active TELUS Health virtual care plan.
• At the end of 2021, our healthcare programs covered 20.6 million lives, an increase of 3.7 million over the past 12 months, mainly due to the continued demand for virtual solutions, an increase in value-added services including vaccination solutions, and an increase in elective health services volumes. Healthcare lives covered refers to the number of users (primary members and their dependents) enrolled in various health programs supported by TELUS Health services (e.g. virtual care, health benefits management, preventative care and personal health security).
• Digital health transactions were 142.8 million in the fourth quarter of 2021, reflecting an increase of 7.7 million for the quarter, driven by a higher number of adjudication and eClaims as plan members resumed the utilization of elective health services. Digital health transactions mean the total number of health claims, dental claims, consultations or other paid transactions facilitated by TELUS Health services.

Digitally-led customer experiences - TELUS International (DLCX)

• DLCX operating revenues (arising from contracts with customers) increased by $169 million or 36 per cent in the fourth quarter of 2021. The increase was attributable, in part, to growth generated from our acquisitions, particularly within our tech and games client base. The remainder of the growth was organic, coming from growth in services provided to existing clients, as well as new clients added since the comparative period in the prior year. This growth was offset, in part, by foreign exchange impacts in the fourth quarter of 2021 driven by the strengthening of the Canadian dollar compared to the U.S. dollar, the primary operating currency of DLCX.
• DLCX EBITDA increased by $45 million or 40 per cent in the fourth quarter of 2021, while DLCX Adjusted EBITDA increased by $21 million or 15 per cent for the same period. The increases in EBITDA and Adjusted EBITDA were primarily from revenue growth, as detailed above, partly offset by higher average employee salaries and wages, a change in the mix of client programs, as well as the foreign exchange impacts on revenues as a result of the strengthening of the Canadian dollar compared to the U.S. dollar.

Corporate Highlights

TELUS makes significant contributions and investments in the communities where 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 in excess of $2.7 billion in 2021 to federal, provincial and municipal governments in Canada consisting of corporate income taxes, sales taxes, property taxes, employer portion of payroll taxes and various regulatory fees. Since 2000, we have remitted approximately $31 billion in these taxes.
• Investing approximately $3.5 billion in capital expenditures primarily in communities across Canada in 2021 and approximately $47 billion since 2000.
• Disbursing spectrum renewal fees of approximately $50.3 million to Innovation, Science and Economic Development Canada in 2021, as well as acquiring spectrum licenses for approximately $2.2 billion. Since 2000, our total tax and spectrum remittances to federal, provincial and municipal governments in Canada have totalled more than $38 billion.
• Spending $8.5 billion in total operating expenses in 2021, including goods and services purchased of approximately $6.0 billion. Since 2000, we have spent $140 billion and $95 billion, respectively, in these areas.
• Generating a total team member payroll of $3.1 billion in 2021, including wages and other employee benefits, and payroll taxes of $175.4 million. Since 2000, total team member payroll totals $54 billion.
• Returning approximately $1.7 billion in dividends through four quarterly dividend payments through December 2021 to individual shareholders, mutual fund owners, pensioners and institutional investors. Since 2004, we have returned approximately $21 billion to shareholders through our dividend and share purchase programs, including $15.7 billion in dividends and $5.2 billion in share repurchases, representing over $15 per share.

TELUS sets 2022 consolidated financial targets

TELUS' consolidated financial targets for 2022 are guided by a number of long-term financial objectives, policies and guidelines, which are detailed in Section 4.3 of the 2021 annual MD&A.

In 2022, TELUS plans to continue generating positive financial outcomes and strong customer growth. We expect growth in EBITDA to be driven by continued demand for data in our mobile and fixed products and services; roaming revenue improvement corresponding with a reduction in pandemic restrictions; and continued significant ongoing investments in our leading fibre broadband network and growing 5G deployment, supported by our accelerated broadband build program. Our strategic efforts to enhance operational simplicity and efficiency, in addition to our constant focus on improving the customer experience across all areas of our operations, is also expected to contribute to our growth.

Supporting our growth profile in 2022 are our unique and diversified growth assets: TELUS International, including growing demand in the digital transformation ecosystem and the acceleration of digital adoption across various sectors of the global economy; TELUS Health, including growing demand for our expanding portfolio of digital health services and applications; and TELUS Agriculture, which is using technology to drive better food outcomes across the agriculture value chain. Our growth profile is also underpinned by a team member culture focused on delivering customer service excellence and our ongoing focus on operational effectiveness.

In 2022, we expect the COVID-19 pandemic to continue to have impacts on our business, primarily in the first half of the year, attributable to economic factors such as continued travel advisories and border restrictions, decreasing business and consumer travel continuing to impact our roaming revenues, global supply chain challenges and subsequent business lockdowns, and/or reduced scope of operations impacting our TELUS Health Care Centres. We expect the pandemic impacts in 2022 to be smaller in scale than in 2021, primarily due to the uptake of COVID-19 vaccinations in the general population, allowing for the re-opening of the global economy in areas where we conduct business.

Our assumptions for 2022 are set out in Section 9.3 TELUS assumptions for 2022 in the 2021 annual MD&A.

The preceding disclosure respecting TELUS' 2022 financial targets is forward-looking information and is fully qualified by the 'Caution regarding forward-looking statements' in the 2021 annual MD&A filed on the date hereof on SEDAR, especially Section 10 Risks and Risk Management thereof which is hereby incorporated by reference, and is based on management's expectations and assumptions as set out in Section 9.3 TELUS assumptions for 2022 in the 2021 annual MD&A.

Dividend Declaration

The TELUS Board of Directors declared a quarterly dividend of $0.3274 per share on the issued and outstanding Common Shares of the Company payable on April 1, 2022 to holders of record at the close of business on March 11, 2022. This quarterly dividend reflects an increase of 5.2 per cent from the $0.3112 per share dividend declared one year earlier. The sum of the last four quarterly dividends declared per common share totals $1.2872, compared to $1.2049 for the four preceding quarters, reflecting 6.8 per cent growth.

TELUS sells financial solutions business

On December 6, 2021, we announced the disposition of our financial solutions business for $500 million. Net proceeds from the transaction will be used to support strategic growth investments including connecting more homes and businesses to our TELUS PureFibre network, advancing our 5G network build and investments to support enhancing new areas of growth including our offerings to small and medium-sized businesses, as well as in TELUS Health and TELUS Agriculture. Proceeds will also support debt retirement.

TELUS acquires Fully Managed

On January 1, 2022, we acquired 100 per cent ownership of Fully Managed Inc. (Fully Managed) for cash and contingent consideration of approximately $137 million. Fully Managed is the market leader in the managed service space, providing fast and efficient IT support, technology strategy and proactive network management. This investment was made with a view of building our end-to-end capabilities to support small and medium-sized business customers.

Community Highlights

Giving back to our communities

• The TELUS Friendly Future Foundation (TFFF) and TELUS Community Boards directed support in 2021 to charitable initiatives helping at-risk youth and other marginalized populations. The Foundation marked its third year in 2021, committing more than $8.7 million in cash donations to 500 charitable organizations. The TFFF has contributed over $25 million in cash donations to our communities since its inception, supported by the incredible work of our TELUS Community Boards. Notably, since 2005, the TELUS Community Boards have invested $91 million in cash donations to 7,800 initiatives, providing resources and support for underserved citizens, especially young people, around the world.
• This year we evolved our 16-year legacy global volunteer movement, TELUS Days of Giving, to TELUS #FriendlyFuture Days. More than 55,000 TELUS employees, retirees, family and friends participated, helping to volunteer 1.3 million hours of giving.
• In November, we committed $1 million, including $500,000 of in-kind support in health, network and community services, to support British Columbia following the unprecedented weather events and flooding that sent the province into a state of emergency.

Empowering Canadians with connectivity

• We welcomed close to 12,000 new households to our Internet for Good program this year, resulting in 106,000 low-income family members, persons with disabilities and youth aging out of foster care benefiting from low-cost internet since the launch of the program in 2016.
• Our Mobility for Good program offers free or subsidized wireless rate plans and devices to all youth aging out of foster care and to low-income seniors across Canada receiving the guaranteed income supplement. We added close to 7,000 youth, seniors and other marginalized Canadians in 2021. Since we launched this program in 2017, more than 28,000 individuals have benefited from the program.
• In October 2021, we launched Mobility for Good for Indigenous Women at Risk, a new program that provides free smartphones and data plans to Indigenous women who are at risk of or surviving violence, in partnership with Indigenous organizations in Alberta and B.C.
• We expanded our Tech for Good program nationally, in partnership with March of Dimes Canada, and continued to provide people with disabilities access to personalized one-on-one assessments, customized recommendations, training and support on mobile devices. Up to December 31, 2021, we have supported more than 4,600 Canadians with disabilities who require professional assistance to independently use or control their mobile device through the program and the TELUS Wireless Accessibility Discount.
• We continued to help Canadians stay safe in our digital world through our TELUS Wise program in 2021. The launch of TELUS Wise online basics helped those who are new to using technology learn basic, everyday digital literacy skills. Over 105,000 Canadians participated in virtual TELUS Wise workshops and events in 2021, bringing our cumulative participation to over 450,000 Canadians since the program launched in 2013.

Transforming healthcare

• Through our mobile health clinics that serve 14 communities across Canada, we supported 35,000 patient visits in 2021, resulting in close to 95,000 cumulative primary care visits since the inception of our Health for Good program in 2019.
• Most mobile clinics are also directly supporting the COVID-19 crisis response, providing COVID-19 assessments since the start of the pandemic and vaccines in 2021. Up to December 31, 2021, our mobile health clinics have administered more than 9,000 vaccinations.
• In October 2021, we expanded our Health for Good program to the Niagara Region of Ontario. In collaboration with our partner, REACH Niagara, we are bringing primary care to marginalized and underserved people in the area, including migrant agricultural workers, new immigrants and refugees, while supporting the training of the next generation of healthcare workers.

Driving social impact

• Throughout 2021, the TELUS Pollinator Fund for Good invested nearly $20 million in debt and equity securities of 10 socially responsible and innovative start-ups, of which 40 per cent are women-led and 50 per cent are led by Indigenous or racialized founders.

Indigenous Reconciliation

• In September, we launched our Reconciliation Commitment, which was developed in partnership with and in support of Indigenous Peoples across the country. We are proud to stand in solidarity with residential school survivors and their families through our $8 million commitment toward reconciliation. This includes a $1 million gift to digitize, promote and distribute the Witness Blanket, as well as investments from the Pollinator Fund for Good, TELUS Community Boards and The TELUS Friendly Future Foundation.
• In November 2021, we released our 2021 Indigenous Reconciliation and Connectivity Report, an evolution from the annual connectivity report that shares inspiring stories of the transformative benefits that connectivity brings to newly connected Indigenous communities. This year's report also includes our first-ever Indigenous reconciliation action plan, making us the first technology company in Canada to publicly commit to an Indigenous reconciliation action plan.

Global Social Capitalism awards and recognition

• In November, TELUS was recognized as one of Strategy Magazine's 2021 Brands of the Year. The result is an award-winning brand - valued at almost $9 billion - that is driving real, meaningful change, from transforming healthcare to empowering Canadians with connectivity.
• In November, TELUS was awarded a Terra Carta Seal by The Sustainable Markets Initiative (SMI), a U.K. climate group headed by Prince Charles, for leadership on climate change energy transition. 45 global companies were recognized and TELUS was one of only three Canadian companies receiving the prestigious recognition.
• In December, we were recognized for corporate social responsibility by being named to the Dow Jones Sustainability North American Index for the 21st year in a row, ranking at the 90th percentile in the telecommunications industry for our leadership in sustainability. This ranking demonstrates our global leadership in key categories, including corporate citizenship and philanthropy, innovation management, and environmental and social reporting.

Access to Quarterly results information

Interested investors, the media and others may review this quarterly earnings news release, management's discussion and analysis, quarterly results slides, audio and transcript of the investor webcast call, supplementary financial information at telus.com/investors.

About TELUS
TELUS (TSX: T, NYSE: TU) is a dynamic, world-leading communications technology company with $17 billion in annual revenue and 17 million customer connections spanning wireless, data, IP, voice, television, entertainment, video, and security. We leverage our global-leading technology and compassion to drive social change and enable remarkable human outcomes. Our longstanding commitment to putting our customers first fuels every aspect of our business, making us a distinct leader in customer service excellence and loyalty. The numerous, sustained accolades TELUS has earned over the years from independent, industry-leading network insight firms showcase the strength and speed of TELUS' global-leading networks, reinforcing our commitment to provide Canadians with access to superior technology that connects us to the people, resources and information that make our lives better.

TELUS Health is Canada's leader in digital health technology, improving access to health and wellness services and revolutionizing the flow of health information across the continuum of care. TELUS Agriculture provides innovative digital solutions throughout the agriculture value chain, supporting better food outcomes from improved agri-business data insights and processes. TELUS International (TSX and NYSE: TIXT) is a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions, including AI and content management, for global and disruptive brands across high-growth industry verticals, including tech and games, communications and media, ecommerce and FinTech, healthcare, and travel and hospitality. TELUS and TELUS International operate in 25+ countries around the world.

Driven by our passionate social purpose to connect all citizens for good, our deeply meaningful and enduring philosophy to give where we live has inspired TELUS, our team members and retirees to contribute more than $900 million and 1.8 million days of service since 2000. This unprecedented generosity and unparalleled volunteerism have made TELUS the most giving company in the world. Together, let's make the future friendly.