TELUS (T) CIBC Eastern Institutional Investor Conference summary

Strategic focus and business evolution

• Emphasis on core telecom and AI data infrastructure, with ongoing strategic review of non-core businesses and a simplification drive over the next 6–18 months.

• Refocus on profitability, simplification, and customer-first culture, including a pause on M&A to reduce complexity.

• Strategic review underway for all business units, with some potentially better served outside the organization.

• Leadership team reset to drive focus and collaboration, aiming to regain a leading customer-centric position.

Capital allocation and financial discipline

• Dividend reset and DRIP discount termination to redirect cash flow toward deleveraging, targeting a leverage ratio of 3.0x or lower by 2028.

• Once leverage targets are met, potential for dividend increases or share buybacks will be considered.

• CapEx guidance increased for 2026 due to inflation, data center completion, and ongoing customer experience projects, but 2027 CapEx expected to be lower.

• Focus on tighter ROI for projects, reduced internal product development, and no new M&A to support lower capital intensity.

Market positioning and operational performance

• Wireless market is stabilizing, with disciplined approach to profitability over net adds, resulting in three consecutive quarters of ARPU growth.

• Wireline strategy prioritizes building and owning fiber in high-potential communities, especially in Ontario and Quebec, over TPIA.

• Partnerships are key for fiber and AI infrastructure expansion, balancing growth with leverage commitments.