telus national evolution a perspective on 10 years of fundamental change
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TELUS National Evolution A perspective on 10 years of fundamental change. November 2009. TELUS evolution agenda. Slide. Strategic imperatives progress Focusing on growth markets of data and wireless 5 - PowerPoint PPT PresentationTRANSCRIPT
TELUS National EvolutionA perspective on 10 years of fundamental change
November 2009
Strategic imperatives progress Focusing on growth markets of data and wireless 5 Building national capabilities 15 Providing integrated solutions 26 Partnering, acquiring and divesting as necessary 31 Going to market as one team 33 Investing in internal capabilities 36
Financial and Valuation Review 46
TELUS evolution agendaTELUS evolution agenda
2
Consistent and proven strategy 2000 → 2009Consistent and proven strategy 2000 → 2009
Slide
4131%
70%$17.9B$10.5BEnterprise value
20001 20092 % change
Revenue $6.0B $9.6B 60%
EBITDA $2.4B $3.6B 50%
Net income $681M $1.1B 62%
Net income / employee3 $29K $42K 45%
Earnings per share $2.86 $3.56 24%
Total connections 6.0M 11.9M 98%
Wireless subscribers 1.1M 6.4M 482%
Network Access Lines 4.5M 4.1M 9%
High Speed Internet subscribers 26K 1.1M
Cash returned to shareholders4 $336M $602M 79%
1Revenue, EBITDA, net income and EPS are 12-months trailing from June 30, 2000. Subscribers and enterprise value as at Jan 1, 20002Revenue, EBITDA, net income and EPS are 12-months trailing from Sept. 30, 2009. Subscribers and enterprise value as at Sept. 30, 20093Excluding TELUS International4Using dividends declared and normal course issuer bid share purchases
TELUS evolution 2000 → 2009TELUS evolution 2000 → 2009
3
Focusing on growth markets of data and wireless
Revenue $9.6B
$6.0B
2009120001
Wireless18%
Wireline Local
49%
Wireline LD23%
Data10%
28% 71%
WirelineData22%
Data9%
WirelessWireline
Local22%
7%LD
1 12 months ending June 30, 2000 and Sept 30, 2009, respectively
Wireless
40%
strategic focus on data and wirelessstrategic focus on data and wireless
TELUS revenues increased 61% since 2000TELUS revenues increased 61% since 2000
5
Wireline
Wireless
Voice - Network Access Lines
Data - Internet and TV
(millions)
65%Internet, TV and wireless
2000
6.0
11.9
Q3 2009
6
TELUS total customer connectionsTELUS total customer connections
98% increase in client connections since 2000 98% increase in client connections since 2000
24%
7
Building high speed data infrastructure
Building national fixed and mobile platforms
Building lower cost structure
$(1.5)BInvestment phase
$6.9BReturn phase
2001 - 2002
2003 - 2009
Cumulative consolidatedfree cash flow
investing in our growth strategyinvesting in our growth strategy
Long-term strategy generating significant cashLong-term strategy generating significant cash
(to Sept 30, 2009)
Supporting Future Friendly Home services by ongoing wireline broadband capital investments
Market share has increased from 11% to 39%
review of operations – wireless
26K
2000 Q3 2009
8
driving high-speed internet growthdriving high-speed internet growth
Fuelling growth and supporting exciting TELUS servicesFuelling growth and supporting exciting TELUS services
High Speed Internet customers1.1M
9
Offering TELUS TV – IPTV and Satellite TVOffering TELUS TV – IPTV and Satellite TV
TELUS TV evolutionTELUS TV evolution
TELUS TV subscribers
2000 Q3 2009
137K
0
10
TV coverage footprint in BC and Alberta has increased from 0 to > 90%
TV coverage footprint in BC and Alberta has increased from 0 to > 90%
TELUS TV evolutionTELUS TV evolution
* Nov/Dec TTV Launches
STV Coverage
Tier 1 IPTV Markets
Bedroom Communities
Tier 2 IPTV Markets
Moving to provide IPTV coverage in 48 top communities
AbbotsfordAirdrieBeaumont BelcarraBurnaby Calgary Campbell River Chilliwack CochraneCoquitlamDeltaDevon Edmonton Fort Langley Fort McMurray Ft SaskatchewanGrande Prairie Kamloops Kelowna Langley LeducLethbridge Maple RidgeMedicine Hat
Top 48 CommunitiesMission MorinvilleNanaimo New Westminster North Vancouver OkotoksPenticton Pitt MeadowsPort Coquitlam Port MoodyPrince George Red Deer Richmond Sherwood Park Spruce GroveSt Albert Stony PlainStrathmoreSurrey Vancouver Vernon Victoria West VancouverWhistler
Grande Prairie
Medicine Hat*
Lethbridge*
Okotoks
CalgaryAirdrie
Edmonton
Strathmore
Cochrane*
Morinville
Ft Sask
BeaumontLeduc
Devon
Spruce Gr,Stony Plain
Vernon
KelownaLower Mainland
Red Deer
Campbell River*
Victoria
Whistler
Fort McMurray
11
Generating stellar growth through successful acquisition and executionGenerating stellar growth through
successful acquisition and execution
continuing wireless growthcontinuing wireless growth
Wireless subscribers
2000 Q3 2009
1.1M
6.4M
Apple iPhone 3GS
265230 11
0245243 17
0 36830
2010
130
300
200
30
BritishColumbia
Alberta
Saskatchewan
Manitoba
Ontario
Québec
Newfoundland
NewBrunswick
Nova Scotia
P.E.I.
Wireless distribution augmented by Koodo launch and acquisition of Black’s
building TELUS’ wireless distributionbuilding TELUS’ wireless distribution
National exclusive distribution outlets doubled to 1,136National exclusive distribution outlets doubled to 1,136
2000 exclusive points of distribution2009 exclusive points of distribution
12
2008 launch expanding mall distribution 100 Koodo kiosks and growing
Realising 60% awareness nationally 80% in core demographic
Earning industry recognition from J.D. Power and Associates:
“Highest in customer satisfaction with postpaid wireless service”
13
strengthening wireless distributionstrengthening wireless distribution
Providing flexibility to serve various customer needsProviding flexibility to serve various customer needs
In 2009, acquired 113 retail stores across Canada Most in premium mall locations 72% are Ontario based
Building national capabilities
15
TELUS wireless coverage in 2000TELUS wireless coverage in 2000
16
TELUS wireless coverage todayTELUS wireless coverage today
17
TELUS vs Rogers - HSPA east coverageTELUS vs Rogers - HSPA east coverage
* Based on Rogers’ Sept. 14, 2009 public announcement of HSPA+ coverage within the cities indicated (using associated census metropolitan areas). ** Based on coverage maps made publicly available by Rogers on Oct. 23, 2009. Coverage areas are approximate as of October 2009. Actual coverage and network service can vary and are subject to change.
18
TELUS vs Rogers - HSPA west coverageTELUS vs Rogers - HSPA west coverage
* Based on Rogers’ Sept. 14, 2009 public announcement of HSPA+ coverage within the cities indicated (using associated census metropolitan areas). ** Based on coverage maps made publicly available by Rogers on Oct. 23, 2009. Coverage areas are approximate as of October 2009. Actual coverage and network service can vary and are subject to change
19
TELUS backbone optical and IP network in 2000TELUS backbone optical and IP network in 2000
20
TELUS backbone optical and IP network todayTELUS backbone optical and IP network today
Doing business in 87 cities on IP networks outside Alberta and B.C.
Doing business in 87 cities on IP networks outside Alberta and B.C.
Wireless Jan 2000 2009
PoPs covered (millions) 7 33
Mike (iDEN) covered (millions) - 28
Generation 1G 3 / 3.5G
Wireline Ont/Que and other cities 3 87
Co-locations 2 104
Customer POPs 5 1747
Fibre lit (km) 0 > 19,800
Platform Stentor TELUS
Network Circuit-based Next Generation (NGN)
Executing national growth strategy focused on data and wireless
Executing national growth strategy focused on data and wireless
TELUS – national infrastructure evolutionTELUS – national infrastructure evolution
21
$9.6B$5.8B
47%
regulated
regulated
22
transitioning to non-regulated revenue basetransitioning to non-regulated revenue base
Since 2000 TELUS’ non-regulated revenues have significantly increased to 90%
Since 2000 TELUS’ non-regulated revenues have significantly increased to 90%
10%
90%
non-regulated
Revenue
Pre-1999
2009
non-regulated
53%
Revenue
Operating profit
Cash flow
$1,200M
2008
$260M
($50M)
20001
$4M
($200M)
building economies of scale in Central Canadabuilding economies of scale in Central Canada
23
Focused on managed data network servicesFocused on managed data network services
1 12 months ending Jan 1, 2000
$0
2000 LatestCentral Canada Revenue EBITDA
Cash flow
$4 million$0$(200)
million
2008
$1.2 billion
$260 million
$(50) million
Business market approach Fragmented Focused on data and managed applications in five industry verticals Energy, public sector, health care, financial services, and telecom (doing business as Partner Solutions)
Central Canada success Limited Track record of large wins and successful contract implementations
Examples: TD Bank Financial Group Government of Ontario Ville de Montréal Government of Canada Yellow Pages Government of Québec
TELUS’ growth in Central CanadaTELUS’ growth in Central Canada
24
Providing integrated solutions
Customer dissatisfaction with incumbents
Potential IP platform to drive strategic solutions
Need to convert to IP platform
Support western base
Leverage IP technology
Customer risk aversion
Migration fears Few reference clients
Top score for client satisfaction
Cumulative $2.6B in contract values won
Anchor clients in key industry verticals
Non-contract growth Low churn and high
renewal rates
2000 2009
Excellentreputation for
innovation, transition and operations of large client deals
Virtually unknown in large corporate market outside
Western Canada
Leverage investment in national
Next Generation Network
Opportunity OutcomeChallenge
26
TELUS’ growth in enterprise segmentTELUS’ growth in enterprise segment
Investing in and focusing on key industry verticals Public sector Financial services Energy Healthcare Wholesale
Implementation track record leading to contract winsImplementation track record leading to contract wins
building on large enterprise dealsbuilding on large enterprise deals
NationalDefence
27
Québec Government – $900 million over 10 years Department of National Defence – $200 million over 5 years TD Bank – $180 million contract over 5 years Government of Ontario – $140 million contract over 5 years Yellow Pages Group – $90 million over long term Ville de Montréal – $87 million over 10 years Government of B.C. - $245 million over 4 years
28
major contract wins across Canadamajor contract wins across Canada
Excellent progress in Central Canadian business marketExcellent progress in Central Canadian business market
TELUS #1 Healthcare IT Company in Canada by Branham Group
2008 Canadian Health IT Company of the Year (ITAC Health)
Emergis purchased January 2008
Electronic Health Records for 5 million Canadians
4.1M Emergis Assure drug cards covering 8.5 million Canadians
3,000+ pharmacies using our pharmacy management software
Exclusive partner to host and operate Microsoft HealthVault in Canada
enhancing our leadership position in healthcareenhancing our leadership position in healthcare
Leading the evolution of healthcare delivery in CanadaLeading the evolution of healthcare delivery in Canada
29
Partnering, acquiring and divesting as necessary
20072000
Acquired Clearnet ($6.6B) &
QuébecTel ($700M)
2001 2003 20052002 2004 2006
Purchase of PSINet’s Canadianoperations
plus 6 other acquisitions
2008
Verizon divested 20.5% ($2.2B) equity
interest
Roaming / resale
agreements with Bell Mobility
HSPA network build -
partnership with Bell Canada
strategic journey 2000 → 2009strategic journey 2000 → 2009
31
Acquisitions and partnerships furthering TELUS’ strategyAcquisitions and partnerships furthering TELUS’ strategy
2009
Satellite TV launch -
agreement with Bell Canada
Launched unsuccessful
bid for Microcell
Divestiture of non-core
real estate, directory and
equipment leasing ($1.2B)
Acquisition of Ambergris
Solutions (international call centers)
Accenture partnership
Discussions to acquire BCE / not pursued
Acquisition of Emergis ($743M)
Acquisition of Black’s
($28M)
Agreement to carry Apple
iPhone
Going to market as one team
33
transformation to a single strong brandtransformation to a single strong brand
Nature based brand helps make technology simpleNature based brand helps make technology simple
One of Canada’s top brands
Canadian Best Brands - 2009
One of Canada’s Most Valuable Brands – 2009
Valued at $1.5 billion
10 years of Brand Excellence
Gold Award for Sustained Success
#1 brand in advertising and brand awareness – 2003
34
brand recognitionbrand recognition
“One of most recognizable and best loved brands in Canada”
“One of most recognizable and best loved brands in Canada”
Investing in internal capabilities
investing in operational efficiencyinvesting in operational efficiency
2002-2009E*
$1.1B$1.0B
Cumulative Restructuring
costs
36
Efficiency initiatives result in ~11K position net reductionsEBITDA savings help offset near term dilution of strategic initiatives
Efficiency initiatives result in ~11K position net reductionsEBITDA savings help offset near term dilution of strategic initiatives
2002-2009E*
Cumulative annual EBITDA savings
Restructuring
costs
2002
2003 28
2004 53
542005
682006
202007
592008
1602009E*
570
$M
1,012Total
* See forward looking statement caution
COMPENSATION
BENEFITS
HOURS OF WORK / PAID TIME OFF
CONTRACTING OUT
EASTERN OPERATIONS / MOBILITY
OPERATIONAL ISSUES
ADMINISTRATION & UNION-MGMT RELATIONS
Seniority-based wage leader limited pay for performance
Multiple plans
Non-competitive
Most restrictive in North America
Flexibility threatened
Overtime voluntary, union scheduling & seniority job posting
Administrative processes not aligned, contract terms foster
adversarialism
Performance-based, competitive with universal variable pay
Harmonized plans
Competitive/service driven
Restrictions eliminated
Flexibility preserved
Management schedules work & overtime, best qualified job posting
Harmonized procedures, practices & systems. Contract terms promote business-focused problem solving
2000 2009
TELUS – transforming our cultureTELUS – transforming our culture
2000 2009
2000 Recent
Workplace culture
Traditional cultures
Global leadership in learning2008 SkillSoft industry achievement award
Global leadership in recognition2009 RPI best practice award for Bravo program
Global leadership in communication2009 Stevie awards for teamVision program
National leadership in HR2009 Best Diversity Employers2008 Canada’s Human Capital Leaders
TELUS – transforming our cultureTELUS – transforming our culture
38
Web enabled 2009, 2007, 2005, 2004, 2003 ASTD BEST awards
Rankings #7, #6, #3 worldwide
Named one of Canada’s 10 Most Admired Corporate Cultures for 2009
TELUS – transforming our cultureTELUS – transforming our culture
39
2000 Recent
Practises Multiple systems, practices and cultures
More unified systems, practices and cultures e.g. Amdocs billing systems consolidations
(wireline and wireless) Consistent 4 team values drive decisions
and actions
Training and development
Traditional No
benchmarking
Economic Social Environmental
Corporate GovernanceCorporate Governance
CSR
TELUS approach to Corporate Social ResponsibilityTELUS approach to Corporate Social Responsibility
40
Strong corporate governance provides necessary foundation for CSR leadership
Strong corporate governance provides necessary foundation for CSR leadership
Ethical conduct
Independent and effective Board
Accountability to shareholders
Internal controls and financial reporting
External and internal assurance
Reasonable executive compensation
For our economyFor our economy For our societyFor our society For our environmentFor our environment
• Impact of TELUS operations • Product life-cycle
responsibility• Influence in supply chain• Help customers minimize their
impacts• Complete climate change
strategy
• Sustainable revenue
generation and ROI• Robust internal financial
controls and disclosure
mechanisms• Investment in technology
research and development• Contribution to corporate tax
base• Contribution to sustainable
National economic growth
Communities and customers• Investment through TELUS
Community Boards• Strategic partnerships• Philanthropy & volunteerism• Social impacts of our products
and services• Customer satisfaction
Team members• Recruitment, retention, and
development• Engagement and diversity• Labour relations• Health and safety
becoming a leading corporate citizenbecoming a leading corporate citizen
41
TELUS must incorporate CSR into key business decisionsTELUS must incorporate CSR into key business decisions
TELUS and Corporate Social Responsibility (CSR)TELUS and Corporate Social Responsibility (CSR)
2000 Basic reporting Limited disclosure
2009 TELUS an internationally
recognized leader in CSR
42
Transforming TELUS’ CSR strategyTransforming TELUS’ CSR strategy
Only North American telco on DJSI World Index for 9 consecutive years
Only 1 of 11 Canadian companies listed
Nine Community Boards across Canada- Local and TELUS Community Leaders- $4.1M to be donated in 2009
Year-round team volunteerism and giving plus- 2009 TELUS Day of Service: over 9000
participants in over 150 activities- $7.1M being donated in 2009 through team
donations and TELUS matches
Corporate philanthropic endeavours - $43M committed to science centres - Upopolis social networking for children’s
hospitals- TELUS Walk to Cure Diabetes
2000 2009Community Investment & Engagement
Year-round team volunteerism and giving programs
$7.8M donated
investment in our communitiesinvestment in our communities
43
Since 2000 TELUS and team members contributed $137M to charitable organizations & 2.6 million volunteer hours
Since 2000 TELUS and team members contributed $137M to charitable organizations & 2.6 million volunteer hours
2000 Recent
Annual Report Disclosure
Best in Comm. sector in Canada
2 years in a row, overall award of disclosure excellence in Canada
Annual report ranked 3rd best in world in 2009 and 2008 (1st in world 2007)
Corporate Governance
Good but not recognized externally
Honourable mention for excellence in corporate governance disclosure in 2008 (Best in 2007)
Board of Directors
16 - regionally based
63% in AB/BC
13 - nationally balanced
46% in AB/BC
TELUS – disclosure and governance excellenceTELUS – disclosure and governance excellence
44
Financial and valuation review
This slide deck and our answers to questions contain statements about expected future events and financial and operating results of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results and events to differ materially from that expressed in the forward-looking statements. Accordingly our comments are subject to the disclaimer and qualified by the assumptions (including assumptions for 2009 guidance and a preliminary assessment of expected 2010 capital expenditure levels), qualifications and risk factors (including those associated with the deployment and operation of the new national high-speed packet access network and associated introduction of new products, services and systems) referred to in the Management’s discussion and analysis in the 2008 annual report, and in the 2009 first, second and third quarter reports. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual targets and guidance.
TELUS forward looking statementsTELUS forward looking statements
$3.6B
200912 mo. June
47
EBITDA evolutionEBITDA evolution
Executing strategy drives wireless growth,now 55% of operating profit
Executing strategy drives wireless growth,now 55% of operating profit
12 mo. Sept2000
$2.3B
Wireless17%
Wireline83%
Wireless55%
Wireline45%
48
Wireless earnings and cash flow growthEBITDA ($M)
EBITDA less capex ($M)
357
530
817
1,144
1,445
1,7531,906
(288)
70
457
790
1,040
1,326 1,355
2001 2002 2003 2004 2005 2006 2007
2,005
1,457
2008
strategic focus yields strong resultsstrategic focus yields strong results
Continued focus on profitable customer growthContinued focus on profitable customer growth
2009E*
1,925
1,150
* See forward looking statement caution
49
Macroeconomic factors 2000 → 2009 2000 -Tech bubble burst destroyed over $100B in North American telecom
value 2001 - Corp governance crisis – increased cost of financing and regulatory
e.g. Sarbanes-Oxley (SOX) 2007 - Income Trust conversion decision destroyed over $3B in Canadian
telecom shareholder value 2008/2009 – Credit crisis and global recession impacted ability and cost to
finance operations
Systemic industry trends 2000 → 2009 Long Distance erosion
Reduced $480M of high margin revenue since 2001 at TELUS Local line erosion due to technology substitution and competition
Reduced $550M of revenue since 2000 at TELUS
managing through challenging timesmanaging through challenging times
Achieving financial success despite adversityAchieving financial success despite adversity
50
Adverse regulatory decisions 2000 → 2009 Contribution payments & price caps ~$350M negative EBITDA impact to TELUS AWS auction proceeds: $4.25 billion
3 times original expectations for three major wireless companies Incumbents paid 40% premium to new entrants TELUS paid $882M in 2008
TELUS Specific factor 2000 → 2009 Labour unrest and work disruptions 2004 to 2005
managing through challenging timesmanaging through challenging times
Achieving financial success despite adversityAchieving financial success despite adversity
51
TELUS capital expendituresTELUS capital expenditures
Over $16.8 B invested into core businesses in CanadaOver $16.8 B invested into core businesses in Canada
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E*
Wireline
Wireless
$1.75 B
Expected 2009$2.25 B
$1.69 B
$1.25 B $1.32 B $1.32 B
$1.62 B$1.77 B
$1.86 B$2.1 B
* See forward looking statement caution
2000 2009*
Net Debt to EBITDA
Long-term policy guidelines
3.5x
N/A
1.9x
1.5x – 2.0x
EBITDA interest coverage ratio 10.7x 9.0x
Return on Equity 10% 15%
Dividend Payout ratio guideline N/A 45% - 55% of sustainable earnings
TELUS – building financial strengthTELUS – building financial strength
52
Long term policies support strong investment grade credit ratings
Long term policies support strong investment grade credit ratings
* 12 months trailing Sept. 30. See forward looking statement caution
53
361
* Midpoint of 2009E free cash flow, including cash pension contribution. See forward looking statement.
2009 - impacted by increased capex, pension and restructuring costs, and start of cash taxes
Free cash flow after spectrum purchases ($M)
Wireless spectrum purchased ($M)1,443
2003
776
2004
1,167
2006 2007
1,388
2002
2009E*
585
2008
361
1,243
(910)
2001
(1,266)
2005
1,345
1,336
(249)
TELUS generating strong free cash flowTELUS generating strong free cash flow
2000
144
53
5.5B
returning cash to TELUS shareholdersreturning cash to TELUS shareholders
Total return of $5.1 billion to shareholders over past 5 years or approx. $16 per shareTotal return of $5.1 billion to shareholders
over past 5 years or approx. $16 per share54
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
NCIB
Dividends
$340 M $330 M
$140 M $170 M
$330 M
$1.20 B $1.21 B$1.27 B
$860 M
$600 M
55
1 TELUS 22%2 BCE 7%3 Portugal Tel -7%4 New Zealand Tel -12%5 Swisscom -14%6 Singapore Tel -17%7 Verizon -22%8 Telstra -27%9 Hellenic Tel -30%
10 Telefonica -33%11 AT&T -36%12 Telecom Italia -41%13 Deutsche Telekom -75%14 France Telecom -76%15 NTT Corp -76%16 BT Group PLC -78%17 Royal KPN -84%18 PCCW -94%
Total return (including reinvested dividends) Dec 31, 1999 to Dec 31, 2004
TELUS #1 globally vs. MSCI incumbent peers over 5 yearsTELUS #1 globally vs. MSCI incumbent peers over 5 years
56
1 TELUS 64%2 BCE 8%3 Singapore Tel -5%4 Hellenic Tel -5%5 New Zealand Tel -6%6 Portugal Tel -9%7 Swisscom -18%8 Telefonica -34%9 AT&T -36%
10 Telstra -38%11 Verizon -39%12 Telecom Italia -50%13 BT Group PLC -74%14 NTT Corp -76%15 Deutsche Telekom -78%16 France Telecom -78%17 Royal KPN -80%18 PCCW -94%
Total return (including reinvested dividends) Dec 31, 1999 to Dec 31, 2005
TELUS #1 globally vs. MSCI incumbent peers over 6 yearsTELUS #1 globally vs. MSCI incumbent peers over 6 years
57
1 TELUS 88%2 BCE 28%3 Singapore Tel 27%4 Hellenic Tel 20%5 Portugal Tel 10%6 AT&T -2%7 Swisscom -4%8 Telefonica -13%9 New Zealand Tel -14%
10 Verizon -18%11 Telstra -30%12 Telecom Italia -50%13 BT Group PLC -64%14 Royal KPN -73%15 NTT Corp -75%16 Deutsche Telekom -77%17 France Telecom -77%18 PCCW -94%
Total return (including reinvested dividends) Dec 31, 1999 to Dec 31, 2006
TELUS #1 globally vs. MSCI incumbent peers over 7 yearsTELUS #1 globally vs. MSCI incumbent peers over 7 years
58
1 TELUS 79%2 BCE 69%3 Singapore Tel 64%4 Hellenic Tel 36%5 Portugal Tel 25%6 Telefonica 23%7 AT&T 18%8 Verizon 0%9 Swisscom -5%
10 New Zealand Tel -14%11 Telstra -16%12 Telecom Italia -51%13 BT Group PLC -65%14 Royal KPN -67%15 France Telecom -72%16 Deutsche Telekom -74%17 NTT Corp -74%18 PCCW -94%
Total return (including reinvested dividends) Dec 31, 1999 to Dec 31, 2007
TELUS #1 globally vs. MSCI incumbent peers over 8 yearsTELUS #1 globally vs. MSCI incumbent peers over 8 years
TELUS #1 globally vs. MSCI incumbent peers over 9 yearsTELUS #1 globally vs. MSCI incumbent peers over 9 years
1 TELUS 40%2 BCE 10%3 Singapore Tel 9%4 Telefonica -8%5 Portugal Tel -8%6 AT&T -15%7 Verizon -18%8 Swisscom -23%9 Telstra -27%10 Hellenic Tel -32%11 New Zealand Tel -50%12 Royal KPN -71%13 Telecom Italia -72%14 France Telecom -75%15 NTT Corp -75%16 Deutsche Telekom -80%17 BT Group PLC -81%18 PCCW -95%
Total return (including reinvested dividends) Dec 31, 1999 through Dec 31, 2008
59
TELUS #2 globally vs. MSCI incumbent peers over 10 yearsTELUS #2 globally vs. MSCI incumbent peers over 10 years
Total return (including reinvested dividends) Dec 31, 1999 to Sept 30, 2009 60
1 Singapore Tel 42%2 TELUS 36%3 Portugal Tel 21%4 BCE 21%5 Telefonica 12%6 Swisscom -10%7 AT&T -16%8 Verizon -23%9 Hellenic Tel -31%10 Telstra -33%11 New Zealand Tel -38%12 Royal KPN -67%13 Telecom Italia -69%14 France Telecom -75%15 NTT Corp -79%16 Deutsche Telekom -81%17 BT Group PLC -82%18 PCCW -96%
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