# EDGAR Filing Document

**Accession Number:** 0000868675
**File Stem:** 0001104659-25-108120
**Filing Date:** 2025-11
**Character Count:** 553169
**Document Hash:** 02bb4f139a354c835cbc63c068a1e5dd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-108120.hdr.sgml**: 20251107

**ACCESSION NUMBER**: 0001104659-25-108120

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 5

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251107

**DATE AS OF CHANGE**: 20251107

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TELUS CORP
- **CENTRAL INDEX KEY:** 0000868675
- **STANDARD INDUSTRIAL CLASSIFICATION:** RADIO TELEPHONE COMMUNICATIONS [4812]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 980361292
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15144
- **FILM NUMBER:** 251460466

**BUSINESS ADDRESS:**
- **STREET 1:** 510 W. GEORGIA STREET
- **STREET 2:** 23RD FLOOR
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6B 0M3
- **BUSINESS PHONE:** 604-697-8044

**MAIL ADDRESS:**
- **STREET 1:** 510 W. GEORGIA STREET
- **STREET 2:** 23RD FLOOR
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6B 0M3

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**<br> **WASHINGTON, D.C. 20549**

**FORM 6-K**

**Report of Foreign Private Issuer<br> Pursuant to Rule 13a-16 or 15d-16<br> under the Securities Exchange Act of 1934**

------

**For the month of November 2025<br> Commission File Number 001-15144**

**TELUS CORPORATION**<br> (Translation of registrant's name into English)

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**23rd Floor, 510 West Georgia Street<br> Vancouver, British Columbia V6B 0M3<br> Canada**<br> (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 🗹

**Incorporation by Reference**

This report on Form 6-K and the exhibits hereto are specifically incorporated by reference into the registration statement on Form F-10 (File No. [333-281233](https://www.sec.gov/Archives/edgar/data/868675/000110465924085485/tm2420379d1_f10ef.htm)), the registration statement on Form F-3D (File No. [333-258770](https://www.sec.gov/Archives/edgar/data/868675/000110465921104265/tm2124333d1_f3d.htm)) and the registration statements on Form S-8 (File Nos. [333-268186](https://www.sec.gov/Archives/edgar/data/868675/000110465922114968/tm2229199d1_s8.htm), [333-181463](https://www.sec.gov/Archives/edgar/data/868675/000110465912037823/a12-12219_1s8.htm) and[333-125486](https://www.sec.gov/Archives/edgar/data/868675/000095017205001817/ny512186.txt)), of TELUS Corporation.

**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.

---

| | | |
|:---|:---|:---|
| **TELUS CORPORATION** | **TELUS CORPORATION** | **TELUS CORPORATION** |
| By: | /s/ Andrea Wood | /s/ Andrea Wood |
|  | Name: | Andrea Wood |
|  | Title: | Executive Vice President and Chief Legal and Governance Officer |

---

Date: November 7, 2025

**Exhibit Index**

---

| | |
|:---|:---|
| **Exhibit Number** | **Description of Document** |
| [99.1](tm2525674d1_ex99-1.htm) | [Consolidated Financial Statements](tm2525674d1_ex99-1.htm) |
| [99.2](tm2525674d1_ex99-2.htm) | [Management's Discussion and Analysis](tm2525674d1_ex99-2.htm) |

---

## Exhibit 99.1

**Exhibit 99.1**

**TELUS CORPORATION**<br>**CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**<br>**(UNAUDITED)**<br>**SEPTEMBER 30, 2025**<br>

condensed interim consolidated statements of income and other comprehensive income (unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | Three months | Three months | Nine months | Nine months |
| Periods ended September 30 (millions except per share amounts) | Note | **2025** | 2024 | **2025** | 2024 |
| **OPERATING REVENUES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service |  | $**4507** | $4410 | $**13441** | $13081 |
| &nbsp;&nbsp;&nbsp;Equipment |  | **560** | 632 | **1675** | 1727 |
| &nbsp;&nbsp;&nbsp;Operating revenues (arising from contracts with customers) | 6 | **5067** | 5042 | **15116** | 14808 |
| Other income | 7 | **39** | 57 | **129** | 197 |
| Operating revenues and other income |  | **5106** | 5099 | **15245** | 15005 |
| **OPERATING EXPENSES** |  |  |  |  |  |
| Goods and services purchased | 16 | **1942** | 1868 | **5647** | 5503 |
| Employee benefits expense | *8, 16* | **1411** | 1475 | **4422** | 4432 |
| Depreciation | 17 | **621** | 597 | **1814** | 1895 |
| Amortization of intangible assets | 18 | **390** | 371 | **1193** | 1130 |
| Impairment of goodwill | 18 | **—** |  | **500** |  |
|  |  | **4364** | 4311 | **13576** | 12960 |
| **OPERATING INCOME** |  | **742** | 788 | **1669** | 2045 |
| Financing costs | 9 | **154** | 479 | **871** | 1255 |
| **INCOME BEFORE INCOME TAXES** |  | **588** | 309 | **798** | 790 |
| Income taxes | 10 | **157** | 52 | **311** | 172 |
| **NET INCOME** |  | **431** | 257 | **487** | 618 |
| **OTHER COMPREHENSIVE INCOME** | **11** |  |  |  |  |
| **Items that may subsequently be reclassified to income** |  |  |  |  |  |
| Change in unrealized fair value of derivatives designated as cash flow hedges |  | **30** | (21) | **16** | 11 |
| Foreign currency translation adjustment arising from translating financial statements of foreign operations |  | **59** | 23 | **41** | 64 |
|  |  | **89** | 2 | **57** | 75 |
| **Items never subsequently reclassified to income** |  |  |  |  |  |
| Change in measurement of investment financial assets |  | **1** | 1 | **8** | (2) |
| Employee defined benefit plan re-measurements |  | **16** | (20) | **42** | 31 |
|  |  | **17** | (19) | **50** | 29 |
|  |  | **106** | (17) | **107** | 104 |
| **COMPREHENSIVE INCOME** |  | $**537** | $240 | $**594** | $722 |
| **NET INCOME (LOSS) ATTRIBUTABLE TO:** |  |  |  |  |  |
| Common Shares |  | $**493** | $280 | $**821** | $635 |
| Non-controlling interests | 28(b) | **(62)** | (23) | **(334)** | (17) |
|  |  | $**431** | $257 | $**487** | $618 |
| **COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:** |  |  |  |  |  |
| Common Shares |  | $**567** | $271 | $**941** | $717 |
| Non-controlling interests | 28(b) | **(30)** | (31) | **(347)** | 5 |
|  |  | $**537** | $240 | $**594** | $722 |
| **NET INCOME PER COMMON SHARE** | 12 |  |  |  |  |
| Basic |  | $**0.32** | $0.19 | $**0.54** | $0.43 |
| Diluted |  | $**0.32** | $0.19 | $**0.54** | $0.43 |
| **TOTAL WEIGHTED AVERAGE COMMON SHARES OUTSTANDING** |  |  |  |  |  |
| Basic |  | **1535** | 1492 | **1525** | 1483 |
| Diluted |  | **1543** | 1497 | **1531** | 1488 |

---

*The accompanying notes are an integral part of these condensed interim consolidated financial statements.*

---

| | |
|:---|:---|
| **2** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

condensed interim consolidated statements of financial position (unaudited)

---

| | | | |
|:---|:---|:---|:---|
| As at (millions) | Note | **September 30,<br> 2025** | December 31,<br> 2024 |
| **ASSETS** |  |  |  |
| **Current assets** |  |  |  |
| Cash and temporary investments, net |  | $**1827** | $869 |
| Accounts receivable | 6(b) | **3644** | 3689 |
| Income and other taxes receivable |  | **74** | 146 |
| Inventories | 1(c) | **455** | 629 |
| Contract assets | 6(c) | **445** | 465 |
| Costs incurred to obtain or fulfill contracts with customers | 20 | **395** | 366 |
| Prepaid maintenance and other |  | **511** | 403 |
| Current derivative assets | 4(d) | **37** | 65 |
|  |  | **7388** | 6632 |
| **Non-current assets** |  |  |  |
| Property, plant and equipment, net | 17 | **17673** | 17337 |
| Intangible assets, net | 18 | **20460** | 20593 |
| Goodwill, net | 18 | **10477** | 10564 |
| Contract assets | 6(c) | **257** | 325 |
| Other long-term assets | 20 | **2608** | 2577 |
|  |  | **51475** | 51396 |
|  |  | $**58863** | $58028 |
| **LIABILITIES AND OWNERS' EQUITY** |  |  |  |
| **Current liabilities** |  |  |  |
| Short-term borrowings | 22 | $**922** | $922 |
| Accounts payable and accrued liabilities | 23 | **3556** | 3630 |
| Income and other taxes payable |  | **153** | 142 |
| Dividends payable | 13 | **639** | 605 |
| Advance billings and customer deposits | 24 | **977** | 1039 |
| Provisions | 25 | **293** | 241 |
| Current maturities of long-term debt | 26 | **3200** | 3246 |
| Current derivative liabilities | 4(d) | **13** | 11 |
|  |  | **9753** | 9836 |
| **Non-current liabilities** |  |  |  |
| Provisions | 25 | **729** | 686 |
| Long-term debt | 26 | **25789** | 25608 |
| Other long-term liabilities | 27 | **933** | 869 |
| Deferred income taxes |  | **4137** | 4231 |
|  |  | **31588** | 31394 |
| **Liabilities** |  | **41341** | 41230 |
| **Owners' equity** |  |  |  |
| Common equity | 28 | **15873** | 15620 |
| Non-controlling interests |  | **1649** | 1178 |
|  |  | **17522** | 16798 |
|  |  | $**58863** | $58028 |
| Contingent liabilities | *29* |  |  |

---

*The accompanying notes are an integral part of these condensed interim consolidated financial statements.*

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **3** |

---

condensed interim consolidated statements of changes in owners' equity (unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Common equity | Common equity | Common equity | Common equity | Common equity | Common equity | | |
|  |  | Equity contributed | Equity contributed | Equity contributed | | Accumulated | | | |
|  |  | Common Shares *(Note 28)* | Common Shares *(Note 28)* |  |  | other |  | Non- |  |
| (millions) | Note | Number of<br> shares | Share <br> capital | Contributed<br> surplus | Retained<br> earnings | comprehensive<br> income (loss) | Total | controlling<br> interests | Total |
| Balance as at January 1, 2024 |  | 1468 | $12324 | $997 | $2835 | $(44) | $16112 | $1190 | $17302 |
| Net income (loss) |  |  |  |  | 635 |  | 635 | (17) | 618 |
| Other comprehensive income | 11 |  |  |  | 31 | 51 | 82 | 22 | 104 |
| Dividends | 13 |  |  |  | (1709) |  | (1709) |  | (1709) |
| Dividends reinvested and optional cash payments | 13(b), 14(c) | 24 | 508 |  |  |  | 508 |  | 508 |
| Equity accounted share-based compensation |  |  | 2 | 85 |  |  | 87 | 4 | 91 |
| Issue of Common Shares in business combination |  |  | 7 |  |  |  | 7 |  | 7 |
| Change in ownership interests of subsidiaries | 28(b) |  |  | 49 |  |  | 49 | (43) | 6 |
| Balance as at September 30, 2024 |  | 1492 | $12841 | $1131 | $1792 | $7 | $15771 | $1156 | $16927 |
| Balance as at January 1, 2025 |  | 1504 | $13124 | $1081 | $1520 | $(105) | $15620 | $1178 | $16798 |
| Net income (loss) |  | **—** | **—** | **—** | **821** | **—** | **821** | **(334)** | **487** |
| Other comprehensive income | 11 | **—** | **—** | **—** | **42** | **78** | **120** | **(13)** | **107** |
| Dividends | 13 | **—** | **—** | **—** | **(1883)** | **—** | **(1883)** | **—** | **(1883)** |
| Dividends reinvested and optional cash payments | 13(b), 14(c) | **31** | **635** | **—** | **—** | **—** | **635** | **—** | **635** |
| Equity accounted share-based compensation | 14(b) | **—** | **2** | **101** | **—** | **—** | **103** | **1** | **104** |
| Change in ownership interests of subsidiaries | 28(b) | **—** | **—** | **457** | **—** | **—** | **457** | **817** | **1274** |
| Balance as at September 30, 2025 |  | **1535** | $**13761** | $**1639** | $**500** | $**(27)** | $**15873** | $**1649** | $**17522** |

---

*The accompanying notes are an integral part of these condensed interim consolidated financial statements.*

---

| | |
|:---|:---|
| **4** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

condensed interim consolidated statements of cash flows (unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months | Three months | Nine months | Nine months |
| Periods ended September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| **OPERATING ACTIVITIES** |  |  |  |  |
| Net income | $**431** | $257 | $**487** | $618 |
| Adjustments to reconcile net income to cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **1011** | 968 | **3007** | 3025 |
| &nbsp;&nbsp;&nbsp;Impairment of goodwill (*Note 18*) | **—** |  | **500** |  |
| &nbsp;&nbsp;&nbsp;Deferred income taxes (*Note 10*) | **(82)** | (117) | **(171)** | (285) |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense, net (*Note 14(a)*) | **42** | 44 | **121** | 110 |
| &nbsp;&nbsp;&nbsp;Net employee defined benefit plans expense (*Note 15(a)*) | **16** | 16 | **45** | 50 |
| &nbsp;&nbsp;&nbsp;Employer contributions to employee defined benefit plans (*Note 15(a)*) | **(6)** | (2) | **(16)** | (16) |
| &nbsp;&nbsp;&nbsp;Gain on contributions of real estate to joint ventures (*Note 7, 21*) | **(13)** | (49) | **(21)** | (102) |
| &nbsp;&nbsp;&nbsp;(Income) loss from equity accounted investments (*Note 7, 21*) | **1** | 3 | **(1)** | 13 |
| &nbsp;&nbsp;&nbsp;Gain on purchase of long-term debt (*Note 9, 26(b)*) | **(222)** |  | **(222)** |  |
| &nbsp;&nbsp;&nbsp;Other | **(99)** | 6 | **(133)** | 14 |
| &nbsp;&nbsp;&nbsp;Net change in non-cash operating working capital (*Note 31(a)*) | **414** | 306 | **140** | 343 |
| Cash provided by operating activities | **1493** | 1432 | **3736** | 3770 |
| **INVESTING ACTIVITIES** |  |  |  |  |
| Cash payments for capital assets, excluding spectrum licences (*Note 31(a)*) | **(634)** | (679) | **(1886)** | (2157) |
| Cash payments for spectrum licences (*Note 18(a)*) | **—** |  | **—** | (620) |
| Cash payments for acquisitions, net (*Note 18(b)*) | **(3)** | (91) | **(464)** | (258) |
| Advances to, and investment in, real estate joint ventures and associates (*Note 21*) | **(1)** | (7) | **(1)** | (12) |
| Real estate joint venture receipts (*Note 21*) | **—** | 2 | **1** | 5 |
| Proceeds on disposition | **3** |  | **76** | 21 |
| Investment in portfolio investments and other | **(25)** | (7) | **(81)** | (8) |
| Cash used by investing activities | **(660)** | (782) | **(2355)** | (3029) |
| **FINANCING ACTIVITIES** (*Note 31(b)*)** |  |  |  |  |
| Dividends paid to holders of Common Shares (*Note 13(a)*) | **(408)** | (384) | **(1215)** | (1174) |
| Issue (repayment) of short-term borrowings, net | **3** | (118) | **12** | 822 |
| Long-term debt issued (*Note 18(b), 26*) | **1381** | 1294 | **9513** | 5083 |
| Redemptions and repayment of long-term debt (*Note 26*) | **(4910)** | (1529) | **(9948)** | (5480) |
| Equity of subsidiary issued to non-controlling interest (*Note 28(b)*) | **1261** |  | **1261** |  |
| Shares of subsidiary purchased from non-controlling interests, net | **—** | (25) | **—** | (25) |
| Other | **(15)** | (1) | **(46)** | (17) |
| Cash used by financing activities | **(2688)** | (763) | **(423)** | (791) |
| **CASH POSITION** |  |  |  |  |
| Increase (decrease) in cash and temporary investments, net | **(1855)** | (113) | **958** | (50) |
| Cash and temporary investments, net, beginning of period | **3682** | 927 | **869** | 864 |
| Cash and temporary investments, net, end of period | $**1827** | $814 | $**1827** | $814 |
| **SUPPLEMENTAL DISCLOSURE OF OPERATING CASH FLOWS** |  |  |  |  |
| Interest paid | $**(399)** | $(362) | $**(1078)** | $(1011) |
| Interest received | $**16** | $9 | $**38** | $30 |
| Income taxes paid, net | $**(77)** | $(63) | $**(374)** | $(258) |

---

*The accompanying notes are an integral part of these condensed interim consolidated financial statements.*

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **5** |

---

notes to condensed interim consolidated financial statements (unaudited)

**SEPTEMBER 30, 2025**

TELUS Corporation is one of Canada's largest telecommunications companies, providing a wide range of technology solutions, which include: mobile and fixed voice and data telecommunications services and products; healthcare services, software and technology solutions (including employee and family assistance programs and benefits administration); agriculture and consumer goods services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); and digital experiences. Data services include: internet protocol; television; hosting, managed information technology and cloud-based services; and home and business security and automation.

TELUS Corporation was incorporated under the Company Act (British Columbia) on October 26, 1998, under the name BCT.TELUS Communications Inc. (BCT). On January 31, 1999, pursuant to a court-approved plan of arrangement under the Canada Business Corporations Act among BCT, BC TELECOM Inc. and the former Alberta-based TELUS Corporation (TC), BCT acquired all of the shares of BC TELECOM Inc. and TC in exchange for Common Shares and Non-Voting Shares of BCT, and BC TELECOM Inc. was dissolved. On May 3, 2000, BCT changed its name to TELUS Corporation and in February 2005, TELUS Corporation transitioned under the Business Corporations Act (British Columbia), successor to the Company Act (British Columbia). TELUS Corporation maintains its registered office at Floor 5, 510 West Georgia Street, Vancouver, British Columbia, V6B 0M3.

The terms "TELUS", "we", "us", "our" or "ourselves" refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries. Our principal subsidiaries are: TELUS Communications Inc., in which, as at September 30, 2025, we have a 100% equity interest; TELUS Health Inc., in which, as at September 30, 2025, we have a 100% equity interest; and TELUS International (Cda) Inc. (d.b.a. TELUS Digital Experience), in which, as at September 30, 2025, we have a 57.0% equity interest, and as at November 7, 2025, we have a 100% equity interest, as discussed further in *Note 28(b)*.

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| | | |
|:---|:---|:---|
| Notes to consolidated financial statements | Notes to consolidated financial statements | Page |
| General application | General application |  |
| 1. | Condensed interim consolidated financial statements | 7 |
| 2. | Accounting policy developments | 8 |
| 3. | Capital structure financial policies | 11 |
| 4. | Financial instruments | 15 |
| Consolidated results of operations focused | Consolidated results of operations focused |  |
| 5. | Segment information | 22 |
| 6. | Revenue from contracts with customers | 25 |
| 7. | Other income | 26 |
| 8. | Employee benefits expense | 26 |
| 9. | Financing costs | 27 |
| 10. | Income taxes | 27 |
| 11. | Other comprehensive income | 29 |
| 12. | Per share amounts | 31 |
| 13. | Dividends per share | 31 |
| 14. | Share-based compensation | 32 |
| 15. | Employee future benefits | 35 |
| 16. | Restructuring and other costs | 37 |
| Consolidated financial position focused | Consolidated financial position focused |  |
| 17. | Property, plant and equipment | 38 |
| 18. | Intangible assets and goodwill | 39 |
| 19. | Leases | 41 |
| 20. | Other long-term assets | 42 |
| 21. | Real estate joint ventures and investments in associates | 42 |
| 22. | Short-term borrowings | 44 |
| 23. | Accounts payable and accrued liabilities | 44 |
| 24. | Advance billings and customer deposits | 45 |
| 25. | Provisions | 46 |
| 26. | Long-term debt | 47 |
| 27. | Other long-term liabilities | 53 |
| 28. | Owners' equity | 53 |
| 29. | Contingent liabilities | 55 |
| Other | Other |  |
| 30. | Related party transactions | 57 |
| 31. | Additional statement of cash flow information | 59 |

---

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| | |
|:---|:---|
| **6** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

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notes to condensed interim consolidated financial statements (unaudited)

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| | |
|:---|:---|
| **1** | **condensed interim consolidated financial statements** |

---

**(a)** **Basis of presentation** 

The notes presented in our condensed interim consolidated financial statements include only significant events and transactions and are not fully inclusive of all matters normally disclosed in our annual audited financial statements; thus, our interim consolidated financial statements are referred to as condensed. Our condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2024.

Our condensed interim consolidated financial statements are expressed in Canadian dollars and follow the same accounting policies and methods of their application as set out in our consolidated financial statements for the year ended December 31, 2024, other than as set out in *Note 2(a)*. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS<sup>®</sup> Accounting Standards) and Canadian generally accepted accounting principles. Our condensed interim consolidated financial statements comply with International Accounting Standard 34, *Interim Financial Reporting* and reflect all adjustments (which are of a normal recurring nature) that are, in our opinion, necessary for a fair statement of the results for the interim periods presented.

These consolidated financial statements for the three-month and nine-month periods ended September 30, 2025, were authorized by our Board of Directors for issue on November 7, 2025.

**(b)** **Hedge accounting** 

*General*

We apply hedge accounting to the financial instruments used to establish: designated currency hedging relationships for certain U.S. dollar-denominated future purchase commitments and debt repayments; and, designated electrical power purchase price hedging relationships.

The purpose of hedge accounting, in respect of our designated hedging relationships, is to ensure that counterbalancing gains and losses are recognized in the same periods. We have chosen to apply hedge accounting, as we believe that it more faithfully depicts the economic substance of the underlying transactions.

The application of hedge accounting requires a high correlation (indicating effectiveness) in the offsetting changes in the risk-associated values of the financial instruments (the hedging items) used to establish the designated hedging relationships and all, or a part, of the asset, liability or transaction with an identified risk exposure that we have taken steps to modify (the hedged items).

*Hedge accounting – derivatives used to manage currency risk; derivatives used to manage interest rate risk*

The anticipated effectiveness of designated hedging relationships is assessed at inception and their actual effectiveness is assessed for each subsequent reporting period. We consider a designated hedging relationship to be effective if the following critical terms match between the hedging item and the hedged item: the notional amount of the hedging item and the principal amount of the hedged item; maturity dates; payment dates; and interest rate index (if, and as, applicable).

Any ineffectiveness, such as arising from differences between the notional amount of the hedging item and the principal amount of the hedged item, or from a previously effective designated hedging relationship becoming ineffective, is reflected in the Consolidated statements of income and other comprehensive income as Financing costs if in respect of long-term debt and as Goods and services purchased if in respect of U.S. dollar-denominated future purchase commitments, as set out in *Note 4(e)*.

*Hedge accounting – derivatives use to manage other price risk (see Note 2(a))*

The anticipated effectiveness of designated hedging relationships is assessed at inception (January 1, 2025, for virtual power purchase agreements entered into prior to fiscal 2025) and their actual effectiveness is assessed for each subsequent reporting period. We consider a virtual power purchase agreement designated hedging relationship to be effective if the following critical terms match between the hedging item and the hedged item: the variable nature-dependent electricity notional amount of the hedging item and the variable notional amount of the hedged item; maturity dates; and payment dates.

Any ineffectiveness, such as arising from differences between electricity consumed that is priced using the Alberta Interconnected Electrical System pool price, and that which is priced otherwise, or from a previously effective designated hedging relationship becoming ineffective, is reflected in the Consolidated statements of income and other comprehensive income as Goods and services purchased, as set out in *Note 4(e)*.

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| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **7** |

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notes to condensed interim consolidated financial statements (unaudited)

*Hedging assets and liabilities*

In applying hedge accounting, a hedge value is recorded in the Consolidated statements of financial position representing the fair value of the hedging items. The net difference, if any, between amounts recognized in net income determination and amounts necessary to reflect the fair value of the designated cash flow hedging items recorded in the Consolidated statements of financial position is recognized as a component of Other comprehensive income, as set out in *Note 11*.

**(c)** **Inventories** 

Inventories primarily consist of mobile handsets, parts and accessories, which totalled $363 million as at September 30, 2025 (December 31, 2024 – $528 million), and communications equipment held for resale. These inventories are valued at the lower of cost and net realizable value, with cost being determined on an average cost basis. Costs of goods sold for the three-month and nine-month periods ended September 30, 2025, totalled $0.6 billion (2024 – $0.6 billion) and $1.7 billion (2024 – $1.7 billion), respectively.

---

| | |
|:---|:---|
| **2** | **accounting policy developments** |

---

**(a)** **Initial application of standards, interpretations and amendments to standards and interpretations in the reporting period** 

· In December 2024, the International Accounting Standards Board issued *Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7*, which amended IFRS 9, *Financial Instruments*, and IFRS 7, *Financial Instruments, Disclosures*. These amendments, among other matters, will
now allow for hedge accounting to be applied in instances where there is variability in the underlying amount of electricity because the
source of electricity generation depends on uncontrollable natural conditions (for example, the weather). Specifically, if we were to
choose to apply hedge accounting, this would affect the accounting for the unrealized forward element of our pre-existing virtual power
purchase agreements, which were first entered into in 2022. The measurement of the fair value of the unrealized forward element of our
virtual power purchase agreements is unaffected by the amendments. The amendments are effective for annual reporting periods beginning
on or after January 1, 2026, with earlier adoption permitted.

In accordance with the permitted transitional provisions, effective January 1, 2025, we have prospectively designated our pre-existing virtual power purchase agreements, which are contracts for differences, as held for hedging and have applied hedge accounting; this will have the effect of the net change in the unrealized forward element of our virtual power purchase agreements arising on or after January 1, 2025, being included in the determination of other comprehensive income. The transitional provisions did not permit retrospective designation of our pre-existing virtual power purchase agreements.

---

| | |
|:---|:---|
| **8** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

The effects on the consolidated statement of income and other comprehensive income line items are as set out in the following table.

---

| | | | |
|:---|:---|:---|:---|
| Periods ended September 30, 2025<br> (millions except per share amounts) | Excluding<br> amendments<br> to IFRS 9 and<br> IFRS 7 effects | Amendments<br> to IFRS 9 and<br> IFRS 7 effects | As currently<br> reported |
| **THREE-MONTH** |  |  |  |
| **OPERATING REVENUES** | $5106 | $— | $5106 |
| **OPERATING EXPENSES** |  |  |  |
| Goods and services purchased | 1943 | (1) | 1942 |
| Employee benefits expense | 1411 |  | 1411 |
| Depreciation | 621 |  | 621 |
| Amortization of intangible assets | 390 |  | 390 |
|  | 4365 | (1) | 4364 |
| **OPERATING INCOME** | 741 | 1 | 742 |
| Financing costs | 172 | (18) | 154 |
| **INCOME BEFORE INCOME TAXES** | 569 | 19 | 588 |
| Income taxes | 152 | 5 | 157 |
| **NET INCOME** | $417 | $14 | $431 |
| **OTHER COMPREHENSIVE INCOME** |  |  |  |
| **Items that may subsequently be reclassified to income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in unrealized fair value of derivatives designated as cash flow hedges | $44 | $(14) | $30 |
| **COMPREHENSIVE INCOME** | $537 | $— | $537 |
| **NET INCOME ATTRIBUTABLE TO COMMON SHARES** | $479 | $14 | $493 |
| **NET INCOME PER COMMON SHARE** |  |  |  |
| Basic | $0.31 | $0.01 | $0.32 |
| Diluted | $0.31 | $0.01 | $0.32 |
| **NINE-MONTH** |  |  |  |
| **OPERATING REVENUES** | $15245 | $— | $15245 |
| **OPERATING EXPENSES** |  |  |  |
| Goods and services purchased | 5650 | (3) | 5647 |
| Employee benefits expense | 4422 |  | 4422 |
| Depreciation | 1814 |  | 1814 |
| Amortization of intangible assets | 1193 |  | 1193 |
| Impairment of goodwill | 500 |  | 500 |
|  | 13579 | (3) | 13576 |
| **OPERATING INCOME** | 1666 | 3 | 1669 |
| Financing costs | 870 | 1 | 871 |
| **INCOME BEFORE INCOME TAXES** | 796 | 2 | 798 |
| Income taxes | 310 | 1 | 311 |
| **NET INCOME** | $486 | $1 | $487 |
| **OTHER COMPREHENSIVE INCOME** |  |  |  |
| **Items that may subsequently be reclassified to income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in unrealized fair value of derivatives designated as cash flow hedges | $17 | $(1) | $16 |
| **COMPREHENSIVE INCOME** | $594 | $— | $594 |
| **NET INCOME ATTRIBUTABLE TO COMMON SHARES** | $820 | $1 | $821 |
| **NET INCOME PER COMMON SHARE** |  |  |  |
| Basic | $0.54 | $— | $0.54 |
| Diluted | $0.54 | $— | $0.54 |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **9** |

---

notes to condensed interim consolidated financial statements (unaudited)

The effects on the consolidated statement of changes in owners' equity line items are as set out in the following table.

---

| | | | |
|:---|:---|:---|:---|
| As at September 30, 2025<br> (millions) | Excluding<br> amendments <br> to IFRS 9 and<br> IFRS 7 effects | Amendments <br> to IFRS 9 and<br> IFRS 7 effects | As currently<br> reported |
| **COMMON EQUITY** |  |  |  |
| Share capital | $13761 | $— | $13761 |
| Contributed surplus | 1639 |  | 1639 |
| Retained earnings | 499 | 1 | 500 |
| Accumulated other comprehensive income (loss) | (26) | (1) | (27) |
|  | $15873 | $— | $15873 |

---

The effects on the consolidated statement of cash flows line items are as set out in the following table.

---

| | | | |
|:---|:---|:---|:---|
| Periods ended September 30, 2025 (millions) | Excluding<br> amendments <br> to IFRS 9 and<br> IFRS 7 effects | Amendments <br> to IFRS 9 and<br> IFRS 7 effects | As currently<br> reported |
| **THREE-MONTH** |  |  |  |
| **OPERATING ACTIVITIES** |  |  |  |
| Net income | $417 | $14 | $431 |
| Deferred income taxes | (87) | 5 | (82) |
| Net-change in non-cash operating working capital | 433 | (19) | 414 |
| All other reconciling items within operating activities | 730 |  | 730 |
| **Cash provided by operating activities** | $1493 | $— | $1493 |
| **NINE-MONTH** |  |  |  |
| **OPERATING ACTIVITIES** |  |  |  |
| Net income | $486 | $1 | $487 |
| Deferred income taxes | (172) | 1 | (171) |
| Net-change in non-cash operating working capital | 142 | (2) | 140 |
| All other reconciling items within operating activities | 3280 |  | 3280 |
| **Cash provided by operating activities** | $3736 | $— | $3736 |

---

---

| | |
|:---|:---|
| **10** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

**(b)** **Standards, interpretations and amendments to standards and interpretations not yet effective and not yet applied** 

· In April 2024, the International Accounting Standards Board issued IFRS 18, *Presentation and Disclosure in the Financial Statements*, which sets out the overall requirements for presentation and disclosures
in the financial statements *.* The new standard will replace IAS 1, *Presentation of Financial Statements*. Although much
of the substance of IAS 1, *Presentation of Financial Statements*, will carry over into the new standard, the new standard incrementally
will:

&nbsp;&nbsp;&nbsp;&nbsp;· With a view to improving comparability amongst entities, require presentation
in the statement of operations of a subtotal for operating profit and a subtotal for profit before financing and income taxes (both subtotals
as defined in the new standard);

&nbsp;&nbsp;&nbsp;&nbsp;· Require disclosure and reconciliation, within a single financial statement
note, of management-defined performance measures that are used in public communications to share management's views of various aspects
of an entity's performance and which are derived from the statement of income and other comprehensive income;

&nbsp;&nbsp;&nbsp;&nbsp;· Enhance the requirements for aggregation and disaggregation of financial
statement amounts; and

&nbsp;&nbsp;&nbsp;&nbsp;· Require limited changes to the statement of cash flows, including elimination
of options for the classification of interest and dividend cash flows.

The new standard is effective for annual reporting periods beginning on or after January 1, 2027, with earlier adoption permitted. We are currently assessing the impacts of the new standard; while there will be a limited shift of where a number of our management-defined performance measures are disclosed and reconciled (primarily a shift from management's discussion and analysis to the financial statements) and where certain cash flows will be categorized in our statements of cash flows (primarily shifting interest paid from operating activities to financing activities), we do not expect that the totality of our financial disclosure will be materially affected by the application of the new standard.

· In May 2024, the International Accounting Standards Board issued *Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)*. The narrow-scope amendments
are to address diversity in accounting practice in respect of: the classification of financial assets with environmental, social and corporate
governance and similar features; and to clarify the date on which a financial asset or financial liability is de-recognized when using
electronic payment systems. The new standard is effective for annual reporting periods beginning on or after January 1, 2026, with
earlier adoption permitted. We are currently assessing the impacts of the new standard but do not expect to be materially affected by
the application of the amendments.

---

| | |
|:---|:---|
| **3** | **capital structure financial policies** |

---

*General*

Our objective when managing financial capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at an acceptable level of risk. In our definition of financial capital, we include:

· Common equity (excluding accumulated other comprehensive income);

· Non-controlling interests;

· Long-term debt (including long-term credit facilities, commercial paper backstopped
by long-term credit facilities and any hedging assets or liabilities associated with long-term debt items, net of amounts recognized in
accumulated other comprehensive income);

· Cash and temporary investments;

· Short-term borrowings (including those arising from securitized trade receivables
and unbilled customer finance receivables and any hedging assets or liabilities associated with short-term borrowings, net of amounts
recognized in accumulated other comprehensive income); and

· Other long-term debt.

We manage our financial capital structure and make adjustments to it in light of changes in economic conditions and the risk characteristics of our business. In order to maintain or adjust our financial capital structure, we may:

· Adjust the amount of dividends paid to holders of Common Shares;

· Adjust the discount at which Common Shares are offered under the Dividend
Reinvestment and Share Purchase Plan;

· Purchase Common Shares for cancellation pursuant to normal course issuer
bids;

· Issue new equity (including Common Shares and subsidiary equity);

· Issue new debt, issue new debt to replace existing debt with different characteristics;
and/or

· Increase or decrease the amount of short-term borrowings arising from securitized
trade receivables and unbilled customer finance receivables.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **11** |

---

notes to condensed interim consolidated financial statements (unaudited)

During 2025, our financial objectives, which are reviewed annually, were unchanged from 2024. We believe that our financial objectives support our long-term strategy.

We monitor financial capital utilizing a number of measures, including: net debt to earnings before interest, income taxes, depreciation and amortization (EBITDA<sup>\*</sup>) – excluding restructuring and other costs ratio; coverage ratios; and dividend payout ratios.

*Debt and coverage ratios*

Net debt to EBITDA – excluding restructuring and other costs is calculated as net debt at the end of the period, divided by 12-month trailing EBITDA – excluding restructuring and other costs. Historically, this measure is substantially similar to the leverage ratio covenant in our credit facilities. Net debt and EBITDA – excluding restructuring and other costs are measures that do not have any standardized meanings prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. The calculation of these measures is set out in the following table. Net debt is one component of a ratio used to determine compliance with certain debt covenants.

---

| | | | |
|:---|:---|:---|:---|
| As at, or for the 12-month periods <br> ended, September 30 ($ in millions) | Objective | **2025** | 2024 |
| **Components of debt and coverage ratios** |  |  |  |
| Net debt <sup>1</sup> |  | $**25663** | $28109 |
| EBITDA – excluding restructuring and other costs <sup>2</sup> |  | $**7353** | $7342 |
| Net interest cost <sup>3</sup> (*Note 9*) |  | $**1418** | $1370 |
| **Debt ratio** |  |  |  |
| Net debt to EBITDA – excluding restructuring and other costs2.2 – 2.7 <sup>4</sup> |  | **3.5** | 3.8 |
| **Coverage ratios** |  |  |  |
| Earnings coverage <sup>5</sup> |  | **2.1** | 1.9 |
| EBITDA – excluding restructuring and other costs interest coverage <sup>6</sup> |  | **5.2** | 5.4 |

---

---

| | |
|:---|:---|
| 1 | Net debt and total managed capitalization are calculated as follows: |

---

---

| | | | |
|:---|:---|:---|:---|
| As at September 30 | Note | **2025** | 2024 |
| Long-term debt | 26 | $**28989** | $28000 |
| TELUS Corporation junior subordinated notes equity credit deducted in calculating net debt | 26(f) | **(2232)** |  |
| Debt issuance costs netted against long-term debt |  | **138** | 124 |
| Derivative (assets) liabilities used to manage interest rate and currency risks associated with U.S. dollar-denominated debt, net |  | **(22)** | 78 |
| Accumulated other comprehensive income (loss) amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar-denominated debt – excluding tax effects |  | **(305)** | (204) |
| Cash and temporary investments, net |  | **(1827)** | (814) |
| Short-term borrowings | 22 | **922** | 925 |
| **Net debt** |  | **25663** | 28109 |
| Common equity |  | **15873** | 15771 |
| Non-controlling interests |  | **1649** | 1156 |
| Add: TELUS Corporation junior subordinated notes equity credit deducted in calculating net debt |  | **2232** |  |
| Less: accumulated other comprehensive income (loss) amounts included above in common equity and non-controlling interests |  | **(31)** | (27) |
| **Total managed capitalization** |  | $**45386** | $45009 |

---

\* EBITDA is not a standardized financial measure under IFRS Accounting Standards and might not be comparable to similar measures disclosed by other issuers; we define EBITDA as operating revenues and other income less goods and services purchased and employee benefits expense. We report EBITDA because it is a key measure that management uses to evaluate the performance of our business, and it is also utilized to determine compliance with certain debt covenants.

---

| | |
|:---|:---|
| **12** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

2 EBITDA – excluding restructuring and other costs is calculated as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | EBITDA<br> (*Note 5*) | Restructuring<br> and other<br> costs <br> (*Note 16)* | EBITDA – <br> excluding<br> restructuring<br> and other costs |
| **Add** |  |  |  |
| Nine-month period ended September 30, 2025 | $5176 | $339 | $5515 |
| Year ended December 31, 2024 | 6840 | 493 | 7333 |
| **Deduct** |  |  |  |
| Nine-month period ended September 30, 2024 | (5070) | (425) | (5495) |
| EBITDA – excluding restructuring and other costs | $6946 | $407 | $7353 |

---

---

| | |
|:---|:---|
| 3 | Net interest cost is defined as financing costs, excluding employee defined benefit plans net interest, unrealized changes in virtual power purchase agreements forward element when accounted for as held for trading (see *Note 2(a)*), and recoveries on long-term debt prepayment premium and repayment of debt, calculated on a 12-month trailing basis (expenses recorded for long-term debt prepayment premium, if any, are included in net interest cost) (see *Note 9*). |
| 4 | Our long-term objective range for this ratio is 2.2 – 2.7 times. The ratio as at September 30, 2025, is outside the long-term objective range. We may permit, and have permitted, this ratio to go outside the objective range (for long-term investment opportunities), but we will endeavour to return this ratio to circa 2.7 times in the medium term (following the spectrum auctions in 2021 and 2023, and the mmWave spectrum auction upcoming), consistent with our long-term strategy. We have an objective of achieving a ratio of circa 3.0 times in 2027. We are in compliance with the leverage ratio covenant in our credit facilities, which states that we may not permit our net debt to operating cash flow ratio to exceed 4.25:1.00 (see *Note 26(d)*); the calculation of the debt ratio is substantially similar to the calculation of the leverage ratio covenant in our credit facilities. |
| 5 | Earnings coverage is defined in Canadian Securities Administrators National Instrument 41-101 as net income before borrowing costs and income tax expense, divided by borrowing costs (interest on long-term debt (including dividend obligations on preferred shares that are required to be accounted for as financial liabilities); interest on short-term borrowings and other; long-term debt prepayment premium), and adding back capitalized interest, all such amounts excluding those attributable to non-controlling interests. |
| 6 | EBITDA – excluding restructuring and other costs interest coverage is defined as EBITDA – excluding restructuring and other costs, divided by net interest cost. This measure is substantially similar to the coverage ratio covenant in our credit facilities. |

---

Net debt to EBITDA – excluding restructuring and other costs was 3.5 times as at September 30, 2025, compared to 3.8 times one year earlier. The decrease was largely due to the effect of the decrease in net debt levels, primarily due to the junior subordinated notes equity credit and the equity issued by our Terrion subsidiary to a non-controlling interest (see *Note 28(b)*), partially offset by spectrum acquisitions and business acquisitions; net debt levels were already elevated in the current and comparative periods due to our spectrum acquisitions and business acquisitions.

The earnings coverage ratio for the twelve-month period ended September 30, 2025, was 2.1 times, up from 1.9 times one year earlier. An increase in income before borrowing costs and income taxes raised the ratio by 0.4 and an increase in borrowing costs lowered the ratio by 0.2. The EBITDA – excluding restructuring and other costs interest coverage ratio for the twelve-month period ended September 30, 2025, was 5.2 times, down from 5.4 times one year earlier. An increase of $48 million in net interest costs decreased the ratio by 0.2.

*TELUS Corporation Common Share dividend payout ratio*

So as to be consistent with the way we manage our business, our TELUS Corporation Common Share dividend payout ratio is presented as a historical measure calculated as the sum of the dividends declared in the most recent four quarters for TELUS Corporation Common Shares, as recorded in the financial statements, net of dividend reinvestment plan effects (see *Note 13*), divided by the sum of free cash flow<sup>\*</sup> amounts for the most recent four quarters for interim reporting periods (divided by annual free cash flow if the reported amount is in respect of a fiscal year). The historical measure for the twelve-month period ended September 30, 2025, is presented for illustrative purposes in evaluating our objective range.

\*Free cash flow is not a standardized financial measure under IFRS Accounting Standards and might not be comparable to similar measures presented by other issuers; we define free cash flow as EBITDA (operating revenues and other income less goods and services purchased and employee benefits expense) excluding items that we consider to be of limited predictive value, including certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets, and other sources and uses of cash, as found in the consolidated statements of cash flows. We have issued guidance on, and report, free cash flow because it is a key performance measure that management and investors use to evaluate the performance of our business.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **13** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | |
|:---|:---|:---|
| For the 12-month periods ended September 30 | **2025** | 2024 |
| **Determined using most comparable IFRS Accounting Standards measures** |  |  |
| Ratio of TELUS Corporation Common Share dividends declared to cash provided by operating activities – less capital expenditures | **106%** | 92% |
| **Determined using management measures** |  |  |
| TELUS Corporation Common Share dividend payout ratio – net of dividend reinvestment plan effects&nbsp;&nbsp;60%–75% <sup>1</sup> | **75%** | 76% |

---

---

| | |
|:---|:---|
| 1 | Our objective range for the TELUS Corporation Common Share dividend payout ratio is 60%-75% of free cash flow on a prospective basis. |

---

Our calculation of TELUS Corporation Common Share dividends declared, net of dividend reinvestment plan effects, is as follows:

---

| | | |
|:---|:---|:---|
| For the 12-month periods ended<br> September 30 (millions) | **2025** | 2024 |
| TELUS Corporation Common Share dividends declared | $**2488** | $2259 |
| Amount of TELUS Corporation Common Share dividends declared reinvested in TELUS Corporation Common Shares | **(860)** | (697) |
| TELUS Corporation Common Share dividends declared – net of dividend reinvestment plan effects | $**1628** | $1562 |

---

Our calculation of free cash flow, and its reconciliation to cash provided by operating activities, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| For the 12-month periods ended <br> September 30 (millions) | Note | **2025** | 2024 |
| EBITDA | **5** | $**6946** | $6775 |
| Restructuring and other costs, net of disbursements |  | **(29)** | 21 |
| Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment mobile device financing |  | **(100)** | (146) |
| Effect of lease principal | 31(b) | **(664)** | (647) |
| Items from the Consolidated statements of cash flows: |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation, net of employee share purchase plan cash outflows | **14** | **169** | 145 |
| &nbsp;&nbsp;&nbsp;Net employee defined benefit plans expense | **15** | **68** | 76 |
| &nbsp;&nbsp;&nbsp;Employer contributions to employee defined benefit plans |  | **(22)** | (21) |
| &nbsp;&nbsp;&nbsp;Loss from equity accounted investments |  | **4** | 39 |
| &nbsp;&nbsp;&nbsp;Interest paid (excluding discretionary cash payment of dividends accounted for as interest) |  | **(1397)** | (1319) |
| &nbsp;&nbsp;&nbsp;Interest received |  | **41** | 42 |
| Capital expenditures (excluding acquisition from related party |  | **(2375)** | (2617) |
| Capital expenditure for acquisition from related party |  | **(93)** |  |
| Related party construction credit facility repayment made concurrent with capital expenditure for acquisition from related party and similar |  | **94** |  |
| Free cash flow before income taxes |  | **2642** | 2348 |
| Income taxes paid, net of refunds |  | **(474)** | (305) |
| **Free cash flow** |  | **2168** | 2043 |
| Add (deduct): |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | **5** | **2468** | 2617 |
| &nbsp;&nbsp;&nbsp;Effect of lease principal |  | **664** | 647 |
| &nbsp;&nbsp;&nbsp;Net change in non-cash operating working capital not included in preceding line items and other individually immaterial items included in net income neither providing nor using cash |  | **(487)** | (223) |
| **Cash provided by operating activities** |  | $**4813** | $5084 |

---

---

| | |
|:---|:---|
| **14** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **4** | **financial instruments** |

---

**(a)** **Credit risk** 

Excluding credit risk, if any, arising from currency swaps settled on a gross basis, the best representation of our maximum exposure (excluding income tax effects) to credit risk, which is a worst-case scenario and does not reflect results we expect, is set out in the following table.

---

| | | |
|:---|:---|:---|
| As at (millions) | **September 30,<br> 2025** | December 31,<br> 2024 |
| Cash and temporary investments, net | $**1827** | $869 |
| Accounts receivable | **4233** | 4319 |
| Contract assets | **702** | 790 |
| Derivative assets | **104** | 178 |
|  | $**6866** | $6156 |

---

*Cash and temporary investments, net*

Credit risk associated with cash and temporary investments is managed by ensuring that these financial assets are placed with: governments; major financial institutions that have been accorded strong investment grade ratings by a primary rating agency; and/or other creditworthy counterparties. An ongoing review evaluates changes in the status of counterparties.

*Accounts receivable*

Credit risk associated with accounts receivable is inherently managed through the size and diversity of our large customer base, which encompasses substantially all consumer and business sectors in Canada. A program of credit evaluations of customers is followed and the amount of credit extended is limited when we deem it to be necessary. Accounts are considered to be past due (in default) when customers have failed to make the contractually required payments when due, which is generally within 30 days of the billing date. Any late payment charges are levied at an industry-based market rate or a negotiated rate on outstanding non-current customer account balances.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Customer accounts receivable, net of allowance for doubtful accounts** |  | | | |
| As at (millions) | *Note* | Gross | Allowance | Net <sup>1</sup> |
| **September 30, 2025** |  |  |  |  |
| Less than 30 days past billing date |  | $**1079** | $**(22)** | $**1057** |
| 30-60 days past billing date |  | **343** | **(18)** | **325** |
| 61-90 days past billing date |  | **143** | **(21)** | **122** |
| More than 90 days past billing date |  | **213** | **(43)** | **170** |
| Unbilled customer finance receivables |  | **1537** | **(34)** | **1503** |
|  |  | $**3315** | $**(138)** | $**3177** |
| Current <sup>2</sup> | *6(b)* | $**2713** | $**(125)** | $**2588** |
| Non-current <sup>3</sup> | *20* | **602** | **(13)** | **589** |
|  |  | $**3315** | $**(138)** | $**3177** |
| **December 31, 2024** |  |  |  |  |
| Less than 30 days past billing date |  | $975 | $(20) | $955 |
| 30-60 days past billing date |  | 504 | (18) | 486 |
| 61-90 days past billing date |  | 147 | (20) | 127 |
| More than 90 days past billing date |  | 202 | (42) | 160 |
| Unbilled customer finance receivables |  | 1661 | (34) | 1627 |
|  |  | $3489 | $(134) | $3355 |
| Current <sup>2</sup> | *6(b)* | $2844 | $(119) | $2725 |
| Non-current <sup>3</sup> | *20* | 645 | (15) | 630 |
|  |  | $3489 | $(134) | $3355 |

---

---

| | |
|:---|:---|
| 1 | Net amounts represent customer accounts receivable for which an allowance had not been made as at the dates of the Consolidated statements of financial position (see *Note 6(b)*). |
| 2 | Presented in the Consolidated statements of financial position as Accounts receivable. |
| 3 | Presented in the Consolidated statements of financial position as Other long-term assets. |

---

We maintain allowances for lifetime expected credit losses related to doubtful accounts. Factors considered when determining allowances for past-due accounts include: current economic conditions (including forward-looking macroeconomic data); historical information (including credit agency reports, if available); reasons for the accounts being past due; and the line of business from which the customer accounts receivable originated. These factors are also considered when determining whether to write off amounts charged to the allowance for doubtful accounts against the customer accounts receivable. The doubtful accounts expense is calculated on a specific-identification basis for customer accounts receivable balances above a specific threshold and on a statistically derived allowance basis for the remainder. No customer accounts receivable are written off directly to the doubtful accounts expense; the doubtful accounts expense is included in the Consolidated statements of income and other comprehensive income as Goods and services purchased.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **15** |

---

notes to condensed interim consolidated financial statements (unaudited)

The following table presents a summary of the activity related to our allowance for doubtful accounts.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months | Three months | Nine months | Nine months |
| Periods ended <br> September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Balance, beginning of period | $**139** | $120 | $**134** | $117 |
| Additions (doubtful accounts expense) | **39** | 41 | **126** | 113 |
| Accounts written off <sup>1</sup> less than recoveries | **(42)** | (39) | **(127)** | (105) |
| Other | **2** | 5 | **5** | 2 |
| Balance, end of period | $**138** | $127 | $**138** | $127 |

---

---

| | |
|:---|:---|
| 1 | For the three-month and nine-month periods ended September 30, 2025, accounts that were written off but were still subject to enforcement activity totalled $63 (2024 – $63) and $194 (2024 – $179), respectively. |

---

*Contract assets*

Credit risk associated with contract assets is inherently managed through the size and diversity of our large customer base, which encompasses substantially all consumer and business sectors in Canada. A program of credit evaluations of customers is followed and the amount of credit extended is limited when we deem it to be necessary.

---

| | | | |
|:---|:---|:---|:---|
| **Contract assets, net of impairment allowance** | | | |
| As at (millions) | Gross | Allowance | Net (*Note 6(c)*) |
| **September 30, 2025** |  |  |  |
| To be billed and thus reclassified to accounts receivable during: |  |  |  |
| &nbsp;&nbsp;&nbsp;The 12-month period ending one year hence | $**603** | $**(21)** | $**582** |
| &nbsp;&nbsp;&nbsp;The 12-month period ending two years hence | **222** | **(8)** | **214** |
| &nbsp;&nbsp;&nbsp;Thereafter | **44** | **(1)** | **43** |
|  | $**869** | $**(30)** | $**839** |
| **December 31, 2024** |  |  |  |
| To be billed and thus reclassified to accounts receivable during: |  |  |  |
| &nbsp;&nbsp;&nbsp;The 12-month period ending one year hence | $634 | $(20) | $614 |
| &nbsp;&nbsp;&nbsp;The 12-month period ending two years hence | 287 | (9) | 278 |
| &nbsp;&nbsp;&nbsp;Thereafter | 48 | (1) | 47 |
|  | $969 | $(30) | $939 |

---

We maintain allowances for lifetime expected credit losses related to contract assets. Factors considered when determining allowances include: current economic conditions; historical information (including credit agency reports, if available); and the line of business from which the contract assets originated. These same factors are considered when determining whether to write off amounts charged to the impairment allowance for contract assets against contract assets.

*Derivative assets (and derivative liabilities)*

Counterparties to our material foreign exchange derivatives are major financial institutions that have been accorded investment grade ratings by a primary credit rating agency. Credit exposure to any single financial institution is limited and counterparties' credit ratings are monitored. We do not give or receive collateral on swap agreements and hedging items due to our credit rating and those of our counterparties. While we are exposed to the risk of credit losses due to the potential non-performance of our counterparties, we consider this risk remote. Our derivative liabilities do not have credit risk-related contingent features.

**(b)** **Liquidity risk** 

As a component of our capital structure financial policies, discussed further in *Note 3*, we manage liquidity risk by:

· maintaining
 a daily cash pooling process that enables us to manage our available liquidity and our liquidity
 requirements according to our actual needs;

· maintaining
 a short-term borrowing agreement associated with trade receivables and unbilled customer
 finance receivables (*Note 22*), bilateral bank facilities (*Note 22*),
 a supply chain financing program (*Note 23*), a commercial paper program (*Note 26(c)*)
 and syndicated credit facilities (*Note 26(d)*);

· maintaining
 an in-effect shelf prospectus;

· continuously
 monitoring forecast and actual cash flows; and

· managing
 maturity profiles of financial assets and financial liabilities.

Our debt maturities in future years are disclosed in *Note 26(j)*. As at September 30, 2025, unchanged from December 31, 2024, TELUS Corporation could offer an unlimited amount of securities in Canada, and US$3.5 billion of securities in the United States, qualified pursuant to a Canadian shelf prospectus effective until September 2026, unchanged from December 31, 2024. We believe our investment grade credit ratings contribute to reasonable access to capital markets.

---

| | |
|:---|:---|
| **16** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

We closely match the contractual maturities of our derivative financial liabilities with those of the risk exposures they are being used to manage.

The expected maturities of our undiscounted financial liabilities do not differ significantly from the contractual maturities, other than as noted in the accompanying tables. The contractual maturities of our undiscounted financial liabilities, including interest thereon (where applicable), are set out in the accompanying tables.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Non-derivative** | **Non-derivative** | **Non-derivative** | **Non-derivative** | **Derivative** | **Derivative** | **Derivative** | **Derivative** | **Derivative** | **Derivative** |
|  | | | Composite long-term debt | Composite long-term debt | Composite long-term debt | Composite long-term debt | | | | |
|  | Non-interest<br> bearing<br> financial | Short-term | Long-term<br> debt,<br> excluding<br> leases <sup>1</sup> | Leases | Currency swap agreement<br> amounts to be exchanged | Currency swap agreement<br> amounts to be exchanged | | Currency swap agreement<br> amounts to be exchanged <sup>3</sup> | Currency swap agreement<br> amounts to be exchanged <sup>3</sup> | |
| As at September 30, 2025<br> (millions) | liabilities | borrowings <sup>1</sup> | (*Note 26*) | (*Note 26*) | (Receive) <sup>2</sup> | Pay | Other | (Receive) | Pay | **Total** |
| 2025 (remainder of year) | $**2771** | $**10** | $**710** | $**163** | $**(554)** | $**538** | $**1** | $**(967)** | $**947** | $**3619** |
| 2026 | **541** | **40** | **3244** | **864** | **(894)** | **862** | **5** | **(652)** | **641** | **4651** |
| 2027 | **99** | **951** | **2698** | **746** | **(1812)** | **1718** | **4** | **(53)** | **48** | **4399** |
| 2028 | **63** | **—** | **3012** | **542** | **(243)** | **224** | **4** | **(476)** | **513** | **3639** |
| 2029 | **8** | **—** | **2393** | **396** | **(243)** | **224** | **4** | **—** | **—** | **2782** |
| 2030 - 2034 | **8** | **—** | **12129** | **748** | **(3079)** | **2897** | **18** | **—** | **—** | **12721** |
| Thereafter | **—** | **—** | **19579** | **641** | **(3313)** | **3154** | **2** | **—** | **—** | **20063** |
| Total | $**3490** | $**1001** | $**43765** | $**4100** | $**(10138)** | $**9617** | $**38** | $**(2148)** | $**2149** | $**51874** |
|  |  |  | Total (*Note 26(j)*) | Total (*Note 26(j)*) | Total (*Note 26(j)*) | $**47344** |  |  |  |  |

---

---

| | |
|:---|:---|
| 1 | Cash outflows in respect of interest payments on our short-term borrowings, sustainability-linked notes, commercial paper, amounts drawn under our credit facilities (if any), other (unsecured) and junior subordinated notes have been calculated based upon the interest rates and, if applicable, foreign exchange rates, in effect as at September 30, 2025. |
| 2 | The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the foreign exchange rates in effect as at September 30, 2025. The hedged U.S. dollar- denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements, excepting that the maturities and gross cash flows for the TELUS Corporation junior subordinated notes reflect the initial fixed rate reset date. |
| 3 | The amounts included in undiscounted short-term borrowings in respect of U.S. dollar-denominated short-term borrowings, and the corresponding derivative liability amounts, if any, included in the currency swap pay column amounts, have been determined based upon the foreign exchange rates in effect as at September 30, 2025. The derivative liability hedging amounts, if any, for the hedged U.S. dollar-denominated short-term borrowings contractual amounts are included in the currency swap pay column amounts as net cash flows are exchanged pursuant to the currency swap agreements. Gross cash flows are exchanged pursuant to European euro – U.S. dollar currency swaps and have been calculated based upon the interest rates and foreign exchange rates in effect as at September 30, 2025. |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Non-derivative** | **Non-derivative** | **Non-derivative** | **Non-derivative** | **Derivative** | **Derivative** | **Derivative** | **Derivative** | |
|  | | | Composite long-term debt | Composite long-term debt | Composite long-term debt | Composite long-term debt | | | |
|  | Non-interest<br> bearing<br> financial | Short-term | Long-term<br> debt,<br> excluding<br> leases <sup>1</sup> | Leases | Currency swap agreement<br> amounts to be exchanged | Currency swap agreement<br> amounts to be exchanged | Currency swap agreement<br> amounts to be exchanged <sup>3</sup> | Currency swap agreement<br> amounts to be exchanged <sup>3</sup> | |
| As at December 31, 2024 (millions) | liabilities | borrowings <sup>1</sup> | (*Note 26*) | (*Note 26*) | (Receive) <sup>2</sup> | Pay | (Receive) | Pay | Total |
| 2025 | $3228 | $40 | $3629 | $837 | $(1670) | $1601 | $(707) | $685 | $7643 |
| 2026 | 233 | 40 | 2544 | 700 | (234) | 207 |  |  | 3490 |
| 2027 | 103 | 942 | 2677 | 550 | (1802) | 1654 |  |  | 4124 |
| 2028 | 64 |  | 4234 | 349 | (617) | 585 |  |  | 4615 |
| 2029 | 8 |  | 2141 | 249 | (125) | 116 |  |  | 2389 |
| 2030 - 2034 | 9 |  | 10825 | 484 | (1808) | 1617 |  |  | 11127 |
| Thereafter |  |  | 11902 | 408 | (2942) | 2662 |  |  | 12030 |
| Total | $3645 | $1022 | $37952 | $3577 | $(9198) | $8442 | $(707) | $685 | $45418 |
|  |  |  | Total | Total | Total | $40773 |  |  |  |

---

---

| | |
|:---|:---|
| 1 | Cash outflows in respect of interest payments on our short-term borrowings, sustainability-linked notes, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates and, if applicable, foreign exchange rates in effect as at December 31, 2024. |
| 2 | The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the foreign exchange rates in effect as at December 31, 2024. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements. |
| 3 | The amounts included in undiscounted short-term borrowings in respect of U.S. dollar-denominated short-term borrowings, and the corresponding derivative liability amounts, if any, included in the currency swap pay column amounts, have been determined based upon the foreign exchange rates in effect as at December 31, 2024. The derivative liability hedging amounts, if any, for the hedged U.S. dollar-denominated short-term borrowings contractual amounts are included in the currency swap pay column amounts as net cash flows are exchanged pursuant to the currency swap agreements. |

---

**(c)** **Market risks** 

Net income and other comprehensive income for the nine- month periods ended September 30, 2025 and 2024, could have varied if the Canadian dollar: U.S. dollar exchange rate, the U.S. dollar: European euro exchange rate, market interest rates and virtual power purchase agreement forward element valuation varied by reasonably possible amounts from their actual statement of financial position date amounts.

Our sensitivity analysis for currency risk exposure has been determined based upon a hypothetical change taking place at the relevant statement of financial position date. We used the U.S. dollar-denominated and European euro-denominated balances and the notional amounts of our derivative financial instruments as at the relevant statement of financial position dates in these calculations.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **17** |

---

notes to condensed interim consolidated financial statements (unaudited)

The sensitivity analysis of our exposure to interest rate risk has been determined based upon a hypothetical change taking place at the beginning of the relevant fiscal year and being held constant through to the statement of financial position date. We used the principal and notional amounts as at the relevant statement of financial position dates in these calculations.

The sensitivity analysis of our exposure to wind discount risk and solar premium risk is based upon a hypothetical change taking place at the relevant statement of financial position date. The notional amounts of the virtual power purchase agreements as at the relevant statement of financial position dates have been used in these calculations.

In the sensitivity analysis, we reflected income tax expense on a net basis, calculated using the applicable statutory income tax rates for the reporting periods.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Nine-month periods ended September 30 | Net income | Net income | Other comprehensive<br> income | Other comprehensive<br> income | Comprehensive income | Comprehensive income |
| &nbsp;&nbsp;&nbsp;(increase (decrease) in millions) | **2025** | 2024 | **2025** | 2024 | **2025** | 2024 |
| Reasonably possible changes in market risks <sup>1</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;10% change in C$: US$ exchange rate |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canadian dollar appreciates | $**(5)** | $(7) | $**(98)** | $97 | $**(103)** | $90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canadian dollar depreciates | $**5** | $7 | $**98** | $(97) | $**103** | $(90) |
| &nbsp;&nbsp;&nbsp;10% change in US$: € exchange rate |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar appreciates | $**(32)** | $13 | $**(30)** | $(72) | $**(62)** | $(59) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar depreciates | $**32** | $(13) | $**30** | $72 | $**62** | $59 |
| &nbsp;&nbsp;&nbsp;25 basis point change in interest rates |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rates increase |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canadian interest rate | $**(4)** | $(4) | $**58** | $77 | $**54** | $73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. interest rate | $**(4)** | $— | $**(80)** | $(66) | $**(84)** | $(66) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined | $**(8)** | $(4) | $**(22)** | $11 | $**(30)** | $7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rates decrease |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canadian interest rate | $**4** | $4 | $**(60)** | $(81) | $**(56)** | $(77) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. interest rate | $**2** | $— | $**84** | $69 | $**86** | $69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined | $**6** | $4 | $**24** | $(12) | $**30** | $(8) |
| &nbsp;&nbsp;&nbsp;20 basis point change in wind discount (*Note 2(a)*) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wind discount increases | $**—** | $(23) | $**(23)** | $— | $**(23)** | $(23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wind discount decreases | $**—** | $23 | $**22** | $— | $**22** | $23 |
| &nbsp;&nbsp;&nbsp;20 basis point change in solar premium (*Note 2(a)*) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solar premium increases | $**—** | $13 | $**12** | $— | $**12** | $13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solar premium decreases | $**—** | $(13) | $**(13)** | $— | $**(13)** | $(13) |

---

---

| | |
|:---|:---|
| 1 | These sensitivities are hypothetical and should be used with caution. Changes in net income and/or other comprehensive income generally cannot be extrapolated because the relationship of the change in assumption to the change in net income and/or other comprehensive income may not be linear. In this table, the effect of a variation in a particular assumption on the amount of net income and/or other comprehensive income is calculated without changing any other factors; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. |

---

The sensitivity analysis assumes that we would realize the changes in exchange rates, market interest rates, wind discount and solar premium; in reality, the competitive marketplaces in which we operate would have an effect on this assumption.

**(d)** **Fair values** 

*General*

The carrying values of cash and temporary investments, accounts receivable, short-term obligations, short-term borrowings, accounts payable and certain provisions (including restructuring provisions) approximate their fair values due to their immediate or short-term maturity. The fair values are determined directly by reference to quoted market prices in active markets.

The fair values of our investment financial assets are based on quoted market prices in active markets or other clear and objective evidence of fair value.

The fair value of our long-term debt, excluding leases, is based on quoted market prices in active markets.

For derivative financial instruments used to manage our exposure to currency risk, we estimated their fair values based on either quoted market prices in active markets for the same or similar financial instruments or the current rates offered to us for financial instruments of the same maturity, as well as discounted future cash flows determined using current rates for similar financial instruments of similar maturities subject to similar risks (such fair value estimates being largely based on the Canadian dollar: U.S. dollar forward exchange rate as at the statements of financial position dates). The fair values of the derivative financial instruments we use to manage our exposure to price risk associated with the purchase of nature-dependent electricity are currently estimated using a discounted cash flow approach and are based on industry-standard forecasts from EDC Associates Ltd. utilizing observable market data. The significant unobservable inputs used in the fair value measurement of the Level 3 derivative financial instruments were wind discount, reflecting 76% (December 31, 2024 – 76%) of the Alberta Interconnected Electrical System pool price, and solar premium, reflecting 82% (December 31, 2024 – 108%) of the Alberta Interconnected Electrical System pool price.

---

| | |
|:---|:---|
| **18** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

*Derivative*

The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are set out in the following table.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| As at ($ in millions except price or rate) | Designation | Maximum<br> maturity<br> date | Notional<br> amount | Fair value <sup>1</sup> and carrying<br> value | Price or rate | Maximum<br> maturity<br> date | Notional<br> amount | Fair value <sup>1</sup> and carrying<br> value | Price or rate |
| **Current derivative assets <sup>2</sup>** |  |  |  |  |  |  |  |  |  |
| Derivatives used to manage **currency risk** associated with |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated transactions | HFT <sup>4</sup> | 2026 | $**40** | $**—** | US$1.00: ₱57 | 2025 | $43 | $— | US$1.00: ₱58 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated transactions | HFT <sup>4</sup> | 2025 | $**677** | **18** | US$1.00: C$1.35 | 2025 | $72 | 1 | US$1.00: C$1.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated transactions | HFH <sup>3</sup> | 2026 | $**264** | **3** | US$1.00: C$1.36 | 2025 | $410 | 20 | US$1.00: C$1.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated debt (*Notes 22, 26(c)*) | HFH <sup>3</sup> | 2026 | $**1044** | **13** | US$1.00: C$1.37 | 2025 | $1201 | 31 | US$1.00: C$1.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;European euro functional currency operations purchased with U.S. dollar-denominated long-term debt <sup>7</sup> (*Note 26(e)*) | HFT <sup>5, 10</sup> | 2028 | $**49** | **3** | €1.00: US$1.09 | 2028 | $46 | 13 | €1.00: US$1.09 |
| Derivatives used to manage **interest rate risk** associated with |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-fixed rate credit facility amounts drawn (*Note 26(e)*) | HFT <sup>4, 10</sup> |  | $**—** | **—** |  | 2028 | $12 |  | 3.5% |
| Derivatives used to manage **other price risk** associated with |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of electrical power | HFH <sup>3, 9</sup> | 2047 | **0.3 TWh <sup>8</sup>** | **—** | $33.14/MWh <sup>8</sup> |  | $— |  |  |
|  |  |  |  | $**37** |  |  |  | $65 |  |
| **Other long-term assets <sup>2</sup>** (*Note 20*) |  |  |  |  |  |  |  |  |  |
| Derivatives used to manage **currency risk** associated with |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated long-term debt <sup>6</sup> (*Note 26(b)*) | HFH <sup>3</sup> | 2032 | $**4258** | $**67** | US$1.00: C$1.32 | 2032 | $3069 | $86 | US$1.00: C$1.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;European euro functional currency operations purchased with U.S. dollar-denominated long-term debt <sup>7</sup> (*Note 26(e)*) | HFT <sup>4, 10</sup> |  | $**—** | **—** |  | 2028 | $557 | 24 | €1.00: US$1.09 |
| Derivatives used to manage **interest rate risk** associated with |  |  |  |  |  |  |  |  |  |
| Non-fixed rate credit facility amounts drawn (*Note 26(e)*) | HFT <sup>4, 10</sup> |  | $**—** | **—** |  | 2028 | $211 | 3 | 3.5% |
|  |  |  |  | $**67** |  |  |  | $113 |  |
| **Current derivative liabilities <sup>2</sup>** |  |  |  |  |  |  |  |  |  |
| Derivatives used to manage **currency risk** associated with |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated transactions | HFT <sup>4</sup> | 2026 | $**258** | $**6** | US$1.00: ₱57 | 2025 | $129 | $3 | US$1.00: ₱57 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated transactions | HFH <sup>3</sup> | 2026 | $**288** | **5** | US$1.00: C$1.41 |  | $— |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated debt (*Notes 22, 26(c)*) | HFH <sup>3</sup> | 2025 | $**923** | **2** | US$1.00: C$1.39 | 2025 | $1117 | 2 | US$1.00: C$1.44 |
| Derivatives used to manage **other price risk** associated with |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of electrical power | HFH <sup>3, 9</sup> |  | $**—** | **—** |  | 2047 | 0.4 TWh <sup>8</sup> | 6 | $31.76/MWh <sup>8</sup> |
|  |  |  |  | $**13** |  |  |  | $11 |  |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **19** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| As at ($ in millions except price or rate) |  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | Designation | Maximum<br> maturity<br> date | Notional<br> amount | Fair value <sup>1</sup> and carrying<br> value | Price or rate | Maximum<br> maturity<br> date | Notional<br> amount | Fair value <sup>1</sup> and carrying<br> value | Price or rate |
| **Other long-term liabilities** <sup>2</sup> (*Note 27*) |  |  |  |  |  |  |  |  |  |
| Derivatives used to manage **currency risk** associated with |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar-denominated long-term debt <sup>6</sup> (*Note 26(c)*) | HFH <sup>3</sup> | 2049 | $**4318** | $**56** | US$1.00: C$1.31 | 2049 | $3378 | $86 | US$1.00: C$1.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;European euro functional currency operations purchased with U.S. dollar-denominated long-term debt <sup>7</sup> (*Note 26(e)*) | HFT <sup>5, 10</sup> | 2028 | $**573** | **42** | €1.00: US$1.09 |  | $— |  |  |
| Derivatives used to manage **other price risk** associated with |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of electrical power | HFH <sup>3, 9</sup> | 2047 | **5.0 TWh <sup>8</sup>** | **37** | $40.67/MWh <sup>8</sup> | 2047 | 6.5 TWh <sup>8</sup> | 32 | $40.49/MWh <sup>8</sup> |
|  |  |  |  | $**135** |  |  |  | $118 |  |

---

---

| | |
|:---|:---|
| 1 | Fair value measured at the reporting date using significant other observable inputs (Level 2), except the fair value of virtual power purchase agreements (which we use to manage the price risk associated with the purchase of electrical power), which is measured at the reporting date using significant unobservable inputs (Level 3). Changes in the fair value of derivative financial instruments classified as Level 3 in the fair value hierarchy were as follows: |

---

---

| | | |
|:---|:---|:---|
|  | Nine months | Nine months |
| Periods ended September 30 | **2025** | 2024 |
| **Unrealized changes in virtual power purchase agreements forward element** |  |  |
| Included in net income, excluding income taxes (see *(e)*) | $**3** | $(228) |
| Included in other comprehensive income, excluding income taxes (see *(e), Note 2(a)*) | **(2)** |  |
| Balance, beginning of period – asset (liability) | **(38)** | 193 |
| Balance, end of period – asset (liability) | $**(37)** | $(35) |

---

---

| | |
|:---|:---|
| 2 | Caption reflects line item where derivative financial instruments are presented in the Consolidated statements of financial position. Derivative financial assets and liabilities are not set off. |
| 3 | Designated as held for hedging (HFH) upon initial recognition (cash flow hedging item), except for derivatives uses to manage other price risk associated with the purchase of electrical power which were entered into prior to fiscal 2025 and which were designated as HFH on January 1, 2025 (see *Note 2(a)*); hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items (variable notional amounts of hedging items and the variable notional amounts of the associated hedged items in respect of virtual power purchase agreements (see *Note 2(a)*). |
| 4 | Designated as held for trading (HFT) and classified as fair value through net income upon initial recognition; hedge accounting is not applied. |
| 5 | Designated as a hedge of a net investment in a foreign operation; hedge accounting is applied. Hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items. |
| 6 | We designate only the spot element as the hedging item. As at September 30, 2025, the foreign currency basis spread included in the fair value of the derivative instruments, which is used for purposes of assessing hedge ineffectiveness, was $(38) (December 31, 2024 – $(22)). |
| 7 | Prior to the hedge becoming ineffective, we had designated only the spot element as the hedging item. As at September 30, 2025, the foreign currency basis spread included in the fair value of the derivative instruments, which had been used for purposes of assessing hedge ineffectiveness, was $1 (December 31, 2024 – $2). |
| 8 | Terawatt hours (TWh) are 1x10<sup>9</sup> kilowatt hours and megawatt hours (MWh) are 1x10<sup>3</sup> kilowatt hours. |
| 9 | As at December 31, 2024, these were designated as held for trading. We have implemented new amendments to IFRS Accounting Standards effective January 1, 2025, which newly allow for these to prospectively be designated as held for hedging (see *Note 2(a)*). |
| 10 | As at December 31, 2024, these were designated as held for hedging. During the three-month period ended September 30, 2025, the hedged item was repaid (*Note 26(g)*), hedge accounting ceased and the derivatives were re-designated as held for trading. |

---

*Non-derivative*

Our long-term debt, which is measured at amortized cost, and the fair value thereof, are set out in the following table.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | December 31, 2024 | December 31, 2024 |
| As at (millions) | Carrying<br> value | Fair value | Carrying<br> value | Fair value |
| Long-term debt, excluding leases (*Note 26*) | $**25692** | $**25848** | $25972 | $25285 |

---

**(e)** **Recognition of derivative gains and losses** 

The following table sets out the gains and losses, excluding income tax effects, arising from derivative instruments that are classified as cash flow hedging items and their location within the Consolidated statements of income and other comprehensive income.

---

| | |
|:---|:---|
| **20** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

Credit risk associated with such derivative instruments, as discussed further in *(b)*, would be the primary source of hedge ineffectiveness. Excepting the virtual power purchase agreement derivatives, there was no ineffective portion of the derivative instruments classified as cash flow hedging items for the periods presented. The ineffective portion of the virtual power purchase agreements arises due to them being considered off-market hedging instruments by the transition rules of the amendments to IFRS Accounting Standards in respect of nature-dependent electricity (see *Note 2(a)*).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Amount of gain (loss)<br> recognized in other<br> comprehensive income | Amount of gain (loss)<br> recognized in other<br> comprehensive income | Gain (loss) reclassified from other <br> comprehensive income to income <br> (effective portion) (*Note 11*) | Gain (loss) reclassified from other <br> comprehensive income to income <br> (effective portion) (*Note 11*) | Gain (loss) reclassified from other <br> comprehensive income to income <br> (effective portion) (*Note 11*) |
|  | (effective portion) (*Note 11*) | (effective portion) (*Note 11*) |  | Amount | Amount |
| Periods ended <br> September 30<br> (millions) | **2025** | 2024 | Location | **2025** | 2024 |
| **THREE-MONTH** |  |  |  |  |  |
| Derivatives used to manage **currency risk** associated with |  |  |  |  |  |
| U.S. dollar-denominated purchases | $**12** | $(5) | Goods and services purchased | $**1** | $2 |
| U.S. dollar-denominated debt <sup>1</sup> (*Notes 22, 26(b)-(c)*) | **176** | (47) | Financing costs | **161** | (79) |
| Net investment in a foreign operation <sup>2</sup> | **15** | (29) | Financing costs | **(6)** | 6 |
|  | **203** | (81) |  | **156** | (71) |
| Derivatives used to manage **other market risks** |  |  |  |  |  |
| Purchase of electrical power (*Note 2(a)*) | **(18)** |  | Goods and services purchased | **1** |  |
| Other | **2** | (5) | Financing costs | **(1)** | 1 |
|  | **(16)** | (5) |  | **—** | 1 |
|  | $**187** | $(86) |  | $**156** | $(70) |
| **NINE-MONTH** |  |  |  |  |  |
| Derivatives used to manage **currency risk** associated with |  |  |  |  |  |
| U.S. dollar-denominated purchases | $**(11)** | $10 | Goods and services purchased | $**8** | $6 |
| U.S. dollar-denominated debt <sup>1</sup> (*Notes 22,26(b)-(c)*) | **(52)** | 135 | Financing costs | **(172)** | 108 |
| Net investment in a foreign operation <sup>2</sup> | **(57)** | 8 | Financing costs | **—** | 17 |
|  | **(120)** | 153 |  | **(164)** | 131 |
| Derivatives used to manage **other market risks** |  |  |  |  |  |
| Purchase of electrical power (*Note 2(a)*) | **1** |  | Goods and services purchased | **3** |  |
| Other | **—** | 1 | Financing costs | **—** | 3 |
|  | **1** | 1 |  | **3** | 3 |
|  | $**(119)** | $154 |  | $**(161)** | $134 |

---

---

| | |
|:---|:---|
| 1 | Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amounts for the three-month and nine-month periods ended September 30, 2025, totalled $(8) (2024 – $(123)) and $(16) (2024 – $(167)), respectively. |
| 2 | Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amounts for the three-month and nine-month periods ended September 30, 2025, totalled $(1) (2024 – $NIL) and $(1) (2024 – $NIL) respectively. |

---

The following table sets out the ineffectiveness gains and losses included in Goods and services purchased in the Consolidated statements of income and other comprehensive income that arise from derivative instruments that are classified as held for hedging and that are designated as being in a hedging relationship.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **21** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Gain (loss) on derivatives recognized in income | Gain (loss) on derivatives recognized in income | Gain (loss) on derivatives recognized in income | Gain (loss) on derivatives recognized in income |
|  | Three months | Three months | Nine months | Nine months |
| Periods ended <br> September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Derivatives used to manage other market risks (purchase of electrical power) (*Note 2(a)*) | $**—** | $— | $**3** | $— |

---

The following table sets out the gains and losses included in Financing costs in the Consolidated statements of income and other comprehensive income that arise from derivative instruments that are classified as held for trading and that are not designated as being in a hedging relationship.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Gain (loss) on derivatives recognized in income | Gain (loss) on derivatives recognized in income | Gain (loss) on derivatives recognized in income | Gain (loss) on derivatives recognized in income |
|  | Three months | Three months | Nine months | Nine months |
| Periods ended <br> September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Derivatives used to manage currency risk | $**19** | $3 | $**19** | $(3) |
| Unrealized changes in virtual power purchase agreements forward element (*Note 2(a)*) | $**—** | $(125) | $**—** | $(228) |

---

---

| | |
|:---|:---|
| **5** | **segment information** |

---

*General*

Operating segments are components of an entity that engage in business activities from which they earn revenues and incur expenses (including revenues and expenses related to transactions with the other component(s)), the operations of which can be clearly distinguished and for which the operating results are regularly reviewed by a chief operating decision-maker to make resource allocation decisions and to assess performance.

The TELUS technology solutions 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; and home and business security and automation); agriculture and consumer goods services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); voice and other telecommunications services revenues; and equipment sales.

We embarked upon the modification of our internal and external reporting processes, systems and internal controls arising from the acquisition, and ongoing integration, of LifeWorks Inc.; commencing with the three-month period ended March 31, 2025, we have transitioned to our new segmented reporting structure and have restated comparative amounts on a comparable basis. The TELUS health segment includes: healthcare services, software and technology solutions (including employee and family assistance programs and benefits administration).

The TELUS digital experience segment, which has the U.S. dollar as its primary functional currency, is comprised of digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management, provided by our TELUS International (Cda) Inc. subsidiary. TELUS Corporation's acquisition of the TELUS International (Cda) Inc. non-controlling interests, as described in *Note 28(b)*, may affect our internal and external reporting processes, systems and internal controls, and thus our segmented reporting structure, in future periods.

Intersegment sales are recorded at the exchange value, which is the amount agreed to by the parties.

The segment information regularly reported to our Chief Executive Officer (our chief operating decision-maker), and the reconciliation thereof to our products and services view of revenues, other revenues and income before income taxes, are set out in the following table.

---

| | |
|:---|:---|
| **22** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TELUS technology solutions** | **TELUS technology solutions** | **TELUS technology solutions** | **TELUS technology solutions** | **TELUS technology solutions** | **TELUS technology solutions** | | | **TELUS digital** | **TELUS digital** | | | | |
|  | Mobile | Mobile | Fixed | Fixed | Segment total | Segment total | **TELUS health** | **TELUS health** | **experience** | **experience** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Three-month periods ended<br> September 30(millions) | **2025** | 2024 | **2025** | 2024<br> (restated\*) | **2025** | 2024<br> (restated\*) | **2025** | 2024 | **2025** | 2024 | **2025** | 2024<br> (restated\*) | **2025** | 2024 |
| **Operating revenues** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| External revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service | $**1780** | $1790 | $**1503** | $1509 | $**3283** | $3299 | $**516** | $**436** | $**708** | $675 | $**—** | $— | $**4507** | $4410 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment | **493** | 567 | **66** | 62 | **559** | 629 | **1** | **3** |  |  | **—** |  | **560** | 632 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenues arising from contracts with customers | $**2273** | $2357 | $**1569** | $1571 | **3842** | 3928 | **517** | **439** | **708** | 675 | **—** |  | **5067** | 5042 |
|  |  |  | Other income (*Note 7*) | Other income (*Note 7*) | **29** | 53 | **10** | **1** | **—** | 3 | **—** |  | **39** | 57 |
|  |  |  |  |  | **3871** | 3981 | **527** | **440** | **708** | 678 | **—** |  | **5106** | 5099 |
|  |  |  | Intersegment revenues | Intersegment revenues | **6** | 5 | **1** | **2** | **249** | 219 | **(256)** | (226) | **—** |  |
|  |  |  |  |  | $**3877** | $3986 | $**528** | $**442** | $**957** | $897 | $**(256)** | $(226) | $**5106** | $5099 |
|  |  |  | **EBITDA <sup>1</sup>** | **EBITDA <sup>1</sup>** | $**1625** | $1595 | $**79** | $64 | $**68** | $109 | $**(19)** | $(12) | $**1753** | $1756 |
|  |  |  | Restructuring and other costs included in EBITDA (*Note 16*) | Restructuring and other costs included in EBITDA (*Note 16*) | **60** | 55 | **12** | 9 | **37** | 22 | **—** |  | **109** | 86 |
|  |  |  | **Adjusted EBITDA <sup>1</sup>** | **Adjusted EBITDA <sup>1</sup>** | $**1685** | $1650 | $**91** | $73 | $**105** | $131 | $**(19)** | $(12) | $**1862** | $1842 |
|  |  |  | **Capital expenditures <sup>2</sup>** | **Capital expenditures <sup>2</sup>** | $**570** | $597 | $**56** | $53 | $**42** | $30 | $**(16)** | $(12) | $**652** | $668 |
|  |  |  | **Adjusted EBITDA less capital expenditures <sup>1</sup>** | **Adjusted EBITDA less capital expenditures <sup>1</sup>** | $**1115** | $1053 | $**35** | $20 | $**63** | $101 | $**(3)** | $— | $**1210** | $1174 |
|  |  |  | **Operating revenues – external, other income and intersegment (above)** | **Operating revenues – external, other income and intersegment (above)** | $**3877** | $3986 | $**528** | $**442** | $**957** | $897 | $**(256)** | $(226) | $**5106** | $5099 |
|  |  |  | Goods and services purchased | Goods and services purchased | **1726** | 1749 | **198** | 164 | **226** | 169 | **(208)** | (214) | **1942** | 1868 |
|  |  |  | Employee benefits expense | Employee benefits expense | **526** | 642 | **251** | 214 | **663** | 619 | **(29)** |  | **1411** | 1475 |
|  |  |  | **EBITDA (above)** | **EBITDA (above)** | **1625** | 1595 | **79** | 64 | **68** | 109 | **(19)** | (12) | **1753** | 1756 |
|  |  |  | Depreciation | Depreciation | **529** | 537 | **21** | 14 | **71** | 46 | **—** |  | **621** | 597 |
|  |  |  | Amortization of intangible assets | Amortization of intangible assets | **224** | 220 | **105** | 88 | **61** | 63 | **—** |  | **390** | 371 |
|  |  |  | **Operating income (loss)** | **Operating income (loss)** | $**872** | $838 | $**(47)** | $(38) | $**(64)** | $— | $**(19)** | $(12) | **742** | 788 |
|  |  |  |  |  |  |  |  |  |  |  | Financing costs | Financing costs | **154** | 479 |
|  |  |  |  |  |  |  |  |  |  |  | **Income before income taxes** | **Income before income taxes** | $**588** | $309 |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **23** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TELUS technology solutions** | **TELUS technology solutions** | **TELUS technology solutions** | **TELUS technology solutions** | **TELUS technology solutions** | **TELUS technology solutions** | | | **TELUS digital** | **TELUS digital** | | | | |
|  | Mobile | Mobile | Fixed | Fixed | Segment total | Segment total | **TELUS health** | **TELUS health** | **experience** | **experience** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Nine-month periods ended<br> September 30(millions) | **2025** | 2024 | **2025** | 2024<br> (restated\*) | **2025** | 2024<br> (restated\*) | **2025** | 2024 | **2025** | 2024 | **2025** | 2024<br> (restated\*) | **2025** | 2024 |
| **Operating revenues** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| External revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service | $**5292** | $5315 | $**4510** | $4449 | $**9802** | $9764 | $**1500** | $1294 | $**2139** | $2023 | $**—** | $— | $**13441** | $13081 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment | **1458** | 1506 | **213** | 211 | **1671** | 1717 | **4** | 10 | **—** |  | **—** |  | **1675** | 1727 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenues arising from contracts with customers | $**6750** | $6821 | $**4723** | $4660 | **11473** | 11481 | **1504** | 1304 | **2139** | 2023 | **—** |  | **15116** | 14808 |
|  |  |  | Other income (*Note 7*) | Other income (*Note 7*) | **118** | 110 | **11** | 2 | **—** | 85 | **—** |  | **129** | 197 |
|  |  |  |  |  | **11591** | 11591 | **1515** | 1306 | **2139** | 2108 | **—** |  | **15245** | 15005 |
|  |  |  | Intersegment revenues | Intersegment revenues | **17** | 15 | **5** | 6 | **746** | 649 | **(768)** | (670) | **—** |  |
|  |  |  |  |  | $**11608** | $11606 | $**1520** | $1312 | $**2885** | $2757 | $**(768)** | $(670) | $**15245** | $15005 |
|  |  |  | **EBITDA <sup>1</sup>** | **EBITDA <sup>1</sup>** | $**4744** | $4484 | $**230** | $148 | $**249** | $472 | $**(47)** | $(34) | $**5176** | $5070 |
|  |  |  | Restructuring and other costs included in EBITDA (*Note 16*) | Restructuring and other costs included in EBITDA (*Note 16*) | **194** | 327 | **28** | 54 | **117** | 44 | **—** |  | **339** | 425 |
|  |  |  | **Adjusted EBITDA <sup>1</sup>** | **Adjusted EBITDA <sup>1</sup>** | $**4938** | $4811 | $**258** | $202 | $**366** | $516 | $**(47)** | $(34) | $**5515** | $5495 |
|  |  |  | **Capital expenditures <sup>2</sup>** | **Capital expenditures <sup>2</sup>** | $**1676** | $1873 | $**159** | $147 | $**126** | $96 | $**(44)** | $(32) | $**1917** | $2084 |
|  |  |  | **Adjusted EBITDA less capital expenditures <sup>1</sup>** | **Adjusted EBITDA less capital expenditures <sup>1</sup>** | $**3262** | $2938 | $**99** | $55 | $**240** | $420 | $**(3)** | $(2) | $**3598** | $3411 |
|  |  |  | **Operating revenues – external, other income and intersegment (above)** | **Operating revenues – external, other income and intersegment (above)** | $**11608** | $11606 | $**1520** | $1312 | $**2885** | $2757 | $**(768)** | $(670) | $**15245** | $15005 |
|  |  |  | Goods and services purchased | Goods and services purchased | **5179** | 5120 | **572** | 532 | **588** | 483 | **(692)** | (632) | **5647** | 5503 |
|  |  |  | Employee benefits expense | Employee benefits expense | **1685** | 2002 | **718** | 632 | **2048** | 1802 | **(29)** | (4) | **4422** | 4432 |
|  |  |  | **EBITDA (above)** | **EBITDA (above)** | **4744** | 4484 | **230** | 148 | **249** | 472 | **(47)** | (34) | **5176** | 5070 |
|  |  |  | Depreciation | Depreciation | **1593** | 1687 | **44** | 67 | **177** | 141 | **—** |  | **1814** | 1895 |
|  |  |  | Amortization of intangible assets | Amortization of intangible assets | **702** | 678 | **299** | 268 | **192** | 184 | **—** |  | **1193** | 1130 |
|  |  |  | Impairment of goodwill | Impairment of goodwill | **—** |  | **—** |  | **500** |  | **—** |  | **500** |  |
|  |  |  | **Operating income (loss)** | **Operating income (loss)** | $**2449** | $2119 | $**(113)** | $(187) | $**(620)** | $147 | $**(47)** | $(34) | **1669** | 2045 |
|  |  |  |  |  |  |  |  |  |  |  | Financing costs | Financing costs | **871** | 1255 |
|  |  |  |  |  |  |  |  |  |  |  | **Income before income taxes** | **Income before income taxes** | $**798** | $790 |

---

\* As required by IFRS Accounting Standards, comparative amounts have been restated to conform with the reportable segments presented in the current period. The currently reported TELUS health results were previously included with the TELUS technology solutions' "Fixed" and "Segment total" results.

---

| | |
|:---|:---|
| 1 | Earnings before interest, income taxes, depreciation and amortization (EBITDA), both unadjusted and adjusted, are not standardized financial measures under IFRS Accounting Standards and may not be comparable to similar measures disclosed by other issuers (including those disclosed by TELUS Digital Experience); we define EBITDA as operating revenues and other income less goods and services purchased and employee benefits expense. We calculate adjusted EBITDA to exclude items that do not reflect our ongoing operations and, in our opinion, should not be considered in a long-term valuation metric or included in an assessment of our ability to service or incur debt. We report EBITDA, adjusted EBITDA and adjusted EBITDA less capital expenditures because they are key measures that management uses to evaluate the performance of our business, and EBITDA is also utilized in determining compliance with certain debt covenants. |

---

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| | |
|:---|:---|
| **24** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| 2 | See *Note 31(a)* for a reconciliation of capital asset additions, excluding spectrum licences, to cash payments for capital assets, excluding spectrum licences, reported in the Consolidated statements of cash flows. |

---

---

| | |
|:---|:---|
| **6** | **revenue from contracts with customers** |

---

**(a)** **Revenues** 

In the determination of the minimum transaction prices in contracts with customers, amounts are allocated to fulfilling, or the completion of fulfilling, future contracted performance obligations, which are largely in respect of services to be provided over the duration of the contract. The following table sets out our aggregate estimated minimum transaction prices allocated to remaining unfulfilled, or partially unfulfilled, future contracted performance obligations and the timing of when we might expect to recognize the associated revenues; actual amounts could differ from these estimates due to a variety of factors, including the unpredictable nature of: customer behaviour; industry regulation; the economic environments in which we operate; and competitor behaviour.

---

| | | |
|:---|:---|:---|
| As at (millions) | **September 30, 2025** | December 31, 2024 |
| **Estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations to be recognized as revenue in a future period** <sup>1, 2</sup>** |  |  |
| During the 12-month period ending one year hence | $**2343** | $2408 |
| During the 12-month period ending two years hence | **924** | 976 |
| Thereafter | **126** | 116 |
|  | $**3393** | $3500 |

---

---

| | |
|:---|:---|
| 1 | Excludes constrained variable consideration amounts, amounts arising from contracts originally expected to have a duration of one year or less and, as a permitted practical expedient, amounts arising from contracts that are not affected by revenue recognition timing differences arising from transaction price allocation **or** from contracts under which we may recognize and bill revenue in an amount that corresponds directly with our completed performance obligations. |

---

---

| | |
|:---|:---|
| 2 | IFRS Accounting Standards require the explanation of when we might expect to recognize as revenue the amounts disclosed as the estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations. The estimated amounts disclosed are based upon contractual terms and maturities. Actual minimum transaction price revenues recognized, and the timing thereof, will differ from these estimates primarily due to the frequency with which the actual durations of contracts with customers do not match their contractual maturities. |

---

**(b)** **Accounts receivable** 

---

| | | | |
|:---|:---|:---|:---|
| As at (millions) | Note | **September 30, 2025** | December 31, 2024 |
| Customer accounts receivable |  | $**2713** | $2844 |
| Allowance for doubtful accounts | 4(a) | **(125)** | (119) |
| Billed customer accounts receivable, net of allowance for doubtful accounts |  | **2588** | 2725 |
| Accrued receivables – customer |  | **647** | 604 |
| Billed and unbilled customer accounts receivable, net of allowance for doubtful accounts |  | **3235** | 3329 |
| Accrued receivables – other |  | **409** | 360 |
| Accounts receivable – current |  | $**3644** | $3689 |

---

**(c)** **Contract assets** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | Three months | Three months | Nine months | Nine months |
| &nbsp;&nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Balance, beginning of period | $**862** | $843 | $**939** | $898 |
| Net additions arising from operations | **412** | 410 | **1160** | 1138 |
| Amounts billed in the period and thus reclassified to accounts receivable | **(433)** | (410) | **(1263)** | (1199) |
| Change in impairment allowance, net (*Note 4(a)*) | **(4)** | (2) | **—** | 2 |
| Other | **2** | (2) | **3** |  |
| Balance, end of period <sup>1</sup> | $**839** | $839 | $**839** | $839 |
| **Reconciliation of contract assets presented in the Consolidated statements of financial position – current** |  |  |  |  |
| Gross contract assets |  |  | $**582** | $562 |
| Reclassification <u>to</u> contract liabilities of contracts with contract assets less than contract liabilities |  | 24 | **(17)** | (18) |
| Reclassification <u>from</u> contract liabilities of contracts with contract liabilities less than contract assets |  | 24 | **(120)** | (131) |
|  |  |  | $**445** | $413 |

---

---

| | |
|:---|:---|
| 1 | Timing of amounts to be billed and thus reclassified to accounts receivable is set out in *Note 4(a)*. |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **25** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **7** | **other income** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | Three months | Three months | Nine months | Nine months |
| &nbsp;&nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Government assistance | $**—** | $1 | $**2** | $5 |
| Lease and other sublease revenue | **4** | 3 | **53** | 6 |
| Gain on contributions of real estate to joint ventures (*Note 21(a)*) | **13** | 49 | **21** | 102 |
| Investment income (loss), gain (loss) on disposal of assets and other | **21** |  | **41** | (6) |
| Interest income | **1** | 2 | **2** | 5 |
| Changes in provisions related to business combinations (*Note 25)* | **—** | 2 | **10** | 85 |
|  | $**39** | $57 | $**129** | $197 |

---

---

| | |
|:---|:---|
| **8** | **employee benefits expense** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | Three months | Three months | Nine months | Nine months |
| &nbsp;&nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| **Employee benefits expense – gross** |  |  |  |  |
| Wages and salaries | $**1408** | $1396 | $**4295** | $4186 |
| Share-based compensation <sup>1</sup> (*Note 14*) | **47** | 60 | **144** | 144 |
| Pensions – defined benefit (*Note 15(a)*) | **16** | 16 | **45** | 50 |
| Pensions – defined contribution (*Note 15(b)*) | **32** | 31 | **95** | 90 |
| Restructuring costs <sup>1</sup> (*Note 16(a)*) | **37** | 60 | **181** | 259 |
| Employee health and other benefits | **68** | 73 | **204** | 200 |
|  | **1608** | 1636 | **4964** | 4929 |
| **Capitalized internal labour costs, net** |  |  |  |  |
| Contract acquisition costs (*Note 20*) |  |  |  |  |
| Capitalized | **(30)** | (21) | **(95)** | (67) |
| Amortized | **29** | 23 | **78** | 69 |
| Contract fulfilment costs (*Note 20*) |  |  |  |  |
| Capitalized | **(9)** | (8) | **(22)** | (24) |
| Amortized | **3** | 1 | **8** | 5 |
| Property, plant and equipment | **(75)** | (76) | **(236)** | (243) |
| Intangible assets subject to amortization | **(115)** | (80) | **(275)** | (237) |
|  | **(197)** | (161) | **(542)** | (497) |
|  | $**1411** | $1475 | $**4422** | $4432 |

---

---

| | |
|:---|:---|
| 1 | For the three-month and nine-month periods ended September 30, 2025, $NIL (2024 –$NIL) and $NIL (2024 – $4), respectively, of share-based compensation in the TELUS technology solutions segment was included in restructuring costs. |

---

---

| | |
|:---|:---|
| **26** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **9** | **financing costs** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | Three months | Three months | Nine months | Nine months |
| &nbsp;&nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| **Interest expense** |  |  |  |  |
| *From transactions that <u>only</u> involve the raising of finance* |  |  |  |  |
| Long-term debt, excluding lease liabilities and other (secured) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gross | $**331** | $288 | $**921** | $877 |
| &nbsp;&nbsp;&nbsp;Capitalized <sup>1</sup> (*Note 17, 18(a)*) | **(1)** | (9) | **(10)** | (13) |
| &nbsp;&nbsp;&nbsp;Net | **330** | 279 | **911** | 864 |
| Short-term borrowings and other | **25** | 14 | **54** | 24 |
| Gain on purchase of long-term debt <sup>2</sup> (*Note 26(b)*) | **(222)** |  | **(222)** |  |
| Long-term debt prepayment premium <sup>3</sup> (*Note 4(d)*, *26(g)*) | **48** |  | **48** |  |
|  | **181** | 293 | **791** | 888 |
| *From transactions that <u>do not</u> only involve the raising of finance* |  |  |  |  |
| Long-term debt – lease liabilities (*Note 19, 26(i)*) | **36** | 42 | **119** | 122 |
| Long-term debt – other (secured) (*Note 26(h)*) | **6** | 9 | **20** | 15 |
| Employee defined benefit plans net interest (*Note 15*) | **3** | 3 | **9** | 7 |
| Accretion on provisions (*Note 25*) | **7** | 7 | **21** | 22 |
|  | **52** | 61 | **169** | 166 |
|  | **233** | 354 | **960** | 1054 |
| **Other** |  |  |  |  |
| Foreign exchange | **(64)** | 8 | **(52)** | 2 |
| Unrealized changes in virtual power purchase agreements forward element (*Note 2(a)*) | **—** | 125 | **—** | 228 |
|  | **169** | 487 | **908** | 1284 |
| **Interest income** | **(15)** | (8) | **(37)** | (29) |
|  | $**154** | $479 | $**871** | $1255 |
| Net interest cost (*Note 3*) |  |  | $**1094** | $1033 |
| Interest expense on long-term debt, excluding lease liabilities and other – capitalized <sup>1</sup> |  |  | **(10)** | (13) |
| Gain on purchase of long-term debt |  |  | **(222)** |  |
| Employee defined benefit plans net interest |  |  | **9** | 7 |
| Unrealized changes in virtual power purchase agreements forward element |  |  | **—** | 228 |
|  |  |  | $**871** | $1255 |

---

---

| | |
|:---|:---|
| 1 | Interest on long-term debt, excluding lease liabilities, at a composite rate of 5.3% (2024 – 3.1%) was capitalized to property, plant and equipment assets under construction and to intangible assets with indefinite lives during the period. |

---

---

| | |
|:---|:---|
| 2 | The gain on purchase of long-term debt is net of a $17 loss on the corresponding foreign exchange derivatives (cross currency interest rate swap agreements) terminated. |

---

---

| | |
|:---|:---|
| 3 | Long-term debt prepayment premium includes a $38 effect of a hedging relationship becoming ineffective. |

---

---

| | |
|:---|:---|
| **10** | **income taxes** |

---

**Expense composition and rate reconciliation**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | Three months | Three months | Nine months | Nine months |
| &nbsp;&nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| **Current income tax expense** |  |  |  |  |
| For the current reporting period | $**261** | $190 | $**526** | $483 |
| Adjustments recognized in the current period for income taxes of prior periods | **(22)** | (22) | **(45)** | (28) |
| Pillar Two global minimum tax | **—** | 1 | **1** | 2 |
|  | **239** | 169 | **482** | 457 |
| **Deferred income tax expense** |  |  |  |  |
| Arising from the origination and reversal of temporary differences | **(93)** | (119) | **(182)** | (287) |
| Adjustments recognized in the current period for income taxes of prior periods | **11** | 2 | **11** | 2 |
|  | **(82)** | (117) | **(171)** | (285) |
|  | $**157** | $52 | $**311** | $172 |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **27** |

---

notes to condensed interim consolidated financial statements (unaudited)

Our income tax expense and effective income tax rate differ from those computed by applying the applicable statutory rates for the following reasons:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Three-month periods ended <br> September 30<br> ($ in millions) | **2025** | **2025** | **2024** | **2024** |
| Income taxes computed at applicable statutory rates | $**150** | **25.5%** | $78 | 25.2% |
| Adjustments recognized in the current period for income taxes of prior periods | **(11)** | **(1.9)** | (20) | (6.4) |
| Pillar Two global minimum tax | **—** | **—** | 1 | 0.3 |
| (Non-taxable) non-deductible amounts, net | **16** | **2.8** | (6) | (1.9) |
| Withholding and other taxes | **5** | **0.9** | 6 | 1.9 |
| Losses not recognized | **(1)** | **(0.2)** | 1 | 0.3 |
| Foreign tax differential | **(1)** | **(0.2)** | (4) | (1.3) |
| Other | **(1)** | **(0.2)** | (4) | (1.3) |
| Income tax expense per Consolidated statements of income and other comprehensive income | $**157** | **26.7%** | $52 | 16.8% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Nine - month periods ended <br> September 30<br> ($ in millions) | **2025** | **2025** | **2024** | **2024** |
| Income taxes computed at applicable statutory rates | $**196** | **24.6%** | $191 | 24.2% |
| Adjustments recognized in the current period for income taxes of prior periods | **(34)** | **(4.3)** | (26) | (3.3) |
| Pillar Two global minimum tax | **1** | **0.1** | 2 | 0.3 |
| Impairment of goodwill | **107** | **13.4** |  |  |
| (Non-taxable) non-deductible amounts, net | **19** | **2.4** | (13) | (1.7) |
| Withholding and other taxes | **24** | **3.0** | 25 | 3.2 |
| Losses not recognized | **2** | **0.3** | 4 | 0.5 |
| Foreign tax differential | **(4)** | **(0.5)** | (7) | (0.9) |
| Other | **—** | **—** | (4) | (0.5) |
| Income tax expense per Consolidated statements of income and other comprehensive income | $**311** | **39.0%** | $172 | 21.8% |

---

---

| | |
|:---|:---|
| **28** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **11** | **other comprehensive income** |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Three-month period ended<br> September 30, 2024 | Three-month period ended<br> September 30, 2024 | Three-month period ended<br> September 30, 2024 | Three-month period ended<br> September 30, 2024 | Three-month period ended<br> September 30, 2024 | Three-month period ended<br> September 30, 2025 | Three-month period ended<br> September 30, 2025 | Three-month period ended<br> September 30, 2025 | Three-month period ended<br> September 30, 2025 | Three-month period ended<br> September 30, 2025 |
| (millions) | *Note* | Accumulated<br> balance,<br> beginning of<br> period | Amount<br> arising | Income<br> taxes | Net | Accumulated<br> balance, end<br> of period | Accumulated<br> balance,<br> beginning of<br> period | Amount<br> arising | Income<br> taxes | Net | Accumulated<br> balance, end<br> of period |
| **Items that may subsequently be reclassified to income** |  |  |  |  |  |  |  |  |  |  |  |
| Change in unrealized fair value of derivatives designated as cash flow hedges | *4(e)* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;*Derivatives used to manage **currency risk*** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising |  |  | $(81) | $(4) |  |  |  | $**203** | $**31** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized (gains) losses reclassified to net income |  |  | 71 | 11 |  |  |  | **(156)** | **(25)** |  |  |
|  |  | $(129) | (10) | 7 | $(17) | $(146) | $(284) | **47** | **6** | $**41** | $**(243)** |
| &nbsp;&nbsp;&nbsp;&nbsp;*Derivatives used to manage **other market risks*** | 2(a) |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising |  |  | (5) | (2) |  |  |  | **(16)** | **(5)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized (gains) losses reclassified to net income |  |  | (1) |  |  |  |  | **—** | **—** |  |  |
|  |  | 1 | (6) | (2) | (4) | (3) | 9 | **(16)** | **(5)** | **(11)** | **(2)** |
| Total |  | (128) | (16) | 5 | (21) | (149) | (275) | **31** | **1** | **30** | **(245)** |
| Cumulative foreign currency translation adjustment |  | 77 | 23 |  | 23 | 100 | 151 | **59** | **—** | **59** | **210** |
| **Item never reclassified to income** |  |  |  |  |  |  |  |  |  |  |  |
| Change in measurement of investment financial assets |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising |  |  | 2 | 1 |  |  |  | **—** | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) |  |  |  |  |  |  |  | **1** | **—** |  |  |
|  |  | 75 | 2 | 1 | 1 | 76 | 65 | **1** | **—** | **1** | **66** |
| Accumulated other comprehensive income (loss) |  | $24 | 9 | 6 | 3 | $27 | $(59) | **91** | **1** | **90** | $**31** |
| **Attributable to:** |  |  |  |  |  |  |  |  |  |  |  |
| Common Shares |  | $(4) |  |  |  | $7 | $(85) |  |  |  | $**(27)** |
| Non-controlling interests |  | 28 |  |  |  | 20 | 26 |  |  |  | **58** |
|  |  | $24 |  |  |  | $27 | $(59) |  |  |  | $**31** |
| **Item never reclassified to income** |  |  |  |  |  |  |  |  |  |  |  |
| Employee defined benefit plan re-measurements | *15(a)* |  | (27) | (7) | (20) |  |  | **22** | **6** | **16** |  |
| Other comprehensive income |  |  | $(18) | $(1) | $(17) |  |  | $**113** | $**7** | $**106** |  |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **29** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Nine-month period ended<br> September 30, 2024 | Nine-month period ended<br> September 30, 2024 | Nine-month period ended<br> September 30, 2024 | Nine-month period ended<br> September 30, 2024 | Nine-month period ended<br> September 30, 2024 | Nine-month period ended<br> September 30, 2025 | Nine-month period ended<br> September 30, 2025 | Nine-month period ended<br> September 30, 2025 | Nine-month period ended<br> September 30, 2025 | Nine-month period ended<br> September 30, 2025 |
| (millions) | *Note* | Accumulated<br> balance,<br> beginning of<br> period | Amount<br> arising | Income<br> taxes | Net | Accumulated<br> balance, end<br> of period | Accumulated<br> balance,<br> beginning of<br> period | Amount<br> arising | Income<br> taxes | Net | Accumulated<br> balance, end<br> of period |
| **Items that may subsequently be reclassified to income** |  |  |  |  |  |  |  |  |  |  |  |
| Change in unrealized fair value of derivatives designated as cash flow hedges | *4(e)* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;*Derivatives used to manage **currency risk*** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising |  |  | $153 | $28 |  |  |  | $**(120)** | $**1** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized (gains) losses reclassified to net income |  |  | (131) | (18) |  |  |  | **164** | **26** |  |  |
|  |  | $(158) | 22 | 10 | $12 | $(146) | $(260) | **44** | **27** | $**17** | $**(243)** |
| &nbsp;&nbsp;&nbsp;&nbsp;*Derivatives used to manage **other market risks*** | 2(a) |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising |  |  | 1 |  |  |  |  | **1** | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized (gains) losses reclassified to net income |  |  | (3) | (1) |  |  |  | **(3)** | **(1)** |  |  |
|  |  | (2) | (2) | (1) | (1) | (3) | (1) | **(2)** | **(1)** | **(1)** | **(2)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  | (160) | 20 | 9 | 11 | (149) | (261) | **42** | **26** | **16** | **(245)** |
| Cumulative foreign currency translation adjustment |  | 36 | 64 |  | 64 | 100 | 169 | **41** | **—** | **41** | **210** |
| **Item never reclassified to income** |  |  |  |  |  |  |  |  |  |  |  |
| Change in measurement of investment financial assets |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising |  |  |  |  |  |  |  | **3** | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) |  |  | (2) |  |  |  |  | **7** | **2** |  |  |
|  |  | 78 | (2) |  | (2) | 76 | 58 | **10** | **2** | **8** | **66** |
| Accumulated other comprehensive income (loss) |  | $(46) | 82 | 9 | 73 | $27 | $(34) | **93** | **28** | **65** | $**31** |
| **Attributable to:** |  |  |  |  |  |  |  |  |  |  |  |
| Common Shares |  | $(44) |  |  |  | $7 | $(105) |  |  |  | $**(27)** |
| Non-controlling interests |  | (2) |  |  |  | 20 | 71 |  |  |  | **58** |
|  |  | $(46) |  |  |  | $27 | $(34) |  |  |  | $**31** |
| **Item never reclassified to income** |  |  |  |  |  |  |  |  |  |  |  |
| Employee defined benefit plan re-measurements | 15(a) |  | 42 | 11 | 31 |  |  | **57** | **15** | **42** |  |
| Other comprehensive income |  |  | $124 | $20 | $104 |  |  | $**150** | $**43** | $**107** |  |

---

---

| | |
|:---|:---|
| **30** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **12** | **per share amounts** |

---

Basic net income per Common Share is calculated by dividing net income attributable to Common Shares by the total weighted average number of Common Shares outstanding during the period. Diluted net income per Common Share is calculated to give effect to share option awards and restricted share unit awards.

The following table presents reconciliations of the denominators of the basic and diluted per share computations. Net income was equal to diluted net income for all periods presented.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | **Three months** | **Three months** | **Nine months** | **Nine months** |
| &nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Basic total weighted average number of Common Shares outstanding | **1535** | 1492 | **1525** | 1483 |
| Effect of dilutive securities – Restricted share units | **8** | 5 | **6** | 5 |
| Diluted total weighted average number of Common Shares outstanding | **1543** | 1497 | **1531** | 1488 |

---

For the three-month and nine-month periods ended September 30, 2025 and 2024, no outstanding equity-settled restricted share unit awards were excluded in the calculation of diluted income per Common Share. For the three-month and nine-month periods ended September 30, 2025, 1 million (2024 – 1 million) and 1 million (2024 – 1 million) TELUS Corporation share option awards were excluded in the calculation of diluted income per Common Share.

---

| | |
|:---|:---|
| **13** | **dividends per share** |

---

**(a)** **TELUS Corporation Common Share dividends declared** 

Nine-month periods ended <br> September 30 (millions<br> except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **TELUS Corporation** | Declared | Declared | Paid to |  |
| &nbsp;&nbsp;&nbsp;**Common Share dividends** | Effective | Per share | shareholders | Total |
| **2025** |  |  |  |  |
| Quarter 1 dividend | **Mar. 11, 2025** | $**0.4023** | **Apr. 1, 2025** | $**610** |
| Quarter 2 dividend | **Jun. 10, 2025** | **0.4163** | **July 2, 2025** | **634** |
| Quarter 3 dividend | **Sept. 10, 2025** | **0.4163** | **Oct. 1, 2025** | **639** |
|  |  | $**1.2349** |  | $**1883** |
| **2024** |  |  |  |  |
| Quarter 1 dividend | Mar. 11, 2024 | $0.3761 | Apr. 1, 2024 | $554 |
| Quarter 2 dividend | Jun. 10, 2024 | 0.3891 | July 2, 2024 | 577 |
| Quarter 3 dividend | Sept. 10, 2024 | 0.3891 | Oct. 1, 2024 | 578 |
|  |  | $1.1543 |  | $1709 |

---

On November 6, 2025, the Board of Directors declared a quarterly dividend of $0.4184 per share on issued and outstanding TELUS Corporation Common Shares payable on January 2, 2026, to holders of record at the close of business on December 11, 2025. The final amount of the dividend payment depends upon the number of TELUS Corporation Common Shares issued and outstanding at the close of business on December 11, 2025.

**(b)** **Dividend Reinvestment and Share Purchase Plan** 

We have a Dividend Reinvestment and Share Purchase Plan under which eligible holders of TELUS Corporation Common Shares may acquire additional TELUS Corporation Common Shares by reinvesting dividends and by making additional optional cash payments to the trustee. Under this plan, we have the option of offering TELUS Corporation Common Shares from Treasury or having the trustee acquire TELUS Corporation Common Shares in the stock market. At our discretion, under the plan, we may offer TELUS Corporation Common Shares at a discount of up to 5% from the market price. Effective with our dividends paid October 1, 2019, we have offered TELUS Corporation Common Shares from Treasury at a discount of 2%. During the three-month and nine-month periods ended September 30, 2025, eligible shareholders who participated in the plan elected to reinvest dividends declared of $211 million (2024 –$177 million) and $614 million (2024 – $466 million), respectively.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **31** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **14** | **share-based compensation** |

---

**(a)** **Details of share-based compensation expense** 

Included in Employee benefits expense in the Consolidated statements of income and other comprehensive income, and in Cash provided by operating activities in the Consolidated statements of cash flows, are the share-based compensation amounts set out in the accompanying table.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Periods ended September 30 (millions) | | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | *Note* | Employee<br> benefits<br> expense <sup>1</sup> | Associated<br> operating<br> cash<br> outflows | Statement<br> of cash<br> flows adjustment | Employee<br> benefits<br> expense | Associated<br> operating <br> cash<br> outflows | Statement<br> of cash<br> flows<br> adjustment |
| **THREE-MONTH** | |  |  |  |  |  |  |
| Restricted share units<sup></sup> | *(b)* | $**43** | $**(1)** | $**42** | $51 | $(7) | $44 |
| Employee share purchase plan | *(c)* | **4** | **(4)** | **—** | 9 | (9) |  |
|  | | $**47** | $**(5)** | $**42** | $60 | $(16) | $44 |
| TELUS technology solutions <sup>2</sup> | | $**34** | $**(5)** | $**29** | $37 | $(15) | $22 |
| TELUS health <sup>2</sup> | | **5** | **—** | **5** | 3 |  | 3 |
| TELUS digital experience <sup>3</sup> | | **8** | **—** | **8** | 20 | (1) | 19 |
|  | | $**47** | $**(5)** | $**42** | $60 | $(16) | $44 |
| **NINE-MONTH** | |  |  |  |  |  |  |
| Restricted share units<sup></sup> | *(b)* | $**126** | $**(6)** | $**120** | $123 | $(13) | $110 |
| Employee share purchase plan | *(c)* | **17** | **(17)** | **—** | 25 | (25) |  |
| Share option awards | *(d)* | **1** | **—** | **1** |  |  |  |
|  | | $**144** | $**(23)** | $**121** | $148 | $(38) | $110 |
| TELUS technology solutions <sup>2</sup> | | $**104** | $**(18)** | $**86** | $104 | $(33) | $71 |
| TELUS health <sup>2</sup> | | **13** | **—** | **13** | 9 |  | 9 |
| TELUS digital experience <sup>3</sup> | | **27** | **(5)** | **22** | 35 | (5) | 30 |
|  | | $**144** | $**(23)** | $**121** | $148 | $(38) | $110 |

---

---

| | |
|:---|:---|
| 1 | Within employee benefits expense (see *Note 8*) for the three-month and nine-month periods ended September 30, 2025, restricted share units expense of $43 (2024 – $51) and $126 (2024 – $119), respectively, is presented as share-based compensation expense and the balance is included in restructuring costs (see *Note 16*) of the TELUS technology solutions segment. |

---

---

| | |
|:---|:---|
| 2 | Comparative amounts have been adjusted for change in segmentation (see *Note 5*). |

---

---

| | |
|:---|:---|
| 3 | During the three-month period ended June 30, 2024, the written put options in respect of non-controlling interests associated with the WillowTree acquisition were renegotiated, which resulted in: a change in provisions for business combinations; the institution of a maximum payout for the non-controlling interests associated with the WillowTree acquisition; and the awarding of share-based compensation. The expense associated with these awards was $4 (2024 - $10) and $5 (2024 - $10), respectively, for the three-month and nine-month periods ended September 30, 2025. |

---

**(b)** **Restricted share units** 

*TELUS Corporation restricted share units*

We also award restricted share units that largely have the same features as our general restricted share units, but have a variable payout (0% – 200%) that depends upon the achievement of: our total customer connections performance condition (with a weighting of 33-1/3%; 2024 and prior awards, 25%); our free cash flow<sup>\*</sup> performance condition (with a weighting of 33-1/3%; 2024 and prior awards, NIL%); and the total shareholder return on TELUS Corporation Common Shares relative to international peer groups of telecommunications companies (with a weighting of 33-1/3%; 2024 and prior awards, 75%). The grant-date fair values of the notional subsets of our restricted share units affected by the total customer connections performance condition and the free cash flow performance condition equal the fair market value of the corresponding TELUS Corporation Common Shares at the grant date; we include these notional subsets in the presentation of our restricted share units with only service conditions. For the notional subset of our restricted share units affected by the relative total shareholder return performance condition, we estimate fair value using a Monte Carlo simulation due to the variable payout. Restricted share units granted in 2025 and 2024 are accounted for as equity-settled, based on their expected settlement method when granted.

\* Free cash flow is not a standardized financial measure under IFRS Accounting Standards and might not be comparable to similar measures presented by other issuers (see *Note 3*).

---

| | |
|:---|:---|
| **32** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

The following table presents a summary of outstanding TELUS Corporation non-vested restricted share units.

---

| | | |
|:---|:---|:---|
| As at | **September 30,<br> 2025** | December 31,<br> 2024 |
| **Restricted share units without market performance conditions** |  |  |
| Restricted share units with service conditions only | **11284944** | 6896228 |
| Notional subset affected by non-market performance conditions | **1337018** | 556308 |
|  | **12621962** | 7452536 |
| **Restricted share units with market performance conditions** |  |  |
| Notional subset affected by relative total shareholder return performance condition | **2009653** | 1513481 |
| Number of non-vested restricted share units | **14631615** | 8966017 |

---

The following table presents a summary of the activity related to TELUS Corporation restricted share units without market performance conditions.

---

| | | | |
|:---|:---|:---|:---|
|  | Number of restricted <br> share units <sup>1</sup> | Number of restricted <br> share units <sup>1</sup> | |
|  | Non-vested | Vested | Weighted<br> average grant-<br>date fair value |
| **THREE-MONTH PERIOD** |  |  |  |
| Outstanding, July 1, 2025 |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-vested | 12500934 |  | $23.56 |
| &nbsp;&nbsp;&nbsp;Vested |  | 33529 | $26.05 |
| Granted |  |  |  |
| &nbsp;&nbsp;&nbsp;Initial award | **137272** | **—** | $**22.43** |
| &nbsp;&nbsp;&nbsp;In lieu of dividends | **236920** | **640** | $**21.79** |
| Vested | **(58460)** | **58460** | $**24.01** |
| Settled |  |  |  |
| &nbsp;&nbsp;&nbsp;In equity | **—** | **(42423)** | $**24.70** |
| &nbsp;&nbsp;&nbsp;In cash | **—** | **(16662)** | $**20.63** |
| Forfeited | **(194704)** | **—** | $**24.74** |
| Outstanding, September 30, 2025 |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-vested | **12621962** | **—** | $**23.51** |
| &nbsp;&nbsp;&nbsp;Vested | **—** | **33544** | $**26.03** |
| **NINE-MONTH PERIOD** |  |  |  |
| Outstanding, January 1, 2025 |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-vested | 7452536 |  | $25.03 |
| &nbsp;&nbsp;&nbsp;Vested |  | 32723 | $26.17 |
| Granted |  |  |  |
| &nbsp;&nbsp;&nbsp;Initial award | **5103072** | **—** | $**21.71** |
| &nbsp;&nbsp;&nbsp;In lieu of dividends | **630716** | **1967** | $**20.66** |
| Vested | **(140747)** | **140747** | $**24.33** |
| Settled |  |  |  |
| &nbsp;&nbsp;&nbsp;In equity | **—** | **(52486)** | $**24.67** |
| &nbsp;&nbsp;&nbsp;In cash | **—** | **(89407)** | $**23.82** |
| Forfeited | **(423615)** | **—** | $**25.35** |
| **Outstanding, September 30, 2025** |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-vested | **12621962** | **—** | $**23.51** |
| &nbsp;&nbsp;&nbsp;Vested | **—** | **33544** | $**26.03** |

---

---

| | |
|:---|:---|
| 1 | Excluding the notional subset of restricted share units affected by the relative total shareholder return performance condition. |

---

*TELUS International (Cda) Inc. restricted share units*

We also award restricted share units that largely have the same features as the TELUS Corporation restricted share units. One subset of these units has a variable payout (0% – 200%) that depends upon TELUS Digital Experience financial performance (with a weighting of 50%) and the total shareholder return of TELUS International (Cda) Inc. subordinate voting shares relative to an international peer group of customer experience and digital IT services companies (with a weighting of 50%). Another subset of these units has a variable payout (0% – 300%) that depends upon the financial performance of certain TELUS Digital Experience products and services. For the notional subset of units affected by financial performance conditions, the grant-date fair value equals the fair market value of the corresponding subordinate voting shares at the grant date. For the notional subset of our restricted share units affected by the relative total shareholder return performance condition, we estimate fair value using a Monte Carlo simulation due to the variable payout. Restricted share units granted in 2025 and 2024 are accounted for as equity-settled, based on their expected settlement method when granted.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **33** |

---

notes to condensed interim consolidated financial statements (unaudited)

The following table presents a summary of the activity related to TELUS International (Cda) Inc. restricted share units.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Number of restricted <br> share units | Number of restricted <br> share units | Weighted<br> average<br> grant-date | Weighted<br> average<br> grant-date |
|  | Non-vested | Vested | fair value | fair value |
| **THREE-MONTH PERIOD** |  |  |  |  |
| Outstanding, July 1, 2025 | 21753580 |  | US$ | 4.87 |
| Granted – initial award | **890312** | **—** | **US$** | **3.71** |
| Vested | **(76030)** | **76030** | **US$** | **3.58** |
| Settled in equity | **—** | **(76030)** | **US$** | **3.60** |
| Forfeited | **(428857)** | **—** | **US$** | **4.79** |
| Outstanding, September 30, 2025 | **22139005** | **—** | **US$** | **4.83** |
| **NINE-MONTH PERIOD** |  |  |  |  |
| Outstanding, January 1, 2025 | 20180936 |  | US$ | 6.33 |
| Granted – initial award | **9772565** | **—** | **US$** | **2.91** |
| Vested | **(3243815)** | **3243815** | **US$** | **7.75** |
| Settled in equity | **—** | **(3236838)** | **US$** | **7.76** |
| Forfeited | **(4570681)** | **(6977)** | **US$** | **5.27** |
| **Outstanding, September 30, 2025** | **22139005** | **—** | **US$** | **4.83** |

---

**(c)** **TELUS Corporation employee share purchase plan** 

We have an employee share purchase plan under which eligible employees can purchase TELUS Corporation Common Shares through regular payroll deductions. In respect of TELUS Corporation Common Shares held within the employee share purchase plan, dividends declared thereon during the three-month and nine-month period ended September 30, 2025, of $15 million (2024 – $13 million) and $43 million (2024 – $40 million), respectively, were to be reinvested in TELUS Corporation Common Shares acquired by the trustee from Treasury, with a discount applicable, as set out in *Note 13(b)*.

**(d)** **Share option awards** 

*TELUS Corporation share options*

Employees may be granted share option awards to purchase TELUS Corporation Common Shares at an exercise price equal to the fair market value at the time of grant. Share option awards granted under the plan may be exercised over specific periods not to exceed seven years from the date of grant.

These share option awards have a net-equity settlement feature. The optionee does not have the choice of exercising the net-equity settlement feature; it is at our option whether the exercise of a share option award is settled as a share option or settled using the net-equity settlement feature.

The following table presents a summary of the activity related to the TELUS Corporation share option plan.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended September 30, 2025 | Three months | Three months | Nine months | Nine months |
|  | Number of share options | Weighted average share option price | Number of share options | Weighted average share option price |
| Outstanding, beginning of period | 1438796 | $22.47 | 1519501 | $22.45 |
| Exercised <sup>2</sup> | **(19592)** | $**21.21** | **(45147)** | $**21.20** |
| Forfeited | **(14350)** | $**23.01** | **(69500)** | $**22.55** |
| Outstanding, end of period | **1404854** | $**22.48** | **1404854** | $**22.48** |
| Exercisable, end of period |  |  | **1404854** | $**22.48** |

---

1 The weighted average remaining contractual life is 1.7 years.

---

| | |
|:---|:---|
| 2 | For the three-month and nine-month periods ended September 30, 2025, the weighted average prices at the dates of exercise were $22.54 and $22.37, respectively. |

---

*TELUS International (Cda) Inc. share options*

Employees may be granted equity share options (equity-settled) to purchase TELUS International (Cda) Inc. subordinate voting shares at an exercise price equal to, or a multiple of, the fair market value at the time of grant and/or phantom share options (cash-settled) that provide them with exposure to appreciation in the TELUS International (Cda) Inc. subordinate voting share price. Share option awards granted under the plan may be exercised over specific periods not to exceed ten years from the time of grant. All equity share option awards and most phantom share option awards have a variable payout (0% – 100%) that depends upon the achievement of TELUS Digital Experience financial performance and non-market quality-of-service performance conditions.

The following table presents a summary of the activity related to the TELUS International (Cda) Inc. share option plan.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Periods ended September 30, 2025 | Three months | Three months | Three months | Nine months | Nine months | Nine months |
|  | Number of<br> share<br> options | Weighted<br> average share<br> option price <sup>1</sup> | Weighted<br> average share<br> option price <sup>1</sup> | Number of<br> share<br> options | Weighted<br> average share<br> option price <sup>1</sup> | Weighted<br> average share<br> option price <sup>1</sup> |
| Outstanding, beginning of period | 5269449 | US$ | 6.57 | 5352728 | US$ | 6.53 |
| Forfeited | **(142511)** | **US$** | **12.05** | **(225790)** | **US$** | **12.05** |
| Outstanding, end of period | **5126938** | **US$** | **6.42** | **5126938** | **US$** | **6.42** |
| Exercisable, end of period |  |  |  | **2397035** | **US$** | **9.53** |

---

---

| | |
|:---|:---|
| 1 | For 2,729,903 share options, the price is $3.69 per TELUS International (Cda) Inc. subordinated voting share and the weighted average remaining contractual life is 9.0 years; for 2,096,582 share options, the range of share option prices is US$4.87 – US$8.95 and the weighted average remaining contractual life is 1.2 years; for the balance of share options, the price is US$25.00 and the weighted average remaining contractual life is 5.2 years. |

---

---

| | |
|:---|:---|
| **34** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **15** | **employee future benefits** |

---

**(a)** **Defined benefit pension plans – summary** 

*Amounts in the primary financial statements related to defined benefit pension plans*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Three-month periods ended September 30 |  | **2025** | **2025** | **2025** | 2024 | 2024 | 2024 |
| ($ in millions) | Note | Plan assets | Defined<br> benefit<br> obligations<br> accrued <sup>1</sup> | Net | Plan assets | Defined<br> benefit<br> obligations<br> accrued <sup>1</sup> | Net |
| **Employee benefits expense** | 8 |  |  |  |  |  |  |
| Benefits earned for current service |  | $**—** | $**(19)** |  | $— | $(19) |  |
| Employees' contributions |  | **4** | **—** |  | 4 |  |  |
| Administrative fees |  | **(1)** | **—** |  | (1) |  |  |
|  |  | **3** | **(19)** | $**(16)** | 3 | (19) | $(16) |
| **Financing costs** | 9 |  |  |  |  |  |  |
| Notional income on plan assets <sup>2</sup> and interest on defined benefit obligations accrued |  | **108** | **(97)** |  | 105 | (97) |  |
| Interest effect on asset ceiling limit |  | **(14)** | **—** |  | (11) |  |  |
|  |  | **94** | **(97)** | **(3)** | 94 | (97) | (3) |
| **DEFINED BENEFIT (COST) INCLUDED IN NET INCOME** <sup>3</sup> |  |  |  | **(19)** |  |  | (19) |
| **Other comprehensive income** | 11 |  |  |  |  |  |  |
| Difference between actual results and estimated plan assumptions <sup>4</sup> |  | **173** | **—** |  | 317 |  |  |
| Changes in plan financial assumptions <sup>5</sup> |  | **—** | **(10)** |  |  | (388) |  |
| Changes in the effect of limiting net defined benefit plan assets to the asset ceiling |  | **(141)** | **—** |  | 44 |  |  |
|  |  | **32** | **(10)** | **22** | 361 | (388) | (27) |
| **DEFINED BENEFIT (COST) INCLUDED IN COMPREHENSIVE INCOME** <sup>3</sup> |  |  |  | $**3** |  |  | $(46) |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **35** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Nine-month periods ended September 30 |  | **2025** | **2025** | **2025** | 2024 | 2024 | 2024 |
| ($ in millions) | *Note* | Plan assets | Defined<br> benefit<br> obligations<br> accrued <sup>1</sup> | Net | Plan assets | Defined<br> benefit<br> obligations<br> accrued <sup>1</sup> | Net |
| **Employee benefits expense** | *8* |  |  |  |  |  |  |
| Benefits earned for current service |  | $**—** | $**(55)** |  | $— | $(59) |  |
| Benefits earned for past service |  | **—** | **—** |  |  | (1) |  |
| Employees' contributions |  | **13** | **—** |  | 13 |  |  |
| Administrative fees |  | **(3)** | **—** |  | (3) |  |  |
|  |  | **10** | **(55)** | $**(45)** | 10 | (60) | $(50) |
| **Financing costs** | *9* |  |  |  |  |  |  |
| Notional income on plan assets <sup>2</sup> and interest on defined benefit obligations accrued |  | **323** | **(289)** |  | 315 | (290) |  |
| Interest effect on asset ceiling limit |  | **(43)** | **—** |  | (32) |  |  |
|  |  | **280** | **(289)** | **(9)** | 283 | (290) | (7) |
| **DEFINED BENEFIT (COST) INCLUDED IN NET INCOME** <sup>3</sup> |  |  |  | **(54)** |  |  | (57) |
| **Other comprehensive income** | *11* |  |  |  |  |  |  |
| Difference between actual results and estimated plan assumptions <sup>4</sup> |  | **211** | **—** |  | 312 |  |  |
| Changes in plan financial assumptions <sup>5</sup> |  | **—** | **90** |  |  | (61) |  |
| Changes in the effect of limiting net defined benefit plan assets to the asset ceiling |  | **(244)** | **—** |  | (209) |  |  |
|  |  | **(33**) | **90** | **57** | 103 | (61) | 42 |
| **DEFINED BENEFIT (COST) INCLUDED IN COMPREHENSIVE INCOME** <sup>3</sup> |  |  |  | **3** |  |  | (15) |
| **AMOUNTS INCLUDED IN OPERATING ACTIVITIES CASH FLOWS** |  |  |  |  |  |  |  |
| Employer contributions |  | **16** | **—** | **16** | 16 |  | 16 |
| **BENEFITS PAID BY PLANS** |  | **(352)** | **352** | **—** | (351) | 351 |  |
| **PLAN ACCOUNT BALANCES** <sup>6</sup> |  |  |  |  |  |  |  |
| Change in period |  | **(79)** | **98** | **19** | 61 | (60) | 1 |
| Balance, beginning of period |  | **8262** | **(8452)** | **(190)** | 8352 | (8489) | (137) |
| Balance, end of period |  | $**8183** | $**(8354)** | $**(171)** | $8413 | $(8549) | $(136) |
| **FUNDED STATUS – PLAN SURPLUS (DEFICIT)** |  |  |  |  |  |  |  |
| Pension plans that have plan assets in excess of defined benefit obligations accrued <sup>7</sup> | *20* | $**8173** | $**(7900)** | $**273** | $7556 | $(7240) | $316 |
| Pension plans that have defined benefit obligations accrued in excess of plan assets <sup>8</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Funded |  | **10** | **(229)** | **(219)** | 857 | (1086) | (229) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unfunded |  | **—** | **(225)** | **(225)** |  | (223) | (223) |
|  | *27* | **10** | **(454)** | **(444)** | 857 | (1309) | (452) |
|  |  | $**8183** | $**(8354)** | $**(171)** | $8413 | $(8549) | $(136) |

---

---

| | |
|:---|:---|
| 1 | Defined benefit obligations accrued are the actuarial present values of benefits attributed to employee services rendered to a particular date. |
| 2 | The interest income on the plan assets portion of the employee defined benefit plans net interest amount included in Financing costs reflects a rate of return on plan assets equal to the discount rate used in determining the defined benefit obligations accrued at the end of the immediately preceding fiscal year. |
| 3 | Excluding income taxes. |
| 4 | Financial assumptions in respect of plan assets (interest income on plan assets included in Financing costs reflects a rate of return on plan assets equal to the discount rate used in determining the defined benefit obligations accrued) and demographic assumptions in respect of the actuarial present values of the defined benefit obligations accrued, as at the end of the immediately preceding fiscal year for both. |
| 5 | The discount rate used to measure the defined benefit obligations accrued at September 30, 2025, was 4.74% (December 31, 2024 – 4.65%). |
| 6 | Effect of asset ceiling limit at September 30, 2025, was $1,514 (December 31, 2024 – $1,227). |
| 7 | Presented in the Consolidated statements of financial position as Other long-term assets. |
| 8 | Presented in the Consolidated statements of financial position as Other long-term liabilities. |

---

---

| | |
|:---|:---|
| **36** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

**(b)** **Defined contribution plans – expense** 

Our total defined contribution pension plan costs included as Employee benefits expense in the Consolidated statements of income and other comprehensive income are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | Three months | Three months | Nine months | Nine months |
| &nbsp;&nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Union pension plan contributions | $**3** | $4 | $**9** | $10 |
| Other defined contribution pension plans | **29** | 27 | **86** | 80 |
|  | $**32** | $31 | $**95** | $90 |

---

---

| | |
|:---|:---|
| **16** | **restructuring and other costs** |

---

**(a)** **Details of restructuring and other costs** 

With the objective of reducing ongoing costs, we incur associated incremental non-recurring restructuring costs, as further discussed in *(b)* following. We may also incur atypical charges when undertaking major or transformational changes to our business or operating models or during post-acquisition business integration. In other costs, we include incremental atypical external costs incurred in connection with business acquisition or disposition activity; significant litigation costs in respect of losses or settlements; and adverse retrospective regulatory decisions.

Restructuring and other costs presented in the Consolidated statements of income and other comprehensive income are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | Three months | Three months | Nine months | Nine months |
| &nbsp;&nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| **Restructuring <sup>1</sup> *(b)*** |  |  |  |  |
| Goods and services purchased | $**47** | $25 | $**123** | $163 |
| Employee benefits expense | **37** | 60 | **181** | 259 |
|  | **84** | 85 | **304** | 422 |
| **Other *(c)*** |  |  |  |  |
| Goods and services purchased | **25** | 1 | **35** | 3 |
| **Total** |  |  |  |  |
| Goods and services purchased | **72** | 26 | **158** | 166 |
| Employee benefits expense | **37** | 60 | **181** | 259 |
|  | $**109** | $86 | $**339** | $425 |

---

---

| | |
|:---|:---|
| 1 | For the three-month and nine-month periods ended September 30, 2025, excludes real estate rationalization-related restructuring net impairments of property, plant and equipment of $(4) (2024 – $3) and $NIL (2024 – $102), respectively, which are included in depreciation. |

---

**(b)** **Restructuring provisions** 

Employee-related provisions and other provisions, as presented in *Note 25,* include amounts for restructuring activities. In 2025, restructuring activities included ongoing and incremental efficiency initiatives, some involving employee-related costs and real estate rationalization. These initiatives were intended to enhance our long-term operating productivity and competitiveness.

**(c)** **Other** 

We incurred incremental external costs in connection with business combinations during the three-month and nine-month periods ended September 30, 2025 and 2024. We have included in other costs the non-recurring atypical business integration expenditures associated with these business acquisitions, which qualify as neither restructuring costs nor part of the fair value of the net assets acquired.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **37** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **17** | **property, plant and equipment** |

---

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Owned assets | Owned assets | Owned assets | Owned assets | Owned assets | Owned assets | Owned assets | Right-of-use lease assets (*Note 19*) | Right-of-use lease assets (*Note 19*) | Right-of-use lease assets (*Note 19*) | Right-of-use lease assets (*Note 19*) |  |
| (millions) | Note | Network assets | Buildings and leasehold improvements | Computer hardware and other | Land | Investment property | Assets under construction | Total | Network assets | Real estate | Other | Total | Total |
| **AT COST** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Balance as at January 1, 2025 |  | $37384 | $3982 | $1871 | $88 | $46 | $505 | $43876 | $1733 | $2549 | $122 | $4404 | $48280 |
| Additions |  | **566** | **39** | **42** | **—** | **—** | **582** | **1229** | **640** | **259** | **8** | **907** | **2136** |
| Additions arising from business acquisitions | 18(b) | **—** | **5** | **4** | **—** | **—** | **—** | **9** | **—** | **21** | **—** | **21** | **30** |
| Assets under construction put into service |  | **128** | **57** | **74** | **—** | **—** | **(259)** | **—** | **—** | **—** | **—** | **—** | **—** |
| Transfers |  | **172** | **—** | **5** | **—** | **—** | **—** | **177** | **(177)** | **—** | **—** | **(177)** | **—** |
| Dispositions, retirements and other |  | **(598)** | **(40)** | **(48)** | **(2)** | **—** | **—** | **(688)** | **(14)** | **—** | **(51)** | **(65)** | **(753)** |
| Net foreign exchange differences |  | **(2)** | **(2)** | **(3)** | **—** | **—** | **4** | **(3)** | **—** | **9** | **—** | **9** | **6** |
| **Balance as at September 30, 2025** |  | $**37650** | $**4041** | $**1945** | $**86** | $**46** | $**832** | $**44600** | $**2182** | $**2838** | $**79** | $**5099** | $**49699** |
| **ACCUMULATED DEPRECIATION** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Balance as at January 1, 2025 |  | $25519 | $2467 | $1328 | $— | $— | $— | $29314 | $247 | $1329 | $53 | $1629 | $30943 |
| Depreciation <sup>1</sup> |  | **1144** | **119** | **131** | **—** | **1** | **—** | **1395** | **187** | **215** | **17** | **419** | **1814** |
| Transfers |  | **70** | **—** | **3** | **—** | **—** | **—** | **73** | **(73)** | **—** | **—** | **(73)** | **—** |
| Dispositions, retirements and other |  | **(589)** | **(21)** | **(45)** | **—** | **—** | **—** | **(655)** | **—** | **(17)** | **(55)** | **(72)** | **(727)** |
| Net foreign exchange differences |  | **(1)** | **(1)** | **(2)** | **—** | **—** | **—** | **(4)** | **—** | **—** | **—** | **—** | **(4)** |
| **Balance as at September 30, 2025** |  | $**26143** | $**2564** | $**1415** | $**—** | $**1** | $**—** | $**30123** | $**361** | $**1527** | $**15** | $**1903** | $**32026** |
| **NET BOOK VALUE** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Balance as at December 31, 2024 |  | $11865 | $1515 | $543 | $88 | $46 | $505 | $14562 | $1486 | $1220 | $69 | $2775 | $17337 |
| **Balance as at September 30, 2025** |  | $**11507** | $**1477** | $**530** | $**86** | $**45** | $**832** | $**14477** | $**1821** | $**1311** | $**64** | $**3196** | $**17673** |

---

---

| | |
|:---|:---|
| 1 | For the nine-month periods ended September 30, 2025, depreciation includes $(2) in respect of impairment (recovery of impairment) of real estate right-of-use lease assets. |

---

As at September 30, 2025, our contractual commitments for the property, plant and equipment acquisitions totalled $212 million over a period ending December 31, 2027 (December 31, 2024 – $267 million over a period ending December 31, 2027).

---

| | |
|:---|:---|
| **38** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **18** | **intangible assets and goodwill** |

---

**(a)** **Intangible assets and goodwill, net** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | Intangible assets subject to amortization | Intangible assets subject to amortization | Intangible assets subject to amortization | Intangible assets subject to amortization | Intangible assets subject to amortization | Intangible<br> assets with<br> indefinite lives | | | |
| ($ in millions except footnote amounts) | Note | Customer<br> contracts, related<br> customer<br> relationships and<br> subscriber base | Software | Access to<br> rights-of-way,<br> crowdsource<br> assets and other | Assets under<br> construction | Total | Spectrum<br> licences | Total<br> intangible<br> assets | Goodwill <sup>1</sup> | Total<br> intangible<br> assets and<br> goodwill |
| **AT COST** |  |  |  |  |  |  |  |  |  |  |
| Balance as at January 1, 2025 |  | $5742 | $8649 | $622 | $474 | $15487 | $13206 | $28693 | $10928 | $39621 |
| Additions |  | **22** | **70** | **7** | **606** | **705** | **—** | **705** | **—** | **705** |
| Additions arising from business acquisitions | *(b)* | **265** | **102** | **2** | **—** | **369** | **—** | **369** | **380** | **749** |
| Assets under construction put into service |  | **5** | **504** | **—** | **(509)** | **—** | **—** | **—** | **—** | **—** |
| Dispositions, retirements and other (including capitalized interest) | 9 | **(23)** | **(223)** | **(23)** | **—** | **(269)** | **10** | **(259)** | **—** | **(259)** |
| Net foreign exchange differences |  | **11** | **(2)** | **(9)** | **—** | **—** | **—** | **—** | **39** | **39** |
| **Balance as at September 30, 2025** |  | $**6022** | $**9100** | $**599** | $**571** | $**16292** | $**13216** | $**29508** | $**11347** | $**40855** |
| **ACCUMULATED AMORTIZATION** |  |  |  |  |  |  |  |  |  |  |
| Balance as at January 1, 2025 |  | $2043 | $5770 | $287 | $— | $8100 | $— | $8100 | $364 | $8464 |
| Amortization |  | **378** | **766** | **49** | **—** | **1193** | **—** | **1193** | **—** | **1193** |
| Impairment |  | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **500** | **500** |
| Dispositions, retirements and other |  | **—** | **(233)** | **(35)** | **—** | **(268)** | **—** | **(268)** | **—** | **(268)** |
| Net foreign exchange differences |  | **23** | **—** | **—** | **—** | **23** | **—** | **23** | **6** | **29** |
| **Balance as at September 30, 2025** |  | $**2444** | $**6303** | $**301** | $**—** | $**9048** | $**—** | $**9048** | $**870** | $**9918** |
| **NET BOOK VALUE** |  |  |  |  |  |  |  |  |  |  |
| Balance as at December 31, 2024 |  | $3699 | $2879 | $335 | $474 | $7387 | $13206 | $20593 | $10564 | $31157 |
| **Balance as at September 30, 2025** |  | $**3578** | $**2797** | $**298** | $**571** | $**7244** | $**13216** | $**20460** | $**10477** | $**30937** |

---

---

| | |
|:---|:---|
| 1 | Accumulated amortization of goodwill of $364 million is amortization recorded before 2002 and an impairment recorded in the current year, as set out in footnote 2 following. |

---

---

| | |
|:---|:---|
| 2 | As at June 30, 2025, relevant events and circumstances were not consistent with those existing at the time of the December 2024 annual test and were such that it was considered appropriate to test the carrying value of the TELUS digital experience cash-generating unit goodwill. During the six-month period ended June 30, 2025, the TELUS digital experience cash-generating unit's competitive industry continued to experience prolonged macroeconomic pressures affecting the level and timing of customer demand, with commensurate impacts on our key future growth estimates, and the June 30, 2025, test, using an estimated recoverable amount of $4.5 billion, resulted in a $0.5 billion goodwill impairment. As at September 30, 2025, relevant events and circumstances continued to be inconsistent with those existing at the time of the December 2024 annual test and were such that it was considered appropriate to again test the carrying value of the TELUS digital experience cash-generating unit goodwill; the September 30, 2025, test, using an estimated recoverable amount of $4.6 billion, equal to its carrying amount. Such recoverable amounts were determined based on a fair value less costs of disposal method (such method categorized as a Level 3 fair value measure) and used a discount rate of 9.8% (June 30, 2025 – 10.1%), a perpetual growth rate of 2.5% (June 30, 2025 – 2.5%) and cash flow projections through the end of 2029. We validated the results of the recoverable amount through a market-comparable approach and an analytical review of industry facts and facts that are specific to us. |

---

The fair value less costs of disposal method uses discounted cash flow projections that employ the following key assumptions: future cash flows and growth projections; associated economic risk assumptions and estimates of the likelihood of achieving key operating metrics and drivers; and the future weighted average cost of capital. Had growth projections declined in the projection period by more than trivial amounts, or if the discount rate increased by more than a trivial amount, the September 30, 2025, estimate of the recoverable amount of the TELUS digital experience cash-generating unit would be less; we believe that any *reasonably possible* change in other key assumptions on which our calculation of the recoverable amount of the TELUS digital experience cash-generating unit is based would not cause its carrying value to further exceed its recoverable amount. If the future were to adversely differ from management's best estimates for the key assumptions and associated cash flows were to be materially adversely affected, we could potentially experience future material impairment charges in respect of the TELUS digital experience cash-generating unit's goodwill.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **39** |

---

notes to condensed interim consolidated financial statements (unaudited)

As at September 30, 2025, our contractual commitments for intangible asset acquisitions totalled $18 million over a period ending December 31, 2026 (December 31, 2024 – $37 million over a period ending December 31, 2026).

**(b)** **Business acquisitions** 

*Workplace Options*

On May 1, 2025, we acquired 100% of Workplace Options, a global organization that delivers employee and family assistance programs and well-being services. The investment was made with a view to growing our employee and family assistance programs business and is consolidated within our TELUS Health segment.

The primary factor that contributed to the recognition of goodwill was the earnings capacity of the acquired business in excess of the net tangible and intangible assets acquired (such excess arising from the low level of tangible assets relative to the earnings capacity of the business). The amount assigned to goodwill may be deductible for income tax purposes.

*Individually immaterial transactions*

During the nine-month period ended September 30, 2025, we acquired 100% ownership of businesses that were complementary to our existing lines of business. The primary factor that gave rise to the recognition of goodwill was the earnings capacity of the acquired businesses in excess of the net tangible and intangible assets acquired (such excess arising from the low level of tangible assets relative to the earnings capacity of the businesses). A portion of the amounts assigned to goodwill may be deductible for income tax purposes.

*Acquisition-date fair values*

Acquisition-date fair values assigned to the assets acquired and liabilities assumed are as follows:

---

| | | | |
|:---|:---|:---|:---|
| (millions) | Workplace<br> Options | Individually<br> immaterial<br> transactions <sup>1</sup> | Total |
| **Assets** |  |  |  |
| Current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $3 | $— | $3 |
| &nbsp;&nbsp;&nbsp;Accounts receivable <sup>2</sup> | 32 | 9 | 41 |
| &nbsp;&nbsp;&nbsp;Other | 4 | 1 | 5 |
|  | 39 | 10 | 49 |
| Non-current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Property plant and equipment |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned assets | 9 |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use lease assets | 19 | 2 | 21 |
| &nbsp;&nbsp;&nbsp;Intangible assets subject to amortization <sup>3</sup> | 330 | 39 | 369 |
| &nbsp;&nbsp;&nbsp;Other | 2 |  | 2 |
|  | 360 | 41 | 401 |
| Total identifiable assets acquired | 399 | 51 | 450 |
| **Liabilities** |  |  |  |
| Current liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 46 | 16 | 62 |
| &nbsp;&nbsp;&nbsp;Income and other taxes payable | 10 | 1 | 11 |
| &nbsp;&nbsp;&nbsp;Advance billings and customer deposits | 23 |  | 23 |
| &nbsp;&nbsp;&nbsp;Current maturities of long-term debt | 96 | 21 | 117 |
|  | 175 | 38 | 213 |
| Non-current liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt | 21 |  | 21 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 27 | 8 | 35 |
|  | 48 | 8 | 56 |
| Total liabilities assumed | 223 | 46 | 269 |
| **Net identifiable assets acquired** | 176 | 5 | 181 |
| Goodwill | 290 | 90 | 380 |
| **Net assets acquired** | $466 | $95 | $561 |
| **Acquisition effected by way of:** |  |  |  |
| Cash consideration <sup>3</sup> | $453 | $14 | $467 |
| Provisions | 13 | 51 | 64 |
| Re-measured pre-acquisition interest at acquisition-date fair value <sup>4</sup> |  | 11 | 11 |
| Pre-existing relationship effectively settled |  | 9 | 9 |
| Bargain purchase gain |  | 10 | 10 |
|  | $466 | $95 | $561 |

---

---

| | |
|:---|:---|
| 1 | The purchase price allocation, primarily in respect of customer contracts, related customer relationships and deferred income taxes, had not been finalized as of the date of issuance of these consolidated financial statements. As is customary in a business acquisition transaction, until the time of acquisition of control, we did not have full access to the books and records of the acquired businesses. Upon having sufficient time to review the books and records of the acquired businesses, we expect to finalize our purchase price allocations. |

---

---

| | |
|:---|:---|
| **40** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

2 Customer contracts and customer relationships (including those related to customer contracts) are generally expected to be amortized over a period of 10-15 years, and other intangible assets are expected to be amortized over a period of 5-15 years.

---

| | |
|:---|:---|
| 3 | In respect of the Workplace Options acquisition, cash consideration effectively includes proceeds of $280 (US$200) arising from the issuance of preferred shares to a synergistic private equity investor (see *Note 26(e)*). |

---

4 Re-measurement of previously held interest in associate did not result in the recognition of an acquisition-date gain.

*Pro forma disclosures*

The following pro forma supplemental information represents certain results of operations as if the business acquisitions noted above had been completed at the beginning of the 2025 fiscal year.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months | Three months | Nine months | Nine months |
| Periods ended September 30, 2025<br> (millions except per share amounts) | As <br> reported <sup>1</sup> | Pro forma <sup>2</sup> | As <br> reported <sup>1</sup> | Pro forma <sup>2</sup> |
| Operating revenues and other income | $5106 | $5116 | $15245 | $15361 |
| Net income | $431 | $431 | $487 | $438 |
| Net income per Common Share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.32 | $0.32 | $0.54 | $0.51 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.32 | $0.32 | $0.54 | $0.50 |

---

---

| | |
|:---|:---|
| 1 | Operating revenues and net income (loss) for the three-month period ended September 30, 2025, include $49 and $(11), respectively, in respect of Workplace Options. Operating revenues and net income (loss) for the nine-month period ended September 30, 2025, include $82 and $(21), respectively, in respect of Workplace Options. |
| 2 | Pro forma amounts for the three-month and nine-month periods ended September 30, 2025, reflect the acquired businesses. The results of the acquired businesses have been included in our Consolidated statements of income and other comprehensive income effective the dates of acquisition. |

---

The pro forma supplemental information is based on estimates and assumptions that are believed to be reasonable. The pro forma supplemental information is not necessarily indicative of our consolidated financial results in future periods or the actual results that would have been realized had the business acquisitions been completed at the beginning of the periods presented. The pro forma supplemental information includes incremental property, plant and equipment depreciation, intangible asset amortization, financing and other charges as a result of the acquisitions, net of the related tax effects.

**(c)** **Business acquisitions – prior period** 

In 2024, we acquired businesses that were complementary to our existing lines of business. As at December 31, 2024, purchase price allocations had not been finalized. During the nine-month period ended September 30, 2025, the preliminary acquisition-date fair values for income and other taxes receivable decreased by $15 million and goodwill increased by $20 million, respectively; as required by IFRS Accounting Standards, comparative amounts have been adjusted so as to reflect the increase (decrease) effective the date of acquisition.

---

| | |
|:---|:---|
| **19** | **leases** |

---

Maturity analyses of lease liabilities are set out in *Note 4(b)* and *Note 26(j)*; the period interest expense in respect thereof is set out in *Note 9*. The additions to, depreciation charges for, and carrying amounts of, right-of-use lease assets are set out in *Note 17*. We have not currently elected to exclude low-value and short-term leases from lease accounting.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months | Three months | Nine months | Nine months |
| Periods ended September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| **Income from subleasing right-of-use lease assets** |  |  |  |  |
| Co-location sublease revenue included in Operating revenues – service | $**5** | $4 | $**21** | $13 |
| Other sublease revenue included in Other income (*Note 7*) | $**2** | $3 | $**5** | $6 |
| **Lease payments** <sup>1</sup> | $**172** | $213 | $**623** | $626 |

---

1 In the Consolidated statements of cash flows, the principal component of lease payments is included in Cash used by financing activities (see *Note 31(b)*) and the interest component of lease payments is included in Interest paid.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **41** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **20** | **other long-term assets** |

---

---

| | | | |
|:---|:---|:---|:---|
| As at (millions) | Note | **September 30,<br> 2025** | December 31,<br> 2024 |
| Pension assets | 15 | $**273** | $257 |
| Unbilled customer finance receivables | 4(a) | **589** | 630 |
| Derivative assets | 4(d) | **67** | 113 |
| Deferred income taxes |  | **19** | 18 |
| Costs incurred to obtain or fulfill contracts with customers |  | **344** | 301 |
| Investments in real estate joint ventures | 21(a) | **208** | 183 |
| Investments in associates | 21(b) | **196** | 219 |
| Portfolio investments <sup>1</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;At fair value through net income |  | **83** | 62 |
| &nbsp;&nbsp;&nbsp;At fair value through other comprehensive income |  | **635** | 594 |
| Prepaid maintenance |  | **28** | 39 |
| Refundable security deposits and other |  | **166** | 161 |
|  |  | $**2608** | $2577 |

---

1 Fair value measured at reporting date using significant other observable inputs (Level 2).

The costs incurred to obtain and fulfill contracts with customers are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Costs incurred to | Costs incurred to | |
| (millions) | Obtain<br> contracts with<br> customers | Fulfill contracts<br> with<br> customers | Total |
| Balance as at July 1, 2025 | $644 | $72 | $716 |
| Additions | **127** | **9** | **136** |
| Amortization | **(110)** | **(3)** | **(113)** |
| Balance as at September 30, 2025 | $**661** | $**78** | $**739** |
| Balance as at January 1, 2025 | $603 | $64 | $667 |
| Additions | **371** | **22** | **393** |
| Amortization | **(313)** | **(8)** | **(321)** |
| Balance as at September 30, 2025 | $**661** | $**78** | $**739** |
| Current | $**377** | $**18** | $**395** |
| Non-current | **284** | **60** | **344** |
|  | $**661** | $**78** | $**739** |

---

---

| | |
|:---|:---|
| **21** | **real estate joint ventures and investments in associates** |

---

**(a)** **Real estate joint ventures** 

During 2025 and 2024, we partnered, as equals, with arm's-length parties in real estate redevelopment projects in British Columbia.

*Summarized financial information*

---

| | | |
|:---|:---|:---|
| As at (millions) | **September 30,<br> 2025** | December 31,<br> 2024 |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash and temporary investments, net | $**7** | $7 |
| Other | **2** | 1 |
|  | **9** | 8 |
| **Non-current assets** |  |  |
| Investment property under development | **409** | 356 |
| Promissory notes <sup>1</sup> | **357** | 320 |
|  | **766** | 676 |
|  | $**775** | $684 |
| **LIABILITIES AND OWNERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| Accounts payable and accrued liabilities | $**5** | $6 |
| **Non-current liabilities** |  |  |
| Long-term debt – mortgage | **21** | 21 |
| **Liabilities** | **26** | 27 |
| **Owners' equity** |  |  |
| TELUS <sup>2</sup> | **375** | 329 |
| Other partners <sup>1</sup> | **374** | 328 |
|  | **749** | 657 |
|  | $**775** | $684 |

---

---

| | |
|:---|:---|
| 1 | Other partners' equity is gross of $357 (December 31, 2024 – $320) promissory notes issued to the joint ventures by the arm's-length parties in the real estate redevelopment projects in British Columbia; in the event of dissolution or other wind-up of the partnerships, the other partner's equity will first be reduced by any amounts of the promissory notes outstanding when determining the equity of the joint ventures. The primary intended method of repayment of the promissory notes is through contribution of in-kind development costs, but may optionally include cash payments. |

---

---

| | |
|:---|:---|
| 2 | The equity amounts recorded by the real estate joint ventures differ from those recorded by us by the amount of the deferred gains on our real estate contributed and the valuation provision we have recorded in excess of that recorded by the real estate joint ventures. |

---

---

| | |
|:---|:---|
| **42** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months | Three months | Nine months | Nine months |
| Periods ended <br> September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Revenue <sup>1</sup> | $**—** | $6 | $**—** | $19 |
| Interest expense | $**—** | $— | $**—** | $5 |
| Net income (loss) and comprehensive income (loss) <sup>2</sup> | $**—** | $(4) | $**—** | $(11) |

---

1 Substantially all comparative information summarized in this table is in respect of operations that were held for sale by the TELUS Sky real estate joint venture.

2 As the real estate joint ventures are partnerships, no provision is made for income taxes in respect of the partners in determining the real estate joint ventures' net income and comprehensive income.

*Our real estate joint ventures activity*

 

Our real estate joint ventures investment activity is set out in the following table.

---

| | | | |
|:---|:---|:---|:---|
|  | Equity <sup>1</sup> | Equity <sup>1</sup> | Loans and<br> receivables <sup>2</sup> |
| Periods ended (millions) | **September 30, 2025** | September 30, 2024 | September 30, 2024 |
| **THREE-MONTH** |  |  |  |
| Balance, beginning of period | $**189** | $117 | $94 |
| **Related to real estate joint ventures' statements of income and other comprehensive income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Comprehensive income (loss) attributable to us <sup>3</sup> | **—** | (1) |  |
| **Related to real estate joint ventures' statements of financial position** |  |  |  |
| Items not affecting currently reported cash flows |  |  |  |
| &nbsp;&nbsp;&nbsp;Construction credit facilities financing costs charged by us (*Note 7*) | **—** |  | 2 |
| &nbsp;&nbsp;&nbsp;Our real estate contributed | **28** | 111 |  |
| &nbsp;&nbsp;&nbsp;Deferred gains on our remaining interests in our real estate contributed | **(13)** | (49) |  |
| Cash flows in the current reporting period |  |  |  |
| &nbsp;&nbsp;&nbsp;Construction credit facilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing costs paid to us | **—** |  | (2) |
| &nbsp;&nbsp;&nbsp;Funds we advanced or contributed, excluding construction credit facilities | **1** | 4 |  |
| Balance, end of period | $**205** | $182 | $94 |
| **NINE-MONTH** |  |  |  |
| Balance, beginning of period | $**178** | $50 | $94 |
| **Related to real estate joint ventures' statements of income and other comprehensive income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Comprehensive income (loss) attributable to us <sup>3</sup> | **—** | (3) |  |
| **Valuation provision reversal** | **3** |  |  |
| **Related to real estate joint ventures' statements of financial position** |  |  |  |
| Items not affecting currently reported cash flows |  |  |  |
| &nbsp;&nbsp;&nbsp;Construction credit facilities financing costs charged by us (*Note 7*) | **—** |  | 5 |
| &nbsp;&nbsp;&nbsp;Our real estate contributed | **45** | 225 |  |
| &nbsp;&nbsp;&nbsp;Deferred gains on our remaining interests in our real estate contributed | **(21)** | (100) |  |
| Cash flows in the current reporting period |  |  |  |
| &nbsp;&nbsp;&nbsp;Construction credit facilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing costs paid to us | **—** |  | (5) |
| &nbsp;&nbsp;&nbsp;Funds we advanced or contributed, excluding construction credit facilities | **1** | 10 |  |
| Funds repaid to us and earnings distributed | **(1)** |  |  |
| Balance, end of period | $**205** | $182 | $94 |

---

1 We account for our interests in the real estate joint ventures using the equity method of accounting and such interests are included in our Consolidated statements of financial position as Other long-term assets (see *Note 20*).

2 Loans and receivables are included in our Consolidated statements of financial position as Other long-term assets (see *Note 20*) and were comprised of advances under construction credit facilities.

3 As the real estate joint ventures are partnerships, no provision is made for income taxes in respect of the partners in determining the real estate joint ventures' net income and comprehensive income.

**(b)** **Investments in associates** 

As set out in *Note 20*, we include our investments in associates in our Consolidated statements of financial position as Other long-term assets. As at September 30, 2025, and December 31, 2024, we held an equity interest in Miovision Technologies Incorporated, a Canadian incorporated entity that is complementary to, and is viewed to grow, our existing Internet of Things business; our judgment is that we obtained significant influence over the associate when we acquired our initial equity interest. Miovision Technologies Incorporated is developing a suite of hardware and cloud-based solutions that provide cities with the data and tools they need to reduce traffic congestion, make better urban planning decisions and improve safety on their roads. Our aggregate interests in other individually immaterial associates as at September 30, 2025, totalled $25 million (December 31, 2024 – $44 million).

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **43** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | |
|:---|:---|:---|:---|
| Miovision Technologies Incorporated |  |  |  |
| As at, or for the periods ended, ($ in millions) | **September 30,<br> 2025** | September 30,<br> 2024 | December 31, <br> 2024 |
| **Statement of financial position** <sup>1</sup>** |  |  |  |
| Current assets | $**76** |  | $88 |
| Non-current assets | $**415** |  | $408 |
| Current liabilities | $**42** |  | $35 |
| Non-current liabilities | $**56** |  | $61 |
| Net assets | $**393** |  | $400 |
| **Statement of income and other comprehensive income** <sup>1</sup>** |  |  |  |
| **THREE-MONTH** |  |  |  |
| Revenue and other income | $**42** | $42 |  |
| Net income (loss) | $**(11)** | $(6) |  |
| Comprehensive income (loss) | $**(5)** | $(6) |  |
| **NINE-MONTH** |  |  |  |
| Revenue and other income | $**127** | $115 |  |
| Net income (loss) | $**(24)** | $(24) |  |
| Comprehensive income (loss) | $**(20)** | $(24) |  |
| **Reconciliation of statement of financial position summary financial information to carrying amounts** |  |  |  |
| Net assets (above) | $**393** |  | $400 |
| Our interest | **43.4%** |  | 43.4% |
| Our interest in net assets (our carrying amount) | $**171** |  | $175 |

---

---

| | |
|:---|:---|
| 1 | As required by IFRS Accounting Standards, this summarized information is not just our share of these amounts. |

---

---

| | |
|:---|:---|
| **22** | **short-term borrowings** |

---

On May 22, 2024, we entered into an agreement with an arm's-length securitization trust associated with a major Schedule I bank allowing us to borrow up to $1.6 billion, secured by certain trade receivables and unbilled customer finance receivables; the term of this revolving-period securitization agreement ends May 22, 2027, and requires minimum cash advances of $920 million. Funding under the agreement may be provided in either Canadian dollars or U.S. dollars. Currency risk associated with funding denominated in U.S. dollars is managed through the use of foreign currency forward contracts.

Short-term borrowings of $0.9 billion (December 31, 2024 – $0.9 billion) are comprised of amounts advanced to us by the arm's-length securitization trust; all amounts advanced were denominated in U.S. dollars.

The balance of short-term borrowings (if any) is comprised of amounts drawn on bilateral bank facilities and/or other.

---

| | |
|:---|:---|
| **23** | **accounts payable and accrued liabilities** |

---

---

| | | |
|:---|:---|:---|
| As at (millions) | **September 30,<br> 2025** | December 31,<br> 2024 |
| Trade accounts payable <sup>1</sup> |  |  |
| &nbsp;&nbsp;&nbsp;Supply chain financing – arm's-length third-party has paid supplier | $**34** | $84 |
| &nbsp;&nbsp;&nbsp;Supply chain financing – eligible payable <sup>2</sup> | **9** | 2 |
| &nbsp;&nbsp;&nbsp;Amounts that are a part of supply chain financing | **43** | 86 |
| &nbsp;&nbsp;&nbsp;Amounts that are not a part of supply chain financing | **1035** | 1040 |
|  | **1078** | 1126 |
| Accrued liabilities | **1317** | 1385 |
| Payroll and other employee-related liabilities | **656** | 710 |
| Interest payable | **325** | 262 |
| Indirect taxes payable and other | **180** | 147 |
|  | $**3556** | $3630 |

---

---

| | |
|:---|:---|
| 1 | The composition of trade accounts payable fluctuates due to various factors, including suppliers' invoice timing, our data processing cycle timing and the seasonal nature of certain business activities, as well as whether the statement of financial position date falls on a business day. Trade accounts payable represent future payments for invoices received in respect of both operating and capital activities, and may include amounts for assessed and self-assessed government remittances. |

---

---

| | |
|:---|:---|
| 2 | Amounts eligible for suppliers to choose to be paid in advance of industry-standard payment terms. |

---

In 2023, we introduced a supply chain financing program that allows suppliers with qualifying trade accounts payable to opt for early payment from an arm's-length third party, in advance of industry-standard payment terms; in turn, we reimburse the arm's-length third party for those payments when the trade accounts payable would originally have been due.

The weighted average due dates for trade accounts payable are largely similar, both within and outside the supply chain financing program, and generally payment is due within one quarter.

---

| | |
|:---|:---|
| **44** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **24** | **advance billings and customer deposits** |

---

---

| | | |
|:---|:---|:---|
| As at (millions) | **September 30,<br> 2025** | December 31,<br> 2024 |
| Advance billings | $**838** | $820 |
| Deferred customer activation and connection fees | **3** | 3 |
| Customer deposits | **14** | 15 |
| Contract liabilities | **855** | 838 |
| Other | **122** | 201 |
|  | $**977** | $1039 |

---

Contract liabilities represent our future performance obligations to customers for services and/or equipment for which we have already received consideration or for which an amount is due from the customer. Our contract liability balances, and the changes in those balances, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months | Three months | Nine months | Nine months |
| Periods ended September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Balance, beginning of period | $**1176** | $1049 | $**1102** | $974 |
| Revenue deferred in previous period and recognized in current period | **(690)** | (667) | **(631)** | (632) |
| Net additions arising from operations | **652** | 627 | **644** | 651 |
| Additions arising from business acquisitions | **—** | 1 | **23** | 17 |
| Balance, end of period | $**1138** | $1010 | $**1138** | $1010 |
| Current |  |  | $**992** | $901 |
| Non-current (*Note 27*) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deferred revenues |  |  | **143** | 105 |
| &nbsp;&nbsp;&nbsp;Deferred customer activation and connection fees |  |  | **3** | 4 |
|  |  |  | $**1138** | $1010 |
| **Reconciliation of contract liabilities presented in the Consolidated statements of financial position – current** |  |  |  |  |
| Gross contract liabilities |  |  | $**992** | $901 |
| Reclassification <u>to</u> contract assets of contracts with contract liabilities less than contract assets (*Note 6(c)*) |  |  | **(120)** | (131) |
| Reclassification <u>from</u> contract assets of contracts with contract assets less than contract liabilities (*Note 6(c)*) |  |  | **(17)** | (18) |
|  |  |  | $**855** | $752 |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **45** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **25** | **provisions** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (millions) | *Note* | Asset<br> retirement<br> obligations <sup>1</sup> | Employee-<br> related <sup>2</sup> | Written put<br> options and<br> contingent<br> consideration <sup>3</sup> | Regulatory <sup>2</sup> | Other <sup>2</sup> | Total |
| Balance as at July 1, 2025 |  | $374 | $82 | $224 | $4 | $185 | $869 |
| Additions |  | **—** | **31** | **1** | **137** | **84** | **253** |
| Reversals |  | **—** | **(1)** | **(1)** | **(1)** | **(12)** | **(15)** |
| Uses |  | **(3)** | **(28)** | **—** | **(3)** | **(62)** | **(96)** |
| Interest effects <sup>4</sup> | *9* | **4** | **—** | **3** | **—** | **—** | **7** |
| Effects of foreign exchange, net <sup>4</sup> |  | **—** | **—** | **3** | **—** | **1** | **4** |
| **Balance as at September 30, 2025** |  | $**375** | $**84** | $**230** | $**137** | $**196** | $**1022** |
| Balance as at January 1, 2025 |  | $378 | $133 | $215 | $4 | $197 | $927 |
| Additions |  | **—** | **176** | **28** | **137** | **146** | **487** |
| Reversals |  | **(8)** | **(2)** | **(16)** | **(1)** | **(18)** | **(45)** |
| Uses |  | **(7)** | **(221)** | **—** | **(3)** | **(129)** | **(360)** |
| Interest effects <sup>4</sup> | *9* | **12** | **—** | **9** | **—** | **—** | **21** |
| Effects of foreign exchange, net <sup>4</sup> |  | **—** | **(2)** | **(6)** | **—** | **—** | **(8)** |
| **Balance as at September 30, 2025** |  | $**375** | $**84** | $**230** | $**137** | $**196** | $**1022** |
| Current |  | $**12** | $**79** | $**90** | $**41** | $**71** | $**293** |
| Non-current |  | **363** | **5** | **140** | **96** | **125** | **729** |
| **Balance as at September 30, 2025** |  | $**375** | $**84** | $**230** | $**137** | $**196** | $**1022** |

---

---

| | |
|:---|:---|
| 1 | Additions and reversals for Asset retirement obligations are included in the Consolidated statements of financial position as Property, plant and equipment, net. Uses, to the extent that such items include a flow of cash, are included net in Cash used by investing activities in the Consolidated statements of cash flows (see *Note 31(a)*). |
| 2 | Additions and reversals for Employee-related, Regulatory and Other are generally included in the Consolidated statements of income and other comprehensive income as Employee benefits expense, Goods and services purchased and Goods and services purchased, respectively. Uses, to the extent that such items include a flow of cash, are generally included net in Cash provided by operating activities in the Consolidated statements of cash flows. |
| 3 | Additions and reversals for Written put options and contingent consideration are included in the Consolidated statements of financial position as Goodwill, net, and in the Consolidated statements of income and other comprehensive income as Other income, respectively. Uses, to the extent that such items include a flow of cash, are included in Cash used by investing activities in the Consolidated statements of cash flows. |
| 4 | Interest effects, excepting those arising from provision remeasurement due to change in discount rates are included in the Consolidated statements of income and other comprehensive income as Financing costs. |

---

*Asset retirement obligations*

We establish provisions for liabilities associated with the retirement of property, plant and equipment when these obligations result from the acquisition, construction, development and/or normal operation of the assets. We expect that the associated cash outflows in respect of the balance accrued as at the financial statement date will occur proximate to the retirement dates of these assets.

*Employee-related*

Our employee-related provisions are largely in respect of restructuring activities (as discussed further in *Note 16(b)*). The timing of the associated cash outflows in respect of the balance accrued as at the financial statement date is substantially short-term in nature.

*Written put options and contingent consideration*

In connection with certain business acquisitions, we have established provisions for written put options in respect of non-controlling interests. Some of these provisions are determined based on the net present value of estimated future earnings, requiring us to make key economic assumptions about the future. We have also established provisions for contingent consideration. We do not expect cash outflows in respect of the written put options to occur before their initial exercisability, nor do we expect cash outflows in respect of contingent consideration to occur before completion of the related earning periods; in some instances, we may settle the provision for written put options using equity instruments.

*Regulatory*

The regulatory regime under which we operate as a telecommunications carrier in Canada sets out, among other matters, rates, terms and conditions for the provision of telecommunications services and, in turn, we may need to record associated provisions. We cannot reasonably determine the timing of cash outflows in respect of regulatory accounts.

---

| | |
|:---|:---|
| **46** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

*Other*

The provisions for other include: legal claims; real estate rationalization and other non-employee-related restructuring activities; and contract termination costs and onerous contracts related to business acquisitions. Except as noted below, we expect the cash outflows associated with the balance accrued as at the financial statement date to occur over an indeterminate multi-year period.

As discussed further in *Note 29*, we are involved in a number of legal claims and we are aware of certain other possible legal claims. We establish provisions for legal claims when warranted, considering legal assessments, current information, and the expected availability of recourse. We cannot reasonably determine the timing of cash outflows associated with legal claims.

In connection with business acquisitions, we have established provisions for contract termination costs and onerous contracts acquired.

---

| | |
|:---|:---|
| **26** | **long-term debt** |

---

**(a)** **Details of long-term debt** 

---

| | | |
|:---|:---|:---|
| As at (millions) | **September 30,<br> 2025** | December 31,<br> 2024 |
| **Senior unsecured** |  |  |
| TELUS Corporation senior notes (b) | $**19334** | $22077 |
| TELUS Corporation commercial paper (c) | **1040** | 1404 |
| Other (e) | **299** |  |
| TELUS Communications Inc. debentures | **—** | 200 |
| **Junior unsecured** |  |  |
| TELUS Corporation junior subordinated notes (f) | **4464** |  |
| **Secured** |  |  |
| TELUS International (Cda) Inc. credit facility (g) | **—** | 1703 |
| Other (h) | **555** | 588 |
|  | **25692** | 25972 |
| **Lease liabilities** (i) | **3297** | 2882 |
| **Long-term debt** | $**28989** | $28854 |
| Current | $**3200** | $3246 |
| Non-current | **25789** | 25608 |
| **Long-term debt** | $**28989** | $28854 |

---

**(b)** **TELUS Corporation senior notes** 

The notes are senior unsecured and unsubordinated obligations, ranking equally with all of our existing and future unsecured unsubordinated obligations, are senior in right of payment to all of our existing and future subordinated indebtedness, and are effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries. The notes' indentures contain covenants that, among other things, limit our ability, and that of certain of our subsidiaries, to: grant security in respect of indebtedness; enter into sale-leaseback transactions; and incur new indebtedness.

Interest is payable semi-annually. Upon a change in control triggering event, as defined in the supplemental trust indenture, we must offer to repurchase the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest to the repurchase date.

The notes issued before September 2023 are redeemable at our option, in whole at any time, or in part from time to time, on not fewer than 30 days' and not more than 60 days' prior notice before their respective maturity dates; for notes issued subsequent to August 2023, the notice period is not fewer than 10 days' and not more than 60 days' prior notice. On or after the respective redemption present value spread cessation dates set out in the table below, the notes issued before September 2023 are redeemable at our option, in whole but not in part, on not fewer than 30 days' and not more than 60 days' prior notice, at redemption prices equal to 100% of their principal amounts; for notes issued subsequent to August 2023, the notice period is not fewer than 10 days' and not more than 60 days' prior notice. Accrued and unpaid interest, if any, will be paid to the date fixed for redemption.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **47** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | | | Principal face amount | Principal face amount | Redemption present <br> value spread | Redemption present <br> value spread |
| TELUS Corporation senior note series | Issued | Maturity | Issue price | Effective<br> interest rate <sup>1</sup> | Originally<br> issued | Outstanding <br> at financial<br> statement date | Basis<br> points <sup>2</sup> | Cessation <br> date |
| 3.75% Notes, Series CQ | September 2014 | January 2025 | $997.75 | 3.78% | &nbsp;&nbsp;$800 million | &nbsp;&nbsp;$NIL | 38.5 | Oct. 17, 2024 |
| 3.75% Notes, Series CV | December 2015 | March 2026 | $992.14 | 3.84% | &nbsp;&nbsp;$600 million | &nbsp;&nbsp;$600 million | 53.5 | Dec. 10, 2025 |
| 2.75% Notes, Series CZ | July 2019 | July 2026 | $998.73 | 2.77% | &nbsp;&nbsp;$800 million | &nbsp;&nbsp;$800 million | 33 | May 8, 2026 |
| 2.80% U.S. Dollar Notes <sup>3</sup> | September 2016 | February 2027 | US$991.89 | 2.89% | US$600 million | US$600 million | 20 | Nov. 16, 2026 |
| 3.70% U.S. Dollar Notes <sup>3</sup> | March 2017 | September 2027 | US$998.95 | 3.71% | US$500 million | US$500 million | 20 | June 15, 2027 |
| 2.35% Notes, Series CAC | May 2020 | January 2028 | $997.25 | 2.39% | $600 million | $600 million | 48 | Nov. 27, 2027 |
| 3.625% Notes, Series CX | March 2018 | March 2028 | $989.49 | 3.75% | $600 million | $600 million | 37 | Dec. 1, 2027 |
| 4.80% Notes, Series CAO | February 2024 | December 2028 | $998.95 | 4.83% | $700 million | $700 million | 28 | Nov. 15, 2028 |
| 3.30% Notes, Series CY | April 2019 | May 2029 | $991.75 | 3.40% | &nbsp;&nbsp;$1.0 billion | &nbsp;&nbsp;$1.0 billion | 43.5 | Feb. 2, 2029 |
| 5.00% Notes, Series CAI | September 2022 | September 2029 | $995.69 | 5.07% | &nbsp;&nbsp;$350 million | &nbsp;&nbsp;$350 million | 46.5 | July 13, 2029 |
| 3.15% Notes, Series CAA | December 2019 | February 2030 | $996.49 | 3.19% | $600 million | $600 million | 39.5 | Nov. 19, 2029 |
| 5.60% Notes, Series CAM | September 2023 | September 2030 | $998.85 | 5.62% | $500 million | $500 million | 46 | July 9, 2030 |
| 2.05% Notes, Series CAD | October 2020 | October 2030 | $997.93 | 2.07% | $500 million | $500 million | 38 | July 7, 2030 |
| 4.95% Notes, Series CAP | February 2024 | February 2031 | $997.07 | 5.00% | $600 million | $600 million | 34.5 | Dec. 18, 2030 |
| 4.65% Notes, Series CAQ | August 2024 | August 2031 | $999.11 | 4.66% | $700 million | $700 million | 38.5 | June 13, 2031 |
| 2.85% Sustainability-Linked Notes, Series CAF | June 2021 | November 2031 | $997.52 | 2.88% <sup>4</sup> | $750 million | $750 million | 34 | Aug. 13, 2031 |
| 3.40% U.S. Dollar Sustainability-Linked Notes <sup>3</sup> | February 2022 | May 2032 | US$997.13 | 3.43% <sup>4</sup> | US$900 million | US$900 million | 25 | Feb. 13, 2032 |
| 5.25% Sustainability-Linked Notes, Series CAG | September 2022 | November 2032 | $996.73 | 5.29% <sup>4</sup> | $1.1 billion | $1.1 billion | 51.5 | Aug. 15, 2032 |
| 4.95% Sustainability-Linked Notes, Series CAJ | March 2023 | March 2033 | $998.28 | 4.97% <sup>4</sup> | $500 million | $500 million | 54.5 | Dec. 28, 2032 |
| 5.75% Sustainability-Linked Notes, Series CAK | September 2023 | September 2033 | $997.82 | 5.78% <sup>4</sup> | $850 million | $850 million | 52 | June 8, 2033 |
| 5.10% Sustainability-Linked Notes, Series CAN | February 2024 | February 2034 | $996.44 | 5.15% <sup>4</sup> | $500 million | $500 million | 38.5 | Nov. 15, 2033 |
| 4.40% Notes, Series CL | April 2013 | April 2043 | $997.68 | 4.41% | &nbsp;&nbsp;$600 million | &nbsp;&nbsp;$600 million | 47 | Oct. 1, 2042 |
| 5.15% Notes, Series CN | November 2013 | November 2043 | $995.00 | 5.18% | &nbsp;&nbsp;$400 million | &nbsp;&nbsp;$400 million | 50 | May 26, 2043 |
| 4.85% Notes, Series CP | Multiple <sup>5</sup> | April 2044 | $987.91 <sup>5</sup> | 4.93% <sup>5</sup> | &nbsp;&nbsp;$500 million <sup>5</sup> | &nbsp;&nbsp;$900 million <sup>5</sup> | 46 | Oct. 5, 2043 |
| 4.75% Notes, Series CR | September 2014 | January 2045 | $992.91 | 4.80% | &nbsp;&nbsp;$400 million | &nbsp;&nbsp;$400 million | 51.5 | July 17, 2044 |
| 4.40% Notes, Series CU | March 2015 | January 2046 | $999.72 | 4.40% | &nbsp;&nbsp;$500 million | &nbsp;&nbsp;$233 million <sup>6</sup> | 60.5 | July 29, 2045 |
| 4.70% Notes, Series CW | Multiple <sup>7</sup> | March 2048 | $998.06 <sup>7</sup> | 4.71% <sup>7</sup> | $325 million <sup>7</sup> | $475 million <sup>7</sup> | 58.5 | Sept. 6, 2047 |
| 4.60% U.S. Dollar Notes <sup>3</sup> | June 2018 | November 2048 | US$987.60 | 4.68% | US$750 million | US$561 million <sup>6</sup> | 25 | May 16, 2048 |
| 4.30% U.S. Dollar Notes <sup>3</sup> | May 2019 | June 2049 | US$990.48 | 4.36% | US$500 million | US$371 million <sup>6</sup> | 25 | Dec. 15, 2048 |
| 3.95% Notes, Series CAB | Multiple <sup>8</sup> | February 2050 | $997.54 <sup>8</sup> | 3.97% <sup>8</sup> | $400 million <sup>8</sup> | $105 million <sup>6, 8</sup> | 57.5 | Aug. 16, 2049 |
| 4.10% Notes, Series CAE | April 2021 | April 2051 | $994.70 | 4.13% | $500 million | $78 million <sup>6</sup> | 53 | Oct. 5, 2050 |
| 5.65% Notes, Series CAH | September 2022 | September 2052 | $996.13 | 5.68% | $550 million | $550 million | 61.5 | Mar. 13, 2052 |
| 5.95% Notes, Series CAL | September 2023 | September 2053 | $992.67 | 6.00% | $400 million | $400 million | 61.5 | Mar. 8, 2053 |

---

1 The effective interest rate represents the yield the notes would provide to an initial debt holder if held to maturity and, in respect of sustainability-linked notes, no trigger events or MFN step-ups occur.

---

| | |
|:---|:---|
| 2 | For Canadian dollar-denominated notes, the redemption price is the greater of (i) the present value of the notes discounted at the Government of Canada yield plus the redemption present value spread calculated over the period to the cessation date, or (ii) 100% of the principal amount thereof. |

---

For U.S. dollar-denominated notes, the redemption price is the greater of (i) the present value of the notes discounted at the U.S. Adjusted Treasury Rate (at the U.S. Treasury Rate for the 3.40% U.S. Dollar Sustainability-Linked Notes) plus the redemption present value spread calculated over the period to the cessation date, or (ii) 100% of the principal amount thereof.

3 We have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively convert the principal payments and interest obligations to Canadian dollar obligations as follows:

---

| | |
|:---|:---|
| **48** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | |
|:---|:---|:---|:---|
| TELUS Corporation senior note series | Interest rate<br> fixed at | Canadian dollar<br> equivalent<br> principal | Exchange<br> rate |
| 2.80% U.S. Dollar Notes | 2.95% | $792 million | $1.3205 |
| 3.70% U.S. Dollar Notes | 3.41% | $667 million | $1.3348 |
| 3.40% U.S. Dollar Sustainability-Linked Notes | 3.89% | $1.1 billion | $1.2753 |
| 4.60% U.S. Dollar Notes | 4.41% | $728 million | $1.2985 |
| 4.30% U.S. Dollar Notes | 4.27% | $498 million | $1.3435 |

---

---

| | |
|:---|:---|
| 4 | If we have not obtained a sustainability performance target verification assurance certificate for the fiscal year ending December 31, 2030, the sustainability-linked notes will incur increased interest rates from the trigger date through to their individual maturities. The interest rate on certain sustainability-linked notes may also increase (MFN step-up) if we fail to meet additional sustainability and/or environmental, social or governance targets specified in a sustainability-linked bond; the interest rate on these notes, however, in no event can exceed the initial rate by more than the combined MFN step-up and trigger event limit, regardless of whether as a result of not obtaining a sustainability performance target verification assurance certificate and/or any targets provided for in one or more future sustainability-linked bonds. Similarly, if we redeem any sustainability-linked notes without having obtained a sustainability performance target verification assurance certificate at the end of the fiscal year immediately preceding the redemption date, any interest accrued will be determined using the following rates: |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sustainability performance<br> target verification<br> assurance certificate | Sustainability performance<br> target verification<br> assurance certificate | Sustainability performance<br> target verification<br> assurance certificate | | |
| TELUS Corporation senior note series | Fiscal <br> year | Trigger <br> date | Post-<br> trigger <br> event<br> interest <br> rate | Aggregate<br> MFN step-up<br> and trigger <br> event limit | Redemption<br> interest <br> accrual rate<br> if certificate <br> not obtained |
| 2.85% Sustainability-Linked Notes, Series CAF | 2030 | Nov. 14, 2030 | 3.85% | N/A | 3.85% |
| 3.40% U.S. Dollar Sustainability-Linked Notes | 2030 | Nov. 14, 2030 | 4.40% | 1.50% | 4.40% |
| 5.25% Sustainability-Linked Notes, Series CAG | 2030 | Nov. 15, 2030 | 6.00% | 1.50% | 6.00% |
| 4.95% Sustainability-Linked Notes, Series CAJ | 2030 | Mar. 28, 2031 | 5.70% | 1.50% | 5.70% |
| 5.75% Sustainability-Linked Notes, Series CAK | 2030 | Apr. 30, 2031 | 6.35% | 1.20% | 6.35% |
| 5.10% Sustainability-Linked Notes, Series CAN | 2030 | Feb. 15, 2031 | 5.60% | 1.00% | 5.60% |

---

---

| | |
|:---|:---|
| 5 | $500 million of 4.85% Notes, Series CP were issued in April 2014 at an issue price of $998.74 and an effective interest rate of 4.86%. This series of notes was reopened in December 2015 and a further $400 million of notes were issued at an issue price of $974.38 and an effective interest rate of 5.02%. |

---

6 In July 2025, we acquired TELUS Corporation senior notes pursuant to our June 2025 tender offers as set out in the following table.

---

| | | |
|:---|:---|:---|
| TELUS Corporation senior note series | Maturity | Principal face<br> amount acquired |
| 4.40% Notes, Series CU | January 2046 | $267 million |
| 4.60% U.S. Dollar Notes | November 2048 | US$189 million |
| 4.30% U.S. Dollar Notes | June 2049 | US$129 million |
| 3.95% Notes, Series CAB | February 2050 | $695 million |
| 4.10% Notes, Series CAE | April 2051 | $422 million |

---

---

| | |
|:---|:---|
| 7 | $325 million of 4.70% Notes, Series CW were issued in March 2017 at an issue price of $990.65 and an effective interest rate of 4.76%. This series of notes was reopened in February 2018 and a further $150 million of notes were issued in March 2018 at an issue price of $1,014.11 and an effective interest rate of 4.61%. |

---

---

| | |
|:---|:---|
| 8 | $400 million of 3.95% Notes, Series CAB were issued in December 2019 at an issue price of $991.54 and an effective interest rate of 4.00%. This series of notes was reopened in May 2020 and a further $400 million of notes were issued at an issue price of $1,003.53 and an effective interest rate of 3.93%. |

---

**(c)** **TELUS Corporation commercial paper** 

TELUS Corporation has an unsecured commercial paper program, backstopped by our $2.75 billion revolving syndicated credit facility (see *(d)*), which is used for general corporate purposes, including capital expenditures and investments. Subject to conditions related to debt ratings, this program allows us to issue commercial paper up to a maximum aggregate equivalent amount at any one time of $2.1 billion (US$1.5 billion maximum). We use foreign currency forward contracts to manage currency risk arising from U.S. dollar-denominated commercial paper. Although commercial paper debt matures within one year, we classify it as a current portion of long-term debt as these amounts are supported by the revolving credit facility and we expect that they will continue to be supported by the revolving credit facility, which has no repayment requirements within the next year. As at September 30, 2025, we had $1.0 billion (December 31, 2024 – $1.4 billion) of commercial paper outstanding, all of which was denominated in U.S. dollars (US$0.7 billion; December 31, 2024 – US$1.0 billion), with an effective average interest rate of 5.0%, maturing through March 2026.

**(d)** **TELUS Corporation credit facilities** 

As at September 30, 2025, TELUS Corporation had a $2.75 billion unsecured revolving syndicated bank credit facility, expiring on August 21, 2030 (December 31, 2024 – July 14, 2028), with a syndicate of financial institutions, which is used for general corporate purposes, including the backstopping of commercial paper.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **49** |

---

notes to condensed interim consolidated financial statements (unaudited)

During the three-month period ended June 30, 2025, TELUS Corporation had an unsecured non-revolving $600 million (or US$ equivalent) bank credit facility with a financial institution which was to be used for general corporate purposes. We had drawn $574 million (US$415 million) on the credit facility during the three-month period ended June 30, 2025, all of which had been repaid in the same period; in accordance with its non-revolving nature, the credit facility was subsequently terminated in June 2025.

The TELUS Corporation credit facilities incur interest at prime rate, U.S. Dollar Base Rate, Canadian Overnight Repo Rate Average (CORRA) or term secured overnight financing rate (SOFR) (as such terms are used or defined in the credit facilities), plus applicable margins. The credit facilities include customary representations, warranties and covenants, including two financial quarter-end ratio tests: our leverage ratio must not exceed 4.25:1.00; and our operating cash flow to interest expense ratio must not be less than 2.00:1.00, all as defined in the credit facilities.

TELUS Corporation's continued access to these credit facilities does not depend upon TELUS Corporation maintaining a specific credit rating.

---

| | | |
|:---|:---|:---|
| As at (millions) | **September 30,<br> 2025** | December 31,<br> 2024 |
| Net available | $**1710** | $1346 |
| Backstop of commercial paper | **1040** | 1404 |
| Gross available revolving $2.75 billion bank credit facility | $**2750** | $2750 |

---

As at September 30, 2025, we had $67 million of letters of credit outstanding (December 31, 2024 – $62 million), issued under various uncommitted facilities. These letter of credit facilities are in addition to our ability to provide letters of credit under our committed revolving bank credit facility.

**(e)** **Other (unsecured)** 

As at September 30, 2025, other (unsecured) includes preferred shares issued by a wholly-owned subsidiary to a private equity investor, in connection with the acquisition of Workplace Options, as set out in *Note 18(b)*; IFRS Accounting Standards required that these financial instruments be accounted for as financial liabilities. The preferred shares are unsubordinated obligations, are senior in right of payment to all of our existing and future subordinated indebtedness, and are effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries.

As at September 30, 2025, $278 million (December 31, 2024 – $NIL) of preferred shares had been issued, all of which were denominated in U.S. dollars (US$200 million; December 31, 2024 – US$NIL), with a cumulative quarterly dividend (accounted for as interest) payable in cash, or, at our quarterly option, through dividend reinvestment in the same series of preferred shares.

The preferred shares are redeemable, in whole but not in part, at our option and, after May 13, 2030, also at the holder's option. Change in control events, as defined in the preferred investment agreement, may also require redemption of the preferred shares. The redemption price is generally equal to a multiple on invested capital. Any accrued and un-reinvested interest would be included in determining the redemption amount.

**(f)** **TELUS Corporation junior subordinated notes** 

The notes are direct unsecured obligations and are subordinated to all existing and future senior indebtedness and are effectively subordinated to all existing and future indebtedness and obligations of, or guaranteed by, our subsidiaries. For purposes of calculating leverage ratios, only one-half of the principal is included as debt in the initial post-issuance decade.

Interest is payable semi-annually and has a fixed rate reset at the interest payment date coinciding with the cessation of the no-call period and every five years thereafter. Upon a rating event, as defined in the supplemental trust indenture, we must offer to repurchase the notes at a price equal to 102% of their principal amount plus accrued and unpaid interest to the repurchase date.

After the initial no-call period, the notes are redeemable at our option in whole or at any time in part from time to time, on not fewer than 10 days' and not more than 60 days' prior notice on any interest payment date (prior to elapsing of the initial no-call periods, the notes are redeemable on not fewer than 10 days' and not more than 90 days' prior notice to, and for, each note's unique first rate reset date) at redemption prices equal to 100% of their principal amounts. Accrued and unpaid interest, if any, will be paid to the date fixed for redemption.

---

| | |
|:---|:---|
| **50** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | Principal face amount | Principal face amount |  |  |
| TELUS Corporation junior subordinated note series | Issued | Maturity | Issue price | Initial effective<br> interest rate <sup>1</sup> | Originally<br> issued | Outstanding<br> at financial<br> statement date | No-call period<br> cessation date | Rate reset<br> minimum <sup>2</sup> |
| 6.25% Fixed-to-Fixed Rate, Series CAR | Multiple <sup>3</sup> | July 2055 | $1006.41<sup>3</sup> | 6.09%<sup>3</sup> | $1.1 billion <sup>3</sup> | $1.5 billion<sup>3</sup> | July 21, 2030 | 6.25% |
| 6.75% Fixed-to-Fixed Rate, Series CAS | Multiple <sup>4</sup> | July 2055 | $1020.45<sup>4</sup> | 6.46%<sup>4</sup> | $500 million <sup>4</sup> | $925 million <sup>4</sup> | July 21, 2035 | 6.75% |
| U.S. Dollar 6.625% Fixed-to-Fixed Rate, Series A <sup>5</sup> | June 2025 | Oct. 2055 | US$1,000.00 | 6.625% | US$700 million | US$700 million | Oct. 15, 2030 | 6.625% |
| U.S. Dollar 7.00% Fixed-to-Fixed Rate, Series B <sup>5</sup> | June 2025 | Oct. 2055 | US$1,000.00 | 7.00% | US$800 million | US$800 million | Oct. 15, 2035 | 7.00% |

---

1 The effective interest rate represents the minimum yield the notes would provide to an initial debt holder if held to maturity.

---

| | |
|:---|:---|
| 2 | For the Series CAR and Series CAS notes, the rate reset is based upon a spread to the Five Year Government of Canada Bond Yield at the rate reset date, but is subject to a rate reset minimum. For the U.S. Dollar 6.625% Fixed-to-Fixed, Series A and U.S. Dollar 7.00% Fixed-to-Fixed, Series B notes, the rate reset is based upon a spread to Five-Year U.S. Treasury Rate at the rate reset date, but is subject to a reset minimum. |

---

---

| | |
|:---|:---|
| 3 | $1.1 billion of 6.25% Fixed-to-Fixed Rate, Series CAR notes were issued in April 2025 at an issue price of $999.65 and an initial effective interest rate of 6.25%. This series of notes was reopened in June 2025 and a further $375 million of notes were issued at an issue price of $1,026.25 and an initial effective interest rate of 5.61%. |

---

---

| | |
|:---|:---|
| 4 | $500 million of 6.75% Fixed-to-Fixed Rate, Series CAS notes were issued in April 2025 at an issue price of $999.59 and an initial effective interest rate of 6.75%. This series of notes was reopened in June 2025 and a further $425 million of notes were issued at an issue price of $1,045.00 and an initial effective interest rate of 6.13% |

---

5 We have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that, during the first no-call periods, effectively convert the principal payments and interest obligations to Canadian dollar obligations as follows:

---

| | | | |
|:---|:---|:---|:---|
| TELUS Corporation junior subordinated note series | First no-call <br> period interest<br> rate fixed at | Canadian dollar<br> equivalent<br> principal | Exchange<br> rate |
| U.S. Dollar 6.625% Fixed-to-Fixed Rate, Series A | 5.79% | $962 million | $1.3743 |
| U.S. Dollar 7.00% Fixed-to-Fixed Rate, Series B | 6.42% | $1.1 billion | $1.3743 |

---

**(g)** **TELUS International (Cda) Inc. credit facility** 

As at December 31, 2024, TELUS International (Cda) Inc. had a credit facility, secured by its assets, which was to expire on January 3, 2028, with a syndicate of financial institutions, including TELUS Corporation; during the three-month period ended September 30, 2025, the credit facility was repaid. The facility was comprised of US$800 million in revolving components and US$1.2 billion in amortizing term loan components, with TELUS Corporation as approximately 7.2% lender in both components. The facility was non-recourse to TELUS Corporation.

The term loan components were subject to amortization schedules which required that a minimum of 5% of the principal advanced be repaid each year of the term of the agreement, with the balance due at maturity.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| As at (millions) | Revolving<br> components | Revolving<br> components | Term loan<br> components <sup>1</sup> | Term loan<br> components <sup>1</sup> | Total | Total |
| **December 31, 2024** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Available** | US$ | 611 | US$ |  | US$ | 611 |
| &nbsp;&nbsp;&nbsp;**Outstanding** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to other | 175 | 175 | 1017 | 1017 | 1192 | 1192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to TELUS Corporation | 14 | 14 | 78 | 78 | 92 | 92 |
|  | US$ | 800 | US$ | 1095 | US$ | 1895 |

---

---

| | |
|:---|:---|
| 1 | Relative to amounts owed to the syndicate of financial institutions, excluding TELUS Corporation, we had entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively converted an amortizing amount of U.S. dollar-denominated principal payments, and associated interest obligations to European euro obligations with an effective fixed interest rate of 2.6% and an effective fixed exchange rate of US$1.088:€1.00 on the principal amount; the initial notional amount of these foreign exchange derivatives was US$448. These had been accounted for as a net investment hedge in a foreign operation (see *Note 4*). Upon repayment of the credit facility, the hedging relationships became ineffective and hedge accounting was discontinued. |

---

**(h)** **Other (secured)** 

Other liabilities incur interest at 4.4%, are secured by the AWS-4 spectrum licences associated with these other liabilities, and are subject to amortization schedules, so that the principal is repaid over the periods to maturity, the last period ending March 31, 2035.

**(i)** **Lease liabilities** 

Lease liabilities are subject to amortization schedules, so that the principal is repaid over various periods, which include reasonably expected renewals. The weighted average interest rate on lease liabilities was approximately 5.2% as at September 30, 2025.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **51** |

---

notes to condensed interim consolidated financial statements (unaudited)

**(j)** **Long-term debt maturities** 

Anticipated requirements for long-term debt repayments, calculated for long-term debt owed as at September 30, 2025, are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Composite long-term debt<br> denominated in | Canadian dollars | Canadian dollars | Canadian dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | Other<br> currencies |  |
|  | Long-term<br> debt, |  |  | Long-term<br> debt, |  | Currency swap agreement<br> amounts to be exchanged | Currency swap agreement<br> amounts to be exchanged |  |  |  |
| Years ending December 31 (millions) | excluding<br> leases | Leases <br>*(Note 19)* | Total | excluding<br> leases | Leases <br>*(Note 19)* | (Receive) <sup>1</sup> | Pay | Total | Leases <br>*(Note 19)* | Total |
| 2025 (remainder of year) | $**10** | $**91** | $**101** | $**453** | $**11** | $**(461)** | $**453** | $**456** | $**17** | $**574** |
| 2026 | **1450** | **616** | **2066** | **587** | **37** | **(601)** | **591** | **614** | **57** | **2737** |
| 2027 | **53** | **547** | **600** | **1531** | **31** | **(1531)** | **1459** | **1490** | **45** | **2135** |
| 2028 | **1955** | **380** | **2335** | **—** | **32** | **—** | **—** | **32** | **37** | **2404** |
| 2029 | **1408** | **261** | **1669** | **—** | **36** | **—** | **—** | **36** | **30** | **1735** |
| 2030 - 2034 | **6901** | **421** | **7322** | **1494** | **69** | **(2227)** | **2110** | **1446** | **71** | **8839** |
| Thereafter | **6558** | **480** | **7038** | **3385** | **—** | **(2412)** | **2326** | **3299** | **11** | **10348** |
| Future cash outflows in respect of composite long-term debt principal repayments | **18335** | **2796** | **21131** | **7450** | **216** | **(7232)** | **6939** | **7373** | **268** | **28772** |
| Future cash outflows in respect of associated interest and like carrying costs <sup>2</sup> | **11709** | **644** | **12353** | **6271** | **87** | **(2906)** | **2678** | **6130** | **89** | **18572** |
| Undiscounted contractual maturities (*Note 4(b)*) | $**30044** | $**3440** | $**33484** | $**13721** | $**303** | $**(10138)** | $**9617** | $**13503** | $**357** | $**47344** |

---

---

| | |
|:---|:---|
| 1 | Where applicable, cash flows reflect foreign exchange rates as at September 30, 2025. The maturities and gross cash flows for the TELUS Corporation junior subordinated notes reflect the initial fixed rate reset date. |
| 2 | Future cash outflows in respect of associated interest and like carrying costs for sustainability-linked notes, commercial paper, amounts drawn under our credit facilities (if any), other (unsecured) and junior subordinated notes have been calculated based upon the rates in effect as at September 30, 2025. |

---

---

| | |
|:---|:---|
| **52** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **27** | **other long-term liabilities** |

---

---

| | | | |
|:---|:---|:---|:---|
| As at (millions) | Note | **September 30,<br> 2025** | December 31, <br> 2024 |
| Contract liabilities | 24 | $**143** | $112 |
| Other |  | **2** | 2 |
| Deferred revenues |  | **145** | 114 |
| Pension benefit liabilities | 15 | **444** | 447 |
| Other post-employment benefit liabilities |  | **96** | 86 |
| Derivative liabilities | 4(d) | **135** | 118 |
| Deferred capital expenditure government grants |  | **66** | 49 |
| Investment in real estate joint venture | 21(a) | **—** | 4 |
| Other |  | **44** | 48 |
|  |  | **930** | 866 |
| Deferred customer activation and connection fees | 24 | **3** | 3 |
|  |  | $**933** | $869 |

---

---

| | |
|:---|:---|
| **28** | **owners' equity** |

---

**(a)** **TELUS Corporation Common Share capital – general** 

Our authorized share capital is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| As at | **September 30,<br> 2025** | **September 30,<br> 2025** | December 31, <br> 2024 | December 31, <br> 2024 |
| First Preferred Shares |  | **1 billion** |  | 1 billion |
| Second Preferred Shares |  | **1 billion** |  | 1 billion |
| Common Shares |  | **4 billion** |  | 4 billion |

---

Only holders of Common Shares may vote at our general meetings, with each holder entitled to one vote per Common Share held, provided that no less than 66-2/3% of the issued and outstanding Common Shares are owned by Canadians. With respect to priority in the payment of dividends and in the distribution of assets in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of our assets among our shareholders for the purpose of winding up our affairs, preferences are as follows: First Preferred Shares; Second Preferred Shares; and finally Common Shares.

As at September 30, 2025, we had reserved for issuance from Treasury: approximately 55 million Common Shares under a dividend reinvestment and share purchase plan (see *Note 13(b)*); approximately 46 million Common Shares under a restricted share unit plan (see *Note 14(b)*); and approximately 12 million Common Shares under a share option plan (see *Note 14(d)*).

**(b)** **Subsidiaries with significant non-controlling interests** 

**TELUS International (Cda) Inc.**

Our TELUS International (Cda) Inc. subsidiary is incorporated under the *Business Corporations Act* (British Columbia) and has geographically dispersed operations, with its principal places of business located in Asia, Central America, Europe and North America.

The following table presents changes in our economic and voting interests during the nine-month periods ended September 30, 2025 and 2024, as reflected in the Consolidated statements of changes in owners' equity.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Economic interest <sup>1</sup> | Economic interest <sup>1</sup> | Voting interest <sup>1</sup> | Voting interest <sup>1</sup> |
|  | **2025** | 2024 | **2025** | 2024 |
| Interest in TELUS International (Cda) Inc., beginning of period | **57.6%** | 56.0% | **87.0%** | 85.4% |
| **Effect of** |  |  |  |  |
| TELUS Corporation acquisition of shares from non-controlling interests <sup>2</sup> |  | 2.0 |  | 0.3 |
| Share-based compensation and other | **(0.6)** | (0.3) | **(0.2)** |  |
| Non-controlling interests conversion of multiple voting shares to subordinate voting shares |  |  | **5.9** | 1.3 |
| Interest in TELUS International (Cda) Inc., end of period | **57.0%** | 57.7% | **92.7%** | 87.0% |

---

---

| | |
|:---|:---|
| 1 | Our economic and voting interests differ due to the voting rights associated with the multiple voting shares held by TELUS Corporation. |
| 2 | Acquisition of shares from non-controlling interests of $NIL (2024 – $25 million), of which $NIL (2024 – $30 million) was credited to amounts recorded in owners' equity for contributed surplus and the balance was charged to non-controlling interests. |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **53** |

---

notes to condensed interim consolidated financial statements (unaudited)

The following table sets out the statement of income and other comprehensive income amounts allocated to TELUS International (Cda) Inc. non-controlling interests.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months | Three months | Nine months | Nine months |
| Periods ended <br> September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Net income (loss) | $**(65)** | $(23) | $**(337)** | $(17) |
| Other comprehensive income | **32** | (8) | **(13)** | 22 |
| Comprehensive income | $**(33)** | $(31) | $**(350)** | $5 |

---

As at September 30, 2025, the TELUS International (Cda) Inc. accumulated non-controlling interest was $852 million (December 31, 2024 – $1,174 million)

*Summarized financial information*

Summarized financial information for our TELUS International (Cda) Inc. subsidiary is set out in the accompanying table.

---

| | | | |
|:---|:---|:---|:---|
| As at, or for the periods ended, (millions) | **September 30,<br> 2025** | September 30,<br> 2024 | December 31,<br> 2024 |
| **Statement of financial position** <sup>1</sup> |  |  |  |
| Current assets | $**2012** |  | $1437 |
| Non-current assets | $**5128** |  | $5493 |
| Current liabilities | $**1793** |  | $1477 |
| Non-current liabilities | $**3082** |  | $2639 |
| **Statement of income and other comprehensive income** <sup>1</sup> |  |  |  |
| **THREE-MONTH** |  |  |  |
| Revenue and other income | $**957** | $897 |  |
| Net income (loss) | $**(133)** | $(43) |  |
| Comprehensive income (loss) | $**(59)** | $(63) |  |
| **NINE-MONTH** |  |  |  |
| Revenue and other income | $**2885** | $2757 |  |
| Net income (loss) | $**(544)** | $(10) |  |
| Comprehensive income (loss) | $**(575)** | $39 |  |
| **Statement of cash flows** <sup>1</sup> |  |  |  |
| **THREE-MONTH** |  |  |  |
| Cash provided (used) by operating activities | $**(19)** | $122 |  |
| Cash used by investing activities | $**(48)** | $(34) |  |
| Cash provided (used) by financing activities | $**375** | $(95) |  |
| **NINE-MONTH** |  |  |  |
| Cash provided by operating activities | $**83** | $372 |  |
| Cash used by investing activities | $**(130)** | $(106) |  |
| Cash provided (used) by financing activities | $**307** | $(238) |  |

---

1 As required by IFRS Accounting Standards, this summarized financial information excludes inter-company eliminations.

On June 12, 2025, TELUS Corporation announced that it has submitted a non-binding indication of interest to the board of directors of TELUS International (Cda) Inc. in respect of a proposed transaction pursuant to which TELUS Corporation would acquire all of the issued and outstanding subordinate voting shares and multiple voting shares of TELUS International (Cda) Inc. not already owned by TELUS Corporation.

Subsequent to receiving the proposal, the TELUS International (Cda) Inc. board of directors formed a special committee to review, evaluate and consider the proposal and any relevant alternatives. In addition, the special committee engaged independent legal, financial and valuation advisors.

On September 2, 2025, TELUS Corporation and TELUS International (Cda) Inc. announced that they had entered into a definitive agreement for TELUS Corporation to acquire all of the outstanding multiple voting shares and subordinate voting shares of TELUS International (Cda) Inc. not already owned by TELUS Corporation for a price per share of US$4.50. The per share purchase price was payable by TELUS Corporation, at TELUS International (Cda) Inc. shareholders' election, in (i) US$4.50 in cash, (ii) 0.273 of a Common Share, or (iii) a combination of US$2.25 in cash and 0.136 of a Common Share; alternatives (ii) and (iii) was subject to proration such that the aggregate consideration would include no more than 25% in Common Shares.

The transaction closed October 31, 2025, was effected by way of a court-approved plan of arrangement under the *Business Corporations Act* (British Columbia) and was subject to a number of conditions customary for transactions of this nature, including:

· Approval of at least two-thirds (66-2/3%) of the votes cast by holders of
subordinate voting shares and multiple voting shares of TELUS International (Cda) Inc. (including TELUS Corporation and its affiliates),
voting as a single class, at a special meeting of shareholders that was held on October 27, 2025 (such approval was given at the
special meeting);

· Approval of a simple majority of the votes cast by holders of subordinate
voting shares (excluding TELUS Corporation and its directors, senior officers and affiliates) at the special meeting (such approval was
given at the special meeting); and

· Court approval (such approval was given).

---

| | |
|:---|:---|
| **54** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

**Terrion**

Our Terrion subsidiary was established under the *Partnership Act* (Ontario) on July 24, 2025, and its principal place of business is Canada. Terrion is a wireless tower infrastructure operator enabling wholesale access and co-location.

During the 68-day period (herein after referred to as *three-month and nine-month* periods) from the date of establishment of the partnership through September 30, 2025, Terrion capitalization included issuing equity to a non-controlling interest. Subsequent to the capitalization activity, TELUS Corporation retained a 50.1% voting and economic interest in Terrion. TELUS has a call option, exercisable in whole but not in part, in respect of the non-controlling interest either in September 2027 (if there is a dispute among the partners) or after September 2057. The call option price is generally the greater of fair value and a multiple on invested capital.

The effects of issuing the equity to a non-controlling interest is reflected in the Consolidated statements of changes in owners' equity as set out in the accompanying table.

---

| | | | |
|:---|:---|:---|:---|
| Three-month and nine-month periods <br> ended September 30, 2025 (millions) | Issue of<br> equity | Other | Net |
| Net cash proceeds | $**1261** | $**(15)** | $**1246** |
| Income taxes | **—** | **2** | **2** |
| Non-controlling interest | $**1261** | $**(13)** | $**1248** |
| Contributed surplus |  |  | $**458** |
| Non-controlling interest |  |  | **790** |
|  |  |  | $**1248** |

---

The following table sets out the statement of income and other comprehensive income amounts allocated to Terrion non-controlling interests.

---

| | |
|:---|:---|
| Three-month and nine-month periods <br> ended September 30, 2025 (millions) |  |
| Net income and comprehensive income | $**2** |

---

As at September 30, 2025, the Terrion accumulated non-controlling interest was $792 million.

*Summarized financial information*

Summarized financial information for Terrion is set out in the accompanying table.

---

| | |
|:---|:---|
| As at, or for the periods ended, (millions) | **September 30, 2025** |
| **Statement of financial position** <sup>1</sup> |  |
| Current assets | $**13** |
| Non-current assets | $**664** |
| Current liabilities | $**28** |
| Non-current liabilities | $**324** |
| **Statement of income and other comprehensive income** <sup>1</sup> |  |
| **THREE-MONTH and NINE-MONTH** |  |
| Revenue | $**10** |
| Net income and comprehensive income <sup>2</sup> | $**4** |
| **Statement of cash flows** <sup>1</sup> |  |
| **THREE-MONTH and NINE-MONTH** |  |
| Cash provided by operating activities | $**2** |
| Cash provided by financing activities | $**(2)** |

---

---

| | |
|:---|:---|
| 1 | As required by IFRS Accounting Standards, this summarized financial information excludes inter-company eliminations. The establishment of Terrion has been accounted for as a business combination under common control with predecessor accounting prospectively applied. |
| 2 | As Terrion is a partnership, no provision is made for income taxes in respect of the partners in determining Terrion's net income and comprehensive income. |

---

---

| | |
|:---|:---|
| **29** | **contingent liabilities** |

---

**Claims and lawsuits**

*General*

A number of claims and lawsuits (including class actions and intellectual property infringement claims) seeking damages and other relief are pending against us and, in some cases, other mobile carriers and telecommunications service providers. As well, we have received notice of, or are aware of, certain possible claims (including intellectual property infringement claims) against us and, in some cases, other mobile carriers and telecommunications service providers.

It is not currently possible for us to predict the outcome of such claims, possible claims and lawsuits due to various factors, including: the preliminary nature of some claims; uncertain damage theories and demands; an incomplete factual record; uncertainty concerning legal theories and procedures and their resolution by the courts, at both the trial and the appeal levels; and the unpredictable nature of opposing parties and their demands.

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **55** |

---

notes to condensed interim consolidated financial statements (unaudited)

However, subject to the foregoing limitations, management is of the opinion, based upon legal assessments and information presently available, that it is unlikely that any liability, to the extent not provided for through insurance or otherwise, would have a material effect on our financial position and the results of our operations, including cash flows, with the exception of the following items.

*Certified class actions*

Certified class actions against us include the following:

*System access fee class action*

In 2004, a class action was brought in Saskatchewan against a number of past and present wireless service providers, including us, which alleged breach of contract, misrepresentation, unjust enrichment and violation of competition, trade practices and consumer protection legislation across Canada in connection with the collection of system access fees. In September 2007, a national opt-in class was certified by the Saskatchewan Court of Queen's Bench in relation to the unjust enrichment claim only. In February 2008, the Saskatchewan Court of Queen's Bench granted an order amending the certification order so as to exclude from the class of plaintiffs any customer bound by an arbitration clause with us. After a long period of dormancy, the Plaintiff sought, in 2024, to advance the class action. The defendants have applied to dismiss the class action for want of prosecution.

*Per minute billing class action*

In 2008, a class action was brought in Ontario against us alleging breach of contract, breach of the Ontario *Consumer Protection Act*, breach of the *Competition Act* and unjust enrichment, in connection with our practice of "rounding up" mobile airtime to the nearest minute and charging for the full minute. The action sought certification of a national class. In November 2014, an Ontario class only was certified by the Ontario Superior Court of Justice in relation to the breach of contract, breach of *Consumer Protection Act*, and unjust enrichment claims; all appeals of the certification decision have now been exhausted. At the same time, the Ontario Superior Court of Justice declined to stay the claims of our business customers, notwithstanding an arbitration clause in our customer service agreements with those customers. This latter decision was appealed and on May 31, 2017, the Ontario Court of Appeal dismissed our appeal. The Supreme Court of Canada granted us leave to appeal this decision and on April 4, 2019, granted our appeal and stayed the claims of business customers. Notice of this certified class action was provided to potential class members in 2022.

*Call set-up time class actions*

In 2005, a class action was brought against us in British Columbia alleging that we have engaged in deceptive trade practices in charging for incoming calls from the moment the caller connects to the network, and not from the moment the incoming call is connected to the recipient. In 2011, the Supreme Court of Canada upheld a stay of all of the causes of action advanced by the plaintiff in this class action, with one exception, based on the arbitration clause that was included in our customer service agreements. The sole exception was the cause of action based on deceptive or unconscionable practices under the British Columbia *Business Practices and Consumer Protection Act*, which the Supreme Court of Canada declined to stay. In January 2016, the British Columbia Supreme Court certified this class action in relation to the claim under the *Business Practices and Consumer Protection Act*. The class is limited to residents of British Columbia who contracted mobile services with us in the period from January 21, 1999, to April 2010. We have appealed the certification decision. A companion class action was brought against us in Alberta at the same time as the British Columbia class action. The Alberta class action duplicates the allegations in the British Columbia action, but has not proceeded to date. Subject to a number of conditions, including court approval, we have now settled both the British Columbia and the Alberta class actions. Court approval of the settlement of both class actions has been granted in 2025, and the notice of settlement approval and claims procedures have been disseminated.

*Uncertified class actions*

Uncertified class actions against us include:

*9-1-1 class actions*

In 2008, a class action was brought in Saskatchewan against us and other Canadian telecommunications carriers alleging that, among other matters, we failed to provide proper notice of 9-1-1 charges to the public, have been deceitfully passing them off as government charges, and have charged 9-1-1 fees to customers who reside in areas where 9-1-1 service is not available. The plaintiffs advance causes of action in breach of contract, misrepresentation and false advertising and seek certification of a national class. A virtually identical class action was filed in Alberta at the same time, but the Alberta Court of Queen's Bench declared that class action expired against us as of 2009. No steps have been taken in this proceeding since 2016.

---

| | |
|:---|:---|
| **56** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

*Public Mobile class actions*

In 2014, class actions were brought against us in Quebec and Ontario on behalf of Public Mobile's customers, alleging that changes to the technology, services and rate plans made by us contravene our statutory and common law obligations. In particular, the Quebec action alleges that our actions constitute a breach of the Quebec *Consumer Protection Act*, the Quebec *Civil Code*, and the Ontario *Consumer Protection Act*. On June 28, 2021, the Quebec Superior Court approved the discontinuance of this claim against TELUS. The Ontario class action alleges negligence, breach of express and implied warranty, breach of the *Competition Act*, unjust enrichment, and waiver of tort. No steps have been taken in this proceeding since it was filed and served.

*Summary*

We believe that we have good defences to the above matters. Should the ultimate resolution of these matters differ from management's assessments and assumptions, a material adjustment to our financial position and the results of our operations, including cash flows, could result. Management's assessments and assumptions include that reliable estimates of any such exposure cannot be made considering the continued uncertainty about: the nature of the damages that may be sought by the plaintiffs; the causes of action that are being, or may ultimately be, pursued; and, in the case of the uncertified class actions, the causes of action that may ultimately be certified.

---

| | |
|:---|:---|
| **30** | **related party transactions** |

---

**(a)** **Transactions with key management personnel** 

Our key management personnel, consisting of our Board of Directors and our Executive Team, have authority and responsibility for overseeing, planning, directing and controlling our activities.

Total compensation expense for key management personnel and its composition, included in the Consolidated statements of income and other comprehensive income as Employee benefits expense, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months | Three months | Nine months | Nine months |
| Periods ended<br> September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| Short-term benefits | $**4** | $4 | $**12** | $13 |
| Post-employment pension <sup>1</sup> and other benefits | **1** | 4 | **5** | 8 |
| Share-based compensation <sup>2</sup> | **15** | 17 | **47** | 37 |
|  | $**20** | $25 | $**64** | $58 |

---

---

| | |
|:---|:---|
| 1 | The members of our Executive Team are members of our *Pension Plan for Management and Professional Employees of TELUS Corporation* and certain other non-registered, non-contributory supplementary defined benefit and defined contribution pension plans. |
| 2 | We accrue an expense for the notional subset of our restricted share units with market performance conditions using a fair value determined by a Monte Carlo simulation. Restricted share units with an equity settlement feature are accounted for as equity instruments. The expense in respect of restricted share units that do not ultimately vest is reversed against the expense that was previously recorded in their respect. |

---

As disclosed in *Note 14*, we made awards of share-based compensation in 2025 and 2024 to our key management personnel, as set out in the following table. As most of these awards are cliff-vesting or graded-vesting with multi-year requisite service periods, the related expense is being recognized rateably over a period of years and thus only a portion of the 2025 and 2024 initial awards is included in the amounts in the table above.

---

| | | | |
|:---|:---|:---|:---|
| Nine-month periods ended September 30<br> ($ in millions) | Number of<br> units | Notional<br> value <sup>1</sup> | Grant-date<br> fair value <sup>1</sup> |
| **2025** |  |  |  |
| **TELUS Corporation** |  |  |  |
| Restricted share units | **1601848** | $**35** | $**43** |
| **TELUS International (Cda) Inc.** |  |  |  |
| Restricted share units | **1229346** | **5** | **5** |
|  |  | $**40** | $**48** |
| **2024** |  |  |  |
| **TELUS Corporation** |  |  |  |
| Restricted share units | 1465459 | $35 | $41 |
| **TELUS International (Cda) Inc.** |  |  |  |
| Restricted share units | 1054899 | 12 | 12 |
|  |  | $47 | $53 |

---

---

| | |
|:---|:---|
| 1 | The notional value of restricted share units is determined by multiplying the equity share price at the time of award by the number of units awarded; the grant-date fair value differs from the notional value because the fair values of some awards have been determined using a Monte Carlo simulation (see *Note 14(b)*). |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **57** |

---

notes to condensed interim consolidated financial statements (unaudited)

Our *Directors' Deferred Share Unit Plan* provides that, in addition to his or her annual equity grant of deferred share units, a director may elect to receive his or her annual retainer and meeting fees in deferred share units, TELUS Corporation Common Shares or cash. Deferred share units entitle directors to a specified number of TELUS Corporation Common Shares. Deferred share units are settled when a director ceases to be a director, for any reason, at a time elected by the director in accordance with the *Directors' Deferred Share Unit Plan*. As at September 30, 2025, and December 31, 2024, no share-based compensation awards accounted for as liabilities were outstanding.

Executive Team employment agreements typically provide for severance payments if an executive's employment is terminated without cause: generally, 18 months of base salary, benefits and accrual of pension service in lieu of notice, and 50% of base salary in lieu of an annual cash bonus. In the event of a change in control, Executive Team members are not entitled to treatment any different than that given to our other employees with respect to non-vested share-based compensation.

**(b)** **Transactions with defined benefit pension plans** 

During the three-month and nine-month periods ended September 30, 2025, we provided our defined benefit pension plans with management and administrative services on a cost recovery basis and actuarial services on an arm's-length basis; the charges for these services amounted to $3 million (2024 – $2 million) and $9 million (2024 – $7 million), respectively, and are included net in the Consolidated statements of income and other comprehensive income as Goods and services purchased.

**(c)** **Transactions with real estate joint ventures and associate** 

During the three-month and nine-month periods ended September 30, 2025 and 2024, we had recurring and non-recurring transactions with the real estate joint ventures, which are related parties, as set out in *Note 21.*

---

| | |
|:---|:---|
| **58** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | |
|:---|:---|
| **31** | **additional statement of cash flow information** |

---

**(a)** **Statements of cash flows – operating activities and investing activities** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| Periods ended | Three months | Three months | Nine months | Nine months |
| &nbsp;&nbsp;&nbsp;September 30 (millions) | **2025** | 2024 | **2025** | 2024 |
| **OPERATING ACTIVITIES** |  |  |  |  |
| **Net change in non-cash operating working capital** |  |  |  |  |
| Current |  |  |  |  |
| Accounts receivable | $**(139)** | $(51) | $**86** | $57 |
| Inventories | **30** | 38 | **174** | (8) |
| Contract assets | **8** | 9 | **20** | 32 |
| Costs incurred to obtain or fulfill contracts with customers (*Note 20*) | **(8)** | (14) | **(29)** | (37) |
| Prepaid maintenance and other | **68** | 118 | **(103)** | (50) |
| Unrealized change in held for trading derivatives (*Note 4(d)*) | **(14)** | (7) | **(17)** | 15 |
| Accounts payable and accrued liabilities | **300** | 109 | **(19)** | 76 |
| Income and other taxes receivable and payable, net | **153** | 83 | **72** | 164 |
| Advance billings and customer deposits (*Note 24*) | **(44)** | (76) | **(85)** | (38) |
| Provisions (*Note 25*) | **6** | 11 | **7** | (80) |
|  | **360** | 220 | **106** | 131 |
| Non-current |  |  |  |  |
| Contract assets | **16** | 2 | **68** | 26 |
| Unbilled customer finance receivables | **19** | 10 | **41** | 77 |
| Unrealized change in held for trading derivatives (*Note 4(d)*) | **42** | 123 | **42** | 212 |
| Costs incurred to obtain or fulfill contracts with customers (*Note 20*) | **(15)** | (22) | **(43)** | (56) |
| Prepaid maintenance | **3** | 2 | **11** | 5 |
| Refundable security deposits and other | **(7)** | (21) | **(12)** | (22) |
| Provisions (*Note 25*) | **—** | (10) | **(110)** | (53) |
| Contract liabilities (*Note 24, 27)* | **(4)** | 2 | **31** | 21 |
| Other post-employment benefit liabilities | **4** | 3 | **10** | 7 |
| Other long-term liabilities | **(4)** | (3) | **(4)** | (5) |
|  | **54** | 86 | **34** | 212 |
|  | $**414** | $306 | $**140** | $343 |
| **INVESTING ACTIVITIES** |  |  |  |  |
| **Cash payments for capital assets, excluding spectrum licences** |  |  |  |  |
| Capital asset additions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gross capital expenditures |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment (*Note 17*) | $**(739)** | $(621) | $**(2136)** | $(1947) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets subject to amortization (*Note 18*) | **(256)** | (231) | **(705)** | (765) |
|  | **(995)** | (852) | **(2841)** | (2712) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions arising from leases (*Note 17*) | **343** | 184 | **907** | 591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions arising from non-monetary transactions | **—** |  | **17** | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures (*Note 5*) | **(652)** | (668) | **(1917)** | (2084) |
| Other non-cash items included above |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in associated non-cash investing working capital | **18** | (11) | **31** | (73) |
|  | $**(634)** | $(679) | $**(1886)** | $(2157) |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **59** |

---

notes to condensed interim consolidated financial statements (unaudited)

**(b)** **Changes in liabilities arising from financing activities** 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** |
|  | | Statement of cash flows | Statement of cash flows | Non-cash changes | Non-cash changes | | | Statement of cash flows | Statement of cash flows | Non-cash changes | Non-cash changes | |
| (millions) | Beginning of <br> period | Issued or<br> received | Redemptions,<br> repayments or<br> payments | Foreign<br> exchange<br> movement<br> (*Note 4(e)*) | Other | End of period | Beginning of <br> period | Issued or <br> received | Redemptions, <br> repayments or <br> payments | Foreign <br> exchange <br> movement<br> (*Note 4(e)*) | Other | End of period |
| **Dividends payable to holders of Common Shares** | $577 | $— | $(577) | $— | $578 | $578 | $634 | $**—** | $**(634)** | $**—** | $**639** | $**639** |
| Dividends reinvested in shares from Treasury |  |  | 193 |  | (193) |  |  | **—** | **226** | **—** | **(226)** | **—** |
|  | $577 | $— | $(384) | $— | $385 | $578 | $634 | $**—** | $**(408)** | $**—** | $**413** | $**639** |
| **Short-term borrowings** | $1044 | $— | $(103) | $(16) | $— | $925 | $922 | $**—** | $**(19)** | $**19** | $**—** | $**922** |
| Net-settled derivatives used to manage currency risk arising from U.S. dollar-denominated short-term borrowings – liability (asset) |  |  | (15) | 14 |  | (1) | 1 | **22** | **—** | **(21)** | **—** | **2** |
|  | $1044 | $— | $(118) | $(2) | $— | $924 | $923 | $**22** | $**(19)** | $**(2)** | $**—** | $**924** |

---

---

| | |
|:---|:---|
| **60** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | Three-month period ended September 30, 2024 | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** | **Three-month period ended September 30, 2025** |
|  | | Statement of cash flows | Statement of cash flows | Non-cash changes | Non-cash changes | | | Statement of cash flows | Statement of cash flows | Non-cash changes | Non-cash changes | |
| (millions) | Beginning of<br> period | Issued or <br> received | Redemptions, <br> repayments or <br> payments | Foreign <br> exchange <br> movement <br> (*Note 4(e)*) | Other | End of period | Beginning of <br> period | Issued or <br> received | Redemptions, <br> repayments or <br> payments | Foreign <br> exchange <br> movement <br> (*Note 4(e)*) | Other | End of period |
| **Long-term debt** |  |  |  |  |  |  |  |  |  |  |  |  |
| TELUS Corporation senior notes | $21145 | $700 | $— | $(61) | $(1) | $21783 | $21045 | $**—** | $**(1549)** | $**79** | $**(241)** | $**19334** |
| TELUS Corporation commercial paper | 1760 | 467 | (1145) | (19) |  | 1063 | 991 | **1066** | **(1037)** | **20** | **—** | **1040** |
| Other (unsecured) |  |  |  |  |  |  | 273 | **21** | **—** | **5** | **—** | **299** |
| TELUS Communications Inc. debentures | 200 |  |  |  |  | 200 | 200 | **—** | **(200)** | **—** | **—** | **—** |
| TELUS Corporation junior subordinated notes |  |  |  |  |  |  | 4414 | **—** | **—** | **42** | **8** | **4464** |
| TELUS International (Cda) Inc. credit facility | 1745 | 127 | (194) | (26) | 2 | 1654 | 1610 | **294** | **(1950)** | **36** | **10** | **—** |
| Other (secured) | 613 |  | (20) |  | 4 | 597 | 568 | **—** | **(13)** | **—** | **—** | **555** |
| Lease liabilities | 2688 |  | (171) | 5 | 181 | 2703 | 3093 | **—** | **(137)** | **(3)** | **344** | **3297** |
| Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset) | (7) | 1164 | (1163) | 102 | (18) | 78 | 219 | **1056** | **(1080)** | **(137)** | **(82)** | **(24)** |
|  | 28144 | 2458 | (2693) | 1 | 168 | 28078 | 32413 | **2437** | **(5966)** | **42** | **39** | **28965** |
| To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt |  | (1164) | 1164 |  |  |  |  | **(1056)** | **1056** | **—** | **—** | **—** |
|  | $28144 | $1294 | $(1529) | $1 | $168 | $28078 | $32413 | $**1381** | $**(4910)** | $**42** | $**39** | $**28965** |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **61** |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** |
|  | | Statement of cash flows | Statement of cash flows | Non-cash changes | Non-cash changes | | | Statement of cash flows | Statement of cash flows | Non-cash changes | Non-cash changes | |
| (millions) | Beginning of <br> period | Issued or <br> received | Redemptions, <br> repayments or <br> payments | Foreign <br> exchange <br> movement <br> (*Note 4(e)*) | Other | End of period | Beginning of <br> period | Issued or <br> received | Redemptions, <br> repayments or <br> payments | Foreign <br> exchange <br> movement <br> (*Note 4(e)*) | Other | End of period |
| **Dividends payable to holders of Common Shares** | $550 | $— | $(1681) | $— | $1709 | $578 | $605 | $**—** | $**(1849)** | $**—** | $**1883** | $**639** |
| Dividends reinvested in shares from Treasury |  |  | 507 |  | (507) |  |  | **—** | **634** | **—** | **(634)** | **—** |
|  | $550 | $— | $(1174) | $— | $1202 | $578 | $605 | $**—** | $**(1215)** | $**—** | $**1249** | $**639** |
| **Short-term borrowings** | $104 | $1040 | $(203) | $(16) | $— | $925 | $922 | $**392** | $**(349)** | $**(43)** | $**—** | $**922** |
| Net-settled derivatives used to manage currency risk arising from U.S. dollar-denominated short-term borrowings – liability (asset) |  |  | (15) | 14 |  | (1) | 2 | **29** | **(60)** | **31** | **—** | **2** |
|  | $104 | $1040 | $(218) | $(2) | $— | $924 | $924 | $**421** | $**(409)** | $**(12)** | $**—** | $**924** |

---

---

| | |
|:---|:---|
| **62** \| September 30, 2025 | ![](tm2525674d1_ex99-1img001.jpg) |

---

notes to condensed interim consolidated financial statements (unaudited)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | Nine-month period ended September 30, 2024 | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** | **Nine-month period ended September 30, 2025** |
|  | | Statement of cash flows | Statement of cash flows | Non-cash changes | Non-cash changes | | | Statement of cash flows | Statement of cash flows | Non-cash changes | Non-cash changes | |
| (millions) | Beginning of<br> period | Issued or <br> received | Redemptions,<br> repayments or<br> payments | Foreign <br> exchange <br> movement <br> (*Note 4(e)*) | Other | End of period | Beginning of<br> period | Issued or <br> received | Redemptions, <br> repayments or <br> payments | Foreign <br> exchange <br> movement <br> (*Note 4(e)*) | Other | End of period |
| **Long-term debt** |  |  |  |  |  |  |  |  |  |  |  |  |
| TELUS Corporation senior notes | $20301 | $2500 | $(1100) | $89 | $(7) | $21783 | $22077 | $**—** | $**(2349)** | $**(163)** | $**(231)** | $**19334** |
| TELUS Corporation commercial paper | 1021 | 2343 | (2317) | 16 |  | 1063 | 1404 | **3190** | **(3477)** | **(77)** | **—** | **1040** |
| TELUS Corporation credit facilities | 1144 |  | (1144) |  |  |  |  | **770** | **(764)** | **(6)** | **—** | **—** |
| Other (unsecured) |  |  |  |  |  |  |  | **301** | **—** | **(2)** | **—** | **299** |
| TELUS Communications Inc. debentures | 200 |  |  |  |  | 200 | 200 | **—** | **(200)** | **—** | **—** | **—** |
| TELUS Corporation junior subordinated notes |  |  |  |  |  |  |  | **4451** | **—** | **37** | **(24)** | **4464** |
| TELUS International (Cda) Inc. credit facility | 1781 | 240 | (405) | 37 | 1 | 1654 | 1703 | **801** | **(2459)** | **(57)** | **12** | **—** |
| Other (secured) | 288 |  | (27) |  | 336 | 597 | 588 | **—** | **(150)** | **—** | **117** | **555** |
| Lease liabilities | 2614 |  | (503) | 13 | 579 | 2703 | 2882 | **—** | **(506)** | **16** | **905** | **3297** |
| Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset) | 13 | 2374 | (2358) | (101) | 150 | 78 | (68) | **3535** | **(3578)** | **273** | **(186)** | **(24)** |
|  | 27362 | 7457 | (7854) | 54 | 1059 | 28078 | 28786 | **13048** | **(13483)** | **21** | **593** | **28965** |
| To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt |  | (2374) | 2374 |  |  |  |  | **(3535)** | **3535** | **—** | **—** | **—** |
|  | $27362 | $5083 | $(5480) | $54 | $1059 | $28078 | $28786 | $**9513** | $**(9948)** | $**21** | $**593** | $**28965** |

---

---

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|:---|:---|
| ![](tm2525674d1_ex99-1img001.jpg) | September 30, 2025 \| **63** |

---

## Exhibit 99.2

**Exhibit 99.2**

**TELUS CORPORATION**

**Management's discussion and analysis**

**2025 Q3**

![](tm2525674d1_ex99-2img001.jpg)

TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Caution regarding forward-looking statements**

The terms *TELUS, the Company, we, us* and *our* refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries.

This document contains forward-looking statements about expected events and our financial and operating performance. Forward-looking statements include any statements that do not refer to 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), and our financing plans (including our multi-year dividend growth program). Forward-looking statements are typically identified by the words *assumption*, *goal*, *guidance*, *objective*, *outlook*, *strategy*, *target* and other similar expressions, or verbs such as *aim*, *anticipate*, *believe*, *could*, *expect*, *intend*, *may*, *plan*, *predict*, *seek*, *should*, *strive* and *will*. These statements are made pursuant to the "safe harbour" provisions of applicable securities laws in Canada and the United States *Private Securities Litigation Reform Act of 1995*.

By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or other events may differ materially from expectations expressed in, or implied by, the forward-looking statements.

These risks and the assumptions underlying our forward-looking statements are described in additional detail in *Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings* and *Section 10 Risks and risk management* in our 2024 annual Management's discussion and analysis (MD&A). Those descriptions are incorporated by reference in this cautionary statement but are not intended to be a complete list of the risks that could affect the Company, or of our assumptions. Updates to the assumptions on which our 2025 outlook is based are presented in *Section 9 Update to general trends, outlook and assumptions, and regulatory developments and proceedings* in this MD&A.

Risks and uncertainties that could cause actual performance or other events to differ materially from the forward-looking statements made herein and in other TELUS filings include, but are not limited to, the following:

·  **<u>Regulatory matters</u>** . *We operate in a number of highly regulated industries and are therefore subject to a wide variety of laws and regulations domestically and internationally. Policies and approaches advanced by elected officials and regulatory decisions, reviews and other government activity may have strategic, operational and/or financial impacts (including on revenue and free cash flow)*.

Risks and uncertainties include:

&nbsp;&nbsp;&nbsp;&nbsp;o potential
 changes to our regulatory regime or the outcomes of proceedings, cases or inquiries relating
 to its application, including, but not limited to, those set out in *Section 9.1 Communications industry regulatory developments and proceedings* in this MD&A;

&nbsp;&nbsp;&nbsp;&nbsp;o our
 ability to comply with complex and changing regulation of the healthcare, virtual care and
 medical devices industries in the jurisdictions in which we operate, including as an operator
 of health clinics; and

&nbsp;&nbsp;&nbsp;&nbsp;o our
 ability to comply with, or facilitate our clients' compliance with, numerous, complex
 and sometimes conflicting legal regimes, both domestically and internationally.

·  **<u>Competitive environment</u>** . *Competitor expansion, activity and intensity (pricing, including discounting, bundling), as well as non-traditional competition, disruptive technology and disintermediation, may alter the nature of the markets in which we compete and impact our market share and financial results (including revenue and free cash flow*). *TELUS Health, TELUS Digital and TELUS Agriculture & Consumer Goods also face intense competition in their respective different markets.* 

·  **<u>Technology</u>** . *Consumer adoption of alternative technologies and changing customer expectations have the potential to impact our revenue streams and customer churn rates*.

Risks and uncertainties include:

&nbsp;&nbsp;&nbsp;&nbsp;o disruptive
 technologies, including software-defined networks in the business market, that may displace
 or cause us to reprice our existing data services, and self-installed technology solutions;

&nbsp;&nbsp;&nbsp;&nbsp;o any
 failure to innovate, maintain technological advantages or respond effectively and in a timely
 manner to changes in technology;

&nbsp;&nbsp;&nbsp;&nbsp;o the
 roll-out, anticipated benefits and efficiencies, and ongoing evolution of wireless broadband
 technologies and systems;

&nbsp;&nbsp;&nbsp;&nbsp;o our
 reliance on wireless network access agreements, which have facilitated our deployment of
 mobile technologies;

&nbsp;&nbsp;&nbsp;&nbsp;o our
 expected long-term need to acquire additional spectrum through future spectrum auctions and
 from third parties to meet growing demand for data, and our ability to utilize spectrum we
 acquire;

&nbsp;&nbsp;&nbsp;&nbsp;o deployment
 and operation of new fixed broadband network technologies at a reasonable cost and the availability
 and success of new products and services to be rolled out using such network technologies;
 and

&nbsp;&nbsp;&nbsp;&nbsp;o our
 deployment of self-learning tools and automation, which may change the way we interact with
 customers.

·  **<u>Security and data protection</u>** . *Our ability to detect and identify potential threats and vulnerabilities depends on the effectiveness of our security controls in protecting our infrastructure and operating environment, and our timeliness in responding to attacks and restoring business operations. A successful attack may impede the operations of our network or lead to the unauthorized access to, interception, destruction, use or dissemination of, customer, team member or business information*.

·  **<u>Generative AI (GenAI)</u>** . *GenAI exposes us to numerous risks, including risks related to operational reliability, responsible AI usage, data privacy and cybersecurity, the possibility that our use of AI may generate inaccurate or inappropriate content or create negative perceptions among customers, the risk that we may not develop and adopt AI technologies effectively and could fail to achieve improved efficiency through our use of GenAI or that the use of AI could reduce demand for our services, and that regulation could affect future implementation of AI.* 

 

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

 

·  **<u>Climate and the environment</u>** . *Natural disasters, pandemics, disruptive events and climate change may impact our operations, customer satisfaction and team member experience*.

Our goals to achieve carbon neutrality and reduce our greenhouse gas (GHG) emissions in our operations are subject to our ability to identify, procure and implement solutions that reduce energy consumption and adopt cleaner sources of energy, our ability to identify and make suitable investments in renewable energy, including in the form of virtual power purchase agreements, and our ability to continue to realize significant absolute reductions in energy use and the resulting GHG emissions from our operations.

·  **<u>Operational performance and business combination, including TELUS Digital privatization</u>** *. Investments and acquisitions present opportunities to expand our operational scope, but may expose us to new risks. We may be unsuccessful in gaining market traction/share or in integrating acquisitions into our operations within expected timelines or at all, we may not realize the expected benefits of acquisitions, and integration efforts may divert resources from other priorities*. *There is no assurance that we will realize any or all of the anticipated benefits of the privatization of TELUS International (Cda) Inc. in the timeframe anticipated or at expected cost levels, that we will be able to drive cross-selling opportunities, or that our estimates and expectations in relation to future economic and business conditions and the resulting impact on growth and various financial metrics will provide to be accurate.* 

Risks relating to operational performance include:

&nbsp;&nbsp;&nbsp;&nbsp;o our
 reliance on third-party cloud-based computing services to deliver our IT services; and

&nbsp;&nbsp;&nbsp;&nbsp;o economic,
 political and other risks associated with doing business globally (including war and other
 geopolitical developments).

·  **<u>Our systems and processes</u>** . *Systems and technology innovation, maintenance and management may impact our IT systems and network reliability, as well as our operating costs*.

Risks and uncertainties include:

&nbsp;&nbsp;&nbsp;&nbsp;o our
 ability to maintain customer service and operate our network in the event of human error
 or human-caused threats, such as cyberattacks and equipment failures that could cause network
 outages;

&nbsp;&nbsp;&nbsp;&nbsp;o technical
 disruptions and infrastructure breakdowns;

&nbsp;&nbsp;&nbsp;&nbsp;o delays
 and rising costs, including as a result of government restrictions or trade actions; and

&nbsp;&nbsp;&nbsp;&nbsp;o the
 completeness and effectiveness of business continuity and disaster recovery plans and responses.

·  **<u>Our team</u>** . *The rapidly evolving and highly competitive nature of our markets and operating environment, along with the globalization and evolving demographic profile of our workforce, and the effectiveness of our internal training, development, succession and health and well-being programs, may impact our ability to attract, develop and retain team members with the skills required to meet the changing needs of our customers and our business. Team members may face greater mental health challenges associated with the significant change initiatives at the organization, which may result in the loss of key team members through short-term and long-term disability*. *Integration of international business acquisitions and concurrent integration activities may impact operational efficiency, organizational culture and engagement*.

·  **<u>Suppliers</u>** . *We may be impacted by supply chain disruptions and lack of resiliency in relation to global or local events. Dependence on a single supplier for products, components, service delivery or support may impact our ability to efficiently meet constantly changing and rising customer expectations while maintaining quality of service*. *Our suppliers' ability to maintain and service their product lines could affect the success of upgrades to, and evolution of, technology that we offer.* 

·  **<u>Real estate matters</u>** . *Real estate investments are exposed to possible financing risks and uncertainty related to future demand, occupancy and rental rates, especially following the pandemic. Future real estate developments may not be completed on budget or on time and may not obtain lease commitments as planned*.

·  **<u>Financing, debt and dividends</u>** . *Our ability to access funding at optimal pricing may be impacted by general market conditions and changing assessments in the fixed-income and equity capital markets regarding our ability to generate sufficient future cash flow to service our debt. Failure to complete planned deleveraging initiatives or to achieve the anticipated benefits of those initiatives could increase our cost of capital. Our current intention to pay dividends to shareholders could constrain our ability to invest in our operations to support future growth*.

Risks and uncertainties include:

&nbsp;&nbsp;&nbsp;&nbsp;o our
 ability to use equity as a form of consideration in business acquisitions is impacted by
 stock market valuations of TELUS Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;o our
 capital expenditure levels and potential outlays for spectrum licences in auctions or purchases
 from third parties affect and are affected by: our broadband initiatives; our ongoing deployment
 of newer mobile technologies; investments in network technology required to comply with laws
 and regulations relating to the security of cyber systems, including bans on the products
 and services of certain vendors; investments in network resiliency and reliability; the allocation
 of resources to acquisitions and future spectrum auctions held by Innovation, Science and
 Economic Development Canada (ISED). Our capital expenditure levels could be impacted if we
 do not achieve our targeted operational and financial results or if there are changes to
 our regulatory environment; and

&nbsp;&nbsp;&nbsp;&nbsp;o lower
 than planned free cash flow could constrain our ability to invest in operations, reduce leverage
 or return capital to shareholders. Quarterly dividend decisions are made by our Board of
 Directors based on our financial position and outlook. There can be no assurance that our
 dividend growth program will be maintained through 2028 or renewed.

·  **<u>Tax matters</u>** . *Complexity of domestic and foreign tax laws, regulations and reporting requirements that apply to TELUS and our international operating subsidiaries may impact financial results. International acquisitions and expansion of operations heighten our exposure to multiple forms of taxation*.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

·  **<u>The economy</u>** . *Changing global economic conditions, including a potential recession and alternating expectations about inflation, as well as our effectiveness in monitoring and revising growth assumptions and contingency plans, may impact the achievement of our corporate objectives, our financial results (including free cash flow), and our defined benefit pension plans*. *Geopolitical uncertainties and potential tariffs or non-tariff trade actions present a risk of recession and may cause customers to reduce or delay discretionary spending, impacting new service purchases or volumes of use, and consider substitution by lower-priced alternatives*.

·  **<u>Litigation and legal matters</u>** . *Complexity of, and compliance with, laws, regulations, commitments and expectations may have a financial and reputational impact*.

Risks include:

&nbsp;&nbsp;&nbsp;&nbsp;o our
 ability to defend against existing and potential claims or our ability to negotiate and exercise
 indemnity rights or other protections in respect of such claims; and

&nbsp;&nbsp;&nbsp;&nbsp;o the
 complexity of legal compliance in domestic and foreign jurisdictions, including compliance
 with competition, anti-bribery and foreign corrupt practices laws.

Additional risks and uncertainties that are not currently known to us or that we currently deem to 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 any non-recurring or special items or any mergers, acquisitions, dispositions or other business combinations or transactions that may be announced or that may occur after the date of this document.

Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in this document describe our expectations, and are based on our assumptions, as at the date of this document and are subject to change after this date. We disclaim any intention or obligation to update or revise any forward-looking statements except as required by law.

This cautionary statement qualifies all of the forward-looking statements in this MD&A.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Management's discussion and analysis (MD&A)**

November 7, 2025

**Contents**

---

| | | | |
|:---|:---|:---|:---|
| **Section** | **Section** | **Page** | &nbsp;&nbsp;**Subsection** |
| 1. | &nbsp;&nbsp;&nbsp;&nbsp;Introduction | 6 | &nbsp;&nbsp;1.1 Preparation of the MD&A |
|  |  | 6  | &nbsp;&nbsp;1.2 The environment in which we operate |
|  |  | 8 | &nbsp;&nbsp;1.3 Consolidated highlights |
| 2. | &nbsp;&nbsp;&nbsp;&nbsp;Core business and strategy | 12 |  |
| 3. | &nbsp;&nbsp;&nbsp;&nbsp;Corporate priorities for 2025 | 12 |  |
| 4. | &nbsp;&nbsp;&nbsp;&nbsp;Capabilities | 14  | &nbsp;&nbsp;4.1 Principal markets addressed and competition |
|  |  | 14 | &nbsp;&nbsp;4.2 Operational resources |
|  |  | 15 | &nbsp;&nbsp;4.3 Liquidity and capital resources |
|  |  | 16 | &nbsp;&nbsp;4.4 Changes in internal control over financial reporting and limitations on scope of design |
| 5. | &nbsp;&nbsp;&nbsp;&nbsp;Discussion of operations | 17 | &nbsp;&nbsp;5.1 General |
|  |  | 18 | &nbsp;&nbsp;5.2 Summary of consolidated quarterly results and trends |
|  |  | 19 | &nbsp;&nbsp;5.3 Consolidated operations |
|  |  | 24 | &nbsp;&nbsp;5.4 TELUS technology solutions segment |
|  |  | 29 | &nbsp;&nbsp;5.5 TELUS health segment |
|  |  | 32 | &nbsp;&nbsp;5.6 TELUS digital experience segment |
| 6. | &nbsp;&nbsp;&nbsp;&nbsp;Changes in financial position | 36 |  |
| 7. | &nbsp;&nbsp;&nbsp;&nbsp;Liquidity and capital resources | 37 | &nbsp;&nbsp;7.1 Overview |
|  |  | 38 | &nbsp;&nbsp;7.2 Cash provided by operating activities |
|  |  | 39 | &nbsp;&nbsp;7.3 Cash used by investing activities |
|  |  | 41  | &nbsp;&nbsp;7.4 Cash used by financing activities |
|  |  | 42  | &nbsp;&nbsp;7.5 Liquidity and capital resource measures |
|  |  | 44 | &nbsp;&nbsp;7.6 Credit facilities |
|  |  | 45 | &nbsp;&nbsp;7.7 Short-term borrowings |
|  |  | 45 | &nbsp;&nbsp;7.8 Credit ratings |
|  |  | 45 | &nbsp;&nbsp;7.9 Financial instruments, commitments and contingent liabilities |
|  |  | 46 | &nbsp;&nbsp;7.10 Outstanding share information |
|  |  | 46 | &nbsp;&nbsp;7.11 Transactions between related parties |
| 8. | &nbsp;&nbsp;&nbsp;&nbsp;Accounting matters | 46 | &nbsp;&nbsp;8.1 Critical accounting estimates and judgments |
|  |  | 47 | &nbsp;&nbsp;8.2 Accounting policy developments |
| 9. | &nbsp;&nbsp;&nbsp;Update to general trends, outlook and assumptions, and regulatory developments and proceedings | 47 | &nbsp;&nbsp;9.1 Communications industry regulatory developments and proceedings |
| 10. | &nbsp;&nbsp;&nbsp;&nbsp;Risks and risk management | 52 |  |
| 11. | &nbsp;&nbsp;&nbsp;&nbsp;Definitions and reconciliations | 52  | &nbsp;&nbsp;11.1 Non-GAAP and other specified financial measures |
|  |  | 59 | &nbsp;&nbsp;11.2 Operating indicators |

---

© 2025 TELUS Corporation. All rights reserved. The symbols™ and <sup>®</sup> indicate trademarks owned by TELUS Corporation or its subsidiaries used under license. All other trademarks are the property of their respective owners.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**1.** Introduction

The forward-looking statements in this section, including, for example, estimates regarding economic growth, inflation, unemployment, housing starts and immigration, are qualified by the *Caution regarding forward-looking statements* at the beginning of this Management's discussion and analysis (MD&A).

**1.1** Preparation of the MD&A

The following sections are a discussion of our consolidated financial position and financial performance for the three-month period and nine-month periods ended September 30, 2025, and should be read together with our September 30, 2025 condensed interim consolidated statements of income and other comprehensive income, statements of financial position, statements of changes in owners' equity and statements of cash flows, and the related notes (collectively referred to as the interim consolidated financial statements)*.* The generally accepted accounting principles (GAAP) that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards), and Canadian GAAP. In this MD&A, the term IFRS Accounting Standards refers to these standards. In our discussion, we also use certain non-GAAP and other specified financial measures to evaluate our performance, monitor compliance with debt covenants and manage our capital structure. These measures are defined, qualified and reconciled with their nearest GAAP measures, as required by National Instrument 52-112, *Non-GAAP and Other Financial Measures Disclosure*, in *Section 11.1*. All currency amounts are stated in Canadian dollars, unless otherwise specified.

Additional information relating to the Company, including our Annual Information Form and other filings with securities commissions or similar regulatory authorities in Canada, is available on SEDAR+ (**sedarplus.com**). Our information filed with or furnished to the Securities and Exchange Commission in the United States, including Form 40-F, is available on EDGAR (**sec.gov**).

Our disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported to senior management on a timely basis, so that appropriate decisions can be made regarding public disclosure. This MD&A and the interim consolidated financial statements were reviewed by our Audit Committee and authorized by our Board of Directors (Board) for issuance on November 7, 2025.

In this MD&A, unless otherwise indicated, results for the third quarter of 2025 (three-month period ended September 30, 2025) and the nine-month period ended September 30, 2025 are compared with results for the third quarter of 2024 (three-month period ended September 30, 2024) and the nine-month period ended September 30, 2024.

Effective January 1, 2025, our segmented reporting structure was retrospectively restated. This change arose from the modification of our internal and external reporting processes, systems and internal controls from the acquisition, and ongoing integration, of LifeWorks<sup>®</sup> and the evolution of information regularly reported to our chief operating decision maker for purposes of allocating capital resources and assessing performance. The currently reported TELUS health segment results were previously included with the TELUS technology solutions segment results. Comparative TELUS technology solutions segment results have been restated to conform with the reportable segments presented in the current period. See *Section 5.1 General* for additional details.

**1.2 The environment in which we operate**

The success of our business and the challenges we face can best be understood with reference to the environment in which we operate, including broader economic conditions that affect both TELUS and our customers, and the competitive nature of our business operations.

**TELUS technology solutions segment (TTech)**

Across TTech, we are leveraging our leading technology and our social purpose to enable remarkable human outcomes. Our long-standing commitment to put our customers first fuels every aspect of our business across the full range of our differentiated solutions spanning mobile, data, IP, voice, TV, entertainment, video, and security and automation, delivered over our reliable, expansive, award-winning networks. Leveraging data analytics and artificial intelligence (AI) to enhance our services has strengthened our leading position in customer service excellence and loyalty, reducing already-low rates of customer churn and demonstrating our commitment to provide Canadians with access to superior technology that connects all of us to the people, resources and information that matter most. We are also implementing innovative technology solutions to help feed the world, putting data to work for customers in the agriculture, food and consumer goods sectors. This efficient and effective collaboration helps ensure the quality and safety of food and consumer goods.

**TELUS health segment (TELUS Health)**

TELUS Health operates at the forefront of modern healthcare innovation, where technology is fundamentally transforming how people access and receive health services. We stand at the critical intersection of digital innovation and human care, bridging traditional healthcare settings with virtual well-being platforms to support the mental, physical and financial health of organizations and individuals all over the world. As a global technology leader, we connect and empower all participants in the health ecosystem from healthcare providers, payors and employers, to patients and individuals. We achieve our objective of enabling people to live healthier lives by making health information and support services easily accessible through advanced technology and data-driven insights. Our comprehensive approach integrates primary and preventive care with ongoing wellness support. By revolutionizing healthcare delivery and enhancing well-being, we are improving health outcomes and helping consumers, patients, healthcare professionals, employers and employees thrive in today's digital world.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**TELUS digital experience segment (TELUS Digital)**

We are dedicated to crafting unique and enduring experiences for customers and employees, and creating future-focused digital transformations that deliver value for our clients. Our portfolio of end-to-end, integrated capabilities is structured around four key service lines: customer experience management (CXM), digital solutions, AI and data solutions, and trust, safety and security. In CXM, the market is experiencing significant transformation driven by the adoption of digital solutions, including the use of generative AI (GenAI). In digital solutions, we address the ongoing digital transformation needs of organizations seeking future-oriented strategies and next-generation technology integration. For example, through Fuel iX<sup>TM</sup>, we enable organizations to manage, monitor, and maintain GenAI across the enterprise, offering both standardized capabilities and custom application development tools for creating tailored enterprise solutions. The AI and data solutions market continues to expand, driven by investments in foundational model development and growing industry demand for AI-powered solutions. TELUS Digital supports this expansion by providing services in more than 50 languages across multiple areas of expertise. The trust, safety and security market is seeing growing demand due to the exponential amount of user-generated content, and increasingly GenAI-created content, requiring sophisticated digital risk management solutions. The competitive landscape is global, fragmented, and rapidly evolving.

**Economic estimates**

Our estimates regarding our economic and operational environment, including economic growth, inflation, unemployment, housing starts and immigration, serve as important inputs for the assumptions on which our targets are based. The extent of the impact these estimates will have on us, and the timing of that impact, will depend upon the actual future outcomes in specific sectors of the Canadian economy.

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Economic growth** | **Economic growth** | **Inflation** | **Inflation** | **Unemployment** | **Unemployment** | **Unemployment** | **Housing starts** | **Housing starts** | **Housing starts** | **Immigration** | **Immigration** | **Immigration** |
|  | (percentage points) | (percentage points) | (percentage points) | (percentage points) | (percentage points) | (percentage points) | (percentage points) | (thousands of units) | (thousands of units) | (thousands of units) | (thousands) | (thousands) | (thousands) |
|  | Estimated<br> gross domestic<br> product (GDP)<br> growth rates | Our<br> estimated<br> GDP growth<br> rates<sup>1</sup> | Estimated<br> inflation<br> rates | Our<br> estimated<br> annual<br> inflation<br> rates<sup>1</sup> | Unemployment rates | Unemployment rates | Our estimated<br> annual<br> unemployment<br> rates<sup>1</sup> | Seasonally adjusted <br> annual rate of housing<br> starts<sup>2</sup> | Seasonally adjusted <br> annual rate of housing<br> starts<sup>2</sup> | Our estimated<br> annual rate of <br> housing starts on<br> an unadjusted<br> basis<sup>1</sup> | Overall planned permanent<br> resident and temporary<br> resident admissions<sup>3</sup> | Overall planned permanent<br> resident and temporary<br> resident admissions<sup>3</sup> | Overall planned permanent<br> resident and temporary<br> resident admissions<sup>3</sup> |
|  | | | | | For the month of | For the month of | | For the month of | For the month of | | | | |
|  | **2025** | **2025** | **2025** | **2025** | **Sept.**<br>**2025<sup>4</sup>** | Sept.<br>2024<sup>4</sup> | **2025** | **Sept.**<br>**2025** | Sept.<br>2024 | **2025** | **2025** | **2026** | **2027** |
| Canada | **1.2** **<sup>5</sup>** | **1.4** | **2.0** **<sup>5</sup>** | **2.0** | **7.1** | 6.5 | **6.9** | **279** | 224 | **257** | **1069** | **897** | **909** |
| B.C. | **1.5** **<sup>6</sup>** | **1.3** | **2.3** **<sup>6</sup>** | **2.1** | **6.4** | 6.0 | **6.3** | **37** | 44 | **44** | n/a | n/a | n/a |
| Alberta | **2.0** **<sup>6</sup>** | **2.0** | **2.2** **<sup>6</sup>** | **2.1** | **7.8** | 7.5 | **7.3** | **55** | 47 | **56** | n/a | n/a | n/a |
| Ontario | **0.8** **<sup>6</sup>** | **0.9** | **2.3** **<sup>6</sup>** | **2.0** | **7.9** | 6.9 | **7.9** | **90** | 65 | **64** | n/a | n/a | n/a |
| Quebec | **1.1** **<sup>6</sup>** | **0.9** | **2.1** **<sup>6</sup>** | **2.0** | **5.7** | 5.5 | **6.1** | **60** | 40 | **58** | n/a | n/a | n/a |

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| | |
|:---|:---|
| n/a – not applicable | n/a – not applicable |
| 1 | Assumptions are as of October 1, 2025 and are based on a composite of estimates from Canadian banks and other sources. |
| 2 | Source: Statistics Canada. Table 34-10-0158-01 Canada Mortgage and Housing Corporation, housing starts, all areas, Canada and provinces, seasonally adjusted at annual rates, monthly (x 1,000). |
| 3 | Source: canada.ca/en/immigration-refugees-citizenship/news/notices/supplementary-immigration-levels-2025-2027.html. |
| 4 | Source: Statistics Canada Labour Force Survey, September 2025 and September 2024, respectively. |
| 5 | Source: Bank of Canada Monetary Policy Report, October 2025. |
| 6 | Source: British Columbia Ministry of Finance, First Quarterly Report, September 2025; Alberta Ministry of Treasury Board and Finance, 2025 – 26 First Quarter Fiscal Update and Economic Statement, August 2025; Ontario Ministry of Finance, 2025 Ontario Budget: A Plan to Protect Ontario, May 15, 2025; and Ministère des Finances du Québec, Budget 2025 – 2026, March 25, 2025, respectively. |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**1.3** Consolidated highlights

**Tender offers**

On June 20, 2025, we announced the commencement of separate offers to purchase certain outstanding senior notes for cash, up to $600 million for our Canadian-issued notes and up to US$750 million for our U.S.-issued notes, in each case excluding unpaid interest. On June 30, 2025, we announced an amendment to increase our Canadian tender offer from $600 million to an amount sufficient to accept all tendered 3.95% Senior Notes, Series CAB due 2050 and 4.10% Senior Notes, Series CAE due 2051 in full, and approximately $267 million principal amount of 4.40% Senior Notes, Series CU due 2046. Additionally, we accepted all tendered amounts of 4.60% US$750 million Senior Notes due 2048 and 4.30% US$500 million Senior Notes due 2049 from our previously announced U.S. tender offer. In July, 2025, we acquired senior notes with a principal face amount of $1.8 billion as described in *Note 26(b)* of the interim consolidated financial statements. The gain on repurchasing these notes, net of a $17 million loss on the corresponding foreign exchange derivatives (cross currency interest rate swap agreements) terminated, was $222 million, excluding income taxes.

**Terrion**

On August 1, 2025, we announced a partnership with Caisse de dépôt et placement du Québec (La Caisse) under which La Caisse would acquire a 49.9% interest in Terrion, our newly formed dedicated wireless tower infrastructure operator enabling wholesale access and co-location, for approximately $1.26 billion. On September 11, 2025, the transaction with La Caisse closed. Terrion holds passive macro wireless infrastructure assets, commonly known as cell towers. TELUS retains full ownership and control of all active network components and security systems, and consolidates Terrion's results into its financial statements.

**Definitive arrangement to acquire full ownership of TELUS Digital**

On September 2, 2025, TELUS and TELUS Digital announced that they had entered into a definitive agreement for TELUS to acquire all of the outstanding multiple voting shares (MVS) and subordinate voting shares (SVS) of TELUS Digital not already owned by TELUS for US$4.50 per share (the Arrangement), reflecting aggregate consideration of US$539 million.

A special committee of the board of directors of TELUS Digital, comprised solely of independent directors, determined the Arrangement was in the best interests of TELUS Digital and fair to minority shareholders. The price of US$4.50 per share represented a 52.0% premium over TELUS Digital's unaffected closing price of US$2.96 per SVS on the New York Stock Exchange on June 11, 2025, the last trading day prior to TELUS' announcement on June 12, 2025 of the indication of interest to acquire full ownership of TELUS Digital.

On October 27, 2025, a special meeting of shareholders concluded. Holders of MVS and SVS who voted as a single class were 99.99% in favour of the Arrangement. Holders of SVS excluding shares required to be excluded pursuant to Multilateral Instrument 61-101 were 99.78% in favour of the Arrangement.

On October 31, 2025, the Arrangement was completed and TELUS now owns 100% of TELUS Digital. Closer operational proximity between TELUS and TELUS Digital will enable enhanced AI capabilities and software-as-a-service (SaaS) transformation across all lines of our business, including telecommunications, TELUS Health and TELUS Agriculture & Consumer Goods, driving positive outcomes for the customers we serve. The Arrangement will accelerate TELUS Digital's global growth in products and services to other customers around the world in key verticals, including financial technology, gaming and technology, communications and media, and health, which will deliver significant value for TELUS' shareholders. The Arrangement will also enhance TELUS Digital's ability to continue to be a key enabler to TELUS' growth strategy and operational efficiency, as well as AI and digitization strategy, while delivering innovative solutions and investing in new capabilities in a highly competitive and increasingly concentrated market environment. The Arrangement will also offer continuity and stability for TELUS Digital's customers, suppliers, partners and employees in the long term, while enhancing TELUS' growth trajectory of products and services to other customers around the world, creating significant value for TELUS' shareholders.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Consolidated highlights**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ millions, except footnotes and unless noted otherwise) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| **Consolidated statements of income** |  |  |  |  |  |  |
| Operating revenues and other income | **5106** | 5099 |  | **15245** | 15005 | 2 |
| Operating income | **742** | 788 | (6) | **1669** | 2045 | (18) |
| Income before income taxes | **588** | 309 | 90 | **798** | 790 | 1 |
| Net income | **431** | 257 | 68 | **487** | 618 | (21) |
| Net income attributable to Common Shares | **493** | 280 | 76 | **821** | 635 | 29 |
| Adjusted Net income<sup>1</sup> | **370** | 413 | (10) | **1100** | 1169 | (6) |
| Earnings per share (EPS) ($) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic EPS | **0.32** | 0.19 | 68 | **0.54** | 0.43 | 26 |
| &nbsp;&nbsp;&nbsp;Adjusted basic EPS<sup>1</sup> | **0.24** | 0.28 | (14) | **0.72** | 0.79 | (9) |
| &nbsp;&nbsp;&nbsp;Diluted EPS | **0.32** | 0.19 | 68 | **0.54** | 0.43 | 26 |
| Dividends declared per Common Share ($) | **0.4163** | 0.3891 | 7 | **1.2349** | 1.1543 | 7 |
| Basic weighted-average Common Shares outstanding (millions) | **1535** | 1492 | 3 | **1525** | 1483 | 3 |
| **Consolidated statements of cash flows** |  |  |  |  |  |  |
| Cash provided by operating activities | **1493** | 1432 | 4 | **3736** | 3770 | (1) |
| Cash used by investing activities | **(660)** | (782) | (16) | **(2355)** | (3029) | (22) |
| &nbsp;&nbsp;&nbsp;Acquisitions | **(3)** | (91) | (97) | **(464)** | (258) | 80 |
| &nbsp;&nbsp;&nbsp;Capital expenditures<sup>2</sup> | **(652)** | (668) | (2) | **(1917)** | (2084) | (8) |
| Cash used by financing activities | **(2688)** | (763) | n/m | **(423)** | (791) | (47) |
| **Other highlights** |  |  |  |  |  |  |
| Telecom subscriber connections<sup>3</sup> (thousands) |  |  |  | **20783** | 19847 | 5 |
| Healthcare lives covered<sup>4</sup> (millions) |  |  |  | **160.6** | 76.0 | n/m |
| Earnings before interest, income taxes, depreciation and amortization<sup>1</sup> (EBITDA) | **1753** | 1756 |  | **5176** | 5070 | 2 |
| EBITDA margin<sup>1</sup> (%) | **34.3** | 34.4 | (0.1) | **34.0** | 33.8 | 0.2 |
| Restructuring and other costs | **109** | 86 | 27 | **339** | 425 | (20) |
| Adjusted EBITDA<sup>1</sup> | **1862** | 1842 | 1 | **5515** | 5495 |  |
| Adjusted EBITDA margin<sup>1</sup> (%) | **36.5** | 36.1 | 0.4 | **36.2** | 36.6 | (0.4) |
| Free cash flow<sup>1</sup> | **611** | 568 | 8 | **1634** | 1448 | 13 |
| Net debt to EBITDA – excluding restructuring and other costs<sup>1</sup> (times) |  |  |  | **3.5** | 3.8 | (0.3) |

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| | |
|:---|:---|
| Notations used in MD&A: n/m – not meaningful; pts. – percentage points. | Notations used in MD&A: n/m – not meaningful; pts. – percentage points. |
| 1 | These are non-GAAP and other specified financial measures. See *Section 11.1 Non-GAAP and other specified financial measures.* |
| 2 | Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for, and consequently differ from Cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated financial statements. 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 subscribers, and security and automation subscribers, measured at the end of the respective periods based on information in billing and other source systems. Effective January 1, 2025, we adjusted our mobile phone subscriber base to remove 30,000 subscribers on a prospective basis, following an in-depth review of customer accounts. Effective January 1, 2025, we adjusted our internet subscriber base to remove 66,000 subscribers on a prospective basis, due to a review of our subscriber base. |
| 4 | During the second quarter of 2025, we added 79.3 million healthcare lives covered as a result of the Workplace Options<sup>®</sup> acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly. |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Operating highlights**

· **Consolidated Operating revenues and other income** increased by $7 million in the third quarter of 2025
 and $240 million in the first nine months of 2025.

Service revenues increased by $97 million in the third quarter of 2025, reflecting: (i) growth in health services, reflecting business acquisitions and growth in payor and provider solutions; (ii) mobile, residential internet, and security and automation subscriber growth; (iii) higher external revenues in TELUS Digital; and (iv) higher residential internet revenue per customer. These factors were partially offset by: (i) lower mobile phone ARPU; (ii) lower business-to-business (B2B) data services revenue; (iii) lower agriculture and consumer goods services revenues attributable to the divestiture of non-core assets; and (iv) declines in fixed legacy voice and TV services revenues. Service revenues increased by $360 million in the first nine months of 2025, due to the same factors as the third quarter, with the exception of agriculture and consumer goods services revenues which increased during the nine-month period.

Equipment revenues decreased by $72 million in the third quarter of 2025 and $52 million in the first nine months of 2025. These declines were primarily driven by lower mobile equipment revenues due to reductions in contracted volumes with a greater emphasis on higher-value loading and intense competitive price discounting, partially offset by the impact of higher-value smartphones in the sales mix.

Other income decreased by $18 million in the third quarter of 2025, largely due to lower gains on real estate projects. Other income decreased by $68 million in the first nine months of 2025, primarily due to lower net reversals of provisions related to business combinations and lower gains on real estate projects. This was partially offset by non-recurring lease and other sublease revenue and higher net gains from the divestiture of non-core assets as planned.

For additional details on Operating revenues and other income, see *Section 5.4 TELUS technology solutions segment*, *Section 5.5 TELUS health segment* and *Section 5.6 TELUS digital experience segment*.

· **Operating income** decreased by $46 million in the third quarter of 2025 and $376 million in the
 first nine months of 2025. (See *Section 5.3 Consolidated operations* for additional
 details.)

EBITDA decreased by $3 million in the third quarter of 2025 and increased by $106 million in the first nine months of 2025. EBITDA reflected net changes in restructuring and other costs during the three-month and nine-month periods. Restructuring and other costs decreased by $86 million in the first nine months of 2025, related to prior year investments in cost efficiency and effectiveness programs, including real estate rationalization.

Consolidated Adjusted EBITDA, which excludes restructuring and other costs, increased by $20 million in both the third quarter and first nine months of 2025. These improvements reflect varied results across our reportable segments. TTech saw Adjusted EBITDA growth of 2% in the third quarter of 2025. This growth was driven by: (i) cost reduction efforts, including workforce reductions, and increased adoption of TELUS Digital's solutions across TTech operations, resulting in competitive benefits given the lower cost structure in TELUS Digital, as well as reductions in marketing and administrative costs; (ii) mobile, residential internet, and security and automation subscriber growth; and (iii) higher residential internet revenue per customer. These factors were partially offset by: (i) lower mobile phone ARPU; (ii) lower mobile equipment margins; (iii) lower Other income; (iv) lower agriculture and consumer goods margins from the divestiture of non-core assets; (v) declining fixed legacy margins; and (vi) increased costs of subscription-based licences and cloud usage. TTech Adjusted EBITDA increased by 3% in the first nine months of 2025 due to the same factors as the third quarter, with the exception of increased Other income, partially offset by higher bad debt expense. TELUS Health experienced a 24% increase in Adjusted EBITDA in the third quarter of 2025 and a 27% increase in the first nine months of 2025, driven by revenue growth and cost reduction efforts, including lower net labour costs and continued realization of acquisition integration synergies. TELUS Digital Adjusted EBITDA decreased by 18% in the third quarter of 2025 primarily due to an increase in salaries and benefits and goods and services purchased, partially offset by lower share-based compensation expense. TELUS Digital Adjusted EBITDA decreased by 29% in the first nine months of 2025, largely due to the non-recurring net reversals of provisions related to business combinations in the comparative period, in addition to the same factors as the third quarter. (See *Section 5.3 Consolidated operations* for additional details.)

· **Income before income taxes** increased by $279 million in the third quarter of 2025 and $8 million
 in the first nine months of 2025. This reflects lower Financing costs and declines in Operating
 income in both periods. The decrease in Financing costs was primarily driven by a gain on
 purchase of long-term debt and the impact of a change in accounting policy which prospectively
 applies hedge accounting to the unrealized changes in virtual power purchase agreements (VPPA)
 forward element. (See *Financing costs* in *Section 5.3*.)

· **Income tax** expense increased by $105 million in the third quarter of 2025. The effective tax
 rate increased from 16.8% to 26.7% in the third quarter of 2025, largely as a result of adjustments
 recognized in the current period for income taxes of prior periods and an increase of non-deductible
 amounts. Income tax expense increased by $139 million in the first nine months of 2025. The
 effective tax rate increased from 21.8% to 39.0% in the first nine months of 2025, primarily
 attributable to an impairment of goodwill.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

· **Net income attributable to Common Shares** increased by $213 million in the third quarter
 of 2025 and $186 million in the first nine months of 2025, reflecting the after-tax impacts
 of lower Financing costs and declines in Operating income.

Adjusted Net income excludes the effects of restructuring and other costs, income tax-related adjustments, real estate rationalization-related restructuring impairments, gain on purchase of long-term debt, long-term debt prepayment premium, impairment of goodwill and VPPAs when accounted for as held for trading (see *Section 5.3*). Adjusted Net income decreased by $43 million in the third quarter of 2025 and $69 million in the first nine months of 2025.

· **Basic EPS** increased by $0.13 in the third quarter of 2025 and $0.11 in the first nine months
 of 2025, reflecting the after-tax impacts of lower Financing costs and declines in Operating
 income, as well as the effect of a higher number of Common Shares outstanding.

Adjusted basic EPS excludes the effects of restructuring and other costs, income tax-related adjustments, real estate rationalization-related restructuring impairments, gain on purchase of long-term debt, long-term debt prepayment premium, impairment of goodwill and VPPAs when accounted for as held for trading (see *Section 5.3*). Adjusted basic EPS decreased by $0.04 in the third quarter of 2025 and $0.07 in the first nine months of 2025.

· **Dividends declared per Common Share** were $0.4163 in the third quarter of 2025, an increase of 7% from one year earlier. On November 6,
2025, the Board declared a fourth quarter dividend of $0.4184 per share on our issued and outstanding Common Shares, payable on January
2, 2026, to shareholders of record at the close of business on December 11, 2025. The fourth quarter dividend increased by $0.0161 per
share or 4% from the dividend of $0.4023 per share declared one year earlier.

· During
 the 12-month period ended on September 30, 2025, our total **telecom subscriber connections** increased by 936,000 or 5%. This reflected growth of 2% in mobile phone subscribers, 18%
 in connected device subscribers, 5% in internet subscribers excluding the first quarter 2025
 internet subscriber base adjustment, 5% in TV subscribers, and 4% in security and automation
 subscribers, partially offset by a decline of 5% in residential voice subscribers. (See *Section 5.4 TELUS technology solutions segment* for additional details.)

**Liquidity and capital resource highlights**

· **Cash provided by operating activities** increased by $61 million in the third quarter of 2025,
 largely attributable to other working capital changes. Cash provided by operating activities
 decreased by $34 million in the first nine months of 2025, primarily driven by increased
 income taxes paid and increased interest paid, partially offset by other working capital
 changes. (See *Section 7.2 Cash provided by operating activities*.)

· **Cash used by investing activities** decreased by $122 million in the third quarter of 2025, primarily attributable to lower cash
payments for business acquisitions and lower cash payments for capital assets. Cash used by investing activities decreased $674 million
in the first nine months of 2025, largely attributable to the impact of cash payments for 3800 MHz spectrum licences in the comparative
period and lower cash payments for capital assets, partially offset by greater cash payments for business acquisitions, including Workplace
Options. (See *Section 7.3 Cash used by investing activities*.)

· **Cash used by financing activities** increased by $1.9 billion in the third quarter of 2025, primarily reflecting greater redemptions
and repayments of long-term debt, including the repayment of the TELUS International (Cda) Inc. credit facility, partially offset by cash
received from equity issued by our Terrion subsidiary to a non-controlling interest. Cash used by financing activities decreased by $368
million in the first nine months of 2025, largely attributable to cash received from equity issued by our Terrion subsidiary to a non-controlling
interest. (See *Section 7.4 Cash used by financing activities*.)

· **Net debt to EBITDA – excluding restructuring and other costs** ratio was 3.5 times at
 September 30, 2025, down from 3.8 times at September 30, 2024. The decrease was
 largely due to the effect of the decrease in net debt levels, primarily due to the junior
 subordinated notes equity credit and the equity issued by our Terrion subsidiary to a non-controlling
 interest (see *Note 28(b)* of the interim consolidated financial statements), partially
 offset by spectrum acquisitions and business acquisitions. TTech and TELUS Health EBITDA
 growth decreased the ratio by approximately 0.1; TELUS Digital EBITDA decline increased the
 ratio by approximately 0.1; net debt levels were already elevated in the current and comparative
 periods due to our spectrum acquisitions and business acquisitions. As at September 30, 2025,
 the acquisition of spectrum licences increased the ratio by approximately 0.6 and business
 combinations increased the ratio by approximately 0.1, while the junior subordinated notes
 equity credit decreased the ratio by approximately 0.3 and equity issued by our Terrion subsidiary
 to a non-controlling interest decreased the ratio by approximately 0.2. (See *Section 4.3 Liquidity and capital resources* and *Section 7.5 Liquidity and capital resource measures.*)

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

· **Free cash flow** increased by $43 million in the third quarter of 2025, primarily reflecting
 the timing related to device subsidy repayments and associated revenue recognition and our
 TELUS Easy Payment <sup>®</sup> device financing
 program. Free cash flow increased by $186 million in the first nine months of 2025, largely
 driven by lower capital expenditures and higher EBITDA, as well as the same factor as the
 third quarter, partially offset by increased income taxes paid and increased interest paid.
 Our definition of free cash flow, for which there is no industry alignment, is unaffected
 by accounting standards that do not impact cash.

**2.** Core
 business and strategy

Our core business and our strategic imperatives were described in our 2024 annual MD&A.

**3.** Corporate
 priorities for 2025

Our annual corporate priorities are used to advance our long-term strategic imperatives and address near-term opportunities and challenges. The following table provides a discussion of activities and initiatives that relate to our 2025 corporate priorities.

**Elevating our customers, communities and social purpose by honouring our brand promise, Let's make the future friendly**™

· Our Community
 Boards entrust local leaders to make recommendations on the allocation of grants in their communities. These grants support registered
 charities that offer health, education or technology programs to help youth.

· During the
 third quarter, we launched our Greater London Community Board with an inaugural £1 million in donation support through 2027
 for charitable organizations delivering impactful youth programs.

· With this
 newest launch in London, England, we now have 21 TELUS Community Boards – 13 in Canada and eight internationally.

· Working in
 close partnership with the TELUS Community Boards in Canada, the TELUS Friendly Future Foundation<sup>®</sup> (the Foundation)
 distributes grants to charities that promote education, health and well-being for youth across the country. In addition, through
 the TELUS Student Bursary program, the Foundation provides bursaries for post-secondary students who face financial barriers and
 are committed to making a difference in their communities. During the first nine months of 2025, the Foundation provided support
 to over 1.4 million youth by granting $7.1 million in cash donations to more than 500 Canadian registered charities, community partners
 and projects, as well as bursaries. Since its inception in 2018, the Foundation has directed $64.6 million in cash donations to our
 communities and in bursary grants, helping 17.9 million youth reach their full potential. For more information about the TELUS Student
 Bursary program, please visit **friendlyfuture.com/bursary**.

· In July 2025,

 commitment to nationwide educational access, creating more pathways for up to 500 young changemakers from the Black community.

· Since 2005,
 our 21 TELUS Community Boards and the Foundation have supported 35.9 million youth in need across Canada and around the world, by
 granting more than $143 million in cash donations to 11,200 charitable initiatives.

· Throughout
 the first nine months of 2025, we continued to leverage our TELUS Connecting for Good<sup>®</sup> programs to support marginalized
 individuals by enhancing their access to both technology and healthcare, as well as our TELUS Wise<sup>®</sup> program to improve
 digital literacy and online safety knowledge. Since the launch of these programs, they have provided support for over 1.52 million
 Canadians.

· During the
 first nine months of 2025, we welcomed 7,100 new households to our Internet for Good<sup>®</sup> program. Since we launched the
 program in 2016, we have connected 70,600 households, making low-cost high-speed internet available to 221,000 low-income seniors
 and members of low-income families, persons with disabilities, government-assisted refugees and youth leaving foster care.

· Our Mobility
 for Good<sup>®</sup> program offers free or low-cost smartphones and mobility plans to youth aging out of foster care, low-income
 seniors and families, across Canada, as well as government-assisted refugees and Indigenous women at risk of, or experiencing violence.
 During the first nine months of 2025, we added 7,200 marginalized individuals to the program. Since we launched Mobility for Good
 in 2017, the program has provided support for 69,100 people.

· Through TELUS
 Health for Good<sup>®</sup>, we are removing healthcare barriers for low-income and marginalized Canadians, facilitating more
 than 62,000 patient visits and counselling sessions over the first nine months of 2025. Since the program launched in 2014, our mobile
 health clinics have delivered over 320,000 primary care and outreach visits across 27 Canadian communities. We have also provided
 more than 2,800 free counselling sessions through TELUS Health MyCare<sup>TM</sup> and connected over 1,500 low-income seniors with
 discounted access to TELUS Health Medical Alert personal security devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In July 2025, Victoria
 Cool Aid Society and TELUS Health for Good launched a series of hepatitis C testing events, leveraging the two Cool Aid Mobile Health

 B.C., helping Cool Aid to reach their goal of completing 700 hepatitis C tests in 2025.

· In September 2025, we announced the launch of portable

 access to vital imaging services for Vancouver's Downtown Eastside community.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

&nbsp;&nbsp;&nbsp;&nbsp;· Throughout the first nine
 months of 2025, our Tech for Good program provided access to personalized assessments, recommendations and training on mobile devices,
 computers, laptops and related assistive technology and/or access to discounted mobile plans for 3,700 Canadians living with disabilities,
 enabling them to make improvements in their quality of life and independence. Since its inception in 2017, we have provided support
 for 16,300 individuals in Canada who are living with disabilities, through the program and/or the TELUS Wireless Accessibility Discount.

· During the first nine
 months of 2025, over 88,600 individuals in Canada and around the world participated in TELUS Wise workshops and events to improve
 their digital literacy and online safety knowledge, bringing the total cumulative number of participants to more than 888,700 since
 the program launched in 2013.

· Throughout the first nine months of 2025,
 we continued to grow our global leadership in environmental sustainability. In September 2025, we celebrated a landmark
 environmental milestone of 25 million trees planted on behalf of our customers and partners during National Forest Week, creating
 vital Canadian wildlife habitats across an area 40 times larger than Vancouver's Stanley Park and 100 times larger than Toronto's
 High Park. When fully mature, these 25 million trees will absorb 7.5 million metric tons of CO<sub>2</sub>, equivalent to removing
 1.8 million cars from our roads.

**Leveraging TELUS' world-leading technology and AI innovation to drive superior growth across mobile, home and business services**

· In July 2025, we announced
 an important milestone in our project to deploy a buried submarine cable between Sept-Îles and the Gaspé Peninsula.
 The required permits have been obtained and we have commenced deployment of the submarine cable. This connection will improve the
 reliability of telecommunications services on the North Shore and Lower North Shore, thanks to improved redundancy.

· We participated in the
 United Nations AI for Good Global Summit 2025 in Geneva, Switzerland this July. Over the five-day summit, we contributed to several
 sessions demonstrating our responsible AI development, ethical technology innovation, and inclusive AI upskilling practices. Additionally,
 we hosted an interactive workshop using Fuel iX and wâsikan kisewâtisiwin on how to build ethical AI with intelligence
 from Indigenous Peoples.

· In September 2025, we
 won the OneTrust innovation Award for our pioneering data governance program. This recognition highlights our innovative approach
 to human-centric data and AI governance, demonstrating our commitment to responsible technology practices and risk mitigation.

· In September 2025, together
 with Samsung, we announced that we will deploy Canada's first commercial radio access network intelligent controller (RIC).
 The RIC is a software-based component in open radio access network architecture that uses automation to optimize network performance
 with intelligence applications. It enables operators to flexibly deploy and manage diverse applications for comprehensive monitoring
 and analysis as well as energy-saving operations, helping them optimize networks, manage resources efficiency and elevate service
 quality.

· In September 2025, we opened Canada's first fully

 processing units and Hewlett Packard Enterprise (HPE) computing infrastructure, is now operational and serving customers. This unlocks
 advanced AI capabilities for Canadian businesses, researchers and innovators while ensuring data remains within our national borders
 under Canadian control.

**Scaling our innovative digital capabilities in TELUS Health and TELUS Agriculture & Consumer Goods to build assets of consequence**

*TELUS Health*

---

| | |
|:---|:---|

| *TELUS Agriculture & Consumer Goods* | *TELUS Agriculture & Consumer Goods* |
| · | In July 2025, we announced a 10-year partnership with Welch's, setting new standards for agricultural technology and compliance solutions. This deployment establishes an integrated precision agronomy platform that collects, stores, and analyzes compliance data while optimizing yield, productivity, and quality across their supply chain. The partnership demonstrates the value of linking our Agriculture and Consumer Goods product lines and positions us to offer similar solutions to other global food brands. |

---

**Scaling our innovative digital capabilities in TELUS Digital to build an asset of consequence**

· In July, we opened our
 TELUS Digital Dubai office in the United Arab Emirates. This marks our entry into the Middle East, seeing rising demand for AI-powered
 digital transformation and customer experience innovation in the region and reinforcing our commitment to supporting our clients
 around the world with innovative, AI-fuelled solutions that drive customer engagement and a more efficient enterprise.

· In September, we were
 named as a Leader in the Everest Group's PEAK Matrix for Customer Experience Management (the Americas) for the seventh consecutive
 year. We were one of only five companies positioned as a Leader of the 48 customer experience service providers assessed, on the
 merits of our geographic expansion, digital CXM transformation support, and AI-driven innovation in agent enablement and agentic
 AI solutions.

· On October 1, TELUS Digital launched Fuel iX Fortify,
 a solution that helps enterprises test generative AI systems at scale and identify vulnerabilities by replicating real-world attack
 scenarios through advanced adversarial simulation techniques.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**4.** Capabilities

The forward-looking statements in this section, including statements regarding our dividend growth program and our financial objectives in *Section 4.3*, are qualified by the *Caution regarding forward-looking statements* at the beginning of this MD&A.

**4.1** Principal markets addressed and competition

For a discussion of our principal markets and an overview of competition, refer to *Section 4.1* in our 2024 annual MD&A.

**4.2** Operational resources

**TELUS technology solutions (TTech)**

From mid-2013 through September 30, 2025, we invested approximately $8.2 billion to acquire wireless spectrum licences in spectrum auctions and other private transactions. These investments have more than doubled our national spectrum holdings in support of our top priority to put customers first.

Mobile data consumption has been increasing rapidly and is expected to continue growing at a fast rate as the industry continues to transition to 5G. We have responded by investing in the coverage, capacity, performance and reliability of our network to ensure we are able to support additional data consumption and growth in our mobile subscriber base in a geographically diverse country, while maintaining the high quality of our network. This includes investments in wireless small cells connected directly to our TELUS PureFibre<sup>®</sup> technology to improve coverage and capacity utilized in our 5G network.

As at September 30, 2025, our 4G LTE technology covered 99% of Canada's population, consistent with September 30, 2024. We have continued to invest in the roll-out of our LTE advanced technology, which covered approximately 96% of Canada's population at September 30, 2025, up from over 95% one year earlier. Furthermore, our 5G network covered approximately 89% of Canada's population at September 30, 2025, up from approximately 87% at September 30, 2024.

We are continuing to invest in urban and rural communities across our incumbent local exchange carrier (ILEC) communities in B.C., Alberta and Eastern Quebec, as well as non-ILEC communities in Ontario and parts of Quebec, with commitments to deliver broadband technology capabilities to as many Canadians in these communities as possible, including expanding our PureFibre footprint by connecting more homes and businesses directly to PureFibre. In addition, we have increased broadband internet speeds, expanded our IP TV video-on-demand library and high-definition content, including 4K TV and 4K HDR capabilities, and enhanced the marketing of data products and bundles. This has resulted in improved churn rates. Our PureFibre technology is also an essential component of our wireless access technology and has enabled our 5G deployment. Our home and business security and automation solutions integrate safety and security monitoring with smart devices.

As at September 30, 2025, over 3.6 million households and businesses in B.C., Alberta and Eastern Quebec were connected to fibre-optic cable. This is up from more than 3.3 million households and businesses in the third quarter of 2024.

Our agriculture and consumer goods solutions include agronomy record-keeping and recommendations, rebate management services, supplier management, order management, index labelling, compliance management, animal agriculture solutions, food traceability and quality assurance, data management solutions and software solutions for trade promotion management, optimization and analytics (TPx), retail execution, supply chain solutions and analytics capabilities.

**TELUS health (TELUS Health)**

TELUS Health leverages the power of technology and passion of our team members to support the mental, physical and financial health and well-being of organizations and individuals around the globe. Our core areas of focus in the global healthcare marketplace are: employers (small, medium and large enterprise), payors (insurers, third-party payors and third-party administrators, and public sector), providers (clinics and physicians, pharmacists and allied health professionals) and consumer solutions. We offer a variety of integrated health and well-being products, solutions and services including: employee and family assistance programs (EFAP), cognitive behavioural therapy (CBT), absence and disability management, executive, preventive and occupational health services, corporate reward, recognition and perks programs, and training programs; pension and benefits administration solutions, and retirement and financial consulting; virtual care (encompassing comprehensive primary care, mental health support, wellness offerings, and pet care); virtual pharmacy and pharmacy management systems, including medication management services; remote patient monitoring; personal emergency response services; personal health records and electronic medical records (EMR) management; claims management solutions; and curation of health content.

**TELUS digital experience (TELUS Digital)**

TELUS Digital provides digitally enabled customer experience solutions and creates future-focused digital transformations that can withstand disruption and deliver value for our clients. Our end-to-end capabilities address multiple client needs, including digital customer experience management and the digital transformation of IT and customer experience systems, as well as new and emerging client needs, such as digital trust, safety and security, AI data services and generative AI solutions in customer experience.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

Over the years, we have grown through organic investments and acquisitions to serve our global clients, including the expansion of our delivery model in multiple regions, including Asia-Pacific, Europe, North America and Central America, and developed a broader set of digital capabilities.

Our delivery locations are strategically selected based on factors such as: access to diverse, skilled talent; proximity to clients; and ability to deliver our services over multiple time zones and in multiple languages. They are connected through a robust infrastructure backed by cloud technologies, enabling globally distributed and virtualized teams.

**4.3 Liquidity and capital resources**

**Capital structure financial policies**

Our objective when managing financial capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at acceptable risk. In our definition of financial capital, we include:

&nbsp;&nbsp;&nbsp;&nbsp;· Common
 equity (excluding Accumulated other comprehensive income);

&nbsp;&nbsp;&nbsp;&nbsp;· Non-controlling
 interests;

&nbsp;&nbsp;&nbsp;&nbsp;· Long-term
 debt (including long-term credit facilities, commercial paper backstopped by long-term credit
 facilities and any hedging assets or liabilities associated with Long-term debt items, net
 of amounts recognized in Accumulated other comprehensive income);

&nbsp;&nbsp;&nbsp;&nbsp;· Cash and
 temporary investments;

&nbsp;&nbsp;&nbsp;&nbsp;· Short-term
 borrowings (including those arising from securitized trade receivables and unbilled customer
 finance receivables and any hedging assets or liabilities associated with short-term borrowings,
 net of amounts recognized in accumulated other comprehensive income); and

&nbsp;&nbsp;&nbsp;&nbsp;· Other
 long-term debt.

We manage our financial capital structure and make adjustments to it in light of changes in economic conditions and the risk characteristics of our business. In order to maintain or adjust our financial capital structure, we may:

&nbsp;&nbsp;&nbsp;&nbsp;· Adjust
 the amount of dividends paid to holders of Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;· Adjust
 the discount at which Common Shares are offered under the Dividend Reinvestment and Share
 Purchase Plan;

&nbsp;&nbsp;&nbsp;&nbsp;· Purchase
 Common Shares for cancellation pursuant to normal course issuer bids;

&nbsp;&nbsp;&nbsp;&nbsp;· Issue
 new equity (including Common Shares and subsidiary equity);

&nbsp;&nbsp;&nbsp;&nbsp;· Issue
 new debt, issue new debt to replace existing debt with different characteristics; and/or

&nbsp;&nbsp;&nbsp;&nbsp;· Increase
 or decrease the amount of short-term borrowings arising from securitized trade receivables
 and unbilled customer finance receivables.

We monitor financial capital utilizing a number of measures, including net debt to EBITDA – excluding restructuring and other costs ratio, coverage ratios and dividend payout ratios. (See definitions in *Section 11.1 Non-GAAP and other specified financial measures*.)

**Financing and capital structure management plans**

*Report on financing and capital structure management plans*

**Pay dividends to the holders of the Common Shares of TELUS Corporation under our multi-year dividend growth program**

· In May 2025, we announced
 our intention to target ongoing semi-annual dividend increases, with the annual increase in the range of 3 to 8% from 2026 through
 to the end of 2028, thereby extending the policy first announced in May 2011. Notwithstanding this target, dividend decisions will
 continue to be subject to our Board's assessment and the determination of our financial position and outlook on a quarterly
 basis. Our long-term Common Share dividend payout ratio guideline is 60 to 75% of free cash flow on a prospective basis. (See *Section 7.5 Liquidity and capital resource measures.*) There can be no assurance that we will maintain a dividend growth program or that
 it will be unchanged through 2028. (See *Caution regarding forward-looking statements – Financing, debt and dividends* and *Section 10.15 Financing, debt and dividends* in our 2024 annual MD&A.)

· On November 6, 2025, the
 Board elected to declare a fourth quarter dividend of $0.4184 per share, payable on January 2, 2026, to shareholders of record at
 the close of business on December 11, 2025. The fourth quarter dividend for 2025 reflects a cumulative increase of $0.0161 per share
 or 4% from the $0.4023 per share dividend declared one year earlier.

· Our dividend reinvestment
 and share purchase (DRISP) plan trustee acquired shares from Treasury for the DRISP plan, rather than acquiring Common Shares in
 the stock market. We may, at our discretion, offer Common Shares at a discount of up to 5% from the market price under the DRISP
 plan. Effective with the dividends paid beginning on October 1, 2019, we offered Common Shares from Treasury at a discount of
 2%. During the third quarter of 2025, for the dividends paid on July 2, 2025, our DRISP plan trustee acquired from Treasury approximately
 10 million dividend reinvestment Common Shares for $226 million. The DRISP participation rate for these dividends, calculated
 as the DRISP investment of $226 million (including the employee share purchase plan) as a percentage of gross dividends, was approximately
 36%. For the dividends paid on October 1, 2025, the DRISP participation rate, calculated as the DRISP investment of $226 million
 (including the employee share purchase plan) as a percentage of gross dividends, was approximately 35%.

---

| | |
|:---|:---|
| **Use proceeds from securitized receivables (Short-term borrowings), bank facilities and commercial paper as needed, to supplement free cash flow and meet other cash requirements** | **Use proceeds from securitized receivables (Short-term borrowings), bank facilities and commercial paper as needed, to supplement free cash flow and meet other cash requirements** |
| · | Our issued and outstanding commercial paper was $1.0 billion at September 30, 2025, all of which was denominated in U.S. dollars (US$0.7 billion), compared to $1.4 billion (US$1.0 billion) at December 31, 2024, and $1.1 billion (US$0.8 billion) at September 30, 2024. |
| · | The TELUS International (Cda) Inc. credit facility was repaid in the third quarter of 2025. Net draws due to a syndicate of financial institutions (excluding TELUS Corporation's participation) on the TELUS International (Cda) Inc. credit facility were US$1.2 billion at both December 31, 2024, and September 30, 2024. |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

· Proceeds from securitized
 trade receivables and unbilled customer finance receivables were $0.9 billion at September 30, 2025, compared to $0.9 billion
 at both December 31, 2024, and September 30, 2024 (see *Section 7.7*). Funding under the agreement may be provided
 in either Canadian dollars or U.S. dollars. Foreign currency forward contracts are used to manage currency risk associated with funding
 denominated in U.S. dollars.

---

| | |
|:---|:---|
| **Maintain compliance with financial objectives** | **Maintain compliance with financial objectives** |
| · | <u>Maintain investment-grade credit ratings</u> – On November 7, 2025, investment-grade credit ratings from all rating agencies that cover TELUS were in the desired range. (See *Section 7.8 Credit ratings*.) |
| · | <u>Net debt to EBITDA – excluding restructuring and other costs ratio of 2.2 to 2.7 times</u> – As measured at September 30, 2025, this ratio was 3.5 times, outside of the objective range, primarily due to the acquisition of spectrum licences (as spectrum is our largest indefinite-life asset) and business acquisitions. Given the cash demands of the 600 MHz auction held in 2019, the 3500 MHz auction held in 2021, the 3800 MHz auction held in 2023 (paid in fiscal 2024) and the upcoming auction for millimetre wave spectrum, the assessment of the guideline and timing of return to the objective range remains to be determined; however, it is our intent to return to a ratio of circa 2.7 in the medium term (following the spectrum auctions in 2021 and 2023, and the upcoming auction for millimetre wave spectrum), consistent with our long-term strategy. We have an objective of achieving a ratio of circa 3.0 in 2027. (See *Section 7.5 Liquidity and capital resource measures*.) |
| · | <u>Common Share dividend payout ratio of 60 to 75% of free cash flow on a prospective basis</u> – Our objective range is on a prospective basis. The Common Share dividend payout ratio<sup>1</sup> we present in this MD&A is a historical measure utilizing the dividends declared in the most recent four quarters, net of dividend reinvestment plan effects, and free cash flow, and is presented on a retrospective basis for illustrative purposes in evaluating our objective range. As at September 30, 2025, the ratio was 75%, within the objective range. (See *Section 7.5 Liquidity and capital resource measures*.) |
| · | <u>Generally maintain a minimum of $1 billion in available liquidity</u> – As at September 30, 2025, our available liquidity<sup>1</sup> was more than $4.2 billion. (See *Section 7.6 Credit facilities* and *Liquidity risk* in *Section 7.9*.) |

---

1 These are non-GAAP and other specified financial measures. See *Section 11.1 Non-GAAP and other specified financial measures*.

**4.4** **Changes in internal control over financial reporting** and limitations on scope of design

**Changes in internal control over financial reporting**

For the three-month and nine-month periods ended September 30, 2025, there were no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Limitations on scope of design**

In our assessment of the scope of the disclosure controls and procedures and internal control over financial reporting, we have excluded the controls, policies and procedures of Workplace Options, which was acquired on May 1, 2025, the operating results of which are included in the interim consolidated financial statements from the acquisition date. The scope limitation is in accordance with National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, which allows an issuer to limit its design of internal controls over financial reporting and disclosure controls and procedures to exclude the controls, policies and procedures of a company acquired not more than 365 days before the end of the financial period to which the certificate relates.

From May 1, 2025 (the acquisition date) to September 30, 2025, Workplace Options has contributed revenues of $82 million and generated net loss of $21 million. As at September 30, 2025, Workplace Options' current assets and current liabilities represented approximately less than 1% of TELUS' consolidated current assets and current liabilities, respectively, while Workplace Options' non-current assets and non-current liabilities represented approximately 2% and 1% of TELUS' consolidated non-current assets and non-current liabilities, respectively. The amounts recognized for the assets acquired and liabilities assumed as at the acquisition date are described in *Note 18* of the interim consolidated financial statements.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**5.** Discussion
 of operations

This section contains forward-looking statements, including those with respect to mobile phone average revenue per subscriber per month (ARPU) growth, products and services trends regarding loading and retention spending, equipment margins, subscriber growth and various future trends. There can be no assurance that we have accurately identified these trends based on past results or that these trends will continue. See *Caution regarding forward-looking statements* at the beginning of this MD&A.

**5.1** General

Operating segments are components of an entity that engage in business activities from which they earn revenues and incur expenses (including revenues and expenses related to transactions with the other component(s)), the operations of which can be clearly distinguished and for which the operating results, and in particular, Adjusted EBITDA, are regularly reviewed by a chief operating decision-maker to make resource allocation decisions and to assess performance. Segmented information in *Note 5* of the interim consolidated financial statements is regularly reported to our Chief Executive Officer (CEO) (our chief operating decision-maker).

The TELUS technology solutions segment (TTech) 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; and home and business security and automation); agriculture and consumer goods services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); voice and other telecommunications services revenues; and equipment sales.

We embarked upon the modification of our internal and external reporting processes, systems and internal controls arising from the acquisition, and ongoing integration, of LifeWorks; commencing with the three-month period ended March 31, 2025, we have transitioned to our new segmented reporting structure and have restated comparative amounts on a comparable basis. The TELUS health segment (TELUS Health), the results of which were included in TELUS technology solutions' results in the comparative periods, includes: healthcare services, software and technology solutions (including employee and family assistance programs and benefits administration).

The TELUS digital experience segment (TELUS Digital), which has the U.S. dollar as its primary functional currency, includes key service lines provided by our TELUS International (Cda) Inc. subsidiary: customer experience management; digital solutions; AI and data solutions; and trust, safety and security. TELUS Corporation's acquisition of the TELUS International (Cda) Inc. non-controlling interests, as described in *Note 28(b)* of the interim consolidated financial statements, may affect our internal and external reporting processes, systems and internal controls, and thus our segmented reporting structure, in future periods.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**5.2** Summary of consolidated quarterly results and trends

**Summary of quarterly results**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ($ millions, except per share amounts) | **2025 Q3** | 2025 Q2 | 2025 Q1 | 2024 Q4 | 2024 Q3 | 2024 Q2 | 2024 Q1 | 2023 Q4 |
| **Operating revenues and other income** | **5106** | 5082 | 5057 | 5381 | 5099 | 4974 | 4932 | 5198 |
| **Operating expenses** |  |  |  |  |  |  |  |  |
| Goods and services purchased<sup>1</sup> | **1942** | 1858 | 1847 | 2136 | 1868 | 1825 | 1810 | 2086 |
| Employee benefits expense<sup>1</sup> | **1411** | 1545 | 1466 | 1475 | 1475 | 1473 | 1484 | 1407 |
| Depreciation and amortization | **1011** | 1004 | 992 | 1011 | 968 | 994 | 1063 | 1041 |
| Impairment of goodwill | **—** | 500 |  |  |  |  |  |  |
| Total operating expenses | **4364** | 4907 | 4305 | 4622 | 4311 | 4292 | 4357 | 4534 |
| **Operating income** | **742** | 175 | 752 | 759 | 788 | 682 | 575 | 664 |
| Financing costs before gain on purchase of long-term debt and long-term debt prepayment premium | **328** | 373 | 344 | 321 | 479 | 382 | 394 | 278 |
| Gain on purchase of long-term debt | **(222)** |  |  |  |  |  |  |  |
| Long-term debt prepayment premium | **48** |  |  |  |  |  |  |  |
| **Income (loss) before income taxes** | **588** | (198) | 408 | 438 | 309 | 300 | 181 | 386 |
| Income taxes | **157** | 47 | 107 | 118 | 52 | 79 | 41 | 76 |
| **Net income (loss)** | **431** | (245) | 301 | 320 | 257 | 221 | 140 | 310 |
| **Net income attributable to Common Shares** | **493** | 7 | 321 | 358 | 280 | 228 | 127 | 288 |
| **Net income per Common Share:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic EPS | **0.32** |  | 0.21 | 0.24 | 0.19 | 0.15 | 0.09 | 0.20 |
| &nbsp;&nbsp;&nbsp;Adjusted basic EPS<sup>2</sup> | **0.24** | 0.22 | 0.26 | 0.25 | 0.28 | 0.25 | 0.26 | 0.24 |
| &nbsp;&nbsp;&nbsp;Diluted EPS | **0.32** |  | 0.21 | 0.24 | 0.19 | 0.15 | 0.09 | 0.20 |
| **Dividends declared per Common Share** | **0.4163** | 0.4163 | 0.4023 | 0.4023 | 0.3891 | 0.3891 | 0.3761 | 0.3761 |
| **Additional information:** |  |  |  |  |  |  |  |  |
| EBITDA | **1753** | 1679 | 1744 | 1770 | 1756 | 1676 | 1638 | 1705 |
| Restructuring and other costs | **109** | 133 | 97 | 68 | 86 | 121 | 218 | 142 |
| Adjusted EBITDA | **1862** | 1812 | 1841 | 1838 | 1842 | 1797 | 1856 | 1847 |
| Cash provided by operating activities | **1493** | 1166 | 1077 | 1077 | 1432 | 1388 | 950 | 1314 |
| Free cash flow | **611** | 535 | 488 | 534 | 568 | 481 | 399 | 595 |

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|:---|:---|
| 1 | Goods and services purchased and Employee benefits expense amounts include restructuring and other costs. |
| 2 | See *Section 11.1 Non-GAAP and other specified financial measures*. |

---

**Trends**

For further discussion of trends related to revenues, EBITDA and Adjusted EBITDA, see *Section 5.4 TELUS technology solutions segment*, *Section 5.5 TELUS health segment* and *Section 5.6 TELUS digital experience segment*.

The trend of year-over-year decreases in Depreciation and amortization reflects lower real estate rationalization and fewer asset retirements. Our expenditures have supported the expansion of our broadband footprint, including our generational investment to connect homes and businesses to TELUS PureFibre and 5G technology coverage, as well as successful internet, TV, and security and automation subscriber loading. Investments in our PureFibre technology also support our technology strategy to improve network coverage and capacity, including the ongoing build-out of our 5G network.

The trend of general year-over-year increases in Financing costs reflects greater long-term debt outstanding and increases in effective interest rates attributable to both floating-rate debt and recent fixed-rate issuances, primarily associated with our investments in spectrum licences and business acquisitions, as well as PureFibre technology. Financing costs are net of capitalized interest related to spectrum licences acquired during the 3500 MHz spectrum auction held in 2021 and during the 3800 MHz spectrum auction held in 2023 (paid in fiscal 2024). Financing costs also include Interest accretion on provisions (asset retirement obligations and written put options) and Employee defined benefit plans net interest. Additionally, for the eight periods shown, Financing costs include varying amounts of foreign exchange gains or losses, varying amounts of interest income and unrealized changes in VPPA forward element, which contributed to income up to the third quarter of 2022 and to losses up to the fourth quarter of 2024. Effective for the first quarter of 2025, arising from a prospective change in accounting policy which applies hedge accounting (see *Note 2(a)* of the interim consolidated financial statements), unrealized fair value adjustments for VPPAs which were previously included within Financing costs are now included within Other comprehensive income.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**5.3** Consolidated operations

The following is a discussion of our consolidated financial performance. Segment information in *Note 5* of the interim consolidated financial statements is regularly reported to our CEO. We discuss the performance of our segments in *Section 5.4 TELUS technology solutions segment*, *Section 5.5 TELUS health segment* and *Section 5.6 TELUS digital experience segment*.

**Operating revenues**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Operating revenues |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service | **4507** | 4410 | 2% | **13441** | 13081 | 3% |
| &nbsp;&nbsp;&nbsp;Equipment | **560** | 632 | (11)% | **1675** | 1727 | (3)% |
| &nbsp;&nbsp;&nbsp;Operating revenues (arising from contracts with customers) | **5067** | 5042 | —% | **15116** | 14808 | 2% |
| Other income | **39** | 57 | (32)% | **129** | 197 | (35)% |
| Operating revenues and other income | **5106** | 5099 | —% | **15245** | 15005 | 2% |

---

Consolidated Operating revenues and other income increased by $7 million in the third quarter of 2025 and increased by $240 million in the first nine months of 2025.

· **Service revenues** increased
 by $97 million in the third quarter of 2025, largely as a result of: (i) growth in health
 services, reflecting business acquisitions and growth in payor and provider solutions; (ii)
 mobile, residential internet, and security and automation subscriber growth; (iii) higher
 external revenues in TELUS Digital inclusive of favourable foreign exchange rates; and (iv)
 higher residential internet revenue per customer. These factors were partially offset by:
 (i) lower mobile phone ARPU; (ii) lower business-to-business (B2B) data services revenue;
 (iii) lower agriculture and consumer goods services revenues attributable to the divestiture
 of non-core assets; and (iv) declines in fixed legacy voice and TV services revenues due
 to technological substitution. Service revenues increased by $360 million in the first nine
 months of 2025, due to the same factors as the third quarter, with the exception of agriculture
 and consumer goods services revenues which increased during the nine-month period.

· **Equipment revenues** decreased by $72 million in
 the third quarter of 2025 and $52 million in the first nine months of 2025. These declines
 were primarily driven by lower mobile equipment revenues due to reductions in contracted
 volumes with a greater emphasis on higher-value loading and intense competitive price discounting,
 partially offset by the impact of higher-value smartphones in the sales mix.

· **Other income** decreased by $18 million in the third
 quarter of 2025, largely due to lower gains on real estate projects. Other income decreased
 by $68 million in the first nine months of 2025, primarily due to lower net reversals of
 provisions related to business combinations and lower gains on real estate projects. This
 was partially offset by non-recurring lease and other sublease revenue and higher net gains
 from the divestiture of non-core assets as planned.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Operating expenses**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Goods and services purchased | **1942** | 1868 | 4% | **5647** | 5503 | 3% |
| Employee benefits expense | **1411** | 1475 | (4)% | **4422** | 4432 | —% |
| Depreciation | **621** | 597 | 4% | **1814** | 1895 | (4)% |
| Amortization of intangible assets | **390** | 371 | 5% | **1193** | 1130 | 6% |
| Impairment of goodwill | **—** |  | n/m | **500** |  | n/m |
| Operating expenses | **4364** | 4311 | 1% | **13576** | 12960 | 5% |

---

Consolidated operating expenses increased by $53 million in the third quarter of 2025 and $616 million in the first nine months of 2025. See *Adjusted EBITDA* below for further details on Goods and services purchased and Employee benefits expense.

· **Depreciation** increased by
 $24 million in the third quarter of 2025, primarily driven by increased real estate rationalization.
 Depreciation decreased by $81 million in the first nine months of 2025, largely due to lower
 real estate rationalization in the first six months of the year.

· **Amortization of intangible assets** increased by
 $19 million in the third quarter of 2025 and $63 million in the first nine months of 2025,
 primarily driven by amortization from new TELUS Health acquisitions and increased additions
 of software assets.

· **Impairment of goodwill** was $500 million in the
 first nine months of 2025, as the recoverable amount of the TELUS digital experience cash-generating
 unit was less than its carrying amount as at June 30, 2025. During the nine-month period
 ended September 30, 2025, the TELUS digital experience cash-generating unit's competitive
 industry continued to experience prolonged macroeconomic pressures affecting the level and
 timing of customer demand, with commensurate impacts on our key future growth estimates.
 See Note 18(a) of the interim consolidated financial statements for additional details.

**Operating income**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| TTech EBITDA<sup>1,2</sup> (see *Section 5.4*) | **1625** | 1595 | 2% | **4744** | 4484 | 6% |
| TELUS Health EBITDA<sup>1</sup> (see *Section 5.5*) | **79** | 64 | 22% | **230** | 148 | 55% |
| TELUS Digital EBITDA<sup>1</sup> (see *Section 5.6*) | **68** | 109 | (37)% | **249** | 472 | (47)% |
| Eliminations | **(19)** | (12) | 58% | **(47)** | (34) | 38% |
| EBITDA | **1753** | 1756 | &nbsp;&nbsp;&nbsp;&nbsp;—% | **5176** | 5070 | 2% |
| Depreciation and amortization (discussed above) | **(1011)** | (968) | 4% | **(3007)** | (3025) | (1)% |
| Impairment of goodwill (discussed above) | **—** |  | n/m | **(500)** |  | n/m |
| Operating income (consolidated earnings (loss) before interest and income taxes (EBIT)) | **742** | 788 | (6)% | **1669** | 2045 | (18)% |

---

1 See *Section 11.1 Non-GAAP and other specified financial measures*. <br> 2 2024 restated.

Operating income decreased by $46 million in the third quarter of 2025 and $376 million in the first nine months of 2025. EBITDA decreased by $3 million in the third quarter of 2025 and increased by $106 million in the first nine months of 2025. In addition to the growth drivers discussed within *Adjusted EBITDA* below, EBITDA reflected net changes in restructuring and other costs during the three-month and nine-month periods. Restructuring and other costs decreased by $86 million in the first nine months of 2025, related to prior year investments in cost efficiency and effectiveness programs, including real estate rationalization.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Adjusted EBITDA**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| TTech Adjusted EBITDA<sup>1,2</sup> (see *Section 5.4*) | **1685** | 1650 | 2% | **4938** | 4811 | 3% |
| TELUS Health Adjusted EBITDA<sup>1</sup> (see *Section 5.5*) | **91** | 73 | 24% | **258** | 202 | 27% |
| TELUS Digital Adjusted EBITDA<sup>1,3</sup> (see *Section 5.6*) | **105** | 131 | (18)% | **366** | 516 | (29)% |
| Eliminations | **(19)** | (12) | 58% | **(47)** | (34) | 38% |
| Adjusted EBITDA | **1862** | 1842 | 1% | **5515** | 5495 | —% |

---

---

| | |
|:---|:---|
| 1 | See *Section 11.1 Non-GAAP and other specified financial measures.* |
| 2 | 2024 restated. |
| 3 | For certain financial metrics, there are definitional differences between TELUS and TELUS Digital reporting. These differences largely arise from TELUS Digital adopting definitions consistent with practice in its industry. |

---

Consolidated Adjusted EBITDA increased by $20 million in both the third quarter and first nine months of 2025. These improvements reflect varied results across our reportable segments.

TTech saw Adjusted EBITDA growth of 2% in the third quarter of 2025. This growth was driven by: (i) cost reduction efforts, including workforce reductions, and increased adoption of TELUS Digital's solutions across TTech operations, resulting in competitive benefits given the lower cost structure in TELUS Digital, as well as reductions in marketing and administrative costs; (ii) mobile, residential internet, and security and automation subscriber growth; and (iii) higher residential internet revenue per customer. These factors were partially offset by: (i) lower mobile phone ARPU; (ii) lower mobile equipment margins; (iii) lower Other income; (iv) lower agriculture and consumer goods margins from the divestiture of non-core assets; (v) declining fixed legacy margins; and (vi) increased costs of subscription-based licences and cloud usage. TTech Adjusted EBITDA increased by 3% in the first nine months of 2025 due to the same factors as the third quarter, with the exception of increased Other income, partially offset by higher bad debt expense. See *Section 5.4* for further details.

TELUS Health experienced a 24% increase in Adjusted EBITDA in the third quarter of 2025 and a 27% increase in the first nine months of 2025, driven by revenue growth and cost reduction efforts, including lower net labour costs and continued realization of acquisition integration synergies. See *Section 5.5* for further details.

TELUS Digital Adjusted EBITDA decreased by 18% in the third quarter of 2025 primarily due to an increase in salaries and benefits and goods and services purchased, partially offset by lower share-based compensation expense. TELUS Digital Adjusted EBITDA decreased by 29% in the first nine months of 2025, largely due to the non-recurring net reversals of provisions related to business combinations in the comparative period, in addition to the same factors as the third quarter. See *Section 5.6* for further details.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Financing costs**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| *From transactions that <u>only</u> involve the raising of finance* |  |  |  |  |  |  |
| Interest on long-term debt, excluding lease liabilities and other (secured) – gross | **331** | 288 | 15% | **921** | 877 | 5% |
| Interest on long-term debt, excluding lease liabilities and other (secured) – capitalized | **(1)** | (9) | (89)% | **(10)** | (13) | (23)% |
| Interest on short-term borrowings and other | **25** | 14 | 79% | **54** | 24 | n/m |
| Gain on purchase of long-term debt | **(222)** |  | n/m | **(222)** |  | n/m |
| Long-term debt prepayment premium | **48** |  | n/m | **48** |  | n/m |
|  | **181** | 293 | (38)% | **791** | 888 | (11)% |
| *From transactions that <u>do not</u> only involve the raising of finance* |  |  |  |  |  |  |
| Interest on long-term debt – lease liabilities | **36** | 42 | (14)% | **119** | 122 | (2)% |
| Interest on long-term debt – other (secured) | **6** | 9 | (33)% | **20** | 15 | 33% |
| Employee defined benefit plans net interest | **3** | 3 | &nbsp;&nbsp;&nbsp;&nbsp;—% | **9** | 7 | 29% |
| Interest accretion on provisions | **7** | 7 | &nbsp;&nbsp;&nbsp;&nbsp;—% | **21** | 22 | (5)% |
|  | **52** | 61 | (15)% | **169** | 166 | 2% |
| Interest expense | **233** | 354 | (34)% | **960** | 1054 | (9)% |
| Foreign exchange (gains) losses | **(64)** | 8 | n/m | **(52)** | 2 | n/m |
| Unrealized changes in virtual power purchase agreements forward element | **—** | 125 | (100)% | **—** | 228 | (100)% |
| Interest income | **(15)** | (8) | 88% | **(37)** | (29) | 28% |
| Financing costs | **154** | 479 | (68)% | **871** | 1255 | (31)% |

---

Financing costs decreased by $325 million in the third quarter of 2025 and $384 million in the first nine months of 2025, mainly due to the following factors:

· **Interest expense** decreased by $121 million in the third quarter of 2025 and $94 million in the
 first nine months of 2025, largely resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;· An increase in gross interest expense on long-term debt, excluding lease
liabilities and other (secured) of $43 million in the third quarter of 2025 and $44 million in the first nine months of 2025. This was
primarily driven by an increase in average long-term debt. Our weighted average interest rate on long-term debt (excluding commercial
paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities
and other long-term debt) was 4.61% at September 30, 2025, compared to 4.40% one year earlier. (See *Long-term debt issued and Redemptions and repayment of long-term debt* in *Section 7.4*.)

&nbsp;&nbsp;&nbsp;&nbsp;· Capitalized
 long-term debt interest, excluding lease liabilities, is in respect of debt incurred for
 the purchase of spectrum licences during the 3800 MHz spectrum auction held in October to
 November 2023 by Innovation, Science and Economic Development Canada (ISED).

&nbsp;&nbsp;&nbsp;&nbsp;· Interest
 on short-term borrowings and other increased by $11 million in the third quarter of
 2025 and $30 million in the first nine months of 2025, in relation to a new agreement with
 an arm's-length securitization trust entered into in the second quarter of 2024. (See *Short-term borrowings* in *Section 7.7*.)

&nbsp;&nbsp;&nbsp;&nbsp;· Gain
 on purchase of long-term debt is in respect of the tender offer process described in *Section 1.3* and is net of a $17 million loss on the corresponding foreign exchange derivatives
 (cross currency interest rate swap agreements) terminated.

&nbsp;&nbsp;&nbsp;&nbsp;· Long-term
 debt prepayment premium includes a $38 million effect of a hedging relationship becoming
 ineffective. See *Note 26* of the interim consolidated financial statements for further
 details.

· **Foreign exchange gains** were
 $72 million higher in the third quarter of 2025 and $54 million higher in the first nine
 months of 2025. This was primarily attributable to: (i) discontinued hedge accounting on
 certain cross currency interest rate exchange arrangements as a result of the repayment of
 the TELUS International (Cda) Inc. credit facility (see *Notes 4(d)* and *26(g)* for further details; and (iii) changes in the value of the U.S. dollar relative to the Canadian
 dollar and the European euro relative to the Canadian dollar.

· **Unrealized changes in virtual power purchase agreements forward element** represent the estimated unrealized amounts recorded from our VPPAs with
 renewable energy projects. We have entered into VPPAs with renewable energy projects that
 develop solar and wind power facilities as part of our commitment to reduce our carbon footprint.
 Effective for the first quarter of 2025, arising from a prospective change in accounting
 policy which applies hedge accounting (see *Note 2(a)* of the interim consolidated financial
 statements), unrealized fair value adjustments which were previously included within Financing
 costs are now included within Other comprehensive income.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Income taxes** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions, except tax rates) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Income taxes computed at applicable statutory rates (%) | **25.5** | 25.2 | 0.3 | **24.6** | 24.2 | 0.4 |
| Adjustments recognized in the current period for income taxes of prior periods (%) | **(1.9)** | (6.4) | 4.5 | **(4.3)** | (3.3) | (1.0) |
| Pillar Two global minimum tax (%) | **—** | 0.3 | (0.3) | **0.1** | 0.3 | (0.2) |
| Impairment of goodwill | **—** |  |  | **13.4** |  | 13.4 |
| (Non-taxable) non-deductible amounts, net (%) | **2.8** | (1.9) | 4.7 | **2.4** | (1.7) | 4.1 |
| Withholding and other taxes (%) | **0.9** | 1.9 | (1.0) | **3.0** | 3.2 | (0.2) |
| Losses not recognized (%) | **(0.2)** | 0.3 | (0.5) | **0.3** | 0.5 | (0.2) |
| Foreign tax differential (%) | **(0.2)** | (1.3) | 1.1 | **(0.5)** | (0.9) | 0.4 |
| Other (%) | **(0.2)** | (1.3) | 1.1 | **—** | (0.5) | 0.5 |
| Effective tax rate (%) | **26.7** | 16.8 | 9.9 | **39.0** | 21.8 | 17.2 |
| Income taxes computed at applicable statutory rates | **150** | 78 | 92 | **196** | 191 | 3 |
| Adjustments recognized in the current period for income taxes of prior periods | **(11)** | (20) | (45) | **(34)** | (26) | 31 |
| Pillar Two global minimum tax | **—** | 1 | (100) | **1** | 2 | (50) |
| Impairment of goodwill | **—** |  | n/m | **107** |  | n/m |
| (Non-taxable) non-deductible amounts, net | **16** | (6) | n/m | **19** | (13) | n/m |
| Withholding and other taxes | **5** | 6 | (17) | **24** | 25 | (4) |
| Losses not recognized | **(1)** | 1 | n/m | **2** | 4 | (50) |
| Foreign tax differential | **(1)** | (4) | (75) | **(4)** | (7) | (43) |
| Other | **(1)** | (4) | (75 | **—** | (4) | (100 |
| Income taxes | **157** | 52 | n/m | **311** | 172 | 81 |

---

Total income tax expense increased by $105 million in the third quarter of 2025. The effective tax rate increased from 16.8% to 26.7% in the third quarter of 2025, largely as a result of adjustments recognized in the current period for income taxes of prior periods and an increase of non-deductible amounts. Total income tax expense increased by $139 million in the first nine months of 2025. The effective tax rate increased from 21.8% to 39.0% in the first nine months of 2025, primarily attributable to an impairment of goodwill.

**Comprehensive income**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Net income | **431** | 257 | 68% | **487** | 618 | (21)% |
| Other comprehensive income (net of income taxes): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Items that may be subsequently reclassified to income | **89** | 2 | n/m | **57** | 75 | (24)% |
| &nbsp;&nbsp;&nbsp;Items never subsequently reclassified to income | **17** | (19) | n/m | **50** | 29 | 72% |
| Comprehensive income | **537** | 240 | n/m | **594** | 722 | (18)% |

---

Comprehensive income increased by $297 million in the third quarter of 2025, largely driven by an increase in Net income and changes in the unrealized fair value of derivatives designated as cash flow hedges. Comprehensive income decreased by $128 million in the first nine months of 2025, primarily due to a decrease in Net income. Items that may subsequently be reclassified to income include changes in the unrealized fair value of derivatives designated as cash flow hedges and foreign currency translation adjustments arising from translating financial statements of foreign operations. Items never subsequently reclassified to income include changes in the measurement of investment financial assets and employee defined benefit plans re-measurement amounts.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**5.4** TELUS technology solutions segment

**TTech trends and seasonality**

The historical trend over the past eight quarters in mobile network revenue primarily reflects the recent deceleration in immigration that has slowed subscriber growth, along with domestic ARPU declines attributable to larger data allotments at given price points, and persistent retail competition. Roaming revenues continued to decline, driven by the adoption of North America wide plans and competitive roaming packages in the market as well as lower travel volumes. As a partial offset, we continue to see growth in our mobile phone subscriber base, as well as an increase in Internet of Things (IoT) connections.

Mobile equipment revenue trends have been attributable to lower contracted volumes, partially offset by the impact of higher-value smartphones in the sales mix. Declines in sales volumes of mobile devices reflect a combination of improvements in durability and increasing cost of devices from manufacturers, which are prompting customers to defer upgrades and driving an increase in the adoption of bring-your-own-device (BYOD) plans. We continue to offer certified pre-owned devices and our Bring-It-Back<sup>®</sup> program, providing customers with alternative options for handset upgrades while also supporting a circular economy.

Our spectrum investments and capital expenditures to improve our network is enhancing its capacity, coverage and reliability, enabling us to drive revenue growth through net additions of new mobile phone and connected device subscribers. Growth in our mobile phone subscriber base is attributable to: (i) industry-leading product offerings with continuous improvements in the speed, performance and reliability of our network, coupled with our enhanced digital capabilities; (ii) the success of our promotions, including our bundling of mobility and home services; (iii) our ability to attract a large share of the Canadian population, with growth that is being driven by immigration (albeit slowing) and changing demographics, as well as ongoing growth in the number of customers with multiple devices; and (iv) our relatively low churn rate, which reflects our customers first efforts and upgrade volume programs.

Our connected device subscriber base has been growing, primarily in response to our expanded IoT offerings across various industries, including transportation, security, healthcare, smart buildings and smart cities, energy, retail and agriculture. Our investments in network infrastructure and the expansion of our IoT product portfolio have also allowed us to provide reliable and scalable IoT solutions to our customers.

Growth in our internet subscriber base has continued, supported by our ongoing investments in building out our fibre-optic infrastructure. Our TV subscriber base has continued to grow, reflecting net subscriber additions in response to our diverse and flexible product offerings, which address the changing customer needs and preferences. Growth in our security and automation subscriber base is attributable to the adoption of our bundled offerings. Bundling of mobility and home services increases our offerings per home to better meet demand for multiple services, and has a positive impact on churn. Residential voice subscriber losses have remained relatively low as a result of the success of our bundled services and effective retention efforts to mitigate the ongoing substitution to mobile and internet-based services.

The trend of growth in our fixed data services revenue reflects the growth of our internet and security and automation subscriber bases, including from expansion into non-ILEC communities in Ontario and parts of Quebec. This growth is bolstered by sustained demand for faster internet speeds and larger bandwidth, as well as home and business security and automation offerings and other advanced applications, all of which are supported by investments in our fibre-optic footprint. The trends of declining TV revenues and fixed voice revenues are a result of technological substitution and more intense competition. However, we are mitigating this through our bundled offerings, product diversification and effective retention efforts. The migration of business product and service offerings to IP platforms and the entry of new competitors have resulted in inherently lower margins compared to some legacy business product and service offerings. However, we are continuing to refine and diversify our portfolio of innovative business offerings.

Previous trends of agriculture and consumer goods services were attributable to customer churn which hampered subscription growth; however, our agriculture and consumer goods business showed organic improvement throughout 2024 and 2025. The decline in the second quarter of 2025 was driven by the divestiture of non-core assets. With our global team and cloud-based solutions, we are able to serve a diverse client base, including growers, producers, agronomists, advisors, processors and retailers, by enabling more effective and agile decision-making that can address changing consumer demands, improve profitability and generate a better flow of information across the value chain. This improves the safety and sustainability of our outputs and drives efficiencies in the way we produce, distribute and consume food and consumer goods.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**TTech operating indicators**

---

| | | | |
|:---|:---|:---|:---|
| At September 30 | **2025** | 2024 | Change |
| **Subscriber connections** (thousands): |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile phone<sup>1</sup> | **10274** | 10077 | 2% |
| &nbsp;&nbsp;&nbsp;Connected device | **4158** | 3535 | 18% |
| &nbsp;&nbsp;&nbsp;Internet<sup>2</sup> | **2782** | 2723 | 2% |
| &nbsp;&nbsp;&nbsp;TV | **1433** | 1362 | 5% |
| &nbsp;&nbsp;&nbsp;Security and automation | **1150** | 1110 | 4% |
| &nbsp;&nbsp;&nbsp;Residential voice | **986** | 1040 | (5)% |
| Total telecom subscriber connections | **20783** | 19847 | 5% |
| LTE population coverage<sup>3</sup> (millions) | **36.7** | 36.7 | —% |
| 5G population coverage<sup>3</sup> (millions) | **32.9** | 32.1 | 2% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
|  | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Mobile phone gross additions (thousands) | **419** | 455 | (8 | **1134** | 1246 | (9 |
| **Subscriber connection net additions (losses)** (thousands): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile phone | **82** | 130 | (37) | **157** | 276 | (43) |
| &nbsp;&nbsp;&nbsp;Connected device | **169** | 159 | 6 | **429** | 421 | 2 |
| &nbsp;&nbsp;&nbsp;Internet | **40** | 34 | 18 | **88** | 97 | (9) |
| &nbsp;&nbsp;&nbsp;TV | **5** | 21 | (76) | **44** | 65 | (32) |
| &nbsp;&nbsp;&nbsp;Security and automation | **6** | 12 | (50) | **30** | 54 | (44) |
| &nbsp;&nbsp;&nbsp;Residential voice | **(14)** | (9) | (56 | **(44)** | (25) | (76 |
| Total telecom subscriber connection net additions | **288** | 347 | (17 | **704** | 888 | (21 |
| Mobile phone ARPU, per month<sup>4</sup> ($) | **57.21** | 58.85 | (2.8) | **56.97** | 58.88 | (3.2) |
| Mobile phone churn, per month<sup>5</sup> (%) | **1.11** | 1.09 | 0.02 | **1.07** | 1.10 | (0.03 |

---

1 Effective January 1, 2025, we adjusted our mobile phone subscriber base to remove 30,000 subscribers on a prospective basis, following an in-depth review of customer accounts.<br> 2 Effective January 1, 2025, we adjusted our internet subscriber base to remove 66,000 subscribers on a prospective basis, due to a review of our subscriber base.<br> 3 Including network access agreements with other Canadian carriers.<br> 4 This is an other specified financial measure. See *Section 11.1 Non-GAAP and other specified financial measures*. This is an industry measure useful in assessing operating performance of a mobile products and services company, but is not a measure defined under IFRS Accounting Standards.<br> 5 See *Section 11.2 Operating indicators*.<br>

&nbsp;&nbsp;&nbsp;&nbsp;· **Mobile phone gross additions** were 419,000 in the third quarter of 2025 and 1,134,000 in the
 first nine months of 2025, reflecting decreases of 36,000 for the quarter and 112,000 for
 the nine-month period. These decreases were driven by decelerating growth in the Canadian
 population from slowing immigration, in addition to a greater emphasis on profitable loading.

&nbsp;&nbsp;&nbsp;&nbsp;· Our **mobile phone churn rate** was 1.11% in the third quarter of 2025, compared to 1.09% in the third
 quarter of 2024. The increase was largely as a result of customer switching decisions in
 response to more intense competitive promotional pricing, partially offset by our ongoing
 focus on customer retention and network quality, along with success in bundled offerings.
 Our mobile phone churn rate was 1.07% in the first nine months of 2025, compared to 1.10%
 in the first nine months of 2024. The improvement was largely as a result of our ongoing
 focus on customer retention and network quality, along with success in bundled offerings.
 These factors were partially offset by customer switching decisions in response to more intense
 marketing and promotional price competition.

&nbsp;&nbsp;&nbsp;&nbsp;· **Mobile phone net additions** were 82,000 in the third quarter of 2025, reflecting a decrease of
 48,000 for the quarter, driven by lower mobile phone gross additions and a higher mobile
 phone churn rate. Mobile phone net additions were 157,000 in the first nine months of 2025,
 reflecting a decrease of 119,000 for the nine-month period, driven by lower mobile phone
 gross additions.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

&nbsp;&nbsp;&nbsp;&nbsp;· **Mobile phone ARPU** was $57.21 in the third quarter of 2025 and $56.97 in the first nine months
 of 2025, reflecting decreases of $1.64 or 2.8% for the quarter and $1.91 or 3.2% for the
 nine-month period. These decreases were attributable to the adoption of base rate plans with
 lower prices in response to more intense competitive promotional pricing targeting both new
 and existing customers, a decline in roaming revenues, and the commoditization of telecommunication
 services in the public sector, partially offset by higher IoT revenue. We are seeing a continuing
 increase in the adoption of unlimited data and Canada-U.S.-Mexico plans, which provide higher
 and more stable ARPU on a monthly basis while also giving customers cost certainty in lower
 roaming fees to the U.S. and Mexico, and lower data overage fees, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;· **Connected device net additions** were 169,000 in the third quarter of 2025 and 429,000 in the first
 nine months of 2025, reflecting increases of 10,000 for the quarter and 8,000 for the nine-month
 period, attributable to higher gross additions from customers in the transportation and connectivity
 industries, partially offset by increased deactivations in IoT connections.

&nbsp;&nbsp;&nbsp;&nbsp;· **Internet net additions** were 40,000 in the third quarter of 2025, reflecting an increase of 6,000
 for the quarter. This was largely attributable to our success in driving strong gross loading
 across residential and business internet, partially offset by higher churn. Internet net
 additions were 88,000 in the first nine months of 2025, reflecting a decrease of 9,000 for
 the nine-month period. This was largely attributable to continued higher churn and heightened
 competitive pressures, partially offset by the aforementioned gross loading, showcasing the
 strength of our fibre optic offerings.

&nbsp;&nbsp;&nbsp;&nbsp;· **TV net additions** were 5,000 in the third quarter of 2025 and 44,000 in the first nine months
 of 2025, reflecting decreases of 16,000 for the quarter and 21,000 for the nine-month period.
 These decreases reflect higher churn and evolving customer preferences, partially offset
 by higher gross loading.

&nbsp;&nbsp;&nbsp;&nbsp;· **Security and automation net additions** were 6,000 in the third quarter of 2025 and 30,000 in the
 first nine months of 2025, reflecting decreases of 6,000 for the quarter and 24,000 for the
 nine-month period. These decreases were attributable to higher churn and slower customer
 growth.

&nbsp;&nbsp;&nbsp;&nbsp;· **Residential voice net losses** were 14,000 in the third quarter of 2025 and 44,000 in the first nine
 months of 2025, reflecting increased losses of 5,000 for the quarter and 19,000 for the nine-month
 period, attributable to lower gross additions. These were moderated by our commitment to
 customer retention, with low churn reflecting successful loss mitigation.

**Operating revenues and other income – TTech segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 (restated) | Change | **2025** | 2024 (restated) | Change |
| Mobile network revenue | **1755** | 1766 | (1)% | **5210** | 5246 | (1)% |
| Mobile equipment and other service revenues | **518** | 591 | (12)% | **1540** | 1575 | (2)% |
| Fixed data services<sup>1</sup> | **1185** | 1175 | 1% | **3570** | 3492 | 2% |
| Fixed voice services | **167** | 179 | (7)% | **507** | 536 | (5)% |
| Fixed equipment and other service revenues | **125** | 117 | &nbsp;&nbsp;&nbsp;&nbsp;7% | **371** | 359 | 3% |
| Agriculture and consumer goods services | **92** | 100 | (8)% | **275** | 273 | 1% |
| Operating revenues (arising from contracts with customers) | **3842** | &nbsp;&nbsp;&nbsp;&nbsp;3928 | (2)% | **11473** | 11481 | &nbsp;&nbsp;&nbsp;&nbsp;—% |
| Other income | **29** | &nbsp;&nbsp;&nbsp;&nbsp;53 | (45)% | **118** | 110 | 7% |
| External Operating revenues and other income | **3871** | &nbsp;&nbsp;&nbsp;&nbsp;3981 | (3)% | **11591** | 11591 | &nbsp;&nbsp;&nbsp;&nbsp;—% |
| Intersegment revenues | **6** | &nbsp;&nbsp;&nbsp;&nbsp;5 | 20% | **17** | 15 | 13% |
| TTech Operating revenues and other income | **3877** | &nbsp;&nbsp;&nbsp;&nbsp;3986 | (3)% | **11608** | &nbsp;&nbsp;&nbsp;&nbsp;11606 | &nbsp;&nbsp;&nbsp;&nbsp;—% |

---

1 Excludes agriculture and consumer goods services.

TTech Operating revenues and other income decreased by $109 million in the third quarter of 2025 and increased by $2 million in the first nine months of 2025.

**Mobile network** revenue decreased by $11 million or 1% in the third quarter of 2025 and $36 million or 1% in the first nine months of 2025, largely due to lower mobile phone ARPU, partially offset by growth in our mobile phone subscriber base and an increase in IoT connections.

**Mobile equipment and other service** revenues decreased by $73 million in the third quarter of 2025 and $35 million in the first nine months of 2025, due to a reduction in contracted volumes and intense competitive price discounting, partially offset by the impact of higher-value smartphones in the sales mix.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Fixed data services** revenues increased by $10 million in the third quarter of 2025 and $78 million in the first nine months of 2025, driven by growth in our internet and security and automation subscriber bases, with internet further supported by higher revenue per customer. These factors were partially offset by lower B2B data services revenue and lower TV revenue growth, reflecting an increase in the mix of customers selecting smaller TV combination packages as well as technological substitution.

**Fixed voice services** revenues decreased by $12 million in the third quarter of 2025 and $29 million in the first nine months of 2025, reflecting the ongoing decline in legacy voice revenues as a result of technological substitution and shifts in consumer purchasing decisions. Declines were partially mitigated by our successful retention efforts.

**Fixed equipment and other service** revenues increased by $8 million in the third quarter of 2025 and $12 million in the first nine months of 2025, driven primarily by increases in security premises equipment sales.

**Agriculture and consumer goods services** revenues decreased by $8 million in the third quarter of 2025, largely attributable to the divestiture of non-core assets, partially offset by improved organic growth across multiple revenue streams. Agriculture and consumer goods services revenues increased by $2 million in the first nine months of 2025, driven primarily by business acquisitions in the first quarter of 2024, in addition to organic growth across multiple revenue streams. These factors were partially offset by the divestiture of non-core assets in the second quarter of 2025.

**Other income** decreased by $24 million in the third quarter of 2025, largely due to lower gains on real estate projects. Other income increased by $8 million in the first nine months of 2025, due to non-recurring lease and other sublease revenue, higher net gains from the divestiture of non-core assets as planned and higher net reversals of provisions related to business combinations. These factors were partially offset by lower gains on real estate projects.

**Intersegment revenues** represent services provided to the TELUS health and TELUS digital experience segments that are eliminated upon consolidation, together with the associated TELUS health and TELUS digital experience segment expenses.

**Direct contribution – TTech segment**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mobile products and services** | **Mobile products and services** | **Mobile products and services** | **Fixed products and services**<sup>1</sup>** | **Fixed products and services**<sup>1</sup>** | **Fixed products and services**<sup>1</sup>** | **Total TTech** | **Total TTech** | **Total TTech** |
| Three-month periods ended September 30 ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 (restated) | Change | **2025** | 2024 (restated) | Change |
| **Revenues** |  |  |  |  |  |  |  |  |  |
| Service | **1780** | 1790 | (1)% | **1503** | 1509 | —% | **3283** | 3299 | —% |
| Equipment | **493** | 567 | (13)% | **66** | 62 | 6% | **559** | 629 | (11)% |
| Operating revenues (arising from contracts with customers) | **2273** | 2357 | (4)% | **1569** | 1571 | —% | **3842** | 3928 | (2)% |
| **Expenses** |  |  |  |  |  |  |  |  |  |
| Direct expenses | **748** | 777 | (4)% | **474** | 460 | 3% | **1222** | 1237 | (1)% |
| Direct contribution | **1525** | 1580 | (3)% | **1095** | 1111 | (1)% | **2620** | 2691 | (3)% |

---

**Direct contribution – TTech segment**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mobile products and services** | **Mobile products and services** | **Mobile products and services** | **Fixed products and services**<sup>1</sup>** | **Fixed products and services**<sup>1</sup>** | **Fixed products and services**<sup>1</sup>** | **Total TTech** | **Total TTech** | **Total TTech** |
| Nine-month periods ended September 30 ($ in millions) | **2025** | 2024 | Change | **2025** | **2024<br> (restated)** | Change | **2025** | 2024<br> (restated) | Change |
| **Revenues** |  |  |  |  |  |  |  |  |  |
| Service | **5292** | 5315 | —% | **4510** | 4449 | 1% | **9802** | 9764 | —% |
| Equipment | **1458** | 1506 | (3)% | **213** | 211 | 1% | **1671** | 1717 | (3)% |
| Operating revenues (arising from contracts with customers) | **6750** | 6821 | (1)% | **4723** | 4660 | 1% | **11473** | 11481 | —% |
| **Expenses** |  |  |  |  |  |  |  |  |  |
| Direct expenses | **2193** | 2111 | 4% | **1429** | 1356 | 5% | **3622** | 3467 | 4% |
| Direct contribution | **4557** | 4710 | (3)% | **3294** | 3304 | — % | **7851** | 8014 | (2)% |

---

1 Includes agriculture and consumer goods services.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

The direct expenses included in the direct contribution calculations in the preceding tables represent components of the Goods and services purchased and Employee benefits expense totals included in the table below and have been calculated in accordance with the accounting policies used to prepare the totals presented in the financial statements. TTech direct contribution decreased by $71 million or 3% in the third quarter of 2025 and $163 million or 2% in the first nine months of 2025.

TTech mobile products and services direct contribution decreased by $55 million in the third quarter of 2025 and $153 million in the first nine months of 2025, largely reflecting the impact of lower mobile phone ARPU and lower mobile equipment margin from lower contracted volumes and intense competitive price discounting. These factors were partially offset by mobile phone subscriber growth.

TTech fixed products and services direct contribution decreased by $16 million in the third quarter of 2025 and $10 million in the first nine months of 2025, primarily driven by legacy decline attributable to technological substitution, lower B2B data services revenue, and lower agriculture and consumer goods margins driven by the divestiture of non-core assets. These factors were partially offset by continued internet and security and automation subscriber growth and higher internet revenue per customer.

**Operating expenses – TTech segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 <br>(restated) | Change | **2025** | 2024 <br>(restated) | Change |
| Goods and services purchased<sup>1</sup> | **1726** | 1749 | (1)% | **5179** | 5120 | 1% |
| Employee benefits expense<sup>1</sup> | **526** | 642 | (18)% | **1685** | 2002 | (16)% |
| TTech operating expenses | **2252** | 2391 | (6)% | **6864** | 7122 | (4)% |

---

1 Includes restructuring and other costs.

TTech operating expenses decreased by $139 million in the third quarter of 2025 and $258 million in the first nine months of 2025. See *TTech Adjusted EBITDA* below for further details.

**EBITDA – TTech segment**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 |  | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |  |
| ($ in millions, except margins) | **2025** | 2024<br> (restated) | Change |  | **2025** | 2024<br> (restated) | Change |  |
| EBITDA | **1625** | 1595 | 2 | % | **4744** | 4484 | 6 | % |
| Add restructuring and other costs included in EBITDA | **60** | 55 | n/m |  | **194** | 327 | n/m |  |
| Adjusted EBITDA | **1685** | 1650 | 2 | % | **4938** | 4811 | 3 | % |
| EBITDA margin<sup>1</sup> (%) | **41.9** | 39.9 | 2.0 | pts. | **40.9** | 38.6 | 2.3 | pts. |
| Adjusted EBITDA margin<sup>1</sup> (%) | **43.4** | 41.3 | 2.1 | pts. | **42.5** | 41.4 | 1.1 | pts. |

---

1 These are non-GAAP and other specified financial measures. See *Section 11.1 Non-GAAP and other specified financial measures*.

TTech EBITDA increased by $30 million or 2% in the third quarter of 2025 and $260 million or 6% in the first nine months of 2025. In addition to the growth drivers discussed within *TTech Adjusted EBITDA* below, EBITDA also reflected a reduction in restructuring and other costs of $133 million in the first nine months of 2025, primarily related to prior year investments in cost efficiency and effectiveness programs, inclusive of real estate rationalization.

TTech Adjusted EBITDA increased by $35 million or 2% in the third quarter of 2025 reflecting: (i) cost reduction efforts, including workforce reductions, and increased adoption of TELUS Digital's solutions across TTech operations, resulting in competitive benefits given the lower cost structure in TELUS Digital, as well as reductions in marketing and administrative costs; (ii) mobile, residential internet, and security and automation subscriber growth; and (iii) higher residential internet revenue per customer. These factors were partially offset by: (i) lower mobile phone ARPU; (ii) lower mobile equipment margins; (iii) lower Other income; (iv) lower agriculture and consumer goods margins from the divestiture of non-core assets; (v) declining fixed legacy margins; and (vi) increased costs of subscription-based licences and cloud usage. TTech Adjusted EBITDA increased by $127 million or 3% in the first nine months of 2025 due to the same factors as the third quarter, with the exception of higher Other income partially offset by higher bad debt expense.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

TTech Adjusted EBITDA margin increased by 2.1 percentage points in the third quarter of 2025 and 1.1 percentage points in the first nine months of 2025. These improvements were largely driven by our cost efficiency and effectiveness programs as described above.

**Adjusted EBITDA less capital expenditures – TTech segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 <br>(restated) | Change | **2025** | 2024 <br>(restated) | Change |
| Adjusted EBITDA | **1685** | 1650 | 2% | **4938** | 4811 | 3% |
| Capital expenditures | **(570)** | (597) | (5)% | **(1676)** | (1873) | (11)% |
| Adjusted EBITDA less capital expenditures<sup>1</sup> | **1115** | 1053 | 6% | **3262** | 2938 | 11% |

---

1 See *Section 11.1 Non-GAAP and other specified financial measures*.

TTech Adjusted EBITDA less capital expenditures increased by $62 million in the third quarter of 2025 and $324 million in the first nine months of 2025. See *Section 7.3* for further discussion of capital expenditures.

**EBIT – TTech segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 <br>(restated) | Change | **2025** | 2024 <br>(restated) | Change |
| EBITDA | **1625** | 1595 | 2% | **4744** | 4484 | 6% |
| Depreciation | **(529)** | (537) | (1)% | **(1593)** | (1687) | (6)% |
| Amortization of intangible assets | **(224)** | (220) | 2% | **(702)** | (678) | 4% |
| EBIT<sup>1</sup> | **872** | 838 | 4% | **2449** | 2119 | 16% |

---

1 See *Section 11.1 Non-GAAP and other specified financial measures*.

TTech EBIT increased by $34 million in the third quarter of 2025 and $330 million in the first nine months of 2025, in line with the increases in EBITDA. TTech depreciation decreased by $8 million in the third quarter of 2025 and $94 million in the first nine months of 2025, largely attributable to lower real estate rationalization. TTech amortization increased by $4 million in the third quarter of 2025 and $24 million in the first nine months of 2025, primarily from increased additions of software assets.

**5.5** TELUS health segment

**TELUS Health trends**

The trend of growth in health services revenues has been driven by growth in our employee and family assistance programs (EFAP), following our acquisition of several businesses globally throughout 2024 as well as Workplace Options in May 2025. It also reflects continued organic growth in our existing health offerings, driven by increased adoption and expansion of our digital health solutions and the growing member base across our health services, which include: (i) employer solutions: provides physical, mental and financial well-being solutions focused on the global employer segment, including EFAP, total mental health, consulting and TELUS Health Wellbeing; (ii) payor and provider solutions: the payor business encompasses both the public and private sectors (health benefits management, e-claims, patient health records and public health managed services) and the provider business includes pharmacy software solutions, collaborative health medical records and virtual pharmacy; (iii) retirement and benefits solutions: work to improve the financial health and well-being of organizations and individuals with sustainable and flexible pensions and benefits administration and retirements solutions; (iv) TELUS Health care centres: oversees clinic operations and transformation, as well as medical and mental health clinical delivery; and (v) consumer health: offers market leading solutions for primary care, pet care, aging in place and chronic disease management. On May 1, 2025, we acquired Workplace Options, a global provider of integrated employee well-being solutions. This furthers TELUS Health's practice of partnering with providers, digital health organizations, health plans and employers to create a more robust and localized offering executed at a global scale, now covering more than 200 countries and territories. Growth in the number of lives covered is largely driven by the expansion of our EFAP including the acquisition of Workplace Options and their associated healthcare lives covered.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**TELUS Health operating indicator**

---

| | | | |
|:---|:---|:---|:---|
| At September 30 | **2025** | 2024 | Change |
| Healthcare lives covered<sup>1</sup> (millions) | **160.6** | 76.0 | n/m |

---

1 During the second quarter of 2025, we added 79.3 million healthcare lives covered as a result of the Workplace Options acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;· **Healthcare lives covered** were 160.6 million as of the end of the third quarter of 2025, an increase
 of 84.6 million over the past 12 months, primarily due to the addition of 79.3 million
 lives covered from our second quarter acquisition of Workplace Options and a prospective
 change to the definition of healthcare lives covered to include clients who utilize TELUS
 Health services indirectly. Organically, healthcare lives covered increased mainly reflecting
 robust growth in our EFAP across all of our operating regions, in addition to continued demand
 for virtual solutions.

**Operating revenues and other income – TELUS health segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Health services | **516** | 436 | 18% | **1500** | 1294 | 16% |
| Health equipment | **1** | 3 | (67)% | **4** | 10 | (60)% |
| Operating revenues (arising from contracts with customers) | **517** | 439 | 18% | **1504** | 1304 | 15% |
| Other income | **10** | 1 | n/m | **11** | 2 | n/m |
| External Operating revenues and other income | **527** | 440 | 20% | **1515** | 1306 | 16% |
| Intersegment revenues | **1** | 2 | n/m | **5** | 6 | n/m |
| TELUS Health Operating revenues and other income | **528** | 442 | 19% | **1520** | 1312 | 16% |

---

TELUS Health Operating revenues and other income increased by $86 million in the third quarter of 2025 and $208 million in the first nine months of 2025.

Across TELUS Health, the reported rates of revenue growth were positively impacted by the strengthening of the U.S. dollar, the British pound and the European euro against the Canadian dollar compared to the same periods in the prior year.

Our **health services** revenues increased by $80 million in the third quarter of 2025 and $206 million in the first nine months of 2025, driven by: (i) global business acquisitions in employer solutions, including the acquisition of Workplace Options in May 2025; and (ii) growth in payor and provider solutions, with strong performance in collaborative health records and an increase in recurring revenue related to our electronic medical records and virtual pharmacy solutions. This was offset by a decline in retirement and benefits solutions.

**Health equipment** revenues decreased by $2 million in the third quarter of 2025 and $6 million in the first nine months of 2025, due to lower revenue from a pharmacy hardware upgrade program in our payor and provider solutions vertical.

**Other income** increased by $9 million in both the third quarter and first nine months of 2025, due to a one-time item recorded in retirement and benefits solutions.

**Intersegment revenues** represent services provided to the TTech segment that are eliminated upon consolidation, together with the associated TTech expenses.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Direct contribution – TELUS health segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| **Revenues** |  |  |  |  |  |  |
| Service | **516** | 436 | 18% | **1500** | 1294 | 16% |
| Equipment | **1** | 3 | (67)% | **4** | 10 | (60)% |
| Operating revenues (arising from contracts with customers) | **517** | 439 | 18% | **1504** | 1304 | 15% |
| **Expenses** |  |  |  |  |  |  |
| Direct expenses | **249** | 200 | 25% | **717** | 616 | 16% |
| Direct contribution | **268** | 239 | 12% | **787** | 688 | 14% |

---

The direct expenses included in the direct contribution calculations in the preceding table represent components of the Goods and services purchased and Employee benefits expense totals included in the table below and have been calculated in accordance with the accounting policies used to prepare the totals presented in the financial statements. The nature of the direct expenses are mainly counsellor network costs, clinicians, implementation and support costs. TELUS Health direct contribution increased by $29 million in the third quarter of 2025 and $99 million in the first nine months of 2025, reflecting: (i) revenue growth as described in the revenue section; and (ii) cost reduction efforts, driven by digital transformation programs which have lowered our cost to serve.

**Operating expenses – TELUS health segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Goods and services purchased<sup>1</sup> | **198** | 164 | 21% | **572** | 532 | 8% |
| Employee benefits expense<sup>1</sup> | **251** | 214 | 17% | **718** | 632 | 14% |
| TELUS Health operating expenses | **449** | 378 | 19% | **1290** | 1164 | 11% |

---

1 Includes restructuring and other costs.

TELUS Health operating expenses increased by $71 million in the third quarter of 2025 and $126 million in the first nine months of 2025, in line with revenue growth. See *TELUS Health direct contribution* above and *TELUS Health Adjusted EBITDA* below for further details.

**EBITDA – TELUS** **health segment**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 |  | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |  |
| ($ in millions, except margins) | **2025** | 2024 | Change |  | **2025** | 2024 | Change |  |
| EBITDA | **79** | 64 | 22 | % | **230** | 148 | 55 | % |
| Add restructuring and other costs included in EBITDA | **12** | 9 | n/m |  | **28** | 54 | n/m |  |
| Adjusted EBITDA | **91** | 73 | 24 | % | **258** | 202 | 27 | % |
| EBITDA margin<sup>1</sup> (%) | **14.9** | 14.5 | 0.4 | pts. | **15.1** | 11.3 | 3.8 | pts. |
| Adjusted EBITDA margin<sup>1</sup> (%) | **17.1** | 16.5 | 0.6 | pts. | **16.9** | 15.4 | 1.5 | pts. |

---

1 These are non-GAAP and other specified financial measures. See *Section 11.1 Non-GAAP and other specified financial measures*.

TELUS Health EBITDA increased by $15 million or 22% in the third quarter of 2025 and $82 million or 55% in the first nine months of 2025. TELUS Health Adjusted EBITDA increased by $18 million or 24% in the third quarter of 2025 and $56 million or 27% in the first nine months of 2025, reflecting revenue growth and cost reduction efforts as described in the direct contribution section, as well as lower organic net labour costs and continued realization of acquisition integration synergies. These factors were partially offset by higher indirect costs related to: (i) global business acquisitions; and (ii) the scaling of our digital and security capabilities, inclusive of increased subscription-based licences, contractor and cloud usage costs. The difference in growth rates between EBITDA and Adjusted EBITDA is attributable to higher restructuring and other costs in the third quarter of 2025, and lower restructuring and other costs in the first nine months of 2025.

---

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

TELUS Health Adjusted EBITDA margin increased by 0.6 percentage points in the third quarter of 2025 and 1.5 percentage points in the first nine months of 2025. While this improvement was largely driven by our lower cost to serve and the continued realization of acquisition integration synergies, it was partially offset by costs incurred to scale our digital and security capabilities and one-time investments in post-acquisition integration, as previously described.

**Adjusted EBITDA less capital expenditures – TELUS health segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Adjusted EBITDA | **91** | 73 | 24% | **258** | 202 | 27% |
| Capital expenditures | **(56)** | (53) | 6% | **(159)** | (147) | 8% |
| Adjusted EBITDA less capital expenditures<sup>1</sup> | **35** | 20 | 75% | **99** | 55 | 80% |

---

1 See *Section 11.1 Non-GAAP and other specified financial measures*.

TELUS Health Adjusted EBITDA less capital expenditures increased by $15 million in the third quarter of 2025 and $44 million in the first nine months of 2025. See *Section 7.3* for further discussion of capital expenditures.

**EBIT – TELUS health segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| EBITDA | **79** | 64 | 22% | **230** | 148 | 55% |
| Depreciation | **(21)** | (14) | 50% | **(44)** | (67) | (34)% |
| Amortization of intangible assets | **(105)** | (88) | 19% | **(299)** | (268) | 12% |
| EBIT<sup>1</sup> | **(47)** | (38) | 24% | **(113)** | (187) | (40)% |

---

1 See *Section 11.1 Non-GAAP and other specified financial measures*.

TELUS Health EBIT decreased by $9 million in the third quarter of 2025 and increased by $74 million in the first nine months of 2025. TELUS Health depreciation increased by $7 million in the third quarter of 2025 due to depreciation from business acquisitions. TELUS Health depreciation decreased by $23 million in the first nine months of 2025, primarily driven by lower real estate rationalization. TELUS Health amortization increased by $17 million in the third quarter of 2025 and $31 million in the first nine months of 2025, largely from amortization from business acquisitions.

**5.6** TELUS digital experience segment

**TELUS Digital trends**

The historical trend over the past eight quarters in TELUS Digital revenue reflects changes in service volume demand from our existing clients and services provided to new clients. During 2024 and in the first nine months of 2025, we observed a stabilization in service volume demand after experiencing a notable reduction which became more pronounced beginning in the second quarter of 2023, arising from some of our larger technology clients, where the service volume reduction was more significant than expected, particularly in Europe. At the same time, several of our key clients also began to reduce their costs, which resulted in delays and near-term reductions in spending commitments. Intersegment revenues, which represents TELUS Digital's largest single revenue source, have continued to increase year-over-year, comprising approximately 26% of total TELUS Digital revenues.

Goods and services purchased and Employee benefits expense increased, reflecting: (i) the expansion of our TELUS Digital team member base including higher training costs to service customer requirements as well as increased complexity from both existing and new customers; (ii) higher average salaries and wages over time, attrition and absenteeism; (iii) restructuring and other costs related to cost efficiency programs; (iv) changes in external labour requirements to support the growth in our digital services business; (v) changes in our crowdsourced-enabled workforce to support our AI and data solutions service line; (vi) increases in our software licensing costs associated with our growing team member base; and (vii) increases in administrative expenses and facility costs to support overall business growth. Beginning in the second quarter of 2023, Employee benefits expense was positively impacted by employee-related cost efficiency initiatives resulting in decreases in our team member count in certain regions in response to the reduction in service volume demand from some clients, and a favourable mix of labour sourced from lower-cost jurisdictions.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

Depreciation and amortization has increased, reflecting growth in capital assets such as facilities, platform development in our AI and data solutions service line, and capital costs to maintain our existing operations, partially offset by the timing of full depreciation or amortization of existing capital assets.

**TELUS Digital operating indicators**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| **Operating revenues by industry vertical** |  |  |  |  |  |  |
| Tech and games | **391** | 376 | 4% | **1217** | 1127 | 8% |
| Communications and media | **258** | 223 | 16% | **748** | 655 | 14% |
| eCommerce and fintech | **75** | 81 | (7)% | **236** | 262 | (10)% |
| Healthcare | **69** | 66 | 5% | **211** | 196 | 8% |
| Banking, financial services and insurance | **64** | 56 | 14% | **179** | 158 | 13% |
| All others<sup>1</sup> | **100** | 92 | 9% | **294** | 274 | 7% |
|  | **957** | 894 | 7% | **2885** | 2672 | 8% |
| **Operating revenues by geographic region** |  |  |  |  |  |  |
| Europe | **263** | 263 | —% | **848** | 782 | 8% |
| North America | **273** | 242 | 13% | **813** | 742 | 10% |
| Asia-Pacific<sup>2</sup> | **241** | 212 | 14% | **687** | 648 | 6% |
| Central America and others<sup>2</sup> | **180** | 177 | 2% | **537** | 500 | 7% |
|  | **957** | 894 | 7% | **2885** | 2672 | 8% |

---

1 All others includes, among others, travel and hospitality, energy and utilities, retail, and consumer packaged goods industry verticals.<br> 2 Effective for the first quarter of 2025, Asia-Pacific includes Africa geographic region and Central America and others includes South America geographic region. Comparative information has been restated to conform with the current period presentation.<br>

Across all of our verticals, the reported rates of revenue growth were positively impacted by the strengthening of both the U.S. dollar and the European euro against the Canadian dollar compared to the same period in the prior year.

Revenue from our tech and games industry vertical increased by $15 million in the third quarter of 2025 and $90 million in the first nine months of 2025, primarily due to higher revenue from certain social media clients and certain other technology clients, partially offset by a decrease in revenue from other clients within this industry vertical. Revenue from our communications and media industry vertical increased by $35 million in the third quarter of 2025 and $93 million in the first nine months of 2025, driven primarily by more services provided to the TTech segment, partially offset by lower service revenue from certain other telecommunication clients. Revenue from our eCommerce and fintech industry vertical decreased by $6 million in the third quarter of 2025 and $26 million in the first nine months of 2025, due to a decline in service volumes. Revenue from our healthcare industry vertical increased by $3 million in the third quarter of 2025 and $15 million in the first nine months of 2025, primarily due to additional services provided to the TELUS health segment and certain other healthcare clients. Revenue from our banking, financial services and insurance industry vertical increased by $8 million in the third quarter of 2025 and $21 million in the first nine months of 2025, primarily due to growth from a variety of North American and global financial services clients. All other verticals increased by $8 million in the third quarter of 2025 and $20 million in the first nine months of 2025, due to higher revenue across various client accounts.

We serve our clients, who are primarily domiciled in North America and Europe, from multiple delivery locations across various geographic regions. In addition, our AI and data solutions service line clients are largely supported by crowdsourced contractors that are globally dispersed and not limited to the physical locations of our delivery centres. During both the third quarter and first nine months of 2025, we benefited from the strengthening of both the U.S. dollar and the European euro against the Canadian dollar, which resulted in a favourable foreign currency impact on our TELUS Digital Operating revenues. The table above presents the revenue generated in each geographic region, based on the location of our delivery centre or where the services were provided from, for the periods presented.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Operating revenues and other income – TELUS digital experience segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Operating revenues (arising from contracts with customers) | **708** | 675 | 5% | **2139** | 2023 | 6% |
| Other income | **—** | 3 | (100)% | **—** | 85 | (100)% |
| External Operating revenues and other income | **708** | 678 | 4% | **2139** | 2108 | 1% |
| Intersegment revenues | **249** | 219 | 14% | **746** | 649 | 15% |
| TELUS Digital Operating revenues and other income | **957** | 897 | 7% | **2885** | 2757 | 5% |

---

TELUS Digital Operating revenues and other income increased by $60 million in the third quarter of 2025 and $128 million in the first nine months of 2025.

Our **Operating revenues (arising from contracts with customers)** increased by $33 million in the third quarter of 2025 and $116 million in the first nine months of 2025, primarily attributable to: (i) the strengthening of both the U.S. dollar and the European euro against the Canadian dollar, which resulted in a favourable foreign currency impact on our TELUS Digital operating results; (ii) growth in services provided to existing clients, including certain social media clients; and (iii) new clients added since the same period in the prior year. These increases were partially offset by lower revenues earned from certain technology and eCommerce clients.

**Other income** decreased by $3 million in the third quarter of 2025 and $85 million in the first nine months of 2025, due to the prior period revision in our estimates of certain performance-based criteria associated with our provisions for written put options, which resulted in a reduction of our provisions for written put options.

**Intersegment revenues** represent services provided to the TTech and TELUS health segments. Such revenues are eliminated upon consolidation, together with the associated expenses, as well as the TELUS digital experience segment margin on costs capitalized within the TTech segment. Services have been provided to the TTech and TELUS health segments which include capital expenditures for software and contract acquisition costs that are deferred and amortized.

The increase in intersegment revenues in both the third quarter and first nine months of 2025 reflects the competitive benefits TELUS derives from the lower cost structure in the TELUS digital experience segment and the significant amounts of value-generating digital, customer experience, telecommunications, health and consumer goods solutions received, while maintaining control over the quality of the associated services delivered and, on a consolidated basis, retaining the margin that a third-party vendor would otherwise earn.

**Operating expenses – TELUS digital experience segment**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Goods and services purchased<sup>1</sup> | **226** | 169 | 34% | **588** | 483 | 22% |
| Employee benefits expense<sup>1</sup> | **663** | 619 | 7% | **2048** | 1802 | 14% |
| TELUS Digital operating expenses | **889** | 788 | 13% | **2636** | 2285 | 15% |

---

1 Includes restructuring and other costs.

TELUS Digital operating expenses increased by $101 million in the third quarter of 2025 and $351 million in the first nine months of 2025. See *TELUS Digital Adjusted EBITDA* below for further details.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**EBITDA – TELUS digital experience segment**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions, except margins) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| EBITDA | **68** | 109 | (37) | **249** | 472 | (47) |
| Add restructuring and other costs included in EBITDA | **37** | 22 | n/m | **117** | 44 | n/m |
| Adjusted EBITDA<sup>1</sup> | **105** | 131 | (18 | **366** | 516 | (29 |
| EBITDA margin<sup>2</sup> (%) | **7.1** | 12.1 | (5.0) | **8.7** | 17.1 | (8.4) |
| Adjusted EBITDA margin<sup>2</sup> (%) | **11.1** | 14.5 | (3.4 | **12.7** | 18.7 | (6.0 |

---

1 For certain metrics, there are definitional differences between TELUS and TELUS Digital reporting. These differences largely arise from TELUS Digital adopting definitions consistent with practice in its industry.<br> 2 These are non-GAAP and other specified financial measures. See *Section 11.1 Non-GAAP and other specified financial measures*.<br>

TELUS Digital EBITDA decreased by $41 million or 37% in the third quarter of 2025 and $223 million or 47% in the first nine months of 2025. TELUS Digital Adjusted EBITDA decreased by $26 million or 18% in the third quarter of 2025 and $150 million or 29% in the first nine months of 2025, while Adjusted EBITDA margin decreased by 3.4 percentage points in the third quarter of 2025 and 6.0 percentage points in the first nine months of 2025. The decrease in Adjusted EBITDA in the third quarter of 2025 was primarily due to an increase in salaries and benefits and goods and services purchased outpacing revenue growth, partially offset by lower share-based compensation. The decrease in Adjusted EBITDA in the first nine months of 2025 was largely due to Other income generated in the prior year's comparative period associated with a reduction of our provisions for written put options, in addition to the same factors as the third quarter.

**Adjusted EBITDA less capital expenditures – TELUS digital experience segment**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Adjusted EBITDA | **105** | 131 | (18)% | **366** | 516 | (29)% |
| Capital expenditures | **(42)** | (30) | 40% | **(126)** | (96) | 31% |
| Adjusted EBITDA less capital expenditures<sup>1</sup> | **63** | 101 | (38)% | **240** | 420 | (43)% |

---

1 See *Section 11.1 Non-GAAP and other specified financial measures*.

TELUS Digital Adjusted EBITDA less capital expenditures decreased by $38 million in the third quarter of 2025 and $180 million in the first nine months of 2025. See *Section 7.3* for further discussion of capital expenditures.

**EBIT – TELUS digital experience segment**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ in millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| EBITDA | **68** | 109 | (37)% | **249** | 472 | (47)% |
| Depreciation | **(71)** | (46) | 54% | **(177)** | (141) | 26% |
| Amortization of intangible assets | **(61)** | (63) | (3)% | **(192)** | (184) | 4% |
| Impairment of goodwill | **—** |  | n/m | **(500)** |  | n/m |
| EBIT<sup>1</sup> | **(64)** |  | n/m | **(620)** | 147 | n/m |

---

1 See *Section 11.1 Non-GAAP and other specified financial measures*.

TELUS Digital EBIT decreased by $64 million in the third quarter of 2025, and $767 million in the first nine months of 2025. The decrease was primarily attributable to a goodwill impairment charge recorded in the second quarter of 2025, as the recoverable amount of the TELUS digital experience cash-generating unit was less than its carrying amount. Excluding this impairment, the decrease in EBIT was in line with the decrease in EBITDA, in addition to higher depreciation from increased real estate rationalization.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**6.** Changes in financial position

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| | | | | |
|:---|:---|:---|:---|:---|
| Financial position at: | **Sept. 30** | Dec. 31 |  |  |
| ($ millions) | **2025** | 2024 | Change | Change includes: |
| **Current assets** |  |  |  |  |
| Cash and temporary investments, net | **1827** | 869 | 958 | See *Section 7 Liquidity and capital resources* |
| Accounts receivable | **3644** | 3689 | (45) | An improvement in days sales outstanding, as well as a decrease in accounts receivable arising from sales volume from our dealer and retail channels and lower unbilled customer finance receivables |
| Income and other taxes receivable | **74** | 146 | (72) | Instalments to date are less than the expense |
| Inventories | **455** | 629 | (174) | A decrease mainly driven by a reduction in new handsets, and inventories at our dealer and retail channels |
| Contract assets | **445** | 465 | (20) | Refer to description in non-current contract assets |
| Costs incurred to obtain or fulfill contracts with customers | **395** | 366 | 29 | An increase driven by initiatives increasing commissions |
| Prepaid maintenance and other | **511** | 403 | 108 | An increase driven by the annual prepayment of maintenance contracts, statutory employee benefits, and wireless spectrum license fees |
| Current derivative assets | **37** | 65 | (28) | A decrease primarily due to a smaller spread between hedged foreign exchange rates and actual foreign exchange rates at the end of the period. |
| **Current liabilities** |  |  |  |  |
| Short-term borrowings | **922** | 922 |  | See *Note 22* of the interim consolidated financial statements |
| Accounts payable and accrued liabilities | **3556** | 3630 | (74) | A decrease primarily reflecting a reduction in accrued liabilities, liabilities associated with payroll and other employee-related accruals, and trade accounts payable, largely offset by an increase in interest payable. See *Note 23* of the interim consolidated financial statements |
| Income and other taxes payable | **153** | 142 | 11 | Instalments to date are less than the expense |
| Dividends payable | **639** | 605 | 34 | Effects of an increase in the dividend rate and number of shares outstanding |
| Advance billings and customer deposits | **977** | 1039 | (62) | A decrease in advanced billings primarily due to lower inventory across our dealer and retail distribution channels. See *Note 24* of the interim consolidated financial statements |
| Provisions | **293** | 241 | 52 | An increase primarily due to the reclassification of long-term written put options and contingent consideration, and National Contribution Fund, partially offset by a decrease in employee-related provisions |
| Current maturities of long-term debt | **3200** | 3246 | (46) | A decrease due to the repayment of $800 million Notes, Series CQ, in January 2025, a decrease in commercial paper outstanding, maturity of TELUS Communications Inc. debentures and repayment of the TELUS International (Cda) Inc. credit facility; partially offset by an increase due to the reclassification of long-term debt related to the upcoming maturity of $600 million Notes, Series CV, in March 2026 and the upcoming maturity of $800 million Notes, Series CZ, in July 2026 |
| Current derivative liabilities | **13** | 11 | 2 | An increase in the notional amount of U.S. hedging items. |
| **Working capital** <br>(Current assets subtracting Current liabilities) | **(2365)** | (3204) | 839 | TELUS normally has a negative working capital position. See *Financing and capital structure management plans* in *Section 4.3* and *Note 4(b)* of the interim consolidated financial statements*.* |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

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| | | | | |
|:---|:---|:---|:---|:---|
| Financial position at: | **Sept. 30** | Dec. 31 |  |  |
| ($ millions) | **2025** | 2024 | Change | Change includes: |
| **Non-current assets** |  |  |  |  |
| Property, plant and equipment, net | **17673** | 17337 | 336 | See *Capital expenditures* in *Section 7.3 Cash used by investing activities* and *Depreciation* in *Section 5.3 Consolidated operations* |
| Intangible assets, net | **20460** | 20593 | (133) | See *Capital expenditures* in *Section 7.3 Cash used by investing activities* and *Amortization of intangible assets* in *Section 5.3 Consolidated operations* |
| Goodwill, net | **10477** | 10564 | (87) | A decrease due to an impairment of goodwill partially offset by business acquisitions and fluctuations in foreign exchange rates. See *Note 18* of the interim consolidated financial statements |
| Contract assets | **257** | 325 | (68) | A decrease driven by a lower volume of subsidized devices offset by our Bring-It-Back and TELUS Easy Payment programs |
| Other long-term assets | **2608** | 2577 | 31 | An increase primarily driven by portfolio investments, costs incurred to obtain or fulfill contracts with customers and investment in real estate joint ventures, partially offset by unbilled customer finance receivables, investments in associates and prepaid maintenance. |
| **Non-current liabilities** |  |  |  |  |
| Provisions | **729** | 686 | 43 | An increase primarily due to the reclassification of the National Contribution Fund offset by the reclassification of long-term written put options and contingent consideration |
| Long-term debt | **25789** | 25608 | 181 | See *Section 7.4 Cash used by financing activities* |
| Other long-term liabilities | **933** | 869 | 64 | An increase primarily due to the increase in deferred revenues, as well as increases in derivative liabilities arising from strengthening of the Canadian dollar relative to the U.S. dollar and deferred capital expenditure government grants |
| Deferred income taxes | **4137** | 4231 | (94) | An overall decrease in temporary differences between the accounting and tax basis of assets and liabilities. |
| **Owners' equity** |  |  |  |  |
| Common equity | **15873** | 15620 | 253 | See *Consolidated statements of changes in owners' equity* in the interim consolidated financial statements |
| Non-controlling interests | **1649** | 1178 | 471 | See *Consolidated statements of changes in owners' equity* in the interim consolidated financial statements. |

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**7.** Liquidity and capital resources

This section contains forward-looking statements, including those in respect of our TELUS Corporation Common Share dividend payout ratio and net debt to EBITDA – excluding restructuring and other costs ratio. See *Caution regarding forward-looking statements* at the beginning of this MD&A.

**7.1** Overview

Our capital structure financial policies and financing and capital structure management plans are described in *Section 4.3*.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Cash flows**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Cash provided by operating activities | **1493** | 1432 | 61 | **3736** | 3770 | (34) |
| Cash used by investing activities | **(660)** | (782) | 122 | **(2355)** | (3029) | 674 |
| Cash used by financing activities | **(2688)** | (763) | (1925) | **(423)** | (791) | 368 |
| Increase (decrease) in Cash and temporary investments, net | **(1855)** | (113) | (1742) | **958** | (50) | 1008 |
| Cash and temporary investments, net, beginning of period | **3682** | 927 | 2755 | **869** | 864 | 5 |
| Cash and temporary investments, net, end of period | **1827** | 814 | 1013 | **1827** | 814 | 1013 |

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**7.2** Cash provided by operating activities

**Analysis of changes in cash provided by operating activities**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Operating revenues and other income (see *Section 5.3*) | **5106** | 5099 | 7 | **15245** | 15005 | 240 |
| Goods and services purchased (see *Section 5.3*) | **(1942)** | (1868) | (74) | **(5647)** | (5503) | (144) |
| Employee benefits expense (see *Section 5.3*) | **(1411)** | (1475) | 64 | **(4422)** | (4432) | 10 |
| Restructuring and other costs, net of disbursements | **18** | 21 | (3) | **10** | 5 | 5 |
| Share-based compensation expense, net of payments | **42** | 44 | (2) | **121** | 110 | 11 |
| Net employee defined benefit plans expense | **16** | 16 |  | **45** | 50 | (5) |
| Employer contributions to employee defined benefit plans | **(6)** | (2) | (4) | **(16)** | (16) |  |
| Gain on contributions of real estate to joint ventures | **(13)** | (49) | 36 | **(21)** | (102) | 81 |
| (Income) loss from equity accounted investments | **1** | 3 | (2) | **(1)** | 13 | (14) |
| Gain on purchase of long-term debt (see *Section 5.3*) | **(222)** |  | (222) | **(222)** |  | (222) |
| Unrealized changes in VPPAs (see *Section 5.3*) | **—** | 125 | (125) | **—** | 228 | (228) |
| Interest paid | **(399)** | (362) | (37) | **(1078)** | (1011) | (67) |
| Interest received | **16** | 9 | 7 | **38** | 30 | 8 |
| Income taxes paid, net of recoveries received | **(77)** | (63) | (14) | **(374)** | (258) | (116) |
| Other operating working capital changes | **364** | (66) | 430 | **58** | (349) | 407 |
| Cash provided by operating activities | **1493** | 1432 | 61 | **3736** | 3770 | (34) |

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Cash provided by operating activities increased by $61 million in the third quarter of 2025 and decreased by $34 million in the first nine months of 2025.

· Gain on contributions of real estate to joint ventures decreased by $36 million in the third quarter of 2025 and $81 million
in the first nine months of 2025, as we had contributed more properties to real estate joint ventures in the prior periods.

· Interest paid increased by $37 million in the third quarter of 2025 and $67 million in the first nine months of 2025, largely due
to: (i) the issuance of $700 million of notes in the third quarter of 2024; (ii) interest paid on notes purchased during the tender offer
process described in *Section 1.3*; and (iii) increased draws on the securitization trust.

· Income taxes paid, net of recoveries received, increased by $14 million in the third quarter of 2025 and $116 million in the
first nine months of 2025, primarily due to greater required income tax instalments attributable to greater income before income taxes.

· For a discussion of other operating working capital changes, see *Section 6 Changes in financial position* and *Note 31(a)* of the interim consolidated financial statements.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**7.3** Cash used by investing activities

**Analysis of changes in cash used by investing activities**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Cash payments for capital assets, excluding spectrum licences | **(634)** | (679) | 45 | **(1886)** | (2157) | 271 |
| Cash payments for spectrum licences | **—** |  |  | **—** | (620) | 620 |
| Cash payments for acquisitions, net | **(3)** | (91) | 88 | **(464)** | (258) | (206) |
| Advances to, and investment in, real estate joint ventures and associates | **(1)** | (7) | 6 | **(1)** | (12) | 11 |
| Real estate joint venture receipts | **—** | 2 | (2) | **1** | 5 | (4) |
| Proceeds on disposition | **3** |  | 3 | **76** | 21 | 55 |
| Investment in portfolio investments and other | **(25)** | (7) | (18) | **(81)** | (8) | (73) |
| Cash used by investing activities | **(660)** | (782) | 122 | **(2355)** | (3029) | 674 |

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Cash used by investing activities decreased by $122 million in the third quarter of 2025 and $674 million in the first nine months of 2025.

· The decrease in Cash payments for capital assets, excluding spectrum licences in both the third quarter and first nine months of 2025
was primarily composed of:

&nbsp;&nbsp;&nbsp;&nbsp;· A reduction in capital expenditures of $16 million in the third quarter of 2025 and $167 million in the first nine months of 2025
(see *Capital expenditure measures* table and discussion below).

· Lower capital expenditure payments of $29 million in the third quarter of 2025 and $104 million in the first nine months of 2025
with respect to payment timing differences.

· Cash payments for spectrum licences decreased by $620 million in the first nine months of 2025 as cash payments for spectrum licences
made in 2024 were related to the 3800 MHz spectrum auction.

· Cash payments for acquisitions, net, were $88 million lower in the third quarter of 2025 as we made greater payments in the third
quarter of 2024 for individually immaterial business acquisitions that were complementary to our existing lines of business. Cash payments
for acquisitions, net, were $206 million higher in the first nine months of 2025, primarily driven by cash payments for the acquisition
of Workplace Options in the second quarter of 2025.

· Proceeds on disposition were $3 million higher in the third quarter of 2025. Proceeds on disposition were $55 million higher in the
first nine months of 2025, driven by the divestiture of non-core assets as planned, which will allow us to enhance our strategic focus
on core businesses. This compares to the sale of associates in the comparative period.

· Investment in portfolio investments and other increased by $18 million
in the third quarter of 2025, primarily as a result of investments in a larger number of portfolio investments. Investment in portfolio
investments and other increased by $73 million in the first nine months of 2025, largely attributable to the impact of the receipt of
deferred capital expenditure government grants in the comparative period and a decline in capital inventory in the comparative period.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Capital expenditure measures**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ millions, except capital expenditure intensity) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| **Capital expenditures**<sup>1</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;TELUS technology solutions segment (TTech) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TTech operations<sup>2</sup> | **534** | 569 | (6) | **1611** | 1808 | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TTech real estate development | **36** | 28 | 29 | **65** | 65 |  |
|  | **570** | 597 | (5) | **1676** | 1873 | (11) |
| &nbsp;&nbsp;&nbsp;TELUS health segment (TELUS Health) | **56** | 53 | 6 | **159** | 147 | 8 |
| &nbsp;&nbsp;&nbsp;TELUS digital experience segment (TELUS Digital) | **42** | 30 | 40 | **126** | 96 | 31 |
| &nbsp;&nbsp;&nbsp;Eliminations | **(16)** | (12) | 33 | **(44)** | (32) | 38 |
| Consolidated | **652** | 668 | (2 | **1917** | 2084 | (8 |
| TTech capital expenditure intensity<sup>3</sup> (%) | **14** | 14 | &nbsp;&nbsp;&nbsp;&nbsp;— | **14** | 16 | (2) |
| TELUS Health capital expenditure intensity<sup>3</sup> (%) | **11** | 12 | (1) | **10** | 11 | (1) |
| TELUS Digital capital expenditure intensity<sup>3</sup> (%) | **4** | 3 | &nbsp;&nbsp;&nbsp;&nbsp;1 | **4** | 3 | 1 |
| Consolidated capital expenditure intensity<sup>3</sup> (%) | **12** | 13 | (1) | **12** | 13 | (1) |

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| | |
|:---|:---|
| 1 | Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for. Consequently, capital expenditures differ from Cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated statements of cash flows. Refer to Note 31 of the interim consolidated financial statements for further information. |
| 2 | 2024 restated. |
| 3 | See Section 11.1 Non-GAAP and other specified financial measures. |

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**Consolidated capital expenditures** decreased by $16 million in the third quarter of 2025 and $167 million in the first nine months of 2025.

Capital expenditures in support of TTech operations were $35 million lower in the third quarter of 2025 and $197 million lower in the first nine months of 2025. These decreases primarily resulted from the planned slowdown of our fibre and wireless network builds and systems development and the planned transition of fibre builds to a partner-build model for brownfield and new growth markets. Our capital investments in TTech operations have enabled: (i) ongoing growth in our internet, TV and security and automation subscriber bases, as well as the connection of more premises to our fibre network; (ii) the extended coverage of our 5G network; and (iii) enhancement of our product and digital development to improve system capacity and reliability. By September 30, 2025, our 5G network covered approximately 32.9 million Canadians, representing approximately 89% of the population.

Capital expenditures in support of TTech real estate development increased by $8 million in the third quarter of 2025 and were unchanged in the first nine months of 2025. The increase in the third quarter of 2025 was driven by increased investments in TELUS Ocean<sup>TM</sup>, a mixed use development in Victoria, B.C.

TELUS Health capital expenditures increased by $3 million in the third quarter of 2025 and $12 million in the first nine months of 2025, driven by increased investments to support clinic expansions and business acquisitions. Our TELUS Health capital expenditures continue to invest in the expansion of our digital health product offerings and capabilities, as well as support for business integration.

TELUS Digital capital expenditures increased by $12 million in the third quarter of 2025 and $30 million in the first nine months of 2025, primarily due to higher investments in site builds in Asia-Pacific and Europe, as well as increased investments in our digital solutions service line.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**7.4** Cash used by financing activities

**Analysis of changes in cash** **used by financing activities**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-month periods ended September 30 | Three-month periods ended September 30 | Three-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 | Nine-month periods ended September 30 |
| ($ millions) | **2025** | 2024 | Change | **2025** | 2024 | Change |
| Dividends paid to holders of Common Shares | **(408)** | (384) | (24) | **(1215)** | (1174) | (41) |
| Issue (repayment) of short-term borrowings, net | **3** | (118) | 121 | **12** | 822 | (810) |
| Long-term debt issued | **1381** | 1294 | 87 | **9513** | 5083 | 4430 |
| Redemptions and repayment of long-term debt | **(4910)** | (1529) | (3381) | **(9948)** | (5480) | (4468) |
| Equity of subsidiary issued to non-controlling interest | **1261** |  | 1261 | **1261** |  | 1261 |
| Shares of subsidiary purchased from non controlling interests, net | **—** | (25) | 25 | **—** | (25) | 25 |
| Other | **(15)** | (1) | (14) | **(46)** | (17) | (29) |
| Cash used by financing activities | **(2688)** | (763) | (1925) | **(423)** | (791) | 368 |

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Cash used by financing activities increased by $1.9 billion in the third quarter of 2025 and decreased by $368 million in the first nine months of 2025.

**Dividends paid to holders of Common Shares**

Our dividend reinvestment and share purchase (DRISP) plan trustee acquired Common Shares from Treasury for the DRISP plan, rather than acquiring shares in the stock market. Effective with the dividends paid on October 1, 2019, we offered Common Shares from Treasury at a discount of 2%. Cash payments for dividends increased by $24 million in the third quarter of 2025 and $41 million in the first nine months of 2025, which reflected higher dividend rates under our dividend growth program (see *Section 4.3*) and an increase in the number of shares outstanding. During the third quarter of 2025, our DRISP plan trustee acquired Common Shares for $226 million.

In October 2025, we paid dividends of $413 million to the holders of Common Shares and the trustee acquired dividend reinvestment Common Shares from Treasury for $226 million, totalling $639 million.

**Issue (repayment) of short-term borrowings, net**

In the second quarter of 2024, we entered into an agreement with an arm's-length securitization trust (see *Section 7.7 Short-term borrowings*). During the first quarter of 2025, we drew down $0.4 billion. During the second quarter of 2025, we repaid $0.4 billion, including the effect of net-settled derivatives. This compares to the second quarter of 2024, where we drew short-term borrowings of $1.0 billion under the current securitization trust and repaid $0.1 billion of short-term borrowings under the previous trust. Additionally in the third quarter of 2024, we repaid $0.1 billion under the current securitization trust.

**Long-term debt issued and Redemptions and repayment of long-term debt**

In the third quarter of 2025, long-term debt issued increased by $87 million, while redemptions and repayment of long-term debt increased by $3.4 billion. These changes were primarily composed of:

· A net increase in commercial paper outstanding, including foreign exchange
effects, of $49 million to a balance of $1.0 billion (US$0.7 billion) at September 30, 2025, from a balance of $1.0 billion
(US$0.7 billion) at June 30, 2025. Our commercial paper program provides funds at a lower cost than our revolving credit facility
and is fully backstopped by the revolving credit facility (see *Section 7.6 Credit facilities*).

· The notes purchased during the tender offer process described in *Section 1.3*.

· The repayment of the TELUS International (Cda) Inc. credit facility in the
third quarter of 2025.

· The repayment upon maturity of $200 million TELUS Communications Inc. 8.80%
Series B Debentures, due September 2025.

For the first nine months of 2025, long-term debt issued increased by $4.4 billion, while redemptions and repayment of long-term debt increased by $4.5 billion. In addition to some activity from the third quarter of 2025, the change in balance for the first nine months of 2025 was primarily composed of:

· A net decrease in commercial paper outstanding, including foreign exchange
effects, of $0.4 billion from a balance of $1.4 billion (US$1.0 billion) at December 31, 2024.

· The repayment upon maturity of $800 million of 3.75% Notes, Series CQ,
due January 2025.

· The April 21, 2025 issuance of $1.1 billion of fixed-to-fixed rate junior
subordinated Series CAR notes initially bearing interest at 6.25% and $500 million of fixed-to-fixed rate junior subordinated Series CAS
notes initially bearing interest at 6.75%, both series maturing on July 21, 2055. The net proceeds were used for the repayment of outstanding
indebtedness, including the repayment of commercial paper, the reduction of cash amounts outstanding under an arm's-length securitization
trust, the repayment of TELUS revolving credit facility amounts outstanding, and for other general corporate purposes.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

· The $375 million re-opening of our fixed-to-fixed rate junior subordinated
notes, Series CAR and the $425 million re-opening of our fixed-to-fixed rate junior subordinated notes, Series CAS, both on June 19, 2025.
The net proceeds were used to reduce outstanding indebtedness, including to reduce the amount of commercial paper outstanding, and for
other general corporate purposes.

· The June 27, 2025 issuance of US$700 million of fixed-to-fixed rate junior
subordinated Series A notes initially bearing interest at 6.625% and US$800 million of fixed-to-fixed rate junior subordinated Series
B notes initially bearing interest at 7.00%, both series maturing on October 15, 2055. The net proceeds were used to fund our tender
offers, as further described in *Note 26(b)* of the interim consolidated financial statements.

· The draw-down of $574 million (US$415 million) on the unsecured non-revolving
$600 million bank credit facility with a financial institution during the second quarter of 2025, all of which had been repaid in the
same period.

The average term to maturity of our long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) was 13.2 years at September 30, 2025, an increase from 10.4 years at December 31, 2024 and from 10.6 years at September 30, 2024. Additionally, the weighted average cost of our long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) was 4.61% at September 30, 2025, an increase from 4.37% at December 31, 2024 and from 4.40% at September 30, 2024.

**Equity of subsidiary issued to non-controlling interest**

In the third quarter of 2025, equity of subsidiary issued to non-controlling interest was related to the formation of Terrion as described in *Section 1.3* and *Note 28(b)* of the interim consolidated financial statements.

**Shares of subsidiary purchased from non-controlling interests, net**

In the third quarter of 2024, we acquired 5.4 million subordinate voting shares of TELUS International (Cda) Inc. over the facilities of the Toronto Stock Exchange.

**Other**

In the third quarter of 2025, we incurred costs related to the formation of Terrion as described in *Section 1.3*. In the second quarter of 2025, we incurred debt issuance costs in connection with the issuances of our Series CAR, Series CAS, Series A and Series B notes described in *Section 7.4*. This was greater than the debt issuance costs in connection with the three-tranche note issuance in the first quarter of 2024.

**7.5 Liquidity and capital resource measures**

**Net debt** was $25.7 billion at September 30, 2025, a decrease of $2.4 billion compared to one year earlier, resulting mainly from: (i) the notes purchased during the tender offer process described in *Section 1.3*; (ii) greater Cash and temporary investments; (iii) the repayment of the TELUS International (Cda) Inc. credit facility in the third quarter of 2025; (iv) the repayment upon maturity of 3.75% Notes, Series CQ, in the first quarter of 2025; and (v) the repayment upon maturity of the TELUS Communications Inc. debentures in the third quarter of 2025. These factors were partially offset by the second quarter 2025 issuances of: $1.5 billion of 6.25% Fixed-to-Fixed Rate, Series CAR notes, $925 million of 6.75% Fixed-to-Fixed Rate, Series CAS notes, US$700 million of 6.625% Fixed-to-Fixed Rate Series A notes and US$800 million of 7.00% Fixed-to-Fixed Rate Series B notes, as described in *Section 7.4* (for purposes of calculating leverage ratios, only one-half of the principal of our junior subordinated notes are included as debt).

**Fixed-rate debt as a proportion of total indebtedness**, which excludes lease liabilities and other long-term debt, was 92% as at September 30, 2025, up from 89% one year earlier. The increase was primarily due to: (i) the second quarter 2025 issuances of: $1.5 billion of 6.25% Fixed-to-Fixed Rate, Series CAR notes, $925 million of 6.75% Fixed-to-Fixed Rate, Series CAS notes, US$700 million of 6.625% Fixed-to-Fixed Rate Series A notes and US$800 million of 7.00% Fixed-to-Fixed Rate Series B notes, as described in *Section 7.4*; and (ii) the repayment of the TELUS International (Cda) Inc. credit facility in the third quarter of 2025. These factors were partially offset by: (i) the repayment upon maturity of 3.75% Notes, Series CQ, in the first quarter of 2025; and (ii) the repayment upon maturity of the TELUS Communications Inc. debentures in the third quarter of 2025.

Our **Net debt to EBITDA – excluding restructuring and other costs** ratio supports our financial objective of maintaining investment-grade credit ratings, which facilitates reasonable access to capital. This ratio was 3.5 times, as measured at September 30, 2025, down from 3.8 times one year earlier. The decrease was largely due to the effect of the decrease in net debt levels, primarily due to the junior subordinated notes equity credit, partially offset by spectrum acquisitions and business acquisitions. TTech and TELUS Health EBITDA growth decreased the ratio by approximately 0.1; TELUS Digital EBITDA decline increased the ratio by approximately 0.1; net debt levels were already elevated in the current and comparative periods due to our spectrum acquisitions and business acquisitions. As at September 30, 2025, the acquisition of spectrum licences increased the ratio by approximately 0.6, and business combinations increased the ratio by approximately 0.1, while the junior subordinated notes equity credit decreased the ratio by approximately 0.3 and equity issued by our Terrion subsidiary to a non-controlling interest decreased the ratio by approximately 0.2. Our recent acquisitions of spectrum licences have increased our national spectrum holdings and represent an investment in building greater network capacity to support the ongoing growth in demand for data, as well as growth in our mobile subscriber base. Given the cash demands of the 600 MHz auction held in 2019, the 3500 MHz auction held in 2021, the 3800 MHz auction held in 2023 (paid in fiscal 2024) and the upcoming auction for millimetre wave spectrum, the assessment of the guideline and timing of return to the objective range remains to be determined; however, it is our intent to return to a ratio of circa 2.7 in the medium term (following the spectrum auctions in 2021 and 2023, and the upcoming millimetre wave spectrum auction), consistent with our long-term strategy. We have an objective of achieving a ratio of circa 3.0 in 2027. While this ratio exceeds our long-term objective range, we are well in compliance with the leverage ratio covenant in our credit facilities, which states that we may not permit our leverage ratio to exceed 4.25 to 1.00 at September 30, 2025 (see *Section 7.6 Credit facilities*).

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Liquidity and capital resource measures**

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| | | | |
|:---|:---|:---|:---|
| As at, or for the 12-month periods ended, September 30 | **2025** | 2024 | Change |
| **Components of debt and coverage ratios ($ millions)** |  |  |  |
| Long-term debt | **28989** | 28000 | 989 |
| Net debt<sup>1</sup> | **25663** | 28109 | (2446) |
| Net income | **807** | 928 | (121) |
| EBITDA – excluding restructuring and other costs<sup>1</sup> | **7353** | 7342 | 11 |
| Financing costs | **1192** | 1533 | (341) |
| Net interest cost<sup>1</sup> | **1418** | 1370 | 48 |
| **Debt ratios** |  |  |  |
| Fixed-rate debt as a proportion of total indebtedness (excluding lease liabilities and other long-term debt) (%) | **92** | 89 | 3 |
| Average term to maturity of long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) (years) | **13.2** | 10.6 | 2.6 |
| Weighted average interest rate on long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) (%) | **4.61** | 4.40 | 0.21 |
| Net debt to EBITDA – excluding restructuring and other costs<sup>1</sup> (times) | **3.5** | 3.8 | (0.3) |
| **Coverage ratios<sup>1</sup> (times)** |  |  |  |
| Earnings coverage | **2.1** | 1.9 | 0.2 |
| EBITDA – excluding restructuring and other costs interest coverage | **5.2** | 5.4 | (0.2) |
| **Other measures<sup>1</sup> (%)** |  |  |  |
| **Determined using most comparable IFRS Accounting Standards measures** |  |  |  |
| Ratio of Common Share dividends declared to cash provided by operating activities – less capital expenditures | **106** | 92 | 14 |
| **Determined using management measures** |  |  |  |
| Common Share dividend payout ratio – net of dividend reinvestment plan effects | **75** | 76 | (1) |

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1 See *Section 11.1 Non-GAAP and other specified financial measures.*

**Earnings coverage** ratio for the 12-month period ended September 30, 2025 was 2.1 times, up from 1.9 times one year earlier. An increase in income before borrowing costs and income taxes raised the ratio by 0.4, while an increase in borrowing costs lowered the ratio by 0.2. Excluding restructuring and other costs, the earnings coverage ratio would be 2.3 times.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**EBITDA – excluding restructuring and other costs interest coverage** ratio for the 12-month period ended September 30, 2025 was 5.2 times, down from 5.4 times one year earlier. An increase of $48 million in net interest costs decreased the ratio by 0.2.

**Common Share dividend payout ratios:** Actual Common Share dividend payout decisions will continue to be subject to our Board's assessment of our financial position and outlook, as well as our long-term Common Share dividend payout objective range of 60 to 75% of prospective free cash flow. So as to be consistent with the way we manage our business, our Common Share dividend payout ratio is presented as a historical measure calculated as the sum of the dividends declared in the most recent four quarters for Common Shares, as recorded in the financial statements, net of dividend reinvestment plan effects, divided by the sum of the most recent four quarters' free cash flow amounts for interim reporting periods. For fiscal years, the denominator is annual free cash flow. The historical measure for the 12-month period ended September 30, 2025 is presented for illustrative purposes in evaluating our objective range. As at September 30, 2025, the ratio was within the objective range.

**7.6** Credit facilities

At September 30, 2025, we had over $1.7 billion of liquidity available from the TELUS revolving credit facility. We are well within our objective of generally maintaining at least $1 billion of available liquidity.

**TELUS credit facilities**

We have a $2.75 billion (or U.S. dollar equivalent) unsecured revolving credit facility with a syndicate of financial institutions, expiring August 21, 2030. The revolving credit facility is used for general corporate purposes, including the backstop of commercial paper, as required.

During the three-month period ended June 30, 2025, we had an unsecured non-revolving $600 million (or U.S. dollar equivalent) bank credit facility with a financial institution which was to be used for general corporate purposes. We had drawn $574 million (US$415 million) on the credit facility during the three-month period ended June 30, 2025, all of which had been repaid in the same period; in accordance with its non-revolving nature, the credit facility was subsequently terminated in June 2025.

**TELUS revolving credit facility at** **September 30, 2025**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ($ millions) | Expiry | Size | Drawn | Outstanding <br> undrawn <br> letters of <br> credit | Backstop<br> for <br> commercial <br> paper <br> program | Available<br> liquidity |
| Revolving credit facility<sup>1</sup> | Aug. 21, 2030 | 2750 |  |  | (1040) | 1710 |

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1 Canadian dollars or U.S. dollar equivalent.

Our credit facilities contain customary covenants, including a requirement that we not permit our consolidated leverage ratio to exceed 4.25 to 1.00 and that we not permit our consolidated coverage ratio to be less than 2.00 to 1.00 at the end of any financial quarter. As at September 30, 2025, our consolidated leverage ratio was 3.5 to 1.00 and our consolidated coverage ratio was 5.2 to 1.00. These ratios are expected to remain well within the covenants. There are certain minor differences in the calculation of the leverage ratio and coverage ratio under the revolving credit facility, as compared with the calculation of Net debt to EBITDA – excluding restructuring and other costs and EBITDA – excluding restructuring and other costs interest coverage. Historically, the calculations are substantially similar. The covenants are not impacted by revaluation, if any, of Property, plant and equipment, Intangible assets or Goodwill for accounting purposes. Continued access to our credit facilities is not contingent on maintaining a specific credit rating.

**Commercial paper**

TELUS Corporation has an unsecured commercial paper program, which is backstopped by our revolving credit facility, allowing us to issue commercial paper up to a maximum aggregate equivalent amount at any one time of $2.1 billion (US$1.5 billion maximum) as at September 30, 2025. We use foreign currency forward contracts to manage currency risk arising from U.S. dollar-denominated commercial paper. The commercial paper program is used for general corporate purposes, including, but not limited to, capital expenditures and investments. Our ability to reasonably access the commercial paper market in the United States is dependent on our credit ratings (see *Section 7.8 Credit ratings*).

**Other unsecured long-term debt**

As at September 30, 2025, other (unsecured) includes preferred shares issued by a wholly-owned subsidiary to a private equity investor, in connection with the acquisition of Workplace Options, as set out in *Note 18(b)* of the interim consolidated financial statements, and IFRS Accounting Standards required that these financial instruments be accounted for as financial liabilities. The preferred shares are unsubordinated obligations, are senior in right of payment to all of our existing and future subordinated indebtedness, and are effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Junior subordinated notes**

The notes are direct unsecured obligations and are subordinated to all existing and future senior indebtedness and are effectively subordinated to all existing and future indebtedness and obligations of, or guaranteed by, our subsidiaries. For purposes of calculating leverage ratios, only one-half of the principal is included as debt in the initial post-issuance decade. See *Note 26(f)* of the interim consolidated financial statements for additional details.

**TELUS International (Cda) Inc. credit facility**

During the third quarter of 2025, TELUS International (Cda) Inc. had a credit facility, secured by its assets, which was to expire on January 3, 2028, with a syndicate of financial institutions, including TELUS Corporation; during the three-month period ended September 30, 2025, the credit facility was repaid. The credit facility was comprised of US$800 million in revolving components and US$1.2 billion in amortizing term loan components, with TELUS Corporation as approximately 7.2% lender in both components. The credit facility was non-recourse to TELUS Corporation.

The term loan components were subject to amortization schedules which required that a minimum of 5% of the principal advanced be repaid each year of the term of the agreement, with the balance due at maturity.

**Other letter of credit facilities**

At September 30, 2025, we had $67 million of letters of credit outstanding issued under various uncommitted facilities. These letter of credit facilities are in addition to our ability to provide letters of credit under our committed revolving bank credit facility. Available liquidity under various uncommitted letter of credit facilities was $118 million at September 30, 2025.

**Other secured long-term debt**

Other liabilities incur interest at 4.4%, are secured by the AWS-4 spectrum licences associated with these other liabilities, and are subject to amortization schedules, so that the principal is repaid over the periods to maturity, the last period ending March 31, 2035.

**Lease liabilities**

Lease liabilities are subject to amortization schedules, so that the principal is repaid over various periods, which include reasonably expected renewals. The weighted average interest rate on lease liabilities was approximately 5.2% as at September 30, 2025.

**7.7** Short-term borrowings

On May 22, 2024, we entered into an agreement with an arm's-length securitization trust associated with a major Schedule I bank allowing us to borrow up to a maximum of $1.6 billion, secured by certain trade receivables and unbilled customer finance receivables; the term of this revolving period securitization agreement ends May 22, 2027, and requires minimum cash advances of approximately $920 million. Funding under the agreement may be provided in either Canadian dollars or U.S. dollars. Currency risk associated with funding denominated in U.S. dollars is managed through the use of foreign currency forward contracts. Available liquidity under this agreement was $680 million as at September 30, 2025. (See *Note 22* of the interim consolidated financial statements.)

**7.8** Credit ratings

We continued to have investment-grade ratings in the third quarter of 2025 and as at November 7, 2025. We believe adherence to most of our stated financial policies (see *Section 4.3*), coupled with our efforts to maintain a constructive relationship with banks, investors and credit rating agencies, continues to provide reasonable access to capital markets.

**7.9** Financial instruments, commitments and contingent liabilities

**Financial instruments**

Our financial instruments, their accounting classification and the nature of certain risks to which they may be exposed were described in *Section 7.9* in our 2024 annual MD&A.

*Liquidity risk*

As a component of our capital structure financial policies, discussed in *Section 4.3 Liquidity and capital resources*, we manage liquidity risk by: maintaining a daily cash pooling process that enables us to manage our available liquidity and our liquidity requirements according to our actual needs; maintaining a short-term borrowing agreement associated with trade receivables and unbilled customer finance receivables; maintaining bilateral bank facilities and syndicated credit facilities; maintaining a supply chain financing program; maintaining a commercial paper program; maintaining an in-effect shelf prospectus; continuously monitoring forecast and actual cash flows; and managing maturity profiles of financial assets and financial liabilities.

As at September 30, 2025, TELUS Corporation could offer an unlimited amount of securities in Canada, and US$3.5 billion of securities in the United States, qualified pursuant to a Canadian shelf prospectus effective until September 2026.

As at September 30, 2025, we had more than $1.7 billion of liquidity available from the TELUS revolving credit facility and $680 million available under our trade receivables and unbilled customer finance receivables securitization program (see *Section 7.7 Short-term borrowings*). Including cash and temporary investments of $1.8 billion, we had over $4.2 billion of liquidity available at September 30, 2025 (see *Section 11.1 Non-GAAP and other specified financial measures*). This aligns with our objective of generally maintaining at least $1 billion of available liquidity. We believe our investment-grade credit ratings contribute to reasonable access to capital markets.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Commitments and contingent liabilities**

*Purchase obligations*

As at September 30, 2025, our contractual commitments related to the acquisition of Property, plant and equipment were $212 million through to December 31, 2027, as compared to $267 million over a period ending December 31, 2027 reported as at December 31, 2024. The decrease was primarily due to executing on our planned capital investments, including real estate development initiatives.

*Claims and lawsuits*

A number of claims and lawsuits (including class actions and intellectual property infringement claims) seeking damages and other relief are pending against us and, in some cases, other mobile carriers and telecommunications service providers. As well, we have received notice of, or are aware of, certain possible claims (including intellectual property infringement claims) against us and, in some cases, other mobile carriers and telecommunications service providers.

It is not currently possible for us to predict the outcome of such claims, possible claims and lawsuits due to various factors, including: the preliminary nature of some claims; uncertain damage theories and demands; an incomplete factual record; uncertainty concerning legal theories and procedures and their resolution by the courts, at both the trial and the appeal levels; and the unpredictable nature of opposing parties and their demands.

However, subject to the foregoing limitations, management is of the opinion, based upon legal assessments and information presently available, that it is unlikely that any liability, to the extent not provided for through insurance or otherwise, would have a material effect on our financial position and the results of our operations, including cash flows, with the exception of the items disclosed in *Note 29* of the interim consolidated financial statements.

**7.10 Outstanding share information**

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| | | | | |
|:---|:---|:---|:---|:---|
| **Outstanding shares (millions)** | **September 30, 2025** | **September 30, 2025** | **October 31, 2025** | **October 31, 2025** |
| Common Shares |  | 1535 |  | 1548 |
| Common Share options |  | 1 |  | 1 |
| Restricted share units and deferred share units – equity-settled |  | 16 |  | 16 |

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**7.11** Transactions between related parties

**Transactions with key management personnel**

Our key management personnel, consisting of our Board of Directors and our Executive Team, have authority and responsibility for overseeing, planning, directing and controlling our activities. Total compensation expense for key management personnel was $20 million in the third quarter of 2025 and $64 million in the first nine months of 2025, compared to $25 million and $58 million in the respective periods in 2024. The increase in compensation expense for key management personnel in the first nine months of 2025 was due to greater share-based compensation. See *Note 30(a)* of the interim consolidated financial statements for additional details.

**Transactions with defined benefit pension plans**

We provided our defined benefit pension plans with management and administrative services on a cost recovery basis and actuarial services on an arm's-length basis. Charges for these services were immaterial.

**Transactions with real estate joint ventures and associate**

During the three-month and nine-month periods ended September 30, 2025, we had recurring and non-recurring transactions with the real estate joint ventures, which are related parties, as set out in *Note 21* of the interim consolidated financial statements.

As at September 30, 2025, we held an equity interest in Miovision Technologies Incorporated. Our judgment is that we obtained significant influence over the associate concurrent with acquiring our initial equity interest.

**8.** Accounting matters

**8.1** Critical accounting estimates and judgments

Our significant accounting policies are described in *Note 1* of the Consolidated financial statements for the year ended December 31, 2024. The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect: the reported amounts of assets and liabilities at the date of the financial statements; the disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts and classification of income and expense during the reporting period. Actual results could differ from those estimates. Our critical accounting estimates and significant judgments are generally discussed with the Audit Committee each quarter and are described in *Section 8.1* in our 2024 annual MD&A, which is hereby incorporated by reference.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**8.2** Accounting policy developments

Our accounting policy developments were discussed in *Section 8.2 Accounting policy developments* in our 2024 annual MD&A. See *Note 2* of the interim consolidated financial statements for additional details.

**9.** Update to general trends, outlook and assumptions, and regulatory developments and proceedings

This section contains forward-looking statements, which should be read together with the *Caution regarding forward-looking statements* at the beginning of this MD&A.

The assumptions for our 2025 outlook, as described in *Section 9* in our 2024 annual MD&A, remain the same, except for the following:

· For our revised estimated economic growth rates, inflation rates, annual unemployment rates and annual rates of housing starts on
an unadjusted basis, see *Section 1.2*. The extent to which these economic estimates affect us and the timing of their impact will
depend upon the actual experience of specific sectors of the Canadian economy.

· Our cash income tax payments assumption has been revised downward to a range of approximately $420 million to $500 million from a
range of approximately $500 million to $580 million. The decrease in our cash income tax payments range was primarily due to higher refunds
received.

**9.1 Communications industry regulatory developments and proceedings**

Our telecommunications, broadcasting and radiocommunication services are regulated under federal laws by various authorities, including the Canadian Radio-television and Telecommunications Commission (CRTC), ISED, Canadian Heritage and the Competition Bureau.

The operations of our health business are also subject to various federal and provincial health laws and regulations, as well as policies, guidelines and directives issued by regulatory and administrative bodies. See *Section 10.3 Regulatory matters* in our 2024 annual MD&A.

The following is a summary of certain significant communications industry regulatory developments and proceedings that are relevant to our telecommunications and broadcasting business and our industry. This summary is not intended to be a comprehensive legal analysis or description of all of the specific issues described. Although we have indicated those issues for which we do not currently expect the outcome of a development or proceeding to be material for us, there can be no assurance that the expected outcome will occur or that our current assessment of its likely impact on us will be accurate. See *Section 10.3 Regulatory matters* in our 2024 annual MD&A.

**Radiocommunication licences and spectrum-related matters**

ISED regulates, among other matters, the allocation and use of radio spectrum in Canada and licenses radio apparatus, frequency bands and/or radio channels within various frequency bands to service providers and private users. The department also establishes the terms and conditions that may attach to such radio authorizations, including restrictions on licence transfers, coverage obligations, research and development obligations, annual reporting, and obligations concerning mandated roaming and antenna site sharing with competitors.

*Mobile spectrum licence fee framework*

On March 7, 2025, ISED released *Decision on a Fee Framework and Amendments to Conditions of Licence for Certain Spectrum Licences Used to Provide Commercial Mobile Services Below 10 GHz.* This is a new licence fee framework that will apply to spectrum licences issued outside of an auction process or auctioned licences renewed beyond their initial term. This new framework is largely in line with the framework as proposed by ISED in December 2024 in the consultation that led to this decision. It makes some spectrum bands now applicable for fees, but we had expected that these bands would be subject to fees. The new ISED framework goes into effect in March 2026. The impact upon TELUS of the new fee structure is not expected to be material.

*Spectrum transfer moratorium and review of the spectrum transfer framework*

On March 31, 2023, the Minister of Innovation, Science and Industry announced a moratorium on high-impact transfers of spectrum licences in commercial mobile bands. "High-impact" transfers are those that would have a significant effect on the ability of telecommunications service providers to offer wireless services in Canada. The Minister also directed ISED to launch a comprehensive review of Canada's spectrum transfer framework, with the moratorium expiring once a new framework comes into effect. On September 8, 2025, ISED indicated that it expects a consultation on a new spectrum transfer framework to begin before the end of 2025. There is a risk that this moratorium could have a material impact on us depending on how long it remains in place.

*Millimetre wave (mmWave) spectrum auction to support 5G*

On June 5, 2019, ISED released its *Decision on Releasing Millimetre Wave Spectrum to Support 5G*, repurposing several tranches of mmWave spectrum for mobile use. On June 6, 2022, ISED issued its *Consultation on a Policy and Licensing Framework for Spectrum in the 26, 28 and 38 GHz bands*, which is the first step in setting the auction framework rules, including competitive measures for these mmWave bands. On March 6, 2025, ISED issued *Consultation on the 26 GHz and 38 GHz Bands*, amending the June 2022 consultation to further develop the framework for an upcoming mmWave auction. There is a risk that the auction rules will favour certain carriers over us and impact our ability to acquire an adequate quantity of mmWave spectrum. ISED has not indicated when the mmWave auction will commence.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

*2026 auction of residual spectrum licences*

 

On August 28, 2025, ISED released a *Notice of 2026 Auction of Residual Spectrum Licences*. This notice establishes the procedures for a residual spectrum auction of unsold or returned licences that is set to take place in late January 2026. The deadline for receipt of applications and financial deposits for participation in the auction is December 2, 2025. Auction sealed bids for allocation stage is January 27, 2026 and sealed bids for assignment stage is January 30, 2026.

**Regulatory and federal government reviews**

The CRTC and the federal government have initiated public proceedings to review various matters. A number of key proceedings are discussed below.

*Review of the wholesale high-speed access service framework*

 

On August 13, 2024, the CRTC issued Telecom Regulatory Policy CRTC 2024-180 (TRP 2024-180), Competition in Canada's Internet service markets. TRP 2024-180 is the CRTC's final decision further to its consultation on the wholesale high-speed access framework in Canada, which has been ongoing since March 2023. In the March 2023 consultation document, the CRTC sought comment on a number of issues, including whether wholesale access to fibre-to-the-premises (FTTP) service should be offered on an aggregated basis and whether any further regulation, including retail regulation, is warranted.

In TRP 2024-180, the CRTC ruled that TELUS, Bell, and SaskTel must provide aggregated wholesale access to their FTTP networks, effective February 13, 2025. As a result, all companies, including TELUS, are permitted to obtain wholesale FTTP access effective February 13, 2025, with two notable restrictions. First, incumbent telephone and cable companies will not be able to access the wholesale framework within their traditional wireline serving territories, but may access it outside those territories. Second, any new FTTP deployed by TELUS, Bell or SaskTel after August 13, 2024 will not be eligible for wholesale access until August 13, 2029. On October 25, 2024, the CRTC set out interim rates for the wholesale aggregated FTTP service. The rates will remain in effect until the CRTC completes its cost study analysis and publishes final rates, likely at some point in 2025.

On September 12, 2024, SaskTel brought two court challenges to TRP 2024-180: an application for leave to appeal the decision pursuant to the *Telecommunications Act*, and an application for judicial review pursuant to the *Federal Courts Act*. The judicial review is being held in abeyance pending the disposition of the motion for leave to appeal.

In November 2024, multiple parties brought applications to the CRTC to review and vary TRP 2024-180. Among other things, the applications ask the CRTC to prohibit TELUS, Bell and Rogers from accessing wholesale FTTP service pursuant to TRP 2024-180. Bragg Communications Inc., Cogeco Communications Inc., SaskTel, and the Competitive Network Operators of Canada also brought a petition to Cabinet asking them to vary TRP 2024-180 in a similar manner should the CRTC fail to do so. On June 20, 2025, the CRTC dismissed the applications to review and vary TRP 2024-180 (the Review and Vary Decision). On August 6, 2025, Cabinet issued a press release stating that it would not grant the relief sought in the petition.

In July 2025, Bragg Communications Inc. and Cogeco Communications Inc. brought an application to the Federal Court of Appeal for leave to appeal the Review and Vary Decision. Leave to appeal was granted in September 2025. Bragg Communications Inc. and Cogeco Communications Inc. also brought an application in Federal Court for judicial review of Cabinet's decision not to allow the petition. Both matters remain before the courts.

Further, in September 2025, Rogers Communications Canada Inc., a coalition of Bragg Communications Inc. and Cogeco Communications Inc., and a coalition of TekSavvy Solutions Inc and Competitive Network Operators of Canada brought three separate petitions to Cabinet seeking to overturn the Review and Vary Decision.

*Review of mobile wireless services*

 

On April 15, 2021, the CRTC released its decision in the *Wireless Regulatory Framework Review*. The CRTC determined that TELUS, Bell, Rogers and SaskTel must provide wholesale mobile virtual network operator (MVNO) access to facilities-based regional wireless providers in areas where those providers hold a mobile wireless spectrum licence. TELUS, Bell, Rogers and SaskTel each filed tariffs containing proposed MVNO terms and conditions and the Commission granted final tariff approval in Telecom Order 2023-133. TELUS, Bell, Rogers and SaskTel now have the MVNO service operational and available for use.

We appealed two determinations from the *Wireless Regulatory Framework Review* decision to the Federal Court of Appeal: (i) the requirement for the national mobile carriers, including us, to offer seamless roaming as an additional condition under which the existing mandated wholesale roaming service must be offered; and (ii) the ruling that sections 43 and 44 of the *Telecommunications Act* do not provide the CRTC with jurisdiction to adjudicate disputes involving mobile wireless transmission facilities. The appeal was heard in December 2022 and was dismissed on April 13, 2023. The Supreme Court of Canada heard our appeal of the matter in October 2024. On April 25, 2025, the Supreme Court dismissed our appeal, confirming that the sections 43 and 44 of the *Telecommunications Act*, as currently worded, do not give authority to the CRTC to adjudicate disputes concerning wireless transmission facilities on public lands.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

*Amendment of the CRTC MVNO mandate to include additional retail market segments*

 

On October 9, 2024, the CRTC issued Telecom Decision CRTC 2024-238, *Facilities-based wholesale mobile virtual network operator (MVNO) access tariffs – Expanding the scope to include enterprise and Internet of Things customers.* In the decision, the CRTC amended existing regulations to allow regional wireless carriers to use wholesale MVNO access to serve enterprise and IoT customers. The decision does not affect existing wholesale MVNO access agreements and final offer arbitration decisions, which remain in effect. Regional wireless carriers are now permitted to seek to negotiate an amendment to existing agreements or to negotiate separate agreements should they wish to do so, to include enterprise customers and IoT services. Until and unless we sign any such agreements, it is too early to determine the impact of this decision on us. On January 25, 2025, Rogers filed an application to the CRTC seeking to review and vary the CRTC's decision. A decision on this application is not expected until late 2025 at the earliest.

*Amendments to the Telecommunications Act*

 

In June 2024, Parliament passed Bill C-69, the *Budget Implementation Act, 2024, No. 1*. The Bill makes a number of amendments to the *Telecommunications Act*, including requirements for providers to offer a self-service option to modify or cancel plans and to provide certain notices in advance of contract expiry. The Bill also prohibits providers from charging activation fees or certain other fees and requires the CRTC to set out details on how providers should comply with these amendments. While the Bill is now law, these provisions will only come into force at a later date, to be fixed by the Governor in Council. In November 2024, the CRTC issued Notices of Consultation CRTC 2024-293, 2024-294, and 2024-295, through which it will create regulatory frameworks to implement these amendments. The CRTC entertained submissions in February and March 2025, with decisions on these issues expected later in 2025 or in 2026.

Parliament also passed Bill C-288, a private member's bill, which amended the *Telecommunications Act* to require Canadian carriers to make certain information available in respect of the fixed broadband services that they offer, and obligates the CRTC to hold a public hearing to determine how carriers should comply with these amendments. In December 2024, the CRTC issued Notice of Consultation CRTC 2024-318, through which it will create the regulatory framework to implement these amendments. As required by the amendments, the CRTC held an oral hearing on the matter in June 2025, at which we appeared. A decision is not expected until later in 2025 or in 2026. Until the CRTC issues determinations in these proceedings, it is too early to determine their impact on us.

*Review of domestic wholesale roaming rates and rate-setting approach*

 

On October 7, 2024, following an application by various regional mobile wireless providers, the CRTC issued Telecom Decision 2024-233 where it decided to move away from existing tariffed domestic roaming rates. Instead, the Commission mandated parties to set rates using commercial negotiation with recourse to final offer arbitration. The CRTC stated that it will publish certain rate benchmarks on an annual basis, including the weighted average retail revenue per gigabyte of data in Canada. This decision is not expected to be material to us.

On September 18, 2025, the CRTC issued Telecom Decision 2025-245, where it confirmed its preliminary view that each of TELUS and Bell should be required to provide roaming access for their full national footprint areas for regional wireless carriers. This means that TELUS is now required to provide domestic roaming in the geographic areas where Bell is responsible for the radio access network, and vice versa. This decision implements the same requirements for Bell and TELUS that the CRTC mandated in its MVNO regulatory framework. This decision is not expected to be material to us.

*Review of international roaming options*

 

On October 7, 2024, the CRTC sent a letter to TELUS, Bell and Rogers stating that it had conducted a review of roaming fees that Canadians pay when travelling internationally. The letter states that the CRTC found that Canadians lack choice when traveling internationally and that roaming rates are too high. The CRTC directed TELUS, Bell and Rogers to report back to the CRTC on November 4, 2024, on the steps they are taking to address the CRTC's concerns. Accordingly, TELUS, Bell and Rogers, filed their respective reports on November 4, 2024. On March 7, 2025, the CRTC determined that it will not launch a formal proceeding but called on TELUS, Bell and Rogers to ensure that they continue to make progress on reducing roaming fees. The CRTC also required TELUS, Bell and Rogers to file reports in May 2025 and November 2025. Each report has set out a list of new international roaming offerings that have been launched since the CRTC's October 2024 letter, along with other specified information. On May 5, 2025, we submitted our first international roaming progress report, highlighting new international roaming offers launched since October 2024. We submitted our second progress report on November 5, 2025.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

*New draft cybersecurity legislation*

 

On June 18, 2025, the federal government introduced Bill C-8, *An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts*. The legislation is similar to the previous Bill C-26, which did not pass. The legislation would amend the *Telecommunications Act* to allow the Governor in Council to prohibit telecommunications service providers from using equipment from designated companies in their networks. This will allow the federal government to ban the use of Huawei and ZTE equipment in our network and impose penalties for non-compliance. The former Minister of Innovation, Science and Industry stated that the government intends to use its powers under Bill C-8, if passed, to require the removal of existing Huawei and ZTE 5G equipment. If we are ultimately subject to an order requiring us to remove a significant amount of equipment from our network, the effect could be material. The legislation would also create a new statute, the *Critical Cyber Systems Protection Act* (CCSPA). The CCSPA would require designated federally regulated corporations to maintain cybersecurity plans, impose reporting requirements and impose penalties for non-compliance. Many of the proposed measures in the CCSPA reflect our existing processes. The effect of CCSPA is unknown at this time as the bill is still in Parliament and many of the material provisions are left to regulation making. Bill C-8 passed Second Reading in Parliament on October 3, 2025 and is expected to be reviewed at the House of Commons Standing Committee on Public Safety and National Security during the fourth quarter of 2025.

*CRTC proceedings to examine network resiliency*

 

On September 4, 2025, the CRTC issued Telecom Decision 2025-225 following a consultation. In this decision, the Commission set out its final requirements for telecommunications carriers, including TELUS, to notify the CRTC and various government agencies about network outages on their respective networks. The CRTC has expanded the type of outages that carriers must report to the CRTC in comparison to the interim regime that had been in place since March 8, 2023. The CRTC ordered carriers to implement the new reporting requirements by November 4, 2025. TELUS and other major telecom carriers filed an application to the CRTC on October 7, 2025 asking the Commission to review and vary certain elements of the decision, with a view to reduce the volume of reporting that the decision currently requires. The carriers also asked for a delay in the decision's implementation timeline. We are not implementing the new requirements until the CRTC renders a decision on the review and vary application.

The CRTC also released two new notices of consultation related to network resiliency on September 4, 2025. In *Call for comments – Development of a regulatory policy on measures to improve the resiliency of telecommunications networks and the reliability of telecommunications services,* the CRTC initiated a comprehensive consultation with a view to develop a regulatory policy relating to network reliability and resiliency for telecommunications service providers. The CRTC has posed a variety of questions to telecommunications service providers to find out their respective views on potential regulatory rules. We will participate fully in this proceeding and will file our intervention by December 4, 2025. The proceeding is expected to continue into 2026, with a decision not expected until late 2026, at the earliest.

In *Call for comments – Consumer protections in the event of a service outage or disruption*, Telecom and Broadcasting Notice of Consultation 2025-227, the Commission is investigating whether it needs to mandate protections for consumers at the time of network or service outages for telecom or television services. These consumer protections measures include what sort of communications customers should receive at a time of outage and what policies should apply to potential refunds for lost services. We will participate fully in this proceeding from both a telecom and broadcast distribution undertaking perspective. The record of this proceeding will close in December 2025 with a decision likely in late 2026.

*Implementation of next-generation 9-1-1 service*

 

On June 14, 2021, the CRTC issued Telecom Decision CRTC 2021-199, *Establishment of new deadlines for Canada's transition to next-generation 9-1-1* (NG9-1-1), where the CRTC stipulated revised implementation for NG9-1-1 service in Canada. We are now transiting live NG9-1-1 traffic over our NG9-1-1 network, but full implementation of NG9-1-1 in our NG9-1-1 territory is contingent on interconnections with 9-1-1 call centres and such implementation is dependent upon local government authorities. On February 28, 2025, in response to an application filed by the national associations of Chiefs of Police, Fire Chiefs and Paramedic Chiefs, the CRTC issued a decision to extend the deadline of NG9-1-1 implementation dates, from March 2025 to March 2027. We continue our work to fully implement NG9-1-1.

On February 28, 2025, the CRTC denied a request filed by a group of public safety answering points (PSAPs), the entities that receive 9-1-1 calls and dispatch emergency services, that would have required NG9-1-1 network providers, including us, to make available a NG9-1-1 network testing environment for PSAPs. We had opposed this application.

*Development of a network-level blocking framework to limit botnet traffic*

 

On June 13, 2025, following a consultation that commenced in 2022, the CRTC released *Development of a framework to limit botnet traffic*, Compliance and Enforcement and Telecom Decision CRTC 2025-142 pursuant to which it developed a blocking framework to allow Canadian carriers, including TELUS, to block botnets and other harmful activities within their networks before reaching Canadian devices. Currently, the framework is limited to the use of third-party and in-house blocklists. Carriers have annual CRTC reporting requirements on performance metrics, to be implemented at a future date. The impact of this new framework is not material.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

On June 13, 2025, the Commission also released *Call for comments – Proposed modifications to the framework to limit botnet traffic*, Compliance and Enforcement and Telecom Notice of Consultation CRTC 2025-143 to gather views on whether the blocking framework should be expanded to include blocking methods other than blocklists. We are participating in this consultation.

*Federal privacy sector reform update*

 

The federal government is expected to introduce comprehensive privacy legislation as early as November 2025 to modernize the *Personal Information Protection and Electronic Documents Act* (PIPEDA). This new bill will draw heavily from Bill C-27, the privacy reform package that was suspended when Parliament was prorogued for the 2025 federal election. The upcoming legislation is anticipated to include the core framework of Bill C-27, reflecting the government's response to rapidly evolving digital privacy challenges and emerging AI threats that have developed since Bill C-27's original introduction.

*Federal and provincial privacy regulators investigate OpenAI and the X social media platform*

 

On May 25, 2023, the privacy authorities for Canada, British Columbia, Alberta and Quebec announced a joint investigation of OpenAI, the company behind AI-powered chatbot ChatGPT. The wide-ranging investigation will examine whether OpenAI obtained valid and meaningful consent for the collection, use and disclosure of the personal information of individuals using ChatGPT; its obligations with respect to openness and transparency; and whether it collected, used and/or disclosed personal information for purposes that a reasonable person would consider appropriate. The findings of this investigation could materially impact the implementation of AI in Canada.

*CRTC review of telecommunications services to the Far North*

 

On January 16, 2025, the CRTC issued *Telecommunications in the Far North*, Telecom Regulatory Policy 2025-9, following a consultation. Major determinations include the creation of a new subsidy regime for retail Internet customers in the Far North paid via the National Contribution Fund, new quality and reliability requirements cast upon Northwestel Inc. and adjustments to Northwestel's wholesale connect service. On the same day, the CRTC issued *Call for comments – Implementing a retail Internet service subsidy in the Far North*, Telecom Notice of Consultation 2025-10, where it is seeking comments on how the retail Internet subsidy regime should be implemented for the Far North. We participated in this proceeding, with a decision not expected until 2026. Until the CRTC issues a decision on that proceeding, it is too early to determine its impact on us.

*Proceeding regarding support structure relocation compensation*

 

On January 16, 2023, we filed a proposed revision to our support structure tariff that allows support structure licensees to negotiate relocation terms and compensation directly with the party forcing the relocation, pursuant to the CRTC's direction in Telecom Decision CRTC 2022-311, *Rogers Communications Canada Inc. and Shaw Cablesystems G.P. – Application regarding compensation for transmission line relocation in British Columbia*. On June 5, 2024, the CRTC released Telecom Order 2024-122, directing us to file, within 30 days, a proposal to compensate attaching carriers through our Support Structure Tariff. On July 5, 2024, as directed by the CRTC, we filed a tariff application proposing a formula to compensate attaching carriers. If approved, it is expected that the impact will be limited in practice, as it is only applicable when we receive compensation from a public authority requesting a relocation of TELUS-owned poles. We are now awaiting a Commission decision on the tariff application.

*Legislation to ban the use of replacement workers during strikes and lockouts*

 

In November 2023, the federal government introduced Bill C-58, which would establish greater limitations on employers in federally regulated industries from using replacement workers during work stoppages related to collective bargaining. Bill C-58 received royal assent in June 2024 and came into force in June 2025. This law may affect how we continue to provide our services during strikes or lockouts, subject to the applicability of exceptions and limitations provided in the law. The effect of the law on us before or during a work stoppage could be material.

**Broadcasting and content-related issues**

*Regulatory plan to modernize Canada's broadcasting system*

 

Parliament amended the *Broadcasting Act* in April 2023 to include online streaming services, and as a response, the CRTC has begun to update its regulatory framework through a multi-phase consultation process and has issued its first decisions on this matter. In September 2023, the CRTC determined that the large streaming companies, as well as traditional broadcasting undertakings like TELUS, must register their online services with the CRTC. In March 2024, the CRTC issued a decision requiring online streaming services to pay a portion of the broadcasting fees collected from the industry to cover the CRTC's operational expenditures. Because the regulations expand the pool of payors, our share of overall contributions have decreased. On June 4, 2024, the CRTC determined that online undertakings that are not affiliated with traditional Canadian broadcasting undertakings (generally the large streaming companies) will be required to contribute 5% of their Canadian revenues to support the domestic broadcasting system. Online streaming services operated by TELUS and other traditional Canadian services are not subject to this requirement. Large foreign streamers are challenging this decision with the Federal Court of Appeal, and a stay of payments has been granted pending the outcome of that appeal.

In November 2024, the CRTC launched a consultation to modernize the definition of Canadian content for television and online programming, and to review the contribution framework that will support the creation of Canadian content. A hearing on the matter was held in May 2025, and the matter remains under reserve.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

In June 2025, the CRTC held an oral hearing as part of its consultation on the market dynamics between small, medium, and large programming, distribution, and online services, and the tools available to ensure the sustainability and growth of Canada's broadcasting system. Among other things, the CRTC considered the effectiveness of current regulations in light of evolving market dynamics, and in particular, the increasing prevalence of online streaming services. We participated in this consultation and appeared at the oral hearing. We anticipate a decision later in 2025 or in 2026.

**10.** Risks and risk management

The principal risks and uncertainties that could affect our future business results and associated risk mitigation activities were described in our 2024 annual MD&A and have not materially changed since December 31, 2024. Reference is made as well to the summary of risks and uncertainties in the *Caution regarding forward-looking statements* at the beginning of this MD&A.

**11.** Definitions and reconciliations

**11.1** Non-GAAP and other specified financial measures

We have issued guidance on and report certain non-GAAP measures that are 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 Digital Experience reporting. These differences largely arise from TELUS Digital Experience adopting definitions consistent with practice in its industry. Securities regulations require such measures to be clearly defined, qualified and reconciled with their nearest GAAP measure. Certain of the metrics do not have generally accepted industry 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 Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted Net income excludes the effects of restructuring and other costs, real estate rationalization-related restructuring impairments, income tax-related adjustments, long-term debt prepayment premium, unrealized changes in virtual power purchase agreements forward element when accounted for as held for trading (see *Section 5.3*), and other adjustments (identified in the following tables). Adjusted basic EPS is calculated as adjusted Net income divided by the basic weighted-average number of Common Shares outstanding. These measures are used to evaluate performance at a consolidated level and exclude items that, in management's view, may obscure underlying trends in business performance or items of an unusual nature that do not reflect our ongoing operations. They should not be considered alternatives to Net income and basic EPS in measuring TELUS' performance.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Reconciliation of adjusted Net income**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-month periods <br> ended September 30 | Three-month periods <br> ended September 30 | Nine-month periods ended<br> September 30 | Nine-month periods ended<br> September 30 |
| ($ millions) | **2025** | 2024 | **2025** | 2024 |
| Net income attributable to Common Shares | **493** | 280 | **821** | 635 |
| Add (deduct) amounts net of amount attributable to non-controlling interests: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Restructuring and other costs | **93** | 79 | **290** | 409 |
| &nbsp;&nbsp;&nbsp;Tax effect of restructuring and other costs | **(25)** | (22) | **(74)** | (98) |
| &nbsp;&nbsp;&nbsp;Real estate rationalization-related restructuring impairments (recoveries) | **(4)** | 3 | **—** | 102 |
| &nbsp;&nbsp;&nbsp;Tax effect of real estate rationalization-related restructuring impairments (recoveries) | **1** | (1) | **—** | (27) |
| &nbsp;&nbsp;&nbsp;Income tax-related adjustments | **(11)** | (20) | **(32)** | (22) |
| &nbsp;&nbsp;&nbsp;Gain on purchase of long-term debt | **(222)** |  | **(222)** |  |
| &nbsp;&nbsp;&nbsp;Tax effect of gain on purchase of long-term debt | **25** |  | **25** |  |
| &nbsp;&nbsp;&nbsp;Long-term debt prepayment premium | **27** |  | **27** |  |
| &nbsp;&nbsp;&nbsp;Tax effect of long-term debt prepayment premium | **(7)** |  | **(7)** |  |
| &nbsp;&nbsp;&nbsp;Impairment of goodwill | **—** |  | **285** |  |
| &nbsp;&nbsp;&nbsp;Tax effect of impairment of goodwill | **—** |  | **(13)** |  |
| &nbsp;&nbsp;&nbsp;Unrealized changes in virtual power purchase agreements forward element<sup>1</sup> | **—** | 125 | **—** | 228 |
| &nbsp;&nbsp;&nbsp;Tax effect of unrealized changes in virtual power purchase agreements forward element<sup>1</sup> | **—** | (31) | **—** | (58) |
| **Adjusted Net income** | **370** | 413 | **1100** | 1169 |

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|:---|:---|
| 1 | Effective for the first quarter of 2025, arising from a prospective change in accounting policy which applies hedge accounting (see *Note 2(a)* of the interim consolidated financial statements), unrealized fair value adjustments which were previously included within Financing costs are now included within Other comprehensive income. |

---

**Reconciliation of adjusted basic EPS**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-month periods <br> ended September 30 | Three-month periods <br> ended September 30 | Nine-month periods ended<br> September 30 | Nine-month periods ended<br> September 30 |
| ($) | **2025** | 2024 | **2025** | 2024 |
| Basic EPS | **0.32** | 0.19 | **0.54** | 0.43 |
| Add (deduct) amounts net of amount attributable to non-controlling interests: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Restructuring and other costs, per share | **0.07** | 0.05 | **0.19** | 0.27 |
| &nbsp;&nbsp;&nbsp;Tax effect of restructuring and other costs, per share | **(0.02)** | (0.01) | **(0.05)** | (0.06) |
| &nbsp;&nbsp;&nbsp;Real estate rationalization-related restructuring impairments (recoveries), per share | **—** |  | **—** | 0.07 |
| &nbsp;&nbsp;&nbsp;Tax effect of real estate rationalization-related restructuring impairments (recoveries), per share | **—** |  | **—** | (0.02) |
| &nbsp;&nbsp;&nbsp;Income tax-related adjustments, per share | **(0.01)** | (0.01) | **(0.02)** | (0.01) |
| &nbsp;&nbsp;&nbsp;Gain on purchase of long-term debt, per share | **(0.15)** |  | **(0.15)** |  |
| &nbsp;&nbsp;&nbsp;Tax effect of gain on purchase of long-term debt, per share | **0.02** |  | **0.02** |  |
| &nbsp;&nbsp;&nbsp;Long-term debt prepayment premium, per share | **0.02** |  | **0.02** |  |
| &nbsp;&nbsp;&nbsp;Tax effect of long-term debt prepayment premium, per share | **(0.01)** |  | **(0.01)** |  |
| &nbsp;&nbsp;&nbsp;Impairment of goodwill, per share | **—** |  | **0.19** |  |
| &nbsp;&nbsp;&nbsp;Tax effect of impairment of goodwill, per share | **—** |  | **(0.01)** |  |
| &nbsp;&nbsp;&nbsp;Unrealized changes in virtual power purchase agreements forward element, per share<sup>1</sup> | **—** | 0.08 | **—** | 0.15 |
| &nbsp;&nbsp;&nbsp;Tax effect of unrealized changes in virtual power purchase agreements forward element, per share<sup>1</sup> | **—** | (0.02) | **—** | (0.04) |
| **Adjusted basic EPS** | **0.24** | 0.28 | **0.72** | 0.79 |

---

---

| | |
|:---|:---|
| 1 | Effective for the first quarter of 2025, arising from a prospective change in accounting policy which applies hedge accounting (see *Note 2(a)* of the interim consolidated financial statements), unrealized fair value adjustments which were previously included within Financing costs are now included within Other comprehensive income. |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-2img001.jpg) | <br>Page 53 of 60 |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Available liquidity:** This is a non-GAAP measure that does not have any standardized meaning prescribed by IFRS Accounting Standards and is therefore unlikely to be comparable to similar measures presented by other issuers. Available liquidity is calculated as the sum of Cash and temporary investments, net, amounts available from the revolving credit facility, and amounts available under our trade receivables and unbilled customer finance receivables securitization program, measured at the end of the period. We believe this to be a useful measure because it allows us to monitor compliance with our financial objectives. It should not be considered as an alternative to Cash and temporary investments, net, in measuring TELUS' performance.

**Available liquidity reconciliation**

---

| | | |
|:---|:---|:---|
| As at September 30 ($ millions) | **2025** | 2024 |
| Cash and temporary investments, net | **1827** | 814 |
| Net amounts available from the TELUS Corporation revolving credit facility | **1710** | 1687 |
| Amounts available under trade receivables and unbilled customer finance receivables securitization program | **680** | 679 |
| **Available liquidity** | **4217** | 3180 |

---

**Capital expenditure intensity:** This measure is calculated as capital expenditures excluding real estate development divided by Operating revenues and other income. It provides a basis for comparing the level of capital expenditures to those of other companies of varying size within the same industry.

**Calculation of Capital expenditure intensity**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Three-month periods ended September 30 ($ millions, except ratio) | **2025** | 2024<br> (restated) | **2025** | 2024 | **2025** | 2024 | **2025** | 2024<br> (restated) | **2025** | 2024 |
| Numerator – Capital expenditures excluding real estate development | **534** | 569 | **56** | 53 | **42** | 30 | **(16)** | (12) | **616** | 640 |
| Denominator – Operating revenues and other income | **3877** | 3986 | **528** | 442 | **957** | 897 | **(256)** | (226) | **5106** | 5099 |
| **Capital expenditure intensity (%)** | **14** | 14 | **11** | 12 | **4** | 3 | **n/m** | n/m | **12** | 13 |

---

**Calculation of Capital expenditure intensity**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Nine-month periods ended September 30 ($ millions, except ratio) | **2025** | 2024<br> (restated) | **2025** | 2024 | **2025** | 2024 | **2025** | 2024<br> (restated) | **2025** | 2024 |
| Numerator – Capital expenditures excluding real estate development | **1611** | 1808 | **159** | 147 | **126** | 96 | **(44)** | (32) | **1852** | 2019 |
| Denominator – Operating revenues and other income | **11608** | 11606 | **1520** | 1312 | **2885** | 2757 | **(768)** | (670) | **15245** | 15005 |
| **Capital expenditure intensity (%)** | **14** | 16 | **10** | 11 | **4** | 3 | **n/m** | n/m | **12** | 13 |

---

**TELUS Corporation Common Share dividend payout ratio:** This is a historical measure calculated as the sum of the most recent four quarterly dividends declared, as recorded in the financial statements, net of dividend reinvestment plan effects, divided by the sum of free cash flow amounts for the most recent four quarters for interim reporting periods. For fiscal years, the denominator is annual free cash flow. Our objective range for the annual TELUS Corporation Common Share dividend payout ratio is on a prospective basis, rather than on a trailing basis. (See *Section 4.3 Liquidity and capital resources* and *Section 7.5 Liquidity and capital resource measures.*)

**Calculation of ratio of Common Share dividends declared to cash provided by operating activities less capital expenditures**

*Determined using most comparable IFRS Accounting Standards measures*

---

| | | |
|:---|:---|:---|
| For the 12-month periods ended September 30<br> ($ millions, except ratio) | **2025** | 2024 |
| Numerator – Sum of the most recent four quarterly dividends declared | **2488** | 2259 |
| Cash provided by operating activities | **4813** | 5084 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | **(2468)** | (2617) |
| Denominator – Cash provided by operating activities less capital expenditures | **2345** | 2467 |
| **Ratio (%)** | **106** | 92 |

---

---

| | |
|:---|:---|
| ![](tm2525674d1_ex99-2img001.jpg) | <br>Page 54 of 60 |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Calculation of Common Share dividend payout ratio, net of dividend reinvestment plan effects**

*Determined using management measures*

---

| | | |
|:---|:---|:---|
| For the 12-month periods ended September 30 ($ millions, except ratio) | **2025** | 2024 |
| Sum of the most recent four quarterly dividends declared | **2488** | 2259 |
| Sum of the amounts of the most recent four quarterly dividends declared reinvested in Common Shares | **(860)** | (697) |
| Numerator – Sum of the most recent four quarterly dividends declared, net of dividend reinvestment plan effects | **1628** | 1562 |
| Denominator – Free cash flow | **2168** | 2043 |
| **Ratio (%)** | **75** | 76 |

---

**Earnings coverage:** This measure is defined in the Canadian Securities Administrators' National Instrument 41-101 and related instruments, and is calculated as follows:

**Calculation of Earnings coverage**

---

| | | |
|:---|:---|:---|
| For the 12-month periods ended September 30 <br> ($ millions, except ratio) | **2025** | 2024 |
| Net income attributable to Common Shares | **1179** | 923 |
| Income taxes (attributable to Common Shares) | **435** | 236 |
| Borrowing costs (attributable to Common Shares)<sup>1</sup> | **1404** | 1289 |
| Numerator | **3018** | 2448 |
| Denominator – Borrowing costs | **1404** | 1289 |
| **Ratio (times)** | **2.1** | 1.9 |

---

---

| | |
|:---|:---|
| 1 | Interest on Long-term debt (including dividend obligations on preferred shares that are required to be accounted for as financial liabilities) plus Interest on short-term borrowings and other plus long-term debt prepayment premium, adding capitalized interest and deducting borrowing costs attributable to non-controlling interests. |

---

**EBITDA** (earnings before interest, income taxes, depreciation and amortization): We have issued guidance on and report EBITDA because it is a key measure used to evaluate performance at a consolidated level. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. EBITDA should not be considered as an alternative to Net income in measuring TELUS' performance, nor should it be used as a measure of cash flow. EBITDA as calculated by TELUS is equivalent to Operating revenues and other income less the total of Goods and services purchased expense and Employee benefits expense.

We calculate EBITDA – excluding restructuring and other costs, as it is a component of the **EBITDA – excluding restructuring and other costs interest coverage** ratio and the **Net debt to EBITDA – excluding restructuring and other costs** ratio.

We also calculate **Adjusted EBITDA** to exclude items of an unusual nature that do not reflect our ongoing operations and should not, in our opinion, be considered in a long-term valuation metric or should not be included in an assessment of our ability to service or incur debt.

**EBIT** (earnings (loss) before interest and income taxes) is calculated for our reportable segments because we believe it is a meaningful indicator of our operating performance, as it represents our earnings (loss) from operations before costs of capital structure and income taxes.

**EBITDA and Adjusted EBITDA reconciliations**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Three-month periods ended September 30 ($ millions) | **2025** | 2024 <br>(restated) | **2025** | **2024** | **2025** | **2024** | **2025** | 2024 | **2025** | 2024 |
| Net income |  |  |  |  |  |  |  |  | **431** | 257 |
| Financing costs |  |  |  |  |  |  |  |  | **154** | 479 |
| Income taxes |  |  |  |  |  |  |  |  | **157** | 52 |
| **EBIT** | **872** | 838 | **(47)** | (38) | **(64)** |  | **(19)** | (12) | **742** | 788 |
| Depreciation | **529** | 537 | **21** | 14 | **71** | 46 | **—** |  | **621** | 597 |
| Amortization of intangible assets | **224** | 220 | **105** | 88 | **61** | 63 | **—** |  | **390** | 371 |
| **EBITDA** | **1625** | 1595 | **79** | 64 | **68** | 109 | **(19)** | (12) | **1753** | 1756 |
| Add restructuring and other costs included in EBITDA | **60** | 55 | **12** | 9 | **37** | 22 | **—** |  | **109** | 86 |
| **EBITDA – excluding restructuring and other costs and Adjusted EBITDA** | **1685** | 1650 | **91** | **73** | **105** | 131 | **(19)** | (12) | **1862** | 1842 |
| **Combined TTech and TELUS Health Adjusted EBITDA** |  |  | **1776** | 1723 |  |  |  |  |  |  |

---

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| | |
|:---|:---|
| ![](tm2525674d1_ex99-2img001.jpg) | <br>Page 55 of 60 |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**EBITDA and Adjusted EBITDA reconciliations**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Nine-month periods ended September 30 ($ millions) | **2025** | 2024 <br>(restated) | **2025** | **2024** | **2025** | **2024** | **2025** | 2024 | **2025** | 2024 |
| Net income |  |  |  |  |  |  |  |  | **487** | 618 |
| Financing costs |  |  |  |  |  |  |  |  | **871** | 1255 |
| Income taxes |  |  |  |  |  |  |  |  | **311** | 172 |
| **EBIT** | **2449** | 2119 | **(113)** | (187) | **(620)** | 147 | **(47)** | (34) | **1669** | 2045 |
| Depreciation | **1593** | 1687 | **44** | 67 | **177** | 141 | **—** |  | **1814** | 1895 |
| Amortization of intangible assets | **702** | 678 | **299** | 268 | **192** | 184 | **—** |  | **1193** | 1130 |
| Impairment of goodwill | **—** |  | **—** |  | **500** |  | **—** |  | **500** |  |
| **EBITDA** | **4744** | 4484 | **230** | 148 | **249** | 472 | **(47)** | (34) | **5176** | 5070 |
| Add restructuring and other costs included in EBITDA | **194** | 327 | **28** | 54 | **117** | 44 | **—** |  | **339** | 425 |
| **EBITDA – excluding restructuring and other costs and Adjusted EBITDA** | **4938** | 4811 | **258** | 202 | **366** | 516 | **(47)** | (34) | **5515** | 5495 |
| **Combined TTech and TELUS Health Adjusted EBITDA** |  |  | **5196** | 5013 |  |  |  |  |  |  |

---

**Adjusted EBITDA less capital expenditures** is calculated for our reportable segments, as it represents a performance measure that may be more comparable to similar measures presented by other issuers.

**Adjusted EBITDA less capital expenditures reconciliation**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Three-month periods ended September 30 ($ millions) | **2025** | 2024 <br>(restated) | **2025** | **2024** | **2025** | **2024** | **2025** | 2024 | **2025** | 2024 |
| Adjusted EBITDA | **1685** | 1650 | **91** | **73** | **105** | 131 | **(19)** | (12) | **1862** | 1842 |
| Capital expenditures | **(570)** | (597) | **(56)** | **(53)** | **(42)** | (30) | **16** | 12 | **(652)** | (668) |
| **Adjusted EBITDA less capital expenditures** | **1115** | 1053 | **35** | **20** | **63** | 101 | **(3)** |  | **1210** | 1174 |

---

**Adjusted EBITDA less capital expenditures reconciliation**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Nine-month periods ended September 30 ($ millions) | **2025** | 2024 <br>(restated) | **2025** | **2024** | **2025** | **2024** | **2025** | 2024 | **2025** | 2024 |
| Adjusted EBITDA | **4938** | 4811 | **258** | 202 | **366** | 516 | **(47)** | (34) | **5515** | 5495 |
| Capital expenditures | **(1676)** | (1873) | **(159)** | (147) | **(126)** | (96) | **44** | 32 | **(1917)** | (2084) |
| **Adjusted EBITDA less capital expenditures** | **3262** | 2938 | **99** | 55 | **240** | 420 | **(3)** | (2) | **3598** | 3411 |

---

We calculate **EBITDA margin** and **Adjusted EBITDA margin** to evaluate the performance of our operating segments and we believe these measures are also used by investors as indicators of a company's operating performance. We calculate EBITDA margin as EBITDA divided by Operating revenues and other income. Adjusted EBITDA margin is a non-GAAP ratio that does not have any standardized meaning prescribed by IFRS Accounting Standards and is therefore unlikely to be comparable to similar measures presented by other issuers. We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by adjusted Operating revenues and other income.

---

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|:---|:---|
| ![](tm2525674d1_ex99-2img001.jpg) | <br>Page 56 of 60 |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Calculation of EBITDA margin**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Three-month periods ended September 30 ($ millions, except margin) | **2025** | 2024 <br>(restated) | **2025** | **2024** | **2025** | **2024** | **2025** | 2024 <br>(restated) | **2025** | 2024 |
| Numerator – EBITDA | **1625** | 1595 | **79** | 64 | **68** | 109 | **(19)** | (12) | **1753** | 1756 |
| Denominator – Operating revenues and other income | **3877** | 3986 | **528** | **442** | **957** | 897 | **(256)** | (226) | **5106** | 5099 |
| **EBITDA margin (%)** | **41.9** | 39.9 | **14.9** | **14.5** | **7.1** | 12.1 | **n/m** | n/m | **34.3** | 34.4 |

---

**Calculation of EBITDA margin**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Nine-month periods ended September 30 ($ millions, except margin) | **2025** | 2024<br> (restated) | **2025** | 2024 | **2025** | 2024 | **2025** | 2024 <br> (restated) | **2025** | 2024 |
| Numerator – EBITDA | **4744** | 4484 | **230** | 148 | **249** | 472 | **(47)** | (34) | **5176** | 5070 |
| Denominator – Operating revenues and other income | **11608** | 11606 | **1520** | 1312 | **2885** | 2757 | **(768)** | (670) | **15245** | 15005 |
| **EBITDA margin (%)** | **40.9** | 38.6 | **15.1** | 11.3 | **8.7** | 17.1 | **n/m** | n/m | **34.0** | 33.8 |

---

**Calculation of Adjusted EBITDA margin**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Three-month periods ended September 30 ($ millions, except margin) | **2025** | 2024 <br> (restated) | **2025** | 2024 | **2025** | 2024 | **2025** | 2024 <br> (restated) | **2025** | 2024 |
| Numerator – Adjusted EBITDA | **1685** | 1650 | **91** | **73** | **105** | 131 | **(19)** | (12) | **1862** | 1842 |
| Denominator – Operating revenues and other income | **3877** | 3986 | **528** | **442** | **957** | 897 | **(256)** | (226) | **5106** | 5099 |
| **Adjusted EBITDA margin (%)** | **43.4** | 41.3 | **17.1** | **16.5** | **11.1** | 14.5 | **n/m** | n/m | **36.5** | 36.1 |

---

**Calculation of Adjusted EBITDA margin**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **TTech** | **TTech** | **TELUS Health** | **TELUS Health** | **TELUS Digital** | **TELUS Digital** | **Eliminations** | **Eliminations** | **Total** | **Total** |
| Nine-month periods ended September 30 ($ millions, except margin) | **2025** | 2024<br> (restated) | **2025** | 2024 | **2025** | 2024 | **2025** | 2024<br> (restated) | **2025** | 2024 |
| Numerator – Adjusted EBITDA | **4938** | 4811 | **258** | 202 | **366** | 516 | **(47)** | (34) | **5515** | 5495 |
| Denominator – Operating revenues and other income | **11608** | 11606 | **1520** | 1312 | **2885** | 2757 | **(768)** | (670) | **15245** | 15005 |
| **Adjusted EBITDA margin (%)** | **42.5** | 41.4 | **16.9** | 15.4 | **12.7** | 18.7 | **n/m** | n/m | **36.2** | 36.6 |

---

**EBITDA – excluding restructuring and other costs interest coverage:** This measure is defined as EBITDA – excluding restructuring and other costs, divided by net interest cost, calculated on a 12-month trailing basis. It is similar to the coverage ratio covenant in our credit facilities, as described in *Section 7.6 Credit facilities*.

**Calculation of EBITDA – excluding restructuring and other costs interest coverage**

---

| | | |
|:---|:---|:---|
| For the 12-month periods ended September 30 <br> ($ millions, except ratio) | **2025** | 2024 |
| Numerator – EBITDA – excluding restructuring and other costs | **7353** | 7342 |
| Denominator – Net interest cost | **1418** | 1370 |
| **Ratio (times)** | **5.2** | 5.4 |

---

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|:---|:---|
| ![](tm2525674d1_ex99-2img001.jpg) | <br>Page 57 of 60 |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Free cash flow:** We report this measure as a supplementary indicator of our operating performance, and there is no generally accepted industry definition of free cash flow. It should not be considered as an alternative to the measures in the condensed interim consolidated statements of cash flows. Free cash flow excludes certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as reported in the condensed interim consolidated statements of cash flows. It provides an indication of how much cash generated by operations is available after capital expenditures that may be used to, among other things, pay dividends, repay debt, purchase shares or make other investments. We exclude impacts of accounting standards that do not impact cash, such as IFRS 15 and IFRS 16. Free cash flow may be supplemented from time to time by proceeds from divested assets or financing activities.

**Free cash flow calculation**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-month periods<br> ended September 30 | Three-month periods<br> ended September 30 | Nine-month periods ended<br> September 30 | Nine-month periods ended<br> September 30 |
| ($ millions) | **2025** | 2024 | **2025** | 2024 |
| EBITDA | **1753** | 1756 | **5176** | 5070 |
| Restructuring and other costs, net of disbursements | **18** | 21 | **10** | 5 |
| Effects of contract asset, acquisition and fulfilment (IFRS 15 impact) and TELUS Easy Payment mobile device financing | **35** | (22) | **130** | 29 |
| Effects of lease principal (IFRS 16 impact) | **(137)** | (171) | **(506)** | (503) |
| Items from the condensed interim consolidated statements of cash flows: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation, net of employee share purchase plan cash outflows | **43** | 51 | **127** | 123 |
| &nbsp;&nbsp;&nbsp;Net employee defined benefit plans expense | **16** | 16 | **45** | 50 |
| &nbsp;&nbsp;&nbsp;Employer contributions to employee defined benefit plans | **(6)** | (2) | **(16)** | (16) |
| &nbsp;&nbsp;&nbsp;Loss from equity accounted investments | **1** | 3 | **(1)** | 13 |
| &nbsp;&nbsp;&nbsp;Interest paid (excluding discretionary cash payment of dividends accounted for as interest) | **(399)** | (362) | **(1078)** | (1011) |
| &nbsp;&nbsp;&nbsp;Interest received | **16** | 9 | **38** | 30 |
| Capital expenditures<sup>1</sup> | **(652)** | (668) | **(1917)** | (2084) |
| Free cash flow before income taxes | **688** | 631 | **2008** | 1706 |
| Income taxes paid, net of refunds | **(77)** | (63) | **(374)** | (258) |
| **Free cash flow** | **611** | 568 | **1634** | 1448 |

---

1 Refer to *Note 31* of the interim consolidated financial statements for further information.

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| ![](tm2525674d1_ex99-2img001.jpg) | <br>Page 58 of 60 |

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

The following reconciles our definition of free cash flow with Cash provided by operating activities.

**Free cash flow reconciliation with Cash provided by operating activities**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-month periods <br> ended September 30 | Three-month periods <br> ended September 30 | Nine-month periods ended<br> September 30 | Nine-month periods ended<br> September 30 |
| ($ millions) | **2025** | 2024 | **2025** | 2024 |
| **Free cash flow** | **611** | 568 | **1634** | 1448 |
| Add (deduct): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures<sup>1</sup> | **652** | 668 | **1917** | 2084 |
| &nbsp;&nbsp;&nbsp;Effect of lease principal | **137** | 171 | **506** | 503 |
| &nbsp;&nbsp;&nbsp;Net change in non-cash operating working capital not included in preceding line items and other individually immaterial items included in Net income neither providing nor using cash | **93** | 25 | **(321)** | (265) |
| **Cash provided by operating activities** | **1493** | 1432 | **3736** | 3770 |

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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 mobile phone subscribers on the network during the period, and is expressed as a rate per month.

**Net debt:** We believe that net debt is a useful measure because it represents the amount of Short-term borrowings and long-term debt obligations that are not covered by available Cash and temporary investments. The nearest IFRS Accounting Standards measure to net debt is Long-term debt, including Current maturities of Long-term debt. Net debt is a component of the **Net debt to EBITDA – excluding restructuring and other costs** ratio.

**Net debt to EBITDA – excluding restructuring and other costs:** This measure is defined as net debt at the end of the period divided by 12-month trailing EBITDA – excluding restructuring and other costs. (See discussion in *Section 7.5 Liquidity and capital resource measures.*) This measure is similar to the leverage ratio covenant in our credit facilities, as described in *Section 7.6 Credit facilities*.

**Calculation of Net debt to EBITDA – excluding restructuring and other costs**

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| | | |
|:---|:---|:---|
| For the 12-month periods ended September 30 ($ millions, except ratio) | **2025** | 2024 |
| Numerator – Net debt | **25663** | 28109 |
| Denominator – EBITDA – excluding restructuring and other costs | **7353** | 7342 |
| **Ratio (times)** | **3.5** | 3.8 |

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**Net interest cost:** This measure is the denominator in the calculation of **EBITDA – excluding restructuring and other costs interest coverage**. Net interest cost is defined as financing costs, excluding capitalized long-term debt interest, employee defined benefit plans net interest, unrealized changes in virtual power purchase agreements forward element when accounted for as held for trading (see *Section 5.3*), and recoveries on redemption and repayment of debt, calculated on a 12-month trailing basis. Expenses recorded for the long-term debt prepayment premium, if any, are included in net interest cost.

**Calculation of net interest cost**

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| | | |
|:---|:---|:---|
| For the 12-month periods ended September 30 ($ millions) | **2025** | 2024 |
| Financing costs | **1192** | 1533 |
| Add (deduct): |  |  |
| &nbsp;&nbsp;&nbsp;Employee defined benefit plans net interest | **(11)** | (9) |
| &nbsp;&nbsp;&nbsp;Interest on long-term debt, excluding lease liabilities and other – capitalized | **18** | 15 |
| &nbsp;&nbsp;&nbsp;Gain on purchase of long-term debt | **222** |  |
| &nbsp;&nbsp;&nbsp;Unrealized changes in virtual power purchase agreements forward element | **(3)** | (169) |
| **Net interest cost** | **1418** | 1370 |

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**11.2** Operating indicators

The following measures are industry metrics that are useful in assessing the operating performance of a mobile and fixed telecommunications entity, but do not have a standardized meaning under IFRS Accounting Standards.

**Churn** is calculated as the number of subscribers deactivated during a given period divided by the average number of subscribers on the network during the period, and is expressed as a rate per month. Mobile phone churn refers to the aggregate average of both prepaid and postpaid mobile phone churn. A TELUS, Koodo<sup>®</sup> or Public Mobile<sup>®</sup> brand prepaid mobile phone subscriber is deactivated when the subscriber has no usage for 90 days following expiry of the prepaid credits.

**Connected device subscriber** means a subscriber on an active TELUS service plan with a recurring revenue-generating portable unit (e.g. tablets, internet keys, Internet of Things, wearables and connected cars) that is supported by TELUS and is intended for limited or no cellular voice capability.

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TELUS Corporation – Management's discussion and analysis – 2025 Q3

**Mobile phone subscriber** means a subscriber on an active TELUS service plan with a recurring revenue-generating portable unit (e.g. feature phones and smartphones) where TELUS provides voice, text and/or data connectivity.

**Internet subscriber** means a subscriber on an active TELUS internet plan with a recurring revenue-generating unit where TELUS provides internet connectivity.

**Residential voice subscriber** means a subscriber on an active TELUS phone plan with a recurring revenue-generating unit where TELUS provides voice service.

**Security and automation subscriber** means a subscriber on an active TELUS plan with a recurring revenue-generating unit that is connected to the TELUS security and automation platform.

**TV subscriber** means a subscriber on an active TELUS TV plan with a recurring revenue-generating subscription for video services from a TELUS TV platform.

**Healthcare lives covered** means 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, personal health security, and employee and family assistance programs). This count includes clients who utilize TELUS Health services either directly or indirectly. It is probable that some members and their dependents will be a user of multiple TELUS Health services.

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