Telus 2011 Annual Report Download - page 33

TELUS 2011 ANNUAL REPORT . 29
to continue to benefit from modestly lower financing costs
in 2012.
In November, we also entered into a new five-year $2 billion
bank credit facility with a syndicate of 15 financial institutions,
which provides TELUS with ample liquidity and backstops the
Company’s low-cost commercial paper program.
Our healthy financial position enabled us to make discretionary
contributions of $200 million in January 2011 and $100 million
in January 2012 to our defined benefit pension plans. These tax-
effective contributions positively impact earnings and help to
maintain a strong pension funding position that is among the best
in corporate Canada.
A key development in 2011 for shareholders who were
experiencing volatility and negative returns in the stock markets
due to global economic uncertainty was TELUS’ initiative to
clarify our dividend growth model. In May 2011, the Company
announced plans to continue with two dividend increases per
year to 2013, normally declared in May and November, with
an expectation that the increase would be in the range of circa
10 per cent annually. Dividend decisions will continue to be
subject to the Board’s assessment of the Company’s financial
situation and outlook on a quarterly basis.
In 2011, TELUS shareholders enjoyed a total return,
including dividends, of 32 per cent as compared to a negative
nine per cent total return for the Toronto Stock Exchange
overall com posite index.
A passion for excellence
Our disclosure practices continue to gain external recognition.
Our 2010 annual report was ranked eighth best in the world
by the Annual Report on Annual Reports, a global ranking of
1,500 companies. IR Magazine, through a survey of more than
250 investment professionals, recognized TELUS early in 2012
for having the best financial reporting and fourth best investor
relations program in Canada.
As well, the Canadian Institute of Chartered Accountants
(CICA) recognized TELUS with the Overall Award of Excellence
for Corporate Reporting, CICA’s highest award in Canada, for
the fourth time in the last five years. We also received Honourable
Mention (second) for Excellence in Sustainable Development
Reporting.
Growing value
Building on the momentum created in 2011, we are optimistic
about our future prospects while aware of the many risks we
face, whether they be competitive, need for spectrum or
otherwise. This positive outlook is reflected in our 2012 targets
and the clarity of our dividend growth model
out to 2013.
Our financial strength, unrelenting focus on our growth
strategy and disciplined adherence to our financial policies serve
to posi tion TELUS for continued success and should provide
ongoing value for investors.
Sincerely,
Robert McFarlane
Executive Vice-President and Chief Financial Officer
February 23, 2012
consolidated and segmented 2012 targets
and expected growth
Revenues
$10.7 to
$11.0 billion
3 to 6%
EBITDA
$3.8 to
$4.0 billion
1 to 6%
Basic earnings
per share (EPS)
$3.75 to $4.15
0 to 10%
Capital
expenditures
Approximately
$1.85 billion
no change
Wireless
revenues
$5.75 to
$5.9 billion
5 to 8%
Wireless
EBITDA
$2.3 to
$2.4 billion
5 to 10%
Wireline
revenues
$4.95 to
$5.1 billion
0 to 3%
Wireline
EBITDA
$1.5 to
$1.6 billion
(6) to 1%