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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 20-F

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE

ACT OF 1934

OR

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF

1934

OR

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934
Date of event requiring this shell company report:

Commission File number: 001-39968

______________________________________________________________________________________________________

TELUS International (Cda) Inc.

(Exact name of Registrant as specified in its charter)
______________________________________________________________________________________________________

Not Applicable
(Translation of Registrant’s name into English)

Province of British Columbia

(Jurisdiction of incorporation or organization)

Floor 7, 510 West Georgia Street

Vancouver, BC V6B 0M3
(Address of principal executive offices)

Michel Belec
Chief Legal Officer
TELUS International (Cda) Inc.
Floor 7, 510 West Georgia Street
Vancouver, BC V6B 0M3
Tel: (604) 695-6400
(Name, telephone, e-mail and/or facsimile number and address of Company contact person)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class Trading symbol Name of each exchange on which registered
Subordinate voting share, no par value TIXT New York Stock Exchange
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Securities registered or to be registered pursuant to Section 12(g) of the Act. None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period
covered by the annual report.

At February 9, 2023, 73,083,886 subordinate voting shares were issued and outstanding.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o
No x

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes o No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was
required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See
definition of accelerated filer and large accelerated filer in Rule 12b of the Exchange Act. (Check one):

Large accelerated filer x Accelerated filer o Non-accelerated Filer o Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if
the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. o

The term new or revised financial accounting standard refers to any update issued by the Financial Accounting Standards Board
to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the
registrant included in the filing reflect the correction of an error to previously issued financial statements □

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-
based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §
240.10D-1(b). □

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this
filing:

x International Financial Reporting Standards as issued by the International Accounting

o US GAAP Standards Board o Other

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the
registrant has elected to follow o Item 17 o Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes ☐ No x
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TABLE OF CONTENTS
INTRODUCTION 2
PART I 4
ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS 4
ITEM 2 OFFER STATISTICS AND EXPECTED TIMETABLE 4
ITEM 3 KEY INFORMATION 4
ITEM 4 INFORMATION ON THE COMPANY 31
ITEM 4A UNRESOLVED STAFF COMMENTS 40
ITEM 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS 40
ITEM 6 DIRECTORS, EXECUTIVE MANAGEMENT AND EMPLOYEES 62
ITEM 7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 103
ITEM 8 FINANCIAL INFORMATION 110
ITEM 9 THE OFFER AND LISTING 110
ITEM 10 ADDITIONAL INFORMATION 111
ITEM 11 QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISKS 124
ITEM 12 DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 124
ITEM 12A DEBT SECURITIES 124
ITEM 12B WARRANTS AND RIGHTS 125
ITEM 12C OTHER SECURITIES 125
ITEM 12D AMERICAN DEPOSITARY SHARES 125
PART II 126
ITEM 13 DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 126
ITEM 14 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS 126
ITEM 15 CONTROLS AND PROCEDURES 126
ITEM 16A AUDIT COMMITTEE FINANCIAL EXPERTS 127
ITEM 16B CODE OF ETHICS 127
ITEM 16C PRINCIPAL ACCOUNTANT FEES AND SERVICES 127
ITEM 16D EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 128
ITEM 16E PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED 128
ITEM 16F CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT 128
ITEM 16G CORPORATE GOVERNANCE 128
ITEM 16H MINE SAFETY DISCLOSURE 128
PART III 129
ITEM 17 FINANCIAL STATEMENTS 129
ITEM 18 FINANCIAL STATEMENTS 129
ITEM 19 EXHIBITS 129
SIGNATURES 132
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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INTRODUCTION

Unless otherwise indicated or where the context requires otherwise, all references in this annual report on Form 20-F (Annual
Report) to the “Company”, “TELUS International”, “TI”, “we”, “us”, “our” or similar terms refer to TELUS International
(Cda) Inc. and its subsidiaries. All references in this Annual Report to “TELUS” refer to TELUS Corporation and its
subsidiaries other than TELUS International. All references in this Annual Report to “BPEA” refer to BPEA EQT, formed as a
result of the combination of Baring Private Equity Asia and EQT Asia in 2022. All references in this Annual Report to
“Competence Call Center” or “CCC” refer to the entirety of the assets and operations of CCC Holding GmbH which was
merged into TELUS International Germany GmbH on December 16, 2020 with TELUS International Germany GmbH as the
surviving entity. All references to “TELUS International AI Data Solutions”, “TIAI Data Solutions”, “Lionbridge AI” or
“TIAI” refer to the data annotation business of Lionbridge Technologies, Inc, which we acquired on December 31, 2020 and
Playment, an India-based leader in computer vision tools and services, which we acquired on July 2, 2021. All references to
“WillowTree” refer to WT Blocker Corp and its subsidiaries, which we acquired on January 3, 2023.

We use various trademarks, trade names and service marks in our business, including TELUS, which is used under
license from TELUS Corporation. For convenience, we may not include the ® or ™ symbols, but such omission is not meant to
indicate that we would not protect our intellectual property rights to the fullest extent allowed by law. Any other trademarks,
trade names or service marks referred to in this Annual Report are the property of their respective owners.

FORWARD-LOOKING STATEMENTS

This Annual Report contains forward-looking statements concerning our business, operations and financial performance and
condition, as well as our plans, objectives and expectations for our business operations and financial performance and
condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking
statements. In some cases, you can identify forward-looking statements by terminology such as “aim”, “anticipate”, “assume”,
“believe”, “contemplate”, “continue”, “could”, “due”, “estimate”, “expect”, “goal”, “intend”, “may”, “objective”, “plan”,
“predict”, “potential”, “positioned”, “seek”, “should”, “target”, “will”, “would” and other similar expressions that are
predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology.

These forward-looking statements include, but are not limited to, statements about:

• our ability to execute our growth strategy, including by expanding services offered to existing clients and
attracting new clients;

• our ability to maintain our corporate culture and competitiveness of our service offerings;

• our ability to attract and retain talent;

• our ability to integrate, and realize the benefits of, our acquisition of WillowTree;

• the relative growth rate and size of our target industry verticals;

• our projected operating and capital expenditure requirements; and

• the impact of global conditions on our and our clients’ businesses, including a potential economic recession,
inflation, rising interest rates, the Russia-Ukraine conflict and the variants arising from the COVID-19 pandemic.

These factors should not be construed as exhaustive and should be read with the other cautionary statements in this Annual
Report. These forward-looking statements are based on our current expectations, estimates, forecasts and projections about our
business and the industry in which we operate and management’s beliefs and assumptions, and are not guarantees of future
performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases
beyond our control. As a result, any or all of our forward-looking statements in this Annual Report may turn out to be
inaccurate. Factors that may cause actual results to differ materially from current expectations include, among other things,
those listed under “Risk Factors” and elsewhere in this Annual Report. Potential investors are urged to consider these factors
carefully in evaluating the forward-looking statements. Comparisons of results for current and any prior periods are not
intended to express any future trends or indications of future performance, unless specifically expressed as such, and should
only be viewed as historical data. These forward-looking statements speak only as at the date of this Annual Report. Except as
required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new
information becomes available in the future.

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This Annual Report contains estimates, projections, market research and other information concerning our industry,
our business, and the markets for our services. Information that is based on estimates, forecasts, projections, market research or
similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from
events and circumstances that are assumed in this information. Unless otherwise expressly stated, we obtained this industry,
business, market and other data from our own internal estimates and research as well as from reports, research surveys, studies
and similar data prepared by market research firms and other third parties, industry and general publications, government data
and similar sources.

In addition, assumptions and estimates of our and our industry’s future performance are necessarily subject to a high
degree of uncertainty and risk due to a variety of factors, including those described in “Risk Factors”. These and other factors
could cause our future performance to differ materially from our assumptions and estimates.

Any references to forward-looking statements in this Annual Report include forward-looking information within the
meaning of applicable Canadian securities laws.

PRESENTATION OF FINANCIAL AND OTHER INFORMATION

The annual consolidated financial statements of TELUS International included in this Annual Report are presented in
accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board
(IASB), and consist of the consolidated statements of financial position as at December 31, 2022 and 2021 and the consolidated
statements of income and other comprehensive income, changes in owners’ equity, and cash flows, for each of the years in the
three-year period ended December 31, 2022.

In this Annual Report, unless otherwise specified, all monetary amounts are in U.S. dollars, all references to “US$”,
“$”, “USD” and “dollars” mean U.S. dollars and all references to “C$”, “CDN$” and “CAD$”, mean Canadian dollars, and all
references to “euro” and “€” mean the currency of the European Union.

ENFORCEMENT OF CIVIL LIABILITIES

We are incorporated under the laws of the Province of British Columbia, Canada, with our principal place of business in
Vancouver, Canada. Some of our directors and officers, and the experts named in this Annual Report, are residents of Canada,
the United States or elsewhere, and all or a substantial portion of their assets, and all or a substantial portion of our assets, are
located outside of the United States. As a result, it may be difficult for shareholders who reside in the United States to effect
service within the United States upon those directors, officers and experts who are not residents of the United States. It may
also be difficult for shareholders who reside in the United States to realize in the United States upon judgments of courts of the
United States predicated upon our civil liability and the civil liability of our directors, officers and experts under the United
States federal securities laws. There can be no assurance that U.S. investors will be able to enforce against us, members of our
board of directors, officers or certain experts named herein who are residents of Canada or other countries outside the United
States, any judgments in civil and commercial matters, including judgments under the federal securities laws.

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PART I

ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS

Not applicable.

ITEM 2 OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3 KEY INFORMATION

B. Capitalization and Indebtedness

Not applicable.

C. Reasons for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

Risk Factors Summary

Investing in our subordinate voting shares involves a high degree of risk. You should carefully consider the risks described in
this “Item 3D—Risk Factors” before making a decision to invest in our subordinate voting shares. If any of these risks actually
occur, our business, financial condition and financial performance would likely be materially adversely affected. In such a case,
the trading price of our subordinate voting shares would likely decline and you may lose part or all of your investment. Below
is a summary of some of the principal risks we face:

• We face intense competition from companies that offer services similar to ours.
• Our growth prospects are dependent upon attracting and retaining enough qualified team members to support our
operations and competition for talent is intense.
• Our ability to grow and maintain our profitability could be materially affected if changes in technology and client
expectations outpace our service offerings and the development of our internal tools and processes or if we are not able
to meet the expectations of our clients.
• If we cannot maintain our culture as we grow, our services, financial performance and business may be harmed.
• Our business could be adversely affected if we lose one or more members of our senior management.
• Our business and financial results could be adversely affected by a number of global conditions and the effects of these
same conditions on our clients’ businesses and demand for our services.
• Three clients account for a significant portion of our revenue and loss of or reduction in business from, or
consolidation of, these or any other major clients could have a material adverse effect.
• Our business may not develop in ways that we currently anticipate due to negative public reaction to offshore
outsourcing, content moderation and proposed legislation or otherwise.
• Our business would be adversely affected if individuals providing data annotation services through TIAI’s
crowdsourcing solutions were classified as employees (not as independent contractors).
• We could be unable to successfully identify, complete, integrate and realize the benefits of acquisitions, including the
acquisition of WillowTree, or manage the associated risks.
• The unauthorized disclosure of sensitive or confidential client and customer data, through cyberattacks or otherwise,
could expose us to protracted and costly litigation, damage to reputation and cause loss of clients / revenue.
• Our policies, procedures and programs to safeguard the health, safety and security of our team members, particularly
our content moderation team members, may not be adequate, which could adversely affect our ability to attract and
retain team members and could result in increased costs, including due to claims against us.
• The dual-class structure contained in our articles has the effect of concentrating voting control and the ability to
influence corporate matters with TELUS.
• The market price of our subordinate voting shares may be affected by low trading volume and the market pricing for
our subordinate voting shares may decline as a result of future sales, or the perception of the likelihood of future sales,
by us or our shareholders in the public market.
• TELUS will, for the foreseeable future, control the TELUS International Board of Directors.

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BUSINESS & OPERATIONAL RISKS

We face intense competition from companies that offer services similar to ours. If we are unable to differentiate to compete
effectively, our business, financial performance, financial condition and cash flows could be materially adversely impacted.

The market for the services we offer is very competitive. We expect competition to intensify and increase from a number of our
existing competitors, including professional services companies that offer consulting services, information technology
companies with digital capabilities, and traditional contact center and business process outsourcing (BPO) companies that are
expanding their capabilities to offer higher-margin and higher-growth services. In addition, the continued expansion of the
services we offer and the markets we operate in will result in new and different competitors, many of which may have
significantly greater local market recognition than we do, as well as increased competition with existing competitors who are
also expanding their services to cover digital capabilities.

Many of these existing and new competitors have differing or greater financial, geographic, human and other
resources, greater technological expertise, longer operating histories and more established relationships in the verticals that we
currently serve or may expand to serve in the future. In addition, some of our competitors may enter into strategic or
commercial relationships among themselves or with larger, more established companies in order to increase their ability to
address client needs or enter into similar arrangements with potential clients. We also face competition from service providers
that operate in countries where we do not have delivery locations because our clients may, to diversify geographic risk and for
other reasons, seek to reduce their dependence on any one country by shifting work to another country in which we do not
operate. All of these factors present challenges for us in retaining and growing our business.

From time to time, our clients who currently use our services may determine that they can provide these services in-
house. As a result, we face the competitive pressure to continually offer our services in a manner that will be viewed by our
clients as better and more cost-effective than what they could provide themselves.

Our inability to compete successfully could result in increased client turnover, revenue loss, pressures on recruitment
and retention of team members, service price reductions and increased marketing and promotional expenses, or reduced
operating margins which could have a material adverse effect on our business, financial performance, financial condition and
cash flows.

Changes in technology and client expectations could outpace our service offerings and the development of our internal tools
and processes, which could have a material adverse effect on our business, growth, financial performance, financial
condition and cash flows.

Our growth, profitability and the diversity of our revenue sources depend on our ability to develop and adopt new technologies
to expand our existing offerings, proactively identify new revenue streams and improve cost efficiencies in our operations, all
while meeting rapidly evolving client expectations. Although we are focused on maintaining and enhancing the range of our
offerings, we may not be successful in anticipating or responding to our clients’ expectations and the integration of our
technology solutions into our offerings may not achieve the intended enhancements or cost reductions in our operations. New
services and technologies offered by our competitors may make our service offerings uncompetitive, which may reduce our
clients’ interest in our offerings and our ability to attract new clients. Our failure to innovate, maintain technological advantages
or respond effectively and timely to changes in technology could have a material adverse effect on our business, financial
performance, financial condition and cash flows.

If we fail to establish our digital brand and successfully market our digital service offerings, our growth prospects,
anticipated business volumes and financial performance may be adversely affected.

Certain of our existing and potential clients may only know us for our voice-based customer support services. Our ability to
realize our digital-first strategy and increase revenue across our core verticals depends on our ability to promote our digital
services. If we are not successful in establishing our digital brand and marketing our expanded service offerings to clients, our
ability to shift our existing clients into more profitable digital services and attract new clients to these service offerings may be
limited, which may adversely affect our growth prospects and anticipated business volumes and financial performance.

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If we fail to maintain a consistently high level of service experience or to meet the minimum service quality levels set out in
some of our contracts, our ability to attract new and retain existing clients and team members could be adversely affected
and our business could be adversely impacted or we could be subject to liability or penalties.

Our clients’ loyalty, likelihood to expand the services that they use with us and likelihood to recommend us is dependent upon
our ability to provide a service experience that meets or exceeds our clients’ expectations and that is differentiated from our
competitors. Our ability to attract and retain clients, and team members is highly dependent on our clients’ satisfaction ratings
and the satisfaction ratings that our clients receive from their customers based on our services, all of which affects our
reputation. If we are unable to maintain a consistently high level of service, our clients could change service providers, our
revenues and profitability could be negatively impacted, and our reputation could suffer.

Further, most of our agreements with clients contain service level and performance requirements, including
requirements relating to the quality of our services. Failure to meet these requirements could disrupt our clients’ businesses and
result in harm to our reputation, reduce the likelihood that our clients recommend us to others, oblige us to pay penalties to
clients under their contracts, reduce revenues or expose us to a claim for substantial damages, regardless of whether we are
responsible for that failure.

We may enter into non-standard agreements or terms and conditions that are unfavourable to us because we perceive
an important economic opportunity by doing so, the competitive environment requires it or our personnel did not adequately
adhere to our guidelines for the entry into contracts. If we cannot or do not perform our contractual obligations with clients, we
could face legal liability, and our contracts might not always protect us adequately through limitations on the scope and/or
amount of our potential liability. In each of these cases, we might face significant legal liability and our business, financial
performance, financial condition and cash flows could be materially and adversely affected.

If we fail to communicate and implement impactful environmental, social, governance (ESG) initiatives in accordance and
at pace with changing regulations, our business could be adversely impacted.

TELUS International's reputation with team members, customers, investors and stakeholders is related to our commitment to a
caring culture, which, among other things, prioritizes our ESG initiatives related to diversity, inclusion, equity, giving back to
our communities, environmental sustainability and good governance. As we expand our business, if we fail to live up to our
commitments or successfully communicate our achievements in this regard or we fail to do so on a timely basis, it could result
in adverse financial and operating results, and negatively impact our client retention and ability to attract and retain team
members. These activities are important to our team members and are becoming a differentiating factor for clients in selecting a
service provider. More and more companies, including many of our clients, are demanding that their service providers embody
environmental and corporate sustainability goals that reflect their own brand image and are consistent with the ones their
customers and other stakeholders have adopted. If we are unable to meet or exceed the evolving expectations of our clients in
these areas or implement initiatives on a timely basis, and effectively communicate them to our clients, our reputation may
suffer, which may negatively impact our ability to attract new and retain existing clients. As a result, we have invested
significant resources in developing and maintaining our social purpose activities, including those supporting greenhouse gas,
water consumption and energy reductions. The required levels of such investments may increase in the future as such activities
become increasingly important to our clients and team members, which would increase our costs and may adversely affect our
financial performance and cash flows.

Our business and financial results could be adversely affected by a number of global conditions which are outside our
control and these conditions could have an effect on our clients’ businesses and, as a result, levels of business activity,
demand for our services and our and our clients’ liquidity and access to capital.

Certain global conditions which are outside our control, such as economic and geopolitical conditions, acts of violence or war,
natural disasters or extreme weather events and the variants arising from the COVID-19 pandemic, could have an adverse effect
on our clients’ businesses. These conditions have created, and may continue to create, volatility, uncertainty and economic
disruption. These impacts may be particularly impactful for us given that we have operations in 28 countries as of December
31, 2022 and we service clients across multiple geographic regions.

The global economy has entered into a period of inflation, higher interest rates and slower economic growth and some
regions may experience a recessionary period and we cannot predict how long such conditions may last or what their ultimate
impact may be on our business. Global economic conditions may adversely affect our liquidity and financial condition, and the
liquidity and financial condition of our clients, increase the cost of borrowing and cause credit to become more limited and less
available, limit our ability to access financing or increase our cost of financing to meet liquidity needs, and affect the ability of
our clients to use credit to purchase our services or to make timely payments to us, all of which could have a material adverse
effect on our business, financial condition, financial performance and cash flows. Changes in the general level of economic
activity, such as decreases in business and consumer spending, could result in pricing pressure on our services and a decrease or
delay in demand for the products and services that our clients provide to their customers, and consequently reduce or delay our

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clients’ or potential clients’ demand for our services, which would reduce our revenue. In some cases, it may mean that our
clients enter into insolvency proceedings or default on their obligations to us.

Acts of violence or war may adversely affect worldwide financial markets and could potentially lead to, or exacerbate,
an economic recession, which could adversely affect our business, financial performance, financial condition and cash flows.
These events could negatively affect our clients’ levels of business activity and precipitate sudden significant changes in
regional and global economic conditions and cycles. These events also pose significant risks to our team members and to our
delivery locations and operations around the world. We generally do not have insurance for losses and interruptions caused by
terrorist attacks, military conflicts and wars. Any such event could have a material adverse effect on our business, financial
performance, financial condition and cash flows.

In particular, in February 2022, Russia, aided by Belarus, commenced military operations in Ukraine, which are still
continuing. In response to the conflict, a number of countries including the United States, Canada and other NATO countries,
have imposed significant sanctions against Russia and Belarus, and a number of individuals and enterprises in both countries.
The prolonged conflict has resulted in increased political uncertainties and volatility in the global economy, which is affecting
businesses around the world, including our clients. The scope, intensity, duration and outcome of the conflict is uncertain. If the
conflict and the sanctions intensify, this may adversely impact our clients and their demand for our services, which may have a
material adverse impact on our results of operations. Additionally, although we do not operate in Russia, Belarus or Ukraine,
we have operations and team members in neighboring countries and any escalation of the conflict could adversely impact our
operations and team members in these countries, which could materially impact our ability to deliver services to our clients, and
may have a material effect on our results of operations.

There is also no certainty that the current conflict between Russia and Ukraine will not draw military or other
intervention from additional countries, which could lead to a much larger conflict and/or additional sanctions, which could
further negatively impact the global economy. In addition, we cannot predict the impact that an escalation of the conflict may
have on our clients and their financial conditions. Any material adverse effect on our clients, including due to conflict, could
adversely impact us. Further, the risk of cybersecurity incidents has increased in connection with the ongoing conflict. It is
possible that these attacks could have collateral effects on critical communications infrastructure and financial institutions
globally, which could adversely affect our operations and could increase the frequency and severity of cyber-based attacks
against our information technology systems. The proliferation of malware from the conflict into systems unrelated to the
conflict, or cyberattacks against companies based in countries that have instituted sanctions against Russia and Belarus, such as
the United States, could also adversely affect our results of operations. To the extent the current conflict between Russia and
Ukraine adversely affects our business, it may also have the effect of heightening many other risks disclosed in this Annual
Report.

Additionally, our operations may continue to be disrupted by variants arising from the COVID-19 pandemic and
related response measures, particularly if the pandemic worsens as a result of new viral variants or otherwise. Governmental
measures and regulations, such as city or country-wide lockdowns, local, domestic and international travel restrictions,
vaccination requirements, as well as temporary closures of our sites and the enabling infrastructure necessary for our business
to operate smoothly, may continue to result in restrictions on our ability to fully deliver services to our clients. Such measures
present concerns that may dramatically affect our ability to conduct our business effectively, including, but not limited to,
adverse effects on our team members’ health, a slowdown and often a stoppage of delivery, work, travel and other activities
which are critical for maintaining on-going business activities. Our ability to continue operations effectively during an epidemic
or pandemic, or other outbreak of disease, is dependent on a number of factors, such as the continued availability of high-
quality internet bandwidth, an uninterrupted supply of electricity, the sustainability of social infrastructure to enable our team
members who are working remotely to continue delivering services, and on otherwise adequate conditions for remote-working,
all of which are outside of our control.

In addition, the effects of the pandemic have previously caused, and may in the future cause, our clients to defer
decision making, delay planned work, reduce volumes or seek to terminate current agreements with us, particularly in verticals
that are especially negatively impacted by the pandemic, such as Travel and Hospitality, as well as reduce our ability to hire
new team members, disrupt our supply chain, impair our ability to generate new business and expand relationships with existing
clients, all of which could adversely affect our business and financial condition. To the extent an epidemic, pandemic, or other
outbreak of disease adversely affects our business, financial condition, financial performance and cash flows, it may also have
the effect of heightening many of the other risks described in this “Risk Factors” section, including risks related to client
confidentiality and privacy, IT security and fraud as a result of employees working from home, and exposure to wage and hour
claims related to remote working. Even as the COVID-19 pandemic has moderated, we may see new variants arise and,
although in some cases business conditions have eased, we may continue to experience similar adverse effects resulting from
long-term changes to the behavior of our clients and a challenging economic environment that may persist.

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We are vulnerable to natural disasters, technical disruptions, pandemics, accidents and other events impacting our facilities
that could severely disrupt the normal operation of our business and adversely affect our business, financial performance,
financial condition and cash flows.

Our delivery locations and our data and voice communications, including in Central America, India, Europe and the
Philippines, in particular, may be damaged or disrupted as a result of natural disasters or extreme weather events, including
those resulting from or exacerbated by climate change, such as earthquakes, floods, volcano eruptions, heavy rains, winter
storms, tsunamis and cyclones; epidemics or pandemics, or other outbreaks of disease; technical disruptions and infrastructure
breakdowns including damage to, or interruption of, electrical grids, transportation systems, communication systems or
telecommunication cables; issues with information technology systems and networks, including computer glitches, software
vulnerabilities and electronic viruses or other malicious code; accidents and other events such as fires, floods, failures of fire
suppression and detection, heating, ventilation or air conditioning systems or other events, such as protests, riots, labor unrest,
security threats and terrorist attacks. Any of these events may lead to the disruption of information systems and
telecommunication services for sustained periods and may create delays and inefficiencies in providing services to clients and
potentially result in closure of our sites. They may also make it difficult or impossible for team members to provide our
services. Damage or destruction that interrupts our provision of services could adversely affect our reputation, our relationships
with our clients, our leadership team’s ability to administer and supervise our business or may cause us to incur substantial
additional expenditures to repair or replace damaged equipment or sites. We may also be liable to our clients for disruption in
service resulting from such damage or destruction. Our resiliency and disaster recovery plans may not be adequate to provide
continuity and reliability of service during disruptions or reduce the duration and impact of service outages sufficiently or at all.
While we currently have commercial liability insurance, our insurance coverage may be insufficient or may not provide
coverage at all for certain events. Furthermore, we may be unable to secure such insurance coverage at premiums acceptable to
us in the future, or such insurance may become unavailable. Prolonged disruption of our services could also entitle our clients to
terminate their contracts with us or require us to pay penalties or damages to our clients. Any of the above factors may
materially adversely affect our business, financial performance, financial condition and cash flows.

Our client contracts, which can be canceled at any time, are generally long-term, requiring us to estimate the resources and
time required for the contracts upfront, and contain certain price benchmarking, compliance-related penalties and other
provisions averse to us, all of which could have an adverse effect on our business, financial performance, financial
condition and cash flows.

Our client contracts typically range from three to five years and in many cases may be terminated by our clients for convenience
with limited notice and without payment of a penalty or termination fee, do not have specific volume commitments and allow
our clients to delay, postpone, cancel or remove certain services without canceling the whole contract, all of which would
adversely impact our revenue. We may not be able to replace any client that elects to terminate or not renew its contract with us,
which would reduce our revenues.

Additionally, our contracts require us to comply with, or facilitate, our clients’ compliance with numerous and
complex legal regimes on matters such as anti-corruption, internal and disclosure control obligations, data privacy and
protection, wage-and-hour standards, and employment and labor relations. Many of our contracts contain provisions that would
require us to pay penalties to our clients and provide our clients, which in some cases could result in high or unlimited liability,
with the right to terminate the contract if we do not meet pre-agreed service level requirements. Failure to meet these
requirements or accurately estimate the productivity benefits could result in the payment of significant penalties to our clients,
which in turn could have a material adverse effect on our business, financial performance, financial condition and cash flows.

A few of our contracts allow the client, in certain limited circumstances, to request a benchmark study comparing our
pricing and performance with that of an agreed list of other service providers for comparable services. Based on the results of
the study and depending on the reasons for any unfavorable variance, we may be required to make improvements in the services
we provide, reduce the pricing for services on a prospective basis to be performed under the remaining term of the contract, or
our clients could elect to terminate the contract, any of which could have an adverse effect on our business, financial
performance, financial condition and cash flows.

Some of our contracts contain provisions which, to various degrees, restrict our ability to provide certain services to
other of our clients or to companies who are in competition with our clients. Such terms may restrict the same team members
from providing services for competing clients, require us to ensure a certain distance between the locations from where we
serve competing clients or prevent us from serving a competing client from locations in the same country, all of which reduce
our flexibility in deploying our team members and delivery locations in the most effective and efficient manner and may force
us to forego opportunities to attract business from companies that compete with our existing clients, even if such opportunities
are more profitable or otherwise attractive to us.

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We may face difficulties in delivering complex projects for our clients that could cause clients to discontinue their work with
us, which may have a material adverse impact on our financial performance, financial condition and cash flows.

Our ability to continue to expand the nature, scope and complexity of our engagements depends on our ability to attract new or
existing clients to an expanded collection of service offerings. For complex projects, we are more likely to compete with large,
well-established international firms, many of which have greater resources and market reputation than we do. To compete for
these projects, we will likely incur increased sales and marketing costs and will need to maintain close relationships with our
clients and have a thorough understanding of their operations. Our success will depend upon a number of factors, including our
ability to establish such relationships, form a team with the necessary skills and meet our client needs at the necessary scale in
the required timeframes. For example, if a new program requires us to hire a large number of team members with specific skills
in a specific geography, we could face challenges in implementing the program on a client’s desired timetable or at all. Our
failure to deliver services that meet the requirements specified by our clients could result in termination of client contracts,
which could result in us being liable to our clients for significant penalties or damages and negatively impact our reputation.
More complex projects may involve multiple engagements or stages, and there is a risk that a client may choose not to retain us
for later stages or may cancel or delay additional planned engagements, which may be the more profitable portions of the
overall planned engagement. Such cancellations or delays make it difficult to plan for project resource requirements and
inaccuracies in such resource planning and allocation may have a material adverse impact on our financial performance,
financial condition and cash flows.

We often face a long selling cycle, which may or may not be successful. If we are successful but fail to then successfully
implement, negotiate a contract or, where applicable, run a pilot program, our business, financial performance, financial
condition and cash flows may be adversely affected.

We often face a long selling cycle to secure a new client contract or launch a new program for an existing client, during which
we typically incur significant business development expenses. If we are unsuccessful during the selling cycle, we will not
receive revenues or reimbursement for our expenses. If we are successful, a long implementation and contract negotiation
period could follow and, in some cases, a pilot program may also occur, all of which may not be successful. When we are
successful, our clients may experience delays in obtaining internal approvals or delays associated with technology or system
implementations, thereby delaying or lengthening the implementation cycle. We begin to receive revenues when
implementation starts. There is then a long ramping up period in order to commence providing the services, which may result in
further delay in us receiving revenues. If we are not successful in our sales cycle, implementation, negotiation of a contract,
where applicable, running a pilot program or in maintaining or reducing the duration of unprofitable initial periods in our
contracts, our business, financial performance, financial condition and cash flows may be adversely affected.

Our business may not develop in ways that we currently anticipate and demand for our services may be reduced due to
negative reaction to offshore / nearshore outsourcing or automation.

We developed our strategy for future growth based on certain assumptions regarding our industry, future demand in the market
for our services and the manner in which we would provide these services, including the assumption that a significant portion of
the services we offer will continue to be delivered through offshore / nearshore facilities. The trend of transitioning key
business processes to offshore / nearshore third parties may not continue and could reverse.

Some countries and special interest groups in the United States, Europe and other regions where we have clients have
expressed a perspective that associates offshore outsourcing with the loss of jobs in a domestic economy. This has resulted in
increased political and media attention to offshore outsourcing, especially in the United States. It is possible that there could be
a change in the existing laws that would restrict or require disclosure of offshore outsourcing by our clients or impose new
standards that have the effect of restricting the use of certain visas in the foreign outsourcing context. Some legislative
proposals, if enacted as proposed, would increase the administrative and operational complexities of establishing or maintaining
delivery locations in the locations where that legislation is introduced and could reduce client demand for our services. Such
proposals include ones that require our delivery locations disclose their geographic locations, require notice to individuals
whose personal information is disclosed to non-U.S. affiliates or subcontractors, require disclosures of companies’ foreign
outsourcing practices, or restrict U.S. private sector companies that have federal government contracts, federal grants or
guaranteed loan programs from outsourcing their services to offshore service providers. In addition, changes in laws and
regulations concerning the transfer of personal information to other jurisdictions could limit our ability to engage in work that
requires us to transfer data in one jurisdiction to another. Potential changes in tax laws may also increase the overall costs and
economics of offshore outsourcing. Such changes could have an adverse impact on the economics of outsourcing for private
companies in the United States, which could, in turn, have an adverse impact on our business with U.S. clients.

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Similar concerns have also led certain European Union jurisdictions to enact regulations which allow team members
who are dismissed as a result of transfer of services, which may include outsourcing to non-European Union companies, to seek
compensation either from the company from which they were dismissed or from the company to which the work was
transferred. This could discourage European Union companies from outsourcing work offshore and/or could result in increased
operating costs for us. In addition, there has been publicity about the negative experiences, such as theft and misappropriation
of sensitive customer data of various companies that use offshore outsourcing.

Additionally, we may face negative public reaction to increased automation of or reduction in employment positions
through the use of artificial intelligence or the other technologies we use to provide our services, which could reduce the
demand for many of our service offerings. Increased negative public perception by public and private companies and related
legislative efforts in economies around the world could have adverse impact on the demand for our services.

In providing our content moderation services, we may not meet the expectations of clients, their users, community members
and government officials.

The content that our team members analyze is selected for review by our clients, often based on user referrals or
automated identification, and is moderated by our team members, both manually and with the support of technology, based on
policies and rules that are set out by our clients.

Our team members use tools developed by our clients to identify content for moderation. These tools may fail to
identify content that violates our clients’ content policies or community guidelines or, in certain jurisdictions, legal
requirements. This could be the result of deliberate evasive actions by users, limitations in our clients’ content identification
tools, bias, errors, malfunctions and other factors. In addition, our team members may erroneously moderate content or fail to
moderate content due to the subjective nature of our clients’ policies or rules, as a result of human error, as a result of the
inadequacy or failure of technological tools that assist them in content moderation, or otherwise. Objectionable content that
users, affected community members and government officials expect to be removed could, therefore, not be subject to review
by our team members or could fail to be removed. Conversely, content that users, affected community members and
government officials expect to remain on the platform could be removed by our content moderation team members. Our
clients’ users or members of affected communities may disagree with decisions to remove (or not remove) certain content. For
example, protesters in Belgium and Bulgaria recently alleged that our content moderation decisions disproportionately
promoted anti-European and pro-Russia voices, and removed anti-Russian content that favored Ukraine.

Although the design of the methods employed to select content for review is not within the scope of the services we
provide and each of our clients sets the parameters of the types of content that we are required to moderate, the failure to
moderate (or not moderate) content that users, affected community members and government officials believe should be
moderated (or not moderated) could adversely impact our reputation for content moderation service delivery and in the
community generally, and our ability to attract and retain clients and team members. A failure to properly moderate content on
our clients’ platforms could also expose us to liability to our clients or users of our clients’ platform. Additionally, a failure to
moderate content in the manner expected by government officials in the markets where we operate could subject us to sanction.
Furthermore, as we continue to expand our content moderation service offerings, certain clients may require us to assume
liability for failure to comply with certain contractual requirements imposed by the client related to certain objectionable user-
generated content on our clients’ platforms, which may increase our costs and materially impact our results of operations.

Our inability to manage our rapid growth effectively could have an adverse effect on our business and financial results.

We are experiencing rapid growth and continue to significantly expand our operations and number of team members. We
expect to continue with our geographic expansion and develop and improve our internal systems in the locations where we
operate in order to address the anticipated continued growth of our business, which we may not be able to do effectively or on a
timely basis in order to meet the ongoing needs of our clients and to meet our current growth trajectory. We also need to
manage cultural differences between our team member populations and that may increase the risk for employment law claims.
Our inability to execute our growth strategy, to ensure the continued adequacy of our current systems or to manage our
expansion, workforce capital and other resources effectively could have a material adverse effect on our business, financial
performance, financial condition and cash flows.

We rely on certain infrastructure and third party services in order to provide our solutions and run our business and any
failure, disruption or loss of the right to use such infrastructure, or disruption in the supply of third parties’ goods and
services, could have an adverse effect on our business, client relationships, financial performance, financial condition and
cash flows.

In order to provide our solutions and run our business, we rely on certain infrastructure and third party providers for software,
services and computer hardware, either purchased or licensed.

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With respect to infrastructure, we depend on offshore and nearshore delivery locations to deliver services and so must
maintain active voice and data communications and transmission among our delivery locations, our international technology
hubs and our clients’ offices. Disruptions could result from, among other things, technical breakdowns, faulty systems or
software, computer glitches, viruses and other malicious software, weather conditions, global pandemics and geopolitical
instability. Further, our business continuity plans may not be successful in mitigating the effects of such events. We also depend
on certain significant vendors for facility storage and related maintenance of our key technology equipment and data at those
technology hubs, as well as for some of the third-party technology and platforms we sometimes use to deliver our services.
With respect to services, we rely on a limited number of cloud computing providers for a distributed computing infrastructure
platform for our business operations, or what is commonly referred to as a “cloud” computing service.

This infrastructure and third-party software, hardware, services, including cloud computing services, may not continue
to be available, may not be available on commercially reasonable terms or we may experience a degradation of, disruption of or
interference with their supply. Any adverse impact to our infrastructure or the right to use or failures of third-party hardware,
software or services could impact our leadership team’s ability to administer and supervise our business and may result in
delays in our ability to provide our solutions, maintain our quality of service or run our business until equivalent supply is
developed by us or, if available, identified, obtained and integrated, which could be costly and time-consuming and may not
result in an equivalent solution. In addition, if we cannot, or do not, meet our contractual obligations with vendors, they may
have the right to terminate their contracts with us, in which case we may not be able to provide clients solutions and services
dependent on the products or services provided to us by such contracts. Any of the foregoing could have an adverse effect on
our business, client relationships, reputation, financial performance, financial condition and cash flows.

Clients could assert claims against us in connection with service disruption and/or cease conducting business with us
altogether as a result of problems with the hardware we use to deliver services. Even if not successful, a claim brought against
us by any of our clients would likely be time-consuming and costly to defend and could seriously damage our reputation and
brand, making it harder for us to sell our solutions, any of which could have an adverse effect on our business, financial
performance, financial condition and cash flows.

Additionally, certain vendors provide services to us pursuant to such vendors’ contracts with TELUS, and as a result,
such services may be subject to interruptions due to factors beyond our control, or may be renegotiated from time to time
without our participation on terms we cannot control. Any disruption of or interference with our use of these vendors or
material changes in the price for such services would adversely impact our operations and our business, financial performance,
financial condition and cash flows may be adversely impacted.

We may be unable to successfully identify, complete, integrate and realize the benefits of acquisitions or manage the
associated risks, all of which could have a material adverse effect on our business, financial performance, financial
condition and cash flows.

A key part of our business strategy is to continue to selectively consider acquisitions or investments, some of which may be
material. Through the acquisitions we pursue, we may seek opportunities to expand the scope of our existing services, add new
clients or enter new geographic markets. There can be no assurance that we will successfully identify suitable candidates in the
future for strategic transactions at acceptable prices or at all, have sufficient capital resources or financing opportunities to
finance potential acquisitions or be able to consummate any desired transactions. Our failure to complete potential acquisitions
in which we have invested or may invest significant time and resources could have a material adverse effect on our business,
financial performance, financial condition and cash flows. Financing of completed acquisitions may result, and in the case of
WillowTree, has resulted, in the incurrence of indebtedness and the issuance of additional equity securities.

Acquisitions, including completed acquisitions, involve complex operational, technological and personnel-related
challenges, which are time-consuming and require significant investment and may disrupt our ongoing business operations.
Furthermore, integration involves a number of risks, including, but not limited to:
• diversion of management’s attention from operating our business;
• retaining and developing our relationships with key clients and seeking new revenue opportunities;
• failing to retain key personnel of acquired companies, particularly to competitors, or facing resultant labor disputes, strikes
or similar disruptions;
• facing legal and other risks and liabilities relating to the acquisition or the acquired entity’s historic operations, which may
be unanticipated or undisclosed and for which we may not be indemnified fully or at all;
• integrations of our operations including, in the case of WillowTree, doing so in compliance with the agreements entered
into with members of WillowTree management;
• completion of post-acquisition activities, such as alignment of employee cultures, corporate and accounting policies,
controls and procedures, employee transfers and moves, information systems integration, optimization of service offerings
and the establishment of control over new operations;

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• information systems and other platform integration, including, where applicable, effective disclosure controls and
procedures and internal control over financial reporting for the combined company, enabling us to continue to comply with
IFRS and applicable U.S. and Canadian securities laws and regulations;
• difficulty comparing and integrating financial reporting due to differing financial and/or internal reporting systems;
• making any necessary modifications to internal controls over financial reporting to comply with applicable rules and
regulations; and
• possible tax costs or inefficiencies associated with integrating the operations of the combined global company.

These factors could cause us to not fully or timely integrate acquired companies into our business, to fail to develop such
companies in the way we expected or to fail to realize the anticipated growth, financial and/or strategic benefits, including but
not limited to anticipated revenues and synergies of the acquisition, or cause the costs of achieving these benefits to be higher
than expected, any of which could have a material adverse effect on our business, financial condition and results of operations.

In addition, following the completion of acquisitions, we may be required to rely on the seller to provide
administrative and other support, including financial reporting and internal controls over financial reporting, and other
transition services to the acquired business for a period of time. We may not have experience in working with the sellers of the
business we have acquired to obtain the necessary support to operate a newly acquired business. There can be no assurance that
the seller will do so in a manner that is acceptable to us or at all.

We are subject to economic, political and other risks of doing business globally and in emerging markets.

We are a global business with a substantial majority of our physical assets and operations located outside Canada and the
United States. In addition, an important component of our growth strategy is our continuing international expansion, including
in Europe and Asia-Pacific. We continuously evaluate additional locations outside of our current operating geographies in
which to invest in delivery locations, in order to maintain an appropriate cost structure for our client programs.

Due to the international nature of our business, we are exposed to various risks of international operations, including:
adverse trade policies or trade barriers; inflation, hyperinflation and adverse economic effects resulting from governmental
attempts to control inflation, such as the imposition of wage and price controls and higher interest rates; difficulties in enforcing
agreements or judgments and collecting receivables in foreign jurisdictions; exchange controls or other currency restrictions and
limitations on the movement of funds, such as on the remittance of dividends by subsidiaries; foreign currency fluctuations;
inadequate infrastructure and logistics challenges; sovereign risk and the risk of government intervention, including through
expropriation, or regulation of the economy; unexpected changes in regulatory regimes; challenges in maintaining an effective
internal control environment with operations in multiple international locations, including language and cultural differences,
expertise in international locations and multiple financial information systems; concerns relating to the protection and security
of our personnel and assets; international trade and political disputes; and labor disruptions, civil unrest, political instability,
wars or other armed conflict. These risks may be especially significant if we expand into less developed countries that have less
political, social or economic stability and more vulnerable infrastructure and legal systems.

These risks may impede our strategy by limiting the countries and regions in which we are able to expand. The impacts
of these risks may also only materialize after we have begun preparations and made investments to provide services in this new
country or region. The exposure to these risks may require us to incur additional costs to mitigate the impact of these risks on
our business or adversely affect our ability to repatriate cash.

Additionally, there continues to be a great deal of uncertainty regarding U.S. and global trade policies for companies
with multinational operations like ours, and trade policies may change in a manner that disrupts our operations or otherwise
negatively affects our business, financial condition and results of operations. As we continue to operate our business globally,
our success will depend, in part, on the nature and extent of any such changes and how well we are able to anticipate, respond
to and effectively manage any such changes.

International trade and political disputes can also adversely affect the operations of multinational corporations like ours
by limiting or disrupting trade and business activity between countries or regions. For example, we may be required to limit or
halt operations, terminate client relationships or forego profitable client opportunities in countries which may, in the future, be
subject to sanctions or other restrictions on business activity by corporations such as ours, by U.S. or Canadian legislation,
executive order or otherwise. Some of our clients have been targeted by and may, in the future, be subject to such sanctions.
Additionally, failure to resolve the trade dispute between the countries may also lead to unexpected operating difficulties in
certain countries, including enhanced regulatory scrutiny, greater difficulty transferring funds or negative currency impacts.

All the foregoing could have a material adverse effect on our business, financial performance, financial condition and
prospects.

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If we are not able to manage our resource utilization levels or price our services appropriately, our business, financial
performance, financial condition and cash flows may be adversely affected.

Our profitability is largely a function of the efficiency with which we use our resources, particularly our team members and our
delivery locations, and the pricing that we are able to obtain for our services. Our resource utilization levels are affected by a
number of factors, including our ability to attract, train, and retain team members, transition team members from completed
projects to new assignments, forecast demand for our services (including potential client reductions in required resources or
terminations) and maintain an appropriate number of team members in each of our delivery locations, as well as our need to
dedicate resources to team member training and development. The prices we are able to charge for our services are affected by
a number of factors, including price competition, our ability to accurately estimate revenues from client engagements, our
ability to estimate resources and other costs for long-term pricing, margins and cash flows for long-term contracts, our clients’
perceptions of our ability to add value through our services, introduction of new services or products by us or our competitors,
and general economic and political conditions. Therefore, if we are unable to appropriately price our services or manage our
resource utilization levels, there could be a material adverse effect on our business, financial performance, financial condition
and cash flows.

TALENT-RELATED RISKS

Our growth prospects are dependent upon attracting and retaining enough qualified team members to support our
operations, as competition for talent is intense, and failure to do so may result in an adverse impact on our business and
financial results.

Our business is highly competitive and success is dependent on our ability to access, attract and retain skilled labour in diverse
markets around the world. Our growth prospects, success and ability to meet our clients’ expectations and our growth objectives
depend on our ability to recruit and retain team members with the right technical skills and/or language capabilities at
competitive cost levels. In many of the geographies we operate there may be a limited pool of potential professionals with the
skills we seek. For example, the success of the TIAI business depends significantly on its ability to attract and retain a large
number of individuals to serve as annotators in various geographic markets. If individuals choose not to offer their services
through the TIAI crowdsourcing solution, or elect to offer them through a competitor’s solution, we may lack a sufficient
supply of qualified individuals to service the entirety of our clients’ demand with sufficient speed, scale and quality or at all.
The increased competition for these professionals increases our costs to recruit and retain team members, in particular, key sales
and account management talent, without which it may reduce our ability to gain new business and maintain existing client
relationships.

Additionally, our failure to provide innovative benefits to our team members could decrease our competitiveness as an
employer and adversely impact our ability to attract and retain a skilled workforce. We have had to offer, and believe we will
need to continue to offer, differentiated compensation packages, specific to the geography and skill sets of the required team
members. We have also had to incur costs to provide specialized services and amenities to our team members that impact the
profitability of our business. We may need to make significant investments to attract and retain team members and we may not
realize sufficient returns on these investments. An increase in the attrition rate among our team members, particularly among
our higher-skilled workforce, would increase our recruiting and training costs and decrease our operating efficiency,
productivity and profit margins. From time to time, and over the course of 2022 in some regions, we have also experienced
higher levels of voluntary attrition, and, in those periods, we have been required to expend time and resources to recruit and
retain talent, restructure parts of our organization, and train and integrate new team members. Without the right support, we
may see a decline in our ability to meet our clients’ demands, which may impact the demand for our services and we may not be
able to innovate or execute quickly on our strategy, and our ability to achieve our strategic objectives will be adversely
impacted and our business will be harmed. In addition, if TIAI’s top clients reduce the volume of services they receive from the
TIAI business or otherwise limit, modify or terminate their relationships with us, including as a result of the change of control
in TIAI in connection with the acquisition, we may lack sufficient opportunities for our independent contractors to provide
annotation services, which may reduce the perceived utility of our solution.

Evolving technologies, competition and/or client demands may entail high costs associated with hiring or retaining
team members, with the necessary backgrounds and skills to meet our customers’ expectations and to develop new business.
Changing team member demographics, organizational changes, inadequate organizational structure and staffing, inadequate
team member communication, changes in the effectiveness of our leadership, a lack of available career and development
opportunities, changes in compensation and benefits, the unavailability of appropriate work processes and tools, client
reductions and operational efficiency initiatives may also negatively affect team member morale and engagement, harm our
ability to retain acquired talent from our acquisitions, increase team member turnover, increase the cost of talent acquisition and
negatively impact service delivery and the customer experience. If we are unable to attract and retain sufficient numbers of
highly skilled professionals, our ability to effectively lead our current projects and develop new business could be jeopardized,
and our business, financial performance, financial condition and cash flows could be materially adversely affected.

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If we cannot maintain our culture as we grow, our services, financial performance and business may be harmed.

We believe that our unique customer-first and caring culture has led to our ability to attract and retain a highly skilled, diverse,
engaged and motivated workforce. This has driven our strong client retention and the higher satisfaction scores we receive from
our clients’ customers, which has, in part, been responsible for our growth and differentiation in the marketplace. It may
become more difficult to maintain this culture if we continue to evolve our products and services, grow into new geographies,
open new delivery locations, increase the number of team members and acquire new companies. If our unique culture is not
maintained, our ability to attract and retain highly skilled team members and clients may be adversely impacted, and our
operational and financial results may be negatively affected.

The inelasticity of our labor costs relative to short-term movements in client demand could adversely affect our business,
financial condition and financial performance.

Our business depends on maintaining large numbers of team members to service our clients’ business needs and on being able
to quickly respond to new client programs or new programs for existing clients. We try, where possible, to not terminate team
members in response to temporary declines in demand. Rehiring and retraining team members at a later date could force us to
incur additional expenses and we may not be able to do so in a timely manner or even find the required skill set. Termination of
our team members could have a negative impact on our hiring and recruitment efforts and the morale of the remaining team
members and could involve the incurrence of significant additional costs in the form of severance payments, all of which would
have an adverse impact on our operating profit margins. Legal requirements related to the termination of team members in the
countries and cities where we operate limit our ability to adjust our labor costs for unexpected changes in client demand, which
could have a material adverse effect on our business, financial condition and financial performance. See also “—Our growth
prospects are dependent upon attracting and retaining enough qualified team members to support our operations, as competition
for highly skilled personnel is intense, and failure to do so may result in an adverse impact on our business and financial
results”.

Team member wage increases in certain geographies may prevent us from sustaining our competitive advantage and may
reduce our profit margin.

Our most significant costs are the salaries and related benefits of our team members. Our wage costs in certain countries where
we operate have historically been significantly lower than wage costs elsewhere, including in particular in North America,
which has been one of our competitive advantages. As economic growth increases in the countries where we benefit from lower
wage costs, concurrent with increased demand by us and our competitors for skilled employees, wages for comparably skilled
employees are increasing at a faster rate than elsewhere, which may, over time, reduce this competitive advantage. Similarly,
inflationary pressures could drive up wage costs in those areas where we have historically enjoyed a competitive advantage. In
connection with potential future growth and inflation, we may need to increase our team member compensation more rapidly
than in the past to remain competitive in attracting and retaining the quality and number of team members that our business
requires. To the extent that we are not able to control or share wage increases with our clients, wage increases may reduce our
margins and cash flows. We may not be successful in our attempts to control such costs.

Our policies, procedures and programs to safeguard the health, safety and security of our team members, particular our
content moderation team members, may not be adequate.

Despite our best efforts, we may not be able to implement best practices to safeguard our team members, independent
contractors, clients and others at our worksites. As a result, we may experience negative impacts to our reputation, team
engagement and operations and, where applicable, we may not have any or sufficient insurance coverage for any resultant legal
liability or fines arising from health, safety or security incidents.

Of particular consideration are our content moderation team members given the challenging nature of their work,
which may result in adverse psychological or emotional consequences. The wellness and resiliency programs that we provide to
support our content moderators may be ineffective in mitigating the effects on them of the content to which they are exposed,
which could lead to higher expenses to support our team members, higher levels of voluntary attrition and increased difficulty
retaining and attracting team members. If we are not able to effectively attract and retain content moderation team members, we
may experience a decline in our ability to meet our clients’ expectations, which may adversely impact our reputation, our
revenue and the demand for our services

We may be required under applicable law to provide accommodations for team members who experience or who assert
they are experiencing mental health consequences as a result of performing content moderation. These accommodations could
result in increased costs and reductions in the availability of team members who can perform these tasks, which could have a
material adverse effect on our financial results. Our content moderation team members may also make claims under workers’
compensation programs or other public or private insurance programs in connection with negative mental health consequences
experienced in connection with their employment, which could result in increased costs. We may also be exposed to claims by

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team members under applicable labor and other laws. Such litigation, whether or not ultimately successful, could involve
significant legal fees and result in costly remediation, including payments for psychological treatment and ongoing monitoring,
preventative intervention and treatment costs, which could have a material adverse effect on our financial results. The measures
we have implemented to ensure the well-being of our team members may not be sufficient to mitigate the effects on team
members or our potential liability under applicable law.

Our senior management team is critical to our continued success and the loss of one or more members of that team could
have a material adverse effect on our business, financial performance, financial condition and cash flows.

Our future success substantially depends on the continued services and performance of the members of our senior management
team, and other key team members possessing technical and business capabilities, including industry expertise, that are difficult
to replace. Specifically, the loss of the services of one or more members of our senior management team, without immediate
and suitable successors, could seriously impair our ability to continue to manage and expand our business. There is intense
competition for experienced senior management and personnel with technical and industry expertise in our industry. Although
we have entered into employment and non-competition agreements with all of our executive officers, certain terms of those
agreements may not be enforceable and, in any event, these agreements do not ensure the continued service of these executive
officers. Further, although we have engaged in succession planning for our senior management team, we may not successfully
implement those plans. In addition, we currently do not maintain “key person” insurance covering any member of our
management team. The loss of any of our key team members, particularly to competitors, could have a material adverse effect
on our business, financial performance, financial condition and cash flows.

In addition, the senior management of WillowTree is critical to its continued success as part of the Company. The
founder and chief executive of WillowTree, who is expected to continue to lead WillowTree’s business following the
acquisition, and other key team members possessing technical and business capabilities, including industry expertise, would be
difficult to replace and the loss of one or more of these members of WillowTree’s senior management team could have a
material adverse effect on our business, financial performance, financial condition and cash flows. Specifically, the loss of the
services of WillowTree’s founder and chief executive officer and chief commercial officer, without immediate and suitable
successors, could seriously impair our ability to integrate, manage and expand WillowTree’s business as part of the combined
entity. Although certain of WillowTree’s management hold securities that are convertible into cash or a combination of cash
and subordinated voting shares of the Company, which will be settled over three years, beginning in 2026, subject to
achievement of certain performance-based criteria, and although certain of WillowTree’s key team members (other than
WillowTree’s founder and chief executive officer and chief commercial officer) are eligible to receive certain compensatory
equity securities, settling on the same schedule as securities of management, such incentives may not be sufficient to retain such
individuals, especially if the performance-based criteria are not met or there are disputes with respect to the performance-based
criteria.

If more stringent labor laws become applicable to us, if we are subject to more employment-related litigation, if our team
members unionize, strike or cause other labor-related disruptions, or become part of workers’ councils, our business and
financial results may be adversely affected.

Some of the geographies where we operate have stringent employee-friendly labor legislation, including legislation that results
in or imposes financial obligations on employers. Therefore, in some countries, it may be difficult for us to maintain flexible
human resource policies to dismiss team members when there is a business need, and our compensation and/or legal expenses
may increase significantly. Additionally, in certain of the states and regions in which we operate, we are subject to stringent
wage and hour requirements, which has exposed us, and we expect will continue to expose us, to claims brought by individual
team members and team member groups. Although these claims are not individually or in the aggregate material, we may be
subject to more such claims in the future.

In addition, some of our team members may form unions, become part of workers’ councils or may become subject to
collective bargaining agreements. In certain countries, we are subject to laws that could require us to establish a co-determined
supervisory board, which could subject us to significant additional administrative requirements. As a result, we may be required
to raise wage levels or grant other benefits that could result in an increase in our compensation expenses or lack of flexibility, or
take on increased costs to address administrative requirements, in which case our financial performance and cash flows may be
materially and adversely affected.

Furthermore, strikes by, or labor disputes with, our team members at our delivery locations and independent
contractors that we retain may adversely affect our ability to conduct business. Work interruptions or stoppages could have a
material adverse effect on our business, financial performance, financial condition and cash flows.

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Our business would be adversely affected if the individuals providing data annotation services through TIAI’s
crowdsourcing solutions were classified as employees and not as independent contractors.

We generally believe that most of the individuals who provide their data annotation services through TIAI’s crowdsourcing
solution are independent contractors. However, the classification of certain individuals who provide their services through
third-party platforms as independent contractors, like TIAI’s independent contractors, is currently being challenged in courts,
by legislators and by government agencies in the United States and other countries. TIAI has been involved in, and we may
continue to be involved in, litigation related to this classification. We may not be successful in defending the independent
contractor classification in the jurisdictions where we operate or where such classification is challenged. The costs associated
with defending, settling, or resolving any future lawsuits (including demands for arbitration) relating to the independent
contractor classification could be material to our business.

Changes to foreign, state, and local laws governing the definition or classification of independent contractors, or
judicial decisions regarding independent contractor classification, could require classification of our independent contractors as
employees (or workers, quasi-employees or other statuses in jurisdictions where those statuses exist) and/or representation of
our crowd members by labor unions. If this were to occur, we could incur significant additional expenses for compensating
independent contractors, potentially including expenses associated with the application of wage and hour laws (including
minimum wage, overtime, and meal and rest period requirements), employee benefits, social security contributions, taxes
(direct and indirect), and penalties. Further, any such reclassification could require us to change our business model for these
services, which could consequently have an adverse effect on our business and financial condition.

FINANCIAL RISKS

If we are unable to accurately forecast our pricing models or optimize the mix of products and services we provide to meet
changing client demands, or if we are unable to adapt to changing pricing and procurement demands of our clients, our
business, financial performance, financial condition and cash flows may be adversely affected.

Our contracts generally use a pricing model that provides for per-productive-hour or per-transaction billing models and
compensation for materials and licensing costs. In some of our customer experience management contracts, we commit to long-
term pricing structures under which we bear the risk of cost overruns, completion delays, resource requirements, wage inflation
and adverse movements in exchange rates in connection with these contracts. Industry pricing models are evolving, and
companies are increasingly requesting transaction- or outcome-based pricing or other alternative pricing models, which require
us to accurately forecast the cost of performance of the contract against the compensation we expect to receive. These forecasts
are based on a number of assumptions relating to existing and potential contracts with existing and potential clients, including
assumptions related to the team members, other resources and time required to perform the services and our clients’ ultimate
use of the contracted service. If we make inaccurate assumptions in pricing our contracts, our profitability may be negatively
affected. In addition, if the number of our clients that request alternative pricing models continues to increase in line with
industry trends, we may be unable to maintain our historical levels of profitability under these evolving alternative pricing
models and our financial performance may be adversely affected, or we may not be able to offer pricing that is attractive
relative to our competitors. Some of our clients’ may continue to evolve their procurement methodology by increasing the use
of alternative methods, such as reverse auctions. These methods may impact our ability to gain new business and maintain
profit margins, and may require us to adapt our sales techniques, which we may be unsuccessful in doing in a timely manner or
at all.

In addition, the revenue and income generated from the services we provide to our clients may decline or vary as the
type and volume of services we provide under our contracts change over time, including as a result of a shift in the mix of
products and services provided. For example, our lower-complexity interactions generate services with lower margins
compared to our more complex, sensitive and localized content moderation and digital services, and a shift in the mix of these
two types of services by a client could cause a meaningful change in our revenue from that client and the profitability of the
services we provide. Furthermore, our clients, some of which have experienced significant and adverse changes in their
business, substantial price competition and pressures on their profitability, have in the past and may in the future demand price
reductions, decrease the volume of work or complexity of the services we are providing to them, automate some or all of their
processes or change their customer experience strategy by moving more work in-house or to other providers, any of which
could reduce our profitability. Any inability to accurately forecast the pricing that we use for our contracts, or any significant
reduction in or the elimination of the use of the services we provide to any of our clients or any requirement to lower our prices
that, in each case, we fail to anticipate, would harm our business, financial performance, financial condition and cash flows.

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Three clients account for a significant portion of our revenue and loss of or reduction in business from, or consolidation of,
these or any other major clients could have a material adverse effect on our business, financial condition, financial
performance and prospects.

We have derived and believe that, in the near term, we will continue to derive, a significant portion of our revenue from a
limited number of large clients. For the years ended December 31, 2022 and 2021, three clients each accounted for more than
10% of our revenues, and for the year ended December 31, 2020, two clients each accounted for more than 10% of our
revenues. TELUS Corporation, our controlling shareholder and largest client for the year ended December 31, 2022, accounted
for approximately 17.3%, 16.1% and 19.6% of our revenue for the years ended December 31, 2022, 2021 and 2020,
respectively. Our second largest client for the year ended December 31, 2022, a leading social media company, accounted for
15.0%, 17.7% and 15.6% of our revenue for the years ended December 31, 2022, 2021 and 2020, respectively. Our third largest
client, Google, accounted for approximately 11.9%, 11.0% and 7.5% of our revenue for the years ended December 31, 2022,
2021 and 2020, respectively.

Our largest client, based on our revenue earned from them, is TELUS, our controlling shareholder. We provide
services to TELUS under the master services agreement (TELUS MSA), which expires in January 2031. The TELUS MSA
provides for a minimum annual spend of $200 million, subject to adjustment in accordance with its terms, although TELUS has
the ability to delay or terminate specific services for certain specified reasons with limited notice. See “Item 7B—Related Party
Transactions—Our Relationship with TELUS—Master Services Agreement”. In addition, the master services agreements
(MSAs) with all other clients do not have minimum annual spend and the terms of these master service agreements permit our
clients to delay, postpone or even terminate contracted services at their discretion and with limited notice to us.

The volume of work performed for specific clients or the revenue we generate can vary from year to year. For
example, a client may demand price reductions, change its customer engagement strategy or move work in-house. Also, in
many of the verticals in which we offer services, the continued consolidation activity could result in the loss of a client if, as a
result of a merger or acquisition involving one or more of our clients, the surviving entity chooses to use one of our competitors
for the services we currently provide or to provide the services we offer in-house. Our clients may also choose to consolidate
their providers as they grow, as their business needs change, or as their leadership changes, and we could be removed from a
client’s vendor network. As a result of the foregoing, a major client in one year may not provide the same level of revenue in
any subsequent year. Any significant reduction in or elimination of the use of the services we provide as a result of
consolidation or our removal from a key client’s vendor network would result in reduced revenue to us and could harm our
business. In addition, such consolidation may encourage clients to apply increasing pressure on us to lower the prices we charge
for our solutions. All the foregoing could have a material adverse effect on our business, financial condition, financial
performance and prospects.

Our operating results may experience significant variability and, as a result, it may be difficult for us to make accurate
financial forecasts and our actual operating results may experience variability, including falling short of our forecasts.

Our growth has not been, and in the future is not expected to be, linear as our period-to-period results fluctuate due to certain
factors, including client demand, a long selling cycle, delays or failures by our clients to provide anticipated business, losses or
wins of key clients, variations in team member utilization rates resulting from changes in our clients’ operations, delays or
difficulties in expanding our delivery locations and infrastructure (including hiring new team members or constructing new
delivery locations), capital investment amounts that may be inappropriate if our financial forecasts are inaccurate, changes to
our pricing structure or that of our competitors, currency fluctuations, seasonal changes in the operations of our clients, our
ability to recruit team members with the right skill set, failure to meet service delivery requirements as a result of technological
disruptions, the timing of acquisitions and other events identified in this Annual Report, all of which may significantly impact
our results and the accuracy of our forecasts from period to period. For example, the volume of business with some of our
clients in our Travel and Hospitality vertical is significantly affected by seasonality, with our revenue typically higher in the
third and fourth quarters due to spending patterns of our clients with calendar fiscal years. As a result, it may be difficult for us
to accurately make financial forecasts and our actual operating results may experience variability, including falling short of our
forecasts.

We may need to raise additional funds to pursue our growth strategy or continue our operations, and we may be unable to
raise capital when needed or on acceptable terms, which could lead us to be unable to expand our business.

From time to time, we may seek additional financing to fund our growth, enhance our technology, respond to competitive
pressures or make acquisitions or other investments. We cannot predict the timing or amount of any such capital requirements
at this time. General economic, financial or political conditions in our markets may deteriorate or other circumstances may
arise, which, in each case, may have a material adverse effect on our cash flows and our business, leading us to seek additional
capital. We may be unable to obtain financing on satisfactory terms, or at all. In this case, we may be unable to expand our
business at the rate desired, or at all, and our financial performance may suffer. Financing through issuances of equity securities
would be dilutive to holders of our shares.

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If we are unable to collect our receivables from, or bill our unbilled services to, our clients, our financial performance,
financial condition and cash flows could be adversely affected.

Our business depends on our ability to successfully obtain payment from our clients for work performed and to bill and collect
on what are usually relatively short cycles. We evaluate the financial condition of our clients and maintain allowances against
receivables, which we might not accurately assess. Actual losses on client balances could differ from what we anticipate and,
as a result, we might need to adjust our allowances. Macroeconomic conditions could result, and have resulted, in financial
difficulties for our clients which could cause clients to delay payments to us, request modifications to their payment
arrangements or default on their payment obligations to us, including, in some cases, as a result of insolvency or bankruptcy.
Timely collection of client balances also depends on our ability to complete our contractual commitments, including delivering
on the service level our clients expect, and bill and collect our contracted revenues. If our client is not satisfied with our services
or we are otherwise unable to meet our contractual requirements, we might experience delays in the collection of and/or be
unable to collect our client balances and, if this occurs, our financial performance, financial condition and cash flows could be
adversely affected. In addition, if we experience an increase in the time to bill and collect for our services, our cash flows could
be adversely affected.

We are subject to additional regulatory compliance requirements, including Section 404 of the Sarbanes-Oxley Act. We had
identified material weaknesses in our internal control over financial reporting.

Effective internal control over financial reporting is necessary for us to provide reliable financial reports. Effective internal
controls, together with adequate disclosure controls and procedures, are designed to prevent or detect material misstatement due
to fraud or error and to provide reasonable assurance as to the reliability of financial reporting. Deficiencies in our internal
controls may adversely affect our management’s ability to record, process, summarize, and report financial data on a timely
basis. As a public company, we are required by Section 404 of the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley Act) and
applicable Canadian securities laws, including National Instrument 52-109—Certification of Disclosure in Issuers’ Annual and
Interim Filings, to include a report of management’s assessment on our internal control over financial reporting and an
independent auditor’s attestation report on our internal control over financial reporting in our annual reports on Form 20-F or
Form 40-F, subject to certain exceptions. If we fail to comply with the applicable requirements of the Sarbanes-Oxley Act, we
may be subject to sanctions, investigations or other enforcement actions by regulatory authorities, including the U.S. Securities
and Exchange Commission (SEC) and the New York Stock Exchange (NYSE).

As of December 31, 2021, we had identified material weaknesses in our internal control over financial reporting.
Specifically, the Company did not fully design and implement effective controls in response to the risks of material
misstatement related to the ongoing integration into our internal control framework of entities acquired by the Company during
fiscal year 2020, in particular Lionbridge AI, which was acquired on December 31, 2020, resulting in ineffective control in the
financial reporting processes of these recent acquisitions. In response, we have implemented measures during fiscal year 2022
designed to ensure that the control deficiencies in the acquired entities were remediated, such that these controls are designed,
implemented, and operating effectively over a sustained period. Based on management assessment as of December 31, 2022,
we concluded that these material weaknesses have been remediated. We cannot provide assurance that we will not identify new
material weaknesses or that our internal control over financial reporting will be effective in accomplishing all control objectives
all of the time. If we fail to maintain an effective system of internal control over financial reporting in the future, we may not be
able to accurately and timely report on our operating results or financial condition, which could adversely affect investor
confidence in our company and the market price of our subordinate voting shares.

In preparing our financial statements, we make certain assumptions, judgments and estimates, including in particular with
respect to the book value of our goodwill, that affect amounts reported in our consolidated financial statements, which, if not
accurate, may significantly impact our financial results.

In preparing our financial statements, we make certain assumptions, judgments and estimates that affect amounts reported in
our consolidated financial statements, which, if not accurate, may significantly impact our financial results. We make
assumptions, judgments and estimates for a number of items, including those listed in “Item 11—Quantitative and Qualitative
Disclosures about Market Risk”. Actual results could differ materially from our estimates, and such differences could
significantly impact our financial results.

In connection with the acquisition of WillowTree and other acquisitions, we have recorded, and in connection with our
acquisition strategy, we anticipate continuing to record a significant amount of goodwill. Our carrying value of goodwill is
periodically tested for impairment on an annual basis. We assess our goodwill by comparing the recoverable amounts of our
cash generating unit to its carrying value. To the extent that the carrying value exceeds its recoverable amount, the excess
amount would be recorded as a reduction in the carrying value of goodwill and any remainder would be recorded as a reduction
in the carrying value of other assets on a prorated basis. In the event that the carrying amount of goodwill is impaired, any such
impairment would be charged to earnings in the period of impairment. Since this involves the use of estimates and our

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judgment, we cannot assure that any future impairment of goodwill will not have a material adverse effect on our financial
performance.

We may incur liabilities for which we are not insured, and may suffer reputational damage in connection with certain
claims against us.

We could be sued directly for claims that could be significant, such as claims related to breaches of privacy or network security,
infringement of intellectual property rights, violation of wage and hour laws, or systemic discrimination, and our contracts may
not fully limit or insulate us from those liabilities. Additionally, in our contracts with our clients, we indemnify our clients for
losses they may incur for our failure to deliver services pursuant to the terms of service set forth in such service contracts, and a
limited number of our service contracts provide for high or unlimited liability for the benefit of our clients related to damages
resulting from breaches of privacy or data security in connection with the provision of our services. Although we have various
insurance coverage plans in place, that coverage may not continue to be available on reasonable terms or in sufficient amounts
to cover one or more claims. The policies may also have exclusions which would limit our ability to recover under them, the
limits under the policy may be insufficient, or our insurers may deny coverage following their investigation of a claim.
Currently we do not have insurance in place for certain types of claims, such as patent infringement, violation of wage and hour
laws, failure to provide equal pay in the United States and our indemnification obligations to our clients based on employment
law, because it is either not available or is not economically feasible. The successful assertion of one or more large claims
against us that are excluded from our insurance coverage or exceed available insurance coverage, or changes in our insurance
policies could have a material adverse effect on our business, financial performance, financial condition and cash flows.
Furthermore, the assertion of such claims, whether or not successful, could cause us to incur reputational damage, which could
have a material adverse effect on our business, financial performance, financial condition and cash flows.

We may not be able to comply with the covenants in our credit agreement, service our debt or obtain additional financing on
competitive terms, which could result in a default of our credit agreement.

Our credit agreement contains various restrictive covenants. Our ability to comply with the restrictive covenants in our credit
agreement, including the Net Debt to EBITDA ratio covenant, will depend upon our future performance and various other
factors, including but not limited to our financial performance, macroeconomic conditions and competitive factors, many of
which are beyond our control. The credit agreement also contains covenants related to our relationship with TELUS, which are
not in our control. We may not be able to maintain compliance with all of these covenants. In that event, we may not be able to
access the borrowing availability under our credit agreement and we may need to seek an amendment to our credit agreement or
may need to refinance our indebtedness. There can be no assurance that we can obtain future amendments of or waivers under
our existing and any future credit agreements and instruments, or refinance borrowings under our credit agreement, and, even if
we were able to obtain an amendment or waiver in the future, such relief may only last for a limited period. Any noncompliance
by us with the covenants under our credit agreement could result in an event of default thereunder, which may allow the lenders
to accelerate payment of the related debt and may result in the acceleration of any other debt to which a cross-acceleration or
cross-default provision applies. In the event our creditors accelerate the repayment of our indebtedness, we cannot assure you
that we would have sufficient assets to make such repayment.

Our cash flow from operating activities will provide the primary source of funds for our debt service payments. If our
cash flow from operating activities declines, we may not be able to service or refinance our current debt, which could adversely
affect our business and financial condition. Our credit facility exposes us to changes in interest rates. We currently use a cross-
currency interest rate swap to effect a net investment hedge, which also converts an amortizing portion of our credit facility to a
fixed interest rate, thus reducing a portion of our variable rate interest exposure; however, such hedging activities may not be
successful in mitigating the risk of increasing interest rates, which may increase our debt service payments.

Fluctuations in foreign currency exchange rates could harm our financial performance.

Our primary operating currency is the U.S. dollar, but we also generate revenue and incur expenses in other currencies,
including the European euro, the Philippine peso and the Canadian dollar. As we expand our operations to new countries, our
exposure to currency fluctuations will increase. Fluctuations in currency exchange rates between the U.S. dollar and other
currencies we transact in may adversely impact our financial results.

Our financial performance could be adversely affected over time by certain movements in exchange rates, particularly
if currencies in which we incur expenses appreciate against the U.S. dollar or if the currencies in which we receive revenues
depreciate against the U.S. dollar. Although we take steps to hedge a portion of our foreign currency exposures, a portion
remains unhedged and there is no assurance that our hedging strategy will be successful or that the hedging markets will have
sufficient liquidity or depth for us to implement our strategy in a cost-effective manner. In addition, in some countries such as
China, we are subject to legal restrictions on hedging activities, as well as convertibility of currencies, which could limit our
ability to use cash generated in one country to invest in another and could limit our ability to hedge our exposures. Finally, our
hedging policies only provide near term protection from exchange rate fluctuations. If currencies in which we incur expenses

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appreciate against the U.S. dollar, we may have to consider additional means of maintaining profitability, including by
increasing pricing or reducing costs, which may or may not be achievable.

Our financial condition could be negatively affected if countries reduce or withdraw tax benefits and other incentives
currently provided to companies within our industry or if we are no longer eligible for these benefits.

TELUS International operates in multiple jurisdictions with different tax policies and tax rates, which increases our exposures
to multiple forms of taxation. Our tax expense and cash tax liability in the future could be adversely affected by various factors,
including, but not limited to, changes in tax laws (including tax rates and the potential introduction of global minimum taxes),
regulations, accounting principles or interpretations, the potential adverse outcome of tax examinations, our assessment of the
availability of certain tax incentives and exemptions and international tax complexity and compliance. Changes in the valuation
of deferred tax assets and liabilities, which may result from a decline in our profitability or changes in tax rates or legislation,
could have a material adverse effect on our tax expense.

Our subsidiaries file tax returns and pay taxes in the various jurisdictions in which they are resident and carry on their
business activities. Our tax expense and cash tax liability (including interest and penalties) could be adversely affected if a
country were to successfully argue that any of our subsidiaries is resident in, or carries on business in, a country that is different
from any jurisdiction in which it files its tax returns and pays taxes.

Certain cross-border payments may be subject to withholding taxes in the jurisdiction of the payer. Our tax expense
and cash tax liability (including interest and penalties) could be adversely affected if a country were to successfully argue that
any cross-border payments by our subsidiaries are subject to withholding tax in a manner or at a rate that differs from any
amounts actually withheld in respect of any applicable withholding taxes. In addition, our tax expense and cash tax liability
(including interest and penalties) could be adversely affected if a country were to successfully dispute the quantum and timing
of any deduction related to any cross-border payment.

Additionally, certain of our delivery locations, such as those in India, Philippines, El Salvador and Turkey, benefit
from certain corporate tax incentives, benefits and exemptions. To the extent such favorable tax treatments are disputed,
discontinued or phased out (like tax exemptions applicable to our Indian delivery locations), or we lose eligibility for them, our
effective tax rate may increase and our financial condition and results of operations could be adversely affected.

Furthermore, our US subsidiaries are subject to the base erosion and anti-abuse tax (BEAT), which was enacted in
2017 as a part of the Tax Cuts and Jobs Act. The BEAT is a minimum tax that applies to the extent that a taxpayer’s BEAT
liability exceeds the regular tax liability. The United States Internal Revenue Service (IRS) could disagree with our calculation
of the BEAT liability or the interpretations on which those calculations are based and assess additional taxes, interest and
penalties, adversely affecting our financial condition and results of operations.

If tax authorities were to successfully challenge the transfer pricing of our cross-border intercompany transactions, our tax
liability may be different.

We have cross-border transactions among our subsidiaries in relation to various aspects of our business, including operations,
financing, marketing, sales and delivery functions. Canadian transfer pricing regulations, as well as regulations applicable in
other countries in which we operate, require that any cross-border transaction involving associated enterprises be on arm’s-
length terms and conditions. We view the cross-border transactions entered into by our subsidiaries to be in accordance with the
relevant transfer pricing laws and regulations. If, however, a tax authority in any jurisdiction successfully challenges our
position and asserts that the terms and conditions of such cross-border transactions are not on arm’s-length terms and
conditions, or that other income of our affiliates should be taxed in that jurisdiction, our tax liability, including accrued interest
and penalties, may be different, which could cause our tax expense to be different, possibly materially, thereby changing our
profitability and cash flows, which in turn could have a material adverse effect on our financial performance, effective tax rate
and financial condition.

Tax legislation and the results of actions by taxing authorities may have an adverse effect on our operations and our overall
tax rate.

The Government of Canada or governing bodies in other jurisdictions where we have a presence could enact new tax legislation
which could have a material adverse effect on our business, financial performance, financial condition and cash flows. In
addition, our ability to repatriate surplus earnings from our delivery locations in a tax-efficient manner is dependent upon
interpretations of local laws, possible changes in such laws and the renegotiation of existing bilateral tax treaties. Changes to
any of these may adversely affect our overall tax rate, or the cost of our services to our clients, which could have a material
adverse effect on our business, financial performance, financial condition and cash flows.

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Certain income of our non-Canadian subsidiaries may be taxable in Canada, and if the Canadian tax authorities were to
successfully dispute the quantum of such income, our tax expense and tax liability may increase.

Certain income of our non-Canadian subsidiaries that is passive in nature or that has a particular connection to Canada may be
taxable in Canada under the “foreign affiliate property income” (FAPI) regime in the Income Tax Act (Canada). Our tax
expense and cash tax liability (including interest and penalties) could be adversely affected if the Canadian tax authorities were
to successfully dispute the quantum of any FAPI earned by our non-Canadian subsidiaries, thereby adversely affecting our
business, financial performance, financial condition and cash flows.

LEGAL & REGULATORY RISKS

We and our clients are subject to laws and regulations globally, which increases the difficulty of compliance and may
involve significant costs and risks. Any failure to comply with applicable legal and regulatory requirements could have a
material adverse effect on our business, financial performance, financial condition and cash flows.

The jurisdictions where we operate, as well as our contracts, require us to comply with or facilitate our clients’ compliance with
numerous, complex, often evolving and sometimes conflicting legal regimes, both domestically and internationally. These laws
and regulations relate to a number of aspects of our business, including anti-corruption, internal and disclosure control
obligations, data privacy and protection, wage-and-hour standards, employment and labor relations, trade protections and
restrictions, import and export control, tariffs, taxation, sanctions, data and transaction processing security, payment card
industry data security standards, records management, user-generated content hosted on websites we operate, privacy practices,
data residency, sustainability including climate-related activities, corporate governance, anti-trust and competition, team
member and third-party complaints, telemarketing regulations, telephone consumer regulations, government affairs and other
regulatory requirements affecting trade and investment. Failure to perform our services in a manner that complies with any such
requirements could result in breaches of contracts with our clients. The application of these laws and regulations to our clients is
often unclear, evolving and may at times conflict. The global nature of our operations increases the difficulty of compliance.
For example, in many foreign countries, particularly in those with developing economies, it is common to engage in business
practices that are prohibited by regulations applicable to us or our clients, including Canada’s Corruption of Foreign Public
Officials Act and the United States Foreign Corrupt Practices Act. We cannot provide assurance that our clients will not take
actions in violation of our internal policies or Canadian or United States laws. Further, new regulations for climate-change
disclosure and other sustainability efforts are being considered in many jurisdictions around the world and may be applied
differently in different regions. Compliance with these laws and regulations may involve significant costs, consume significant
time and resources or require changes in our business practices that result in reduced revenue and profitability. We may also
face burdensome and expensive governmental investigations or enforcement actions regarding our compliance, including being
subject to significant fines. Non-compliance could also result in fines, damages, criminal sanctions against us, our officers or
our team members, prohibitions on the conduct of our business, and damage to our reputation, restrictions on our ability to
process information, allegations by our clients that we have not performed our contractual obligations or other unintended
consequences. In addition, we are required under various laws to obtain and maintain accreditations, permits and/or licenses for
the conduct of our business in all jurisdictions in which we have operations and, in some cases, where our clients receive our
services, including the United States, Canada and Europe. If we do not maintain our accreditations, licenses or other
qualifications to provide our services or if we do not adapt to changes in legislation or regulation, we may have to cease
operations in the relevant jurisdictions and may not be able to provide services to existing clients or be able to attract new
clients. Our failure to comply with applicable legal and regulatory requirements could have a material adverse effect on our
business, financial performance, financial condition and cash flows.

The unauthorized disclosure of sensitive or confidential data (including customer, client, and/or employee data), through
cyberattacks or otherwise, could expose us to potential harms including fines, fees, or penalties, protracted and costly
litigation, reputational damage, and loss of business relationships.

We process, and sometimes collect and/or store sensitive data, including, but not limited to, personal data regulated by the
General Data Protection Regulation (GDPR), The Personal Information Protection and Electronic Documents Act, California
Consumer Privacy Act (CCPA), the California Invasion of Privacy Act, Personal Data Protection Bill of 2018, and the Data
Privacy Act of 2012, of our clients’ end customers in connection with our services, including names, addresses, social security
numbers, personal health information, credit card account numbers, checking and savings account numbers and payment history
records, such as account closures and returned checks. In addition, we collect and store data regarding our team members. As a
result, we are or may be subject to various data protection laws and regulations (as described above), and other industry-specific
regulations and privacy laws and standards in the countries in which we operate, including the GDPR, the CCPA, HIPAA, the
Health Information Technology for Economic and Clinical Health Act and the Payment Card Industry Data Security Standard.
Failure to comply with applicable laws, regulations and standards could result in significant fines and penalties. The legislative
and regulatory frameworks for privacy issues are rapidly evolving in many jurisdictions where we operate and are likely to
remain uncertain and dynamic for the foreseeable future. The interpretation and application of such legal and regulatory
regimes is often unclear or unsettled, and they may be interpreted and applied in a manner inconsistent with our current policies

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and practices, which may require changes to the features of our company’s platform or prohibit certain of our operations in
certain jurisdictions. In addition, certain jurisdictions have adopted laws and regulations that restrict the transfer of data
belonging to residents outside of their country. These laws and regulations could limit our ability to transfer such data to the
locations in which we conduct operations, which would place limitations on our ability to operate our business.

Many jurisdictions, including all U.S. states, have enacted laws requiring companies to notify individuals and, in some
instances, regulatory or other authorities of security breaches involving certain types of personal information. In addition, our
agreements with our clients may obligate us to investigate and notify our clients of, and provide cooperation to our clients with
respect to, such breaches. Many of our agreements with our clients do not include any limitation on our liability to them with
respect to breaches of our obligation to keep the information we receive from them confidential. A failure to timely comply
with these notification requirements could expose us to liability, including through statutory fines, fees, and penalties, as well as
litigation on behalf of impacted clients or individuals.

Companies in the European Union have faced fines for violations of certain provisions under the GDPR and foreign
governments outside of the European Union are taking steps to fortify their data privacy laws and regulations. For example,
Brazil, India, the Philippines as well as some countries in Central America and Asia-Pacific and some U.S. states, have
implemented or are considering GDPR-like data protection laws which could impact our engagements with clients (existing and
potential), vendors and team members in those countries. The GDPR and the introduction of similar legislation in other
jurisdictions increases the cost of regulatory compliance and increases the risk of non-compliance therewith, which could have
an adverse effect on our business, financial performance, financial condition and cash flows.

Although our network security and the authentication of our customer credentials are designed to protect against
unauthorized disclosure, alteration and destruction of, and access to, data on our networks, it is impossible for such security
measures to be perfectly effective. There can be no assurance that such measures function as expected or are sufficient to
protect our network infrastructure against attacks or other failures that could lead to data compromise, and there can be no
assurance that such measures successfully prevent or mitigate service interruptions or further security incidents. All network
infrastructure is vulnerable to rapidly evolving cyber-attacks, and our user data and corporate systems and security measures
may be breached due to the actions of outside parties (including malicious cyberattacks), team member or vendor error,
malfeasance, internal bad actors, a combination of these, or otherwise. A breach may allow an unauthorized party to obtain
access to or exfiltrate our data or our users’ or clients’ data. Additionally, outside parties may attempt to fraudulently induce
team members, users or clients to install malicious software, disclose sensitive information or access credentials, or take other
actions that may provide access to our data or our users’ or clients’ data. Because modern networking and computing
environments are increasing in complexity and techniques used to obtain unauthorized access, disable or degrade service or
sabotage systems change frequently, increase in sophistication over time or may be designed to remain dormant until a
predetermined event and often are not recognized until launched against a target, we may be unable to anticipate these
techniques, implement adequate preventative measures, or timely detect a compromise. If an actual or perceived breach of our
security occurs (or a breach of a client’s security that can be attributed to our fault or is perceived to be our fault), the market
perception of the effectiveness of our security measures could be harmed and we could lose users and clients. Security breaches
also expose us to a risk of loss of this information, class action or other litigation brought both by clients and by individuals
whose information was compromised, remediation costs, increased costs for security measures, loss of revenue, damage to our
reputation, and potential liability.

While we believe our team members undergo appropriate training with respect to cybersecurity and privacy, if any
person, including any of our team members, negligently disregards or intentionally breaches controls or procedures with which
we are responsible for complying with respect to such data or otherwise mismanages or misappropriates that data, or if
unauthorized access to or disclosure of data in our possession or control occurs, we could be subject to significant liability to
our clients or our clients’ customers for breaching contractual confidentiality and security provisions or for permitting access to
personal information subject to privacy laws, as well as liability and penalties in connection with any violation of applicable
privacy laws or criminal prosecution. Unauthorized disclosure of sensitive or confidential client or team member data, whether
through breach of computer systems, systems failure, team member or vendor negligence, fraud or misappropriation, or
otherwise, could damage our reputation and cause us to lose clients and result in liability to individuals whose information was
compromised. Similarly, unauthorized access to or through our information systems and networks or those we develop or
manage for our clients, whether by our team members or third parties, could result in negative publicity, damage to our
reputation, loss of clients or business, class action or other litigation, costly regulatory investigations and other potential
liability.

In addition, certain third parties to whom we outsource certain of our services or functions, or with whom we interface,
store our information assets or our clients’ confidential information, as well as those third parties’ providers, are also subject to
the risks outlined above. Although we generally require our vendors to hold sufficient liability insurance and provide
indemnification for any liability resulting from the vendor’s breach of the services agreement, a breach or attack affecting these
third parties, any delays in our awareness of the occurrence of such breach or attack, or our any third parties’ inability to
promptly remedy such a breach or attack, could also harm our reputation, business, financial performance, financial condition
and cash flows, and could subject us to liability for damages to our clients and their customers. As part of our due diligence

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efforts, we require our suppliers to complete privacy and security assessments and we endeavor to include provisions in our
contracts requiring compliance with IT security and privacy and data protection best practices and provisions granting us the
right to audit compliance with these requirements. These efforts to ensure third parties have robust cybersecurity and privacy
capabilities may not be sufficient to adequately protect our Company and its assets. Further, failure to select third parties that
have robust cybersecurity and privacy capabilities may also jeopardize our ability to attract new clients, who may factor their
assessment of risks associated with such third parties in their decision.

Cyber-attacks penetrating the network security of our data centers or any unauthorized disclosure or access to
confidential information and data of our clients or their end customers could also have a negative impact on our reputation and
client confidence, which could have a material adverse effect on our business, financial performance, financial condition and
cash flows.

Our team members, contractors, consultants or other associated parties may behave in contravention of our internal policies
or laws and regulations applicable to us, or otherwise act unethically or illegally, which could harm our reputation or
subject us to liability.

We have implemented and periodically review and update internal policies, including a code of ethics and conduct and policies
related to security, privacy, respectful behavior in the workplace, anti-bribery and anti-corruption, security, localized labor and
employment regulations, health and safety and securities trading in order to promote and enforce ethical conduct and
compliance with laws and regulations applicable to us. Compliance with these policies requires awareness and understanding of
the policies and any changes therein by the parties to whom they apply. We may fail to effectively or timely communicate
internal policies or changes therein to our team members, contractors, consultants or other associates, and such persons may
otherwise fail to follow our policies for reasons beyond our control. We are exposed to the risk that our team members,
independent contractors, consultants or other associates may engage in activity that is unethical, illegal or otherwise
contravenes our internal policies or the laws and regulations applicable to us, whether intentionally, recklessly or negligently. It
may not always be possible to identify and deter misconduct, and the precautions we take to detect and prevent this activity may
be ineffective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or
other actions or lawsuits stemming from a failure to comply with these laws or regulations. If any such actions are instituted
against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant
impact on our business, including harm to our reputation and the imposition of significant fines or other sanctions, all of which
could have a material adverse effect on our client relationships, business, financial condition and financial performance.

Our business could be materially and adversely affected if we do not protect our intellectual property or if our services are
found to infringe on the intellectual property of others.

Our success depends in part on certain methodologies, practices, tools and technical expertise. We engage in designing,
developing, implementing and maintaining applications and other proprietary materials. In order to protect our rights in these
various materials, we may seek protection under trade secret, patent, copyright and trademark laws. We also generally enter into
confidentiality and nondisclosure agreements with our clients and potential clients, and third-party vendors, and seek to limit
access to and distribution of our proprietary information. For our team members and independent contractors, we require
confidentiality and proprietary information agreements. These measures may not prevent misappropriation or infringement of
our intellectual property or proprietary information and a resulting loss of competitive advantage. Additionally, we may not be
successful in obtaining or maintaining trademarks for which we have applied.

We may be unable to protect our intellectual property and proprietary technology or brand effectively, which may
allow competitors to duplicate our technology and products and may adversely affect our ability to compete with them. Given
our international operations, the laws, rules, regulations and treaties in effect in the jurisdictions in which we operate, the
contractual and other protective measures we take may not be adequate to protect us from misappropriation or unauthorized use
of our intellectual property, or from the risk that such laws could change. To the extent that we do not protect our intellectual
property effectively, other parties, including former team members, with knowledge of our intellectual property may leave and
seek to exploit our intellectual property for their own or others’ advantage. We may not be able to detect unauthorized use and
take appropriate steps to enforce our rights, and any such steps may not be successful. Infringement by others of our intellectual
property, including the costs of enforcing our intellectual property rights, may have a material adverse effect on our business,
financial performance, financial condition and cash flows.

In addition, competitors or others may allege that our systems, processes, marketing, data usage or technologies
infringe on their intellectual property rights. Non-practicing entities may also bring baseless, but nonetheless costly to defend,
infringement claims. We could be required to indemnify our clients if they are sued by a third party for intellectual property
infringement arising from materials that we have provided to the clients in connection with our services and deliverables. We
may not be successful in defending against such intellectual property claims or in obtaining licenses or an agreement to resolve
any intellectual property disputes. Given the complex, rapidly changing and competitive technological and business
environment in which we operate, and the potential risks and uncertainties of intellectual property-related litigation, we cannot
provide assurances that a future assertion of an infringement claim against us or our clients will not cause us to alter our

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business practices, lose significant revenues, incur significant license, royalty or technology development expenses, or pay
significant monetary damages or legal fees and costs. Any such claim for intellectual property infringement may have a material
adverse effect on our business, reputation, financial performance, financial condition and cash flows.

We may be subject to litigation and other disputes, which could result in significant liabilities and adversely impact our
financial results.

From time to time, we are subject to lawsuits, arbitration proceedings, and other claims brought or threatened against us in the
ordinary course of business. These actions and proceedings may involve claims for, among other things, compensation for
personal injury, workers’ compensation, employment discrimination, wage and hour and other employment-related damages,
damages related to breaches of privacy or data security, breach of contract, property damage, liquidated damages, consequential
damages, punitive damages and civil penalties or other losses, or injunctive or declaratory relief. In addition, we may also be
subject to actions by state regulators and other government entities, class action lawsuits, including those alleging violations of
the Fair Labor Standards Act, state and municipal wage and hour laws, or the laws applicable to the classification of
independent contractors.

Due to the inherent uncertainties of litigation, particularly class action lawsuits, and other dispute resolution
proceedings, we cannot accurately predict their ultimate outcome. Accordingly, the magnitude of the potential loss may remain
unknown for substantial periods of time, we may be required to devote substantial resources to defend such lawsuits and our
costs could be substantial. The ultimate resolution of any litigation or proceeding through settlement, mediation, or a judgment
could have a material adverse impact on our reputation and adversely affect our financial performance and financial position.

TELUS RELATIONSHIP RISKS

TELUS and its directors and officers have limited liability to us and could engage in business activities that could be adverse
to our interests and negatively affect our business.

TELUS and its directors and officers have no legal obligation to refrain from engaging in the same or similar business activities
or lines of business as we do or from doing business with any of our clients. Any such activities could be averse to our interests
and could negatively affect our business, financial performance, financial condition and cash flows.

Potential indemnification liabilities to TELUS pursuant to various intercompany agreements could materially and adversely
affect our businesses, financial condition, financial performance and cash flows.

The agreements between us and TELUS, among other things, provide for indemnification obligations designed to make us
financially responsible for liabilities that may exist relating to our business activities. If we are required to indemnify TELUS
under the circumstances set forth in the agreements we enter into with TELUS, we may be subject to substantial liabilities.
Please refer to “Item 7B—Related Party Transactions—Our Relationship with TELUS”.

Certain of our executive officers and directors may have actual or potential conflicts of interest.

Certain of our executive officers and directors may have relationships with third parties that could create, or appear to create,
potential conflicts of interest. Our executive officers and directors who are executive officers and directors of our significant
shareholders could have, or could appear to have, conflicts of interests such as where our significant shareholders are required
to make decisions that could have implications for both them and us. See “Management”.

We may have received better terms from unaffiliated third parties than the terms we will receive in our agreements with
TELUS.

We entered into a number of agreements with TELUS, including the TELUS MSA, the transition and shared services
agreement and the master reseller agreement. These agreements were negotiated by us with TELUS and may not reflect terms
that would have been agreed to in an arm’s-length negotiation between unaffiliated third parties. For more information on the
agreements we have entered into, or will enter into, please refer to the section entitled “Item 7B—Related Party Transactions”.

SUBORDINATE VOTING SHARES RISKS

The dual-class structure contained in our articles has the effect of concentrating voting control with TELUS, which impacts
our ability to influence corporate matters that are subject to a shareholder vote.

We have two classes of shares outstanding: multiple voting shares and subordinate voting shares. Our multiple voting shares
have ten votes per share and our subordinate voting shares have one vote per share. TELUS and BPEA are the only
shareholders who hold the multiple voting shares. As of the date hereof, TELUS has approximately 72.4% of the combined

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voting power of our outstanding shares and BPEA has approximately 24.4% of the combined voting power of our outstanding
shares.

As a result of the dual-class share structure, TELUS controls a majority of the combined voting power of our shares
and therefore is able to control all matters submitted to our shareholders for approval until such date that TELUS sells its
multiple voting shares, chooses to voluntarily convert them into subordinate voting shares or it retains less than 10% of our
outstanding shares on a combined basis, which would result in the automatic conversion of its remaining multiple voting shares
into subordinate voting shares. This concentrated control limits or precludes your ability to influence corporate matters for the
foreseeable future, including the election of directors, amendments of our organizational documents and any merger,
consolidation, sale of all or substantially all of our assets or other major corporate transaction requiring shareholder approval.
The voting control may also prevent or discourage unsolicited acquisition proposals that you may feel are in your best interest
as one of our shareholders. Future transfers by holders of multiple voting shares, other than permitted transfers to such holders’
respective affiliates or to other permitted transferees, will result in those shares automatically converting to subordinate voting
shares, which will have the effect, over time, of increasing the relative voting power of those holders of multiple voting shares
who retain their multiple voting shares. For additional information, see “Item 10B—Memorandum and Articles of Association”.

In addition, because of the ten to one voting ratio between our multiple voting shares and subordinate voting shares,
the holders of our multiple voting shares will continue to control a majority of the combined voting power of our outstanding
shares even where the multiple voting shares represent a substantially reduced percentage of our total outstanding shares. The
concentrated voting control of holders of our multiple voting shares will limit the ability of our subordinate voting shareholders
to influence corporate matters for the foreseeable future, including the election of directors as well as with respect to decisions
regarding amending of our share capital, creating and issuing additional classes of shares, making significant acquisitions,
selling significant assets or parts of our business, merging with other companies and undertaking other significant transactions.
As a result, holders of multiple voting shares will have the ability to influence or control many matters affecting us and actions
may be taken that our subordinate voting shareholders may not view as beneficial. The market price of our subordinate voting
shares could be adversely affected due to the significant influence and voting power of the holders of multiple voting shares.
Additionally, the significant voting interest of holders of multiple voting shares may discourage transactions involving a change
of control, including transactions in which an investor, as a holder of the subordinate voting shares, might otherwise receive a
premium for the subordinate voting shares over the then-current market price, or discourage competing proposals if a going
private transaction is proposed by one or more holders of multiple voting shares.

Even if TELUS were to control less than a majority of the voting power of our outstanding shares, it may be able to
influence the outcome of such corporate actions due to the director appointment rights and special shareholder rights we granted
to TELUS in our shareholders’ agreement. See “—TELUS will, for the foreseeable future, control the direction of our business,
and the concentrated ownership of our outstanding shares and our entry into a shareholders’ agreement with TELUS will
prevent you and other shareholders from influencing significant decisions”.

TELUS will, for the foreseeable future, have the ability to control the direction of our business, and the concentrated
ownership of our outstanding shares and our shareholders’ agreement with TELUS will prevent you and other shareholders
from influencing significant decisions.

We entered into a shareholders’ agreement with TELUS and BPEA providing for certain director nomination rights for TELUS
and BPEA and providing for a number of special shareholder rights for TELUS. Under the terms of the shareholders’
agreement, we agreed to nominate individuals designated by TELUS as directors representing a majority of the board for as
long as TELUS continues to beneficially own at least 50% of the combined voting power of our outstanding multiple voting
shares and subordinate voting shares. Should TELUS cease to own at least 50% of the combined voting power of our
outstanding multiple voting shares and subordinate voting shares, we have agreed to nominate to our board such number of
individuals designated by TELUS in proportion to its combined voting power, for so long as TELUS continues to beneficially
own at least 5% of combined voting power of our outstanding multiple voting shares and subordinate voting shares, subject to a
minimum of at least one director. The shareholders’ agreement also provides for appointment and observer rights for BPEA. In
addition, the shareholders’ agreement provides that: (1) for so long as TELUS continues to beneficially own at least 50% of the
combined voting power of our multiple voting shares and subordinate voting shares, TELUS will be entitled, but not obligated,
to select the chair of the board and the chairs of the human resources and governance and nominating committees; and (2) for so
long as TELUS has the right to designate a nominee to our board of directors, it will also be entitled, but not obligated, to
designate at least one nominee to the human resources and governance and nominating committees and one nominee for our
appointment to our audit committee; provided that such audit committee nominee will be independent, subject to compliance
with the independence requirements of applicable securities laws and listing requirements of the NYSE and the Toronto Stock
Exchange (TSX). The shareholders’ agreement also provides for committee appointment rights for BPEA. For more
information on these director nomination rights, see “Item 7B—Related Party Transactions—Our Relationship with TELUS
and BPEA—Shareholders’ Agreement”.

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As of the date hereof, TELUS has approximately 72.4% of the combined voting power of our outstanding shares.
Pursuant to the shareholders’ agreement, BPEA has agreed not to, directly or indirectly, sell, transfer or otherwise dispose of
any multiple voting shares or subordinate voting shares without first discussing in good faith any such sale transaction with
TELUS and providing TELUS with a right to purchase such shares. Should such right of first offer be provided and exercised,
the combined voting power of our outstanding shares held by TELUS may increase further. As long as TELUS controls at least
50% of the combined voting power of our outstanding shares, it will generally be able to determine the outcome of all corporate
actions requiring shareholder approval, including the election and removal of directors. Even if TELUS were to control less
than 50% of the combined voting power of our outstanding shares, it will be able to influence the outcome of such corporate
actions due to the director appointment rights and special shareholder rights we have granted to TELUS as part of the
shareholders’ agreement.

In addition, pursuant to the shareholders’ agreement, until TELUS ceases to hold at least 50% of the combined voting
power of our outstanding shares, TELUS will have special shareholder rights related to certain matters including, among others,
approving the selection, and the ability to direct the removal, of our CEO, approving the increase or decrease of the size of our
board, approving the issuance of multiple voting shares and subordinate voting shares, approving amendments to our articles
and authorizing entering into a change of control transaction, disposing of all or substantially all of our assets, and commencing
liquidation, dissolution or voluntary bankruptcy or insolvency proceedings. As a result, certain actions that our board would
customarily decide will require consideration and approval by TELUS and our ability to take such actions may be delayed or
prevented, including actions that our other shareholders, including you, may consider favorable. We will not be able to
terminate or amend the shareholders’ agreement, except in accordance with its terms. See “Item 7B—Related Party
Transactions—Our Relationship with TELUS and BPEA—Shareholders’ Agreement”. We also entered into a collaboration and
financial reporting agreement with TELUS that, among other things, specifies that certain matters or actions we take require
advance review and consultation with TELUS. The agreement also stipulates certain actions that require TELUS International
board approval. See “Item 7B—Related Party Transactions—Collaboration and Financial Reporting Agreement”.

TELUS’ interests may not be the same as, or may conflict with, the interests of our other shareholders. Holders of our
subordinate voting shares will not be able to affect the outcome of any shareholder vote while TELUS controls the majority of
the combined voting power of our outstanding shares and TELUS will also be able to exert significant influence over our board
through its director nomination rights.

As TELUS’ interests may differ from ours or from those of our other shareholders, actions that TELUS takes with
respect to us, as our controlling shareholder and pursuant to its rights under the shareholders’ agreement, may not be favorable
to us or our other shareholders. TELUS has indicated that it intends to remain our controlling shareholder for the foreseeable
future.

Our dual-class structure may render our subordinate voting shares ineligible for inclusion in certain stock market indices,
and thus adversely affect the trading price and liquidity of our subordinate voting shares.

We cannot predict whether our dual-class structure will result in a lower or more volatile market price of our subordinate voting
shares, in negative publicity or other adverse consequences. Certain index providers have announced restrictions on including
companies with multi-class share structures in certain of their indices. For example, S&P Dow Jones has changed its eligibility
criteria for inclusion of shares of public companies on the S&P 500, S&P MidCap 400 and S&P SmallCap 600, which together
make up the S&P Composite 1500, to exclude companies with multiple classes of shares. As a result, our dual-class structure
may prevent the inclusion of our subordinate voting shares in such indices, and mutual funds, exchange-traded funds and other
investment vehicles that attempt to passively track these indices will not be able to invest in our subordinate voting shares, each
of which could adversely affect the trading price and liquidity of our subordinate voting shares. In addition, several shareholder
advisory firms have announced their opposition to the use of multiple class structure and our dual-class structure may cause
shareholder advisory firms to publish negative commentary about our corporate governance, in which case the market price and
liquidity of the subordinate voting shares could be adversely affected.

We are a controlled company within the meaning of the listing requirements of the NYSE and, as a result, we rely on
exemptions from certain corporate governance requirements; you will not have the same protections afforded to
shareholders of companies that are subject to such requirements.

TELUS controls a majority of the combined voting power in our company, which means we qualify as a controlled company
within the meaning of the corporate governance standards of the NYSE. We have elected to be treated as a controlled company.
Under these rules, we have elected not to comply with certain corporate governance requirements, including the requirements
that: our board of directors is composed of a majority of independent directors, as defined under the NYSE listing requirements;
our human resources committee is composed entirely of independent directors; and our nominating and governance committee
is composed entirely of independent directors.

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As a result, our board of directors is not composed of a majority of independent directors. Although our audit
committee is composed entirely of independent directors, we do not expect that our human resources and governance and
nominating committees will be composed entirely of independent directors for the foreseeable future.

If TELUS sells a controlling interest in us to a third party in a private transaction, we may become subject to the control of a
presently unknown third party.

TELUS owns a controlling interest in our company. TELUS has the ability, should it choose to do so, to sell its controlling
interest in us in a privately negotiated transaction, which, if sufficient in size, could result in a change of control of our
company. Such a transaction could occur without triggering the rights under the Coattail Agreement (as defined in “Item 10B—
Memorandum and Articles of Association—Certain Important Provisions of our Articles and the BCBCA—Take-Over Bid
Protection”) and may occur even if the multiple voting shares are converted into subordinate voting shares.

If TELUS privately sells its controlling interest in our company, we may become subject to the control of a presently
unknown third party. Such third party may have conflicts of interest with those of other shareholders. In addition, if TELUS
sells a controlling interest in our Company to a third party, our future indebtedness may be subject to acceleration and our other
commercial agreements and relationships could be impacted, all of which may adversely affect our ability to run our business as
described herein and may have a material adverse effect on our business, financial performance, financial condition and cash
flows.

Holders of our subordinate voting shares may be subject to dilution resulting from an investment by certain eligible
management team members in subordinate voting shares of our Company in connection with the WillowTree acquisition.

Certain eligible management team members of WillowTree reinvested in our Company at the closing of the acquisition, in the
form of securities to be settled over three years beginning in 2026, subject to certain performance-based criteria, in cash or in a
combination of cash and up to 70% in subordinate voting shares at our option. Further, WillowTree employees were given the
opportunity to purchase equity interests in our Company on substantially similar terms to those offered to the management team
members on the closing of the acquisition. These purchases are expected to close in late February for an aggregate price of
approximately $6,000,000. Should we elect to settle such reinvestment securities in subordinate voting shares, holders of our
subordinate voting shares will be subject to dilution. The greater the proportion of the reinvestment that we elect to settle in
subordinate voting shares and the better the performance, the greater the expected extent of the dilution will be.

As a foreign private issuer, we are not subject to certain U.S. securities law disclosure requirements that apply to a domestic
U.S. issuer, which may limit the information publicly available to our shareholders.

As a foreign private issuer we are not required to comply with all of the periodic disclosure and current reporting requirements
of the Exchange Act and therefore there may be less publicly available information about us than if we were a U.S. domestic
issuer. For example, we are not subject to the proxy rules in the United States and disclosure with respect to our annual
meetings is governed by Canadian requirements. In addition, our officers, directors and principal shareholders are exempt from
the reporting and short-swing profit recovery provisions of Section 16 of the Exchange Act and the rules thereunder. Therefore,
our shareholders may not know on a timely basis when our officers, directors and principal shareholders purchase or sell our
securities.

We are exempt from Regulation FD, which prohibits issuers from making selective disclosures of material non-public
information. While we comply with the corresponding requirements relating to proxy statements and disclosure of material
non-public information under Canadian securities laws, these requirements differ from those under the Exchange Act and
Regulation FD, and holders of our subordinate voting shares should not expect to receive the same information at the same time
as such information is provided by U.S. domestic companies. Additionally, we have four months after the end of each fiscal
year to file our annual report with the SEC and are not required under the Exchange Act to file or furnish quarterly reports with
the SEC as promptly as U.S. domestic companies whose securities are registered under the Exchange Act.

Additionally, as a foreign private issuer, we are not required to file or furnish quarterly and current reports with respect
to our business and financial performance. We intend to continue to submit, on a quarterly basis, interim financial data to the
SEC under cover of the SEC’s Form 6-K. Furthermore, as a foreign private issuer, we intend to continue to take advantage of
certain provisions in the NYSE listing requirements that allow us to follow Canadian law for certain governance matters. See
“Item 16G—Corporate Governance”.

Our operating results and share price may be volatile, and the market price of our subordinate voting shares may drop below
the price you pay.

Our quarterly operating results are likely to fluctuate in the future in response to numerous factors, many of which are beyond
our control, including each of the risks set forth in this section. In addition, securities markets worldwide have experienced, and
are likely to continue to experience, significant price and volume fluctuations. This market volatility, as well as general natural,

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economic, market or political conditions, could subject the market price of our subordinate voting shares to price fluctuations
regardless of our operating performance. Our operating results and the trading price of our subordinate voting shares may
fluctuate in response to various factors, including the risks described above.

These and other factors, many of which are beyond our control, may cause our operating results and the market price
and demand for our subordinate voting shares to fluctuate substantially. Fluctuations in our quarterly operating results could
limit or prevent investors from readily selling their subordinate voting shares and may otherwise negatively affect the market
price and liquidity of subordinate voting shares. In addition, in the past, when the market price of a stock has been volatile,
holders of that stock have sometimes instituted securities class action litigation against the company that issued the shares. If
any of our shareholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit
could also divert the time and attention of our management from our business, which could significantly harm our profitability
and reputation. We may also decide to settle lawsuits on unfavorable terms. Furthermore, during the course of litigation, there
could be negative public announcements of the results of hearings, motions or other interim proceedings or developments,
which could have a negative effect on the market price of our subordinate voting shares.

The market price of our subordinate voting shares may be affected by low trading volume.

The relatively low trading volume of our subordinate voting shares may limit your ability to sell your shares. Although our
subordinate voting shares are listed for trading on the NYSE and the TSX, the trading volume has not been significant.
Additionally, a large percentage of our share capital currently consists of multiple voting shares, which are not listed for trading
on an exchange. Reported average daily trading volume in our subordinate voting shares in 2022 has been approximately
114,356 subordinate voting shares on the NYSE and 142,159 subordinate voting shares on the TSX. Limited trading volume
subjects our subordinate voting shares to greater price volatility in response to news in the market and may make it difficult for
you to sell your subordinate voting shares at a price that is attractive to you. Low volume can also reduce liquidity, which could
adversely affect the market price of our subordinate voting shares. In addition, in the past, when the market price of a security
has been volatile, holders of that security have instituted securities class action litigation against the company that issued the
security. If our shareholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit
could also divert the time and attention of our management from our business, which could adversely affect our profitability
and reputation.

Future sales, or the perception of future sales, by us or our shareholders in the public market could cause the market price
for our subordinate voting shares to decline.

Sales of a substantial number of our subordinate voting shares in the public market could occur at any time. These sales, or the
perception in the market that the holders of a large number of subordinate voting shares, including TELUS or BPEA as holders
of our multiple voting shares that are convertible into subordinate voting shares, intend to sell, could reduce the market price of
our subordinate voting shares.

We have no current plans to pay regular cash dividends on our shares and, as a result, you may not receive any return on
investment unless you sell your shares for a price greater than that which you paid for it.

We do not anticipate paying any regular cash dividends on our shares for the foreseeable future. Any decision to declare and
pay dividends in the future will be made at the discretion of our board of directors and will depend on, among other things, our
financial performance, financial condition, cash requirements, contractual restrictions and other factors that our board of
directors may deem relevant. In addition, our ability to pay dividends is, and may be, limited by covenants of existing and any
future outstanding indebtedness we or our subsidiaries incur. Therefore, any return on investment in our shares is solely
dependent upon the appreciation of the price of our shares on the open market, which may not occur. See “Item 8A—
Consolidated Statements and Other Financial Information—Dividend Policy” for more detail.

Our articles, and certain Canadian legislation contain provisions that may have the effect of delaying or preventing a
change in control, limit attempts by our shareholders to replace or remove our current directors and affect the market price
of our subordinate voting shares.

Certain provisions of our articles, together or separately, could discourage potential acquisition proposals, delay or prevent a
change in control and limit the price that certain investors may be willing to pay for our subordinate voting shares. For instance,
our articles contain provisions that establish certain advance notice procedures for nomination of candidates for election as
directors at shareholders’ meetings. A non-Canadian must file an application for review with the minister responsible for the
Investment Canada Act and obtain approval of the Minister prior to acquiring control of a “Canadian business” within the
meaning of the Investment Canada Act, where prescribed financial thresholds are exceeded. Furthermore, limitations on the
ability to acquire and hold our subordinate voting shares and multiple voting shares may be imposed by the Competition Act
(Canada). This legislation permits the Commissioner of Competition to review any acquisition or establishment, directly or
indirectly, including through the acquisition of shares, of control over or of a significant interest in us. Otherwise, there are no
limitations either under the laws of Canada or British Columbia, or in our articles on the rights of non-Canadians to hold or vote

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our subordinate voting shares and multiple voting shares. Any of these provisions may discourage a potential acquirer from
proposing or completing a transaction that may have otherwise presented a premium to our shareholders. See “Item 10B—
Memorandum and Articles of Association—Certain Important Provisions of Our Articles and the BCBCA”.

Because we are a corporation incorporated in British Columbia and some of our directors and officers are residents of
Canada, it may be difficult for investors in the United States to enforce civil liabilities against us based solely upon the
federal securities laws of the United States. Similarly, it may be difficult for Canadian investors to enforce civil liabilities
against our directors and officers residing outside of Canada.

We are a corporation incorporated under the laws of the Province of British Columbia with our principal place of business in
Vancouver, Canada. Some of our directors and officers and the auditors named herein are residents of Canada and all or a
substantial portion of our assets and those of such persons are located outside the United States. Consequently, it may be
difficult for U.S. investors to effect service of process within the United States upon us or our directors or officers or such
auditors who are not residents of the United States, or to realize in the United States upon judgments of courts of the United
States predicated upon civil liabilities under the U.S. Securities Act of 1933, as amended (Securities Act). Investors should not
assume that Canadian courts: (1) would enforce judgments of U.S. courts obtained in actions against us or such persons
predicated upon the civil liability provisions of the U.S. federal securities laws or the securities or blue sky laws of any state
within the United States or (2) would enforce, in original actions, liabilities against us or such persons predicated upon the U.S.
federal securities laws or any such state securities or blue sky laws.

Similarly, some of our directors and officers are residents of countries other than Canada and the assets of such
persons may be located outside of Canada. As a result, it may be difficult for Canadian investors to initiate a lawsuit within
Canada against these non-Canadian residents, and it may be difficult to realize upon or enforce in Canada any judgment of a
court of Canada against these non-Canadian residents since a substantial portion of the assets of such persons may be located
outside of Canada. In addition, it may not be possible for Canadian investors to collect from these non-Canadian residents on
judgments obtained in courts in Canada predicated on the civil liability provisions of securities legislation of certain of the
provinces and territories of Canada. It may also be difficult for Canadian investors to succeed in a lawsuit in the United States,
based solely on violations of Canadian securities laws.

There could be adverse tax consequences for our shareholders in the United States if we are a passive foreign investment
company.

Based on the Company’s income, assets and business activities, the Company does not believe that it was a “passive foreign
investment company” (PFIC) for its 2022 taxable year and the Company expects that it will not be classified as a PFIC for U.S.
federal income tax purposes for its current taxable year or in the near future. The determination of PFIC status is made annually
at the end of each taxable year and is dependent upon a number of factors, some of which are beyond the Company’s control,
including the relative values of the Company’s assets and its subsidiaries, and the amount and type of their income. As a result,
there can be no assurance that the Company will not be a PFIC in 2023 or any subsequent year or that the IRS will agree with
the Company’s conclusion regarding its PFIC status and would not successfully challenge our position. If we are a PFIC for any
taxable year during which a U.S. person holds our subordinate voting shares, such U.S. person may suffer certain adverse
federal income tax consequences, including the treatment of gains realized on the sale of subordinate voting shares as ordinary
income, rather than as capital gain, the loss of the preferential rate applicable to dividends received on subordinate voting shares
by individuals who are U.S. persons, the addition of interest charges to the tax on such gains and certain distributions and
increased U.S. federal income tax reporting requirements. If, contrary to current expectations, we were a PFIC for U.S. federal
income tax purposes, certain elections (such as a mark-to-market election or qualified electing fund election) may be available
to U.S. shareholders that may mitigate some of these adverse U.S. federal income tax consequences. United States purchasers
of our subordinate voting shares are urged to consult their tax advisors concerning United States federal income tax
consequences of holding our subordinate voting shares if we are considered to be a PFIC. See the discussion under “Item 10E—
U.S. Federal Income Tax Considerations for U.S. Persons—PFIC Rules”.

Our articles provide that any derivative actions, actions relating to breach of fiduciary duties and other matters relating to
our internal affairs will be required to be litigated in Canada or the United States, as the case may be, which could limit your
ability to obtain a favorable judicial forum for disputes with us

Our articles include a forum selection provision that provides that, unless we consent in writing to the selection of an alternative
forum, the Supreme Court of British Columbia, Canada and the appellate courts therefrom, will be the sole and exclusive forum
for (i) any derivative action or proceeding brought on our behalf; (ii) any action or proceeding asserting a claim of breach of a
fiduciary duty owed by any of our directors, officers, or other employees to us; (iii) any action or proceeding asserting a claim
arising pursuant to any provision of the Business Corporations Act (British Columbia) (BCBCA) or our articles; or (iv) any
action or proceeding asserting a claim otherwise related to the relationships among us, our affiliates and their respective
shareholders, directors and/or officers, but excluding claims related to our business or such affiliates. The forum selection
provision also provides that our security holders are deemed to have consented to personal jurisdiction in the Province of
British Columbia and to service of process on their counsel in any foreign action initiated in violation of the foregoing

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provisions. This provision does not apply to any causes of action arising under the Securities Act, or the Exchange Act. The
Securities Act provides that both federal and state courts have concurrent jurisdiction over suits brought to enforce any duty or
liability under the Securities Act or the rules and regulations thereunder, and the Exchange Act provides that federal courts have
exclusive jurisdiction over suits brought to enforce any duty or liability under the Exchange Act or the rules and regulations
thereunder. Unless we consent in writing to the selection of an alternative forum, the United States District Court for the
Southern District of New York (or, if the United States District Court for the Southern District of New York lacks subject
matter jurisdiction over a particular dispute, the state courts in New York County, New York) shall be the sole and exclusive
forum for resolving any complaint filed in the United States asserting a cause of action arising under the Securities Act and the
Exchange Act. Investors cannot waive, and accepting or consenting to this forum selection provision does not represent a
waiver of compliance with U.S. federal securities laws and the rules and regulations thereunder. See “Item 10B—Memorandum
and Articles of Association—Certain Important Provisions of our Articles and the BCBCA—Forum Selection”.

The enforceability of similar forum selection provisions in other companies’ organizational documents, however, has
been challenged in legal proceedings in the United States, and it is possible that a court could find this type of provision to be
inapplicable, unenforceable, or inconsistent with other documents that are relevant to the filing of such lawsuits. If a court were
to find the forum selection provision in our articles to be inapplicable or unenforceable in an action, we may incur additional
costs associated with resolving such action in other jurisdictions. If upheld, the forum selection provision may impose
additional litigation costs on shareholders in pursuing any such claims. Additionally, the forum selection provision, if upheld,
may limit our shareholders’ ability to bring a claim in a judicial forum that they find favorable for disputes with us or our
directors, officers or employees, which may discourage the filing of lawsuits against us and our directors, officers and
employees, even though an action, if successful, might benefit our shareholders. The courts of the Province of British Columbia
and the United States District Court for the Southern District of New York may also reach different judgments or results than
would other courts, including courts where a shareholder considering an action may be located or would otherwise choose to
bring the action, and such judgments may be more or less favorable to us than to our shareholders.

TELUS International (Cda) Inc. depends on its subsidiaries for cash to fund its operations and expenses, including future
dividend payments, if any.

Our ability to fund and conduct our business, service our debt and pay dividends, if any, in the future will principally depend on
the ability of our subsidiaries to generate sufficient cash flow to make upstream cash distributions to us. Our subsidiaries are
separate legal entities, and although they are wholly-owned and controlled by us, they have no obligation to make any funds
available to us, whether in the form of loans, dividends or otherwise. Claims of any creditors of our subsidiaries generally will
have priority as to the assets of such subsidiaries over our claims and claims of our creditors and shareholders. To the extent the
ability of our subsidiaries to distribute dividends or other payments to us is limited in any way, our ability to fund and conduct
our business, service our debt and pay dividends, if any, could be harmed.

If securities or industry analysts cease publishing research or reports about us, our business or our market, or if they
change their recommendations regarding our subordinate voting shares, the price and trading volume of our subordinate
voting shares could decline.

The trading market for our subordinate voting shares is influenced by the research and reports that industry or securities
analysts publish about us, our business, our market and our competitors. If any of the analysts who cover us or may cover us in
the future change their recommendation regarding our subordinate voting shares adversely, or provide more favorable relative
recommendations about our competitors, the price of our subordinate voting shares could decline. If any analyst who covers us
or may cover us in the future were to cease coverage of our company, we could lose visibility in the financial markets, which in
turn could cause the price or trading volume of our subordinate voting shares to decline.

Our organizational documents permit us to issue an unlimited number of subordinate voting shares, multiple voting shares
and preferred shares without seeking approval of the holders of subordinate voting shares.

Our articles permit us to issue an unlimited number of subordinate voting shares, multiple voting shares and preferred shares.
We anticipate that we may, from time to time, issue additional subordinate voting shares in the future in connection with
acquisitions or to raise capital for general corporate or other purposes.

Subject to the requirements of the NYSE and the TSX and applicable securities laws, we are not required to obtain the
approval of the holders of subordinate voting shares for the issuance of additional subordinate voting shares, should we do so.
Although the rules of the TSX generally prohibit us from issuing additional multiple voting shares, there may be, with the
approval of TELUS, certain circumstances where additional multiple voting shares may be issued, including with applicable
regulatory, stock exchange and shareholder approval. Any further issuances of subordinate voting shares or multiple voting
shares will result in immediate dilution to existing shareholders and may have an adverse effect on the value of their
shareholdings. Additionally, any further issuances of multiple voting shares will significantly lessen the combined voting power
of our subordinate voting shares due to the ten-to-one (10-to-1) voting ratio between our multiple voting shares and subordinate
voting shares. TELUS and BPEA, as holders of our multiple voting shares, may also elect at any time or, in certain

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circumstances, be required to convert their multiple voting shares into subordinate voting shares, which would increase the
number of subordinate voting shares. See “Item 7B—Related Party Transactions”.

Our articles also permit us to issue an unlimited number of preferred shares, issuable in series and, subject to the
requirements of the BCBCA, having such designations, rights, privileges, restrictions and conditions, including dividend and
voting rights, as our board of directors may determine and which may be superior to those of the subordinate voting shares. The
issuance of preferred shares could, among other things, have the effect of delaying, deferring or preventing a change in control
of the Company and might adversely affect the market price of our subordinate shares. We have no current or immediate plans
to issue any preferred shares. Subject to the provisions of the BCBCA and the applicable requirements of the NYSE and the
TSX, we are not required to obtain the approval of the holders of subordinate voting shares for the issuance of preferred shares
or to determine the maximum number of shares of each series, create an identifying name for each series and attach such special
rights or restrictions as our board of directors may determine. See “Item 10B—Memorandum and Articles of Association”.

ITEM 4 INFORMATION ON THE COMPANY

A. History and Development of the Company

TELUS International (Cda) Inc. was incorporated under the BCBCA on January 2, 2016. We directly or indirectly own 100%
of all of our operating subsidiaries. Our delivery locations, from where team members serve our clients, are operated from
subsidiaries located in the relevant jurisdiction. Our subordinate voting shares began trading on the NYSE and the TSX on
February 3, 2021, under the symbol “TIXT”.

Our headquarters and principal executive offices are located at Floor 7, 510 West Georgia Street, Vancouver, British
Columbia, Canada V6B 0M3 and our telephone number is (604) 695 3455. Our website address is www.telusinternational.com.
The information on or accessible through our website is not part of and is not incorporated by reference into this Annual Report,
and the inclusion of our website address in this Annual Report is an inactive textual reference only.

We are subject to the informational requirements of the Exchange Act and are required to file or furnish, as applicable,
reports and other information with the SEC. The SEC maintains a website at www.sec.gov that contains reports, proxy and
information statements and other information regarding registrants that make electronic filings with the SEC using its EDGAR
system.

B. Business Overview

Our Operations and Principal Activities

We design, build and deliver next-generation digital solutions to enhance the customer experience (CX) for global and
disruptive brands. The Company’s services support the full lifecycle of its clients’ digital transformation journeys, enabling
them to more quickly embrace next-generation digital technologies to deliver better business outcomes.

TELUS International’s integrated solutions span digital strategy, innovation, consulting and design, IT lifecycle
including managed solutions, intelligent automation and end-to-end AI data solutions including computer vision capabilities, as
well as omnichannel CX and trust and safety solutions including content moderation.

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Fueling all stages of company growth, we partner with brands across high growth industry verticals, including tech and
games, communications and media, eCommerce and fintech, banking, financial services and insurance, healthcare, and travel
and hospitality.

We do not use raw materials; we rely on the strength of our global team’s experience and knowledge to serve our
customers’ needs.

Our Global Team and the Markets Where We Compete

As of December 31, 2022, we have more than 73,000 team members in 28 countries around the world. Our delivery locations
are strategically selected based on a number of factors, including access to diverse, skilled talent, proximity to clients and our
ability to deliver our services over multiple time zones and in multiple languages.

The global reach of our delivery locations enables us to deliver our full suite of solutions across geographies and
customize the delivery strategy for our clients according to their evolving needs. We have established a presence in key global
markets, which supply us with qualified technology talent and have been recognized as an employer of choice in many of these
markets. We believe that our global and diverse team members have the nuanced cultural knowledge and empathy to deliver all
of our services.

To deliver services for TELUS International AI Data Solutions, we use a crowdsourcing model, which allows us to
access talent that is global, flexible and scales to meet the geographic, demographic or cultural data needs of our clients.
Annotators are provided with purpose-built educational materials and tools and, through our proprietary platform, we have the
ability to track each annotators’ efficiency, virtually oversee quality management protocols, and process payments to our one
million annotators across more than 88 countries. This artificial intelligence (AI) community is organized through a framework
that provides for annotator sourcing, education and management that is supported by team members around the world.

In Asia-Pacific, we have 14 delivery locations. Our talent acquisition in Asia-Pacific benefits from a local emphasis on
education, creating a highly qualified workforce with extensive language capabilities. In India and the Philippines, for example,
we are able to attract skilled team members with expertise in next-generation technology with substantial language capabilities.
Through our caring culture, we are able to engage and develop these team members which leads to higher tenure and
proficiency.

In Central America, we have eight delivery locations in close proximity to our large North American client base. Our
team members in Central America are drawn from a large population of fluent English and Spanish speakers. In our delivery
locations in Central America, we benefit from developed telecom and energy infrastructure. In Guatemala, we benefit from an
engaged workforce and regionally competitive labor costs. In El Salvador, we gain access to a young and educated population.

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In Europe, we have 31 delivery locations, with a number of these locations being in close proximity to client locations.
Our multilingual team members are selected from a skilled talent pool in a centrally located geographic location. For example,
in Bulgaria, we are able to employ an educated and skilled team; in Romania, there is a large talent pool with technology skills;
and in Ireland, talent converges from many global origination points, creating a diversified talent pool. We also have extensive
coverage in Germany, where we can focus on meeting the high demand for German-language support but also benefit from the
availability of many skilled workers, who are drawn to Germany as one of the largest global and European Union economies. In
Turkey, as a transcontinental country that sits between Europe and Asia, we benefit from multilingual resources who speak
Turkish, Kurdish and Arabic.

In North America, we have three delivery locations and recruit from a skilled talent pool with geographic proximity to
many of our largest clients. Additionally, North America is where the majority of our sales, marketing, operational support and
services team members work from a virtual office environment, which facilitates collaboration, and in some cases collocation,
with our clients. A flexible work environment enables us to attract and retain talent, improve agility, operational efficiency and
productivity of our organization, as well as enable robust business continuity planning.

For details regarding our revenue by industry verticals and geographic regions, please see “Item 5A—Operating
Results—Revenue”.

Our Customers

Our more than 650 clients include companies that believe customer experience is critical to their success. We seek to work with
disruptive companies and leaders in their respective sectors. We have built long-tenured relationships with these companies
within our core targeted industry verticals, including tech and games, communications and media, eCommerce and fintech,
banking, financial services and insurance, healthcare and travel and hospitality. Within some of these industry verticals, we
serve clients across several sub-sectors. For example, within tech and games, we serve some of the leading social networks and
search engines, as well as high-growth online games, ride sharing and real estate technology companies. Additionally, we
partner with leading providers of digital assistants, search engines and advertising networks in the delivery of our TELUS
International AI solutions. Within eCommerce and fintech we serve both traditional and next-generation payments and point of
sale providers, business-to-business and business-to-consumer software-as-a-service companies, online marketplaces and large
financial services institutions.

Our customers, which we believe to be among the most respected names in their industries, trust us to support their
brands and reputations. We are able to execute on emerging customer experience challenges which enables high client
referenceability that can strengthen our credibility with clients in existing and new verticals and help drive growth.

Our relationship with TELUS, our largest client and controlling shareholder, has been instrumental to our success to
date. TELUS provides us with access to revenue visibility, stability and growth, as well as strategic partnership with respect to
co-innovation within the communications vertical, customer service excellence focus and an internationally recognized social
purpose impact.

About WillowTree and the acquisition

On January 3, 2023, we completed the acquisition of WillowTree. Now rebranded as WillowTree, a TELUS International
Company. The Company is headquartered in Charlottesville, Virginia and operates 13 global studios across the United States,
Canada, Brazil, Portugal, Spain, Poland and Romania.

Services. WillowTree is a premier, full-service digital product provider focused on end user experiences, such as
native mobile applications and unified web interfaces. The company has shipped over 700 native mobile applications, websites
and other digital products for its clients since its founding in 2008. As a full-service digital product provider, WillowTree adds
key front-end design and build competencies to TELUS International’s suite of end-to-end capabilities across the full customer
experience value chain.

Clients. WillowTree will help us further bolster our client diversification efforts by adding new marquee customers,
and help amplify our cross-selling competencies and opportunities on a global basis. WillowTree’s clients include Fortune 500
companies across key verticals including telecommunications and media, healthcare and life sciences, financial services,
consumer goods, travel and hospitality, and technology and software.

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Team Members. The acquisition of WillowTree brings key tech talent and diversity to TELUS International adding
more than 1,000 digital strategists, designers, engineers and project managers, with experience working in small, dedicated,
autonomous teams. These team members’ experience with leading digital design and development will further augment our
digital consulting services and the development of our innovative client-centric software solutions. WillowTree team members
join TELUS International from a similarly collaborative, human-centered, award-winning culture, facilitating smooth
integration into the TELUS International family.

The Acquisition. The acquisition was completed pursuant to the stock purchase agreement and agreement and plan of
merger, dated as of October 26, 2022, as amended on December 30, 2022, by and among TELUS International Holding
(U.S.A.) Corp. (“TELUS USA”), Insignia WT Holdings, LLC (the “Blocker Seller”), WLTR Holdings, LLC and Sequoia
Merger Subsidiary LLC (the “Acquisition Agreement”), for total purchase consideration of approximately $1.1 billion, net of
assumed debt, and comprised of cash, $125 million of our subordinate voting shares, and provisions for written put options for
the portion retained by certain eligible management team members and employees that will be settled over a three-year period
starting in 2026, subject to certain performance-based criteria, in cash or a combination of cash and our subordinate voting
shares, pursuant to the terms of the limited liability company agreement of WillowTree, which is described in more detail in
“Item 10C—Material Contracts—Second Amended & Restated Limited Liability Company Agreement of WillowTree”. The
balance was paid in cash at closing using borrowings from our credit facility and cash on hand.

Company History and Evolution

Since our founding in 2005, we have evolved and grown our business from an in-house customer care provider for TELUS to a
CX innovator that designs, builds and delivers next-generation solutions, including AI and content moderation, for global and
disruptive brands. Today, we believe we have a category-defining value proposition with a unique approach to combining both
digital transformation and CX capabilities.

In February 2021, TELUS International completed the largest, at that time, technology IPO in the history of the TSX.
With an initial market capitalization of $8.5 billion, TELUS International’s IPO surpassed TELUS’ valuation from 2000, and
became the fifth largest IPO in TSX history by total proceeds raised.

In 2016, Baring Private Equity Asia, a leading global private equity investor, acquired a significant minority stake in
TELUS International, which enabled us to amplify investment in our IT portfolio and further expand into Asia. In 2022, BPEA
EQT was formed as a result of the combination of Baring Private Equity Asia and EQT Asia.

From 2005, when TELUS acquired a controlling interest in Ambergris Solutions, a boutique CX provider in the
Philippines catering to traditional U.S.-based enterprise clients, to present, we have made a number of additional significant
organic investments, as well as acquisitions, with the goal of better serving our growing portfolio of global clients. We
expanded our delivery platform to access highly qualified talent in multiple geographies, including in Asia, Central America,
Europe and North America, and developed a broader set of complex, digital-centric capabilities. It was clear to us that digital
enablement would become increasingly vital for our clients, and as a result we focused our expansion strategy on developing
this expertise organically and, in some cases, accelerating our growth through strategic acquisitions. Continuing on this journey,
in October 2022, we announced a definitive agreement to acquire WillowTree, a premier, full-service digital product provider
focused on end user experiences, such as native mobile applications and unified web interfaces. The acquisition closed in
January 2023, having met all customary closing conditions and regulatory approvals. The acquisition of WillowTree brings key
tech talent and diversity to our portfolio of next-generation solutions and further augments our digital consulting and innovative
client-centric software development capabilities.

Unique Caring Culture

TELUS International’s unique caring culture promotes diversity and inclusivity through its policies, team member resource
groups and workshops, and equal employment opportunity hiring practices across the regions where it operates.

Since 2007, the Company has positively impacted the lives of more than 1.2 million citizens around the world,
building stronger communities and helping those in need through large-scale volunteer events and charitable giving.

In 2022, our corporate social responsibility initiatives were focused on:

• Children’s education (Bulgaria, El Salvador, Guatemala and the Philippines)

• Fundraising races for local charities (China, India, Ireland, the Philippines and Romania)

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• Health initiatives like blood donation drives and bone marrow donations (Bulgaria, the Philippines, and
Spain) and building health centers (El Salvador)

• Helping those impacted by the war in Ukraine (Bulgaria, Canada, Finland, France, Germany, Ireland,
Poland and Romania)

• Improving the environment by planting 34,000 trees (El Salvador, Guatemala, India, Ireland, the
Philippines and Romania), installing 250 ecological stoves and an equal number of water filtration
systems (El Salvador and Guatemala), as well as supporting 1.4 million bees (Austria, Bulgaria,
Germany, Guatemala and Ireland).

In 2022, five TELUS International Community Boards contributed $500,000 to charitable projects in Bulgaria, El
Salvador, Guatemala, the Philippines and Romania. The TELUS International Community Boards have provided $5.1 million
in funding to grassroots charitable organizations since 2011.

In 2022, we introduced our newly evolved TELUS International values:

• we passionately put our customers and our communities first;

• we embrace change and innovate courageously; and

• we grow together through spirited teamwork.

Environmental, Social and Governance (ESG) Oversight

The TELUS International Board of Directors oversees the ESG strategy and direction for our Company, facilitated through at
least biannual ESG updates from our executive leadership team, primarily from the Chief Corporate Officer and the Chief Legal
Officer & Corporate Secretary. The Board oversees the ESG priorities, commitments and policies that we set, including
oversight of climate-related risks and opportunities and broader climate change strategy.

TELUS International’s ESG priorities are:

• hiring, motivating and promoting our diverse, talented team who exceed customer expectations,
including through impact sourcing programs;

• giving back to the communities where we live, work and serve by creating meaningful, lasting impact
through the efforts of our team members;

• supporting a sustainable planet for all by embracing the principles of refuse, reduce, reuse, repurpose and
recycle; and

• adhering to principles of strong corporate governance.

The 2022 TELUS International Sustainability Report will be released in early 2023.

Our Growth Strategy

Our Company uses a number of direct marketing techniques such as a lead-generating website and social media promotion,
thought leadership pieces, and search engine optimization, focused on niche and targeted markets. Our sales strategies are
tailored to our core targeted industry verticals, including tech and games, communications and media, eCommerce and fintech,
banking, financial services and insurance, healthcare and travel and hospitality.

We are dedicated to building on our current capabilities in digital transformation and customer experience
management by deploying the following growth strategies:

Expand Our Current and Potential Services with Existing Clients. We seek to deepen existing client relationships by
providing our clients with more of our existing services, as well as developing new adjacent services to address their evolving
digital enablement and customer experience needs. We believe we have a significant opportunity to grow within our existing

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client base by deploying more of our existing solutions, such as cloud migration and content moderation. We have successfully
expanded the number of services we offer our top ten clients and plan to similarly expand with the balance of our portfolio. For
example, all of our top ten clients use multiple TELUS International services.

Furthermore, we believe that we have visibility into areas of fast-growing and high-value adjacent service offerings
that are relevant to our clients by virtue of several factors, including our domain expertise, our strength in both customer
experience, IT, AI data-annotation services and our ability to understand and anticipate our clients’ challenges. We seek to
continue to leverage these strengths to identify new opportunities and capitalize on emerging trends to deliver greater value and
to further grow within our client base. Additionally, our ability to hire, onboard and manage a large community of qualified
annotators, and further develop our proprietary crowdsourcing platform and tools, positions us to expand our existing
relationships with technology and large enterprise clients.

Establish Relationships with New Clients. We believe there are significant untapped opportunities to win new clients
across all of our targeted industry verticals. We target potential clients that value customer experience as a brand differentiator.
Within these opportunities, we focus on potential clients that are experiencing significant growth and require a partner capable
of evolving with them. We have historically won new clients based upon the strength of our position in the marketplace and,
based on the quality of the services we have provided, references from existing clients.

The capabilities and solutions we have developed can be adapted and, we believe, easily used to meet the needs of
clients in additional industry verticals and sub-sectors that are increasingly pressured to transform. We will continue to leverage
current processes, services and solutions to design and build new offerings to address new clients’ needs for better customer
experience management.

Leverage Technology and Process to Drive Continuous Improvement. We strive to continuously iterate and improve
upon our operations to optimize the overall efficiency of our organization, enhance operating leverage and margins and better
serve our clients. Our organization has over 5,500 “Six Sigma” trained and over 4,200 certified team members that help us
better leverage our technologies, processes, policies and practices to improve operational excellence and drive productivity at
scale. These capabilities create the opportunity to reinvest in key initiatives and implement best-in-class technologies across
functional areas, which we believe will further expand our competitive and operational advantages.

Our approach to innovation includes applying methodologies and technologies internally to evaluate viability and
scalability before deploying our solutions to clients. We aim to continue growing both organically and inorganically, and we
believe that the returns generated by our focus on technology-enabled efficiency across the organization will increase.

Enhance Core Capabilities with Strategic Acquisitions. We intend to continue to enhance our core capabilities and
solutions through acquisitions that support our strategy to design, build and deliver exceptional customer experiences for our
clients. We explore acquisition opportunities that expand the breadth of our service offerings, enhance the depth of our IT
capabilities and accelerate our presence in attractive client industry verticals. We seek to acquire companies that have the
potential to enhance our capabilities and which we believe will contribute positively to our financial profile and that are
culturally aligned with our values. For example, WillowTree, our most recent acquisition that closed in January 2023, adds
strong mobile development capabilities to our unique skills offering. The deal expands TELUS International’s geographic reach
(bringing our operations to a total of 30 countries) and adds new clients.

Our Market Opportunity

Our solutions and services are relevant across multiple markets including IT services for Digital Transformation (DX) and
Digital Customer Experience Management (DCXM):

DX - Companies are increasingly partnering with third-party providers to meet their digital transformation challenges,
which include designing solutions that facilitate an omnichannel experience, building scalable infrastructure and delivering new
digital channels. To keep systems scalable, an increasing number of companies are opting for cloud-based solutions and seeking
to automate processes where possible.

DCXM - DCXM represents the next evolution of customer experience management. We believe that digital customer
experience has become increasingly important to companies, as highly engaged users dictate the nature and frequency of
interactions. Customers ascribe value to seamless interactions and are willing to reward positive experiences with loyalty and
repeat business. As customers have shifted toward digital channels, leveraging next-generation technologies to deliver a unified
and satisfying customer experience has become paramount.

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We believe we are well-positioned to serve these markets and, as a result, we have a significant market opportunity
due to the overall industry growth rate, low penetration to date and strong exposure to the comparatively higher-growth DCXM
sector of the market.

New Economy Services - To complement our DCXM capabilities, we provide several adjacent new economy services
such as content moderation and data annotation, which are two markets that have experienced high growth in recent years.
Content moderation includes review and compliance services of user-generated content on social media and other platforms.
The necessity of moderating content on digital platforms has prompted enterprises to seek specialized services to accommodate
changes in the uncertain, highly regulated environment. To support our clients’ development of AI-powered solutions, we offer
fully-managed data annotation services that include AI strategy consulting, and the collection, annotation and validation of
training data to support a broad range of use cases, ranging from computer vision and data categorization to search relevance for
advanced AI applications such as facial recognition, autonomous vehicles, medical imaging and more. We anticipate continued
growth in these services in the future. AI data solutions is another market we serve that we have seen experience high demand.
Along with seeing the volume of content continuing to increase, equally important is the need for constant dynamic changes
and need for improvement.

Dependencies

Our Company is not heavily dependent on patents or licenses, industrial, commercial or new manufacturing processes.
However, we have derived and believe that, in the near term, we will continue to derive a significant portion of our revenue
from a limited number of large clients. Three clients (TELUS, a leading social media company, and Google) account for a
significant portion of our revenue and loss of or reduction in business from, or consolidation of, these or any other major clients
could have a material adverse effect on our business, financial condition, financial performance and prospects.

Our largest client, based on our revenues earned from them, is TELUS, our controlling shareholder. We provide
services to TELUS under the master services agreement (TELUS MSA), which expires in January 2031. The TELUS MSA
provides for a minimum annual spend of $200 million, subject to adjustment in accordance with its terms, although TELUS has
the ability to delay or terminate specific services for certain specified reasons with limited notice. See “Item 7B—Related Party
Transactions—Our Relationship with TELUS—Master Services Agreement”. In addition, the master services agreements
(MSAs) with all other clients do not have minimum annual spend and the terms of these master service agreements permit our
clients to delay, postpone or even terminate contracted services at their discretion and with limited notice to us.

The volume of work performed for specific clients or the revenue we generate can vary from year to year. This
variation may arise as a result of the current macroeconomic environment, where clients are delaying or even foregoing our
services or consolidating their services providers, requesting price reductions or moving work in-house, or the continued
consolidation activity in the marketplace, which may result in our clients moving to other service providers or providing the
services we offer in house. As a result of the foregoing, a major client in one year may not provide the same level of revenue in
any subsequent year, which could result in reduced revenue for us.

Competition

The market sectors in which we compete are global, fragmented, and rapidly evolving. We face competition primarily from:

• in-house technology and customer experience management teams;

• digital transformation services providers such as Endava PLC, EPAM Systems, Inc. and Globant S.A.;

• globally diversified IT and business processing outsourcing service providers such as Accenture plc,
Cognizant Technology Solutions Ltd., Genpact LLC and WNS Limited;

• customer experience providers such as TaskUs, Inc., Teleperformance S.A. and TTEC Holdings, Inc.;

• single-threaded data annotation providers such as Appen Limited.

We believe that the main competitive factors in our business include digital capabilities, comprehensiveness of
offerings, vertical and process expertise, global delivery capabilities, team member engagement and retention, reputation, track
record and financial stability. We believe that we are well-positioned to compete effectively with respect to each of these
factors.

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Regulatory Context

We are subject to a number of national, state, provincial and local laws and regulations in Canada, the United States and in each
of the countries where we provide our services and where we operate our delivery locations. These laws and regulations cover a
wide range of areas including anti-corruption, internal and disclosure control obligations, data privacy and protection, wage
and-hour standards, employment and labor relations, trade protections and restrictions, import and export control, tariffs,
taxation, sanctions, data and transaction processing security, payment card industry data security standards, collections, records
management, user-generated content hosted on websites we operate, privacy practices, data residency, corporate governance,
anti-trust and competition, team member and third-party complaints, telemarketing regulations, telephone consumer regulations,
government affairs and other regulatory requirements affecting trade and investment. Further, we are seeing an increasing
number of countries adopting content moderation and artificial intelligence-related regulations, including in particular in the
European Union and in Ontario, Canada. Some of the laws and regulations to which we are subject, and the interpretations of
those laws and regulations, are still evolving and being tested in courts and could be applied or interpreted in unanticipated
ways that could harm our business. See “Item 3D—Risk Factors— Business & Operational Risks —We and our clients are
subject to laws and regulations globally, which increases the difficulty of compliance and may involve significant costs and
risks. Any failure to comply with applicable legal and regulatory requirements could have a material adverse effect on our
business, financial performance, financial condition and cash flows”.

The terms of our service contracts typically require that we comply with applicable laws and regulations in the jurisdictions in
which we provide the services or in the jurisdictions where our clients are located. In certain cases, we are contractually
required to comply with laws and regulations that apply to our clients, but not to us, and sometimes our clients require us to
take specific steps intended to make it easier for them to comply with their applicable laws. In certain of our service contracts,
our clients undertake to inform us about laws and regulations that may apply to us in jurisdictions in which they are located.

Labor and Employment. We are subject to laws and regulations governing our relationships with our team members in
all countries where our team members reside. These laws and regulations include wage and hour requirements, work and safety
conditions, benefits, citizenship requirements, work permits and travel restrictions, human and civil rights legislation and
privacy laws.

Data Protection. We are typically required to process, and sometimes collect and/or store sensitive data of our clients
and their customers, including, but not limited to, personal data regulated by the GDPR in the European Union, The Personal
Information Protection and Electronic Documents Act and equivalent provincial statutes in Canada, the California Consumer
Privacy Act and the California Invasion of Privacy Act in California, the Personal Data Protection Bill of 2018 in India, the
Data Privacy Act of 2012 in the Philippines, and similar laws and regulations in each of the countries in which we operate and
where we provide services. This data may include personally identifiable information such as names, addresses, social security
numbers, personal health information, credit card account numbers, checking and savings account numbers and payment history
records, such as account closures and returned checks. In addition, we collect and store data regarding our team members. The
laws and regulations we are subject to impose various data protection requirements and other industry-specific regulations. The
GDPR, for example, imposes privacy and data security compliance obligations and penalties for noncompliance. In particular,
the GDPR has introduced numerous privacy-related changes for companies operating within and outside the European Union,
including greater control for, and rights granted to, data subjects, increased data portability for European Union consumers, data
breach notification requirements, restrictions on automated decision-making and increased fines. Additionally, foreign
governments outside of the European Union are also taking steps to fortify their data privacy laws and regulations. For
example, Brazil, India, the Philippines, certain countries in Central America and Asia and certain U.S. states where we operate
and in some of the other countries where our client’s customers reside have implemented or are considering GDPR-like data
protection laws which could impact our engagements with clients (existing and potential), vendors and team members in those
countries. We actively monitor data and privacy regulations in the countries in which we operate and in the countries where our
clients’ customers reside to ensure we develop policies and processes responsive to new regulations. See “Item 3D— Risks
Factors—Business & Operational Risks—The unauthorized disclosure of sensitive or confidential client and customer data
could expose us to protracted and costly litigation, damage our reputation and cause us to lose clients”.

Consumer Protection. As many of the services we provide involve our team engaging directly with the customers of
our clients in a wide variety of interactions, we are subject to consumer protection laws and regulations related to these
interactions in Canada, the United States and in the other countries in which we operate, including those related to
telemarketing services, debt collection, credit reporting, healthcare-related data and in some cases the removal of prescribed
content from social media sites.

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Taxation. Several of our facilities, primarily located in the Philippines and India, benefit from tax incentives designed
to encourage foreign investment. In the Philippines, these incentives are administered by the Philippine Economic Zone
Authority (PEZA) and initially provide a four-year tax exemption for each PEZA registered location, followed by a preferential
tax rate of 5% of gross profit. The CREATE Act, signed into law in March 2021, grandfathers existing incentives but limits the
5% tax on gross profit period to 10 years. CREATE established a new incentive program with similar benefits including an
income tax exemption period followed by either the 5% preferential tax on gross profit or the proposed regular corporate tax
rate of 25% but with enhanced tax deductions. Certain of our delivery locations in India, which were established in Special
Economic Zones, are eligible for tax incentives that are expected to be phased out commencing 2024 through 2034. These
delivery locations were eligible for a 100% income tax exemption for the first five years of operation and a 50% exemption for
a period of up to 10 years thereafter if certain conditions are met. Additionally, there were new delivery locations established
during the fiscal year ended December 31, 2019, which are eligible for tax incentives until 2034. See “Item 3D Risk Factors—
Business & Operational Risks —Our financial condition could be negatively affected if countries reduce or withdraw tax
benefits and other incentives currently provided to companies within our industry or if we are no longer eligible for these
benefits”, “Item 3D—Risk Factors—Risks Related to Our Business—Our business may not develop in ways that we currently
anticipate and demand for our services may be reduced due to negative reaction to offshore / nearshore outsourcing or
automation from the public”, “Item 3D—Risk Factors—Risks Related to Our Business—Tax legislation and the results of
actions by taxing authorities may have an adverse effect on our operations and our overall tax rate”, “Item 3D—Risk Factors—
Business & Operational Risks—Certain income of our non-Canadian subsidiaries may be taxable in Canada, and if the
Canadian tax authorities were to successfully dispute the quantum of such income, our tax expense and tax liability may
increase”, “Item 3D—Risk Factors—Risks Related to Our Subordinate Voting Shares—There could be adverse tax
consequence for our shareholders in the United States if we are a passive foreign investment company”.

The jurisdictions where we operate, as well as our contracts, require us to comply with or facilitate our clients’ compliance with
numerous, complex and sometimes conflicting legal regimes, both domestically and internationally. These laws and regulations
relate to a number of aspects of our business, including anti-corruption, internal and disclosure control obligations, data privacy
and protection, wage-and-hour standards, employment and labor relations, trade protections and restrictions, import and export
control, tariffs, taxation, sanctions, data and transaction processing security, payment card industry data security standards,
records management, user-generated content hosted on websites we operate, privacy practices, data residency, corporate
governance, anti-trust and competition, team member and third-party complaints, telemarketing regulations, telephone
consumer regulations, government affairs and other regulatory requirements affecting trade and investment.

Our clients are located around the world, and the laws and regulations that apply to them include, among others, U.S.
federal laws and regulations such as the Fair Credit Reporting Act, Gramm-Leach-Bliley Act, the Health Insurance Portability
and Accountability Act (HIPAA), the Health Information Technology for Economic and Clinical Health Act, Telephone
Consumer Protection Act, Telemarketing Sales Rule, state laws on third-party administration services, utilization review
services, data privacy and protection telemarketing services or state laws on debt collection in the U.S., collectively enforced by
numerous federal and state government agencies and attorneys general, as well as similar consumer protection laws in other
countries in which our clients’ customers are based. Failure to perform our services in a manner that complies with any such
requirements could result in breaches of contracts with our clients. The application of these laws and regulations to our clients is
often unclear and may at times conflict. The global nature of our operations increases the difficulty of compliance. For example,
in many foreign countries, particularly in those with developing economies, it is common to engage in business practices that
are prohibited by regulations applicable to us or our clients, including Canada’s Corruption of Foreign Public Officials Act and
the United States Foreign Corrupt Practices Act. We cannot provide assurance that our clients will not take actions in violation
of our internal policies or Canadian or United States laws. Further, payment card industry and HIPAA guidance is evolving in
light of the increase in remote-working conditions globally, and thus there exists uncertainty over the additional cost and ability
to comply with such evolving standards. Compliance with these laws and regulations may involve significant costs, consume
significant time and resources or require changes in our business practices that result in reduced revenue and profitability.

In addition, we are required under various laws to obtain and maintain accreditations, permits and/or licenses for the
conduct of our business in all jurisdictions in which we have operations and, in some cases, where our clients receive our
services, including the United States, Canada and Europe.

C. Organizational Structure

TELUS is our controlling shareholder. See “Item 7A—Major Shareholders”. As at December 31, 2022, we have the following
“significant subsidiaries”, as such term is defined in Rule 1-02 of Regulation S-X under the Securities Act, all of which are
directly or indirectly wholly-owned by TELUS International:

• TELUS International Philippines, Inc. (Philippines)

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• TELUS International Services Limited (Ireland)

• TELUS International AI Inc. (Delaware)

D. Property, Plant And Equipment

At December 31, 2022, we had 56 delivery locations and global operations in 28 countries. Following the acquisition of
WillowTree in January 2023, we have added operations in two countries, bringing our total to 30 countries. We also have two
corporate offices located in Toronto and Vancouver. All of our facilities are leased, with a total leased area of approximately
389,111 square meters (approximately 4,188,356 square feet).

ITEM 4A UNRESOLVED STAFF COMMENTS

None.

ITEM 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS

A. Operating Results

Overview

We are a leading digital customer experience (CX) innovator that designs, builds and delivers next-generation solutions,
including AI and content moderation, for global and disruptive brands. Our services support the full lifecycle of our clients’
digital transformation journeys and enable them to more quickly embrace next-generation digital technologies to deliver better
business outcomes. We work with our clients to shape their digital vision and strategies, design scalable processes and identify
opportunities for innovation and growth. We bring to bear expertise in advanced technologies and processes, as well as a deep
understanding of the challenges faced by all of our clients, including some of the largest global brands, when engaging with
their customers. Over the last 18 years, we have built comprehensive, end-to-end capabilities with a mix of industry and digital
technology expertise to support our clients in their customer experience and digital enablement transformations.

TELUS International was born out of an intense focus on customer service excellence, continuous improvement and a
values-driven culture under the ownership of TELUS Corporation, a leading communications and information technology
company in Canada. Since our founding, we have made a number of significant organic investments and acquisitions, with the
goal of better serving our growing portfolio of global clients. We have expanded our agile delivery model to access highly
qualified talent in multiple geographies, including Asia-Pacific, Central America, Europe and North America, and developed a
broader set of complex, digital-centric capabilities.

We believe our ability to help clients realize better business outcomes begins with the talented team members we
dedicate to supporting our clients because customer experience delivered by empathetic, highly skilled and engaged teams is
key to providing a high-quality brand experience. We have a unique and differentiated culture that places people and a shared
set of values at the forefront of everything we do. Over the past decade, we have made a series of investments in our people
predicated upon the core philosophy that our “caring culture” drives sustainable team member engagement, retention and
customer satisfaction.

We have expanded our focus across multiple industry verticals, targeting clients who believe exceptional customer
experience is critical to their success. We believe we have a category-defining value proposition with a unique approach to
combining both digital transformation and CX capabilities. We have built comprehensive, end-to-end capabilities with a mix of
industry and digital technology expertise to support our clients in their customer experience and digital enablement journeys.
Our services support the full scope of our clients’ digital transformations and enable clients to more quickly embrace next-
generation digital technologies to deliver better business outcomes. We provide strategy and innovation, next-generation
technology and IT services, and CX process and delivery solutions to fuel our clients’ growth. Our highly skilled and
empathetic team members together with our deep expertise in customer experience processes, next-generation technologies and
expertise within our industry verticals are core to our success. We combine these with our ability to discover, analyze and
innovate with new digital technologies in our centres of excellence to continuously evolve and expand our solutions and
services.

We have built an agile delivery model with global scale to support next-generation, digitally-led customer experiences.
Substantially all of our delivery locations are connected through a carrier-grade infrastructure backed by cloud technologies,
enabling globally distributed and virtualized teams. The interconnectedness of our teams and ability to seamlessly shift

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interactions between physical and digital channels enables us to tailor our delivery strategy to clients’ evolving needs. As at
December 31, 2022, we have over 73,000 team members in 56 delivery locations and global operations across 28 countries.

Our delivery locations are strategically selected based on a number of factors, including access to diverse, skilled
talent, proximity to clients and ability to deliver our services over multiple time zones and in multiple languages. We have
established a presence in key global markets, which supply us with qualified, cutting-edge technology talent and have been
recognized as an employer of choice in many of these markets. In addition, TELUS International AI Data Solutions (which was
formed with the data annotation business we acquired from Lionbridge Technologies Inc. at the end of 2020, and the 2D, 3D
and computer vision data annotation capabilities we obtained through our acquisition of Playment in 2021) utilizes the services
of crowdsourced contractors that are geographically dispersed across the globe.

The acquisition of WillowTree, described further below under the section titled “Recent Developments” and in “Item
4B—Business Overview—About WillowTree and the acquisition”, resulted in the addition of over 1,000 team members,
operations in 13 delivery locations, and expanded our number of countries with operations to 30.

Today, our clients include companies across multiple verticals, including Tech and Games, eCommerce and FinTech,
Banking, Financial Services and Insurance, Communications and Media, and Travel and Hospitality. Our relationship with
TELUS Corporation, our largest client and controlling shareholder, has been instrumental to our success. TELUS Corporation
provides significant revenue visibility, stability and growth, as well as strategic partnership for co-innovation within our
Communications and Media industry vertical. Our master services agreement with TELUS Corporation (TELUS MSA)
provides for a term of ten years beginning in January 2021 and a minimum annual spend of $200 million, subject to adjustment
in accordance with its terms. For more information, see “Item 7B—Related Party Transactions—Our Relationship with TELUS
—Master Services Agreement”.

Recent Developments

On October 27, 2022, we announced a definitive agreement to acquire WillowTree, a full-service digital product provider
focused on end user experiences, such as native mobile applications and unified web interfaces. On January 3, 2023, subsequent
to the satisfaction of the closing conditions, we completed our acquisition of WillowTree. Under the agreement, TELUS
International acquired WillowTree for total purchase consideration of approximately $1.1 billion, net of assumed debt, and
comprised of cash, $125 million of our subordinate voting shares, and provisions for written put options for the portion retained
by certain eligible management team members that will be settled subject to certain performance-based criteria.

WillowTree management team members retained approximately 15% of total WillowTree equity, and we granted
written put options to such management team members which will become exercisable in tranches over a three-year period
starting in 2026. These written put options may be settled in cash or, at our discretion, in a combination of cash and up to 70%
in subordinate voting shares, and this will be recorded as a provision, measured at fair value, in our condensed interim
consolidated financial statements in the first quarter of 2023. Concurrent with this acquisition, WillowTree management team
members provided us with purchase call options, which substantially mirror the written put options.

In connection with the WillowTree acquisition, on December 20, 2022, we amended and expanded our existing credit
facility to an aggregate $2 billion credit facility, consisting of an $800 million revolving credit facility and $1.2 billion in term
loans payable in five years (see Note 15(b)—Long-term debt—Credit facility to the audited consolidated financial statements as
at and for the year ended December 31, 2022 included in this Annual Report for additional details).

For more information about WillowTree, see “Item 4B—Business Overview—About WillowTree and the
acquisition”.

Business Acquisitions

We enhance our service offerings and delivery platform through both organic growth and strategic acquisitions that support our
strategy to design, build and deliver customized solutions for our clients. Our results are impacted by the effects of the initial
purchase accounting, as required by IFRS, which typically includes the recognition of significant intangible assets which result
in higher amortization expense in future periods. Our results are also impacted by additional interest expense when an
acquisition is financed with incremental borrowings. As a result of our acquisitions, our year-over-year financial results may
not be comparable.

In January 2020, we acquired 100% of Competence Call Center (CCC), a leading provider of higher-value-added
business services with a focus on trust and safety, including content moderation, for cash consideration of $873 million. The

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investment was made with a view to enhancing our service offerings and strategic relationships and building a strong presence
in Europe. In 2021, we rebranded the group comprised of substantially all of the assets of CCC to TELUS International
Northern Europe.

In April 2020, we acquired Managed IT Services business (MITS), a leading provider of managed IT services in
Canada, offering a mix of cloud technologies, IT sourcing and managed hosting, from TELUS Corporation, our controlling
shareholder, in exchange for share consideration with a value of $49 million. This investment was made with a view to
enhancing our managed digital services portfolio.

On December 31, 2020, we completed the acquisition of Lionbridge AI, the data annotation business of Lionbridge
Technologies, Inc. for cash consideration of $940 million.

On July 2, 2021, we completed the acquisition of Playment, a Bangalore, India-based leader in computer vision tools
and services specialized in 2D and 3D image, video and LiDAR (light detection and ranging). The acquisition builds upon our
existing domain expertise and experience in data annotation, positioning us to support technology and large enterprise clients
developing AI-powered solutions across a variety of markets. In 2021, we rebranded the Lionbridge AI business to TELUS
International AI Data Solutions (TIAI) and added the capabilities of Playment. TIAI is one of only two globally-scaled,
managed AI training data and data annotation services and platform providers in the world.

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Results of Operations

Years Ended December 31

($ in millions, except per share amounts and percentages) 2022 2021 2020
Revenue $ 2,468 $ 2,194 $ 1,582

Operating Expenses
Salaries and benefits 1,393 1,222 947
Goods and services purchased 468 432 244
Share-based compensation 25 75 29
Acquisition, integration and other 40 23 59
Depreciation 124 115 99
Amortization of intangible assets 134 142 83
2,184 2,009 1,461
Operating Income 284 185 121
Changes in business combination-related provisions — — (74)
Interest expense 41 44 46
Foreign exchange (7) (1) (2)
Income before Income Taxes 250 142 151
Income taxes 67 64 48
Net Income $ 183 $ 78 $ 103
Earnings per Share
Basic Earnings per Share $ 0.69 $ 0.30 $ 0.46
Diluted Earnings per Share $ 0.68 $ 0.29 $ 0.46
Other financial information
Net Income Margin 7.4 % 3.6 % 6.5 %
Adjusted Net Income(1) $ 332 $ 267 $ 160
(1)
Adjusted Basic Earnings per Share $ 1.25 $ 1.01 $ 0.71
Adjusted Diluted Earnings per Share(1) $ 1.23 $ 1.00 $ 0.71
Adjusted EBITDA(1) $ 607 $ 540 $ 391
Adjusted EBITDA Margin(1) 24.6 % 24.6 % 24.7 %
Cash provided by operating activities(2) $ 437 $ 311 $ 297
Free Cash Flow(1)(2) $ 333 $ 210 $ 223
Gross Profit1 $ 716 $ 634 $ 503
Gross Profit Margin(1) 29.0 % 28.9 % 31.8 %
Adjusted Gross Profit(1) $ 974 $ 891 $ 685
Adjusted Gross Profit Margin (%)(1) 39.5 % 40.6 % 43.3 %
_________________________________________________
(1) Adjusted Net Income, Gross Profit, Adjusted Gross Profit, Adjusted EBITDA, and Free Cash Flow are non-GAAP
financial measures. Adjusted Basic Earnings per Share, Adjusted Diluted Earnings per Share, Adjusted EBITDA
Margin, Gross Profit Margin and Adjusted Gross Profit Margin are non-GAAP ratios. These non-GAAP financial
measures and ratios do not have a standardized meaning under IFRS and may not be comparable with similar measures
presented by other issuers. See “—Non-GAAP Financial Measures and Non-GAAP Ratios” for a reconciliation to the
nearest comparable GAAP measure.

(2) In the fourth quarter of 2022, we changed our presentation of cash interest paid, previously included in cash flows
from operating activities, to cash flows from financing activities, as permitted by IAS 7, Statement of cash flows. This
resulted in a change in Free Cash Flow. All amounts presented for the comparative periods have been reclassified to
conform with current period presentation. See Note 1(a)—Summary of significant accounting policies—Basis of
presentation to the audited consolidated financial statements as at and for the year ended December 31, 2022 included
in this Annual Report for additional details.

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Revenue

We earn revenue pursuant to contracts with our clients that generally take the form of a master services agreement (MSA), or
other service contracts. MSAs, which are framework agreements with terms generally ranging from three to five years, with the
vast majority having a term of three years, are supplemented by statements of work (SOWs) that identify the specific services to
be provided and the related pricing for each service. There are a number of factors that impact the pricing of the services
identified in each SOW or service contract, including, but not limited to, the nature and scope of services being provided,
service levels and, under certain of our MSAs, we are able to share, to a certain extent, our higher costs of services and foreign
exchange risk arising from currency fluctuations. The substantial majority of our revenue is earned based on a time and
materials billing model.

Most of our contracts, other than with TELUS Corporation, do not commit our clients to a minimum annual spend or
to specific volumes of services. Although the contracts we enter into with our clients provide for terms that range from three to
five years, the arrangements may be terminated by our clients for convenience with limited notice and without payment of a
penalty or termination fee. Additionally, our clients may also delay, postpone, cancel or reduce the volume of certain of the
services we provide without canceling the whole contract. Many of our contracts contain provisions that would require us to
pay penalties to our clients and/or provide our clients with the right to terminate the contract if we do not meet pre-agreed
service level requirements.

From period to period, the fluctuation in our revenue is primarily a function of changes to existing SOWs, new SOWs
with existing clients, MSAs signed with new clients, and the impact of foreign exchange on non-U.S. dollar-denominated
contracts. While we provide a discussion and analysis of our results of operations below, we are unable to quantify the effects
of changes in price or volume in relation to our revenue growth. We do not track standard measures of a per-unit rate or
volume, since our measures of price and volume are extremely complex. Each of our customers is unique, with varying needs
and requirements that span our diverse services offerings, which is reflected in a customized services contract and pricing
model that does not fit into standard comparability measurements. Revenue for our services is a function of the nature of each
specific service to be provided as specified by each client, the geographical region where the service is to be performed, the
skills required and/or the outcome sought, estimated costs to perform, contract terms and other factors.

Comparison of Years Ended December 31, 2022 and 2021. Our revenue increased $274 million, or 12%, to $2,468
million for the year ended December 31, 2022, driven by growth in services provided to existing clients as well as new clients
added since the prior year. Revenue growth included an unfavorable foreign currency impact of approximately 4% due to the
lower average EUR:USD exchange rate associated with the strengthening U.S. dollar against the European euro, as compared to
the average rate in 2021. Revenue from our top 10 clients for the year ended December 31, 2022 was 65%, compared to 61% in
the year ended December 31, 2021.

Comparison of Years Ended December 31, 2021 and 2020. Our revenue increased $612 million, or 39%, to
$2,194 million for the year ended December 31, 2021 compared to the year ended December 31, 2020. Organic revenue growth
was $268 million or 17%, which was driven by growth in services provided to existing clients as well as new clients added
since the prior year end, while revenue growth from prior year acquisitions was $344 million or 22%, which was largely
attributable to our acquisitions of the businesses forming TIAI. Organic revenue growth included a favorable foreign currency
impact of approximately 2%, predominantly driven by the higher average EUR:USD exchange rate for the year ended
December 31, 2021, as compared to the average rate for the year ended December 31, 2020.

For the years ended December 31, 2022 and 2021, three clients each accounted for more than 10% of our revenues,
and for the year ended December 31, 2020, two clients each accounted for more than 10% of our revenues. TELUS
Corporation, our controlling shareholder and largest client for the year ended December 31, 2022, accounted for approximately
17.3%, 16.1% and 19.6% of our revenue for the years ended December 31, 2022, 2021 and 2020, respectively. Our second
largest client for the year ended December 31, 2022, a leading social media company, accounted for 15.0%, 17.7% and 15.6%
of our revenue for the years ended December 31, 2022, 2021 and 2020, respectively. Our third largest client, Google, accounted
for approximately 11.9%, 11.0% and 7.5% of our revenue for the years ended December 31, 2022, 2021 and 2020, respectively.

We deliver tailored solutions to a diverse set of clients active in various verticals from our delivery locations around
the world. However, these services are marketed, sold and delivered to clients in an integrated manner in order to provide a
unified, seamless sales and delivery experience. Our chief operating decision maker reviews financial information presented on
a consolidated basis for the purposes of evaluating financial performance and making resource allocation decisions.
Accordingly, we report our results and manage our business as a single operating and reporting segment.

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We earn revenue pursuant to contracts with our clients, who operate in various industry verticals. The following table
presents our earned revenue disaggregation for our five largest industry verticals:

Years Ended December 31

(in millions) 2022 2021 2020
Revenue by Industry Vertical
Tech and Games $ 1,148 $ 999 $ 617
Communications and Media 581 537 481
eCommerce and FinTech 285 259 171
Banking, Financial Services and Insurance 166 97 68
Travel and Hospitality 75 62 54
All others 213 240 191
Total $ 2,468 $ 2,194 $ 1,582

Our revenue has grown in each strategic industry vertical from 2020 to 2022. During the year ended December 31, 2022,
revenue for our Tech and Games, Communications and Media, eCommerce and FinTech, Banking, Financial Services and
Insurance and Travel and Hospitality industry verticals increased 15%, 8%, 10%, 71%, and 21%, respectively, compared to the
year ended December 31, 2021. During the year ended December 31, 2021, revenue for our Tech and Games, Communications
and Media, eCommerce and FinTech and Banking, Financial Services and Insurance industry verticals increased 62%, 12%,
51%, 43%, and 15%, respectively, as compared to the year ended December 31, 2020. The revenue growth in our Tech and
Games industry vertical during 2022 was driven by continued growth within our existing clients and the addition of new clients
through organic channels, while in 2021, the growth was driven by both organic growth and the acquisition of Lionbridge AI in
December 2020, which has clients that are largely categorized to this industry vertical. Revenue growth in the Communications
and Media industry vertical was predominantly driven by higher revenue from TELUS Corporation. Revenue growth in our
eCommerce and FinTech and Travel and Hospitality industry verticals were primarily attributable to new clients and growth
within our existing client base, while revenue growth generated from the Banking, Financial Services and Insurance industry
vertical was driven by the addition of a leading global financial institution client. Across all of our verticals during the year
ended December 31, 2022, the reported revenue growth rates were negatively impacted by unfavourable EUR:USD currency
movements compared to the year ended December 31, 2021, as discussed earlier.

We serve our clients, who are primarily domiciled in North America, from multiple delivery locations across four
geographic regions. In addition, our TIAI clients are largely supported by crowdsourced contractors that are globally dispersed
and not limited to the physical locations of our delivery centres. The table below presents the revenue generated in each
geographic region, based on the location of our delivery centres or where the services were provided from, for the periods
presented.

Years Ended December 31

(in millions) 2022 2021 2020
Revenue by Geographic Region
Europe $ 880 $ 921 $ 636
North America 621 502 346
Asia-Pacific 591 455 337
Central America 376 316 263
Total $ 2,468 $ 2,194 $ 1,582

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The number of team members by geographic region is as follows:

Years Ended December 31

Team Members by Geographic Region 2022 2021 2020
Asia-Pacific(1) 32,405 24,812 19,952
Europe(2) 19,796 19,311 15,305
Central America(3) 16,563 14,124 12,219
North America(4) 4,378 3,894 3,142
Total 73,142 62,141 50,618
_________________________________________________
(1) Comprises China, India, Japan, Philippines, Singapore, and South Korea.

(2) Comprises Austria, Bulgaria, Bosnia and Herzegovina, Czechia, Denmark, Finland, France, Germany, Ireland, Latvia,
Poland, Romania, Slovakia, Spain, Switzerland, Turkey and United Kingdom.

(3) Comprises Costa Rica, El Salvador and Guatemala.

(4) Comprises Canada and the United States.

Salaries and benefits

The principal components of salaries and benefits expense include all compensation and benefits, excluding share-based
compensation, paid to our front-line and administrative employees.

Comparison of Years Ended December 31, 2022 and 2021. Salaries and benefits increased $171 million, or 14%, to
$1,393 million for the year ended December 31, 2022, due to higher team member count to support business growth and higher
average employee salaries and wages, partially offset by the lower average exchange rates across a variety of currencies relative
to the U.S. dollar. Salaries and benefits as a percentage of revenue remained steady at 56% for both the years ended
December 31, 2022 and 2021. Total team member count was 73,142 at December 31, 2022 compared to 62,141 at
December 31, 2021.

Comparison of Years Ended December 31, 2021 and 2020. Salaries and benefits increased $275 million, or 29%, to
$1,222 million for the year ended December 31, 2021, due to higher team member count to support business growth and higher
average employee salaries and wages. Salaries and benefits as a percentage of revenue decreased to 56% in the year ended
December 31, 2021, compared to 60% in the comparative year. The decrease was primarily due to TIAI, which is largely
supported by crowdsourced contractors, the costs of which are included in goods and services purchased.

Goods and services purchased

Goods and services purchased include items such as software licensing costs that are required to support our operations,
contracted labor costs, sales and marketing expenses associated with promoting and selling our services, compliance expenses
such as legal and audit fees and business taxes, other IT expenditures, bad debt expenses and facility expenses.

Comparison of Years Ended December 31, 2022 and 2021. Goods and services purchased increased $36 million, or
8%, to $468 million for the year ended December 31, 2022 compared to the year ended December 31, 2021. The increase was
attributable to business growth, including higher crowdsourced contractor costs from the expansion in our TIAI business, as
described above, partially offset by the lower average exchange rates across a variety of currencies relative to the U.S. dollar.

Comparison of Years Ended December 31, 2021 and 2020. Goods and services purchased increased $188 million, or
77%, to $432 million for the year ended December 31, 2021 compared to the year ended December 31, 2020. This increase was
largely driven by our acquisition of TIAI and its crowdsourced contractors, which are recognized in goods and services
purchased, and higher software, recruitment and other administrative costs to support the organic growth in our business.

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Share-based compensation

Share-based compensation relates to restricted share unit awards and share option awards granted to employees. These awards
include both liability-accounted awards, which requires a mark-to-market revaluation against our share price, and equity-
accounted awards.

Comparison of Years Ended December 31, 2022 and 2021. Share-based compensation decreased $50 million to
$25 million for the year ended December 31, 2022. The decrease was primarily due to the decrease in our share price during the
year, which resulted in lower expense on our liability-accounted awards, as compared to the increase in our share price in the
comparative year ended December 31, 2021 following our IPO. The decrease was partially offset by higher expense associated
with equity-accounted awards granted in the current year.

Comparison of Years Ended December 31, 2021 and 2020. Share-based compensation increased $46 million to
$75 million for the year ended December 31, 2021. The increase was primarily due to higher share-based compensation
expense on the equity-accounted awards granted in 2021, which are expensed under the graded-vesting method, resulting in
more expense recognized in the earlier years of the vesting period, in comparison to previous awards that were measured using
the cliff-vesting method, and mark-to-market adjustments on liability-accounted awards due to the increase in our share price.

Acquisition, integration and other

Acquisition, integration and other is comprised primarily of costs related to our business acquisitions, including transaction
costs and integration activities, which could vary from year to year depending on the volume, nature and complexity of the
transactions completed in each fiscal year. We also, from time to time, incur costs associated with streamlining our operations,
including ongoing and incremental efficiency initiatives, which may include personnel-related costs and rationalization of real
estate. Other costs may also include external costs that are unusual in their nature or significance, such as incremental costs
incurred in connection with the COVID-19 pandemic, adverse litigation judgments or regulatory decisions, and other costs that
do not contribute normally to the earning of revenues.

Comparison of Years Ended December 31, 2022 and 2021. Acquisition, integration and other increased $17 million to
$40 million for the year ended December 31, 2022. The increase was primarily due to transaction costs incurred in connection
with the acquisition of WillowTree.

Comparison of Years Ended December 31, 2021 and 2020. Acquisition, integration and other decreased $36 million to
$23 million for the year ended December 31, 2021. The decrease was primarily due to lower costs for integration in the year
ended December 31, 2021 compared to transaction and integration costs incurred in the prior year which were related to the
acquisition of CCC and Lionbridge AI, partially offset by costs associated with the secondary offering of subordinate voting
shares in the third quarter of 2021.

Depreciation and amortization

Depreciation and amortization includes depreciation of property, plant and equipment and right-of-use leased assets as well as
amortization expense for software and intangible assets recognized primarily in connection with acquisitions.

Comparison of Years Ended December 31, 2022 and 2021. Depreciation and amortization expense was $258 million
for the year ended December 31, 2022, steady compared to $257 million for the year ended December 31, 2021. The higher
depreciation and amortization associated with our investments in capital and intangible assets were offset by the lower average
EUR:USD exchange rate on assets held in our subsidiaries which have a European euro functional currency.

Comparison of Years Ended December 31, 2021 and 2020. Depreciation and amortization expense increased
$75 million to $257 million for the year ended December 31, 2021. The increase was primarily due to the incremental
amortization recognized on the intangible assets acquired as part of the TIAI business.

Interest expense

Interest expense includes interest expense on short-term and long-term borrowings and on our lease liabilities.

Comparison of Years Ended December 31, 2022 and 2021. Interest expense decreased $3 million, or 7%, to
$41 million for the year ended December 31, 2022. The decrease was primarily due to lower average debt balances on our
credit facility, partially offset by higher interest rates.

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Comparison of Years Ended December 31, 2021 and 2020. Interest expense decreased $2 million, or 4%, to
$44 million for the year ended December 31, 2021. The decrease was due to debt repayments combined with a lower interest
rate triggered by our improved Net Debt to Adjusted EBITDA Leverage ratio (as defined in our credit agreement) throughout
the year.

Foreign exchange

Foreign exchange is comprised of gains and losses recognized on certain derivatives, as well as foreign exchange gains and
losses recognized on the revaluation and settlement of foreign currency transactions. See “Item 11—Quantitative and
Qualitative Disclosures about Market Risk—Foreign Currency Risk” for a discussion of our hedging programs.

Comparison of Years Ended December 31, 2022 and 2021. Foreign exchange gain of $7 million during the year ended
December 31, 2022, compared to a gain of $1 million in the comparative prior year. These reflect changes in foreign exchange
rates in the currencies in which we transact.

Comparison of Years Ended December 31, 2021 and 2020. Foreign exchange gain of $1 million during the year ended
December 31, 2021, compared to a gain of $2 million in the comparative prior year. These reflect changes in foreign exchange
rates in the currencies in which we transact.

Income tax expense

Years Ended December 31
($ in millions) 2022 2021 2020
Income tax expense $ 67 $ 64 $ 48
Income taxes computed at applicable statutory rates 22.7 % 22.6 % 24.2 %
Effective tax rate (%)(1) 26.8 % 45.1 % 31.6 %
_________________________________________________
(1) Effective tax rate is calculated by dividing income tax expense by income before income taxes.

Comparison of Years Ended December 31, 2022 and 2021. Income tax expense increased $3 million for the year ended
December 31, 2022 and the effective tax rate decreased from 45.1% to 26.8%. The decrease in the effective tax rate was
primarily due to a change in the foreign tax differential and a decrease in non-deductible items. A portion of the non-deductible
items incurred in the year ended December 31, 2021 were a result of our IPO and non-recurring.

Comparison of Years Ended December 31, 2021 and 2020. Income tax expense increased $16 million for the year
ended December 31, 2021 and the effective tax rate increased from 31.6% to 45.1%. The increase in the effective tax rate was
primarily due to an increase in withholding and other taxes and an increase in non-deductible items. A portion of the non-
deductible items were a result of our IPO in February 2021 and non-recurring. The change in income mix amongst the
jurisdictions resulted in a lower weighted average statutory income tax rate.

Net income

Comparison of Years Ended December 31, 2022 and 2021. Net income increased $105 million, or 135%, to $183 million for
the year ended December 31, 2022, compared to $78 million for the year ended December 31, 2021. The increase was primarily
due to higher revenues, lower share based compensation expense, and a foreign exchange gain in the period, partially offset by
higher operating costs to support business growth and higher income tax expense. Net income margin increased to 7.4% for the
year ended December 31, 2022, compared to 3.6% in the comparative prior year.

Comparison of Years Ended December 31, 2021 and 2020. Net income decreased $25 million, or 24%, to $78 million
for the year ended December 31, 2021. The decrease was primarily due to a prior year non-recurring gain of $74 million on the
settlement of a business combination-related provision which did not recur in 2021. Excluding the gain recognized in 2020, our
operating performance contributed to positive growth in net income, as higher revenues from organic and inorganic growth
were partially offset by higher operating costs to support business growth, increase in amortization from acquired TIAI
intangible assets, and higher share-based compensation. Net income margin decreased to 3.6% for the year ended December 31,
2021, compared to 6.5% in the comparative prior year.

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Non-GAAP Financial Measures and Non-GAAP Ratios

We regularly review the non-GAAP financial measures and non-GAAP ratios presented below to evaluate our operating
performance and analyze underlying business results and trends. We use these non-GAAP financial measures and non-GAAP
ratios to manage our business by establishing budgets and operational goals against these measures. We also use these non-
GAAP financial measures to monitor compliance with debt covenants, which are based on the same or similar financial metrics,
and manage our capital structure. We believe these non-GAAP financial measures and non-GAAP ratios provide investors with
a consistent basis on which to evaluate our operating performance with our comparative period results, and additionally provide
supplemental information to the financial measures and ratios that are calculated and presented in accordance with GAAP. A
reconciliation for each non-GAAP financial measure to the nearest GAAP measure is provided below. These non-GAAP
financial measures or non-GAAP ratios may not be comparable to GAAP measures or ratios and may not be comparable to
similarly titled non-GAAP financial measures or non-GAAP ratios reported by other companies, including those within our
industry and TELUS Corporation, our controlling shareholder. Consequently, our non-GAAP measures and ratios should not be
evaluated in isolation, but rather, should be considered together with the most directly comparable GAAP measure or ratio and
our consolidated financial statements for the periods presented. The non-GAAP financial measures and non-GAAP ratios we
present in this discussion should not be considered a substitute for, or superior to, financial measures or ratios determined or
calculated in accordance with GAAP.

Adjusted Net Income, Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share.

Adjusted Net Income is a non-GAAP financial measure, and Adjusted Basic Earnings per Share and Adjusted Diluted Earnings
per Share (EPS) are non-GAAP ratios. We regularly monitor Adjusted Net Income, Adjusted Basic EPS and Adjusted Diluted
EPS as they provide a consistent measure for management and investors to evaluate our period-over-period operating
performance, to better understand our ability to manage operating costs and to generate profits. The following items are
excluded from Adjusted Net Income as we believe they are driven by factors that are not indicative of our ongoing operating
performance, including changes in business combination-related provisions, acquisition, integration and other, share-based
compensation, foreign exchange gains or losses and amortization of purchased intangible assets, and the related tax effect of
these adjustments. Adjusted Basic EPS is calculated by dividing Adjusted Net Income by the basic total weighted average
number of equity shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by
the diluted total weighted average number of equity shares outstanding during the period. Adjusted Basic EPS and Adjusted
Diluted EPS are non-GAAP ratios used by management to assess the profitability of our business operations on a per share
basis.

Years Ended December 31

($ in millions, except per share amounts) 2022 2021 2020
Net income $ 183 $ 78 $ 103
Add back (deduct):
Changes in business combination-related provisions(1) — — (74)
Acquisition, integration and other(2) 40 23 59
Share-based compensation(3) 25 75 29
Foreign exchange gain(4) (7) (1) (2)
Amortization of purchased intangible assets(5) 121 132 75
Tax effect of the adjustments above (30) (40) (30)
Adjusted Net Income 332 $ 267 $ 160
Adjusted Basic Earnings Per Share $ 1.25 $ 1.01 $ 0.71
Adjusted Diluted Earnings Per Share $ 1.23 $ 1.00 $ 0.71
_________________________________________________
(1) Changes in business combination-related provisions relate to the revaluation of a written put option liability to acquire
the remaining non-controlling interests in a subsidiary that was settled in the second quarter of 2020. This item is
excluded as the underlying financial instrument was settled, and changes in the fair value of this financial instrument
were non-cash and did not impact the operating performance of the business.

(2) Acquisition, integration and other is comprised primarily of business acquisition transaction costs and integration
expenses associated with these acquisitions and other restructuring activities. These costs do not form part of the costs
to operate our ongoing operations, and may significantly fluctuate period-over-period depending on the size and timing
of related acquisitions, and are not indicative of such costs in the future.

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(3) Share-based compensation relates to the expense of our share-based payment transactions. These include awards that
are settled through shares issued from treasury and generally do not require any cash outlay by the Company, and
awards that are subject to mark-to-market revaluation based on changes in our share price over periods spanning
several fiscal years before eventual settlements. The mix of award types as well as the associated amounts and timing
of share-based compensation expense could vary significantly between reporting periods, and the variety of award
types could be different from our industry peers. Accordingly, excluding this expense provides management and
investors with greater visibility to the underlying performance of our business operations, facilitates a comparison of
our results with other periods, and provides a relative measure of operating results as compared to our industry peers.

(4) Foreign exchange gains or losses arise from fluctuations in foreign exchange rates of the currencies we transact in,
which are driven by macro-economic conditions that are generally not reflective of our underlying business operations.

(5) Amortization of purchased intangible assets primarily relate to the amortization of acquired customer relationships,
brand and crowdsource assets. Amortization of these intangible assets are excluded as it is a non-cash expense derived
from purchase price allocations that incorporate significant and subjective valuation assumptions and estimates that are
not comparable to the timing and investment had these assets been developed internally. We do not exclude the
revenue generated by such purchased intangible assets from our revenues and, as a result, Adjusted Net Income
includes revenue generated, in part, by such purchased intangible assets.

Comparison of Years Ended December 31, 2022 and 2021. Adjusted net income increased $65 million, or 24%, to
$332 million for the year ended December 31, 2022. The increase was primarily due to an increase in revenue from existing and
new customers, partially offset by higher salaries and benefits and goods and services to support overall growth in the business,
and higher income tax expense.

Comparison of Years Ended December 31, 2021 and 2020. Adjusted net income increased $107 million, or 67%, to
$267 million for the year ended December 31, 2021. The increase was due to increase in revenue from organic growth and our
acquisitions, partially offset by higher salaries and benefits and goods and services purchased to support overall growth in the
business.

Gross Profit, Adjusted Gross Profit, Gross Profit Margin, and Adjusted Gross Profit Margin.

Gross Profit and Adjusted Gross Profit are non-GAAP financial measures, and Gross Profit Margin and Adjusted Gross Profit
Margin are non-GAAP ratios. We regularly monitor these financial measures to assess how efficiently we are servicing our
clients and to monitor the growth in our direct costs in comparison to growth in revenue. We calculate Gross Profit by
deducting operating expenses net of indirect and administrative expenses from revenue. Indirect and administrative expenses
are comprised of indirect salaries and benefits and goods and services purchased associated with our administrative and
corporate employees, share-based compensation, and acquisition, integration and other. We calculate Adjusted Gross Profit by
excluding depreciation and amortization charges from Gross Profit, because the timing of the underlying capital expenditures
and other investing activities do not correlate directly with the revenue earned in a given reporting period. We calculate Gross
Profit Margin by taking Gross Profit divided by revenue, and we calculate Adjusted Gross Profit Margin by taking Adjusted
Gross Profit divided by revenue.

Years Ended December 31

($ in millions, except percentages) 2022 2021 2020
Revenue $ 2,468 $ 2,194 $ 1,582
Less: Operating expenses (2,184) (2,009) (1,461)
Add back: Indirect and administrative expenses 432 449 382
Gross profit $ 716 $ 634 $ 503
Add back: Depreciation and amortization 258 257 182
Adjusted Gross Profit $ 974 $ 891 $ 685
Gross Profit Margin 29.0 % 28.9 % 31.8 %
Adjusted Gross Profit Margin 39.5 % 40.6 % 43.3 %

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Comparison of Years Ended December 31, 2022 and 2021. Gross profit margin remained steady at 29.0% for the year ended
December 31, 2022, compared to 28.9% for the year ended December 31, 2021. Adjusted gross profit margin, which excluded
the effect of depreciation and amortization, decreased to 39.5% for the year ended December 31, 2022, compared to 40.6% in
the comparative prior year, due to higher costs associated with our front-line team members, as well as changes in our revenue
mix across our industry verticals and geographic regions.

Comparison of Years Ended December 31, 2021 and 2020. Gross profit margin decreased to 28.9% for the year ended
December 31, 2021, compared to 31.8% for the year ended December 31, 2020. The decrease was due to higher amortization
from the intangible assets acquired for the TIAI business and the crowdsourced labor included in our costs of revenue. Adjusted
gross profit margin, which excluded the effect of depreciation and amortization, decreased to 40.6% for the year ended
December 31, 2021, compared to 43.3% in the comparative prior year, primarily due to the costs of crowdsourced labor.

Adjusted EBITDA and Adjusted EBITDA Margin.

Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA Margin is a non-GAAP ratio. We regularly monitor
Adjusted EBITDA and Adjusted EBITDA Margin to evaluate our operating performance compared to established budgets,
operational goals and the performance of industry peers. Adjusted EBITDA is commonly used by our industry peers and
provides a measure for investors to compare and evaluate our relative operating performance. We use it to assess our ability to
service existing and new debt facilities, and to fund accretive growth opportunities and acquisition targets. In addition, certain
financial debt covenants associated with our credit facility are based on Adjusted EBITDA, which requires us to monitor this
non-GAAP financial measure in connection with our financial covenants. Certain items are adjusted for the same reasons
described above in Adjusted Net Income. Adjusted EBITDA should not be considered an alternative to net income in
measuring our financial performance, and it should not be used as a replacement measure of current and future operating cash
flows. However, we believe a financial measure that presents net income adjusted for these items would enable an investor to
better evaluate our underlying business trends, our operational performance and overall business strategy. Adjusted EBITDA
Margin is calculated by dividing Adjusted EBITDA by consolidated revenue.

Years Ended December 31

($ in millions) 2022 2021 2020
Net income $ 183 $ 78 $ 103
Add back (deduct):
Changes in business combination-related provisions(1) — — (74)
Acquisition, integration and other(2) 40 23 59
Share-based compensation(3) 25 75 29
Foreign exchange gain(4) (7) (1) (2)
Depreciation and amortization 258 257 182
Interest expense 41 44 46
Income taxes 67 64 48
Adjusted EBITDA $ 607 $ 540 $ 391
Net Income Margin (%) 7.4 % 3.6 % 6.5 %
Adjusted EBITDA Margin 24.6 % 24.6 % 24.7 %
_________________________________________________
(1) Changes in business combination-related provisions relate to the revaluation of a written put option liability to acquire
the remaining non-controlling interests in a subsidiary that was settled in the second quarter of 2020. This item is
excluded as the underlying financial instrument was settled, and changes in the fair value of this financial instrument
were non-cash and did not impact the operating performance of the business.

(2) Acquisition, integration and other is comprised primarily of business acquisition transaction costs and integration
expenses associated with these acquisitions and other restructuring activities. These costs do not form part of the costs
to operate our ongoing operations, and may significantly fluctuate period-over-period depending on the size and timing
of related acquisitions, and are not indicative of such costs in the future.

(3) Share-based compensation relates to the expense of our share-based payment transactions. These include awards that
are settled through shares issued from treasury and generally do not require any cash outlay by the Company, and

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awards that are subject to mark-to-market revaluation based on changes in our share price over periods spanning
several fiscal years before eventual settlements. The mix of award types as well as the associated amounts and timing
of share-based compensation expense could vary significantly between reporting periods, and the variety of award
types could be different from our industry peers. Accordingly, excluding this expense provides management and
investors with greater visibility to the underlying performance of our business operations, facilitates a comparison of
our results with other periods, and provides a relative measure of operating results as compared to our industry peers.

(4) Foreign exchange gains or losses arise from fluctuations in foreign exchange rates of the currencies we transact in,
which are driven by macro-economic conditions that are generally not reflective of our underlying business operations.

Comparison of Years Ended December 31, 2022 and 2021. Adjusted EBITDA increased $67 million, or 12%, to $607 million
for the year ended December 31, 2022, compared to $540 million in the comparative prior year. The increase was due to
increase in revenue, partially offset by higher salaries and benefits and goods and services purchased to support overall growth
in the business.

Comparison of Years Ended December 31, 2021 and 2020. Adjusted EBITDA increased $149 million, or 38%, to
$540 million for the year ended December 31, 2021, compared to $391 million in the comparative prior year. The increase was
due to an increase in revenue from organic growth and our acquisitions, partially offset by higher salaries and benefits and
goods and services purchased to support business growth.

Free Cash Flow.

Free Cash Flow is a non-GAAP financial measure. We calculate Free Cash Flow by deducting capital expenditures from our
cash provided by operating activities, as we believe capital expenditures are a necessary ongoing cost to maintain our existing
productive capital assets and support our organic business operations. We use Free Cash Flow to evaluate the cash flows
generated from our ongoing business operations that can be used to meet our financial obligations, service debt facilities,
reinvest in our business, and to fund, in part, potential future acquisitions.

Years Ended December 31

($ in millions) 2022 2021 2020
Cash provided by operating activities(1) $ 437 $ 311 $ 297
Less: capital expenditures (104) (101) (74)
Free Cash Flow(1) $ 333 $ 210 $ 223
_________________________________________________
(1) In the fourth quarter of 2022, we changed our presentation of cash interest paid, previously included in cash flows
from operating activities, to cash flows from financing activities, as permitted by IAS 7, Statement of cash flows. This
resulted in a change in Free Cash Flow. All amounts presented for the comparative periods have been reclassified to
conform with current period presentation. See Note 1(a)—Summary of significant accounting policies—Basis of
presentation to the audited consolidated financial statements as at and for the year ended December 31, 2022 included
in this Annual Report for additional details.

Comparison of Years Ended December 31, 2022 and 2021. During the year ended December 31, 2022, Cash provided by
operating activities increased $126 million, or 41%, to $437 million, and Free Cash Flow increased $123 million, or 59%, to
$333 million. The increase was due to higher operating profits generated from business growth, lower net outflows from
working capital and lower share-based compensation payments.

Comparison of Years Ended December 31, 2021 and 2020. During the year ended December 31, 2021, Cash provided
by operating activities increased $14 million, or 5%, to $311 million, and Free Cash Flow decreased $13 million, or 6%, to
$210 million for the year ended December 31, 2020. The increased operating profits generated from organic growth and our
recent acquisitions was partially offset by higher income tax and share-based compensation payments, and higher outflows
from working capital. Free Cash Flow was further reduced by an increase in capital expenditures to support continued business
growth.

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Summary of consolidated quarterly results and trends

The following table sets forth our unaudited quarterly statements of operations data for each of the last eight quarters ended
December 31, 2022. The information for each of these quarters has been prepared on the same basis as the audited annual
financial statements included in our 2022 Annual Report and, in the opinion of management, includes all adjustments, which
include only normal recurring adjustments, necessary for the fair statement of the results of operations for these periods. This
data should be read in conjunction with our audited consolidated financial statements and related notes thereto included in our
2022 Annual Report. These quarterly results of operations are not necessarily indicative of our future results of operations that
may be expected for any future period.

(millions except per share amounts) 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2021 Q4 2021 Q3 2021 Q2 2021 Q1
REVENUE $ 630 $ 615 $ 624 $ 599 $ 600 $ 556 $ 533 $ 505

OPERATING EXPENSES
Salaries and benefits 349 346 356 342 332 309 299 282
Goods and services purchased 124 111 118 115 125 110 103 94
Share-based compensation 5 6 7 7 9 21 19 26
Acquisition, integration and other 23 7 6 4 5 6 7 5
Depreciation 36 29 30 29 30 29 29 27
Amortization of intangible assets 32 32 34 36 36 34 36 36
569 531 551 533 537 509 493 470
OPERATING INCOME 61 84 73 66 63 47 40 35
OTHER (INCOME) EXPENSES
Interest expense 12 10 10 9 8 10 12 14
Foreign exchange loss (gain) 18 (11) (14) — (2) (1) (1) 3
INCOME BEFORE INCOME TAXES 31 85 77 57 57 38 29 18
Income taxes (3) 26 21 23 21 15 13 15
NET INCOME $ 34 $ 59 $ 56 $ 34 $ 36 $ 23 $ 16 $ 3
Basic earnings per share $ 0.13 $ 0.22 $ 0.21 $ 0.13 $ 0.14 $ 0.09 $ 0.06 $ 0.01
Diluted earnings per share $ 0.13 $ 0.22 $ 0.21 $ 0.13 $ 0.13 $ 0.09 $ 0.06 $ 0.01

The quarter-over-quarter increases in consolidated revenue reflects the growth in both our organic customer base, as well as
successful scale-up of new service programs provided to existing clients. During 2022, these increases were offset, in part, by
the lower average EUR:USD exchange rate associated with the strengthening U.S. dollar against the European euro.

The quarter-over-quarter increases in salaries and benefits expense reflects increases in our team member base as
required to service growing volumes from both our existing and new customers, the expansion of our service offerings and
increased wages over time. During 2022, these increases were offset, in part, from the strengthening U.S. dollar and the lower
average exchange rates against a variety of currencies that we operate in, as well as labor efficiencies.

The quarter-over-quarter increases in goods and services purchased reflects increases in external labor to support the
growth in our digital business, increases in our software licensing costs associated with our growing team member base and
increase in administrative expenses to support growth in the overall business and business acquisitions. During 2022, these
increases were offset, in part, from the strengthening U.S. dollar and the lower average exchange rates against a variety of
currencies that we operate in.

Share-based compensation fluctuates quarter-over-quarter, reflecting changes in the value of our equity and the impact
of mark-to-market revaluation of liability-accounted awards. As we shifted our share-based compensation grants to equity-
accounted awards starting in 2021, we expect less volatility in this expense over time as these awards are not subject to the
mark-to-market revaluation impact of liability-accounted awards.

The quarter-over-quarter changes in acquisition, integration and other costs are dependent on a number of factors and
are generally inconsistent in amount and frequency, as well as significantly impacted by the timing and size of business
acquisitions and subsequent integration efforts.

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The quarter-over-quarter increases in depreciation and amortization reflects increases due to growth in capital assets,
which is supporting the expansion of our sites required to service customer demand and growth in intangible assets recognized
in connection with business acquisitions.

The trend in net income reflects the items noted above, as well as the relative mix of income among the geographic
areas and the associated tax rates for the countries within those areas and varying amounts of foreign exchange gains or losses.
Historically, the trend in basic earnings per share has been impacted by the same trends as net income and the issuance of new
shares.

Related Party Transactions

Recurring Transactions with TELUS Corporation

In 2021, we entered into an amended and restated TELUS MSA, which provide for a ten-year master services agreement and
we also entered into a ten-year transition and shared services agreement with TELUS Corporation. Revenues earned pursuant to
the TELUS MSA are recorded as revenue and fees incurred in connection with the shared services agreement for certain shared
services provided to us are recorded as goods and services purchased.

The following table summarizes the transactions with TELUS and its subsidiaries, for each of the periods presented:

Years Ended December 31

($ in millions) 2022 2021 2020
Revenue $ 428 $ 353 $ 310
Management Fees $ (33) $ (30) $ (29)
Total $ 395 $ 323 $ 281
Amounts Received from TELUS Corporation $ 417 $ 339 $ 284
Amounts Paid to TELUS Corporation $ 33 $ 20 $ 38

Amounts receivable from TELUS Corporation were $81 million and $53 million as at December 31, 2022 and 2021,
respectively, and amounts payable to TELUS Corporation were $111 million and $71 million as at December 31, 2022 and
2021, respectively.

Other Transactions with TELUS Corporation

As at December 31, 2022 and as of the date of this Annual Report, TELUS Corporation participates as a lender of 7.17% of our
total credit facility, as disclosed in Note 15—Long-term debt to the audited consolidated financial statements as at and for the
year ended December 31, 2022 included in this Annual Report. See “Item 7B—Related Party Transactions—Our Relationship
with TELUS—Credit Agreement” for a description of our credit agreement.

On January 29, 2020, in connection with the acquisition of CCC, we issued 14.7 million Class A common shares and
0.2 million Class C common shares to TELUS Corporation for $126 million. The proceeds from these share issuances were
used to finance the acquisition.

On April 1, 2020, we issued 3.5 million Class C common shares for proceeds of $49 million to TELUS Corporation as
consideration for the acquisition of MITS from TELUS Corporation, a common control transaction. We also issued 5.4 million
Class A common shares to TELUS Corporation for proceeds of $75 million to finance the buy-out of the non-controlling
interest in Xavient Digital in April 2020.

On December 29, 2020, in connection with the acquisition of Lionbridge AI, we issued 7.6 million Class A common
shares to TELUS Corporation for $150 million. The proceeds from these share issuances were used to finance the acquisition.

Immediately prior to the Company’s IPO on February 3, 2021, all Class A, Class C, and Class D common shares held
by TELUS Corporation were exchanged for Class B common shares, and these Class B common shares were then redesignated
as multiple voting shares. Subsequent to such redesignations, we effected a 4.5-for-1 split of each of our outstanding multiple
voting shares. On a post-split basis, TELUS Corporation held 153.0 million multiple voting shares of TELUS International. On
February 3, 2021, and in connection with the Company’s IPO, TELUS Corporation converted 6.5 million of our multiple voting
shares to subordinate voting shares that were sold to new investors in the initial public offering.

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In the fourth quarter of 2022, we acquired certain call centre operations of TELUS Corporation for cash consideration
of $1 million (net of cash assumed), in exchange for $2 million of net identifiable assets and $9 million of goodwill. This
acquisition was accounted for as a common control business acquisition using the predecessor accounting method. The amount
of net assets and goodwill acquired in excess of the fair value of consideration paid was recorded to contributed surplus in the
consolidated statements of changes in owners’ equity.

Transactions with BPEA

On January 29, 2020, in connection with the acquisition of CCC, we issued 8.0 million Class B common shares to BPEA, for
$68 million. The proceeds from these share issuances were used to finance the acquisition.

On September 29, 2020, BPEA elected to exercise its option to purchase 4.8 million Class B common shares for
aggregate consideration of $67 million.

On December 29, 2020, in connection with the acquisition of Lionbridge AI, we issued 4.1 million Class B common
shares to BPEA for $80 million. The proceeds from these share issuances were used to finance the acquisition.

Immediately prior to the Company’s IPO on February 3, 2021, all Class B common shares held by BPEA were
redesignated as multiple voting shares. Subsequent to such redesignations, we effected a 4.5-for-1 split of each of our
outstanding multiple voting shares. On a post-split basis, BPEA held 82.1 million multiple voting shares of TELUS
International. In connection with the Company’s IPO, BPEA converted 15.1 million of our multiple voting shares to
subordinate voting shares that were sold to new investors in the initial public offering. On September 28, 2021, BPEA
converted 13.6 million of our multiple voting shares to subordinate voting shares that were sold to new investors in a secondary
public offering.

As at December 31, 2022, there were no amounts receivable or payable to BPEA.

B. Liquidity and Capital Resources

Capital resources

As at December 31, 2022, we had approximately $1,383 million (December 31, 2021 - $831 million) of available liquidity,
comprised of cash and cash equivalents of $125 million (December 31, 2021 - $115 million), and available borrowings under
our credit facility of $1,258 million (December 31, 2021 - $716 million) (see Note 15(b)—Long-term debt—Credit facility in
the notes to the audited consolidated financial statements as at and for the year ended December 31, 2022 included in this
Annual Report). Our objective when managing capital is to maintain a flexible capital structure that optimizes the cost and
availability of capital at acceptable risk levels.

During the second quarter of 2022, we filed a shelf registration statement with the Securities and Exchange
Commission in the United States and a base shelf prospectus with the Canadian securities regulators, pursuant to which we can
offer an indeterminate amount of certain debt or equity securities in the United States and Canada.

In the management of capital and in its definition, we include owners’ equity (excluding accumulated other
comprehensive income), long-term debt (including 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) and cash and cash
equivalents. We manage capital by monitoring the financial covenants prescribed in our credit facility. For additional
information, see Note 15(b)—Long-term debt—Credit facility in the notes to the audited consolidated financial statements as at
and for the year ended December 31, 2022 included in this Annual Report.

We manage our 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 capital structure, we may issue new shares, issue new debt
with different terms or characteristics which may be used to replace existing debt, or pay down our debt balance with cash
flows from operations. We believe that our financial objectives are supportive of our long-term strategy.

We monitor capital utilizing the financial covenants prescribed in our credit facility agreements. As at December 31,
2022, we were in compliance with all of our covenants including maintaining a net debt to EBITDA leverage ratio as calculated
in accordance with the credit facility of less than 4.25:1.00.

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The following table presents a summary of our cash flows and ending cash balances for the years ended December 31,
December 31, 2022, 2021 and 2020:

Years Ended December 31

2022 2021 2020
($ in millions)
Cash provided by operating activities(1) $ 437 $ 311 $ 297
Cash used in investing activities (119) (110) (1,872)
Cash (used in) provided by financing activities (300) (235) 1,657
Effect of exchange rate changes (8) (4) (9)
Increase (decrease) in cash position during the year $ 10 $ (38) $ 73
Cash and cash equivalents, beginning of year $ 115 $ 153 $ 80
Cash and cash equivalents, end of year $ 125 $ 115 $ 153
_________________________________________________
(1) In the fourth quarter of 2022, we changed our presentation of cash interest paid, previously included in cash flows
from operating activities, to cash flows from financing activities, as permitted by IAS 7, Statement of cash flows. All
amounts presented for the comparative periods have been reclassified to conform with current period presentation. See
Note 1(a)—Summary of significant accounting policies—Basis of presentation to the audited consolidated financial
statements as at and for the year ended December 31, 2022 included in this Annual Report for additional details.

Operating activities

Comparison of Years Ended December 31, 2022 and 2021. We generated cash from operating activities of $437 million during
the year ended December 31, 2022, an increase of $126 million from the comparative period. This increase was primarily
attributable to an increase in net income adjusted for non-cash items due to growth in our business, as well as lower share-based
compensation payments.

Comparison of Years Ended December 31, 2021 and 2020. We generated cash from operating activities of
$311 million during the year ended December 31, 2021, an increase of $14 million from the comparative period. The increase
was primarily attributable to an increase in net income adjusted for non-cash items due to growth in our organic business, as
well as the positive cash flows generated from our recent acquisitions, which was offset in part by higher income tax and share-
based compensation payments, and an increase in net working capital.

Investing activities

Comparison of Years Ended December 31, 2022 and 2021. We used cash from investing activities of $119 million during the
year ended December 31, 2022, an increase of $9 million from the comparative period, to purchase capital and other assets to
support the growth in our business.

Comparison of Years Ended December 31, 2021 and 2020. We used cash from investing activities of $110 million
during the year ended December 31, 2021, a decrease of $1,762 million from the comparative period, primarily due to $1,742
million used in connection with our acquisitions of CCC and Lionbridge AI, net of cash acquired.

Financing activities

Comparison of Years Ended December 31, 2022 and 2021. We used cash from financing activities of $300 million during the
year ended December 31, 2022, compared to $235 million during the year ended December 31, 2021, a net increase of $65
million, primarily for repayments of our long-term debt.

Comparison of Years Ended December 31, 2021 and 2020. For the year ended December 31, 2021, we generated cash
from financing activities of $235 million compared to using $1,657 million in the comparative period. The decrease in cash
generated from financing activities was primarily due to the issuance of shares and incremental debt in 2020 to finance the
acquisition of CCC and Lionbridge AI, whereas in 2021, we used the net proceeds from our IPO and available cash to repay our
long-term debt under our credit facility.

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Future Capital Requirements

We believe that our existing cash and cash equivalents combined with our expected cash flow from operations and liquidity
available under our credit facilities will be sufficient to meet our projected operating and capital expenditure requirements for at
least the next 12 months and we possess the financial flexibility to execute our strategic objectives, including the ability to make
acquisitions and strategic investments in the foreseeable future. Our ability to generate cash, however, is subject to our
performance, general economic conditions, industry trends and other factors. To the extent that existing cash and cash
equivalents and operating cash flow are insufficient to fund our future activities and requirements, we may need to raise
additional funds through equity or debt financing. If we raise funds through the issuance of additional debt, we may be subject
to additional contractual restrictions on our business. There is no assurance that we would be able to raise additional funds on
favorable terms or at all. See “Item 3D—Risk Factors—Risks Related to Our Business”. We may need to raise additional funds
to pursue our growth strategy or continue our operations, and we may be unable to raise capital when needed or on acceptable
terms, which could lead us to be unable to expand our business.

Net Debt and Adjusted EBITDA, both as per our credit agreement, are used to calculate our leverage ratio debt
covenant (Net Debt to Adjusted EBITDA Leverage Ratio), as presented below. We seek to maintain a Net Debt to Adjusted
EBITDA Leverage Ratio in the range of 2-3x. As at December 31, 2022, our Net Debt to Adjusted EBITDA Leverage Ratio
was 1.1x. We may deviate from our target Net Debt to Adjusted EBITDA Leverage Ratio to pursue acquisitions and other
strategic opportunities that may require us to borrow additional funds and, additionally, our ability to maintain this targeted
ratio depends on our ability to continue to grow our business, general economic conditions, industry trends and other factors.

The following table presents a calculation of our Net Debt to Adjusted EBITDA Leverage Ratio as at December 31,
2022 and 2021:

Years Ended
December 31
($ in millions) 2022 2021
Outstanding credit facility 742 941
Contingent facility utilization 7 7
Net derivative 1 19
Cash balance(1) (125) (100)
Net Debt as per credit agreement $ 625 $ 867
Adjusted EBITDA(2) (trailing 12 months) $ 607 $ 540
Adjustments required as per credit agreement (63) (118)
Net Debt to Adjusted EBITDA Leverage Ratio as per credit agreement(3) 1.1 2.1
_________________________________________________
(1) Maximum cash balance permitted as a reduction to net debt, as per the credit agreement, was $150 million as at
December 31, 2022 (December 31, 2021 - $100 million); actual cash balance as of December 31, 2022 and
December 31, 2021 was $125 million and $115 million, respectively.

(2) Adjusted EBITDA is a non-GAAP financial measure, see section “—Non-GAAP Financial Measures and Non-GAAP
Ratios” for more information.

(3) As required by our lenders to reflect the effect to our acquisition of WillowTree on January 3, 2023, including the
additional borrowings under our credit facility to fund, in part, the acquisition, our reported Net Debt to Adjusted
EBITDA Leverage Ratio as per the credit agreement was 2.9x.

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Capital Expenditures

Years Ended December 31

($ in millions) 2022 2021 2020
Capital expenditures $ 104 $ 101 $ 74

Comparison of Years Ended December 31, 2022 and 2021. Capital expenditures increased $3 million, or 3%, to $104 million
for the year ended December 31, 2022, compared to the year ended December 31, 2021. The increase was primarily attributable
to additional investment in our Asia Pacific region as well as our AI Data Solutions business.

Comparison of Years Ended December 31, 2021 and 2020. Capital expenditures increased $27 million, or 36%, to
$101 million for the year ended December 31, 2020. The increase was primarily attributable to additional investment in our
Asia Pacific, Central America and Europe regions to service growth in business volumes.

Contractual Obligations

Our principal sources of liquidity are cash generated from operations, our available credit facility, and to a lesser extent, our
cash and cash equivalents. For the year ended December 31, 2022, our cash provided by operating activities was $437 million
and as at December 31, 2022, we had $1,258 million of available borrowing under our credit facility and cash and cash
equivalents of $125 million.

Our primary uses of liquidity are cash used in our normal business operations such as employee compensation
expense, goods and services purchases, and working capital requirements. In addition, we are required to meet the payment
obligations under our credit facility and lease agreements. We expect that our cash flow from operations and our available cash
and cash equivalents (including the revolving component of our credit facility) will be sufficient to meet our ongoing cash flow
needs and operating requirements. The expected maturities of our undiscounted financial liabilities, excluding long-term-debt,
do not differ significantly from the contractual maturities, other than as noted below. The contractual maturities of our
undiscounted financial liabilities, as at December 31, 2022 including interest thereon (where applicable), are as set out in the
following table:
Non-derivative Derivative
Currency swap
agreement amounts
Composite long-term debt to be exchanged
Non-
interest Long-term
bearing Due to debt,
financial affiliated excluding
Year (millions) liabilities companies leases Leases (Receive) Pay Total
2023 $ 321 $ 111 $ 73 $ 68 $ (145) $ 126 $ 554
2024 40 — 78 58 (39) 23 160
2025 7 — 76 47 (321) 314 123
2026 7 — 74 40 — — 121
2027 6 — 72 24 — — 102
Thereafter 18 — 599 47 — — 664
Total $ 399 $ 111 $ 972 $ 284 $ (505) $ 463 $ 1,724

Off-Balance Sheet Arrangements

We do not have any material obligations under guarantee contracts or other contractual arrangements other than as disclosed in
Note 17—Contingent liabilities in the notes to the audited consolidated financial statements for the year ended December 31,
2022 included in this Annual Report. We have not entered into any transactions with unconsolidated entities where we have
financial guarantees, subordinated retained interests, derivative instruments, or other contingent arrangements that expose us to
material continuing risks, contingent liabilities, or any other obligation under a variable interest in an unconsolidated entity that
provides financing, liquidity, market risk, or credit risk support to us, or engages in leasing, hedging, or research and
development services with us.

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C. Research and Development, Patents and Licenses, etc.

See “Item 4B—Business Overview” and “Item 5A—Operating Results”.

D. Trend Information

Factors Affecting Our Performance and Related Trends

We believe that the key factors affecting our performance and financial performance include:

Our Ability to Expand and Retain Existing Client Relationships and Attract New Clients

We have a diverse base of clients, including leaders and disruptors across the industry verticals we serve. Through our
commitment to customer experience and innovation, we have been able to sustain long-term partnerships with many clients,
often expanding our relationship through multiple service offerings that we provide through a number of delivery locations.

To grow our revenue, we seek to continue to increase the number and scope of service offerings we provide to our
existing clients. In addition, our continued revenue growth will depend on our ability to win new clients. We seek to partner
with prospective clients that value premium digital IT and customer experience solutions and services.

Our ability to maintain and expand relationships with our clients, as well as to attract new clients, will depend on a
number of factors, including our ability to maintain: a “customers-first” culture across our organization; our level of innovation,
expertise and retention of team member talent; a consistently high level of service experience, as evidenced by, among others
measures, the satisfaction ratings that our clients receive from their customers based on the services we provide; the
technological advantages we offer; and our positive reputation, as a result of our corporate social responsibility initiatives and
otherwise.

Our Ability to Attract and Retain Talent

As at December 31, 2022, we had over 73,000 team members located across 28 countries in four geographic regions, servicing
clients in over 50 languages. In addition, our TELUS International AI Data Solutions (TIAI) business utilizes the services of a
crowd-sourced provider base that is geographically dispersed across the globe.

Ensuring that our team members feel valued and engaged is integral to our performance, as our team members enable
us to provide our unique, “customer-first” and caring culture to our clients’ customers, which has driven our strong client
retention, higher satisfaction scores and overall better experience for our clients’ customers. This has, in part, been responsible
for our growth and differentiation in the marketplace, enabling us to enhance our existing client relationships and build new
ones. As a result, we make significant investments to attract, select, retain and develop talent across our product and service
offerings. We have devoted, and will continue to devote, substantial resources to creating engaging, inspiring, world-class
physical workplaces; recruiting; cultivating talent selection proficiencies and proprietary methods of performance measurement;
growing employee engagement including rewards and development; supporting our corporate sustainability initiatives; and
acquiring new talent and capabilities to meet our clients’ evolving needs. Our ability to attract and retain team member talent
will depend on a number of factors, including our ability to: compete for talent with competitive service providers in the
geographies in which we operate; provide innovative compensation packages and benefits to our team members; retain and
integrate talent from our acquisitions; and meet or exceed evolving expectations related to corporate sustainability.

Impact of Inflation, Higher Interest Rates, and Slower Economic Growth

The global economy has entered into a period of inflation, higher interest rates and slower economic growth and some regions
may experience a recessionary period and we cannot predict how long such conditions may last or what their ultimate impact
may be on our business. Global economic conditions may adversely affect our liquidity and financial condition, and the
liquidity and financial condition of our clients, increase the cost of borrowing and cause credit to become more limited and less
available, limit our ability to access financing or increase our cost of financing to meet liquidity needs, and affect the ability of
our clients to use credit to purchase our services or to make timely payments to us, all of which could have a material adverse
effect on our business, financial condition, financial performance and cash flows. Changes in the general level of economic
activity, such as decreases in business and consumer spending, could result in pricing pressure on our services and a decrease or
delay in demand for the products and services that our clients provide to their customers, and consequently reduce or delay our
clients’ or potential clients’ demand for our services, which would reduce our revenue. In some cases, it may mean that our
clients enter into insolvency proceedings or default on their obligations to us.

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Inflationary pressures could also drive up wage costs in the countries where we operate. In connection with potential
future growth and inflation, we may need to increase our team member compensation more rapidly than in the past to remain
competitive in attracting and retaining the quality and number of team members that our business requires. To the extent that we
are not able to control or share wage increases with our clients, wage increases may reduce our margins and cash flows.

Impact of COVID-19

The COVID-19 pandemic, which began in the first quarter of 2020, continues to evolve and have a global impact, including in
each of the countries where our delivery locations are located. Since that time, it has disrupted our business operations and
created financial uncertainty. Our persistent focus to date has been on keeping all of our team members safe and healthy, while
continuing to serve our clients and support our communities. As of the date of this report, many of our team members continue
to work remotely, as they have since the onset of the pandemic, and in some cases we have thoughtfully and strategically
returned team members to site. We currently expect that a majority of team members will return to traditional work
environments in offices and delivery locations over time when it has been deemed safe to do so by local governments and
healthcare officials, although the extent and timing of such return is expected to vary by geography and practices within each
office and delivery location.

The impact of the COVID-19 pandemic on our business, operating results, cash flows and financial condition was
most significant in the second quarter of 2020 as a result of the temporary site closures enforced across our delivery sites. As
our service delivery centres are located in multiple geographic regions, the varying degrees of severity and recovery efforts
from the pandemic in the countries we operate has required us to evolve and adapt our business operations. Over the past two
years, we were able to largely mitigate the negative impact on our financial condition, financial performance and operating cash
flows by taking steps to strategically grow our client base and contain costs. While we expect the pandemic to continue to affect
our operations and our clients into 2023 and possibly thereafter, these impacts reflect our new operating environment.

Industry Trends

The industry trends affecting us and that may have an impact on our future performance and financial performance include the
trends described in “Item 4B—Business Overview—Industry Background”.

Seasonality

Our financial results may vary from period to period during any year. The seasonality in our business, and consequently, our
financial performance, generally mirrors that of our clients. Our revenues, excluding material changes to our clients operating
environment, such as potential impacts of a recession and our clients response to those impacts, or material changes in the
foreign currency rates that we operate in, are typically higher in the third and fourth quarters than in other quarters.

Foreign Currency Fluctuations

While our primary operating currency is the U.S. dollar, we are also party to revenue contracts denominated in the European
euro and other currencies and a significant portion of our operating expenses are incurred in currencies other than the U.S.
dollar. Movements in the exchange rates between the U.S. dollar and these other currencies have an impact on our financial
results. The tables below outline revenue and expenses by currency and the percentage of each of the total revenue and
expenses for each period.

Years Ended December 31

2022 2021 2020
($ in millions)
(millions except percentages) Revenue % of total Revenue % of total Revenue % of total
U.S. dollar $ 1,608 65 % $ 1,318 60 % $ 542 34 %
European euro 695 28 % 735 34 % 630 40 %
Canadian dollar 119 5% 111 5% 398 25 %
Other 46 2% 30 1% 12 1%
Total $ 2,468 100 % $ 2,194 100 % $ 1,582 100 %

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Years Ended December 31

2022 2021 2020
($ in millions)
(millions except percentages) Expenses % of total Expenses % of total Expenses % of total
U.S. dollar $ 809 37 % $ 758 38 % $ 573 39 %
European euro 413 19 % 428 21 % 332 23 %
Philippine peso 266 12 % 228 11 % 187 13 %
Canadian dollar 221 10 % 213 11 % 130 9%
Other(1) 475 22 % 382 19 % 239 16 %
Total $ 2,184 100 % $ 2,009 100 % $ 1,461 100 %
_____________________________________________________________
(1) This includes other currencies such as the Guatemalan quetzal, Bulgarian lev, Romanian leu, Indian rupee and Turkish
lira.

The following table presents information on the average exchange rates between the U.S. dollars and the key currencies to
which we have exposure over the last three years:

Years Ended December 31

Foreign Exchange Rates 2022 2021 2020
European euro to U.S. dollar 1.0515 1.1826 1.1405
Philippine peso to U.S. dollar 0.0184 0.0203 0.0202
Canadian dollar to U.S. dollar 0.7683 0.7978 0.7454

E. Critical Accounting Estimates

Not applicable.

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ITEM 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

The following table sets forth certain information regarding our directors and executive officers as at the date of this Annual
Report. Non-management directors are subject to term limits of 15 years. The business address for our directors and executive
officers is Floor 7, 510 West Georgia Street, Vancouver, British Columbia, V6B 0M3.

Province/State and
Name Country of Residence Age Position
Jeffrey Puritt Nevada, United States 59 President, Chief Executive Officer and Director
Michel Belec British Columbia, Canada 60 Chief Legal Officer and Corporate Secretary
Beth Howen Texas, United States 57 Chief Transformation Officer
Vanessa Kanu Ontario, Canada 45 Chief Financial Officer
Maria Pardee Colorado, United States 60 Chief Commercial Officer
Michael Ringman Colorado, United States 51 Chief Information Officer
Marilyn Tyfting British Columbia, Canada 52 Chief Corporate Officer
Darren Entwistle British Columbia, Canada 60 Chair and Director
Josh Blair British Columbia, Canada 49 Vice-Chair and Director
Olin Anton British Columbia, Canada 69 Director
Navin Arora Calgary, Alberta 51 Director
Doug French Ontario, Canada 57 Director
Tony Geheran British Columbia, Canada 60 Director
Sue Paish British Columbia, Canada 64 Director
Carolyn Slaski Florida, United States 60 Director
Sandra Stuart British Columbia, Canada 59 Director

Mr. Kenneth Cheong, who was one of our directors as of December 31, 2022, resigned as director of the Company effective February 9, 2023.

Our Executive Officers

Jeffrey Puritt has served as our President and Chief Executive Officer since 2016, when he also became a member of our
board of directors and was appointed to serve as an Executive Vice-President of TELUS Communications Inc. Mr. Puritt joined
TELUS in 2001, in progressively senior leadership positions across Finance and Administration, IP Applications Business
Development, New Product and Service Development, Ventures and Mergers and Acquisitions. Mr. Puritt has led TELUS
International since 2008. Mr. Puritt serves on the board of directors for AGS Health, a private, analytics driven, technology-
enabled revenue cycle management company that provides medical billing, medical coding and business analytics services to
healthcare providers in the United States. He also served as the honorary chair for a not-for-profit organization that has
pioneered the integration of youth with disabilities into the mainstream of society, from 2011 to 2016. Mr. Puritt holds a
Bachelor of Arts degree from York University and a Bachelor of Laws degree from Osgoode Hall Law School.

Michel Belec has served as our Chief Legal Officer and Corporate Secretary since 2017. He also supports our
Governance Office and is principally responsible for our privacy functions worldwide. Prior to joining us, he served as Senior
Vice President, Legal Services of TELUS and prior to 1996 worked with Rogers Communications, Inc. Mr. Belec began his
career as an associate at Fasken Martineau. He holds a Bachelor’s degree from Simon Fraser University and a Bachelor of Laws
degree from Osgoode Hall Law School. Mr. Belec has completed various executive training programs and hosted numerous
induction and learning programs both in and outside of TELUS International.

Beth Howen has served as the Chief Transformation Officer since August 2022. Prior to joining TELUS International,
Ms. Howen spent six years in various senior leadership roles at Atos. Most recently, she held the role of Global Head of Digital
Transformation, and was a key member of the General Management Committee that develops and executes the company’s
strategy to ensure value is delivered to clients, shareholders, partners and employees. She is a graduate of Purdue University’s
computer technology program.

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Vanessa Kanu has served as our Chief Financial Officer since 2020. Prior to joining TELUS International, Ms. Kanu
spent 16 years at Mitel Networks Corporation in increasingly senior leadership roles, including as Chief Financial Officer from
2019 to 2020. Prior to that she was at PricewaterhouseCoopers. Ms. Kanu currently serves on the Board of Directors of
Manulife, where she is a member of their audit committee. She also serves on the Board of Directors of Thorn, as the chair of
their finance and audit committee, a not for profit organization with a mission to eliminate child sexual abuse materials from the
internet. She holds a Bachelor of Science degree in International and Financial Economics from the University of Hull,
England. Ms. Kanu is a Chartered Professional Accountant in Canada, a Certified Public Accountant in the United States
(Illinois) and is a member of the Institute of Chartered Accountants of England and Wales.

Maria Pardee has served as our Chief Commercial Officer since 2021. Prior to joining TELUS International, Ms.
Pardee spent eight years at DXC Technology as Senior Vice-President and General Manager leading the Digital Workplace and
Mobility business with a focus on the transformation of employee and customer experience through innovation. Additionally,
Ms. Pardee was a partner at KPMG, a CIO at BT (British Telecom) and a Vice-President at AMS/CGI. She holds a Master of
Science degree in Telecommunications and a Bachelor of Arts degree in International Affairs, both from the University of
Colorado Boulder.

Michael Ringman has served as our Chief Information Officer since 2012. Prior to joining us, he served as Vice
President of Global Infrastructure of TeleTech Holdings Inc. from 2004 to 2012 and as its Director Converged Communications
from 2002 to 2004. Prior to his time at TeleTech Holdings Inc., he was a Network Consultant at IBM Global Services from
1996 to 2000. Mr. Ringman holds a Bachelor’s degree in Science and a Masters of Sciences in Telecommunications degree
from the University of Colorado Boulder.

Marilyn Tyfting has served as our Chief Corporate Officer since 2015 and, from 2007 to 2015, she was the Vice
President of Human Resources for TELUS and TELUS International. She served as Vice President, Human Resources of
Rogers Communications, Inc. from 2003 to 2007, and held a variety of human resources leadership roles within Rogers from
1997 to 2003. She is currently a member of the Presidents Group for accessible employment and Vice President of the
Penticton Secondary School Scholarship and Bursary Foundation. Ms. Tyfting holds a Bachelor of Commerce and Masters of
Science in Business Administration degrees from the University of British Columbia.

Our Directors

Darren Entwistle was elected to the Board of Directors on May 20, 2022 and serves as Chair of the Board. Mr. Entwistle
joined our parent company, TELUS, in 2000 as President and CEO and advanced TELUS’ global leadership through the
establishment of TELUS International in 2005. He holds a Bachelor of Economics (Honours) from Concordia University, an
MBA (Finance) from McGill University and a Diploma in Network Engineering from the University of Toronto. Mr. Entwistle
has also received Honorary Doctorates of Law from McGill University, Concordia University, the University of Alberta and the
University of Victoria. He is an Honorary Fellow of the Royal Conservatory and is a Member of the Order of Canada.

Josh Blair was elected to the board of directors on June 1, 2016 and serves as Vice-Chair of the Board and Chair of
the Human Resources Committee. Mr. Blair is a Co-Founder and the CEO of Impro.AI. He also serves as the Nominating,
Governance and Compensation Chair for Neighbourly Pharmacies (TSX: NBLY). Additionally, Mr. Blair is a Partner at
Esplanade Ventures. From 1995 through 2019, Mr. Blair served in increasingly senior leadership roles at TELUS Corporation,
including as Group President from 2014 to 2019, overseeing TELUS International, TELUS Health, TELUS Business, TELUS
Agriculture and TELUS Ventures. Mr. Blair holds a Bachelor Degree in Electrical Engineering from the University of Victoria
and also completed the Executive Program at the Smith School of Business at Queen’s University. In 2021, the University of
Victoria awarded Mr. Blair an honorary doctorate degree in recognition of his career achievements as well as his community
contributions.

Olin Anton joined the board of directors on January 19, 2021 and serves as Chair of the Audit Committee. Mr. Anton
spent his career in professional practice as a Chartered Accountant and laterally as a Chartered Professional Accountant, CA.
He was previously a partner at Deloitte LLP from 2002 to 2016, where he served as head of the British Columbia audit practice
starting in 2013, managing partner of the Vancouver office from 2012 to 2013 and head of the Vancouver audit function from
2004 to 2012. Mr. Anton retired from Deloitte LLP in 2016. Mr. Anton began his career at Arthur Andersen LLP, where he
joined in 1976, became a partner in 1988 and served as head of its audit practice until 2002, when he joined Deloitte LLP.
Mr. Anton holds Bachelor of Science and Bachelor of Commerce degrees from the University of Saskatchewan. He is a Fellow
Chartered Professional Accountant and a U.S. Certified Public Accountant.

Navin Arora joined the board of directors on January 5, 2023 and is a member of the Governance and Nominating
Committee. He joined our parent company, TELUS, in 1999 and currently holds the position of Executive Vice-President,
TELUS, and President, TELUS Business Solutions, leading TELUS’ national business-to-business portfolio for all Public
Sector, Enterprise, Large, and Small & Medium Business, as well as TELUS Partner Solutions, GoCo and several B2B
acquisitions. Since joining TELUS in 1999, Mr. Arora has held senior leadership roles with increasing responsibility across

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various parts of the organization, including Business Solutions, Partner Solutions, Consumer, and Technology and Operations,
during which he focused on business growth, service innovation, market differentiation and customer experience strategies and
execution. He currently serves as Vice Chair of TELUS’ Calgary Community board, and as a member of the board of Calgary
Economic Development, the Canadian Chamber of Commerce Western Executive Council, and the Sandbox Project. He is also
a member of the Business Council of Alberta. Mr. Arora holds a Bachelor of Science degree from the University of Alberta and
a Masters Certificate in Project Management from George Washington University.

Doug French was elected to the board of directors on September 23, 2020 and served as a member of the Audit
Committee in 2021. Since 1996, Mr. French has held increasingly senior roles at TELUS, culminating in his appointment as
Executive Vice-president and Chief Financial Officer in May 2016. Mr. French began his career as a Chartered Professional
Accountant at Ernst and Young, before joining Clearnet, a predecessor company to TELUS. He holds a Bachelor of Arts
(Honours), Commerce and Economics from the University of Toronto. Mr. French was appointed Fellow of the Chartered
Professional Accountants of Ontario in 2017, and is a member of the Prince’s Accounting for Sustainability Project.

Tony Geheran was elected to the board of directors on May 13, 2020 and serves as the Chair of the Governance and
Nominating Committee. He is currently Executive Vice-president and Chief Operations Officer of TELUS, a position he has
held since 2021. He previously held increasingly senior leadership roles at TELUS beginning in 2001, including Senior Vice
President from 2013 to 2015, Executive Vice-president and President of Broadband Networks at TELUS from 2015 to 2018,
and Executive Vice-president and Chief Customer Officer from 2018 to 2021. Prior to joining TELUS, Mr. Geheran worked at
Cable and Wireless Ireland and Cable and Wireless Communications. He holds a Diploma in Professional Marketing from the
Cranfield School of Management, a Certificate in Business Administration from The Open University and received his
Professional Qualifications in Mechanical and Electrical Engineering while serving in the Royal Navy.

Sue Paish was elected to the board of directors on May 2, 2021 and is a member of both the Governance and
Nominating and the Human Resources Committees. Ms. Paish is a Corporate Director and is currently Chief Executive Officer
of Digital Technology Supercluster, a position she has held since 2018. She is Chair of the Board of the CORIX Group of
Companies and serves on the Boards of Canexia Health and Own the Podium. She is the past Chair of the Board of the
Business Council of British Columbia and the Vancouver Board of Trade. Ms. Paish served as Corporate Director and then as
President and CEO of LifeLabs Medical Laboratory Services from 2008 to 2017 and also as Corporate Director and CEO of
Pharmasave Drugs (National) Ltd. from 2004 until 2012. She has previously also served as Managing Partner of the law firm,
Fasken, from 2000 - 2006 and practiced law at the firm from 1983 to 2006. She holds a Bachelor of Commerce and a Bachelor
of Laws from The University of British Columbia.

Sandra Stuart was elected to the board of directors on September 25, 2021 and is a member of the Audit Committee.
She currently also serves as a Corporate Director at HSBC Germany, Canfor Corporation and as a Trustee and Chair of the
Audit Committee for DRI Healthcare Trust. Ms. Stuart previously served in increasingly senior leadership roles at HSBC
Canada beginning in 2010, including as Chief Executive Officer from 2015-2020 and as Chief Operating Officer from 2010 to
2015. Ms. Stuart holds a Bachelor of Business and Economics degree from Simon Fraser University and has completed
numerous executive management courses through Harvard Business School and IMD International Business School.

Carolyn Slaski was elected to the board of directors on July 2, 2021 and is a member of both the Audit and Human
Resources Committees. Prior to her retirement from EY LLP, Carolyn served as the Americas and US Vice-Chair of Talent
from 2015 to 2021. Previously, Ms. Slaski was a Senior Audit Partner from 1984-2021 and, during that time, also served as the
East Region Assurance Managing Partner from 2013 to 2015, New Jersey Office Managing Partner and Market Segment
Leader from 2010-2013 and European Client Service Partner and Capital Markets Leader from 2002 to 2005. Ms Slaski holds a
Bachelor of Arts in Economics (Honors) from Rutgers University, a Certified Public Accountant certification and has
completed EY’s Strategic Leadership Program by Harvard University.

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B. Compensation

Overview

The following discussion of our executive compensation program includes information relating to our philosophy and approach
to executive compensation, the methodologies and market research we use in determining compensation and the actual
compensation earned by our named executive officers (NEOs) for their 2022 performance.

For 2022, our NEOs are:

• Jeff Puritt, President and Chief Executive Officer (CEO);

• Vanessa Kanu, Chief Financial Officer (CFO);

• Maria Pardee, Chief Commercial Officer (CCO);

• Marilyn Tyfting, Senior Vice President and Chief Corporate Officer (CCO-CHRO); and

• Michael Ringman, Chief Information Officer (CIO).

Compensation Discussion and Analysis

Key Compensation Principles

We pay for performance. We establish a clear and direct link between compensation and the achievement of business objectives
—in both the short-term and long-term—by providing an appropriate mix of fixed versus at-risk compensation and immediate
versus future income linked to the share price performance of the Company. We also continue to drive high levels of
performance by setting ambitious targets.

The human resources committee of the Company’s board of directors takes an approach to compensation that is both
market-based and performance-based. The primary focus of the human resources committee is to maintain an executive
compensation program that supports the achievement of three objectives:

• to advance our business strategy;

• to enhance our growth and profitability; and

• to attract and retain the key talent necessary to achieve our business objectives.

1. We pay for performance

An NEO’s compensation is based on the NEO’s personal performance, together with corporate performance and position within
a range determined with reference to market compensation data. Linking executive pay to actual performance ensures that
executive compensation is aligned with the creation of shareholder value.

2. We promote sound risk-taking

Our executive compensation program incorporates elements that are intended to ensure our compensation practices do not
encourage excessive or inappropriate risk-taking. Below are some of the governance practices, policies and inherent design
elements of our executive compensation program that help manage and mitigate risk in executive compensation.

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WHAT WE DO
• Compensation consultant—We use an external • Balance between short-term and long-term
executive compensation consultant to assess our incentives—Reasonable balance between
executive compensation program to ensure compensation elements that focus on short-term
alignment with shareholder and corporate financial performance and longer-term Company
objectives, best practices and governance principles share price appreciation

• Pay for performance—Our performance metrics • Overlapping performance periods—Within our

are well communicated and regularly monitored long-term incentive (LTI) program, the overlap in
through the corporate scorecard, see “—TELUS performance periods ensures that executives remain
International Performance Bonus Program— exposed to the risks of their decision-making and
Methodology—Step 1”, and include short- and risk-taking through their unvested equity awards
long-term performance measures to align and the shares that they are required to own. See
performance with business objectives. Additionally, “—Company Equity-Based Compensation Plans at
70% to 80% of the TELUS International a Glance” for a summary of the 2021 LTIP and
Performance Bonus Program payments are based MIP
on corporate performance

• Robust share ownership requirements—In place • Caps on payouts—Equity incentive awards are
for our executives with respect to Company shares generally capped at 200% to avoid excessive
granted under the Omnibus Long-Term Incentive payouts and are in line with market practices
Plan (7x base salary for the CEO and 3x base salary
for the other NEOs), and for our non-employee
directors (at 5x the annual cash retainer portion of
each director’s annual compensation within five
years of their initial election), and the additional
holding periods applicable to certain awards
granted to our CEO, as described in “— Summary
of NEO Employment and Separation Agreements”

WHAT WE DO NOT DO
• Maintain or reduce performance target levels for • Guarantee annual base salary increases or bonus
incentive plans. Instead, steadily increasing payments
performance levels must be achieved to realize
payouts year after year

• Allow any director, executive or employee to • Offer excessive perquisites

monetize or hedge our shares or equity-based
compensation to undermine the risk alignment in
our equity ownership requirements

• Over-emphasize any single performance metric • Guarantee a minimum level of vesting for our long-
term incentives

3. We balance the short-term and long-term

Our program features a well-balanced mix of fixed and variable pay elements, with the layering of payout timing, annual
awards and overlapping vesting of equity incentives and various incentive vehicles.

In connection with our initial public offering, our board of directors adopted the 2021 Omnibus Long-Term Incentive
Plan (2021 LTIP), under which it granted equity awards to our NEOs at the initial public offering. The 2021 LTIP is also used
to grant annual long-term incentive awards, or LTIs. LTIs for performance year 2022, granted in the form of restricted share
units (RSUs) and performance share units (PSUs), as well as grants of RSUs and options (Options) that were granted in
connection with and prior to our initial public offering, result in a laddered vesting schedule for each award, rather than one-
time vesting of all outstanding awards on a specified date which can result in larger, sporadic settlements. The LTI awards are
100% equity-settled. For information about the 2021 LTIP and equity compensation programs that we implemented in
connection with our initial public offering, please see “—Company Equity-Based Compensation Plans at a Glance.”

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4. We reward contribution

Our approach to executive compensation is both market-based and performance-based. LTI grant levels have historically been
performance-differentiated and are based on an executive’s in-year performance and future potential.

We consider this performance-based approach to granting LTIs to be a best practice, instead of granting LTIs based on
market benchmarks only.

5. We align compensation with corporate strategy

To align executive compensation with our corporate strategy, we make a direct link between an executive’s pay and the
executive’s performance against the achievement of our corporate objectives.

The CEO and the other NEO’s annual performance bonuses are evaluated through assessing the Company’s
performance, which is based on a combination of corporate scorecards, and individual performance. 50% of our 2022 LTI
awards took the form of PSUs to align management with shareholders’ interests while incentivizing management to achieve
performance targets based on corporate performance objectives tied to earnings per share and revenue growth. Performance
bonus metrics are part of a multi-year business plan and are aligned with our longer-term goals. The other 50% of our 2022
LTI awards are in the form of RSUs that are subject to service-vesting conditions to incentivize management retention.

6. We align our pay practices across the organization

Our pay practices are aligned across the organization. We also use the following methodologies in considering equitable
compensation:

• bonus calculations include a mix of Company and individual performance metrics for executives, as well as all
team members;

• overall annual increases to base salary for the executives are relatively aligned with increases to base salary for
positions below the executive level;

• materially or significantly increased responsibility in any team member’s role and/or a subsequent promotion is
accompanied by a change in pay, as appropriate; and

• compensation data, along with other relevant factors, such as internal equity and strategic significance of the role,
are considered to develop a base salary range and a total compensation target for all positions across the
organization.

Board Oversight and Compensation Governance

Our executive compensation governance protects the peer relationships among the members of our board of directors and
TELUS, our controlling shareholder. Under our board policy manual, dated November 4, 2022 (Board Policy Manual), which
describes the terms of reference for various Company governance functions, the human resources committee has the authority
to develop the Company’s philosophy and guidelines on executive compensation, oversee succession-planning and review and
approve certain compensation and performance-rating decisions.

In 2022, the Board Policy Manual set forth our governance policies around executive compensation as
follows:

Our board of directors had the following responsibilities:

• reporting annually to shareholders on the key strategic objectives of the Company and how the Company’s
approach to executive compensation is designed to motivate management to achieve these strategic objectives

• appoint and replace the CEO (subject to the shareholder agreement among the Company, TELUS and BPEA),
which responsibility the board of directors has delegated to the TELUS CEO;

• approve the appointment of members of the Executive Leadership Team; and

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• satisfy itself about the integrity of our CEO and the executive leadership team.

The CEO had the following responsibilities:

• create, maintain and review with the human resources committee an annual plan for the appointment, performance
management, leadership development and succession of the executive leadership team; and

• support the governance and nominating committee in respect of recruiting new directors to the board of directors.

The human resources committee had the following responsibilities:

• oversee succession planning for the CEO, with the advice and recommendation of the chair of the board of
directors and the board of directors;

• review and approve the succession plans for members of the executive leadership team;

• upon the advice of the CEO, review and approve the proposed appointment of any person to the executive
leadership team;

• review and approve all agreements, including those dealing with retirement, termination of employment or other
special circumstances, between the Company and the CEO and the Company and any member of the executive
leadership team;

• develop and recommend to the board of directors for its approval the Company’s compensation philosophy and
guidelines on executive compensation and recommend any material changes to the board of directors for its
approval;

• review and approve the design of and bonus pool guidelines for the annual performance bonus plan;

• review and approve any proposed establishment of, and material changes to, incentive compensation plans and
employee benefit plans for the executive leadership team and all equity-based incentive plans of the Company or
its subsidiaries;

• review management’s recommendations for and approve the granting of options or other securities under the
Company’s or its subsidiaries’ equity-based incentive plans and administer such plans, in each case, within any
guidelines established by the board of directors;

• review and approve the levels and types of benefits, including perquisites and vehicles, that may be granted to the
CEO and the executive leadership team, subject to the terms of any applicable employee benefit plans and
guidelines established by the board of directors;

• approve the share ownership guidelines for the CEO and the executive leadership team and review compliance
with those guidelines;

• review and approve the corporate scorecard, individual goals and objectives relevant to CEO compensation;

• together with the chair of the board of directors, review and approve the CEO’s performance evaluation and the
CEO’s compensation based on the human resources committee’s assessment of the CEO’s performance;

• upon the recommendation of the CEO, review and approve the performance evaluations and the compensation of
the executive leadership team;

• consider and determine all matters concerning incentive awards, perquisites and other remuneration matters with
respect to the CEO and executive leadership team, including the adequacy of the Company’s say on pay policy;

• approve the list of companies in the comparator group against which the Company benchmarks its compensation
program and review the compensation ranges for the Company’s senior management against the compensation of
the companies in this comparator group; and

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• periodically review the terms of any “clawback” or similar policy or agreement that allows the Company to cancel
or recoup incentive compensation from an employee and, to the extent necessary, make the determinations
required to be made under any such policy or agreement.

The governance and nominating committee had the following responsibilities:

• identify individuals qualified to become members of the board of directors and to recommend director nominees
to the board of directors for the next annual meeting of shareholders; and

• review annually the effectiveness of the board diversity policy and the measurable objectives for achieving board
diversity and recommend any material changes to the board diversity policy to the board of directors.

Our Board Policy Manual was updated in 2022 to clarify that the governance and nominating committee had the responsibility
to also consider and determine the adequacy of the Company’s say on pay policy.

Human Resources Committee Experience

Members of the human resources committee have a range of complementary skills in areas such as human resources, corporate
governance, risk assessment, public company leadership and board experience, which enable them to make effective decisions
on our compensation practices. Some of the human resources committee members have served in executive capacities or on
compensation committees with other public issuers and, through those roles, have acquired direct experience relevant to their
responsibilities for reviewing and considering executive compensation. The diverse experience of the human resources
committee members also includes an extensive understanding of accounting considerations in the context of executive
compensation and practices for attracting, developing and retaining talent.

As of December 31, 2022, the members of the human resources committee were Josh Blair, who chairs the committee,
Sue Paish and Carolyn Slaski. Further information about the human resources committee members can be found in “Item 6A—
Directors and Senior Management—Our Directors,” and information about the current composition and responsibilities of the
human resources committee can be found in “Item 6C—Board Practices—Human Resources Committee.”

Compensation Consultant

In advance of our initial public offering, the human resources committee engaged a compensation consultant (Compensation
Consultant) as a compensation consultant and advisor to the board of directors and management. Following the initial public
offering and throughout 2022, the Compensation Consultant performed a variety of tasks for the human resources committee,
including reviewing the competitiveness of our executive and director compensation program and annual incentive and LTI
program design.

Compensation Elements for the CEO and the Other NEOs in 2022

The key components of total direct compensation for the CEO and the other NEOs are fixed-base salary, short-term
performance bonuses (paid in cash to reward annual performance) and LTIs (paid in the form of equity awards consisting of
RSUs and PSUs (all of which settle in equity) to promote retention and reward performance over the long term).

Benefits and perquisites, including retirement benefits, are also considered as part of the Company’s total
compensation for the CEO and the other NEOs. See “—Benefits and Perquisites” for more details.

Total Compensation at a Glance

This table describes the components of total compensation that our NEOs have received for fiscal year 2022.

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Component Description Objective

Fixed-base salary • Ranges are established for each • Recognizes varying levels of
position based on market practice, responsibility, prior experience,
with the mid-point of the range breadth of knowledge, overall
being set at the median of the individual performance and
comparator group internal equity, as well as the pay
practices of companies in the
comparator group

Annual performance • Target ranged from 60% to 70% of • Provides an annual performance
bonus base salary for NEOs and target of bonus paid in cash based on
150% base salary for the CEO corporate and individual
performance of the applicable
• TELUS International Performance year
Bonus Program (PBP) tied to the
performance of the NEO and the
Company’s overall corporate
performance, with corporate
performance given 70% weighting
and individual performance given
30% weighting for NEOs; and
corporate performance given 80%
weighting and individual
performance given 20% weighting
for the CEO

• PBP metrics can lead to payouts

ranging from zero (for substandard
performance) to a maximum of
150% of target (for exceptional
performance)

Equity compensation • Links a significant portion of the at- • Helps to promote retention of
risk compensation to Company executives
shareholder return and helps to
promote retention of executives

Benefits and • A competitive executive benefits

perquisites program

• Vehicle allowance for the CEO and

CCO-CHRO and annual allowance
for the CEO, and limited perquisites
including contributions to the
defined contribution plan and
telecom benefits
Retirement benefits • Benefits under TELUS’ Amended and Restated Pension Plan for Management
and Professional Employees of TELUS Corporation (the DB Plan), a
contributory, Canadian-registered defined benefit plan for our CEO and CCO-
CHRO, benefits under the Supplemental Retirement Arrangement for Designated
Executives of TELUS Corporation (SRA) consistent with market practice for
Canadian executives for our CEO, benefits under TELUS’ Supplementary
Employee Retirement Plan for Vice Presidents and Certain Other Designated
Employees (SERP 2020) for our CCO-CHRO and benefits under TELUS’
Defined Contribution Pension Plan for Provincially Regulated Employees
(Defined Contribution Plan) (a registered defined contribution plan) for our CFO.
Our CEO and CCO-CHRO also have retirement benefits in the TELUS
Supplementary Savings Plan (Savings Plan) (a nonqualified after-tax account),
but no longer contribute to the Savings Plan. These retirement programs are
further described in “—TELUS Retirement Plan Benefits.”

• Competitive 401(k) plan with Company match for US executives, including the
CCO and CIO.

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2022 Approach to Compensation

Base Salary Methodology

During 2022, the human resources committee considered and approved the CEO’s annual base salary. Josh Blair, the vice-chair
of our board of directors and the chair of our human resources committee, has been delegated the authority by our board of
directors to approve any changes in base salary for members of the executive leadership team.

We set our base salary range midpoints at the 50th percentile of a comparator group. As part of its annual pay
assessment for 2022, the human resources committee reviewed competitive pay data prepared by the Compensation Consultant.
We then made adjustments to individual base salaries that we consider appropriate to recognize the executives’ varying levels
of responsibility, prior experience, breadth of knowledge, overall individual performance and internal equity, as well as the pay
practices of companies in a comparator group.

As required pursuant to the Board Policy Manual, the human resources committee has reviewed and approved the
CEO’s compensation based on the human resources committee’s assessment of the CEO’s performance.

At-Risk Incentive Pay Components

At-risk incentive pay consists of:

• annual performance bonus (paid in cash); and

• long-term incentives (in the form of RSUs and PSUs).

The following outlines our approach in determining and delivering these at-risk incentive pay components.

At-Risk Pay: Annual Performance Bonus

The annual performance bonus for NEOs is determined pursuant to the PBP. A summary of the terms of the PBP follows.

TELUS International Performance Bonus Program

Methodology

The PBP is designed to reward the achievement of business objectives in the short-term by providing immediate income in
cash. For 2022, this component of at-risk pay was calculated based for NEOs on individual (30%) and corporate (70%)
performance (for the CEO, the breakdown is individual (20%) and corporate (80%) performance) to better reflect affordability
and our continued focus on funding strategic investments. In 2022, each of Ms. Kanu’s and Ms. Tyfting’s annual incentive
bonus target was increased from 60% to 70%.

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For 2022, each executive’s annual target performance bonus under the PBP was set using the following formula. Each
element in the formula is explained in the steps outlined below:

To determine the annual performance bonus for each executive, we follow a three-step process:

Step 1: Assess Company corporate performance as measured by the corporate scorecard results;

Step 2: Assess an executive’s individual performance; and

Step 3: Calculate the annual performance bonus based on the above payout formula.

The three-step process is described in further detail below.

Step 1: Assess Company corporate performance as measured by the corporate scorecard results;

The Company’s corporate performance is measured through the results of our corporate scorecard, which is
determined after the end of a performance year by rating the extent to which we have met or exceeded our targets for each
metric set at the start of the year. Our 2022 metrics measured achievements in the following areas: Team, Customers First, and
Profitable Growth & Efficiency. See below table on the 2022 corporate scorecard metrics. For further information regarding the
2022 performance metrics, see “—Non-GAAP Financial Measures and Non-GAAP Ratios”.

Scorecard Metrics Weight

TELUS Team (10%)
Consolidated Engagement 5%
Agent Attrition Index 5%
Customers First (40%)
Service Excellence Promise 40%
Profitable Growth & Efficiency (50%)
Revenue 15%
Adjusted EBITDA 25%
Free Cash Flow 10%

The objectives in the Company’s corporate scorecard are set annually by the CEO and CFO at the beginning of the year and
recommended to the governance and nominating committee for review and approval. Financial metrics in the objectives are
largely based on targets that meet or exceed the annual budget approved by the board of directors.

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The key aspects of the target-setting process include:

• selecting measurable and auditable performance metrics;

• ensuring that, as a general principle, the threshold target for any metric (yielding a 0.5x multiplier) exceeds the
actual result on that metric in the previous year. The target (yielding a 1.0x multiplier) for any budget-related
metric is generally set at or above the corresponding number in the corporate budget approved by the board of
directors;

• stress-testing the current year’s targets against the prior year’s scorecard to determine year-over-year continuous
improvement;

• ensuring that the targets and stretch targets that are used to determine whether these objectives have been met or
exceeded are clearly set out in the Company’s corporate scorecard; and

• ensuring that all performance metrics are tied to the Company’s achievement of our corporate objectives.

During the year, results and/or targets may be adjusted to normalize for one-time events or other unique circumstances.
In accordance with the adjustment process, the CEO, CFO, and CCO-CHRO collectively review and approve all adjustments
proposed by management.

Step 2: Assess an executive’s individual performance

The individual performance of each NEO is initially assessed by the CEO and is reviewed and approved by the human
resources committee. The individual performance of the CEO is reviewed and approved by the human resources committee.
The chair of the human resources committee invites board of directors’ members to provide their feedback regarding the CEO’s
performance.

Step 3: Calculate the annual performance bonus based on the above payout formula

Based on an assessment and recommendation from the CEO, the human resources committee reviews each NEO’s
performance and determines an individual multiplier, and along with the related multiplier in the Company corporate balanced
scorecard, approves of the annual performance bonus under the PBP for each NEO using the formula in this section. The human
resources committee, with input from the chair of the board of directors due to the peer relationships between our Company and
TELUS, our controlling shareholder, assesses the personal performance of the CEO and his leadership. Based on this
assessment, the human resources committee determines an individual multiplier and, along with the related multiplier in the
Company corporate balanced scorecard, approves of the board of directors for approval of the annual performance bonus under
the PBP for the CEO, based on the formula in this section.

The relative weight that corporate, business unit and individual performance has in determining a team member’s
annual performance bonus under the PBP depends on the individual’s organizational level and ability to influence the
Company’s overall performance. For each of our NEOs, Company corporate performance is weighted at 70% and individual
performance is weighted at 30%; and for the CEO, Company corporate performance is weighted at 80% and individual
performance is weighted at 20%. In addition to Company corporate and individual performance, the board of directors has the
discretion to adjust bonus payouts for any extraordinary circumstances or other factors, as it deems appropriate.

At-Risk Pay: Long-Term Incentives

2022 Long-Term Incentives

Our human resources committee designed an executive compensation program to achieve the objectives described above under
“Key Compensation Principles.” This includes the grant of annual equity awards by our human resources committee, which are
used to encourage an ownership culture and align management with stockholders’ interests.

On March 21, 2022, our human resources committee approved long-term performance incentive awards for our senior
leaders, including our NEOs, which were granted under the 2021 LTIP. 50% of the equity granted to our senior leaders was in
the form of RSUs and 50% of the equity granted to our senior leaders was in the form of PSUs. We believe the use of RSUs
and PSUs align the compensation of these senior leaders with stockholders’ interests. The value recognized by individuals with
respect to these awards will depend on the Company’s stock price performance and, in the case of the PSUs, if certain
performance targets are met within the performance period, as described below. The number of RSUs and PSUs granted were

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calculated based on the closing price per TI share on March 18, 2022 of $26.38. The RSUs generally vest 25% on each of the
first four anniversaries of the grant date, subject to continued employment through each applicable vesting date. The PSUs will
cliff vest on the third anniversary of the grant date, subject to achievement of the following performance targets:

• 60% of the PSUs will be earned based on the Company’s earnings per share compound annual growth rate during
the performance period, which we refer to as EPS Growth CAGR; and

• 40% of the PSUs will be earned based on the Company’s organic revenue compound annual growth rate during
the performance period, calculated pursuant to IFRS, which we refer to as Organic Revenue Growth CAGR.

The RSUs and PSUs are subject to forfeiture if the applicable holder is terminated with cause (as defined in the award
agreement). In the event of death, the RSUs and PSUs will vest (in the case of PSUs, assuming target performance). In the
event of disability or the holder’s qualifying retirement, the RSUs and PSUs will continue to vest in accordance with their
original vesting schedule. In the event of a termination without cause, the holder will be entitled to a prorated portion of the
award, calculated based on the amount of service provided during the applicable performance period assuming target
performance.

The individual grant values for each of our NEOs, including the threshold, target and maximum payout of PSUs, is set
forth in the “Grants of Plan-Based Awards Table”, below.

Benchmarking

When making compensation decisions, the human resources committee takes into consideration the value of total direct
compensation (TDC), which consists of base salary, annual performance bonus and long-term equity incentive compensation
provided to executives. The human resources committee generally looks to position the value of target TDC to be competitive
with the 50th percentile of comparable companies, with exceptions made based on the human resources committee’s analysis of
key factors.

In assessing competitive compensation levels and practices, the human resources committee reviewed and
compared compensation to executives at a peer group of companies. In connection with selecting companies for the peer group,
the human resources committee considered the following criteria: annual revenues, profitability, market capitalization, and the
comparator groups used by proxy advisory firms.

The human resources committee selected the following list of companies that would comprise our peer group for 2022
compensation decisions:

Black Knight, Inc. EPAC Systems Inc. Nuance Communications, Inc. Unisys Corp.
Concentrix Corporation Genpact Ltd Sabre Corporation Verint Systems
Conduent, Inc. Jack Henry & Associates Inc. TTEC Holdings, Inc. WEX Inc.

The human resources committee reviewed a report on the Company’s compensation programs for its executive leadership
team, which incorporated data provided by the Compensation Consultant. The Compensation Consultant collected
compensation data from the companies in our competitor peer group (the most recent peer compensation data available at the
time) and compared the information to the executive leadership team’s target total direct compensation and the elements that
target total direct compensation is comprised of.

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2022 Actual Compensation Mix (Percentage of Total Direct Compensation)(1)

CEO Other NEOs

Compensation element Provided as Target 2022 actual Target 2022 Actual
Base salary (fixed) Cash 10% 10% 23% 24%
Allowances (fixed) Cash — 1% — —
Annual Performance bonus (at-risk) Cash 15% 11% 16% 11%
Long-term incentive (at-risk) RSUs 38% 39% 30% 32%
Long-term incentive (at-risk) PSUs 38% 39% 30% 32%
______________________________________________

(1) Sum of percentages may not total 100% due to rounding.

2022 Actual Compensation

Base Salary Compensation

The annual base salaries that our NEOs were entitled to receive in respect of calendar year 2022, were as follows:

2022 Annual
Base Salary(1)
Name ($)
Jeff Puritt 850,000
Vanessa Kanu(2) 468,430
Maria Pardee 450,000
Marilyn Tyfting(3) 350,766
Michael Ringman 350,000
_________________________________________________
(1) Base salary amounts reflected in the “Summary Compensation Table” differ from the amounts above since annual
merit increases for 2022 took effect on April 1, 2022.

(2) Base salary value converted from CAD $633,014 to USD using an exchange rate on December 30, 2022, of $0.74.

(3) Base salary value converted from CAD $474,008 to USD using an exchange rate on December 30, 2022, of $0.74.

For more details about the actual amount of base salary paid to our NEOs in 2022, see “—Summary Compensation Table.”

2022 PBP Payouts

Each NEO’s annual performance bonus was determined by applying the formulas outlined under the headings “—TELUS
International Performance Bonus Program.” Specifically, the human resources committee assesses the Company’s corporate
performance against the corresponding targets, as measured by the corporate scorecards for the Company, and then applies the
corporate scorecard and personal performance multiplier for each NEO to determine the payout. In 2022, the annual
performance targets for the NEOs ranged from 60% to 70% of base salary, and the CEO’s annual performance bonus target was
equal to 150% of base salary.

Following its critical assessment of 2022 overall company performance, the human resources committee approved a corporate
scorecard multiplier of 70% for all NEOs, including the CEO, and an individual multiplier of 70%.

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Based on the above, each of our NEOs received the following amounts under the PBP for fiscal 2022.

Named Executive Officer 2022 PBP Payout

Jeff Puritt $ 892,500
Vanessa Kanu(1) $ 210,052
Maria Pardee $ 207,657
Marilyn Tyfting(2) $ 160,028
Michael Ringman $ 142,816
_________________________________________________
(1) This value is converted from CAD $283,854 to USD for Ms. Kanu, using an exchange rate on December 30, 2022, of
$0.74.
(2) This value is converted from CAD $216,254 to USD using an exchange rate on December 30, 2022, of $0.74. In
accordance with the terms and conditions of Ms. Tyfting's DB Plan enrollment agreement, this amount will be
reduced by 15% as consideration for her participation in the DB Plan.

CCO’s 2022 Discretionary Bonus

Pursuant to Ms. Pardee’s employment agreement, she is entitled to receive a bonus of up to $100,000 for 2022, calculated based
on the achievement of annual net new sales at or above 75% of target, as determined in the Company's discretion. This target
was not achieved for 2022. The Company extended the performance period during which she can achieve this target through
2023.

Long-Term Incentives

The individual grant values for each of our NEOs granted in March 2022 under the 2021 LTIP, including the threshold, target
and maximum payout of PSUs, is set forth in the “Grants of Plan-Based Awards Table”, below. We anticipate equity grants for
each of our NEOs with respect to 2022 performance will be made later this year and disclosed in the 2023 annual report.

Benefits and Perquisites

We provide our NEOs with a competitive benefits program that includes health and dental coverage, life, accident and critical
illness insurance coverage, short-term and long-term disability coverage and health spending accounts as we do for all our
employees. In addition, we offer our NEOs and all our employees the opportunity to purchase TI shares at a 15% discount,
through regular payroll deductions up to a maximum of $25,000 per year under the Company employee share purchase plan.
We also offer Canadian executives who were participating in the TELUS employee share purchase plan before May 1, 2021 the
opportunity to continue to participate in the TELUS employee share purchase plan and purchase TELUS shares through regular
payroll deductions, with a match of 35% for Canadian executives to a maximum of 6% of base salary under the TELUS
employee share purchase plan.

The use of perquisites is limited for our NEOs. Some of the perquisites we provide to our NEOs include (1) an
executive health plan for Canadian executives; (2) a $25,000 annual allowance intended to cover financial and retirement
counseling and other items, for our CEO; (3) a vehicle allowance for our CEO and CCO-CHRO; (4) telecom benefits for the
home (for work and personal use) of our Canadian executives, including our CFO and CCO-CHRO and (5) a telephone
concession. For information regarding the value of perquisites paid to our NEOs in 2022, see “—Summary Compensation
Table”.

Our CEO is entitled to benefits under the DB Plan and SRA pension plans consistent with market practice for TELUS
Canadian executives, our CFO is entitled to participate in the Defined Contribution Plan (a registered defined contribution plan)
and the Savings Plan, and our CCO-CHRO is entitled to participate in the DB Plan and SERP 2020. Our NEOs in the United
States are eligible to participate in the Company’s 401(k) plan and are entitled to receive an employer matching contribution.
For information regarding the value of retirement benefits paid to our NEOs in 2022, see “—Summary Compensation Table,”
“—Pension Benefits” and “—TELUS Nonqualified After-Tax Account.”

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Employment Agreements

We have entered into employment agreements with our CEO and CFO, respectively, and offer letters with our other NEOs.
Details on NEO severance arrangements can be found below under “—Summary of NEO Employment and Separation
Agreements”.

Clawback Policy for Mr. Puritt

Mr. Puritt’s employment agreement provides that the TELUS clawback policy will apply to his compensation. The TELUS
clawback policy allows TELUS to recover or cancel certain incentives to executive officers in circumstances where (1) there
has been a material misrepresentation or material error resulting in the restatement of TELUS’ financial statements; (2) an
executive would have received less incentive compensation based on the restated financials; and (3) the executive’s misconduct
(such as an act of fraud, dishonesty or willful negligence or material non-compliance with legal requirements) contributed to the
obligation to restate the TELUS financial statements.

In the circumstances described above, the board of directors of TELUS may cancel, or require the executive to repay to
TELUS, all or part of the following compensation paid or awarded to the executive in respect of the financial year for which
restated financial statements are required:

• the annual performance bonus;

• unvested Phantom Options, TI Phantom RSUs and TELUS Phantom RSUs;

• vested but unexercised options; and

• any monetary payments and shares received from the exercise or settlement of LTI awards.

The board of directors of TELUS may seek recoupment if the restatement of the financial statement(s) occurs within 36 months
of the original date the audited financial statements were filed with the requisite securities commissions or similar regulatory
authorities in each of the provinces and territories of Canada. We expect to adopt a recoupment policy under which, upon
certain triggering events, we must recoup or cancel all or a portion of certain incentive compensation from executive officers
(as defined in accordance with SEC rules, which includes our NEOs). In addition, we will comply with the final terms of
proposed Rule 10D-1 under the Exchange Act, implementing Section 954 of the Dodd-Frank Act.

Tax and Accounting Considerations

In making compensation decisions, the impact of accounting implications and tax treatment of significant compensation
decisions are considered. We account for equity-based payments with respect to our long-term equity incentive award programs
in accordance with the requirements of IFRS 2.

Conclusion

The human resources committee believes that the overall executive compensation program is effective in attracting and
retaining executives, as well as in providing direction and motivation for the executives to make a significant contribution to the
Company’s success, thereby enhancing the value of the Company for its shareholders. We also believe that the design of our
executive compensation program does not encourage inappropriate risk-taking.

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Summary Compensation Table

The following table summarizes the compensation earned by our NEOs for the years ending December 31, 2022, December 31,
2021 and December 31, 2020.
Change in
Pension Value
and
Non-Equity Nonqualified
Incentive Deferred
Stock Option Plan Compensation All Other
Name and Principal Salary Bonus Awards Awards Compensation Earnings Compensation Total
(1) (2)
Position Year ($) ($) ($) ($) ($) ($) ($) ($)
Jeff Puritt 2022 850,000 — 6,625,020 — 892,500 2,016,775 (3) 53,626 (4) 10,437,921
President and Chief (11)
Executive Officer 2021 770,385 — 11,257,700 893,466 1,239,934 1,199,220 124,857 15,485,561
2020 611,809 — — — 686,449 2,004,072 103,909 3,406,239
(5) (6)
Vanessa Kanu 2022 443,901 — 1,500,020 — 210,052 (10) — 51,100 2,205,073
Chief Financial (11)
Officer 2021 393,690 — 3,173,932 446,745 225,112 — 42,803 4,282,282

2020 121,135 395,000 — — 255,960 — 8,951 781,046

Maria Pardee 2022 450,000 — 1,000,013 — 207,657 — 15,250 (7) 1,672,920
Chief Commercial
Officer 2021 — — — — — — — —

2020 — — — — — — — —
Marilyn Tyfting 2022 336,483 (5) — 1,000,013 160,028 (10) 1,853 (8) 26,342 (9) 1,524,719
Senior Vice 2021 (11) 296,869 — 2,283,974 446,745 156,678 165,979 47,699 3,397,943
President and Chief
Corporate Officer 2020 268,920 — — — 153,284 134,458 46,746 603,408
Michael Ringman 2022 340,039 — 700,020 — 142,816 — 16,832 (7) 1,199,707
Chief Information (11)
Officer 2021 307,039 — 1,719,239 297,830 156,193 — 30,501 2,510,802
2020 272,158 50,000 — — 146,965 — 28,826 497,949

_________________________________________________
(1) Actual base salary paid in 2022 differs from our NEO’s mid-year base salary because annual merit increases for 2022
took effect on April 1, 2022.

(2) The values set forth in the Stock Awards column for 2022 represent the aggregate grant date fair market value of RSUs
and PSUs (at target) granted to the NEOs on March 21, 2022, computed in accordance with IFRS 2.

(3) This value is converted from CAD $2,725,372 to USD using an exchange rate on December 30, 2022 of $0.74 and
reflects the actuarial increase in the present value of Mr. Puritt’s benefits under the DB Plan (a reduction of CAD
$81,628) and the SRA (and increase of CAD $2,807,000). See “—TELUS Retirement Plan Benefits” for more
information on the pension plan benefits and how such amounts are calculated.

(4) For Mr. Puritt, this column includes the following amounts related to perquisites: $17,400 for car allowance, $25,000
for his annual financial and tax planning allowance pursuant to his employment agreement, $5,564 for gifts, and
$5,662 for telecom benefits for the home.

(5) With respect to Ms. Kanu’s and Ms. Tyfting’s base salary, the value is converted from CAD $599,867 and CAD
$454,707, respectively, to USD using an exchange rate on December 30, 2022 of $0.74.

(6) For Ms. Kanu, this amount includes the following amounts related to perquisites: CAD $46,186 taxable benefit for the
employer top-up matching contributions under the Company’s Savings Plan, CAD $1,615 for telecom benefits for the
home, CAD $1,132 taxable benefit for telephone concession, CAD $18,494 to TELUS’ employee share purchase plan,
and CAD $1,628 for an executive health assessment. These values were converted from CAD to USD using an
exchange rate on December 30, 2022, of $0.74.

(7) This column includes the following amounts related to perquisites: $15,250 for the employer matching contributions to
the Company’s 401(k) plan for Ms. Pardee and Mr. Ringman, and $1,582 for Mr. Ringman under TELUS’s employee
recognition program.

(8) This value is converted from CAD $2,504 to USD using an exchange rate on December 30, 2022 of $0.74 and reflects
the actuarial increase in the present value of Ms. Tyfting’s benefits under the DB Plan (a reduction of CAD $11,634)

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and the SERP 2020 (an increase of CAD $14,138). See “—TELUS Retirement Plan Benefits” for more information on
the pension plan benefits and how such amounts are calculated.

(9) For Ms. Tyfting, this column includes the following amounts related to perquisites: CAD $15,000 for car allowance,
CAD $1,857 taxable benefit for parking and telephone concession, CAD $2,065 under TELUS’s employee recognition
program, CAD $2,962 for telecom benefits for the home, and CAD $13,714 to TELUS’ employee share purchase plan.
These values were converted from CAD to USD using an exchange rate on December 30, 2022, of $0.74.

(10) With respect to Ms. Kanu’s and Ms. Tyfting’s non-equity incentive, the value is converted from CAD $283,854 and
CAD $216,254, respectively, to USD using an exchange rate on December 30, 2022 of $0.74.

(11) Due to our initial public offering, MIP awards with respect to 2020 were granted to Mr. Puritt, Ms. Kanu, Ms. Tyfting
and Mr. Ringman in 2021, and the 2021 compensation includes the value of such grants. With respect to Ms. Kanu,
her 2021 compensation included a one-time sign-on grant in respect of her onboarding in 2020, which was paid at the
time of our initial public offering in February 2021.

Grants of Plan-Based Awards

The table below presents information regarding awards granted in 2022 to each NEO in respect of the 2021 LTIP.

Estimated future payouts under Estimated future payouts under

non-equity incentive plan awards equity incentive plan awards
All other
stock Exercise Grant date
awards: or base fair value
Number of price of of stock
stock or option and option
Name Grant date Threshold Target Maximum Threshold Target Maximum units awards awards
($) ($) ($) (#) (#) (#) (#) ($/Sh)
Annual (1)
Jeff Puritt Incentive — 1,275,000 1,912,500 — — — — — —
03/21/22 (2) — — — — — — 125,569 — 3,312,510
03/21/22 (3) — — — 62,785 125,569 251,138 — — 3,312,510
Vanessa Annual (1)
Kanu Incentive — 327,901(4) 491,852(4) — — — — — —
03/21/22 (2) — — — — — — 28,431 — 750,010
03/21/22 (3) — — — 14,216 28,431 56,862 — — 750,010
Maria Annual (1)
Pardee Incentive — 315,000 472,500 — — — — — —
03/21/22 (2) — — — — — — 18,954 — 500,007
03/21/22 (3) — — — 9,477 18,954 37,908 — — 500,007
Marilyn Annual (1)
Tyfting Incentive — 245,536(4) 368,304(4) — — — — — —
03/21/22 (2) — — — — — — 18,954 — 500,007
03/21/22 (3) — — — 9,477 18,954 37,908 — — 500,007
Michael Annual (1)
Ringman Incentive — 210,000 315,000 — — — — — —
03/21/22 (2) — — — — — — 13,268 — 350,010
03/21/22 (3) — — — 6,634 13,268 26,536 — — 350,010
________________________________________
(1) This row reflects the possible payouts with respect to grants of annual incentive awards under the Performance Bonus
Program for performance in the fiscal year ended December 31, 2022. The amounts shown indicate the dollar value of
the potential payment upon attainment of the annual performance bonus performance criteria at threshold (0%), target
(150% of base salary for Mr. Puritt; 70% of base salary for Ms. Kanu, Ms. Pardee, and Ms. Tyfting; and 60% of base
salary for Mr. Ringman) and maximum (150% of target). Actual payments based on the Company’s performance are
shown in the Non-Equity Incentive Plan Compensation column of the Summary Compensation Table.

(2) This row reflects the number of equity-settled RSUs awarded in the fiscal year ended December 30, 2022, which were
granted under the 2021 LTIP.

(3) This row reflects the threshold, target and maximum payout of PSUs that were awarded under the 2021 LTIP.

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(4) Annual incentive amounts converted from CAD to USD using an exchange rate on December 30, 2022, of $0.74 as
follows: target of CAD $443,110 and a maximum of CAD $664,665 for Ms. Kanu, and target of CAD $331,806 and a
maximum of CAD $497,708 for Ms. Tyfting.

Outstanding Equity Awards at Fiscal Year-End

The table below summarizes all option-based and share-based awards granted by the Company that are outstanding as of
December 31, 2022, which includes RSUs, PSUs, and Options.
Option Awards(1) Stock Awards

Equity
incentive
Equity plan awards:
incentive market or
plan awards: payout value
Number of Number of number of of
securities securities unearned shares, unearned shares,
underlying underlying units or units or
unexercised unexercised Option other rights other rights
options options exercise Option that have that have
(#) (#) price expiration not vested not vested
Name exercisable unexercisable ($) date (#) ($)(2)
Jeff Puritt 296,942 (3) — 4.87 12/23/2026 — —
539,892 (3) — 4.87 12/23/2026 — —
1,259,748 (3) — 8.94 12/23/2026 — —
— 41,935 (5) 8.46 12/27/2029 — —
41,924 (4) 125,769 25.00 02/02/2031 — —
— — — — 588,848 (6) 11,653,302
Vanessa Kanu 20,963 (4) 62,886 25.00 02/02/2031 — —
— — — — 152,076 (7) 3,009,584
Maria Pardee — — — — 67,904 (8) 1,343,820
Marilyn Tyfting — 16,772 (5) 8.46 12/27/2029 — —
20,963 (4) 62,886 25.00 02/02/2031 — —
— — — — 106,424 (9) 2,106,131
Michael Ringman — 11,183 (5) 8.46 12/27/2029 — —
13,975 (4) 41,924 25.00 02/02/2031 — —
— — — — 78,110 (10) 1,545,797
________________________________________
(1) All Options have a term of ten years. Equity-settled Options vest equally over four years.

(2) The value is based on a closing TI share price of $19.79 on December 30, 2022.

(3) Represents Option awards granted on December 23, 2016 to Mr. Puritt. These Options fully vested on December 23,
2020 and became exercisable upon the effective date of the initial public offering.

(4) Represents equity-settled Options that vest ratably on the first trading day after February 2 in each of 2023, 2024 and
2025.

(5) Represents a grant of Phantom Options that vested on June 27, 2022, 50% of which was cash-settled, and 50% of
which was equity-settled. 50% of the cash-settled Phantom Options were exercised at vesting. The remaining 50% of
the cash-settled Phantom Options will be exercisable on the first anniversary of the vesting date (or June 27, 2023) and
settled no later than December 31 of the calendar year of the date of exercisability.

(6) Includes 153,981 equity-settled RSUs that will vest equally over three years on February 28, 2023, 2024 and 2025;
78,741 equity-settled RSUs that will vest equally over three years on May 20, 2023, 2024 and 2025; 125,569 equity-
settled RSUs that will vest equally over four years on March 21, 2023, 2024, 2025 and 2026; 104,988 equity-settled
PSUs that will vest (at target) on May 20, 2024; and 125,569 equity-settled PSUs that will vest (at target) on March 21,
2025.

(7) Represents 71,518 equity-settled RSUs that will vest equally over three years on February 28, 2023, 2024 and 2025;
10,155 equity-settled RSUs that will vest equally over three years on May 20, 2023, 2024 and 2025; 28,431 equity-

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settled RSUs that will vest equally over four years on March 21, 2023, 2024, 2025 and 2026; 13,541 equity-settled
PSUs that will vest (at target) on May 20, 2024; and 28,431 equity-settled PSUs that will vest (at target) on March 21,
2025.

(8) Includes 12,855 equity-settled RSUs that will vest equally over three years on May 20, 2023, 2024 and 2025; 18,954
equity-settled RSUs that will vest equally over four years on March 21, 2023, 2024, 2025 and 2026; 17,141 equity-
settled PSUs that will vest (at target) on May 20, 2024; and 18,954 equity-settled PSUs that will vest (at target) on
March 21, 2025.

(9) Includes 49,018 equity-settled RSUs that will vest equally over three years on February 28, 2023, 2024 and 2025;
8,356 equity-settled RSUs that will vest equally over three years on May 20, 2023, 2024 and 2025; 18,954 equity-
settled RSUs that will vest equally over four years on March 21, 2023, 2024, 2025 and 2026; 11,142 equity-settled
PSUs that will vest (at target) on May 20, 2024; and 18,954 equity-settled PSUs that will vest (at target) on March 21,
2025.

(10) Includes 32,676 equity-settled RSUs that will vest equally over three years on February 28, 2023, 2024 and 2025;
8,099 equity-settled RSUs that will vest equally over three years on May 20, 2023, 2024 and 2025; 13,268 equity-
settled RSUs that will vest equally over four years on March 21, 2023, 2024, 2025 and 2025; 10,799 equity-settled
PSUs that will vest (at target) on May 20, 2024; and 13,268 equity-settle PSUs that will vest (at target) on March 21,
2025.

Option Exercises and Stock Vested

The following table provides information on stock options that were exercised and shares that were acquired on vesting of stock
awards by each NEO during the 2022 fiscal year.
Option Awards Stock Awards
Number of shares Number of shares
acquired or Value realized acquired on Value realized
exercised on exercise vesting on vesting
Name (#) ($)(3) (#)(1) ($)
Jeff Puritt 41,935 641,161 206,451 5,128,097
Vanessa Kanu — — 27,226 728,389
Maria Pardee — — 4,286 101,793
Marilyn Tyfting 16,772 256,434 70,528 1,735,811(2)
Michael Ringman 11,183 170,981 47,932 1,188,720
_________________________________________________
(1) The values in this column represent vested TI Phantom RSUs; TELUS Phantom RSUs, including reinvested dividends
or dividend equivalents for the TELUS Phantom RSUs; and vested equity-settled RSUs. The RSUs were granted
pursuant to the 2021 LTIP, and the TI Phantom RSUs and TELUS Phantom RSUs were granted pursuant to the MIP.
For a description of the MIP, see “—Company Equity-Based Compensation Plans at a Glance.”

(2) Represents the TI share value realized on vesting of USD $1,466,621, plus the TELUS share value realized on vesting,
converted from CAD $363,770.75 to USD using an exchange rate on December 30, 2022, of $0.74.

(3) The values in this column represent exercised cash-settled TI Phantom Options that were granted pursuant to the MIP.

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TELUS Retirement Plan Benefits

Defined Benefit Pension and Supplemental Retirement Arrangement—Jeff Puritt

Mr. Puritt participates in the TELUS executive retirement program. The retirement program consists of the DB Plan, which is a
contributory Canadian-registered defined benefit pension plan, and the SRA, which is a supplemental pension benefit plan that
provides benefits to retired executives in addition to the pension income provided under the DB Plan. The SRA supplements the
pension benefits of the DB Plan by providing a total benefit at retirement determined as 2% of a participant’s highest
consecutive three years average pensionable remuneration multiplied by the total number of years of credited service. There is a
maximum cap on total benefits of 70% of the average pensionable remuneration.

Pensionable remuneration for Mr. Puritt under the SRA is equal to his base salary plus the actual annual performance
bonus paid to him in cash, which may equal up to 100% of his base salary. As is common with non-registered plans of this
nature, the SRA is unfunded. The pension benefits under the registered DB Plan and the SRA are payable for a participant’s
lifetime, with a 60% benefit payable to the surviving spouse.

The normal retirement age is 65. Early retirement is permitted as early as age 55 if the participant has at least ten years
of credited service. Retirement benefits are not reduced if the participant retires on or after age 60 with at least 15 years of
service, or on or after age 55 with a combination of age and years of service equal to at least 80 (in each case, excluding any
extra years of credited service granted). Otherwise, the annual benefit is reduced by 0.5% per month from the earlier of age 60
and the age at which the participant would have qualified for the full benefit amount, and further reduced by the lesser of 0.25%
for each month that the participant’s service (excluding any extra years of credited service granted) is less than 15 years, and
0.25% for each month that the participant’s age is less than 65. The SRA permits TELUS to grant additional years of credited
service.

Effective January 1, 2016, Mr. Puritt ceased participation in the Defined Contribution Plan and Savings Plan and
commenced participation in the DB Plan and the SRA. Pursuant to his employment agreement with the Company, Mr. Puritt’s
prior years of service with TELUS, from July 26, 2001 to December 31, 2015 were recognized under the SRA in three equal
installments on each of January 1, 2018, January 1, 2020, and January 1, 2022.

Defined Benefit Pension and Supplemental Pension Plan—Marilyn Tyfting

As of January 1, 2020, Ms. Tyfting participates in the TELUS retirement program for vice presidents and senior vice presidents.
The retirement program consists of the DB Plan, which is a contributory Canadian-registered defined benefit pension plan, and
the SERP 2020, which is a supplemental pension benefit plan that provides benefits to retired vice presidents and senior vice
presidents in addition to the pension income provided under the DB Plan. The SERP 2020 supplements the pension benefits of
the DB Plan by providing a total benefit at retirement determined as 2% of a participant’s highest consecutive five years
average pensionable remuneration multiplied by the total number of years of credited service. There is a maximum cap on total
benefits of 70% of the average pensionable remuneration.

Pensionable remuneration for Ms. Tyfting under the SERP 2020 is equal to her base salary plus the actual annual
performance bonus paid to her in cash. As is common with non-registered plans of this nature, the SERP 2020 is unfunded. The
pension benefits under the registered DB Plan and the SERP 2020 are payable for a participant’s lifetime, with a 60% benefit
payable to the surviving spouse.

The normal retirement age is 65. Early retirement is permitted as early as age 45 if the participant has at least 25 years
of continuous service. Retirement benefits are not reduced if the participant retires on or after age 55 with at least 25 years of
credited service, or on or after age 60 with at least 20 years of credited service. Otherwise, the annual benefit is reduced so that
the early retirement benefits are actuarially equivalent to the unreduced pension at the earliest unreduced retirement age.

Effective January 1, 2020, Ms. Tyfting ceased participation in the Defined Contribution Plan and Savings Plan and
commenced participation in the DB Plan and the SERP 2020.

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Pension Benefits

The following table sets out information regarding Mr. Puritt’s DB Plan and SRA and Ms. Tyfting’s DB Plan and SERP 2020
retirement benefits as of December 31, 2022.

Number of Present Value

Years of Payments
Credited Accumulated During Last
Service Benefit Fiscal Year
Name Plan Name (#) ($)(1) ($)
Jeff Puritt DB Plan 7 239,942 (2) —
SRA 21 9,641,904 (3) —
Marilyn Tyfting DB Plan 3 91,968 (4) —
SERP 2020 3 211,122 (5) —
_________________________________________________
(1) The present value of the accumulated benefit is calculated using a valuation method and assumptions consistent with
the most recent financial statements and is based on a projection of both pensionable earnings and credited service.
Key economic assumptions include a discount rate of 5.05% per annum. Mortality rates are assumed to follow the 80%
of the Canadian Pensioners’ Monthly CPM-2014 Private Sector Mortality Table with generational projection using the
CPM-B improvement scale. Certain other assumptions have been made with respect to retirements and withdrawals.

(2) This value is converted from CAD $323,300 to USD using an exchange rate on December 30, 2022, of $0.74.

(3) This value is converted from CAD $13,029,600 to USD using an exchange rate on December 30, 2022, of $0.74.

(4) This value is converted from CAD $123,200 to USD using an exchange rate on December 30, 2022, of $0.74.

(5) This value is converted from CAD $285,300 to USD using an exchange rate on December 30, 2022, of $0.74.

TELUS Non-qualified After-Tax Account

Mr. Puritt, Ms. Kanu, and Ms. Tyfting have retirement benefits in the Savings Plan. The Savings Plan is a “top-up” program
that works in conjunction with the Defined Contribution Plan. The Savings Plan allows participants to contribute toward their
retirement in excess of what the Canada Revenue Agency (CRA) permits participants to contribute annually under the Defined
Contribution Plan.

Participants can elect to contribute between 3% and 10% of their income, and based on their election, TELUS will
make a matching contribution that ranges between 3% and 8%. Contributions up to the CRA maximum annual contribution
limit are deposited in the participant’s Defined Contribution Plan. Once the CRA maximum annual contribution limit is
reached, participants may continue to make contributions and receive the employer contributions in the Savings Plan. Unlike
participant contributions in the Defined Contribution Plan, which are made on a pre-tax basis, participant and employer
contributions in the Savings Plan are made on an after-tax basis. A participant is always fully vested in the participant’s own
contributions; a participant vests in the Company contributions after the participant’s termination of employment. A participant
pays taxes on any investment gains and losses in the Savings Plan annually.

Ms. Kanu participates in the Defined Contribution Plan and Savings Plan at the 8% contribution level for which she
receives a corresponding 8% company match. Mr. Puritt participated in the Savings Plan prior to 2016, but effective January 1,
2016, Mr. Puritt ceased participation in the Savings Plan and commenced participation in the registered defined benefit plan and
the SRA. Ms. Tyfting ceased participation in the Savings Plan effective January 1, 2020.

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The following table provides information regarding Mr. Puritt’s, Ms. Kanu’s and Ms. Tyfting’s benefits under the
Savings Plan as of December 31, 2022, disclosed pursuant to Item 402(i) of Regulation S-K of the Securities Act.

Aggregate Aggregate
Executive Registrant Earnings in Aggregate Balance at
Contributions Contributions Last Fiscal Withdrawals/ Last Fiscal
in Last Fiscal in Last Fiscal Year Distributions Year-End
Name Year ($) Year ($)(1) ($)(2) ($) ($)
Jeff Puritt — — (65,979) — 312,360 (3)

Vanessa Kanu 34,178 (4)

34,178 (4)
(4,351) — 117,568 (5)

Marilyn Tyfting — — (29,593) — 140,553 (6)

_________________________________________________
(1) Represents TELUS contributions under the Savings Plan.

(2) Represents aggregate earnings based on investment performance.

(3) This value is converted from CAD $422,108 to USD using an exchange rate on December 30, 2022, of $0.74.

(4) This value is converted from CAD $46,186 to USD using an exchange rate on December 30, 2022, of $0.74.

(5) This value is converted from CAD $238,597 to USD using an exchange rate on December 30, 2022, of $0.74.

(6) This value is converted from CAD $158,875 to USD using an exchange rate on December 30, 2022, of $0.74.

Summary of NEO Employment and Separation Agreements

We have entered into employment agreements with Mr. Puritt and Ms. Kanu, respectively, and offers of employment with each
of our other NEOs. Each employment agreement has an indefinite term. The material terms of each of our NEO employment
agreements follow:

Jeff Puritt

On May 1, 2018, we entered into an employment agreement with Mr. Puritt setting forth the terms and conditions of his
employment as our President and Chief Executive Officer, which was amended on June 18, 2019. Mr. Puritt’s employment
agreement provides for (1) a base salary (currently $850,000); (2) an annual incentive bonus target of 100% of his annual base
salary in 2018, and thereafter, an annual incentive bonus target as determined by the chair of the board of directors, in
consultation with shareholders (currently 150%); (3) participation in the MIP; (4) opportunity to earn an additional annual
allowance of $25,000; (5) certain perquisites, including reimbursement of moving and legal expenses related to his employment
agreement up to $250,000, and annual membership fees for professional associations, other business-related expenses and a
vehicle allowance; (6) participation in other benefit plans of the Company; and (7) continued participation in the DB Plan and
SRA.

In the event that Mr. Puritt’s employment is terminated by the Company without just cause, he will be entitled to a
lump-sum severance payment equal to 18 months of his then-current base salary, as well as continued benefits, COBRA
premium coverage and continued participation in the TELUS pension plans for such period of time. If at any time during the
18 months following the termination date, Mr. Puritt’s age plus years of service equals at least 80, then all of Mr. Puritt’s equity
in the MIP will continue to vest and be paid out according to the original schedule set forth in the employment agreement and
subject to the criteria established in the MIP. Applying this formula, if Mr. Puritt’s employment is terminated without just
cause, then his age plus years of service will be equal to 80 and his pension will be deemed fully vested. Mr. Puritt is also
entitled to certain severance benefits upon termination due to disability. Mr. Puritt’s employment agreement includes certain
non-competition and non-solicitation restrictive covenants during employment and one-year post-termination of employment,
as well as perpetual confidentiality covenants. All severance benefits are subject to the execution and non-revocation of a
general release.

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Following the initial public offering, Mr. Puritt and TELUS agreed that Mr. Puritt would hold for specified periods up
to a maximum of 2,721,295 of our subordinate voting shares issuable to Mr. Puritt in connection with equity awards granted to
him between 2016 through our initial public offering, less the number of subordinate voting shares withheld to cover the
exercise price, taxes or fees due upon the exercise or vesting of such awards. The holding periods will expire with respect to
20% of the subordinate voting shares received upon exercise of long-term incentive awards (including Options), equity-settled
Phantom Options or otherwise held as of the second anniversary of our initial public offering, 60% on the third anniversary of
our initial public offering, and 100% on the fourth anniversary of our initial public offering, provided that, in each case, the sale
of subordinate voting shares following the expiration of the applicable holding periods is subject to our share ownership
guidelines and our Insider Trading Policy. The arrangement provides Mr. Puritt with certain rights to participate in registered
offerings we undertake and a put right to cause TELUS to acquire at fair market value subordinate voting shares following the
expiration of the applicable holding period, to the extent not previously sold. In the event that Mr. Puritt’s employment is
terminated by the Company without cause or due to death or disability, all holding requirements will lapse, and Mr. Puritt may
exercise a put right for TELUS within 12 months of such termination. In the event of Mr. Puritt’s resignation, retirement or
termination of employment by the Company with cause, all holding requirements, offering rights and put rights will lapse.

Vanessa Kanu

We entered into an employment agreement with Ms. Kanu setting forth the terms and conditions of her employment as our
Chief Financial Officer, effective September 7, 2020. Ms. Kanu’s employment agreement provides for (1) a base salary
(currently CAD $633,014); (2) an annual incentive bonus target (70% in 2022 and 60% in 2021) of her annual base salary, and
for 2020 only, the annual incentive compensation award will be no less than CAD $210,000 (70% of the target award);
(3) participation in the MIP and 2021 LTIP; (4) a signing bonus of CAD $500,000 (subject to repayment by Ms. Kanu if she
breaches her employment agreement or the restrictive covenants to which she is bound or engages in conduct constituting just
cause); (5) certain perquisites, including reimbursement of annual membership fees for professional associations and other
business-related expenses; and (6) participation in other benefit plans of the Company, including the Defined Contribution Plan.
Under her employment agreement, Ms. Kanu is also entitled to receive a grant of long-term incentive compensation with a grant
value of $1,200,000 and a grant of phantom restricted share units with a grant value of $750,000.

In the event that Ms. Kanu’s employment is terminated by the Company without just cause, she will be entitled to a
lump-sum severance payment equal to 12 months of her then-current base salary, as well as continued health benefits and
continued employer contributions to the Defined Contribution Plan for 12 months. Ms. Kanu is also entitled to exercise any
rights with respect to equity awards arising as a result of her termination of employment pursuant to the express terms of the
applicable equity plan. Ms. Kanu’s employment agreement includes certain non-competition and non-solicitation restrictive
covenants during employment and one-year post-termination of employment, as well as perpetual confidentiality covenants. All
severance benefits are subject to the execution and non-revocation of a general release.

Maria Pardee

On February 22, 2021 we entered into an offer of employment with Ms. Pardee setting forth the terms and conditions of her
employment as our Chief Commercial Officer. Ms. Pardee’s offer letter provides for (1) a base salary (currently $450,000);
(2) an annual incentive bonus target (currently 70%) of her annual base salary; (3) participation in the LTIP; (4) participation in
other benefit plans of the Company; and (5) a signing bonus of $250,000. Under her employment agreement, Ms. Pardee was
also entitled to receive an annual payment of $75,000 in the fourth quarter of 2021 and 2022; and for the 2021 and 2022
performance years, a bonus up to a maximum of $100,000, based on the achievement of annual net new sales target on a
prorated basis for achievement of or exceeding 75% of target at the Company’s sole and absolute discretion. Ms. Pardee was
also entitled to receive an initial grant of long-term incentive compensation of restricted share units and performance share units
with a total grant value of $1,000,000.

In the event that Ms. Pardee’s employment is terminated by the Company without just cause (and not in response to a
notice of resignation), she will be entitled to a gross lump-sum severance payment equal to six months of her then-current base
salary, plus one additional month of base salary for each complete calendar year of service performed by Ms. Pardee up to a
maximum termination payment equal to a period of 18 months, as well as a lump-sum payment equal to the Company’s
contributions to her health benefits for such period of time. The base salary calculation includes Ms. Pardee’s base salary at the
time of termination and her monthly average performance bonus earnings based upon the previous four performance bonus cash
payments as of the date of termination. Ms. Pardee’s employment agreement includes certain non-competition and non-
solicitation restrictive covenants during employment and one-year post-termination of employment, as well as confidentiality
covenants. All severance benefits are subject to the execution and non-revocation of a general release.

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Marilyn Tyfting

On August 18, 2015, we entered into an offer of employment with Ms. Tyfting setting forth the terms and conditions of her
employment as our Senior Vice President and Chief Corporate Officer. Ms. Tyfting’s offer letter provides for (1) a base salary
(currently CAD $474,008); (2) an annual incentive bonus target (70% in 2022 and 60% in 2021) of her annual base salary;
(3) participation in the MIP; (4) participation in other benefit plans of the Company; (5) an initial grant of CAD $250,000 under
the MIP; (6) eligibility to participate in a TELUS management performance share unit plan; and (7) certain perquisites,
including a Company leased vehicle with a capital cost allowance of CAD $40,000 or a vehicle allowance (currently CAD
$1,250) per month, paid parking, executive home office equipment, a telecommunications products and services discount and
participation in the health assessment program.

In the event that Ms. Tyfting’s employment is terminated by the Company without just cause, she will be entitled to a
lump-sum severance payment equal to 18 months of her then-current base salary, as well as continued health benefits for such
period of time. Ms. Tyfting is also entitled to exercise any rights arising as a result of her termination of employment pursuant
to the express terms of the MIP and the TELUS management performance share unit plan and any applicable award agreement
thereunder. Ms. Tyfting’s employment agreement includes certain non-competition and non-solicitation restrictive covenants
during employment and one-year post-termination of employment, as well as confidentiality covenants. All severance benefits
are subject to the execution and non-revocation of a general release.

Michael Ringman

On May 17, 2012, we entered into an offer of employment with Mr. Ringman setting forth the terms and conditions of his
employment as our Vice President Information Technology. Mr. Ringman’s offer letter provides for (1) an initial base salary
(currently $350,000); (2) an annual incentive bonus target (currently 60%) of his annual base salary; (3) participation in the
MIP; (4) participation in other benefit plans of the Company; and (5) an initial grant of $40,000 under the MIP upon the
completion of six months of employment.

In the event that Mr. Ringman’s employment is terminated by the Company without just cause (and not in response to
a notice of resignation), he will be entitled to a gross lump-sum payment equal to six months of base salary, plus one additional
month of base salary for each complete calendar year of service performed by Mr. Ringman, up to a maximum termination
payment equal to a period of 18 months, as well as a lump-sum payment equal to the Company’s contributions to his health
benefits for such period of time. The base salary calculation includes Mr. Ringman’s base salary at the time of termination and
his monthly average performance bonus earnings based upon the previous four performance bonus cash payments as of the date
of termination. All severance benefits are subject to the execution of a general release.

Severance on Termination of Employment

Employment of an NEO may be terminated by any of the following means: resignation by the executive, termination by the
Company for just cause, termination by the Company without just cause, the retirement of the executive or disability or death of
the executive. Severance entitlements are set out in individual NEO employment agreements and the LTIP. See “—Summary of
NEO Employment and Separation Agreements,” “—Potential Payments Upon Termination or Change-in-Control” and “—
Omnibus Long-Term Incentive Plan (LTIP)” for more information regarding NEO severance entitlements.

Change of Control

The LTIP contains change of control provisions (as defined in the LTIP and below in “—Omnibus Long-Term Incentive Plan
(LTIP)—Change of Control”). Upon a change of control of the Company, the board of directors may take one or more of the
following actions: (1) arrange for the Options to be assumed by, or similar options to be substituted by, the bidder or a
continuing entity, subject to satisfying certain stated criteria; (2) accelerate the vesting of the Options; (3) make a determination
as to the market price for the purpose of further actions with respect to the Options; (4) arrange for cash or other compensation
in exchange for a surrender of any Options; or (5) make any other determinations as appropriate. If the board of directors does
not accelerate unvested awards upon a change of control of the Company, then for any participant whose employment is
terminated without just cause within 12 months of the change of control, all unvested Options and RSUs will vest on the
termination date and be exercisable for 90 days following termination. For more information on the change of control
provisions see “—Potential Payments Upon Termination or Change-in-Control” and “—Omnibus Long-Term Incentive Plan
(LTIP)—Change of Control.”

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Confidentiality, Non-Compete and Non-Solicit

Each NEO is subject to a prohibition on the improper disclosure and use of confidential information and a one-year non-
solicitation restriction following termination. Certain NEOs are also subject to a one-year non-compete restriction following
termination.

The payments and benefits described in the table in “—Potential Payments Upon Termination or Change-in-Control”
are subject to each NEO’s compliance with the post-employment obligations in each of their executive employment
agreements, including compliance with the confidentiality provisions, which are not limited in time. A breach of these
contractual provisions will result in the immediate termination of any and all entitlement of the NEO to continue to be
compensated, except and only to the extent that compensation is owed under applicable law.

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Potential Payments Upon Termination or Change-in-Control

In accordance with the compensation treatment under the various termination events outlined under “—Severance on
Termination of Employment” and “—Change of Control” the following table sets out the potential incremental amounts that
may be payable to each NEO, assuming a termination date of December 30, 2022 (based on a closing Company share price of
$19.79 on December 30, 2022). The actual amounts that would be paid to any other NEO can only be determined at the time of
an actual termination of employment and would vary from those set forth in the following table.
Annual Cash Long-Term Incentives
Continued
Pension
Base Salary Bonus Options RSUs PSUs Benefits Accrual Total
($) ($) ($) ($) ($) ($) ($) ($)
Jeff Puritt
Resignation(1) 212,500 (2) — — — — — — 212,500
Termination without just cause(4) 1,275,000 (3) — — 1,795,110 1,844,565 41,395 (5) 732,156 (6) 5,688,226
Retirement(7) — — — 7,090,579 4,562,723 — — 11,653,302
Disability(8) 1,275,000 (8) — — 7,090,579 4,562,723 41,395 (5) 404,854 (9) 13,374,551
Death(10) — — — 7,090,579 4,562,723 — — 11,653,302
Termination with just cause — — — — — — — —
Change of control(11) — — — 7,090,579 4,562,723 — — 11,653,302
Vanessa Kanu
Resignation(1) — — — — — — — —
Termination without just cause(4) 468,430 (12) — — 594,343 305,167 1,646 (5) 11,389 (13) 1,380,975
Retirement(7) — — — — — — — —
Disability(8) — — — 2,178,958 830,626 — — 3,009,584
Death(10) — — — 2,178,958 830,626 — — 3,009,584
Termination with just cause — — — — — — — —
Change of control(11) — — — 2,178,958 830,626 — — 3,009,584
Maria Pardee
Resignation(1) — — — — — — — —
Termination without just cause(4) 262,500 (14) 120,212 (15) — 155,520 292,650 7,036 (16) — 837,918
Retirement(7) — — — — — — — —
Disability(8) — — — 629,500 714,320 — — 1,343,820
Death(10) — — — 629,500 714,320 — — 1,343,820
Termination with just cause — — — — — — — —
Change of control(11) — — — 629,500 714,320 — — 1,343,820
Marilyn Tyfting
Resignation(1) — — — — — — — —
Termination without just cause(4) 526,149 (3) 217,758 (17) — 411,303 226,694 2,469 (5) 148,814 (18) 1,533,187
Retirement(7) — — — — — — — —
Disability(8) — — — 1,510,531 595,600 — 735,486 (19) 2,841,617
Death(10) — — — 1,510,531 595,600 — — 2,106,131
Termination with just cause — — — — — — — —
Change of control(11) — — — 1,510,531 595,600 — — 2,106,131
Michael Ringman
Resignation(1) — — — — — — — —
Termination without just cause(4) 466,667 (14) 188,403 (15) — 287,910 191,666 25,060 (16) 1,159,706
Retirement(7) — — — — — — — —
Disability(8) — — — 1,069,511 476,286 — — 1,545,797
Death(10) — — — 1,069,511 476,286 — — 1,545,797
Termination with just cause — — — — — — — —
Change of control(11) — — — 1,069,511 476,286 — — 1,545,797

_________________________________________________
(1) Upon a voluntary resignation by an NEO, any unvested and vested award or any portion thereof will expire on the
termination date.

(2) Payment of a maximum of three months’ base salary will be provided if Mr. Puritt resigns but the Company elects to
terminate his employment before the expiration of the notice period.

(3) Payment of a maximum of 18 months’ base salary at the time of termination.

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(4) Upon termination of employment without just cause, all unvested PSUs and RSUs, will vest pro-rata. Such pro-rata
number is determined by multiplying the total number of PSUs and RSUs, by a fraction where the numerator is the
total number of calendar months between the applicable grant date of the award and the termination date, and the
denominator is the number of total calendar months (with any partial month counting as a full month for this purpose)
in the original performance period.

(5) Mr. Puritt and Ms. Tyfting are entitled to a maximum of 18 months of continued health benefits, and Ms. Kanu is
entitled to a maximum of 12 months of continued health benefits.

(6) Pursuant to his employment agreement, if Mr. Puritt’s employment is terminated without just cause, his pension will
be deemed fully vested, and he is entitled to 18 months of continued vesting service under the DB Plan and SRA. This
value is converted from CAD $989,400 to USD using an exchange rate on December 30, 2022, of $0.74.

(7) Upon termination of employment due to disability of an NEO or an NEO’s retirement, all awards held by the NEO will
continue to vest and be settled or exercised as if the NEO remained an active employee of the Company. Mr. Puritt is
retirement eligible under the MIP as of June 1, 2020.

(8) Payment of a maximum of 18 months’ base salary at the time of termination. However, if Mr. Puritt receives alternate
income during any portion of the 18-month period, the Company’s payment obligations will cease.

(9) Upon disability, Mr. Puritt is entitled to continue accruing service until his retirement date under the DB Plan and the
SRA. For purposes of this table, we have calculated the incremental benefit to Mr. Puritt assuming retirement at the
later of age 60 and January 1, 2024. This value is converted from CAD $547,100 to USD using an exchange rate on
December 30, 2022, of $0.74.

(10) Upon the death of an NEO, all unvested Options, RSUs, and PSUs will immediately vest.

(11) Upon termination of employment without just cause within 12 months following a change of control (as defined in the
LTIP), all unvested Options, RSUs and PSUs will vest on the termination date, and the RSUs and PSUs will be settled
in accordance with the LTIP.

(12) Payment of a maximum of 12 months’ base salary at the time of termination. This value is converted from CAD
$633,014 to USD using an exchange rate on December 30, 2022, of $0.74.

(13) Ms. Kanu is entitled to 12 months of employer contributions to the Defined Contribution Plan. This value is converted
from CAD $15,390 to USD using an exchange rate on December 30, 2022 of $0.74.

(14) Payment equal to six months’ base salary for plus one month of base salary for each completed year of service, up to a
maximum total of 18 months.

(15) Payment equal to six months’ severance bonus (the monthly bonus in an amount that is the average performance bonus
earned by the NEO in the past four years, or less as applicable) plus one month of such severance bonus for each
completed year of service, up to a maximum of 18 months.

(16) Payment equal to six months of Company contributions to health benefits (excluding short-term and long-term
disability), plus one month for each completed year of service, up to a maximum total of 18 months.

(17) Payment equal to 18 months’ severance bonus (the monthly bonus in an amount that is the average performance bonus
earned by Ms. Tyfting in the past two years).

(18) Ms. Tyfting is entitled to 18 months of continued vesting service under the DB Plan and the SERP 2020. This value is
converted from CAD $201,100 to USD using an exchange rate on December 30, 2022, of $0.74.

(19) Upon disability, Ms. Tyfting is entitled to continue accruing service until her retirement date under the DB Plan and
the SERP 2020. For purposes of this table, we have calculated the incremental benefit to Ms. Tyfting assuming
retirement at age 60. This value is converted from CAD $993,900 to USD using an exchange rate on December 30,
2022, of $0.74.

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Company Equity-Based Compensation Plans at a Glance

2020 Management Incentive Plan Awards

In 2016, the human resources committee approved the Omnibus Long-Term Incentive Plan (MIP) under which cash and equity-
settled LTI awards were granted to our senior leaders, including our NEOs. Beginning in 2016, a portion of the shares under the
MIP were reserved for grants of LTI awards over a five-year period. From 2016 through 2019, each annual allocation was
granted in the form of Options (for 2016) and otherwise was granted in TI phantom options (Phantom Options), TI phantom
restricted share units (TI Phantom RSUs) and TELUS phantom restricted share units (TELUS Phantom RSUs). No new grants
are currently being awarded under the MIP.

Due to the timing of our initial public offering and other considerations, our human resources committee decided, upon
the recommendation of our Compensation Consultant, to grant the final tranche of the 2020 MIP (2020 MIP Awards) in respect
of 2020 performance on the effective date of the initial public offering, on February 2, 2021. Despite the delay, the 2020 MIP
Awards approximated the annual grant each executive otherwise would have received in December 2020 under the MIP, after
taking into account the timing of the initial public offering. As such, the aggregate value of the 2020 MIP Awards approximated
the remainder of the MIP pool.

2021 Omnibus Long-Term Incentive Plan

In connection with our initial public offering in February 2021, our board of directors adopted, and our shareholders approved,
the 2021 LTIP in order to provide equity awards to employees, non-employee directors and selected third-party service
providers of the Company and its subsidiaries and affiliates. Under the 2021 LTIP, the Company may grant awards of restricted
shares, restricted share units, performance shares, performance share units, deferred share units, share options, share
appreciation rights, cash-based awards and other forms of equity-based or equity-related awards. The human resources
committee administers the 2021 LTIP and has the discretion to select the individuals who receive awards and determine the
form and terms of the awards, including any vesting, exercisability, payment or other restrictions. The maximum number of
shares that may be delivered under the 2021 LTIP is 18,651,120 of our authorized but unissued shares. The board of directors
has the authority to amend, suspend or terminate the 2021 LTIP. No amendment, suspension or termination will be effective
without the approval of the Company’s stockholders if such approval is required under applicable laws, rules and regulations.
Unless sooner terminated by our board of directors, the 2021 LTIP will terminate ten years from the Company’s initial public
offering.

2021 Employee Share Purchase Plan

We adopted an employee share purchase plan (2021 ESPP) pursuant to which our eligible employees and the eligible
employees of our participating subsidiaries and affiliates may elect to acquire our subordinate voting shares at an up to 15%
discount from the prevailing fair market value. The 2021 ESPP is designed with two components so that the Company may
grant purchase rights to U.S. employees that are intended to be tax-qualified under Section 423 of the Internal Revenue Code,
and to non-U.S. employees that are not intended to be tax-qualified under Section 423 of the Internal Revenue Code. The total
number of shares that may be purchased under the 2021 ESPP is 5,328,891 of our shares.

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Director Compensation

We have implemented a formal policy pursuant to which our directors are eligible to receive the following cash retainers and
equity awards, effective as of the 2022 fiscal year:
Cash Retainer Equity Awards
Role ($) ($)
Annual Retainer for Board Membership
Annual service on the board of directors - independent directors 80,000 150,000
Annual service on the board of directors - TELUS-employed directors — 230,000
Additional Annual Retainer for Committee Membership
Annual service as chair and vice-chair of the board of directors (1) 150,000 200,000
Annual service as chair of the audit committee — 25,000
Annual service as chair of the human resources committee — 20,000
Annual service as chair of the governance and nominating committee — 15,000
________________________________________
(1) The chair of the board of directors does not receive any incremental compensation for also serving as a committee
chair.

Compensation paid to our directors is paid in USD for U.S. resident directors and in CAD for Canadian resident directors. Our
TELUS-employed directors receive their compensation fully in the form of RSUs that vest on the second anniversary of the
grant date. For 2022, our independent directors were Olin Anton, Sue Paish, Carolyn Slaski and Sandra Stuart. Our independent
directors’ equity awards vest in full on the first day of the open trading window period following the first anniversary of the
grant date. Kenneth Cheong, our director who was a BPEA appointee but retired from our Board effective February 9, 2023,
did not receive any compensation for his services as a board member during 2022.

Cash retainer payments to our eligible directors are made quarterly and adjusted proportionately for appointments or
resignations within any quarter. The annual equity grant occurs when the board makes its annual grants in the ordinary course
and said grant generally vests in full upon the first anniversary of the grant date. A new director elected at a date other than an
annual general meeting receives a pro-rated equity grant during the director’s first year on the board.

Following consultation with our Compensation Consultant, we made changes to our director and officer compensation
practices in May 2022 to better align with our peers. These changes included an increase to the annual retainer payable to our
directors and an increase to the additional annual retainer paid to both our audit committee chair and our governance and
compensation committee chair.

Our directors who are employees of TELUS, other than Mr. Entwistle, are eligible to receive an annual grant of RSUs
with a grant date fair market value equal to CAD $230,000, except that an aggregate of CAD $245,000 will be granted to the
chair of the Governance and Nominating Committee. These awards will cliff vest on the second anniversary of the date of
grant, subject to the TELUS employee director’s continued employment with TELUS in good standing. Upon termination of
employment by TELUS without cause or due to death or disability, any unvested RSUs granted to TELUS employee directors
will vest pro rata based on service between the date of grant and the applicable termination date. Upon retirement, unvested
RSUs will continue to vest and be settled in accordance with their original vesting schedule. Upon resignation or termination of
employment by TELUS for cause, all unvested RSUs will be forfeited. For 2022, our directors who are employees of TELUS
were Darren Entwistle, Doug French, Tony Geheran and Stephen Lewis. Mr. Entwistle did not receive any cash retainer or
equity awards for serving on the Board.

In May 2021, our human resources committee, in consultation with our Compensation Consultant, approved (1) an
increase in Mr. Blair’s combined cash and equity compensation from CAD $350,000 to CAD $500,000, to be effective in 2023,
granted as 40% cash and 60% RSUs and (2) an award of RSUs with a grant date fair market value equal to CAD $1,050,000
pursuant to two installments as follows: 8,536 RSUs were granted in May 2021 with a grant date fair market value of CAD
$300,000, and 22,461 RSUs were granted to Mr. Blair in March 2022 with a grant date fair market value equal to CAD
$750,000, each with a one-year vesting schedule. Mr. Blair was not present for the portion of the human resources committee
meeting during which these decisions were made.

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Director Compensation Table

The following table summarizes the compensation earned by our directors for the year ending December 31, 2022.

Fees earned
or paid in cash Stock Awards Total
Name ($) ($) ($)
Josh Blair 111,000 (1) 750,537 (2) 861,537
Olin Anton 59,200 (4) 137,569 (3) 196,769
Doug French 181,120 (3) 181,120
Tony Geheran 192,965 (3) 192,965
Stephen Lewis 181,120 (3) 181,120
Sue Paish 59,200 (4) 117,914 (3) 177,114
Carolyn Slaski 80,000 150,004 (3) 230,004
Sandra Stuart 59,200 (4) 117,914 (3) 177,114
_________________________________________________
(1) Value converted from CAD $150,000 to USD using an exchange rate on December 30, 2022, of $0.74.

(2) Amount includes: (a) CAD $200,000 for Mr. Blair’s 2022 board service (including additional fees for the vice-chair);
and (b) CAD $750,000 representing the grant date fair value of RSUs granted in respect to the second installment of an
increase that was approved in May 2021, both of which will vest on March 21, 2023. Grant date fair value amounts are
recognized in accordance with IFRS. The number of RSUs granted was based on the market value of our subordinate
voting shares on the grant date. Amounts in CAD are converted into USD at the time of grant.

(3) Amounts include: (a) RSUs granted on March 21, 2022 in respect of 2022 service for Mr. Anton that vest on March
21, 2023 with the grant date fair value of CAD $140,000, and RSUs granted on June 20, 2022 that vest on June 20,
2023 with the grant date fair value of CAD $35,000; (b) for our non-employee directors, RSUs granted in respect of
2022 service that vest on March 21, 2023 with the following grant date fair values: CAD $120,000 for Ms. Paish, USD
$120,000 for Ms. Slaski and CAD $120,000 for Ms. Stuart, and RSUs granted on June 20, 2022 that vest on June 20,
2023 with the following grant date fair values: CAD $30,000 for Ms. Paish, USD $30,000 for Ms. Slaski and CAD
$30,000 for Ms. Stuart; and (c) for our directors who are employees of TELUS, RSUs granted in respect of 2022
service that vest on March 21, 2024 with the following grant date fair values: CAD $200,000 for Mr. French, CAD
$215,000 for Mr. Geheran, CAD $200,000 for Mr. Lewis, and RSUs granted on June 20, 2022 that vest on June 20,
2024 with the following grant date fair values: CAD $30,000 for Mr. French, CAD $30,000 for Mr. Geheran, CAD
$30,000 for Mr. Lewis. Grant date fair value amounts are recognized in accordance with IFRS. The number of RSUs
granted was based on the market value of our subordinate voting shares on each grant date. Amounts in CAD are
converted into USD at the time of grant.

(4) Value converted from CAD $80,000 to USD using an exchange rate on December 30, 2022, of $0.74.

We reimburse all reasonable out-of-pocket expenses incurred by directors for their attendance at meetings with the board of
directors or any committee thereof. Mr. Blair is entitled to an annual healthcare membership under TELUS’ benefit plans. Our
Canadian directors (Messrs. Blair and Anton and Mmes. Paish and Stuart) were entitled to reimbursement for telecom benefits
for the home (for work and personal use), and all of the directors are entitled to business travel accident insurance and
reimbursement for participation in director education programs up to $5,000 per year, none of which exceed $10,000 in the
aggregate in 2022. Thus, such benefits are not included in the “Director Compensation Table.” Total director compensation will
be targeted at the 50th percentile of comparator group that we will select. Each non-employee director will also be entitled to
reimbursement for certain services and products offered by the Company, subject to a specified cap.

Director Share Ownership Guidelines

Pursuant to our Board Policy Manual each non-employee director is required to attain a level of share ownership of at least five
times their annual cash retainer for board membership within five years of their initial election to the board of directors. Shares
and deferred share units count toward the ownership guidelines. To ensure compliance with the guidelines, non-employee
directors are required to continue to hold 50% of the net after-tax value of the Company shares received from any equity award
until the ownership criteria are met.

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Equity Compensation Plan Information

(c)
(a) (b) Number of securities
Number of securities Weighted-average remaining available
to be issued upon exercise price per for future issuance
exercise of outstanding options, share of outstanding options, under equity compensation
warrants and rights warrants and rights plans (excluding securities
Plan Category (#) ($) reflected in column A (#)
Equity compensation plans
approved by security holders 5,215,194(1) $10.47(2) 17,714,452(3)
Equity compensation plans not
approved by security holders — — —
Total 5,215,194 $10.47 17,714,452
______________________________________
(1) Consists of the following outstanding awards: under the 2021 LTIP, 1,218,796 RSUs, 387,025 PSUs (assuming target
level of achievement), 454,176 Options and 1,058,615 cash-denominated awards that can be settled in Shares at the
Company’s election, calculated assuming maximum performance is achieved and the Company’s closing share price
on December 30, 2022; and 2,096,582 Options under the MIP.

(2) Weighted-average exercise price includes Options but excludes RSUs and PSUs as they do not have an exercise price.

(3) Consists of 5,119,040 shares available for issuance under the 2021 ESPP and 12,595,412 shares available for issuance
under the 2021 LTIP.

C. Board Practices

Corporate Governance

The NYSE listing requirements include certain accommodations in the corporate governance requirements that allow foreign
private issuers, such as us, to follow “home country” corporate governance practices in lieu of the otherwise applicable
corporate governance standards of the NYSE. The application of such exemptions requires that we disclose any significant
ways in which our corporate governance practices differ from the NYSE listing requirements that we do not follow. We intend
to continue to follow certain Canadian corporate governance practices. We do not intend to follow rule 312.03 of the NYSE
listing requirements that requires that shareholder approval be required for certain events, such as the establishment of equity-
based compensation plans and issuance of common shares or securities convertible into or exercisable for common shares to
certain related parties. Neither Canadian securities laws nor British Columbia corporate law require shareholder approval for
such transactions, except where such transactions constitute a “related party transaction” or “business combination” under
Canadian securities laws or where such transaction is structured in a way that requires shareholder approval under the BCBCA
and the TSX may require shareholder approval be obtained in certain cases, in which case, we intend to follow our home
country requirements.

Except as stated above, we intend to comply with the rules generally applicable to U.S. domestic companies listed on
the NYSE. We may in the future decide to use other foreign private issuer exemptions with respect to some of the other NYSE
listing requirements. Following our home country governance practices, as opposed to the requirements that would otherwise
apply to a company listed on the NYSE, may provide less protection than is accorded to investors under the NYSE listing
requirements applicable to U.S. domestic issuers. See “Item 3D—Risk Factors—Subordinate Voting Shares Risks —As a
foreign private issuer, we are not subject to certain U.S. securities law disclosure requirements that apply to a domestic U.S.
issuer, which may limit the information publicly available to our shareholders”.

The Canadian Securities Administrators have issued corporate governance guidelines pursuant to National
Policy 58-201 Corporate Governance Guidelines (Corporate Governance Guidelines), together with certain related disclosure
requirements pursuant to National Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101). The
Corporate Governance Guidelines are recommended as “best practices” for issuers to follow. We recognize that good corporate
governance plays an important role in our overall success and in enhancing shareholder value and, accordingly, we have
adopted certain corporate governance policies and practices which reflect our consideration of the recommended Corporate

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Governance Guidelines. The disclosure set out below includes disclosure required by NI 58-101 describing our approach to
corporate governance in relation to the Corporate Governance Guidelines.

Board Composition

Under our articles, our board of directors will consist of a number of directors as determined from time to time by the directors.
Currently, our board has 11 members, four of whom are independent. Of these independent members, one is a nominee selected
by TELUS. Under the terms of reference for our board of directors, unless otherwise required by applicable laws, our articles or
the shareholders’ agreement, the board of directors will not exceed 15 directors. The terms of office of each of our directors
expires on the date of the next annual meeting of our shareholders. Non-management directors are subject to term limits of 15
years.

The composition of our board of directors will be subject to the rights of TELUS and BPEA under the shareholders’
agreement providing for certain director nomination rights. The shareholders’ agreement provides that we agree to nominate
individuals designated by TELUS as directors representing a majority of the board for as long as TELUS continues to
beneficially own at least 50% of the combined voting power of our outstanding multiple voting shares and subordinate voting
shares. Should TELUS cease to own at least 50% of the combined voting power of our multiple voting shares and subordinate
voting shares, we agree to nominate to our board such number of individuals designated by TELUS in proportion to its
combined voting power for so long as TELUS continues to beneficially own at least 5% of the combined voting power of our
outstanding multiple voting shares and subordinate voting shares, subject to a minimum of at least one director. TELUS
currently has designated five directors serving on our board.

The shareholders’ agreement also provides that we agree to nominate one individual designated by BPEA as director,
for as long as BPEA continues to beneficially own at least 5% of the combined voting power of our outstanding multiple voting
shares and subordinate voting shares. BPEA currently has designated one director serving on our board.

Under the terms of the shareholders’ agreement, our Chief Executive Officer is required to be nominated to the board
of directors by the Company.

In addition, the shareholders’ agreement provides that for so long as TELUS continues to beneficially own at least
50% of the combined voting power of our multiple voting shares and subordinate voting shares, TELUS will be entitled, but not
obligated, to select the chair of the board and the chairs of the human resources and governance and nominating committees.
The shareholders’ agreement also provides that, so long as TELUS or BPEA, as applicable, is entitled to nominate at least one
individual to our board, it will be entitled, but not obligated, to designate at least one nominee for appointment to each of our
human resources committee and governance and nominating committee. The shareholders’ agreement also provides that so long
as TELUS is entitled to nominate at least one individual to our board, it will be entitled, but not obligated, to designate one
nominee for appointment to our audit committee as long as its nominee to the audit committee is independent. The above-
described committee appointment rights are in each case subject to compliance with the independence requirements of
applicable securities laws and listing requirements of the NYSE and TSX.

For a description of TELUS and BPEA’s right to require us to nominate their designees to our board of directors, see
“Item7B—Related Party Transactions—Our Relationship with TELUS and BPEA—Shareholders’ Agreement”. Subject to the
arrangements described above, nominees for election as directors are recommended to our board of directors by our governance
and nominating committee in accordance with the provisions of applicable corporate law and the terms of reference of our
governance and nominating committee. See “—Committees of the Board of Directors—Governance and Nominating
Committee”.

Our articles provide that a director may be removed with or without cause by a resolution passed by a special majority
comprised of 66 2/3% of the votes cast by shareholders present in person or by proxy at a meeting and who are entitled to vote.
The directors are elected by the shareholders at each annual general meeting of shareholders, and all directors will hold office
for a term expiring at the close of the next annual shareholders meeting or until their respective successors are elected or
appointed. Under the BCBCA and our articles, between annual general meetings of our shareholders, the directors may appoint
one or more additional directors, but the number of additional directors may not at any time exceed one-third of the number of
current directors who were elected or appointed other than as additional directors pursuant to this provision.

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Majority Voting Policy

In accordance with the requirements of the TSX, our board of directors has adopted a majority voting policy to the effect that a
nominee for election as a director of our Company who does not receive a greater number of votes “for” than votes “withheld”
with respect to the election of directors by shareholders shall promptly tender their resignation to the chair of our board of
directors following the meeting of shareholders at which the director was elected. The governance and nominating committee
will consider such offer and make a recommendation to our board of directors whether or not to accept it. In its deliberations,
the governance and nominating committee will consider any stated reasons why shareholders “withheld” votes from the
election of that director, the length of service and the qualifications of the director, the director’s contributions to our company,
the effect such resignation may have on our ability to comply with any applicable governance rules and policies and the
dynamics of the board, and any other factors that the governance and nominating committee considers relevant. Our board of
directors will act on the governance and nominating committee’s recommendation within 90 days following the applicable
meeting of shareholders and announce its decision in a press release, after considering the factors considered by the governance
and nominating committee and any other factors that the board of directors considers relevant. Our board of directors will
accept a resignation except in situations where extenuating circumstances would warrant the director to continue to serve on the
board of directors. Our majority voting policy will apply for uncontested director elections, being elections in which the number
of nominees for election as director is the same as the number of directors to be elected.

Controlled Company Exemption

We have elected to be treated as a “controlled company” under the listing requirements of the NYSE because more than 50% of
the combined voting power of our multiple voting shares and subordinate voting shares is held by TELUS. See “Item 7A—
Major Shareholders”. We intend to rely upon the “controlled company” exemption relating to the board of directors and
committee independence requirements under the NYSE listing requirements until we are no longer eligible or until we
determine otherwise. Pursuant to this exemption, we are exempt from, among other things, the listing requirements that would
otherwise require that our board of directors consist of a majority of independent directors and that our human resources and
governance and nominating committee be composed entirely of independent directors. The “controlled company” exemption
does not modify the independence requirements for the audit committee, and we comply with the requirements of the Exchange
Act, the NYSE listing requirements and applicable Canadian securities laws, which require our audit committee to be
exclusively composed of independent directors.

Director Independence

For purposes of the NYSE listing requirements, an independent director means a person who, in the opinion of our board of
directors, has no material relationship with the Company. Under NI 58-101, a director is considered to be independent if they
are independent within the meaning of Section 1.4 of National Instrument 52-110—Audit Committees (NI 52-110). Pursuant to
NI 52-110, an independent director is a director who is free from any direct or indirect material relationship with us which
could, in the view of our board of directors, be reasonably expected to interfere with the exercise of a director’s independent
judgment.

Our board of directors has undertaken a review of the independence of the directors and considered whether any
director has a material relationship with us that could compromise their ability to exercise independent judgment in carrying out
their responsibilities. Based upon information requested from and provided by each director concerning such director’s
background, employment and affiliations, including family relationships, our board of directors determined that four of our 11
directors are an “independent director” as defined in the NYSE listing requirements and NI 58-101, representing 36% of our
board. In making these determinations, our board of directors considered the current and prior relationships that each director
has with our Company and all other facts and circumstances that our board of directors deemed relevant in determining their
independence, including the beneficial ownership of our shares by each director and the transactions involving them described
in “Item 7B—Related Party Transactions”. The board will assess, on a regular basis and at least annually, the independence of
directors and, based on the recommendation of the governance and nominating committee, will make a determination as to
which members are independent.

Jeffrey Puritt is not considered an independent director as he is our Chief Executive Officer. Josh Blair, the vice-chair
of the Board, is not considered an independent director as he was an employee of TELUS until December 31, 2020. Navin
Arora, Doug French and Tony Geheran are not considered independent directors as they are affiliated with TELUS. TELUS
selected Ms. Stuart, an independent director, to fill one of its nominee positions. Following Mr. Cheong’s resignation as one of
our directors effective February 9, 2023, there are no BPEA nominees on our Board.

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Meetings of Independent Directors and Conflicts of Interest. We take steps to ensure that adequate structures and
processes are in place to permit our board of directors to function independently of management, including for purposes of
encouraging an objective process for nominating directors and determining executive compensation. In 2022, the independent
directors did not meet in the absence of the non-independent directors. Where appropriate, our board of directors holds a
portion of every board meeting without members of management, including Mr. Puritt, who is a director and also our Chief
Executive Officer. Such sessions without the presence of management are presided over by our Vice-Chair, Josh Blair.
Interested parties may communicate any concerns to the Vice-Chair and/or our independent directors through our ethics hotline
at 1-888-265-4112 in North America or by e-mail to www.telus.ethicspoint.com or [email protected].

In addition, our board of directors ensures open and candid discussion among its directors by continuously monitoring
situations where a conflict of interest or perceived conflict of interest with respect to a director may exist. Our board of directors
may determine that it is appropriate to hold meetings excluding a director with a conflict of interest or perceived conflict of
interest or such director may consider that it is appropriate to recuse themselves from considering and voting with respect to the
matter under consideration.

Mandate of the Board of Directors

Our board of directors is responsible for the stewardship of the Company and overseeing the management of our business and
affairs in accordance with the BCBCA, our articles and the shareholders’ agreement. This includes appointing our Chief
Executive Officer and other members of the executive leadership team, considering and approving our objectives and goals and
material changes thereto, approving our strategic plans and monitoring our strategic planning process, strategic plan execution
and corporate performance against our objectives and goals, subject to the terms of the shareholders’ agreement. In addition,
our board also receives and considers recommendations from our various committees with respect to matters such as the
following:

• the compensation of our directors;

• criteria for board and committee membership;

• persons to be nominated for election as directors and to each of the board’s committees; and

• matters relating to our code of ethics and conduct and corporate governance guidelines.

Certain of the actions of the board of directors are subject to the review and approval by TELUS, as our controlling shareholder.
See “Item 7B—Related Party Transactions—Our Relationship with TELUS and BPEA—Shareholders’ Agreement”.

Attendance Record

In 2022, there were 11 meetings of our board of directors. There was 100% director attendance at each of these meetings, with
the exception of only one of our directors, who missed only one meeting and whose attendance was 91%.

Position Descriptions

Our board of directors adopted a written position description for both the Chair and Vice-Chair of the board of directors, which
sets out their key responsibilities, including, among others, contributing to our strategy, providing management and leadership
to the board of directors and facilitating its effective operation, duties relating to setting board meeting agendas, chairing board
and shareholder meetings and director development and communicating with the Chief Executive Officer. The shareholders’
agreement provides that for so long as TELUS continues to beneficially own at least 50% of the combined voting power of our
multiple voting shares and subordinate voting shares, we agree to nominate a director designated by TELUS as the chair of the
board.

Our board of directors adopted a written position description for our Chief Executive Officer which sets out the key
responsibilities of our Chief Executive Officer, including, among other duties: recommending the strategic direction of our
Company to the board of directors and pursuing our Company’s continued development; progression and monitoring annual
business and operational plans and budgets that support our company’s long-term business plans and strategies and leading
their execution; participating in the strategic planning meetings that TELUS convenes; communicating with our board of
directors; and fostering a caring culture.

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These position descriptions are included within the terms of reference for each position, which are included in our
board policy manual.

Other Directorships

Our board has adopted a policy stating that if our directors are employed as chief executive officers, or in other senior executive
positions, on a full-time basis with a public company then they should not serve on the boards of more than two public
companies in addition to our Company’s board. For other directors, those who (i) only have full time employment with non-
public companies, (ii) have full-time employment with public companies but not as chief executive officer or in a senior
executive position or (iii) do not have full time employment, our board has determined that those directors should not serve on
the boards of more than four public companies in addition to our Company’s Board. With respect to our CEO, our board has
determined that the CEO should not serve on the boards of more than two other public companies and should not serve on the
board of any other public company where the chief executive officer of that other company serves on our board. In all cases,
our directors are required to notify the chair of our board (Chair) and the chair of our governance and nominating committee
prior to accepting any directorship with any other company.

Orientation and Continuing Education

We have implemented an orientation program for new directors under which a new director receives a director’s orientation
manual including our key corporate governance documents and other information, meets with the vice-chair of the board and
attends orientation sessions with the Chief Executive Officer and other members of the management team, at which they receive
information and learns about our business purpose, strategic direction, operations and other matters.

Our governance and nominating committee is responsible for overseeing director continuing education designed to
maintain or enhance the skills and abilities of the directors and to help ensure that their knowledge and understanding of our
business remains current.

Term Limits and Mechanisms of Board Renewal

Each non-management director appointed to the board of directors will tender their resignation after serving 15 years on the
board of directors. The governance and nominating committee will consider such resignation and have discretion to recommend
to the board of directors that the term of the resigning director be extended for such period as the governance and nominating
committee deems appropriate, if in our Company’s best interest to do so. Our board of directors has no other automatic
mechanisms of board term renewal. Our governance and nominating committee is responsible for reviewing the composition of
our board of directors to ensure that it is composed of members containing the appropriate skills and expertise to advise us. Our
governance and nominating committee is expected to conduct a process for the assessment of our board of directors, each
committee and each director regarding his, her or its effectiveness and performance, and to report evaluation results to our
Board. See “—Committees of the Board of Directors—Governance and Nominating Committee”.

Committees of the Board of Directors

We have an audit committee, a human resources committee and a governance and nominating committee. Pursuant to the terms
of our shareholders’ agreement, for so long as TELUS continues to beneficially own at least 50% of the combined voting power
of our multiple voting shares and subordinate voting shares, TELUS will be entitled, but not obligated, to select the chairs of the
human resources and governance and nominating committees. Additionally, for so long as TELUS or BPEA, as applicable, is
entitled, but not obligated, to nominate at least one individual to our board, it will be entitled, but not obligated, to designate at
least one nominee for appointment to each of our human resources committee and governance and nominating committee.

The shareholders’ agreement also provides that (i) so long as TELUS or BPEA, as applicable, is entitled to nominate at
least one individual to our board, it will be entitled, but not obligated, to designate one nominee for appointment to our audit
committee for 90 days following the completion of our initial public offering, and (ii) TELUS will continue to have such right
thereafter, as long as it is entitled to nominate at least one individual to our board and as long as its nominee to the audit
committee is independent. The above-described committee appointment rights are in each case subject to compliance with the
independence requirements of applicable securities laws and listing requirements of the NYSE and TSX.

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Audit Committee

Our audit committee is comprised of Carolyn Slaski and Sandra Stuart and chaired by Olin Anton. Our board of directors has
determined that Olin Anton, Carolyn Slaski and Sandra Stuart each meet the independence requirements for directors, including
the heightened independence standards for members of the audit committee under Rule 10A-3 under the Exchange Act and
NI 52-110. Our audit committee now consists exclusively of independent directors within the meaning of NI 52-110 and the
NYSE listing requirements . Our board of directors has determined that each of our audit committee members is “financially
literate” within the meaning of NI 52-110 and the NYSE listing requirements and Olin Anton is an “audit committee financial
expert” as defined by Rule 10A-3 under the Exchange Act. For a description of the education and experience of each member
of the audit committee, see “Item 6A—Our Directors”.

Our board of directors has established written terms of reference setting forth the purpose, composition, authority and
responsibility of the audit committee, consistent with the NYSE listing requirements, the rules of the SEC and NI 52-110 and
our audit committee will review the terms of reference annually. The principal purpose of our audit committee is to assist our
board of directors in discharging its oversight of, among other things:

• the integrity of our accounting and financial reporting;

• our financial and accounting policies and our compliance with them and emerging accounting issues and their
potential impact on our Company’s financial reporting;

• the independence, qualifications, appointment, compensation and performance of our internal and external
auditors and the pre-approval of all audit, audit-related and non-audit services;

• our disclosure controls and procedures and internal control over financial reporting, as well as our whistleblower
and ethics processes;

• review and approval or ratification of related-party transactions, including transactions with TELUS;

• our compliance with applicable legal and regulatory requirements and Company policies, such as security,
privacy, anti-bribery and anti-corruption compliance; and

• our enterprise risk management processes, including business continuity, disaster recovery planning and external
threat and hazard monitoring, credit worthiness, liquidity, tax strategy, treasury plans and financial policy.

The audit committee also has the authority in its sole discretion and at our expense, to engage and set the compensation of
outside legal, accounting or other advisors as necessary to assist in the performance of its duties and responsibilities.

Human Resources Committee

Our human resources committee is comprised of Sue Paish and Carolyn Slaski and chaired by Josh Blair. As a “controlled
company”, our human resources committee is not required to be comprised entirely of independent directors. For a description
of the background and experience of each member of our human resources committee, see “—Our Directors”.

Our board of directors has established written terms of reference setting forth the purpose, composition, authority and
responsibility of the human resources committee consistent with the NYSE listing requirements and the rules of the SEC and
our human resources committee will review the terms of reference annually. The human resources committee’s purpose is to
assist the board in its oversight of executive compensation philosophy and guidelines, succession-planning and certain
compensation and performance rating decisions. The principal responsibilities and duties of the human resources committee
include, among other things:

• reviewing at least annually our executive compensation philosophy and guidelines;

• in the absence of the Chief Executive Officer, evaluating at least once a year our Chief Executive Officer’s
performance in light of the goals and objectives established by the human resources committee and, based on such
evaluation, approving the Chief Executive Officer’s annual compensation;

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• reviewing and approving on an annual basis the evaluation process and compensation structure for members of
our executive leadership team and, in consultation with our Chief Executive Officer, reviewing and approving the
performance of the other members of our executive leadership team;

• reviewing and approving the design of the annual performance bonus plan, and any establishment of or material
changes to incentive compensation plans, employee benefit plans for the executive leadership team and all equity-
based incentive plans of the Company or its subsidiaries;

• preparing and recommending to our board of directors for approval our public disclosures related to executive
compensation; and

• reviewing at least once annually succession plans for the Chief Executive Officer and members of our executive
leadership team.

Further particulars of the process by which compensation for our executive officers is and will be determined are provided
under the heading “Item 6B—Compensation”.

Governance and Nominating Committee

Our governance and nominating committee is comprised of Navin Arora and Sue Paish and chaired by Tony Geheran. Our
board of directors has determined that Sue Paish is independent for purposes of NI 58-101 and NYSE listing
requirements. As a “controlled company”, our governance and nominating committee is not required to be comprised entirely
of independent directors. For a description of the background and experience of each member of our governance and
nominating committee, see “Item 6A—Directors and Senior Management—Our Directors”.

Our board of directors has established written terms of reference setting forth the purpose, composition, authority and
responsibility of our governance and nominating committee. The governance and nominating committee’s purpose is to assist
our board of directors in, among other things:

• identifying individuals qualified to become members of our board of directors;

• recommending that our board of directors select director nominees for the next annual meeting of shareholders
and determining the composition of our board of directors and its committees;

• developing and overseeing a process to assess our board of directors, the chair of the board of directors, the
committees of the board of directors, the chairs of the committees and, individual directors;

• developing, recommending and overseeing the effectiveness of our corporate governance policies and procedures;

• review and monitor, on behalf of the Board, our approach, planning and reporting on corporate social
responsibility and ESG, including the review and approval of any sustainability report.

• reviewing director compensation; and

• overseeing our public disclosure related to the foregoing.

In identifying new candidates for our board of directors, the governance and nominating committee considers what
competencies and skills our board of directors, as a whole, should possess and assess what competencies and skills each
existing director possesses, considering our board of directors as a group, and the personality and other qualities of each
director, as these may ultimately determine the boardroom dynamic.

Evaluation

It is the responsibility of the governance and nominating committee (GNC) to regularly evaluate the effectiveness and
contribution of our board of directors, our Chair, our Vice-Chair and all board committees and their chairs. To do so, the GNC
conducts an evaluation, either directly or through our CLO, and then reports the results to our board of directors. If deemed
appropriate, the GNC may elect to engage a third party to provide expertise on and to assist with the coordination of the
evaluation.This process allows the Company to evaluate the mechanism in place for our board and committees to operate

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effectively, identify opportunities to enhance and maintain best corporate practices, meet regulatory requirements and develop
strategies in relation to recruiting and succession planning.

To conduct and document this evaluation, the GNC approves a questionnaire that is to be completed by each director.
Through these questionnaires, each director provides their evaluation of the performance of: the board as a whole; each
committee; each committee chair and each individual director. Our CLO reviews the results of these questionnaires and
provides them to the Vice-Chair, with attribution to the originating directors, except that, in the case of the Vice-Chair, results
are provided to the chair of the GNC. When the results are provided to the Vice-Chair or the chair of our GNC, each director
may elect to have all or part of their comments included without attribution. However, in all cases, the subsequent feedback to
the GNC and the board are given without attribution.

In order to provide a broader scope to our evaluation, the GNC also approves a questionnaire that is to be completed
by all members of the Company’s senior management team who have regular interaction with our board or its committees. The
purpose of this questionnaire is to: provide an evaluation of the overall effectiveness of the Board from the perspective of the
senior management team and consider how the Board and management support one another and how their relationship can be
improved. Our CLO reviews these results and provides them to the Vice-Chair, without attribution to any member of the senior
management team. The Vice-Chair conducts separate interviews with each director to advise of the results of this evaluation
and then report on key themes and recommendations to the GNC and the board. These results are used by the Vice-Chair to
create a set of board goals and objectives to address matters raised during the evaluation.

In addition to our assessment process, the GNC also conducts an annual review of the skills of each member of our
board of directors, including a gap analysis, and makes recommendations to the board in the event any gaps are identified.

Diversity

We are committed to fostering an environment that is diverse and inclusive and facilitates a broad range of perspectives. We
recognize the importance and benefit of having a board of directors and senior management comprised of highly qualified
individuals who reflect the communities where we live and work and the clients we serve. As part of our on-boarding practices
for our board members, we provide materials outlining our caring culture that highlight the community-oriented focus of our
business. Additionally, our board receives regular reporting on respectful workplace and integrity initiatives and, should they
arise within our business, any significant incidents.

We adopted a formal board diversity policy providing that the governance and nominating committee shall consider
diversity criteria, such as gender, age, ethnicity/aboriginal status and geographic background in recommending director
nominees to the board of directors. Prior to the Company’s annual general meeting in 2023 and thereafter, we will seek to attain
a board composition in which at least 30% of our board are women. We have also authorized the governance and nominating
committee to engage qualified independent external advisors to conduct a search for candidates that help achieve diversity
objectives. At the time of filing of this Annual Report, 4 of our 10 directors, representing 40% of our board, self-identify as
diverse, three women serve on our board, representing 30% of our board, and four women serve in executive leadership
positions, representing the majority of our executive leadership team. All three women were appointed to our board of directors
in 2021 and we expect to add an additional woman to the board prior our 2023 annual general meeting. We believe the
promotion of diversity is best served through careful consideration of all of the knowledge, experience, skills and backgrounds
of each individual candidate for director in light of the needs of the board without focusing on a single diversity characteristic.
When assessing the composition of the board, a principal focus is expected to be on ensuring the board has the diverse
experiences, skills and backgrounds needed to oversee our Company and the Company will take a balanced approach when
considering the extent to which personal characteristics are taken into account.

Succession Planning

The GNC is responsible for succession planning for the board. As part of this responsibility, the GNC is responsible for
maintaining a list of potential candidates for directors who meet the established criteria. The skills assessment and gap analysis
from the GNC’s assessment process are used to guide our succession planning.

Our human resources committee oversees succession planning for our CEO, with support from the Chair and the
advice and recommendation of the Board. The human resources committee also supports the CEO’s succession planning for our
Company’s executive management team.

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Penalties or Sanctions

None of our directors or executive officers, and to the best of our knowledge, no shareholder holding a sufficient number of
securities to affect materially the control of us, has been subject to any penalties or sanctions imposed by a court relating to
securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities
regulatory authority or been subject to any other penalties or sanctions imposed by a court or regulatory body that would likely
be considered important to a reasonable investor making an investment decision.

Individual Bankruptcies

None of our directors or executive officers, and to the best of our knowledge, no shareholder holding a sufficient number of
securities to affect materially the control of us, has, within the ten years prior to the date of this Annual Report, become
bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any
proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold their
assets.

Corporate Cease Trade Orders and Bankruptcies

None of our directors or executive officers is, as at the date of this Annual Report, or has been within the ten years prior to the
date of this Annual Report: (a) a director, chief executive officer or chief financial officer of any company (including the
TELUS and its other subsidiaries) that was subject to an order that was issued while the director or executive officer was acting
in the capacity as director, chief executive officer or chief financial officer; (b) was subject to an order that was issued after the
director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an
event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer; or
(c) a director or executive officer of any company (including the TELUS companies) that, while that person was acting in that
capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation
relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors
or had a receiver, receiver manager or trustee appointed to hold its assets. For the purposes of this paragraph, “order” means a
cease trade order, an order similar to a cease trade order or an order that denied the relevant company access to any exemption
under securities legislation, in each case, that was in effect for a period of more than 30 consecutive days.

D. Employees

Our Team Members

We have over 73,000 team members around the globe as of December 31, 2022 and an additional 1,139 joined us from
WillowTree in January 2023. The majority of our team members are directly or indirectly delivering services to our clients. At
December 31, 2022, approximately 92.5% of our team members worked in this capacity while the remaining 7.5% worked in
sales and marketing or other corporate support functions. Our team members possess a wide variety of skills and capabilities, in
areas such as DevOps, solutions architecture, digital transformation, cloud transformation, user interface/user experience (UI/
UX) design, QA testing and customer experience management.

On December 31, 2022, our team members were located in 28 countries across four geographic regions. Following the
WillowTree acquisition, we now have team members in 30 countries. The following table show our team members by function:

As at As at As at
December 31, December 31, December 31,
Function 2022 2021 2020
Delivery of our services 67,664 59,493 48,948
Corporate, support and administrative functions 5,478 2,648 1,670
TOTAL 73,142 62,141 50,618

We believe our differentiated culture drives greater team member engagement and retention, which leads to superior outcomes
for us and our clients. As a result, sourcing, recruiting, developing and retaining talented team members is critical to our
ongoing success.

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Talent Acquisition. We seek to employ team members who share our unique values, possess the specialized skill sets
needed to enable our clients’ digital journeys and who are inspired by giving back to their local communities. We believe that
our caring culture, which includes a commitment to team member growth and development, makes us a preferred employer in
the regions where we have delivery locations. Our workplace engagement has garnered us international recognition; we
were recognized on Forbes list of Best Employers for Diversity in 2022 and with the 2022 Stevie Awards for Sales and
Customer Service in the “Frontline Customer Service Team of the Year” category. We also recruited on campus and through
multiple digital channels, screening over 754,000 candidates. We build our talent acquisition funnel through a combination of
branded campaigns, social media, job portals, online job fairs and events, including hack-a-thons, and university and
specialized academic partnerships for specialized roles. We have partnered with approximately 300 colleges and universities
around the globe.

Training and Coaching. We believe it is important for our team members to grow with us both personally and
professionally. Our talent strategy includes developing expertise around the specific technologies, tools and frameworks
required to successfully execute projects for our clients in an increasingly digital economy. We strive to create thought leaders
with deep industry acumen. This entails providing access to opportunities to further develop our team members’ skills which
enables them to handle a wider variety of responsibilities. In several delivery locations, we work in partnership with local,
accredited universities to provide training programs. For example, through our TELUS International University program, team
members have access to subsidized tuition and onsite classes to earn approximately 2,000 degrees. We also provide mentoring
programs, leadership courses through our “Learning@TI” roadmap and have our own “Learn and Grow” curriculum for team
member development and personalized coaching. As part of our broader efforts to support our team members’ overall well-
being, we extend many training and development opportunities to their family members. This year, our Company continued to
scale our Senior Leadership development program, providing more than 400 additional leaders with tailored personalized
leadership coaching.

Retention. Our culture, team member engagement efforts, recruiting and training programs are all designed to establish
us as the employer of choice in our markets, and to maximize retention of our team members. We reward exceptional
performance, celebrate diversity, host team building events, provide opportunities for team members to volunteer in their
communities and celebrate accomplishments and mark special occasions together. To make team members feel more valued
and connected to our organization, we recognize important professional and personal milestones such as promotions,
anniversaries, birthdays and new family members. We also offer market-based compensation, a flexible work environment, and
benefits tailored to meet the unique needs of our team members. For example, in certain delivery locations, we extend
healthcare benefits to team members’ and their immediate families, including parents, as well as allowing extended families
access to onsite healthcare professionals.

To strengthen our team members’ connections with each other and with us, we have built our own social network
called Cosmos, and sponsor many special interest and affinity groups and athletic teams, which foster a sense of belonging and
community. Giving back as a team, including through the “TELUS Days of Giving” and monthly community service activities,
is an essential part of our caring culture and we believe our giving back makes a meaningful difference where we live, work and
raise our families.

Diversity, Equity and Inclusion. Diversity, acceptance and inclusion are integral components of our caring culture. For
our team members, whose backgrounds reflect the breadth of our global footprint, our commitment to diversity and
inclusiveness promotes engagement and empowers them to serve as advocates for positive social change.

We see team member diversity as a significant competitive advantage, fostering creativity and innovation and leading
to better customer experiences and financial outcomes. We aim to provide equal opportunities for all team members and
proactively seek candidates from varied gender identities and cultural backgrounds. We are committed to diversity and
inclusion across our entire organization, which is supported by our vision, values, culture and strategy. At December 31, 2022,
women represented approximately 48% of our total workforce and 42% of managers and up are women. In 2022, we were
listed on Mogul’s list of Top 100 Workplaces for our diversity and inclusion initiatives.

Our approach to talent acquisition, training and coaching, retention, and diversity and inclusion are the cornerstones of
our culture. Our CVC framework establishes how our caring culture leads to a better environment for our team members which
contributes to high client satisfaction and better outcomes for our clients and our shareholders. We believe our caring culture
drives higher team member engagement, which leads to lower team member attrition. Longer-tenured team members develop
more advanced skills leading to better end-customer outcomes and higher revenues for clients and for us. We consistently see
the benefits driven by this model, and will continue to use it as a guide in further elevating our digital transformation and
customer experience services.

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Our culture influences each and every team member interaction. We believe our ongoing investments in attracting and
hiring team members who share our values, training and coaching, community giving, and diversity and inclusion are culture
builders that help drive team member engagement and retention.

E. Share Ownership

See “Item 7A—Major Shareholders” and “Item 6B—Compensation”.

ITEM 7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major Shareholders

The following table sets forth information relating to the beneficial ownership of our shares as at December 31, 2022, by:

• each of our directors;

• each of our executive officers;

• all directors and executive officers as a group; and

• each person, or group of affiliated persons, known by us to beneficially own more than 5% of our outstanding
shares, which includes each of the selling shareholders;

Beneficial ownership is determined in accordance with SEC rules. The information is not necessarily indicative of beneficial
ownership for any other purpose. In general, under these rules a beneficial owner of a security includes any person who,
directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has shares or voting power or
investment power with respect to such security. In addition, the rules include shares issuable pursuant to the exercise of share
options, warrants or other convertible securities that are either immediately exercisable or exercisable on or before March 1,
2023, which is 60 days after December 31, 2022. These shares are deemed to be outstanding and beneficially owned by the
person holding those options, warrants or other convertible securities for the purpose of computing the percentage ownership of
that person, but they are not treated as outstanding for the purpose of computing the percentage ownership of any other person,
except with respect to the percentage ownership of all directors and executive officers as a group. The information contained in
the following table is not necessarily indicative of beneficial ownership for any other purpose, and the inclusion of any shares in
the table does not constitute an admission of beneficial ownership of those shares. Unless otherwise indicated, the persons or
entities identified in this table have sole voting and investment power with respect to all shares shown as beneficially owned by
them.

The percentage of beneficially owned subordinate voting shares and multiple voting shares is based on 66,630,613
subordinate voting shares and 199,931,876 multiple voting shares outstanding as at December 31, 2022.

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The address for each of our directors and executive officers listed below is c/o TELUS International (Cda) Inc., Floor
7, 510 West Georgia Street, Vancouver, BC V6B 0M3, Canada.

Subordinate Multiple % of Total

Voting Voting Voting
Shares Shares Power
Name of Beneficial Owner Shares % Shares % %
Directors and Executive Officers:
Jeffrey Puritt 2,538,138 3.8 — — *
Michel Belec * * — — *
Beth Howen — — — — —
Vanessa Kanu * * — — *
Maria Pardee * * — — *
Michael Ringman * * — — *
Marilyn Tyfting * * — — *
Darren Entwistle * * — — *
Josh Blair * * — — *
Olin Anton * * — — *
Navin Arora * * — — *
Kenneth Cheong(1) — — — — —
Doug French(2) * * — — *
Tony Geheran(2) * * — — *
Sue Paish * * — — —
Carolyn Slaski * * — — —
Sandra Stuart * * — — *
All directors and executive officers as a
group (17 persons) 3,332,810 5.0 — — *
5% Shareholders:
TELUS(3) 1,438,013 2.2 149,504,019 74.8 72.4
BPEA(4) — — 50,427,857 25.2 24.4
Capital Research Global Investors (US) (5) 12,213,589 18.3 — — *
Mackenzie Financial Corporation (6) 10,715,231 16.1 — — *
Capital International Investors (7) 3,811,622 5.7 — — *
_________________________________________________
* Holdings represent less than one percent.

(1) Mr. Cheong resigned from our Board effective February 9, 2023. Mr. Cheong is an employee of BPEA, but disclaims
beneficial ownership of the shares beneficially owned by BPEA.

(2) Messrs. Arora, French and Geheran are each employees of TELUS, but each disclaims beneficial ownership of the
shares beneficially owned by TELUS.

(3) Consists of shares held by TELUS Communications, Inc., 1276431 B.C. Ltd., 1276433 B.C. Ltd., 1276435 B.C. Ltd.,
1276436 B.C. Ltd. and TELUS International Holding Inc., each a wholly-owned subsidiary of TELUS. Multiple
voting shares so held by TELUS are convertible into an equivalent number of subordinate voting shares. If TELUS
were to convert all its multiple voting shares into subordinate voting shares, it would hold 69.8% of our subordinate
voting shares and 21.0% of our voting power. In June 2022, TELUS purchased 3,000,000 of our multiple voting
shares, representing 1.5% of our multiple voting shares then outstanding and 1.45% of our voting power, from BPEA.
For details on significant acquisitions of our common shares by TELUS, see “Item 7B—Related Party Transactions—
Share Issuances”.

(4) Consists of shares held by Riel B.V., which is indirectly and wholly-owned by BPEA Private Equity Fund VI, L.P.1
formerly known as The Baring Asia Private Equity Fund VI, L.P.1 (Fund VI1), BPEA Private Equity Fund VI, L.P.2,

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formerly known as The Baring Asia Private Equity Fund VI, L.P.2 (Fund VI2) and certain of its affiliates. The general
partner of Fund VI1 and Fund VI2 is BPEA Private Equity GP VI, L.P. formerly known as Baring Private Equity
Asia GP VI, L.P. (Fund VI GP). The general partner of Fund VI GP is BPEA Private Equity GP VI Limited formerly
known as Baring Private Equity Asia GP VI Limited (Fund VI Limited). As the majority shareholder of Fund VI
Limited, BPEA EQT Holdings AB may be deemed to have voting and dispositive power with respect to the shares
beneficially owned by Fund VI and Fund VI2 and their affiliates, but disclaims beneficial ownership of such shares.
The address of Fund VI GP and Fund VI Limited is c/o Maples Corporate Services Limited, 390 GT Ugland House,
South Church Street, Georgetown, Grand Cayman, Cayman Islands. The address of BPEA EQT Holdings AB is
Regeringsgatan 25 Stockholm, 111 53 Sweden. Multiple voting shares so held by BPEA are convertible into an
equivalent number of subordinate voting shares. If BPEA were to convert all its multiple voting shares into
subordinate voting shares, it would hold 43.1% of our subordinate voting shares and 3.1% of our voting power. For
details on significant acquisitions of our common shares by BPEA, see “Item 7B—Related Party Transactions—Share
Issuances”. In September 2021, BPEA sold 13,648,000 subordinate voting shares in a secondary offering, following
conversion of an equivalent number of multiple voting shares into subordinate voting shares, representing 20.3% of
our outstanding multiple voting shares then outstanding and 6.2% of our voting power. In June 2022, BPEA sold
3,000,000 multiple voting shares, representing 1.5% of our multiple voting shares then outstanding and 1.45% of our
voting power, to TELUS Corporation.

(5) Represents subordinate voting shares beneficially owned by Capital Research Global Investors, a division of Capital
Research and Management Company, based solely on the Schedule 13G/A filed by Capital Research Global Investors
with the SEC on January 10, 2023.

(6) Represents subordinate voting shares beneficially owned by Mackenzie Financial Corporation, based solely on the
Schedule 13G/A filed by Mackenzie Financial Corporation with the SEC on January 27, 2023.

(7) Represents subordinate voting shares beneficially owned by Capital International Investors, a division of Capital
Research and Management Company, based solely on the Schedule 13F-HR filed by Capital International Investors
with the SEC on November 14, 2022.

As at December 31, 2022 and the date of this report, there were four and 17 registered holders in the United States respectively,
one of whom was Cede & Co. (nominee of DTC), representing 99.7% of our subordinate voting shares.

B. Related-Party Transactions

Our Relationship with TELUS

As of December 31, 2022, TELUS, our controlling shareholder, held 149,504,019 multiple voting shares, or 72.36% of the
combined voting power of our outstanding shares, and 1,438,013 subordinate voting shares, or 0.07% of the combined voting
power of our outstanding shares. See “Item 3D—Risk Factors—TELUS Relationship Risks”.

In connection with our initial public offering, we and TELUS entered into certain agreements that provide a
framework for our relationship. The following is a summary of the terms of each intercompany agreement that we entered into
with TELUS, each of which is included as an exhibit to this Annual Report. Each summary sets forth the terms of an agreement
that we believe is material to us and each summary is qualified in its entirety by reference to the full text of such agreement.

For further information regarding historical related party transactions, see Note 19—Related Party Transactions to the
audited consolidated financial statements as at and for the year ended December 31, 2022 in this Annual Report.

Master Services Agreement

We currently provide strategy and innovation, next-generation technology and IT services as well as customer experience
process and delivery services to TELUS pursuant to the terms of a master services agreement, which we amended and restated
in January 2021. The MSA includes a minimum spend commitment of $200 million per year, subject to adjustment in
accordance with its terms. The initial term of the MSA is ten years, beginning in January 2021, unless terminated earlier or
extended according to its terms. Services provided for under the MSA are priced on an arm’s-length basis in line with pricing
for comparable services we provide to other clients. The MSA includes typical industry terms for a long-term services

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arrangement, including terms related to periodic price and service level reviews and benchmarking, service-level credits,
termination rights, indemnification and limitation of liability.

Transition and Shared Services Agreement

We entered into a new transition and services agreement (TSSA) with TELUS in January 2021. Pursuant to this agreement,
TELUS provides us with certain administrative and support services and certain other corporate assistance, which enhances our
ability to operate efficiently and to reliably serve our clients, while leveraging TELUS’ expertise. The services provided to us
by TELUS under the TSSA include services to support the coordination of corporate functions, such as finance and accounting
support, human resources support, investor relations, communications and media relations support.

The term of the TSSA is ten years, beginning in January 2021. We will pay TELUS mutually agreed-upon fees for the
services provided under the TSSA on a cost-plus recovery basis and have the right to terminate some or all of the services upon
notice. Expiration or termination of all services will result in the termination of the TSSA, concurrently with the termination or
expiration of the last remaining service.

Master Reseller Agreement

We provide advisory, technical and cloud-based customer experience transformation services to TELUS that TELUS resells to
its customers pursuant to the terms of a master reseller agreement, which we amended and restated in January 2021. The
amended and restated master reseller agreement has a term of five years beginning in January 2021, which automatically
renews for successive one-year terms unless terminated according to its terms. Services provided under the amended and
restated master reseller agreement are priced on an arm’s-length basis. The amended and restated master reseller agreement
contains typical industry terms for a reseller agreement, including scope of rights to resell, termination rights, indemnification
and limitation of liability.

Network Infrastructure Services Agreement

We and one of our U.S. subsidiaries entered into a network infrastructure services agreement with TELUS and one of its U.S.
subsidiaries in January 2021. Under the network infrastructure services agreement, TELUS provides us with various managed
telecommunications and information technology services, including services that we previously received from TELUS under a
previous shared service agreement and the MITS shared services agreement. The initial term of the agreement is ten years,
beginning in January 2021, unless terminated earlier, and will be automatically extended for successive one-year terms unless
notice is given by either party thereto. The agreement includes a minimum spend commitment by us of C$47,900,000 over the
first five years of the term. We are permitted to terminate any service under the agreement for convenience prior to its
scheduled expiration date, subject to a minimum notice period, which is generally one month, and payment of unpaid charges
and termination charges (if any) specified in the related service schedules. Fees for services provided under the agreement are
consistent with fees for the same or similar services under the same or similar conditions between unrelated parties. The
agreement includes typical industry terms for a long-term services arrangement, including performance service credits,
termination rights, indemnification and limitation of liability.

Trademark License Agreement

We entered into a trademark license agreement with TELUS in January 2021. Under the trademark license agreement, TELUS
granted us a limited, revocable, non-exclusive, non-transferable (except by sub-license) and royalty-free license to use certain
TELUS trademarks (including domain names) in connection with the goods and services associated with each trademark
application and/or registration. The trademark license agreement has an initial term of ten years, beginning in January 2021,
unless terminated earlier or extended by mutual agreement. The parties are permitted to terminate the trademark license
agreement without cause at any time, subject to a minimum notice period, which is generally thirty days. Following termination
of the trademark license agreement, we will have one year to phase out any use of the trademarks. The trademark license
agreement also includes standard rights to terminate with cause.

Collaboration and Financial Reporting Agreement

We entered into a collaboration and financial reporting agreement with TELUS relating to our financial reporting which is
intended to provide for the collaboration and coordination of TELUS International and TELUS in a range of areas. This
agreement will continue in effect until the earlier of (i) a change of control transaction, (ii) when TELUS determines it is no
longer required to consolidate our results of operations and financial position or to account for its investment in us under the
equity method of accounting, and (iii) such date as we and TELUS may agree. The parties will negotiate the basis for phasing

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out their respective obligations and requirements under the agreement prior to its termination or expiry. Under this agreement,
we are subject to covenants, including those regarding the delivery or supply of monthly, quarterly and annual reporting
information and annual budgets and financial forecasts to TELUS as well as other information that TELUS requires in support
of its continuous reporting obligations and operational/management needs; conformity with TELUS’ financial presentation and
accounting policies and management reporting framework for intercompany transactions; disclosure of information about our
financial controls to TELUS; the provision to TELUS of access to our auditors, certain books and records related to internal
accounting controls or operations and the working papers for our annual audits and quarterly reviews; and collaboration and
consultation with TELUS in connection with our strategic and business planning, the preparation of our public filings and press
releases and on other specified topics. Pursuant to the collaboration and financial reporting agreement, we are required to
maintain business policies, practices and standards that are consistent with and at least as stringent as the corresponding TELUS
policies, standards, and procedures, with such practices and standards to be adapted to conform to our business and the laws and
regulations applicable to our business. The agreement specifies certain matters or actions we take that require advance review
and consultation with TELUS and also stipulates certain actions that require our board’s approval. As our financial statements
are currently consolidated with those of TELUS, we maintain policies and processes that comply with the financial reporting
requirements that are contained in this agreement.

Credit Agreement

General

We entered into a senior secured credit agreement, which includes two revolving credit facilities and two non-revolving term
credit facilities, originally dated as of May 31, 2016, amended and restated on January 28, 2020, as further amended and
restated on December 22, 2020, and as further amended and restated on December 20, 2022, with The Bank of Nova Scotia, as
administrative agent and certain other financial institutions and TELUS, serving as lenders. The credit agreement provides for
(i) a revolving term credit facility in the aggregate amount of US$275 million (the "RT 1 Credit Facility"), (ii) a revolving term
credit facility in the aggregate amount of US$525 million (the "RT 2 Credit Facility"), (iii) a non-revolving term credit facility
in the aggregate amount of US$600 million (the "NRT 1 Credit Facility"), and (iv) a non-revolving term credit facility in the
aggregate amount of US$600 million (the "NRT 2 Credit Facility") each maturing on January 3, 2028.

In addition, the revolving credit facilities each include a sub-facility for standby letters of credit with an aggregate cap of
US$50 million or the equivalent in Canadian dollars. The facilities generally bear interest at various floating rates, with a credit
spread that varies by reference to the ratio of total Net Debt to EBITDA for the applicable fiscal quarter. The RT 2 Credit
Facility, the NRT 1 Credit Facility and the NRT 2 Credit Facility are subject to an accordion feature allowing us to increase one
or more of these facilities by up to an aggregate amount of $500 million, subject to certain customary conditions and increases
in interest rates and standby fees. The obligations thereunder are guaranteed by certain of our wholly-owned subsidiaries and
secured by a first priority interest in all of our assets and equity interests in our subsidiaries.

Covenants and Events of Default

The credit agreement imposes certain customary restrictions on our activities, including, but not limited to, and subject to
certain customary exceptions, our ability to incur indebtedness (including guarantee obligations), incur liens, engage in certain
fundamental changes, amend, modify or terminate the TELUS MSA and shared services agreements, the limited liability
company agreement of WillowTree which TELUS International Holding (U.S.A.) Corp. (“TELUS International USA”) has
entered into with the other equity interest holders of WillowTree, and the shareholders’ agreement we have entered into with
TELUS and BPEA, make acquisitions or investments, and sell assets.

The credit agreement also requires us to maintain a total Net Debt to EBITDA ratio not to exceed 4.25:1 for each
quarter ending in fiscal 2023, beginning December 31, 2022; reducing to 3.75:1 for each quarter ending in fiscal 2024; and
further reducing to 3.25:1 for each quarter ending thereafter. If we make permitted acquisitions with an aggregate cash
consideration above $250 million in any twelve-month period, we may request that the maximum permitted total Net Debt to
EBITDA ratio be increased by 0.50:1.00 for the quarter in which such threshold was exceeded, and shall return to the then
applicable Net Debt to EBITDA ratio after eight fiscal quarters. We are also required to maintain a consolidated debt service
coverage ratio financial covenant of at least 1.50:1.00 in every fiscal quarter.

The credit agreement provides for certain events of default, including, without limitation: (a) cross-default and cross-
acceleration to indebtedness and judgments of over US$25.0 million or the equivalent in Canadian dollars, (b) TELUS ceasing
to have the power to, directly or indirectly, (i) vote shares that represent more than 50% our voting shares, (ii) direct our
management, business or policies and (iii) elect or appoint a majority of our directors, and (b) termination of the TELUS MSA
and the shared services agreements we have entered into with TELUS.

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Our Relationship with TELUS and BPEA

The following are summaries of the terms of certain agreements that we entered into with TELUS and BPEA, each of which is
included as an exhibit to this Annual Report. Each summary sets forth the terms of an agreement that we believe is material to
us and each summary is qualified in its entirety by reference to the full text of such agreement.

Shareholders’ Agreement

We entered into a shareholders’ agreement with TELUS and BPEA upon consummation of our initial public offering that
governs the relationship between us, TELUS and BPEA.

Board Composition: Under our articles, our board of directors consists of such number of directors as determined from
time to time by the directors.

Board Appointment Rights. The shareholders’ agreement provides that so long as TELUS continues to beneficially
own at least 50% of the combined voting power of our multiple voting shares and subordinate voting shares, we will agree to
nominate individuals designated by TELUS representing a majority of the board. If TELUS owns at least 5% of the combined
voting power of our multiple voting shares and subordinate voting shares but less than 50%, the number of directors TELUS
may nominate as a percentage of the board will be the greater of (i) the number of directors proportionate to the percentage of
combined voting power of shares that it holds and (i) one individual.

The shareholders’ agreement also provides that, for so long as TELUS continues to beneficially own at least 50% of
the combined voting power of our multiple voting shares and subordinate voting shares, the Chair of the board will be a
designee of TELUS that TELUS identifies to us and BPEA.

The shareholders’ agreement also provides that, so long as BPEA continues to beneficially own at least 5% of the
combined voting power of our multiple voting shares and subordinate voting shares, we agree to nominate one individual
designated by BPEA.

BPEA shall also be entitled, but not obligated, to designate two observers to the board.

The shareholders’ agreement also provides that we agree to nominate our Chief Executive Officer to the board of
directors. The seat on our board to be held by our Chief Executive Officer does not represent one of the director nominees
provided to TELUS and BPEA under the shareholders’ agreement.

Board Committee Appointment Rights. The shareholders’ agreement provides that for so long as TELUS continues to
beneficially own at least 50% of the combined voting power of our multiple voting shares and subordinate voting shares,
TELUS will be entitled, but not obligated, to select the chair of the board and the chairs of the human resources and governance
and nominating committees. The shareholders’ agreement also provides that so long as TELUS or BPEA, as applicable, is
entitled to nominate at least one individual to our board, it will be entitled, but not obligated, to designate at least one nominee
for appointment to each of our human resources committee and governance and nominating committee. The shareholders’
agreement also provides that so long as TELUS is entitled to designate one or more nominees to our board it will be entitled,
but not obligated, to designate one nominee for appointment to our audit committee. The above-described committee
appointment rights are in each case subject to compliance with the independence requirements of applicable securities laws and
listing requirements of the NYSE and TSX.

For so long as TELUS has the right to nominate a majority of our board of directors, TELUS appointees will control
our board decisions and approval of all material actions not specifically requiring shareholder approval which are subject to
majority board approval. See “Item 6A—Directors and Senior Management” for the composition of our board and the
committees of the board and more information on our board of directors.

Special TELUS Shareholder Rights. The shareholders’ agreement provides that TELUS has special shareholder rights
related to certain matters including, among others, approving the selection, and the ability to direct the removal, of our Chief
Executive Officer, approving the increase or decrease of the size of our board, approving the issuance of multiple voting shares
and subordinate voting shares, approving amendments to our articles, consolidations or mergers with non-affiliated entities and
authorizing entering into a change of control transaction, disposing of all or substantially all of our assets, and commencing
liquidation, dissolution or voluntary bankruptcy or insolvency proceedings. TELUS will retain these special shareholder rights
for so long as TELUS retains at least 50% of the combined voting power of our multiple voting shares and subordinate voting
shares.

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TELUS Right of First Offer. In addition, pursuant to the shareholders’ agreement, BPEA agreed not to, directly or
indirectly, sell, transfer or otherwise dispose of any multiple voting shares or subordinate voting shares, whether by registered
offering, private sale, disposition over the facilities of a stock exchange or otherwise, in a single transaction or series of
transactions, without first discussing in good faith any such sale transaction with TELUS and providing TELUS with a right of
first offer to purchase such multiple voting shares or subordinate voting shares in connection with a sale transaction for gross
proceeds in excess of $10.0 million.

Registration Rights Agreement

On February 5, 2021, in connection with our initial public offering, we entered into a registration rights agreement (as amended
from time to time, the “Registration Rights Agreement”) with TELUS and BPEA pursuant to which we agreed to provide
TELUS or BPEA with certain demand and piggyback registration rights that require us to use commercially reasonable efforts
to effect the registration under applicable federal, state and provincial securities laws, in either Canada or the United States of
any of our subordinate voting shares held by TELUS or BPEA following the completion of our initial public offering. We
amended the Registration Rights Agreement in June 2021 to provide certain piggyback registration rights to our chief executive
officer and two other employees. (the “June 2021 Amendment”). In connection with closing of the acquisition of WillowTree,
we have entered into an amendment to the Registration Rights Agreement (the “Amendment”), which terminated the June 2021
Amendment, to extend certain demand and piggyback registration rights to Insignia WT Holdings, LLC (“Blocker Seller”) and
certain members of management of WillowTree who hold our subordinate voting shares following completion of the
WillowTree acquisition and/or one or more Redemptions (as defined herein), as well as to all shareholder parties to the
Registration Rights Agreement with a registration right that would require us to, upon their request, use commercially
reasonable efforts to take all actions necessary to make a resale registration statement under the Securities Act, covering such
parties’ shares available for their use in connection with resale of their subordinate voting shares. In connection with the
execution of the Amendment, the Blocker Seller and certain members of management of WillowTree are deemed to have
requested, and we are deemed to have agreed, to make such resale registration statement available to the Blocker Seller and
certain members of management of WillowTree as soon as reasonably possible after the closing date of the acquisition. The
Amendment will continue to provide registration rights to our chief executive officer consistent with the rights provided to him
in the June 2021 Amendment.

Under the Registration Rights Agreement, as amended, we will be generally responsible for all registration expenses in
connection with the performance of our obligations under the registration rights provisions in the Registration Rights
Agreement. TELUS, BPEA and the other selling shareholders will generally be responsible for all underwriting discounts,
selling commissions and securities transfer taxes applicable to any sale.

The Registration Rights Agreement contains customary representations, covenants, and indemnification and
contribution provisions by us for the benefit of the selling shareholders and, in limited situations, by the selling shareholders for
our benefit of us.

Share Issuances

In connection with the acquisition of Lionbridge AI, we issued 1.7 million shares of Class A common shares to TELUS for
proceeds of approximately $149.6 million and 0.9 million shares of Class B common shares to BPEA for proceeds of
approximately $80.4 million to fund a portion of the purchase price. In connection with our IPO, the Class A common shares
received by TELUS and the Class B common shares received by BPEA were converted into multiple voting shares, for
historical share issuance details, see Note 16—Share Capital and Note 20—Related Party Transactions in the notes to the
audited consolidated financial statements as at and for the year ended December 31, 2022 included in this Annual Report. On
January 3, 2023, in connection with the acquisition of WillowTree, we issued 6.5 million subordinate voting shares (See Note
14(c)—Intangible assets and goodwill—Business acquisition subsequent to reporting period - WillowTree to the audited
consolidated financial statements as at and for the year ended December 31, 2022 in this Annual Report for additional details).

Related Party Transactions Policy

Prior to the completion of our initial public offering, we implemented formal policies and procedures for the review, approval
or ratification of related-party transactions that may be required to be reported under the disclosure rules applicable to us. As at
the date of this Annual Report, such transactions, if and when they are proposed or have occurred, are reviewed by one or more
of the board of directors, audit committee or the compensation committee (other than the directors or committee members
involved, if any) on a case-by-case basis, depending on whether the nature of the transaction would otherwise be under the
purview of the audit committee, the compensation committee or the board of directors.

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Interests of Management and Others in Material Transactions

Other than as described in this Annual Report, there are no material interests, direct or indirect, of any of our directors or
executive officers, any shareholder that beneficially owns, or controls or directs (directly or indirectly), a greater than 10%
interest in the voting power of the Company, or any associate or affiliate of any of the foregoing persons, in any transaction
since the beginning of the preceding three financial years before the date of this Annual Report that has materially affected or is
reasonably expected to materially affect us or any of our subsidiaries.

Indebtedness

None of our directors, executive officers, employees, former directors, former executive officers or former employees or any of
our subsidiaries, and none of their respective associates or affiliates, is or has at any time since the beginning of the preceding
three financial years has been indebted to us, TELUS or any of our subsidiaries or another entity whose indebtedness is the
subject of a guarantee, support agreement, letter of credit or other similar agreement or understanding provided to us, TELUS or
any of our subsidiaries.

C. Interests of Experts and Counsel

Not applicable.

ITEM 8 FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information

The Company’s audited consolidated financial statements are included beginning on page F-1 of this Annual Report.

Legal Proceedings

From time to time, we may become involved in legal or regulatory proceedings arising in the ordinary course of our business,
including those involving employee lawsuits and other matters. We accrue liabilities when it is probable that future costs will be
incurred and such costs can be reasonably estimated. We are not currently, nor since the beginning of our most recently
completed financial year have we been, a party to any material litigation or regulatory proceeding and are not aware of any
pending or threatened litigation or regulatory proceeding against us that could, if determined adversely to us, have a material
adverse effect on our business, operating results, financial condition or cash flows.

Dividend Policy

We have never declared or paid dividends on our subordinate voting shares. We currently intend to retain all available funds
and any future earnings to support operations and to finance the growth and development of our business. As such, we do not
intend to declare or pay cash dividends on our shares in the foreseeable future. Any future determination to pay dividends will
be made at the discretion of our board of directors subject to applicable laws and will depend upon, among other factors, our
financial performance, financial condition including leverage levels, contractual restrictions, capital requirements and merger
and acquisition opportunities. Our future ability to pay cash dividends on our shares is currently limited by the terms of our
credit agreement and may be limited by the terms of any future debt or preferred securities.

B. Significant Changes

None.

ITEM 9 THE OFFER AND LISTING

A. Offer and Listing Details

Not applicable.

B. Plan of Distribution

Not applicable.

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C. Markets

Not applicable.

D. Selling Shareholders

Not applicable.

E. Dilution

Not applicable.

F. Expenses of the Issue

Not applicable.

ITEM 10 ADDITIONAL INFORMATION

A. Share Capital

Not applicable.

B. Memorandum and Articles of Association

General

The following is a summary of the terms of our subordinate voting shares, multiple voting shares and preferred shares, as set
forth in our notice of articles and articles, and certain related sections of the BCBCA. The following summary is subject to, and
is qualified in its entirety by reference to, the provisions of our articles, filed as an exhibit to this Annual Report, and the
applicable provisions of the BCBCA.

Authorized Share Capital

Our share capital consists of an unlimited number of subordinate voting shares, an unlimited number of multiple voting shares
and an unlimited number of preferred shares, issuable in series.

Subordinate Voting Shares and Multiple Voting Shares

Holders of our multiple voting shares are entitled to 10 votes per multiple voting share and holders of subordinate
voting shares are entitled to one vote per subordinate voting share on all matters upon which holders of shares are
entitled to vote. Subject to the prior rights of the holders of our preferred shares, the holders of our multiple voting shares and
subordinate voting shares are entitled to receive dividends as and when declared by our board of directors, without preference
or distinction among or between the subordinate voting shares and the multiple voting shares. See “Item 8—Financial
Statements—Dividend Policy”. Subject to the prior payment to the holders of our preferred shares, if any, in the event of our
liquidation, dissolution or winding-up or other distribution of our assets among our shareholders, the holders of our multiple
voting shares and subordinate voting shares are entitled to share pro rata in the distribution of the balance of our assets, without
preference or distinction among or between the subordinate voting shares and the multiple voting shares. Holders of multiple
voting shares and subordinate voting shares have no preemptive or conversion or exchange rights or other subscription rights,
except that each outstanding multiple voting share may at any time, at the option of the holder, be converted into one
subordinate voting share and our multiple voting shares will automatically convert into subordinate voting shares upon certain
transfers and other events, as described below under “—Conversion”. There are no redemption, retraction, purchase for
cancellation or surrender provisions or sinking or purchase fund provisions applicable to our subordinate voting shares or
multiple voting shares. There is no provision in our articles requiring holders of subordinate voting shares or multiple voting
shares to contribute additional capital, or permitting or restricting the issuance of additional securities or any other material
restrictions. The special rights or restrictions attached to the subordinate voting shares and multiple voting shares are subject to
and may be adversely affected by, the rights attached to any series of preferred shares that we may designate in the future.

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Conversion

The subordinate voting shares are not convertible into any other class of shares. Each outstanding multiple voting share may at
any time, at the option of the holder, be converted into one subordinate voting share. Upon the first date that any multiple
voting share is held by a person other than by a Permitted Holder (as defined below), the Permitted Holder which held such
multiple voting share until such date, without any further action, shall automatically be deemed to have exercised his, her or its
rights to convert such multiple voting share into a fully paid and non-assessable subordinate voting share.

In addition:

• all multiple voting shares held by the TELUS Permitted Holders will convert automatically into subordinate
voting shares at such time as the TELUS Permitted Holders that hold multiple voting shares no longer as a group
beneficially own, directly or indirectly and in the aggregate, at least 10% of the issued and outstanding
subordinate voting shares and multiple voting shares; and

• all multiple voting shares held by the BPEA Permitted Holders will convert automatically into subordinate voting
shares at such time as the BPEA Permitted Holders that hold multiple voting shares no longer as a group
beneficially own, directly or indirectly and in the aggregate, at least 10% of the issued and outstanding
subordinate voting shares and multiple voting shares.

For the purposes of the foregoing:

“Affiliate” means, with respect to any specified Person, any other Person which directly or indirectly through one or
more intermediaries controls, is controlled by, or is under common control with such specified Person;

“BPEA Permitted Holders” means any funds managed or advised by BPEA or any of its Affiliates, in each case
provided that it is controlled, directly or indirectly, or managed or advised by BPEA or an Affiliate of BPEA;

“Permitted Holders” means any of (i) the BPEA Permitted Holders, and (ii) the TELUS Permitted Holders;

“Person” means any individual, partnership, corporation, company, association, trust, joint venture, limited liability
company or other entity;

“TELUS Permitted Holders” means TELUS and any of its Affiliates, in each case provided that it is controlled,
directly or indirectly, or managed by TELUS or an Affiliate of TELUS;

A Person is “controlled” by another Person or other Persons if: (i) in the case of a company or other body corporate
wherever or however incorporated: (A) securities entitled to vote in the election of directors carrying in the aggregate at least a
majority of the votes for the election of directors and representing in the aggregate at least a majority of the participating
(equity) securities are held, other than by way of security only, directly or indirectly, by or solely for the benefit of the other
Person or Persons; and (B) the votes carried in the aggregate by such securities are entitled, if exercised, to elect a majority of
the board of directors of such company or other body corporate; or (ii) in the case of a Person that is not a company or other
body corporate, at least a majority of the participating (equity) and voting interests of such Person are held, directly or
indirectly, by or solely for the benefit of the other Person or Persons; and “controls”, “controlling” and “under common control
with” shall be interpreted accordingly.

Preferred Shares

Under our articles, preferred shares may be issued in one or more series. Accordingly, our board of directors is authorized,
without shareholder approval but subject to the provisions of the BCBCA, to determine the maximum number of shares of each
series, create an identifying name for each series and attach such special rights or restrictions, including dividend, liquidation
and voting rights, as our board of directors may determine, and such special rights or restrictions, including dividend,
liquidation and voting rights, may be superior to those of each of the subordinate voting shares and the multiple voting shares.
The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate
purposes, could, among other things, have the effect of delaying, deferring or preventing a change of control of our Company
and might adversely affect the market price of our subordinate voting shares and multiple voting shares and the voting and other
rights of the holders of subordinate voting shares and multiple voting shares. We have no current plan to issue any preferred
shares.

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Certain Important Provisions of our Articles and the BCBCA

The following is a summary of certain important provisions of our articles and certain related sections of the BCBCA. Please
note that this is only a summary and is not intended to be exhaustive. This summary is subject to, and is qualified in its entirety
by reference to, the provisions of our articles and the BCBCA.

In addition, the shareholders’ agreement entered into among us, TELUS and BPEA contains certain restrictions on
your rights as a shareholder. See “Item 7B—Related Party Transactions—Our Relationship with TELUS and BPEA—
Shareholders’ Agreement”.

Stated Objects or Purposes

Our articles do not contain stated objects or purposes and do not place any limitations on the business that we may carry on.

Directors

Power to vote on matters in which a director is materially interested. Under the BCBCA a director who has a material interest
in a contract or transaction, whether made or proposed, that is material to us, must disclose such interest to us, subject to certain
exceptions such as if the contract or transaction: (i) is an arrangement by way of security granted by us for money loaned to, or
obligations undertaken by, the director for our benefit or for one of our affiliates’ benefit; (ii) relates to an indemnity or
insurance permitted under the BCBCA; (iii) relates to the remuneration of the director in their capacity as director, officer,
employee or agent of our Company or of one of our affiliates; (iv) relates to a loan to our Company while the director is the
guarantor of some or all of the loan; or (v) is with a corporation that is affiliated with us while the director is also a director or
senior officer of that corporation or an affiliate of that corporation.

A director who holds such disclosable interest in respect of any material contract or transaction into which we have
entered or propose to enter may be required to absent himself or herself from the meeting while discussions and voting with
respect to the matter are taking place. A director who holds a disclosable interest may also be liable to account to us for any
profit that accrues to the director under or as a result of a contract or transaction in which the director holds a disclosable
interest, unless the contract or transaction is: (a) approved by the other directors or by a special resolution of the shareholders,
or (b) the contract or transaction was entered into before the individual became a director, the disclosable interest was disclosed
to the other directors and shareholders and the director who holds the disclosable interest does not vote on any decision or
resolution touching on the contract or transaction. Directors will also be required to comply with certain other relevant
provisions of the BCBCA regarding conflicts of interest.

Number of shares required to be owned by a director. Neither our articles nor the BCBCA provide that a director is
required to hold any of our shares as a qualification for holding their office. Our board of directors has discretion to prescribe
minimum share ownership requirements for directors.

Issuance of Additional Multiple Voting Shares

We may not issue multiple voting shares without applicable regulatory, stock exchange and shareholder approval. However,
approval is not required in connection with a subdivision or consolidation on a pro rata basis as between the subordinate voting
shares and the multiple voting shares.

Subdivision or Consolidation

No subdivision or consolidation of the subordinate voting shares or the multiple voting shares may be carried out unless, at the
same time, the multiple voting shares or the subordinate voting shares, as the case may be, are subdivided or consolidated in the
same manner and on the same basis.

Certain Amendments and Change of Control

In addition to any other voting right or power to which the holders of subordinate voting shares shall be entitled by law or
regulation or other provisions of our articles from time to time in effect, but subject to the provisions of our articles, holders of
subordinate voting shares shall be entitled to vote separately as a class, in addition to any other vote of our shareholders that
may be required, in respect of any alteration, repeal or amendment of our articles which would adversely affect the rights or
special rights of the holders of subordinate voting shares or affect the holders of subordinate voting shares and multiple voting

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shares differently, on a per share basis, including an amendment to our articles that provides that any multiple voting shares
sold or transferred to a Person that is not a Permitted Holder shall be automatically converted into subordinate voting shares.

Pursuant to our articles, holders of subordinate voting shares and multiple voting shares are treated equally and
identically, on a per share basis, in certain change of control transactions that require approval of our shareholders under the
BCBCA, unless different treatment of the shares of each such class is approved by a majority of the votes cast by the holders of
our subordinate voting shares and multiple voting shares, each voting separately as a class.

Our articles do not otherwise contain any change of control limitations with respect to a merger, acquisition or
corporate restructuring that involves us.

Shareholder Meetings

Subject to applicable stock exchange requirements, we must hold a general meeting of our shareholders at least once every year
at a time and place determined by our board of directors, provided that the meeting must not be held later than 15 months after
the preceding annual general meeting. A meeting of our shareholders may be held anywhere in or outside British Columbia.

A notice to convene a meeting, specifying the date, time and location of the meeting, and, where a meeting is to
consider special business, the general nature of the special business must be sent to each shareholder entitled to attend the
meeting and to each director not less than 21 days and no more than 60 days prior to the meeting, although, as a result of
applicable securities laws, the minimum time for notice is effectively longer in most circumstances. Under the BCBCA,
shareholders entitled to notice of a meeting may waive or reduce the period of notice for that meeting, provided applicable
securities laws are met. The accidental omission to send notice of any meeting of shareholders to, or the non-receipt of any
notice by, any person entitled to notice does not invalidate any proceedings at that meeting.

Our articles also provide that no business may be transacted at an annual general meeting other than business that is
either (i) specified in our notice of meeting (or any supplement) given by or at the direction of our board; (ii) otherwise properly
brought before the annual general meeting by or at the direction of our board; or (iii) otherwise properly brought before the
annual general meeting by any of our shareholders who complies with the proposal procedures in our articles. For business to
be properly brought before an annual general meeting by one of our shareholders, the shareholder must submit a proposal to us
for inclusion in our management proxy circular in accordance with the requirements of the BCBCA, and we must set out in, or
attach, the proposal to our management proxy circular, subject to certain exceptions permitted by the BCBCA. Similarly, at a
special meeting of shareholders, only business that has been brought before the meeting pursuant to our notice of meeting will
be carried out.

A quorum for meetings of shareholders is present if shareholders who, in the aggregate, hold at least 25% of the issued
shares plus at least a majority of multiple voting shares entitled to be voted at the meeting are present in person or represented
by proxy. If a quorum is not present at the opening of any meeting of shareholders, the meeting stands adjourned to a fixed time
and place determined by the chair or by the directors, unless the meeting was requisitioned by shareholders, in which case the
meeting is dissolved.

Holders of our subordinate voting shares and multiple voting shares are entitled to attend and vote at meetings of our
shareholders except meetings at which only holders of a particular class or series are entitled to vote. Except as otherwise
provided with respect to any particular series of preferred shares, and except as otherwise required by law, the holders of our
preferred shares are not entitled as a class to receive notice of, or to attend or vote at any meetings of our shareholders. Our
directors, our secretary (if any), our auditor and any other persons invited by our chair or directors or with the consent of those
at the meeting are entitled to attend any meeting of our shareholders but will not be counted in the quorum or be entitled to vote
at the meeting unless they are a shareholder or proxyholder entitled to vote at the meeting.

Shareholder Proposals and Advance Notice Procedures

Under the BCBCA, qualified shareholders holding at least one percent (1%) of our issued voting shares may make proposals for
matters to be considered at the annual general meeting of shareholders. Such proposals must be sent to us in advance of any
proposed meeting by delivering a timely written notice in proper form to our registered office in accordance with the
requirements of the BCBCA. The notice must include information on the business the shareholder intends to bring before the
meeting. To be a qualified shareholder, a shareholder must currently be and have been a registered or beneficial owner of at
least one share of the Company for at least two years before the date of signing the proposal.

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We have included certain advance notice provisions with respect to the election of our directors in our articles
(Advance Notice Provisions). The Advance Notice Provisions are intended to: (i) facilitate orderly and efficient annual general
meetings or, where the need arises, special meetings; (ii) ensure that all shareholders receive adequate notice of board
nominations and sufficient information with respect to all nominees; and (iii) allow shareholders to register an informed vote.
Only persons who are nominated in accordance with the Advance Notice Provisions will be eligible for election as directors at
any annual meeting of shareholders, or at any special meeting of shareholders if one of the purposes for which the special
meeting was called was the election of directors.

Under the Advance Notice Provisions, a shareholder wishing to nominate a director would be required to provide us
notice, in the prescribed form, within the prescribed time periods. These time periods include, (i) in the case of an annual
meeting of shareholders (including annual and special meetings), not less than 30 days prior to the date of the annual meeting of
shareholders; provided, that if the first public announcement of the date of the annual meeting of shareholders (Notice Date) is
less than 50 days before the meeting date, not later than the close of business on the 10th day following the Notice Date; and
(ii) in the case of a special meeting (which is not also an annual meeting) of shareholders called for any purpose which includes
electing directors, not later than the close of business on the 15th day following the day on which the first public announcement
of the date of the special meeting of shareholders was made, provided that, in either instance, if notice-and-access (as defined in
National Instrument 54-101—Communication with Beneficial Owners of Securities of a Reporting Issuer) is used for delivery
of proxy related materials in respect of a meeting described above, and the applicable notice date in respect of the meeting is not
less than 50 days prior to the date of the applicable meeting, the notice must be received not later than the close of business on
the 40th day before the applicable meeting.

These provisions could have the effect of delaying until the next shareholder meeting the nomination of certain persons
for director that are favored by the holders of our outstanding voting securities.

Take-Over Bid Protection

Under applicable securities laws in Canada, an offer to purchase multiple voting shares would not necessarily require that an
offer be made to purchase subordinate voting shares. In accordance with the rules of the TSX designed to ensure that, in the
event of a take-over bid, the holders of subordinate voting shares will be entitled to participate on an equal footing with holders
of multiple voting shares, the holders of multiple voting shares entered into a customary coattail agreement with us and a trustee
(Coattail Agreement). The Coattail Agreement contains provisions customary for dual-class, TSX-listed corporations designed
to prevent transactions that otherwise would deprive the holders of subordinate voting shares of rights under applicable
securities laws in Canada to which they would have been entitled if the multiple voting shares had been subordinate voting
shares.

The undertakings in the Coattail Agreement will not apply to prevent a sale by the holders of multiple voting shares or
their Permitted Holders of multiple voting shares if concurrently an offer is made to purchase subordinate voting shares that:

• offers a price per subordinate voting share at least as high as the highest price per share to be paid pursuant to the
take-over bid for the multiple voting shares;

• provides that the percentage of outstanding subordinate voting shares to be taken up and paid for (exclusive of
subordinate voting shares owned immediately prior to the offer by the offeror or persons acting jointly or in
concert with the offeror) is at least as high as the percentage of multiple voting shares to be taken up and paid for
(exclusive of multiple voting shares owned immediately prior to the offer by the offeror and persons acting jointly
or in concert with the offeror);

• has no condition attached other than the right not to take up and pay for subordinate voting shares tendered if no
shares are purchased pursuant to the offer for multiple voting shares; and

• is in all other material respects identical to the offer for multiple voting shares.

In addition, the Coattail Agreement does not prevent the sale of multiple voting shares to Permitted Holders, provided such sale
is not or would not have been subject to the requirements to make a take-over bid (if the vendor or transferee were in Canada)
or is exempt or would be exempt from certain requirements applicable to take-over bids under applicable securities laws in
Canada. The conversion of multiple voting shares into subordinate voting shares, whether or not such subordinate voting shares
are subsequently sold, would not constitute a disposition of multiple voting shares for the purposes of the Coattail Agreement.

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Under the Coattail Agreement, any sale of multiple voting shares by a holder of multiple voting shares party to the
Coattail Agreement is conditional upon the transferee becoming a party to the Coattail Agreement, to the extent such transferred
multiple voting shares are not automatically converted into subordinate voting shares in accordance with our articles.

The Coattail Agreement contains provisions for authorizing action by the trustee to enforce the rights under the
Coattail Agreement on behalf of the holders of the subordinate voting shares. The obligation of the trustee to take such action is
conditional on us or holders of the subordinate voting shares providing such funds and indemnity as the trustee may reasonably
require. No holder of subordinate voting shares has the right, other than through the trustee, to institute any action or proceeding
or to exercise any other remedy to enforce any rights arising under the Coattail Agreement unless the trustee fails to act on a
request authorized by holders of not less than 10% of the outstanding subordinate voting shares and reasonable funds and
indemnity have been provided to the trustee.

Other than in respect of non-material amendments and waivers that do not adversely affect the interests of holders of
subordinate voting shares, the Coattail Agreement provides that, among other things, it may not be amended, and no provision
thereof may be waived, unless, prior to giving effect to such amendment or waiver, the following have been obtained: (a) the
consent of the TSX and any other applicable securities regulatory authority in Canada; and (b) the approval of at least two-
thirds of the votes cast by holders of subordinate voting shares represented at a meeting duly called for the purpose of
considering such amendment or waiver, excluding votes attached to subordinate voting shares held by the holders of multiple
voting shares or their respective permitted transferees and any persons who have an agreement to purchase multiple voting
shares on terms which would constitute a sale or disposition for purposes of the Coattail Agreement, other than as permitted
thereby.

No provision of the Coattail Agreement limits the rights of any holders of subordinate voting shares under applicable
law.

Forum Selection

We have included a forum selection provision in our articles that provides that, unless we consent in writing to the selection of
an alternative forum, the Supreme Court of British Columbia, Canada and the appellate courts therefrom, will be the sole and
exclusive forum for (i) any derivative action or proceeding brought on our behalf; (ii) any action or proceeding asserting a claim
of breach of a fiduciary duty owed by any of our directors, officers, or other employees to us; (iii) any action or proceeding
asserting a claim arising pursuant to any provision of the BCBCA or our articles; or (iv) any action or proceeding asserting a
claim otherwise related to the relationships among us, our affiliates and their respective shareholders, directors and/or officers,
but excluding claims related to our business or such affiliates. The forum selection provision also provides that our
securityholders are deemed to have consented to the personal jurisdiction of the courts in the Province of British Columbia and
to service of process on their counsel in any foreign action initiated in violation of the foregoing provisions. This forum
selection provision does not apply to any causes of action arising under the Securities Act, or the Exchange Act. The Securities
Act provides that both federal and state courts have concurrent jurisdiction over suits brought to enforce any duty or liability
under the Securities Act or the rules and regulations thereunder, and the Exchange Act provides that federal courts have
exclusive jurisdiction over suits brought to enforce any duty or liability under the Exchange Act or the rules and regulations
thereunder. Unless we consent in writing to the selection of an alternative forum, the United States District Court for the
Southern District of New York (or, if the United States District Court for the Southern District of New York lacks subject
matter jurisdiction over a particular dispute, the state courts in New York County, New York) shall be the sole and exclusive
forum for resolving any complaint filed in the United States asserting a cause of action arising under the Securities Act and the
Exchange Act. Investors cannot waive, and accepting or consenting to this forum selection provision does not represent a
waiver of compliance with U.S. federal securities laws and the rules and regulations thereunder.

Limitation of Liability and Indemnification

Under the BCBCA, a company may indemnify: (i) a current or former director or officer of that company; (ii) a current or
former director or officer of another corporation if, at the time such individual held such office, the corporation was an affiliate
of the company, or if such individual held such office at the company’s request; or (iii) an individual who, at the request of the
company, held, or holds, an equivalent position in another entity (an “indemnifiable person”) against all costs, charges and
expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by him or her in respect of any
civil, criminal, administrative or other legal proceeding or investigative action (whether current, threatened, pending or
completed) in which they are involved because of that person’s position as an indemnifiable person, unless: (i) the individual
did not act honestly and in good faith with a view to the best interests of such company or the other entity, as the case may be;
or (ii) in the case of a proceeding other than a civil proceeding, the individual did not have reasonable grounds for believing that
the individual’s conduct in respect of which proceeding was brought was lawful. A company cannot indemnify an

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indemnifiable person if it is prohibited from doing so under its articles or by applicable law. A company may pay, as they are
incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an
indemnifiable person in respect of that proceeding, but only if the indemnifiable person has provided an undertaking that, if it is
ultimately determined that the payment of expenses was prohibited, the indemnifiable person will repay any amounts advanced.
Subject to the aforementioned prohibitions on indemnification, a company must, after the final disposition of an eligible
proceeding, pay the expenses actually and reasonably incurred by an indemnifiable person in respect of such eligible
proceeding if such indemnifiable person has not been reimbursed for such expenses, and was wholly successful, on the merits
or otherwise, in the outcome of such eligible proceeding or was substantially successful on the merits in the outcome of such
eligible proceeding. On application of an indemnifiable person or us, a court may make any order the court considers
appropriate in respect of an eligible proceeding, including the indemnification of penalties imposed or expenses incurred in any
such proceedings and the enforcement of an indemnification agreement. As permitted by the BCBCA, our articles require us to
indemnify our directors, officers, former directors or officers (and such individual’s respective heirs and legal representatives)
and permit us to indemnify any person to the extent permitted by the BCBCA.

C. Material Contracts

We have not entered into any material contracts outside the ordinary course of business other than as described below or
elsewhere in this Annual Report or its exhibits.

Second Amended & Restated Limited Liability Company Agreement of WillowTree

The Second Amended and Restated Limited Liability Company Agreement of WLTR Holdings, LLC (the “Second
A&R LLCA”) was adopted on January 3, 2023 in connection with our acquisition of WillowTree. The operations of
WillowTree, and the rights and obligations of the members of WLTR Holdings, LLC (the “Surviving Company”), are set forth
in the Second A&R LLC Agreement.

Capitalization. The Second A&R LLCA provides for two classes of limited liability company interests (represented
by units): “Class A Units” and “Class B Units,” with all units within a class having identical rights and privileges to the other
units within such class. Except as required by law, the Class A Units do not entitle the holders thereto to any voting rights.
Each Class B Unit entitles the holder thereof to one vote.

Class A Unit Redemption Right. Certain management and employee members of WillowTree (or participation
vehicles through which management members and employees of WillowTree hold equity interests therein) have entered into
rollover agreements with TELUS International USA and WillowTree pursuant to which such members have agreed that a
portion of their equity interests in WillowTree was converted into Class A Units in the Surviving Company.

The Second A&R LLCA also contemplates that a reinvestment program will be implemented pursuant to which
certain employees of WillowTree may be invited to reinvest a portion of their after-tax proceeds from their option cancellations
or transaction bonuses (or, in certain cases, other funds) in the Surviving Company and be subject to the same redemption
mechanism should they elect to do so. Four members of WillowTree management already committed to participate in the
reinvestment program.

The Second A&R LLCA provides for redemption rights for each holder of Class A Units, on the one hand, and the
Surviving Company, on the other hand, which entitle the holder thereof, at the election of either the relevant holder thereof or
the Surviving Company, to have a portion of the Class A Units redeemed after the end of calendar year 2025, 2026 and 2027
(each, a “Redemption”), in exchange for a redemption consideration that will be determined based on the aggregate revenue of
the Surviving Company and its subsidiaries (the “WillowTree Group”) in the relevant year, the compounded revenue growth of
WillowTree Group until the end of the relevant year and the cumulative profitability margin of the business of WillowTree
Group. Up to 70% of the redemption payments may, at the option of the Surviving Company, be settled in subordinate voting
shares of the Company (“Company Shares”), in which case the number of Company Shares to be issued would be based on a
volume-weighted average over a thirty-trading day trading period ending on third business day before the relevant settlement
date.
In addition, the Second A&R LLCA contemplates that certain service providers of WillowTree will be eligible to
receive unit appreciation rights with an aggregate value of up to a maximum of $120,000,000, calculated based on
WillowTree’s performance, which may be settled in cash or Company Shares pursuant to the Company’s 2021 Omnibus
Incentive Plan on the same schedule as the Redemption payments. Total payments made by the Company to settle any unit
appreciation rights outstanding following each Redemption will be deducted from the total redemption payments to be made to
holders of Class A Units.

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Governance. The Second A&R LLCA provides that TELUS International USA is the “Principal Member” of the
Surviving Company and New WT Parent, Inc., a participation vehicle through which certain management members and
employees of WillowTree hold interests in the Surviving Company, is the “Class A Representative Member”. The business and
affairs of the Surviving Company will be managed under the authority and direction of a board of directors. As the Principal
Member, TELUS International USA will be entitled to appoint a majority of the members of the board of directors.

D. Exchange Controls

There is no limitation imposed by Canadian law or by our articles on the right of a non-resident to hold or vote our subordinate
voting shares or multiple voting shares, other than discussed below.

Competition Act

Limitations on the ability to acquire and hold our subordinate voting shares and multiple voting shares may be imposed by the
Competition Act (Canada). This legislation permits the Commissioner of Competition (Commissioner), to review any
acquisition or establishment, directly or indirectly, including through the acquisition of shares, of control over or of a significant
interest in us. This legislation grants the Commissioner jurisdiction, for up to one year after the acquisition has been
substantially completed, to challenge this type of acquisition by seeking a remedial order, including an order to prohibit the
acquisition or require divestitures, from the Canadian Competition Tribunal, which may be granted where the Competition
Tribunal finds that the acquisition substantially prevents or lessens, or is likely to substantially prevent or lessen, competition.

This legislation also requires any person or persons who intend to acquire more than 20% of our voting shares or, if
such person or persons already own more than 20% of our voting shares prior to the acquisition, more than 50% of our voting
shares, to file a notification with the Canadian Competition Bureau if certain financial thresholds are exceeded. Where a
notification is required, unless an exemption is available, the legislation prohibits completion of the acquisition until the
expiration of the applicable statutory waiting period, unless the Commissioner either waives or terminates such waiting period
or issues an advance ruling certificate. The Commissioner’s review of a notifiable transaction for substantive competition law
considerations may take longer than the statutory waiting period.

Investment Canada Act

The Investment Canada Act requires each “non Canadian” (as defined in the Investment Canada Act) who acquires “control” of
an existing “Canadian business”, to file a notification in prescribed form with the responsible federal government department or
departments not later than 30 days after closing, provided the acquisition of control is not a reviewable transaction under the
Investment Canada Act. Subject to certain exemptions, a transaction that is reviewable under the Investment Canada Act may
not be implemented until an application for review has been filed and the responsible Minister of the federal cabinet has
determined that the investment is likely to be of “net benefit to Canada” taking into account certain factors set out in the
Investment Canada Act. Under the Investment Canada Act, an investment in our subordinate voting shares or multiple voting
shares by a non-Canadian that is ultimately controlled in a country that has a free trade agreement with Canada (or the United
Kingdom), including a United States investor, would be reviewable only if it were an investment to acquire control of us
pursuant to the Investment Canada Act and our enterprise value (as determined pursuant to the Investment Canada Act and its
regulations) was equal to or greater than the amount specified, which is currently C$1.711 billion. For other investors who are
not state-owned enterprises and who are ultimately controlled by World Trade Organization members, the threshold is currently
C$1.141 billion for 2022.

The Investment Canada Act contains various rules to determine if there has been an acquisition of control. Generally,
for purposes of determining whether an investor has acquired control of a corporation by acquiring shares, the following
general rules apply, subject to certain exceptions: the acquisition of a majority of the undivided ownership interests in the
voting shares of the corporation is deemed to be acquisition of control of that corporation; the acquisition of less than a
majority, but one-third or more, of the voting shares of a corporation or of an equivalent undivided ownership interest in the
voting shares of the corporation is presumed to be acquisition of control of that corporation unless it can be established that, on
the acquisition, the corporation is not controlled in fact by the acquirer through the ownership of voting shares; and the
acquisition of less than one-third of the voting shares of a corporation or of an equivalent undivided ownership interest in the
voting shares of the corporation is deemed not to be acquisition of control of that corporation.

Under the national security review regime in the Investment Canada Act, review on a discretionary basis may also be
undertaken by the federal government in respect to a much broader range of investments by a non-Canadian to “acquire, in
whole or part, or to establish an entity carrying on all or any part of its operations in Canada”. No financial threshold applies to
a national security review. The relevant test is whether such investment by a non-Canadian could be “injurious to national

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security”. The responsible ministers have broad discretion to determine whether an investor is a non-Canadian and therefore
subject to national security review. Review on national security grounds is at the discretion of the responsible ministers, and
may occur on a pre- or post-closing basis.

Certain transactions relating to our subordinate voting shares and multiple voting shares will generally be exempt from
the Investment Canada Act, subject to the federal government’s prerogative to conduct a national security review, including:

• the acquisition of our subordinate voting shares and multiple voting shares by a person in the ordinary course of
that person’s business as a trader or dealer in securities;

• the acquisition of control of us in connection with the realization of security granted for a loan or other financial
assistance and not for any purpose related to the provisions of the Investment Canada Act; and

• the acquisition of control of us by reason of an amalgamation, merger, consolidation or corporate reorganization

following which the ultimate direct or indirect control in fact of us, through ownership of our subordinate voting
shares and multiple voting shares, remains unchanged.

Other

There is no law, governmental decree or regulation in Canada that restricts the export or import of capital, or that would affect
the remittance of dividends (if any) or other payments by us to non-resident holders of our subordinate voting shares and
multiple voting shares, other than withholding tax requirements.

E. Taxation

U.S. Federal Income Tax Considerations for U.S. Persons

The following discussion is a general summary of the U.S. federal income tax consequences relating to a U.S. Holder, as
defined below, of the ownership and disposition of the subordinate voting shares. This summary does not purport to be a
comprehensive description of all of the U.S. federal income tax considerations that may be relevant to a particular person’s
decision to acquire the subordinate voting shares. This discussion is based on the U.S. Internal Revenue Code of 1986, as
amended (Code) and U.S. Treasury regulations promulgated thereunder, as well as judicial and administrative interpretations
thereof and the income tax treaty between the United States and Canada (Treaty), in each case as in effect as of the date of this
Annual Report. All of the foregoing authorities are subject to change, which change could apply retroactively and could affect
the tax consequences described below, and there can be no assurance that the IRS or U.S. courts will agree with the tax
consequences described in this summary. The Company undertakes no obligation to publicly update or otherwise revise this
summary whether as a result of new U.S. Treasury regulations, Code sections, judicial and administrative interpretations or
otherwise.

This summary applies only to U.S. Holders (as defined below) that hold the subordinate voting shares as capital assets
within the meaning of Section 1221 of the Code (generally, property held for investment). This summary does not address any
U.S. federal estate and gift tax, alternative minimum tax or Medicare tax on net investment income consequences, or any U.S.
state or local or non-U.S. tax consequences. This summary also does not address the tax considerations that may be relevant to
certain types of investors subject to special treatment under U.S. federal income tax laws, such as:

• banks and other financial institutions;

• insurance companies;

• regulated investment companies or real estate investment trusts;

• dealers or traders in securities or currencies that use a mark-to-market method of accounting;

• tax exempt organizations, retirement plans, individual retirement accounts and other tax deferred accounts;

• persons holding the subordinate voting shares as part of a straddle, hedging, conversion or integrated transaction
for U.S. federal income tax purposes;

• U.S. expatriates;

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• persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;

• any entity or arrangement classified as a partnership for U.S. federal income tax purposes or investors therein;

• persons who own or are deemed to own, directly or constructively, 10% or more of the Company’s subordinate
voting shares (by vote or value);

• persons holding the subordinate voting shares in connection with a trade or business conducted outside the United
States; or

• persons who do not qualify for the benefits of the Treaty.

THE SUMMARY OF U.S. FEDERAL INCOME TAX CONSEQUENCES SET OUT BELOW IS FOR GENERAL
INFORMATION ONLY. PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR TAX ADVISORS
REGARDING THE APPLICATION OF THE U.S. FEDERAL TAX RULES TO THEIR PARTICULAR CIRCUMSTANCES
AS WELL AS THE STATE, LOCAL, NON-U.S. AND OTHER TAX CONSEQUENCES TO THEM OF THE
ACQUISITION, OWNERSHIP AND DISPOSITION OF THE SUBORDINATE VOTING SHARES.

As used herein, “U.S. Holder” means a beneficial owner of subordinate voting shares that is (i) an individual who is a
citizen or resident of the United States for U.S. federal income tax purposes (which includes a “green card holder”), (ii) a
corporation (or other entity taxable as a corporation for U.S. federal tax purposes) created or organized under the laws of the
United States, any state thereof or the District of Columbia, (iii) an estate the income of which is subject to U.S. federal income
tax regardless of its source, or (iv) a trust that (a) is subject to the primary supervision of a court within the United States and
for which one or more U.S. persons have authority to control all substantial decisions or (b) has a valid election in effect under
applicable Treasury Regulations to be treated as a U.S. person.

The U.S. federal income tax treatment of a partner in an entity or arrangement treated as a partnership for U.S. federal
income tax purposes that holds the subordinate voting shares generally will depend on the status of the partner and the activities
of the partnership. Partnerships considering an investment in the subordinate voting shares and partners in such partnerships are
urged to consult their tax advisors regarding the specific U.S. federal income tax consequences to them of the acquisition,
ownership and disposition of the subordinate voting shares.

Distributions on the Subordinate Voting Shares

Subject to the PFIC rules discussed below, the gross amount of any distribution made by the Company to a U.S. Holder with
respect to the subordinate voting shares (including the amount of any Canadian taxes withheld therefrom) generally will be
included in such holder’s gross income as non-U.S. source dividend income in the year actually or constructively received, but
only to the extent that the distribution is paid out of the Company’s current or accumulated earnings and profits (as determined
under U.S. federal income tax principles). As a non-U.S. company, the Company does not maintain calculations of its earnings
and profits under U.S. federal income tax principles. Therefore, it is expected that any distributions generally will be reported to
U.S. Holders as dividends. Any dividends that the Company pays will not be eligible for the dividends-received deduction
allowed to certain corporate U.S. Holders.

With respect to certain non-corporate U.S. Holders, including individual U.S. Holders, dividends may be eligible to be
taxed at favorable rates applicable to “qualified dividend income”, provided that (1) the subordinate voting shares are readily
tradable on an established securities market in the United States or the Company is eligible for the benefits of a qualifying
income tax treaty with the United States that includes an exchange of information program (such as the Treaty), (2) the
Company is not a PFIC (as discussed below) with respect to the relevant U.S. Holder for either its taxable year in which the
dividend is paid or the preceding taxable year and (3) certain minimum holding period and other requirements are met. Pursuant
to IRS authority, the subordinate voting shares should be considered for the purpose of clause (1) above to be readily tradable
on an established securities market in the United States if they continue to be listed on the NYSE. U.S. Holders are urged to
consult their tax advisors regarding the availability of the favorable rate applicable to qualified dividend income for any
dividends the Company pays with respect to the subordinate voting shares.

Any dividends the Company pays to U.S. Holders generally will constitute non-U.S. source “passive category” income
for U.S. foreign tax credit limitation purposes. Subject to certain limitations, Canadian tax withheld with respect to distributions
made on the subordinate voting shares may be treated as foreign taxes eligible for credit against a U.S. Holder’s U.S. federal
income tax liability. Alternatively, a U.S. Holder may, subject to applicable limitations, elect to deduct the otherwise creditable
Canadian withholding taxes for U.S. federal income tax purposes. The rules governing the foreign tax credit are complex and

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involve the application of rules that depend upon a U.S. Holder’s particular circumstances. Accordingly, a U.S. Holder is urged
to consult its tax advisor regarding the availability of the foreign tax credit under its particular circumstances.

Sale, Exchange or Other Taxable Disposition of the Subordinate Voting Shares

Subject to the PFIC rules discussed below, a U.S. Holder generally will recognize gain or loss upon the taxable sale, exchange
or other disposition of the subordinate voting shares in an amount equal to the difference between (i) the U.S. dollar value of the
amount realized upon the sale, exchange or other taxable disposition and (ii) such U.S. Holder’s adjusted tax basis in the
subordinate voting shares. Generally, such gain or loss will be capital gain or loss and will be long- term capital gain or loss if,
on the date of the sale, exchange or other taxable disposition, such U.S. Holder has held the subordinate voting shares for more
than one year. If such U.S. Holder is an individual or other non-corporate U.S. Holder, long-term capital gains will be subject to
a reduced maximum U.S. federal income tax rate. The deductibility of capital losses is subject to limitations under the Code.
Gain or loss, if any, that a U.S. Holder realizes upon a sale, exchange or other taxable disposition of the subordinate voting
shares generally will be treated as having a U.S. source for U.S. foreign tax credit limitation purposes.

PFIC Rules

The taxation of U.S. Holders will depend on whether the Company is treated as a PFIC for U.S. federal income tax purposes. A
non-U.S. corporation will be a PFIC in any taxable year in which either (i) at least 75% of its gross income is “passive income”
or (ii) at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is
attributable to assets which produce passive income or are held for the production of passive income. Passive income generally
includes dividends, interest, royalties, rents and gains from commodities and securities transactions. The Company will be
treated as owning a proportionate share of the assets and earning a proportionate share of the income of any other corporation in
which it owns, directly or indirectly, more than 25% by value of the shares of such other corporation.

Based on the Company’s income, assets and business activities, including the receipt and application of the proceeds
of the issue and sale of the subordinate voting shares, the Company does not believe that it was a PFIC for its 2022 taxable year
and the Company expects that it will not be classified as a PFIC for U.S. federal income tax purposes for its current taxable year
or in the near future. The determination of PFIC status is made annually at the end of each taxable year and is dependent upon a
number of factors, some of which are beyond the Company’s control, including the relative values of the Company’s assets and
its subsidiaries, and the amount and type of their income. As a result, there can be no assurance that the Company will not be a
PFIC in 2023 or any subsequent year or that the IRS will agree with the Company’s conclusion regarding its PFIC status and
would not successfully challenge our position.

If the Company were to be treated as a PFIC in any taxable year, in addition to certain form filing requirements, U.S.
Holders of the subordinate voting shares generally would be subject to additional taxes (including taxation at ordinary income
rates and an interest charge) under the PFIC excess distribution rule on any “excess distributions” received from the Company
and on any gain realized from a sale or other disposition of such subordinate voting shares, regardless of whether the Company
continues to be a PFIC in the year such distribution is received or gain is realized. A U.S. Holder would be treated as receiving
an excess distribution in a taxable year to the extent that distributions on the subordinate voting shares during that year exceed
125% of the average amount of distributions received during the three preceding taxable years (or, if shorter, the U.S. Holder’s
holding period in the subordinate voting shares). Gain on the disposition of the subordinate voting shares will be subject to
taxation in the same manner as an excess distribution (including taxation at ordinary income rates), described immediately
above.

If, contrary to current expectations, the Company was a PFIC for U.S. federal income tax purposes, certain elections
(such as a mark-to-market election or qualified electing fund election) may be available to U.S. Holders with respect to the
subordinate voting shares that may mitigate some of the adverse tax consequences resulting from PFIC treatment.

U.S. Holders are urged to consult their own tax advisors concerning the Company’s PFIC status and the consequences
to them of the treatment of the Company as a PFIC for any taxable year.

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Information with Respect to Foreign Financial Assets

Individuals and certain entities that own “specified foreign financial assets”, generally with an aggregate value in excess of
$50,000 are generally required to file an information report on IRS Form 8938, Statement of Specified Foreign Financial
Assets, with respect to such assets with their tax returns for each year in which they hold subordinate voting shares. “Specified
foreign financial assets” include any financial accounts maintained by certain foreign financial institutions, as well as securities
issued by non-U.S. persons if they are not held in accounts maintained by financial institutions. U.S. Holders are urged to
consult their tax advisors regarding the application of this reporting requirement to their ownership of the subordinate voting
shares.

Information Reporting and Backup Withholding

In general, information reporting will apply to dividends paid to a U.S. Holder in respect of the subordinate voting shares and
the proceeds received by such U.S. Holder from the sale, exchange or other disposition of the subordinate voting shares within
the United States unless such U.S. Holder is a corporation or other exempt recipient. Backup withholding may apply to such
payments if a U.S. Holder fails to provide a taxpayer identification number or certification of exempt status or fails to report
dividend and interest income in full. Backup withholding is not an additional tax. Any amounts withheld under the backup
withholding rules will be allowed as a refund or credit against a U.S. Holder’s U.S. federal income tax liability, provided that
the required information is timely furnished to the IRS. U.S. Holders are urged to consult their tax advisors regarding the
backup withholding tax and information reporting rules.

Certain Canadian Income Tax Considerations

The following is, as of the date hereof, a summary of the principal Canadian federal income tax considerations generally
applicable under the Income Tax Act (Canada) and the regulations promulgated thereunder, collectively the Tax Act, to a
purchaser who acquires as beneficial owner subordinate voting shares, and who, for purposes of the Tax Act and at all relevant
times, (i) is not, and is not deemed to be, resident in Canada, (ii) holds the subordinate voting shares as capital property,
(iii) deals at arm’s-length with, and is not affiliated with, the Company, and (iv) does not use or hold, and will not be deemed to
use or hold, the subordinate voting shares in the course of carrying on or otherwise in connection with a business in Canada,
hereinafter, a “Non-Resident Holder”. Special rules, which are not discussed in this summary, may apply to a Non-Resident
Holder that is an “authorized foreign bank” within the meaning of the Tax Act or an insurer carrying on an insurance business
in Canada and elsewhere. Any such Non-Resident Holder should consult its own tax advisor.

This summary is based upon the provisions of the Tax Act in force as of the date hereof, all specific proposals to
amend the Tax Act that have been publicly announced in writing by or on behalf of the Minister of Finance (Canada) prior to
the date hereof (Proposed Amendments), the Treaty, and an understanding of the current administrative policies and assessing
practices of the CRA, published in writing by it prior to the date hereof. This summary assumes the Proposed Amendments will
be enacted in the form proposed. However, no assurance can be given that the Proposed Amendments will be enacted in their
current form, or at all. This summary is not exhaustive of all possible Canadian federal income tax considerations and, except
for the Proposed Amendments, does not take into account or anticipate any changes in the law or any changes in the CRA’s
administrative policies or assessing practices, whether by legislative, governmental or judicial action or decision, nor does it
take into account or anticipate any other federal or any provincial, territorial or foreign tax considerations, which may differ
significantly from those discussed herein.

This summary is not applicable to a Non-Resident Holder who reports its “Canadian tax results” in a currency other
than Canadian currency; or that has entered or enters into a “derivative forward agreement” with respect to the subordinate
voting shares (each as defined in the Tax Act). Any such Non-Resident Holder should consult its own tax advisor with respect
to an investment in the subordinate voting shares. This summary is of a general nature only and is not intended to be, nor
should it be construed to be, legal or tax advice to any prospective purchaser or holder of the subordinate voting shares,
and no representations with respect to the income tax consequences to any prospective purchaser or holder are made.
Consequently, prospective purchasers or holders of the subordinate voting shares should consult their own tax advisors
with respect to their particular circumstances.

Currency Conversion

Generally, for purposes of the Tax Act, all amounts relating to the acquisition, holding or disposition of the subordinate voting
shares must be converted into Canadian dollars based on the exchange rates as determined in accordance with the Tax Act. The
amounts subject to withholding tax and any capital gains or capital losses realized by a Non-Resident Holder may be affected
by fluctuations in the Canadian-U.S. dollar exchange rate.

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Dividends

Dividends paid or credited or deemed to be paid or credited on the subordinate voting shares to a Non-Resident Holder by the
Company will be subject to Canadian withholding tax under the Tax Act at the rate of 25%, subject to any reduction under the
provisions of an applicable income tax convention. For example, under the Treaty, the rate of withholding tax on dividends paid
or credited or deemed to be paid or credited to a beneficially entitled Non-Resident Holder who is resident in the U.S. for
purposes of the Treaty and who is fully entitled to the benefits of the Treaty is generally limited to 15% of the gross amount of
the dividend. Non-Resident Holders are urged to consult their own tax advisors to determine their entitlement to relief under an
applicable income tax treaty.

Dispositions

A Non-Resident Holder generally will not be subject to tax under the Tax Act in respect of a capital gain realized on the
disposition or deemed disposition of a subordinate voting share, unless the subordinate voting share constitutes “taxable
Canadian property” (as defined in the Tax Act) of the Non-Resident Holder and the Non-Resident Holder is not entitled to relief
under an applicable income tax convention.

Generally, the subordinate voting shares will not constitute taxable Canadian property of a Non-Resident Holder at a
particular time, unless at any time during the 60-month period that ends at that time more than 50% of the fair market value of
the subordinate voting shares was derived directly or indirectly from one or any combination of: real or immovable property
situated in Canada, “Canadian resource properties”, “timber resource properties” (each as defined in the Tax Act), and options
in respect of, or interests in (or for civil law rights in), such properties, whether or not such properties exist (FMV Condition).
In addition, even if the FMV Condition is satisfied at a particular time, the subordinate voting shares will not constitute taxable
Canadian property of a Non-Resident Holder at that time if the subordinate voting shares are listed at that time on a “designated
stock exchange”, as defined in the Tax Act (which currently includes the NYSE and the TSX), unless at any time during the 60-
month period that ends at that time (a) the Non-Resident Holder; (b) persons with whom the Non-Resident Holder did not deal
at arm’s-length for purposes of the Tax Act; (c) partnerships in which the Non-Resident Holder or a person described in
(b) holds a membership interest directly or indirectly through one or more partnerships; or (d) any combination of the persons
and partnerships described in (a) through (c), owned 25% or more of the issued shares of any class or series of the shares of the
Company. Notwithstanding the foregoing, in certain circumstances set out in the Tax Act, the subordinate voting shares could
be deemed to be taxable Canadian property. A Non-Resident Holder contemplating a disposition of subordinate voting
shares that may constitute taxable Canadian property should consult a tax advisor prior to such disposition.

F. Dividends and Paying Agents

Not applicable.

G. Statement by Experts

Not applicable.

H. Documents on Display

We are a “foreign private issuer” as such term is defined in Rule 405 under the Securities Act, and are not subject to the same
requirements that are imposed upon U.S. domestic issuers by the SEC. Under the Exchange Act, we are subject to reporting
obligations that, in certain respects, are less detailed and less frequent than those of U.S. domestic reporting companies. As a
result, we do not file the same reports that a U.S. domestic issuer would file with the SEC, although we are required to file or
furnish to the SEC the continuous disclosure documents that we are required to file in Canada under Canadian securities laws.

Copies of our financial statements and other continuous disclosure documents required under Canadian securities laws
are available for viewing on SEDAR at www.sedar.com.

We will provide without charge to each person, including any beneficial owner, on the written or oral request of such
person, a copy of any or all documents referred to above which have been or may be incorporated by reference in this Annual
Report (not including exhibits to such incorporated information that are not specifically incorporated by reference into such
information). Requests for such copies should be directed to us at the following address: Floor 7, 510 West Georgia Street,
Vancouver, British Columbia, Canada V6B 0M3; Attention: TI - Investor Relations, phone number: (604) 695 3455.

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I. Subsidiary Information

Not applicable.

J. Annual Report to Security Holders

The Company intends to submit any annual report provided to security holders in electronic format as an exhibit to a current
report on Form 6-K.

ITEM 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Amounts drawn on our long-term debt facilities expose us to changes in interest rates. Holding other variables constant,
including the total amount of outstanding indebtedness, a 25-basis-point increase in interest rates on our variable-rate debt
would cause an estimated decrease in net income of approximately $2 million per year based on the amounts outstanding at
December 31, 2022, excluding the impact of any hedging activities.

Foreign Currency Risk

Our consolidated financial statements are reported in U.S. dollars but our international operating model exposes us to foreign
currency exchange rate changes that could impact the translation of foreign denominated assets and liabilities into U.S. dollars
and future earnings and cash flows from transactions denominated in different currencies. The European euro is the foreign
currency to which we currently have the largest exposure. The sensitivity analysis of our exposure to foreign currency risk at
the reporting date has been determined based upon a hypothetical change taking place at the relevant statement of financial
position date. The European euro, Canadian dollar and Philippine peso denominated balances as at the statement of financial
position dates have been used in the calculations below.
Net income Other comprehensive income Comprehensive income
Years Ended December 31
(increase (decrease) in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020
Reasonably possible changes in market risks
10% change in U.S. dollar:
CDN$ exchange rate
US$ appreciates $ 8 $ 14 $ 9 $ — $ — $ — $ 8 $ 14 $ 9
US$ depreciates $ (8) $ (14) $ (9) $ — $ — $ — $ (8) $ (14) $ (9)
10% change in US$: Euro
exchange rate
US$ appreciates $ 14 $ 11 $ 4 $ (44) $ (36) $ (38) $ (30) $ (25) $ (34)
US$ depreciates $ (14) $ (11) $ (4) $ 44 $ 36 $ 38 $ 30 $ 25 $ 34
10% change in US$: Peso
exchange rate
US$ appreciates $ (2) $ (1) $ (1) $ — $ — $ — $ (2) $ (1) $ (1)
US$ depreciates $ 2 $ 1 $ 1 $ — $ — $ — $ 2 $ 1 $ 1

We therefore face exchange rate risk through fluctuations in relative currency prices, which are unpredictable and costly to
hedge. Appreciation of foreign currencies against the United States dollar will increase our cost of doing business and could
adversely affect our business, financial condition or financial performance. Our foreign exchange risk management includes the
use of swaps to manage the currency risk associated with European euro denominated inflows being used to service the United
States dollar denominated debt, as well as foreign currency forward contracts to fix the exchange rates on short-term Philippine
peso denominated transactions and commitments.

ITEM 12 DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

A. Debt Securities

Not applicable.

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B. Warrants and Rights

Not applicable.

C. Other Securities

Not applicable.

D. American Depository Shares

Not applicable.

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PART II

ITEM 13 DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None.

ITEM 14 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

A - D. Material Modifications to the Rights of Security Holders

None.

E. Use of Proceeds

Not applicable.

ITEM 15 CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving the desired control
objectives. Our management recognizes that any control system, no matter how well designed and operated, is based upon
certain judgments and assumptions and cannot provide absolute assurance that its objectives will be met. Because of the
inherent limitations of control systems, internal control over financial reporting may not prevent or detect misstatements.
Similarly, an evaluation of controls cannot provide absolute assurance that misstatements due to error or fraud will not occur or
that all control issues if any, have been detected. In addition, projections of any evaluation as to the effectiveness of such
controls in future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the
effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act)
as of December 31, 2022. Based on such evaluation, management has concluded that our disclosure controls and procedures
were effective as of December 31, 2022.

Report of TELUS International Management on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined
in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) and for the assessment of the effectiveness of our internal control
over financial reporting. Internal control over financial reporting is designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as
issued by the IASB.

Management, with the participation of our Chief Executive Officer and Chief Financial Officer, assessed our internal
control over financial reporting based upon the framework in Internal Control - Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). As of December 31, 2022, management has
concluded that the Company’s internal control over financial reporting was effective.

Deloitte LLP, an independent registered public accounting firm, has audited the Company’s financial statements for
the fiscal year ended December 31, 2022 and has included its attestation report on management's assessment of the Company’s
internal control over financial reporting as of December 31, 2022.

Remediation of Previously Reported Material Weaknesses

As reported in “Item 15 – Controls and Procedures” in our Form 20-F for the prior year ended December 31, 2021,
management concluded that our disclosure controls and procedures were not effective as of December 31, 2021 due to material
weaknesses in internal control over financial reporting in entities acquired by the Company during fiscal year 2020, in particular
Lionbridge AI, which was acquired on December 31, 2020, resulting in ineffective control in the financial reporting processes
of these acquisitions. During fiscal year 2022, management has implemented remediation measures in the acquired entities as
previously disclosed, including the implementation of enterprise resource planning system, additional controls and automation
of manual processes, standardization and documentation of review procedures, as well as providing ongoing training to
personnel responsible for internal control processes in the acquired entities. Based on management assessment as of December
31, 2022, we concluded that these material weaknesses have been remediated.

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Changes in Control over Financial Reporting

Other than the remediation of prior year’s control deficiencies described above, there have been no changes in the Company’s
internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the year
ended December 31, 2022, that have materially affected, or that are reasonably likely to materially affect, the Company’s
internal control over financial reporting.

ITEM 16A AUDIT COMMITTEE FINANCIAL EXPERT

Our audit committee, which consists exclusively of independent directors within the meaning of NI 52-110 and the NYSE
listing requirements, is comprised of Carolyn Slaski and Sandra Stuart and chaired by Olin Anton. Our board of directors has
determined that Olin Anton, Carolyn Slaski and Sandra Stuart each meet the independence requirements for directors, including
the heightened independence standards for members of the audit committee under Rule 10A-3 under the Exchange Act and
NI 52-110. Our board of directors has also determined that Olin Anton is “financially literate” within the meaning of NI 52-110
and the NYSE listing requirements and an “audit committee financial expert” as defined by Rule 10A-3 under the Exchange
Act. For a description of the education and experience of each member of the audit committee, see “Item 6A—Directors and
Senior Management—Our Directors”.

ITEM 16B CODE OF ETHICS

We have adopted a code of ethics and conduct applicable to all of our directors, officers and employees, including our Chief
Executive Officer and Chief Financial Officer, which is a “code of ethics” as defined in section 406(c) of the Sarbanes-Oxley
Act. The code of ethics and conduct sets out our fundamental values and standards of behavior that are expected from our
directors, officers and employees with respect to all aspects of our business.

If we make any amendment to the code of ethics and conduct or grant any waiver therefrom, whether explicit or
implicit, to a director or executive officer, we will disclose the nature of such amendment or waiver on our website to the extent
required by, and in accordance with, the rules and regulations of the SEC.

The full text of the code of ethics and conduct is posted on our website at www.telusinternational.com and the System
for Electronic Document Analysis and Retrieval (SEDAR) profile at www.sedar.com. The information on or accessible through
our website is not part of and is not incorporated by reference into this Annual Report, and the inclusion of our website address
in this Annual Report is only for reference.

Our audit committee and human resources committee are responsible for reviewing and evaluating the code of ethics
and conduct periodically and will recommend any necessary or appropriate changes thereto to our board of directors for
consideration. The audit committee and human resources committee will also assist our board of directors with the monitoring
of compliance with the code of ethics and conduct.

ITEM 16C PRINCIPAL ACCOUNTANT FEES AND SERVICES

For the years ended December 31, 2022 and 2021, we incurred the following fees by our external auditors, Deloitte LLP
(PCAOB ID No. 1208):

Year Ended Year Ended

December 31, December 31,
2022 2021
Category of Fees
Audit fees(1) $ 3,353,107 $ 2,645,000
Audit-related fees(2) 603,872 1,068,241
Tax fees(3) 157,260 294,300
All other fees(4) 36,680 71,255
$ 4,150,919 $ 4,078,796
_________________________________________________
(1) “Audit fees” include fees for audit services billed or to be billed in connection with our annual, interim and statutory
financial statements and related regulatory filings.

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(2) “Audit-related fees” include fees for attest services for information system and for the year ended December 31, 2021,
also included fees for assurance services related to our initial public offering.

(3) “Tax fees” include fees related to tax compliance, tax advice and tax planning.

(4) “All other fees” include other fees not included above.

Pre-Approval Policies

Our audit committee assesses and pre-approves all audit and non-audit services provided by our external auditors.

ITEM 16D EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

None.

ITEM 16E PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

None.

ITEM 16F CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable.

ITEM 16G CORPORATE GOVERNANCE

The NYSE listing requirements include certain accommodations in the corporate governance requirements that allow foreign
private issuers, such as us, to follow “home country” corporate governance practices in lieu of the otherwise applicable
corporate governance standards of the NYSE. The application of such exemptions requires that we disclose any significant
ways in which our corporate governance practices differ from the NYSE listing requirements that we do not follow. We intend
to continue to follow certain Canadian corporate governance practices. We do not intend to follow rule 312.03 of the NYSE
listing requirements that requires that shareholder approval be required for certain events, such as the establishment of equity-
based compensation plans and issuance of common shares or securities convertible into or exercisable for common shares to
certain related parties. Neither Canadian securities laws nor British Columbia corporate law require shareholder approval for
such transactions, except where such transactions constitute a “related party transaction” or “business combination” under
Canadian securities laws or where such transaction is structured in a way that requires shareholder approval under the BCBCA
and the TSX may require shareholder approval be obtained in certain cases, in which case, we intend to follow our home
country requirements.

Except as stated above, we intend to comply with the rules generally applicable to U.S. domestic companies listed on
the NYSE. We may in the future decide to use other foreign private issuer exemptions with respect to some of the other NYSE
listing requirements. Following our home country governance practices, as opposed to the requirements that would otherwise
apply to a company listed on the NYSE, may provide less protection than is accorded to investors under the NYSE listing
requirements applicable to U.S. domestic issuers. See “Item 3D—Risk Factors—Subordinate Voting Shares Risks—As a
foreign private issuer, we are not subject to certain U.S. securities law disclosure requirements that apply to a domestic U.S.
issuer, which may limit the information publicly available to our shareholders”.

ITEM 16H MINE SAFETY DISCLOSURE

Not applicable.

ITEM 16I DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

Not applicable.

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PART III

ITEM 17 FINANCIAL STATEMENTS

See “Item 18—Financial Statements.”

ITEM 18 FINANCIAL STATEMENTS

The financial statements filed as part of this Annual Report begin on page F-1.

ITEM 19 EXHIBITS

Exhibit Index
Exhibit No. Description Method of filing
1.1 Articles of TELUS International (Cda) Inc. Incorporated by reference to Exhibit 99.1 to the
Registrant’s Current Report furnished to the SEC on
Form 6-K on February 5, 2021.

2.1 Specimen Share Certificate Incorporated by reference to Exhibit 4.1 to the

Registrant’s registration statement on Form F-1/A
filed with the SEC on January 25, 2021.

2.2 Description of Securities Registered under Incorporated by reference to Exhibit 2.2 to the
Section 12 of the Exchange Act Registrant's Annual Report on Form 20-F for the
year ended December 31, 2020 filed with the SEC
on February 23, 2021.

2.3 Registration Rights Agreement dated February 5, Incorporated by reference to Exhibit 99.3 to the
2021 among TELUS Communications Inc., TELUS Registrant’s Current Report furnished to the SEC on
International Holding Inc., 1276431 B.C. LTD., Form 6-K on February 5, 2021.
1276433 B.C. LTD., 1276435 B.C. LTD., 1276436
B.C. LTD. RIEL B.V. and TELUS International
(Cda) Inc.

2.4 Amendment to the TELUS International (Cda) Inc. Incorporated by reference to Exhibit 99.3 to the
Registration Rights Agreement, dated as at January Registrant’s Current Report filed with the SEC on
3, 2023. Form 6-K on January 9, 2023.

4.1† Amended and Restated Master Services Agreement, Incorporated by reference to Exhibit 10.1 to the
dated as of January 1, 2021, between TELUS Registrant’s registration statement on Form F-1 filed
International (Cda) Inc. and TELUS with the SEC on January 8, 2021.
Communications Inc.

4.2† Transition and Shared Services Agreement, dated as Incorporated by reference to Exhibit 10.2 to the
of January 1, 2021, between TELUS Registrant’s registration statement on Form F-1 filed
Communications Inc. and TELUS International with the SEC on January 8, 2021.
(Cda) Inc.

4.3† Amended and Restated Master Reseller Agreement, Incorporated by reference to Exhibit 10.3 to the
dated as of January 1, 2021, between TELUS Registrant’s registration statement on Form F-1 filed
Communications Inc. and TELUS International with the SEC on January 8, 2021.
(Cda) Inc.

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Exhibit No. Description Method of filing

4.4† Network Infrastructure Services Agreement, dated as Incorporated by reference to Exhibit 10.4 to the
of January 1, 2021, among TELUS Communications Registrant’s registration statement on Form F-1 filed
Inc., TELUS Communications (U.S.) Inc., TELUS with the SEC on January 8, 2021.
International (Cda) Inc. and TELUS International
Holding (U.S.A.) Corp.

4.5† Trademark License Agreement, dated as of Incorporated by reference to Exhibit 10.5 to the
January 1, 2021, by and between TELUS Registrant’s registration statement on Form F-1 filed
Corporation and TELUS International (Cda) Inc. with the SEC on January 8, 2021.

4.6 Collaboration and Financial Reporting Agreement Incorporated by reference to Exhibit 99.5 to the
dated February 5, 2021 between TELUS Corporation Registrant’s Current Report furnished to the SEC on
and TELUS International (Cda) Inc. Form 6-K on February 5, 2021.

4.7 Coattail Agreement dated February 5, 2021 among Incorporated by reference to Exhibit 99.6 to the
TELUS International (Cda) Inc., TELUS Registrant’s Current Report furnished to the SEC on
Communications Inc., Riel B.V., and Computershare Form 6-K on February 5, 2021.
Trust Company of Canada

4.8 Third Amended and Restated Credit Agreement, Incorporated by reference to Exhibit 99.1 to the
dated as of December 22, 2020, among TELUS Registrant’s Current Report on Form 6-K filed with
International (Cda) Inc., as borrower, The Bank of the SEC on December 23, 2022.
Nova Scotia and other financial institutions party
thereto, as lenders, and The Bank of Nova Scotia, as
administrative agent

4.9† Stock Purchase Agreement and Agreement and Plan Incorporated by reference to Exhibit 99.1 to the
of Merger, by and among TELUS International Registrant’s Current Report on Form 6-K filed with
Holdings (U.S.A.) Corp., Sequoia Merger Subsidiary the SEC on November 3, 2022.
LLC, WLTR Holdings, LLC, and Insignia WT
Holdings, LLC (for itself and in its capacity as the
Representative), dated October 26, 2022

4.10 First Amendment to Stock Purchase Agreement and Incorporated by reference to Exhibit 99.1 to the
Agreement and Plan of Merger, b y and among Registrant’s Current Report on Form 6-K filed with
TELUS International Holdings (U.S.A.) Corp., the SEC on January 9, 2023.
Insignia WT Holdings, LLC and WLTR Holdings,
LLC, dated December 30, 2022

4.11 Second Amended & Restated Limited Liability Incorporated by reference to Exhibit 99.2 to the
Company Agreement of WLTR Holdings, LLC, Registrant’s Current Report on Form 6-K filed with
dated January 3, 2023. the SEC on January 9, 2023.

8.1 List of Subsidiaries of TELUS International (Cda) Incorporated by reference to Exhibit 8.1 to the
Inc. Annual Report on Form 20-F for the year ended
December 31, 2021 filed on February 10, 2022.

12.1 Certification of the Principal Executive Officer Filed together with this Annual Report on Form 20-F
for the year ended December 31, 2022.

12.2 Certification of the Principal Financial Officer Filed together with this Annual Report on Form 20-F
for the year ended December 31, 2022.

13.1 Certification of the Principal Executive Officer Filed together with this Annual Report on Form 20-F
pursuant to 18 U.S.C. section 1350 for the year ended December 31, 2022.

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Exhibit No. Description Method of filing

13.2 Certification of the Principal Financial Officer Filed together with this Annual Report on Form 20-F
pursuant to 18 U.S.C. section 1350 for the year ended December 31, 2022.

15.1 Consent of Independent Registered Public Filed together with this Annual Report on Form 20-F
Accounting Firm for the year ended December 31, 2022.

EX-101.INS XBRL Instance Document Filed together with this Annual Report on Form 20-F
for the year ended December 31, 2022.

EX-101.SCH XBRL Taxonomy Extension Schema Document Filed together with this Annual Report on Form 20-F
for the year ended December 31, 2022.

EX-101.CAL XBRL Taxonomy Extension Calculation Linkbase Filed together with this Annual Report on Form 20-F
Document for the year ended December 31, 2022.

EX-101.DEF XBRL Taxonomy Extension Definition Linkbase Filed together with this Annual Report on Form 20-F
Document for the year ended December 31, 2022.

EX-101.LAB XBRL Taxonomy Extension Labels Linkbase Filed together with this Annual Report on Form 20-F
Document for the year ended December 31, 2022.

EX-101.PRE XBRL Taxonomy Extension Presentation Linkbase Filed together with this Annual Report on Form 20-F
Document for the year ended December 31, 2022.
_________________________________________________
† Portions of this exhibit, marked by brackets, have been omitted pursuant to Instruction 4(a) to Exhibits to Form 20-F because
they are both (i) not material and (ii) include information of the type that we customarily and actually treat as private or
confidential.

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SIGNATURES

The Registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and
authorized the undersigned to sign this Annual Report on its behalf.

TELUS International (Cda) Inc.

/s/ Jeffrey Puritt

Name: Jeffrey Puritt
Title: President, Chief Executive Officer
Dated: February 9, 2023

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of TELUS International (Cda) Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of TELUS International (Cda) Inc. and
subsidiaries (the “Company”) as at December 31, 2022 and 2021, the related consolidated statements of income and
comprehensive income, changes in owners’ equity, and cash flows, for each of the three years in the period ended
December 31, 2022 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as at December 31, 2022 and 2021, and
its financial performance and its cash flows for each of the three years in the period ended December 31, 2022, in accordance
with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in
Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated February 9, 2023, expressed an unqualified opinion on the Company's internal control over
financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current-period audit of the financial statements that were communicated or
required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the
financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there
are no critical audit matters.

/s/ Deloitte LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada
February 9, 2023

We have served as the Company's auditor since 2016.

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of TELUS International (Cda) Inc.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of TELUS International (Cda) Inc. and subsidiaries (the
“Company”) as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on
criteria established in Internal Control-Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated financial statements as of and for the year ended December 31, 2022, of the Company and our
report dated February 9, 2023, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of TELUS
International Management on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the
Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the
PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada
February 9, 2023

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TELUS International (Cda) Inc.

Consolidated Statements of Income and Comprehensive Income

Years Ended December 31 (millions except per share

amounts) Note 2022 2021 2020
REVENUE 4 $ 2,468 $ 2,194 $ 1,582

OPERATING EXPENSES
Salaries and benefits 5 1,393 1,222 947
Goods and services purchased 468 432 244
Share-based compensation 6 25 75 29
Acquisition, integration and other 40 23 59
Depreciation 13 124 115 99
Amortization of intangible assets 14(a) 134 142 83
2,184 2,009 1,461

OPERATING INCOME 284 185 121

OTHER (INCOME) EXPENSES

Changes in business combination-related provisions — — (74)
Interest expense 7 41 44 46
Foreign exchange gain 7 (7) (1) (2)
INCOME BEFORE INCOME TAXES 250 142 151
Income tax expense 8 67 64 48
NET INCOME $ 183 $ 78 $ 103

OTHER COMPREHENSIVE (LOSS) INCOME 9

Items that may subsequently be reclassified to income
Change in unrealized fair value of derivatives designated as
cash flow hedges 43 40 (50)
Exchange differences arising from translation of foreign
operations (89) (95) 124
(46) (55) 74
Item that will not be subsequently reclassified to income
Employee defined benefit plan re-measurements 3 — —
(43) (55) 74
COMPREHENSIVE INCOME $ 140 $ 23 $ 177

EARNINGS PER SHARE 10

Basic $ 0.69 $ 0.30 $ 0.46
Diluted $ 0.68 $ 0.29 $ 0.46

TOTAL WEIGHTED AVERAGE SHARES

OUTSTANDING (millions) 10
Basic 266 264 224
Diluted 270 267 226

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

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TELUS International (Cda) Inc.

Consolidated Statements of Financial Position

As at December 31 (millions) Note 2022 2021
ASSETS
Current assets
Cash and cash equivalents $ 125 $ 115
Accounts receivable 11 428 414
Due from affiliated companies 20(a) 81 53
Income and other taxes receivable 7 6
Prepaid and other assets 35 36
Current portion of derivative assets 12(g) 19 3
695 627
Non-current assets
Property, plant and equipment, net 13 449 405
Intangible assets, net 14(a) 1,008 1,158
Goodwill 14(a) 1,350 1,380
Derivative assets 12(g) 13 —
Deferred income taxes 8(b) 14 23
Other long-term assets 21(b) 27 33
2,861 2,999
Total assets $ 3,556 $ 3,626
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities 1(a),21(b) $ 290 $ 336
Due to affiliated companies 20(a) 111 71
Income and other taxes payable 67 67
Current maturities of long-term debt 15 83 328
Current portion of derivative liabilities 12(g) 1 5
552 807
Non-current liabilities
Long-term debt 15 881 820
Derivative liabilities 12(g) — 17
Deferred income taxes 8(b) 264 305
Other long-term liabilities 1(a) 21 22
1,166 1,164
Total liabilities 1,718 1,971
Owners’ equity 16 1,838 1,655
Total liabilities and owners’ equity $ 3,556 $ 3,626
Contingent liabilities 17

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

On behalf of the Board:

/s/ Josh Blair /s/ Olin Anton

Josh Blair Olin Anton
Vice-Chair, Board of Directors Director

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TELUS International (Cda) Inc.

Consolidated Statements of Changes in Owners’ Equity

Accumulated
Retained other
Number of Share Contributed earnings comprehensive
(millions) Note shares capital surplus (deficit) income (loss) Total
Balance as at January 1, 2020 190 $ 284 $ — $ (54) $ 15 $ 245
Net income — — — 103 — 103
Other comprehensive income — — — — 74 74
Excess of fair value of consideration
paid over the carrying value of
business acquired — — — (16) — (16)
Class A common shares—Issued 28 349 — — — 349
Class B common shares—Issued 17 215 — — — 215
Class C common shares—Issued 3 51 — — — 51
Class E common shares—Issued 7 90 — — — 90
Balance as at December 31, 2020 245 $ 989 $ — $ 33 $ 89 $ 1,111

Balance as at January 1, 2021 245 $ 989 $ — $ 33 $ 89 $ 1,111

Net income — — — 78 — 78
Other comprehensive loss — — — — (55) (55)
Class A to E shares exchanged or
redesignated 16 (245) (994) — — — (994)
Multiple Voting Shares redesignated
from Class A to D shares 16 236 884 — — — 884
Subordinate Voting Shares
redesignated from Class C to E shares 16 9 110 — — — 110
Multiple Voting Shares converted to
Subordinate Voting Shares 16 (36) (132) — — — (132)
Subordinate Voting Shares converted
from Multiple Voting Shares 16 36 132 — — — 132
Subordinate Voting Shares issued in
public offering 16 21 525 — — — 525
Share issuance costs, net of taxes 16 — (25) — — — (25)
Share-based compensation 6 — 1 24 (4) — 21
Balance as at December 31, 2021 266 $ 1,490 $ 24 $ 107 $ 34 $ 1,655

Balance as at January 1, 2022 266 $ 1,490 $ 24 $ 107 $ 34 $ 1,655

Net income — — — 183 — $ 183
Other comprehensive income (loss) — — — 3 (46) $ (43)
Carrying value of business acquired
less fair value of consideration paid 20(a) — — 10 — — $ 10
Share-based compensation 6 1 13 21 (1) — $ 33
Balance as at December 31, 2022 267 $ 1,503 $ 55 $ 292 $ (12) $ 1,838

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

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TELUS International (Cda) Inc.

Consolidated Statements of Cash Flows

Years Ended December 31 (millions) Note 2022 2021 2020
OPERATING ACTIVITIES
Net income $ 183 $ 78 $ 103
Adjustments:
Depreciation and amortization 258 257 182
Interest expense 7 41 44 46
Income tax expense 8 67 64 48
Share-based compensation 6 25 75 29
Changes in business combination-related provisions — — (74)
Change in market value of derivatives and other 2 — 32
Net change in non-cash operating working capital 21(c) (26) (69) 1
Share-based compensation payments (19) (45) (14)
Income taxes paid, net (94) (93) (56)
Cash provided by operating activities 437 311 297
INVESTING ACTIVITIES
Cash payments for capital assets 21(c) (105) (99) (60)
Cash payments for other assets (13) — —
Cash payments for acquisitions, net of cash acquired 20(a) (1) (11) (1,742)
Payment to acquire non-controlling interest in subsidiary — — (70)
Cash used in investing activities (119) (110) (1,872)
FINANCING ACTIVITIES
Shares issued 16 3 527 656
Share issuance costs 16 — (34) —
Withholding taxes paid related to net share settlement of
equity awards 6 (1) (5) —
Repayment of long-term debt 15,21(d) (682) (765) (819)
Long-term debt issued 15,21(d) 411 71 1,854
Debt issuance costs 15,21(d) (8) — —
Interest paid on credit facilities 1(a) (23) (29) (34)
Cash (used in) provided by financing activities (300) (235) 1,657
Effect of exchange rate changes on cash and cash equivalents (8) (4) (9)
CASH POSITION
Increase (decrease) in cash and cash equivalents 10 (38) 73
Cash and cash equivalents, beginning of year 115 153 80
Cash and cash equivalents, end of year $ 125 $ 115 $ 153

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

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TELUS International (Cda) Inc.

Notes to Consolidated Financial Statements

TELUS International (Cda) Inc. (TELUS Notes to the consolidated financial statements Page
International) is a leading digital General application
customer experience innovator that
1. Summary of significant accounting policies F-8
designs, builds and delivers next-
generation solutions, including AI and 2. Accounting policy developments F-16
content moderation, for global and 3. Capital structure financial policies F-16
disruptive brands. Consolidated results of operations focused
4. Revenue F-17
TELUS International was 5. Salaries and benefits F-17
incorporated under the Business
Corporations Act (British Columbia) on 6. Share-based compensation F-18
January 2, 2016, and is a subsidiary of 7. Interest expense and foreign exchange F-21
TELUS Corporation. TELUS 8. Income taxes F-21
International maintains its registered 9. Other comprehensive income F-23
office at 510 West Georgia Street, 10. Earnings per share F-23
Vancouver, British Columbia.
Consolidated financial position focused
The terms we, us, our or 11. Accounts receivable F-24
ourselves are used to refer to TELUS 12. Financial instruments F-25
International and, where the context of 13. Property, plant and equipment F-31
the narrative permits or requires, its 14. Intangible assets and goodwill F-32
subsidiaries.
15. Long-term debt F-34
Additionally, the term TELUS 16. Share capital F-35
Corporation is a reference to TELUS 17. Contingent liabilities F-36
Corporation, and where the context of Other
the narrative permits or requires, its 18. Employee future benefits F-37
subsidiaries, excluding TELUS 19. Leases F-37
International.
20. Related party transactions F-38
21. Additional financial information F-40
22. Segment reporting F-42

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1. Summary of significant accounting policies

(a) Basis of presentation

Our consolidated financial statements are expressed in United States dollars. The generally accepted accounting principles that
we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS-
IASB).

Generally accepted accounting principles require that we disclose the accounting policies we have selected in those
instances where we have been obligated to choose from among various generally accepted accounting principle-compliant
accounting policies. In certain other instances, including where no selection among policies is allowed, we are also required to
disclose how we have applied certain accounting policies. In our assessment, all of our required accounting policy disclosures
are not equally significant for us, as set out in the accompanying table; their relative significance to us will evolve over time as
we do.

In the fourth quarter of 2022, the Company changed its presentation of cash interest paid on credit facilities in the
consolidated statements of cash flows, which was previously included in cash flows from operating activities, and has been
reclassified to cash flows from financing activities, as permitted by IAS 7, Statement of cash flows. Cash interest paid relates to
interest paid on the Company’s long-term debt, which were drawn primarily to fund prior acquisitions. We believe this provides
a more relevant presentation of operating cash flows, as it reflects cash flows generated by the business before deducting costs
associated with servicing our long-term debt, such as interest. The table below summarizes the effect of this change in
presentation, which had no impact on operating income, net income, or cash and cash equivalents.

Years Ended December 31 (millions) 2021 2020

Cash provided by operating activities, as previously reported $ 282 $ 263
Add back: Interest paid 29 34
Cash provided by operating activities $ 311 $ 297

Cash (used in) provided by financing activities, as previously reported $ (206) $ 1,691
Less: Interest paid (29) (34)
Cash (used in) provided by financing activities $ (235) $ 1,657

In our consolidated statements of financial position, we have also reclassified certain current and non-current liabilities and
grouped these amounts in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, as they are not
individually material to these consolidated financial statements. All amounts presented for the comparative period has been
reclassified to conform with current period presentation.

These consolidated financial statements were authorized by our Board of Directors for issue on February 9, 2023.

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Table of Contents

Accounting policy requiring a more

significant choice among policies
and/or a more significant application
of judgment
Accounting policy Yes No
General application
(a) Basis of presentation X
(b) Consolidation X
(c) Use of estimates and judgments X
(d) Financial instruments—recognition and measurement X
(e) Hedge accounting X
Results of operations focused
(f) Revenue recognition X
(g) Depreciation, amortization and impairment X
(h) Translation of foreign currencies X
(i) Income and other taxes X
(j) Share-based compensation X
(k) Employee future benefit plans X
Financial position focused
(l) Cash and cash equivalents X
(m) Property, plant and equipment; intangible assets X
(n) Lease liabilities X
(o) Business combinations X

(b) Consolidation

As at December 31, 2022, our consolidated financial statements include our accounts and the accounts of all of our subsidiaries.
Our principal subsidiaries are: TELUS International (U.S.) Corp.; Xavient Digital LLC; CallPoint New Europe EAD; TELUS
International Services Limited; TELUS International Philippines Inc.; Voxpro Limited; TELUS International Germany GmbH;
and TELUS International AI Inc.

Our financing arrangements and those of our subsidiaries do not impose restrictions on inter-corporate dividends, but
external dividends are restricted based upon total net debt to earnings before interest, income taxes, depreciation and
amortization (EBITDA) ratios, all as defined by our financing arrangements.

On a continuing basis, we review our corporate organization and effect changes as appropriate so as to enhance the
value of TELUS International. This process can, and does, affect which of our subsidiaries are considered principal subsidiaries
at any particular point in time.

(c) Use of estimates and judgments

The preparation of financial statements in conformity with generally accepted accounting principles 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 of
revenues and expenses during the reporting period. Actual results could differ from those estimates.

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Estimates

Examples of the estimates and assumptions that we make and their relative significance and degree of difficulty are as follows:

Judgments

Examples of our use of judgment, apart from those involving estimation, include the following:

• Assessments about whether line items are sufficiently material to warrant separate presentation in the primary
financial statements and, if not, whether they are sufficiently material to warrant separate presentation in the
financial statement notes. In the normal course, we make changes to our assessments regarding presentation
materiality so that they reflect current economic conditions. Due consideration is given to the view that it is
reasonable to expect differing opinions of what is, and is not, material.

• In respect of revenue-generating transactions, generally we must make judgments that affect the timing of the
recognition of revenue as it relates to assessing when we have satisfied our performance obligations to our
customers, either at a point in time or over a period of time.

• The preparation of our financial statements in accordance with generally accepted accounting principles requires
management to make judgments that affect the financial statement disclosure of information regularly reviewed by
our chief operating decision maker used to make resource allocation decisions and to assess performance, as
further discussed in Note 22—Segment Reporting. A significant judgment we make is that our cash flows are
sufficiently indistinguishable given our global operating model, resulting in a single operating and reporting
segment.

• Determination of the functional currency of each subsidiary involves significant judgment. The determination of
functional currency affects the carrying value of non-current assets included in the statement of financial position
and, as a consequence, the amortization of those assets, as well as the exchange gains and losses recorded in the
consolidated statement of comprehensive income and the consolidated statement of equity.

• The decision to depreciate and amortize any property, plant, equipment and intangible assets that are subject to
amortization on a straight-line basis, as we believe that this method reflects the consumption of resources related
to the economic lifespan of those assets better than an accelerated method and is more representative of the
economic substance of the underlying use of those assets.

• In connection with the annual impairment testing of goodwill, there are instances where we must exercise
judgment in the determination of our cash generating unit. A significant judgment that we make is that each

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geographic area in which we operate is insufficiently distinct, making it impractical to objectively distinguish the
cash flows of each region. As such, each region is not an individual cash generating unit.

• In respect of claims and lawsuits, as discussed further in Note 17(b)—Contingent liabilities—Claims and lawsuits,
the determination of whether an item is a contingent liability or whether an outflow of resources is probable and
thus needs to be accounted for as a provision.

(d) Financial instruments—recognition and measurement

In respect of the recognition and measurement of financial instruments, we have adopted the following policies:

• Derivatives that are part of an established and documented cash flow hedging relationship are accounted for as
held for hedging. We believe that classification as held for hedging results in a better matching of the change in
the fair value of the derivative financial instrument with the risk exposure being hedged.

• Derivatives that are not part of a documented cash flow hedging relationship are accounted for as held for trading
and thus are measured at fair value through net income.

• Transaction costs, other than in respect of items held for trading, are added to the initial fair value of the acquired
financial asset or financial liability. We have selected this method as we believe that it results in a better matching
of the transaction costs with the periods in which we benefit from the transaction costs.

(e) Hedge accounting

Hedge accounting

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 is more
representative of the economic substance of the underlying transactions.

In order to apply hedge accounting, a high correlation (which indicates effectiveness) is required 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 having an identified risk exposure that we have taken steps to
modify (the hedged items). We assess the anticipated effectiveness of designated hedging relationships at inception and their
actual effectiveness for each reporting period thereafter. 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 would result from a difference 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 Interest expense if in respect of long-term debt, or as
Goods and services purchased if in respect of future purchase commitments.

Hedging assets and liabilities

In the application of hedge accounting, an amount (the hedge value) is recorded in the consolidated statement of financial
position in respect of the fair value of the hedging items. The net difference, if any, between the amounts recognized in the
determination of net income and the amounts necessary to reflect the fair value of the designated cash flow hedging items
recorded in the consolidated statement of financial position is recognized as a component of Other comprehensive income.

In the application of hedge accounting to the finance costs arising from interest paid on our long-term debt, the amount
recognized in the determination of net income is the amount that counterbalances the difference between interest calculated at a
variable interest rate, and the fixed interest rate as per our credit facility.

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(f) Revenue recognition

General

Our solutions involve delivery of multiple services and products that occur at different points in time and/or over different
periods of time. These arrangements may contain multiple performance obligations and the transaction price is measured and
allocated among the performance obligations based upon their relative stand-alone selling price. Our relevant revenue
recognition policies are then applied to the performance obligations.

Multiple contracts with a single customer are normally accounted for as separate arrangements. In instances where
multiple contracts are entered into with a customer in a short period of time, the contracts are reviewed as a group to ensure
that, as with multiple performance obligation arrangements, their relative stand-alone selling prices are appropriate.

Our revenues are recorded net of any value-added and/or sales taxes billed to the customer concurrent with a revenue-
generating transaction. Discounts and rebates are recorded as a reduction to revenue rather than as an expense.

We recognize revenues for each accounting period as services are provided, based on fees earned per-productive hour
or per transaction. Fees are invoiced to customers on a regular basis. Advance billings are recorded when a billing occurs prior
to provision of the associated services; such advance billings are recognized as revenue in the period in which the services are
provided.

(g) Depreciation, amortization and impairment

Depreciation and amortization

Property, plant, and equipment, including right-of-use lease assets, are depreciated on a straight-line basis over their estimated
useful lives. Depreciation includes amortization of right-of-use lease assets and amortization of leasehold improvements.
Leasehold improvements are normally amortized over the lesser of their expected average service life or the term of the lease.
Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which are reviewed at
least annually and adjusted as appropriate.

Estimated useful lives for our property, plant and equipment and right-of-use assets subject to depreciation are as
follows:

Estimated
useful lives
Computer hardware and network assets 2 to 10 years
Buildings and leasehold improvements 5 to 20 years
Furniture and equipment 3 to 7 years
Right-of-use lease assets 3 to 20 years

Estimated useful lives for our intangible assets subject to amortization are as follows:

Estimated
useful lives
Customer contracts and related customer relationships 4 to 15 years
Software 3 to 7 years
Brand 3 years
Standard operating procedures 5 years
Crowdsource assets 8 years

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Impairment—general

Impairment testing compares the carrying values of the assets or cash generating units being tested with their recoverable
amounts (the recoverable amount being the greater of an asset’s value-in-use or its fair value less costs to sell). Impairment
losses are immediately recognized, to the extent that the carrying value of an asset exceeds its recoverable amount. Should the
recoverable amounts for impaired assets subsequently increase, the impairment losses previously recognized (other than in
respect of goodwill) may be reversed to the extent that the reversal is not a result of “unwinding the discount” and that the
resulting carrying values do not exceed the carrying values that would have been the result if no impairment losses had been
previously recognized.

Impairment—property, plant and equipment; intangible assets subject to amortization

In our assessment of estimated useful lives of assets, we consider such items as the timing of technological obsolescence,
competitive pressures and future infrastructure utilization plans. These considerations could indicate that the carrying value of
an asset may not be recoverable. If the carrying value of an asset were not considered recoverable, an impairment loss is
recorded.

Impairment—goodwill

We assess the carrying value of goodwill each period for indicators of impairment, and an impairment test is performed when
an indicator exists. At a minimum, goodwill is tested annually for impairment on October 1.

We assess our goodwill by comparing the recoverable amount of our business to its carrying value. To the extent that
the carrying value exceeds its recoverable amount, the excess amount is recorded as an impairment charge in the period.

(h) Translation of foreign currencies

Trade transactions completed in foreign currencies are translated into United States dollars at the rates of exchange prevailing at
the time of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into United States
dollars at the rate of exchange in effect at the statement of financial position date, with any resulting gain or loss recorded to
Foreign exchange in the consolidated statement of income and other comprehensive income.

We have foreign subsidiaries that do not have the United States dollar as their functional currency. Foreign exchange
gains and losses arising from the translation of these foreign subsidiaries’ accounts into United States dollars are reported as a
component of other comprehensive income.

(i) Income and other taxes

We follow the liability method of accounting for income taxes. Under this method, current income taxes are recognized for the
estimated income taxes payable for the current year. Deferred income tax assets and liabilities are recognized for temporary
differences between the tax and accounting bases of assets and liabilities, and also for the benefit of losses available to be
carried forward to future years for tax purposes that are more likely than not to be realized. The amounts recognized in respect
of deferred income tax assets and liabilities are based upon the expected timing of the reversal of temporary differences or
usage of tax losses and application of the substantively enacted tax rates at the time of reversal or usage.

We account for any changes in substantively enacted income tax rates affecting deferred income tax assets and
liabilities in full in the period in which the changes are substantively enacted. We account for changes in the estimates of tax
balances for prior years as estimate revisions in the period in which the changes in estimates arise; we have selected this
approach as its emphasis on the statement of financial position is more consistent with the liability method of accounting for
income taxes.

Our operations are complex and the related domestic and foreign tax interpretations, regulations, legislation and
jurisprudence are continually changing. As a result, there are usually some tax matters in question that result in uncertain tax
positions. We recognize the income tax benefit of an uncertain tax position when it is more likely than not that the ultimate
determination of the tax treatment of the position will result in that benefit being realized; however, this does not mean that tax
authorities cannot challenge these positions. We accrue an amount for interest charges on current tax liabilities that have not
been funded, which would include interest and penalties arising from uncertain tax positions. We include such charges in the
consolidated statement of income and other comprehensive income as a component of income tax expense.

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(j) Share-based compensation

General

Share-based compensation awards issued to certain of our employees include phantom and equity restricted share units, and
phantom and equity share options. We recognize a share-based compensation expense in respect of these plans based on the fair
value of the awards. Generally, the compensation expense of the award is recognized on a straight-line basis over the vesting of
the award subject to continued service with us through the vesting date. A compensation expense is recognized for awards
containing performance conditions only to the extent that it is probable that those performance conditions will be met and based
on the expected achievement factor. Adjustments are made to reflect expected and actual forfeitures during the vesting period
due to failure to satisfy service conditions or performance conditions against the original compensation expense recognized.

Restricted share units

Restricted share units are accounted for as equity instruments if they will be equity-settled, or liability instruments if they will
be cash-settled.

For equity-accounted awards, we recognize and measure compensation expense based on the grant date fair value,
which is determined to be equal to the market price of one TELUS International subordinate voting share or TELUS
Corporation common share. Fair value is not subsequently re-measured unless the conditions on which the award was granted
are modified. For liability-accounted awards, we accrue a liability equal to the product of the number of vesting restricted share
units multiplied by the market price of one TELUS International subordinate voting share at the end of the reporting period. A
mark-to-market adjustment is recorded each period based on changes in the market price of shares.

Share option awards

Share option awards are accounted for as equity instruments if they will be equity-settled, or liability instruments if they are
cash-settled.

For equity-accounted awards, we recognize and measure compensation expense based on the grant date fair value,
which is determined using the Black-Scholes option pricing model. Fair value is not subsequently re-measured unless the
conditions on which the award was granted are modified. Proceeds arising from the exercise of equity-accounted share option
awards are recognized as an increase to share capital, as are the recognized grant-date fair values of the exercised share option
awards. For liability-accounted awards, we recognize and measure compensation expense based on the fair value of the award
at the end of each reporting period, which is determined using the Black-Scholes option pricing model.

The Black-Scholes option pricing model requires the input of certain assumptions, some of which are highly
subjective, including the expected volatility of the price of our common shares, the expected term of the option and the
expected dividend yield of our shares. These estimates involve inherent uncertainties and the application of management’s
judgment. If factors change and different assumptions are used, our share-based compensation expense could be materially
different in future periods.

(k) Employee future benefit plans

The Company records annual amounts relating to its defined benefit plan based on calculations that incorporate various
actuarial and other assumptions, including discount rates, mortality, compensation increase and turnover rates. When the
defined benefit plan’s key assumptions fluctuate relative to their immediately preceding year-end values, such actuarial gains or
losses are recognized in other comprehensive income.

We participate in defined benefit pension plans that share risks between TELUS Corporation and its subsidiaries as
well as unfunded, non-contributory retirement plans of TELUS International and its subsidiaries. TELUS Corporation’s policy
is to charge us our participant-based net defined benefit pension cost, as measured in accordance with IAS 19, Employee
Benefits, which are actuarially determined using the accrued benefit method pro-rated on service and management’s best
estimates of salary escalation and the retirement ages of employees. In the determination of net income, net interest for each
plan, which is the product of the plan’s surplus (deficit) multiplied by the discount rate, is included as a component of Interest
expense.

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Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which
services are rendered by the covered employees.

(l) Cash and cash equivalents

Cash and cash equivalents includes short-term investments in money market funds and other highly liquid, low-risk instruments
with maturities of less than three months. Cash and cash equivalents are presented net of outstanding items, including cheques
written but not cleared by the related banks as at the statement of financial position date.

(m) Property, plant and equipment; intangible assets

Property, plant and equipment (excluding right-of-use assets) are recorded at historical cost. Self-constructed property, plant
and equipment assets includes materials, direct labour and applicable overhead costs. Right-of-use assets, which are included in
property, plant and equipment, are initially measured at cost, which includes the amount of lease liabilities recognized at the
inception of the lease, initial direct costs incurred, and lease payments made at or before the lease commencement date less any
lease incentives received. Subsequent to the initial recognition, right-of-use assets may be adjusted for any re-measurement of
the corresponding lease liabilities.

Intangible assets are recorded at historical cost. For internally-developed internal-use software, the historical cost
recorded includes materials, direct labour and direct labour-related costs.

(n) Lease liabilities

Lease liabilities are initially measured at the present value of lease payments to be made over the expected lease term. Lease
payments include fixed payments, less any lease incentives or discounts. The expected lease term is the non-cancellable term of
the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised,
considering all relevant factors and terms of the lease arrangement. In calculating the present value of lease payments, we use
the interest rate implicit in the lease, if that rate can be readily determined, otherwise we use our incremental borrowing rate
based on a similar security, term and economic environment.

Subsequent to the initial recognition, we monitor for significant events or changes in circumstances that would require
a change in the expected lease term, including a modification to the lease, and adjust the lease liability accordingly based on the
change in present value of lease payments.

(o) Business combinations

We use the acquisition method to account for business combinations, under which we allocate the excess of the purchase price
of business acquisitions over the fair value of identifiable net assets acquired to goodwill. The purchase price is determined as
the fair value of assets transferred, liabilities assumed, or equity instruments issued on the date of exchange, which may include
contingent considerations that are initially measured at fair value at the acquisition date. Subsequent changes to the fair value of
any contingent considerations are recognized through profit or loss. Acquisition-related costs are expensed as incurred.

For intangible assets acquired, the fair value is generally derived from a valuation analysis prepared by management or
third-party experts as needed, based on appropriate valuation techniques using a forecast of the total expected future net cash
flows and closely linked to the assumptions made by management regarding the future performance of the assets concerned and
the discount rate applied. Where other markets or market participants are readily observable, these are considered in the
determination of fair value.

If the fair values of the assets, liabilities and contingent liabilities can only be calculated on a provisional basis, the
business combination is recognized initially using provisional values. Any adjustments resulting from the completion of the
measurement process are recognized within twelve months of the date of acquisition.

Business transfers from related parties are accounted for as common control transactions using the predecessor
accounting method wherein no assets or liabilities acquired are restated to their fair values and the results of operations include
the transferred businesses’ results only from the date of our acquisition of them. No goodwill, except to the extent transferred as
part of the transaction, is recognized on such transactions, and any excess purchase price is recorded as an adjustment to
owners’ equity.

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2. Accounting policy developments

Standards, interpretations and amendments to standards not yet effective and not yet applied

In February 2021, the International Accounting Standards Board issued narrow-scope amendments to IAS 1, Presentation of
Financial Statements, IFRS Practice Statement 2, Making Materiality Judgements and IAS 8, Accounting Polices, Changes in
Accounting Estimates and Errors. The amendments are effective for annual periods beginning on or after January 1, 2023,
although earlier application is permitted. The amendments will require the disclosure of material accounting policy information
rather than disclosing significant accounting policies and clarify how to distinguish changes in accounting policies from
changes in accounting estimates. Based on our current assessment, we do not expect that our financial disclosure will be
materially affected by the application of the amendments.

In May 2021, the International Accounting Standards Board issued targeted amendments to IAS 12, Income Taxes.
The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is
permitted. With a view to reducing diversity in reporting, the amendments will clarify that companies are required to recognize
deferred taxes on transactions where both assets and liabilities are recognized, such as with leases and asset retirement
(decommissioning) obligations. Based upon our current facts and circumstances, we do not expect our financial performance or
disclosure to be materially affected by the application of the amended standard.

3. Capital structure financial policies

Our objective when managing capital is to maintain a flexible capital structure that optimizes the cost and availability of capital
at acceptable risk levels.

In the management of capital and in its definition, we include owners’ equity (excluding accumulated other
comprehensive income), long-term debt (including long-term credit facilities and any hedging assets or liabilities associated
with our long-term debt, net of amounts recognized in accumulated other comprehensive income and excluding lease liabilities)
and cash and cash equivalents. We manage capital by monitoring the financial covenants in our credit facility (Note 16—Share
capital).

We manage our 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 capital structure, we may issue new shares, issue new debt
with different terms or characteristics, which may be used to replace existing debt, or pay down our debt balance with cash
flows from operations.

On February 3, 2021, we completed our IPO and issued 21.0 million subordinate voting shares at $25.00 per share. Net
cash proceeds were used to repay a portion of outstanding borrowings under our credit agreement.

On December 20, 2022, we amended and expanded our total credit facility to $2.0 billion, comprised of an
$800 million revolving component, and amortizing $1.2 billion term loan component, now maturing on January 3, 2028 (see
Note 15(b)—Long-term debt—Credit facility for additional details).

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4. Revenue

We earn revenue pursuant to contracts with our clients, who operate in various industry verticals. The following table presents
our earned revenue disaggregation for our five largest industry verticals:

Years Ended December 31 (millions) 2022 2021 2020

Tech and Games $ 1,148 $ 999 $ 617
Communications and Media 581 537 481
eCommerce and FinTech 285 259 171
Banking, Financial Services and Insurance 166 97 68
Travel and Hospitality 75 62 54
All others 213 240 191
$ 2,468 $ 2,194 $ 1,582

We serve our clients, who are primarily domiciled in North America, from multiple delivery locations across four geographic
regions. In addition, our TIAI Data Solutions business has clients that are largely supported by crowdsourced contractors that
are globally dispersed and not limited to the physical locations of our delivery centres. The following table presents our earned
revenue disaggregated by geographic region, based on location of our delivery centre or where service was provided, for the
following periods:

Years Ended December 31 (millions) 2022 2021 2020

Europe $ 880 $ 921 $ 636
North America 621 502 346
Asia-Pacific 591 455 337
Central America 376 316 263
$ 2,468 $ 2,194 $ 1,582

5. Salaries and benefits

Years Ended December 31 (millions) Note 2022 2021 2020
Wages and salaries $ 1,288 $ 1,133 $ 879
Benefits 96 82 65
Pensions—defined contribution 18 9 7 3
$ 1,393 $ 1,222 $ 947

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6. Share-based compensation

(a) Restricted share unit plan

Restricted share units

We have various restricted share unit award types, including equity-accounted restricted share units (RSUs) and performance
restricted share units (PSUs), and liability-accounted restricted share units (Phantom RSUs) and performance restricted share
units (Phantom PSUs). All restricted share units are nominally equal in value to one TELUS International subordinate voting
share, and liability-accounted restricted share units are settled in cash. All restricted share units granted for the years ended
December 31, 2022 and 2021 were equity-accounted RSUs, whereas all restricted share units granted prior to December 31,
2020 were liability-accounted Phantom RSUs or Phantom PSUs. The following table presents a summary of the activity related
to our restricted share units:

US$ denominated
Weighted
Number of units average grant-
date
Non-vested Vested fair value
Outstanding, January 1, 2020 2,101,733 — $ 6.70
Granted 357,966 — 11.11
Vested (982,395) 982,395 6.51
Exercised — (982,395) 6.51
Forfeited (93,662) — 7.12
Outstanding, December 31, 2020 1,383,642 — 7.94
Granted 1,383,983 — 27.26
Vested (805,429) 805,429 7.29
Exercised(1) — (805,429) 7.29
Forfeited (111,389) — 20.16
Outstanding, December 31, 2021 1,850,807 — 21.94
Granted 821,223 59,512 26.41
Vested (798,373) 798,373 16.63
Exercised(1) — (857,885) 17.52
Forfeited (267,836) — 19.85
Outstanding, December 31, 2022 1,605,821 — $ 27.10
______________________________________________
(1) During the year ended December 31, 2022, 360,044 RSUs and PSUs (2021 - 32,244 RSUs) were exercised and settled
with subordinate voting shares issued from treasury, and 497,841 Phantom RSUs and Phantom PSUs (2021 - 773,185
Phantom RSUs and Phantom PSUs) were exercised and cash-settled for $11 million (2021 - $26 million) based on a
weighted average share price on the dates of exercises of $22.01 (2021 - $33.24).

During the year ended December 31, 2022, RSUs granted were equity-settled awards and generally vest in four equal annual
instalments. PSUs granted vest in three years and are subject to TELUS International revenue and earnings per share
performance growth targets. These RSUs and PSUs are eligible for dividend reinvestment units, if declared and paid by TELUS
International, as such the fair value was determined to be equal to the market price of a subordinate voting share of TELUS
International on the date of grant.

As at December 31, 2022, the outstanding restricted share units were comprised of 1,218,796 RSUs, 387,025 PSUs,
and nil Phantom RSUs and PSUs (2021 - 1,083,542 RSUs, 192,064 PSUs, 285,386 Phantom RSUs and 289,815 Phantom
PSUs). The share-based compensation liability as at December 31, 2022 for liability-accounted awards was $nil (2021 -
$22 million).

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Phantom TELUS Corporation restricted share units (Phantom TELUS Corporation RSU)

Each Phantom TELUS Corporation RSU is nominally equal in value to one TELUS Corporation common share and is
nominally entitled to the dividends that would arise thereon if it were an issued and outstanding TELUS Corporation common
share. The notional dividends are recorded as additional issuances of restricted share units during the vesting period of the
restricted share unit. Due to the notional dividend mechanism, the grant-date fair value of restricted share units equals the fair
market value of the corresponding TELUS Corporation common shares at the grant date. The restricted share units generally
become payable when vesting is completed and typically vest over a period of 30 months (the requisite service period). These
restricted share units generally have a variable payout (0%-150%) depending upon our financial performance and non-market
quality-of-service performance conditions. The grant-date fair value of our restricted share units affected by the financial
performance and non-market quality-of-service performance conditions equals the fair market value of the corresponding
TELUS Corporation common shares at the grant date. The Phantom TELUS Corporation RSUs are historic grants made to
certain employees, and no new awards are expected to be made.

2022 2021 2020

Phantom TELUS Phantom TELUS Phantom TELUS
Corporation restricted Corporation restricted Corporation restricted
share units share units share units
Years Ended Weighted Weighted Weighted
December 31 average average average
Canadian $ grant-date grant-date grant-date
denominated Non-vested Vested fair value Non-vested Vested fair value Non-vested Vested fair value
Outstanding,
beginning of year 78,011 — $ 24.20 156,749 — $ 24.17 253,622 — $ 23.78
Granted — — — 24,757 — 27.58 13,217 — 24.97
Vested (59,549) 59,549 24.13 (85,154) 85,154 23.96 (113,737) 113,737 25.49
Exercised(1) — (59,549) 24.13 — (86,745) 25.22 — (113,737) 25.49
Dividends 1,568 — 30.85 5,023 1,591 27.43 10,156 — 15.42
Forfeited (20,030) — 24.92 (23,364) — 24.72 (6,509) — 23.59
Outstanding, end of
year — — $ — 78,011 — $ 24.20 156,749 — $ 24.17
_________________________________________________
(1) During the year ended December 31, 2022, Phantom TELUS Corporation RSUs exercised were cash-settled for
CAD$2 million (2021 - CAD$2 million), reflecting the share price on the date of exercise of CAD$28.67 (2021 -
CAD$27.58).

(b) Share option awards

We have equity-accounted share option awards (Share Options), and liability-accounted share option awards (Phantom Share
Options). Share Options grant the right to the employee recipient to purchase and receive a subordinate voting share of TELUS
International for a pre-determined exercise price. Phantom Share Options grant the right to the employee recipient to receive
cash equal to the intrinsic value of the share option award, determined as the difference between the market price of a
subordinate voting share of TELUS International and the exercise price. Share option awards are generally exercisable for a
period of ten years from the time of grant. Beginning January 1, 2021, share option awards granted were equity-accounted.

During the year ended December 31, 2022, Share Options granted generally vested annually over a four-year period, in
four equal instalments (graded-vesting method), and expire in ten-years. Share Options granted prior to December 31, 2020
generally vested after the requisite service period of three-years was completed (cliff-vesting method), however were not
exercisable prior to the completion of an initial public offering, which occurred on February 3, 2021. All Share Options are
valued using the Black-Scholes valuation model on the date of grant, and is not revalued subsequently unless a modification has
occurred.

Phantom Share Options generally vest over 30 months and are liability-accounted, which requires a periodic mark-to-
market adjustment to revalue the liability to reflect the fair value of the awards. Fair value of the awards is determined using the
Black-Scholes valuation model, adjusted for the number of awards that have vested to date and the expected variable payout
(0%-100%) depending upon our financial performance and non-market quality-of-service performance conditions. No Phantom
Share Options were granted during the year ended December 31, 2022.

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In using the Black-Scholes valuation model, the following inputs are used: risk-free interest rate is based on a
Government of Canada yield curve that is current at the time of grant; expected lives of the share option awards are based on
management’s best estimate of the time to option expiration based on historical trends and other factors; expected volatility
considers the historical volatility in the observable prices of our own and our comparable peers; dividend yield is the expected
dividend yield for a subordinate voting share of TELUS International.

The following table presents a summary of the activity related to our share option awards.

US $ denominated Canadian $ denominated

Number of share Number of share
option units option units
Weighted Weighted
average average
exercise exercise
Non-vested Vested price Non-vested Vested price
Outstanding, January 1, 2020 4,476,658 — $ 6.91 — 242,244 $ 4.75
Vested (3,822,025) 3,822,025 6.21 — — —
Exercised — (554,602) 6.21 — — —
Outstanding, December 31, 2020 654,633 3,267,423 6.94 — 242,244 4.75
Granted 579,949 — 25.00 — — —
Vested (150,397) 150,397 5.78 — — —
Exercised(1) — (1,321,238) 5.74 — (242,244) 4.75
Outstanding, December 31, 2021 1,084,185 2,096,582 10.74 — — —
Vested (293,860) 293,860 8.46 — — —
Exercised(1) — (293,860) 8.46 — — —
Forfeited (209,610) — $ 6.59 — — $ —
Outstanding, December 31, 2022(2) 580,715 2,096,582 $ 11.31 — — $ —
Exercisable, December 31, 2022 — 2,096,582 $ 7.45 — — $ —
_________________________________________________
(1) During the year ended December 31, 2022, 159,354 Share Options (2021 - 715,884 Share Options) were exercised and
settled for 65,859 shares (2021 - 382,367 shares) issued from treasury, net of withholding taxes paid, and 134,506
Phantom Share Options (2021 - 847,598 Phantom Share Options) were exercised and cash-settled for $2 million (2021
- $22 million, $5 million of which was accrued and paid in January 2022), reflecting the intrinsic value at the date of
settlement and a weighted average share price on the dates of exercises of $23.75 (2021 - $31.23).

(2) For options outstanding at the end of the period, the exercise prices ranged from $4.87 to $8.95 for 2,223,121 options
(2021 - $4.87 to $8.95 for 2,600,818 options) with a weighted-average remaining contractual life of 4.2 years (2021 -
5.6 years), and $25.00 for 454,176 options (2021 - $25 for 579,949 options) with a weighted-average remaining
expected life of 8.2 years (2021 - 9.2 years).

There were no Share Options granted during the year ended December 31, 2022. The weighted average fair value of Share
Options granted during the year ended December 31, 2021, and the weighted average assumptions used in the fair value
estimation at the time of grant, calculated by using the Black-Scholes model, are as follows:

Year Ended December 31 2021

Share option award fair value (per share option) $5.34
Risk free interest rate 0.73%
Expected lives (years) 6.5
Expected volatility 19.30%
Dividend yield —

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7. Interest expense and foreign exchange

Years Ended December 31 (millions) 2022 2021 2020

Interest expense
Interest on long-term debt, excluding lease liabilities $ 25 $ 27 $ 28
Interest on lease liabilities 14 14 14
Amortization of financing fees and other 2 3 4
$ 41 $ 44 $ 46
Foreign exchange
Derivatives used to manage currency risks $ — $ — $ (1)
Foreign exchange gain (7) (1) (1)
$ (7) $ (1) $ (2)

8. Income taxes

(a) Expense composition and rate reconciliation

Years Ended December 31 (millions) 2022 2021 2020
Current income tax expense (recovery)
For current reporting year $ 96 $ 82 $ 58
Adjustments recognized in the current period for income tax of prior periods 1 1 (10)
97 83 48
Deferred income tax expense (recovery)
Arising from the origination and reversal of temporary differences (31) (15) (3)
Adjustments recognized in the current period for income tax of prior periods 1 (4) 3
(30) (19) —
$ 67 $ 64 $ 48

Our income tax expense and effective income tax rate differs from that calculated by applying the applicable statutory rates for
the following reasons:

Years Ended December 31 (millions

except percentages) 2022 2021 2020
Income taxes computed at applicable
statutory rates $ 57 22.7 % $ 32 22.6 % $ 37 24.2 %
Non-deductible items 9 16 10
Withholding and other taxes 23 18 8
Losses not recognized 7 6 3
Foreign tax differential (30) (3) (2)
Adjustments recognized in the current
period for income tax of prior periods 2 (3) (7)
Other (1) (2) (1)
Income tax expense $ 67 26.8 % $ 64 45.1 % $ 48 31.6 %

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(b) Temporary differences

We must make significant estimates in respect of the composition of our deferred income taxes. Our operations are complex
and the related income tax interpretations, regulations, legislation and jurisprudence are continually changing. As a result, there
are usually some income tax matters in question.

Temporary differences comprising the net deferred income tax asset and the amounts of deferred income taxes
recognized in the consolidated statement of income and other comprehensive income and the consolidated statement of changes
in owners’ equity are estimated as follows:
Property, plant Net pension Debt Non- Net
and equipment and share- and capital deferred
and intangible based equity loss income tax
assets subject compensation issue Provisions carried asset
(millions) to amortization amounts costs and other forward Leases (liability)
As at January 1, 2021 $ (356) $ 6 $ (1) $ 15 17 2 $ (317)
Acquired during the year and other (3) — — — — — (3)
Deferred income tax (expense) recovery recognized in:
Net income 32 (3) — (9) (2) 1 19
Other comprehensive income — — — (1) — — (1)
Foreign currency translation $ 11 $ — $ — $ — $ — $ — 11
Share capital $ — $ — $ 9 $ — $ — $ — 9
Other $ — $ 1 $ — $ (1) $ — $ — —
As at December 31, 2021 $ (316) $ 4 $ 8 $ 4 $ 15 $ 3 $ (282)
Deferred income tax (expense) recovery recognized in:
Net income 32 (3) (2) 9 (5) (1) 30
Other comprehensive income 8 — — (1) — — 7
Foreign currency translation — — — (5) — — (5)
As at December 31, 2022 $ (276) $ 1 $ 6 $ 7 $ 10 $ 2 $ (250)
Presented on the consolidated statement of financial
position as:
Deferred income tax asset $ 23
Deferred income tax liability (305)
As at December 31, 2021 $ (282)
Deferred income tax asset $ 14
Deferred income tax liability (264)
As at December 31, 2022 $ (250)

Temporary differences arise from the carrying value of the investments in subsidiaries exceeding their tax base, for which no
deferred income tax liabilities have been recognized because the parent is able to control the timing of the reversal of the
difference and it is probable that it will not reverse in the foreseeable future. In our specific instance, this is relevant to our
investments in our non-Canadian subsidiaries. We are not required to recognize such deferred income tax liabilities, as we are
in a position to control the timing and manner of the reversal of the temporary differences and it is probable that such
differences will not reverse in the foreseeable future.

(c) Other

As at December 31, 2022, the Company had cumulative tax losses of $53 million for which no deferred tax asset were
recognized (2021 - $30 million). Of this amount, $8 million can be carried forward indefinitely, $37 million has a 20-year
carryforward period and $8 million has a 5-year carryforward period. During the year ended December 31, 2022, we recognized
the benefit of $2 million (2021 - $4 million) of non-capital losses. As at December 31, 2022, the Company had a deferred tax
asset of $4 million which is dependent on future earnings of the Company as management considers it probable that taxable
profits would be available against which such losses can be used.

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9. Other comprehensive income

Item never
Items that may subsequently be reclassified
reclassified to income to income
Cumulative
Change in foreign Employee Accumulated
unrealized fair currency defined benefit other
value of translation plan re- comprehensive
(millions) derivatives adjustment measurements income
Accumulated balance as at January 1, 2020 $ (1) $ 19 $ (3) $ 15
Other comprehensive income (loss)
Amount arising (51) 124 — 73
Income taxes 1 — — 1
Net (50) 124 — 74
Accumulated balance as at December 31, 2020 $ (51) $ 143 $ (3) $ 89
Other comprehensive income (loss)
Amount arising 41 (95) — (54)
Income taxes (1) — — (1)
Net 40 (95) — (55)
Accumulated balance as at December 31, 2021 $ (11) $ 48 $ (3) $ 34
Other comprehensive income (loss)
Amount arising 48 (89) 3 (38)
Income taxes (5) — — (5)
Net $ 43 $ (89) $ 3 $ (43)
Accumulated balance as at December 31, 2022 $ 32 $ (41) $ — $ (9)

10. Earnings per share

(a) Basic earnings per share

Basic earnings per share is calculated by dividing net income by the total weighted average number of equity shares outstanding
during the year.

Years Ended December 31

(millions except earnings per share) 2022 2021 2020
Net income $ 183 $ 78 $ 103
Weighted average number of equity shares outstanding 266 264 224
Basic earnings per share $ 0.69 $ 0.30 $ 0.46

(b) Diluted earnings per share

Diluted earnings per share is calculated to give effect to the potential dilutive effect that could occur if additional equity shares
were assumed to be issued under securities or instruments that may entitle their holders to obtain equity shares in the future,
such as share option awards and restricted share units. The number of additional shares for inclusion in the diluted earnings per
share calculation was determined using the treasury stock method.

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Years Ended December 31

(millions except earnings per share) 2022 2021 2020
Net income $ 183 $ 78 $ 103
Weighted average number of equity shares outstanding 266 264 224
Dilutive effect of share-based compensation 4 3 2
Weighted average number of diluted equity shares outstanding 270 267 226
Diluted earnings per share $ 0.68 $ 0.29 $ 0.46

For the years ended December 31, 2022, 2021 and 2020, there were no anti-dilutive awards that were excluded from the
calculation of diluted earnings per share.

11. Accounts receivable

(a) Accounts receivable

As at (millions) 2022 2021

Accounts receivable – billed $ 223 $ 213
Accounts receivable – unbilled 201 175
Other receivables 5 28
429 416
Allowance for doubtful accounts (1) (2)
Total $ 428 $ 414

The following table presents an analysis of the age of customer accounts receivable. Any late payment charges are levied at a
negotiated rate on outstanding non-current customer account balances.

As at (millions) 2022 2021

Customer accounts receivable – billed, net of allowance for doubtful accounts
Less than 30 days past billing date $ 154 $ 162
30-60 days past billing date 44 39
61-90 days past billing date 12 3
More than 90 days past billing date 12 7
222 211
Accounts receivable – unbilled 201 175
Other receivables 5 28
Total $ 428 $ 414

We maintain allowances for lifetime expected credit losses related to doubtful accounts. Current economic conditions
(including forward-looking macroeconomic data), historical information (including credit agency reports, if available), reasons
for the accounts being past due and line of business from which the customer accounts receivable arose are all considered when
determining whether to make allowances for past-due accounts. The same factors are 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 over a specific balance
threshold and on a statistically derived allowance basis for the remainder. No customer accounts receivable balances are written
off directly to bad debt expense.

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

Years Ended December 31 (millions) 2022 2021

Balance, beginning of year $ 2 $ 5
Recovery — (3)
Write-off (1) —
Balance, end of year $ 1 $ 2

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12. Financial instruments and management of financial risks

(a) Risks—overview

Our financial instruments, and the nature of certain risks to which they may be subject, are as set out in the following table.

Risks
Market risks
Accounting Interest Other
Financial instrument classification Credit Liquidity Currency rate price
Measured at amortized cost
Accounts receivable AC(1) X X
Due from/to affiliated companies AC(1) X X
Accounts payable and accrued liabilities AC(1) X X
Long-term debt AC(1) X X
Measured at fair value
Cash and cash equivalents FVTPL(2) X X X
Foreign exchange derivatives(3) FVTPL/FVOCI(2) X X X
_________________________________________________
(1) For accounting recognition and measurement purposes, classified as amortized cost (AC).

(2) For accounting recognition and measurement purposes, classified as fair value through net income (FVTPL).
Unrealized changes in the fair values of financial instruments are included in net income unless the instrument is part
of a cash flow hedging relationship. The effective portion of unrealized changes in the fair values of financial
instruments held for hedging are included in other comprehensive income (FVOCI).

(3) Use of derivative financial instruments is subject to a policy which requires that no derivative transaction is to be
entered into for the purpose of establishing a speculative or leveraged position (the corollary being that all derivative
transactions are to be entered into for risk management purposes only) and sets criteria for the credit worthiness of the
transaction counterparties.

(b) Credit risk

Excluding credit risk, if any, arising from interest rate swaps and 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 as set out in the following table:
As at December 31 (millions) 2022 2021
Cash and cash equivalents $ 125 $ 115
Accounts receivable 428 414
Due from affiliated companies 81 53
Derivative assets 32 3
$ 666 $ 585

Cash and cash equivalents

Credit risk associated with cash and cash equivalents 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 is performed to evaluate changes in the status of counterparties.

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Accounts receivable

Credit risk associated with accounts receivable is managed through a program of credit evaluations of customers and limiting
the amount of credit extended when deemed necessary. See Note 11—Accounts receivable for additional details of our accounts
receivable balances.

Derivative assets (and derivative liabilities)

Counterparties to our foreign exchange derivatives are major financial institutions that have been accorded investment grade
ratings by a primary credit rating agency. The total dollar amount of credit exposure under contracts with any one 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 potential credit
losses due to the possible non-performance of our counterparties, we consider this risk remote. Our derivative liabilities do not
have credit risk-related contingent features.

(c) Liquidity risk

We manage liquidity risk by:

• maintaining a syndicated bank credit facility (Note 15(b)—Long-term debt—Credit facility);

• continuously monitoring forecast and actual cash flows; and

• managing maturity profiles of financial assets and financial liabilities.

Our debt maturities in future years are as disclosed in Note 15(d)—Long-term debt—Long-term debt maturities.

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 below. The contractual maturities of our undiscounted financial liabilities as at December 31,
2022, including interest thereon (where applicable), are as set out in the following tables:
Non-derivative Derivative
Currency swap
agreement amounts
Composite long-term debt to be exchanged
Non- Long-term
interest Due to debt,
bearing affiliated excluding
financial companies leases(1)
Year (millions) liabilities (Note 22(a)) (Note 15) Leases (Receive) Pay Total
2023 $ 321 $ 111 $ 73 $ 68 $ (145) $ 126 $ 554
2024 40 — 78 58 (39) 23 160
2025 7 — 76 47 (321) 314 123
2026 7 — 74 40 — — 121
2027 6 — 72 24 — — 102
Thereafter 18 — 599 47 — — 664
Total $ 399 $ 111 $ 972 $ 284 $ (505) $ 463 $ 1,724
_________________________________________________
(1) Future cash outflows in respect of associated interest and carrying costs for amounts drawn under our credit facilities
(if any) have been calculated based upon the rates in effect at December 31, 2022.

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(d) Currency risk

Our primary operating currency is the United States dollar. The European euro, Philippine peso and the Canadian dollar are the
foreign currencies to which we currently have the largest exposure.

Our foreign exchange risk management includes the use of foreign currency forward contracts to fix the exchange rates
on short-term Philippine peso and Indian rupee-denominated transactions and commitments, as well as swaps which are used to
manage the currency risk associated with European euro denominated inflows being used against United States dollar
denominated debt.

(e) Interest rate risk

Changes in market interest rates will cause fluctuations in the fair value or future cash flows of short-term investments, short-
term obligations and long-term debt.

Our cash equivalents generally have short maturities and fixed interest rates and as a result, their fair value will
fluctuate with changes in market interest rates; absent monetization prior to maturity, the related future cash flows will not
change due to changes in market interest rates.

As short-term obligations arising from bilateral bank facilities, which typically have variable interest rates, are rarely
outstanding for periods that exceed one calendar week, interest rate risk on these facilities are not significant.

Amounts drawn on our long-term credit facility will be affected by changes in market interest rates in a manner similar
to debts with short maturities in that the fair value is not materially affected by changes in market interest rates, but the
associated cash flows representing interest payments are.

We manage our exposure to changes in market interest rates with the use of interest rate swaps to fix the interest rates
on the variable rate portion of our credit facility.

(f) Market risk

Net income and other comprehensive income for the years ended December 31, 2022, 2021 and 2020, could have varied if the
United States dollar: Canadian dollar exchange rate, United States dollar: Philippine peso exchange rate, United States dollar:
European euro exchange rate, market interest rates, and the TELUS Corporation and TELUS International (Cda) Inc. common
share prices varied by reasonably possible amounts from their actual statement of financial position date amounts.

The following sensitivity analysis of our exposure to currency, interest rate and other price risks at the reporting date
has been determined based upon (i) a hypothetical change in foreign exchange rates taking place at the relevant statement of
financial position date for the Canadian dollar, European euro and Philippine peso denominated balances; (ii) the hypothetical
change in interest rates taking place at the beginning of the relevant fiscal year and being held constant through to the statement
of financial position date; and (iii) the hypothetical change in the price of a subordinate voting share of TELUS International at
the relevant statement of financial position date, and the corresponding impact to share-based compensation on that reporting
date.

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Other
comprehensive Comprehensive
Net income income income
Years Ended December 31 (increase
(decrease) in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020
Reasonably possible changes in market risks(1)
10% change in US$: CAD$
exchange rate
US$ appreciates $ 8 $ 14 $ 9 $ — $ — $ — $ 8 $ 14 $ 9
US$ depreciates $ (8) $ (14) $ (9) $ — $ — $ — $ (8) $ (14) $ (9)
10% change in US$: Euro exchange
rate
US$ appreciates $ 14 $ 11 $ 4 $ (44) $ (36) $ (38) $ (30) $ (25) $ (34)
US$ depreciates $ (14) $ (11) $ (4) $ 44 $ 36 $ 38 $ 30 $ 25 $ 34
10% change in US$: Peso exchange
rate
US$ appreciates $ (2) $ (1) $ (1) $ — $ — $ — $ (2) $ (1) $ (1)
US$ depreciates $ 2 $ 1 $ 1 $ — $ — $ — $ 2 $ 1 $ 1
25 basis point change in market
interest rate
Rate increases $ (1) $ (2) $ (4) $ — $ — $ 1 $ (1) $ (2) $ (3)
Rate decreases $ 1 $ 2 $ 4 $ — $ — $ (1) $ 1 $ 2 $ 3
25%(2) change in subordinate voting
share price(3)
Price increases $ — $ (5) $ (4) $ — $ — $ — $ — $ (5) $ (4)
Price decreases $ — $ 5 $ 4 $ — $ — $ — $ — $ 5 $ 4
_________________________________________________
(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; in reality, the
competitive marketplace in which we operate would have an effect on this assumption. No consideration has been
made for a difference in the notional number of common shares associated with share-based compensation awards
made during the reporting period that may have arisen due to a difference in the common share price.

(2) To facilitate ongoing comparison of sensitivities, a constant variance of approximate magnitude has been used.

(3) The hypothetical effects of changes in the price of our subordinate voting shares and those of TELUS Corporation are
limited to those which arise from our liability-accounted share-based compensation awards.

(g) Fair values

General

The carrying values of cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities approximate
their fair values due to the immediate or short-term maturity of these financial instruments.

The fair values of the derivative financial instruments we use to manage our exposure to currency risks are estimated
based upon quoted market prices in active markets for the same or similar financial instruments or on 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 subject to similar risks and maturities (such fair value estimates being largely based on the
European euro: US$ and Philippine peso: US$ forward exchange rates as at the statement of financial position dates).

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Derivative

The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are as
set out in the following table; all such items use significant other observable inputs (Level 2) for measuring fair value at the
reporting date.
2022 2021
Fair Fair
value value
Maximum and Maximum and
maturity Notional carrying Price or maturity Notional carrying Price or
As at December 31 (millions) Designation date amount value rate date amount value rate
Current assets(1)
Derivatives used to manage
Currency risks arising from
Indian rupee denominated USD:1.00
purchases HFT(2) — $ — $ — — 2022 $ 10 $ — INR:76.21
Currency risks arising from
Philippine peso denominated USD:1.00
purchases HFT(2) 2023 $ 53 $ — PHP:56.90 — $ — $ — —

Currency risks arising from USD:1.00 USD:1.00

Euro business acquisition HFH(3) 2023 $ 21 $ 19 EUR:0.86 2022 $ 21 $ 3 EUR:0.86
Non-current assets(1)
Derivatives used to manage
Currency risks arising from USD:1.00
Euro business acquisition HFH(3) 2025 $ 341 $ 13 EUR:0.86 — $ — $ — —
(1)
Current liabilities
Derivatives used to manage
Currency risks arising from
Philippine peso denominated USD:1.00 USD:1.00
purchases HFH(3) 2023 $ 50 $ 1 PHP:53.55 2022 $ 92 $ 3 PHP:50.10
Currency risks arising from
Indian rupee denominated USD:1.00
purchases HFT(2) — $ — $ — — 2022 $ 2 $ — INR:74.99
Interest rate risk associated
with non-fixed rate credit
facility amounts drawn HFH(3) — $ — $ — — 2022 $ 95 $ 2 2.64%
Non-current liabilities(1)
Derivatives used to manage
Currency risks arising from USD:1.00
Euro business acquisition HFH(3) — $ — $ — — 2025 $ 362 $ 17 EUR:0.86
______________________________________
(1) Notional amounts of derivative financial assets and liabilities are not set off.

(2) Foreign currency hedges are designated as held for trading (HFT) upon initial recognition; hedge accounting is not
applied.

(3) Designated as held for hedging (HFH) upon initial recognition (cash flow hedging item); 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.

Non-derivative

The fair value amounts for cash and cash equivalents approximate carrying amounts due to the short-term maturities of these
instruments. Our long-term debt, which is measured at amortized cost, approximates the fair value thereof due to the short-term
nature of the applicable rates of interest charged.

(h) 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.

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Credit risk associated with such derivative instruments, as discussed further in (b), would be the primary source of
hedge ineffectiveness. There was no ineffective portion of derivative instruments classified as cash flow hedging items for the
periods presented.
Amount of gain (loss)
recognized in other Gain (loss) reclassified from other
comprehensive income comprehensive income to income
(effective portion) (effective portion)
Amount Amount
Years Ended December 31
(millions) 2022 2021 2020 Location 2022 2021 2020
Derivatives used to manage interest
rate risk
Associated with non-fixed rate Interest
credit facility amounts drawn $ 1 $ — $ (1) expense $ (1) $ (3) $ 2
$ 1 $ — $ (1) $ (1) $ (3) $ 2
Derivatives used to manage
currency risks
Arising from net investment in Foreign
foreign operation $ 37 $ 38 $ (49) exchange $ (9) $ — $ —
$ 38 $ 38 $ (50) $ (10) $ (3) $ 2

The following table sets out the gains and losses (excluding income tax effects) arising from derivative instruments that are
classified as held for trading and that are not designated as being in a hedging relationship, and their location within the
consolidated statements of income and other comprehensive income.
Gain (Loss) recognized
in income on derivatives
Years Ended December 31 (millions) Location Note 2022 2021 2020
Foreign
Derivatives used to manage currency risks exchange 7 $ — $ — $ 1

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13. Property, plant and equipment

Right-of-
use lease
Owned Assets assets
Computer
hardware
and Buildings and Furniture Assets
network leasehold and under
(millions) assets improvements equipment construction Total Buildings Total
At cost
As at January 1, 2021 $ 46 $ 95 $ 207 $ 15 $ 363 $ 264 $ 627
Additions 4 23 43 23 93 62 155
Dispositions, retirements and other (6) (3) (25) 4 (30) (6) (36)
Transfers 3 4 7 (14) — — —
Foreign exchange 1 — (1) (2) (2) (3) (5)
As at December 31, 2021 $ 48 $ 119 $ 231 $ 26 $ 424 $ 317 $ 741
Additions 1 8 22 61 $ 92 87 179
Additions from acquisition 20(a) — 2 1 — $ 3 2 5
Dispositions, retirements and other (1) (8) (15) — (24) (11) (35)
Transfers 3 22 27 (52) — — —
Foreign exchange (2) (5) (9) (2) (18) (10) (28)
As at December 31, 2022 $ 49 $ 138 $ 257 $ 33 $ 477 $ 385 $ 862
Accumulated depreciation
As at January 1, 2021 $ 23 $ 32 $ 126 $ — 181 $ 84 265
Depreciation 8 15 38 — 61 54 115
Dispositions, retirements and other (5) (3) (25) — (33) (6) (39)
Foreign exchange — 1 (1) — — (5) (5)
As at December 31, 2021 $ 26 $ 45 $ 138 $ — $ 209 $ 127 $ 336
Depreciation 7 17 43 — 67 57 124
Dispositions, retirements and other (1) (8) (15) — (24) (11) (35)
Foreign exchange (1) (1) (6) — (8) (4) (12)
As at December 31, 2022 $ 31 $ 53 $ 160 $ — $ 244 $ 169 $ 413
Net Book Value
As at December 31, 2021 $ 22 $ 74 $ 93 $ 26 $ 215 $ 190 $ 405
As at December 31, 2022 $ 18 $ 85 $ 97 $ 33 $ 233 $ 216 $ 449

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14. Intangible assets and goodwill

(a) Intangible assets and goodwill

Intangible assets subject to amortization
Total
Total intangible
Customer Crowdsource intangible assets and
(millions) Note relationships assets Software Brand and other assets Goodwill goodwill
At cost

As at January 1, 2021 $ 1,252 $ 120 $ 57 $ 39 $ 1,468 $ 1,428 $ 2,896

Additions — — 8 — 8 — 8
Additions from acquisition(1) 4 — 6 — 10 5 15

Dispositions (29) — (10) — (39) — (39)

Foreign exchange (45) — (4) (2) (51) (53) (104)

As at December 31, 2021 $ 1,182 $ 120 $ 57 $ 37 $ 1,396 $ 1,380 $ 2,776

Additions — — 12 — 12 — 12
Additions from acquisition 20(a) — — — — — 9 9
Dispositions — — (11) — (11) — (11)
Foreign exchange (31) — (1) (2) (34) (39) (73)

As at December 31, 2022 $ 1,151 $ 120 $ 57 $ 35 $ 1,363 $ 1,350 $ 2,713

Accumulated amortization

As at January 1, 2021 $ 103 $ — $ 32 $ 10 $ 145 $ — $ 145

Amortization 106 15 11 10 142 — 142
Dispositions (29) — (10) — (39) — (39)
Foreign exchange (7) — (2) (1) (10) — (10)

As at December 31, 2021 $ 173 $ 15 $ 31 $ 19 $ 238 $ — $ 238

Amortization 96 15 13 10 134 — 134

Dispositions — — (11) — (11) — (11)

Foreign exchange (5) — — (1) (6) — (6)

As at December 31, 2022 $ 264 $ 30 $ 33 $ 28 $ 355 $ — $ 355
Net book value
As at December 31, 2021 $ 1,009 $ 105 $ 26 $ 18 $ 1,158 $ 1,380 $ 2,538
As at December 31, 2022 $ 887 $ 90 $ 24 $ 7 $ 1,008 $ 1,350 $ 2,358

_________________________________________________
(1) Intangible assets and goodwill acquired were in connection with our acquisition of Playment on July 2, 2021.

(b) Impairment testing of goodwill

Goodwill is tested for impairment annually or more frequently if events or circumstances indicate that the asset may be
impaired. We perform our goodwill impairment test annually as at October 1, in accordance with our policy in Note 1(g)—
Summary of significant accounting policies—Depreciation, amortization and impairment. Goodwill impairment is tested at the
lowest cash-generating unit (CGU) that goodwill is monitored. On this basis, we have determined that each geographic area in
which we operate is insufficiently distinct and is not considered to be an individual cash generating unit, and our combined
operations are considered to represent a single CGU.

In assessing goodwill for impairment, we compare the carrying value of our CGU to its recoverable amount,
determined using a value-in-use method. There is a material degree of uncertainty with respect to the estimate of the
recoverable amount, given the necessity of making key economic assumptions about the future. As such, we validate our
recoverable amount calculations using market-comparable measures and perform an analytical review of industry facts and
facts that are specific to us. For the years ended December 31, 2022, 2021 and 2020, no goodwill impairment was recorded.

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Methodology and key assumptions

The value-in-use calculation uses discounted cash flow projections, including 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; estimates of future capital expenditures; and the future weighted average cost of capital. We considered a
range of reasonably possible amounts to use for key assumptions and selected amounts that best represent management’s
estimates of current and future market conditions.

The key assumptions for cash flow projections were based upon our approved financial forecasts, which span a period
of five years and are discounted at a post-tax notional rate of 9.5% (2021 - 9.0%; 2020 - 9.7%). For impairment testing
valuations, cash flows subsequent to the five-year projection period are extrapolated using a perpetual growth rate of 3.0%
(2021 - 3.0%; 2020 - 3.5%); these growth rates do not exceed the long-term average growth rates observed in the markets in
which we operate.

We believe that any reasonably possible change in the key assumptions on which the calculation of the recoverable
amounts would not cause the CGU’s carrying value to 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 our goodwill.

(c) Business acquisition subsequent to reporting period - WillowTree

On October 27, 2022, we announced a definitive agreement to acquire WillowTree, a full-service digital product provider
focused on end user experiences, such as native mobile applications and unified web interfaces. On January 3, 2023, subsequent
to the satisfaction of the closing conditions, we completed our acquisition of WillowTree. Under the agreement, TELUS
International acquired WillowTree for total purchase consideration of approximately $1.1 billion, net of assumed debt, and
comprised of cash, $125 million of our subordinate voting shares, and provisions for written put options for the portion retained
by certain eligible management team members that will be settled subject to certain performance-based criteria.

WillowTree management team members retained approximately 15% of total WillowTree equity, and we granted
written put options to such management team members which will become exercisable in tranches over a three-year period
starting in 2026. These written put options may be settled in cash or, at our discretion, in a combination of cash and up to 70%
in subordinate voting shares, and this will be recorded as a provision, measured at fair value, in our condensed interim
consolidated financial statements in the first quarter of 2023. Concurrent with this acquisition, WillowTree management team
members provided us with purchase call options, which substantially mirror the written put options.

The acquisition brings key talent and diversity to our segment’s portfolio of next generation solutions, and further
augments its digital consulting and client-centric software development capabilities. The primary factor that gives rise to the
recognition of goodwill on this acquisition 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). A portion of the amounts assigned to goodwill may be deductible for income tax purposes.

Given the proximity of the acquisition to the reporting date, the Company is still in the process of finalizing the
determination of the fair values of the acquired assets and liabilities, and the provisions for written put options. Specifically, we
are in the process of obtaining additional information in order to assess the fair values of intangible assets and deferred income
taxes and the resulting impact to goodwill as at the date of the acquisition.

In connection with the WillowTree acquisition, on December 20, 2022, we amended and expanded our existing credit
facility to an aggregate $2 billion credit facility, consisting of an $800 million revolving credit facility and $1.2 billion in term
loans payable in five years (see Note 15(b)—Long-term debt—Credit facility) for additional details).

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15. Long-term debt

(a) Details of long-term debt

As at December 31 (millions) Note 2022 2021
Credit facility (b) $ 742 $ 941
Deferred debt transaction costs (14) (8)
728 933
Lease liabilities (c) 236 215
Long-term debt $ 964 $ 1,148
Current $ 83 $ 328
Non-current 881 820
Long-term debt $ 964 $ 1,148

(b) Credit facility

2022 2021
Revolving Term loan Revolving Term loan
As at December 31 (millions) component component(1) Total component component(1) Total
Available(2) $ 658 $ 600 $ 1,258 $ 716 N/A $ 716
Outstanding
Due to TELUS Corporation $ 10 43 53 16 71 87
Due to Other 132 557 689 118 736 854
$ 142 $ 600 $ 742 $ 134 $ 807 $ 941
Total $ 800 $ 1,200 $ 2,000 $ 850 $ 807 $ 1,657
_________________________________________________
(1) In the fourth quarter of 2022, our interest rate swap derivative that converted our interest rate from floating rate to
fixed rate 2.64% (2021 - 2.64%) plus applicable margins matured.

(2) Of the amounts available at December 31, 2022, $525 million of the revolving components and $600 million of the
term loan components had a condition precedent of consummating the WillowTree acquisition, which occurred on
January 3, 2023 (see Note 14(c)—Intangible assets and goodwill—Business acquisition subsequent to reporting period
- WillowTree).

On December 20, 2022, we amended and expanded our total credit facility to $2 billion, comprised of an $800 million
revolving component and an amortizing $1,200 million term loan component, maturing on January 3, 2028. Subsequent to year
end, on January 3, 2023, the $600 million available balance under the term loan component was drawn, and the revolving
component of our credit facility was increased to $505 million to fund our acquisition of WillowTree (see Note 14(c)—
Intangible assets and goodwill—Business acquisition subsequent to reporting period - WillowTree). The credit facility is
secured by our assets with a syndicate of financial institutions, which included TELUS Corporation as a lender under the credit
facility.

As at December 31, 2022, the revolving and term loan components had an effective interest rate of 6.67%
(December 31, 2021 - 1.87%), which were based on the additional borrowings drawn by the Company on January 3, 2023.

The amended credit facility bears interest at prime rate, U.S. dollar base rate, a bankers’ acceptance rate or Term
Secured Overnight Financing Rate (SOFR) (all such terms as used or defined in the amended credit facility), plus applicable
margins. The amended credit facility contains customary representations, warranties and covenants, including two financial
quarter-end ratio tests. Net Debt to EBITDA ratio must not exceed 4.25:1.00 for each quarter in fiscal 2023, 3.75:1.00 for each
quarter in fiscal 2024 and 3.25:1.00 subsequently. The EBITDA to Debt Service (interest and scheduled principal repayment)
ratio must not be less than 1.50:1.00, all as defined in the credit facility. If an acquisition with an aggregate cash consideration
in excess of $250 million occurs in any twelve-month period, the maximum permitted Net Debt to EBITDA ratio per credit
agreement may be increased by 0.50:1.00 and shall return to the then applicable Net Debt to EBITDA ratio after eight fiscal
quarters.

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The term loan component of our credit facility is subject to an amortization schedule requiring that 1.25% of the
original principal advanced be repaid each quarter of the term of the agreement, with the balance due at maturity of
January 3, 2028. As at December 31, 2022, we had $1,258 million available under our credit facility, comprised of $658 million
under the revolving component (December 31, 2021 - $716 million) and $600 million available under the term loan component.

As at December 31, 2022 and 2021, we were in compliance with all financial covenants, financial ratios and all of the
terms and conditions of our long-term debt agreements.

(c) Lease liabilities

Leases are subject to amortization schedules, which results in the principal being repaid over various periods, including
reasonably expected renewals. The weighted average interest rate on lease liabilities was approximately 5.81% as at
December 31, 2022.

(d) Long-term debt maturities

Anticipated requirements to meet long-term debt repayments, calculated upon such long-term debts owing as at
December 31, 2022, are as follows:

Composite long-term debt European Other

denominated in U.S dollars euros currencies
Long-term
debt,
Years ending December 31 excluding
(millions) leases Leases Total Leases Leases Total
2023 $ 23 $ 19 $ 42 $ 13 $ 28 $ 83
2024 30 11 41 12 21 74
2025 30 12 42 12 14 68
2026 30 13 43 8 12 63
2027 30 10 40 6 5 51
Thereafter 599 8 607 29 3 639
Future cash outflows in
respect of
composite long-term debt
principal repayments 742 73 815 80 83 978
Future cash outflows in
respect of
associated interest and like
carrying costs(1) 230 23 253 12 13 278
Undiscounted contractual
maturities $ 972 $ 96 $ 1,068 $ 92 $ 96 $ 1,256
_________________________________________________
(1) Future cash outflows in respect of associated interest and carrying costs for amounts drawn under our credit facilities
(if any) have been calculated based upon the rates in effect at December 31, 2022.

16. Share capital

In connection with our IPO on February 3, 2021, TELUS Corporation, our controlling shareholder, exchanged its outstanding
Class A, Class C and Class D shares for Class B shares. Each other holder of Class C and Class D shares exchanged their shares
for Class E shares. Our Class B shares, which were then only held by TELUS Corporation and Baring Private Equity Asia, a
non-controlling shareholder, were redesignated as multiple voting shares and our Class E shares were redesignated as
subordinate voting shares. In 2022, BPEA EQT (BPEA) was formed as a result of the combination of Baring Private Equity
Asia and EQT Asia. The rights of the holders of our multiple voting shares and subordinate voting shares are substantially
identical, except subordinate voting shares have one vote per share and multiple voting shares have 10 votes per share.
Concurrent with the redesignations, we eliminated all of our previously outstanding series of Class A, Class C and Class D
shares and our authorized Class A and Class B preferred shares. Subsequent to the IPO, our equity shares were comprised only
of subordinate voting shares and multiple voting shares.

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Subsequent to the share redesignations, we effected a 4.5-for-1 split of each of our outstanding multiple voting shares
and subordinate voting shares. In all instances, unless otherwise indicated, the number of equity shares authorized, the number
of equity shares outstanding, the number of equity shares reserved, per share amounts and share-based compensation
information in these consolidated financial statements have been restated to reflect the impact of the 4.5-for-1 split.

In connection with our IPO, we issued 21.0 million subordinate voting shares at $25.00 per share, for gross proceeds
of $525 million and net proceeds of $500 million (net of share issuance costs of $34 million, which included underwriting fees
and offering expenses, offset by deferred taxes of $9 million).

TELUS Corporation and BPEA also sold 21.6 million subordinated voting shares in the IPO at the same price, which
were issued following the conversion by them of an aggregate 21.6 million multiple voting shares.

In the third quarter of 2021, we completed a secondary offering of 16.6 million subordinate voting shares at $34.00 per
share on behalf of certain non-controlling shareholders of TELUS International, including BPEA. In connection with this
secondary offering, 13.6 million multiple voting shares of BPEA were converted to subordinate voting shares and sold. Neither
TELUS International nor TELUS Corporation sold any subordinate voting shares in this secondary offering and did not receive
any proceeds from the sale of the subordinate voting shares by the selling shareholders.

Our authorized and issued share capital as at December 31, 2022 was as follows:

Authorized Issued
As at December 31 (millions) 2022 2021 2020 2022 2021 2020
Preferred Shares unlimited unlimited unlimited — — —
Equity Shares
Class A n/a unlimited unlimited n/a n/a 149
Class B, redesignated as
Multiple Voting Shares unlimited unlimited unlimited 200 200 82
Class C n/a unlimited unlimited n/a n/a 4
Class D n/a unlimited unlimited n/a n/a 3
Class E, redesignated as
Subordinate Voting Shares unlimited unlimited unlimited 67 66 7

Subsequent to December 31, 2022, we issued 6.5 million of subordinate voting shares in connection with our acquisition of
WillowTree (see Note 14(c)—Intangible assets and goodwill—Business acquisition subsequent to reporting period -
WillowTree).
As at December 31, 2022, there were 17.8 million authorized but unissued subordinate voting shares reserved for
issuance under our share-based compensation plans, and 5.1 million authorized but unissued subordinate voting shares reserved
for issuance under our employee share purchase plan.

17. Contingent liabilities

(a) Indemnification obligations

In the normal course of operations, we provide indemnification in conjunction with certain transactions. The terms of these
indemnification obligations range in duration. These indemnifications would require us to compensate the indemnified parties
for costs incurred as a result of failure to comply with contractual obligations or litigation claims or statutory sanctions or
damages that may be suffered by an indemnified party. In some cases, there is no maximum limit on these indemnification
obligations. The overall maximum amount of an indemnification obligation will depend on future events and conditions and
therefore cannot be reasonably estimated. Where appropriate, an indemnification obligation is recorded as a liability. Other than
obligations recorded as liabilities at the time of such transactions, historically we have not made significant payments under
these indemnifications. As at December 31, 2022 and 2021, we had no liability recorded in respect of indemnification
obligations.

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(b) Claims and lawsuits

We are party to various legal proceedings and claims that arise in the ordinary course of business. The ultimate outcome of
these matters is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts in excess
of management's estimates of loss, or if any outcome becomes more likely than not and estimable, our results of operations and
financial condition could be adversely affected.

18. Employee future benefits

Defined contribution pension plans

We have a number of defined contribution retirement plans providing pension and other post-employment benefits to our
employees. Employees in most of our foreign subsidiaries are covered by government mandated, defined contribution plans.
Employees generally become eligible to participate in these plans after six months of employment and the Company may make
discretionary contributions under the plans.

We offer defined contribution pension plans in certain regions, which are contributory and generally voluntary, and
these are the pension plans that we sponsor and are available to our employees. Generally, employees can make contributions
up to a maximum amount, and we matched up to 100% of the contributions based on plan limits. See Note 5—Salaries and
benefits for defined contribution pension expense included in Salaries & benefits in the consolidated statements of income and
comprehensive income.

Defined benefit pension plans

We have a small number of Canadian employees who participate in a TELUS Corporation defined benefit plan, and the
associated cost related to TELUS International employees is charged to us by TELUS Corporation. For the years ended
December 31, 2022, 2021 and 2020, we recognized defined benefit pension expense of $2 million, $1 million and $nil included
in Salaries & benefits in the consolidated statements of income and comprehensive income.

In addition, we have non-contributory supplementary retirement benefit plans, which have the effect of maintaining the
earned pension benefit once the allowable maximums in the registered plans are attained. As is common with non-registered
plans of this nature, these plans are typically funded only as benefits are paid. For the years ended December 31, 2022, 2021
and 2020, we recognized defined benefit pension expense included in Salaries & benefits of $nil, $1 million and $1 million,
respectively. As at December 31, 2022, 2021 and 2020, our recognized pension obligation was $9 million, $11 million and $15
million, respectively, included in Other long-term liabilities in the consolidated statement of financial position.

19. Leases

Our leases are comprised primarily of real estate leases for office purposes. Estimates of the expected lease terms include our
expectations or intentions to exercise option renewal periods, which affect the measurement of right-of-use lease assets and
their associated lease liabilities. We do not currently have any low-value or short-term leases.

Maturity analyses of lease liabilities are set out in Note 12(c)—Financial instruments and management of financial
risks—Liquidity risk and Note 15(d)—Long-term debt—Long-term debt maturities; interest expense on our lease liabilities is set
out in Note 7—Interest expense and foreign exchange. The additions to, the depreciation charges for, and the carrying amount
of, right-of-use lease assets are set out in Note 13—Property, plant and equipment. The payments are set out in Note 21(d)—
Additional financial information—Changes in liabilities arising from financing activities.

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20. Related party transactions

(a) Transactions with TELUS Corporation

General

TELUS Corporation produces consolidated financial statements available for public use and is the ultimate parent and
controlling party of TELUS International.

Recurring transactions

TELUS Corporation and its subsidiaries receive customer care, integrated business process outsourcing and information
technology outsourcing services from us, and provide services (including people, network, finance, communications, and
regulatory) to us. We also participate in defined benefit pension plans that share risks between TELUS Corporation and its
subsidiaries.

2022 2021 2020

As at, or Year Ended TELUS Subsidiaries TELUS Subsidiaries TELUS Subsidiaries
December 31 Corporation of TELUS Corporation of TELUS Corporation of TELUS
(millions) (parent) Corporation Total (parent) Corporation Total (parent) Corporation Total
Transactions with
TELUS
Corporation and
subsidiaries
Revenues from
services provided to $ — $ 428 $ 428 $ — $ 353 $ 353 $ — $ 310 $ 310
Goods and services
purchased from — (33) (33) — (30) (30) — (29) (29)
— 395 395 — 323 323 — 281 281
Receipts from
related parties — (417) (417) — (339) (339) — (284) (284)
Payments to related
parties 1 32 33 20 — 20 38 — 38
Payments (made)
collected by related
parties on our
behalf and other
adjustments(1) (50) 25 (25) (91) 53 (38) (14) (5) (19)
Foreign exchange 2 — 2 — (2) (2) — (2) (2)
Change in balance (47) 35 (12) (71) 35 (36) 24 (10) 14
Accounts with
TELUS
Corporation and
subsidiaries
Balance, beginning
of year (44) 26 (18) 27 (9) 18 3 1 4
Balance, end of year $ (91) $ 61 $ (30) $ (44) $ 26 $ (18) $ 27 $ (9) $ 18
Accounts with
TELUS
Corporation and
subsidiaries
Due from $ 8 $ 73 $ 81 $ — $ 53 $ 53 $ 27 $ 22 $ 49
Due to (99) (12) (111) (44) (27) (71) — (31) (31)
$ (91) $ 61 $ (30) $ (44) $ 26 $ (18) $ 27 $ (9) $ 18

______________________________________________
(1) Certain key management personnel at TELUS International participate in the Pension Plan for Management and
Professional Employees of TELUS Corporation, a defined benefit pension plan. During the year ended December 31,
2022, TELUS Corporation incurred $2 million (December 31, 2021 - $nil) for these individuals, which are excluded
from the table above.

In the consolidated statement of financial position, amounts due from affiliates and amounts due to affiliates are generally due
30 days from billing and are cash-settled on a gross basis.

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In January 2021, we renewed our master service agreement with TELUS Corporation, which provides for a term of 10
years beginning in January 2021 and a minimum annual spend of $200 million, subject to adjustment in accordance with its
terms.

Other transactions

On January 29, 2020, in connection with the acquisition of CCC, we issued 14.7 million Class A common shares and 0.2
million Class C common shares to TELUS Corporation for $126 million. The proceeds from these share issuances were used to
finance the acquisition.

On April 1, 2020, we issued 3.5 million Class C common shares for proceeds of $49 million to TELUS Corporation as
consideration for the acquisition of MITS from TELUS Corporation, a common control transaction. We also issued 5.4 million
Class A common shares to TELUS Corporation for proceeds of $75 million to finance the buy-out of the non-controlling
interest in Xavient Digital in April 2020.

On December 29, 2020, in connection with the acquisition of Lionbridge AI, we issued 7.6 million Class A common
shares to TELUS Corporation for $150 million. The proceeds from these share issuances were used to finance the acquisition.

Immediately prior to the Company’s IPO on February 3, 2021, all Class A, Class C, and Class D common shares held
by TELUS Corporation were exchanged for Class B common shares, and these Class B common shares were then redesignated
as multiple voting shares. Subsequent to such redesignations, we effected a 4.5-for-1 split of each of our outstanding multiple
voting shares. On a post-split basis, TELUS Corporation held 153.0 million multiple voting shares of TELUS International. On
February 3, 2021, and in connection with the Company’s IPO, TELUS Corporation converted 6.5 million of our multiple voting
shares to subordinate voting shares that were sold to new investors in the initial public offering.

In the fourth quarter of 2022, we acquired certain call centre operations of TELUS Corporation for cash consideration
of $1 million (net of cash assumed), in exchange for $2 million of net identifiable assets and $9 million of goodwill. This
acquisition was accounted for as a common control business acquisition using the predecessor accounting method. The amount
of net assets and goodwill acquired in excess of the fair value of consideration paid was recorded to contributed surplus in the
consolidated statements of changes in owners’ equity.

(b) Transactions with BPEA EQT

General

BPEA exercises significant influence on TELUS International.

Recurring transactions

As at, and during the years ended December 31, 2022 and 2021, there were no balances due to or due from, or recurring
transactions with, BPEA.

Other transactions

On January 29, 2020, in connection with the acquisition of CCC, we issued 8.0 million Class B common shares to BPEA, for
$68 million. The proceeds from these share issuances were used to finance the acquisition.

On September 29, 2020, BPEA elected to exercise its option to purchase 4.8 million Class B common shares for
aggregate consideration of $67 million.

On December 29, 2020, in connection with the acquisition of Lionbridge AI, we issued 4.1 million Class B common
shares to BPEA for $80 million. The proceeds from these share issuances were used to finance the acquisition.

Immediately prior to the Company’s IPO on February 3, 2021, all Class B common shares held by BPEA were
redesignated as multiple voting shares. Subsequent to such redesignations, we effected a 4.5-for-1 split of each of our
outstanding multiple voting shares. On a post-split basis, BPEA held 82.1 million multiple voting shares of TELUS
International. In connection with the Company’s IPO, BPEA converted 15.1 million of our multiple voting shares to
subordinate voting shares that were sold to new investors in the initial public offering. On September 28, 2021, BPEA

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converted 13.6 million of our multiple voting shares to subordinate voting shares that were sold to new investors in a secondary
public offering.

(c) Transactions with key management personnel

Our key management personnel have the authority and responsibility for overseeing, planning, directing and controlling our
activities and consist of our Board of Directors and members our executive leadership team. Total compensation expense and its
composition for the key management personnel is as follows:
Years Ended December 31 (millions) 2022 2021 2020
Short-term benefits $ 7 $ 5 $ 4
Post-employment pension(1) and other benefits $ 1 $ 1 $ 1
Share-based compensation(2) $ 11 $ 43 $ 5
_________________________________________________
(1) Certain members of our executive leadership team participate in our Pension Plan for Management and Professional
Employees of TELUS Corporation and certain other non-registered, non-contributory supplementary defined benefit
pension plans.

(2) In 2022, we awarded 301,190 RSUs and 229,627 PSUs to our key management personnel, with a grant-date fair value
of $8 million and $6 million, respectively.
In 2021, we awarded 863,755 RSUs, 192,064 PSUs, 579,949 Share Options, and 24,757 Phantom TELUS Corporation
RSUs to our key management personnel, with a grant-date fair value of $22 million, $6 million, $3 million and
$1 million, respectively.
In 2020, there were no share-based compensation awards issued to our key management personnel.

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

21. Additional financial information

(a) Statements of income and other comprehensive income

For the years ended December 31, 2022 and 2021, three clients each accounted for more than 10% of our revenues, and for the
year ended December 31, 2020, two clients each accounted for more than 10% of our revenues. TELUS Corporation, our
controlling shareholder and largest client for the year ended December 31, 2022, accounted for approximately 17.3%, 16.1%
and 19.6% of our revenue for the years ended December 31, 2022, 2021 and 2020, respectively. Our second largest client for
the year ended December 31, 2022, a leading social media company, accounted for 15.0%, 17.7% and 15.6% of our revenue for
the years ended December 31, 2022, 2021 and 2020, respectively. Our third largest client, Google, accounted for approximately
11.9%, 11.0% and 7.5% of our revenue for the years ended December 31, 2022, 2021 and 2020, respectively.

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(b) Statements of financial position

As at December 31 (millions) Note 2022 2021

Other long-term assets
Prepaid lease deposits and other $ 20 $ 26
Other 7 7
$ 27 $ 33
Accounts payable and accrued liabilities
Trade accounts payable $ 39 $ 79
Accrued liabilities 111 75
Payroll and other employee-related liabilities 129 144
Share-based compensation liability 1 22
Other 10 16
$ 290 $ 336

(c) Statements of cash flows—operating activities and investing activities

Years Ended December 31 (millions) 2022 2021 2020

Net change in non-cash operating working capital
Accounts receivable $ (26) $ (124) $ (30)
Due to and from affiliated companies, net 17 36 (13)
Prepaid expenses 6 (13) 8
Other long-term assets 6 1 (4)
Accounts payable and accrued liabilities (27) 56 42
Income and other taxes receivable and payable, net (1) (10) (7)
Other long-term liabilities (1) (15) 5
$ (26) $ (69) $ 1
Cash payments for capital assets
Capital asset additions
Capital expenditures
Property, plant and equipment, excluding right-of-use
assets $ (92) $ (93) $ (63)
Intangible assets (12) (8) (11)
(104) (101) (74)
Change in associated non-cash investing working capital (1) 2 14
$ (105) $ (99) $ (60)

(d) Changes in liabilities arising from financing activities

Statements of cash flows Non-cash changes
Issued Redemptions, Foreign
Year Ended December 31, 2022 Beginning or repayments exchange End of
(millions) of year received or payments movement Other year
Long-term debt
Credit facility $ 941 $ 411 $ (610) $ — $ — $ 742
Lease liabilities $ 215 $ — $ (72) $ (7) $ 100 $ 236
Deferred debt transaction costs $ (8) $ — $ (8) $ — $ 2 $ (14)
$ 1,148 $ 411 $ (690) $ (7) $ 102 $ 964

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Statements of cash flows Non-cash changes

Redemptions, Foreign
Year Ended December 31, 2021 Beginning of Issued or repayments exchange End of
(millions) year received or payments movement Other year
Long-term debt
Credit facility $ 1,568 $ 71 $ (698) $ — $ — $ 941
Lease liabilities 209 — (67) (3) 76 215
Deferred debt transaction costs (11) — — — 3 (8)
$ 1,766 $ 71 $ (765) $ (3) $ 79 $ 1,148

Statements of cash flows Non-cash changes

Redemptions, Foreign
Year Ended December 31, 2020 Beginning Issued or repayments exchange End of
(millions) of year received or payments movement Other year
Long-term debt
Credit facility $ 336 $ 1,854 $ (622) $ — $ — $ 1,568
Other — — (138) — 138 —
Lease liabilities 189 — (59) 12 67 209
Deferred debt transaction costs (4) — — — (7) (11)
$ 521 $ 1,854 $ (819) $ 12 $ 198 $ 1,766

22. Segment reporting

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 entities within the group). We assess our
operating segments based on information regularly provided to and reviewed by the Chief Operating Decision Maker (CODM),
which we have identified as our Chief Executive Officer. This information is used to make resource allocation decisions and to
assess financial performance. Our CODM reviews financial information prepared on a consolidated basis for the purposes of
making resource allocation decisions and assessing the performance of the overall organization. Based on an evaluation of all
facts and circumstances, the Company has determined that it functions as a single operating and reporting segment.

We attribute revenues from external customers to individual countries based on the location of our delivery centres or
where the services were provided from.

Years Ended December 31 (millions) 2022 2021 2020

Philippines $ 448 $ 344 $ 287
United States 401 311 208
Germany 275 312 242
Guatemala 224 185 152
Canada 217 188 139
El Salvador 140 121 111
Bulgaria 129 124 104
Spain 127 130 82
Ireland 98 111 92
Other 409 368 165
$ 2,468 $ 2,194 $ 1,582

We do not have significant amounts of net long-lived assets located outside of Canada. As at December 31, 2022, on a
historical cost basis, we had net long-lived assets of approximately $2,373 million (December 31, 2021 – $2,543 million)
located within Canada, and approximately $434 million (December 31, 2021 – $400 million) outside of Canada.

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