TELUS Investor Conference Call and Webcast

1
TELUS Investor Conference Call and Webcast 2nd
Quarter 2001 Results July 26, 2001
2
Robert McFarlane

• EVP Chief Executive Officer

3
Q2 2001 Highlights

• Revenue ? 20 led by wireless data
• TELUS Communications revenue
• Good growth in local voice
• Strong data improvement
• Solid high-speed ADSL Internet subscriber growth
• Long distance down due to pricing wireless
  substitution
• TELUS Mobility financial results
• Continued strong revenue growth
• Stable, industry-leading ARPU
• Significant growth in EBITDA and EBITDA - COA

4
Q2 2001 Achievements

• Refinanced short-term debt with mid to long-term
  maturities
• Exceeded 2001 target for divestitures
• 1.038B announced to date exceeds 0.9 - 1.0B
  target
• Significant dividend reinvestment
• 40.5 participation rate
• Closed three data IP acquisitions
• Completed Internet Data Centres Toronto
  Calgary

5
TELUS CORPORATIONQ2 2001 Consolidated
FinancialResults Review
6
Q2 Reporting Changes

• TELUS Advertising Services now reported as
  discontinued operations
• Nomenclature for Cash EPS changed to more
  appropriate term Core EPS

7
Q2 Highlights - Revenue

• Change
• Reported Reported Pro forma1
• Consolidated 1,745M ? 20.1 ? 5.8

1 Pro forma includes Clearnet QuébecTel in Q2,
2000 All periods restated to exclude discontinued
operations of TELUS Advertising Services
8
Q2 Highlights - Revenue
Wireless and Data Driving 20 Growth
Q2 2001
Q2 2000
LD
LD
Mobility
15
19
26
41
Mobility
37
Local Voice
19
Data
Local Voice
16
Data
15
6
6
Other
Other
1.7B
1.5B
9
Q2 Highlights - EBITDA

• Change
• Reported Reported Pro forma1
• Consolidated 617M ? 4.3 ? 8.9

Reported
1 Pro forma includes Clearnet QuébecTel in Q2,
2000
10
Q2 Highlights Core EPS

• Q2, 2000 Q2, 2001
• Consolidated 0.64 0.32
• Clearnet notes repayment gain 0.11
• Fibre sale gain 0.04

Reported
11
Q2 Highlights Capital Expenditures

• Change
• Reported Reported Pro forma1
• Consolidated 684M ? 116.9 ? 54.4

• Non-cash fibre capex of 76M

1 Includes Clearnet QuébecTel in Q2, 2000
12
TELUS COMMUNICATIONSQ2 2001 Financial Results
Review
13
Q2 Highlights Communications

• Change
• Reported Reported Pro forma1
• Revenue 1,291M ? 9.3 ? 4.7
• Data ? 26 (19 pro forma)
• IP/Internet ? 60 (46 pro forma)

1 Includes QuébecTel for April May, 2000
14
Operating Highlights - Communications

• High-speed Internet net adds showing momentum
• Q2 ? 58 (71 pro forma)
• Network access lines up 1.3
• Stable ILEC market shares 98 local 79 L.D.

15
Q2 Highlights Communications

• Change
• Reported Reported Pro forma1
• EBITDA 511M ? 2.1 ? 0.2
• Staffing costs
• Higher costs supporting Data/IP
• national expansion
• Real estate sale leaseback costs

1 Includes QuébecTel in April May, 2000
16
Q2 Highlights Communications

• Initiated efficiency improvement program in
  mid-June
• Focused on improving Communication segment 2001
  EBITDA exit run rate
• To be complemented by process system
  improvements impacting over medium term

17
TELUS MOBILITYQ2 2001 Financial Results Review
18
Q2 Highlights Mobility

• Change
• Reported Reported Pro forma1
• Revenue 454M ? 67.0 ? 9.3
• Network Revenue 398M
• ? 16 pro forma

454M
415M
?9
01
00
Pro forma
1 Includes Clearnet QuébecTel Mobilité in Q2,
2000
19
Q2 Highlights Mobility

• Change
• Reported Reported Pro forma1
• EBITDA - COA 206M ? 43.3 ? 19.6

206M
172M
?20
00
01
Pro forma
1 Includes Clearnet QuébecTel Mobilité in Q2,
2000
20
Q2 Highlights Mobility

• Change
• Reported Reported Pro forma1
• EBITDA 106M ? 16.4 ? 93.8

106M
55M
?94
01
00
Pro forma
1 Includes Clearnet QuébecTel Mobilité in Q2,
2000
21
TELUS CORPORATIONQ2 2001 Financial Issues
22
Balance Sheet Highlights
Reflects successful refinancing

• As At
• (M) Jun 30, 2001 Dec 31, 2000
• Short-term obligations 1,200 5,033
• Long-term debt 7,926 3,047

Average term of debt now 7.5 years compared to
2.7 years in March
23
Balance Sheet New Credit Facilities

• Up to C2.5B
• Tranches A C1.5B 3 - year revolver
• B C1.0B 364 - day
  extendible revolver
• Purpose Tranche A Refinance debt liquidity
• Tranche B CP backup
• Additional C2.0B committed - not required due to
  size of Notes offerings
• Closed May 30, 2001

24
Balance Sheet Debt Refinancing

• Total proceeds C6.6B
• Largest ever debt offering by a Cdn. corporation
• C offering C1.6B - 5 year term
• US 1.3B - 6 year term
• US 2.0B - 10 year term
• Ratings SP BBB
• Moodys Baa2
• DBRS BBB (High)
• Use of Proceeds Repay short term bank debt
• Refinance Clearnet notes
• General corporate purposes
• Closed May 30, 2001

25
Dividend Reinvestment

• New Plan successfully implemented
• 5 discount re-implemented
• Non-voting shares issued from Treasury
• Opened to U.S. shareholders
• Effective July 1, 2001
• 40.5 of shares in July 1 dividend reinvestment
• Verizon participation 21.7
• 41 million cash retained
• Quarterly Dividend of 0.35, payable Oct 1, 2001

26
2001 Financial Outlook
Current2
Original
Adjusted1
1 Adjusted for discontinued operations of
Advertising Services Telecom Leasing Canada 2
Includes 2001 acquisitions of Columbus Group,
Williams Communications, Daedalian eSolutions,
the remaining 30 of TELUS Québec Arqana
Technologies 3 Does not include 356M for
wireless licenses won in spectrum auction
27
2001 Financial Outlook
2001 EBITDA by segment Current Outlook
28
Summary

• Solid Second Quarter results
• 20 revenue growth (6 pro forma)
• 4 EBITDA growth (9 pro forma)
• Industry-leading ARPU revenue results at TELUS
  Mobility
• Data revenue growth of 26 (19 pro forma)
• National growth momentum
• High-speed Internet subscriber momentum
• Refinancing complete
• 2001 Outlook revised strong results still
  expected

29
Investor Relations

• 1-800-667-6871
• www.telus.com