Robert McFarlane

1

• Robert McFarlane
• EVP Chief Financial Officer
• Toronto
• September 11, 2003

2
forward-looking statement
This presentation and answers to questions
contain forward-looking statements about expected
future events and financial and operating results
that are subject to risks and uncertainties.
TELUS actual results, performance, or
achievement could differ materially from those
expressed or implied by such statements. For
additional information on potential risk factors,
see TELUS Annual Information Form, and other
filings with securities commissions in Canada and
the United States. TELUS disclaims any intention
or obligation to update or revise any
forward-looking statements, whether as a result
of new information, future events or
otherwise. All dollars in C unless otherwise
specified.
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about TELUS

• Leading Canadian pure-play, facilities-based,
  full-service telecom provider
• 2nd largest Canadian telco
• 2003E Revenues 7.1 to 7.2B
• EBITDA 2.75 to 2.85B
• FCF 800M to 1B
• Enterprise value 17B (equity 9B)
• Listings TSX T, T.A NYSE TU
• Operating segments Communications wireline
• Mobility wireless
• Executing national growth strategy focused on
  data, IP wireless from position of financial
  strength

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Communications segment
ILEC full service in W. Canada and E. Quebec
Non-ILEC focus on data IP for
business in Central Canada Revenue (2003E) 4.85
to 4.9B EBITDA (2003E) 2.0 to 2.075B POPs
covered 7.5M Network Access Lines 4.9M Local/LD
Market Share 96/78 Total Internet
Subscribers 821K (469K high-speed) Fibre IP
backbone national Strategic alliance Verizon
Communications
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Mobility segment
Leading Canadian national wireless provider
coast to coast 1X
CDMA footprint
only one in Canada
iDEN Mike network
best in Canada
Spectrum position
31.5M Cdn. Population
Licensed POPs
28.3M (90)
Network coverage
Verizon Wireless Nextel
Strategic relationships
6
2003 YTD review consolidated

1 Excludes YTD payments under restructuring
workforce reduction initiatives of 202M 77M
for 2003 and 2002, respectively
significant growth in profitability driven by
excellent wireless performance wireline
efficiencies
7
2003 YTD review EBITDA margin
41
40
38
35
34
26
strong margin expansion evident across both
business segments
8
2003 YTD review consolidated
YTD Q2-03
change
YTD Q2-02
? 46
513M
955M
Capex
? 13pts
15
28
Capex Intensity1
? 606M
445M
(161M)
Free Cash Flow2
1 Ratio of capex to total revenues 2 EBITDA less
capex, cash interest, cash taxes, cash dividends
excludes YTD payments under restructuring
workforce reduction initiatives of 202M 77M
for 2003 and 2002, respectively.
over 600M improvement in free cash flow
generation
9
2003 guidance update consolidated
updated 2003 guidance2
original 2003 targets1
7.1 to 7.2B
7.2 to 7.3B
Revenue
?
2.75 to 2.85B
2.7 to 2.8B
EBITDA
?
0.80 to 0.90
0.35 to 0.55
EPS
?
1.2 to 1.3B
approx. 1.5B
Capex
?
800M to 1.0B
300 to 600M
Free Cash Flow
?
?
lt 2.8X
3.0X
Net Debt EBITDA
1 December 16, 2002 Targets conference
call 2 July 29, 2003 guidance provided with Q2-03
results
significantly increased profitability, cash flow
deleveraging outlook
10
revised 2003 financial outlook consolidated
updated 2003 guidance
2002 actuals
change
7.1 to 7.2B
7.0B
Revenue
? 1 to 3
2.75 to 2.85B
2.5B
EBITDA
? 9 to 13
0.80 to 0.90
(0.75)
EPS
? 1.55 to 1.65
1.2 to 1.3B
1.7B
Capex
? 400 to 500M
? 826M to 1.0B
800M to 1.0B
(26M)
Free Cash Flow
? 0.5X
lt 2.8X
3.3X
Net Debt EBITDA
2003 guidance implies significant improvement in
profitability, cash flow leverage
11
2003 implied YoY growth by segment1
1 Uses midpoint of Management guidance for 2003
latest 2003 guidance implies consolidated revenue
EBITDA growth of 2 11, respectively
12
strategic imperatives 2000-2003

• Provide integrated solutions
• Partner, acquire divest as necessary
• Invest in internal capabilities
• Build national capabilities
• Focus on growth markets
• Going to market as one team

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build national capabilitiesTELUS national
infrastructure 2000
14
build national capabilities TELUS national
infrastructure - 2003
15
focus on growth markets consolidated revenue
profile evolution
12ME Q2-03
12ME Q2-00
TELUS Mobility
TELUS Mobility
Wireless
LD
LD
31
14
23
Wireless
18
Local Voice
Data
Data
Local Voice
31
10
43
19
Other
Other
6
5
TELUS Communications
TELUS Communications
5.7B
7.1B
voice focused balanced with
growth
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going to market as one team

• strong brand identity established
• consistent branding across TELUS

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2003 corporate priorities
On track? ? ? ? ? in progress deferred
Feb/04

• Delivering operational efficiency
• Enhancing wireless performance
• Improving Central Canada profitability
• Strengthening financial position
• Driving improved levels of customer service
• Reaching a collective agreement

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delivering operational efficiencyoperational
efficiency program (OEP)

• Achieved 199M in OEP savings YTD 2003
• Cumulative annual savings of 349M to June 30,
  2003
• On track for cumulative savings of 450M in 2003
• Cumulative 2004 estimated annual target of 550M

6,500
Staff Reductions
6,050
June 2003 Actual
2003E
driving 300M in incremental cost reductions in
2003
22
enhancing wireless performance continued
leadership in ARPU
YTD Q2-02
55
54
YTD Q2-03
46
46
45
44
39
38
TELUS Mobility
Rogers ATT
BCE Wireless
Microcell

• Source Company reports

significant premium to closest competitor
maintained
23
enhancing wireless performance leading
performance in churn
3.3
3.0
2.6
2.4
2.2
2.2
1.7
1.6
1.4
1.3
BCE
Cingular
TELUS
Verizon
ATT
Rogers
Nextel
Sprint PCS
Microcell
T-Mobile
TELUS Q2 churn rate is best-in-class
24
enhancing wireless performance YTD market share
of wireless net additions1
Rogers ATT
Aliant
Bell
TELUS Mobility 34
Other
1 Excludes Microcell subscriber losses, and
Rogers Wireless Q2-03 prepaid adjustment Source
Company reports, and analyst estimates
TELUS Mobility continues to capture healthy share
of industry net additions
25
enhancing wireless performance how does TELUS
Mobility measure up?
US Avg 2003
Cdn Avg 2003
TM 2003 guidance
33
32
37
EBITDA / network rev.
18
28
43
Annual EBITDA growth rate
21
17
17
Capex intensity1
11
9
19
(EBITDA Capex) / net. rev2
53
41
12
Mkt penetration/cov. POPs
6 to 8
3 to 4
-
No. of carriers in market
0.5
0.9
1.2
Penetration gain/carrier3
Sources TELUS estimates. Cdn. Statistics -
Company Reports US Statistics - Morgan Stanley 1
Projected capex as a of forecast total revenue.
2 Projected EBITDA less projected Capex divided
by projected network revenues 3 Projected
wireless penetration gain divided by of
carriers in market. For TELUS, projected net adds
divided by projected covered POPs
TELUS Mobility is best-in-class operating in a
strong 3 player Canadian wireless industry
26
improving Central Canada profitability non-ILEC
revenue and EBITDA
non-ILEC traction with 7 consecutive quarters of
EBITDA improvement
27
reaching a collective agreementlabour relations
update

• Federal conciliators announced conclusion of
  global review between TELUS the TWU on July 16
• 60-day negotiating period to begin Nov. 14 with
  exchange of written proposals
• If agreement not reached at end of 60-day period,
  21-day cooling off period will follow
• Process not expected to conclude until early
  Feb/04

TELUS committed to reaching agreement that
balances the needs of all parties
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strengthening financial position credit profile
29
credit profiledebt overview

• TELUS debt structure simplified with 86 of total
  debt now at TELUS Corporation
• Average term to maturity 6.4 years1
• Modest long-term debt maturities until 2006
• 499M bank borrowings1 expected to gradually
  decrease and be paid off by Q1-04
• Fixed to floating ratio currently conservative
  95
• Foreign currency debt is fully hedged

1 As at June 30, 2003
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credit profileMarch 2001 prior to
re-organizations
TELUS Corporation (TC) Tranche A3
5.0B - 89 utilized Tranche B3
1.25B - undrawn4 Commercial Paper
0.02B Interco Notes from subsidiaries
3.15B

• TELUS Québec
• MTNs
• Mortgage Bonds
• Bank- 0.06B

70
0.13B
100

• 612459 B.C. Ltd.
• Upstream guarantees supporting TC

• TELUS Communications Inc. (TCI)
• Upstream guarantees supporting TC
• MTNs
• Debentures
• Capital leases 0.027B
• Commercial Paper 0.974B
• Interco Notes to TC 2.106B
• Pref. Shares issued to public 0.07B

• Clearnet Communications Inc (CCI)
• Sr. Discount Notes 1.744B
• Interco Notes to TC 0.089B

1.395B

• Clearnet PCS Inc. (CPI)
• Interco Notes to TC 0.658B

• Clearnet Inc. (CI)
• Interco Notes to TC 0.297B

1 Condensed organizational chart showing only
those companies material to the Bank financing.
2 TC, TCI and 612459 B.C. Ltd. provide, where
applicable, pledge of shares, upstream
guarantees, and assignment of inter-company
notes. 3 Bank Tranches were secured. 4 Tranche B
includes notional CP backup of 1.0 B and
outstanding L.C.s at March 31, 2001 of 100 M.
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credit profile corporate reorganization activity

• Re-organized legal structure to align with
  business operations and access Clearnet tax
  losses
• Mobility business consolidated into TELE-MOBILE
  Company partnership in 2001
• 2002 wind-up of Clearnet Inc. into TELUS
  Communications Inc. (TCI)
• made additional losses available - no cash income
  taxes payable until 2007
• tax-effected loss carryforwards recognized for
  accounting 766M at year-end 2002

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credit profileJune 2003 post re-organizations
TELUS Corporation Maturity Bank 1
-Tranche A 1.5B revolver May 2004
-Tranche B 0.6B revolver May
2004 C 7.5 Notes 1.6B June 2006 US 7.5
Notes 1.6B June 2007 US 8.0 Notes 2.6B June
2011
100

• TELUS Communications Inc.
• MTNs 0.020B
• Debentures 0.988B
• Net Sr. Notes to TC 2.3B

• TELUS Québec
• Mortgage Bonds 0.030B
• MTNs 0.070B

1 At June 30, 2003, Tranche A had outstandings
of 499M and Tranche B was undrawn
33
credit profile debt structure - maturities

Bank Facility

• Includes drawn bank credit facilities
  outstanding at June 30, 2003 of 499 million

34
credit profile364-day renewal

• Renewed 600M 364-day credit facility portion in
  May 2003
• back-up facility
• not projected to draw upon
• Combined bank facilities now 2.1B
• No material changes to terms
• New maturity date May 2004 with TELUS option to
  term-out to May 2005

TELUS liquidity position expected to remain gt1B
35
credit profilecredit rating environment

• Rating agencies have raised the bar post-Enron
• proactive orientation with negative bias
  generally
• criticism of agencies (ATT Canada, WorldCom,
  Microcell)
• telco industry risk premium increased
• rating methodology changed/not transparent
• time horizon shortened
• FCF focus

credit rating committee process benchmarks
became less transparent
36
credit profile TELUS yield spread analysis (1 of
2)
TELUS C US Note Yield Spread Analysis (May
24, 2001 to September 5, 2003)
May 2001
July 2002
Current
rating downgrades caused unprecedented
dislocation remedied by results
37
credit profile TELUS yield spread analysis (2 of
2)
current credit spreads are below issue spreads
38
credit profilewhats happened since July 2002?

• 337M equity-funded debt buyback
• 364-day credit facility renewed
• OEP tracking to plan
• 3rd consecutive year heading to exceed annual
  profitability guidance
• Significant cash tax recoveries
• Significant capex reduction
• Significant free cash flow generation

deleveraging ahead of plan
39
credit profiledemonstrated credit improvement
1 12-month trailing Free Cash Flow 2 Percentage
of total debt at TELUS Corp. (Parent level) -
inclusive of bank facility hedge liability
credit enhanced but rating lower
40
credit profile improving free cash flow1
800 to 1,000M
2002
2001
2003E
(26)M
(1.35)B
1 EBITDA less capex, cash interest, cash taxes,
cash dividends excludes restructuring
workforce reduction costs
41
credit profiledebt reduction ahead of plan
1 Before restructuring and workforce reduction
costs 2 Dividend reinvestment employee share
plans
42
credit profile2003 guidance then now
executing ahead of plan
43
credit profilecredit rating update changes in
2003

• April 16 Moodys outlook to stable from
  negative
• May 28 Fitch outlook to stable from
  negative
• June 16 DBRS trend to stable from negative
• August 8 SP outlook to stable from
  negative

credit ratings are lagging indicators of
improvement
44
credit profilecurrent debt ratings
TELUS Corporation DBRS
BBB Stable Trend SP BBB Stable
Outlook Fitch BBB Stable
Outlook Moodys Ba1 Stable Outlook
100
TELUS Communications Inc. DBRS BBB Stable
Trend SP BBB Stable
Outlook Fitch BBB Stable Outlook
TELUS Québec DBRS BBB Stable Trend SP
BBB Stable Outlook
45
credit profileBCE TELUS credit comparison1

3 Notch Difference
rating differential not supported by FCF analysis
46
2003 outlook leading N.A. telecom performance
Projected 2003 EBITDA Growth Rates
11
5
3
BellSouth
0.2
Sprint
Verizon
SBC
ATT
TELUS
BCE
MTS
Aliant
(3)
(4)
(5)
(11)
As at August 28, 2003
(18)
Notes TELUS data based on 2002 actual results
average of 2003 guidance Other 2003
estimates provided by Bloomberg and analyst
estimates
47
2003 outlook leading N.A. telecom performance
Projected 2003 Cash Flow (EBITDA - Capex) Growth
Rates
89
22
12
12
9
5
3
ATT
Verizon
Sprint
SBC
TELUS
Aliant
BCE
MTS
Bell South
(2)
As at August 28, 2003
Notes TELUS data based on 2002 actual results
average of 2003 guidance Other 2003
estimates provided by Bloomberg and analyst
estimates
(15)
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summary

• Delivering on our strategy
• TELUS Communications improving efficiencies
• 
  non-ILEC on-track
• TELUS Mobility executing materially ahead of
  plan
• Improved 2003 cash flow earnings outlook
• Generating significant cash flow of 800M to 1B
• Continued material debt leverage reduction

strong improving investment-grade credit profile
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questions?
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investor relations

• 1-800-667-4871
• telus.com
• ir_at_telus.com

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appendix
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appendixBCE TELUS credit comparison1,4 (1 of 2)

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appendixBCE TELUS credit comparison1,4 (2 of 2)

3 Notch Difference
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appendixintercompany financing1 (as at June 30,
2003)
Senior Notes 3.1B Subordinated Equity Settled
Note 3.6B
Senior Note 0.8B Subordinate Note 3.2B
1 Excludes net advances owed from TC to TCI of
800M at June 30, 2003.
TELUS Corporation has a net 2.3B senior claim at
TCI thereby mitigating structural subordination
concerns
55
appendixTELUS Communications Inc. key metrics
1 Excludes restructuring workforce reduction
costs