Darren Entwistle

1
Communacopia XIII Conference

• Darren Entwistle
• Member of the TELUS Team
• October 5, 2004

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
including those associated with the potential
completion of the Microcell bid, see TELUS
Annual Information Form, the Offers to Purchase
and Circular, 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.
3

• leading the way
• consistent strategy

4
2004E global telecom performance
projected EBITDA growth rates
7
5
5
4
4
2
2
1
Nippon
PCCW
SBC
Telia
MTS
BLS
ATT
0.5
0.1
(0.2)
TELUS
FT
DT
BCE
Sprint
Telstra
BT
VZ
Aliant
KPN
(2)
(2)
(4)
(6)
(7)
As at August 4, 2004 Note TELUS data based on
2003 results mid-point of 2004 guidance
Other estimates provided by Bloomberg, company
and analyst reports
(30)
5
2004E global telecom performance
projected Cash Flow (EBITDA - Capex) growth
rates
10
10
9
6
5
4
SBC
Nippon
DT
Telia
PCCW
BT
BLS
KPN
MTS
ATT
1
(0.5)
(0.6)
TELUS
Sprint
Aliant
BCE
VZ
FT
Telstra
(1)
(2)
(4)
(5)
(5)
(9)
As at August 4, 2004 Note TELUS data based on
2003 results mid-point of 2004 guidance
Other estimates provided by Bloomberg,
company and analyst reports
(17)
(25)
6
agenda

• about TELUS
• financial update
• strategy
• corporate priorities
• investor considerations

7
about TELUS

• 2nd largest Canadian telco
• executing national growth strategy focused on
  data, IP wireless from position of financial
  strength
• 2004E1 Revenues 7.45 to 7.55B
• EBITDA2 2.975 to 3.075B
• FCF 1.15 to 1.25B
• Enterprise value 16.5B ( 9B equity)
• Listings TSX T, T.A NYSE TU
• Daily Trading3 1.1 million shares
• Operating segments wireline TELUS
  Communications
• wireless TELUS Mobility

1 Updated guidance on August 6, 2004

2
Earnings before interest, taxes, depreciation
amortization, after restructuring workforce
reduction costs. 3 Recent 6 month average
8
about TELUS Mobility
leading Canadian national wireless provider
2.675 to 2.725B ? 13 to 16
Revenue (2004E)1
1.05B to 1.1B ? 29 to 35
EBITDA (2004E)1
coast to coast 1X
CDMA footprint
only one in Canada (Nextel in US)
iDEN Mike network
best in North America
Spectrum position
31.8M Cdn. Population
Licensed POPs
29.7M (93)
Network coverage
1 Updated guidance on August 6, 2004
9
about TELUS Communications
ILEC full service in W. Canada and E. Quebec
non-ILEC data IP for businesses in
Central Canada Revenue (2004E)1 4.7 to 4.8B
? -2 to 0 EBITDA (2004E)1 1.925 to 1.975B
? -4 to -1 Ntwk access lines 4.8M Internet
subs 925K total / 624K high-speed Fibre IP
backbone national
1 Updated guidance on August 6, 2004
10
consolidated revenue profile evolution
12ME Q2, 2004
12ME Q2, 2000
TELUS Mobility
TELUS Mobility
Wireless
LD
LD
35
13
23
Wireless
54
18
28
Local Voice
Data
Data
Local Voice
29

10

43
19
Other
Other
6
4
TELUS Communications
TELUS Communications
5.7B
7.3B
Voice focused
balanced growth
11
financial update
12
2004 YTD review - consolidated
YTD Q2, 2004
change
YTD Q2, 2003
? 4.4
3.67B
3.51B
Revenue
1.51B
1.38B
EBITDA1
? 9.1
274M
163M
Net Income
? 68
? 65
0.76
0.46
EPS2
? 340M
673M
333M
Free Cash Flow3

1 After restructuring workforce reduction costs
of 17M 10M for YTD Q2-04 YTD Q2-03,
respectively. 2 Incl. impacts of tax settlements
related interest of approx. 0.17 0.15 in
YTD Q2-04 YTD Q2-03, respectively.
3 Defined as EBITDA, adding Restructuring and
workforce reduction costs, cash interest received
and excess of share compensation expense over
share compensation payments, subtracting cash
interest paid, cash taxes, capital expenditures,
and cash restructuring payments.
13
Mobilitys share of TELUS EBITDA cash flow
EBITDA less capex
14
2004 financial outlook - consolidated
current 2004 guidance1
2003 actuals
change
7.45 to 7.55B
7.15B
Revenue
? 4 to 6
2.975 to 3.075B
2.82B
EBITDA
? 6 to 9
1.30 to 1.50
0.92
EPS
? 41 to 63
approx. 1.3B
1.25B
Capex
? 4
? 36 to 48
1.15B to 1.25B
845M
Free Cash Flow
? 0.3x
lt 2.3x
2.6x
Net Debt EBITDA
1 Updated guidance on August 6, 2004
2004 guidance implies significant improvement in
profitability, cash flow leverage
15
strategy
16
strategic imperatives 2000-2004
consistent strategy

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

to unleash the power of the Internet to deliver
the best solutions to Canadians at home, in the
workplace and on the move
17
strategic journey highlights
2000

• purchase of Quebec Tel
• purchase of national wireless operator Clearnet
• divestiture of non-core assets
• completion of national IP backbone fibre
  network
• first in N.A. to launch Next Generation Network,
  enabling offer of IP-based solutions to customers
  
• won landmark national managed data solutions
  contract with IBM Canada for TD Bank
• 1 ranked North American wireless company

2004
18
build national capabilities
TELUS infrastructure - 2000
19
build national capabilities
TELUS infrastructure - 2004
20
corporate priorities
21
2004 six corporate priorities

• Reaching a collective agreement
• Growing brand value through superior customer
  service
• Embracing continual cost efficiency
• Revitalizing wireline growth
• Driving towards leadership in high-speed Internet
• Enhancing our leadership position in wireless

22
embracing continual cost efficiency

• Operational Efficiency Program (OEP) phases I to
  III during 2001?2004
• on track for cumulative annual savings of 550M
  for 2004 onwards
• incremental savings of 100M in 2004 with 50M
  achieved June 30 YTD
• 7,550 net staff reductions
• combining Business Client Solutions into one
  business unit to improve efficiency
  effectiveness under leadership of Joe Natale (H2
  2004)
• rationalizing IT systems over 2-3 years

view successful 2001-2004 OEP as platform for
embedding ongoing improvements
23
revitalizing wireline growth

• geographic expansion
• high quality, recurring, IP-based revenues in
  Central Canada
• leverage technological leadership and service
  differentiation that TELUS Next Generation
  Network (NGN) provides
• bundling price increases
• TELUS bundling strategy protects legacy revenues
• LD bundled with high-speed Internet and
  increased system access fee
• home communication solutions
• continuing high-speed Internet growth
• TELUS future friendly home

24
driving towards leadership in high-speed Internet
driving towards leadership in high-speed Internet

• 2004 target of 125,000 new subscribers
• on track in H1-04 with 63,000

• first to market with new services
• Spam Control
• anti-virus
• ad Block
• PureradioTM
• PuretracksTM
• security bundles

25
driving towards leadership in high-speed Internet
TELUS high-speed market share1
Total Internet subscribers
39
35
High Speed
30
Dial-up
67
33
Q2-03
Q2-02
Q2-04
925K
1 In ILEC operating areas
continued market share growth
26
Canadian wireless penetration growth prospects
2004YTD
2003
2007E
42
55-59
44
13.4M subs
18-19M subs
13.9M subs
Source Industry analysts
4 to 5 million net adds expected over next 3.5 yrs
27
profitable subscriber growth strategy
enhancing our leadership position in wireless
12ME Q2, 2004 Industry subscriber growth
12ME Q2, 2004 Industry EBITDA growth
TELUS Mobility
TELUS Mobility
31
40
1.5M
737M
Source Company reports. Sum of reported net
adds wireless EBITDA for BCE, Rogers Wireless,
Microcell, TELUS Mobility
28
enhancing our leadership position in wireless
continued leadership in ARPU
58
55
49
48
46
45
39
38
Microcell
TELUS Mobility
BCE Wireless
Rogers Wireless

• Source Company reports

29
leading performance in churn
enhancing our leadership position in wireless
3.5
3.4
2.8
2.7
2.3
1.8
1.6
1.4
1.3
1.3
Verizon
ATT
BCE
T-Mobile
TELUS
Nextel
Sprint PCS
Rogers
Cingular
Microcell
TELUS Q2 churn rate is best-in-class
30
lifetime revenue1 per customer improvement
enhancing our leadership position in wireless
4,100
3,900
2,800
YTD Q2-03
YTD Q2-04
YTD Q2-02
1 ARPU / Churn
TELUS subscriber economics continue to improve
31
North American iDEN Direct Connect
32
how does TELUS Mobility measure up?
Cdn Avg 2004E
US Avg 2004E
TELUS 2004 guidance
32
37
40
27
31
32
19
16
13
12
21
27
58
46
13
6 to 8
3 to 4
-
0.5
1.0
1.3
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 total 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 in fundamentally
stronger 3 to 4 player Canadian wireless industry
33
TELUS Mobility ranked 1 in North America
enhancing our leadership position in wireless

• 1. TELUS Mobility
• 2. Verizon Wireless
• 3. Nextel
• 4. Alltel
• 5. Bell Mobility
• 6. Alamosa PCS
• 7. Nextel Partners
• 8. AirGate PCS
• 9. Sprint PCS
• 10. T-Mobile (USA)
• 11. Rogers Wireless

• 12. Western Wireless
• 13. US Cellular
• 14. Cingular
• 15. US Unwired
• 16. Ubiquitel
• 17. MetroPCS
• 18. ATT Wireless
• 19. Leap Wireless
• 20. Dobson
• 21. Triton PCS
• 22. Microcell

Source N. Moore Capital, Value Metric Rankings,
Q2-04
34
investor considerations
35
continue EBITDA growth
investor considerations
Digital Home
Non-ILEC Growth
Organization Effective-ness
Competitive Intensity
Technology Substitution
Regulatory Pressure





Tip the scales and hold EBITDA flat for the
wireline business
36
leading the way
why invest in TELUS

• TELUS Mobility
• high proportion of consolidated revenue cash
  flow
• most profitable wireless carrier in North America
• TELUS Communications
• good results relative to peers
• robust revenue composite with small exposure to
  LD
• continued material debt leverage reduction
• generating significant cash earnings growth

pure play telecom operating company with strong
growth profile
37
improving free cash flow
investor considerations
1.15B to 1.25B
845M
2002
2001
2004E
2003
(140)M
(1.14)B

TELUS subscriber economics continue to improve
strong track record of FCF generation ?40 in
2004
38
investor considerations
2004E global telecom performance
136
projected EPS growth rates
100
52
49
43
42
28
15
10
7
SBC
BLS
VZ
Aliant
BT
Sprint
ATT
(3)
(3)
Nippon
FT
TELUS
MTS
Telia
DT
KPN
PCCW
Telstra
BCE
(5)
(5)
As at August 4, 2004 Notes TELUS data based on
2003 results mid-point of 2004 guidance
Other estimates provided by Bloomberg and
company reports
(46)
(46)
(78)
39
excellence in corporate governance

• ranked 9th by Corporate Essentials, Annual
  Report of Annual Reports only global ranking
  of ARs
• 1st in Canada 2nd in North America
• ranked 1 in world for strategy, objectives
  outlook
• nine years of disclosure excellence in corporate
  reporting awards by Canadian Institute of
  Chartered Accountants
• IR website ranked 3rd in both Canada and among
  global telecom companies by IR Web Report
• member of DJSI for four consecutive years only
  North American telecommunications company listed
• recognized as Canadas Best Environmental
  Corporate Citizen

e.Com Report Watch
40
questions?
41
investor relations

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