Robert McFarlane

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RBC Capital Markets Back to the Summit
2002April 11, 2002

• Robert McFarlane
• EVP Chief Financial Officer

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Todays topics

• About TELUS
• Strategic Imperatives
• 2001 Highlights
• 2002 Targets Issues
• Summary

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Forward-Looking Legal Disclaimer
This presentation contains 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 2001 Annual
Report 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
• Merger of two ILECs BC TEL TELUS (Alberta) in
  1999
• Notable acquisitions
• 869M for 100 of regional ILEC QuébecTel
• 4.1B (50/50 cash/shares) plus debt for 100 of
  Clearnet Communications
• 2001 revenues of 7.2B EBITDA of 2.5B
• Enterprise Value 14B (5B equity)

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About TELUS

• Reinvesting cash flow from stable ILEC business
  into national expansion focused on growth areas
  of data, IP wireless
• Well financed with investment grade credit
  ratings
• Listings TSE (T and T.A) NYSE (TU)
• 90-day average daily trading 900K shares

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About TELUSConsolidated Revenue Profile
2001
2000
TELUS Mobility
TELUS Mobility
LD
Wireless
Wireless
LD
15
20
19
27
Data
Local Voice
15
Data
Local Voice
35
Other
40
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Other
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TELUS Communications
TELUS Communications
6.1B
7.2B
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About TELUS - Operating Segments

TELUS CORPORATION
TELUS Communications Segment
TELUS Mobility Segment
TELUS is an operating company focused on the
Canadian Telecom Industry
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TELUS Communications

• Full-service ILEC - Western Canada Eastern
  Québec
• Local, long distance, data other
• 7.5M POPs covered 5.0M network access lines
• Strong stable cash flow generator
• High market share in ILEC territories
• Local 98 / Long distance 79
• 2nd largest ISP in Western Canada - 670K subs
• Expanding into larger Central Canadian market
  
• Targeting business data IP markets
• Verizon Genuity strategic partnerships

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TELUS Mobility

• Leading national facilities-based wireless
  provider
• Largest in terms of revenue and spectrum position
• 2.6M subscribers1 / 31M licensed POPs
• Market leader in western Canada
• Acquired fast growing national provider Clearnet
  in Oct. 00
• Successfully integrated rebranded TELUS
  Mobility nationally
• Networks
• Licensed nationally with large CDMA footprint
• Operates only iDEN (Mike) network in Canada
• Strategic relationship with Verizon Wireless

1 Year-ended December 31, 2001.
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TELUS Mobility Leads Industry Total Revenue
12 ME Dec. 31, 2001
Microcell
TELUS Mobility
0.6B 9
1.9B 32
1.7B 28
Rogers ATT
1.8B 31
Bell Mobility
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Six Strategic Imperatives

• Providing Integrated Solutions
• Building National Capabilities
• Focusing on Data, IP Wireless Growth
• Partnering, Acquiring Divesting
• Investing in Internal Capabilities
• Going to Market as One Team

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1. Providing Integrated Solutions
Local Area Network
Mobile
Call Centres
Data CPE
Managed Voice
Managed LAN
LAN Integration
IP-VPN
Systems Integration
Frame/ATM Securedial
ASP
ISP Services
Data Networks
IP Call Center
DSL
Wide Area Network
e- m- Commerce
IP Applications
ISDN
Web Hosting
Leased
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2. Building National Capabilities

• Excellent progress integrating mobile operations
• Capital and expense synergies of 230M in 2001
• Accessed 331M of cash tax saving in 2001
• Network sharing deal with Bell Mobility Aliant
  Telecom Wireless effective in 2002
• Lit cross-Canada IP backbone network

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National Infrastructure Now in Place
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Upward Traction in Central CanadaNon-Incumbent
Non-ILEC1
(M)
1 Includes pro forma QuébecTel Non-ILEC
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Central CanadaTotal Wireline View

• Wireline (ILEC and Non-ILEC) revenue of 609M in
  2001
• Wireline EBITDA almost break-even in 2001

Significant scale being achieved
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3. Partnering, Acquiring Divesting

• Leveraging our partnerships
• Operationalizing cross-border roaming with
  Verizon Wireless
• Small data IP acquisitions targeted
  geographically toward Central Canada
• Divesting to fund growth and strengthen balance
  sheet

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4. Focusing on Data, IP Wireless

• 3 new Intelligent world-class data centres
• TELUS IP backbone ranked No. 1 in Canada by UK
  based Netconfigs Ltd.
• Data growth in Q4-01 ? 17 normalized
• Record upward traction on Velocity ADSL Internet
  service

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Accelerating High-speed Internet
High-speed Internet
(000s)
58
30
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Actuals
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15
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Q3
Q2
Q4
Q1
131K net adds exceeded original target of
95K targeting gt200K in 2002
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5. Investing in Internal Capabilities

• TELUS named top 10 best company to work for by
  The Globe Mail Report on Business
• Employees engaged in strategy
• 80 agree vs. 62 two years ago
• Operational efficiency program
• Part I commenced mid-2001
• Reduced 1,000 employees in Q3
  Q4-01 (excl. acquisitions)
• Part II more substantive/gearing up now

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6. Going to Market as One Team

• Successfully integrated TELUS Mobility, Clearnet
  QuebécTel Mobilité
• TELUS future friendly brand extended across
  Canada
• Marketing Magazine Award - TELUS speaking with
  one clear voice

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Award Winning Advertising

• TV Ads

Slide 22
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2001 Year-End Results Performance vs. Guidance

Slide 23
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2001 Highlights - Consolidated
1 Pro forma includes Clearnet and
QuébecTel 2 Excluding 356M for wireless spectrum
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Performed Well Against 2001 Targets
1 Adjusted for divestitures of TELUS Advertising
Services and Telecom Leasing Canada
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2001 Financing Goals Achieved

• 9.2 billion debt financing - largest ever in
  Canada
• Average term to maturity improved to 7.6 from 3.0
  years
• 93 of debt is fixed rate
• 840M net cash inflow from divestiture MA
  activities
• Cash flow strengthened
• Future annual dividend outflow 100M from 400M
• Reorganizations accessed cash tax saving of 360M
• Investment grade BBB SP rating recently
  confirmed

Entering 2002 from position of financial strength
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TELUS Public Debt
TELUS 11 8.0 Note Spread vs. 10 Year Telecom
Index
Index
TELUS
TELUS credit spread has improved and outperformed
Telecom industry
Index includes SBC, VZ, BLS, VOD, TEF, QUS,
WCOM, DT, T, CZN, FON, BT, FT, TELUS, AWE.
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2002 Targets Issues
Slide 28
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2002 Targets
Consolidated
1 includes expected negative impact of approx.
390M from regulatory contribution decision 2
includes expected negative impact of approx.
230M from regulatory contribution decision
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2002 Regulatory Issues

• Estimated (230)M EBITDA impact from contribution
  rebanding decisions
• review and variance appeal pending with CRTC
• Local price cap and facilities discount decisions
  by CRTC expected at the end of May, 2002

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Valuation Considerations
2002E 1
Metric
Sum
of Parts Components
Multiple 2
2,165M
EBITDA
Wireline-ILEC
5.5 to 6.5x
1-1.5x
650M
Revenue
Wireline Non-ILEC
10 to 12x
460M
EBITDA
Wireless
Additional Information3 Net Debt 8.7B
NPV Tax Shield 450 to 500M Shares
outstanding 302M

• 1 Mid-point where guidance represented by range
• 2 Source Analysts comparables per Analyst
  reports
• 3 As at Dec 31, 2001

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Why Invest in TELUS?

• Executing on a focused telecom growth strategy
• Resilient cash flow from traditional ILEC
  business
• Leading wireless business in Canada
• High growth Non-ILEC wireline national expansion
• Focusing on improved operational efficiencies
• Met financial targets - establishing solid mgt.
  track record
• Strong liquid financial position - investment
  grade rating

Invest in pure-play operating telco executing
from position of strength
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Questions Answers
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Investor Relations

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

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