TELUS

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TELUS Investor Conference Call Webcast
2002 Guidance Update 2003 Targets December 16,
2002
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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 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.
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Robert McFarlane EVP Chief Financial
Officer TELUS Corporation
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2002 Consolidated Outlook
Raising profitability and cash flow guidance
1 Earnings before Interest, Taxes, Depreciation
and Amortization - excludes restructuring costs
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2002 TELUS Communications Outlook
Improving Non-ILEC and Capex outlook
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2002 TELUS Mobility Outlook
Profitable growth strategy translating into
significant positive cash flow generation
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2003 Consolidated TargetsRevenue EBITDA
Underlying revenue EBITDA growth of 4 to 5 and
11 to 15 excluding negative price cap regulatory
decision
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2003 Consolidated TargetsEBITDA Continuity
1 Pension expense is primarily non-cash in
nature
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2003 Consolidated TargetsEPS
Significant margin expansion and reduced
workforce reduction expenses driving increased
EPS in 2003
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2003 Consolidated TargetsCapex
Change
2003 Target
? 12
Capex
approx. 1.5B
Significant downward trend in Capex intensity2
ratio
1 2001A Capex excludes 356M for spectrum
purchases, 37 if included 2 Ratio of Capex to
total revenues
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2003 Consolidated TargetsEBITDA less Capex
Change
2003 Outlook
? 50 to 63
EBITDA - Capex
1.2 to 1.3B
1.2 to 1.3B
approx. 800M
2002E
2003E
Significant EBITDA - Capex increase
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2003 Consolidated Targets Free Cash Flow
1 Before restructuring and workforce reduction
costs 2 Including sale of accounts receivable
(25M)
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2003/2004 Consolidated Targets Debt EBITDA
Expect significant leverage drop in 2003/2004 due
to increased EBITDA and FCF
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2003 Communications Segment TargetsRevenue
Change
2003 Target
? 0 to 1
Revenue
5.0 to 5.05B

Underlying revenue growth of 1 to 3 excluding
negative price cap regulatory decision
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2003 Communications Segment TargetsEBITDA
Change
2003 Target
? 0 to 1
Revenue
5.0 to 5.05B
? 4 to 8
EBITDA
2.075 to 2.15B
Operational efficiency gains offset price cap
regulatory decision and increased non-cash
pension expense Underlying EBITDA growth of 8 to
12 excluding negative price cap regulatory
decision
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2003 Communications Segment Targets Non-ILEC
Change
2003 Target
? 10
approx. 575M
Non-ILEC Revenue
? 45
(60M)
Non-ILEC EBITDA
Focus on profitable non-ILEC growth with EBITDA
improvement of 50M
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2003 Communications Segment Targets Capex
Change
2003 Target
Significant downward trend in Capex intensity
ratio
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2003 Communications Segment Targets High-Speed
Velocity ADSL Net Additions
(000s)
565 to 590
150 to 175
415
200
215
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2003E subscriber additions lower in line with
reduced market growth
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2003 Mobility Segment TargetsRevenue
Change
2003 Target
? 10 to 13
Revenue
2.2 to 2.25B
Revenue growth driven by strong subscriber growth
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2003 Mobility Segment TargetsSubscriber Net
Additions
(000s)
Net Additions
Subscriber Base
3,400 to 3,450
3,000
400 to 450
2,578
425
418
Wireless subscriber base to grow 13 to 15
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2003 Mobility Segment TargetsEBITDA
Change
2003 Target
? 10 to 13
Revenue
2.2 to 2.25B
? 23 to 27
625 to 650M
EBITDA
Strong EBITDA growth driven by revenue growth and
increased scale efficiencies
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2003 Mobility Segment TargetsCapex
Change
2003 Target
Significant downward trend in Capex intensity
ratio
2002E2
2003E
2001A1
1 2001A capex excludes 356M for spectrum
purchases, 55 if included 2 2002E capex includes
4.5M for spectrum purchases
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Operational UpdateHow does TELUS Mobility
measure up?

• TM Cdn Avg US Avg TM
• 2002 2003 2003 2003
• Guidance Targets
• EBITDA margin () 26
  26 29 29
• EBITDA growth rate ()1 43 22 15 25
• Capex intensity ()2 23 22
  22 20
• (EBITDA Capex) / tot. rev. ()3 2.5 4.2
  7.6 8.5
• Mkt penetration/cov. POPs () 11 42.5 53
  12
• No. of carriers in market 3-4 3-4 6-8 3-4
• Penetration gain / carrier () 4
  1.6 1.1 0.5 1.6

Mobilitys 2003 KPI targets significantly
superior to industry benchmarks
Sources TELUS estimates. Cdn. Statistics - CIBC
World Markets (Dec 02) US Statistics - Morgan
Stanley (Dec. 2/02) 1 Projected YoY EBITDA
growth. TELUS EBITDA growth includes favourable
21M tax decision in 2002 2 Projected capex as a
of forecast total revenue 3 Projected EBITDA
less projected Capex divided by projected total
revenues 4 Projected wireless penetration gain
divided by of carriers in market. For TELUS,
projected net adds divided by projected covered
POPs
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Operational UpdateOEP Employee Reductions
6,500

• Expect 5,000 exits to be completed in 2002

1 Excludes the impacts of staff increases
associated with acquisitions during H2-2001
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Operational UpdateCurrent Estimated OEP Total
Savings Costs

• Estimated Phase I to III OEP EBITDA savings
• Estimated Phase II III restructuring
  workforce reduction expense

approx. 150M1
2002
approx. 450M
2003
1 Approximately 65M expected in Q4-02
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Operational UpdateLabour Relations

• Two co-conciliators appointed Nov 14 by Minister
  of Labour in response to TELUS request
• Conciliators have up to 60 days to work with both
  parties toward new agreement (or longer if
  mutually agreed)
• Conclusion of conciliation process
• if agreement reached employee opportunity to
  ratify it
• if agreement not reached 21 day cooling off
  period

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Operational UpdateLabour Relations

• TWU announced Nov 15 - 84.5 in favour of a
  strike mandate
• TWU may not initiate legal work disruption unless
  collectively
• conciliation process and cooling off period is
  complete
• Maintenance of Activities Agreement is in place
• less than 60 days has elapsed since strike
  mandate
• Earliest expected time period for potential
  strike/lock-out
• February/March 2003

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Operational UpdateLabour Relations

• Company committed to reaching a flexible
  agreement with the TWU
• TELUS goal is to attain
• Improved flexibility for customer service needs
• Better competitive effectiveness (e.g. improve
  contracting out)
• Higher performance teamwork
• Business continuity and contingency plans in
  place in the event of a work stoppage

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2003 Consolidated Targets Summary
2003E targets entail significant EPS and
Free Cash Flow growth
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Conclusion

• 2002 outlook for earnings and cash flow revised
  favourably
• Strong EBITDA growth
• Mobility ? 25
• Communications ? 6
• ILEC increased efficiencies
• Non-ILEC improved scale profitability
• Strong EPS growth
• Further significant improvement in capital
  intensity
• Strong Free Cash Flow generation and leverage
  reduction

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Questions?
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Investor Relations

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