TELUS Investor Conference Call

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TELUS Investor Conference Call Webcast

• 2002 Targets
• December 18, 2001

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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 2002 Targets
news release dated December 18, 2001, TELUS
Annual Information Form for 2000 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

Slide 3
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2001 Guidance - Substantially Unchanged
1 Previously adjusted for divestitures of TELUS
Advertising Services and Telecom Leasing Canada
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2002 TargetsConsolidated Revenue

• Current 2001 Guidance 2002 Target
• Revenue approx. 7.2B 7.5 -
  7.6B1

1 Includes expected negative impact of approx.
390M from regulatory decisions
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Targeted 2002 Revenue Growth
Excluding impact of contribution decision
10-11
As reported
4-6

• Estimated 390M revenue impact
• Currently appealing contribution decision

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2002 TargetsConsolidated EBITDA

• Current 2001 Guidance 2002 Target
• Revenue approx. 7.2B 7.5 -
  7.6B1
• EBITDA approx. 2.5B
  2.475 2.525B2

1 Includes expected negative impact of approx.
390M from regulatory decisions 2 Includes
expected negative impact of approx. 230M from
regulatory decisions
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Consolidated EBITDA Growth
Excluding impact of contribution decision
8-10
As reported
0
Estimated 230M negative EBITDA impact from
contribution decision
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2002 TargetsConsolidated Capex

• Current 2001 Guidance 2002 Target
• Revenue approx. 7.2B
  7.5 - 7.6B1
• EBITDA approx. 2.5B
  2.475 2.525B2
• Capex approx. 2.6B3
  2.1 - 2.2B

1 Includes expected negative impact of approx.
390M from regulatory decisions 2 Includes
expected negative impact of approx. 230M from
regulatory decisions 3 Includes 356M for
spectrum licenses
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2002 TargetsConsolidated EPS

• Current 2001 Guidance 2002 Target
• Revenue approx. 7.2B 7.5 -
  7.6B1
• EBITDA approx. 2.5B 2.475
  2.525B2
• Capex approx. 2.6B3
  2.1 - 2.2B
• EPS n/a
  15 - 20 cents

1 Includes expected negative impact of approx.
390M from regulatory decisions 2 Includes
expected negative impact of approx. 230M from
regulatory decisions 3 Includes 356M for
spectrum licenses
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2002 TargetsConsolidated EPS

• Focusing on GAAP EPS in 2002 not Core EPS
• due to accounting rule changes - no longer
  amortizing goodwill spectrum
• 4 cent EPS impact of intangible asset
  amortization not significant
• Expect 15-20 EPS
• higher depreciation costs
• increased financing costs (average interest rate
  approx. 8.3)
• expect 65 effective tax rate
• includes Large Corporations Tax of 35-40M

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2002 TargetsTELUS Communications - Revenue

• Current 2001 Guidance 2002 Target
• Revenue approx. 5.3B
  5.4 - 5.45B1

Organic ILEC Data growth 20 or more plus
accelerated growth from Non-ILEC expansion
1 Includes expected negative impact of approx.
390M from regulatory decisions
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Targeted 2002 Revenue GrowthTELUS Communications
Excluding impact of contribution decision
9 - 10
As reported
2 - 3
Estimated 390M negative revenue impact
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2002 TargetsTELUS Communications - EBITDA

• Current 2001 Guidance 2002 Target
• Revenue approx. 5.3B
  5.4 - 5.45B1
• EBITDA approx. 2.16B 2.025 -
  2.055B2

1 Includes expected negative impact of approx.
390M from regulatory decisions 2 Includes
expected negative impact of approx. 270M from
regulatory decisions
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Targeted 2002 EBITDA GrowthTELUS Communications
Excluding impact of contribution decision
6 to 8
As reported
-5 to -61
Estimated 270M negative EBITDA impact from
contribution decision
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Non-ILEC ResultsTELUS Communications

• Non-ILEC definition revisited
• Includes all TELUS Quebec (pro forma) and Ontario
  non-ILEC national IP network businesses
• Annualized run rate approx. 400M

M
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2002 TargetsTELUS Communications - Capex

• Current 2001 Guidance 2002 Target
• Revenue approx. 5.3B
  5.4 - 5.45B1
• EBITDA approx. 2.16B 2.025 -
  2.055B2
• Capex lt 1.6B
  1.55 - 1.65B

1 Includes expected negative impact of approx.
390M from regulatory decisions 2 Includes
expected negative impact of approx. 270M from
regulatory decisions
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2002 TargetsTELUS Communications - ADSL

• Current 2001 Guidance 2002 Target
• Revenue approx. 5.3B
  5.4 - 5.45B1
• EBITDA approx. 2.16B 2.025
  - 2.055B2
• Capex lt 1.6 B
  1.55 - 1.65B
• ADSL Net Adds. 120 - 140K
  ? 200K

1 Includes expected negative impact of approx.
390M from regulatory decisions 2 Includes
expected negative impact of approx. 270M from
regulatory decisions
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2002 TargetsTELUS Mobility - Revenue

• Current 2001 Guidance 2002 Target
• Revenue approx. 1.9B
  2.1 - 2.15B1

11-13
Network revenue to grow at approx. 13
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2002 TargetsTELUS Mobility - EBITDA

• Current 2001 Guidance 2002 Target
• Revenue approx. 1.9B
  2.1 - 2.15B
• EBITDA approx. 340M
  450 - 470M1

1 Includes expected positive impact of approx.
40M from regulatory decisions
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Targeted 2002 EBITDA GrowthTELUS Mobility
As reported 32 - 38
Excluding impact of contribution decision 21 -
261
1 Includes expected positive impact of approx.
40M from regulatory decisions
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2002 TargetsTELUS Mobility - Capex

• Current 2001 Guidance 2002 Target
• Revenue approx. 1.9B
  2.1 - 2.15B
• EBITDA approx. 340M 450 - 470M1
• Capex - excl. spectrum approx. 650M
  approx. 560M
• Capex - incl. spectrum approx. 1B
  approx. 560M

Wireless Capex to decline 440M or 44
1 Includes expected positive impact of approx.
40M from regulatory decisions
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2002 TargetsTELUS Mobility - Net Additions

• Current 2001 Guidance 2002 Target
• Revenue approx. 1.9B
  2.1 - 2.15B
• EBITDA approx. 340M 450 - 470M1
• Capex - excl. spectrum approx. 650M
  approx. 560M
• Capex - incl. spectrum approx. 1B
  approx. 560M
• Net Additions 400 - 440K
  425 - 450K

1 Includes expected positive impact of approx.
40M from regulatory decisions
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2002 Revenue Targets Consolidated
2002 Target
2001 Guidance
Communications
Communications
72
74
Mobility
Mobility
28
26
.
7.5 - 7.6B
approx. 7.2B
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2002 EBITDA Targets Consolidated

2002 Target
2001 Guidance
Communications
Communications
82
86
Mobility
Mobility
18
14
.
approx. 2.5B
2.475 2.525B
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2002 Capex Targets Consolidated

2001 Guidance (incl. Spectrum)
2002 Target
Communications
Communications
74
62
Mobility
Mobility
38
26
.
2.1 - 2.2B
approx. 2.6B
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Consolidated Free Cash Flow

Undrawn credit facilities at end of 3Q-01 approx.
2.5B
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Consolidated 3-Year CAGR Expectation

• From 2001 to 2004
• As reported w/o Portable Subsidy1
• Revenue 10 gt10
• EBITDA 7 gt10
• Capex declining
• Consolidated free cash flow positive by 2004

1 Impact of contribution decision backed out in
all years
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2002 Key Assumptions Sensitivities

• Regulatory
• Contribution assume 1.4 rate and status quo
  pending review variance decision
• Review of price cap regime and mandated resale
  discounts - assume neutral impact
• Performance of Canadian economy
• Competitive rivalry

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Consolidated 2002 Targets

• 1 includes expected negative impact of approx.
  390M from regulatory decisions
• 2 includes expected negative impact of approx.
  230M from regulatory decisions
• 3 includes 356M for spectrum licenses

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Conclusion

• Operating company attributes
• Canadian market focus - national growth
• Investing ILEC cash flow in high growth areas
• Strong underlying revenue growth expected
• Wireless, data non-ILEC operations
• Strong underlying EBITDA growth
• Combination of Mobility Communications
• Underlying double-digit 3-year CAGR growth
• Revenue EBITDA
• Current disclosure allows for Sum-of-Parts
  valuation
• ILEC, Wireless, Non-ILEC, Tax Shield

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Questions Answers
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For additional information
TELUS Investor Relations www.telus.com
1-800-667-4871