2nd quarter 2003 review

1
2nd quarter 2003 review

• Darren Entwistle
• Member of the TELUS Team

2
Q2 overview

• Strong growth in earnings
• 16 EBITDA increase
• 5 point margin increase
• Four fold increase in EPS
• Strong growth in cash flow
• Wireline and wireless contribution significant
• Positive mid-2003 guidance adjustments

3
2003 Q2 review
TELUS Normalized EBITDA
720M
581M
Normalized for 40M Q2 2002 tax credits EBITDA ?
24
4
2003 priorities update

• Delivering operational efficiency
• Enhancing wireless performance
• Improving Central Canada profitability
• Reaching a collective agreement

5
delivering on 2003 priorities Q2 update

• Delivering operational efficiency
• At 93 staff positions 78 cost savings targets
• Enhancing wireless performance
• 69 EBITDA increase
• 11 point margin increase
• Industry leading operating metrics

6
delivering on 2003 priorities Q2 update

• Improving Central Canada profitability
• 7 quarters of EBITDA improvement
• Reduced negative EBITDA 2003 guidance to 30M
• Expect EBITDA positive in 2004

7
delivering on 2003 priorities Q2 update

• Reaching collective agreement
• Conciliator recently set final process schedule
• November 14 ? early February
• Committed to balance interests of all parties

TELUS execution continues to build value
8
2003 outlookleading N.A. telecom performance
Projected 2003 EBITDA Growth Rates
11
5
2
BellSouth
1
1
SBC
ATT
Verizon
TELUS
BCE
Sprint
MTS
Aliant
(2)
(4)
(13)
As at July 25, 2003
(19)
Notes TELUS data based on 2002 actual results
average of 2003 guidance Other 2003
estimates provided by Bloomberg and analyst
estimates
9
2003 outlookleading N.A. telecom performance
Projected 2003 Cash Flow (EBITDA - Capex) Growth
Rates
89
15
16
11
10
6
3
ATT
Verizon
Aliant
Bell South
TELUS
Sprint
MTS
BCE
SBC
(5)
As at July 25, 2003
Notes TELUS data based on 2002 actual results
average of 2003 guidance Other 2003
estimates provided by Bloomberg and analyst
estimates
(18)