Robert McFarlane

1
2004 Telecom Cable Debt Conference

• Robert McFarlane
• EVP Chief Financial Officer
• September 16, 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
about TELUS

• Executing national growth strategy focused on
  data, IP wireless from position of financial
  strength
• 2nd largest Canadian telco
• 2004E1 Revenues 7.45 to 7.55B
• EBITDA2 2.975 to 3.075B
• FCF 1.15 to 1.25B
• Enterprise value 16.5B (7.2B debt - book
  value)
• Listings TSX T, T.A NYSE TU
• Operating segments wireline TELUS
  Communications
• wireless TELUS Mobility

1 Updated guidance on August 6, 2004

2
Earnings before interest, taxes, depreciation
amortization, after restructuring and workforce
reduction costs.
4
TELUS Communications segment
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
EBITDA (2004E)1 1.925 to 1.975B Network Access
Lines 4.8M Total Internet Subscribers 925K (624K
high-speed) Fibre IP backbone national
1 Updated guidance on August 6, 2004
5
TELUS Mobility segment
1 Updated guidance on August 6, 2004
6
2004 YTD review - consolidated
YTD Q2-04
change
YTD Q2-03
? 4.4
3.67B
3.51B
Revenue
? 9.1
1.51B
1.38B
EBITDA1
? 68
274M
163M
Net Income
? 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 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.
significant earnings free cash flow generation
7
Consolidated revenue profile evolution
12ME Q2-04
12ME Q2-00
TELUS Mobility
TELUS Mobility
Wireless
LD
LD
36
13
23
Wireless
18
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
8
Consolidated EBITDA profile evolution
12ME Q2-04
12ME Q2-00
TELUS Mobility
TELUS Mobility
17
33
67
83
TELUS Communications
TELUS Communications
2.2B
2.9B
33 of TELUS EBITDA now coming from Mobility
9
Consolidated cash flow1 profile evolution
EBITDA less Capex
12ME Q2-04
12ME Q2-00
TELUS Mobility
TELUS Mobility
18
40
82
60
TELUS Communications
TELUS Communications
1.3B
1.5B
1 EBITDA less Capex
significant cash flow generation from Mobility
10
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 provided on August 6, 2004
2004 guidance implies significant improvement in
profitability, cash flow leverage
11
strategic imperatives 2000-2004

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

consistent strategy
12
2004 corporate priorities
Status ongoing ? ongoing ongoing ? ongoing

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

13
labour relations update
reaching a collective agreement

• Feb/04 - arbitration reconsideration application
  to CIRB remains outstanding
• May/04 - CIRB TELE-MOBILE decision (common
  employer, automatic inclusion of TM East
  employees ) appeal to Federal Court scheduled
  early October
• Labour relations developments within telecom
  sector reflect industry realities

on-going process - awaiting CIRB reconsideration
ruling
14
customer service update
growing brand value through superior customer
service

• Wireline
• Service levels substantially improved since Q3-03
  challenges
• Meeting or exceeding standards for up to 10
  consecutive months on key CRTC service indicators
• Area of continued focus
• Wireless
• Best-in-class service levels as evidenced by low
  churn

Wireline operating at superior levels of customer
service
15
consumer business initiatives
revitalizing wireline growth

• Digital home
• continuing high-speed Internet growth
• home networking
• new applications (e.g. home security, IPTV, etc.)
• Bundling price increases
• bundling strategy protects legacy revenues
• LD system access fee increased
• Geographic expansion
• high quality, recurring, IP-based revenues in
  non-ILEC
• leverage technological leadership and service
  differentiation that TELUS Next Generation
  Network (NGN) provides

16
high speed Internet subscriber growth
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
17
Canadian wireless penetration growth prospects
enhancing our leadership position in wireless
2003
2007E
2004
42
55-59
46
13.4M subs
18-19M subs
15M subs
Source Industry analysts
4 million or more net adds expected over next 3
yrs
18
TELUS Mobility ranked 1 operator 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
19
enhancing our leadership position in wireless
continued leadership in ARPU
YTD Q2-03
58
55
YTD Q2-04
49
48
46
45
39
38
Microcell
TELUS Mobility
BCE Wireless
Rogers Wireless

• Source Company reports

20
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
21
enhancing our leadership position in wireless
Profitable subscriber growth strategy
12ME Q2-04 subscriber growth
12ME Q2-04 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
22
status of Microcell bid
enhancing our leadership position in wireless

• 1.1B offer to purchase all outstanding publicly
  traded securities of Microcell May 17, 2004
• Entered confidentiality agreement commenced
  diligence in June
• Microcell released poor Q2 results with negative
  value implications
• Industry Canada lifted wireless spectrum cap
• Offers extended three times latest to expire
  Sept 20
• Competition Bureau review of TELUS offer in
  advanced stages
• TELUS offers outstanding for 4 months, yet still
  no competing offer

TELUS bid fair reasonable
23
operational efficiency program (OEP)
delivering operational efficiency

• Achieved 50M in incremental annual OEP savings
  YTD 2004
• Cumulative annual savings of 504M to June 30,
  2004
• On track for cumulative annual savings of 550M
  in 2004 onward
• Combining Business Client Solutions into one
  business unit to improve efficiency
  effectiveness under leadership of Joe Natale

View successful 2001-2004 OEP as platform for
further necessary improvements
24
strengthening financial position credit profile
25
debt overview
credit profile

• Average term to maturity 5.7 years1
• No long-term debt maturities until June, 2006
• Consolidated fixed to floating ratio a
  conservative 93
• Foreign currency debt is fully hedged
• TCI A/R securitization program at minimum 150M
  level
• Continued simplification of debt structure
• TELUS Communications (Quebec) Inc. amalgamated
  into TELUS Communications Inc effective July,
  2004
• 85 of total debt at TELUS Corp.

1 As at June 30, 2004
26
credit profile
current debt structure
TELUS Corporation Maturity Bank1 -
364 Day 0.8B revolver May 2005
- 4 Year 0.8B revolver May
2008 C 7.5 Notes 1.6B June 2006 US 7.5
Notes C1.8B June 2007 US 8.0 Notes C3.0B June
2011
100

• TELUS Communications Inc.
• Mortgage Bonds2 0.030B
• MTNs2 0.070B
• Debentures 0.799B
• Net Sr. Notes to TC 2.3B

1 364-Day (extendible) with a one-year term out.
At June 30, 2004, no borrowings exist under the
Bank credit facilities. TCI may also borrow on
the bank credit facility. Does not include
additional 500M Backstop facility available
until the earlier of 364 days after closing of
Microcell transaction or October 31, 2005. 2 70M
of MTNs and 30M of mortgage bonds are former
TELUS Communications (Quebec) Inc. notes that
were transferred to TELUS Communications Inc. in
July, 2004.
27
debt structure - maturities
credit profile

1
1 TELUS Communications Inc. repaid 210M of
maturing debt in August, 2004.
Strong free cash flow generation means limited
refinancing required in 2006/2007
28
bank credit facility (1 of 2)
credit profile

• Early 2004, TELUS approached banks to renew
  maturing facilities
• Received commitments well in excess of 1.6B of
  facilities accepted
• 800M 364-day facility (extendible) with a
  one-year term out
• 800M 4-year facility
• Superior pricing, more flexible reporting other
  covenants relative to previous facilities

improved credit facility terms lengthened
maturity
29
bank credit facility (2 of 2)
credit profile

• No drawn amounts under either facility, at June
  30, 2004
• 4-year facility expires in May 2008, one year
  after the 2007 US Notes
• Additional underwritten commitment for 500M
  unsecured credit facility for Microcell bid
• Available until the earlier of Oct 31, 2005 or
  364 days after the offer to purchase Microcell is
  completed

TELUS liquidity position expected to remain
strong
30
credit rating update changes in 2004
credit profile

• March 2, 2004 Moodys upgrade to Baa3 from Ba1
• May 14, 2004 Following TELUS bid for
  Microcell
• Moodys reaffirmed ratings, stable outlook
• Fitch reaffirmed ratings, stable outlook
• DBRS under review, developing
• SP creditwatch, negative (due to transaction
  uncertainty)

bid for Microcell not expected to have long-term
ratings impact
31
current credit ratings
credit profile
TELUS Corporation (TC) DBRS
BBB Under Review (Developing) SP
BBB CreditWatch (Negative)
Fitch BBB Stable Outlook Moodys
Baa3 Stable Outlook
100
TELUS Communications Inc. (TCI)
DBRS BBB(high) Under Review (Developing)
SP BBB CreditWatch
(Negative) Fitch BBB Stable
Outlook
DBRS rates TCI one notch better than TC
32
demonstrated credit improvement
credit profile
June 2003 Actual
June 2004 Actual
June 2002 Actual
9,120
7,223
9,241
Net Debt (M)
51.9
55.7
59.6
Net Debt Capital
2.4x
3.0x
3.6x
Net Debt EBITDA
1,185
379
(692)
FCF1 (M)
85
86
85
Parent debt Total Debt2
BBB/Ba1
BBB/Baa3
BBB/Ba1
Credit Rating
1 12-month trailing Free Cash Flow 2 Percentage
of total debt at TELUS Corp. (Parent level) -
inclusive of bank facility hedge liability
significantly enhanced credit metrics
33
long-term financial policy targets
Former Guidance1
Current Guidance2
Q2-04
Q2-03
45 to 50 (long term)
51.9
55.7
Net Debt Capital
50 (long term)

lt2.3X (end of 2004) lt2.2X
(long-term)
2.4X
3.0X
Net Debt EBITDA
lt2.5X (end of 2004) lt2.2X
(long-term)
1 As provided on December 18, 2003 2 As provided
on August 6, 2004
34
strong free cash flow generation
credit profile
2004E1
(M)
2,975 to 3,075
EBITDA (incl. rest. workforce reduction costs)
(1,300)
Capex
(615)
Net cash interest
155
Net cash tax recovery
(95)
Cash restructuring pmts (in excess of 2004
expense)
30
Stock compensation (non-cash portion)
1,150 to 1,250
Free Cash Flow
Cash dividends
(180)
(70)
Working capital/other
900 to 1,000
Cash available for net debt A/R Sec. reduction
1 Updated guidance on August 6, 2004
35
improving free cash flow
credit profile
1.15B to 1.25B
845M
2002
2001
2004E
2003
(140)M
(1.14)B
1.1B Microcell acquisition funding approximates
only one year of consolidated TELUS free cash
flow
36
impact of Microcell acquisition
credit profile
YE 2004E
YE 2004E pro forma1
3.075 to 3.185B
2.975 to 3.075B
EBITDA2
Net Debt EBITDA
lt2.6x
lt2.3x
1 Based on current public Microcell guidance,
assuming Microcell acquisition completed at
current offer price 2 Before restructuring
workforce reduction costs.
TELUS long-term financial policy targets still
achievable by YE 2005 even with prospective
Microcell acquisition
37
10 year comparable new issue spreads
credit profile
Q4 Earnings Release strong wireless results
(-15 to 20 bps)
Receive investment grade rating by Moodys
(Baa3) (-15 bps)
Bid for Microcell (20 bps)
TELUS 130bps
Q2 Results
MTS announcement of Allstream bid (30 bps)
MTS 109bps
BCE 85bps
TELUS spreads have narrowed but remain much
higher versus Cdn peers
38
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 Notes TELUS data based on
2003 results mid-point of 2004 guidance
Other estimates provided by Bloomberg, company
and analyst reports
(30)
39
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 Notes TELUS data based on
2003 results mid-point of 2004 guidance
Other estimates provided by Bloomberg,
company and analyst reports
(17)
(25)
40
why invest in TELUS?

• TELUS Mobility
• high proportion of consolidated revenue and cash
  flow
• executing materially ahead of plan
• TELUS Communications
• good results relative to peers
• revenue composite de-emphasizes LD
  
• Strong 2004 cash flow earnings outlook
• Generating significant cash flow of gt1B
• Continued material debt leverage reduction
• TELUS demonstrating ability to meet or exceed all
  leverage targets

strong investment-grade credit profile
41
questions?
42
investor relations

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

43
appendix
44
intercompany financing1 (as at June 30, 2004)
appendix
Senior Notes 3.1B Subordinated Equity Settled
Note 3.6B
Senior Note 0.8B Subordinate Note 3.2B
1 Excludes net advances owed from TC to TCI of
1.6B at June 30, 2004.
TELUS Corporation has a net 2.3B senior claim at
TCI thereby mitigating structural subordination
concerns
45
TELUS Communications Inc. key metrics
appendix
June 30/03 June 30/04
(12 months ended) June 30/03 June 30/04
Net Debt Total Capitalization 31.6 30.3
Net Debt EBITDA1 2.2x 1.5x
Net Debt (M) 4,128 4,139
1 after restructuring workforce reduction
costs
46
Comparative credit ratios
appendix
1 Defined as EBITDA less capex, cash taxes, and
interest for trailing 12 months. 2 As per
TDNewcrest analyst estimates (August 2004). 3 As
per TELUS public guidance mid-points.