TELUS investor booklet

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• TELUS investor booklet
• Merrill Lynch
• Communications Forum
• Dallas, Texas
• March 2005

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forward-looking statements
This booklet and answers to questions contain
forward-looking statements about expected future
events including competition, labour relations
developments 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 2004 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.
all dollars in C unless otherwise specified
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about TELUS

• 2nd largest Canadian telco
• executing national growth strategy focused on
  data, IP wireless from position of financial
  strength
• 2004 Revenues 7.58B
• EBITDA1 3.09B
• FCF 1.30B
• Enterprise value 20B (13B equity)
• Listings TSX T, T.NV NYSE TU
• Daily Trading2 1.5 million shares
• Operating segments wireless TELUS Mobility
• wireline TELUS Communications

1 Earnings before interest, taxes, depreciation
amortization, after restructuring workforce
reduction costs 2 Recent 6 month average
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about TELUS Mobility
leading Canadian national wireless provider
2.81B
Revenue (2004)
1.14B
EBITDA (2004)
coast to coast 1X
CDMA footprint
only one in Canada (Nextel in US)
iDEN Mike network
55 MHz in major markets
Spectrum position
32.0M Cdn. Population
Licensed POPs
30.0M (94)
Network coverage

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about TELUS Communications
ILEC full service in W. Canada and E. Quebec
non-ILEC data IP for businesses in
Central Canada Revenue (2004) 4.77B EBITDA
(2004) 1.95B Network access lines
4.8M Internet subs 971K total - 71
hi-speed Fibre IP backbone national
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consistent strategic imperatives 2000 ? 2005

• provide integrated solutions
• partner, acquire divest as necessary
• invest in internal capabilities
• build national capabilities
• focus on growth markets of data wireless
• going to market as one team

strategic intent to unleash the power of the
Internet to deliver the best solutions to
Canadians at home, in the workplace and on the
move.
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build national capabilities TELUS today
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consolidated revenue profile evolution
12ME Q4-04
12ME Q2-00
TELUS Mobility
TELUS Mobility
Wireless
LD
LD
37
12
23
Wireless
18
Local Voice
Data
Data
Local Voice
28
10
43
19
Other
Other
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4
TELUS Communications
TELUS Communications
7.6B
5.7B
focus on data wireless growth 28 to 56
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consolidated results
Change
2004
2003
? 6.1
7.58B
7.15B
Revenue
? 9.8
3.09M
2.82B
EBITDA1
? 74
566M
324M
Net Income
? 72
1.58
0.92
EPS2
? 54
1,297M
845M
Free Cash Flow3
1 Incl. restructuring workforce reduction costs
of 28M 53M for 2003 2004, respectively 2
Incl. impacts of tax settlements of 0.20
0.21in 2003 and 2004, respectively 3 Free Cash
Flow defined as EBITDA (including restructuring
workforce reduction costs) less capex, net
cash interest, net cash taxes, net cash
restructuring payments, and excess share
compensation expense over share compensation
payments
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TELUS Mobility
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Canadian subscriber growth accelerating
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Canadian wireless penetration growth prospects
2003
2007E
2004
42
55-59
47
13.4M subs
18-20M subs
15.0M subs
Source Industry analysts
up to 5 million net adds expected over next 3
years
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TELUS achieving profitable subscriber growth
Canadian wireless industry 2004
EBITDA growth
subscriber growth
1 EBITDA less Capital expenditures Sum of
reported results for BCE Wireless, Rogers
Wireless pro forma Microcell, TELUS Mobility
Source Company reports
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net additions
512K
431K
2003
2004
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profitable subscriber mix
2004 net add mix
2003 net add mix
84K
110K
321K
429K
prepaid
prepaid
postpaid
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postpaid
25
84
75
431K
512K
16
ARPU
60
2003
57
2004
49
48
48
45
TELUS Mobility
Rogers Wireless1
BCE Wireless

• Source Company reports

1 Pro forma Microcell
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profitable subscriber growth strategy
2004
2003
60
ARPU
57
1.40
1.46
Blended churn
389
COA
430
4,300
3,900
Lifetime revenue
9
11
COA/ Lifetime revenue
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TELUS Mobility value creation in 2004

• Network revenue
• EBITDA
• EBITDA margin (network rev.)
• Capex intensity
• Cash flow1

1 EBITDA less capex
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how does TELUS Mobility measure up?
Cdn Avg 2004
US Avg 2004
TELUS 2004
32
37
40
17
32
40
20
15
13
12
22
28
58
47
13
5 to 7
3
-
0.6
1.4
1.7
Sources Company Reports US Statistics - Morgan
Stanley 1 Capex as a of total revenue 2 EBITDA
less Capex divided by total revenues 3 Wireless
penetration gain divided by of carriers in
market. For TELUS, net adds divided by covered
POPs
TELUS Mobility is best-in-class in fundamentally
stronger 3 player Canadian wireless industry
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2004 cash flow yield - North America
EBITDA less Capex / Total Revenue
28
21
18
12
10
7
6
Rogers
Verizon
PCS
Cingular
Nextel
TELUS
T-Mobile USA
Source Company reports
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data revenue expanding exponentially
wireless Internet (1X cards)
text picture messaging
wireless data business consumer
mobile browser
RIM
mobile computing other applications
downloads
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2005 Mobility targets summary
2005 targets
change
Revenue
? 14 to 16
3.2 to 3.25B
? 18 to 23
EBITDA
1.35 to 1.4B
(1) to 13
350 to 400M
Capex
? (17) to (7)
425 to 475K
Wireless net adds
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TELUS Mobility EBITDA cash flow growth
1,000
(360)
1 Pro forma acquisition of Clearnet 2 EBITDA
(excluding restructuring) for 2001 2002 3
Mid-point of 2005 targets announced December 17,
2004
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TELUS in 2005
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corporate priorities for 2005

• Enhance our leadership position in wireless
• Leverage our investments in high speed Internet
  through Future Friendly home services
• Accelerate our wireline performance in Ontario
  Quebec
• Grow brand value through superior customer
  experience (via leading IP solutions and improved
  customer care)
• Drive continual improvements in productivity
• Reach a new collective agreement

2005 priorities entirely consistent with 2004
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2005 consolidated targets summary
change
2005 targets
Revenue
? 4 to 6
7.9 to 8.0B
? 4 to 7
EBITDA1
3.2 to 3.3B
? 4 to 172
1.65 to 1.85
EPS
(1) to 6
1.3 to 1.4B
Capex
Free Cash Flow
(8) to flat
1.2 to 1.3B
1 Includes 100M in restructuring workforce
reduction costs 2 20 to 35 normalized for 0.21
favourable impacts for the settlement of tax
matters in 2004
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shareholder value enhancing initiatives - update

• Normal Course Issuer Bid for 25.5M TELUS shares
• effective Dec 20, 2004
• 2.2M shares repurchased for 78M in Q4 2004
• Quarterly dividend ? 33 to 20 for Jan. 1, 2005
• New dividend payout ratio guideline of 45 to 55
  of net earnings
• Measures to restrict issue of TELUS shares
• Liquidity ? 26 due to 73.5M share offering by
  Verizon

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why invest in TELUS

• TELUS Mobility
• top performing wireless carrier in N. America
• industry consolidation benefits without
  integration risks
• TELUS Communications
• strong performance relative to other telcos
• improving results driven by stronger data
  non-ILEC
• high exposure to wireless
• strong EPS growth
• free cash flow of 1B, resulting in attractive
  FCF yield
• material debt leverage reduction exceeded
  targets
• shareholder value focus reflected by recent
  initiatives

leading the way into 2005 with positive outlook
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investor relations

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

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Appendix
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ARPU drivers
Mobility segment

• Price changes continue to roll through the base
• per minute billing - Jul-02
• evening weekend clock change - Jul-03
• select calling features - Jul-04
• minutes of use up 21 in 2003, 10 in 2004
• expanding data offering (intercarrier SMS, 1X
  RIM)
• roaming/resale agreements
• Verizons preferred Canadian PCS roaming partner
• iDEN roaming with Nextel in U.S.

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Churn control retention drivers
Mobility segment

• 3 year contracts
• improved coverage
• significant improvement in drop call rate
• expanded national footprint
• better phones
• grandfathered rate plans
• dedicated retention team
• excellent customer care levels

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Capex drivers
Mobility segment

• excellent spectrum position - minimal cell
  splitting
• CDMA/1X roaming/resale agreements in Central
  Eastern Canada
• Network digitization largely complete
• Mike (iDEN) network largely built out
• 1X network implemented, voice capacity improvement

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excellence in investor communications

• ranked 9th globally by Corporate Essentials,
  Annual Report of Annual Reports
• 1st in Canada 2nd in North America
• ranked 1 in world for strategy, objectives
  outlook
• 10 years of disclosure excellence in corporate
  reporting awards by Canadian Institute of
  Chartered Accountants
• 2003 annual report rated best in Canada
• IR website ranked 3rd among global telcos by IR
  Web Report
• member of DJSI, only N. American telco

e.Com Report Watch
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excellence in

• recognized as Canadas Best Environmental
  Corporate Citizen
• only Canadian company to receive BEST award
  (ranked 6th globally) for employee learning and
  development
• Illuminati Award for Best Leadership Development
  Program
• long time Imagine company
• focused on support of education, health sports
  and arts