Welcome to the Investor Conference Call

1
Welcome to the Investor Conference Call

• October 26, 2000
• 3rd Quarter Results
• 100 Day Plan Review

2
Safe Harbour Notice for Forward Looking
Disclosure

• This presentation of slides and accompanying
  commentarycontains statements about expected
  future events and financial results of TELUS
  Corporation that are forward-looking and subject
  to risks and uncertainties. In addition to the
  factors discussed herein, among the other factors
  that could cause actual results to differ
  materially are the following general business
  conditions in Canada and the Companys service
  territories in Canada competition on local and
  long distance services, wireless services
  (cellular), data and Internet services and within
  the Canadian telecommunications industry
  generally adverse regulatory action
  technological change taxation and other risk
  factors. These risk factors are listed in
  Company reports including our 1999 Annual Report
  and Annual Information Forms and other documents
  filed with Canadian and US Securities and
  Exchange Commission. TELUS disclaims any
  intention or obligation to update or revise any
  forward looking statements as a result of new
  information or future events.

3
Barry BaptieExecutive Vice President CFO

• Q3 Financial Highlights
• Revenue Growth
• ? 11 over 99
• EBITDA Growth
• ? 10 over 99
• QuébecTel Impact
• ? 7 on Revenue
• ? 5 on EBITDA

4
Q3 Financial Highlights

• Accounting Issues
• Goodwill for QuébecTel
• 440 million amortized over 20 years
• 22 million/year
• Goodwill for Clearnet
• preliminary est. 4.7 billion over average 25
  years
• 188e million/year

5
Q3 Financial Highlights
EPS
69

• Normalizing Items
• 70 to 69 EPS Impact
• Real estate gain
• 2.4M before tax (1)

60
Street Consensus
Normalized
before goodwill charges
6
Business Highlights

• Residential Service
• Bundles
• ?75,000 in Q3
• 694,000 total

• TELUS Communications
• Q3 EBITDA ? 9
• EBITDA Margin 47
• Maintained Market Share
• Local 98
• Long Distance 71

Leveraging full-service advantage
7
Business Highlights

• TELUS Advanced
• Communications
• Q3 External revenue ?16
• Internet revenue ? 58
• High Speed ADSL
• Year-End Target 80K
• Additional capital commitment
• myTO.com launched

8
Business Highlights
EBITDA (millions)

• TELUS Mobility
• West
• Q3 net adds 47,000
• Avg. revenue 58/month leads industry
• Digital leadership plan
• Q3 net adds 76,000
• Canada
• Q3 net adds 67,000
• without Clearnet

98
85
Q3 99
Q3 00
excluding Canadian Mobility Products
9
National Review

• 3rd Quarter Revenue of 107M (95M from
  QuébecTel, 12M from Other National)
• Subscribers
• ? 20,000 Cellular Customers
• ? 6,000 Internet Customers
• ? Revenues in 4th quarter from National
  contracts

10
2000 Outlook

• Clearnet Impacts
• 2.2 billion short-term bank debt
• 51 million Non-Voting shares
• 4.3 billion purchase price fully diluted
• 4.7e billion goodwill intangible assets
• 2.4 billion assumed net debt

11
2000 Outlook

• Financial Targets
• Previous
  Current Current Outlook
• 
  (without Clearnet) (with Clearnet)
• Revenue Growth ?6-7 ?8-9
• EBITDA Growth ?5-7 ?4-6
• EPS (before Goodwill) 2.58-2.68
  2.05-2.15
• CapEx 1.4B 1.5B

12
Darren EntwistlePresident CEO

• Review of Our 100 Day Plan
• Translating planning to rigorous execution
• Clearnet Purchase Update

13
The 100-Day Plan
14
Strategic Context Imperatives
Strategic Context
Core Competencies
Customer Requirements
Competitive Landscape
Industry Economics
Regulatory Environment
4. Focus Relentlessly on Growth Markets 5. Attack
the Market as one team 6. Invest in Internal
Capabilities
1. Offer integrated solutions 2. Build National
Capabilities Across Data/IP, Voice and
Mobility 3. Partner, Acquire and Divest as
Necessary
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Our Strategic Intent
Unleashing the power of the Internet to deliver
the best solutions for Canadians at home, in the
workplace or on the move

10 Revenue
1 2000
2003
13-16 EBITDA
0 2000
2003
16
Wireless Data Will Lead Sector
CAGR99-05
37bn
40B
3
Local
30B
25bn
(1)
Long Distance
20B
7
Basic Data
30
Enhanced Data
16
10B
Consumer ISP
Wireless
16
1999
7.0
2005
17
Convergence Exploits Fragmented Competition
CLEC
ILEC

• ATT
• Sprint Canada
• Group Telecom
• Axxent
• Norigen

• TELUS
• Bell
• SaskTel
• Aliant
• Manitoba Tel

Wireless

• TELUS Mobility/ ClearNET
• Rogers ATT Wireless
• Microcell
• Bell Mobility

18
Convergence Exploits Fragmented Competition
ILEC
CLEC

• TELUS

Wireless

• TELUS Mobility/ ClearNET

19
Strategy Checklist
Market focused with national remit Focus on
business customers Future growth based on Data,
IP and Mobility services Investing and expanding
aggressively in Central Canada
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Performance Culture

• Our competitive advantage in the New Economy
• Our values govern our behaviour
• We embrace change and initiate opportunity
• We have a passion for growth
• We believe in spirited teamwork
• We have the courage to innovate
• Energizing the organization
• Getting the hygiene factors right
• Recognition and reward
• Personal Development Plans
• Intolerance of people who reject Values

21
Structure

• Operational January 1, 2001
• Market facing, customer focused
• Fits our strategy
• Flat
• Robust processes and interdependencies
• Nationally organized
• Centres of excellence
• Clear lines of accountability

22
Market Facing Structure
Consumer Solutions
Corporate Solutions
Business Solutions
TELUS Quebec
Global Trading Partner Solutions
TELUS Mobile Solutions
TELUS Ventures
Network Operations Architecture
Business Transformation
Chief Financial Officer
Communications
Corporate Development
Human Resources
23
People Approach

• Populate with the best talent possible
• Recruit, train, retain
• 5050 combo expertise and behavioral attributes
• Meritocracy/Performance management
• Management competencies
• Leverage skills from new acquisitions

24
Executive Selection Process

• Conducted formal assessments including testing,
  business simulations, interviews
• Mapped new Executive Management Team Job Profiles
  to potential executive candidates
• Conducted Assessment Interviews
• Final selection interviews over next 2 weeks

25
Priorities
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Evolution Towards e-Trading
Build Buy
Local Area Services

LAN Integration
Build,
IP Based e-Trading
Build
Buy Partner
Data Networks
ISP Services
Internet Based Services
Wide Area Networks
27
IP Value Chain
Increasing Value
Content
Sys. Integration
e-Business Consultancy
IP Call Centre Applications
e-Commerce
Hosting
28
Clearnet Purchase

• Integration Begins Immediately
• George Cope, President CEO
• Management team in place early November
• Deal Executed Flawlessly
• Take-up at earliest date
• Regulatory conditions met
• NYSE Listing Oct 17 th
• Investment grade ratings obtained
• Bank syndication 6.25 billion

29
New TELUS Mobility

• Creates industry leader overnight
• Powerful vehicle to execute convergence strategy
  (data, IP, and mobility)
• Levers strategic partnerships
• Generates revenue and EBITDA growth going forward

30
Questions Answers
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• Thank you for joining us for our Q3 Investor
  Conference Call
• Thursday, October 26, 2000
• You may contact TELUS for further information
• ir_at_telus.com or 1-800-667-4871
• Your comments on the Conference Call would be
  appreciated. If you participated through the
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