3 rd quarter 2003 TELUS Mobility results George Cope, CEO TELUS Mobility
13 101K 94K Q3-03 Q3-02 TELUS continues focus on profitable subscriber growth with net adds up 7.5% YoY net additions prepaid postpaid prepaid postpaid
14 ARPU increasing Q3-03 $58 Q3-02 $60 Average Revenue Per Unit ($/month) third consecutive quarter of YoY ARPU increases
15 TELUS MobilityRogers AT&TBCE Wireless $58 $47 ARPU continued industry leadership Source: Company reports Q3-02 Q3-03 $60 $50 positive industry-wide trend
16 continued focus on retention evident in results 1.7% Q % Q % churn
17 BCECingular 2.7% 1.4% 2.0% 1.9% 1.4% TELUSVerizonAT&TRogersNextel 3.3% 1 Sprint PCS Microcell 3.0% 1 2.8% T-Mobile TELUS’ Q3 churn rate remains best-in-class churn 1 Microcell, T-Mobile USA Q2-03 churn rates
18 profitable subscriber growth subscriber economics improving 9%12%COA/ Lifetime revenue 1.4%1.7%Churn $60ARPU$58 $406COA (excl. retention) $391 Q3-03Q3-02 $4,300 $3,400Lifetime revenue
19 EBITDA growth & margin expansion Wireless EBITDA ($) Q3-02 Q3-03 $165M 33% 43% $246M EBITDA margin (network revenue) industry leading EBITDA growth of 49% & EBITDA margin of 43%
20 EBITDA less capex $83M cash flow improvement $67.8M Q3-02 Q3-03 $150.4M
21 operating cash flow yield 15%Capex intensity 2 EBITDA margin 1 43% Cash flow yield 3 24% Q3-03 attractive wireless cash flow yields improving 1 EBITDA margin based on network revenue. EBITDA margin based on total revenue was 39% for Q Capex as % of total revenue 3 EBITDA less capex, as a % of total revenue
22 TELUS Mobility’s price-matching strategy
23 nation-wide Direct Connect expanded handset line-up coverage expansion in BC & AB new services Mike goes nation-wide
24 new services PCS - camera phones & picture messaging Product differentiation exclusive, cool devices no subsidy, unless on contract first CDMA carrier in Canada send & receive images with sound & text between camera phones 25 cents per picture message sent strong branding campaign
25 conclusion Q3 TELUS Mobility value creation Net additions 101k 7.5% Churn1.4% 30 pts ARPU $60 $2 Network rev.$577M 17% EBITDA$246M 49% EBITDA margin 43% 9 pts Capex intensity15% 3 pts Cash flow $150M $83M all key metrics moving in right direction for continued creation of significant shareholder value