annual general meeting 2004

Darren Entwistle member of the TELUS team

leading the way …consistent strategy

4  strategy progress report  corporate citizenship  2003 priorities & highlights  2004 priorities agenda

5 1. build national capabilities 2. provide integrated solutions 3. focus on growth markets of data & wireless 4. going to market as one team 5. partner, acquire & divest as necessary 6. invest in internal capabilities …to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move tracking against strategic imperatives 2000  2004

6 1. build national capabilities TELUS’ infrastructure

7 Communications Jan 2000Mar 2004  Ont/Que cities 338  Co-locations 289  Customer POPs 5223  Fibre lit (km) 013,600  Platform StentorTELUS  Network Circuit-basedNext Generation (NGN) national transformation NGN delivers enhanced customer data & IP services and operational cost savings

8 Mobility Jan 2000Mar 2004  PoPs covered (millions)  Mike (iDEN) (millions) -25  Technology / Generation 1G3G national wireless transformation  Key to driving profitable growth  Subscribers have tripled to 3.5 million  Operating earnings have quintupled to $884 million  Operating earnings per employee have increased 89% due to scale efficiencies

9 now offering North American wide roaming new developments in wireless  cross-border roaming partnership with Nextel enabling Mike Direct Connect  walkie-talkie service  launch of two new Blackberry  devices  operating on Mike (iDEN) network and national 1X wireless data network  offers a one-stop wireless solution to stay connected

10 1. build national capabilities TELUS’ infrastructure

11 build national capabilities TELUS’ infrastructure

12  TD Bank Financial Group win Oct  $160 million, 7-year contract for managed data solution – largest network migration in Canada  NGN with IP Virtual Private Network (VPN) security & enhanced services cannot be matched by competitors  please visit our tradeshow following this AGM 2.provide integrated solutions

13 3.focus on growth markets of data & wireless consolidated revenue profile evolution data & wireless revenues from 28% to 53% in 3.5 yrs $5.7B $7.2B Local Voice Wireless Data 30% 34% 19% 4% Other 13% LD 43% 18% 10% 6% Other LD Wireless Local Voice 23% Data 1 12 months ended June months ended March 31

14 executing our strategy for profitable growth TELUS achieves profitable subscriber growth Source: Company reports. Sum of reported net adds & wireless EBITDA for BCE, Rogers Wireless, Microcell, TELUS Mobility $630M 1.4M EBITDA growth subscriber growth TELUS Mobility 45% 30% TELUS Mobility 2003 wireless industry

15 industry wide improvement in ARPU Source: Company reports TELUS MobilityRogers WirelessBCE Wireless $55 $45 $ $57 $47 $48 Microcell $40 $38 continued industry leadership in wireless average revenue per subscriber unit (ARPU)

16 market share grew from 10% to 39% currently Subscriber base Net additions (000s) ~125 ~ E high-speed Internet growth

17 driving towards leadership in high-speed Internet  2004 target of 125,000 new subscribers  on track in Q1 with 44,000  first to market with new services  Spam Control  anti-virus  ad-blocking  Pureradio TM  Puretracks TM

18 camera phones say it instantly. 4.going to market as one team

19 Leger Marketing national poll – December 2003 TELUS advertising ranked top Awarded by Marketing Magazine as Canada’s:  No. 1 “Top-of-Mind” awareness  Top 3 for “Most Liked”

20 we have a passion for growth we have the courage to innovate we believe in spirited teamwork we embrace change and initiate opportunity TELUS values Our values make the future friendly

21 corporate citizenship

22 amateur sports & 2010  Premier founding sponsor for Canada’s Olympic bid  TELUS Centre for Sport & KidSport TM

23 Video to be played

24 corporate citizenship

25 TELUS investment in the community  member of Dow Jones Sustainability Index  three consecutive years – only North American telecommunications company listed  named Canada’s most environmentally friendly company in 2003 by Corporate Knights Corporate Social Responsibility Report now available

2003 corporate priorities & highlights

27  improving Central Canada profitability  strengthening financial position  enhancing wireless performance  improving levels of customer service  delivering operational efficiency  reaching a collective agreement TELUS corporate priorities

28 improving central Canada profitability TELUS wireline operations in Ontario & Quebec have significant scale & are generating profitable growth Revenue (mil.) EBITDA (mil.) 1 Includes TELUS Quebec & TELUS non-ILEC operations except 2000 ~$860 ~$ E $4 Jan. 2000

29 improving central Canada profitability  good progress in 2003, non-ILEC EBITDA  $78 million  focusing on recurring revenue streams  2004 affected by focus on larger national deals  higher quality of business deals going forward  $66 million 6-year contract  WAN, LAN data services & IP solutions  over 600 locations across Canada

30 strengthening our financial position 1 Based on midpoint of EBITDA guidance ($M) 746 1, Communications Mobility 2004E ~1,075 1 ~ E generating cash flow (EBITDA less capex)

31 improving free cash flow $(1.14)B $(140)M $1.13B to 1.23B 2004E $845M reduced net debt by $872M in 2003 & $298M in Q1 2004

32  2003  DBRS, S&P and Fitch maintained investment grade ratings while changing outlook to ‘stable’  Moody’s upgraded outlook to ‘stable’ and then ‘positive’  2004  Mar. 2 nd Moody’s upgraded to ‘investment grade’ with ‘stable’ outlook debt rating update rating agencies recognize financial strength

global telecom performance (18) (2) (3) (5) (6) (14) (2) (0.3) 3 TeliaFTDTKPNTELUSMTSTelstraNipponBCE As at March 1, 2004 Notes: 1 Excluding restructuring TELUS data based on 2002 & 2003 results Other results provided by Bloomberg, company, and analyst reports EBITDA 1 % growth rates BTPSSWSprintAliantBLSVZSBCAT&T

global telecom performance (24) (4) (16) (0.1) TELUS FTTeliaDTMTSFONBCEKPNAliantNipponBLSTelstraPCCW Cash Flow (EBITDA 1 - Capex) % growth rates As at March 1, 2004 Notes: 1 Excluding restructuring TELUS data based on 2002 & 2003 results Other results provided by Bloomberg, company, and analyst reports AT&TVZBT Sprint SBC

2004 corporate priorities

36 ….leading the way into priorities  reaching a collective agreement  growing brand value through superior customer service  revitalizing wireline growth  embracing continual cost efficiency  driving towards leadership in high-speed Internet  enhancing our leadership in wireless

37 TELUS Mobility lifetime customer revenue $3,900 BCEAWE 2.7% 2.6% 1.6% 2.0% 1.8% 1.5% 1.4% TELUSVerizonSprint PCS RogersNextel 3.2% CingularMicrocell 3.2% 2.7% T-Mobile 2003 monthly churn rates wireless customer satisfaction = low disconnects

38 customer service improvements Service IndicatorsExceeded CRTC standard 1 Service Provisioning Repair Service Local Service Directory Services Complaints 1 company report on 19 CRTC quality of service indicators and standards for March 2004 TELUS setting new historical records in customer service

39 revitalizing wireline growth  goal to overcome industry wide challenge of declining wireline revenue growth  step change improvements planned  marketing and sales effectiveness  excel in delivery  operationalize lead in IP solutions  launch new products

40 embracing operational cost efficiency E $450M $550M $454M $477M at Q1 7,300 NA Actual7,500 NA Cumulative Goals - Savings Actual Net staff reductions target exceeding program targets with $100M expected incremental savings for 2004 efficiency program 2001 to …

41 see wireless home networking demonstration driving towards leadership in high-speed Internet  2004 target of 125,000 new subscribers on track  platform for future services  Wireless home networking  IP telephony  TELUS TV

42 delivering on strategy of profitable wireless growth enhancing our leadership in wireless 19%12 – 14%Revenue growth $198M$650 - $700MCash Flow (EBITDA less Capex) 39%23 – 29%EBITDA growth Q1 on track? 2004E

43 consistent performance over time leading the way … with more of the same  “what gets measured gets done”  19 of 22 consolidated targets achieved in last 4 years (2000 to 2003)  public targets set for 2004  Net income estimated to increase 27% to ~$420M

(1) (6) (8) (20) (0.4) (1) TELUS FTDTMTSSprintAliantTelstraBCEBTNipponTelia 2004E global telecom performance AT&T BLS SBC PCCW VZ KPN As at April 30, 2004 Notes: TELUS data based on 2003 results & mid-point of 2004 targets Other estimates provided by Bloomberg, company and analyst reports projected EBITDA % growth rates

(3) (6) (9) (10) (28) 0.2 (1) TELUSAliantTeliaFTSprintBCETelstraDTNippon 2004E global telecom performance projected Cash Flow (EBITDA - Capex) % growth rates As at April 30, 2004 Notes: TELUS data based on 2003 results & mid-point of 2004 targets Other estimates provided by Bloomberg, company and analyst reports AT&T BLS SBC PCCW VZ KPN MTS BT

leading the way …consistent strategy positioned to build value

annual general meeting 2004