1. Robert McFarlane EVP & Chief Financial Officer August 6, 2004
2004 – 2nd quarter review
Robert McFarlane
EVP & Chief Financial Officer
August 6, 2004

2. Q2 highlights TELUS Mobility TELUS Communications TELUS Consolidated
outstanding results across the board
excellent subscriber growth & retention
record margins and cash flow growth
TELUS Communications
continued revenue softness
excellent customer service levels
TELUS Consolidated
strong profitability and cash flow growth
EPS $0.48 (normalized $0.36 up 71%)

3. consolidated results significant earnings & free cash flow generation
Q2-03
Q2-04
Change
Revenue
$1.77B
$1.87B
 5.2%
EBITDA1
$717M
$785M
 9.5%
Net Income
$73M
$172M
 136%
EPS2
$0.21
$0.48
 129%
Free Cash Flow3
$66M
$230M
 250%
1 Incl. restructuring & workforce reduction costs of $0.7M & $3.3M for Q2-04 & Q2-03, respectively.
2 Incl. impacts of tax settlements & related interest of approx. $0.13 & nil in Q2-04 and Q2-03, 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.
significant earnings & free cash flow generation

4. consolidated – EPS continuity
Cum. growth
$0.48
Q2-04
EPS reported
Q2-03
129%
$0.21 -
Restr. & workforce reduction
64%
$0.01
71%
Share-based compensation
$0.36
EPS normalized
$0.22 
$(0.13)
Income tax settlement
67%
normalized quarterly EPS increase of $0.14 or 64%

5. Mobility segment financial summary
 20%
677
564
External Revenue
 42%
286
201
EBITDA
 $85M
208
123
Cash Flow1
flat 78
Capex
Q2-04
Change
($M)
Q2-03
1 EBITDA less capex.
outstanding results across the board

6. Wireless subscriber growth
Mobility segment
Wireless subscriber growth
Wireless net additions
Total wireless subscribers
431K
375 to 425K
Postpaid
Prepaid Q2 Q2
82%
18%
114K
103K Q1 Q1
67K
76K Q
Actual Q
Outlook
3.6M
2003
2004
Q2 net adds up 11% with strong postpaid growth

7. enhancing wireless performance - churn
Mobility segment
enhancing wireless performance - churn
3.3
Q2-03
Q2-04
(%)
2.2
2.0
1.4
1.3
1.3
1.3
TELUS Mobility
BCE Wireless
Rogers Wireless
Microcell1
Source: Company reports
1 Microcell Q2-04 results not yet released
TELUS maintaining world class churn rate

8. enhancing wireless performance - ARPU
Mobility segment
enhancing wireless performance - ARPU
TELUS Mobility
Rogers Wireless
BCE Wireless
$56
$47
$48
$59
$50
Microcell1
$39
Q2-03
Q2-04
Source: Company reports
1 Microcell Q2-04 results not yet released
TELUS maintaining premium with positive industry trend

9. high Mobility revenue flow through
Mobility segment
high Mobility revenue flow through
Change
86%
EBITDA flow through (% of network revenue)
 $99
$626
$526
Network revenue
 $85
$286
$201
EBITDA
Q2-04
Q2-03
($M)
19%
42% % $
scale & efficiencies  86% of incremental network revenue flowed to EBITDA in Q2

10. communications segment financial summary
Q2-04
Change
($M)
Q2-03
 1.7%
1,189
1,209
External Revenue1
 3.2%
499
515
EBITDA
 20%
231
288
Cash Flow2
 18%
268
227
Capex
 0.6%
690
694
Opex
1 Normalizing to exclude cumulative asset disposition impacts of $2.8M in Q2-03 & a $10.2M positive regulatory adjustment in Q2-04, revenue declined 2.3%.
2 EBITDA less capex.
continued revenue softness affecting results

11. high-speed Internet subscriber growth
Communications segment
high-speed Internet subscriber growth
High-speed Internet net additions
Total Internet subscribers
152K
~125K
High Speed
Dial-up
67%
33% Q2 Q2
19K
27K Q1 Q1
32K
44K Q
Actual Q
Outlook
925K
2003
2004
slow Q2 but should achieve 2004 annual target

12. non-ILEC revenue & EBITDA1
Communications segment
non-ILEC revenue & EBITDA1
2004
($M)
2003
136
131 Q2 Q2 Q2 Q2
(7)
Revenue
(14)
EBITDA
1 Normalized for the 2003 asset disposition.
continued focus on revenue quality and up-front costs from large deals impacted Q2 results

13. improving EBITDA margins1 (%)
2004
2003
42.1
42.0
41.8
41.2
40.4
35.4 Q2 Q2 Q2 Q2 Q2 Q2
Mobility
Communications
Consolidated
1 Includes restructuring & workforce reduction costs; based on total revenue.
strong 6.6 pt Mobility margin expansion drove consolidated margin to 42.1%

14. Mobility’s share of TELUS’ EBITDA & cash flow
2003
2004
30%
47% Q2
28%
36% Q2
EBITDA
EBITDA less capex
Mobility generating ~ ½ of consolidated cash flow in Q2

15. strong consolidated free cash flow
($M)
Q2-03
Q2-04
EBITDA1
$717
$785
Capex
(306)
(346)
Cash Restructuring Payments (net of expense)
(44)
(9)
Net Cash Interest
(299)
(287)
Non-Cash Share Based Compensation - 6
Net Cash Tax Recovery
(3) 81
Free Cash Flow 66
230
Share Issuance2 (non-public) 21 17
Cash Dividends
(44)
(48)
Acc. Rec. Securitization Program proceeds 31 -
Working Capital/Other 84
(86)
Cash avail. for debt reduction & pref. redemp.
$157
$112
Net change in LTD & Preferred share redemption3
(148)
(28)
Net Change in Cash $9
$84
1 Includes restructuring & workforce reduction costs.
2 Proceeds from Treasury shares issued under the employee share purchase and option plans.
3 $35.8M of preference & preferred shares were redeemed during Q2-04 (nil in Q2-03).

16. deleveraging continues
45 to 50% long term
51.9%
55.7%
Net Debt : Capital
Q2-04
Guidance
Q2-03
<2.5X (end of 2004)
<2.3X (new target for end of 2004)
2.4X
3.0X
Net Debt : EBITDA 
Net Debt:EBITDA well ahead of plan – new 2004 guidance

17. status of Microcell bid
TELUS offered to purchase all outstanding publicly traded securities of Microcell Telecommunications on May 17, 2004
Entered confidentiality agreement & commenced diligence in June
Offers extended twice – most recently to expire on August 20
Industry Canada & Competition Bureau review well underway
TELUS offers outstanding for a total of 85 days, yet still no competing offer
TELUS bid fair & reasonable

18. revised 2004 guidance - Mobility
no change
375 to 425K
Wireless net adds
 $1.05 to 1.10B
 $2.675 to 2.725B
updated guidance2
approx. $350M
$1.0 to 1.05B
$2.65 to 2.7B
previous 2004 guidance1
Capex
EBITDA
Revenue (external)
1 Previously updated May 5, 2004.
2 Excludes any impact from prospective Microcell acquisition.

19. revised 2004 guidance - Communications
 $(30) to (40)M
$(20) to (30)M
Non-ILEC EBITDA
 approx. $950M
no change
 $525 to 550M
updated guidance
approx. $875M
$1.925 to B
$550 to 575M
$4.7 to 4.8B
previous 2004 guidance1
EBITDA
Capex
Non-ILEC revenue
Revenue (external)
approx. 125K
High-speed net adds
1 Previously updated May 5, 2004.

20. revised 2004 guidance - consolidated
 approx. $1.3B
approx. $1.225B
Capex
 $1.15 to 1.25B
 $1.30 to 1.50
 $2.975 to 3.075B
no change
updated guidance2
$1.13 to 1.23B
$1.10 to 1.30
$2.95 to 3.05B
$7.45 to 7.55B
previous 2004 guidance1
EPS
Free Cash Flow
EBITDA
Revenue
 2.3X or less
2.5X or less
Net Debt : EBITDA
1 Previously updated May 5, 2004.
2 Excludes any impact from prospective Microcell acquisition.

21. Questions?

22. 1-800-667-4871 telus.com ir@telus.com
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