1. Robert McFarlane EVP & Chief Financial Officer

2. 44 agenda  2002 highlights  Quarter 1, 2003 review  2003 guidance  Summary

3. 45 These Annual Meeting presentations and answers to questions contain forward-looking statements about expected future events 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’ 2003 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. forward-looking disclaimer all dollars in C$ unless otherwise specified

4. 2002 highlights

5. 47 2002 highlights – consolidated  Challenging telecom & regulatory environment  Met or exceeded analyst expectations on key profitability measures  Operating earnings before restructuring costs was flat despite negative regulatory impacts  Capex reduction drove significant improvement in cash flow  Successfully completed an equity offering and concurrent debt repurchase

6. 48 2002 highlights – consolidated 1 Normalized for regulatory impacts (contribution and price cap decisions) 2 Excludes restructuring & workforce reduction costs 20012002change Revenue$7.1B$7.0B  1.0% Revenue 1 (normalized) $7.1B$7.4B  5.0% EBITDA 2 $2.53B$2.52B  0.4% EBITDA 1,2 (normalized) $2.53B$2.79B  10% negative regulatory impacts mask underlying revenue & EBITDA growth of 5% & 10%, respectively

7. 49 2002 highlights – consolidated 1 Restructuring & workforce reduction costs 2 After-tax income resulting from sale of Directory Operations 20012002change Restructuring costs 1 $198M$570M  187% Disc. Operations 2 $592M($2.0M)  $594M Net Income/(Loss)$454M($229M)  $683M EPS$1.51($0.75)  $2.26 2002 net income declined due to restructuring costs from operational efficiency program

8. 50 2002 highlights – consolidated 1 Includes $356M and $4.6M in spectrum purchases for 2001 and 2002, respectively 2 Ratio of capex to total revenues 3 EBITDA less capex 20012002change Capex 1 $2.6B$1.7B  35% Capex Intensity 2 37%24%  13pts Cash Flow 3 ($76M)$821M  $897M significant reduction in capex drove dramatic cash generation increase

9. 51 2002 original target target met? Revenue ($B)7.017.35 to 7.45 1  EBITDA ($B)2.522.475 to 2.525  EPS 2 ($)0.430.15 to 0.20  Capex ($B)1.72.1 to 2.2  2002 highlights – consolidated performance vs. original public targets 1 Post accounting classification change in order to comply with EITF 01-9 which resulted in costs specific to Mobility & Internet operations being reclassified to offset revenues 2 Normalized for after-tax restructuring costs achieved key profitability targets despite revenue shortfall

10. 52 2001 2002 ($M) 1 EBITDA less capex, cash interest, cash taxes, cash dividends; excludes restructuring & workforce reduction costs 2002 highlights – consolidated free cash flow 1 $1.3 billion increase in free cash flow

11. 53 2002 highlights improved financial position  Credit agencies “raised the bar”  TELUS credit fundamentals improved  Renewed bank credit facility  Implemented low-cost accounts receivable securitization program  Successfully completed $337M equity offering and concurrent $410M debt repurchase  Reduced debt leverage  Maintained strong liquidity position

12. 54 2002 highlights Communications segment  Significant negative regulatory impacts from contribution and price cap decisions  Revenue shortfall offset by Operational Efficiency Program progress ahead of plan & favourable tax settlement  Gained considerable hi-speed Internet market share  Consecutive quarters of improved non-incumbent profitability in Ontario & Quebec  Disciplined 23% annual reduction in capex  Cash flow 1 increased $178M 1 EBITDA less capex

13. 55 2002 highlights – Communications segment OEP savings since inception operational efficiency improvements exceed targets in 2002 setting stage for significant future savings 2002 2003E 2004E $150M ~$550M ~$450M $245M 1 Q1 1 Aggregated cost base reduction since inception of OEP

14. 56 216 497 1998 313 1999 2000 2001 2002 highlights – Communications segment total Internet customers (000s)  91% 2002 670 802  14% 195,000 ADSL net adds/increased share

15. 57  Successful merger integration  418K net subscriber adds  Maintained industry leadership in ARPU  Customer churn lowered to industry best  Strong revenue & excellent profitability growth  EBITDA up 50% and capex down 54% 1  Cash flow 2 increased $719M 2002 highlights Mobility segment 1 Includes $4.6 million and $356 million in spectrum purchases for 2002 and 2001, respectively 2 EBITDA less capex

16. 58 963 2,160 1998 1,686 1 1999 2000 2001 2002 highlights – Mobility segment total wireless subscribers (000s) 2002 2,578 2,996  16% 418,000 wireless net adds/increased share 1 Proforma 587K subscribers following Clearnet acquisition

17. 2003 Q1 review

18. 60 2003 Q1 review – consolidated Q1-02Q1-03change Revenue$1.70B$1.74B  2.5% EBITDA 1 $589M$671M  14% Net Income/(Loss)($0.8M)$91M  $92M EPS EPS normalized for tax savings ($0.01) $0.26 $0.11  $0.27  $0.12 strong EBITDA & tax savings drive significant profitability improvement ahead of expectations 1 Excludes restructuring & workforce reduction costs $0.15 dividend per share declared for July 1, 2003

19. 61 2003 Q1 review – consolidated 1 Ratio of capex to total revenues 2 EBITDA less capex, cash interest, cash taxes, cash dividends; excludes restructuring & workforce reduction costs Q1-02Q1-03 change Capex$406M$208M  49% Capex Intensity 1 24%12%  12pts Free Cash Flow 2 $101M$376M  $275M $275M improvement in free cash flow generation

20. 62 2003 Q1 review – consolidated Q1-02Q1-03Target Net Debt : Capital58.0%55.7%50% long term Net Debt : EBITDA3.5X3.2X 3.0X in Dec 2003 <2.7X in Dec 2004 significant credit enhancement underway

21. 63 ($M)Q1-02Q1-03change External Rev. 1 1,2511,209  3.4% EBITDA467492  5.5% Capex309154  50% Cap. Intensity 2 24%13%  11pts Cash Flow 3 158339  115% 2003 Q1 review – Communications segment 1 Excludes intersegment revenues 2 Ratio of capex to total revenues 3 EBITDA less capex operational & capital efficiency gains driving improved cash flow

22. 64 Q1-03 6th consecutive quarter of improving profitability 2003 Q1 review – Communications segment non-ILEC revenue and EBITDA

23. 65 (000s) Q1-02Q1-03change Network Access Lines4,9464,913  0.7% ADSL Subscribers267442  66% ADSL net adds5232  39% Total Employees25.219.7  22% 2003 Q1 review – Communications segment

24. 66 2003 Q1 review – Mobility segment ($M)Q1-02Q1-03change Revenue447532  19% EBITDA 1 123179  46% Capex9754  44% Capex Intensity 2 22%10%  12pts Cash Flow 3 26124  $99M significant profitability & cash flow growth 1 Q1-02 includes $21.0M clarification of provincial sales tax legislation related to wireless equipment subsidies 2 Ratio of capex to total revenues 3 EBITDA less capex

25. 67 2003 Q1 review – Mobility segment Q1-02Q1-03change Subscribers2.7M3.1M  15% Net adds (000s) 9167  26% ARPU$52$54  3.8% Churn1.88%1.53%  35pts focus on profitable growth & quality of service yields outstanding ARPU & Churn

26. 2003 targets & guidance

27. 69 2003 financial targets – consolidated 2002 actual original 2003 target change Revenue$7.01B$7.2 to 7.3B  3 to 4% EBITDA$2.52B$2.7 to 2.8B  7 to 11% EPS($0.75)$0.35 to 0.55  $1.10 to 1.30 Capex$1.7Bapprox. $1.5B  $200M FCF($26M)$300 to 600M  $326 to 626M targeting significant EPS & FCF growth

28. 70 2003 targets – revised guidance original 2003 target 1 revised 2003 guidance 3 Consolidated EPS$0.35 to 0.55$0.50 to 0.70 Free Cash Flow$300 to 600M$500 to 600M 2 Mobility Mobility Subs400 to 450Kapprox. 350K Mobility EBITDA$625 to 650Mapprox. $675 to 700M 1 December 16, 2002 2 Revised on April 8, 2003 3 April 30, 2003

29. securities price performance

30. 72 share price performance comparison Wireless $80 Telecoms $92

31. 73 share price performance comparison TELUS $122 Telecom $92 Wireless $80

32. 74 bond price performance

33. 75 announcement – credit facility renewal  364-Day revolving credit facility renewed  Combined bank facility now $2.1B  No material changes to terms  New maturity date May 2004  Renewal evidences strong capital market support building on our financial strength

34. 76 summary  TELUS Communications – improving efficiencies  TELUS Mobility – excellent results  Significantly reducing capex intensity  Significant cash flow generation  Reducing debt & leverage = enhanced credit profile  Positive 2003 earnings outlook delivering on our strategy