1 the future is friendly Investor meeting June 8, 2005 Robert McFarlane EVP & Chief Financial Officer.

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the future is friendly

Investor meetingJune 8, 2005

Robert McFarlaneEVP & Chief Financial Officer

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leading the way with a proven strategy

Focusing on growth markets of data & wireless Building national capabilities Providing integrated solutions Investing in internal capabilities Partnering, acquiring and divesting as necessary Going to market as one team

strategic intent… to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move.

Consistent strategy and execution 2000 2005

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corporate priorities for 2005

Enhance our leadership position in wireless Leverage investments in high speed Internet Accelerate wireline performance in Ontario and Quebec Grow brand value through superior customer experience Drive continual improvements in productivity Reach a new collective agreement

2005 priorities building off success from 2004

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framework for medium term growth

Price Cap Regulatory Framework

Competitive Intensity

Technological Substitution + +

Non-ILEC Growth

Future Friendly

Home

Organization Effectiveness+ +

Strive to hold wireline EBITDA (before restructuring) flat over medium term

=

Growth in revenues and EBITDA from large exposure to wireless business

Continued improvements in consolidated results

Growth Opportunities Challenges

Short-term dilutive

Wireline

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questions?

investor relations1-800-667-4871

[email protected]

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appendix

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Challenge is real and is not “US only” Canadian business leaders should embrace need for

comprehensive governance change Ethics at the top are critical TELUS advocates a top down “SOX smart” approach =

proactive, balanced risk-based approach No single checklist can provide good governance New guidance is taking us in the right direction in

Canada and needs constructive leadership

Corporate governance summary

[TELUS logo]With appropriate executive leadership, challenge can be met effectively in a manner that adds shareholder value

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$5.7B

strategic focus on data and wireless

2005

$7.8B

Voice

TELUS Mobility

Data31%

38%

19%

2000

12%LD

Significant exposure to data and wireless @ 57%

49%

18%

10%

LD

TELUS Mobility

Voice

23%

Data

Twelve months trailing to March 31

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Source: Company reports

TELUS Mobility Rogers Wireless1BCE Wireless

$57

$44$47

$58

$48$46

Q1-04

Q1-05

1 Pro forma Microcell

TELUS maintaining ~20% premium to competitors

ARPU comparison

Mobility segment

10 Achieving profitable subscriber growth

Mobility segment

TELUS achieving profitable subscriber growth

$936M182K

EBITDA

net adds

TELUSMobility

36%

$693M

cash flow1

1 EBITDA - Capex

Canadian national wireless carriers in Q1-05

44%

TELUSMobility

40%

TELUSMobility

Source: Company reports. Sum of reported results for BCE, Rogers Wireless pro forma Microcell, & TELUS Mobility

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TELUS Mobility EBITDA & cash flow growth

1 Pro forma acquisition of Clearnet 2 EBITDA (excluding restructuring) for 2001 & 2002

3 Mid-point of latest guidance announced May 4, 2005

(360)

173

815

200320001

356

20012

535

20022

1,142

2004

456

(288)

75

EBITDA

EBITDA less capex($M)

788

2005E3

~1,388

~988

Tremendous trend of value creation

Mobility segment

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EV-DO strategic rationale

3G Evolution Data Only (EV-DO) provides:1. Next necessary evolutionary step in CDMA technology

Follows transition adopted by major US carriers Potential future evolutionary path for voice Sprint-Nextel merger to adopt EV-DO as future PTT infrastructure

under-pinning

2. Increased wireless data speeds opens up new services potentials Average user download speeds of 400 – 500 kilobits per second and up

to 1 Megabit per second (with compression techniques)

3. Greater effectiveness of service models in the enterprise market4. New consumer service models drive consumer data revenue5. First strike advantage over Rogers wireless (and GSM platform)

TELUS playing catch-up to Rogers’ GSM technology and earlier introduction of Blackberry devices

EV-DO allows TELUS to leap-frog ahead of EDGE technology

Mobility segment

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CDMA 2000 evolutionary roadmap (data)

1995 2005 2007

Effective end-user characteristics (excluding compression)

2009+2001

RTT = Round Trip Delayunderscores = advancement from previous standard

Download channel characteristics (excluding compression)

300-500 kbpsAsymmetric300ms RTT

40-60 kbpsSymmetric400ms RTT

EV-DO+1xRTT EV-DO

400-600 kbpsSymmetric70 ms RTT

IS-95

NO packet datacapability

14.4 kbps circuit

3G-nX

400-600 kbps timesn carriersSymmetric70 ms RTT

153.1 kbps 2.4 mbps 3.2 mbps 3.2 mbps times n carriers

IS-95b 1x rev a EV-DV

300-500 kbpsAsymmetric300ms RTT

Limited Deployment or abandoned commercial standards

Contracted upgrade

80-120 kbpsAsymmetric400ms RTT

38 kbpsCircuit switched

Korea only

Mobility segment

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CDMA vs. 3GSM (Rogers Wireless) data evolution

300-500 kbpsAsymmetric300ms RTT

50-80 kbpsSymmetric400ms RTT

EV-DO+1xRTT EV-DO

400-600 kbpsSymmetric70 ms RTT

3G-nX

400-600 kbps timesn carriersSymmetric70 ms RTT

2005 2007

Effective end-user characteristics (excluding compression)

2009+

500-700 kbpsAsymmetric70ms RTT

GPRS EDGE

10-30 kpbsSymmetric400ms RTT

80-100 kpbsSymmetric400ms RTT

UMTSHSDPA

UMTSHSUPA

2002 2003 2004 2006

700-900 kbpsSymmetric70ms RTT

Major evolutionary

change

UMTSRel. 99

Mobility segment

153rd straight quarter of year over year wireline revenue growth driven by data

10%6573Other

11%378340Data

1.4%226230Voice – Long Distance

4.5%553529Voice – Local

ChangeQ1-05Q1-04

External Revenue $1,171 $1,222

($M)

Communications segment

revenue profile

4.4%

16 Normalized local revenue flat & data growth of 11%

Q1-04 Q1-05 Change

Local revenue (reported) 529 553 4.5%

TQ portable subsidy - (7)

CDNS - def. account - (18)

Local revenue (normalized) 529 528 0.2%

Data revenue (reported) 340 378 11%

Acquisitions - (19)

CDNS impact - data - 18

Data revenue (normalized) 340 377 11%

($M)

Communications segment

local and data revenue - normalized

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-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05

long distance revenues

Communications segment

Canadian industry quarterly CAGR comparison

TELUS

Bell

MTS/Allstream

TELUS has adopted a differentiated approach to LD pricing

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-10.0%

-5.0%

0.0%

5.0%

10.0%

Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05

data revenues

Communications segment

TELUS

Bell

MTS/Allstream

Canadian industry quarterly CAGR comparison

Industry and TELUS data growth evident in last few quarters

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Q1-04 Q2-04 Q3-04 Q4-04 Q1-05

-1.3% -1.4%-1.2% -1.3% -1.1%

Strongest NAL result in 5 quarters despite growing competition

% of network access lines lost, YoY

network access line results

Q4-03

-0.8%

Communications segment

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-4.2

-3.7-3.9

-4.3 -4.3

-1.2-1.4

-4.2-4.4

-3.6

-4.3

-4.6

-3.8

-1.1

-0.8-0.8-1.0

-1.3

-3.9

-1.0

-4.2

-4.0

-3.6

-0.9

-1.3

TELUS SBC Verizon BellSouth BCE

Year over Year NAL declines

Source: Morgan Stanley (April 2005), company reports

Trailing five quarters ended Q4-04

%

Q4 Q1 Q2 Q3 Q4

2003 2004

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Why is TELUS NAL loss experience < US: Proportionately less 2nd lines Less wireless substitution Strong economic growth in AB/BC US regulatory framework – UNE-P losses & now

reversal Cable telephony launches in their infancy in Canada

Gaining lines out-of-region TELUS non-ILEC gains offset competitive ILEC losses

Network Access Lines (NALs)

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8(3)(14) 4(9)

Q1-04 Q2-04 Q3-04 Q4-04 Q1-05

128145

131156 160

Positive trend with record revenue; 2nd quarter of positive EBITDA benefited in part from non-recurring items

Revenue

EBITDA

non-ILEC revenue & EBITDA ($M)

~$3-4M run rate

Communications segment

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Business

Geographic expansion building high quality, recurring revenues in non-ILEC leveraging

IP network & application leadership

$245M long-term contract with Gov’t of B.C.

Consumer

“Future Friendly” home continued high-speed Internet growth launched suite of IP applications

Home Networking, HomeSitterTM launched in 2004 IPTV employee trials continue

Bundling bundling strategy protects legacy revenues

revitalizing wireline growth

Communications segment

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TELUS Service Development Roadmap

NewSolutions

Existing Solutions

2003

Games/Music

2004 2005

mytelus.com +

VoIP+

Possible TTV Launch

+IP Messaging

+HomeSitter

+Home

Networking+

Internet+

Wireless

Local/LD/PCMSBundle

2006

Future Friendly Home

IP Messaging

+HomeSitter

+ Home

Networking+

TTV Trial+

Games/Music

+InternetWireless

Local/LD/PCMSBundle

Internet

Wireless

Local/LD/PCMSBundle

Home Portal +

Remote Access

+VoIP

+Possible TTV

Launch+

IP Messaging+

HomeSitter+

Home Networking

+Internet

+Wireless

Local/LD/PCMSBundle

16 Mbps

Ba

nd

wid

thR

eq

uir

em

en

ts

1.5 Mbps

7 Mbps

ADSL @ 2200 m

ADSL2+ @ 1500 m

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strategic rationale of potential IPTV offering Grow new sources of revenue and expand share of wallet of

Alberta and BC consumers

Protect TELUS high value customers and increase customer loyalty through introduction of key entertainment services

Offer “Quadruple Play” bundle of voice, high-speed data, mobility and video

Provide an alternative to Shaw cable and Bell’s ExpressVu satellite systems

Decrease Shaw’s ability to erode traditional voice services with its “Triple Play” bundle

Offer differentiated services

26 Positive changes reflect Q1 momentum and tax settlement

2005 consolidated guidance summary

1 Provided on December 17, 20042 Updated May 4, 20053 Includes ~$100M in restructuring & workforce reduction costs4 Updated guidance includes $0.15 in 2005 for favourable settlement of tax matters

$1.2 to $1.3BFree Cash Flow

$1.3 to $1.4BCapex

$1.65 to $1.85EPS4

updated 2005 guidance2

EBITDA3

Revenue

original 2005 targets1

$3.2 to $3.3B

$7.9 to $8.0 B

$1.25 to $1.35B

approx. $1.4B

$1.85 to $2.05

$3.25 to $3.325B

$7.95 to $8.05B

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Effective May 4, 2005, TELUS entered into new credit facilities totaling $1.6 billion $800M five-year revolving term expiring May 2010$800M three-year revolving term expiring May 2008Facilities mature subsequent to 06/07 debt

maturities Will replace TELUS’ existing $1.6B committed facilities Favourable changes to pricing & extended terms

reinforce strong liquidity position

Renewal of credit facilities reflect strong financial position

renewed bank credit facilities

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Collective bargaining with TWU resumed, Feb. 10 Tabled comprehensive offer to TWU, Apr. 13 Declared impasse and delivered notice of lockout measures,

Apr. 18 Presented the comprehensive offer to employees, Apr. 21

cash impact of offer would be up to approx. $200M Federal Court of Appeal denied TWU application challenging

TELUS, Apr. 22 CIRB dismissed application by TWU for interim relief, Apr. 24 Lock-out measures implemented, Apr. 25, May 12 & June 2

labour relations update

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TWU appeal to CIRB on unfair labour practice regarding TELUS’ tabling of comprehensive offer directly to employees

Heard late May 2005

TWU application to Federal Court of Appeal seeking to overturn CIRB’s reconsideration decision, and restore order of binding arbitration

Heard May 31 – June 1, 2005

TELUS Mobility application to Supreme Court of Canada for leave to appeal CIRB decision regarding automatic sweep in of TELUS Mobility East team members

No decision on application

labour relations update

Actions not affecting business operations

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CRTC VoIP decision ILECs subject to regulation for VoIP

Phase II costing – prices can differ from local Expedited, 10-day confidential tariff process 12 month winback period extended

Cablecos are CLECs and deregulated for VoIP

TELUS issues with decision Canada is unique in regulating retail rates Fails to adapt to disruptive technology Gives regulatory head start to some competitors Disadvantages Canadian telephone companies

Decision as expected, but missed opportunity