2004annual general meeting

Darren Entwistlemember of the TELUS team

leading the way

consistent strategy

*

agendastrategy progress reportcorporate citizenship2003 priorities & highlights2004 priorities

*

tracking against strategic imperatives 2000 2004build national capabilitiesprovide integrated solutionsfocus on growth markets of data & wirelessgoing to market as one teampartner, acquire & divest as necessaryinvest 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

*

1. build national capabilitiesTELUS infrastructure - 2000

*

national transformation

CommunicationsJan 2000Mar 2004Ont/Que cities338Co-locations289Customer POPs5223Fibre lit (km)013,600PlatformStentorTELUSNetworkCircuit-basedNext Generation (NGN)

NGN delivers enhanced customer data & IP services and operational cost savings

*

national wireless transformationKey to driving profitable growthSubscribers have tripled to 3.5 million Operating earnings have quintupled to $884 million Operating earnings per employee have increased 89% due to scale efficiencies

MobilityJan 2000Mar 2004PoPs covered (millions)729.9Mike (iDEN) (millions)-25Technology / Generation1G3G

*

new developments in wirelesscross-border roaming partnership with Nextel enabling Mike Direct Connect walkie-talkie service launch of two new Blackberry devicesoperating on Mike (iDEN) network and national 1X wireless data networkoffers a one-stop wireless solution to stay connected

now offering North American wide roaming

*

1. build national capabilitiesTELUS infrastructure - 2000

*

build national capabilitiesTELUS infrastructure - 2003

*

2.provide integrated solutionsTD Bank Financial Group win Oct. 2003$160 million, 7-year contract for managed data solution largest network migration in CanadaNGN with IP Virtual Private Network (VPN) security & enhanced services cannot be matched by competitorsplease visit our tradeshow following this AGM

*

3.focus on growth markets of data & wirelessconsolidated revenue profile evolution$5.7B20042$7.2B20001Local VoiceWirelessData30%34%19%4%Other13%LD43%18%10%6%OtherLDWirelessLocal Voice23%Data1 12 months ended June 302 12 months ended March 31

data & wireless revenues from 28% to 53% in 3.5 yrs

*

executing our strategy for profitable growthSource: Company reports. Sum of reported net adds & wireless EBITDA for BCE, Rogers Wireless, Microcell, TELUS Mobility$630M1.4MEBITDA growth subscriber growthTELUSMobility45%30%TELUSMobility2003 wireless industry

TELUS achieves profitable subscriber growth

*

continued industry leadership in wireless average revenue per subscriber unit (ARPU)Source: Company reportsTELUS MobilityRogers WirelessBCE Wireless$55$45$472002 2003 $57$47$48Microcell$40$38

industry wide improvement in ARPU

*

high-speed Internet growth410215562200220032001131195 152Subscriber baseNet additions(000s)~125~6872004E84200058

market share grew from 10% to 39% currently

*

driving towards leadership in high-speed Internet2004 target of 125,000 new subscriberson track in Q1 with 44,000

*

4.going to market as one teamcamera phones say it instantly.

*

TELUS advertising ranked topAwarded by Marketing Magazine as Canadas: No. 1 Top-of-Mind awareness Top 3 for Most Liked

Leger Marketing national poll December 2003

*

TELUS valueswe have a passion for growthwe have the courage to innovatewe believe in spirited teamworkwe embrace change and initiate opportunityOur values make the future friendly

*

corporate citizenship

*

amateur sports & 2010Premier founding sponsor for Canadas Olympic bidTELUS Centre for Sport & KidSportTM

*

Video to be played

*

corporate citizenship

*

TELUS investment in the communitymember of Dow Jones Sustainability Indexthree consecutive years only North American telecommunications company listednamed Canadas most environmentally friendly company in 2003 by Corporate Knights

Corporate Social Responsibility Report now available

2003 corporatepriorities & highlights

*

2003 TELUS corporate prioritiesimproving Central Canada profitabilitystrengthening financial positionenhancing wireless performanceimproving levels of customer service delivering operational efficiencyreaching a collective agreement2004

*

improving central Canada profitabilityRevenue (mil.)EBITDA (mil.)1 Includes TELUS Quebec & TELUS non-ILEC operations except 2000~$860~$1202004E$4Jan. 2000

TELUS wireline operations in Ontario & Quebec have significant scale & are generating profitable growth

*

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

*

strengthening our financial position1 Based on midpoint of EBITDA guidance

*

improving free cash flow200120022003$(1.14)B$(140)M$1.13B to 1.23B2004E$845M

reduced net debt by $872M in 2003 & $298M in Q1 2004

*

debt rating update2003DBRS, S&P and Fitch maintained investment grade ratings while changing outlook to stable Moodys upgraded outlook to stable and then positive2004Mar. 2nd Moodys upgraded to investment grade with stable outlook

rating agencies recognize financial strength

*

2003 global telecom performance(18)2116138(2)(3)(5)(6)(14)(2)131421(0.3)3TeliaFTDTKPNTELUSMTSTelstraNipponBCE

As at March 1, 2004

Notes: 1 Excluding restructuring TELUS data based on 2002 & 2003 results Other results provided by Bloomberg, company, and analyst reportsEBITDA1 % growth ratesBTPSSWSprintAliantBLSVZSBCAT&T

*

2003 global telecom performance(24)9463291917443(4)(16)(0.1)1120746TELUSFTTeliaDTMTSFONBCEKPNAliantNipponBLSTelstraPCCWCash Flow (EBITDA1 - 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 reportsAT&TVZBTSprintSBC

2004 corporatepriorities

*

2004 prioritiesreaching a collective agreement growing brand value through superior customer servicerevitalizing wireline growthembracing continual cost efficiencydriving towards leadership in high-speed Internet enhancing our leadership in wireless

.leading the way into 2004

*

wireless customer satisfaction = low disconnectsBCE

AWE2.7%2.6%1.6%2.0%1.8%1.5%1.4%TELUSVerizonSprintPCSRogersNextel3.2%CingularMicrocell3.2%2.7%T-Mobile2003 monthly churn rates

TELUS Mobility lifetime customer revenue $3,900

*

customer service improvements1company report on 19 CRTC quality of service indicators and standards for March 2004

TELUS setting new historical records in customer service

*

revitalizing wireline growthgoal to overcome industry wide challenge of declining wireline revenue growthstep change improvements plannedmarketing and sales effectivenessexcel in deliveryoperationalize lead in IP solutionslaunch new products

*

embracing operational cost efficiency20032004E$450M$550M $454M$477M at Q17,300NAActual7,500NACumulative Goals - SavingsActual Net staff reductions targetefficiency program 2001 to

exceeding program targets with $100M expected incremental savings for 2004

*

driving towards leadership in high-speed Internet2004 target of 125,000 new subscribers on trackplatform for future servicesWireless home networkingIP telephonyTELUS TV

see wireless home networking demonstration

*

enhancing our leadership in wireless19%12 14%Revenue growth$198M$650 - $700MCash Flow (EBITDA less Capex)

39%23 29%EBITDA growthQ1 on track?2004E

delivering on strategy of profitable wireless growth

*

leading the way with more of the samewhat gets measured gets done19 of 22 consolidated targets achieved in last 4 years (2000 to 2003)public targets set for 2004Net income estimated to increase 27% to ~$420M

consistent performance over time

*

2004E global telecom performance774433(1)(6)(8)(20)12360.4(0.4)(1)TELUSFTDTMTSSprintAliantTelstraBCEBTNipponTeliaAT&TBLSSBCPCCWVZKPN

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 reportsprojected EBITDA % growth rates

*

14114321(3)(3)(6)(9)(10)(28)0.2(1)(1)0.45TELUSAliantTeliaFTSprintBCETelstraDTNippon2004E global telecom performanceprojected 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 reportsAT&TBLSSBCPCCWVZKPNMTSBT

leading the way

consistent strategypositioned to build value

2004annual general meeting

Thank you, Glen.Good afternoon.[NOTES: yearly change is not indicative of an annualized rate]Slide 39 depicts the nine month year-to-date cash flow improvement in both our Mobility and Communications segments.As you can see, TELUS enjoyed dramatic growth in cash flow (as measured by EBITDA less capex) of approximately $326M at Mobility and approximately $410M at Communications. Significant achievements indeed!