2005 CIBC Telecom & Cable Fixed Income Conference September 15, 2005 Robert McFarlane

1. 2005 CIBC Telecom & Cable Fixed Income Conference September 15, 2005 Robert McFarlane EVP & Chief Financial Officer

2. forward-looking statements This presentation and answers to questions contain forward-looking statements about expected future events including competition, financing, labour relations developments, 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. Factors that could cause actual results to differ materially include but are not limited to: competition; economic fluctuations; financing and debt requirements; tax matters; human resources (including impact of the current work stoppage and labour relations issues); technology (including reliance on systems and information technology); process risks; and regulatory developments. For additional information on potential risk factors and assumptions, see TELUS’ 2004 Annual Report and other filings with securities regulatory authorities in Canada and the United States.

3. about TELUS • Best performing Canadian telco • Executing national growth strategy focused on data, IP & wireless • Financial results (12ME June 30, 2005) : • Revenues $7.9B • EBITDA $3.3B • FCF $1.4B • Daily trading: 1.3M shares (recent 90 day avg) • Enterprise value: ~$22B (debt ~ $7.2B) • Listings: TSX: T, T.NV; NYSE: TU • Operating segments: Communications (wireline) Mobility (wireless)

4. 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

5. strategic focus on data and wireless 12 ME Q2-00 12 ME Q2-05 TELUS Mobility LD LD TELUS Mobility 23% 39% 12% 18% Data Data Voice Voice 10% 30% 49% 19% $5.7B $7.9B

6. Consolidated cash flow1 profile evolution 12ME Q2-05 12ME Q2-00 TELUS Mobility TELUS Mobility 18% 47% 53% 82% TELUS Communications TELUS Communications $1.3B $2.0B 1EBITDA less Capex

7. 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

8. TELUS Mobilitywireless segment

9. industry subscriber growth • Q2-04 • Q2-05 • Q2-03 • 12ME • Population • 31.5M • 31.8M • 32.0M • Net subscriber additions • 1.2M • 1.5M • 1.7M • Cdn wireless market • 12.4M • 13.9M • 15.6M • Penetration • 39.4% • 43.8% • 48.9% • Penetration gain • 3.5% • 4.4% • 5.1% • No. of national carriers • 4 • 4 • 3 Source: Company reports, CWTA. Includes subscriber results for Bell Wireless Alliance, Rogers Wireless pro forma Microcell, and TELUS Mobility.

10. Mobility segment subscriber results net additions total wireless subscribers prepaid 4.1 M 211K postpaid 190K 0.7 M prepaid 18% postpaid 82% 3.4 M YTD Q2-04 YTD Q2-05

11. Source: Company reports Mobility segment industry ARPU YTD Q2-04 $60 $58 YTD Q2-05 $50 $48 $48 $46 TELUS Mobility Rogers Wireless1 BCE Wireless • 1 Pro forma Microcell

12. Mobility segment profitable subscriber growth • TELUS • Rogers • BCE • YTD Q2-05 • 1.41% • Blended churn • 2.12% • 1.60% • $348 • COA per gross addition • $377 • $389 • $4,300 • Lifetime revenue • $2,300 • $3,000 • 8% • COA / Lifetime revenue • 16% • 13%

13. Mobility segment financial results • YTD • Q2-04 • YTD • Q2-05 • Change ($M, except margin) • Revenue • 1,309 • 1,555 •  • 19% • EBITDA1 • 534 • 704 •  • 32% • EBITDA margin (total rev.) • 40.5% • 44.9% •  • 4.4pts • Capex • 129 • 174 •  • 36% • Cash Flow (EBITDA less capex) • 405 • 530 •  • 31% 1 Earnings before interest, taxes, depreciation and amortization

14. industry subscriber & EBITDA growth 12ME Q2-05 net additions 12ME Q2-05 EBITDA growth TELUS Mobility TELUS Mobility 32% 42% 1.7M $814M Source: Company reports. EBITDA is sum of reported EBITDA for BCE, Rogers Wireless p.f. Microcell, and TELUS Mobility.

15. Mobility segment wireless cash flow yield • YTD Q2-05 • TELUS • Other Cdn • US avg. • EBITDA margin (total rev.) • 45% • 39% • 31% • Capex intensity (total rev.) • 11% • 13% • 25% • Cash flow yield (total rev.) • 34% • 26% • 6% Source: Company reports. Merrill Lynch for US averages

16. Mobility segment leading North American performance YTD cash flow yield of 8 national wireless companies (%) 34% 30% 21% 17% 16% 15% 5% (25)% TELUS BCE Rogers Wireless Nextel Sprint Verizon Cingular T-Mobile • Source: Company reports

17. TELUS Communicationswireline segment

18. Communications segment revenue profile • YTD • Q2-04 • YTD • Q2-05 • Change ($M) • Voice – Local • 1,073 • 1,096 •  • 2.1% • Voice – Long Distance • 458 • 455 •  • 0.7% • Data • 686 • 757 •  • 11% • Other • 144 • 131 •  • 9.0% •  External Revenue $2,360 $2,439 • 3.3%

19. Communications segment network access line results % of network access lines lost, YoY Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 -1.1% -1.2% -1.5% -1.3% -1.4% -1.8%

20. Communications segment 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 long distance revenues Canadian industryquarterly CAGR comparison TELUS MTS/Allstream BCE

21. Communications segment data revenues Canadian industryyear over year data growth TELUS BCE’s Q2-05 organic data growth >1% BCE MTS/Allstream

22. Communications segment high speed Internet subscriber growth total Internet subscribers TELUS high-speed market share1 990K 40% 39% 261K 35% 30% Dial-up 26% High-speed 74% Q2-02 Q2-03 Q2-04 Q2-05 729K 1In ILEC operating areas

23. Communications segment non-ILEC revenue & EBITDA revenue EBITDA ($M) 315 259 11 (23) YTD Q2-04 YTD Q2-05 YTD Q2-05 YTD Q2-04

24. TELUS Consolidated

25. TELUS consolidated financial results • YTD • Q2-04 • YTD • Q2-05 • Change • Revenue • $3.67B • $3.99B •  • 8.8% • EBITDA • $1.51B • $1.72B •  • 14% • EPS1 • $0.76 • $1.20 •  • 58% •  • $682M • 4.0% • Capex • $656M •  • $774M • 15% • Free Cash Flow • $673M 1 Including favourable impacts for tax settlements of $0.17 YTD Q2-04 & $0.15 YTD Q2-05

26. TELUS consolidated capital intensity1 Mobility Communications Consolidated 22% 20% 18% 17% 11% 10% YTD Q2-04 YTD Q2-05 YTD Q2-04 YTD Q2-05 YTD Q2-04 YTD Q2-05 1 Capital expenditures as a % of total revenue

27. TELUS consolidated convertible debentures & NCIB update • TELUS redeemed/converted $150M convertible debentures in Q2-05 • $132M converted by holders into non-voting shares • $18M redeemed by TELUS • TELUS has repurchased 15.0M shares under normal course issuer bid (NCIB) for $605M since Dec-04

28. labour relations update • TELUS lock-out measures (Apr-Jul) escalated pressure for settlement • commenced implementing offer July 22 • TWU responded with multiple legal challenges, work to rule and rotating strikes • called general strike on July 21 • TWU has not conducted vote on strike or on offer • TWU strategy hinged on hope for externally imposed 3rd party settlement • 2005 legal decisions have upheld TELUS’ actions and largely dismissed TWU challenges see Appendices for chronological summary

29. labour relations update • Comprehensive contingency plans activated to minimize customer impacts • generally meeting or exceeding call centre standards • installations backlogged as expected • >50% of Alberta unionized team members working • BC unionized employees have not yet been allowed to cross picket lines • BC and AB court injunctions in place to allow facilities access and reduce intimidation • TELUS is fully operational

30. Credit profile

31. credit profile total & net debt overview • As at June 30, 2005 • $ (billions) • Total debt • $6.27 • Plus: Cross currency hedge liability1 • 0.96 • Subtotal: Gross debt • 7.23 • Less: Cash • 1.14 • Net debt • $6.10 1 Associated with U.S. dollar denominated debt

32. credit profile debt overview • Consolidated fixed to floating ratio a conservative 93% • Foreign currency debt is fully hedged • A/R securitization program at minimum $150M level • 86% of total debt at TELUS Corp. • Average term to maturity ~4.9 years1 • First significant debt maturity in June 2006 1 As at June 30, 2005

33. credit profile current debt structure TELUS Corporation Maturity Bank1 - 3 Year $0.8B revolver May 2008 - 5 Year $0.8B revolver May 2010 C$ 7.5% Notes $1.6B June 2006 US$ 7.5% Notes C$1.8B June 2007 US$ 8.0% Notes C$3.0B June 2011 100% • TELUS Communications Inc. • Maturity • Mortgage Bonds $0.030B July 2010 • MTN’s $0.070B Feb 2007 • Debentures $0.799B 2010 to 2025 • Net Sr. Notes to TC $2.5B 1 Canadian dollars or U.S. dollar equivalent. At June 30, 2005, no borrowings existed under the Bank credit facilities. TCI may also borrow on the bank credit facility.

34. credit profile debt structure - maturities

35. credit profile bank credit facilities • 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 2008 • Facilities mature after 06/07 debt maturities • Replaced prior $1.6B committed facilities • Favourable changes to pricing & extended terms demonstrate strong liquidity position • No drawn amounts under either facility, at June 30, 2005

36. credit rating process, 2002 • Reactive to governance failures (e.g. Enron), stock market meltdown • Telecom industry bankruptcies - Worldcom, Teleglobe, Qwest • Agencies lost credibility, responded by rating more conservatively • Lack of transparency in rating methodologies and changing benchmark metrics • Short term focused analysis despite long term nature of debt • Poor communication & timing of announcements • US agencies had difficulty distinguishing the forest (US telecom industry) from the trees (TELUS/Cdn industry) • In case of TELUS, DBRS was notable in responsible approach to calming irrational credit concerns

37. leverage reduction - executed well ahead of plan • Year-end 2004 • Actual YE 2004 • Forecast of May 2002 • 2.1x • 2.5x • Net Debt: EBITDA • Net Debt: Capital • 48% • 55% • 18% • FCF1: Net Debt • 7% 1 Cash from operations after investing and dividends

38. credit rating process, 2004 - 2005 • Significantly improved analytical research including new reports e.g. Moody’s Liquidity Risk Assessment • Increased transparency including published reports on methodology and benchmark metrics • More focus on corporate governance e.g. Moody’s Comprehensive Corporate Governance Assessment • More detailed financial statement analysis & interpretation of results • Improved attention to quality and appropriateness of financial disclosure • Increased staffing and turnover at credit rating agencies

39. credit profile demonstrated credit improvement • Pre Jun-02 • Jun-05 Actual • Jun-02 Actual • Jun-03 Actual • Jun-04 Actual • 6,096 • Net Debt ($M) • 9,241 • 9,120 • 7,223 • 46.0% • Net Debt : Capital • 59.6% • 55.7% • 51.9% • 1.8x • Net Debt : EBITDA • 3.6x • 3.0x • 2.4x • 23% • FCF1 : Net Debt • (7)% • 4% • 16% • BBB/ • Baa2 • Credit Ratings2 • BBB/ • Ba1 • BBB/ • Ba1 • BBB/ • Baa3 • BBB+/hi • Baa2 112-month trailing Free Cash Flow 2 Subsequent to Q2 results release except pre Jun-02

40. credit profile current credit ratings TELUS Corporation (TC) DBRS BBB Stable Trend Fitch BBB Positive Outlook S&P BBB Positive Outlook Moody’s Baa2 Stable Outlook 100% TELUS Communications Inc. (TCI) DBRS BBB (high) Stable Trend Fitch BBB Positive Outlook S&P BBB Positive Outlook

41. leverage & credit spreads Net debt/EBITDA Spreads (bps) 750 500 250 0

42. 160 140 120 100 80 60 40 03-Jul-04 29-Jul-04 02-Jul-05 28-Jul-05 16-Apr-04 15-Oct-04 15-Apr-05 03-Jan-04 29-Jan-04 01-Jan-05 27-Jan-05 24-Feb-04 21-Mar-04 07-Jun-04 22-Feb-05 20-Mar-05 06-Jun-05 19-Sep-04 10-Nov-04 06-Dec-04 24-Aug-04 12-May-04 11-May-05 10-year comparable new issue spreads Receive investment grade rating by Moody’s (Baa3) Bid for Microcell Moody’s upgrades Telus by 1 notch to Baa2 DBRS affirms rating, S&P changes outlook to positive MTS 81 bps Credit Spread (bps) MTS announces Allstream bid TELUS 78 bps BCE 75 bps 23-Aug-05

43. comparative credit metrics • TELUS • BCE • As at June 30, 2005 • Holding company • no • yes • Net Debt : EBITDA • 1.8x • 1.8x • 44% • Net Debt : Book capitalization1 • 46% • 4% • FCF: Net Debt • 23% • A- • Ratings: S&P2 • BBB • A • DBRS • BBB • Baa1 • Moody’s • Baa2 • 75 bps • Notional 10-yr spread • 78 bps 1 Book capitalization defined as net debt plus minority interest and shareholders’ equity 2 S&P rating: TELUS has positive outlook, BCE has negative outlook

44. long-term financial policy targets • long term policy • Q2-05 • 46.0% • Net Debt : Capital • 45 to 50% •  • Net Debt : EBITDA • <2.2x • 1.8x •  • Minimum liquidity • >$1B • $2.7B •  • Credit rating • BBB+ to A- • BBB • 

45. why invest in TELUS? • TELUS Mobility • high proportion of consolidated revenue and cash flow • executing materially ahead of plan • TELUS Communications • good results relative to peers • revenue composite de-emphasizes LD • Strong 2005 cash flow & earnings outlook • Generating significant cash flow of >$1B, net debt reduction • TELUS has met or exceeded all leveragetargets

46. questions? 2005 investor relations 1-800-667-4871 TELUS.com ir@telus.com

47. appendix

48. TELUS Corporation TELUS Communications Inc. appendix intercompany financing1 As at June 30, 2005 Senior Notes: $4.5B Subordinated Note : $3.6B Senior Notes: $2.0B Subordinated Note: $3.2B 1 Excludes net advances owed from TC to TCI of $1.5B at June 30, 2005

49. appendix TELUS Communications Inc. key metrics 1 after restructuring & workforce reduction costs

50. appendix Comparative credit ratios, using total debt • TELUS1 • BCE • Bell Canada • MTS • 50.2% • Total Debt : Book Capitalization • 44.6% • 50.9% • 40.2% • 2.2x • Total Debt : EBITDA • 1.8x • 1.6x • 1.4x • 5.4 • EBITDA : Total interest • 7.8 • 8.6 • 11.5 • 16% • FCF : Total Debt • 4% • 4% • 3% • BBB/ • Baa2 • Credit Rating • A-/ • Baa1 • A/ • A3 • BBB+ Source: CIBC World Markets debt research, August 18, 2005 1 Measured using net debt instead of total debt, TELUS’ net debt to capital ratio is 46.0%, net debt to EBITDA is 1.8x, and FCF to net debt is 23%