2005 guidance update & 2006 targets December 16, 2005 Robert McFarlane

1. 2005 guidance update & 2006 targets December 16, 2005 Robert McFarlane EVP & Chief Financial Officer

2. forward-looking statements This presentation and answers to questions contain forward-looking statements that require assumptions about expected future events including competition, financing, financial and operating results and targets that are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward looking statements will not prove to be accurate. Factors that could cause actual results to differ materially include but are not limited to: economic growth; competition; financing and debt requirements (including share repurchases); tax matters; human resources (including the ongoing impact of introducing the new collective agreement and return to work on operating expenses, customer service and revenue); business integrations; pension performance, funding and expenses; technology (including reliance on systems and information technology); regulatory developments; process risks (including conversion of legacy systems); health and safety; litigation; business continuity events (including man-made and natural threats); and other risk factors discussed herein and listed from time to time in TELUS’ reports. For additional information on potential risk factors and assumptions, see TELUS’ 2004 Annual Report, updates in 2005 quarterly interim reports and other filings with securities commissions in Canada and the United States.

3. Agenda • 2005 guidance update • Recent developments • 2006 targets • 2006 priorities • Summary • Questions and answers

4. 2005 guidance changes • previous 2005 guidance1 • updated 2005 guidance2 • Consolidated • EBITDA3 • $3.250 to 3.325B • $3.275 to 3.325B • Wireline • Non-ILEC revenue • $625 to 650M • $625 to 635M • EBITDA3 • $1.800 to 1.875B • $1.840 to 1.865B • High speed net adds • approx. 65K • >65K • Wireless • Wireless net adds • > 525K • > 550K 1 Provided November 10, 2005. 2 Provided December 16, 2005 3 Updated guidance includes estimated restructuring & workforce reduction costs of approx. $50M

5. 2005 wireless guidance summary • original 2005 targets1 • updated 2005 guidance2 • On track  • Revenue • $3.2 to $3.25B • $3.275 to 3.3B  • EBITDA • $1.35 to $1.40B • $1.425 to $1.450B  • Capex • $350 to 400M • approx. $400M  • Wireless Net Adds • 425 to 475K • >550K 1 Provided December 17, 2004 2 Provided December 16, 2005

6. 2005 wireline guidance summary • original 2005 targets1 • updated 2005 guidance2 • On track  • Revenue • $4.7 to $4.75B • $4.825 to $4.85B • Non-ILEC Revenue • $600 to $650M  • $625 to 635M • EBITDA3 • $1.85 to $1.90B ~ • $1.84 to $1.865B • Non-ILEC EBITDA • $0 to $10M  • $15 to 20M • Capex • $950M to $1.0B  • approx. $900M • High-Speed Net Adds • approx. 100K  • >65K 1 Provided December 17, 2004 2 Provided December 16, 2005 3 Original target Included restructuring & workforce reduction costs of approx. $100M, vs. approx. $50M for updated guidance

7. 2005 consolidated guidance summary • On track • original 2005 targets1 • updated 2005 guidance2  • Revenue • $7.9 to 8.0B • $8.1 to 8.15B  • EBITDA3 • $3.2 to 3.3B • $3.275 to 3.325B  • EPS • $1.65 to 1.85 • $1.90 to 2.00  • Capex • $1.3 to 1.4B • approx. $1.3B • Free Cash Flow • $1.2 to 1.3B  • $1.4 to 1.5B 1 Provided on December 17, 2004 2 Updated or reaffirmed December 16, 2005 3 Original target included restructuring & workforce reduction costs of approx. $100M, vs. approx. $50M for updated guidance

8. corporate priorities for 2005  • Enhance our leadership position in wireless • Accelerate wireline performance in ON & PQ • Reach a new collective agreement • Grow brand value through superior customer experience • Leverage investments in high speed Internet • Drive continual improvements in productivity   ongoing TTV phased launch underway ongoing

9. recent developments Wireless-wireline merger rationale • Advance our industry leading strategy • Achieve meaningful commercial differentiation in the market • Capitalize technology convergence of wireless and wireline • Drive continued operating efficiency and effectiveness • One team, united behind one strategy, • defined by one brand Separate wireless and wireline reporting to continue

10. TELUS executive leadership team structure JANETYALE EVP Corporate Affairs EROS SPADOTTO EVP Technology Strategy JUDY SHUTTLEWORTH EVP Human Resources ROBERT MCFARLANE EVP & Chief Financial Officer KEVIN SALVADORI EVP Business Transformation & CIO JOE GRECH EVP Network Planning & Operations KAREN RADFORD EVP & President Partner Solutions & TELUS Quebec JOE NATALE EVP & President Business Solutions JOHN WATSON EVP & President Consumer Solutions DARREN ENTWISTLEPresident & CEO TELUS Mobility merged into customer facing structure

11. 2006 targets

12. 2006 target considerations (1 of 2) • 3.1% GDP growth consistent with Conference Board of Cda • Increased competitive activity from cable-TV, VoIP players • Wireless industry penetration growth similar to 2005 • Assume price cap regulatory regime extended for all of 2006 • $100M of restr. & workforce reduction costs (~$50M in 2005) • Pension expense increase of ~$40M in 2006 (Discount rate 5.25% vs. 6.0% in 2005)

13. 2006 target considerations (2 of 2) • Effective tax rate of approximately 35% • Avg. shares outstanding of 340 to 350M shares depending on NCIB and option exercises • new Normal Course Issuer Bid (NCIB) announced today • Review of tax position indicates cash tax payments expected to be deferred to 2008, from 2007

14. 2006 wireless revenue target ($B) 3.775 to 3.825 ~3.288 2005E1 2006E • 1 Midpoint of 2005 guidance

15. 2006 wireless subscriber net additions target >5.04M >4.49M >550K net adds >550K net adds 2005E 2006E

16. 2006 wireless EBITDA target ($B) 1.70 to 1.75 ~1.438 2005E1 2006E • 1 Midpoint of 2005 guidance

17. 2006 wireless capex target • 2005E • 2006E • Revenue • $3.275 to 3.30B • $3.775 to 3.825B • Capex • approx. $400M • approx. $450M • Capex intensity • approx. 12% • approx. 12%

18. 1 based on total revenue wireless cash flow yield trend • 2004 • 2005E • 2006E • 40.3% • EBITDA margin1 • ~44% • 45 to 46% • 12.5% • Capex intensity • ~12% • ~12% • 27.8% • Cash flow yield • ~32% • 33 to 34%

19. Source: Company reports, Morgan Stanley estimates wireless cash flow yield – N.A. peer comparison 2006E wireless EBITDA less capex / total revenue 33 to 34% 30% 26% 20% 15% 9% 8% TELUS BCE Rogers Verizon Wireless Sprint Nextel T-Mobile USA Cingular

20. profitability profile - wireless as % of consolidated EBITDA 2006E EBITDA less capex 2006E wireless 49% wireline 37% wireless 63% wireline 51% $3.5 to 3.6B $2.0 to $2.05B

21. 2006 wireline revenue target ($B) 4.825 to 4.875 ~4.838 2005E1 2006E • 1 Midpoint of 2005 guidance

22. 2006 wireline EBITDA target ($B) wireline EBITDA after restructuring wireline EBITDA before restructuring 1.9 to 1.95 ~1.903 ~1.853 1.8 to 1.85 2005E1 2006E2 2005E1 2006E2 • 1 Midpoint of 2005 guidance. Restructuring & workforce reduction costs of approx. $50M in 2005 • 2 Restructuring & workforce reduction costs of approx. $100M in 2006

23. 2006 non-ILEC wireline revenue & EBITDA target Revenue ($M) EBITDA ($M) 650 to 700 ~630 25 to 40 ~18 2005E1 2006E 2005E1 2006E • 1 Midpoint of 2005 guidance

24. 2006 high-speed Internet subscriber target >855K >755K >100K net adds >65K net adds 2005E 2006E

25. 2006 wireline capex target ($B) 1.05 to 1.1 ~0.9 2005E 2006E

26. TELUS Consolidated 2006 revenue & EBITDA targets Revenue ($B) EBITDA ($B) 8.6 to 8.7 ~8.1 7.6 7.1 3.5 to 3.6 ~3.3 3.1 2.8 2003 2004 2005E1 2006E 2003 2004 2005E1 2006E • 1 Midpoint of 2005 guidance

27. TELUS Consolidated EPS target ($) 2.40 to 2.60 ~1.95 1.58 0.92 2003 2004 2005E1 2006E • 1 Midpoint of 2005 guidance

28. TELUS Consolidated 2006 EPS continuity $2.40 to 2.60 17¢ 0 to 7¢ 32 to 50¢ 9¢ 7¢ ~$2.05 ~22¢ 9¢ ~$1.95 21¢ redemption & litigation tax labour disrup. EBITDA Growth interest expense restruct. costs pension expense other 2005E1 2005E normal. 2006E non-recurring • 1 Midpoint of 2005 guidance.

29. TELUS Consolidated 2006 free cash flow target ($B) 1.55 to 1.65 ~1.45 1.30 0.84 2003 2004 2005E1 2006E • 1 Midpoint of 2005 guidance

30. TELUS consolidated 2006 consolidated targets summary • 2006 targets • change • Revenue • $8.6 to 8.7B •  6 to 7% • EBITDA1 • $3.5 to 3.6B •  6 to 9% • EPS • $2.40 to 2.60 •  23 to 33% • Capex • $1.50 to 1.55B •  15 to 19% • Free Cash Flow • $1.55 to 1.65B •  7 to 14% 1Including restructuring & workforce reduction costs of approx. $50M in 2005 and $100M in 2006

31. TELUS consolidated return of capital - share buy back update • Q4-051 • Since inception 1 Repurchases up to and including December 15, 2005

32. 2005 return of capital - comparables 8.3% Share Repurchase Dividend 6.4% 6.2% 1.1% 5.1% 5.8% 4.8% 4.2% 2.7% 6.4% 0.4% 5.1% 5.1% 4.8% 4.2% 2.5% 2.3% TELUS MTS AT&T(SBC) Verizon BCE Bellsouth Alltel Source: Company reports and filings. Note: Share repurchases based on LTM. Dividend yield based on current annualized dividend.

33. TELUS Consolidated return of capital summary • Completed $1.6B early debt redemption on Dec. 1, 2005 • Announced in November 38% quarterly dividend increase to 27.5 cents per share, for Jan. 1, 2006 payment • Consistent with dividend payout ratio guideline of 45 to 55% of sustainable net earnings • New 24 million share NCIB effective Dec. 20, 2005 • Authorized to repurchase up to 12M common and 12M non-voting (up to 7.1% of total shares outstanding)

34. Key priorities for 2006 • Advance TELUS’ leadership position in the Consumer, Business and Wholesale markets • Drive improvements in productivity and service excellence • Strengthen the spirit of the TELUS team and the brand • Develop the best talent in global communications industry

35. Summary • 2005 outlook revised for non-ILEC revenue, wireline and Consolidated EBITDA, and increased high speed Internet and wireless net additions • 2006 targets reflect: • Strong revenue growth • EBITDA growth driven by Mobility • Significant EPS growth driven by strong EBITDA growth, and lower financing and tax costs • Significant FCF generation • Continued subscriber growth

36. questions? 2006 targets call investor relations 1-800-667-4871 TELUS.com ir@telus.com

37. appendix

38. appendix definitions • EBITDA: Earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization • Capital intensity: capex divided by total revenue • Cash flow: EBITDA less capex • Free Cash Flow: EBITDA, adding Restructuring and workforce reduction costs, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, and cash restructuring payments

39. TELUS consolidated free cash flow • 2006E • ($M) • EBITDA • $3,500 to 3,600 • Capex • (1,500 to 1,550) • Net Cash Interest • ~(500) • 50 to 100 • Other1: • Free Cash Flow • $1,550 to 1,650 • 1 Restructuring expense (net of cash payments), non-cash share based compensation, & net cash tax recoveries