1. annual general meeting 2004

2. Robert McFarlane EVP & Chief Financial Officer

3. 3  2003 financial highlights  2004 first quarter review  2004 targets  Securities price performance  Summary agenda

4. 4 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’ 2004 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. all dollars in C$ unless otherwise specified forward-looking legal disclaimer

5. 2003 financial highlights

6. 6 TELUS Consolidated 2003Change Revenue$7.15 billion  2.0% EBITDA 1 $2.84 billion  13% Net Income$332 million  $561 million EPS$0.92  $1.67 1 EBITDA excluding restructuring & workforce reduction costs. significant increase in profitability ahead of plan 2003 highlights

7. 7 TELUS Consolidated 2003Change Capex$1.25 billion  26% Capex Intensity 1 18%  6.7 pts Cash Flow (EBITDA less capex) $1.6 billion  94% healthy reduction in capex drove strong cash flow increase 1 Ratio of capex to total revenue. 2003 highlights

8. 8 consolidated performance v. public targets 2003Initial Targets 1 Exceeded? Revenue$7.15 bil.$7.2 to 7.3 bil.  EBITDA 2 $2.84 bil.$2.7 to 2.8 bil. EPS$0.92$0.35 to 0.55 Capex$1.25 bil.~$1.5 bil. Free Cash Flow 3 $961 mil.$300 to 600 mil. Net Debt to EBITDA 2 2.6 times3.0 times 1 Provided on December 16, 2002. 2 Excluding restructuring & workforce reduction costs. 3 Before restructuring & workforce reduction payments. 2003 highlights

9. 2004 – first quarter review

10. 10 consolidated Change 1 Incl. restructuring & workforce reduction costs of $15.9 mil. & $6.5 mil. for Q1-04 & Q1-03, respectively. 2 Incl. impacts of tax settlements & related interest of approx. $0.04 & $0.15 in Q1-04 and Q1-03, respectively.  13%$101 mil.$90 mil.Net Income  7.7% $0.28$0.26EPS 2  3.6%$1.80 bil.$1.74 bil.Revenue  8.6%$721 mil.$664 mil.EBITDA 1 Q1-04Q1-03 2004 – first quarter review normalized EPS increase of $0.13 or 118%

11. 11 39% CommunicationsConsolidated 40% 38% Q1 EBITDA 1 margin expansion 2004 2003 1 Includes restructuring & workforce reduction costs; based on total revenue. achieved strong margin expansion Mobility 33% 39% Q1 2004 – first quarter review

12. 12 1 Ratio of capex to total revenue. 2 Free Cash Flow defined as: EBITDA (including restructuring & workforce reduction costs) less capex, net cash interest, net cash taxes, cash restructuring payments, and excess share compensation expense over share compensation payments.  66%$443 mil.$268 mil.Free Cash Flow 2  5 pts17%12%Capex Intensity 1  49%$310 mil.$208 mil.Capex ChangeQ1-04Q1-03 consolidated strong improvement in free cash flow generation 2004 – first quarter review

13. 13 ($ millions) 268 443 Q1 66% significant  in free cash flow consolidated – free cash flow growth 2004 2003 2004 – first quarter review

14. 14 45 to 50% (long term) 52.9%56.7%Net Debt : Capital Q1-04TargetsQ1-03 <2.2 times (long term) 2.5 times3.2 timesNet Debt : EBITDA 1 deleveraging significant  in cash flow resulted in strong progress on deleveraging 1 12-months trailing EBITDA figure. All periods exclude restructuring & workforce reduction costs to be consistent with covenant calculations. 2004 – first quarter review

15. 15 communications segment Q1-04Change($ millions)Q1-03  3.1% 1,1711,209External Revenue 1 1 Normalizing to exclude asset disposition impact of $10.8M in Q1-03, revenue declined 2.2%. 2 Based on total revenue. 3 Includes restructuring & workforce reduction costs. 4 Ratio of capex to total revenue.  2.5% 474486 EBITDA 3  9 pts 22%13%Capex Intensity 4  36%214332Cash Flow (EBITDA less capex)  69% 259154Capex  3.2%723746Operating Expenses 2 revenue softness partially offset by expense reduction 2004 – first quarter review

16. 16 (thousands) Q1-03Q1-04Change Network Access Lines4,9134,848  1.3% High-Speed Net Adds3244  36% High-Speed Subscribers442605  37% Total Internet Subscribers814914  12% communications segment significant growth in high-speed net adds & subscribers 2004 – first quarter review

17. 17 ($ millions)Q1-03Q1-04 Change External Revenue532633  19% EBITDA179248  39% Capex5450  7.4% Capex Intensity 1 10%8%  2 pts Cash Flow (EBITDA less capex) 124198  $73M 1 Ratio of capex to total revenue. mobility segment outstanding results across the board 2004 – first quarter review

18. 18 Q1-03Q1-04Change Subscribers3.1 mil.3.5 mil.  14% Net Adds (thousands) 6776  14% Avg. Revenue Per Unit (ARPU)$54$57  5.6% Churn1.53%1.49%  4 bps mobility segment focus on profitable growth & quality of service yields outstanding ARPU & Churn 2004 – first quarter review

19. 2004 targets

20. 20 2004 revised guidance original 2004 target 1 revised 2004 guidance 2 Communications Revenue$4.8 to 4.85 bil.$4.7 to 4.8 bil. EBITDA$1.975 to 2.025 bil.$1.925 to 1.975 bil. Non-ILEC Rev.approx. $610 mil.$550 to 575 mil. Non-ILEC EBITDAapprox. $5 mil.$(20) to (30) mil. Mobility EBITDA$975 mil. to $1.025 bil.$1.0 to 1.05 bil. Consolidated EPS$1.05 to 1.25 $1.10 to 1.30 1 Provided on our December 18, 2003. 2 May 5, 2004. 2004 targets

21. 21 2004 consolidated guidance summary 1 Includes approximately $30 mil. in restructuring & workforce reduction costs. 2 Defined as: EBITDA less: capex, cash interest, cash taxes, cash restructuring & stock compensation.  2% approx. $1.225 bil.Capex  20 to 40%$1.10 to 1.30EPS  5 to 8% Change EBITDA 1 Revenue 2004 outlook $2.95 to 3.05 bil. $7.45 to 7.55 bil.  34 to 46%Free Cash Flow 2 $1.13 to 1.23 bil.  4 to 6%  0.1 times or moreNet Debt to EBITDA 2.5 times or less 2004 targets reflect strong earnings & cash flow growth 2004 targets

22. 22 securities price performance  Common shares up [20]% since last annual meeting (April 2003)  Publicly traded notes have exhibited similar strength  trading above 2001 issue price at significantly tighter spreads

23. 23 renewed bank credit facilities for $1.6 billion  We have received commitments for:  364-day extendible stand-by credit facility for $800 million  new 4-year revolving term facility for $800 million  Replaces $2.1 billion facility  Favourable changes to terms  4-year term supports strong liquidity position  Strong bank support throughout process

24. 24 summary 2003:  Strong results exceeded 5 of 6 consolidated targets 2004:  TELUS Mobility  outstanding results  TELUS Communications  challenging environment  Revising earnings guidance up  Greater than $1.1 billion of free cash flow leading the way

25. annual general meeting 2004