1st quarter 2003 review

Robert McFarlaneEVP & Chief Financial Officer

2

2003 Q1 review – consolidated

Q1-02 Q1-03 change

Revenue $1.70B $1.74B 2.5%

EBITDA1 $589M $671M 14%

Net Income/(Loss) ($0.8M) $91M $92M

EPS

EPS normalized for tax savings

($0.01)

($0.01)

$0.26

$0.11

$0.27

$0.12

strong EBITDA & tax savings drive significant profitability improvement ahead of expectations

1 Excludes restructuring & workforce reduction costs

$0.15 dividend per share declared for July 1, 2003

3

2003 Q1 review – consolidated

1 Ratio of capex to total revenues2 EBITDA less capex, cash interest, cash taxes, cash dividends; excludes restructuring &

workforce reduction costs

Q1-02 Q1-03 change

Capex $406M $208M 49%

Capex Intensity1 24% 12% 12pts

Free Cash Flow2 $101M $376M $275M

$275M improvement in free cash flow generation

4

2003 Q1 review – free cash flow($M) Q1-03

EBITDA1 $670.8

Capex ($207.8)

Cash Interest ($36.0)

Cash Taxes2 ($6.5)

Cash Dividends ($44.8)

Free Cash Flow $375.7

Working Capital/Other3 ($46.9)

Non-Public Share Issuance $20.1

Cash Restructuring Costs ($153.9)

Reduction in debt $195.0

1 Before restructuring and workforce reduction costs2 $0.6M as per supplemental disclosure to cash flow statement plus $5.9M in ITCs already

included in EBITDA3 Including sale of accounts receivable ($21M)

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($M) Q1-02 Q1-03 change

External Rev.1 1,251 1,209 3.4%

EBITDA 467 492 5.5%

Capex 309 154 50%

Cap. Intensity2 24% 13% 11pts

Cash Flow3 158 339 115%

2003 Q1 review – Communications segment

1 Excludes intersegment revenues2 Ratio of capex to total revenues3 EBITDA less capex

operational & capital efficiency gains driving improved cash flow

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2003 Q1 review – Mobility segment

($M) Q1-02 Q1-03 change

Revenue 447 532 19%

EBITDA1 123 179 46%

Capex 97 54 44%

Capex Intensity2 22% 10% 12pts

Cash Flow3 26 124 $99M

significant profitability & cash flow growth

1 Q1-02 includes $21.0M clarification of provincial sales tax legislation related to wireless equipment subsidies

2 Ratio of capex to total revenues3 EBITDA less capex

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2003 Q1 review – consolidated

Q1-02 Q1-03 Target

Net Debt : Capital 58.0% 55.7% 50% long term

Net Debt : EBITDA 3.5X 3.2X 3.0X in Dec 2003

<2.7X in Dec 2004

significant credit enhancement underway

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bond price performanceTELUS Corporation Bonds

Daily Price Performance(April 30, 2002 - April 25, 2003)

$40

$55

$70

$85

$100

$115

Apr

-02

May

-02

Jun-

02

Jul-0

2

Aug

-02

Sep

-02

Oct

-02

Nov

-02

Dec

-02

Jan-

03

Feb

-03

Mar

-03

C$ 7.5% 2006 US$ 7.5% 2007 US$ 8.0% 2011

May 31 - Jul 11Credit ratings under

review:DBRS (May 31)

Moody's (Jun 14)S&P (Jul 11) Jul 29

Q2 results & increased disclosure

Nov 4Q3 results

Sep 12Equity offering & debt buyback

Dec 162003 targets release

Feb 14/03Q4 results

Jul 25Moody's downgrade

Apr 16/03Moody's outlook upgrade to stable

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announcement – credit facility renewal

364-Day revolving credit facility renewed

Combined bank facility now $2.1B

No material changes to terms

New maturity date May 2004

Renewal evidences strong capital market support

building on our financial strength

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2003 financial targets – consolidated

2002 actualoriginal 2003

target

change

Revenue $7.01B $7.2 to 7.3B 3 to 4%

EBITDA $2.52B $2.7 to 2.8B 7 to 11%

EPS ($0.75) $0.35 to 0.55 $1.10 to 1.30

Capex $1.7B approx. $1.5B $200M

FCF ($26M) $300 to 600M $326 to 626M

targeting significant EPS & FCF growth

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favourable tax settlement

Recorded $53M in savings in Q1-03 for settlement of tax matters:

$47M in recovered income taxes

$6M (after-tax) in reduced interest expense

approx. $200M in future income taxes receivable

Result:

Net income up $92M over Q1-03 to $91M

EPS increased ~$0.15

Cash tax now expected to be $175M in savings

Lower end of FCF guidance raised by $200M

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2003 targets – revised guidance

original 2003 target1

revised 2003 guidance3

Consolidated

EPS $0.35 to 0.55 $0.50 to 0.70

Free Cash Flow $300 to 600M $500 to 600M2

Mobility

Mobility Subs 400 to 450K approx. 350K

Mobility EBITDA $625 to 650M $675 to 700M

1 December 16, 2002 2 Revised on April 8, 2003 3 April 30, 2003

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summary

TELUS Communications – improving efficiencies

TELUS Mobility – excellent results

Significantly reducing capex intensity

Significant cash flow generation

Reducing debt & leverage = enhanced credit profile

Positive 2003 earnings outlook

delivering on our strategy

questions?

Investor Relations

1-800-667-4871telus.com ir@telus.com