1

2005CIBC Telecom & Cable

Fixed Income Conference September 15, 2005

Robert McFarlaneEVP & Chief Financial Officer

2 all dollars in C$ unless otherwise specified

forward-looking statementsThis 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 TELUSBest 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

Executing strategy drives data and wireless to 58% of revenue

$7.9B

Voice

TELUS Mobility

Data

30%

39%

19%

12%LD

12 ME Q2-05 12 ME Q2-00

$5.7B

49%

18%

10%

LDTELUS Mobility

Voice

23%

Data

6

$1.3B

82%

18%

12ME Q2-05

$2.0B

12ME Q2-00

TELUSCommunications

TELUSCommunications

TELUSMobility

TELUSMobility

Consolidated cash flow1 profile evolution

53%

47%

1 EBITDA less Capex

Generating nearly half of consolidated cash flow from wireless

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

2005 priorities build off success from 2004

TELUS Mobility wireless segment

9

industry subscriber growth

5.1%4.4%Penetration gain

1.7M1.5MNet subscriber additions

32.0MPopulation 31.8M

15.6MCdn wireless market 13.9M

Q2-05Q2-04

48.9%43.8%Penetration

12ME

Source: Company reports, CWTA. Includes subscriber results for Bell Wireless Alliance,Rogers Wireless pro forma Microcell, and TELUS Mobility.

Canadian wireless market continues to grow at strong pace

34No. of national carriers

3.5%

1.2M

31.5M

12.4M

39.4%

4

Q2-03

10

subscriber results

Net adds up 11% & total subs up 15% with strong postpaid focus

net additions

YTD Q2-04

YTD Q2-05

190K211K

4.1 M

total wireless subscribers

postpaid82%

prepaid18%

3.4 M

0.7 M

Mobility segment

postpaid

prepaid

11

Source: Company reports

TELUS Mobility Rogers Wireless1 BCE Wireless

$58

$46$48

$60

$50$48

YTD Q2-04

YTD Q2-05

1 Pro forma Microcell

Maintaining 20% ARPU premium with positive industry trend

industry ARPU

Mobility segment

12

$3,000

$389

1.60%

13%

TELUS Mobility subscriber economics best in Canada

$2,300Lifetime revenue

$377COA per gross addition

2.12%Blended churn

BCERogers

profitable subscriber growth

COA / Lifetime revenue 16%

$4,300

$348

1.41%

TELUS

8%

YTD Q2-05

Mobility segment

13 Continued double digit revenue, earnings & cash flow growth

31%530405Cash Flow (EBITDA less capex)

36%174129Capex

32%704534EBITDA1

19%1,5551,309Revenue

ChangeYTD

Q2-05YTD Q2-04

1 Earnings before interest, taxes, depreciation and amortization

($M, except margin)

Mobility segment

financial results

4.4pts44.9%40.5%EBITDA margin (total rev.)

14

industry subscriber & EBITDA growth

1.7M

12ME Q2-05 net additions

Source: Company reports. EBITDA is sum of reported EBITDA for BCE, Rogers Wireless p.f. Microcell, and TELUS Mobility.

TELUSMobility

32%

Capturing disproportionate share of Canadian industry EBITDA growth

$814M

12ME Q2-05 EBITDA growth

TELUSMobility

42%

15 North American leader in wireless cash flow yield

6%26%34%Cash flow yield (total rev.)

25%13%11%Capex intensity (total rev.)

31%39%45%EBITDA margin (total rev.)

US avg.Other CdnTELUS

wireless cash flow yield

YTD Q2-05

Source: Company reports. Merrill Lynch for US averages

Mobility segment

16 Highest YTD cash flow yield in North America

Mobility segment

leading North American performance

YTD cash flow yield of 8 national wireless companies (%)

Source: Company reports

TELUS Rogers Wireless

CingularBCE Nextel Sprint Verizon

34%

30%

21%

17% 16%15%

5%

(25)%

T-Mobile

TELUS Communications wireline segment

18 Wireline revenue growth driven by data, and stable LD

9.0%131144Other

11%757686Data

0.7%455458Voice – Long Distance

2.1%1,0961,073Voice – Local

ChangeYTD

Q2-05YTD

Q2-04

External Revenue $2,360 $2,439

($M)

Communications segment

revenue profile

3.3%

19

Q2-04 Q3-04 Q4-04 Q1-05

-1.4%-1.2% -1.3% -1.1%

NALs impacted by various competitive offerings, large wholesale business account loss in Q2 & ongoing wireless substitution

% of network access lines lost, YoY

network access line results

Communications segment

Q2-05

-1.8%

-1.5%

20

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05

long distance revenues

Communications segment

Canadian industry quarterly CAGR comparison

TELUS

BCE

MTS/Allstream

TELUS has adopted a differentiated approach to LD pricing

21

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05

data revenues

Communications segment

TELUS

BCE

MTS/Allstream

Canadian industry year over year data growth

Industry and TELUS data growth evident in last few quarters

BCE’s Q2-05 organic data growth >1%

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high speed Internet subscriber growth

35%

30%

39%

TELUS high-speed market share1

Q2-03Q2-02 Q2-04

1 In ILEC operating areas

990K

total Internet subscribers

High-speed74%

Dial-up26%

729K

261K 40%

Q2-05

High speed subscriber base up 17%

Communications segment

23 22% revenue growth & three straight quarters of positive EBITDA

non-ILEC revenue & EBITDA

Communications segment

YTD Q2-04

YTDQ2-05

259

315

YTDQ2-04

YTDQ2-05

(23)11

EBITDArevenue($M)

TELUS Consolidated

25 Strong increases in revenue, earnings & free cash flow

$656M $682MCapex

58%$0.76 $1.20EPS1

14%$1.72B$1.51BEBITDA

8.8%$3.67B $3.99BRevenue

Change

YTDQ2-05

YTD Q2-04

financial results

1 Including favourable impacts for tax settlements of $0.17 YTD Q2-04 & $0.15 YTD Q2-05

TELUS consolidated

4.0%

$673M $774MFree Cash Flow 15%

26 Capital intensity stable per expectations

capital intensity1

TELUS consolidated

Mobility

YTD Q2-04

YTD Q2-05

10% 11%

Communications

YTD Q2-04

YTD Q2-05

22%20%

Consolidated

YTD Q2-04

YTD Q2-05

18%17%

1 Capital expenditures as a % of total revenue

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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

TELUS has repurchased 59% of share permitted under NCIB

convertible debentures & NCIB update

TELUS consolidated

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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

TELUS moving to settlement through collective bargaining process whereas TWU set on 3rd party intervention

labour relations update

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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

Nationally, >70% of TELUS employees on the job serving customers

Credit profile

31

total & net debt overview

$6.27Total debt

$ (billions) As at June 30, 2005

0.96Plus: Cross currency hedge liability1

Net debt of $6.1B

7.23Subtotal: Gross debt

1.14Less: Cash

$6.10Net debt

1 Associated with U.S. dollar denominated debt

credit profile

32

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

debt overview

credit profile

$1.1B in cash on June 30, 2005 balance sheet

1 As at June 30, 2005

33

credit profile

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.

current debt structure

TELUS Corporation

MaturityBank1 - 3 Year $0.8B revolver May 2008 - 5 Year $0.8B revolver May 2010C$ 7.5% Notes $1.6B June 2006US$ 7.5% Notes C$1.8B June 2007US$ 8.0% Notes C$3.0B June 2011

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

100%

Debt structure simplified with 86% of total debt at TELUS Corp.

34

Debt Maturity Schedule

0

1,000

2,000

3,000

4,000

H2-05 2006 2007 2008 2009 2010 2011 2012+

C$ millions

Cash on hand and strong free cash flow generation significantly reduce refinancing required in 2006/2007

credit profile

debt structure - maturities

35

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

TELUS’ liquidity position is strong

bank credit facilities

credit profile

36

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

credit rating process, 2002

Rating agencies were reactive and, for some, changes were short term focused and poorly communicated

37

leverage reduction - executed well ahead of plan

FCF1: Net Debt

Net Debt: EBITDA

7%

2.5x

55%

Forecast of May 2002

18%

2.1x

48%

Actual YE 2004

Year-end 2004

Net Debt: Capital

1 Cash from operations after investing and dividends

2004 actuals well ahead of May 2002 forecast provided to agencies as part of annual review

38

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

credit rating process, 2004 - 2005

Rating agency process has improved since crisis in 2001/2002

39

BBB/Baa2

16%4%(7)%FCF1 : Net Debt

2.4x 3.0x3.6xNet Debt : EBITDA

51.9%55.7%59.6%Net Debt : Capital

BBB/Ba1

9,120

Jun-03 Actual

BBB/Baa3

BBB/Ba1

Credit Ratings2

7,2239,241Net Debt ($M)

Jun-04 Actual

Jun-02 Actual

demonstrated credit improvement

112-month trailing Free Cash Flow2 Subsequent to Q2 results release except pre Jun-02

credit profile

23%

1.8x

46.0%

6,096

Jun-05 Actual

Significantly enhanced credit metrics, but not ratings

BBB+/hiBaa2

Pre Jun-02

40

current credit ratings

TELUS Corporation (TC)DBRS BBB Stable Trend

Fitch BBB Positive Outlook S&P BBB Positive Outlook

Moody’s Baa2 Stable Outlook

TELUS Communications Inc. (TCI)DBRS BBB (high) Stable TrendFitch BBB Positive OutlookS&P BBB Positive Outlook

100%

credit profile

Positive rating/outlook changes by most agencies in 2005, but still TELUS ratings do not properly reflect credit improvement

41

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5C$ 7.5% 2006 US$ 7.5% 2007 US$ 8.0% 2011

leverage & credit spreads

Credit rating incompatible with credit enhancement

0

250

500

Net debt/EBITDA Spreads (bps)

750

42

40

60

80

100

120

140

160

03-J

an-0

4

29-J

an-0

4

24-F

eb-0

4

21-M

ar-0

4

16-A

pr-04

12-M

ay-0

4

07-J

un-04

03-J

ul-04

29-J

ul-04

24-A

ug-04

19-S

ep-0

4

15-O

ct-0

4

10-N

ov-04

06-D

ec-0

4

01-J

an-0

5

27-J

an-0

5

22-F

eb-0

5

20-M

ar-0

5

15-A

pr-05

11-M

ay-0

5

06-J

un-05

02-J

ul-05

28-J

ul-05

23-A

ug-05

Cre

dit

Spr

ea

d (

bp

s)10-year comparable new issue spreads

Receive investment grade rating by Moody’s (Baa3)

Bid for Microcell

MTS announces Allstream bid

Moody’s upgrades Telus by 1 notch to Baa2

TELUS spreads have narrowed versus Cdn peers as market recognizes TELUS’ improved metrics

TELUS 78 bps

BCE 75 bps

MTS 81 bps

DBRS affirms rating, S&P changes outlook to positive

43

comparative credit metrics

1.8x1.8xNet Debt : EBITDA

BCEAs at June 30, 2005 TELUS

44%46%Net Debt : Book capitalization1

TELUS leverage ratios similar to BCE’s yet TELUS rated lower

4%23%FCF: Net Debt

A-BBBRatings: S&P2

ABBB DBRSBaa1Baa2 Moody’s

75 bps78 bpsNotional 10-yr spread1 Book capitalization defined as net debt plus minority interest and shareholders’ equity2 S&P rating: TELUS has positive outlook, BCE has negative outlook

yesnoHolding company

44

1.8x

long-term financial policy targets

45 to 50%Net Debt : Capital

long term policy

<2.2x Net Debt : EBITDA

Q2-05

46.0%

Meeting long term financial policy targets has not yet resulted in target credit ratings

BBB BBB+ to A-Credit rating

$2.7B >$1BMinimum liquidity

45

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 leverage targets

why invest in TELUS?

Solid investment grade credit with potential for continued upgrades

46

2005

questions?

investor relations1-800-667-4871

TELUS.comir@telus.com

47

appendix

48

intercompany financing1

TELUSCorporation

TELUS Communications Inc.

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

As at June 30, 2005

TELUS Corporation has a net $2.5B senior claim at TCI thereby mitigating structural subordination concerns

appendix

49

TELUS Communications Inc. key metrics

Q2-05(12 months ended)

Net Debt : Total Capitalization 38.0%

Net Debt : EBITDA1 1.1x

Net Debt ($M) 4,139

1 after restructuring & workforce reduction costs

appendix

50

BBB/Baa2

11.5 8.67.8EBITDA : Total interest

3%4%4%FCF : Total Debt

1.4x 1.6x1.8xTotal Debt : EBITDA

40.2%50.9%44.6%Total Debt : Book Capitalization

A/A3

Bell Canada

BBB+A-/Baa1

Credit Rating

MTSBCE

Comparative credit ratios, using total debt

5.4

16%

2.2x

50.2%

TELUS1

Canadian telco credit metrics

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%

appendix

51

Labour relations - 2005 legal ruling summary Feb 2 - CIRB ruled in TELUS favour and overturned its year old ruling

ordering TELUS into binding arbitration. Apr 22 - TWU allegations challenging TELUS’ ability to implement

lockout measures dismissed by Federal Court of Appeal (FCA) Apr 24 - TWU application at CIRB seeking to prevent TELUS from

implementing its lockout measures on Apr 25 dismissed Jun 30 – Supreme Court of Canada denied TELUS’ leave to appeal

CIRB decision denying TELUS Mobility East employees a vote on whether to be unionized

Jul 21 – CIRB dismissed TWU allegations regarding improper lockout and company communications (CIRB did find TELUS failed to bargain re: former Clearnet and QuebecTel Mobilite employees)

Jul 23 – BC Court grants sweeping injunction against TWU impeding access to Company and customer locations

appendix

52

Labour relations - 2005 legal ruling summary Jul 25 – TWU loses appeal to FCA to overturn Feb. CIRB ruling that

returned both sides into collective bargaining process Jul 27 – AB Court grants TELUS injunction against posting website

images and against TWU impeding access to Company and customer locations

Jul 29 – BC Court grants TELUS injunction prohibiting posting website images, TWU intimidation, and blocking entrances by pickets

Aug 5, 24 - BC Court grants further protections re: picketing activities

appendix

53

Apr 13 – Company tabled Offer to the TWU Apr 18 – Company declared negotiations to be at an impasse

and delivered first notice of lockout to TWU Apr 21 – terms and conditions of the Offer communicated to

bargaining unit team members Apr 25 – Company began implementing numerous soft lockout

measures May to July – TELUS continued escalating lockout measures;

TWU responded with overtime ban and work-to-rule campaign Jun 14 – TELUS provided addendum to offer, which provided

additional benefits Jun 22 – TWU tabled its counter proposal

Labour Relations – summary of events

appendix

54

Jun 24 – TELUS rejected counter proposal Jul – TWU began rotating strike activity (“study sessions”) to

which Company normally imposed short lockouts to participants Jul 12 – TELUS informed TWU, it would commence

implementation of its comprehensive offer on July 22 - TWU further escalated rotating strike activity

Jul 21 – TWU initiated full scale strike and Company implemented contingency plan

Jul 22 – Phase I of Company’s Offer implemented Aug 28 – Phase II of Offer implemented incl. 50% of certain

retroactive lump sum payments, plus 2005 wage increase for those AB unionized employees who continue to work

Labour Relations - summary of events (cont’d)

appendix

55

framework for medium term growth

Price Cap Regulatory Framework

Competitive Intensity

Technological Substitution + +

Non-ILEC Growth

Future Friendly

Home

Organization Effectiveness+ +

Strive to hold wireline EBITDA (before restructuring) flat over medium term

=

Growth in revenues and EBITDA from large exposure to wireless business

Continued improvements in consolidated results

Growth Opportunities Challenges

Short-term dilutive

Wireline

appendix

56

TELUS 2004 AR ranked 2nd in the World by Corporate Essentials, “Annual Report of Annual Reports” – Aug. 2005

10 years of disclosure excellence in corporate reporting awards by Canadian Institute of Chartered Accountants

2003 annual report rated best in Canada – Dec. 2004

Best Investor Relations website – large cap - Feb. 2005

TELUS Board ranked 3rd best in Canada by Canadian Business magazine – Aug. 2005

Member of Dow Jones Sustainability Index, only North American telco

e.ComReport Watch

Excellence in disclosure & governanceappendix