Investor Meetings
March 2010
Agenda
Slide
 Strategic overview
3
 Wireless developments
7
 Wireline developments
19
 Financial review
 Summary
30
37
2
Strategic overview
Strategic focus on data and wireless
$9.6B
Revenue
$6.0B
Wireline LD
23%
Wireline
LD
Wireless
18%
Data
10%
Wireline Local
49%
Wireless
40%
6%
28%
Wireline
Local and
other
22%
20001
1 12
Wireline
Data
22%
Wireless
Data
9%
71%
20091
months ending June 30, 2000 and Dec 31, 2009, respectively
TELUS revenues up 60% since 2000
4
EBITDA evolution
$3.5B
$2.3B
Wireless
17%
Wireline
83%
Wireline
45%
20001
1 12
Wireless
55%
20091
months ending June 30, 2000 and Dec 31, 2009, respectively
Executing strategy drives wireless growth,
now 55% of operating profit
5
TELUS total customer connections
12.0
(millions)
Voice - Network Access Lines
Data - Internet and TV
Wireless
6.0
65%
Internet, TV
and wireless
24%
20001
1 12
20091
months ending June 30, 2000 and Dec 31, 2009, respectively
Client connections doubled since 2000
6
Wireless developments
TELUS launches Canada’s largest 3G+ network
 HSPA network launched November 5, 2009
 Service to more than 31 million Canadians
 Enabling wireless applications with fast download speeds
 Access to international roaming to more than 200 countries
 Clear strategic and competitive advantages
 Level playing field due to availability of latest smartphones
 Data growth
 International roaming revenues
TELUS to benefit from future global ecosystem, economies
of scale and enhanced roaming revenues
8
3G+ coverage (West)
Leapfrogged past
Rogers to have the
fastest and largest
HSPA+ network
Comparing HSPA/HSPA+ national networks as of January 2010: “fastest” according to tests of data throughput speeds in large Canadian urban centres and “largest”
based on geographic coverage and population covered.
*Manufacturer rated peak data download speeds of up to 21 mbps (HSPA+) and up to 14 mbps (HSPA). Compatible device required. Actual speed may vary by device
being used, topography and environmental conditions, network congestion, signal strength, and other factors.
Coverage area are approximate as of November 2009. Actual coverage and network service can vary and are subject to change. Map does not indicate CDMA or Mike
service coverage. Visit us at TELUS/mobility.com/coverage for our most recent coverage maps for all services.
3G+ coverage (East)
Comparing HSPA/HSPA+ national networks as of January 2010: “fastest” according to tests of data throughput speeds in large Canadian urban centres and “largest”
based on geographic coverage and population covered.
*Manufacturer rated peak data download speeds of up to 21 mbps (HSPA+) and up to 14 mbps (HSPA). Compatible device required. Actual speed may vary by device
being used, topography and environmental conditions, network congestion, signal strength, and other factors.
Coverage area are approximate as of November 2009. Actual coverage and network service can vary and are subject to change. Map does not indicate CDMA or Mike
service coverage. Visit us at TELUS/mobility.com/coverage for our most recent coverage maps for all services.
Wireless subscriber results
Total
net additions
Postpaid
Wireless subscribers1
1.2M
Prepaid
19%
148K
122K
81%
119K
Q4-08
109K
Q4-09
5.3M
6.5 million total
1 Opening balances for postpaid and total wireless subscribers for Q4-09 were reduced by 11K to reflect prior period reporting adjustments.
High quality postpaid net adds reflected 89%
of subscriber mix compared to 80% a year ago
11
Wireless data revenue
$243M
$203M
$131M
BlackBerry
Bold
Q4-07
Q4-08
Q4-09
Data growth of 20% driven by continued smartphone
adoption and to be enhanced with HSPA smartphones
12
Wireless marketing and retention
Q4-08
Gross adds (000s)
Q4-09
Change
441
431

(2.3)%
1.62%
1.60%

(0.02) pts
COA per gross add ($)
372
380

2.2%
COA expense ($M)
164
163

(0.6)%
Retention expense ($M)
105
133

27%
Churn
Note: Measurement of costs of acquisition and retention refined in 2009. Prior year comparisons restated.
Increased investments in retention
focused on continued smartphone adoption
13
Q4 smartphone mix
 Smartphone subscribers represent 20% of postpaid
base compared to 13% a year ago
 Post HSPA network & device launch on November 5:
 More than 40% of gross postpaid loading came from
smartphones
 More than 100% increase in retention subscriber
upgrades to smartphones
Smartphone subscriber base increased 61%
and expected to be a positive factor for future ARPU
14
TELUS launched iPhone 3GS
Running on Canada’s fastest and largest 3G+ network
Comparing HSPA/HSPA+ national networks as of January 2010: “fastest” according to tests of data throughput speeds in large Canadian
urban centres and “largest” based on geographic coverage and population covered.
15
TELUS’ simple and clear wireless pricing
 Fewer and simpler rate plans introduced Nov. 2009
 Clear Choice™ suite of consumer rate plans
 Clear and Simple™ business rate plans
 Designs based on feedback from Canadians
 Consistent with TELUS’ future friendly brand promise
 No SAF or carrier 911 fees
 General rate plan increase of $5 with basic voicemail 3
 Expect loading, churn and cost efficiency benefits
Simplified rate plan structure supports focus on AMPU
16
Strengthening wireless distribution
 2008 launch expanded mall distribution
 103 Koodo kiosks and growing
 Realising 77% awareness nationally
 93% in core demographic
 Earning industry recognition from J.D. Power and Associates:
“Highest in customer satisfaction with postpaid wireless service”
 In 2009, acquired 113 retail stores across Canada
 Most in premium mall locations
 72% are Ontario based
Providing flexibility to serve various customer needs
17
Building TELUS’ wireless distribution
2009 points of distribution
2000 points of distribution
Newfoundland
British
Columbia
323
265
Québec
Alberta
327
245
18
0
Manitoba
27
0
Saskatchewan
32
0
Ontario
547
30
267
0
5
0
P.E.I.
30
New 0
Brunswick
Nova
Scotia
40
0
 Wireless distribution augmented by Koodo launch and acquisition of Black’s
National distribution outlets doubled to 1,616
18
Wireline developments
review of operations – wireless
Wireline investments
 Supporting Future Friendly Home services with ongoing
wireline broadband capital investments
 Satellite TV service launched mid-2009
 Investing in operational efficiency
Supporting efficiency and new TELUS services
20
21
Broadband build update
 Expanded FTTN coverage to > 75% of households in top 48
communities in Western Canada at YE 2009
 Greater Vancouver coverage increased to >70% in Q4
 Expect coverage of up to 90% of households in top 48
communities in Western Canada by YE 2010
 Cost effective upgrade to VDSL2 technology underway
 Provides data download speeds of up to 30 Mbps
 Enables expanded IPTV coverage and features
 Continuing FTTH to new developments and FTTB to MDU’s
Continued ramp-up in broadband coverage
21
TELUS TV subscribers
TELUS TV
net additions1
TELUS TV
subscribers1
170K
33K
78K
15K
Q4-08
1
Q4-09
Q4-08
Q4-09
Includes both TELUS IP TV and TELUS Satellite TV subscribers
TTV continues to show strong results with net adds up 120%
and total subscriber base up 118%
22
Stabilized residential NAL losses
TELUS TV & high-speed Internet
Residential NAL’s
44K
34K
34K
31K
20K
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
-42K
-41K
-41K
-41K
-41K
In Q4/09 TELUS TV and Internet loading
exceeded residential NAL losses
23
24
Resilient network access line loss
Network Access Line losses vs. peers
Other
-3.6%
-4.7%
-4.5%
-5.5%
2008
2009
-9.7% -9.8%
-9.3%
-10%
Best performance by an incumbent in North America
25
Our opportunity - the future of TELUS TV
 Microsoft Mediaroom launched Feb. 2010 across various B.C. and
Alberta communities
 PVR Anywhere – record and watch on any connected TV
 Multiple TV’s in a home with multiple HD streams
 Superior picture quality
 Enhanced channel guide with picture in picture display
 Instantaneous channel changing
 Faster Internet speeds
Introduced innovative new features
that differentiates against cable-TV
25
Our opportunity on large enterprise deals
Investing in and focusing on key industry verticals
 Public sector
 Financial services
 Energy
 Healthcare
 Wholesale
National
Defence
Implementation track record led to contract wins
26
Enhancing our leadership position in healthcare







TELUS #1 Healthcare IT Company in Canada by Branham Group
2009 Canadian HealthCare Transformation Award (ITAC Health)
Emergis purchased January 2008
Electronic Health Records for 5 million Canadians
4.1 million Emergis Assure drug cards covering 8.5 million Canadians
3,000+ pharmacies using our pharmacy management software
Exclusive partner to host and operate Microsoft HealthVault in Canada
Leading the evolution of healthcare delivery in Canada
27
Investing in operational efficiency
$M
Restructuring
costs
2002
570
2003
28
2004
53
2005
54
2006
68
2007
20
2008
59
2009
190
2010E*
Total
Cumulative Cumulative annual
Restructuring EBITDA savings
costs
$1.2B
$1.1B
75
1,117
2002-2010E*
2002-2010E*
* See forward looking statement caution
Efficiency initiatives result in ~11K position net reductions
EBITDA savings help offset near term dilution of strategic initiatives
28
Operating efficiency - domestic FTE reductions
2,150
700
500
Q1-09
Approx.
1,000
550
400
Q2-09
Q3-09
Q4-09
2009
2010E*
2,150 domestic FTE reduction in 2009
Targeting approx. 1,000 FTE reduction in 2010
* See forward looking statement caution
29
Financial review
TELUS forward looking statements
This slide deck and our answers to questions contain statements about
expected future events and financial and operating performance of TELUS
that are forward-looking. By their nature, forward-looking statements require
the Company to make assumptions and are subject to inherent risks and
uncertainties. There is significant risk that the forward-looking statements will
not prove to be accurate. Readers are cautioned not to place undue reliance
on forward-looking statements as a number of factors could cause actual
future performance and events to differ materially from that expressed in the
forward-looking statements. Accordingly our comments are subject to the
disclaimer and qualified by the assumptions (including assumptions for 2010
targets), qualifications and risk factors (including those associated with the
deployment and operation of the new national high-speed packet access
network and associated introduction of new products, services and systems)
referred to in the Management’s discussion and analysis in the 2008 annual
report, and in the 2009 quarterly reports. Except as required by law, TELUS
disclaims any intention or obligation to update or revise forward-looking
statements, and reserves the right to change, at any time at its sole discretion,
its current practice of updating annual targets and guidance.
TELUS 2009 consolidated EPS
2009
as
Reported
2008
as
Reported
$3.52
$0.15
Tax Adj.
($0.28)
$3.14
($0.25)
Restr.
($0.22)
$3.37
Excl.
Tax Adj.
Pension
Costs
$0.55
Tax Adj.
($0.09)
($0.02)
$0.06
Debt
Redemption Normalized
Lower Tax
Norm.
EBITDA1 Financing2 Rates and
O/S Shares
1
2
$0.02
Other
$2.59
Excl.
Tax Adj.
Normalized EBITDA excludes ($0.28) and ($0.25) for restructuring and pension costs, respectively, as these are identified separately.
Normalized Financing expense excludes ($0.22) for debt redemption costs identified separately.
2009 EPS impacted primarily by restructuring, pension costs
and debt redemption
Fourth Quarter 2009
TELUS Confidential
32
TELUS capital expenditure history
Wireline
Wireless
$2.25 B
Expected 2010
$1.75 B
$1.77 B
$1.69 B
$2.1 B
$1.86 B
$1.7 B
$1.62 B
$1.32 B
$1.25 B $1.32 B
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010*
* See forward looking statement
Over $16.9 B invested into core businesses in Canada
33
34
TELUS generating strong free cash flow
Free cash flow after spectrum purchases ($M)
Wireless spectrum purchased ($M)
1,345
1,167
1,443
1,388
1,243
1,336
750 to
950
776
500
144
2001
361
2002
2000
2003
2004
2005
2006
2007
2008
2009
2010E*
(249)
(910)
2009 - impacted by increased capex, pension
and restructuring costs, and start of cash taxes
2010 - impacted by reduced capex and
(1,266)
restructuring costs, partially offset by higher
cash taxes
* See forward looking statement.
34
Returning cash to TELUS shareholders
5.5B
NCIB
Dividends
$1.20 B $1.21 B
$1.27 B
$860 M
$602 M
$340 M
$330 M
$330 M
$140 M $170 M
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Total return of $5.1 billion to shareholders
over past 5 years or approx. $16 per share
35
TELUS refinancing update
 In December, successfully issued $1B senior unsecured notes
 5.05% 10 year notes, maturing December 2019
 Proceeds used to fund partial redemption of notes due in June
2011
 Redeemed US$577M (Cdn$607M) of 8% US$1.925B notes
 Paid $315M to terminate associated cross-currency interest
rate swaps
 As expected, recorded pre-tax charge of $99M for early partial
redemption and associated swaps
 After-tax impact of $69M or 22 cents per share
Completed successful $1B debt issue in December
36
Summary
Summary
 Invested strategically in 2009 for enhanced competitiveness and future growth
 Launched 3G+ wireless network
 Expanded wireline broadband reach
 Improved organizational cost efficiency through accelerating OEP
initiatives to address J-curve dilution and recessionary impacts
 Benefits from strategic investments in 2010*
 Leverage 3G+ wireless network to accelerate data and roaming growth
 Leverage enhanced broadband network and Mediaroom for TV growth
 Lower cost structure with estimated EBITDA savings of $135M
 Targeting $400M reduction in capital spending
 Estimating 50%+ growth in free cash flow due to decrease in capex,
despite peak year of cash taxes
Expect significant FCF growth in 2010
* See forward looking statement caution
38
2010 TELUS corporate priorities
 Capitalize on the full potential of TELUS’ leading wireless and
wireline broadband networks
 Enhance TELUS’ position in the Small and Medium Business
(SMB) market
 Deliver on our future friendly brand promise to clients
 Continue to improve TELUS’ operational efficiency to effectively
compete in the market and fund future growth
 Invigorate TELUS Team engagement and continue to drive the
philosophy of “Our Customers, Our Business, Our Team, My
Responsibility
Opportunity to build value from
strategic investments made in 2009
39
Investor relations
1 800 667 4871
telus.com
ir@telus.com