TELUS investor conference call
Announcement of Income Trust conversion
1
September 11, 2006
Forward looking statements
This presentation and answers to questions today contain
forward-looking statements that require assumptions about
expected future events including income trust conversion,
benefits and timing, financing, financial and operating results,
and 2006 guidance 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 so do
not place undue reliance on them.
There are many factors that could cause actual results to differ
materially. For a full listing and description of the potential risk
factors and assumptions, please refer to the TELUS 2005 annual
report, updates in the 2006 quarterly reports, Sept. 11, 2006
income trust proposal news release and other filings with
securities commissions in Canada and the United States.
Reference Sept. 11, 2006 news release on proposal for reorganization
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TELUS investor conference call
Announcement of Income Trust conversion
Darren Entwistle • member of the TELUS team
3
Sept. 11, 2006
Transaction overview
 Approved proposal for reorganization into income trust
 Represents conversion of TELUS in its entirety
 Via plan of arrangement under Business Corporations Act
(B.C.)
 Subject to approval of 2/3rds of each class of shares
 To be one class of Fund Unit versus current dual class share
structure
 Conversion on 1 for 1 basis
 Anticipate initial distributions of between $3.90 to $4.10 on
annualized basis
 compares to current $1.10 annualized dividend
Conversion to increase cash distributions by 255 to 273%
4
Strategic rationale for TELUS conversion into Income Trust
 Transaction supports advancement of national growth strategy
 optimizes ability to make future growth investments
 Enhances tax efficiency at TELUS and significantly increases
cash distributions to shareholders
 Converting TELUS in its entirety ensures integrated businesses
drive operational excellence and competitive differentiation
 Avoids costs and governance complexity of a partial conversion
 Increased liquidity from collapsing into single Unit class
 Offers investors superior assets, strong predictable cash flow
and prospect of growth with cash distribution growth model
Creating Canada’s premier income trust
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TELUS investor conference call
Announcement of Income Trust conversion
Robert McFarlane • EVP & Chief Financial Officer
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Sept. 11, 2006
Benefits of proposed conversion in January 2007
 Tax efficiency as TELUS has fully utilized its tax assets as
of June 30, 2006
 TELUS now generating current tax liability on go forward basis
 Status quo would entail paying cash taxes commencing in
2008
 Optimal timing for TELUS as expect to be able to shelter
2006 tax liability on conversion in addition to ongoing tax
efficiencies
 Optimal timing for shareholders as taxable deemed
disposition on conversion of shares for units generally not
payable until April 2008
 Beneficial to debt holders as increases future cash flow for
debt servicing
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Initial cash distribution compared to dividends
$ per share
4
3
3.90 to
4.10
Dividend paid
Income trust cash
distribution
2
1.10
1
0.60
0.60
2003
2004
0.80
2005
2006
2007E1
Note: TELUS has also undertaken Normal Course Issuer Bids in 2004, 2005 and 2006 (August YTD), in the
amounts of $78M, $892M, and $528M, respectively.
1 See forward looking statement caution
Cash distribution more than 3.5 times dividend
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Long term financial policy targets
long term
policy
Q2-06
Net Debt : Capital
45 to 50%
45.5%

Net Debt : EBITDA
1.5 to 2.0x
1.7x

>$1B
~$1.5B
BBB+ to A-
BBB+
Minimum liquidity
Credit rating


3 of 4
Conversion does not change TELUS debt targets / lessens risk profile
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2006 consolidated TELUS guidance
2006 guidance1
annual change
Revenue
$8.625 to 8.725B

6 to 7%
EBITDA2
$3.5 to 3.6B

6 to 9%
 48 to 58%
EPS3
$2.90 to 3.10
Capex
approx. $1.6B

Free Cash Flow
$1.55 to 1.65B
 6 to 13%
21%
1 Sept.
11, 2006 guidance unchanged from August 4, 2006 and includes estimated $7M of expenses
related to trust conversion. See forward looking statement caution
2 Including restructuring & workforce reduction costs of $54M in 2005 and up to $100M in 2006
3 Including 34 cents of positive tax-related adjustments in 2006
Annual consolidated financial guidance remains unchanged
2007 guidance planned for Dec. 2006
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Transaction time line
 Notice of special meeting of TELUS shareholders Nov. 2006
 Information circular mailing Dec. 2006
 Special shareholder meeting Jan. 2007
 Obtain regulatory and other approvals
 Closing and conversion expected late Jan. 2007
See forward looking statement caution
To create Canada’s premier income trust
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
On income trust conversion

One question per person please
investor relations
1-800-667-4871
telus.com
ir@telus.com
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Appendix
Definitions
 EBITDA: Earnings, after restructuring and workforce
reduction costs, before interest, taxes, depreciation and
amortization
 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
TELUS definitions for non-GAAP measures
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