Annual report - About TELUS

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management discussion and analysis Safe Driving TELUS promotes safe driving and recommends that driving safely should be each wireless customer’s first responsibility. Recently, the Insurance Corporation of British Columbia and the University of Montréal released studies showing some increase in distraction levels for drivers using cell phones while driving. TELUS strongly believes that current laws already adequately address careless and negligent driving and that laws that are specific to mobile phones are unnecessary and counterproductive. There can be no assurance that laws against utilization of mobile phones while driving will not be passed and that, if passed, such laws will not have a negative effect on customer growth rates, usage levels and wireless revenues. Strategic Partners TELUS’ interests may conflict with those of our strategic partners While strategic alliance partners such as Verizon and Genuity are expected to assist TELUS in executing its growth strategy in Canada, their interests may not always align with those of TELUS. This could potentially affect the speed and outcome of strategic decisions. Sales of substantial amounts of our stock by our strategic partners may cause our stock price to decline Some of our strategic partners may decide to sell all or part of their share positions. For example, Motorola and Nextel are permitted to sell their combined 21.4 million non-voting shares, an 8.2% economic interest beginning in October 2001. Verizon could sell all or part of its 41.1 million voting and non-voting shares, a 21% economic interest. Sales of substantial amounts of TELUS stock, or the perception that these sales could occur, could adversely affect the market price of TELUS shares. > 60
management’s report Management is responsible to the Board of Directors for the preparation of the consolidated financial statements of the Company and its subsidiaries. These statements have been prepared in accordance with generally accepted accounting principles and necessarily include some amounts based on estimates and judgements. Financial information presented elsewhere in this annual report is consistent with that in the consolidated financial statements. The Company maintains a system of internal control which provides management with reasonable assurance that assets are safeguarded and that reliable financial records are maintained. This system includes written policies and procedures, an organizational structure that segregates duties and a comprehensive program of periodic audits by the internal auditors. The Company has also instituted policies and guidelines which require employees to maintain the highest ethical standards. The external auditors of the Company, Arthur Andersen LLP, have been appointed by the shareholders to express an opinion as to whether these consolidated financial statements present fairly the Company’s consolidated financial position and operating results in accordance with generally accepted accounting principles. Their report follows. The Board of Directors has reviewed and approved these consolidated financial statements. To assist the Board in meeting its responsibility, it has appointed an audit committee which is composed entirely of outside directors. The committee meets periodically with management, the internal auditors and the external auditors to review internal controls, audit results and accounting principles and practices. The committee’s terms of reference are available, on request, to shareholders. auditors’ report To the Shareholders of TELUS Corporation Robert McFarlane Executive Vice-President and Chief Financial Officer We have audited the consolidated balance sheets of TELUS Corporation as of December 31, 2000 and 1999 and the consolidated statements of income, retained earnings and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2000 and 1999 and the results of its operations and its cash flows for the years then ended in accordance with Canadian generally accepted accounting principles. As required by the British Columbia Companies Act, we report that, in our opinion, except for the change in the method of accounting for employee future benefits as described in Note 3 to these financial statements, these principles have been applied on a consistent basis. Arthur Andersen, LLP Chartered Accountants Vancouver, B.C. February 2, 2001 > 61
Page 1 and 2:
“TELUS is on track to lead the Ca
Page 3 and 4:
We have a track record of achieving
Page 5 and 6:
CASH FLOW 4 ($ millions) 1,487 96 1
Page 7 and 8:
Darren Entwistle President & CEO Si
Page 9 and 10:
We have restructured the Company to
Page 11 and 12: ° We began running our first telev
Page 13 and 14: fresh experience and perspective; a
Page 15 and 16: 11 1 6 12 7 2 3 13 14 15 8 9 10 4 5
Page 17 and 18: Starting January 2001, we changed o
Page 19 and 20: 25% > targets 12% 33% > targets 75%
Page 21 and 22: Creating the New TELUS Mobility Bui
Page 23 and 24: subscriber base compared to 1999. T
Page 25 and 26: Developing an Unbeatable Integrated
Page 27 and 28: Internet, we bridge the gap and hel
Page 29 and 30: Building Sustainable Relationships
Page 31 and 32: TELUS Québec is continuing to targ
Page 33 and 34: We’re developing and marketing wh
Page 35 and 36: The acquisition of Clearnet allowed
Page 37 and 38: TELUS Mobility is following a three
Page 39 and 40: Some examples include: ° The TELUS
Page 41 and 42: Three Months Ended (millions) 2000
Page 43 and 44: segmented statistics TELUS Consolid
Page 45 and 46: ° Acquired 70% of QuébecTel for $
Page 47 and 48: TELUS Mobility Expenses TELUS Mobil
Page 49 and 50: 2.14 Cash EPS, normalized to exclud
Page 51 and 52: LIQUIDITY AND CAPITAL RESOURCE RATI
Page 53 and 54: 400 communities over the next 10 ye
Page 55 and 56: OUTLOOK 2001 Telecommunications Ind
Page 57 and 58: RISKS AND UNCERTAINTIES The followi
Page 59 and 60: prices. Accordingly, there can be n
Page 61: In 2002, the calculation of the con
Page 65 and 66: consolidated balance sheet As At De
Page 67 and 68: notes to consolidated financial sta
Page 69 and 70: (g) Income Taxes The Company and it
Page 71 and 72: ° On August 17, 2000, the Company
Page 73 and 74: 10. CAPITAL ASSETS, NET Accumulated
Page 75 and 76: (millions) Series Rate Maturity 200
Page 77 and 78: Upon a change of control as defined
Page 79 and 80: (d) Stock Option Plans The Company
Page 81 and 82: 15. COMMITMENTS AND CONTINGENT LIAB
Page 83 and 84: The Company’s net benefit plan ex
Page 85 and 86: The following is a reconciliation o
Page 87 and 88: (c) Depreciation Under the purchase
Page 89 and 90: Recently Issued Accounting Standard
Page 91 and 92: Daniel Delaloye > Executive Vice-Pr
Page 93 and 94: usiness enablement Patricia Bowles
Page 95 and 96: 3G: Third Generation, describes nex
Page 97 and 98: Stock Exchanges and Trading Symbols
Page 99 and 100: Registered Shareholders 2000 1999 T
Page 101 and 102: www.telus.com > about TELUS > Inves
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Annual report - About TELUS

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