management's discussion & analysis
management's discussion & analysis
February 24, 2006
The following is a discussion of the consolidated financial condition and results of operations of TELUS Corporation for the years ended December 31, 2005 and 2004, and should be read together with TELUS’ Consolidated financial statements. This discussion contains forward-looking information that is qualified by reference to, and should be read together with, the discussion regarding forward-looking statements above.
TELUS’ Consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (GAAP), which differ in certain respects from U.S. GAAP. See Note 21 to the Consolidated financial statements for a summary of the principal differences between Canadian and U.S. GAAP as they relate to TELUS. The Consolidated financial statements and Management’s discussion and analysis were reviewed by TELUS’ Audit Committee and approved by TELUS’ Board of Directors. All amounts are in Canadian dollars unless otherwise specified.
The Company has issued guidance on and reports on certain
non-GAAP measures that are used by management to evaluate
performance of business units and segments. Non-GAAP measures
are used in measuring compliance with debt covenants. Because
non-GAAP measures do not have a standardized meaning, securities
regulations require that non-GAAP measures be clearly defined and
qualified, and reconciled with their nearest GAAP measure. For the
readers’ reference, the definition, calculation and reconciliation of consolidated
non-GAAP measures is provided in
Section 11: Reconciliation
of non-GAAP measures and definition of key operating indicators.
management’s discussion and analysis – contents
| 1. | Overall performance | A summary of 2005 consolidated results and a description of performance against annual targets set for 2005 |
| 2. | Core business, vision and strategy | A discussion of TELUS’ core business, vision and strategy, including examples of TELUS’ activities in support of its six strategic imperatives |
| 3. | Key performance drivers | Corporate priorities in place for 2005 and planned for 2006 |
| 4. | Capability to deliver results | A description of the factors that affect the capability to execute strategies, manage key performance drivers and deliver results |
| 5. | Results from operations | A detailed discussion of operating results for 2005 |
| 6. | Financial condition | A discussion of significant changes in the balance sheet at December 31, 2005, as compared to December 31, 2004 |
| 7. | Liquidity and capital resources | A discussion of cash flow, liquidity, credit facilities, off-balance sheet arrangements and other disclosures |
| 8. | Critical accounting estimates and accounting policy developments | A description of accounting estimates, which are critical to determining financial results, and changes to accounting policies |
| 9. | Looking forward to 2006 | A discussion of the outlook for 2006 and TELUS’ financial and operational targets, including key assumptions and financing plans |
| 10. | Risks and risk management | An update of risks and uncertainties facing TELUS and how it manages these risks |
| 11. | Reconciliation of non-GAAP measures and definition of key operating indicators | A description, calculation and reconciliation of certain measures used by management |