2012 RBC Fixed Income Conference Robert McFarlane

EVP & Chief Financial Officer May 15, 2012

TELUS Forward Looking Statement

Today's presentation and 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 predictions 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 2012 annual targets), qualifications and risk factors (including TELUS proposed share consolidation and foreign ownership levels, the ability over time to sustain dividend growth of circa 10% per annum with semi-annual dividend increases to 2013, and CEO three year goals for EPS and free cash flow growth excluding spectrum costs to 2013) referred to in the Management’s discussion and analysis in the 2011 annual report, and in the 2012 first quarter report. 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.

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About TELUS

 TELUS is a leading Canadian national telecommunications company providing services including wireless, data, Internet protocol (IP), voice, television, entertainment and video   $10.5 billion of annual revenue 12.7 million customer connections including:  7.4 million wireless subscribers   3.5 million wireline network access lines 1.3 million Internet subscribers  553,000 TELUS TV customers  Enterprise value: $25 billion ($6.9 billion net debt)  Shares - TSX: T, T.A; NYSE: TU 3

TELUS’ revenue and EBITDA profile

Revenue LTM 1 EBITDA LTM 1

Wireline 47% Wireless 53% Wireline 44% 44% Wireless 56% 56%

$10.5 billion $3.8 billion

National growth strategy drives strong wireless asset mix 1 12 months ending March 31, 2012 4

Wireless subscriber results

6.6M

7.0M

Total wireless subscribers

7.4M

16% 1.2

M prepaid 7.4M

total 6.2

M postpaid 84% Q1-10 Q1-11 Q1-12 Postpaid net adds growth of 21% y/y Smartphones now 56% of postpaid base, up from 38% in prior year 5

Strong smartphone adoption, ARPU growth continue

Postpaid subscribers (millions) Smartphone % of postpaid 6.2

5.8

5.4

56% 38% 22% Wireless Data ARPU $13.14

$17.71

$22.83

Q1-10 Q1-11 Q1-12 Q1-10 Q1-11 Q1-12 1Q 2012 Smartphone base up 63% to 3.5 million year over year Data ARPU expansion driven by 36% growth in data revenue 6

Wireless data revenue

$254M $366M $498M Q1-10 Q1-11 Q1-12 Industry leading data revenue growth of 36% Q1 data increased to 39% of network revenue 7

Blended ARPU analysis

Data Voice $55.80

13.14

$57.89

17.71

$58.87

22.83

39% 42.66

40.18

36.04

61% Q1-10 Q1-11 Q1-12 ARPU increase of 1.7% in Q1-12 led by data Sixth consecutive quarter of ARPU growth 8

Industry Canada sets spectrum auction and telecom foreign ownership policies

 Spectrum cap of 10 MHz for prime 700 MHz auction and 40 MHz for 2.5 GHz auction   700 MHz prime spectrum divided into 4 paired blocks of 10 MHz 2.5 GHz spectrum cap means TELUS should be eligible to obtain up to 40 MHz of spectrum   Auctions delayed to H1 2013 for 700 MHz and H1 2014 for 2.5 GHz Foreign ownership restrictions to be lifted for carriers with less than 10% national market share  TELUS encourages government to continue to work towards full liberalization to ensure level playing field

Policy announcement on spectrum auctions consistent with TELUS’ proposed recommendations to Government

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TELUS TV customer growth

Total TELUS TV subscribers* 553K 358K 199K Q1-10 Q1-11 Q1-12 Momentum continues with TV net adds of 44K in Q1-12 and 196K in 2011 Total subscribers up 54% surpassing 550,000 10 * Includes both IP TV and TELUS Satellite TV subscribers

Future Friendly Home - continued Optik momentum

High-speed Internet net adds TELUS TV net adds Residential access lines net adds 32K 3K 29K 53K 15K 38K 66K 18K 48K 60K 16K 44K 58K 13K 46K 72K 22K 50K 80K 24K 56K 60K 16K 44K -51K Q2-10 -39K -37K -33K -31K Q3-10 Q4-10 Q1-11 Q2-11 -30K Q3-11 -37K Q4-11 -47K Q1-12 TV and High-Speed Internet loading exceeding residential NAL losses for seventh consecutive quarter 11

Q1 2012 consolidated financial results

($M, except EPS) Q1-11 Q1-12 change Revenue (external) 2,531

2,631

 4.0% EBITDA 1 986

1,009

 2.3% EPS (basic) Capex 1.01

409

1.07

441

   5.9% 7.8% EBITDA less capex 577

568

(1.6)% Free cash flow 162

358

 121% 1 Q1-12 adjusted EBITDA of $1,010M excludes a $1M equity loss for residential component of TELUS Garden real estate joint venture and Q1-11 adjusted EBITDA of $970M excludes a $16M non-cash gain on Transactel.

Strong revenue and earnings growth driven by wireless FCF driven by lower DB pension funding and financing costs 12

Simple cash flow by segment

Wireline Wireless EBITDA less capex ($billions) 1.6

1.8

2.0

2.0

1.8

1.9

1.9

1.9

2.05

1.4

1.0

2001 0.3

2002 2003 2004 (0.3) 2005 2006 2007 2008 1 2009 2010 2011 2012E* TELUS generating strong cash flows from operations 1 2008 cash flow incl. $882M for wireless spectrum. Excl. spectrum cost, 2008 cash flow was $1.9B

* Using mid-points of 2012 targets. See forward looking disclaimer caution 13

Revenue (external) EBITDA EPS (basic) Capex

2012 annual targets*

2012 guidance $10.7 to 11.0B

$3.8 to 4.0B

$3.75 to 4.15

Approx $1.85B

   y/y change 3 to 6% 1 to 6% 0 to 10% Expecting revenue and earnings growth driven by wireless and data 14 * See forward looking disclaimer caution

TELUS’ strong balance sheet & credit policies

Net debt to EBITDA (excluding restructuring) Available liquidity Credit Rating Long term policies & guidelines 1.5 to 2.0X

minimum $1 billion BBB+ to A Q1-12 1.8X

$1.12 billion BBB+/A-, stable trend  Dividend payout ratio guideline of 55 to 65% of sustainable net earnings on a prospective basis Met

√ √ √

Decade long track record of meeting prudent financial policies 15

Net debt to EBITDA Consolidated revenue growth Wireless external revenue growth Wireless EBITDA growth Total wireless subscriber net adds Wireless postpaid net adds ARPU Blended wireless churn TV subscriber net adds High-speed Internet net adds Residential NALs erosion

Canadian Telco comparison

TELUS Rank #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 TELUS is executing in the marketplace 16

Appendix – long term debt maturities

C$ billions

0.3

Accounts receivable securitization Commercial paper Notes and debentures 1.6

1.1

0.6

0.7

1.0

1.0

0.2

0.4

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022+ Average term to maturity of debt is 5.7 years with staggered maturity profile 18 As at March 31, 2012

Appendix – TELUS free cash flow

1

history

FCF after spectrum purchases and before dividends Wireless spectrum purchased 1,345 1,443 1,388 2012E FCF before dividends 1,167 1,336 ($ Millions) 776 1,243 939 997 1,200 to 1,400 485 144 361 2000 2001 (910) 2002 (249) 2003 2004 2005 2006 2007 2008 2009 2010 2009 - impacted by increased capex, pension and restructuring costs, and cash taxes 2011 2010 - reflected reduced capex and restructuring costs, partially offset by higher cash taxes 2012E* 2011 - after $200M voluntary pension contribution (1,266) 2012 - after $100M voluntary pension contribution

1 see “Appendix – definitions” for Free cash flow definition / 2012E derived from 2012 targets (Dec. 16, 2011) * See forward looking statement 19

Appendix – 2012E free cash flow

($M) EBITDA Capex Net cash interest Net cash tax payment 1 2012E $3,800 to 4,000 ~(1,850) ~(350) (150) to (200) ~(45) Other 2 Free Cash Flow (before dividends and spectrum) Cash pension contribution (including DB pension recovery) 3 1,380 to 1,580 ~(180) Free Cash Flow (before dividends and spectrum) 1,200 to 1,400

1 Midpoint used to calculate FCF range 2 Includes restructuring payments (net of expense), and share based compensation (net of expense) 3 Includes ~$175M cash pension contributions and pension recovery included in reported in EBITDA * As provided December 2011. See forward looking disclaimer caution 20

Appendix – definitions



EBITDA:

Earnings before interest, taxes, depreciation and amortization 

Capital intensity:

capital expenditures divided by total revenue 

Cash flow:

EBITDA less capex 

Free cash flow:

EBITDA, adding Restructuring costs, net employee defined benefit plans expense, cash interest received and excess of share-based compensation expense over share-based compensation payments, subtracting the non-cash gain on Transactel, cash interest paid, cash taxes, capital expenditures, restructuring payments and employer contributions to employee defined benefit plans.



Cost of retention (COR):

total costs to retain existing subscribers, often presented as a percentage of network revenue