Q2 2013 TELUS investor conference call

August 8, 2013

Darren Entwistle

President & Chief Executive Officer

Joe Natale

EVP & Chief Commercial Officer

John Gossling

EVP & Chief Financial Officer

TELUS forward looking statement

Today's presentation and answers to questions contain statements about financial and operating performance of TELUS and future events, including with respect to future normal course issuer bids, 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 2013 annual guidance, CEO three-year goals to 2013 for EPS and free cash flow growth to 2013 excluding spectrum costs, semi-annual dividend increases to 2016, ability to sustain and complete multi-year share purchase programs to 2016), qualifications and risk factors referred to in the first quarter and second quarter Management’s discussion and analysis and in the 2012 annual report, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR at sedar.com) and in the United States (on EDGAR at sec.gov). 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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Agenda

 CEO Introduction  Q2 operational highlights  Q2 financial results  Questions and Answers 3

CEO introduction

 Welcoming competition – advocating for a level playing field  Reporting solid Q2 results – wireless and wireline  Returning value to shareholders through NCIB, dividends and efficiency TELUS demonstrating strong results and executing on shareholder friendly initiatives 4

Robust postpaid net additions Postpaid net adds (000s)

92 112 100 Q2-11 Q2-12 Q2-13

Wireless subscribers 14%

1.1M

prepaid 7.7M

total 6.6M

postpaid

86%

Solid postpaid net adds with postpaid base up 5.1% y/y 5

Strong smartphone adoption and ARPU growth

5.9

42% 6.3

59% 6.6

71% $58.88

19.25

$60.29

23.32

$61.12

26.44

39.63

36.97

34.68

Q2-11 Q2-12 Q2-13 Postpaid subscribers (millions) Smartphone % of postpaid Q2-11 Q2-12 Voice ARPU Data ARPU Smartphone penetration up 12 points to 71% of postpaid base supporting ARPU growth of 1.4% in Q2 Q2-13 6

Industry leading wireless churn Blended

1.67% 1.39% 1.40%

Postpaid

1.34% 1.00% 1.03% Q2-11 Q2-12 Q2-13 Q2-11 Q2-12 Q2-13 Blended and postpaid churn low and stable 7

Industry leading lifetime revenue per susbcriber

1 $3,526 $4,337 $4,366 Q2-11 Q2-12 Q2-13 Customer First focus generating leading lifetime revenue per subscriber 1 Lifetime revenue derived by dividing ARPU by blended churn rate 8

New innovative SharePlus rate plans

 Latest TELUS innovation in evolution of Clear and Simple customer approach  Features include unlimited nationwide talk and text, and ability to share data with your family or small business  Anticipated positive impact on subscriber economics  Churn benefits from shared plans and consolidation of households  More-for-more value proposition  Enhanced simplicity supports efficiency Next evolution of Clear and Simple supports leading subscriber economics 9

Healthy TV and Internet growth TELUS TV (000s)

743 25% 595 403

High-speed Internet (000s)

6.1% 1,196 1,277 1,355 Q2-11 Q2-12 Q2-13 Q2-11 Q2-12 Q2-13 Continued healthy Internet and TV subscriber growth balanced with focus on enhanced profitability 10

Q2 2013 wireless financial results

($M, except margins)

Revenue (external) EBITDA 1 EBITDA excl. restr. & other like costs EBITDA margin 2 EBITDA margin excl. restr. & other like costs Capital expenditures

Q2 2013

1,510 666 676 47.4% 48.1% 171

Change

5.9% 5.1% 6.0% 0.1 pts 0.5 pts (12)% TELUS delivers another good quarter of wireless results despite increased competitive intensity 1 EBITDA does not have any standardized meaning prescribed by IFRS-IASB. For definition and explanation, see Section 11.1 in the 2013 second quarter Management’s discussion and analysis (MD&A).

2 EBITDA as percentage of total network revenue 11

Wireless data revenue ($M) 601 512 402

Q2-11 Q2-12 Q2-13 Strong Q2 data revenue growth of 17% year-over-year Data now 43% of wireless network revenue, up 4 points 12

Q2 2013 wireline financial results

($M, except margins)

Revenue (external) EBITDA Normalized EBITDA 1 EBITDA margin 2 Normalized EBITDA margin Capital expenditures

Q2 2013

1,316 332 361 24.5% 26.6% 340

Change

6.3% (1.4)% 7.3% (1.8) pts 0.3 pts (3.9)% Strong revenue growth driven by Data Normalized EBITDA up 7.3% 1.

Normalized EBITDA does not have any standardized meaning prescribed by IFRS-IASB. This term is defined in this presentation as EBITDA excluding restructuring and other like costs, and the gain net of equity losses related to TELUS Garden residential real estate partnership. 2.

EBITDA as percentage of total revenue.

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Wireline data revenue ($M) 635 689 792

Q2-11 Q2-12 Q2-13 Strong data revenue growth of 15% driven by TV and Internet Data revenue 60% of external revenue, up 4 points 14

Q2 2013 consolidated financial results

($M, except EPS)

Revenue (external) EBITDA Normalized EBITDA 1 EPS (basic) Adjusted EPS 2 Capex Simple cash flow (EBITDA less capex)

Q2 2013

2,826 998 1,037 0.44

0.54

511 487 Strong growth in revenue, earnings and simple cash flow

Change

6.1% 2.9% 6.5% (4.4)% 12.5% (6.6)% 15% 1. Normalized EBITDA does not have any standardized meaning prescribed by IFRS-IASB. This term is defined in this presentation as EBITDA excluding restructuring and other like costs, and the gain net of equity losses related to TELUS Garden residential real estate partnership. 2. Adjusted EPS does not have any standardized meaning prescribed by IFRS-IASB. See appendix for definition. 15

Analysis of Adjusted EPS

($ per share)

Basic EPS TELUS Garden 1 Restructuring and other like costs Long-term debt prepayment premium Income tax-related adjustments

Adjusted EPS Q2 2012

0.46

(0.01) 0.01

0.02

0.48

Q2 2013

0.44

0.04

0.03

0.03

0.54

Change

(4.4)%

12.5%

Adjusted EPS up 12.5% y/y 1 After-tax gain net of equity losses related to TELUS Garden residential real estate partnership.

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Adjusted EPS continuity analysis

$0.01 ($0.01) $0,07 ($0.01)

$0.48 $0,54 Q2-12 Adjusted Normalized EBITDA 1 Depr & Amort Higher Blended Statutory Tax Rates Normalized Financing costs 2 Q2-13 Adjusted

Adjusted EPS growth driven by strong EBITDA growth 1 Normalized EBITDA excludes restructuring and other like costs and after-tax gain net of equity losses related to TELUS Garden residential real estate partnership.

2 Normalized financing excludes long-term debt prepayment premium.

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investor relations 1-800-667-4871 telus.com/investors [email protected]

Appendix – Q2 2013 free cash flow comparison

EBITDA Capital expenditures Simple Cash Flow (EBITDA less Capital expenditures) Net employee defined benefit plans expense (recovery) Employer contributions to employee defined benefit plans Interest expense paid, net Income taxes received (paid), net Share-based compensation Restructuring payments net of cash payments Deduct gain net of equity losses related to TELUS Garden

Free Cash Flow

Purchase of shares for cancellation Dividends Cash payments for acquisitions and related investments Real Estate joint venture Working capital and other

Funds available for debt redemption

Net issuance (repayment) of debt

Increase (decrease) in cash 2012 Q2

970 (548)

422

26 (15) (106) (31) 9 (13) (8)

284

(189) (11) (5) (19)

59

(55)

4 2013 Q2

998 (511)

487

28 (130) (128) (82) 13 4 -

192

(238) (209) (3) (6) (8)

(272)

522

250

Glossary



Adjusted EPS

does not have any standardized meaning prescribed by IFRS-IASB. This term is defined in this presentation as excluding (after income taxes): 1) Gain net of equity losses related to TELUS Garden residential real estate partnership; 2) Restructuring and other like costs; 3) Long-term debt pre-payment premium; and 4) Income tax-related adjustments. For further analysis of the aforementioned items see Section 1.3 in the 2013 second quarter Management’s discussion and analysis.

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