Q TELUS investor conference call May 9, 2012 Robert McFarlane EVP & Chief Financial Officer Joe Natale EVP & Chief Commercial Officer Darren Entwistle President & Chief Executive Officer

2 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.

3 Agenda  Share conversion proposal update  Wireless and wireline segment review  Consolidated financial review  Updates  Spectrum auction and foreign direct investment policies  Operational highlights  Questions and Answers

Mason Capital  Despite Mason having one twentieth of the economic interest of our employees, they hold four times the voting power  Executive Director of CCGG condemns ‘empty voting’ and fully supports one share – one vote  Leading independent proxy advisors, ISS and Glass Lewis supported the proposal four times 4

Share consolidation benefits  Enhances TELUS’ leading good corporate governance practices  Enhances marketability of TELUS shares  Enhances liquidity of common shares  Listing on New York Stock Exchange One share – one vote 5

Significant share value appreciation since announcement Since announcement, TELUS’ market value has increased circa $1 billion Feb. 21 – May 8  Common Shares: 4.0%  Non-Voting: 5.9%  Toronto Stock Exchange Index: (7.3)%  MSCI Global Telecom Index: (0.7)% 6

Our commitment to our shareholders  TELUS Board and Management fundamentally agree this is the right proposal and in the best interest of our company and long-term shareholders  We will pursue other actions to convert our share structure to a single class  Conversion on one-to-one basis is the right model 7 TELUS continues to build upon our company’s operational and financial momentum

Q wireless financial results 8 ($M)Q1-11Q1-12change Revenue (external)1,3081,3835.7% EBITDA % EBITDA margins 2 (total revenue) 41.8%44.7%2.9 pts Capex % EBITDA less capex475471(0.8)%    1 EBITDA before restructuring costs in Q1-12 and Q1-11 were $626 and $551 million, respectively. 2 Margins on network revenue in Q1-12 and Q1-11 were 48.3% and 45.8%, respectively.   Record EBITDA with growth of 13% and margin improvement Cash flow strong while continuing LTE investments

Wireless subscriber results 9 Wireless subscribers Postpaid net adds 7.4M total 1.2 M prepaid Q K 63K Q1-12 Total net adds Q K 22K Q1-12 Postpaid net adds growth of 21% y/y Smartphones now 56% of postpaid base, up from 38% in prior year 84% 16% 6.2 M postpaid

Marketing and retention 10 Q1-11Q1-12change Gross adds (000s)388363(6.4)% Churn %1.55% (0.15) pts COA per gross add$348$3624.0% COA expense$135M$131M (3.0)% Retention expense$148M$139M(5.8)% Lifetime revenue$3,405$3,79812%      1 Q1-12 and Q1-11 churn of 1.52% and 1.62% when normalized for loss of Government of Canada contract. Industry leading churn combined with lower acquisition and retention expenses 

Blended ARPU analysis 11 Data Q1-12 $58.87 Voice $57.89 Q1-11 % of ARPU Q1-12Q % 69% 61% 39% ARPU increase of 1.7% led by data Sixth consecutive quarter of ARPU growth 17.71

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

Q wireline financial results 13 ($M)Q1-11Q1-12change Revenue (external)1,2231,2482.0% EBITDA (11)% EBITDA margins (total revenue) 34.4%30.0%(4.4) pts Capex333290(13)% EBITDA less capex10297(4.9)%     1 Q1-12 adjusted EBITDA of $388M excludes a $1M equity loss for residential component of TELUS Garden real estate joint venture and Q1-11 adjusted EBITDA of $419M excludes a $16M non-cash gain on Transactel. Wireline revenue growth reflects strong TV and HSIA subscriber growth Cash flow stable as lower EBITDA offset by reduced capex 

Adjusted wireline EBITDA 14 ($M)Q1-11Q1-12change EBITDA435387(11)% Gain on Transactel acquisition(16) Equity loss for residential component real estate J.V. 1 Adjusted EBITDA (7.4)% Adjusted EBITDA margin33.6%30.1%(3.5) pts Adjusted EBITDA less capex869814%   Adjusted wireline EBITDA lower by 7.4%  1 Adjusted EBITDA before restructuring costs in Q1-12 and Q1-11 were $397 and $423 million, respectively, down 6.5%. 

TELUS TV customer growth 15 Q K Q1-12 TELUS TV net additions * TELUS TV subscribers* * Includes both IP TV and TELUS Satellite TV subscribers Q1-12Q K 553K Momentum continues with TV net adds of 44K Total subscribers up 54% surpassing 550,000

Q M TELUS high-speed Internet customer growth 16 Q K Q K Stable growth in HSIA despite competitive environment Total subscriber base up 6.3% High-speed subscribers Q M High-speed net additions

TELUS network access line losses 17 Q K -47K 2K -10K Q1-11 BusinessResidential Residential line losses impacted from price-based competition Business line losses reflects competition, and wholesale adds in Q1/11

Q consolidated financial results 18 ($M, except EPS)Q1-11Q1-12change Revenue (external)2,5312,6314.0% EBITDA ,0092.3% EPS (basic) % Capex % EBITDA less capex577568(1.6)% Free cash flow %       FCF growth driven by lower discretionary defined benefit pension contributions, increased EBITDA and lower financing costs 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.

EPS continuity analysis ($) 1.01 Higher Normalized EBITDA 1 Higher Pension Q1-12 reported Higher Dep & Amort Q1-11 reported 0.97 Excl. Trans. gain Lower Financing costs 2 1 Normalized EBITDA excludes $0.04 combined for restructuring and pension costs. 2 Financing costs excludes $0.02 of interest on income tax refunds in Q1/ Excl. Tax Adj. EPS growth reflects EBITDA growth and lower financing costs partly offset by higher D&A, pension and restructuring costs Higher Restructure & other 19

Industry Canada sets spectrum auction and telecom foreign ownership policies 20  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 H for 700 MHz and H 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

2012 guidance confirmed consolidated and segmented guidance confirmed 2012 guidancey/y change Revenue (external)$10.7 to 11.0B3 to 6% EBITDA$3.8 to 4.0B1 to 6% EPS (basic)$3.75 to to 10% CapexApprox $1.85B   

Q summary 22  Strong consolidated revenue growth driven by data  Record consolidated EBITDA  Great wireless metrics across the board (e.g. EBITDA, ARPU, churn, lifetime revenue, postpaid net adds, COA/COR)  Continued Optik TV and high-speed Internet subscriber growth  Strong FCF growth aided by lower discretionary defined benefit pension contributions, higher EBITDA, and lower financing costs Better than expected beginning to 2012 with strong free cash flow generation supporting an even stronger balance sheet

Strong smartphone adoption, ARPU growth continue 23 1Q 2012 Smartphone base up 63% to 3.5 million year over year Data ARPU expansion driven by 36% growth in data revenue Q1-10Q1-11Q % 38% 56% Postpaid subscribers (millions) Smartphone % of postpaid $13.14 $17.71 $22.83 Q1-10Q1-11Q1-12 Wireless Data ARPU

Future friendly home – continued strength in Optik 24 TV and High-Speed Internet loading exceeding residential NAL losses for seventh consecutive quarter TELUS TV Residential NALs High-speed Internet Q1-11 Q1-12 Q K -39K 60K -30K 38K 50K 32K -43K -50K -33K -47K 29K 44K 3K 16K

Continued new innovations for Optik TV Twitter app for Optik TV  Tweet what watching Optik TV, follow what others saying about favourite shows through ‘TV Tweets’ 25 Optik TV for Xbox 360  TELUS Optik TV first in world to offer customers gesture & voice control ability with Kinect Optik on the go  View select TV On Demand content on your mobile device, anywhere in Canada

Appendix – free cash flow 2012 Q Q1 C$ millions Adjusted EBITDA ,010 Capex (409)(441) Net Employee Defined Benefit Plans Expense (Recovery)(9)(1) Employer Contributions to Employee Defined Benefit Plans (235) (116) Interest expense paid, net (61) (55) Income taxes received (paid), net (66) (48) Share-based compensation (5) 7 Restructuring payments (net of expense) (23) 2 Free Cash Flow 358 (169)(188) Dividends Working Capital and Other (168) (62) Funds Available for debt redemption (164)61 Net Issuance (Repayment) of debt 170 (39) Increase in cash 622 Common and Non-voting shares issued 17 Acquisitions (60) (32) 162 Dividends reinvested (DRIP) Q1-12 and Q1-11 adjusted EBITDA excludes a $1 million equity loss for residential component of TELUS Garden real estate joint venture and a $16 million non-cash gain on Transactel, respectively. - Real estate joint venture - (15)

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