Robert McFarlane EVP & Chief Financial Officer December 14, 2010 TELUS 2011 Targets investor conference call

2 TELUS forward looking statements 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 2010 guidance and 2011 targets), qualifications and risk factors referred to in the Management’s discussion and analysis in the 2009 annual report and in the 2010 first, second and third quarter reports, in this presentation and in the 2011 Targets news release dated December 14, 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. See Key Assumptions and Forward Looking Statements in TELUS’ 2011 Targets news release dated December 14, 2010.

3 Agenda 3  2010 guidance  Voluntary pension contribution  2011 targets and assumptions  Summary  Questions and answers

2010 wireless and wireline guidance 2010 segmented guidance remains unchanged 4  2010 guidance per Canadian GAAP wireless 2010 Guidance y/y change Revenue (external)$4.95 to 5.1B5 to 8% EBITDA$2.0 to 2.05B3 to 6% wireline Revenue (external)$4.75 to 4.85B(3) to (1)% EBITDA$1.575 to 1.675B1 to 8%

2010 Guidance y/y change Revenue (external)$9.7 to 9.95B1 to 4% EBITDA$3.6 to 3.7B3 to 6% EPS (basic)$3.10 to 3.30(1) to 5% CapexApprox. $1.7B(19)% 2010 consolidated guidance 2010 consolidated guidance remains unchanged 5  Pro-forma EPS per IFRS higher by 5 cents as of Q3-10 YTD

Financial policy guidelines 6 Consistent long-term financial policy guidelines  Net debt to EBITDA of 1.5 to 2.0 times  Maintain credit ratings in range of BBB+ to A- or equivalent  Dividend payout ratio of 55 to 65% of sustainable net earnings on a prospective basis

Balancing the interests of equity and debt holders 7 Reduced financing costs contributing to growth in FCF and dividends  Over last 12-months TELUS successfully issued two separate C$1 billion 5.05% 10-year notes  Benefits include reduced refinancing risk, staggered debt maturity profile and interest expense savings (~5% vs. 8.5%)  Two dividend increases in 2010 to $2.10 annually ($0.525 quarterly)  Reflects 10.5% increase over first half 2010 dividend payments  Changing dividend reinvestment program to open market purchases at full price  Will no longer offer 3% discount from average market price  Changes effective March 1, 2011

Voluntary pension contribution early Estimated 97% TELUS pension funding position  Strong recovery in pension fund asset values in has been offset by lower discount rate to value pension liabilities  TELUS intends to make $200M of one-time voluntary pension contributions to those plans in deficit in early 2011  Aggregate funded position to approx 97% on a solvency basis at year-end 2010  Contribution is accretive to 2011E EBITDA and EPS  Pension expense reduction of approx $13M  Cash taxes reduced by approx $57M as pension contributions are tax deductible  Funded with low cost commercial paper issuance  Returns in plan are tax sheltered

2011 targets and assumptions

Defined benefit pension assumptions 2010 (GAAP) 2011E (IFRS)* Discount rate5.85%5.35% Long-term expected return7.25% Pension expense/(recovery)$28M$(35M) Pension funding$143M$305M Expected pension funding increase in 2011 includes voluntary contribution of $200M 10 * Final 2011E pension assumptions to be set in 2011

2010E 2011E 4,950 to 5,100 5,200 to 5, wireless revenue target ($M) Increase of 3.5 to 6.5% from subscriber and data revenue growth 11  Wireless industry penetration of Cdn population to increase by %  Wireless industry subscriber growth to be stimulated by increased competition and emergence of tablet devices  Continued TELUS domestic voice ARPU erosion offset by data and roaming ARPU growth

2011 wireless EBITDA target ($M) Improving wireless EBITDA growth of between 6 to 11% E 2011E 2,000 to 2,050 2,150 to 2,250  EBITDA growth supported by increased revenue  Acquisition and retention expenses to increase to support larger subscriber base and smartphone upgrades

2010E2011E 4,750 to 4,850 4,725 to 4, wireline revenue target ($M) 13 Ranges imply relatively flat revenue with data revenue growth offset by local and LD declines  Consistent with competitive environment, assumed continuation of downward re-pricing of legacy services  Continued wireline broadband expansion and upgrades supporting Optik TV and high speed Internet subscriber growth  TELUS TV and high speed Internet to offset continued erosion in access lines

1,575 to 1,675 1,525 to 1, wireline EBITDA target ($M) EBITDA flat to down 6% due to continued legacy revenue declines and short-term dilutive effect from TELUS TV loading 2010E2011E 14  A reduction in legacy revenues offset by lower margin growth services  New services have lower margins than legacy services  EBITDA positively impacted by:  Improved profitability in large enterprise deals  Incremental efficiency savings of $75 million in 2011

2011 consolidated targets ($M) 2010E 9,700 to 9, Revenue growth of 1 to 4% and EBITDA growth of 1 to 6% driven by wireless 2011E 9,925 to 10, E2011E 3,600 to 3,700 3,675 to 3,875 Revenue EBITDA

2010E 3.10 to EPS basic ($) 2011E 3.50 to EPS growth of 9 to 22% driven by EBITDA growth and lower financing costs  EPS benefits from a decrease in financing costs  Statutory tax rate assumption down 2 pts to %

E 2011 consolidated capex target ($M) 2,103 approx 1, ,859 1,770 1 Excludes $882M in AWS spectrum 17 approx 1, E 2011 capex expected to be flat compared to 2010

E Free cash flow ($M) , to 1,030 1,243 AWS spectrum E* 1,045 to 1, cash flow growth of 7 to 27% supported by lower cash taxes and interest costs  Cash tax payments in 2011 between $130 to 180M due to lower installments ($300 to 350M in 2010E) * Reflects IFRS. Prior years reflect CDN GAAP but under IFRS impact would be insignificant. See appendix for additional detail.

 Consolidated revenue growth of up to 4% driven by wireless  Consolidated EBITDA growth up to 6% due to wireless revenue growth  Stable capex to support investments in wireless and wireline broadband networks  Double digit EPS and free cash flow growth 2011 targets summary 19 In 2011, TELUS will continue to leverage investments made in broadband to drive innovative solutions for our customers

investor relations telus.com Questions?

 Percentage increases calculated from 2011 ranges to mid-point of 2010 ranges  EBITDA: earnings, after restructuring costs, before interest, taxes, depreciation and amortization (2010 & prior years)  Capital intensity: capex divided by total revenue  Cash flow: EBITDA less capex  Free cash flow: EBITDA, adding Restructuring and workforce reduction costs, net employee defined benefit plans expense, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, cash restructuring payments, employer contributions to employee defined benefit plans, and cash related to Other expenses such as charitable donations and securitization fees  Cost of retention (COR): total costs to retain existing subscribers, often presented as a percentage of network revenue Appendix – definitions 21 TELUS definitions for non-GAAP measures

Net cash interest EBITDA ($M) Other 2 Free Cash Flow Capex Net cash tax payment 1 Cash pension contribution (including DB recovery) Free Cash Flow 3 (incl. cash pension contribution) Appendix – 2011E free cash flow 22 1 Midpoint used to calculate free cash flow range 2 Includes restructuring payments (net of expense), and share based compensation (net of expense) 3 Represents FCF before dividends paid of approximately $675M in 2011, deferral account drawdowns, other changes in working capital, acquisitions, etc. ~(375) 2011E IFRS $3,675 to 3,875 ~(60) ~(1,700) 1,385 to 1,585 (130) to (180) ~(340) 1,045 to 1,245