Q TELUS investor conference call August 3, 2012 Robert McFarlane EVP & Chief Financial Officer Joe Natale EVP & Chief Commercial Officer Darren Entwistle President & Chief Executive Officer

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 the potential for a future share consolidation proposal and restrictions on non-Canadian ownership of TELUS Common shares, 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 and second quarter reports. 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. 2

3 Agenda  Wireless and wireline segment review  Consolidated financial review  Updates  2012 guidance  TELUS foreign ownership position  CRTC arbitration decision on TV service negotiations  Operational highlights  Questions and Answers

Q wireless financial results ($M)Q2-11Q2-12change Revenue (external)1,3331,4287.1% EBITDA % EBITDA margins 2 (total revenue) 42.1%44.2%2.1 pts Capex % EBITDA less capex458442(3.5)%   1 EBITDA before restructuring costs in Q2-12 and Q2-11 were $640 and $566 million, respectively. 2 Margins on network revenue in Q2-12 and Q2-11 were 47.9% and 45.7%, respectively.   Strong double digit EBITDA growth and margin expansion Capex higher for LTE network investments 4 

Wireless subscriber results Wireless subscribers Postpaid net adds 7.4M total 1.1 M prepaid Q K 112K Q2-12 Total net adds Q K 86K Q2-12 Postpaid net adds growth of 22% year-over-year Smartphones now 59% of postpaid base, up from 42% a year ago 85% 15% 6.3 M postpaid 5

Marketing and retention Q2-11Q2-12change Gross adds (000s)447394(12)% Blended churn %1.39% (0.28) pts COA per gross add$370$4049.2% COA expense$165M$159M (3.6)% Retention expense$149M$143M(4.0)% Lifetime revenue$3,526$4,33723%      1 Q2-12 and Q2-11 blended churn of 1.37% and 1.51% when normalized for loss of Government of Canada contract. Lowest churn rate in over 5 years combined with ARPU growth leads to 23% increase in lifetime revenue  6

Blended ARPU analysis Data Q2-12 $60.29 Voice $58.88 Q2-11 % of ARPU Q2-12Q % 39% ARPU increase of 2.4% led by data ARPU growth of 21% Voice ARPU decline moderated to -6.7% % 33% 7

Wireless data revenue Q2-11 $402M Q2-12 $512M $270M Q2-10 Q2 data revenue growth of 27% year-over-year Data now represents 39% of network revenue 8

Q wireline financial results ($M)Q2-11Q2-12change Revenue (external)1,2211,2371.3% EBITDA (6.0)% EBITDA margins (total revenue) 30.5%28.3%(2.3) pts Capex % EBITDA less capex368(78)%     Wireline revenue growth reflects good TV and HSIA subscriber results EBITDA and margin down due to declines in high margin legacy services  1 Q2-12 adjusted EBITDA excludes a $9 million pre-tax gain on land contributed to the TELUS Garden residential real estate project, and equity losses of $1 million for the residential real estate partnership. 9

TELUS TV customer growth Q K 43K Q2-12 TELUS TV net additions * TELUS TV subscribers* * Includes both IP TV and TELUS Satellite TV subscribers Q2-12Q K 595K Momentum continues with TV net adds of 43K Total TV subscribers up 48% year-over-year 10

Q M TELUS high-speed Internet customer growth Q K Q K High-speed Internet net adds increased 54% Total subscriber base up 81,000 or 6.8% year-over-year High-speed subscribers Q M High-speed net additions 11

TELUS network access line losses Q K -36K 7K -14K Q2-11 BusinessResidential Residential and Business lines impacted by renewed price-based competition 12

Q consolidated financial results ($M, except EPS)Q2-11Q2-12change Revenue (external)2,5542,6654.3% EBITDA % EPS (basic) % Capex % EBITDA less capex494450(8.9)% Free cash flow286284(0.7)%       Consolidated revenue and EBITDA growth driven by wireless Strong free cash flow remains stable 13 1 Q2-12 adjusted EBITDA excludes a $9 million pre-tax gain on land contributed to the TELUS Garden residential real estate project, and equity losses of $1 million for the residential real estate partnership.

EPS continuity analysis $0.99 ($0.03) $0.02 ($0.02) ($0.03) ($0.01) $1.02 $0.02 $0.96 $0.10 ($0.03) 2011 Tax Adj. Higher Normalized EBITDA 1 Higher Pension Lower Financing Costs Higher Dep & Amort Incr in Tax Exp Tax Adj. TELUS Garden $1.01 Q2-12 reported Q2-11 reported Adjusted EPS growth of 6.3% from $0.96 to $1.02 when excluding tax adjustments and TELUS Garden impacts Q2-11 Adj. Q2-12 Adj Normalized EBITDA excludes net $0.01 positive impact of TELUS Garden and Pension costs.

2012 segmented guidance Wireless EBITDA range up $100 million Wireline revenue range up $50 million, EBITDA top end down $50 million Wireless2012 guidancey/y change Revenue (external) $5.75 to 5.9B No change 5 to 8% EBITDA$2.4 to 2.5B10 to 14%  Wireline2012 guidancey/y change Revenue (external)$5.0 to 5.15B1 to 4% EBITDA$1.5 to 1.55B(6) to (3)%   15   

2012 consolidated guidance Updated guidance reflects our latest and generally favourable outlook for balance of year 2012 guidancey/y change Revenue (external)$10.75 to 11.05B3 to 6% EBITDA$3.9 to 4.05B3 to 7% EPS (basic) $3.75 to 4.15 No change 0 to 10% CapexApprox $1.95BApprox 6%     16   

TELUS files foreign ownership position with CRTC  In July, TELUS responded to CRTC about misleading allegations by Globalive concerning TELUS’ foreign ownership levels  As of June 29, 32.59% of TELUS’ voting shares held by non-Canadians, below federal limit of 33.3%  Mason Capital has made foreign ownership allegations very similar to Globalive's in an attempt to frustrate TELUS’ plans to consolidate its dual-class share structure on 1-for-1 basis  Globalive and Mason both used reports from Broadridge not intended for determination of foreign ownership levels  TELUS’ long-established systems to monitor and control foreign ownership of its voting shares have kept TELUS compliant with Canada’s foreign ownership restrictions for communication companies TELUS continues to be fully compliant with Canada’s foreign ownership restrictions 17

CRTC arbitration decision - TELUS vs Bell Media  CRTC released decision on final offer arbitration between TELUS and Bell Media on renewal agreement for distribution of Bell Media specialty TV services  Pleased CRTC selected TELUS’ final offer in arbitration, which means  consumers continue to enjoy choice provided by TELUS’ theme pack model  TELUS not required to move TSN to basic Essentials package  Bell was seeking a “minimum penetration level” for TSN, which significantly exceeded actual consumer take-up of the service in Optik TV’s sports pack  Impact of new agreement consistent with previous expense accruals CRTC decision is a win for TELUS and consumers and reinforces the Commission’s vertical integration framework 18

Q highlights  Robust revenue and earnings growth generated by continued excellent wireless revenue and EBITDA results, and wireline data revenue  Focus on Customers First leads to lowest blended wireless churn rate in five years  Continued Optik TV and high-speed Internet subscriber growth offsetting residential line losses  Increased guidance reflects year-to-date results and positive outlook Pleased with overall strong results in Q2 and first half of

Strong smartphone adoption, ARPU growth continues Q2 smartphone base up 54% to 3.7 million y/y Data ARPU growth driven by 27% increase in data revenue Q2-10Q2-11Q % 42% 59% Postpaid subscribers (millions) Smartphone % of postpaid $13.80 $19.25 $23.32 Q2-10Q2-11Q2-12 Wireless Data ARPU 20

Low and improving churn Low wireless churn rate best since Q1-07 Supports industry leading lifetime revenue per subscriber 1.39% 21

Future friendly home – continued strength in Optik TV and High-Speed Internet loading exceeding residential NAL losses for eighth consecutive quarter TELUS TV Residential NALs High-speed Internet Q2-11 Q2-12 Q K 63K 38K 50K 32K -43K -51K -31K -36K 29K 46K43K 3K 13K 20K 22

Continued Optik TV innovations  Re-architected theme pack offering  Enhanced Video on Demand storefront  Launched Multi-View  Allows viewing of up to 4 channels at once  Introduced The Weather Network App Expanding line-up of innovative new services supports premium, differentiated customer experience and ongoing momentum 23

Appendix – free cash flow 2012 Q Q2 C$ millions Adjusted EBITDA Capex (456)(548) Net Employee Defined Benefit Plans Expense (Recovery)(7)(2) Employer Contributions to Employee Defined Benefit Plans (15) Interest expense paid, net (145) (106) Income taxes received (paid), net (50) (31) Share-based compensation 5 9 Restructuring payments (net of expense) 4 (13) Free Cash Flow 284 (170)(189) Dividends Working Capital and Other (241) (31) Funds Available for debt redemption (174)59 Net Issuance (Repayment) of debt 172 (55) Increase in cash (2)4 Common and Non-voting shares issued 2 Acquisitions (51) TELUS Garden real estate project - (5) 1 Q2-12 adjusted EBITDA excludes a $9 million pre-tax gain on land contributed to the TELUS Garden residential real estate project, and equity losses of $1 million for the residential real estate partnership.

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

Net cash interest EBITDA 1 ($M) Other 3 Free Cash Flow (before dividends and spectrum) Capex Net cash tax payment 2 Cash pension contribution (including DB pension recovery) 4 Free Cash Flow (before dividends and spectrum) Appendix – 2012E free cash flow EBITDA excludes $17M Transactel gain 2 Midpoint used to calculate 2012E FCF range 3 Includes restructuring payments (net of expense), and share based compensation (net of expense) and 2011 includes cash pension contributions and pension recovery included in reported in EBITDA ~(350) 2012E $3,900 to 4,050 ~(45) ~(1,950) 1,380 to 1,530 (150) to (200) ~(180) 1,200 to 1, (377) $3,761 (60) (1,847) 1,327 (150) (330)