1. East Coast Tour Robert McFarlane
Executive Vice-President and Chief Financial Officer
Spring 2011

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 2011 targets), qualifications and risk factors referred to in the Management’s discussion and analysis in the 2010 annual 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.
Future performance and predictions
subject to risks, uncertainties and assumptions

3. Agenda Slide Strategic overview 4 Wireless update 8 Wireline update 17
Financial review 3

4. Strategic overview

5. Strategic Imperatives
TELUS’ strategic intent and strategic imperatives
Since 2000, TELUS has maintained a consistent
strategic intent and set of strategic imperatives
Strategic Imperatives
Focus relentlessly on growth markets
Build national capabilities across data/IP, voice and mobility
Offer integrated solutions
Partner, acquire and divest as necessary
Go to market as one team
Invest in internal capabilities
Strategic Intent
… to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move.

6. Revenue Strategic focus on data and wireless 20001 20101
$9.8B
$6.0B
Wireless
Wireline LD
40%
Wireline
23% LD
Wireless 5%
28% Wireless and Data
75% Wireless and Data
18%
Wireless
Wireline
Data
Data
Local and
12%
Wireline
Local
10%
other
Wireline
49%
20%
Data
23%
20001
20101
1 12 months ending June 30, 2000 and December 31, 2010, respectively
TELUS revenues up 63% since 2000
Wireless and Data represents 75% of revenue up from 28%

7. Total TELUS customer connections
(millions)
12.3
Voice - Network Access Lines
Data - Internet and TV
Wireless
6.0
70%
Internet, TV and wireless
23%
20001
20101
1 June 30, 2000 and December 31, 2010, respectively
Customer connections have more than doubled since 2000

8. Wireless update

9. TELUS wireless coverage in 20009

10. TELUS wireless coverage today10

11. Dual Cell HSPA+ consistent with TELUS’ evolution to LTE
TELUS increasing wireless data network speeds*
Deployed HSPA+ technology in Nov (mfg-rated up to 21 Mbps) - now covers 97% of population in Canada
Facilitated launch of Clear & Simple rate plans and iPhone
TELUS deploying HSPA+ Dual Cell technology in select cities
Manufacturer-rated download speeds to up to 42 Mbps
Launched in March 2011 with two mobile Internet keys
More devices expected throughout 2011
Represents cost effective investment within TELUS’ 2010 and 2011 capex guidance
* See forward looking statement caution
Dual Cell HSPA+ consistent with TELUS’ evolution to LTE 11

12. Strengthening wireless distribution
In early 2011, acquired 21 wireless retail dealer stores in BC and AB
In 2009, acquired 113 retail stores across Canada
Most in premium mall locations
72% are Ontario based
2008 launch expanding mall distribution
117 Koodo kiosks and growing
Realising 77% awareness nationally
Earning industry recognition
J.D. Power and Associates in “Highest in customer satisfaction with postpaid wireless service”
Strategy Magazine in “One of the country’s most visually recognizable brands”
Providing flexibility to serve various customer needs

13. Building TELUS’ wireless distribution
2010 exclusive points of distribution
265
223 7
245 16
349 30
186 13 18 3
British
Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Québec
Newfoundland
New
Brunswick
Nova
Scotia
P.E.I.
2000 exclusive points of distribution
Distribution strengthened by Koodo launch & Black’s acquisition National exclusive distribution outlets doubled to 1,090

14. Strong wireless subscriber results in 2010
Total
net adds
Postpaid
net adds
Wireless
subscribers
1.3M
447K
415K
406K
379K
prepaid
19%
postpaid
81%
5.7M
2009
2010
2009
2010
7.0M total
Strong total net adds growth of 10% y/y with higher value postpaid representing 93% of net adds

15. Wireless blended ARPU analysis
Data
Voice
% of ARPU
$58.48
$57.38
12.60
16.01
22%
27%
This slide shows the breakdown of TELUS’ total ARPU between voice and data for the third quarter.
Encouragingly, blended ARPU continues to show an improving trend sequentially and is now down 1.2% year-over-year in the third quarter compared to a decline of 1.9, 4.4, and 7.7% in the three previous quarters.
In fact, ARPU increased 2.2% sequentially and is the second straight quarter of sequential growth.
In addition, voice ARPU erosion of 6.7%, year-over-year, continues to improve and reflects the best quarter in two years.
The lower rate of decline in voice ARPU was partially offset by an increase in data ARPU of 21% to $14.53, compared to 19% last quarter, continuing to help improve the trend in blended ARPU.
Data ARPU now represents 25% of ARPU, up 5 percentage points from last year, and represents a significant ongoing opportunity for continued growth as smartphone penetration increases and demand for data services increases.
Voice ARPU erosion:
Q3/10 down 6.7% vs. Q3/08: down 6.3%
Data ARPU driven by: BlackBerry ($34M), text messaging ($21M), mobile computing ($14M) and roaming ($7M)
Total Voice and Other ARPU down $3.18. Total Data ARPU up $2.48 (data roaming up $0.29).
78%
44.78
42.47
73%
Q4-09
Q4-10
Q4-09
Q4-10
Strong data growth driving 1.9% y/y increase in ARPU, the first y/y increase in 3.5 years

16. Wireless industry developments
Most new entrants, (except Shaw and EastLink), now in market and using basic voice and messaging discount pricing to drive subscriber growth
Most new entrant pricing appears consistent with positioning for consolidation rather than long term value maximization
Voice trending to flat rate offerings for flanker brands and new entrants
Smartphone loading and consequent data use primarily by incumbents has hit inflection point
Data utilization and consequent capacity and direct costs make unlimited data offerings uneconomic and increase need for additional spectrum
Industry Canada public process underway to set rules for 700 MHz spectrum auction expected in 2012
Data driving growth in competitive wireless market

17. Wireline update

18. Investing in wireline broadband18
Expanded fibre-to-the-node (FTTN) coverage to 2.1 Million households in B.C., Alberta, and Eastern Quebec
Upgrade to VDSL2 technology to be completed in 2011
Provides data download speeds of up to 30 Mbps
Enables expanded IPTV coverage and features
Continuing fibre-to-the-home (FTTH) to new developments and fibre-to-the-building (FTTB) to MDU’s
Several secondary cities to be built each year
Ramp-up in broadband coverage leveling competitive playing field with cable-TV companies 18

19. Optik TV 19
Optik TV on the Microsoft Mediaroom platform launched February 2010 across various B.C. and Alberta communities
PVR Anywhere – record and watch on any connected TV
Multiple TV’s in a home with multiple HD streams
Superior picture quality
Enhanced channel guide with picture in picture display
Instantaneous channel changing
Faster Internet speeds
Introducing innovative new features that differentiates against cable-TV 19

20. Generating new TELUS TV subscribers
TELUS TV net additions*
TELUS TV
subscribers*
314K
This slide shows our continued success with TELUS TV in the third quarter.
Total TV net adds were a record 38,000, increasing by 73% year-over-year, nearly doubling the total subscriber base to 266,000 over the past year.
The success of Optik TV, powered by Microsoft Mediaroom, is helping fuel demand. The Mediaroom platform is a differentiated, world leading platform and customer reaction has been strong and very positive.
Our overall momentum in TV reflects the improved product capability and features of our Optik service, such as PVR anywhere and our superior selection of HD channels, which is providing positive competitive differentiation; our successful Optik brand launch and marketing campaign, which began in June; as well as from continued enhanced broadband coverage as we continue to expand our ADSL2+ and VDSL footprints.
There are now 2 million homes within TELUS’ service area eligible for Optik TV, and we continue to be very pleased with the momentum in our loading and retention results.
Background:
Q3/10 TELUS TV net adds breakdown: IPTV: 30K; Sat TV: 8K
HD footprint background:
Edmonton ~92% vs 87% Q3’09
Calgary ~90% vs 81% Q3’09
Vancouver & LML ~82% vs 50% Q3’09
Top 48 communities in AB/BC: ~85% or 2.0 million homes passed
170K
144K
92K
2009
2010
2009
2010
* Includes both TELUS IP TV and TELUS Satellite TV subscribers
Accelerated TV loading reflected by 48K Q4 net adds and 85% y/y increase in total TV subscribers

21. Improved Q4 2010 wireline operating stats
TELUS TV and High-speed Internet additions (HSIA)
Network access line (NAL) losses
66K
44K
Q4/09
Q4/10
(9)K net loss to 11K net gain in wireline customers
This slide highlights our improved wireline operating indicators this quarter.
Total new customers from our broadband services totalled 53,000 this quarter and included 38,000 new TV customers, as previously discussed, combined with new high-speed Internet customers of 15,000.
High-Speed net additions improved to 15,000, an increase of 67% year-over-year and a definite improvement from recent quarters. The improved result partially reflects the launch of Optik High-Speed Internet Service, which features dynamic and higher Internet speeds that take full advantage of the increased bandwidth we have deployed to neighbourhoods in recent years through shortening loop lengths and deploying fibre.
Total NAL losses this quarter were 51,000, represented by the purple bar on the slide, which includes business NAL losses of 12,000 and residential NAL losses of 39,000.
On an absolute basis, both business and residential line losses improved year-over-year reflecting a slight improvement in economic conditions on the business side, while our enhanced bundling capabilities, resulting from our expanded TV offering, is starting to provide retention benefits for our residential customers.
All together, we are encouraged that growth in TV and High-Speed Internet loading fully offset the declines in business and residential NAL losses.
-53K
-55K
Growth in TV and HSIA greater than NAL declines

22. Building on large enterprise deals
Investing in and focusing on key industry verticals
Public sector
Financial services
Energy
Healthcare
Wholesale
National
Defence
Implementation track record led to many contract wins

23. Demonstrating our leadership position in healthcare
TELUS Health Solutions most recognized brand in Canadian healthcare market
Electronic Health Records for more than 5 million Canadians
10 million Canadians on country’s largest private electronic claims network
3,000+ pharmacies using our pharmacy management software
4,000+ providers on our electronic claims transmissions network
Exclusive partner to host and operate Microsoft HealthVault in Canada
Trials now underway
Leading the transformation of healthcare in Canada

24. TELUS’ vertical integration strategy
TELUS’ strategy is to aggregate, integrate and make accessible content and applications for customers’ enjoyment
Not necessary to own content to make it accessible to customers on economically attractive basis
Not clear to TELUS that synergies of ownership for carriers outweigh negative synergies of limiting audience through exclusives and impact on other supplier relationships
Caution warranted based on past transactions, execution risk related to different expertise requirement, and legacy nature of content assets in play
Consistent with our strategy to “unleash the power of the Internet to Canadians at home, in workplace and on the move”

25. Industry vertical integration update
TELUS commends CRTC’s Shaw/Canwest and Videotron/TVA decisions to support the pre-existing principle of programming content non- exclusivity on reasonable commercial terms
Regulatory measures taken in U.S. for Comcast acquisition of NBC Universal are also good precedent
Public policy hearing called for June 2011 on effects of consolidation and vertical integration in Canadian broadcasting industry
TELUS believes CRTC needs to implement measures to effectively address and deter any anti-competitive behaviour from content ownership
CRTC’s recent decisions reinforce pre-existing principle that consumers need protection from undue preference by carriers who own content

26. Financial review

27. 2010 wireless financial results
($M)
2009
2010
change
Revenue (external)
4,707
5,014
6.5%
EBITDA
1,933
2,031
5.1%
EBITDA margins*
(total revenue)
40.8%
40.2%
(0.6) pts
Capex
770
463
(40)%
EBITDA less capex
1,163
1,568
35%     
* Margins on network revenue in 2010 and 2009 were unchanged at 44.0%
Wireless cash flow up significantly due to lower capex and EBITDA increase despite record subscriber loads

28. Wireless data revenue
$326M
$239M
$203M
Q4-08
Q4-09
Q4-10
iPhone 4
BlackBerry
Torch
Strong data growth of 36% in Q4-10 driven by continued smartphone adoption especially BlackBerry and iPhone

29. Wireless marketing and retention
2009
2010
change
Gross adds (000s)
1,599
1,710
6.9%
Churn
1.58%
1.57%
(0.01) pts
COA per gross add
$337
$350
3.9%
COA expense
$539M
$598M
11%
Retention expense
$479M
$535M
12%     
Record gross additions and stable churn reflect availability of new HSPA handsets and continued marketing success

30. 2010 wireline financial results
($M)
2009
2010
Change
Revenue (external)
4,899
4,765
(2.7)%
Operational expenses
3,475
3,308
(4.8)%
Restructuring costs
178 70
(61)%
EBITDA
1,558
1,612
3.5%
EBITDA margins
(total revenue)
31.0%
32.8%
1.8 pts
Capex
1,333
1,258
(6)%
EBITDA less capex
225
354
57%       
Revenue decline slows and is offset by expense control and lower restructuring costs

31. 2010 consolidated financial results
($M excl. EPS)
2009
2010
change
Revenue (external)
9,606
9,779
1.8%
Operating expenses
6,277
6,324
0.7%
Restructuring costs
190 74
(61)%
EBITDA
3,491
3,643
4.4%
EPS (basic)
3.14
3.23
2.9%
Capex
2,103
1,721
(18)%
Free cash flow
485
947
95%       
Strong cash flow expansion driven by improved profitability and capex decline

32. 2011 targets reflect continued execution excellence
2011 annual targets*
Consolidated
2011 target
y/y growth
Revenue (external)
$9.925 to B
1 to 4%
EBITDA
$3.675 to 3.875B
1 to 6%
EPS – basic
$3.50 to 3.90
7 to 19%
Capex
Approx. $1.7B
No change
* See forward looking statement caution.
2011 targets reflect continued execution excellence

33. TELUS raises dividend twice in 2010
Based on management confidence in mid-term outlook
Quarterly dividend raised 5.3% to $0.50 per share for July and October 2010
Quarterly dividend raised 5% to $0.525 per share for January and April 2011
January and April 2011 dividends 10.5% higher y/y
Based on management’s confidence in the prospect for continued earnings growth and strong cash flow in 2011 and beyond, and aligned with our dividend growth model, TELUS’ board of directors has approved a 5% quarterly dividend payout increase to 52 and a half cents per share starting with the January 4th, 2011 dividend payment.
This is the second five per cent increase this year and represents an 11% increase over the dividend paid in January 2010.
In addition, TELUS has announced that it is changing the dividend reinvestment program to open market purchases at full price rather than issuing shares from treasury at a 3% discount from the average market price.
These changes will come into effect on March 1, 2011 and apply to reinvestment of dividends declared after January 4, Shares from the reinvestment of the January 4, 2011 dividend will continue to be issued from treasury at a three per cent discount from the average market price.
Background
$2.10 dividend and 2010 EPS guidance of $3.10 to $3.30 implies 64% to 68% payout ratio.
$2.10 dividend implies 2011E EPS of $3.50 using mid point of payout ratio (i.e. 60%) 2011E range of $3.23 to $3.81
675
642
584
602
Dividends ($M)
521
* See forward looking statement
2007
2008
2009
2010
2011E*
Dividend increases reflect prospect for continued earnings growth and strong free cash flow in 2011*

34. TELUS capital expenditure history ($B)
Wireline
Wireless
Target
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
1.75
2.25
1.69
1.25
1.32
1.62
1.77
1.86
2.1
2010
1.72
Approx
1.7
2011E*
* See forward looking statement
Over $19 billion invested into core businesses in Canada

35. FCF after spectrum purchases Wireless spectrum purchased
TELUS generating strong free cash flow ($M) 35 35
FCF after spectrum purchases
1,385 to 1,585
1,443
2003
776
2004
1,167
2006
2007
1,388
2002
2009
485
2008
361
1,243
(910)
2001
(1,266)
2005
1,345
1,336
(249)
2000
144
2010
947
Wireless spectrum purchased
2011 Outlook
2011E*
impacted by increased capex, pension and restructuring costs, and start of significant cash taxes
reflected reduced capex and restructuring costs, partially offset by higher cash taxes
* See forward looking statement 35

36. Investor considerations
Investing strategically for enhanced competitiveness and growth
HSPA+ wireless network and expanded wireline broadband reach
Improved organizational cost structure through efficiency initiatives to address J-curve dilution and economic impacts
Benefits in 2011* from strategic investments
Enhanced competitive position in wireless and wireline
Leveraging HSPA+ wireless network to accelerate data & roaming growth
Enhanced broadband network supporting Optik TV and Internet services
Lower cost structure with 2-yr est. recurring EBITDA savings of $184M
2011 pre-dividend free cash flow of ~$ billion (after cash pension contributions) due to EBITDA growth, lower interest costs and cash taxes
* See forward looking statement caution
Strategic investments resulting in improved 2010 performance as planned, dividend increases, and solid 2011 outlook 36

37. Investor relations
telus.com/investors