1. Robert McFarlane EVP & Chief Financial Officer May 18, 2011 2011 RBC Fixed Income conference

2. 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 2011 annual guidance), qualifications and risk factors (including those for semi-annual dividend increases to 2013) referred to in the Managements discussion and analysis in the 2010 annual report and in the 2011 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. About TELUS 3 TELUS is a leading Canadian national telecommunications company providing services including data, Internet protocol (IP), voice, entertainment and video $9.9 billion of annual revenue 12.3 million customer connections including: 7 million wireless subscribers 3.7 million wireline network access lines 1.2 million Internet subscribers 358,000 TELUS TV customers Enterprise value: $23 billion ($7.0 billion net debt) Shares -TSX: T, T.A; NYSE: TU

4. TELUS revenue and EBITDA profile 4 National growth strategy drives strong wireless asset mix EBITDA LTM 1 $3.7 billion Wireless 56% Wireline 44% 1 12 months ending March 31, 2011 Revenue LTM 1 $9.9 billion Wireless 52% Wireline 48% Wireless 56% Wireline 44% Wireless 56% Wireline 44%

5. Wireless subscriber growth 5 Continued market opportunity with focus on postpaid growth prepaid 18% Wireless customer mix postpaid 82% 5.8M 1.2M Total wireless subscribers Q1-10 6.6M Q1-11 7.0M 6.2M Q1-09

6. Strong smartphone adoption driving data growth 6 Smartphone base up 76% y/y to 2.2M Smartphone penetration (% of postpaid base) Smartphone adoption continues to accelerate 54% of Q1-11 postpaid gross loads Over 70% of Q1-11 postpaid retention units 22% 33% 38% 1Q104Q10 1Q11

7. Wireless data revenue 7 In Q1-11, data revenue growth accelerated to 44% leading to 11% total wireless revenue & EBITDA growth Q1-10 $254M Q1-11 $366M $204M Q1-09

8. Blended ARPU analysis 8 ARPU up 3.7% y/y as data growth exceeds voice erosion. Q1-11 was 2 nd quarter of Y/Y ARPU growth after 3.5 yr decline Data Q1-11 $57.89 Voice $55.80 Q1-10 Q1-09 $58.39 13.14 42.66 40.18 17.71 11.26 47.13

9. TELUS TV subscribers 9 Strong momentum with 44K TV net adds up 52% y/y and total subscribers up 80% Total TV subscribers* * Includes both IP TV and TELUS Satellite TV subscribers 358K Q1-10 199K Q1-11 98K Q1-09 2.1 million IP-TV homes passed ( 87% of top 48 markets) 90%+ AB/BC coverage with TELUS Satellite TV 14% market share

10. 16K 29K 15K Optik creating Future Friendly Home momentum 10 Q4-10 Q3-10 66K 53K 18K 38K 48K Q1-11 44K Q2-10 32K Q1-10 32K 29K 60K 3K TELUS TV Residential NALs High-speed Internet TV and Internet loading more than offsetting residential NAL losses for 3 rd consecutive quarter -50K -51K -39K -37K -33K

11. Q1 2011 consolidated financial results 11 Strong revenue and earnings growth driven by wireless ($M)Q1-10Q1-11change Revenue (external)2,3772,5316.5% EBITDA 1 9439864.6% EPS (basic) 2 0.851.0119% Capex31140932% 2 Q1-11 Adjusted EPS of $0.97 for Q1-11 excludes after-tax Transactel gain of $0.04 per share 1 Q1-11 Adjusted EBITDA of $970M, up 2.9% excl. $16M non-cash gain from acquisition of Transactel

12. Simple cash flow by segment 12 TELUS generating strong cash flows from operations 2001 2002200320042005200620072008 1 0.1 Wireless 0.3 1.6 1.8 2.0 1.9 EBITDA less capex ($billions) 1.4 2009 1.9 20102011E* 2.075 Wireline * Using mid-points of 2011 targets. See forward looking disclaimer caution 1.0 1 2008 cash flow incl. $882M for wireless spectrum. Excl. spectrum cost, 2008 cash flow was $1.9B

13. 2011 annual targets* 13 Expecting revenue and earnings growth driven by wireless and data 2011 targets y/y change Revenue (external)$9.925 to 10.225B1 to 4% EBITDA$3.675 to 3.875B1 to 6% EPS (basic)$3.50 to 3.907 to 19% CapexApprox. $1.7Bflat * See forward looking disclaimer caution

14. TELUS strong balance sheet & credit policies 14 Decade long track record of meeting prudent financial policies Long term policies & guidelines Q1-11Met Net debt to EBITDA (excluding restructuring) 1.5 to 2.0X1.9X Available liquidityminimum $1 billion$1.77 billion Credit RatingBBB+ to A- BBB+/A–, stable trend Dividend payout ratio guideline of 55 to 65% of sustainable net earnings on a prospective basis

16. Appendix – long term debt maturities 16 2011201220132014201520162017201820192021 C$ billions 1.1 0.3 0.7 0.6 0.7 1.0 0.2 2020 Deferred FX hedge liability Average term to maturity of debt is 5.4 years with staggered maturity profile 0.4 2022+ 1.0 Accounts receivable securitization Commercial paper and bank drawdowns Notes and debentures As at March 31, 2011

17. Appendix – TELUS free cash flow 1 history 17 2009 - impacted by increased capex, pension and restructuring costs, and cash taxes 2010 - reflected reduced capex and restructuring costs, partially offset by higher cash taxes 2011 - after $200M voluntary pension contribution FCF after spectrum purchases and before dividends Wireless spectrum purchased 1,443 2003 776 2004 1,167 20062007 1,388 2002 2009 485 2008 361 1,243 (910) 2001 (1,266) 2005 1,345 1,336 (249) 2000 144 2010 947 2011E FCF before dividends 1,045 to 1,245 2011E* ($ Millions) 1 see Appendix – definitions for Free cash flow definition

18. Appendix – 2011E free cash flow* 18 Net cash interest EBITDA ($M) Other 2 Free Cash Flow Capex Net cash tax payment 1 Cash pension contribution (incl. voluntary $200M contr. & DB recovery) Free Cash Flow 3 (incl. cash pension contribution) 1 Midpoint used to calculate free cash flow range. Updated expectation to top half of range in Q1-11. 2 Includes restructuring payments (net of expense), and share based compensation (net of expense) 3 Represents FCF before dividends paid in 2011, deferral account drawdowns, other changes in working capital, acquisitions, etc. ~(375) $3,675 to 3,875 ~(60) ~(1,700) 1,385 to 1,585 (130) to (180) ~(340) 1,045 to 1,245 * As provided December 2010. See forward looking disclaimer caution

19. 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 (for 2011), 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 Financial information for 2011 presented according to IFRS as issued by IASB Certain comparative information for 2010 and prior periods is presented as originally reported under Canadian GAAP