1. 2012 RBC Fixed Income Conference Robert McFarlane EVP & Chief Financial Officer May 15, 2012

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 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. About TELUS 3  TELUS is a leading Canadian national telecommunications company providing services including wireless, data, Internet protocol (IP), voice, television, entertainment and video  $10.5 billion of annual revenue  12.7 million customer connections including:  7.4 million wireless subscribers  3.5 million wireline network access lines  1.3 million Internet subscribers  553,000 TELUS TV customers  Enterprise value: $25 billion ($6.9 billion net debt)  Shares - TSX: T, T.A; NYSE: TU

4. TELUS’ revenue and EBITDA profile 4 EBITDA LTM 1 $3.8 billion Wireless 56% Wireline 44% 1 12 months ending March 31, 2012 Revenue LTM 1 $10.5 billion Wireless 53% Wireline 47% Wireless 56% Wireline 44% Wireless 59% Wireline 41% National growth strategy drives strong wireless asset mix

5. Wireless subscriber results 5 7.4M total 1.2 M prepaid Total wireless subscribers 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 Q1-11 7.0M Q1-12 7.4M 6.6M Q1-10

6. Strong smartphone adoption, ARPU growth continue 6 1Q 2012 Smartphone base up 63% to 3.5 million year over year Data ARPU expansion driven by 36% growth in data revenue Q1-10Q1-11Q1-12 5.4 5.8 6.2 22% 38% 56% Postpaid subscribers (millions) Smartphone % of postpaid $13.14 $17.71 $22.83 Q1-10Q1-11Q1-12 Wireless Data ARPU

7. Wireless data revenue 7 Q1-11 $366M Q1-12 $498M $254M Q1-10 Industry leading data revenue growth of 36% Q1 data increased to 39% of network revenue

8. Blended ARPU analysis 8 Data Q1-12 $58.87 Voice $57.89 Q1-11 22.83 40.18 36.04 ARPU increase of 1.7% in Q1-12 led by data Sixth consecutive quarter of ARPU growth 17.71 $55.80 42.66 13.14 Q1-10 39% 61%

9. Industry Canada sets spectrum auction and telecom foreign ownership policies 9  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 H1 2013 for 700 MHz and H1 2014 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

10. TELUS TV customer growth 10 Total TELUS TV subscribers* * Includes both IP TV and TELUS Satellite TV subscribers Q1-12Q1-11 358K 553K Momentum continues with TV net adds of 44K in Q1-12 and 196K in 2011 Total subscribers up 54% surpassing 550,000 Q1-10 199K

11. TV and High-Speed Internet loading exceeding residential NAL losses for seventh consecutive quarter Future Friendly Home - continued Optik momentum 11 TELUS TV net adds Residential access lines net adds High-speed Internet net adds -51K -39K -37K -33K -31K -30K 32K 53K 66K 60K 72K 58K 29K 38K 48K 44K 46K 50K 3K 15K 18K 16K 13K 22K Optik Launch -37K -47K 60K 80K 56K 44K 24K 16K Q1-11Q4-10Q2-11Q3-11Q2-10Q3-10Q4-11Q1-12

12. Q1 2012 consolidated financial results 12 ($M, except EPS)Q1-11Q1-12change Revenue (external)2,5312,6314.0% EBITDA 1 9861,0092.3% EPS (basic)1.011.075.9% Capex4094417.8% EBITDA less capex577568(1.6)% Free cash flow162358121%       Strong revenue and earnings growth driven by wireless FCF driven by lower DB pension funding and 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.

13. Simple cash flow by segment 13 2001 2002200320042005200620072008 1 (0.3) Wireless 0.3 1.6 1.8 2.0 1.8 1.9 EBITDA less capex ($billions) 1.4 2009 1.9 20102012E* 2.05 Wireline * Using mid-points of 2012 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 1.9 2011 TELUS generating strong cash flows from operations

14. 2012 annual targets* 14 Expecting revenue and earnings growth driven by wireless and data 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 4.150 to 10% CapexApprox $1.85B    * See forward looking disclaimer caution

15. TELUS’ strong balance sheet & credit policies 15 Long term policies & guidelines Q1-12Met Net debt to EBITDA (excluding restructuring) 1.5 to 2.0X1.8X √ Available liquidityminimum $1 billion$1.12 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 Decade long track record of meeting prudent financial policies

16. Canadian Telco comparison 16 TELUS Rank Net debt to EBITDA#1 Consolidated revenue growth#1 Wireless external revenue growth#1 Wireless EBITDA growth#1 Total wireless subscriber net adds#1 Wireless postpaid net adds#1 ARPU#1 Blended wireless churn#1 TV subscriber net adds#1 High-speed Internet net adds#1 Residential NALs erosion#1 TELUS is executing in the marketplace

18. Appendix – long term debt maturities 18 C$ billions 0.3 1.1 0.6 1.6 0.7 1.0 0.2 0.4 1.0 Accounts receivable securitization Commercial paper Notes and debentures As at March 31, 2012 Average term to maturity of debt is 5.7 years with staggered maturity profile

19. Appendix – TELUS free cash flow 1 history 19 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 2012 - after $100M voluntary pension contribution FCF after spectrum purchases and before dividends Wireless spectrum purchased 1,443 2003 776 2004 1,167 20062007 1,388 2002 2009 485 2008 361 1,243 (910) 2001 (1,266) 2005 1,345 1,336 (249) 2000 144 2010 939 2012E FCF before dividends 1,200 to 1,400 2012E* ($ Millions) 1 see “Appendix – definitions” for Free cash flow definition / 2012E derived from 2012 targets (Dec. 16, 2011) * See forward looking statement 2011 997

20. Net cash interest EBITDA ($M) Other 2 Free Cash Flow (before dividends and spectrum) Capex Net cash tax payment 1 Cash pension contribution (including DB pension recovery) 3 Free Cash Flow (before dividends and spectrum) Appendix – 2012E free cash flow 1 Midpoint used to calculate FCF range 2 Includes restructuring payments (net of expense), and share based compensation (net of expense) 3 Includes ~$175M cash pension contributions and pension recovery included in reported in EBITDA ~(350) 2012E $3,800 to 4,000 ~(45) ~(1,850) 1,380 to 1,580 (150) to (200) ~(180) 1,200 to 1,400 20 * As provided December 2011. See forward looking disclaimer caution

21. 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