Q2 2010 TELUSinvestor conference call

Robert McFarlaneEVP & Chief Financial Officer

Darren EntwistlePresident & Chief Executive Officer

Joe NataleEVP & Chief Commercial Officer

August 6, 2010

2TELUS 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), qualifications and risk factors referred to in the Management’s discussion and analysis in the 2009 annual report and in the 2010 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.

3agenda

Wireless and wireline segment review Consolidated financial review Updates

TELUS TV Refinancing June 2011 notes 2010 guidance IFRS

Question and answers

3

Q2 2010 wireless financial results 4

Wireless cash flow up significantly due to lower capex and EBITDA increase

($M) Q2-09 Q2-10 change

Revenue (external) 1,146 1,217 6.2%

Operational expenses 656 703 7.2%

Restructuring costs 4 - (100)%

EBITDA 493 523 6.1%

EBITDA margins (total revenue)

42.8% 42.7% (0.1) pts

Capex 189 99 (48)%

EBITDA less capex 304 424 39%

subscriber results 5

Strong total net adds growth of 12% y/y with higher value postpaid representing 88% of net adds

prepaid18%

Wireless subscribers

postpaid82%

Postpaidnet adds

6.7 million total

5.5M

1.2M

Q2-09

95K109K

Q2-10

Totalnet adds

Q2-09

111K124K

Q2-10

smartphone subscriber mix 6

Smartphone base increased 65% y/y to 1.4M

Smartphone subs represent 25% of postpaid base compared to 16% a year ago

In Q2, 34% of all smartphone loading new to TELUS

BlackBerries and iPhones continue to dominate smartphone retention loading

data revenue 7

Data growth of 26% driven by continued smartphone adoption and expected to be enhanced further with HSPA + devices

Q2-09

$216M

Q2-10

$273M

$159M

Q2-08BlackBerryBold

marketing and retention 8

Improved churn reflects improving economic conditions and availability of new 3G+ handsets including the Apple iPhone

Q2-09 Q2-10 change

Gross adds (000s) 402 413 2.7%

Churn 1.55% 1.45% 10 pts

COA per gross add $311 $342 10%

COA expense $125M $142M 14%

Retention expense $116M $114M (1.7)%

Lifetime revenue $3,781 $3,963 4.8%

blended ARPU breakdown 9

Strong data growth with improving trend in overall ARPU down 1.9% y/y compared to 4.4% decline in Q1/10 and 7.7% in Q4/09

Data

Q2-10

$57.47Voice

$58.61

Q2-09

% of ARPU

11.56

47.05 43.67

13.80

Q2-10Q2-09

20%

80% 76%

24%

TELUS to increase wireless data network speeds* 10

Dual Cell technology consistent with TELUS’ evolution towards long-term evolution

This week, TELUS announced it will be launching HSPA+ Dual Cell technology in select cities

Increasing manufacturer-rated maximum download speeds to up to 42 Mbps when deployed

TELUS only N.A. carrier to successfully test HSPA+ Dual Cell technology and announce deployment

New devices starting with mobile Internet keys expected to be commercially available starting in 2011

Deployment of Dual Cell technology represents small investment and within TELUS’ 2010 capex guidance

* See forward looking statement caution

Q2 2010 wireline financial results 11

EBITDA growth driven by a decline in expenses and restructuring costs offsetting continued revenue decline

($M) Q2-09 Q2-10 Change

Revenue (external) 1,231 1,181 (4.1)%

Operational expenses 833 806 (3.2)%

Restructuring costs 49 19 (61)%

EBITDA 380 396 4.2%

EBITDA margins(total revenue)

30.1% 32.4% 2.3 pts

Capex 368 298 (19)%

EBITDA less capex 12 98 717%

wireline operating stats 12

Wireline operating stats impacted by competition

Q2-10

-51K-43K

-12K

Q2-09Q2-10Q2-09

-5K

Business*NAL losses

Residential*

NAL losses

* Historic NALs restated for prior periods starting in 2007 as a result of a periodic subscriber measurement review and correction.

High-speed Internet

net additions

Q2-09

3K 3K

Q2-10

TELUS TV subscribers 13

TELUS TV net adds up 71% y/y with subscriber base doubling

Q2-09

17K

29K

Q2-10

TELUS TV net additions*

TELUS TV subscribers*

* Includes both TELUS IP TV and TELUS Satellite TV subscribers

Q2-10Q2-09

115K

228K

14TELUS TV developments 14

Investments in broadband have enabled TELUS to offer differentiated and integrated TV service and applications

In June, TELUS launched Optik TV powered by Microsoft Mediaroom and Optik High-Speed

Optik TV footprint now covers 1.9M households and expanding

This week, TELUS launched Microsoft Xbox 360 to be used to directly access Optik TV including new promotional offer

TELUS customers among first to use Xbox 360 as set top box with Optik TV

Also this week, TELUS launched Remote Recording for Optik TV customers

New feature allows customers to manage PVR Anywhere content using web enabled computer or iPhone

Q2 2010 consolidated financial results 15

Significant cash flow expansion driven by improved profitability and capex decline

($M excl. EPS) Q2-09 Q2-10 change

Revenue (external) 2,377 2,398 0.9%

Operating expenses 1,451 1,460 0.6%

Restructuring costs 53 19 (64)%

EBITDA 873 919 5.3%

EPS 0.77 0.92 19%

Capex 557 397 (29)%

Free cash flow 144 241 67%

EPS continuity ($) 16

EPS excluding income-tax related adjustments up 25%

0.77

0.71Excl. Tax

Adj.

Q2-09 reported

Tax Adj.

Normalized EBITDA1

Restr.costs

Normalized Financing

costs2

Dep & Amort

1 Normalized EBITDA excludes restructuring and pension costs.2 Normalized financing costs excludes interest income for Q2/09.

Q2-10 reported

0.92+ 0.08

+ 0.04 + 0.03

Lower tax rates & other

- 0.01

0.89Excl. Tax

Adj.

+ 0.03 + 0.01

Pension costs

breakdown of full time equivalent employees 17

Significant domestic FTE reduction in first half of 2010

  YE 2009 Q2-10 Change

Domestic - telecom 25,750 25,000 (750)

Domestic - Black’s 850 750 (100)

International 8,700 8,450 (250)

Total 35,300 34,200 (1,100)

International and Black’s FTE decline largely represents Q4 and Q1 seasonality

TELUS refinancing update

Completed landmark $1B debt issue in July - $240 million larger than the next non-bank or non-government issue

In July, successfully issued $1B senior unsecured notes

5.05% 10-year notes, maturing July 2020

Proceeds to be used in September to fund partial early redemption of US notes due in June 2011

Redemption price is approx US$640M and estimated payment to terminate associated swaps is approx $313M

Expect Q3 pre-tax charge of $58M for early partial redemption

After-tax impact of 13 cents per share

Benefits include reduced refinancing risk, staggered debt maturity profile and interest expense savings (5% vs 8.5%)

18

update on Cdn GAAP to IFRS transition 19

Transparent status report on key topics and progress against key milestones of changeover plan in MD&A

Expect to quantify impacts on key financial statement line items and other measures in Q3 disclosure on Nov 5

Currently estimate pro forma net income YTD under IFRS approximately the same as under Cdn and US GAAP

Comprehensive disclosure in section 8.2 in MD&A

2010 annual guidance* update 20

Earnings guidance for 2010 reconfirmed despite reduced wireline revenue guidance

Consolidated 2010 guidance change y/y growth

Revenue(external)

$9.7 to 9.95B$(100) to $(150)M

1 to 4%

EBITDA $3.5 to 3.7B no change Flat to 6%

EPS – basic 1 $2.90 to 3.30 no change (8) to 5%

Capex Approx. $1.7B no change (19)%

1 Normalized EPS y/y growth of 2 to 16%. See appendix.* See forward looking statement caution

Revenue guidance updated to reflect change in wireline revenue guidance

Q2 2010 summary 21

Strategic investments resulting in improved TELUS 2010 performance as planned

Wireless ARPU decline trend continuing to improve Strong wireless subscriber growth and improved churn Improving trend in revenue and EBITDA growth

Wireline Continued strong TELUS TV subscriber growth Improved cost structure generating EBITDA expansion

despite legacy revenue declines Robust free cash flow growth Earnings guidance for 2010 reconfirmed

appendix – free cash flow

2010Q2

2009Q2

C$ millions

EBITDA 873 919

Capex (557) (397)

Net Employee Defined Benefit Plans Expense (Recovery) 5 7

Employer Contributions to Employee Defined Benefit Plans (51) (44)

Interest expense paid (includes income tax interest income) (149) (185)

Cash Income Taxes and Other (8) (58)

Non-cash portion of share-based compensation 15 10

Restructuring payments (net of expense) 31 (3)

Donations and securitization fees included in other expense (11) (4)

Free Cash Flow (before share-based compensation payment) 148 245

Share Based Compensation Paid (4) (4)

Free Cash Flow (per current public guidance methodology) 144 241

(151) (152)Dividends

Working Capital and Other 52 (107)

Funds Available for debt redemption 45 16

A/R Securitization 100

Net Issuance (Repayment) of debt (184) (21)

Increase (Decrease) in cash (39) (5)

Issuance of non-voting shares* - 32

* Non-voting share issuance from treasury for shareholders in the DRIP

-

Issuance of common shares - 2

appendix – definitions

TELUS definitions for non-GAAP measures

EBITDA: earnings, after restructuring and workforce reduction costs, 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 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

EPS normalized: growth rates are based on 2010 expected EPS ($2.90 to $3.30) compared with 2009 actual results when excluding 52 cents of positive income tax-related adjustments and a 22 cent loss on early partial redemption of long-term debt