Q2 2013

TELUS investor conference call

August 8, 2013

Darren Entwistle

President & Chief Executive Officer

Joe Natale

EVP & Chief Commercial Officer

John Gossling

EVP & Chief Financial Officer

TELUS forward looking statement

2

Today's presentation and answers to questions contain statements about financial and operating performance of TELUS and future events, including with respect to future normal course issuer bids, 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 2013 annual guidance, CEO three-year goals to 2013 for EPS and free cash flow growth to 2013 excluding spectrum costs, semi-annual dividend increases to 2016, ability to sustain and complete multi-year share purchase programs to 2016), qualifications and risk factors referred to in the first quarter and second quarter Management’s discussion and analysis and in the 2012 annual report, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR at sedar.com) and in the United States (on EDGAR at sec.gov). 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.

Agenda

CEO Introduction

Q2 operational highlights

Q2 financial results

Questions and Answers

3

Welcoming competition – advocating for a level playing field

Reporting solid Q2 results – wireless and wireline

Returning value to shareholders through NCIB, dividends and efficiency

CEO introduction

4

TELUS demonstrating strong results and executing on shareholder friendly initiatives

Robust postpaid net additions

5

Postpaid net adds (000s)

Q2-12

92112

Q2-13

Solid postpaid net adds with postpaid base up 5.1% y/y

Q2-11

Wireless subscribers

7.7M total

1.1Mprepaid

86%

14%

6.6Mpostpaid

100

Strong smartphone adoption and ARPU growth

6

Q2-11 Q2-12 Q2-13

5.9 6.3 6.6

Postpaid subscribers (millions)

Smartphone % of postpaid

$60.29 $61.12$58.88

Voice ARPU

Data ARPU

Smartphone penetration up 12 points to 71% of postpaid basesupporting ARPU growth of 1.4% in Q2

Q2-11 Q2-12 Q2-13

19.25

39.63

23.32

36.97

26.44

34.6842%

59%71%

Industry leading wireless churn

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1.39%

Q2-12

1.40%

Q2-13

Blended Postpaid

1.00%

Q2-12

1.03%

Q2-13Q2-11Q2-11

1.67%

1.34%

Blended and postpaid churn low and stable

Industry leading lifetime revenue per susbcriber1

8

Q2-12 Q2-13

$4,366$4,337

1 Lifetime revenue derived by dividing ARPU by blended churn rate

Q2-11

$3,526

Customer First focus generating leadinglifetime revenue per subscriber

Latest TELUS innovation in evolution of Clear and Simple customer approach

Features include unlimited nationwide talk and text, and ability to share data with your family or small business

Anticipated positive impact on subscriber economics Churn benefits from shared plans and consolidation of households

More-for-more value proposition

Enhanced simplicity supports efficiency

New innovative SharePlus rate plans

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Next evolution of Clear and Simple supports leading subscriber economics

Healthy TV and Internet growth

10

743

595

25%

TELUS TV (000s) High-speed Internet (000s)

1,3551,2776.1%

403

1,196

Continued healthy Internet and TV subscriber growthbalanced with focus on enhanced profitability

Q2-12 Q2-13Q2-11 Q2-12 Q2-13Q2-11

Q2 2013 wireless financial results

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($M, except margins) Q2 2013 Change

Revenue (external) 1,510 5.9%

EBITDA1 666 5.1%

EBITDA excl. restr. & other like costs 676 6.0%

EBITDA margin2 47.4% 0.1 pts

EBITDA margin excl. restr. & other like costs 48.1% 0.5 pts

Capital expenditures 171 (12)%

TELUS delivers another good quarter of wireless results despite increased competitive intensity

1 EBITDA does not have any standardized meaning prescribed by IFRS-IASB. For definition and explanation, see Section 11.1 in the 2013 second quarter Management’s discussion and analysis (MD&A).2 EBITDA as percentage of total network revenue

Wireless data revenue ($M)

Q2-12

512

Q2-13

601

402

Q2-11

Strong Q2 data revenue growth of 17% year-over-yearData now 43% of wireless network revenue, up 4 points

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Q2 2013 wireline financial results

($M, except margins) Q2 2013 Change

Revenue (external) 1,316 6.3%

EBITDA 332 (1.4)%

Normalized EBITDA1 361 7.3%

EBITDA margin2 24.5% (1.8) pts

Normalized EBITDA margin 26.6% 0.3 pts

Capital expenditures 340 (3.9)%

Strong revenue growth driven by DataNormalized EBITDA up 7.3%

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1. Normalized EBITDA does not have any standardized meaning prescribed by IFRS-IASB. This term is defined in this presentation as EBITDA excluding restructuring and other like costs, and the gain net of equity losses related to TELUS Garden residential real estate partnership.

2. EBITDA as percentage of total revenue.

Wireline data revenue ($M)

Q2-12

689

Q2-13

792

635

Q2-11

Strong data revenue growth of 15% driven by TV and InternetData revenue 60% of external revenue, up 4 points

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Q2 2013 consolidated financial results

($M, except EPS) Q2 2013 Change

Revenue (external) 2,826 6.1%

EBITDA 998 2.9%

Normalized EBITDA1 1,037 6.5%

EPS (basic) 0.44 (4.4)%

Adjusted EPS2 0.54 12.5%

Capex 511 (6.6)%

Simple cash flow (EBITDA less capex) 487 15%

Strong growth in revenue, earnings and simple cash flow

151. Normalized EBITDA does not have any standardized meaning prescribed by IFRS-IASB. This term is defined in this presentation as EBITDA

excluding restructuring and other like costs, and the gain net of equity losses related to TELUS Garden residential real estate partnership. 2. Adjusted EPS does not have any standardized meaning prescribed by IFRS-IASB. See appendix for definition.

Analysis of Adjusted EPS

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($ per share) Q2 2012 Q2 2013 Change

Basic EPS 0.46 0.44 (4.4)%

TELUS Garden1 (0.01) -

Restructuring and other like costs 0.01 0.04

Long-term debt prepayment premium - 0.03

Income tax-related adjustments 0.02 0.03

Adjusted EPS 0.48 0.54 12.5%

Adjusted EPS up 12.5% y/y

1 After-tax gain net of equity losses related to TELUS Garden residential real estate partnership.

$0.48

$0.54 $0.07 $0.01 ($0.01) ($0.01)

Adjusted EPS continuity analysis

Adjusted EPS growth driven by strong EBITDA growth

171 Normalized EBITDA excludes restructuring and other like costs and after-tax gain net of equity losses related to TELUS

Garden residential real estate partnership.2 Normalized financing excludes long-term debt prepayment premium.

Q2-12Adjusted

NormalizedEBITDA1

Depr &Amort

Higher Blended Statutory Tax

Rates

Q2-13Adjusted

Normalized Financing

costs2

investor relations1-800-667-4871telus.com/investorsir@telus.com

2012 2013      Q2 Q2

EBITDA 970 998

Capital expenditures (548) (511)

Simple Cash Flow (EBITDA less Capital expenditures) 422 487

Net employee defined benefit plans expense (recovery) 26 28

Employer contributions to employee defined benefit plans (15) (130)

Interest expense paid, net (106) (128)

Income taxes received (paid), net (31) (82)

Share-based compensation 9 13

Restructuring payments net of cash payments (13) 4

Deduct gain net of equity losses related to TELUS Garden (8) -

Free Cash Flow 284 192

Purchase of shares for cancellation - (238)

Dividends (189) (209)

Cash payments for acquisitions and related investments (11) (3)

Real Estate joint venture (5) (6)

Working capital and other (19) (8)

Funds available for debt redemption 59 (272)

Net issuance (repayment) of debt (55) 522

Increase (decrease) in cash 4 250

Appendix – Q2 2013 free cash flow comparison

Adjusted EPS does not have any standardized meaning prescribed by IFRS-IASB. This term is defined in this presentation as excluding (after income taxes): 1) Gain net of equity losses related to TELUS Garden residential real estate partnership; 2) Restructuring and other like costs; 3) Long-term debt pre-payment premium; and 4) Income tax-related adjustments. For further analysis of the aforementioned items see Section 1.3 in the 2013 second quarter Management’s discussion and analysis.

Glossary

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