Q1 2013

TELUS investor conference call

May 9, 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 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 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 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). In addition, there can be no assurance that the Company will initiate a normal course issuer bid. 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

Q1 operational highlights

Q1 financial results

Questions and Answers

3

Series of shareholder friendly initiatives

Increasing dividend July 2 – up 11.5% from a year ago

Extending dividend growth program of circa 10% annually to 2016

Launching $500M issuer bid to December 2013, subject to TSX approval

Targeting share repurchase program of $500M in 2014, 2015, 2016

Reporting strong Q1 results

CEO introduction

4

Returning to shareholders up to $6B or $10 per share 2013 - 2016

Robust postpaid net additions

5

Postpaid net adds (000s)

Q1-12

5263

Q1-13

Postpaid base up 6.6% YoYNow 2nd largest player in national mobility market

Q1-11

Wireless subscribers

7.7M total

1.1Mprepaid

86%

14%

6.6Mpostpaid

59

Strong smartphone adoption and ARPU growth

6

Q1-11 Q1-12 Q1-13

5.8 6.2 6.6

Postpaid subscribers (millions)

Smartphone % of postpaid

$58.87 $60.04$57.89

Voice ARPU

Data ARPU

Smartphone penetration up 12 points to 68% of postpaid basesupporting ARPU growth of 2% in Q1

Q1-11 Q1-12 Q1-13

17.71

40.18

22.83

36.04

25.62

34.4238%

56%68%

Industry leading wireless churn

7

1.55%

Q1-12

1.48%

Q1-13

Blended Postpaid

1.14%

Q1-12

1.11%

Q1-13Q1-11Q1-11

1.70%

1.33%

Best Q1 blended churn since 2007Cost of Retention stable

Industry leading lifetime revenue per susbcriber1

8

Q1-12 Q1-13

$4,057$3,798

1 Lifetime revenue derived by dividing ARPU by blended churn rate

Q1-11

$3,405

Industry leading ARPU and churn generating leading lifetime revenue per subscriber

Healthy TV and Internet growth

9

712

553

29%

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

1,3421,2576.8%

358

1,183

TELUS focused on balancing subscriber growth with profitability

Q1-12 Q1-13Q1-11 Q1-12 Q1-13Q1-11

Continued strength in Optik

10

TELUS TV Residential NALsHigh-speed Internet

Q1-12 Q1-13

60K50K

-34K

44K

16K

-47K

34K

16K

TV and high-speed Internet loading exceedsresidential NAL losses for tenth consecutive quarter

Q1 2013 wireless financial results

11

($M, except margins) Q1 2013 Change

Revenue (external) 1,472 6.4%

EBITDA1 666 7.4%

EBITDA margins (network revenue)

48.6% 0.5 pts

Capital expenditures 134 (11)%

TELUS delivers another strong quarter of wireless results

1 For definition, see Section 11.1 in Q1 2013 Management’s discussion and analysis

Wireless data revenue ($M)

Q1-12

498

Q1-13

583

366

Q1-11

Strong Q1 data revenue growth of 17% year-over-yearData now 43% of wireless network revenue, up 4 points

12

Q1 2013 wireline financial results

($M, except margins) Q1 2013 Change

Revenue (external) 1,284 2.9%

EBITDA 368 1.9%

EBITDA margins(total revenue)

27.8% (0.2) pts

Capital expenditures 333 15%

Another quarter of EBITDA growth reflecting revenue growth and improved Optik TV and high-speed Internet margins

13

Wireline data revenue ($M)

Q1-12

700

Q1-13

764

619

Q1-11

Strong data revenue growth of 9% driven by TV and InternetData revenue 60% of external revenue, up 4 points

14

Q1 2013 consolidated financial results

($M, except EPS) Q1 2013 Change

Revenue (external) 2,756 4.8%

EBITDA 1,034 5.4%

EPS (basic) 0.56 14%

Capex 467 5.9%

EBITDA less capex 567 5.0%

Free cash flow1 (FCF) 358 __

FCF before cash taxes 506 25%

1 For definition, see Section 11.2 in Q1 2013 Management’s discussion and analysis

Strong consolidated results driven by both wireless and wireline 

15

EPS continuity analysis

Higher EBITDA

Change in tax expense

Depreciation & Amortization

Q1-13 reported

Q1-12 reported

EPS up 14.3% driven by strong EBITDA growth

16

0.490.06 0.02

(0.01)0.56

$1.1 billion 11 year at 3.35%

$600 million 30 year at 4.40%

Funds $300 million 5.0% Notes maturing June 2013

Redeeming one year early May 2014 $700 million 4.95% Notes

Early redemption fee to negatively impact Q2 EPS by approx 3 cents

Successful $1.7 billion financing

17

TELUS long-term debt maturity profile ($M)

Reducing financing risk Average term to maturity 9 years from 5.2

18

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2043

300

700 625 600

700

1,000 1,000

175 245

500

1,100

200

600

20131 20141

1 $300 million June 2013 notes to be repaid at maturity; $700 million May 2014 notes to be redeemed one year early on May 15, 2013

New debt issue

Debt to be repaid

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

Appendix – Q1 2013 free cash flow comparison

2013Q1

2012Q1

C$ millions

EBITDA 981 1,034

Capex (441) (467)Net Employee Defined Benefit Plans Expense 27 26

Employer Contributions to Employee Defined Benefit Plans (116) (36)

Interest expense paid, net (55) (57)

Income taxes refunded (paid), net (48) (148)

Share-based compensation 7 12

Restructuring costs net of cash payments 2 (6)

Free Cash Flow 358

(188) (209)Dividends

Working Capital and Other (62) (138)

Funds Available for debt redemption 61 (19)

Net Issuance (Repayment) of debt (39) (67)

Increase (decrease) in cash 22 (85)

Cash payments for acquisitions and related investments (30)

358

(26)

Real estate joint venture (16) (4)