Q3 2014

investor conference call

November 6, 2014

Darren Entwistle, Executive Chair

Joe Natale, President and Chief Executive Officer

John Gossling, EVP and Chief Financial Officer

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Today's presentation and answers to questions contain statements about financial and operating performance of TELUS (the Company) and future events, including with respect to future dividend increases and normal course issuer bids to 2016 and 2014 annual targets 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 2014 annual targets, semi-annual dividend increases through 2016 and our ability to sustain and complete multi-year share purchase programs through 2016), qualifications and risk factors referred to in the first, second, and third quarter Management’s discussion and analysis, in the 2013 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.

TELUS forward looking statement

Executing on our strategy

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TELUS consistently delivering strong results and returning significant cash to shareholders

• Increasing customer connections

• Leading wireless lifetime revenue

• Delivering exceptional customer experience

• Investing for future sustainable growth

• Returning significant cash to our shareholders

Stronger wireless postpaid net additions

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Postpaid net adds (000s)

Q3-13

106

Q3-14

Wireless subscribers1

7.99M total

1.0Mprepaid

88%

12%

6.99Mpostpaid

113

1 Wireless operating indicators exclude Public Mobile subscribers, which are all prepaid.

Year over year postpaid net additions up for first time since Q2-12

Q2-14

78

100

Q2-13Q1-14

4859

Q1-13

Industry-leading wireless churn

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1.36%

Q3-13

1.25%

Q3-14

Blended1Postpaid

0.99%

Q3-13

0.90%

Q3-14Q3-12 Q3-12

1.44%

1.10%

Industry-leading postpaid churn matches record low.Fifth consecutive quarter with postpaid churn <1%

1 Wireless operating indicators exclude Public Mobile subscribers, which are all prepaid.

Smartphone & data adoption driving ARPU growth

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Q3-12 Q3-13 Q3-14

6.4 6.7 7.0

Postpaid subscribers (millions)

Smartphone % of postpaid

$62.49$64.51

$61.42

Blended ARPU1

Q3-12 Q3-13 Q3-14

63%

75%80%

Q3 smartphone penetration up five points to 80% of postpaid base supporting strong ARPU growth of 3.2%

1 Wireless operating indicators exclude Public Mobile subscribers, which are all prepaid.

Industry-leading lifetime revenue per subscriber1,2

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Q3-13 Q3-14

$5,161$4,595

1 Lifetime revenue derived by dividing ARPU by blended churn rate.2 Wireless operating indicators exclude Public Mobile subscribers, which are all prepaid.

Q3-12

$4,265

Customers First focus supporting industry-leading lifetime revenue per subscriber – TELUS record, up 12% YoY

Growing wireline subscriber base

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TELUS TV

Residential NALs

High-speed Internet

Total wireline RGU net adds

Q1-14

24 23

-24 -19

4248

Q2-14 Q3-14

24

-24

48

-40

53

Q3-13

13

Business NALs

Delivering positive wireline subscriber growth

RGU1 net adds (000s)

1 Revenue generating units

Key third quarter operating highlights

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Strong customer-centric operating momentum in wireless and wireline supporting ongoing value creation for

investors

• Industry-leading postpaid wireless subscriber growth

• Lowest postpaid churn in North America

• Strong growth in industry-leading ARPU

• Industry-leading and expanding lifetime revenue per customer

• Most rapidly growing wireline business in Canada

• Strong EBITDA1 performance and revenue growth in both wireless and wireline

1 For definition, see section 11.1 in Q3 2014 Management’s discussion and analysis.

Q3 2014 wireless financial results

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($ millions, except margin) Q3 2014 y/y change

Revenue (external)1 1,684 +7.7%

Network revenue 1,538 +6.6%

EBITDA 700 +2.9%

EBITDA (excl. Public Mobile and restructuring) 720 +5.1%

EBITDA margin2 41.2% (2.0) pts

EBITDA margin (excl. Public Mobile and restructuring) 42.4% (1.0) pts

Capital expenditures 251 +29%

TELUS delivers another strong quarter of wireless results

1 Includes Public Mobile revenue of $19M, composed of network revenues of $17M and equipment and other revenues of $2M. 2 EBITDA as a percentage of total revenue.

Q3 2014 wireline financial results

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($ millions, except margin) Q3 2014 y/y change

Revenue (external) 1,344 +2.5%

EBITDA 365 +3.1%

EBITDA (excl. restructuring) 377 +3.3%

EBITDA margin1 26.3% +0.1 pts

EBITDA margin (excl. restructuring) 27.2% +0.2 pts

Capital expenditures 406 +12.5%

Strong EBITDA growth and margin expansion reflecting continued revenue growth momentum and efficiency flow-

through

1 EBITDA as a percentage of total revenue.

Q3 2014 consolidated financial results

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($ millions, except EPS) Q3 2014 y/y change

Revenue 3,028 +5.4%

EBITDA 1,065 +2.9%

EBITDA (excl. Public Mobile and restructuring) 1,097 +4.5%

EPS (basic) 0.58 +3.6%

Adjusted EPS1 0.64 +10%

Capital expenditures 657 +18%

EBITDA less capital expenditures 408 (15)%

Strength in both wireless and wireline delivering strong consolidated growth in revenue and profitability

1 Adjusted EPS does not have any standardized meaning prescribed by IFRS-IASB. See appendix for definition.

EPS continuity analysis

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EPS growth reflects strong EBITDA growthand lower shares outstanding from active NCIB program

Q3-13(as reported)

Q3-13 Restructuring

costs

Lower shares

outstanding

Q3-14(adjusted)

$0.56 $0.02$0.02 $0.64

$0.58

Q3-13(adjusted)

$0.06

EBITDA (excluding

restructuring & Public Mobile)

($0.06)

Q3-14items1 Q3-14

(as reported)

$0.58

1 Q3 2013 items include (after income taxes): 1) restructuring and other like costs of $0.04; and 2) long-term debt pre-payment premium of $0.02.

($0.02)

Higher Depreciation & Amortization

& Public Mobile

TELUS financing update

• Successfully issued $1.2 billion in two tranche debt offering at attractive interest rates

• Average cost of long-term debt now 4.72%

• Average term to maturity of long-term debt now 11.2 years

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Balance sheet strength with significant liquidity, positioning TELUS to make strategic investments and return capital to shareholders

Returning significant cash to shareholders

• Executing on multi-year dividend growth and share purchase programs

• 15 dividend increases since 2004 to current $0.40/share or $1.60 annually

• 13.6M shares purchased YTD through October for $524M

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2004 to mid-2014cumulative

$10.7B

$4.3B

$6.4B

Buybacks

Dividends

Strong track record of returning capital to shareholders

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Investor Relations1-800-667-4871telus.com/investorsir@telus.com

Appendix – Q3 2014 free cash flow comparison

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2014 2013 2014 2013

  Q3 Q3 Q3 YTD Q3 YTDEBITDA 1,065 1,035 3,215 3,067Capex (excluding spectrum licenses) (657) (555) (1,789) (1,533)Net employee defined benefit plans expense 21 27 65 81Employer contributions to employee defined benefit plans (22) (7) (73) (173)Interest expense paid, net (98) (62) (282) (247)Income taxes paid, net of refunds (119) (88) (465) (318)Share-based compensation 20 21 59 46Restructuring (disbursements) net of restructuring costs 9 (6) (10) (8)

Free Cash Flow 219 365 720 915

Spectrum - (67) (1,143) (67)Purchase of Common Shares for cancellation (164) (762) (500) (1,000)

Dividends paid to holders of equity shares (234) (222) (680) (639)

Cash payments for acquisitions and related investments (6) (3) (46) (32)

Real estate joint ventures (13) (5) (37) (15)

Working Capital and Other 219 241 28 104

Funds available for debt redemption 21 (453) (1,658) (734)Net issuance of debt 148 213 1,548 659Increase / (decrease) in cash 169 (240) (110) (75)

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Appendix - definitions

• EBITDA does not have any standardized meaning prescribed by IFRS-IASB. We have issued guidance on and report EBITDA because it is a key measure used to evaluate performance at a consolidated level and the contribution of our two segments. For definition and explanation, see Section 11.1 in the 2014 third quarter Management’s discussion and analysis (MD&A).

• 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) restructuring and other like costs; 2) long-term debt pre-payment premium; and 3) income tax-related adjustments. For further analysis of the aforementioned items see Section 1.3 in the 2014 third quarter MD&A.