1. Robert McFarlane EVP & Chief Financial Officer Joe Natale EVP & Chief Commercial Officer Darren Entwistle President & Chief Executive Officer August 5, 2011 Q2 2011 TELUS investor conference call

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 2011 annual guidance), qualifications and risk factors (including the ability to sustain dividend growth model of circa 10% per annum with semi-annual dividend increases to 2013) referred to in the Management’s discussion and analysis in the 2010 annual report, and in the 2011 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.

3. 3 Agenda  Wireless and wireline segment review  Consolidated financial review  Updates  Guidance  Financing  Regulatory  Operations  Questions and Answers

4. Q2 2011 wireless financial results 4 Strong revenue and EBITDA growth driving cash flow growth of 9% ($M)Q2-10Q2-11change Revenue (external)1,2161,3339.6% EBITDA5205658.7% EBITDA margins 1 (total revenue) 42.4%42.1% (0.3) pts Capex991078.1% EBITDA less capex4214588.8%    1 Margins on network revenue in Q2/11 and Q2/10 were 45.7% and 45.8%, respectively  

5. Wireless subscriber results 5 Healthy postpaid net additions despite loss of 32K Federal Government subscribers prepaid 18% Wireless subscribers postpaid 82% Postpaid net adds 7.1M total 5.9M 1.2M Q2-10 109K 92K Q2-11 Total net adds Q2-10 124K 94K Q2-11

6. Wireless data revenue 6 Data revenue growth of 49% Six consecutive quarters of accelerating y/y data growth Q2-10 $270M Q2-11 $402M $212M Q2-09

7. Marketing and retention 7 Churn of 1.51% excluding loss of federal contract. Investments in COA/COR expense reflects record Q2 smartphone loading and competitive market dynamics Q2-10Q2-11change Gross adds (000s)4134478.2% Churn1.45%1.67% 0.22 pts COA per gross add$342$370 8.2% COA expense$142M$165M 16% Retention expense$114M$149M31%     

8. Blended ARPU analysis 8 ARPU up 2.5% driven by strong data ARPU growth of 39% partially offset by 9% voice decline Data Q2-11 $58.88 Voice $57.47 Q2-10 % of ARPU Q2-11Q2-10 24% 76% 67% 33% 13.80 19.25 43.67 39.63

9. 2011 wireless annual guidance* update 9 Consolidated2011 revised guidancey/y growth Revenue (external) $5.4 to 5.5B (up $200 to $150 million) 8 to 10% EBITDA $2.15 to 2.25B (unchanged) 6 to 11% * See forward looking statement caution Strong start to 2011 leads to increased wireless revenue guidance 

10. Q2 2011 wireline financial results 10 Results reflect strong subscriber growth and investments in Optik services and continued erosion of high margin legacy services ($M)Q2-10Q2-11change Revenue (external)1,1841,2213.1% EBITDA405385(4.9)% EBITDA margins (total revenue) 33.1%30.5%(2.6) pts Capex29834917% EBITDA less capex10736(66)%     

11. TELUS TV subscribers 11 Strong momentum continues with TV net adds up 59% y/y and total subscribers up 77% surpassing 400K milestone Q2-10 29K 46K Q2-11 TELUS TV net additions * TELUS TV subscribers* * Includes both IP TV and TELUS Satellite TV subscribers Q2-11Q2-10 228K 403K

12. TELUS high-speed Internet net additions 12 Strong growth in HSIA net adds reflects success of enhanced Optik services and bundling since launch in June 2010 Q1-10 3K Q2-10 15K Q3-10Q4-10Q1-11 18K 16K 13K Q2-11

13. TELUS network access lines 13 Residential line losses improved 39% y/y – best result in 5 years Business line increase reflects gain in wholesale customers Q2-11 -51K -31K -12K 7K Q2-10 BusinessResidential

14. 2011 wireline annual guidance* update 14 Consolidated2011 revised guidancey/y growth Revenue (external) $4.825 to 4.925B (up $100 to $50 million) 1 to 3% EBITDA $1.525 to 1.625B (unchanged) (6)% to flat * See forward looking statement caution Wireline revenue increase reflects subscriber growth in Optik services 

15. Q2 2011 consolidated financial results 15 Strong revenue growth driven by wireless and wireline data Free cash flow up 20% ($M, except EPS)Q2-10Q2-11change Revenue (external)2,4002,5546.4% EBITDA9259502.7% EPS (basic)0.940.995.3% Capex39745615% EBITDA less capex528494(6.4)% Free cash flow23928620%      

16. EPS continuity analysis ($) 16 EPS growth driven by lower financing costs and EBITDA growth 0.94 Higher Normalized EBITDA 1 Lower Pension & Restr. costs Lower Financing costs 1 Normalized EBITDA excludes pension and restructuring costs Q2-11 reported 0.99 Lower Tax rates & Other 0.96 Excl. Tax Adj. 0.05 Higher Dep & Amort -0.07 0.03 - 0.02 Q2-10 reported 0.03 Higher O/S shares 0.91 Excl. Tax Adj. Positive income tax-related adjustments

17. TELUS successfully refinances U.S. dollar notes 17 Well staggered debt maturity profile out 9 years with lower financing costs in future  In May successfully issued $600M senior unsecured notes  3.65% 5-year notes, maturing May 2016  Proceeds used, in combination with commercial paper, to redeem maturing 8% U.S. dollar notes and associated cross currency interest rates swaps (effective cost 8.5%)  Final of three tranches undertaken since December 2009

18. 2011 consolidated annual guidance* update 18 Consolidated2011 revised guidancey/y growth Revenue (external) $10.225 to 10.425B (up $300 to $200 million) 4 to 6% EBITDA $3.675 to 3.875B (unchanged) 1 to 6% EPS – basic $3.50 to 3.90 (unchanged) 7 to 19% Capex Approx. $1.8B (up $100 million) 5% * See forward looking statement caution Increasing 2011 revenue and capex guidance  

19. Industry vertical integration update 19 CRTC has issued temporary policy decision prohibiting withholding of signals that are subject of negotiations  In June TELUS presented its views on Vertical Integration to CRTC  Hearing proceeded as TELUS expected  Independent distributors, including TELUS, presented at request of CRTC, a Code of Conduct, which includes: 1. A prohibition on exclusive distribution of TV content on any platform 2. Access to content on commercially reasonable terms 3. Where a dispute arises, complainant must be “held harmless” pending resolution 4. Restrictions on sharing confidential info between broadcasting and carrier side of Vertically Integrated company  TELUS expects CRTC decision this Fall

20. Q2 2011 summary 20 TELUS successfully advancing its 2011 priorities  Strong consolidated revenue growth driven by both wireless and wireline  Good wireless and Optik subscriber results with improved residential NAL losses  Free cash flow growth of 20%  Dividend declared of $0.55 up 10% consistent with dividend growth model  Increased 2011 revenue and capex guidance

21. Strong smartphone adoption driving ARPU growth 21 Smartphone base increased 80% to 2.5 million Data ARPU increased by 39% year over year Q2-09Q2-10Q2-11 5.1 5.5 5.9 16% 25% 42% Postpaid subscribers (millions) Smartphone % of postpaid $11.56 $13.80 $19.25 Q2-09Q2-10Q2-11 Wireless Data ARPU

22. Future Friendly Home - continued Optik momentum 22 TELUS TV Residential NALs High-speed Internet TV and High-Speed Internet loading more than offsetting residential NAL losses for fourth consecutive quarter Q2-10 32K -51K Q2-11 59K -31K 29K 46K 20K -43K 17K Q2-09

23. Evolution of Clear and Simple  Transformed contracts via device ownership agreements  Simplified and lowered international roaming rates  Offer best customer experience for key over-the-top partners  Clear and Simple philosophy extends across TELUS Clear and Simple approach driving customer loyalty and differentiation while enhancing operating efficiency

25. Appendix – free cash flow 2011 Q2 2010 Q2 C$ millions EBITDA 925950 Capex (397)(456) Net Employee Defined Benefit Plans Expense (Recovery)(3)(7) Employer Contributions to Employee Defined Benefit Plans (44) (15) Interest expense paid (187) (145) Cash Income Taxes and Other (58) (50) Share-based compensation 6 5 Restructuring payments (net of expense) (3) 4 Free Cash Flow 239 286 (152)(170) Dividends Working Capital and Other (105) (241) Funds Available for debt redemption 16(174) Net Issuance (Repayment) of debt (21) 172 Decrease in cash (5)(2) Dividends reinvested (DRIP) 32 Common and Non-voting shares issued 2 2 Acquisitions - (51) -

26. 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