Q4 2012 and 2013 targetsTELUS investor conference call February 15, 2013

Darren EntwistlePresident & Chief Executive OfficerJoe NataleEVP & Chief Commercial OfficerJohn GosslingEVP & Chief Financial Officer

TELUS Forward Looking Statement

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 targets, semi-annual dividend increases to 2013 and CEO three-year goals to 2013 for EPS and free cash flow growth to 2013 excluding spectrum costs), qualifications and risk factors referred to in the fourth quarter Management review of operations and Management’s discussion and analysis in the other 2012 quarterly reports and 2011 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.

See Key Assumptions and Forward Looking Statements in TELUS’ fourth quarter 2012 and 2013 Targets news release dated February 15, 2013.

2

3

Agenda

CEO Introduction and 2013 corporate priorities

Q4 operational highlights

Q4 financial results

2013 targets and key assumptions

Questions and Answers

4

CEO Introduction

Successfully completed share exchange – thank you!

Reporting strong Q4 and 2012 results

Building on momentum – 2013 targets

Updating investors on dividend growth model and share repurchase intentions at May annual meeting

TELUS 2013 corporate priorities

5

1. Delivering on TELUS’ Future Friendly brand promise by putting Customers First

2. Further strengthening our operational efficiency and effectiveness, thereby fuelling our capacity to invest for future growth

3. Continuing to foster our culture for sustained competitive advantage

4. Increasing our competitive advantage through technology leadership across cohesive broadband networks, Internet Data Centres, information technology and client applications

5. Driving TELUS’ leadership position in its chosen business and public sector markets through an intense focus on high-quality execution and economics

6. Elevating TELUS’ leadership position in healthcare information by leveraging technology to deliver better health outcomes for Canadians

History of operational efficiency

2002-2012

$1.6B

$1.2B

Cumulative one-time

restructuring costs

2002-2012

Cumulative ongoing annual EBITDA

savingsYear

RestructuringCosts ($M)

2002 5702003 282004 532005 542006 682007 202008 592009 1902010 742011 352012 48Total 1,199

EBITDA savings used to offset dilution of strategic initiatives

6

Ongoing earnings enhancement program

7

Improvements in annual EBITDA of $250 million by 2015

Targeting wireline and wireless EBITDA improvement

Program reflected in 2013 consolidated and segmented targets

Increasing restructuring costs for 2013 to $75M ($48M in 2012)

Targeting 2013 wireline EBITDA growth of 0-6% vs (5.5)% in 2012 (pre IAS 19)

Efficiency continues to fuel our growth and financial performance

Healthy postpaid net additions

Postpaid net adds (000s)

Q4-11

148 123

Q4-12

8

2011 2012

425 414

20122011

Total subscriber base (000s)

Driving 4.5% increase in total subscriber base in 2012

4.5%7,6707,340

415

2010Q4-10

109

6,971

2010

Q4-10 Q4-11 Q4-12

5.7 6.16.5

Postpaid subscribers (millions)

Smartphone % of postpaid

$59.08 $60.95

Q4-10 Q4-11 Q4-12

$58.48

33%

53%66%

42.47

16.01

37.43

21.65

35.66

25.29

9

Smartphone base up 34% y/y to 4.3 million supporting strong ARPU growth of 3.2% in Q4 2012

Strong smartphone adoption and ARPU growth

Voice ARPU

Data ARPU

Industry leading churn

1.67%

Q4-11

Best 4th quarter churn rates in 6 years

10

1.51%

Q4-12

Blended Postpaid

1.23%

Q4-11

1.12%

Q4-12Q4-10Q4-10

1.72%

1.33%

Industry leading lifetime revenue per susbcriber1

14%

Q4-11 Q4-12

$4,036

$3,538

Industry leading ARPU and churn generating leading lifetime revenue per subscriber

111 Lifetime revenue derived by dividing ARPU by blended churn rate

Q4-10

$3,400

Strong TV and Internet subscriber growth continues

2012 20122011 2011

TELUS focused on balancing subscriber growth with profitability

678

509

33%

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

1,3261,242

6.8%

12

2010

314

2010

1,167

Q4 2012 wireless financial results

($M) Q4-12 % change

Revenue (external) 1,533 7.7%

EBITDA1 569 14%

EBITDA margin(network revenue)

41.3% 2.1 pts

Capex 191 14%

EBITDA less capex 378 14%

13

TELUS continues to deliver very strong wireless results

1 For definition, see Section 7.1 in the 2012 fourth quarter Management’s review of operations

Wireless data revenue ($M)

Q4-11

466

Q4-12

570

326

Q4-10

14

Robust Q4 data revenue growth of 22% year-over-year2012 data now 41% of wireless network revenue up 7 points

Q4 2012 wireline financial results

($M) Q4-12 % change

Revenue (external) 1,318 4.1%

EBITDA 378 1.1%

EBITDA margins(total revenue)

27.8% (0.8) pts

Capex 330 (4.1)%

EBITDA less capex 48 60%

15

EBITDA growth reflects strong revenue growth and improved Optik TV and high-speed Internet margins 

Wireline data revenue ($M)

Q4-11

680

Q4-12

770

591

Q4-10

16

Strong Q4 data revenue growth of 13% year-over-year2012 data now 57% of external revenue up 5 points

Q4 2012 consolidated financial results

($M, except EPS) Q4-12 % change

Revenue (external) 2,851 6.0%

EBITDA 947 8.4%

EPS (basic) 0.89 17%

Capex 521 1.8%

EBITDA less capex 426 18%

Free cash flow1 263 29%

17

Consolidated results driven by both wireless and wireline Strong free cash flow growth of 29% 

1 For definition, see Section 7.2 in the 2012 fourth quarter Management’s review of operations

EPS continuity analysis

Higher Normalized

EBITDA2

HigherPension,

Restructure & Other

Depreciation & Amortization

Q4-12 reported1

Q4-11 reported1

1 EPS for both Q4/11 and Q4/12 included favourable income tax-related adjustments of three cents per share. 2 Normalized EBITDA excludes pension and restructuring costs. 18

0.76

0.18

(0.04)

0.89

EPS up 17% driven by strong EBITDA growth

0.01

2012 guidance scorecard – for discussion

19

Met or exceeded seven of eight targets set in December 2011

($M, except EPS)2012 actuals

Met originaltargets

Consolidated external revenue 10,921

Wireless revenue 5,845

Wireline revenue 5,076

Consolidated EBITDA 3,972

Wireless EBITDA 2,467

Wireline EBITDA 1,505

EPS 4.05

Capital expenditures 1,981

2013 targetsand assumptions

See forward-looking statement in TELUS fourth quarter 2012 and

2013 targets news release

Application of accounting standardIAS 19 Employee Benefits

21

Accounting change has no impact to free cash flow

($M, except EPS) 2012 Reported

Effect of applying IAS 19, Employee

Benefits

2012 Adjusted

Wireline EBITDA 1,505 (104) 1,401

Wireless EBITDA 2,467 (9) 2,458

Earnings per share1 4.05 (0.36) 3.69

Dividend payout ratio 64% 7 pts 71%

Free cash flow 1,331 No impact 1,331

1 EPS impact inclusive of an additional $42 million in financing costs or $(0.10) per share

Dividend payout ratio guideline revised

Dividend payout ratio guideline raised 10 pts to a range of 65 to 75% of sustainable net earnings on a prospective basis

Change reflects application of amended accounting standard IAS 19 Employee Benefits

TELUS committed to returning cash to shareholders through sustainable dividend growth model

2008 2009 2012

794

22

2010 2011

715642601584

Dividends paidto shareholders ($M)

2013 segmented targets1 (after IAS 192)

Wireless ($B) 2013 targets Targeted change

Revenue (external) $6.2 to 6.3 6 to 8%

EBITDA $2.575 to 2.675 5 to 9%

Wireline ($B)

Revenue (external) $5.2 to 5.3 2 to 4%

EBITDA $1.375 to 1.475 (2) to 5%

23

1 See forward looking statement caution and assumptions in Section 1.5 of Q4-12 management review of operations2 2013 targets and growth rates are presented including application of the amended accounting standard IAS 19

Employee Benefits (2011).

Targets build on strong results achieved in 2012

Wireline EBITDA growth of flat to 6% prior to applying new IAS-19

$B, except EPS 2013 targets Targeted change

Revenue (external) $11.4 to 11.6 4 to 6%

EBITDA $3.95 to 4.15 2 to 8%

EPS $3.80 to 4.20 3 to 14%

Capital expenditures Approx $1.95

24

Targets demonstrate benefits of ongoing network and service-related investments, combined with customer-focused operational execution

2013 consolidated targets1 (after IAS 192)

1 See forward looking statement caution and assumptions in Section 1.5 of Q4-12 management review of operations2 2013 targets and growth rates are presented including application of the amended accounting standard IAS 19

Employee Benefits (2011).

Other notable 2013 assumptions1Other notable 2013 assumptions1

Pension accounting discount rate of 3.9%

Defined benefit pension expense of approx $160 million (approx $110M in operating expenses and $50 million in financing costs)

Defined benefit pension plan cash funding of $195 million

Restructuring costs of approx $75 million

Cash taxes in the range of $390 to $440 million

Statutory income tax rate of 25 to 26%

Net cash financing costs of approximately $350 million

Key assumptions and sensitivities listed in section 1.5 in Q4 Management’s review of operations

251 See forward looking statement caution and assumptions in Section 1.5 of Q4-12 management review of operations

Consolidated revenue and EBITDA growth driven by both wireless and wireline

EPS growth driven by higher EBITDA

Capex similar to previous year

Strong free cash flow supports dividend growth model

2013 targets summary 2013 targets summary

Targets build on strong results achieved in wireless and wireline,and benefits of ongoing major strategic network investments

26

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

Net cash interest payment

EBITDA

Capex

Net cash tax payment1

Cash pension contribution (net of pension expense in EBITDA)2

Free Cash Flow (before dividends and spectrum)

Appendix – 2013 free cash flow calculation ($M) Appendix – 2013 free cash flow calculation ($M)

1 Midpoint used to calculate FCF range2 Cash pension contribution of $195 million less $110 million pension expense in EBITDA

~(350)

2013

$3,950 to 4,150

~(1,950)

(390) to (440)

~(85)

1,150 to 1,350

Free Cash Flow (before dividends, spectrum and pension contributions)

1,235 to 1,435

28

Simple Cash flow 2,000 to 2,200

Appendix – Q4 2012 free cash flow comparison

2012Q4

2011Q4

C$ millions

EBITDA 874 947

Capex (512) (521)

Net Employee Defined Benefit Plans Expense (Recovery) (8) (3)

Employer Contributions to Employee Defined Benefit Plans (35) (28)

Interest expense paid, net (109) (108)

Income taxes refunded (paid), net 9 (13)

Share-based compensation (20) (20)

Restructuring costs net of cash payments 6 9Free Cash Flow 263

(179) (199)Dividends

Working Capital and Other 21 (65)

Funds Available for debt redemption 20 (5)

Net Issuance (Repayment) of debt (30) 75

Increase in cash (10) 70

Cash payments for acquisitions and related investments (31)

204

(5)

Deduct Transactel gain (1)

Common and non-voting shares issued 5 1