Robert McFarlane

EVP & Chief Financial Officer

May 14, 2010

RBC Capital Markets Telecommunications & Media Fixed Income Conference

2TELUS forward looking statements

Today's presentation and answers to questions contain statements about expected future events and financial and operating results 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 results 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 2010 guidance), qualifications and risk factors referred to in the Management’s discussion and analysis in the 2009 annual report and in the 2010 first quarter report. 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.

Successful and strategic transformation

strategic focus on data and wireless 3

Revenue

$6.0B

201012000

$9.6B

Data & Wireless

28%

Local & Long

Distance72%

Data &Wireless

72%28%

Local &Long

Distance

Simple cash flow returning to more historical levels in 2010 following peak capital investments in 2009

cash flow by segment 4

20011

2002 2003 2004 2005 2006 2007 20081

0.1

Wireline

Wireless

1 Wireless excludes payment for wireless spectrum of $356M in 2001 and $882M in 20082 See forward looking statement – midpoint of 2010 guidance

0.3

1.61.8

2.0 2.0 2.0 1.9

EBITDA less capex ($billions)

1.4

2009

1.9

2010E2

strategic investment in new 3G+ wireless network

HSPA network launched November 5th, 2009

Provides service to more than 31 million or 93% of Canadians

Enabling wireless applications with faster download speeds

Access to international roaming to more than 200 countries

Access to latest smartphones

5

Generating strategic and competitive benefits

BlackBerry Bold

Q1 wireless metrics 6

Wireless KPIs demonstrated significant improvement in Q1

Q1-09 Q1-10 change

Net adds (000s) 48 51 6.3%

Postpaid net adds (000s) 44 65 48%

ARPU $58.39 $55.80 (4.4)%

Churn 1.62% 1.55% (7) pts

COA per gross add $336 $322 (4.2)%

business and residential NALs 7

Stable business NAL losses. Residential NAL decline reflects aggressive price competition from cable-TV competitor

Q1-10

-50K-44K

-8K

Q1-09Q1-10Q1-09

-9K

Business*NAL losses

Residential*

NAL losses

* Historic NALs restated for prior periods starting in 2007 as a result of a periodic subscriber measurement review and correction.

strategic investment in wireline broadband

1.8 million homes now passed with Fibre to the node in AB and BC

Expect 90% coverage of top 48 communities in AB/BC by end of 2010

Cost effective upgrade to VDSL2 underway with speeds up to 30Mbps

Continuing fibre to the home in new residential developments

Fibre to the building (ethernet to the suite) in multi dwelling units

8

Continued increases in broadband coverage to 1.8 million homes

building TELUS TV momentum

Launched Microsoft Mediaroom in February 2010

Exclusive provider of PVR Anywhere in Western Canada

Launched TELUS Satellite TV in mid-2009

9

TELUS TV is available to over 90% of homes in Alberta and BC

TELUS TV customers (000s)

Q12009

41

98

199

Q12010

Q12008

focus on operational efficiency 10

Domestic telecom staff count down 8% in 2009$135M in annual EBITDA savings expected in 2010

Total restructuring costs and savings ($M)

20

190

59

2007 2008 2009 2010E

75

335

2007-2010E

135EBITDA savings

Restructuring

TELUS’ strong balance sheet and credit policies 11

Long term policies & guidelines

Q1-10 Met

Net debt to EBITDA(excluding restructuring)

1.5 to 2.0X 2.0X √

Minimum available liquidity $1 billion $1.7 billion √

Credit Rating BBB+ to A-BBB+/A–,

stable trend√

Decade long track record of prudent financial policies

New dividend payout ratio is 55 to 65% of sustainable net earnings

2010 annual guidance* 12

2010 guidance confirmed on May 5, 2010

* 2010 guidance as at May 5th 2010. See forward looking statement caution

($B, excl. EPS) 2010 guidance12 Change

Revenue $9.8 to $10.1 2 to 5%

EBITDA $3.5 to $3.7 flat to 6%

EPS1 $2.90 to $3.30 3 to 17%

Capex Approx $1.7 (19)%

Expect 50% or greater increase in 2010 free cash flow

long-term debt maturities 14

Average term to maturity of debt is 4.8 years

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021+

C$ millions

81

2,065

795

300700 622 690

989616

2020

Deferred FX Hedge Liability

defined benefit pension plans 15

99% funded on accounting basis

2009 2010E*

Discount rate 7.25% 5.85%

Long-term expected return 7.25% No change

Pension expense ($M) $18 $28

Pension funding ($M) $179 $143

* See forward looking statement caution.

IFRS changeover update 16

Fulsome changeover plans and status in section 8.2 in MD&A

Beginning Q1/10, TELUS began preparing Canadian GAAP to IFRS for internal use

Starting January 1, 2011 TELUS will prepare and report interim and annual 2011 financial statements

The company has completed its initial identification, evaluation and selection of accounting policies necessary to change over to IFRS

Q1 2010 consolidated financial results 17

Growth in earnings and free cash flow resulting from expense control and reduced capital expenditures

($M excl. EPS) Q1-09 Q1-10 change

Revenue (external) 2,375 2,375 -

Operating expenses 1,441 1,429 (0.8)%

Restructuring costs 28 6 n.m.

EBITDA 906 940 3.8%

EPS 1.01 0.84 (17)%

EPS – excluding tax adj. 0.81 0.83 2.5%

Capex 474 311 (34)%

Free cash flow 125 246 97%

Q1 free cash flow

2010Q1

2009Q1

C$ millions

EBITDA 906 940

Capex (474) (311)

Net Employee Defined Benefit Plans Expense (Recovery) 4 7

Employer Contributions to Employee Defined Benefit Plans (53) (45)

Interest expense paid (includes income tax interest income) (49) (36)

Cash Income Taxes and Other (214) (251)

Non-cash portion of share-based compensation 13 8

Restructuring payments (net of expense) (1) (49)

Donations and securitization fees included in other expense (3) (10)

Free Cash Flow (before share-based compensation payment) 129 253

Share Based Compensation Paid (4) (7)

Free Cash Flow (per current public guidance methodology) 125 246

Proceeds from sale of property and other assets (Acquisitions)

(151) (151)Dividends - 3

Working Capital and Other 12 (42)

Funds Available for debt redemption (14) 77

A/R Securitization - (100)

Net Issuance (Repayment) of debt 75 28

Increase (Decrease) in cash 61 5

Issuance of non-voting shares* 0 21

* Non-voting share issuance from treasury for shareholders in the DRIP