Q1 2010 TELUS investor conference call

1. Q1 2010 TELUS investor conference call Robert McFarlane EVP & Chief Financial Officer Joe Natale EVP & Chief Commercial Officer May 5, 2010

2. TELUS 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.

3. agenda 3 • Wireless and wireline segment review • Consolidated financial review • Updates • Operating efficiency program • Cash and accounting for taxes • Dividend policy and payout • IFRS • Question and answers

4. Q1 2010 wireless financial results       Wireless cash flow up significantly on back of lower capex and EBITDA increase

5. subscriber results Total net adds Postpaid net adds Wireless subscribers 1.2M 65K prepaid 19% 51K 48K 44K postpaid 81% 5.4M Q1-10 Q1-09 Q1-10 Q1-09 6.6 million total High quality postpaid net adds increased 48% y/y and represented >100% of net adds

6. smartphone mix • Smartphone subscribers represent 22% of postpaid base compared to 15% a year ago • One third of all smartphone loading new to TELUS • iPhone and Blackberries dominate retention loading • 26% of iPhone subscribers new to TELUS Smartphone subscriber base increased 64% y/y

7. blended ARPU breakdown Data Voice % of ARPU $58.39 $55.80 11.26 19% 13.14 24% 47.13 81% 42.66 76% Q1-09 Q1-10 Q1-09 Q1-10 Strong data growth with improving trend in overall ARPU down 4.4% y/y compared to 7.7% decline in Q4/09

8. data revenue $258M $208M $147M BlackBerry Bold Q1-09 Q1-10 Q1-08 Data growth of 24% driven by continued smartphone adoption and expected to be enhanced with HSPA

9. marketing and retention      Improving trend in wireless operating metrics. Increased retention spending driven by smartphone adoption

10. Q1 2010 wireline financial results       EBITDA growth of 6% driven by decline in expenses and lower restructuring costs

11. operating expenses     * Includes DB pension expenses of $4M and $7M in Q1/09 and Q1/10, respectively Lower expenses and reduced restructuring costs driving 8% decline in total operating expenses

12. business and residential NALs Residential*NAL losses Business* NALlosses Q1-09 Q1-10 Q1-09 Q1-10 -9K -8K -44K -50K * Historic NALs restated for prior periods starting in 2007 as a result of a periodic subscriber measurement review and correction. Stable business NAL losses. Residential NAL decline reflects aggressive price competition from cable-TV competitor

13. Internet subscribers High-speed Internet net additions 14K 3K Q1-09 Q1-10 Lower HSIA also reflects aggressive price competition from cable-TV competitor

14. TELUS TV subscribers TELUS TV net additions* TELUS TV subscribers* 199K 29K 98K 20K Q1-09 Q1-10 Q1-09 Q1-10 * Includes both TELUS IP TV and TELUS Satellite TV subscribers TV continues to show strong results with 101K net adds in one year and doubling subscriber base

15. Q1 2010 consolidated financial results      Growth in earnings and free cash flow resulting from expense control and reduced capital expenditures

16. EPS continuity ($) 1.01 + 0.02 + 0.03 0.84 + 0.05 Tax Adj. - 0.06 - 0.02 0.83 Excl. Tax Adj. 0.81 Excl. Tax Adj. Q1-09 reported Restr. costs Normalized EBITDA1 Lower tax rates Dep & Amort Pension & Normalized Financing costs2 Q1-10 reported 1 Normalized EBITDA excludes restructuring and pension costs. 2 Normalized financing costs excludes interest income for Q1/09. EPS excluding income-tax related adjustments up 2.5%

17. breakdown of full time equivalent employees • International and Black’s FTE decline largely represents Q4 and Q1 seasonality Significant domestic FTE reduction primarily reflects 2009 restructuring initiatives as well as seasonal reduction

18. consolidated operating expenses breakdown    * Includes DB pension expenses of $4M and $7M in Q1/09 and Q1/10, respectively Consolidated employee-related expenses down 3.6%

19. cash and accounting for taxes • Cash taxes • Cash income tax payments of $251M paid in Q1-10 • Consists of final 2009 tax payments and commencement of 2010 instalments • Q1/10 expected to be peak quarter* • 2010 expected to be peak year* • Accounting tax • Effective tax rate of 27% due to revaluations of future income tax liabilities and reassessments of prior years tax issues * See forward looking statement caution 2010E net cash tax payment guideline unchanged at approx. $385 million to $425 million

20. strong balance sheet and credit policies • Net debt to EBITDA within long-term policy target range of 1.5 to 2.0x • Continued strong investment grade credit ratings BBB+/A- • Reduced future interest expenses by refinancing $1.7 billion in debt at lower rates of ~5% in 2009 • $2.1 billion in debt and foreign exchange hedges (effective interest rate of 8.6%) to be refinanced in 2010/2011 • Effective January 2010, dividend reinvestment plan participants receive TELUS non-voting shares issued from treasury at a 3% discount Long-standing commitment to balancing interests of debt and equity holders

21. dividend policy and payout • Based on management confidence in mid-term outlook: • Dividend payout guideline revised upward to 55 - 65% of prospective sustainable earnings (from 45 - 55%) • Quarterly dividend increased 5.3% to $0.50 per share for July 2, 2010 (from $0.475 cents) TELUS is committed to sustainable dividend growth model

22. cash flow outlook • Dividend is supported by outlook for sustainable FCF • Capex intensity moderating • June 2011 notes are refinanced at lower rates (albeit with one-time redemption cost) • Cash taxes expected to decrease from peak year 2010 levels • Restructuring expenses decrease • J-curve dilution (e.g. smartphones, large non-ILEC contract implementations) expected to moderate in 2011 • Possible spectrum auctions in 2011/2012 New dividend payout ratio consistent with maintaining strong balance sheet and debt policies

23. 2010 annual guidance* * See forward looking statement caution 2010 consolidated and segmented guidance confirmed

24. IFRS changeover update • 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 Fulsome changeover plans and status in section 8.2 in MD&A

25. Q1/10 summary • Positive trends for wireless and wireline results • ARPU decline trend improving • Strong postpaid subscriber growth • Improved cost structure helping EBITDA expansion • TELUS TV subscriber growth remains strong • Free cash flow growth of 97% • Dividend policy and payout increased • 2010 guidance confirmed Investments made in wireless and wireline broadband positioning TELUS well for future growth

27. appendix – free cash flow 2009 Q1 2010 Q1 C$ millions 906 940 EBITDA (474) (311) Capex 4 7 Net Employee Defined Benefit Plans Expense (Recovery) (53) (45) Employer Contributions to Employee Defined Benefit Plans (36) (49) Interest expense paid (includes income tax interest income) (214) (251) Cash Income Taxes and Other 13 8 Non-cash portion of share-based compensation (1) (49) Restructuring payments (net of expense) (10) (3) Donations and securitization fees included in other expense 129 253 Free Cash Flow (before share-based compensation payment) (7) (4) Share Based Compensation Paid 246 125 Free Cash Flow (per current public guidance methodology) 21 Issuance of non-voting shares* 0 (151) (151) Dividends 3 - Proceeds from sale of property and other assets (Acquisitions) (42) 12 Working Capital and Other (14) 77 Funds Available for debt redemption - (100) A/R Securitization 75 28 Net Issuance (Repayment) of debt 61 5 Increase (Decrease) in cash * Non-voting share issuance from treasury for shareholders in the DRIP

28. appendix – definitions • EBITDA: earnings, after restructuring and workforce reduction costs, 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 and workforce reduction costs, net employee defined benefit plans expense, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, cash restructuring payments, employer contributions to employee defined benefit plans, and cash related to Other expenses such as charitable donations and securitization fees • Cost of retention (COR): total costs to retain existing subscribers, often presented as a percentage of network revenue TELUS definitions for non-GAAP measures