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Q4 2013 and 2014 targets investor conference call February 13, 2014

Q4 2013 and 2014 targets investor conference call February 13, 2014. Darren Entwistle President & Chief Executive Officer Joe Natale EVP & Chief Commercial Officer John Gossling EVP & Chief Financial Officer. TELUS forward looking statement.

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Q4 2013 and 2014 targets investor conference call February 13, 2014

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  1. Q4 2013 and 2014 targets investor conference call February 13, 2014 Darren Entwistle President & Chief Executive Officer Joe Natale EVP & Chief Commercial Officer John Gossling EVP & Chief Financial Officer

  2. TELUS forward looking statement 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 the 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 the 2014 annual targets, semi-annual dividend increases through 2016, ability to sustain and complete multi-year share purchase programs through 2016), qualifications and risk factors referred to in the fourth quarter Management’s review of operations and Management’s discussion and analysis in the other 2013 quarterly reports, in the 2012 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.

  3. Agenda • CEO Introduction • Q4 operational highlights • Q4 financial results • 2014 annual targets and key assumptions • Questions and Answers

  4. CEO introduction • Executing on our strategy focused on wireless and data • Building on momentum – 2014 targets • Investing for future sustainable growth • Delivering our 2014 corporate priorities TELUS demonstrating strong results and executing on shareholder friendly initiatives

  5. 2014 Corporate Priorities • Delivering on TELUS’ future friendly brand promise by putting customers first and pursuing global leadership in the likelihood of our clients to recommend our products, services and people • Elevating our winning culture for a sustained competitive advantage • Strengthening our operational reliability, including our speed and resiliency • Increasing our competitive advantage through reliable and client-centric technology leadership • Driving TELUS’ leadership position in its chosen business and public sector markets • Advancing TELUS’ leadership in healthcare information management

  6. Healthy postpaid net additions Wireless subscribers1 Postpaid net adds (000s) 1.06M prepaid 123 113 14% 7.8M total 86% 6.75M postpaid Q4-12 Q4-13 Healthypostpaid net adds with postpaid base up 3% y/y 1. Wireless subscribers excludes 222K prepaid subscribers from Public Mobile at December 31, 2013.

  7. Industry-leading wireless churn Blended Postpaid 1.67% 1.51% 1.41% 1.23% 1.12% 0.97% Q4-12 Q4-13 Q4-11 Q4-12 Q4-13 Q4-11 Industry-leading low churn results Postpaid down 15 basis points to reach lowest level in seven years

  8. Smartphone & data adoption driving ARPU growth $61.86 $60.95 6.8 $59.08 6.5 6.1 21.65 28.17 25.29 77% 66% 53% 37.43 35.66 33.69 Q4-11 Q4-12 Q4-13 Q4-11 Q4-12 Q4-13 Postpaid subscribers (millions) Voice ARPU Smartphone % of postpaid Data ARPU Q4 smartphone penetration up 11 points to 77%of postpaid base supporting data ARPU growth of 11%

  9. Industry-leading lifetime revenue per susbcriber1 $4,387 $4,036 $3,538 Q4-11 Q4-12 Q4-13 Customers First focus generating industry-leading lifetime revenue per subscriber 1 Lifetime revenue derived by dividing ARPU by blended churn rate

  10. Strong Future Friendly Home subscriber growth TELUS TV 59K 53K High-speed Internet 50K 44K Residential NALs 38K 34K 34K 31K 21K 19K 16K 13K (25)K (32)K (34)K (33)K Q1-13 Q2-13 Q3-13 Q4-13 Combined TV and high-speed Internet net additions exceeded residential NAL losses by 2.4 times – best ratio in over 2 years

  11. Continued Optik TV innovations Now offering Optik on the go with live TV

  12. Q4 2013 wireless financial results TELUS delivers another solid quarter of wireless results 1EBITDA does not have any standardized meaning prescribed by IFRS-IASB. See appendix for definition. 2EBITDA as percentage of total network revenue.

  13. Wireless data revenue ($M) 648 570 466 Q4-12 Q4-11 Q4-13 Strong Q4 data revenue growth of 14% year-over-year Data now 45% of wireless network revenue, up 4points

  14. Q4 2013 wireline financial results Strong revenue growth driven by Data EBITDA excluding restructuring up 3.5% and stable margin of 27% 1.EBITDA as percentage of total revenue.

  15. Wireline data revenue ($M) 851 770 680 Q4-12 Q4-11 Q4-13 Data revenue growth of over 10% driven by TV and Internet Data revenue 62% of external revenue, up 4 points

  16. Q4 2013 consolidated financial results Strong growth in revenue and profitability Continued capex investments to support sustainable growth 1. Adjusted EPS does not have any standardized meaning prescribed by IFRS-IASB. See appendix for definition.

  17. EPS continuity analysis $0.47 ($0.01) $0.02 ($0.01) $0.02 $0.05 $0.40 Q4-12 (as reported) EBITDA (ex. Public Mobile) Depr & Amort Lower O/S shares Financing & Other Q4-13 (as reported) Public Mobile Strong double digit EPS growth

  18. 2014 targets and key assumptions See forward-looking statement in TELUS fourth quarter 2013 and 2014 targets news release

  19. 2014 segmented targets1,2 Segmented targets building on our strong momentum achieved in 2013 1 See forward looking statement caution and assumptions in Section 1.5 of fourth quarter 2013 Management’s review of operations. 2 2014 wireless targets and growth rates exclude Public Mobile.

  20. 2014 consolidated targets1,2 Targets demonstrate benefits of ongoing network and service-related investments, combined with customer-focused operational execution 1 See forward looking statement caution and assumptions in Section 1.5 of fourth quarter 2013 Management’s review of operations. 2 2014 consolidated targets and growth rates exclude Public Mobile.

  21. 2014 key assumptions1 • Pension accounting discount rate of 4.75% • Defined benefit pension expense of approx. $87M (approx. $85M in operating expenses and $2M in financing costs) • Defined benefit pension plan cash funding of approx. $105M • Restructuring and other like costs of approx. $75M • Cash taxes in the range of $540 to $600M • Statutory income tax rate of 26.0 to 26.5% • Integration of Public Mobile is expected to negatively impact consolidated and wireless EBITDA by approx. $40M and EPS by approx. 6 cents Key assumptions and sensitivities listed in section 1.5 in Q4 Management’s review of operations 1 See forward looking statement caution and assumptions in Section 1.5 of fourth quarter 2013 Management’s review of operations 21

  22. Our balance sheet strength • Long-term net debt to EBITDA ratio of 1.8x at year end 2013 • Excellent debt maturity schedule with average maturity at 9.4 years and average cost of debt at approx. 5% • Over $2 billion of available liquidity • Investment grade credit ratings providing ready access to capital market funding Strong balance sheet supporting broadband investments, spectrum purchases and returning capital to shareholders

  23. investor relations 1-800-667-4871 telus.com/investors ir@telus.com

  24. Appendix – Q4 2013 free cash flow comparison

  25. Appendix - Glossary • 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 7.1 in the 2013 fourth quarter Management’s review of operations. • 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) favourableincome tax-related adjustments. For further analysis of the aforementioned items see Section 1.3 in the 2013 fourth quarter Management’s review of operations.

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