Q3 2010 TELUS investor conference call

1. Q3 2010 TELUS investor conference call Robert McFarlane EVP & Chief Financial Officer Darren Entwistle President & Chief Executive Officer Joe Natale EVP & Chief Commercial Officer November 5, 2010

2. TELUS forward looking statements 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 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, second and third 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. agenda 3 • Wireless and wireline segment reviews • Consolidated financial review • Updates • Regulatory • IFRS • Financing • Dividend • 2010 guidance • Question and answers

4. Q3 2010 wireless financial results      * Margins on network revenue in Q3/10 and Q3/09 are 45.1% and 45.9%, respectively. Wireless cash flow up significantly due to lower capex and EBITDA increase despite record subscriber loads

5. subscriber results Total net adds Postpaid net adds Wireless subscribers 1.3M 153K 132K 131K 125K prepaid 18% postpaid 82% 5.6M Q3-10 Q3-09 Q3-10 Q3-09 6.9M total Strong total net adds growth of 22% y/y with higher value postpaid representing 86% of net adds

6. smartphone subscriber mix • Smartphone subs represent 28% of postpaid base compared to 18% a year ago • In Q3, 38% of all postpaid gross additions were on smartphones compared to 22% a year ago • BlackBerries and iPhones continue to dominate retention loading Samsung Galaxy Fascinate LG Optimus 7 HTC 7 Surround Smartphone base increased 67% y/y to 1.6M and to be enhanced with suite of new exciting HSPA devices

7. data revenue $291M $226M $178M Q3-09 Q3-08 Q3-10 BlackBerry Torch Strong data growth of 29% driven by continued smartphone adoption

8. marketing and retention      Record gross additions and stable churn reflect availability of new HSPA handsets and continued marketing success

9. blended ARPU analysis Data Voice % of ARPU $59.45 $58.75 25% 14.53 20% 12.05 47.40 80% 44.22 75% Q3-09 Q3-10 Q3-09 Q3-10 Strong data growth continuing to help improve trend in overall ARPU down 1.2% y/y vs. 1.9% in Q2

10. Q3 2010 wireline financial results        Revenue decline slows and is offset by expense control and lower restructuring costs

11. wireline data strategy reinforced $1,109M $1,165M 51% Data 78% Local & LD 22% Data 49% Local & LD Q3-2000 Q3-2010 Wireline data revenue exceeds local & LD revenue for first time ever

12. TELUS TV subscribers TELUS TV net additions* TELUS TV subscribers* 266K 38K 137K 22K Q3-09 Q3-10 Q3-09 Q3-10 * Includes both TELUS IP TV and TELUS Satellite TV subscribers Strong TV loading reflects June launch of Optik TV brand Net adds up 73% y/y and total TV subscribers up 94%

13. improved wireline operating stats TELUS TV loading and HSIA 53K Total NAL losses* 31K Q3-10 Q3-09 -51K -56K * Historic NALs restated for prior periods starting in 2007 as a result of a periodic subscriber measurement review and correction. Growth in TV & increased HSIA this quarter greater than NAL declines

14. Q3 2010 consolidated financial results        Strong cash flow expansion driven by improved profitability and capex decline

15. EPS continuity ($) Tax adjustment 0.88 0.77 + 0.01 + 0.01 + 0.02 + 0.03 0.84 Excl. Tax Adj. - 0.12 0.74 Excl. Tax Adj. - 0.03 - 0.02 Normalized Financing costs2 Q3-09 reported 2010 debt redemption Pension, Dep & Amort Restr. costs Lower tax rates & other Normalized EBITDA1 Q3-10 reported CRTC Deferral Acc’t charge 1 Normalized EBITDA excludes restructuring and pension costs. 2 Q3 Normalized Financing excludes early debt redemption penalty, CRTC deferral account Interest, and excludes interest income for Q3/09 identified in Q3/09 tax adjustment Reported EPS negatively impacted by debt redemption costs related to successful debt issue

16. EPS normalization   Normalized EPS up 6% to $0.89 per share

17. TELUS’ vertical integration strategy • TELUS’ strategy is to aggregate, integrate and make accessible content and applications for customers’ enjoyment • Not necessary to own content to make it accessible to customers on economically attractive basis • Not clear to TELUS that synergies of ownership for carriers outweigh negative synergies of limiting audience through exclusives and impact on other supplier relationship • Caution warranted based on past transactions, execution risk related to different expertise requirement, and legacy nature of content assets in play • Consistent with our strategy to “unleash the power of the Internet to Canadians at home, in workplace and on the move”

18. Industry vertical integration update • TELUS pleased with CRTC’s Shaw / Canwest decision to support the pre-existing principle of programming content non- exclusivity on reasonable commercial terms • Public policy hearing called for May 2011 on effects of consolidation and vertical integration in Canadian broadcasting industry • TELUS believes CRTC needs regulatory tools and measures to effectively address and deter any anti-competitive behaviour • CRTC’s Shaw / Canwest decision reinforces pre-exisitng principle that consumers need protection from undue preference by carriers who own content

19. TELUS update on Cdn GAAP to IFRS transition • Comprehensive IFRS disclosure in section 8.2 of Q3-10 MD&A • Quantified impacts on key financial statement line items and other measures in Q3-10 MD&A including • Pro forma Q3-10 YTD net income and EPS per IFRS higher by $15M or $0.05 • Statement of Financial Position (i.e. Balance Sheet) impacts including recognition of cumulative unamortized gains and losses for employee defined benefit plans and asset impairment reversal are set out • Net impact of $220M or 3% reduction in Owners’ Equity • 2011 guidance in mid-December to be provided according to IFRS TELUS well prepared for IFRS conversion as outlined in comprehensive disclosure in section 8.2 of MD&A

20. TELUS financing update • In August, TELUS cancelled its unused $300M, 364-day revolving credit facility set to expire December 31, 2010 • Available liquidity of $1.7B exceeds $1B objective • In September, TELUS successfully completed its early partial redemption of notes due in June 2011 following successful $1B 5.05%10-year debt issue in July • Redeemed US$607M of 8% US$1.3615B notes due June 2011 • As expected, recorded pre-tax charge of $52M or after-tax impact of $37M or 12 cents per share • Average maturity of long-term debt 5.9 years at end of Q3-10, up from 4.0 years a year ago Another very successful debt refinancing, lowering future interest rate expense by circa 350 bps

21. TELUS raises dividend • Based on management confidence in mid-term outlook • Quarterly dividend increased 5% to $0.525 per share for January 4, 2011 (from $0.50 cents) • Second dividend increase in 2010 and reflects 11% increase over January 2010 dividend payment • TELUS to change dividend reinvestment program to open market purchases at full price • Dividend reinvestment program (DRIP) to purchase shares on open market rather than issue from treasury • Will no longer offer 3% discount from avg. market price • Changes come into effect March 1, 2011 after dividend payment on January 4, 2011 Dividend increase of 5% reflects our confidence in prospect for continued future earnings and free cash flow growth

22. 2010 annual guidance* update 1 Normalized EPS y/y growth of 9 to 16%. See appendix. * See forward looking statement caution 2010 earnings guidance increased on raised wireless EBITDA

23. Q3 2010 summary • Wireless • Strong wireless subscriber growth and stable churn • ARPU trend continuing to improve • Continued revenue and EBITDA growth despite record loading activity • Wireline • RecordTELUS TV subscriber growth • Improved residential and business NAL losses and HSIA loading • Cost control offsetting continued legacy declines • Dividend increased by 5% • Positive changes to 2010 earnings guidance Good Q3 results build on positive momentum

25. appendix – free cash flow 2009 Q3 2010 Q3 C$ millions EBITDA 923 937 Capex (558) (449) Net Employee Defined Benefit Plans Expense (Recovery) 3 7 Employer Contributions to Employee Defined Benefit Plans (31) (21) (106) Interest expense paid (includes income tax interest income) (19) Cash Income Taxes and Other (48) (30) Non-cash portion of share-based compensation 5 10 Restructuring payments (net of expense) 3 5 (7) Donations and securitization fees included in other expense (4) Free Cash Flow (before share-based compensation payment) 274 346 Share Based Compensation Paid (7) (8) Free Cash Flow (per current public guidance methodology) 339 266 Issuance of non-voting shares* 46 - - Issuance of common shares 5 Dividends (162) (149) Proceeds from sale of property and other assets (acquisitions) (26) - Working Capital and Other 120 (13) Funds Available for debt redemption 78 348 - A/R Securitization - Net Issuance (Repayment) of debt (70) (339) Increase (Decrease) in cash 8 9 * Non-voting share issuance from treasury for shareholders in the DRIP

26. 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 • EPS normalized: growth rates are based on 2010 expected EPS ($3.10 to $3.30) compared with 2009 actual results when excluding 52 cents of positive income tax-related adjustments and a 22 cent loss on early partial redemption of long-term debt TELUS definitions for non-GAAP measures