Robert McFarlaneEVP & Chief Financial Officer

May 18, 2011

2011 RBC Fixed Incomeconference

2

TELUS Forward Looking Statement

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 2011 annual guidance), qualifications and risk factors (including those for semi-annual dividend increases to 2013) referred to in the Management’s discussion and analysis in the 2010 annual report and in the 2011 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

About TELUS

TELUS is a leading Canadian national telecommunications company providing services including data, Internet protocol (IP), voice, entertainment and video

$9.9 billion of annual revenue 12.3 million customer connections including:

7 million wireless subscribers 3.7 million wireline network access lines 1.2 million Internet subscribers 358,000 TELUS TV customers

Enterprise value: $23 billion ($7.0 billion net debt) Shares -TSX: T, T.A; NYSE: TU

TELUS’ revenue and EBITDA profile

4

National growth strategy drives strong wireless asset mix

EBITDA LTM1

$3.7 billion

Wireless56%

Wireline44%

1 12 months ending March 31, 2011

Revenue LTM1

$9.9 billion

Wireless52%

Wireline48%

Wireless56%

Wireline44%

Wireless56%

Wireline44%

Wireless subscriber growth

5

Continued market opportunity with focus on postpaid growth

prepaid18%

Wireless customer mix

postpaid82%

5.8M

1.2M

Total wireless subscribers

Q1-10

6.6M

Q1-11

7.0M

6.2M

Q1-09

Strong smartphone adoption driving data growth

6

Smartphone base up 76% y/y to 2.2M

Smartphone penetration(% of postpaid base)

Smartphone adoption continues to accelerate 54% of Q1-11 postpaid gross loads Over 70% of Q1-11 postpaid retention units

22%

33%38%

1Q10 4Q10 1Q11

Wireless data revenue

7

In Q1-11, data revenue growth accelerated to 44% leading to 11% total wireless revenue & EBITDA growth

Q1-10

$254M

Q1-11

$366M

$204M

Q1-09

Blended ARPU analysis

8

ARPU up 3.7% y/y as data growth exceeds voice erosion.Q1-11 was 2nd quarter of Y/Y ARPU growth after 3.5 yr decline

Data

Q1-11

$57.89 Voice$55.80

Q1-10Q1-09

$58.39

13.14

42.66 40.18

17.7111.26

47.13

TELUS TV subscribers

9

Strong momentum with 44K TV net adds up 52% y/yand total subscribers up 80%

Total TV subscribers*

* Includes both IP TV and TELUS Satellite TV subscribers

358K

Q1-10

199K

Q1-11

98K

Q1-09

2.1 million IP-TV homes passed (87% of top 48 markets)

90%+ AB/BC coverage with TELUS Satellite TV

14% market share

10

16K

29K

15K

Optik creating Future Friendly Home momentum

Q4-10Q3-10

66K

53K 18K

38K

48K

Q1-11

44K

Q2-10

32K

Q1-10

32K

29K

60K

3K

TELUS TVResidential NALs

High-speed Internet

TV and Internet loading more than offsettingresidential NAL losses for 3rd consecutive quarter

-50K -51K -39K -37K -33K

Q1 2011 consolidated financial results

11

Strong revenue and earnings growth driven by wireless

($M) Q1-10 Q1-11 change

Revenue (external) 2,377 2,531 6.5%

EBITDA1 943 986 4.6%

EPS (basic) 2 0.85 1.01 19%

Capex 311 409 32%

2 Q1-11 Adjusted EPS of $0.97 for Q1-11 excludes after-tax Transactel gain of $0.04 per share

1 Q1-11 Adjusted EBITDA of $970M, up 2.9% excl. $16M non-cash gain from acquisition of Transactel

Simple cash flow by segment

12

TELUS generating strong cash flows from operations

2001

2002 2003 2004 2005 2006 2007 20081

0.1

Wireless

0.3

1.61.8

2.0 2.0 2.0 1.9

EBITDA less capex ($billions)

1.4

2009

1.9

2010 2011E*

2.075

Wireline

* Using mid-points of 2011 targets. See forward looking disclaimer caution

1.0

1 2008 cash flow incl. $882M for wireless spectrum. Excl. spectrum cost, 2008 cash flow was $1.9B

2011 annual targets*

13

Expecting revenue and earnings growth driven by wireless and data

2011targets y/y change

Revenue (external) $9.925 to 10.225B 1 to 4%

EBITDA $3.675 to 3.875B 1 to 6%

EPS (basic) $3.50 to 3.90 7 to 19%

Capex Approx. $1.7B flat

* See forward looking disclaimer caution

TELUS’ strong balance sheet & credit policies

14

Decade long track record of meeting prudent financial policies

Long term policies & guidelines

Q1-11 Met

Net debt to EBITDA(excluding restructuring)

1.5 to 2.0X 1.9X √Available liquidity minimum $1 billion $1.77 billion √Credit Rating BBB+ to A-

BBB+/A–, stable trend √

Dividend payout ratio guideline of 55 to 65% of sustainable net earnings on a prospective basis

16

Appendix – long term debt maturities

2011 2012 2013 2014 2015 2016 2017 2018 2019 2021

C$ billions

1.1 1.1

0.3

0.7 0.6 0.7

1.0

0.2

2020

Deferred FX hedge liability

Average term to maturity of debt is 5.4 years with staggered maturity profile

0.4

2022+

1.0

Accounts receivable securitization

Commercial paper and bank drawdowns

Notes and debentures

As at March 31, 2011

Appendix – TELUS free cash flow1 history

17

2009 - impacted by increased capex, pension and restructuring costs, and cash taxes

2010 - reflected reduced capex and restructuring costs, partially offset by higher cash taxes

2011 - after $200M voluntary pension contribution

FCF after spectrum purchases and before dividends

Wireless spectrum purchased 1,443

2003

776

2004

1,167

2006 2007

1,388

2002

2009

485

2008

361

1,243

(910)

2001

(1,266)

2005

1,345

1,336

(249)

2000

144

2010

947

2011E FCF before dividends1,045 to

1,245

2011E*

($ Millions)

1 see “Appendix – definitions” for Free cash flow definition

Appendix – 2011E free cash flow*

18

Net cash interest

EBITDA

($M)

Other2

Free Cash Flow

Capex

Net cash tax payment1

Cash pension contribution (incl. voluntary $200M contr. & DB recovery)

Free Cash Flow3

(incl. cash pension contribution)1 Midpoint used to calculate free cash flow range. Updated expectation to top half of range in Q1-11.2 Includes restructuring payments (net of expense), and share based compensation (net of expense)3 Represents FCF before dividends paid in 2011, deferral account drawdowns, other changes in working capital, acquisitions, etc.

~(375)

$3,675 to 3,875

~(60)

~(1,700)

1,385 to 1,585

(130) to (180)

~(340)

1,045 to 1,245

* As provided December 2010. See forward looking disclaimer caution

Appendix – definitions

EBITDA: Earnings 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 costs, net employee defined benefit plans expense, cash interest received and excess of share-based compensation expense over share-based compensation payments, subtracting the non-cash gain on Transactel (for 2011), cash interest paid, cash taxes, capital expenditures, restructuring payments and employer contributions to employee defined benefit plans.

Cost of retention (COR): total costs to retain existing subscribers, often presented as a percentage of network revenue

Financial information for 2011 presented according to IFRS as issued by IASB

Certain comparative information for 2010 and prior periods is presented as originally reported under Canadian GAAP