Q2 2015 investor conference callFriday, August 7, 2015

Darren Entwistle, Executive Chair Joe Natale, President & CEO John Gossling, EVP & CFO

Caution regarding forward looking statements

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 through 2016 and the 2015 annual targets and guidance 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 those expressed in the forward-looking statements. Accordingly, this presentation is subject to the disclaimer and qualified by the assumptions (including assumptions for the 2015 annual targets and guidance, semi-annual dividend increases through 2016 and our ability to sustain and complete our multi-year share purchase program through 2016), qualifications and risk factors referred to in the first and second quarter Management’s discussion and analysis and in the 2014 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.

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• Delivering strong financial and leading operating results

• Focusing on exceptional customer service culture

• Investing for sustainable long-term future growth

• Returning significant capital to our shareholders 

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Driving success by executing on long-term strategy

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Operating results

Strong wireless postpaid net additions

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Postpaid net adds (000s)Wireless

subscribers

8.35M total

1.1Mprepaid

86%

14%

7.2Mpostpaid

Q2-15

7678

Q2-14

Continued expansion of postpaid base47% share of postpaid net additions among national carriers

Industry-leading customer loyalty

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Postpaid churn below 1% for an impressive two full yearsBlended churn down 20 bps to a low 1.17%

1.37%

Q2-14

1.17%

Q2-15

BlendedPostpaid

0.90%

Q2-14

0.86%

Q2-15

Industry-leading wireless ARPU

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19th consecutive quarter of y/y blended ARPU growthas demand for data continues to grow

Q2-14 Q2-15

$63.48$61.69

Industry-leading lifetime revenue per subscriber1

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Customers First culture delivering industry-leadinglifetime revenue per subscriber – up 20% y/y

Q2-14 Q2-15

$5,426

$4,503

1 Lifetime revenue derived by dividing ARPU by blended churn rate.

Growing Internet, TV offsetting residential NAL losses

9Delivering positive subscriber growth

TELUS TV

Residential NALs

High-speed Internet

Net additions (000s)

Total Internet, TV, Residential NALs

Q3-14

21 30

Q4-14 Q1-15

2419

Q2-14

-24 -20 -20-19

5044

3945

38

Q2-15

19

-20

Key second quarter operating highlights

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Strong second quarter performance demonstrates execution of strategy and powerful customers first culture

• Leading postpaid wireless subscriber growth

• Lowest postpaid wireless churn in North America

• Industry-leading and growing ARPU

• Industry-leading and growing lifetime revenue per customer

• Most rapidly growing wireline business in Canada

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Financial results

Second quarter 2015 wireless financial results

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($ millions, except margin) Q2 2015 y/y change

Revenue (external) 1,722 +7.4%

Network revenue 1,568 +6.1%

EBITDA1 719 +1.5%

EBITDA (excluding restructuring) 755 +6.3%

EBITDA margin2 41.4% (2.4) pts

EBITDA margin (excluding restructuring) 43.5% (0.5) pts

Capital expenditures 227 (0.4)%

Momentum continues with strong revenue and underlying EBITDA growth

1 EBITDA does not have any standardized meaning prescribed by IFRS-IASB. Please see the appendix for the definition. 2 EBITDA as a percentage of total revenue.

Second quarter 2015 wireline financial results

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($ millions, except margin) Q2 2015 y/y change

Revenue (external) 1,380 +2.4%

EBITDA 362 (0.9)%

EBITDA (excluding restructuring) 385 +2.9%

EBITDA margin 25.4% (0.8) pts

EBITDA margin (excluding restructuring) 27.0% +0.2 pts

Capital expenditures 437 +7.1%

Steady trends continue with revenue and underlying EBITDA

Second quarter 2015 consolidated financial results

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($ millions, except EPS) Q2 2015 y/y change

Revenue 3,102 +5.1%

EBITDA 1,081 +0.7%

EBITDA (excluding restructuring) 1,140 +5.1%

EPS (basic) 0.56 (9.7)%

Adjusted EPS1 0.66 +4.8%

Capital expenditures 664 +4.4%

Free cash flow 300 +43%

Strength in both wireless and wireline delivering strong consolidated growth in revenue and profitability

1 Adjusted EPS does not have any standardized meaning prescribed by IFRS-IASB. Please see the appendix for the definition.

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Questions?

Investor relations1-800-667-4871

telus.com/investorsir@telus.com

Appendix - free cash flow comparison

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Q2 - 2014 Q2 - 2015 2014 YTD 2015 YTD

EBITDA 1,073 1,081 2,150 2,216

Capex (excluding spectrum licenses) (636) (664) (1,132) (1,299)

Net employee defined benefit plans expense 22 26 44 54

Employer contributions to employee defined benefit plans (22) (21) (51) (48)

Interest expense paid, net (124) (126) (184) (211)

Income taxes paid, net of refunds (122) (63) (346) (178)

Share-based compensation 23 25 39 2

Restructuring (disbursements) net of restructuring costs (4) 42 (19) 35

Free Cash Flow 210 300 501 571

Spectrum (914) (1,688) (1,143) (1,990)

Common Shares and Non-Voting Shares issued - - - -

Purchase of Common Shares for cancellation (177) (106) (336) (262)

Dividends paid to holders of equity shares (224) (243) (446) (487)

Cash payments for acquisitions and related investments (3) (1) (40) (5)

Real estate joint ventures (10) (15) (24) (22)

Working Capital and Other 49 (30) (191) (205)

Funds available for debt redemption (1,069) (1,783) (1,679) (2,400)

Net issuance of debt 1,074 281 1,400 2,417

Increase (decrease) in cash 5 (1,502) (279) 17

Appendix - EPS analysis

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EPS Q2-2014 as reported $0.62

Restructuring and other like costs 0.01

EPS Q2-2014 adjusted $0.63

Higher EBITDA excluding restructuring and other like costs 0.07

Lower shares outstanding from NCIB 0.01

Higher financing and other1 (0.03)

Higher depreciation and amortization (0.02)

EPS Q2-2015 adjusted $0.66

Restructuring and other like costs (0.07)

Income tax-related adjustments (0.02)

Asset retirement from Black’s Photography (0.01)

EPS Q2-2015 as reported $0.56

1 Excludes interest income from the settlement of prior years’ income tax-related matters, as it is reflected in the ‘Income tax-related adjustments’ line.

Appendix - definitions

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• 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 11.1 in the 2015 second

quarter Management’s discussion and analysis.

• 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) income

tax-related adjustments; and 3) asset impairment from the planned

closure of all Black’s Photography retail stores. For further analysis

of the aforementioned items see Section 1.3 in the 2015 second

quarter Management’s discussion and analysis.