Q4 2013 and 2014 targets Darren Entwistle

investor conference call President & Chief Executive Officer

February 13, 2014 Joe Natale
EVP & Chief Commercial Officer
John Gossling
EVP & Chief Financial Officer
 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.

2
Agenda

 CEO Introduction
 Q4 operational highlights
 Q4 financial results
 2014 annual targets and key assumptions
 Questions and Answers

3
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
TELUSdemonstrating
demonstratingstrong
strongresults
results
and
andexecuting
executingon
onshareholder
shareholderfriendly
friendlyinitiatives
initiatives
4
2014 Corporate Priorities

1. 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
2. Elevating our winning culture for a sustained competitive advantage
3. Strengthening our operational reliability, including our speed and
resiliency
4. Increasing our competitive advantage through reliable and client-
centric technology leadership
5. Driving TELUS’ leadership position in its chosen business and public
sector markets
6. Advancing TELUS’ leadership in healthcare information management

5
Healthy postpaid net additions

Postpaid net adds (000s) Wireless

subscribers1
1.06M
123 prepaid
113
14%
7.8M
total

86%
6.75M
Q4-12 Q4-13 postpaid

Healthy
Healthypostpaid
postpaidnet
netadds
addswith
withpostpaid
postpaidbase
baseup
up3%
3%y/y
y/y
1.
Wireless subscribers excludes 222K prepaid subscribers from Public Mobile at December 31, 2013.
6
Industry-leading wireless churn

Blended Postpaid
1.67%
1.51%
1.41%
1.23%
1.12%
0.97%

Q4-11 Q4-12 Q4-13 Q4-11 Q4-12 Q4-13

Industry-leading
Industry-leadinglowlowchurn
churnresults
results
Postpaid
Postpaiddown
down15
15basis
basispoints
pointstotoreach
reachlowest
lowestlevel
levelininseven
sevenyears
years
7
Smartphone & data adoption driving ARPU growth

6.8 $59.08 $60.95 $61.86

6.1 6.5
21.65 25.29 28.17
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
Q4smartphone
smartphonepenetration
penetrationup
up11
11points
pointstoto77%
77%ofofpostpaid
postpaidbase
base
supporting
supportingdata
dataARPU
ARPUgrowth
growthofof11%
11%
8
Industry-leading lifetime revenue per susbcriber1

$4,387
$4,036
$3,538

Q4-11 Q4-12 Q4-13

Customers
CustomersFirstFirstfocus
focusgenerating
generating
industry-leading
industry-leadinglifetime
lifetimerevenue
revenueper
persubscriber
subscriber
1
Lifetime revenue derived by dividing ARPU by blended churn rate 9
Strong Future Friendly Home subscriber growth

TELUS TV
59K
High-speed Internet 50K 53K
Residential NALs
44K
34K 38K
34K
31K

16K 13K 19K 21K

(25)K
(34)K (32)K (33)K

Q1-13 Q2-13 Q3-13 Q4-13

Combined
CombinedTV TVand
andhigh-speed
high-speedInternet
Internetnet
netadditions
additionsexceeded
exceeded
residential
residentialNAL
NALlosses
lossesby
by2.4
2.4times
times––best
bestratio
ratioininover
over22years
years
10
Continued Optik TV innovations

Now
Nowoffering
offeringOptik
Optikon
onthe
thego
gowith
withlive
liveTV
TV

11
Q4 2013 wireless financial results

($M, except margins) Q4 2013 Change

Revenue (external) 1,585 3.4%
Network revenue 1,434 4.1%
EBITDA1 592 4.4%
EBITDA excluding restructuring & other like costs 1 604 6.0%
EBITDA margin2 40.9% 0.1 pts
EBITDA margin excluding restructuring & other like
costs2
41.7% 0.6 pts

Capital expenditures 213 11.5%

TELUS
TELUSdelivers
deliversanother
anothersolid
solidquarter
quarterofofwireless
wirelessresults
results
1
EBITDA does not have any standardized meaning prescribed by IFRS-IASB. See appendix for definition.
2
EBITDA as percentage of total network revenue. 12
Wireless data revenue ($M)

648
570
466

Q4-11 Q4-12 Q4-13

Strong
StrongQ4
Q4data
datarevenue
revenuegrowth
growthofof14%
14%year-over-year
year-over-year
Data
Datanow
now45%
45%ofofwireless
wirelessnetwork
networkrevenue,
revenue,up
up44points
points
13
Q4 2013 wireline financial results

($M, except margins) Q4 2013 Change

Revenue (external) 1,363 3.4%
EBITDA 359 2.1%
EBITDA excluding restructuring & other like costs 380 3.5%
EBITDA margin1 25.6% (0.3) pts
EBITDA margin excluding restructuring & other like
costs 27.0% No change
Capital expenditures 364 10.3%

Strong
Strongrevenue
revenuegrowth
growthdriven
drivenby
byData
Data
EBITDA
EBITDAexcluding
excludingrestructuring
restructuringup
up3.5%
3.5%and
andstable
stablemargin
marginofof27%
27%
1.
EBITDA as percentage of total revenue.
14
Wireline data revenue ($M)

851
770
680

Q4-11 Q4-12 Q4-13

Data
Datarevenue
revenuegrowth
growthofofover
over10%
10%driven
drivenby
byTV
TVand
andInternet
Internet
Data
Datarevenue
revenue62%
62%ofofexternal
externalrevenue,
revenue,up
up44points
points
15
 Q4 2013 consolidated financial results

($M, except EPS) Q4 2013 Change

Revenue 2,948 3.4%
EBITDA 951 3.6%
EBITDA excluding restructuring & other like costs 984 5.0%
EPS (basic) 0.47 17.5%
Adjusted EPS1 0.49 22.5%
Capital expenditures (capex) 577 10.7%
Simple cash flow (EBITDA less capex) 374 (5.8)%

Strong
Stronggrowth
growthininrevenue
revenueand
andprofitability
profitability
Continued
Continuedcapex
capexinvestments
investmentstotosupport
supportsustainable
sustainablegrowth
growth
1.
Adjusted EPS does not have any standardized meaning prescribed by IFRS-IASB. See appendix for definition.
16
EPS continuity analysis

$0.05 $0.02 $0.02 ($0.01) ($0.01) $0.47

$0.40

Q4-12 EBITDA Depr & Lower O/S Financing Public Q4-13

(as reported) (ex. Public Amort shares & Other Mobile (as reported)
Mobile)

Strong
Strongdouble
doubledigit
digitEPS
EPSgrowth
growth

17
 2014 targets
and key assumptions

See forward-looking statement in

TELUS fourth quarter 2013 and
2014 targets news release
2014 segmented targets1,2

Wireless ($B) 2014 targets Targeted change

Network revenue (external) $5.9 to $6.0B 5 to 7%

EBITDA $2.725 to $2.825B 4 to 8%
Wireline ($B)
Revenue (external) $5.45 to $5.55B 3 to 5%
EBITDA $1.425 to $1.525B 1 to 8%

Segmented
Segmentedtargets
targetsbuilding
buildingon
onour
our
strong
strongmomentum
momentumachieved
achievedinin2013
2013
1
See forward looking statement caution and assumptions in Section 1.5 of fourth quarter 2013 Management’s
review of operations. 19
2
2014 wireless targets and growth rates exclude Public Mobile.
2014 consolidated targets1,2

$B, except EPS 2014 targets Targeted change

Revenue $11.9 to $12.1 4 to 6%
EBITDA $4.150 to $4.350 3 to 8%
EPS $2.25 to $2.45 11 to 21%
Capital expenditures Approx. $2.2

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. 20
2
2014 consolidated targets and growth rates exclude Public Mobile.
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
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
22
investor relations
1-800-667-4871
telus.com/investors
ir@telus.com
Appendix – Q4 2013 free cash flow comparison
2012 2013
  Q4 Q4
EBITDA 918 951
Capital expenditures (excluding spectrum licenses) (521) (577)
Net employee defined benefit plans expense 26 27
Employer contributions to employee defined benefit plans (28) (27)
Interest expense paid, net (108) (113)
Income taxes paid, net (13) (120)
Share-based compensation (20) (22)
Restructuring costs net of cash payments 9 17
Free Cash Flow 263 136
Non-voting shares issued 1 -
Dividends (199) (213)
Cash payments for acquisitions and related investments (6) (229)
Real estate joint ventures (5) (8)
Working Capital and other (68) 33
Funds available for debt redemption (13) (281)
Net issuance of debt 76 585
Increase in cash 62 304
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) favourable income tax-related
adjustments. For further analysis of the aforementioned items
see Section 1.3 in the 2013 fourth quarter Management’s review
of operations.

25