Q4 2015 and 2016 Targets investor conference callFebruary 11, 2016

Darren Entwistle, President & CEOJohn 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 2016 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 2016 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 2015 fourth quarter Management’s review of operations accompanying, our February 11, 2016 news release, and in the 2015 annual Management’s discussion and analysis, 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 solid financial and operating results in challenging environment

• Returning significant capital to our shareholders 

• Introducing 2016 targets reflecting diversity and strength of TELUS’ multiple growth assets

• Focusing on efficiency while elevating customer service

• Investing for sustainable long-term future growth

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Driving success by executing on long-term strategy

Returning significant cash to shareholders…

In 2015

• Purchased 15.6 million shares for $635 million

• $1.6 billion returned to shareholders

2016 NCIB

• To purchase and cancel up to 16 million shares or $500 million ($212 million remaining at end of Jan 2016)

Since 2004

• Sixteen dividend increases from 2004 through 2015

• Purchased 183 million shares for $5.1 billion

• Returned $12.7 billion or more than $21 per share

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Share Purchases

Dividends

12.7

7.6

5.1

2004 – 2015 Cumulative

($B)

Consistent track record of growth while returning capital to shareholders

…while investing in networks, spectrum and efficiency

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Capex & spectrum

2016E

~$2.65B

$4.63B

2015

Meaningful, consistent and disciplined commitment tolong-term wireless, wireline and efficiency investments

Efficiency (restructuring & other costs)

($M)

2015

226

75

20142014 2016E

175

$3.53B

Wireless postpaid net additions

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Postpaid net adds

(000s)

Wireless subscribers

8.5M total

1.1Mprepaid

87%

13%

7.4Mpostpaid

Q4-15

62

118

Q4-14

Q4 net adds affected by Alberta weakness and competitionContinued expansion of postpaid base – up 3.4% in 2015

0.94% 1.01%

Q4-15Q4-14

Postpaid churn rate

Investing in retention

7

Retention volume

(000s)

Q4-15

609578

Q4-14

Retention volumes up 5%, while COR up 23% reflecting continued heightened competitive activity and mix of higher-value smartphones

223273

Q4-15Q4-14

Cost of Retention

($M)

Industry-leading ARPU & lifetime revenue per sub

8Lifetime revenue driven by 21st consecutive quarter of y/y blended ARPU

growth due to data, and blended churn rate improvement

Q4-14 Q4-15

$63.74$63.34

Blended

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

Q4-14 Q4-15

1.32%1.43%

Q4-14 Q4-15

$4,829$4,429

ChurnAverage lifetime

revenueARPU

Continued strong wireline subscriber (RGU) growth

9Growing Internet, TV subs offsetting residential NAL losses

TELUS TV

Residential NALs

High-speed InternetNet additions (000s)

Total Internet, TV, Residential NALs

Q1-15

24 19

Q2-15 Q3-15

2530

Q4-14 Q4-15

23

5044 39

4750

-20 -20 -20 -24-25

1010

Financial results

Fourth quarter 2015 wireless financial results

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($ millions, except margin) Q4 2015 y/y change

Revenue (external) 1,772 +1.6%

Network revenue 1,595 +3.0%

EBITDA1 628 (0.2)%

EBITDA (excluding restructuring costs) 653 +2.8%

EBITDA margin2 35.1% (0.7) pts

EBITDA margin (excluding restructuring costs) 36.5% 0.4 pts

Capital expenditures 209 11%

Revenue growth continued while EBITDA growth negativelyimpacted by increased COR from double-cohort, and restructuring

costs

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.

Fourth quarter 2015 wireline financial results

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($ millions, except margin) Q4 2015 y/y change

Revenue (external)1 1,445 +4.4%

EBITDA 350 (5.9)%

EBITDA (excluding restructuring costs) 424 +8.2%

EBITDA margin 23.5% (2.5) pts

EBITDA margin (excluding restructuring costs) 28.5% +1.1 pts

Capital expenditures 446 +17%

Steady trends continue in underlying revenueand EBITDA growth driven by data

1 Revenues arising from contracts with customers was $1,421 million, up $50 million or 3.6% in Q4-15.

Fourth quarter 2015 consolidated financial results

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($ millions, except EPS) Q4 2015 y/y change

Revenue 3,217 +2.8%

EBITDA 978 (2.2)%

EBITDA (excluding restructuring costs) 1,077 +4.9%

EPS (basic) 0.44 (14)%

Adjusted EPS1 0.54 +1.9%

Capital expenditures 655 15%

Free cash flow 197 (42)%

Consolidated growth reflective of solid execution of long-term strategy despite economic challenges in some parts of Canada

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

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2016 outlook

2016 segmented targets1

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1 See forward looking statement caution and assumptions in Section 1.7 of fourth quarter 2015 Management’s review of operations.

Wireless ($B) 2016 targets Targeted change

Network revenue (external) $6.425 to $6.490 2 to 3%

EBITDA (excluding restructuring) $2.975 to $3.060 3 to 6%

Wireline ($B) 2016 targets Targeted change

Revenue (external) $5.680 to $5.735 2 to 3%

EBITDA (excluding restructuring) $1.650 to $1.695 3 to 6%

Targets demonstrate benefits of ongoing network and service-related investments, combined with customer-focused operational execution

2016 consolidated targets1

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1 See forward looking statement caution and assumptions in Section 1.7 of fourth quarter 2015 Management’s review of operations.

2 2016 consolidated EBITDA target excludes $175M of restructuring and other costs 3 2016 Basic EPS target includes an estimated $0.22 of restructuring and other costs per share. Restructuring and

other costs totaled $0.28 per share in 2015.

$B, except EPS 2016 targets Targeted change

Revenue $12.750 to $12.875 2 to 3%

EBITDA (excluding restructuring) $4.625 to $4.755 3 to 6%

Basic EPS 3 $2.40 to $2.56 5 to 12%

Capital expenditures Approx. $2.65 3%

Targets reflect strength of TELUS’ multiple growth assets, continued networkand service-related investments, and execution

Key assumptions for 2016

• Pension accounting discount rate of 4.00% (2015 - 3.90%)

• Defined benefit pension expense of approx. $94M (2015 - $145M)

• Defined benefit pension plan cash funding of approx. $57M (2015 - $94M)

• Restructuring and other costs of approx. $175M (2015 - $226M)

• Cash taxes in range of $570M to $630M (2015 - $256M)

• Statutory income tax rate in range of 26.3 to 26.8% (2015 - 26.5%)

17Key assumptions listed in section 1.7

in Q4 Management’s review of operations

Balance sheet considerations

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• Long-term net debt to EBITDA ratio of 2.66x at year end 2015

• Excellent debt maturity schedule with:

• Average maturity at 11.1 years1 (vs. 5.5 years at YE 2012)

• Average cost of debt at approx. 4.32% (vs. 5.44% at YE 2012)

• In 2016, only $600M Series CI notes maturing

• More than $2 billion of available liquidity

• Investment grade credit ratings provide ready access to capital markets

• TELUS defined benefit pension plans 99% funded on accounting basis

• 100%+ funded on solvency basis at year end 2015

Solid balance sheet underpins capital allocation strategy

1 Average term to maturity excludes commercial paper

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Questions?

Investor relations1-800-667-4871

telus.com/investorsir@telus.com

Appendix – Q4-15 & 2015 EPS analysis

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Fourth quarter Annual

EPS as reported (Q4/14, 2014) $0.51 2.31

Restructuring and other like costs 0.03 0.09Favourable income tax-related adjustments (0.01) (0.01)Long-term debt prepayment premium 0.02

EPS adjusted (Q4/14, 2014) $0.53 2.41Higher EBITDA excluding restructuring and other costs 0.06 0.23Lower shares outstanding from NCIB 0.01 0.05Higher depreciation and other (0.06) (0.11)

EPS adjusted (Q4/15, 2015) $0.54 2.58Restructuring and other costs (0.12) (0.28)Favourable income tax-related adjustments 0.02Black’s asset retirement (0.01)

EPS as reported (Q4/15, 2015) $0.44 2.29

Appendix - free cash flow comparison

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  Q4 - 2014 Q4 - 2015 2014 2015EBITDA 1,001 978 4,216 4,262Capex (excluding spectrum licenses) (570) (655) (2,359) (2,577)Net employee defined benefit plans expense 22 37 87 118Employer contributions to employee defined benefit plans (15) (26) (88) (94)Interest expense paid, net (128) (108) (410) (434)Income taxes paid, net of refunds 1 (7) (464) (256)Share-based compensation 15 (78) 74 (38)Restructuring costs net of disbursements 11 56 1 97

Free Cash Flow 337 197 1,057 1,078

Spectrum (28) (46) (1,171) (2,048)Purchase of Common Shares for cancellation (112) (226) (612) (628)Dividends paid to holders of equity shares (233) (252) (913) (992)Cash payments for acquisitions and related investments (3) - (49) (10)Real estate joint ventures (16) (11) (53) 48

Working Capital and Other (86) 92 (58) (18)

Funds available for debt redemption (141) (246) (1,799) (2,570)

Net issuance of debt (25) 328 1,523 2,733

Increase in cash (166) 82 (276) 163

2016E free cash flow

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Net cash interest payment

EBITDA (net of restructuring)

Capex (excluding spectrum)

Net cash tax payment1

Cash pension contribution

Free Cash Flow (before dividends and spectrum)1 Midpoint used to calculate FCF range2 Other includes share based compensation, restructuring disbursements net of restructuring costs, net employee defined benefit plans expense

~(510)

2016E

$4,450 to 4,580

~(2,650)

(570) to (630)

~(57)

658 to 788

Free Cash Flow (before dividends, spectrum and pension contributions)

715 to 845

Simple Cash flow 1,800 to 1,930

Other2 ~25(434)

2015

$4,262

(2,577)

(256)

1,078

1,172

1,685

177

(94)

($M)

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 4.1 in the 2015 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 costs; 2) income tax-related adjustments; 3) asset retirement costs from the planned closure of Black’s Photography retail stores; 4) Long-term debt prepayment premium. For further analysis of the aforementioned items see Section 1.2 in the 2015 fourth quarter Management’s review of operations.