2017 TELUS AGM Presentation.Pdf

Dick Auchinleck Chair of the Board Welcome to the 2017 annual general meeting Live webcast telus.com Monique Mercier Executive Vice-President, Corporate Affairs, and Chief Legal and Governance Officer Christopher Main Associate General Counsel Today’s agenda

Business items Report from President and CEO Voting results Question and answer session Conclusion Your feedback matters to us Meeting procedures

Quorum Declaration of mailing Appointment of scrutineers Thank you! Micheline Bouchard Our Board of Directors The Honourable Stockwell Day Strategic Advisor and former Federal Cabinet Minister Lisa de Wilde Chief Executive Officer, TVO Darren Entwistle President and CEO, TELUS Mary Jo Haddad Former CEO, The Hospital for Sick Children (SickKids ) Kathy Kinloch President, British Columbia Institute of Technology John Lacey Lead Independent Director, Brookfield Business Partners Bill MacKinnon Former CEO, KPMG Canada The Honourable John Manley President and CEO, Business Council of Canada, Chair of CIBC and former Deputy Prime Minister of Canada The Honourable Sabi Marwah Senator and former Vice Chairman and Chief Operating Officer, Bank of Nova Scotia Claude Mongeau Former President and CEO, Canadian National Railway Company David Mowat President and CEO, ATB Financial Ray Chan Chair, Baytex Energy Corp. Dick Auchinleck Chair, TELUS Our Executive Leadership Team Josh Blair Chief Corporate Officer, EVP, TELUS Health, President, Business Solutions West, and Chair, TELUS International Doug French EVP and Chief Financial Officer David Fuller EVP and President, TELUS Consumer and Small Business Solutions Tony Geheran EVP and President, Broadband Networks François Gratton EVP, Partner Solutions, and President, Business Solutions East and TELUS Québec Sandy McIntosh EVP, People & Culture and Chief Human Resources Officer Eros Spadotto EVP, Technology Strategy Phil Bates EVP, Business Transformation and Operations

consolidated 2016 financial statements Voting procedures Voting procedures Voting procedures Insert smartcard to align with bar code facing you Welcome message appears when card is inserted correctly Voting procedures To vote on motions today:

• Press 1 to vote FOR • Press 2 to vote AGAINST • Press 3 to WITHHOLD vote Motion to nominate and elect directors “I nominate the 13 individuals named in the information circular for election as directors of the Company, to hold office for the ensuing year.” Election of directors Election of directors

• Ray Chan • Bill MacKinnon • Stockwell Day • John Manley • Lisa de Wilde • Sabi Marwah • Darren Entwistle • Claude Mongeau • Mary Jo Haddad • David Mowat • Kathy Kinloch • Dick Auchinleck • John Lacey

Press 1 to vote FOR Press 3 to WITHHOLD vote Election of directors

Press 1 to vote FOR Press 3 to WITHHOLD vote Motion to appoint auditors “I move that Deloitte LLP, Chartered Professional Accountants, be appointed as the auditors of the Company for the ensuing year at a remuneration to be fixed by the directors.” To vote on this motion

• Press 1 to vote FOR • Press 3 to WITHHOLD vote Motion regarding say on pay “I move, on an advisory basis only and not to diminish the role and responsibilities of the Board of Directors, that the shareholders accept the approach to executive compensation disclosed in the Company’s information circular delivered in advance of the 2017 annual general meeting of shareholders.”

To vote on this motion

• Press 1 to vote FOR • Press 2 to vote AGAINST

Caution regarding forward-looking statements TELUS forward-looking statements

This presentation and answers to questions contain forward-looking statements about expected events, including relating to our 2017 targets, multi-year dividend growth and share purchase programs, fibre network and other capital investments, and the performance of TELUS. By their nature, forward-looking statements do not refer to historical facts and require the Company to make assumptions and predictions, and are subject to inherent risks. There is significant risk that the forward- looking statements will not prove to be accurate. There can be no assurances that TELUS will complete all purchases under the 2017 normal course issuer bid and maintain its multi-year dividend growth and share purchase programs. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors (such as competition, technological substitution, regulatory developments, government decisions, economic performance in Canada, our cost reduction initiatives, our earnings and free cash flow, our capital expenditures and a change in our intent to purchase shares) could cause actual future performance and events to differ materially from those expressed in the forward-looking statements. Accordingly, all forward-looking statements made today are subject to the disclaimer and qualified by the assumptions (including assumptions for the 2017 annual targets and guidance, semi-annual dividend increases through 2019 and our ability to sustain and complete our multi-year share purchase program through 2019), qualifications and risk factors as set out in the first quarter Management’s discussion and analysis (MD&A) and in the 2016 annual report’s MD&A, especially Sections 9 and 10, 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. Darren Entwistle Member of the TELUS team

Relentlessly focusing on what matters Putting customers first Returning significant capital Investing in our growth Our winning strategy To unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move. World-leading shareholder return 400% since 20001 +400%

TSX +183% Telecom Index -4% Consistently averaging outpacing our global peers in total +39 shareholder return2 points better Progressing our winning strategy

+2.4% +4.9% +6.6% revenue EBITDA3 EPS3 $12.8 billion $4.7 billion at $2.44

Uniquely fuelled by both wireless and wireline Delivering sustained, $1.1 superior investment billion returns dividends paid in 2016 Continuing our leading dividend growth

+7.1% $1.97 dividend annualized growth dividend Consistent track record of rewarding dividend shareholders +88% 2x the growth rate of in 6 years our peers Delivering on our multi-year program

$9 $28 average billion purchase in dividends price

Returning significant capital Industry-leading investment returns

$14 $24 billion per share since 2004 Renewing our dividend growth commitment 7to 1 0% annually to Unparalleled among 20194 our peers Our single greatest competitive advantage Our globally recognized, award-winning team We are deeply committed to putting our customers first 7% Fewest complaints among national total peers over the complaints last 5 years5 53% national peers World-leading customer satisfaction6 #1 carrier for iPhone #1 customer service by JD Power #1 network quality by JD Power A globally admired brand Supporting Canadians’ increasing data demands7 Fastest wireless network #1 in network responsiveness Our culture drives our success Best loyalty and lifetime revenue

$65.10 0.95% $5,400 blended wireless lifetime ARPU churn revenue

Reflecting excellence in customer service Welcoming our Manitoba customers Industry-best wireline performance

+2.1% +5% revenue EBITDA8 growth growth Leading wireline customer growth

68,000 54,000 Internet clients TV customers

Optik: it’s TV worth talking about

2x #1in 4x HD multicultural PVR channels content storage

Compared to our Western peers Optik: it’s TV worth talking about

Wireless Record Restart set top remotely feature box

Compared to our Western peers Consistently robust wireline results

Growth in Growth in revenue for EBITDA8 for th year in th year in 6 a row 4 a row

Only telco globally to do so Targeting industry-leading performance4

up up up to 4% to 7% to 9% revenue EBITDA8 earnings growth growth per share

Uniquely driven by both wireless and wireline Our future friendly story Making the future friendlier for Canadians Bridging the digital divide Enabling improved health outcomes… …through better health information Supporting Canada’s e-prescribing service Caring for our planet Globally recognized sustainability practices Advancing educational opportunities Inspiring positive social change 2 million Canadians kept safe online Helping those who need our support the most Investing for today… $150 Happy 150th birthday, billion nationally9 Canada! …and tomorrow4,9

$45 $11 billion billion over the next in Ontario 4 years

Looking ahead to the #next150 Future-proofing our nation’s infrastructure PureFibre: a world of exciting possibilities Delivering differentiated client experiences Enabling the technology of the future Supporting our digital economy Our courage to innovate is unwavering

Voting results

Election of directors Appointment of auditors Advisory vote on say on pay Voting results • sedar.com • telus.com

Questions?

Positively impacting the lives of Canadians

Community Public Arts Parks and Health services schools programming green spaces services

$26 billion in taxes and spectrum fees10 Serving our $482 million community with 7.7 million compassion volunteer hours Making a difference in Ontario Creating a friendlier future for Canada TELUS Days of Giving 130,000 volunteers since 2005 Supporting our communities worldwide Making a difference on a global scale

$61 5,600 million projects

Supporting 2 million young people in need Giving back... 365 days a year Thank you

Thank you

Footnotes

1. Dec 31, 1999 to May 8, 2017 showing total shareholder return (including reinvested dividends) for $100 invested in TELUS, the S&P/ TSX composite index and the MSCI World Telecom Index. 2. TELUS total shareholder return Dec 31, 1999 to: Dec 31, 2004; Dec 31, 2005; Dec 31, 2006; Dec 31, 2007; Dec 31, 2008; Dec 31, 2009; Dec 31, 2010; Dec 31, 2011; Dec 31, 2012; Dec 31, 2013; Dec 31, 2014; Dec 31, 2015, Dec 31, 2016 and May 8, 2017, vs global incumbent peers in MSCI World Telecom index 3. Refers to adjusted EBITDA and Basic EPS, excluding the transformative compensation expense. These are non- GAAP measures and do not have standardized meanings under IFRS-IASB. Therefore, they are unlikely to be comparable to similar measures presented by other companies. For definitions, see Section 11 of Management’s discussion and analysis (MD&A) in the TELUS 2016 Annual report. 4. See forward looking statement caution 5. Source: Commissioner for Complaints for Telecommunications Services annual reports 6. Koodo was ranked “Highest in Customer Service among Wireless Providers” in the 2016 Canadian Wireless Customer Care Study by J.D. Power and TELUS received “Highest Wireless Network Quality Performance” in Ontario in 2016 J.D. Power study, for the second year in a row. 7. Source: 2016 OpenSignal Canadian wireless network report 8. Refers to adjusted EBITDA. This is a non-GAAP measure and does not have a standardized meaning under IFRS- IASB. Therefore, it is unlikely to be comparable to similar measures presented by other companies. For definition, see Section 11 of Management’s discussion and analysis (MD&A) in the TELUS 2016 Annual report. 9. Investments include capital expenditures and operating expenses. 10. Refers to $26 billion in income, payroll, property, and other taxes, as well as spectrum remittances, to our federal, provincial, and municipal governments since 2000.