T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q1 2021 Earnings Presentation
34 slides from T-mobile Us's earnings presentation, May 4, 2021
Slide 1: Investor Factbook Q1 2021
EXHIBIT 99.2 TOGETHER WE ARE UNSTOPPABLE _INVESTOR eg @ ew FACTBOOK Q12021
Slide 2: Table of contents
2 3 Highlights 4 Customer Metrics 7 Financial Metrics 13 Capital Structure 14 5G Network Leadership 16 Merger & Integration 17 Guidance 18 Contacts 19 Financial and Operational Tables Unless otherwise noted, historical results for T-Mobile from the close of the merger (“Merger”) with Sprint Corporat
Slide 3: Raises 2021 Guidance with Strong First Quarter 2021 Results
3 T-Mobile Raises 2021 Guidance as Network Leadership Fuels Industry-Leading Growth with Strong First Quarter 2021 Results Industry-Leading Customer Growth • Total net additions of 1.4 million, best in industry • Postpaid net additions of 1.2 million, best in industry and raising 2021 guidance • Pos
Slide 4: Total Postpaid Net Additions and Postpaid Phone Churn
4 Total Postpaid Net Additions Postpaid phone net customer additions were 773 (in thousands) thousand in Q1 2021, compared to 824 thousand in Q4 2020 and 452 thousand in Q1 2020. ▪ Sequentially, the decrease was primarily due to lower 1,979 gross customer additions driven by seasonality, partially 1
Slide 5: Postpaid Phone ARPU and Postpaid Accounts & ARPA
5 Postpaid Phone ARPU Postpaid phone ARPU was $47.30 in Q1 2021, down 1.2% from $47.86 in Q4 2020 and up 3.3% from $45.80 in Q1 2020. ▪ Sequentially, the decrease was primarily due to lower recurring charges from customers acquired in the $48.55 Merger including from the impact of rate plan migratio
Slide 6: Total Prepaid Net Additions and Total Customers
6 Total Prepaid Net (Losses) Additions Prepaid net customer additions were 151 thousand in Q1 2021, compared to net additions of 84 thousand in Q4 2020 (in thousands) and net losses of 128 thousand in Q1 2020. ▪ Sequentially and year-over-year, the increase was 151 primarily due to lower churn. 133
Slide 7: Service Revenues and Equipment Revenues
7 Service Revenues Service revenues were $14.2 billion in Q1 2021, essentially flat compared to $14.2 billion in Q4 2020 and up ($ in millions) 60% from $8.8 billion in Q1 2020. $14,139 $14,180 $14,192 $13,230 ▪ Sequentially, an increase in Postpaid service revenues was partially offset by seasonall
Slide 8: Cost of Services, exclusive of D&A
8 Cost of Services, exclusive of D&A Cost of services, exclusive of depreciation and ($ in millions, % of Service revs excl. Merger-related amortization (D&A), was $3.4 billion in Q1 2021, down costs) 12% from $3.8 billion in Q4 2020 and up 106% from $1.6 $3,827 billion in Q1 2020. $3,314 $3,384 ▪ S
Slide 9: SG&A Expense and Depreciation & Amortization
9 Selling, General and Administrative Selling, general and administrative (SG&A) expense was $4.8 billion in Q1 2021, essentially flat compared to (SG&A) Expense $4.8 billion in Q4 2020 and up 30% from $3.7 billion in Q1 ($ in millions, % of Service revs excl. Merger- 2020. related and COVID-19-rela
Slide 10: Net Income and Diluted Earnings Per Share
10 Net Income Net income was $933 million in Q1 2021, up 24% from ($ in millions) $750 million in Q4 2020 and down 2% from $951 million in Q1 2020. Diluted EPS was $0.74 in Q1 2021, up from $0.60 in Q4 2020 and down from $1.10 in Q1 2020. ▪ Sequentially, the increase in Net income and diluted EPS $1
Slide 11: Core Adjusted EBITDA and Net Cash from Operating Activities
11 Core Adjusted EBITDA Core Adjusted EBITDA was $5.9 billion in Q1 2021, up 7% ($ in millions, % of Service Revs) from $5.5 billion in Q4 2020 and up 68% from $3.5 billion in Q1 2020. ▪ Sequentially, the increase was primarily due to lower $5,779 $5,864 Cost of equipment sales and lower Cost of ser
Slide 12: Cash Purchases of Property and Equipment, Free Cash Flow
12 Cash Purchases of Property and Cash purchases of property and equipment were $3.2 billion in Q1 2021, compared to $3.8 billion in Q4 2020 and Equipment $1.8 billion in Q1 2020. Capitalized interest included in cash ($ in millions, % of Service Revenues) purchases of property and equipment was $84
Slide 13: Net Debt and Net Debt to LTM Pro Forma Core Adj. EBITDA
13 Net Debt (Excluding Tower Total debt, excluding tower obligations, at the end of Q1 2021 was $77.9 billion. Obligations) & Net Debt to LTM Pro Forma Core Adj. EBITDA Ratio Net debt, excluding tower obligations, at the end of Q1 ($ in billions) 2021 was $71.2 billion. ▪ The ratio of net debt, excl
Slide 14: 5G Network Leadership
5G Network Leadership EXTENDED 5 G RANGE 1.6M jroslee mies) mteed Mid-band and Millimeter Wave 4x MORE than Verizon and : 2x MORE than AT&T 325 Mbps 3:2"° T-Mobile customers get the ‘ | ds, anda than anyone else. And T- Mobile 5G download speeds since the beginning of the year while others stayed vi
Slide 15: 5G Network Leadership
5G Network Leadership Current Mid-Band Holdings after Clearance, 2024+ jational Averages =] o= National A\ : a ~ [ C-Band/CBRS S i tes 2.5 GHz and below Combined LTE + 5G a ~ 108K Macro Cell Sites ~70K 70 Small cell/distributed antenna systems sites verizon First to Launch 5G Carrier Aggregation Del
Slide 16: Merger synergies net present value expectations
16 T-Mobile expects the total net present value of Merger synergies to be more than $70 billion – up more than 60 percent from the original Merger guidance of $43 billion. The company expects Merger synergies to be $2.8 billion to $3.1 Improvements for billion in 2021, more than doubling the $1.3 bi
Slide 17: 2021 Outlook
17 2021 Outlook Metric Previous Revised Change at Midpoint Postpaid net customer additions 4.0 to 4.7 million 4.4 to 4.9 million 300 thousand Net income (1) N/A N/A N/A Core Adjusted EBITDA (2) $22.6 to $23.1 billion $22.8 to $23.2 billion $150 million Capital expenditures (3) $11.7 to $12.0 billion
Slide 18: Investor Relations
18 Investor Relations Jud Henry Justin Taiber Trina Schurman Senior Vice President Senior Director Senior Director Investor Relations Investor Relations Investor Relations Samia Bhatti Zach Witterstaetter Rose Kopecky Jacob Marks Investor Relations Investor Relations Investor Relations Investor Rela
Slide 19: Condensed Consolidated Balance Sheets
19 T-Mobile US, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in millions, except share and per share amounts) March 31, 2021 December 31, 2020 Assets Current assets Cash and cash equivalents $ 6,677 $ 10,385 Accounts receivable, net of allowance for credit losses of $143 and $194 3,592 4,
Slide 20: Condensed Consolidated Statements of Comprehensive Income
20 T-Mobile US, Inc. Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31, December 31, March 31, (in millions, except share and per share amounts) 2021 2020 2020 Revenues Postpaid revenues $ 10,303 $ 10,251 $ 5,887 Prepaid revenues 2,351 2,354 2,373 Whol
Slide 21: Condensed Consolidated Statements of Cash Flows
21 T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, December 31, March 31, (in millions) 2021 2020 2020 Operating activities Net income $ 933 $ 750 $ 951 Adjustments to reconcile net income to net cash provided by operating activities Depreci
Slide 22: Condensed Consolidated Statements of Cash Flows (Continued)
22 T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Continued) (Unaudited) Three Months Ended March 31, December 31, March 31, (in millions) 2021 2020 2020 Supplemental disclosure of cash flow information Interest payments, net of amounts capitalized $ 945 $ 844 $ 341 Operating lea
Slide 23: Supplementary Operating and Financial Data
23 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Quarter (in thousands) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Customers, end of period Postpaid phone customers (1) 40,797 65,105 65,794 66,618 67,402 Postpaid other customers (1) 7,014 12,648 13,938 14,732 15,170 Total pos
Slide 24: Supplementary Operating and Financial Data (continued)
24 T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) (Unaudited) Quarter (in millions, except percentages) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Financial Measures Service revenues $ 8,846 $13,230 $14,139 $14,180 $14,192 Total revenues 11,113 17,671 19,272 20,341 19,759 Net
Slide 25: Calculation of Operating Measures
25 T-Mobile US, Inc. Calculation of Operating Measures (Unaudited) The following table illustrates the calculation of our operating measures ARPA and ARPU from the related service revenues: Quarter (in millions, except average number of accounts and customers, ARPA and ARPU) Q1 2020 Q2 2020 Q3 2020
Slide 26: Reconciliation of Non-GAAP Financial Measures to GAAP
26 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (Unaudited) This Investor Factbook includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accorda
Slide 27: Reconciliation of Non-GAAP Financial Measures (continued)
27 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Net debt (excluding tower obligations) to the LTM Pro Forma Adjusted EBITDA and Pro Forma Core Adjusted EBITDA ratios are calculated as follows: Mar 31, Jun 30, Sep 30, Dec 31, Mar 3
Slide 28: Reconciliation of Non-GAAP Financial Measures (continued)
28 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Our current guidance range for Free Cash Flow is calculated as follows: FY 2021 Current Guidance (in millions) Range Net cash provided by operating activities $ 13,200 $ 13,600 Cash
Slide 29: Reconciliations to Beginning Customers and Accounts
29 T-Mobile US, Inc. Reconciliations to Beginning Customers and Accounts (Unaudited) Postpaid Postpaid Total phone other postpaid Prepaid Total (in thousands) customers customers customers customers customers Reconciliation to beginning customers T-Mobile customers as reported, end of period March 3
Slide 30: Pro Forma Income Statement Metrics
30 T-Mobile US, Inc. Pro Forma Income Statement Metrics (Unaudited) The following tables present certain income statement metrics on a pro forma basis as though the Merger had been completed on January 1, 2019. The unaudited pro forma income statement metrics have been prepared in accordance with Ar
Slide 31: Pro Forma Income Statement Metrics (Continued)
31 T-Mobile US, Inc. Pro Forma Income Statement Metrics (Continued) (Unaudited) Three Months Ended September December March 31, (in millions) 30, 2019 31, 2019 2020 Depreciation and amortization Combined depreciation and amortization (1) $ 3,882 $ 4,332 $ 4,061 Pro forma adjustments (5) 202 (210) (4
Slide 32: Pro Forma Income Statement Metrics (Continued)
32 T-Mobile US, Inc. Pro Forma Income Statement Metrics (Continued) (Unaudited) (1) Represents the sum of historically filed T-Mobile and Sprint standalone GAAP reported amounts. Please reference the T-Mobile Quarterly Reports on Form 10-Q for the quarterly period ended March 31, 2020 and the Curren
Slide 33: Definitions of Terms
33 Definitions of Terms Operating and financial measures are utilized by T-Mobile’s management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although companies in the wireless industry may not define measures in precisely the same way, T-Mob
Slide 34: Cautionary Statement Regarding Forward-Looking Statements
34 Cautionary Statement Regarding Forward-Looking Statements This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’