Slide 1: Form 6-K Telefónica, S.A.
Table of Contents FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of February, 2016 Commission File Number: 001-09531 Telefónica, S.A. (Translation of registrant
Slide 2: Table of Contents
Table of Contents Telefónica, S.A. TABLE OF CONTENTS Sequential Page Item Number 1. Telefónica Group: Presentation on quarterly results January-December 2015 1
Slide 3: Results January - December 2015
Table of Contents January -Relations Results Telefonica Investor Telefónica, December S.A. 2015
Slide 4: Disclaimer
Table of Contents Disclaimer include and to expressions, represent, substantially information The Commission. Company, review development This including, Finally, exchange Investor Telefónica, T 1 elefonica the its forward-looking content document activity evolution, itfinancial itRelations may of i
Slide 5: 2015 Highlights and 2016 Outlook
Table of Contents 01elefonica Mr. Chairman T 2 2015 CésarHighlights Alierta & CEO 2016 Outlook
Slide 6: Unprecedented Digital Revolution
Table of Contents Unprecedented Social Digital 1 100 200 300 400 600 700 800 Revolution Industrial 5 0 500 T 3 AD BC 2025 TODAY 2000 1500 1000 0000 00 elefonica Development Revolution wealth Index creation ahead of us
Slide 7: Digitalisation Drives Economic Growth
Table of Contents Positive 1/5 A … o Digitalisation Industrial Digital T 4 elefonica Enhanced Greater Inclusion 10% though of global rise Single economic innovation Internet not in efficiency growth will yields and digitalisation fully Market Big is foster impact… reflected benefits ain across in hu
Slide 8: Exponential Data Traffic Growth
Table of Contents An 10 25 5G 4G 3G (EB/month 1.7 2.3 3.2 4.5 6.2 x5 8.7 2020E by 50Bn Exponential x13 (Data/month) 2015 <80 EXABYTES Source: T 5 elefonica MBPS GPS MBPS era >1,000 2016E 2020E of Alcatel-Lucent Huawei Ericsson exponential estimated speeds traffic growth information 2017Eandgrowth 20
Slide 9: Our Priorities: The Big Data Wave
Table of Contents The Big Services Wave Our Connectivity Accelerate monetisation Ensure (Video; Security; Build to reduce Give T 6 elefonica increase Data Digital priorities the a123churn new Smart over data IoT) growth customer Economy competitive back connectivity home; toengagement Cloud; our ope
Slide 10: Telefónica's Transformation 2012-2016
Table of Contents Telefónica’s 2012-2015: Data Back Building Active Outstanding 2016: Increase Enhance Massive Maintain Full Positive T 7 elefonica cash monetisation to Step portfolio growth 2015, data value Big afinancial dividend solid forward Positive ongoing shareholder Data monetisation better
Slide 11: 2015 Highlights: Accelerating Growth
Table of Contents 2015 Accelerating Avg. (0.8%) 0.7% 2.6% 4.0% (1.5%) Clear (organic Margin 0.0% 3.6% (3.9%) (0.2 Return OIBDA-CapEx CapEx/Sales (6.6%) (2.7%) 1.9% 14.5% Underlying 0.91 1.12 FCFS +23.9% (Euros) 1.01 FY T 8 (2.8%) elefonica 12 14 p.p.) 0.98 revenue Highlights: 0.2% progress ex-spectr
Slide 12: 2015 Financials
Table of Contents 2015 Organic Revenues Reported FCF FY € OIBDA OpCF Underlying Net EPS Non-cash Mainly T 9 elefonica in15 Financial Income millions 0.51 (€) 3,514 pre-spectrum Main (ex-spectrum) €3.2bn 11,414 14,926 Margin 1.12 y-o-y effects 47,219 financials: y-o-y 2,745 (€ 23.9% Debt millions) Re
Slide 13: Delivering on 2015 Commitments
Table of Contents Delivering 2015 (Constant Guidance UPGRADED FY Revenues OIBDA Limited CapEx/Sales Net €0.35/sh. €0.75/sh. Dividend €0.40/sh. First Share Executed Telefonica 10 15 Financial Tranche Guidance buyback: margin voluntary Cash in 2015 Growth FX on Jun-15 Around Scrip Debt/OIBDA 2014; our
Slide 14: 2016 Financial Guidance
Table of Contents 2016Financial Base Guidance 46,757 2016E 31.5% 16.8% €0.75/sh. Share Net 1.5% (adjusted <2.35x Better Telefonica 11 2015 Outlook buyback: than OIBDA CapEx/Sales Revenues for Full (Constant (Ex-VZ; 2yr O2 Debt/OIBDA Cash margin outlook %UK >4% share Dividend incl. Around FX sale) St
Slide 15: 2015 Achievements and 2016 Priorities
Table of Contents 2015José 02 2016 Mr. Telefonica 12 COO Achievements Priorities María Alvarez-Pallete
Slide 16: 2015 Highlights
Table of Contents 2015 Strong Several Focused o Focus FY Smartphone Fiber Pay Benefitting Enhancing Spain E-Plus, Driving Healthy FCF Leverage Substantial Managing Delivering Telefonica 13Increasing CapEx/Sales 14 TV of Highlights: connections recovering on FY year €4.8bn GVT assets 5.1m profitabili
Slide 17: Operating Momentum
Table of Contents 3.9% 4.2% 3.3% OIBDA Organic Q1 3.6% 2.4% 2.9% 3.5% 3.8% 31.2% (0.3pp) +0.2 32.2% Q4 Investor Telefónica, Strong Engines Mobile T. BB Access Improving Positive, Revenue Execution Maintaining Good Telefonica 14 Hispam: H1 Connectivity p.p. 4.0% Q4 momentum 31.2% organic 9M & data: (
Slide 18: Capturing Quality Accesses
Table of Contents Capturing Quality Accesses 30% 3.0x LTE 29.7m Strengthened Average Q1 0.8% 1.5% 1.9% 2.8% 2.7% 3.0% Profitable accesses Strong Added 271k Pay-TV Record T. Excellent Continued Enhancing Investor Telefonica 15 Hispam Q2 FTTx 29%12% fiber 2.5% 6.1m 6.1m momentum Q3 mobile platform tak
Slide 19: Mobile Data Monetisation
Table of Contents Usage 3x Dec-14 4% 12% 2015 Data 26.6% 19.1% 25.3% Q1 11.9% 16.9% 17.3% FY Strong LTE: LTE Q4 Capturing T. Double Roaming Continued Mobile ~30% >40% Further Connectivity Investor Telefónica, Telefonica 16 Hispam +63% Q2 avg. Mobile penetration traffic monetisation: Non-SMS revenue
Slide 20: Wider Digital Services and Video
Table of Contents Wider VIDEO: Digital 1,068 +15.1% OTHER Combining Video Q4 628 2,142 Organic Pay y-o-y Satellite 5.1 8.3 Dec-14 2.2 4.6 2.8 DTS: Dec-15 GVT: Video: 2015 Investing Expanding Leading 2016 VoD, Consolidate (€ Cloud Security M2M LTE Big Investor SmartSteps Telefónica, Telefonica 17 in1
Slide 21: Network and Digitalisation Transformation
Table of Contents TGR: Best Premises Connectivity Excellent Million 26 >30% FY LTE (+14 75% Europe 49% LatAm 43% (+18 (y-o-y Simplification Applications Physical Data Virtualisation All All-IP VoLTE LTE-A R&D Automatised Transforming 4 E2E Home >60% Unprecedented Digitalisation Boosting Maintained F
Slide 22: Telxius
Table of Contents Telxius: Optimising Specialised Targeting More Tower ~15k ~11k Primary Submarine Extensive SAM-1 PCCS Unisur Capacity Capacity: IP: Non-TEF International Reduce Considering Investor Telefónica, Telefonica 19 >4.5Tbps towers telecommunication active of (6k business (0.2k traffic (25
Slide 23: CapEx and OpCF
Table of Contents Organic 1,585 Ex-spectrum +5.0% 7,993 75% 2015 (OIBDA +10.2 Q1 (8.3%) (4.7%) (1.3%) 1.9% CapEx Driving Transforming CapEx/Sales Reinforcing Passing Back Investment Improved Simplification, Investor Telefónica, Telefonica 20 H1 of OpCF to 9,578 p.p. 9M istotal 2015 intensity peak gr
Slide 24: 2015 Results
Table of Contents 03 2015 Mr. Telefonica 21 CSFOAngel Results Vilá
Slide 25: Key Financials
Table of Contents Key Revenues FCF € OIBDA OpCF FY Underlying Net y-o-y EPS Q4 TOTAL Additionally, Investor Telefónica, Telefonica 22inresults 15 Financial Income millions financials 0.51 (€) 3,514 pre-spectrum (ex-spectrum) 11,414 14,926 Margin 1.12 Personnel Relations (0.38) 47,219 strongly 2,307
Slide 26: Reported vs Underlying Results
Table of Contents Reported FX: Forex 3.2 FX 2.5 325(67) OIBDA Perimeter: Q1 13.5 Perimeter 3.0 Q4 2,340 Provision TEF E-Plus PPA Net Investor Telefónica, Telefonica 23 15 non-recurrent p.p p.p. impact Income Latam p.p. Foundation 195 impact Q2 final (2.7 (2.7p.p. 6.7 Reported Underlying 3,781 Relati
Slide 27: Free Cash Flow and Shareholder Returns
Table of Contents Maintaining 3,514 FCFS €4,821m Q1 (0.12) 0.08 0.29 0.71 0.46 (€/share) ex-spectrum Reduced (€ 67 Taxes Wcapital CapEx OIBDA Minorities €1.4Bn FCF Improved Lower Savings Attractive 66% 48% €1.12 Negative FX Investor Telefónica, Telefonica 24 in 41 Q2 impact 2015 discont. cash millio
Slide 28: Spain: Commercial Performance
Table of Contents Spain: Net (31%) 1.8m 234 DTS 0.5m base Traditional Mobile Pay Fiber FBB 1.3% (0.1 y-o-y FY 50% UBB High-value Dec-14 53% UBB/FBB TV Reinforced Excellent Solid Churn “Fusión” 4.2m 3.7m “TV Largest LTE “More New “Fusión”, Best Investor Telefónica, Telefonica 25 churn 14 Add-ons/ add
Slide 29: Spain: Financial Performance
Table of Contents Spain: Revenue Including 0.8% +6 (3.8%) (1.5%)(2.0%) (7.2%) Q1 (since (6.4%) (4.2%) 1,272 1,311 y-o-y Q3 (5.7%) Solid Second Strong Growth Successful ~€30m Pay Profitability Non-recurrent: OIBDA FY Q4 Investor Telefónica, Telefonica 26 p.p. Q2 15 net 14 Revenue organic TV0.2% start
Slide 30: Spain: Voluntary Employment Plan
Table of Contents Spain: Voluntary Adapt 2 Conditions Minimum 68% Periods Will Agreed Other Salary Job Cash Impacts Direct since ~370m run-rate One-off €2.9Bn Additional Indirect Committed > Total Speeding Investor Telefónica, Telefonica 27year 75% creation leave of Flow cash year agreements the pla
Slide 31: Germany: Commercial Performance
Table of Contents Germany: Ex-adjustments: 141 2015 2.9% Q1 Solid Rational Contract VDSL Slight Sequential Continued o MSR Investor Telefónica, Telefonica 28Solid LTE Contract Strong Better 40% Q2 201 Revenue 1.3% commercial (+0.1% MSR coverage drives of Q3 LTE fixed 169 Relations and VDSL handset n
Slide 32: Germany: Synergies and Profitability
Table of Contents Germany: 4.4% OIBDA Organic 20.5% Q1 +0.3 Strong Better Synergies Continued FY Reported o 2015 Investor Telefónica, Telefonica 29Synergies: Leavers Shop In-city 3G Focused Rev CapEx Final Restructuring Q2 15p.p. National OIBDA 12.5% & OIBDA OpCF 23.8% profitability Q3 agreement foo
Slide 33: Brazil: Commercial Performance
Table of Contents Brazil: Mobile Total Contract 31.1m 25.6% 3.3% Fixed ARPU Accesses 10% FBB Pay 1.8m 4.4% Q1 Outstanding 97m New Data Increased Growing o 16.6m Investor Telefónica, Telefonica 3069% 100% LTE Capturing 52% Q4 TV customers ARPU: 33% 14% portfolio 3.8m 3.0% 0.0% accesses 15% 39.9m FTTx
Slide 34: Brazil: Financial Performance
Table of Contents Brazil: Revenue 4.3% 8.4% Fixed Mobile Total (4.0%) OIBDA Organic ex-one 34.2% 30.1% Q1 (1.0.pp) Robust Balanced Accelerating Outstanding o Synergy Organisation Investor Telefónica, Telefonica 31Q4Q2MSR 2nd Negative Mobile New OpEx Better 3.5% consecutive 31.2% data Q3 off Sustaine
Slide 35: Hispam: Commercial Performance
Table of Contents Hispam: Accesses +6% Penetration 22% O/ Revenue Total Rev 9.7% 9.5% OIBDA Organic 30.8% Q1 +1.3pp Increase Contract Enhanced Sequential Solid o Investor Telefónica, Telefonica 32Tariffs Highest-ever Booming FBB Growing Lower Strong Efficiency Fixed Q2 ex-handset 37% +44% Revenue 10
Slide 36: Hispam: Financial Performance
Table of Contents Hispam: Revenue (0.1%) 19.7% (5.4%)(0.6%) OIBDA Q4 FY Mexico Colombia: Peru: Argentina: Chile: VZ o Investor Telefónica, Telefonica 33Strengthening Sound Continued Sequential Robust Data Rev Steady Lower Handset 15 & CA: & FY +5.3 +6.1 38.7% promotions 7.6% Colombia (organic margin
Slide 37: UK: Consolidated Operation Discontinued
Table of Contents UK: Consolidated operation discontinued 133 Q1 Best in churn contract Contract base: MSR OIBDA 0.3% FY 24.0% Substantial Strongest Solid O2 LTE 80% Continued Total Ongoing Primarily Strong 2015 Q4 Investor Telefónica, Telefonica 34 UK; Q2 had growth OIBDA 14 172 Gaining as Penetrat
Slide 38: Leverage and Net Financial Debt
Table of Contents Leverage € 2.74x 45,087 2.91x Debt/OIBDA 2,673 Pre- Shareholder Others Hybrid ND/OIBDA Target 6,439 Adjusted Working Net Dividend Tax Spectrum FCF Investor Telefónica, Telefonica 35in Interest Financial financial Fin. millions retirements discontinued pre-spectrum: (419) 1,855 <(3,
Slide 39: Liquidity and Debt Maturities
Table of Contents Effective 5% 6% Guidance Lower Dec-14 Higher Venezuela 91% 19.1 ex-VZ O2 Dec-15 5.5 upfront Liquidity ~32 UK Sources 4.7 Undrawn Bonds Equity Other Net Total € Average 7.0 2016E Investor Telefónica, Telefonica 36inUK 1.9 7.4 5.26% debt sale billions billions; LT bank cost 2017E 8.5
Slide 40: Conclusion
Table of Contents 04 Conclusion Chairman Investor Telefónica, Telefonica 37 Relations &S.A. CEO
Slide 41: Summary
Table of Contents Summary 2015 2016 GROW Investor Telefónica, Telefonica 38 Accelerate Solid Robust Bold Maintain Ongoing PROFITABLY; Relations step set S.A. momentum of investments revenue ininresults integration transformation, momentum; MAINTAINING in in2015; & fiber, (GVT, Attractive Improving 4
Slide 42: For further information: Telefónica Investor Relations
Table of Contents For further Telefonica Investor Tel. www.telefonica.com/investors ir@telefonica.com +34 Relations 94 information: 482 87 00
Slide 43: Signatures
Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Telefónica, S.A. Date: February 26, 2016 By: /s/ Miguel Escrig Meliá Name: Miguel Esc