Slide 1: ***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as
***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.
Slide 2: Disclaimer
Disclaimer This document and any related conference call or webcast (including any related Q&A session) has been prepared by Telefónica, S.A. (“Telefónica” or the “Company”, and together with its subsidiaries the “Telefónica Group”) exclusively for its use during the presentation of financial result
Slide 3: Summary
Summary Mr. Marc Murtra Chairman & CEO ***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.
Slide 4: Opening remarks
Opening remarks To provide citizens the best access to digital technologies Additional and enhanced customer services A more innovative and competitive company Ambitious and effective management Absolute commitment to guidance and financial discipline Build a stronger more competitive European opera
Slide 5: Delivered on 2025 commitments with accelerating momentum in Q4
Delivered on 2025 commitments with accelerating momentum in Q4 2025 Metric FY 25 Q4 25 Guidance Revenue 1 • Accelerated adj. EBITDA and adj. OpCFaL growth in Q4; exiting 2025 with Growth +1.5% ✓ +1.3% @ constant momentum; strong B2B performance Adj. 1,2 EBITDA Growth +2.0% ✓ +2.8% @ constant • Adj.
Slide 6: Milestones achieved in 2025 create a solid foundation for Transform & Grow plan
Milestones achieved in 2025 create a solid foundation for Transform & Grow plan DELIVER BEST-IN- EXPAND B2C 1 CLASS CUSTOMER EXPERIENCE 2 OFFERING 3 SCALE B2B FOCUS ON PORTFOLIO • Accesses reached 326.1m, +2% y-o-y, NPS score 35 (+2 p.p. vs Q3) MANAGEMENT EXECUTION • Spain leading on CLV with best-i
Slide 7: Transform & Grow: the 2026 priorities that drive the next phase of growth
Transform & Grow: the 2026 priorities that drive the next phase of growth DELIVER BEST-IN-CLASS 1 CUSTOMER EXPERIENCE 2 EXPANDgrowth B2C OFFERING 3 SCALE B2B • Faster incidents resolution across the Group • Accelerated convergence in Brazil and • Scaling cybersecurity and cloud • Hyper-personalisati
Slide 8: Guidance 2026, 2025-2028 and 2028-2030
Guidance 2026, 2025-2028 and 2028-2030 2030 2028 Transform 2026 Transform & Grow & Grow 2026 Guidance Revenue1 1.5%-2.5% 1.5-2.5% CAGR '25-'28 2.5-3.5% CAGR '28-'30 @ constant Adj. EBITDA1,2 1.5%-2.5% 1.5-2.5% CAGR '25-'28 2.5-3.5% CAGR '28-'30 @ constant CapEx ex spectrum/Revenue ~12% Down to ~12%
Slide 9: Operating Business
Operating Business Mr. Emilio Gayo COO ***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.
Slide 10: Spain: Operational excellence support outstanding KPIs, FY growth across financials
Spain: Operational excellence support outstanding KPIs, FY growth across financials • 2025, best KPIs since 2018 Net adds (k) Convergent KPIs - Record FBB and TV net adds - Lowest churn ever, best portability ratio FBB Postpaid Convergent Pay TV - NPS based on segmentation and top QoS ARPU (€) Churn
Slide 11: Brazil: Vivo differentiated assets are driving strong operational and financial performance
Brazil: Vivo differentiated assets are driving strong operational and financial performance Net adds (k) KPIs (local currency) • Access base at an all-time high FTTH Contract FTTH ARPU Mobile ARPU - Vivo Total (fully convergent) +40.9% - Steady growth in FTTH & contract +12.0% +5.7% Accesses y-o-y F
Slide 12: Germany: Robust core business momentum, 1&1 migration weighing on financials
Germany: Robust core business momentum, 1&1 migration weighing on financials Net adds (k) ARPU (y-o-y) • Focused on profitable growth in a mature market Postpaid Fixed BB IoT O2 Postpaid Fixed BB with persistently high promotional activity - Good traction O2 brand; attractive mobile +4.0% (0.4%) +33
Slide 13: VMO2: Strong progress in fiber and 5G deployment
VMO2: Strong progress in fiber and 5G deployment Net adds (k) ARPU (y-o-y) • Fixed footprint: 18.8m UBB PPs Postpaid Fixed BB Postpaid Fixed BB • 5G outdoor coverage: 87% (+12 p.p. y-o-y) -1.5% -0.9% Accesses (y-o-y) • Improved fixed-line trading for 2nd consecutive 2.0% 2.6% Q 1.6% 1.4% 1.3% 1.2% -
Slide 14: Telefónica Tech / Telefónica Infra
Telefónica Tech / Telefónica Infra Telefónica Tech Telefónica Infra Revenue (€m) (y-o-y constant) • Focused on value creation optionality • Contributes to the industrial transformation and efficiency of OBs +18.9% 2,222 Growth in line FTTH JV premises passed (m) with revenue (via FibreCos) Bookings
Slide 15: Financials / ESG
Financials / ESG Mr. Juan Azcue Chief Financial & Corporate Development Officer ***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.
Slide 16: Q4 momentum across our key financial metrics
Q4 momentum across our key financial metrics FY 25 Q4 25 Current Constant Current Constant € in millions Current Current y-o-y y-o-y y-o-y y-o-y Revenue 35,120 (1.5%) 1.5% 9,174 0.7% 1.3% FY negative FX impact, Service revenue 31,601 (1.5%) 1.5% 8,107 0.3% 0.9% lessen in Q4 B2C revenue 20,831 (2.4%)
Slide 17: FY 2025 guidance exceeded and 2026 upgraded guidance
FY 2025 guidance exceeded and 2026 upgraded guidance FCF vs Guidance Guidance Current Q4 & FY 25 ~€3.0bn ~€2.9bn – €3bn €2.8bn • Q4 FCF acceleration drove full year delivery ~€2.7bn • 2025 FCF above guidance on healthier FCF basis after some Hispam disposals and positive underlying momentum 2026 • U
Slide 18: Disciplined balance sheet management
Disciplined balance sheet management Net Financial Debt ND/EBITDAaL adj. Highlights ND/EBITDAaL adj. 2.78x 2.58x 27,161 (1,604) 2,126 (1,741) 882 26,824 • Leverage reduction in Q4, from 2.87x in Q3 to (€2.2bn) ~€24.6bn 2.78x, further deleverage in 2026 towards 2.5x target in 2028 • Committed to inve
Slide 19: Clear financial priorities position Telefónica to create long-term value
Clear financial priorities position Telefónica to create long-term value VALUEVA ACCRETIVE M&A DE-RISKED AND INVESTMENT SUSTAINABLE GROWING FCF GRADE A MUST REMUNERATION - CORE MARKETS LINKED TO FCF OPPORTUNITIES - SYNERGISTIC - FINANCIAL DISCIPLINED IMPROVED FINANCIAL FLEXIBILITY 14 ***Este documen
Slide 20: Continued progression across the sustainability pillars
Continued progression across the sustainability pillars Environmental Social Governance Advancing towards Net Zero in 2040 Connecting communities Safeguarding the supply chain -91% Scopes 1 & 2 since 2015 92% rural MBB coverage across core markets >17k sustainability-related audits in 2025 -34% Scop
Slide 21: Key takeaways
Key takeaways Mr. Marc Murtra Chairman & CEO ***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.
Slide 22: Closing remarks
Closing remarks Strong operating progress across Spain, Brazil and Germany, each advancing on strategic priorities Telefónica delivered on all 2025 financial commitments with accelerating momentum in Q4. Simplifying operations across the business with Hispam exit progressing, efficiency initiatives
Slide 23: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 24 February at 10:00 AM (CET), 9:00 AM (GMT), and 4:00 AM (EST) Participants from Telefónica • Marc Murtra l Chairman & CEO • Lutz Schüler l CEO Virgin Media O2 • Emilio Gayo l COO • Torsten Achtmann l Global Directo
Slide 24: Bloomberg ESG Score #2 in sector CDP
Bloomberg ESG Score CDP 2025 ISS ESG Corporate Sustainalytics ESG Digital Inclusion Benchmark, #2 in sector Climate A #1 in sector Rating Industry Top Rated Social Benchmark and Ranking List 2025 #2 in sector 2025 Digital Rights 1st company worldwide 2026 For further information, please contact: FOL