T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q1 2021 Earnings Presentation
23 slides from T-mobile Us's earnings presentation, May 4, 2021
Slide 1: Together We Are Unstoppable: Investor Factbook Q1 2021
TOGETHER WE ARE UNSTOPPABLE _INVESTOR gw & gw FACTBOOK Q12021
Slide 2: Postpaid net customer additions and churn
▪ Sequentially, the decrease was primarily due to lower additions in the public and educational sector, as well as higher churn. Year-over-year, the increase was primarily due to expanded retail presence as a result of the Merger, higher gross additions from connected devices, increased retail store
Slide 3: Postpaid Phone Churn
1.03% 0.98% 0.90% 0.86% 0.80%
Slide 4: Postpaid ARPU and ARPA
1.2% lower recurring charges from customers acquired in the Merger including from the impact of rate plan migrations, lower recurring charges from customers acquired in the Merger including rate plan migrations and ongoing promotional activity were mostly offset by an increase in average customers p
Slide 5: Postpaid Accounts and Postpaid ARPA
$133.03 $133.08 $132.91 $129.47 $130.57 25,486 25,623 25,754 26,014 15,244 Postpaid Accounts Postpaid ARPA.
Slide 6: Prepaid and total net customer additions
Prepaid net customer additions were 151 thousand in Q1 2021, compared to net additions of 84 thousand in Q4 2020 and net losses of 128 thousand in Q1 2020. ▪ Sequentially and year-over-year, the increase was primarily due to lower churn. ▪ Migrations to postpaid plans reduced prepaid net customer ad
Slide 7: Total Net Customer Additions and Total Customers
98,327 100,362 102,064 103,437 . “* 26 68,54 1,702 1,245 168 649 Q1 2020 Q22020 Q32020 Q42020 Qi 2021 Total Net Customer Additions —O— Total Customers
Slide 8: Service and equipment revenues
ntially flat compared to $14.2 billion in Q4 2020 and up 60% from $8.8 billion in Q1 2020. ▪ ▪ ▪ ▪ ▪ Year-over-year, primarily due to: ▪ An increase in the number of devices sold, excluding purchased leased devices, ▪ Higher average revenue per device sold, excluding purchased leased devices, due to
Slide 9: Revenue by type chart
$5,973 $5,346 $1,041 $4,269 $4,728 $4,305 1,421 ; $3,603 $2,117 $2,848 $165. $1,952 Equipment sales I _sLease revenues
Slide 10: Cost of services and cost of equipment sales
tization (D&A), was $3.4 billion in Q1 2021, down 12% from $3.8 billion in Q4 2020 and up 106% from $1.6 billion in Q1 2020. ▪ Sequentially, the decrease was primarily due to lower Merger-related costs in the current quarter, as well as higher realized Merger synergies, which were partially offset b
Slide 11: Cost ratios chart
119% 98% 96%
Slide 12: Selling, general and administrative expense
as $4.8 billion i ▪ 1 2021 and Q4 2020 and $117 million in Q1 2020. ▪ ▪ sequentially and decreased 600 basis points year-over-year. ▪ Tot D&A w $982 million i ▪ Selling, general and administrative (SG&A) expense w n Q1 2021, essentially flat compared to $4.8 billion in Q4 2020 and up 30% from $3.7 b
Slide 13: SG&A expense chart
$4,064 $4,150 $4,219 $4,289 $946 fm $1,000 $982 $3,118 $3,150 $3,237 = $1,718 | oan? fT pe 23.6% 22.3% 22.8% 23.9% ao e —O Non-lease Related HI _sLease Related —O— % of Service Rev
Slide 14: Diluted Earnings Per Share (Diluted EPS)
Diluted Earnings Per Share (Diluted EPS)
Slide 15: Net income and diluted EPS
▪ increase Cost of equipment sales and Cost of services, partially offset by lower Equipment revenues and higher Income tax expense. Service and Equipment revenues. Diluted EPS also decreased due to an increase in outstanding shares as a result of the Merger. Net income was $933 million in Q1 2021,
Slide 16: Core Adjusted EBITDA
Core Adjusted EBITDA was $5.9 billion in Q1 2021, up 7% 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 Cost of equipment sales and lower Cost of services, excluding Merger-related costs, partially offset by lower Equipmen
Slide 17: Core Adjusted EBITDA chart
3,661 $3,474 : $2,772 $1,617 $777
Slide 18: Cash flow and capital expenditures
▪ Year-over-year, the increase was primarily driven by network integration related to the Merger and the continued build-out of our nationwide 5G network. ▪ Sequentially, the increase was primarily due to lower cash purchases of property and equipment, including capitalized interest, and higher Net
Slide 19: Free cash flow chart
$1,441 $1,304 $732 $476 $352
Slide 20: Net debt, leverage and financing activity
▪ The ratio of net debt, excluding tower obligations, to Pro Forma Core Adjusted EBITDA for the last twelve months (“LTM”) period was 3.1x at the end of Q1 2021 compared to 2.9x at the end of Q4 2020. ▪ The ratio of net debt, excluding tower obligations, to Pro Forma Adjusted EBITDA for the LTM peri
Slide 21: America's largest, fastest and most reliable 5G network
America’s largest, fastest and most reliable 5G network ‘l? Mobile EXTENDED - 5G Coverage : RANGE 5G 295M POPs 1.6 — been OG Mid-band and Millimeter Wave 4x MORE — Verizon and 140M POPs 2x MORE than AT&T 325 Mbps “22° LARGEST FASTEST MOST RELIABLE T-Mobile customers get the fas 5G download speeds, e
Slide 22: Current Mid-Band Holdings
Current Mid-Band Holdings after Clearance, 2024+ National Averages 292 ll C-Band/CBRS [=27= | 2.5 GHz and below 244 Combined LTE + 5G | Aggregation Mid-Band coverage Mid-Band with Carrier Aggregation Low-Band coverage Mid-Band extension 171 K 174 : 265 Macro Cell Sites “70K ee 70 Small cell/distribu
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