Slide 1: Supercharging the Un-carrier: Investor Factbook Q3 2020
SUPERCHARGING THE UN-CARRIER INVESTOR FACTBOOK Q3 2020
Slide 2: Postpaid customer additions and churn commentary
The postpaid upgrade rate was approximately 4.3% in Q3 2020, compared to 4.5% in Q2 2020 and 4.7% in Q3 2019 . Postpaid phone net customer additions were 689,000 in Q3 2020, compared to 253,000 in Q2 2020 and 754,000 in Q3 2019. ▪ Sequentially, the increase was due to promotional activity and higher
Slide 3: Postpaid phone churn chart
1.01% 0.90% 0.89% 869 . ee 0.80%
Slide 4: Postpaid phone ARPU, accounts and ARPA
▪ Year-over-year, the increase was primarily due to an increase i further penetration in connected devices, and higher premium service revenues, partially offset by an increase in our promotional activities. Postpaid phone ARPU was $48.55 in Q3 2020, up 1.2% from $47.99 in Q2 2020 and up 5.0% from $
Slide 5: Postpaid ARPA and accounts charts
$133.03 $131.15 $130.39 g409.47 $130.57 25,486 25,623 14,734 15,047 = 15,244
Slide 6: Prepaid net additions, churn and ARPU
Prepaid net customer additions were 56,000 in Q3 2020, compared to net additions of 133,000 in Q2 2020 and net additions of 62,000 in Q3 2019. ▪ Sequentially, the decrease was primarily due to lower prepaid industry switching activity. ▪ Year-over-year, the slight decrease was primarily due to lower
Slide 7: Total net customer additions and total customers
98,327 100,362 68,54 66,503 67,894 Q3 2019 Q42019 Q12020 Q22020 Q3 2020 Total Net Customer Additions —O— Total customers
Slide 8: Service revenues
se was primarily due to an increase of 128% in Wholesale revenues driven by our Master Network Service Agreement with DISH, which went into effect Service revenues were $14.1 billion in Q3 2020, up 7% from $13.2 billion in Q2 2020 and up 62% from $8.7 billion in Q3 2019. ▪ Sequentially, the increa o
Slide 9: Total revenues
Total revenues were $19.3 billion in Q3 2020, up 9% from $17.7 billion in Q2 2020 and up 74% from $11.1 billion in Q3 2019.
Slide 10: Cost of services and equipment sales
. ▪ Sequentially, the increase was primarily driv As a percentage of Service revenues, Cost of Services, exclusive of D&A, and excluding Merger-related costs, decreased by 23 basis points sequentially and increased by 299 basis points year-ov Cost of Cost of services, exclusive of depreciation and a
Slide 11: Cost metrics as percentage of revenue chart
124% 122% 119% 86% 88%
Slide 12: Selling, general and administrative expense
as $4.9 billion i D&A w Selling, general and administrative (SG&A) expense w n Q3 2020, down 13% from $5.6 billion in Q2 2020 and up 39% from $3.5 billion in Q3 2019. ▪ Sequential ly, the decrease was driven by lower Merger-related and supplemental employee payroll, third-party commissions and clean
Slide 13: SG&A expense charts
$4,064 $4,150 $946 $1,000 $3,118 $3,150 $1,655 $1,776 $1,718 OTS Ee OneEE 9163. 1 1,547 $1,650 1,555 i : 23.0% 21.5% 15.0% 15.0% 15.5% e O Non-lease Related HI _sLease Related —O— % of Total Rev
Slide 14: Diluted Earnings Per Share
Diluted Earnings Per Share
Slide 15: Net income and EPS
of and , respectively. Those costs were not significant in Q3 2020. ▪ Impairment expense, net of tax, for Q2 2020 of and , respectively. There was no impairment expense in Q3 2020. ▪ Net income was $1.3 billion in Q3 2020, up 1,039% from $110 million in Q2 2020 and up 44% from $870 million in Q3 201
Slide 16: Adjusted EBITDA
▪ gher Postpaid Service and Equipment revenues, partially offset by higher Cost of equipment sales, higher Cost of services, excluding Merger-related costs, and 50.4% in the increase was primarily o $243 million Adjusted EBITDA was $7.1 billion in Q3 2020, up 2% from $7.0 billion in Q2 2020 and up 1
Slide 17: Cash flow charts
$2,772 1,748 : $1,537 $1,617 $777
Slide 18: Cash purchases of property and equipment and free cash flow
the decrease was impacted by the following: ▪ Higher cash purchases of property and equ ▪ gross payments for the settlement of interest rate swaps related to Merger financing of $2.3 billion in Q2 2020 which is excluded from Free Cash Flow Cash purchases of property and equipment were $3.2 billion i
Slide 19: Free cash flow chart
$1,398 $1,441 $1,134 $732 $352
Slide 20: Total debt, net debt and leverage
Total debt, excluding tower obligations, at the end of Q3 2020 was $69.2 billion. Net debt, excluding tower obligations, at the end of Q3 2020 was $62.6 billion. ▪ The ratio of net debt, excluding tower obligations, to Pro Forma Adjusted EBITDA for the trailing last twelve months (“LTM”) period was
Slide 21: Mission to build America's best 5G network
T-Mobile is on a mission to build America’s best 5G network, offering customers unrivalled coverage and capacity where they live, work, and play Verizon America’s Largest 5G Network as 4 million square miles Low-band 5G Mid-band 5G More than & Towns 2x FASTER \ ~108K Macro Cell Sites Sites ~ 68K Sma
Slide 22: Investor relations contact
investor.relations@t-mobile.com http://investor.t-mobile.com