Slide 1: Investor Factbook Q2 2017
EXHIBIT 99.2 ‘FE --Mobile* investor Factbook 22017 REWRITING THE RULES. FORCING
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Slide 3: T-Mobile US Reports Second Quarter 2017 Results
T-Mobile US, Inc. Investor Factbook T-Mobile US Reports Second Quarter 2017 Results T-Mobile Delivers Record Results in Q2 2017, Un-carrier Performing at Peak Levels Across the Board Record Service Revenues, Strong Net Income, Record Adjusted EBITDA 1.3 Million Customer Net Additions, and Record-Low
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Slide 5: Customer Metrics
CUSTOMER METRICS Total Branded Postpaid Net Additions Branded Postpaid Customers (in thousands) ▪ Branded postpaid phone net customer additions were 786,000 in Q2 2017 compared to 798,000 in Q1 2017 and 646,000 in Q2 2016. This is expected to mark the 14th consecutive quarter that T-Mobile has led t
Slide 6: Branded postpaid net additions commentary
Mobile has led the industry in branded postpaid net customer additions. The sequential and year-over-year declines were primarily due to a lower level of branded postpaid mobile broadband net customer additions in Q2 2017. The year-over-year decline in mobile broadband net additions was partially of
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Slide 8: Branded Postpaid Phone Churn and Prepaid Net Additions
Branded Postpaid Phone Churn ▪ Branded postpaid phone churn was a record-low 1.10% in Q2 2017, down 8 basis points from 1.18% in Q1 2017 and down 17 basis points from 1.27% in Q2 2016. ▪ The sequential decrease in branded postpaid phone churn was primarily due to increased customer satisfaction and
Slide 9: Increased competitive activity
increased competitive activity. 4
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Slide 11: Total Branded and Wholesale Net Additions
Total Branded Net Additions Total Branded Customers (in thousands) ▪ Total branded net customer additions were 911,000 in Q2 2017, compared to 1,300,000 in Q1 2017 and 1,366,000 in Q2 2016. Wholesale Net Additions (in thousands) Wholesale Customers ▪ Wholesale net customer additions were 422,000 in
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Slide 13: Network
NETWORK Depth of T-Mobile's Nationwide Low-Band ▪ T-Mobile continues to increase the depth, breadth and Spectrum (600 MHz and 700 MHz) functionality of "America's Best Unlimited Network" by adding new spectrum, re-farming existing spectrum, and implementing new technology. Collectively, these networ
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Slide 16: Projected Coverage Map and Network Coverage Growth
T-Mobile Projected Coverage Map (as of December 31, 2017) Network Coverage Growth ▪ T-Mobile continues to expand its coverage breadth and now provides 4G LTE coverage to 315 million people. ▪ We are targeting to provide 321 million people with 4G LTE coverage by year-end 2017. ▪ T-Mobile has 700 MHz
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Slide 19: Network Capacity Growth
Network Capacity Growth ▪ T-Mobile continues to expand its capacity through the re- farming of existing spectrum and implementation of new technologies including Voice over LTE ("VoLTE"), Carrier Aggregation, 4x4 MIMO, 256 Quadrature Amplitude Modulation ("QAM"), and LTE Unlicensed ("LTE-U"). ▪ VoLT
Slide 20: LTE-U availability
▪ In Q2 2017, T-Mobile became the first national wireless provider to make LTE-U available to customers. LTE-U uses publicly available 5 GHz airwaves to bolster existing LTE capacity and download speeds. LTE-U is currently live in multiple cities, and T-Mobile will expand the deployment through the
Slide 21: Distribution
DISTRIBUTION Retail Footprint - # of doors ▪ T-Mobile’s network expansion provides a unique opportunity to (in thousands) grow our distribution footprint by 30 to 40 million POPs by year-end 2017, bringing our total distribution footprint to 260 to 270 million people. ▪ To reach that target, we plan
Slide 22: Device Financing
DEVICE FINANCING Total EIP Receivables, net and QoQ Equipment Installment Plans (EIP) Change in Total EIP Receivables ▪ T-Mobile provided $1.657 billion in gross EIP device ($ in millions) financing to its customers in Q2 2017, up 23.7% from $1.339 billion in Q1 2017 and up 6.1% from $1.562 billion
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Slide 24: Leased device depreciation and lease revenues
▪ Depreciation expense associated with leased devices was $268 million in Q2 2017 compared to $379 million in Q1 2017 and $397 million in Q2 2016. The sequential and year-over-year decreases are due to a lower number of devices under lease. ▪ Leased devices included in property and equipment, net we
Slide 25: Customer Quality
CUSTOMER QUALITY Total Bad Debt Expense and Losses from ▪ Total bad debt expense and losses from sales of receivables was $162 million in Q2 2017, compared to $188 Sales of Receivables million in Q1 2017 and $165 million in Q2 2016. ($ in millions, % of Total Revs (1)) ▪ As a percentage of total rev
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Slide 27: Operating Metrics: ARPU and ABPU
OPERATING METRICS Branded Postpaid Phone ARPU Branded Postpaid Phone ARPU ($ per month) ▪ Branded postpaid phone ARPU was $47.01 in Q2 2017, down 1.1% from $47.53 in Q1 2017 and down 0.2% from $47.11 in Q2 2016. ▪ Sequentially, positive impacts from T-Mobile ONE rate plans were more than offset by d
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Slide 29: Customers per Account and Prepaid ARPU
Branded Postpaid Customers per AccountBranded Postpaid Customers per Account ▪ Branded postpaid customers per account was 2.91 at the end of Q2 2017, compared to 2.88 at the end of Q1 2017 and 2.64 at the end of Q2 2016. ▪ Sequentially, the increase was primarily due to growth in customers on promot
Slide 30: Revenues
REVENUES Service Revenue Growth at Service Revenues Wireless Peers ▪ T-Mobile is expected to once again lead the industry in (YoY % Growth) year-over-year service revenue percentage growth in Q2 th 2017. This is expected to mark the 13 consecutive quarter that T-Mobile has led the industry in this m
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Slide 32: Equipment Revenues
Equipment Revenues Equipment Revenues ($ in millions) ▪ Equipment revenues were $2.506 billion in Q2 2017, up 22.7% from $2.043 billion in Q1 2017 and up 14.5% from $2.188 billion in Q2 2016. Equipment revenues in Q2 2017 were comprised of lease revenues of $234 million and non- lease revenues of $2
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Slide 34: Operating Expenses
OPERATING EXPENSES Cost of Services Cost of Services ($ in millions, % of Service Revs) ▪ Cost of services was $1.518 billion in Q2 2017, up 7.8% from $1.408 billion in Q1 2017 and up 6.2% from $1.429 billion in Q2 2016. ▪ Sequentially, the increase was primarily due to regulatory expenses related t
Slide 35: Cost of equipment sales commentary
partially offset by a lower number of devices sold, and a decrease in other costs related to inventory and warranty exchange activities. 16
Slide 36: SG&A and D&A Expense
Selling, General and Admin. (SG&A) Expense ▪ SG&A expense was $2.915 billion in Q2 2017, down 1.4% SG&A Expense from $2.955 billion in Q1 2017 and up 5.2% from $2.772 billion ($ in millions, % of Service Revs) in Q2 2016. ▪ Sequentially, the decrease was primarily due to focused cost control and low
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Slide 38: Net Income and Diluted Earnings Per Share
NET INCOME AND DILUTED Net Income ($ in millions) EARNINGS PER SHARE ▪ Net income was strong at $581 million in Q2 2017, down 16.8% from $698 million in Q1 2017 and up 158% from $225 million in Q2 2016. ▪ Diluted earnings per share was $0.67 in Q2 2017 down from $0.80 in Q1 2017 and up from $0.25 in
Slide 39: Adjusted EBITDA
Adjusted EBITDA(1) ADJUSTED EBITDA ($ in millions) ▪ Adjusted EBITDA was a record-high $3.012 billion in Q2 2017, up 12.9% from $2.668 billion in Q1 2017 and up 19.1% from $2.529 billion in Q2 2016. ▪ Sequentially, the increase in Adjusted EBITDA was primarily due to lower losses on equipment and hi
Slide 40: Capital Expenditures
Cash Purchases of Property and CAPITAL EXPENDITURES Equipment ▪ Cash purchases of property and equipment were $1.347 ($ in millions, % of Service Revs) billion in Q2 2017, compared to $1.528 billion in Q1 2017 and $1.349 billion in Q2 2016. ▪ Sequentially, the decrease was primarily due to the subst
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Slide 42: Cash Flow: Operating Activities
CASH FLOW Net Cash Provided by Operating Activities Operating Activities ($ in millions) ▪ Net cash provided by operating activities was $1.829 billion in Q2 2017, compared to $1.713 billion in Q1 2017 and $1.768 billion in Q2 2016. ▪ Sequentially, the increase was primarily due to a higher non-cash
Slide 43: Investing activities commentary
▪ Year over year, the increase was primarily due to an increase in capital invested in the purchase of spectrum licenses in Q2 2017 of $3.5 billion, primarily driven by our winning bid for 1,525 licenses in the 600 MHz spectrum auction and a decrease in sales of short-term investments. 21
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Slide 45: Financing Activities and Free Cash Flow
Net Cash Provided by (Used in) Financing Activities Financing Activities ($ in millions) ▪ Cash provided by financing activities was an outflow of $2.016 billion in Q2 2017 compared to an inflow of $1.838 billion in Q1 2017 and an inflow of $790 million in Q2 2016. ▪ Sequentially the decrease was pr
Slide 46: Operating cash flow working capital commentary
changes in Equipment installment plan receivables, Inventories, Other current and long-term assets and Other current and long term liabilities were partially offset by improvements in Accounts payable and accrued liabilities. The change in EIP receivables was primarily due to an increase in devices
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Slide 48: Capital Structure
Total Debt and Net Debt (excl. Tower CAPITAL STRUCTURE Obligations) ▪ Total debt, excluding tower obligations, at the end of Q2 Net Debt to LTM Net Income 2017 was $28.5 billion and was comprised of the following: Net Debt to LTM Adjusted EBITDA ▪ $522.0 million of short-term debt; ($ in billions) ▪
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Slide 50: Guidance
▪ During the six months ended June 30, 2017, we redeemed seven Senior Notes with an aggregate principal amount of $8.25 billion for a total redemption price of $8.44 billion. GUIDANCE 2017 Guidance Outlook ▪ Branded postpaid net customer additions for the full-year 2017 of 3.0 - 3.6 million, an incr
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Slide 52: Upcoming Events and Contact Information
UPCOMING EVENTS (All dates and attendance tentative) ▪ Oppenheimer 20th Annual Technology, Internet & Communications Conference, August 8-9, Boston, MA ▪ 2017 Raymond James Park City TeleComVergence Summit, August 16-17, Park City, UT ▪ Goldman Sachs Communacopia, September 12-14, New York, NY ▪ Deu
Slide 53: Effect of Change in Accounting Principle
T-Mobile US, Inc. Effect of Change in Accounting Principle (Unaudited) Effective January 1, 2017, we began presenting the amortization of the imputed discount on our Equipment Installment Plan (“EIP”) receivables as Other revenue on our Condensed Consolidated Statements of Comprehensive Income. Prio
Slide 54: Adjusted EBITDA as adjusted vs unadjusted
Adjusted EBITDA - as adjusted $ 1,930 $ 2,016 $ 2,364 Adjusted EBITDA - unadjusted 1,817 1,908 2,280 26
Slide 55: Condensed Consolidated Balance Sheets
T-Mobile US, Inc. Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, (in millions, except share and per share amounts) 2017 2016 Assets Current assets Cash and cash equivalents $ 181 $ 5,500 Accounts receivable, net of allowances of $83 and $102 1,719 1,896 Equipment installment
Slide 56: Condensed Consolidated Statements of Comprehensive Income
T-Mobile US, Inc. Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, 2017 2017 2016 2017 2016 (in millions, except share and per share amounts) As Adjusted (1) As Adjusted (1) Revenues Branded postpaid revenu
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Slide 58: Condensed Consolidated Statements of Cash Flows
T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, (in millions) 2017 2017 2016 2017 2016 Operating activities Net income $ 581 $ 698 $ 225 $ 1,279 $ 704 Adjustments to reconcile net income to net cas
Slide 59: Supplemental cash flow information
Leased devices transferred from inventory to property and equipment 270 243 157 513 941 Returned leased devices transferred from property and equipment to inventory (273) (197) (105) (470) (236) Issuance of short-term debt for financing of property and equipment 2 288 — 290 150 Assets acquired under
Slide 60: Supplementary Operating and Financial Data
T-Mobile US, Inc. Supplementary Operating and Financial Data Six Months Ended June Quarter 30, (in thousands) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 2016 2017 Customers, end of period Branded postpaid phone customers 30,232 30,878 30,364 31,297 32,095 32,881 30,878 32,881 Branded postpaid m
Slide 61: Supplementary Operating and Financial Data (continued)
T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) Six Months Ended June Quarter 30, Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 2016 2017 Financial Metrics Service revenues (in millions) $6,578 $6,888 $7,133 $7,245 $7,329 $7,445 $13,466 $14,774 Total revenues (in millions)
Slide 62: Reconciliation of Non-GAAP Financial Measures to GAAP
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 accordance
Slide 63: Reconciliation of Non-GAAP Measures (continued)
T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Net debt (excluding Tower obligations) to last twelve months Net income and Adjusted EBITDA ratios are calculated as follows: Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, (in million
Slide 64: Reconciliation of Operating Measures to Branded Postpaid Service Revenues
T-Mobile US, Inc. Reconciliation of Operating Measures to Branded Postpaid Service Revenues (Unaudited) The following tables illustrate the calculation of our operating measures ARPU and ABPU and reconcile these measures to the related service revenues: Six Months Ended June Quarter 30, (in millions
Slide 65: Definitions of Terms
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-Mobile
Slide 66: Forward-Looking Statements
Forward-Looking Statements This Investor Factbook includes "forward-looking statements" within the meaning of the U.S. federal securities laws. Any statements made herein that are not statements of historical fact, including statements about T-Mobile's plans, outlook, beliefs, opinion, projections,