Slide 1: PUBLICO
***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC 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. (hereinafter “Telefónica” or “the Company”, and together with its subsidiaries the “Telefónica Group”) exclusively for its use during the presentation of fina
Slide 3: Q3 24 Summary
Q3 24 Summary Mr. Ángel Vilá COO ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 4: Q3: a quarter of strong operating and strategic progress
Q3: a quarter of strong operating and strategic progress Highlights Execution delivery State-of-the-art network deployment maintains rapid ✓ Signed FibreCo agreement with VOD Spain pace (81.6m FTTH PPs, 71% 5G coverage in core markets) ✓ LT FTTH IRU agreement with MasOrange Strong underlying perform
Slide 5: Stronger Telefónica
Stronger Telefónica Enhanced Next Generation Leaner CUSTOMER NETWORKS OPERATIONS experience focus • Expanding fibre: 81.6m PPs, +2.7m q-o-q • Customers +1m q-o-q to 393m • Asset optimisation, copper shutdown, 7.7k Spain COs closed (Oct-24) • 5G coverage +6 p.p. q-o-q in core markets (2026 • Spain re
Slide 6: Strong FCF and consistent underlying performance
Strong FCF and consistent underlying performance EBITDAaL-CapEx (€m, y-o-y) FCF (€m, % y-o-y) Local currency y-o-y Q3 9M +89.5% +27.7% Revenue 1,030 Spain +1.0% +1.0% Brazil +7.1% +7.0% 2.1% 866 Germany -1.6% -0.6% EBITDA Spain +1.0% +0.6% (0.1%) Brazil +6.9% +7.0% Germany +3.0% +3.9% Q3 9M Q3 9M •
Slide 7: Telefónica Group: consistent underlying performance
Telefónica Group: consistent underlying performance Q3 y-o-y 9M y-o-y 9M y-o-y reported reported guidance FX • Solid underlying revenue growth Growth • B2B revenue +2.8% in 9M, double digit growth in IT, despite FX Revenue -2.9% -0.3% +0.3% • Strong growth in FTTH accesses; +11% y-o-y Service -2.2%
Slide 8: Q3 Geographies & Units
Q3 24 Geographies & Units Mr. Ángel Vilá COO ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 9: Spain: improving commercial momentum, accelerating EBITDA growth
Spain: improving commercial momentum, accelerating EBITDA growth Net adds (k) Convergent KPIs Highlights FBB Postpaid Convergent Pay TV ARPU (€) Churn (%) • Best quarterly net adds in 6 years 119 90.6 91.2 92.2 91.7 90.2 • Churn historic low (0.8%); highest ever NPS (+3 p.p. y-o-y) 69 62 34 49 0.9%
Slide 10: Brazil: sustained growth, expanding profitability
Brazil: sustained growth, expanding profitability Accesses growth (y-o-y) FTTH Premises passed (m) Contract FTTH Highlights Mobile contract m.s. 43.2% • Largest FTTH network in Latam 28.3 29 26.2 26.8 27.3 • Accelerating contract accesses with higher ARPU (+2%) 14% 13% 12% 7% 13% 8% 12% • FTTH conne
Slide 11: Germany: continued commercial traction on core business strength
Germany: continued commercial traction on core business strength Contract net adds (k) Fixed ARPU (y-o-y) 396 Highlights 5.2% 284 226 1 3.8% • Consistent q-o-q growth in contract net adds 215 1 157 1 2.4% • Simplified O2 new tariff portfolio from Nov-24 2.2% 2.2% • O2 network rated “excellent” (Maga
Slide 12: VMO2: commercial momentum and targeted investments
VMO2: commercial momentum and targeted investments Fixed network build (k new PPs) Mobile contract churn (%) UBB PPs Highlights footprint 17.8m 299 295 • 5G and fibre rollout continues at pace (9M 281 251 CapEx/Sales 20.5%) 194 • Contract churn at low levels (-0.1 p.p. q-o-q) 1.2% 1.2% 1.2% 1.0% 1.1
Slide 13: Tech: the B2B commercial growth driver
Tech: the B2B commercial growth driver Revenue Commercial performance (€m) y-o-y +40% Q3 Bookings +25% +25% +6.3% +9.5% Bookings Funnel 1,453 vs. 9M 23 vs. 9M 23 €2bn LTM Revenue 470 (+12.0% y-o-y) Growing faster than Growing in line with revenue bookings Q3 24 9M 24 5.5m B2B customers Future-proof
Slide 14: Infra: a worldwide connectivity network
Infra: a worldwide connectivity network Accelerating FTTH deployment Global connectivity provider Total FTTH premises passed (m) (via FiberCos) >100km of international fibre connectivity ~30 24 20 Sustained profitability Steady traffic growth 49% +12% EBITDA margin Sep-23 Sep-24 2026E vs. 9M 23 9M 2
Slide 15: Q3 Hispam / Financials / ESG
Q3 24 Hispam / Financials / ESG Mrs. Laura Abasolo CFCO & Head of Telefónica Hispam ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 16: Hispam: preserving operating leverage
Hispam: preserving operating leverage Accesses growth (y-o-y) FTTH & Cable PPs (m) 18.7m FTTH Highlights Contract FTTH & Cable Leading the market 21.6 22.4 12% 19.5 20.3 20.9 • Aiming for a more rational industry 8% 6% • Exploring inorganic opportunities 3.0% 4% 4% 1.0% 1.0% • FTTH vehicles avoiding
Slide 17: FCF aligning with reiterated 2024 guidance
FCF aligning with reiterated 2024 guidance Back-end loaded growth trajectory € million 2023 2024 FCF 2024 2,308 >10% growth FCF CAGR 23-26 807 457 >10% growth 358 866 1,030 205 (9) (41) Q1 Q2 Q3 9M FY • FCF acceleration, x4.2 q-o-q, +89.5% y-o-y in Q3 and +27.7% in 9M • Natural BRL hedging proves FC
Slide 18: Solid balance sheet, contained costs and long average life
Solid balance sheet, contained costs and long average life Net Financial Debt -0.02x; -€0.5bn € million ND/EBITDAaL ND/EBITDAaL 2.78x 2.76x 29,240 (838) 327 96 (77) 28,748 Leverage reduction 2026: 2.2x-2.5x FCF Shareholder Net financial FX & Jun-24 Sep-24 including spectrum remuneration investments
Slide 19: Solid progress across the pillars of ESG
Solid progress across the pillars of ESG Environmental Social Governance • Decarbonise the economy, helped avoid • Advancing in diversity, 33.6% of executives • #1 in Reporting & Transparency, Reuters 69m tCO2 for B2C customers are women (37% target in 2027) Sustainability Awards 2024 • Reducing Sco
Slide 20: Key takeaways
Key takeaways Mr. Ángel Vilá COO ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 21: 2024 guidance confirmed despite FX depreciation in Q3
2024 guidance confirmed despite FX depreciation in Q3 2024 Guidance 9M 24 Revenue ~1% -0.3% Under guidance FX y-o-y reported assumptions, EBITDA 9M well within guidance y-o-y reported 1% to 2% +0.4% > 1% service revenue, > 1% EBITDA and EBITDAaL - CapEx >2% EBITDAaL-CapEx growth y-o-y reported 1% to
Slide 22: Maximising performance through focused execution
Maximising performance through focused execution 1 Solid business momentum, both commercial and operationally across Spain, Brazil and Germany 2 Strong FCF growth allowing reaffirmation of >10% ambition for both 2024 and 2023-26 3 Hedging strategy mitigates FCF exposure to currency fluctuations 4 Fo
Slide 23: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 7 November at 10:00 AM (CET), 9:00 AM (GMT), and 4:00 AM (EDT) Participants from Telefónica • Ángel Vilá l COO • Lutz Schüler l CEO Virgin Media O2 • Laura Abasolo l CFCO & Head Telefónica Hispam • Eduardo Navarro l
Slide 24: For further information, please contact
Climate A Bloomberg Member of DJSI 1st in sector 1st company worldwide in 2023 List 2023 GEI 2023 Europe 2022 Digital Inclusion Benchmark For further information, please contact: Investor Relations FOLLOW US: Adrián Zunzunegui (adrian.zunzunegui@telefonica.com) Isabel Beltrán (i.beltran@telefonica.c