Slide 1: Form 6-K Report of Foreign Private Issuer
Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of May, 2014 Commission File Number: 001-09531 Telefónica, S.A. (Translation of registrant’s na
Slide 2: Table of Contents
Table of Contents Telefónica, S.A. TABLE OF CONTENTS Sequential Page Item Number 1. Telefónica Group: Presentation on quarterly results January-March 2014 2
Slide 3: Results January-March 2014
Table of Contents Results January March 2014 Telefónica, S.A. Investor Relations Results January March 2014 Telefónica, S.A. Investor Relations
Slide 4: Disclaimer
Table of Contents the or revisions is include those Company. and Disclaimer neither estimates subject estimates acquisition risks negative investors, forward and those this to to,The regarding, uncertainties, these thereof and This and presentation strategy discussed looking and forward-looking thei
Slide 5: Q1 Highlights
Table of Contents €2.7Bn growth transformation: growth spectrum Q1 in 14 &of Q1 Highlights consistent 0.5% payments to €42.7Bn 2014 69% y-o-y, OIBDA •&of Solid guidance with (2.30x working totalbeginning strong stabilisation Speed-up ND/OIBDA), (Revenues: capital margin ofnetwork improvement the Org
Slide 6: Key financials
Table of Contents Key financials spectrum) rates, neutralised Relations mainly Telefónica, 2,561 at BRL, FCF Q1 (22.9%) 14 level ARG S.A. € inthrough and (10.6%) millions VEF lower Net drained Reported Income CapEx, y-o-y: Reported 692 Interest, Revenue: (23.2%) Organic Tax EPS -11.8 andy-o-y Minori
Slide 7: Free cash flow
Table of Contents optimisation Strongest Q1measures FCF since executed 2011, despite in Q1 14CapEx • Lower improve andspectrum FXsequentially FCF payments (€ in millions) as Q1 (+€607m) is traditionally FCF (ex• Savings spectrum) impacted on tax FCFpayments byabsolute seasonal (+€314m) change effect
Slide 8: Commercial momentum and customer growth
Table of Contents tariff Selective toOpportunity bundle Contract refreshment commercial Organic mixinimproved low Customer growth: prepaid approach; to ininsight 35% 2013 smartphone increasing (+1.3 excludes in each p.p. penetration market: customer the y-o-y) accesses New • value 5.6 • Progressive
Slide 9: Revenue and OIBDA performance
Table of Contents Revenue Spain centric increase Higher sales business network in &four y-o-y OIBDA quarters & Increased decline ITgrowing costs (+1.5% improving demand (+5.1% organically organic for y-o-y (-3.7 mobile y-o-y) Revenues organic) p.p. data q-o-q) Flattish related (non-SMS/data (organic
Slide 10: Network and IT transformation
Table of Contents Coverage Enhanced standardised TGR: track speeding 3G+4G and customer customer newup site major consolidation technological experience with oriented initiatives UBB •backhaul processes in LTE transformation EU ITdual-band transformation: & +Speed, Brazil Reutilisation capable Decom
Slide 11: Digital services
Table of Contents the 1st Digital payment Announcement open-source mobile Services Services: service advertising Accesses web(1) Advancing of desktop Yaap Desktop exchange Rhapsody brand to across Virtualisation offer platform forEvernote different the DVS(1) digital owned Service • P&S •Adding serv
Slide 12: Spain: Fusión and fiber
Table of Contents adds network 589 Spain: 60 in 64% “Fusión” “Fusión” (51) 291 Fiber 52% Unique (140)(127) 134 differentiation customers churn 47% & Q1assets new 2.9 13 lower Q3 (329) 3.2 mobile at driving 13 •than 701K 1.7 FTTH Pay Q4 35% tariffs standalone quality (x1.9 13 TVroll 26% Q1 FTTH • “Fu
Slide 13: Spain: financial performance
Table of Contents Continued Increasing (fiber, 13 (-13.0% Spain: TV,efficiency customer Revenue mobile) y-o-y) (9.8%) Handset improvement preference gains from (9.9%) upgrades for transformation trend (12.1%) premium +12% accelerates (11.9%) quality handset -1.6 Revenue +0.3 p.p. Q3 upgrades 13 Pers
Slide 14: UK
Table of Contents (7.3%) UK: quarters Mobile LTE y)Growing •remained (7.9%) “O2 expansion atService 1.1% Refresh” contract • Q1 broadly •Revenues through Strong OIBDA impact customer stable adoption network up (y-o-y) gradually 16.3% (-0.3% value sharing of MSR“O2 y-o-y 13% y-o-y normalising MSR Ref
Slide 15: Germany
Table of Contents Stabilising Germany: Investor and o-y) packages weakened Revenues Relations Investing MSR Newprepaid performance MSR Premium Telefónica, in opportunities ex-MTR dynamics tariff q-o-q S.A. Q1 & •continued Best 13 •Sequential around Revenue Q4positioned 13LTE attractive Q1 pressure l
Slide 16: Brazil: commercial performance
Table of Contents Brazil: Superior Investor Prepaid 32%Reinforcing (+6 networks Relations Fixed p.p. y-o-y) Services and Telefónica, leadership lower Smartphone Netcomplaints, Adds in S.A. high Outperforming penetration: (‘000) value towards (Fixed customers 236kdoubling telephony, aalready in more
Slide 17: Brazil: financial performance
Table of Contents (0.9%) Limited Consistent Brazil: y-o-y(3.4%) Solid OIBDA organic revenue financial (8.margin on Q1growth strong 1%) performance erosion 13 data • Total Q4growth y-o-y 13revenues Revenue Q1• (+20.7%) Strong 14 OIBDA up(organic 0.2% commercial boosted Margin organic y-o-y) by(y-o-y)
Slide 18: Hispam
Table of Contents y) Chile, Hispam: ex-Venezuela Non-SMS sources the Revenue Colombia countries Strong • Strong y-o-y Data OIBDA contributing revenue and FBB growth increase Peru & margin &New •improved OIBDA Record-high across to organic services growth services growth by •y-o-y 12 Q1 Increased mob
Slide 19: Hispam: consolidating growth (I)
Table of Contents breakdown Revenues (+8% 59.0% Hispam: 4.1% vs50.4% •& 22.9% (organic Higher OIBDA Consolidating 31.1% 1.5% OIBDA y-o-y) (organic 4.8% 11.5% Revenue margin growth 11.0% y-o-y) 17.4%(+1.5 across 18.5% breakdown Revenues 13.8% p.p. the 2.3% 3.7% y-o-y) board &(organic activity (0.4%)
Slide 20: Hispam: consolidating growth (II)
Table of Contents 39.5% regulatory 45% o-y) commercial (organic Hispam: Voice 33% 10.1%y-o-y) framework 24% Traffic Consolidating 8.7% • Volume 17.5% Revenues 30.7% & Mobile to18.5% driven positively 39.4% growth &Gross 17% OIBDA growth; 8.4% across •17% Adds Q1(organic (0.1%) voice revenue 13% the
Slide 21: Net debt evolution
Table of Contents Debt 46,491 Ongoing devaluation Debt (339) net implicit debt 643 Investments (2,306) reduction Dec-1345,381 after & events leverage Share 1,110 2,561 &(1,750) improvement Net (688) Republic minorities 210 1,872 (780) Net (1,020) Others &(225) Financial ex-spectrum (170) retirements
Slide 22: Liquidity and debt maturities
Table of Contents Broad 5.34% mainly financing 3.0in5% €lines and 1.75 while CZK &0.5 6.3 maintaining 0.4 (lower syndicated 0.2 Syndicated costample than RCFaverage) Cash liquidity Hybrids 90%and Long T.LT Deutschland the 3.1 term cost excluding financing: of keeping Private Cash well hedging LatAm
Slide 23: Conclusion
Table of Contents organic strength Conclusion OIBDA of mobile • Solid growth data earnings Maximising revenues momentum and value Hispam, •from Increasing while scale Spain and value efficiency accelerates of our customer measures recovery base transformation • •High Improving debt profitability red
Slide 24: 2014 guidance
Table of Contents considers consolidation. CapEx Guidanceconstant excludes criteria OIBDA perimeter spectrum 2014:level 2014 of acquisition. guidance consolidation. guidancefor Organic in2014 organic In OIBDA excludes growth: termsand Assumes write-offs, assumes OI terms, constant capital excludes e
Slide 25: Signatures
Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Telefónica, S.A. Date: May 9, 2014 By: /s/ Miguel Escrig Meliá Name: Miguel Escrig Me