Slide 1: Together We Are Unstoppable: Investor Factbook Q2 2021
TOGETHER WE ARE UNSTOPPABLE _INVESTOR = fm FACTBOOK Q2 2021
Slide 2: Postpaid phone net customer additions and churn
▪ Sequentially, the increase was primarily due to higher gross additions, along with lower churn. ▪ Year-over-year, the decrease was primarily due to elevated gross additions in the prior period related to the public and educational sector . The postpaid upgrade rate was approximately 4.7% in Q2 202
Slide 3: Postpaid phone churn chart
1.03% 0.98% 0.90% 0.87% 0.80%
Slide 4: Postpaid ARPU, accounts and ARPA
0.7% partially offset by higher premium services including Magenta MAX. ▪ Year-over-year, the increase was primarily due to an increase in and premium services including Magenta MAX, partially offset by promotional activity. Postpaid phone ARPU was $47.61 in Q2 2021, up from $47.30 in Q1 2021 and do
Slide 5: Postpaid Accounts and Postpaid ARPA
$133.03 $133.08 $132.91 $133.55 $130.57 25,486 25,623 25,754 26,014 26,363 Postpaid Accounts Postpaid ARPA.
Slide 6: Prepaid net customer additions and churn
ncrease in premium services Prepaid net customer additions were 76 thousand in Q2 2021, compared to net additions of 151 thousand in Q1 2021 and net additions of 133 thousand in Q2 2020. ▪ Sequentially, the decrease was primarily due to lower gross additions, partially offset by lower churn. ▪ Year-
Slide 7: Total Net Customer Additions and Total Customers
98,327 1,245 100,362 102,064 103,437 2,035 1,702 1,361 104,789 1,352 Total Net Customer Additions Total Customers
Slide 8: Service and equipment revenues
2% $14.2 billion in Q1 2021 and up 10% from $13.2 billion in Q2 2020. ▪ ▪ ▪ ▪ Year-over-year, primarily due to: ▪ Equipment sales: An increase in the number of devices sold average revenue per device sold driven by an increase in the high-end device mix. ▪ Service revenues were $14.5 billion in Q2 2
Slide 9: Equipment revenues chart
$5,973 $5,346 $5,215 $1,041 $914 $4,269 $4,728 $4,305 $4,301 1,421 , $3,603 $2,848 Equipment sales I _sLease revenues
Slide 10: Cost of services and cost of equipment sales
tization (D&A), was $3.5 billion in Q2 2021, up 3% from $3.4 billion in Q1 2021 and up 13% from $3.1 billion in Q2 2020. ▪ Sequentially and year-over-year, the increase was primarily due to higher Merger-related costs and increased site costs related to network integration and the continued build-ou
Slide 11: Cost of equipment sales chart
$5,825 $5,453 $5,142 $4,367 $3,667
Slide 12: SG&A expense and D&A
as $4.8 billion i ▪ 2021 and in Q2 2020. ▪ e $251 million i ▪ sequentially and decreased 260 basis points year-over-year. ▪ Tot The prior year period included $125 million of incremental bad debt for the estimated macro-economic impacts of COVID-19. D&A w $897 million i ▪ Selling, general and admini
Slide 13: SG&A expense chart
g4oea $4,150 $4,219 $4,289 gy 977 $946 fm $1,000 $982 $842 $3,118 $3,150 $3,237 $3392 3,935 23.6% 22.3% 22.8% 23.9% 22.3% O e O- =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
▪ es and lower D&A, partially offset by higher Merger-related costs, higher Cost of equipment sales and . es, higher Equipment revenues and lower SG&A, partially offset by higher Cost of equipment sales and . Net income was $978 million in Q2 2021, up 5% from $933 million in Q1 2021 and up 789% from
Slide 16: Core Adjusted EBITDA
es and lower SG&A expense, excluding Merger-related costs, partially offset by higher Cost of equipment sales. Core Adjusted EBITDA was $6.0 billion in Q2 2021, up 2% from $5.9 billion in Q1 2021 and up 7% from $5.6 billion in Q2 2020. ▪ Sequentially, the increase was primarily due to higher Service
Slide 17: Core Adjusted EBITDA chart
3,661 _93,779 $3,474 $2,772 $777
Slide 18: Cash flow, capex and free cash flow
▪ 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 higher Net cash provided by operating activities, partially offset by higher cash purchases of
Slide 19: Free cash flow chart
$1,671 $1,441 $1,304 $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 3.0x at the end of Q2 2021 compared to 3.1x at the end of Q1 2021. ▪ The ratio of net debt, excluding tower obligations, to Pro Forma Adjusted EBITDA for the LTM peri
Slide 21: 5G Coverage: well ahead in our 5G leadership
‘F Mobile 5G Coverage MORE 5G geographic coverage than Verizon and AT&T combined Current Mid-Band Holdings after Clearance, 2024+ National Averages 292 i C-Band/CBRS 2.5 GHz and below 244 171 ‘E Mobile verizon’ S arer Well Ahead in Our 5G Leadership RANGE OG 305M POPs 1.7M iveetce mites urTRA 5G Mid
Slide 22: America's largest, fastest and most reliable 5G network
America’s largest, fastest and most reliable 5G network LARGEST Ookla, a leader in mobile network testing and data analysis, confirms T-Mobile’s 5G network covers 92% of all Interstate Highway miles across America compared to 68% for AT&T and 51% for Verizon. OOKLA FASTEST For the third time in a ro
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