Slide 1: Results January - June
ryt) _. Me Telefonica RESULTS January - June
Slide 2: Disclaimer
Disclaimer This document and any related conference call or webcast (including any related Q&A session) may contain forward-looking statements and information (hereinafter, the “Statements”) relating to the Telefónica Group (hereinafter, the "Company" or "Telefónica"). These Statements may include f
Slide 3: Key takeaways
Key takeaways Mr. José María Álvarez-Pallete Chairman & CEO
Slide 4: Growth trend restored; 30% net debt reduction
Growth trend restored; 30% net debt reduction Q2 21 highlights Revenues OIBDA All-time record net Material net debt Gaining scale y-o-y org y-o-y org income reduction +4.8 p.p. vs. Q1 +3.0 p.p. vs Q1 €1.37 EPS Organic & Inorganic Including VMED O2 JV accesses +3.4% y-o-y +3.3% y-o-y €7,743m €26.2bn1
Slide 5: Financial performance
Financial performance H1 21 Q2 21 Reported Organic Reported Organic € in millions Reported Reported y-o-y y-o-y y-o-y y-o-y Revenues 20,305 (6.5%) 0.9% 9,964 (3.6%) 3.4% Reported figures affected by capital OIBDA 16,886 138.7% 1.7% 13,469 n.s. 3.3% gains and changes in consolidation perimeter; VMED
Slide 6: Upgrading Revenues & OIBDA guidance
Upgrading Revenues & OIBDA guidance 2021 guidance perimeter updated; Telxius Towers and UK JV deconsolidated as of 1 June and Costa Rica as of 1 August Initial 2021 Upgraded 2021 Financial Targets H1 21 guidance guidance Revenues (y-o-y organic) “Stabilisation” “Stable to slight growth” 0.9% OIBDA (
Slide 7: Significant progress to achieve ESG objectives
Significant progress to achieve ESG objectives Our activities are aligned with the UN’s Sustainable Development Goals HELPING SOCIETY TO THRIVE LEADING BY EXAMPLE Economic and social development based on Building trust capital with our customers, employees, digitalisation suppliers and shareholders
Slide 8: Q2 Results
Q2 21 Results Mr. Ángel Vilá COO
Slide 9: Spain | Back to revenue growth in a more rational market
Spain | Back to revenue growth in a more rational market Net adds ● Net adds improvement throughout Q2, record NPS Accesses (m) ▪ Signs of a more rational market ▪ Positive net gain in FBB (June) FBB Postpaid Convergent Churn ▪ NPS (33) +2 p.p. vs Q1 1.6% ● Sequential improvement in Revenue and OIBD
Slide 10: Germany | Accelerating commercial performance
Germany | Accelerating commercial performance Operational KPIs Key milestones Q1 21 Q2 21 ● Improved commercial activity; lockdown restrictions gradually eased ● 5G network active in >80 cities Net additions (k) ARPU y-o-y 374 ● Strong results in Opensignal and Speedcheck mobile network tests, 0.6%
Slide 11: UK | JV completed, continued commercial traction
UK | JV completed, continued commercial traction Operational KPIs Operational highlights Accesses, m (y-o-y) ● Regulatory approval received without remedies Contract churn ● JV closed 1st June, integration moving at pace +7% 0.9% in Q2 ● £540m run rate synergies by mid-2026 confirmed (NPV £6.2bn) 54
Slide 12: UK | Network upgrade to full fibre
UK | Network upgrade to full fibre • Window of opportunity for the UK’s largest UBB network; low UK fibre penetration, supportive regulatory framework and increased UBB demand • Upgrading 14.3m cable premises to full fibre to complement existing 1.2m FTTP • Upgrade to start in 2021, expected to be c
Slide 13: Brazil | Unique value proposition; revenue & OIBDA growth
Brazil | Unique value proposition; revenue & OIBDA growth Operational KPIs Key milestones Accesses (y-o-y) ● Unrivalled quality of service paying off ● Reinforced mobile leadership (33.4% MS; +0.4 p.p. y-o-y) 41% ▪ Consistent and strong net adds in contract & prepaid ▪ Contract churn under control (
Slide 14: Infra | Fibre vehicles well on track, growth ahead
Infra | Fibre vehicles well on track, growth ahead UGG FiBrasil InfraCo InfraCo • 50% Allianz / 50% TEF • 50% CDPQ / 50% TEF • 60% KKR/ 40% T.CHL1 • 60% KKR/ 40% T.COL1 (40% T. Infra / 10% T.DE) (25% T. Infra / 25% T.BR) ▪ 2m brownfield PPs from T. ▪ c.1.2m brownfield PPs from ▪ c.50,000 km fibre ▪
Slide 15: Tech | Growth acceleration, increased scale
Tech | Growth acceleration, increased scale T. Tech revenue Delivering on strategic goals €M; y-o-y ● Sequential revenue acceleration 26.6% ● Reinforced capabilities and revenue mix (value added services) 25.1% ▪ ACENS and Altostratus (cloud professional services) added in Q2 203 166 ▪ Cancom UK acq
Slide 16: Q2 Results
Q2 21 Results Ms. Laura Abasolo CFCDO & Head of T. Hispam
Slide 17: Hispam | Accelerating growth while modulating exposure
Hispam | Accelerating growth while modulating exposure Operational KPIs Key milestones Accesses (y-o-y) ● Asset-light model ▪ InfraCo in CHL launched, announced InfraCo in COL (Jul-21) 71% ▪ 11.0m FTTH PPs (+1.8m in LTM) 8% 28% ▪ 40% FTTH deployment in LTM through ATC & ATP partnerships 4% ● Acceler
Slide 18: Significant debt reduction on inorganic deals completion
Significant debt reduction on inorganic deals completion Net Financial Debt €m -€9.4bn ND/OIBDAaL ND/OIBDAaL 2.79x 2.57x 35,228 (910) (211) 620 466 (12,071) 26.2bn 25.8bn 29 23,152 Dec-20 FCF Hybrids Shareholder Pre-retirement Net financial FX & Jun-21 Post estimated Post estimated remun. (incl. com
Slide 19: Conclusion
Conclusion Mr. José María Álvarez-Pallete Chairman & CEO
Slide 20: Wrap up
Wrap up Material progress against strategic priorities • Completed two significant steps in long-term strategy: VMED O2 UK JV and sale of Telxius towers portfolio • Reinforced path to sustainable, profitable growth • Continued progress in building a connected and greener future by facilitating digit
Slide 21: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 29th July at 10:00 AM (CET), 9:00 AM (BST), and 4:00 AM (EST) Participants from Telefónica: José María Álvarez-Pallete (Chairman & CEO), Ángel Vilá (COO), Laura Abasolo (CFCDO & Head of T. Hispam), Eduardo Navarro (C
Slide 22: For further information: Investor Relations
For further information, please contact: Investor Relations FOLLOW US: Adrián Zunzunegui (adrian.zunzunegui@telefonica.com) Isabel Beltrán (i.beltran@telefonica.com) Torsten Achtmann (torsten.achtmann@telefonica.com) Tel. +34 91 482 87 00 ir@telefonica.com www.telefonica.com/investors