Slide 1: Results January - September 2021
RESULTS January - September 2021
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: Q3 21 Results
Q3 21 Results Mr. Ángel Vilá COO
Slide 4: Higher growth, smart capital allocation, further de-leveraging
Higher growth, smart capital allocation, further de-leveraging Q3 21 highlights Revenues OIBDA EPS Further net debt Commercial y-o-y org y-o-y org y-o-y reduction momentum Sequential acceleration Consistent growth Net income €706m Streamlined net debt Including VMO2 accesses, ex-C.Rica +3.6% +1.6% €
Slide 5: Financial summary
Financial summary 9M 21 Q3 21 Reported Organic Reported Organic € in millions Reported Reported y-o-y y-o-y y-o-y y-o-y Revenues 29,603 (8.0%) 1.7% 9,298 (11.1%) 3.6% Reported figures affected by capital OIBDA 20,620 111.6% 1.7% 3,734 39.8% 1.6% gains and changes in perimeter OIBDA Underlying 9,797
Slide 6: Guidance and dividend confirmed
Guidance and dividend confirmed 2021 guidance Telxius Towers and T. UK deconsolidated as of 1 June and Costa Rica as of 1 August Financial Targets 2021 Guidance 9M 21 Revenues (y-o-y organic) “Stable to slight growth” 1.7% (upgraded in H1 from “stabilisation”) OIBDA (y-o-y organic) “Stable to slight
Slide 7: Fully committed to ESG
Fully committed to ESG Strategy aligned with the UN SDGs “E”: ENVIRONMENTAL “S”: SOCIAL BUILDING A GREENER FUTURE HELPING SOCIETY TO THRIVE Through digitalisation we contribute to a more sustainable, Economic and social development facilitated by circular, and decarbonised world digitalisation • New
Slide 8: Spain | Ongoing recovery, strong cash generation preserved
Spain | Ongoing recovery, strong cash generation preserved Net adds & Convergent KPIs Key milestones Accesses (m) Q2 21 Q3 21 ● Sequential improvement in all accesses’ trend ARPU ● Convergent ARPU +2.5% q-o-q, improved customer mix ● Sustained focus on revenue share Fibre Postpaid € 89.6 € 87.4 • In
Slide 9: Germany | Strong commercial and financial performance
Germany | Strong commercial and financial performance Operational KPIs Key milestones Q2 21 Q3 21 ● Strong commercial traction; driven by O2 free portfolio Net additions (k) ARPU y-o-y • ‘Willkommen im sehr guten Netz von O2’ marketing campaign promoting equalised mobile network quality 415 ● Fixed
Slide 10: UK | Strong commercial momentum, integrating at pace
UK | Strong commercial momentum, integrating at pace Operational KPIs Key milestones Accesses, m (y-o-y) ● Integration on track, combining capabilities by launching Volt in O2 contract churn October, the first VMO2 consumer and SoHo converged product +5% 0.9% in Q3 ● Strong commercial focus and trac
Slide 11: Brazil | Strongest service revenue growth in 6 years
Brazil | Strongest service revenue growth in 6 years Operational KPIs Key milestones Net adds (k) Q2 21 Q3 21 y-o-y ● Vivo again confirms its leadership • 33.0% MS in mobile; 36.8% MS in postpaid; 28.8% MS in prepaid +57% ● Strong mobile momentum, digital services gaining relevance 697 590 • Enlargi
Slide 12: Tech | High growth and increasing scale
Tech | High growth and increasing scale T. Tech revenue Improved business profile €M; y-o-y 25.5% ● Increased scale, enhanced capabilities and revenue mix (VAS) with 24.9% the addition of T. Tech UK&I (formerly CANCOM UK&I) 598 ● Annualised1 revenue base of c. €1bn ● Unique assets & premium partners
Slide 13: Infra | Growth and optionality ahead
Infra | Growth and optionality ahead UGG FiBrasil InfraCo InfraCo • 50% Allianz / 50% TEF • 50% CDPQ / 50% TEF • 60% KKR/ 40% T.CHL • 60% KKR/ 40% T.COL (40% T. Infra / 10% T.DE) (25% T. Infra / 25% T.BR) • Commercial brand launched: • Closing expected in Q1 22E • Rollout and commercialisation ON*NE
Slide 14: Q3 21 Results
Q3 21 Results Ms. Laura Abasolo CFCO & Head T. Hispam
Slide 15: Hispam | Renewed strategy bears fruit
Hispam | Renewed strategy bears fruit Operational KPIs Key milestones Net additions (k) Q2 21 Q3 21 ● Accelerating value growth y-o-y • FTTH connections +26% y-o-y • 11.7m FTTH PPs (+2.1m in LTM) +55% • Further to come thanks to COL & CHL fibre vehicles 488 (2%) • Contract accesses +9% 395 ● Speedin
Slide 16: Significant debt reduction on deals completion
Significant debt reduction on deals completion Net Financial Debt €m -€9.6bn ND/OIBDAaL ND/OIBDAaL 2.79x 2.49x (1,470) 35 929 (13,157) 35,228 657 25.0bn 25.6bn (256) 21,965 Dec-20 FCF Hybrids Shareholder Pre-retirement Net financial FX & Sep-21 remun. (incl. commitments investments Others Post estim
Slide 17: Final Remarks
Final Remarks Mr. Ángel Vilá COO
Slide 18: Wrap up | Sustainable long-term strategy
Wrap up | Sustainable long-term strategy Strategic focus on sustainable, profitable growth • Portfolio simplification to continue with reduced exposure to Hispam, further de-leveraging and execution of transactions to crystallise value • Leveraging attractive fibre opportunities and unlocking value
Slide 19: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 4th November at 10:00 AM (CET), 9:00 AM (GMT), and 5:00 AM (EST) Participants from Telefónica: Ángel Vilá (COO), Laura Abasolo (CFCO & Head T. Hispam), Eduardo Navarro (Chief Corporate Affairs & Sustainability Office
Slide 20: For further information, please contact: 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