Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Day (November 2025)
64 slides from Telefonica Sa's investor day presentation, Nov 4, 2025
Slide 1: Capital Markets Day 2025 Strategic Plan
°° Telefonica i. 4 Ales DAY | 2025 STRATEGIC PLAN CAPITAL MARKETS DAY PRESENTATION November 4th, '25
Slide 2: Disclaimer
Disclaimer This document and any related conference call or webcast (including any related Q&A session) has been prepared by Telefénica, S.A ("Telefénica’ or the “Company”, and together with its subsidiaries the “Telefénica Group’) exclusively for its use during the presentation of the Capital Marke
Slide 3: Capital Markets Day 2025
3° Telefonica CAPITAL MARKETS DAY | 2025
Slide 4: Chairman's impressions (1/4)
Chairman's impressions (1/4) Telefonica is a wonderful company with great opportunities ahead. The Company has very strong and hard to replicate assets and capabilities. The Company also has various specific areas of improvement, these can be addressed in a relatively short timeframe. The Telefonica
Slide 5: Chairman's impressions (2/4)
Chairman's impressions (2/4) Four . We lead in two of our core markets Experts in with robust, advanced infrastructure Pioneers in Highly Deep in most areas Strong : pride and sense of belonging war now 5 °° Telefonica
Slide 6: Chairman's impressions (3/4)
Chairman's impressions (3/4) Divergence between and business context Aversion to make tough High organizational and operational Limited financial Slow Excessive Some intrinsically war now 6 °° Telefonica
Slide 7: Chairman's impressions (4/4)
Chairman's impressions (4/4) | have asked the team to help me build a Strategic Plan that captures the real market opportunities we have ahead of us. A plan that also reduces complexity, improves financial flexibility, balances short- and long-term decisions, creates measurable efficiencies and make
Slide 8: Strategic Plan '26-'30
°° Telefonica ae 8 He DAY | 2025 Strategic Plan '26-'30
Slide 9: Shaping the industry
shaping the industry CONTINUED GEOPOLITICAL TECHNOLOGY GLOBAL POLARIZATION DISRUPTION UNCERTAINTY ua now 9 S7 Telefonica
Slide 10: Shaping the industry
shaping the industry STAGNANT EUROPE IS THE DEMANDING ASSET CARVE OUT TELCOS TO PLAY A ROLE COMMUNICATIONS WORLD'S CUSTOMERS DECELERATING IN CYBERDEFENCE IN MARKET EXCEPTION EUROPE Revenue CAGR'24~28 Players in US & China (Of European customers Change in # of Tower ‘Annual revenue opportuni in Europ
Slide 11: Shaping the industry
shaping the industry USA AND CHINA NO EUROPEAN DIGITAL SERVICES GROWING CONCERNS WIDENED TECHNOLOGY TITANS CONTINUE TO GROW OF CYBER WARFARE TECHNOLOGY GAP WITH EUROPE Investment to close gap European companies among Revenue CAGR '24-'30 wath USendChine TopiOwcipayesbymaetcap fl nDgbalsoview Gee che
Slide 12: Main industry takeaways
Main European consolidation is likely to happen, timing is uncertain Sb Increased EU investment in technology 3 Customer experience as key differentiator 18fo Telcos to maintain end-to-end industrial control over assets and core infrastructure 5 Al will transform processes and networks earow 2 “P Te
Slide 13: Our mission
OUR MISSION Deliver the best digital experience to our customers eco ran Uebel $ Telefonica
Slide 14: Our vision
OUR VISION Become a world-class European Telco with profitable scale eco pet gd Lea $ Telefonica
Slide 15: To become a world-class European Telco with profitable scale
To become a world-class European Telco with profitable scale STRATEGIC PLAN '26-'30 UPSIDE TO STRATEGIC PLAN '26-'30 Slt . More efficient investment in Momeei else l LN 6a Ces Europe to close the technology gap with US and China Operating model Talent war now 6 °° Telefonica
Slide 16: To become a world-class European Telco with profitable scale
To become a world-class European Telco with profitable scale STRATEGIC PLAN '26-'30 UPSIDE TO STRATEGIC PLAN '26-'30 BEST-IN-CLASS EUROPEAN TELCO q Pe \ More efficient investment in ane Surety mer COS | Europe to close the technology gap echnological capabilities with US and China Operating model Ta
Slide 17: Six pillars to become a best-in-class European Telco
Six TRANSFORM. & GROW to become a ‘best-in-class European Telco’ DELIVER BEST-IN- CLASS CUSTOMER EXPERIENCE EXPAND B2C OFFERING EVOLVE TECHNOLOGICAL CAPABILITIES SIMPLIFY TELEFONICA'S OPERATING MODEL DEVELOP TALENT V7 SCALE B2B 7 Telefonica
Slide 18: Transform & Grow: customer experience, B2C and B2B
TRANSFORM & GROW DELIVER BEST-IN-CLASS to become a ‘best-in-class European Telco’ UG YORER ESC ERIENGE! EXPAND B2C OFFERING SCALE B2B Improve customer NPS * Accelerate convergence | Modernise Comms Reduce churn Grow ecosystem products * Expand Digital Services and double down on Cyber ‘Average NPSim
Slide 19: Six pillars: technology, operating model, talent
Six st to become a ‘best-in-class European Telco’ EVOLVE TECHNOLOGICAL CAPABILITIES Grant competitive access to infra Advance network evolution Cumulative Network & IT “Target Network Automation Level Deploy Al in operations and processes TotEx invested 26-28 in ES, BR & DE by 28 Ensure focused prod
Slide 20: To become a world-class European Telco with profitable scale
To become a world-class European Telco with profitable scale STRATEGIC PLAN '26-'30 UPSIDE TO STRATEGIC PLAN '26-'30 CONSOLIDATION More efficient investment in Taoeseae tole Cop Europe to close the technology gap Gparating Rodel with US and China Talent TRANSFORM °3° Telefénica & GROW 20
Slide 21: European telco market remains fragmented, subscale and inefficient
s Telco market remains fragmented, therefore subscale and inefficient . » off Population 340M i 593M '24 Avg. mobile 2 ee CapEx per MNO? 11.3 BE 0.7 BE 67BE ¢ '24 5G standalone availability 24% 2% 1% 1. Operators = National Mobile Network Operators (MNO), accounting for >97% of mobile revenues 2. Av
Slide 22: Europe needs to close its technological dependency gaps
J close its technological dependency gaps EU shows critical dependency in key tech stack components... .. that Telcos could help address fs —S EU TECHNOLOGICAL DEPENDENCY OVERVIEW SELECTED TECH STACKS WHERE TELCOS PLAY A ROLE APPLICATIONS AND SOFTWARE (mae >) | cyBeRsEcuRiTy TELCO ==> oe a a stad DD
Slide 23: Potential new regulatory framework
Potential new What has changed + New US-EU distancing + Acceptance of the reports: Need for Operators © © [Market] fragmentation makes the fixed costs of investing in networks relatively more onerous for EU operators than for continent-scale companies in the US or China. Fragmentation also makes it
Slide 24: Consolidation within Telefónica's footprint
within Telefénica's footprint Strategic flexibility: pragmatic approach towards portfolio rotation 1 8 Be Benefits for buyers and sellers, customers, and investments & According to broker innovation research analysts and industry experts Consolidation synergies from selected Telefénica-led potential
Slide 25: Transform & Grow 2026-2035
TRANSFORM & GROW 2026 TRANSFORM & GROW 2030 SCALE 2035 2028 Deliver best-in-class customer experience | Deliver world-class customer experience Expand B2C offering Develop fully softwarized B2C & B2B Scale B2B || offering | Evolve technological capabilities | Al agents of agents across the business
Slide 26: Strategic Plan '26-'30: World-class European Telco
me Telefonica ae 5 vere DAY | 2025 ptrataae Plan '26-'30 i lass European Telco
Slide 27: Telefónica structure: Operating Businesses, Global Units, Corporate Centre
6ee@ ~ § Telefonica Operating Businesses TRANSFORM & GROW Global Business Units Corporate Centre eco xs gs Lea 27 $ Telefonica
Slide 28: Telefónica's core markets
Telefonica's core markets TRANSFORM & GROW Fifth telco market in Europe, with highly developed convergence and network infrastructure © Largest market in LatAm, with high growth and three national mobile players 28 Largest telco market in Europe with untapped opportunity in fibre a8 Second telco mar
Slide 29: Core market target model
Core market target model fixed and mobile strategy (mobile; fixed; content) and operations war now 29 7 Telefonica
Slide 30: Spain: sustain leadership with differentiated and efficient operations
aw Sustain leadership with differe! and efficient operations “| DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 SCALE B28 2 of services * Maintain premium content position * Grow B2B by and ¢ on * Grow presence in Defence sector prov of key customer touchpoints + Create hyper-personalised, digital custo
Slide 31: Brazil: superior growth, premium positioning and infrastructure leadership
© vivok Maintain superior growth, premium positioning and infrastructure leadership DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE EXPAND B2C OFFERING SCALE B2B in mobile and Develop and push Expand fixed Increase to Grow Ecosystem with Smart Home, fintech, Grow modern comms solutions >90% health and ele
Slide 32: Germany: credible challenger in convergence and B2B
w OA, Become a credible challenger in convergence and B2B DELIVER BEST-IN-CLASS [ GUAT CHER EE PERIENCE 9) EXPAND B2C OFFERING 3 SCALE B2B + Strengthen our #2 position in network + Push Fixed Broadband and convergence + Develop robust attacker go-to-market quality + Strengthen B2P partnerships + Str
Slide 33: UK: premium convergence champion
ae @O) Become the premium convergence c households DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B » Accelerate B2B leveraging 02-Daisy integration » In wholesale, develop fibre business » Remain partner of choice for wholesale mobile c.70 ME Yearly OpCF synergies from O2
Slide 34: Global Business Units optimized and simplified
Global ..to be optimized and simplified TRANSFORM & GROW Telefonica Tech Telefonica Global Solutions Telefonica Infra TELXIUS ° Telefonica @ _ Innovacién Digital Our factory for and a growth lever Strengthen capabilities in telco-related Digital Services Double down on Cyber Services Optimize local
Slide 35: Group Corporate Centre role
Group defines how Telefénica's units work together to focus on in-market growth opportunities loba i to serve the Operating Businesses as catalysts for growth and efficiency < to focus on Telefonica's critical functions, é strategic guidance & control Group Reduction in OpEx (related to 25% operatin
Slide 36: Transform & Grow: efficiencies run-rate by lever
Transform & Grow: "25 - '28 Tote gross yearly run-rate by lever @constant 25FX (B€) @constant 25FX (BE) —_——ae | ‘26 ‘7 28 2 30 , ae a birch? Oras + Network OpEx optimization + Alin customer sovice + Energy cost optimization + 088/88 transformation + Virtualization & open architectures 25 "28 TotEx
Slide 37: Transform & Grow: incremental revenues by growth lever
Transform & Grow: Incremental A L Operating Revenues @constant 25FX (B€) 25 Comms Non-Comms Comms Digital services Wholesale, as CN ON| ON | Ci, GZNTGONE ees CONVERGENCE _ SERVICE ECOSYSTEM FIBRE: CYBER Lou | ‘BaP Main levers SxCELLENCE of growth f ¢ f ¢ V4 f ¢ one voor | oerence movsrav40 por esate
Slide 38: Best-in-class execution
Best-in-class GROWTH SIMPLIFICATION EFFICIENCY EXECUTION TRANSFORM eee rey & GROW 38 Telefonica
Slide 39: Financial Guidance
me Telefonica ae 5 vere DAY | 2025 Strategic Plan '26-'30 Finar % Guidance
Slide 40: Transform & Grow financial targets
TRANSFORM & GROW @ constant 25FX, @ constant perimeter! 2026 TRANSFORM & GROW 2030 2028 EOIMCS 1.5-2.5% CAGR '25-'28 | 2.5-3.5% CAGR '28-'30 Adj. EBITDA? = 15-25% CAGR '25-'28 | 2.5-3.5% CAGR '28-'30 Down to ~12% in '26- CapEx / Revenues 28 Down to ~11% in '30 Adj.OpCFal?- = 1.5-2.5% CAGR '25-'28 |
Slide 41: Growth based on specific levers across pillars
ui on specific levers across 6 pillars @ constant 25FX, @ constant perimeter! te / Revenue Adj. EBITDA? Adj. OPCFaL? 1.5-2.5% cacn 25-28 = resi] | = Bg —_ "25 B2C = BZB- Wholesale. ‘28, "25 Revenues Direct Restof ‘28 "25 EBITDA CapEx CapEx CapExiT Leases ‘28 ‘& Other Costs*# = OpExt> Mobile Fixed &
Slide 42: Capital allocation based on de-risked FCF
TRANSFORM. & GROW 1 based on de-risked FCF and disciplined capital allocation DE-RISKED FCF +More predictable perimeter with better currency mix + Embedded structural efficiencies + Appropriate CapEx / Revenues to deliver growth * Not including consolidation or M&A 42 ANCHORED INVESTMENT GRADE AND A
Slide 43: FCF base for guidance
FCF base for guidance + Including continued operations! + Including hybrids as financial payments + Excluding non-recurring spectrum + Excluding employee commitments * Excluding UK dividends 1. It excludes Ecuador (already accounted as discontinued operation) and Colombia. TRANSFORM & GROW FCF base
Slide 44: Anchored investment grade and appropriate balance sheet
2 and appropriate Balance Sheet Target leverage (Net debt / EBITDAaL) 25 YTD! ‘28 1.As of September 30th, 2025 ae Row 44 °° Telefonica
Slide 45: Debt maturity profile and liquidity position
TRANSFORM & GROW Debt maturity profile, BE 10.5 yrs average debt life 74 45 44 ‘Cash &cash Other current equivalents Liquidity position, BE financial assets Synd. Credit facilities Undrawn credit ines 64 Total liquiaity and appropriate Balance Sheet °° Telefonica
Slide 46: Dividend policy
Dividend policy is an integral part of our Capital Allocation strategy and will be the outcome of Telefonica's Free Cash Flow after investing in the company's future and ensuring the right financial leverage. TARGET DPS '25 DPS!'26 REMUNERATION! 0.30€ |*| 0.15€ || 40-60% of FCF base for dividend? 1.
Slide 47: Value accretive M&A framework
TRANSFORM. & GROW framework VALUE ACCRETIVE TRANSACTIONS BALANCE SHEET DISCIPLINE STRATEGIC FLEXIBILITY In core markets In telco core competencies Cost & Network accountable synergies Appropriate terms & remedies Completion of exit from HispAm Investment Grade as an axiom Different ways to play cons
Slide 48: Mid-term and long-term guidance
LONG-TERM ‘29 30 2.5-3.5% CAGR '28-'30 | 2.5-3.5% CAGR '28-'30 Down to ~11% in ‘30. 2.5-3.5% CAGR '28-'30 MID-TERM ‘26 ‘27 ‘28 Revenues oe @ constant '25FX 1.5-2.5% CAGR '25-'28 Adj. EBITDA’ " aR. @ constant '25FX 1.5-2.5% CAGR '25-'28 CapEx / Revenues me ee @ constant '25FX Down to ~12% '26-'28 Adj
Slide 49: Key financial messages
Key financial TRANSFORM & GROW DE-RISKED AND GROWING FCF INVESTMENT GRADE A MUST IMPROVED FINANCIAL FLEXIBILITY 49 REMUNERATION LINKED TO FCF
Slide 50: Closing: Strategic Plan '26-'30
me Telefonica CAPITAL MARKETS DAY | 2025 Sielan, 26-30
Slide 51: Chairman's closing message on the Strategic Plan
This Strategic Plan embodies the joint vision of the management team and the Board, and has been unanimously approved with the backing of our strategic shareholders. Transform & Grow is the plan Telefonica needs to capture the opportunities ahead, improve financial flexibility and generate sustainab
Slide 52: Appendix
nr Telefonica ner 5 Mas DAY | 2025 Appendix
Slide 53: Business pillars KPIs
Business pillars KPls DELIVER BEST-IN-CLASS EXPAND B2C CUSTOMER EXPERIENCE OFFERING 3 SRSA? 2028 2028 2030 2028 14% 076% 0.26% +6 NPS points +12 NPS points SeeeSeREOEy Wiepaw'a) | dame EO BEADED EpoM ID aie ‘nesoeuccoras ‘nesaetoer 30 3.4% 10.2% fe eepgemane pangs lst ve forse o eee ro) ; Ta% pane o
Slide 54: Transversal pillars KPIs
Transversal pillars KPls DELIVER BEST-IN-CLASS EXPAND B2C CUSTOMER EXPERIENCE OFFERING SCALE B2B EVOLVE Cumulative Network & IT TotEx 26-28 H ‘Cumulative Network & IT TotEx ‘26-30 TECHNOLOGICAL { CAPABILITIES ‘Target Network Automation Levelin ES, BR & DE by 28 i Target Network Automation Level in E
Slide 55: Key initiatives by strategic pillar: Spain
aw Key initiatives by strategic pillar } SCALE B2B 7) EXPAND B2C OFFERING | DELIVER BEST-IN-CLASS. CUSTOMER EXPERIENCE * Grow B2B by expanding Digital Services and + Improve experience of key customer * Grow Ecosystem of services touchpoints * Maintain premium content position double down on the Cyb
Slide 56: Key initiatives by strategic pillar: Brazil
© vivok Key initiatives by strategic pillar DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE EXPAND B2C OFFERING SCALE B2B Best network experience in mobile and fixed Develop and push convergence nationwide Expand offering and presence of Digital Increase digital customer interactions to Grow Ecosystem wit
Slide 57: Key initiatives by strategic pillar: Germany
ww O, Key initiatives by strategic pillar DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B + Strengthen our #2 position in network + Push Fixed Broadband and convergence + Develop robust attacker go-to-market quality * Strengthen B2P partnerships * Strengthen value proposi
Slide 58: Key initiatives by strategic pillar: UK
an @O) Key initiatives by strategic pillar DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B + Improve mobile network experience (deploy new spectrum, uplift capacity and complete * Accelerate premium convergence with refreshed commercial approach Accelerate B2B leveraging
Slide 59: B2C Ecosystem by core market
B2C Ecosystem by core market Health services Financial services ———————— Home services et Digital Services ———— -| Entertainment eet Devices SS TRANSFORM & GROW Health platforms FinTech Device and other insurances Alarms Smart Home Advertising Digital Protection Other digital products IPTV oTT Other
Slide 60: Telefónica Tech: Key Digital Services offering in '25
Vv CYBERSECURITY + Network Security + Cyber Consulting & Director Plans + Cyber Threat intelligence (NextDefense) + Detection & Response + Vulnerability Risk Mgmt. + Cloud Security + 1AM (Identity & Access Mgmt.) + OT/loT Security + Application & Data Protection &® cioup + Telefonica Tech Cloud Plat
Slide 61: AI initiatives by strategic pillar
Al initiatives by strategic pillar DELIVER BEST-IN-CLASS EXPAND B2C CUSTOMER EXPERIENCE OFFERING SCALE E22, * Consistent Al-powered CX through all channels (contact + Integrated of B2C catalogue and channels (e.g. New + Alembedded in all products and services (Telefénica Tech) centre, instore, writt
Slide 62: Transform & Grow: Efficiency Plan
Transform & Grow: Efficiency Plan Detailed initiatives by lever + Equipment renegotiation Embedded gross total efficiencies yearly run-rate by lever + Energy cost optimization @constant 25FX (B€) Technological & + Leases renegotiation Operational + Operations optimizations + Virtualization & open ar
Slide 63: Exchange rates used in Transform & Grow business plan
Exchange rates used in Transform & Grow November '25 business plan EXCHANGE RATES APPLIED TO P&L/FCF AND CAPEX' (average exchange rate for the period) Currency units per Euro 2028 2026 2027 2028 2029 2030 USA (US Dollar) 113 118 19 18 us 118 United Kingdom (Sterling) 0.86 0.88 0.89 0.88 0.88 087 Bra
Slide 64: Signature page
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: November 4, 2025 By: /s/ Pablo de Carvajal González Name: Pablo de Carvajal González Title: