At&t Inc. · NYSE:T
At&t — Investor Day (March 2022)
62 slides from At&t's investor day presentation, Mar 11, 2022
Slide 1: AT&T Analyst & Investor Conference
AT&T Analyst & Investor Conference March 11, 2022 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 2: Introduction
Introduction Amir Rozwadowski Senior Vice President , Finance & Investor Relations © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective o
Slide 3: Cautionary Language Concerning Forward-looking Statements
Cautionary Language Concerning Forward-looking Statements Information set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect futu
Slide 4: Our Vision Forward
Our Vision Forward John Stankey CEO © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 5: AT&T Delivered in 2021
More mobility postpaid phone net additions than in the past 10 years 1+ Million Fiber net additions for the fourth straight year AT&T Delivered 13+ Million in 2021 HBO Max and HBO additional subscribers* *See the appendix for further information. © 2022 AT&T Intellectual Property. AT&T and globe log
Slide 6: Today's Takeaways
Today’s Takeaways 1 2 3 4 Expanding Differentiated Reshaped Focused execution 5G and Fiber path cost structure and approach Serving customer Bringing value Improving our Driving returns and segments and setting in unique ways cash flows value creation us up for growth © 2022 AT&T Intellectual Proper
Slide 7: Dawn of a New Age of Connectivity
Dawn of a New Age of Connectivity © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 8: 5x increase in data on our network
5x increase Data on Our Network 2021-2025 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 9: Internet for all a reality
There has never been a better time…to make Internet for all a reality. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 10: Taking Our Performance To The Next Level
Taking Our Performance To The Next Level © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 11: AT&T is Well Positioned in Today's Evolving Macro Environment
AT&T is Well Positioned in Today’s Evolving Macro Environment © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 12: The AT&T Opportunity
The AT&T Opportunity Strong cash flows Dividend yield among best in Fortune 500 Increased financial flexibility Clear upside tied to expanding growth opportunities © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or
Slide 13: Today's Lineup
Today’s Lineup Network: Investing In Our Foundational Strength Jeff McElfresh, CEO, AT&T Communications Consumer: Disciplined Growth & Fiber Opportunities Jenifer Robertson, Executive Vice President & General Manager – Mobility Business: Driving Durable Value with Fiber and 5G Rasesh Patel, Executiv
Slide 14: Network: Investing In Our Foundational Strength
Network: Investing In Our Foundational Strength Jeff McElfresh CEO, AT&T Communications © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respect
Slide 15: Consumer
Consumer 4K streaming/gaming Smart home Work from home Today Future 0.9 4.6 Terabytes Terabytes © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their
Slide 16: The demand for bandwidth continues to accelerate
The demand for bandwidth continues to accelerate Uplink and Downlink Consumption Trends Usage Per Sub (GB) 480 Today Future Connected 13 ~40 devices devices 54 Daily Video 3 5 hours streaming Monthly 11 50 GB Mobile Downlink Evolving use cases 78 Unicast 4K/8K AR / VR Uplink 7 2015 COVID-19 2022 Con
Slide 17: Small Business Midmarket
Small Business Midmarket Retail and mobile businesses Connected devices Security / SD-WAN Today Future 0.6 2.2 Terabytes Terabytes © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All ot
Slide 18: Enterprise
Enterprise Distributed/remote worker Edge locations Expanding security perimeter Today Future 170 1400 Petabytes Petabytes © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other mark
Slide 19: Fiber is foundational
Fiber is foundational Experience Multi-gig capable Speed Symmetrical/low latency Sustainable Enables critical technologies © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other mark
Slide 20: Fiber remains economical as data consumption increases
Fiber remains economical as data consumption increases Cost to serve by monthly consumption Wireless w/Spectrum Wireless Fiber 25 GB 100 GB 500 GB 1 TB 2 TB 3 TB 4 TB 5 TB Source: AT&T Labs © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Int
Slide 21: U.S. market opportunity
U.S. market opportunity ~50M Suburban/ Urban areas ~10M Business locations © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 22: Wireless assets are strong
Wireless assets are strong 99.5% 2.9M 8 Qtrs. Reliability Total Square Consecutive Miles Improvement Overall Network satisfaction © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All oth
Slide 23: Spectrum deployment strategy: ONE touch
Spectrum deployment strategy: ONE touch Spectrum Holdings Average MHz by Band as of 1/2022 Low Band Mid Band FDD Mid Band TDD 73 94 120 287 Strong low Solid mid-band Consistent band coverage position experience © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and serv
Slide 24: Deliberate capital investment deployment strategy
Deliberate CONSUMER capital investment 25M+ Locations deployment strategy Fiber Build Plan SMALL 30M+ ~3.5-4M BUSINESS / MIDMARKETS Customer Locations Annually 4M by 2025 Locations 5G+ Mid Band POPs Covered ~200M LARGE BUSINESS by 2023 1M Locations © 2022 AT&T Intellectual Property. AT&T and globe l
Slide 25: Consumer: Disciplined Market Share & Fiber Opportunities
Consumer: Disciplined Market Share & Fiber Opportunities Jenifer Robertson Executive Vice President & General Manager - Mobility © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All othe
Slide 26: Our most loyal customers want to feel valued
Our most loyal customers want to feel valued © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 27: Growing the value of the base
27 Growing the value of the base Postpaid Voice Net Adds 3.2M 75% Highest on record Installment Plan +2x ~80% on Unlimited Plans 27% YoY Postpaid Voice Base on highest ARPU plan © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Pr
Slide 28: Customer Value
28 +14% Customer Value © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 29: Simple Reliable Secure
Simple Unlimited Your Way Reliable Best Deals for Everyone Secure Active Armor © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owner
Slide 30: Share of Postpaid phone net adds
Share of Postpaid phone net adds ~34% 2021 INDUSTRY LEADING ~8% 2019 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 31: Midmarket and Public Safety
Midmarket and Public Safety Growth through business relationships ~6M Midmarket businesses 17M multi-line subscribers Expanded distribution © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companie
Slide 32: Hispanic Segment
Hispanic Segment Growth through diverse segments ~2% Annual growth rate Differentiated products and local distribution © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks ar
Slide 33: Wireless Cross-Sell
Wireless Cross-Sell Growth through fiber 50% higher Wireless market share in fiber footprint Targeted offers and proactive distribution © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. A
Slide 34: Speed Security Simplicity
Speed Hyper-gig symmetrical Security Active Armor included Simplicity No contracts, straightforward pricing © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the prope
Slide 35: AT&T is accelerating penetration at record rates
AT&T is accelerating penetration at record rates Current penetration Total Fiber Pen ~37% 2021 ~23% 2018 2X ONE YEAR PEN RATE © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other m
Slide 36: Superior product and strong competitive position
Superior product and strong competitive position Mid to high teens Fiber returns © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective own
Slide 37: Business: Driving Durable Value with Fiber and 5G
Business: Driving Durable Value with Fiber and 5G Rasesh Patel Executive Vice President – Chief Product & Platform Officer © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other mark
Slide 38: Strong relationships in Enterprise position us for Fiber & 5G
Strong relationships in Trusted Brand in Enterprise Enterprise position us for Fiber & 5G Relationships with Leader in CX transformation ~90% of Fortune 1000 JD Power for Large/Medium Businesses Leader in Connecting Businesses Taking share with ~70% of enterprise customers buy FirstNet wireline and
Slide 39: Expanding Fiber Footprint to Small & Midmarket
Expanding Fiber Footprint to Integrated fiber plan – business Small & Midmarket Customer Locations (M) Businesses 5 Expand Small Business Broadband Share from low 20s to ~30%1 3 IRR = low to 2021 2022 2023 2024 2025 mid twenties 1. In-Market Broadband Share for Small Business © 2022 AT&T Intellectua
Slide 40: Expanding Share in Small Business and Midmarket
Expanding Share in Small Business and Midmarket Profitable Growth Opportunity >80% New or switching to AT&T Durable Relationships >60 Months ~$10k LTVs © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affilia
Slide 41: Expanding Share in Small Business and Midmarket
Expanding Share in Small Business and Midmarket Fiber Retail Businesses Fixed Wireless Mobile Businesses Expanding Distribution Improved reach & simplified CX © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T
Slide 42: Accelerated momentum in Business Mobility
Accelerated momentum in Business Mobility 53% 54% 2021 Flow Share 2021 IoT in Postpaid Phone1 Connectivity Share2 Taking a majority of highest value #1 IoT Mobile Network Operator Business Mobility services in the U.S. 1. Modeled using Competitive and Market Analyst publicly reported data. 2. Thru 3
Slide 43: FirstNet is America's public safety network
FirstNet is America’s public safety network Taking Share in Public Safety Modernizing Public Safety 3M Connections in four years Platform Expansion Body Cams, Fleet & Surveillance ~$1.7B Business Push to Talk Interoperability to over 7.2M Radio Users +60% YoY Network Coverage Band 14 deployment >95%
Slide 44: Positioned to Win as Auto industry transitions to EV & Autonomous
Positioned to Win as Auto industry transitions to EV & Autonomous >50M Connected cars 80%+ Market share Source: AT&T internal analysis of locations © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated
Slide 45: Our next set of verticals
Our next set of verticals Manufacturing Healthcare $20B Addressable TAM by 2026 78x Increase in telehealth in the month Next gen connected factory immediately following COVID © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Prope
Slide 46: Next generation of enterprise services
Network Edge Next generation Private of enterprise 5G services Hybrid Work © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 47: Reorienting the business
Reorienting the business Business wireline EBITDA¹ mix Fiber & Fixed Wireless Other Driving durable value thru Fiber and 5G 56% Take share in Small Business and Midmarket 84% Expand vertical model and next gen services Streamline Product Portfolio and deliver 44% stable EBITDA margins 16% 2021 2025
Slide 48: Cost Transformation: Sharpening Our Focus
Cost Transformation: Sharpening Our Focus Jeff McElfresh CEO, AT&T Communications © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective ow
Slide 49: Sharpening focus on network footprint
Sharpening focus on network footprint 20% Reinvest ONE Network Fiber in 2021 50% Reduction Fiber Wireless Copper 75%+ Fiber & 5G by 2025 Reinvest © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated co
Slide 50: ONE Platform
Enabling our Streamlining customer experience internal infrastructure ONE Portfolio Billing Systems Data Centers Applications Real Estate Platform 200 30 20 1500 15M Reduction Reduction Reduction Migration Sq ft Reduction Source: AT&T internal analysis of locations © 2022 AT&T Intellectual Property.
Slide 51: On track to deliver $6B benefit by 2023
On track to deliver $6B benefit by 2023 ~$3B+ G&A / Internal Infrastructure Network Efficiencies & Dispatch Customer Program Related / Product to Date Simplification © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/o
Slide 52: Financial Outlook: Path to Sustainable Growth
Financial Outlook: Path to Sustainable Growth Pascal Desroches Senior Executive Vice President & CFO © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of
Slide 53: Focused Total Return
Capital Allocation Framework Investing for growth Focused Maintaining an attractive dividend Total Strengthening the balance sheet Increasing financial flexibility to maximize Return shareholder value Strategy © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and servi
Slide 54: Financial Outlook
Financial Outlook AT&T Pro Forma* Guidance* 2021 2022 2023 Total Revenue $118.2 billion Low single digit growth Low single digit growth Wireless Service Revenue $57.6 billion 3%+ growth Low single digit growth Broadband Revenue $9.1 billion 6%+ growth Mid to high single digit growth Adjusted EBITDA*
Slide 55: Free Cash Flow Walk – 2021 to 2022
Free Cash Flow Walk – 2021 to 2022 In billions ~ ~ ~ ~ ~ Organic Trans. growth 2021 ‘22 Higher ~ 2022 Lower cash savings AT&T Pro capital includes interest Forma Free investment* ‘22 ~$24B in and other Cash Flow* Higher Capital working cash Investment* capital taxes savings Adjusted EBITDA* growth 2
Slide 56: Free Cash Flow Walk – 2021 to 2022
Free Cash Flow Walk – 2021 to 2022 2022 Adj. EBITDA* organic growth drivers: • Mobility growth from growing subscriber base and stable ARPU and ramping MVNO volumes • Consumer Wireline growth with accelerating broadband revenue growth from Fiber • Business Wireline trend improvement ~$1B in incremen
Slide 57: Free Cash Flow Walk – 2022 to 2023
Free Cash Flow Walk – 2022 to 2023 In billions ~ ~ ~ $1-2 ~ ~ Trans. savings 2023 Organic includes ~ growth ~$24B in 2022 Lower cash Capital AT&T Pro ‘23 lower interest Investment* Forma Free DIRECTV and other Cash Flow* cash working Guidance Adjusted capital EBITDA* growth savings 2022 2023 Free ca
Slide 58: Free Cash Flow Walk – 2022 to 2023
Free Cash Flow Walk – 2022 to 2023 2023 Adj. EBITDA* organic growth drivers: • Mobility growth from growing subscriber base, strong ARPU, higher MVNO volumes and roaming recovery • Consumer Wireline growth with accelerating broadband revenue growth from Fiber • Business Wireline exiting with growth
Slide 59: Transformation
OVER $3B RUN-RATE SAVINGS FUTURE Transformation Network Efficiencies & TAILWINDS Dispatch International Over $3B of Customer Roaming transformation Related/ Product savings to date have Simplification Advertising and Promotional been absorbed that Impacts are expected to be G&A/Internal Infrastructu
Slide 60: Expect AT&T to emerge as a simplified, more focused company
Expect AT&T to emerge as a simplified, more focused and purpose-driven company committed to growth and creating shareholder value © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All oth
Slide 61: Wrap up
Wrap up © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 62: Appendix – Non-GAAP Measures
Appendix – Non-GAAP Measures AT&T Pro Forma for 2021 reflects the historical operating results of the company excluding certain businesses (WarnerMedia, Xandr, Playdemic, Otter Media, Vrio, Video and other dispositions included in Corporate and Other), as if such transfers occurred as of January 1,