Slide 1: Results January - December 2021
RESULTS January - December 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: Key takeaways
Key takeaways Mr. José María Álvarez-Pallete Chairman & CEO
Slide 4: 2021: strategic execution delivering positive results
2021: strategic execution delivering positive results • In-market consolidation: VMO2 in the UK, Oi mobile in Brazil expected in H1 22 • Key 5G spectrum secured in UK, Spain and Brazil. Enhanced network in Germany Focus on core markets • Acceleration in FTTH rollout in Spain and Brazil. Gigabit upgr
Slide 5: 2021 key metrics
2021 key metrics Strengthening connectivity leadership Sustainable growth restored Incl. VMO2, ex CR y-o-y organic 369.1 2.0% +3% y-o-y 1.4% Accesses World leader ex-China(1) in UBB PPs: 159.2m Revenues OIBDA Own PPs 84.5m (+10% y-o-y) Sound and resilient cash generation Significant debt reduction €
Slide 6: Enabling sustainable growth
Enabling sustainable growth Q4 21 highlights Revenues OIBDA Net Debt Solid FCF y-o-y org y-o-y org y-o-y ex-spectrum Consistent growth Resilient OIBDA €26.0bn Sequential improvement +3.1% +0.4% -26.1% €1,273m All business units growing Better trends in Spain q-o-q €11.0bn capital gains in FY 21 FY €
Slide 7: Financial summary
Financial summary FY 21 Q4 21 Reported Organic Reported Organic € in millions Reported Reported y-o-y y-o-y y-o-y y-o-y Revenues 39,277 (8.8%) 2.0% 9,674 (11.3%) 3.1% OIBDA 21,983 62.9% 1.4% 1,363 (63.7%) 0.4% OIBDA Underlying 13,023 (10.1%) 3,226 (13.6%) Net Income 8,137 n.s. (1,198) c.s. FCF (incl
Slide 8: 2021 upgraded guidance met
2021 upgraded guidance met 2021 guidance Telxius Towers and T. UK deconsolidated as of 1 June and Costa Rica as of 1 August Financial Targets 2021 Guidance FY 21 Revenues (y-o-y organic) “Stable to slight growth” 2.0% (upgraded in H1 from “stabilisation”) OIBDA (y-o-y organic) “Stable to slight grow
Slide 9: ESG initiatives aligned with UN SDGs
ESG initiatives aligned with UN SDGs “E”: ENVIRONMENTAL; BUILDING A GREENER FUTURE “S”: SOCIAL; HELPING SOCIETY TO THRIVE • Reducing our carbon footprint (SDG #7, #12, #13) • Driving connectivity (SDG #9) o -70% in our carbon emissions; -27% value chain emissions o 2.4m people (13.5k communities) co
Slide 10: ESG leaders with well-defined targets
ESG leaders with well-defined targets • Net zero (Scopes 1 & 2) by 2025 in key markets and across whole footprint by 2040, including the value chain Climate change and • Energy efficiency: reduce energy consumption per traffic unit (MWh/PB) by 90% in 2025 (vs. 2015) energy • 100% renewable: by 2030
Slide 11: FY & Q4 21 Results
FY & Q4 21 Results Mr. Ángel Vilá COO
Slide 12: Spain | Customer-centric model leads to high cash conversion
Spain | Customer-centric model leads to high cash conversion Key KPIs Key milestones Net adds (k) Q3 21 Q4 21 ● Record NPS (36%) and widened GAP vs competitors ● Solid convergent KPIs €90.4 • ARPU +0.9% q-o-q; Churn -0.3 p.p. y-o-y H2 > H1 1.4% • Strong growth in digital services 16 Best since 9 ● R
Slide 13: Germany | Strong FY 21 growth momentum
Germany | Strong FY 21 growth momentum Operational KPIs Key milestones Q3 21 Q4 21 ● Strong commercial momentum; driven by O2 free portfolio and Net additions (k) ARPU y-o-y network parity 518 ● 5G network now covering ~30% of population, switched-off 3G 0.9% ● Reduced Scope 1 + 2 emissions by 97% s
Slide 14: UK | Extending network leadership and commercial strength
UK | Extending network leadership and commercial strength Operational KPIs Key Milestones Accesses, m (y-o-y) ● Strong commercial momentum, total base 56.0m +5% y-o-y O2 contract churn ● Completed Gigabit network upgrade, largest contributor to +5% 0.9% in Q4 Government gigabit target 56.0 +7% ● 5G
Slide 15: Brazil | OIBDA growth offsets cost inflation
Brazil | OIBDA growth offsets cost inflation Operational KPIs Key milestones Accesses (y-o-y) ● Differential assets allow to maintain a clear leadership 36% • 33.1% MS in mobile; 37.0% MS in postpaid ● Going beyond traditional telco; creating a digital ecosystem 8% ● Efficient transformation to FTTH
Slide 16: Tech | Accelerating our sustainable fastest-growing business
Tech | Accelerating our sustainable fastest-growing business T. Tech revenue Scaled and enhanced capabilities €m; y-o-y 33.6% ● Revenue growth mostly organic and enhanced via M&A 50.3% 944 ● Superior assets, best-in-class partners, cross-selling advantage ● Strong performance in 2022 anticipated by
Slide 17: Infra | Growth and optionality ahead
Infra | Growth and optionality ahead UGG FiBrasil ON*NET Fibra InfraCo • 50% Allianz / 50% TEF • 50% CDPQ / 50% TEF • 60% KKR/ 40% TEF • 60% KKR/ 40% TEF (40% T. Infra / 10% T.DE) (25% T. Infra / 25% T.BR) (40% T.CHL) (40% T.COL) • Accelerated rollout & comm. ▪ Signed MoUs representing • Closing aft
Slide 18: FY & Q4 21 Results
FY & Q4 21 Results Ms. Laura Abasolo CFCO & Head of T. Hispam
Slide 19: Hispam | Growing profitably in value
Hispam | Growing profitably in value Operational KPIs Key milestones Accesses (y-o-y) ● Commercial momentum intact • Outstanding performance in contract along 2021 58% • 1.8m net adds, 2.2% churn under control (despite competition) 25% • Accelerating FTTH deployment efficiently • 12.3m FTTH PPs (+2.
Slide 20: Significant debt reduction on strong FCF and inorganic measures
Significant debt reduction on strong FCF and inorganic measures Net Financial Debt €m -€9.2bn ND/OIBDAaL ND/OIBDAaL 2.79x 2.59x 35,228 (2,648) 1,460 844 (9,466) 65 26,032 €26.3bn 549 Dec-20 FCF Hybrids Shareholder Pre-retirement Net financial FX & Dec-21 Post remun. (incl. commitments investments Ot
Slide 21: Conclusion
Conclusion Mr. José María Álvarez-Pallete Chairman & CEO
Slide 22: 2022 outlook | Driving returns through growth
2022 outlook |Driving returns through growth 2022 guidance organic y-o-y and including 50% of the JV in 2022 and 2021 Financial Targets 2021 Base 2022 SUSTAINABLE VALUE CREATION, IMPROVED ROCE Revenues €42,452m “Low single digit growth” Transforming networks Ramping-up digitalisation OIBDA €14,127m
Slide 23: Return to value accretive growth
Return to value accretive growth 2021; successful delivery of strategic priorities • Structure simplification through the sale of Telxius towers, Costa Rica and El Salvador, with significant debt reduction • Stronger portfolio; VMO2 JV in UK, Oi acquisition in Brazil (close H1 22E), T. Hispam’s new
Slide 24: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 24th February at 10:00 AM (CET), 9:00 AM (GMT), and 4:00 AM (EST) Participants from Telefónica: José María Álvarez-Pallete (Chairman & CEO), Ángel Vilá (COO), Laura Abasolo (CFCO & Head T. Hispam), Eduardo Navarro (C
Slide 25: 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