Slide 1: Telefónica Results Jan-Sep 2022
*3° Telefonica RESULTS JAN | SEP 2022
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 22 Results
Q3 22 Results Mr. Ángel Vilá COO
Slide 4: Steady execution of our strategy
Steady execution of our strategy Revenue & OIBDA reported Reinforced leadership Opportunities growth improving sequentially • T. Infra, fibre vehicles contributing to growth, 12m PPs (Sep-22); opportunities to crystallise value • Spain ongoing commercial momentum on Mi Movistar On track to deliver f
Slide 5: Ongoing sustainable growth; strong balance sheet and FCF
Ongoing sustainable growth; strong balance sheet and FCF Q3 Revenue Q3 OIBDA Net debt FCF 9M y-o-y organic y-o-y organic Stable q-o-q +3.8% +3.1% €28.9bn €2,474m Growth across most segments Trends improving in core markets Deleverage in 2022 despite M&A (2.52x)1 Solid FCF growth +68.2% y-o-y High-va
Slide 6: Financial update
Financial update 9M 22 Q3 22 9M 22 Q3 22 Reported + Organic Reported + Organic € in millions Reported Reported Reported Reported € in millions 50% VMO2 JV y-o-y 50% VMO2 JV y-o-y y-o-y y-o-y Revenue 29,793 0.6% 10,343 11.2% Revenue 34,228 4.1% 11,825 3.8% OIBDA 9,593 (53.5%) 3,249 (13.0%) OIBDA Unde
Slide 7: Effectively managing inflationary pressures
Effectively managing inflationary pressures Telefónica Group Operating in high-inflation markets for decades in LatAm Q3 22 y-o-y Pricing power in most markets: inflation-linked in Brasil, Hispam and UK reported …M4M in Spain, revamping of O2myHome in Germany CPI (avg.) 9.4%1 Strong B2B & wholesale
Slide 8: 2022 guidance and dividend confirmed
2022 guidance and dividend confirmed 2022 guidance organic including 50% of VMO2 in 2022 and 2021 Targets 2021 Base Updated 2022 guidance 9M 22 “High-end of low single digit growth” Revenue €42,452m 4.1% (Upgraded in H1 from “Low single digit growth”) “Mid-to-high-end of low single digit growth” OIB
Slide 9: Progressing on ESG agenda
Progressing on ESG agenda Environmental Social Governance 1 Net-zero by 2040 (scopes 1, 2 & 3) 90-97% MBB rural coverage by 2024 Zero-tolerance of corruption Key 2 Zero-waste by 2030 33% female executives by 2024 ~25% financing linked to sustainability by 2024 targets 3 >50m tCO2 avoided customer em
Slide 10: Spain
Spain Convergent KPIs Revenue & OIBDA growth (y-o-y organic) ARPU (€) Churn (%) Revenue OIBDA 0.4% 0.5% 0.9% 1.3% Commercial and OIBDA trends 89.6 90.4 91.1 90.1 90.1 0.2% improved sequentially (3.4%) (3.4%) (2.8%) (4.9%) Sound positioning in a more rational market 1.4% (leading NPS and churn) 1.4%
Slide 11: Germany
Germany Mobile accesses (m) Revenue & OIBDA organic growth Revenue OIBDA 46.7 47.0 45.7 45.9 45.3 7.0% Strong operational 5.1% 5.2% 5.8% 6.0% traction and financial 3.5% 4.2% performance 3.1% 1.6% Sustained commercial momentum driven by core O2 brand (2.2%) Continued revenue expansion driven by Q3 2
Slide 12: Virgin Media O2
Virgin Media O2 Fixed network build (k) Revenue & OIBDA growth (y-o-y organic) Revenue OIBDA 114 115 Strong strategic and 101 8.1% 93 operational progress 67 4.8% Solid commercial momentum, 2.6% 1m Volt converged customers 0.7% 0.2% 16m PP and 5G in over (0.1%) (0.6%) 800 towns & cities (0.9%) (0.7%
Slide 13: Brazil
Brazil Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH Revenue OIBDA 12.3% 11.1% 10.6% Double digit growth 39% 8.5% 36% 4.6% 29% 25% 21% 20% 18% 3.0% 2.8% 71% share of contract net adds in Jul & Aug 9% 2.2% 8% 1.7% 7% 1.6% 9%1 Steady FTTH growth: +9% q-o-q 8%1 Q3 21 Q4 2
Slide 14: Tech, consistent delivery, sustainable and resilient growth engine
Tech, consistent delivery, sustainable and resilient growth engine T. Tech Revenue (€m; y-o-y) Adding value to B2B with a differential customer journey >70% in both Tech Co’s 80.6% 64.8% 68.6% 70.6% 1021 Constant Perimeter ~30% y-o-y 335 386 299 LTM €1.4bn FY 21 €0.9bn Q1 22 Q2 22 Q3 22 9M 22 High v
Slide 15: T. Infra, unique portfolio of best-in-class assets
T. Infra, unique portfolio of best-in-class assets TEF is building a leading portfolio of FibreCos Critical infrastructure Total FTTH Premises Passed (m) • Accelerated OIBDA3 growth: >25 26.3% 121 9 2026E 16.0% 13.6% Organic 6.4% Reported Sep-21 Sep-22 H1 22 9M 22 • Maintained strong commercial mome
Slide 16: Q3 22 Results
Q3 22 Results Mrs. Laura Abasolo CFCO & Head of T. Hispam
Slide 17: Hispam
Hispam Accesses Growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH & Cable Revenue OIBDA Building a sustainable future 26% 25% 22% 19% 18% 11.6% 9% 10.2% Growing in contract & FTTH 8% 6% 5% 5% 6.2% 6.0% 4.3% 4.2% Revs +16.2% & OIBDA +12.6% (€) (1) 4.0% 3.8% 2.3% 1.2% OIBDA-CapEx +15
Slide 18: Prudent management, contained cost and sound liquidity
Prudent management, contained cost and sound liquidity Debt Portfolio de-risked & well positioned Comfortable liquidity position Liquidity cushion, Sep-22 (€bn) Gross debt maturities, Sep-22 (€bn) Maturities 11.8 22.1 €2.9bn average 25.8 74% 13.0 yrs covered (-56% vs 4 yrs avg. at Sep-16) Total debt
Slide 19: Conclusions
Conclusions Mr. Ángel Vilá COO
Slide 20: Ongoing sustainable growth
Ongoing sustainable growth Sequential improvement in reported revenues and OIBDA trends (y-o-y) Managing inflationary & macro environment; sustained revenue and OIBDA growth with stable margin (y-o-y org.) FCF and net debt reduction to accelerate in Q4 (confirmation of tax refund of €1.3bn) Commerci
Slide 21: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 4 November at 10:00 AM (CET), 9:00 AM (GMT), and 5:00 AM (EDT) Participants from Telefónica • Ángel Vilá l COO • Eduardo Navarro l Chief Corporate Affairs & Sustainability Officer • Laura Abasolo l CFCO & Head T. His
Slide 22: For further information, please contact
A List Bloomberg 1st company worldwide in 2021 1st in sector 2021 GEI 2022 Digital Inclusion Benchmark 2020 For further information, please contact: Investor Relations FOLLOW US: Adrián Zunzunegui (adrian.zunzunegui@telefonica.com) Isabel Beltrán (i.beltran@telefonica.com) Torsten Achtmann (torsten.