Slide 1: Results 2023 Q2
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: Delivering on our goals
Delivering on our goals Core markets Group Spain Brasil Germany UK Value-Adding Group T. Tech. Distinctive Retail revenue growth Outgrowing inflation, Narrowed 2023 guidance Accelerated network growth profile sequential improvement margin expansion on continued momentum rollout (175k PPs; 5G) Potent
Slide 5: Driving profitable and sustainable growth
Driving profitable and sustainable growth Q2 23 Revenue OIBDA OIBDA-CapEX Net Debt y-o-y organic y-o-y organic y-o-y organic Cash dividend payment +3.3% +3.5% +3.4% €27.5bn 5 Qs in a row of reported growth Reported OIBDA already stabilised y-o-y OIBDA-CapEx H1 (+2.7%) FCF €842m; H1 €1.3bn Growing ac
Slide 6: Financial update
Financial update H1 23 Q2 23 H1 23 Q2 23 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 20,178 3.7% 10,133 0.9% Revenue 23,164 4.1% 11,667 3.3% OIBDA 6,266 (1.2%) 3,144 (0.1%) OIBDA Underly
Slide 7: Strong momentum supports 2023 guidance upgrade
Strong momentum supports 2023 guidance upgrade 2023 guidance Organic Initial 2023 Targets Upgraded 2023 guidance H1 23 guidance Revenue “Low single digit growth” “ ~4% growth ” 4.1% y-o-y organic OIBDA “Low single digit growth” “ ~3% growth ” 2.3% y-o-y organic CapEx/Sales ~14% Maintained ~14% 12.7%
Slide 8: ESG progress
ESG progress Environmental Social Governance 1 3 Net-zero by 2040 (SBTi validated) >90% MBB rural coverage by 2024 Parity in top governing bodies by 2030 Key 100% renewables by 2030 33% women executives by 2024 Zero-tolerance of corruption targets 2 4 Zero-waste by 2030 Zero adjusted pay gap by 2024
Slide 9: Q2 Results
Q2 23 Results Mr. Ángel Vilá COO
Slide 10: Spain
Spain Convergent KPIs Revenue & OIBDA growth (y-o-y organic) CL Retail Rev. ARPU (€) Churn (%) Revenue OIBDA 9 years +23% Stronger commercial traction 92.6 91.5 1.3% 1.7% 1.9% accelerates retail revenue 90.1 90.1 90.3 0.9% 0.2% 0.2% 0.3% 0.3% 1.1% 1.2% 1.0% (0.1%) 0.9% 0.9% (0.5%) (1.0%) (2.1%) (1.7
Slide 11: Germany
Germany Postpay net adds (k) Revenue & OIBDA organic growth 374 368 Revenue OIBDA Good operational traction 304 302 & sustained financial performance 264 8.0% 6.0% 6.6% 6.6% 5.8% 4.2% 4.4% M4M ‘O2 Mobile’ successfully launched 3.1% 2.8% 1.7% O2 contract ARPU +1.0% (vs. Q2 22) Q2 22 Q3 22 Q4 22 Q1 23
Slide 12: Virgin Media O2
Virgin Media O2 Fixed network build (k PPs) Revenue & OIBDA growth (y-o-y organic) UBB PPs 16.4m Revenue OIBDA 188 Focus on network investment 175 9.9% 8.1% 114 115 108 Growing converged base; Volt surpassed the 6.2% 4.8% 1.5m customers milestone 3.9% 3.7% 1.4% 0.2% 0.4% 175k PPs in Q2 23 and 5G con
Slide 13: Brazil
Brazil Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Mobile contract share Contract FTTH Revenue OIBDA Outgrowing, outlasting inflation 43.5% 43.7% 43.6% 41.8% 41.7% 12.3% 12.1% 11.1% 10.6% 10.1% 9.5% 11.1% Leader in contract m.s. 43.6% (+1.9 p.p. y-o-y) 25% 8.5% 20% 18% 21% 18% 19%
Slide 14: T. Tech, a leading IT provider for B2B digitalisation
T. Tech, a leading IT provider for B2B digitalisation T. Tech Revenue (€m) Operational Highlights Strong commercial activity, solid New operating model for a new cycle of y-o-y 43.5% 36.1% 39.6% position in customers sustainable growth 885 • LTM Bookings ~+35% y-o-y • Geographical BUs with commercia
Slide 15: T. Infra, crystalising value of assets and capabilities
T. Infra, crystalising value of assets and capabilities Accelerating FTTH deployments; efficient wholesale vehicles Critical digital infrastructure 19 13 15 30 UBB Global 10 leader outside China Total FTTH Premises Passed1 (m) 2026E Dec-21 Dec-22 Mar-23 Jun-23 Reinforced ownership 70% T. Infra; 30%
Slide 16: Q2 Results
Q2 23 Results Mrs. Laura Abasolo CFCO & Head of T. Hispam
Slide 17: T. Hispam
T. Hispam Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH & Cable Revenue OIBDA Continued execution 19% 18% 10.2% 19% 18% 16% -27% invested capital (since Dec-19) 4.2% 3.8% 2.8% Reducing exposure to the region: 5% 5% 1.2% 1.6% 4% 4% 3% MOU in Colombia to share mobile inf
Slide 18: Further deleverage, sound liquidity and contained cost
Further deleverage, sound liquidity and contained cost Debt portfolio de-risked & well positioned Comfortable liquidity position Liquidity cushion, Jun-23 (€bn) Gross debt maturities, Jun-23 (€bn) Maturities >80% 12.4 yrs covered 11.7 20.2 3.3 4.0 Total debt 2.4 2.3 Avg. debt life over next 3 8.5 fi
Slide 19: Completing our transformation journey
Completing our transformation journey Mr. José María Álvarez-Pallete Chairman & CEO
Slide 20: Future-ready
Future-ready Technology levers Revenue OpEx+CapEx • NextGen infrastructure (fibre & 5G) • Growing in all business • Massive virtualisation and softwarisation • High storage & processing capabilities • Decisive transformation of revenue function • 83% of processes digitalised • Data-centric mediation
Slide 21: Time to grow our ambition
Time to grow our ambition FCF growth 3 yrs plan Save the date Telefonica 2023 CMD November 8th, Madrid & streaming • New company vision and 2023-26 strategic plan. “GPS”: growth, profitability, sustainability • Customers at the centre, technology enabling better understanding of needs and deliver be
Slide 22: Driving profitable growth, increasing ambition
Driving profitable growth, increasing ambition • Continued to deliver in Q2, confident in our strategy and ability to maximise value for shareholders • Consistent and solid revenue growth (organic y-o-y); highlighting B2B • Significant OIBDA growth acceleration (organic and reported y-o-y); operatio
Slide 23: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 27 July at 10:00 AM (CEST), 9:00 AM (BST), and 4:00 AM (EDT) Participants from Telefónica • José María Álvarez-Pallete l Chairman & CEO • Lutz Schüler l CEO Virgin Media O2 • Ángel Vilá l COO • Eduardo Navarro l Chie
Slide 24: For further information, please contact: Investor Relations
A List Bloomberg Member of DJSI 1st in sector 1st company worldwide in 2022 2022 GEI 2023 Europe 2022 Digital Inclusion Benchmark For further information, please contact: Investor Relations FOLLOW US: Adrián Zunzunegui (adrian.zunzunegui@telefonica.com) Isabel Beltrán (i.beltran@telefonica.com) Tors