Slide 1: This document is classified as INTERNAL USE by Telefónica
***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.
Slide 2: Disclaimer
Disclaimer This document and any related conference call or webcast (including any related Q&A session) has been prepared by Telefónica, S.A. (“Telefónica” or the “Company”, and together with its subsidiaries the “Telefónica Group”) exclusively for its use during the presentation of financial result
Slide 3: Summary
Summary Mr. Marc Murtra Chairman & CEO
Slide 4: Strong execution drives consistent and resilient growth and adj. OpCFaL guidance upgrade
Strong execution drives consistent and resilient growth and adj. OpCFaL guidance upgrade 2026 Metric H1 26 Guidance Building momentum, with strong execution and delivery against our strategic Revenue 1 1.5%-2.5% +0.4% On track roadmap @ constant Accelerated growth (constant y-o-y) in adj. EBITDA, ad
Slide 5: Consistent execution of Transform & Grow plan in Q2
Consistent execution of Transform & Grow plan in Q2 DELIVER 1 BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B • Accesses +5% y-o-y • B2C revenue (+1.4% y-o-y constant) • Solid B2B (revenue +6.7% y-o-y constant) • NPS score 34 (+1 p.p y-o-y) • Spain1: Movistar Plus Plan Libre Cine
Slide 6: Operating Business
Operating Business Mr. Emilio Gayo COO
Slide 7: Spain: Steady operational momentum accelerating financial growth
Spain: Steady operational momentum accelerating financial growth • Sound commercial results, delivering Net adds (k) Convergent KPIs excellence - Higher net adds q-o-q (FBB and contract) FBB Contract Convergent Pay TV - Record-low convergent churn (0.7%) ARPU (€) Churn (%) +2% +3% +1% +7% Accesses y
Slide 8: Brazil: Delivering strong operational and financial growth
Brazil: Delivering strong operational and financial growth • Expanding customer lifetime value Net adds (k) KPIs (local currency) - Mobile: ARPU +5.7% y-o-y & low churn FTTH Contract FTTH ARPU Mobile ARPU - 27m mobile accesses use 5G network FTTH Churn Contract Churn - FTTH: improving ARPU & churn q
Slide 9: Germany: Focus on value-over-volume; 1&1 effects to annualise in H2 26
Germany: Focus on value-over-volume; 1&1 effects to annualise in H2 26 • Value-over-volume focus Net adds (k) ARPU (y-o-y) - Launch of O2 Mobile Plus bundles (June); minimum bundle price €30 Contract FBB IoT O2 Contract FBB - Sustained trading momentum in FBB +2% +1% +28% Accesses (y-o-y) - Enhancin
Slide 10: VMO2: Executing the plan to drive future value
VMO2: Executing the plan to drive future value • New MNVO deal: Monzo expands our wholesale Net adds (k) ARPU (local currency) mobile leadership Contract FBB Consumer Fixed-Line Consumer Contract Mobile • New O2 Business brand: merging VMO2’s robust national network infrastructure with -2% 0% Daisy’
Slide 11: Financials / ESG
Financials / ESG Mr. Juan Azcue CFO
Slide 12: Financial performance: Third Q in a row of constant and current growth in key KPIs
Financial performance: Third Q in a row of constant and current growth in key KPIs H1 26 Q2 26 Current Constant Current Constant € in millions Current Current y-o-y y-o-y y-o-y y-o-y Revenue 16,392 1.7% 0.4% 8,265 3.0% 0.0% Service revenue 15,038 2.4% 1.0% 7,634 4.0% 0.9% Accelerated current growth
Slide 13: Confident in FCF trajectory, improvement in Q2
Confident in FCF trajectory, improvement in Q2 Q2 performance FCF evolution • +€278m q-o-q mainly on improved WC Guidance Current • -€261m y-o-y primarily due to WC 2025 2026 FCF on track, 2026 guidance reaffirmed ~€3.0bn €2.9bn • FCF phasing fully aligned through H2 26; back- +€278m q-o-q end loade
Slide 14: Leverage reduction, sound liquidity and lower interest costs
Leverage reduction, sound liquidity and lower interest costs Net Financial Debt ND/EBITDAaL adj. ND/EBITDAaL adj. 2.78x 2.68x (2,614) Highlights 26,824 283 890 (105) 25,278 • Leverage reduction in Q2 to 2.68x • Further deleverage in 2026 towards 2.5x target in 2028 Dec-25 FCF total1 Shareholder Net
Slide 15: Continued progress across the sustainability pillars
Continued progress across the sustainability pillars New Sustainability Plan 2026-2030 Delivering value across four dimensions: growth, efficiency, investment attraction and risk mitigation 12 workstreams with 2030 targets to accelerate Transform & Grow, integrating ESG as a driver of innovation and
Slide 16: Key takeaways
Key takeaways Mr. Marc Murtra Chairman & CEO
Slide 17: Key takeaways: Another quarter of progress
Key takeaways: Another quarter of progress Continued momentum yielding results on consistent and focused execution of Transform & Grow strategy Ongoing growth in constant and current at Group level. Accelerated growth trends in adjusted EBITDA, adjusted OpCFaL and expansion of operating leverage Ext
Slide 18: Results presentation and Q&A Session
Results presentation and Q&A Session Calendar Participants from Telefónica • Marc Murtra l CEO Telefónica’s management will host a webcast • Emilio Gayo l COO on 29 July at 10:00 AM (CEST), 9:00 AM (BST), • Juan Azcue l CFO and 4:00 AM (EDT) • Borja Ochoa l CEO T. Spain • Santiago Argelich l CEO T.
Slide 19: Sustainalytics ESG
Sustainalytics ESG Bloomberg ESG Score CDP 2025 ISS ESG Corporate Sustainalytics ESG Digital Inclusion Benchmark, #3 in sector Climate A Top Quartile Rating Top Quartile Telco Social Benchmark and Ranking List 2025 Telco Industry #1 in sector Industry 2025 Digital Rights 1st company worldwide 2026 F