Slide 1: Telefonica Results 2023
§ Telefonica Results 2023
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: Q1 23 Results
Q1 23 Results Mr. Ángel Vilá COO
Slide 4: Delivering on our goals
Delivering on our goals Core Markets T. Hispam Value-Adding Group Service revenue growth accelerating, improving OIBDA trend y-o-y Scaled European -28% invested capital Best infra portfolio Open Gateway project Cloud/Cyber champion since Dec-19 Double digit revenue & OIBDA growth Key Excellent progr
Slide 5: A strong start to 2023
A strong start to 2023 Q1 23 Revenue OIBDA OIBDA-CapEX Net Debt y-o-y organic y-o-y organic y-o-y organic -€0.2bn vs. Dec-22 +4.9% +1.1% +2.1% €26.4bn All business lines growing Steady growth CapEx (-0.7%) FCF €0.5bn Strengthened commercial position Resilience; proactive management of efficiencies •
Slide 6: Key financial metrics
Key financial metrics Q1 23 Q1 23 Reported + 50% Organic Reported Reported VMO2 (€m) y-o-y (€m) y-o-y Revenue 10,045 6.7% Revenue 11,497 4.9% OIBDA 3,121 (2.4%) OIBDA Underlying 3,145 2.4% OIBDA 3,634 1.1% Net Income 298 (57.9%) FCF (incl. leases principal 454 (11.6%) payments) OIBDA-CapEx (ex-spect
Slide 7: Well on track for 2023 guidance
Well on track for 2023 guidance 2023 guidance organic Targets 2023 Q1 23 Revenue y-o-y organic “Low single digit growth” +4.9% OIBDA y-o-y organic “Low single digit growth” +1.1% CapEx/Sales organic ~14% 11.3% Shareholder remuneration 2023 calendar payments 2023 Dividend €0.3/share (cash) 15th June
Slide 8: On target to achieve ESG goals
On target to achieve ESG goals Environmental Social Governance 3 Net-zero by 2040 (SBTi validated) >90% MBB rural coverage by 2024 1 Parity in top governing bodies by 2030 Key Zero-tolerance of corruption 100% renewables by 2030 33% women executives by 2024 targets 4 Zero-waste by 2030 2 Zero adjust
Slide 9: Spain
Spain Convergent KPIs Revenue & OIBDA growth (y-o-y organic) Commercial momentum ARPU (€) Churn (%) Revenue OIBDA further improve financials 91.1 92.6 0.9% 1.3% 90.1 90.1 90.3 0.2% 0.2% 0.3% 1.3% 1.2% Best Q trading post-pandemic 1.1% 1.0% 0.9% FBB y-o-y growth after 4 years (1.7%) (2.1%) (3.4%) (2.
Slide 10: Germany
Germany Postpay net adds (k) Revenue & OIBDA (y-o-y organic growth) 374 368 287 304 Revenue OIBDA Good commercial traction 264 8.0% and growth 7.0% 6.6% 6.6% 5.8% 6.0% 5.2% 4.2% 3.1% 1.7% “Very good’ rating in connect test Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 >82% 5G pop. cove
Slide 11: Virgin Media O2
Virgin Media O2 Fixed network build (k; PPs) Revenue & OIBDA growth (y-o-y organic) 188 Revenue OIBDA Focus on operational progress 9.9% and long-term growth 114 115 8.1% 108 101 4.8% Seasonality in mobile contract base, low and 3.9% 2.6% stable churn levels y-o-y (1.0% in Q1 23) 1.4% 0.2% 0.4% (0.1
Slide 12: Brazil
Brazil Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH Revenue OIBDA Highest revenue growth in 10 years 11.1% 12.3% 12.1% 29% 10.6% 10.1% 20% 25% 18% 21% 18% 19% 8.5% 9.5% Contract m. share: 43.7% (+2 p.p. since Oi deal) 15% 17% 4.6% 6.6% 7% 1.6% Contract churn: 1.1%; he
Slide 13: T. Tech, a global next-generation IT provider
T. Tech, a global next-generation IT provider T. Tech Revenue (€m) Operational Highlights +43.5% Leader in B2B digital services: Cloud, Cybersecurity, IoT, Big Data Accelerating growth 429 (+ 10 p.p. q-o-q) Strong Commercial activity 299 • Bookings growth ~+40% y-o-y in L12M +27% y-o-y in constant p
Slide 14: T. Infra, consolidating our leadership of FibreCos and critical infrastructure
T. Infra, consolidating our leadership of FibreCos and critical infrastructure Focus on execution to gain scale The best combination of profitability and growth (m; FTTH PPs1) 10 2021 15 Mar-23 25 2026E 70% 30% • 4.3m PPs • Deployment on track • 3.7m PPs (leaders) Q1 23 • Driving digital • Scaling-u
Slide 15: Q1 23 Results
Q1 23 Results Mrs. Laura Abasolo CFCO & Head of T. Hispam
Slide 16: T. Hispam, capturing value growth opportunities
T. Hispam, capturing value growth opportunities Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH & Cable Revenue OIBDA -28% Invested Capital (since Dec-19) 22% 19% 18% 10.2% 19% 18% 4.3% 4.2% Value growth & tariff update 6% 3.8% 2.8% 2.3% 1.2% 1.6% 5% 5% 4% 4% Revenue gro
Slide 17: 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, Mar-23 (€bn) Gross debt maturities, Mar-23 (€bn) €3.0bn avg (-58% vs 4 yrs avg. Maturities >80% 13.2 yrs covered 11.8 21.4 at Mar-17) Total debt over ne
Slide 18: Conclusions
Conclusions Mr. Ángel Vilá COO
Slide 19: Positive momentum in Q1 23
Positive momentum in Q1 23 • Strong start to the year, resilience; consistent execution of strategy • Accelerated growth in revenues (reported and organic y-o-y); pricing power, leading churn and NPS • Pricing actions and efficiencies more than offset inflationary pressures • Good progress in fibre,
Slide 20: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 11 May at 10:00 AM (CEST), 9:00 AM (GST), and 4:00 AM (EDT) Participants from Telefónica • Ángel Vilá l COO • Eduardo Navarro l Chief Corporate Affairs & Sustainability Officer • Laura Abasolo l CFCO & Head T. Hispam
Slide 21: A List
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