T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q4 2021 Earnings Presentation
23 slides from T-mobile Us's earnings presentation, Feb 2, 2022
Slide 1: Together We Are Unstoppable: Investor Factbook Q4 2021
TOGETHER WE ARE UNSTOPPABLE _INVESTOR m= fm FACTBOOK 04 2021
Slide 2: Postpaid net account and customer additions
▪ ▪ ▪ Sequentially and year-over-year, the increase was primarily due to higher gross additions from wearables and High Speed Internet, partially offset by higher churn. Postpaid net account additions were 315 thousand in Q4 2021, compared to 268 thousand in Q3 2021 and 131 thousand in Q4 2020, as w
Slide 3: Phone and Other Postpaid net additions
Phone Other Postpaid
Slide 4: Postpaid churn, ARPA and ARPU
Year-over-year, the increase was driven by higher premium services including Magenta MAX and an increase in . higher premium services including Magenta MAX Postpaid phone churn was 1.10% in Q4 2021, up 14 basis points from 0.96% in Q3 2021 and up 7 basis points from 1.03% in Q4 2020. ▪ Sequentially,
Slide 5: Postpaid ARPA and Postpaid Phone ARPU
$134.54 $135.04 $133.08 $132.91 $133.55 $47.86 $ $47.61 $48.06 $48.03 47.30 Postpaid ARPA —O— Postpaid Phone ARPU
Slide 6: Prepaid net additions, churn and ARPU
ncrease in premium services Prepaid net customer additions were 49 thousand in Q4 2021, compared to 66 thousand in Q3 2021 and 84 thousand in Q4 2020. ▪ Sequentially and year-over-year, the decrease was primarily driven by higher churn and migrations to postpaid plans, partially offset by higher gro
Slide 7: High Speed Internet and total customer net additions
High Speed Internet customer net additions were 224 thousand in Q4 2021, compared to 134 thousand in Q3 2021 and 65 thousand in Q4 2020. High Speed Internet customers were 646 thousand at the end of Q4 2021, compared to 422 thousand at the end of Q3 2021 and 100 thousand at the end of Q4 2020. Total
Slide 8: Service and equipment revenues
2% $14.7 billion in Q3 2021 and up 6% from $14.2 billion in Q4 2020. ▪ ▪ Year-over-year, primarily due to an increase in the number of devices sold from higher gross additions and upgrades relative to the average revenue per device sold, driven by higher promotional activity Service revenues were $1
Slide 9: Equipment sales and lease revenues
Equipment sales Lease revenues
Slide 10: Cost of services and cost of equipment sales
tization (D&A), was $3.5 billion in Q4 2021, relatively flat compared to $3.5 billion in Q3 2021 and down 8% from $3.8 billion in Q4 2020. ▪ Sequentially, Cost of services was relatively flat. ▪ Year-over-year, the decrease was primarily due to lower Merger-related costs and higher realized Merger s
Slide 11: Cost of equipment sales as percentage of equipment sales
123.1% 119.0% 124.8% 126.2% 128.1% e e e e i Cost of Equipment sales, excl. D&A and Merger-related costs Is Merger-related costs —O— % of Equipment sales, excl. D&A and Merger-related costs
Slide 12: SG&A expense
as $5.4 billion i increase ▪ e $238 million i ▪ sequentially and increased 200 basis points year-over-year. ▪ Tot D&A w $755 million i ▪ Selling, general and administrative (SG&A) expense w n Q4 2021, up 4% from $5.2 billion in Q3 2021 and up 13% from $4.8 billion in Q4 2020. ▪ Sequentially, the inc
Slide 13: SG&A expense, lease and non-lease related
$4,219 $4,289 4 977 $4,145 $3,872 oo co 22.8% 23.9% 22.3% 23.0% 21.7% e oe ry eo ve =O Non-lease Related HE sLease Related —O— % of Srvc rev, excl. Lease related
Slide 14: Diluted Earnings Per Share (Diluted EPS)
Diluted Earnings Per Share (Diluted EPS)
Slide 15: Net income and diluted EPS
▪ higher Service revenues lower Tax expense. ▪ Year-over-year, the decrease in Net income and diluted EPS was primarily driven by higher Cost of equipment sales, higher SG&A and lower Equipment revenues, partially offset by higher Service revenues, lower Depreciation and Amortization, lower Cost of
Slide 16: Core Adjusted EBITDA
lower Cost of Services, excluding Merger-related costs, partially offset by higher SG&A expense, excluding Merger-related costs, and h excluding Merger-related costs. ▪ ▪ ▪ Core Adjusted EBITDA was $5.7 billion in Q4 2021, down 6% from $6.0 billion in Q3 2021 and up 3% from $5.5 billion in Q4 2020.
Slide 17: Core Adjusted EBITDA chart
3,661 _ 93,779 $3474 $3,477 $3,000
Slide 18: Cash purchases of property and equipment; free cash flow
▪ Sequentially, cash purchases of property and equipment were relatively flat, as we continued the rapid deployment of our nationwide 5G network. ▪ Year-over year, the decrease was primarily driven by timing of cash payments for equipment and procurement savings from our increased scale. ▪ Sequentia
Slide 19: Free cash flow chart
$1,671 $1,559 $1,304 $1,112 $476
Slide 20: Total debt, net debt and leverage
Q4 2020 ratio is calculated based on LTM Pro Forma Core Adj. EBITDA ▪ The ratio of net debt, excluding tower obligations, to Core Adjusted EBITDA for the last twelve months (“LTM”) period was 3.0x at the end of Q4 2021 compared to 3.0x at the end of Q3 2021. ▪ The ratio of net debt, excluding tower
Slide 21: Our 5G Network Continues to Pull Further Ahead
Our 5G Network Continues to Pull Further Ahead 5G Geographic Coverage . LS i tes Combined LTE + 5G Macro Cell Sites 5G 5G UC Small cell/distributed antenna systems sites Nearly 5x more geographic coverage than Verizon and nearly 2x more than AT&T Mid-band and Millimeter Wave aINGESG | UURABG Reachin
Slide 22: The Most Awarded 5G Network in the U.S.
The Most Awarded 5G Network in the U.S. T-Mobile customers enjoy the fastest average 5G download and upload speeds and can connect to 5G more often and in more places than anyone else. The gap over competitors has gotten wider as T-Mobile’s average 5G download speed is more than 2.5x faster than Ver
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