Slide 1: Results Jan-Jun 2022
°° Telefonica RESULTS JAN | JUN 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: Key takeaways
Key takeaways Mr. José María Álvarez-Pallete Chairman & CEO
Slide 4: Strategic focus helps improved growth momentum
Strategic focus helps improved growth momentum Accelerated revenue & OIBDA growth (Q2 y-o-y reported and organic) Over-delivery in H1 Moving to mid-to-high end of guided range despite toughened context Good performance across markets • Spain; progressively improving OIBDA y-o-y; miMovistar portfolio
Slide 5: Strong FCF, sequential improvement
Strong FCF, sequential improvement (€835m in Q2 22) • H1 22 +48.2% y-o-y FX trends increasingly supportive • +5.3 p.p. and +1.4 p.p. to Q2 y-o-y revenue & OIBDA Strengthened balance sheet; guaranteed solvency • Smoothing maturity profile; liquidity >2yrs debt coverage • Avg. debt life 12.8yrs; fixed
Slide 6: Key financial metrics
Positive FX impact H1 FCF €127m Changes to the perimeter (VMO2, TLXS towers, C. Rica, El Salvador) € (m) H1 22 Q2 22 € (m) H1 22 Q2 22 Revenue 768 526 Revenue (2,708) (1,115) OIBDA 283 187 OIBDA (999) (411) H1 22 Q2 22 € in millions Reported Reported y-o-y Reported Reported y-o-y Revenue 19,450 (4.2
Slide 7: Accelerated momentum despite challenging macro
Hispam Brazil Spain UK Germany Reported y-o-y Q1 22 Q2 22 CPI (avg.) 5.4% 6.9% Revenue +9.7% +18.4% OIBDA +6.7% +33.4% Reported y-o-y Q1 21 Q2 22 CPI (avg.) 10.7% 11.9% Revenue +18.1% +34.9% OIBDA +14.6% +17.0% Reported y-o-y Q1 21 Q2 22 CPI (avg.) 6.1% 8.3% Revenue +5.2% +5.8% OIBDA +9.6% +3.4% Rep
Slide 8: Updating 2022 guidance; dividend confirmed
Updating 2022 guidance; dividend confirmed 2022 Dividend €0.30/share Interim Dec-22 €0.15/sh. (cash) Final Jun-23 €0.15/sh. (cash) 2022 calendar payments Jun/22 €0.15/sh.; voluntary scrip Dec/22 €0.15/sh.; cash 139m treasury stock cancelled April 22 6 2022 guidance organic and including 50% of the J
Slide 9: Advancing towards our sustainability targets
Advancing towards our sustainability targets Reducing our carbon footprint: • 1st in sector to receive SBTi validation of Net-zero • 1st in sector to participate in WEF 1tn Trees initiative - pledge to enhance biodiversity Promoting the Circular Economy: • Platform to stimulate the reuse of network
Slide 10: Q2 Results
Q2 22 Results Mr. Ángel Vilá COO
Slide 11: Spain
Spain 33% 33% 36% 43% 44% Strong market positioning Best ever NPS and lowest churn in 6 years Operational momentum Improved net adds q-o-q, FBB positive in Q2 Revenue y-o-y growth for 5th straight quarter Higher efficiencies amid challenging macro backdrop Positioned to benefit from in market consol
Slide 12: Germany
45.0 45.3 45.7 45.9 46.7 Germany Continued operational traction and strong financial performance on core business strength Raised 5G target ~60% pop coverage at YE 22 within unchanged CapEx envelope Steady revenue & OIBDA growth 2022 OIBDA guidance upgraded Mobile accesses (m) Postpay net adds (k) Q
Slide 13: Virgin Media O2
Virgin Media O2 89 67 93 101 114 65 108 129 11 13 Focus on innovation, network investment and synergy realisation Improved customer growth 5G in over 600 towns & cities New ESG strategy: The Better Connections Plan Revenue returns to growth OIBDA growth accelerates 2022 guidance reiterated (0.1%) 0.
Slide 14: Brazil
Brazil 17.3 18.3 19.6 20.5 21.0 29.0 +34.9% revenue / +17.0% OIBDA (in € terms) FBB reached a turning point: positive net adds for the second quarter Contract churn at 1.0% (lowest ever) Vivo strengthened its leadership OIBDA-CapEx +3.8% in H1 22 Accesses growth (y-o-y) FTTH Premises passed (m) Stro
Slide 15: Tech, growing at scale ahead of the market
Tech, growing at scale ahead of the market 299 335 634 71.9%64.8%80.6% • Robust commercial performance (Bookings >+70% y-o-y in H1) with higher weight of professional & managed services • New partnerships in CyberSecurity: Netskope, Constella Intelligence, Cisco at RSA Conference 2022 • Leader by Av
Slide 16: Infra, developing a leading portfolio of FibreCos
13 1 After receiving full regulatory and competition approvals (expected in Q4 22) 2 Constant perimeter (excluding tower business) Infra, developing a leading portfolio of FibreCos •60% KKR/ 40% TEF (40% T. Chile) •3.3m PPs as of Jun-22 (189k additional PPs in Q2) •Target: 3.5m PPs by 22E (2m brownf
Slide 17: Q2 Results
Q2 22 Results Mrs. Laura Abasolo CFCO & Head of T. Hispam
Slide 18: Hispam
Hispam 11.7 12.4 13.0 14.0 14.8 FTTH & Cable premises passed (m) 8% 9% 8% 6% 5% 28% 26% 25% 22% 19% FTTH & CableContract 9.5% 6.2% 6.0% 4.3% 4.2% 0.3% 11.6% 4.0% 2.3% 10.2% Revenue OIBDA 21% 24% 23% 21% 22% 13% 16% 11% 15% 14% Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Revs +18.4% & OIBDA +33.4% (€) 4.6m FTTH &
Slide 19: Strong Balance Sheet, prudent management
Robust liquidity Strong Balance Sheet, prudent management EUR 69% BRL 20% HISPAM 10% OTHERS 1% 12.8 yrs Avg. debt life 1,460 Dec-21 Jun-22 28,817 €37.5bn incl. IFRS- 16 Leases 26,032 ND/OIBDAaL 2.59x ND/OIBDAaL 2.81x Current liquidity exceeds maturities beyond 2024 Liquidity Cushion, Jun-22 (€bn) 9.
Slide 20: Conclusions
Conclusions Mr. José María Álvarez-Pallete Chairman & CEO
Slide 21: Conclusions
Accelerated growth in revenues & OIBDA (reported & organic y-o-y). Return to growth in all business (y-o-y organic) Managing inflationary & macro challenges FX supportive through Q2 y-o-y Improved growth momentum Commercial progress drives growth (FTTH, 5G); improved customer experience and reduced
Slide 22: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 28 July at 10:00 AM (CET), 9:00 AM (BST), and 4:00 AM (EST) Participants from Telefónica • To access the webcast: click here • The webcast replay will be available on Telefónica IR’s website after the event • To part
Slide 23: For further information, please contact
For further information, please contact: Investor Relations Adrián Zunzunegui (adrian.zunzunegui@telefonica.com) Isabel Beltrán (i.beltran@telefonica.com) Torsten Achtmann (torsten.achtmann@telefonica.com) Tel. +34 91 482 87 00 ir@telefonica.com www.telefonica.com/investors FOLLOW US: SIGNATURES Pur