Slide 1: Strategic Plan '26-'30 Capital Markets Day Presentation
*3° Telefonica “iy a oe DAY | 2025 STRATEGIC PLAN '26-'30 CAPITAL MARKETS DAY PRESENTATION November 4th, '25
Slide 2: Disclaimer
Disclaimer This document and any related conference call or webcast (including any related Q&A session) has been prepared by Telefénica, SA. ("Telefénica” or the “Company”, and together with its subsidiaries the “Telefénica Group’) exclusively for its use during the presentation of the Capital Marke
Slide 3: Opening remarks – Marc Murtra, Chairman & CEO
*3° Telefonica hy . sibel DAY | 2025 Strategic Plan '26-'30 Opening remarks Marc Murtra, Chairman & CEO
Slide 4: Chairman's impressions (1/4)
Chairman's impressions (1/4) Telefdnica is a wonderful company with great opportunities ahead. The Company has very strong and hard to replicate assets and capabilities. The Company also has various specific areas of improvement, these can be addressed in a relatively short timeframe. The Telefdnica
Slide 5: Chairman's impressions (2/4)
Chairman's impressions (2/4) Strengths Four strong core markets with strong operations. We lead in two of our core markets Experts in network operations with robust, advanced infrastructure Pioneers in convergence strategy Highly talented and professional team Deep know-how in most areas Strong cult
Slide 6: Chairman's impressions (3/4)
Chairman's impressions (3/4) Areas of improvement Divergence between strategic vision and business context Aversion to make tough decisions High organizational and operational complexity Limited financial flexibility Slow speed of execution Excessive short-termism Some costs intrinsically rise faste
Slide 7: Chairman's impressions (4/4)
Chairman's impressions (4/4) | have asked the team to help me build a Strategic Plan that captures the real market opportunities we have ahead of us. A plan that also reduces complexity, improves financial flexibility, balances short- and long-term decisions, creates measurable efficiencies and make
Slide 8: Strategic Plan '26-'30 – Marc Murtra
*3° Telefonica sy a oe DAY | 2025 Strategic Plan '26-'30 Marc Murtra, Chairman & CEO
Slide 9: Key trends shaping the industry
Key trends shaping the industry 2 > MACRO CONTINUED GEOPOLITICAL TECHNOLOGY GLOBAL POLARIZATION DISRUPTION UNCERTAINTY / a e q eorow 9 3 Telefonica
Slide 10: Key trends shaping the industry
Key trends shaping the industry STAGNANT EUROPE IS THE DEMANDING COMMUNICATIONS WORLD'S CUSTOMERS MARKET EXCEPTION TELCO 1.5% 3vs.38 60% ASSET CARVE OUT TELCOS TO PLAY A ROLE DECELERATING IN CYBERDEFENCE IN EUROPE -52% 10-22 Be Change in # of Tower Annual revenue opportunity & Fibre deals in Europe
Slide 11: Key trends shaping the industry
Key trends shaping the industry TECH TRANSFORM & GROW USA AND CHINA WIDENED TECHNOLOGY GAP WITH EUROPE >750 Be Investment to close gap with US and China NO EUROPEAN TECHNOLOGY TITANS fe) European companies among Top 10 tech players by market cap DIGITAL SERVICES CONTINUE TO GROW 10% Revenue CAGR '24
Slide 12: Main Implications
Main Implications &B European consolidation is likely to happen, timing is uncertain @, Increased EU investment in technology Bee Customer experience as key differentiator Telcos to maintain end-to-end industrial control over assets and core infrastructure B& Al will transform processes and networks
Slide 13: Deliver the best digital experience to our customers
Deliver the best digital experience to our customers eoe é, ys! oe $ Telefonica
Slide 14: Become a world-class European Telco with profitable scale
Become a world-class European Telco with profitable scale eco ‘ Hie SFORM $ Telefonica
Slide 15: To become a world-class European Telco with profitable scale
To become a world-class European Telco with profitable scale STRATEGIC PLAN '26-'30 UPSIDE TO STRATEGIC PLAN '26-'30 BEST-IN-CLASS EUROPEAN TELCO SU ort Palo = * More efficient investment in * Customer centricity * Technological capabilities * Operating model * Talent Europe to close the technology
Slide 16: To become a world-class European Telco with profitable scale
To become a world-class European Telco with profitable scale STRATEGIC PLAN '26-'30 UPSIDE TO STRATEGIC PLAN '26-'30 BEST-IN-CLASS EUROPEAN TELCO SU ort Palo * More efficient investment in Europe to close the technology gap with US and China » Customer centricity » Technological capabilities * Opera
Slide 17: Six strategic pillars to become a 'best-in-class European Telco'
Six strategic pillars to become a ‘best-in-class European Telco’ DELIVER BEST-IN- CLASS CUSTOMER 2 EXPERIENCE EXPAND B2C OFFERING 3 SCALE B2B TRAI eee a RG now 7 $ Telefonica
Slide 18: Six strategic pillars to become a 'best-in-class European Telco'
Six strategic pillars to become a ‘best-in-class European Telco’ DELIVER BEST-IN-CLASS. CUSTOMER EXPERIENCE * Improve customer NPS » Reduce churn +6 NPS points ‘Average NPS improvement in ES, BR & DE by'28 2 EXPAND B2C OFFERING * Accelerate convergence » Grow ecosystem c.74% 3.4% Convergence over Ec
Slide 19: Six strategic pillars to become a 'best-in-class European Telco'
Six strategic pillars to become a ‘best-in-class European Telco’ TRANSFORM & GROW CUSTOMER EXPERIENCE | 1 DELIVER BEST-IN-CLASS | 2? EXPAND B2C OFFERING | 3 SCALE B2B | 4 EVOLVE TECHNOLOGICAL CAPABILITIES 7 - ' C.32 BE 3.75 ¥ rant competitive access to infra * Advance network evolution Cumulative Ne
Slide 20: To become a world-class European Telco with profitable scale
To become a world-class European Telco with profitable scale STRATEGIC PLAN '26-'30 UPSIDE TO STRATEGIC PLAN '26-'30 BEST-IN-CLASS EUROPEAN TELCO Peer ie ation sn » More efficient investment in * Customer centricity * Technological capabilities * Operating model * Talent Europe to close the technolo
Slide 21: Europe's Telco market remains fragmented, therefore subscale and inefficient
Europe's Telco market remains fragmented, therefore subscale and inefficient us EUROPE CHINA Operators! Operators! Operators! Population 1,409 M Nominal ‘24 Avg. mobile 67BE < CapEx per MNO? ‘24 5G standalone 9 availability’ 77% 1. Operators = National Mobile Network Operators (MNO), accounting for
Slide 22: Telcos can support EU close its technological dependency gaps
Telcos can support EU close its technological dependency gaps EU shows critical dependency in key tech stack components... .. that Telcos could help address EU TECHNOLOGICAL DEPENDENCY OVERVIEW SELECTED TECH STACKS WHERE TELCOS PLAY A ROLE VJ CYBERSECURITY (2 SOVEREIGN CLOUD y Acceptable gy Partial
Slide 23: Potential new European regulatory framework
Potential new European regulatory framework What has changed What could change + New geopolitical context: US-EU distancing Support in-market consolidation with appropriate regulatory terms: * Acceptance of the Draghi and Letta reports: Need for large European telco operators * To generate profitabl
Slide 24: Opportunities within Telefónica's footprint
Opportunities within Telefénica's footprint Strategic flexibility: pragmatic approach towards portfolio rotation a 1 8 B€e Benefits for buyers and sellers, 4 customers, and investments & According to broker innovation research analysts and industry experts Consolidation synergies from selected Telef
Slide 25: '26-'30 Strategic Plan
'26-'30 Strategic Plan: TRANSFORM & GROW 2026 TRANSFORM & GROW a SCALE 2035 — Si ~ * Deliver best-in-class customer experience + Deliver world-class customer experience BEST-IN-CLASS * Expand B2C offering . Develop fully softwarized B2C & B2B EUROPEAN * Scale B2B offering TELCO * Evolve technologica
Slide 26: Best-in-class European Telco – Emilio Gayo, COO
*3° Telefonica hy . sibel DAY | 2025 Strategic Plan '26-'30 Best-in-class European Telco Emilio Gayo, COO
Slide 27: Operating Businesses
(yy) Le § Telefonica ( Operating Businesses ) TRANSFORM & GROW TRA RM ese ‘ ie Wer Pa $ Telefonica
Slide 28: Telefónica's core markets
Telefdnica's core markets Fifth telco market in Largest market in Largest telco market in Second telco market in Europe, with highly LatAm, with high Europe with untapped Europe, and largest developed growth and three opportunity in fibre B2B Digital Services convergence and national mobile players
Slide 29: Core market target model
Core market target model Wd Service excellence a3} Access to fixed and mobile infrastructure YP Convergence strategy (mobile; fixed; content) ey Ecosystem and Digital Services el Simple and efficient operations TRANSFORM & GROW °° Telefonica
Slide 30: Sustain leadership with differential customer experience and efficient operations
ow Sustain leadership with differential customer experience and efficient operations DELIVER BEST-IN-CLASS. CUSTOMER EXPERIENCE 2 EXPAND EC OFFERING 3 SCALE B2B » Improve experience of key customer » Grow Ecosystem of services » Grow B2B by expanding Digital Services touchpoints * Maintain premium c
Slide 31: Maintain superior growth, premium positioning and infrastructure leadership
S vivox Maintain superior growth, premium positioning and infrastructure leadership DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B * Best network experience in mobile and * Develop and push convergence + Expand offering and presence of Digital fixed nationwide Services +
Slide 32: Become a credible challenger in convergence and B2B
@ O, Become a credible challenger in convergence and B2B DELIVER BEST-IN-CLASS. GUSTONER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B « Strengthen our #2 position in network Push Fixed Broadband and convergence « Develop robust attacker go-to-market quality Strengthen B2P partnerships Shift from pre
Slide 33: Become the premium convergence champion for UK households
Become the premium convergence champion for UK households DELIVER BEST-IN-CLASS. CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B « Improve mobile network experience » Expand the use of Al and develop hyper- personalization 94% 5G outdoor coverage by '28 (HOp.p. vs '25) « Accelerate premium con
Slide 34: Global Business Units optimized and simplified
Global Business Units... ..to be optimized and simplified °$° Telefonica @ Tech 8° Telefonica @ Global Solutions Telefonica @ = Infra Our factory for B2B Digital Services and a growth lever G) Strengthen capabilities in telco-related Digital Services Double down on Cyber Services TELXIUS 3° Telefoni
Slide 35: Group operating model defines how Telefónica's units work together
Group operating model defines how Telefonica's units work together TRANSFORM & GROW Operating Businesses to focus on in-market growth opportunities Global Business Units to serve the Operating Businesses as catalysts for growth and efficiency Corporate Centre to focus on Telefdnica's critical functi
Slide 36: Transform & Grow: Efficiency Plan - '28 TotEx evolution
Transform & Grow: Efficiency Plan 25 - '28 TotEx evolution @constant 25FX (BE) 2.3 BE ‘25 ‘28 TotEx ‘28 ‘28 TotEx without Efficiencies TotEx efficiencies Note: Totx stands for Total Expenditure (OpEx+CapEx), OpEx includes Leases. TRANSFORM & GROW Embedded gross total efficiencies yearly run-rate by
Slide 37: Transform & Grow: Growth levers
Transform & Grow: Growth levers | Operating Revenues @constant25FK (B€) ed eS rat P Growth 25 Comms Non-Comms Comms Digital Services Wholesale rates a (and others) '25-'28 CONVERGENCE _ SERVICE | ECOSYSTEM Fipre ever coun | op | Main levers exCELLENCE of growth FIBRE Movern DEFENCE INDUSTRY 40 COMMS
Slide 38: Best-in-class European Telco: Efficiency
Best-in-class European Telco EFFICIENCY TRA eee a RG now 38 $ Telefonica
Slide 39: Financials & Guidance – Laura Abasolo, CFCO
*3° Telefonica hy . sibel DAY | 2025 Strategic Plan '26-'30 Financials & Guidance Laura Abasolo, CFCO
Slide 40: '26-'30 Strategic Plan
'26-'30 Strategic Plan: TRANSFORM & GROW @ constant 25FX, @ constant perimeter! a. a | 2028 Revenues 1.5-2.5% CAGR '25-'28 2.5-3.5% CAGR '28-'30 Adj. EBITDA? = 1.5-2.5% CAGR'25-'28 2.5-3.5% CAGR '28-'30 CapEx / Revenues Bown to —- in'26- Down to ~11% in'30 Adj.OpCFal?- —_1.5-2.5% CAGR'25-'28 2.5-3.5
Slide 41: Guidance anchored on specific levers across pillars
Guidance anchored on specific levers across 6 pillars @ constant 25FX, @ constant perimeter! Revenue Adj. EBITDA? Adj. OPCFaL? ——=a— | | —esp- | —ea— "25 B2c B28 Wholesale ‘28 "25 Revenues Direct Resto ‘28 "25 EBITDA CapEx CapEx CapExiT Leases ‘28 & Other Costs?4 Opex*® Mobile Fixed & Others 1. Cons
Slide 42: Financial Strategy based on de-risked FCF and disciplined capital allocation
Financial Strategy based on de-risked FCF and disciplined capital allocation DE-RISKED FCF DISCIPLINED CAPIT, LOCATION @) DE-RISKED FCF + More predictable perimeter with better currency mix + Embedded structural efficiencies * Appropriate CapEx / Revenues to deliver growth * Not including consolidat
Slide 43: De-risked FCF
Q) De-risked FCF TRANSFORM & GROW FCF base for guidance Including continued operations! Including hybrids as financial payments Excluding non-recurring spectrum NEW: + Excluding employee commitments * Excluding UK dividends 1. It excludes Ecuador (already accounted as discontinued operation) and Col
Slide 44: Anchored Investment Grade and appropriate Balance Sheet
(2) Anchored Investment Grade and appropriate Balance Sheet Target leverage (Net debt / EBITDAaL) 2.9% SY ~2.5x '25 YTD! ‘28 Committed to investment grade credit rating 1. As of September 30th, 2025 ece bond TREN RM 4a $ Telefonica
Slide 45: Anchored Investment Grade and appropriate Balance Sheet
(2) Anchored Investment Grade and appropriate Balance Sheet Liquidity position, BE Debt maturity profile, BE 10.5 yrs average debt life 1A { 3.0 BE avg J 45 164 re maturities 9" 55 19 4A Cash&cash Othercurrent —_Synd. Undrawn Total equivalents financial Credit credit ines—_‘lquidity assets facilitie
Slide 46: Sustainable remuneration
(3) Sustainable remuneration Dividend policy is an integral part of our Capital Allocation strategy and will be the outcome of Telefonica's Free Cash Flow after investing in the company's future and ensuring the right financial leverage. TARGET 1 DPS '25 DPS!'26 REMUNERATION 0.30€ ~ O.15€ | | 40-60%
Slide 47: M&A framework
(4) M&A framework TRANSFORM & GROW VALUE ACCRETIVE TRANSACTIONS BALANCE SHEET DISCIPLINE STRATEGIC FLEXIBILITY In core markets In telco core competencies Cost & Network accountable synergies Appropriate terms & remedies Completion of exit from HispAm Investment Grade as an axiom Different ways to pl
Slide 48: Guidance
Guidance TRANSFORM & GROW MID-TERM ‘27 LONG-TERM '29 "30 Revenues @ constant '25FX 1.5-2.5% CAGR '25-'28 2.5-3.5% CAGR '28-'30. Adj. EBITDA' @ constant '25FX 1.5-2.5% CAGR '25-'28 2.5-3.5% CAGR '28-'30 CapEx / Revenues @ constant '25FX Down to ~12% '26-'28 Down to ~11% in ‘30 Adj. OpCFaL' @ constant
Slide 49: Key financial takeaways
Key financial takeaways Al & n DE-RISKED AND INVESTMENT REMUNERATION GROWING FCF GRADE A MUST LINKED TO FCF o? IMPROVED FINANCIAL FLEXIBILITY TRANSFORM & GROW 49 °° Telefonica
Slide 50: Closing Remarks – Marc Murtra
*3° Telefonica “oh 2 sibel DAY | 2025 Strategic Plan '26-'30 Closing Remarks Mare Murtra, Chairman & CEO
Slide 51: This Strategic Plan embodies the joint vision of the management team and the Board
This Strategic Plan embodies the joint vision of the management team and the Board, and has been unanimously approved with the backing of our strategic shareholders. Transform & Grow is the plan Telefonica needs to capture the opportunities ahead, improve financial flexibility and generate sustainab
Slide 52: Appendix
*3° Telefonica shy a oe DAY | 2025 Appendix
Slide 53: Business pillars KPIs
Business pillars KPls DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE EXPAND B2C OFFERING 3 SCALE B2B 2028 +6 NPS points ‘Avg NPS improvement nS, BR& DE by 28 °3* Telefonica é +10 NPS points [NPS improvement by 28 S are e& +7 NPS points (©2NPS imprewement by 28 2030 +12 NPS points ‘AvgINPS improvement in€
Slide 54: Transversal pillars KPIs
Transversal pillars KPIs 1 DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE EXPAND B2C 2 OFFERING 3 SCALE B28 EVOLVE TECHNOLOGICAL CAPABILITIES | 2028 °3° Telefonica 2030 c.55 BE (Cumulative Network & IT Tot&x'26~'28 (Cumulative Network & IT Tot&x'26~'30 Level 3.75 Level 4 Target Network Automation Level i
Slide 55: Key initiatives by strategic pillar
em Key initiatives by strategic pillar DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND Bee OFFERING 3 SCALE B2B Improve experience of key customer * Grow Ecosystem of services » Grow B2B by expanding Digital Services and touchpoints * Maintain premium content position double down on the Cyber ser
Slide 56: Key initiatives by strategic pillar – Vivo
@ vivok Key initiatives by strategic pillar DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B Best network experience in mobile and fixed * Increase digital customer interactions to >90% * Increase monitoring, proactive resolution and client expectation management * Develop
Slide 57: Key initiatives by strategic pillar
Key initiatives by strategic pillar DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B Strengthen our #2 position in network Push Fixed Broadband and convergence quality Strengthen B2P partnerships Leverage Al to enhance customer Shift from pre- to post-paid interactions « D
Slide 58: Key initiatives by strategic pillar
Key initiatives by strategic pillar Y DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND Seo OFFERING 3 SCALE B2B Improve mobile network experience (deploy Accelerate premium convergence with » Accelerate B2B leveraging O2-Daisy new spectrum, uplift capacity and complete refreshed commercial approac
Slide 59: B2C Ecosystem by core market
B2C Ecosystem by core market Ecosystem portfolio offered fs] Health services © Financial services tat Home services oo, Digital Services Entertainment QO Devices TRANSFORM & GROW Health platforms NA MM FinTech Device and other insurances Alarms Smart Home Advertising Digital Protection Other digital
Slide 60: Telefónica Tech: Key Digital Services offering in '25
Telefonica Tech: Key Digital Services offering in '25 ) ‘ ) cYBERSECURITY $ » Al& DATA Co 107 Network Security Telefonica Tech Cloud Platform Data & Business Insights loT managed connectivity (own Cyber Consulting & Director Plans Multi Cloud & Hybrid Cloud Data Strategy & Governance platform Kite)
Slide 61: AI initiatives by strategic pillar
Al initiatives by strategic pillar DELIVER BEST-IN-CLASS EXPAND B2C CUSTOMER EXPERIENCE OFFERING 3 SCALE B2B Al embedded in all products and services (Telefénica Tech) Consistent Al-powered CX through all channels (contact Integrated of B2C catalogue and channels (e.g.. New centre, instore, written
Slide 62: Transform & Grow: Efficiency Plan
Transform & Grow: Efficiency Plan Embedded gross total efficiencies yearly run-rate by lever @constant 25FX (BE) Recurrent 2.01 BE in OpEx and 0.92 BE in Capex | 3.0 BE | Recurrent 1.51 BE in OpEx and | ' 0.53 BE in Capex | 23 Be Detailed initiatives by lever Technological & Operational Digital Tran
Slide 63: Exchange rates used in Transform & Grow November '25 business plan
Exchange rates used in Transform & Grow November '25 business plan EXCHANGE RATES APPLIED TO P&L/FCF AND CAPEX' (average exchange rate for the period) Currency units per Euro 2025 2026 2027 2028 2029 2030 USA (US Dollar) 113 118 119 118 118 118 United Kingdom (Sterling) 0.86 088 089 oss oss 087 Braz
Slide 64: °3°
°3° Telefonica