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. (hereinafter “Telefónica” or “the Company”, and together with its subsidiaries the “Telefónica Group”) exclusively for its use during the presentation of fina
Slide 3: Q1 24 Summary
Q1 24 Summary Mr. Ángel Vilá COO
Slide 4: Solid start to the year, clear opportunities ahead
Solid start to the year, clear opportunities ahead Q1 highlights Near-term opportunities Accelerating revenue and EBITDA growth • New long-term mobile network agreement with DIGI; NB MOU signed Sustained momentum; consistent growth in core markets Spain, Brazil and Germany • Negotiation underway on
Slide 5: Stronger Telefonica, Q1 main achievements
Stronger Telefonica, Q1 main achievements Enhanced Next Generation Leaner CUSTOMER NETWORKS OPERATIONS experience focus • Fibre growth, +9m FTTH PPs y-o-y to 77m • Growing customers, +5m y-o-y to 388m • Spain copper switch-off (4,272 COs • T. Infra FTTH PPs, +7m y-o-y to 22m • Higher satisfaction, 3
Slide 6: Telefonica Group: solid Q1 results
Telefonica Group: solid Q1 results Service B2B B2C • High quality accesses (FTTH +12%, mobile contract +3%) Revenue Growth • Top-line ramping up, +1.4 p.p. q-o-q Revenue Revenue Revenue • Service revenue +3.1 p.p. q-o-q €10.1bn €9.1bn €2.2bn €6.2bn +0.9% y-o-y +2.3% y-o-y +2.8% y-o-y +0.8% y-o-y • A
Slide 7: Q1 24 Geographies & Units
Q1 24 Geographies & Units Mr. Ángel Vilá COO
Slide 8: Spain: Solid trading and efficiencies to further accelerate EBITDA growth
Spain: Solid trading and efficiencies to further accelerate EBITDA growth Convergent KPIs Revenue & EBITDA growth (y-o-y) ARPU (€) Churn (%) Highlights Revenue Retail Rev. EBITDA 92.6 92.2 • Growth in main accesses for 3 straight Qs 91.5 91.2 90.6 1.9% 2.4% 3.3% 2.7% 1.6% 1.7% 0.3% 1.0% 1.0% 0.2% •
Slide 9: Brazil: Strong operating performance leading growth
Brazil: Strong operating performance leading growth Accesses growth (y-o-y) Revenue & EBITDA growth (y-o-y) Highlights Mobile contract m.s. Contract FTTH Revenue EBITDA • Outstanding growth 43.5% 43.7% 43.6% 43.4% 43.3% • Lowest ever contract churn (0.97%); ARPU +9.4% 17.5% 14.8% • FTTH accesses +12
Slide 10: Germany: Ongoing operational and EBITDA momentum
Germany: Ongoing operational and EBITDA momentum Postpay net adds (k) Revenue & EBITDA growth (y-o-y) 396 Revenue EBITDA Highlights 368 302 284 8.0% • Solid start into the year 157 1 4.4% 4.6% 5.0% • >95% 5G pop coverage 3.6% 3.7% 2.8% • Strong own brand performance (O2 contract churn 1.7% 2.2% 1.0%
Slide 11: Virgin Media O2: setting up for 2024 execution with focused investments
Virgin Media O2: setting up for 2024 execution with focused investments Fixed network build (k PPs) Revenue & EBITDA growth (y-o-y) 299 UBB PPs Highlights Revenue EBITDA 17.2m 251 10.8% • Ramping up fibre, 80% increase in build pace y-o-y 194 6.7% • Targeted launch of 5G standalone in 14 cities 175
Slide 12: T. Tech, double-digit growth while reinforcing capabilities and credentials
T. Tech, double-digit growth while reinforcing capabilities and credentials Revenue Differential profile (€m) y-o-y Double-digit growth to further improve as from Q2 on strong backlog +11.0% Well balanced revenue mix (value added services and currency) 476 429 Strong commercial activity • Bookings g
Slide 13: T. Infra, a global connectivity platform to lead change
T. Infra, a global connectivity platform to lead change Accelerating FTTH deployment Critical digital infrastructure Total FTTH Premises Passed1 (m) ~30 ~+60% Consistent solid profitability 22 15 50.8% EBITDA margin Q1 24 Mar-23 Mar-24 2026E ̴ 0% of 23-26 of TEF’s FTTH rollout 3 Opening of a new rou
Slide 14: Q1 T. Hispam, financials, ESG
Q1 24 T. Hispam, financials, ESG Mrs. Laura Abasolo CFCO & Head of T. Hispam
Slide 15: Hispam: Helping to build a more rational ecosystem
Hispam: Helping to build a more rational ecosystem Accesses growth (y-o-y) Revenue & EBITDA growth (y-o-y) Highlights Contract FTTH & Cable Revenue EBITDA 4.1% • Pushing towards healthier competition 18% 16% • Softer mobile commercial activity (rationality focus) 12% (4.0%) (5.1%) (5.2%) 8% 6% (8.2%
Slide 16: FCF phasing fully aligned with expectations; 2024 guidance reaffirmed
FCF phasing fully aligned with expectations; 2024 guidance reaffirmed FCF to improve throughout the year; 2024 guidance reaffirmed € million 2023 2024 FCF 2024E 2,308 >10% growth FCF 2023 +€43m y-o-y €2,308m adj. by BZ one-off in Q1 23 (9) (41) FCF CAGR 23-26 >10% growth Q1 FY • Q1 24 affected by us
Slide 17: Solid balance sheet reflects T. DE shares acquisition
Solid balance sheet reflects T. DE shares acquisition Net Financial Debt € million ND/EBITDAaL ND/EBITDAaL 2.60x 2.71x 882 4 28,482 27,349 69 178 FCF Shareholder Net financial FX & Dec-23 Mar-24 including spectrum Remuneration investments Others Financing Activity Contained interest payment cost 202
Slide 18: ESG key to realising our GPS targets
ESG key to realising our GPS targets Environmental Social Governance • Scope 3 efficiencies • Talent management via diversity • Shareholder confidence Included on CDP Supplier Engagement 33.1% women executives; +858 persons with All BoD proposed resolutions Leaderboard for 5th consecutive year disab
Slide 19: Key takeaways
Key takeaways Mr. Ángel Vilá COO
Slide 20: Guidance 2024: accelerate FCF delivery even after better 2023
Guidance 2024: accelerate FCF delivery even after better 2023 On Track to 2024 Guidance 2023-26 CAGR Deliver Revenue ~1% ✓ ~1% y-o-y reported B2C ~1.5%; B2B ~5% EBITDA y-o-y reported 1% to 2% ✓ ~2% EBITDAaL - CapEx y-o-y reported 1% to 2% ✓ 5% CapEx / Sales Up to 13% ✓ <12% FCF y-o-y reported >10% ✓
Slide 21: Strong start to the year, near term catalysts
Strong start to the year, near term catalysts 1 Delivered solid Q1 results, firmly on track for 2024 guidance and 2023-2026 plan (FCF CAGR >10%) 2 Robust commercial performance, Spain EBITDA improvement, maintaining strength in Brazil & Germany 3 Investing in next-generation networks to elevate cust
Slide 22: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 9 May at 10:00 AM (CEST), 9:00 AM (BST), and 4:00 AM (EDT) Participants from Telefónica • Ángel Vilá l COO • Lutz Schüler l CEO Virgin Media O2 • Laura Abasolo l CFCO & Head T. Hispam • Eduardo Navarro l Chief Corpor
Slide 23: For further information, please contact
Climate A Bloomberg Member of DJSI 1st in sector 1st company worldwide in 2023 List 2023 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.c