Slide 1: January - March 2021 Results
Onica v4 o - r ge f of ? meh tot gery. GaP ee sf So “ Na 5 SS . Wy LESS S RESULTS March 2021 January -
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 21 Results
Q1 21 Results Mr. Ángel Vilá COO
Slide 4: A strong start to 2021; improving growth outlook
A strong start to 2021; improving growth outlook Q1 21 highlights Revenues OIBDA EPS Cash conversion Customer experience y-o-y org y-o-y org y-o-y org y-o-y org y-o-y Declined 1.3% Up +0.3% €886m net income, +118% OIBDA – Capex margin +0.3 p.p. Churn declined 0.3 p.p. +0.7 p.p. vs. Q4 20 +3.1 p.p. v
Slide 5: Financial performance
Financial performance Q1 21 4 core Reported Organic € in millions Reported markets y-o-y y-o-y y-o-y org. Revenues 10,340 (9.0%) (1.3%) (2.0%) OIBDA 3,417 (9.1%) 0.3% 0.3% FX and C-19 impacts on reported figures less pronounced than in Q4 20 OIBDA margin 33.0% (0.0 p.p.) 0.6.p.p. 0.9 p.p. OIBDA-CapE
Slide 6: Spain | Continued recovery in revenue and OIBDA
Spain | Continued recovery in revenue and OIBDA Focus on value Performance Accesses (m; y-o-y) ● Moving towards a more rational market Record NPS & GAP ▪ Q1 trading affected by tariff upgrade and end of promotions +11% 31 ▪ New Fusion portfolio to bolster recovery 26 ▪ B2B “Fusión Empresas” enhanced
Slide 7: Germany | Solid operational and financial performance
Germany | Solid operational and financial performance Operational KPIs Key milestones Q4 20 Q1 21 ● Full lockdown during quarter impacted commercial activity and roaming; underlying trends remained fully intact Q1 Net additions (k) ARPU y-o-y ● Strong trading momentum; good traction of O2 Free 220 ●
Slide 8: UK | Record Q1 OIBDA, successful spectrum acquisition
UK | Record Q1 OIBDA, successful spectrum acquisition Operational KPIs Operational highlights Accesses, m (y-o-y) ● Successful auction outcome, paid considerably lower than European benchmarks for 40 MHz of 3.6 GHz and 20 MHz of 700 MHz FDD, plus agreed a trade to create contiguous block of 80 MHz i
Slide 9: Brazil | Outstanding value growth led improvement on financials
Brazil | Outstanding value growth led improvement on financials Operational KPIs Key milestones Net adds (‘000) Accesses y-o-y ● Reinforced mobile leadership (33.1% MS; +0.1 p.p. y-o-y) ▪ Record low contract churn levels (1.1%, -0.5 p.p.) Postpaid FTTH 903 368 ▪ Digital prepaid top-ups +28.8% y-o-y
Slide 10: Tech | Growth acceleration for trusted digitalisation partner
Tech | Growth acceleration for trusted digitalisation partner T. Tech accelerated revenue growth Q1 (y-o-y) ● Key assets and partner ecosystem ▪ Cloud Hub in Spain, Intelligent SOC with multiple locations 25.1% €166M ▪ Global IoT, in-house AI/Big data ▪ >300 partners & agreements with global hypersc
Slide 11: Infra | Top infrastructure portfolio manager
Infra | Top infrastructure portfolio manager Fibre Subsea Cables Towers ✓T. Group’s FTTH network ✓Optionality • 49.3m owned PPs; +20% y-o-y ✓Sale of towers to ATC • 13.3m connections1; +22% y-o-y • Record multiple of 30.5x OIBDAaL; ✓Attractive market • 27% up-take1; +0.5 p.p. y-o-y €7.7bn; €4.6bn ne
Slide 12: Q1 21 Results
Q1 21 Results Ms. Laura Abasolo CFCDO & Head of T. Hispam
Slide 13: Hispam | Reducing exposure without jeopardising growth
Hispam | Reducing exposure without jeopardising growth Operational KPIs Key milestones Net adds (‘000) ● Contract net adds +54% q-o-q ● FTTH net adds x3 y-o-y Postpaid FTTH 611 225 ● 10.4m premises passed with FTTH (+1.4m in LTM) 178 397 ● Improving customer experience: churn reduced across services
Slide 14: Continued balance sheet optimisation
Continued balance sheet optimisation Net Financial Debt €m ND/OIBDAaL ND/OIBDAaL 2.79x 2.91x 35,228 (33) 215 231 (11) 377 35,796 ~€4bn1 (211) ~€31.8bn ~€26bn Dec-20 FCF Hybrids Shareholder Pre-retirement Net financial FX & Mar-21 Inorganic Additional inorganic remun. (incl. commitments investments O
Slide 15: Achieved significant endorsement of ESG commitments
Achieved significant endorsement of ESG commitments Alignment with UN Sustainable Development Goals, targeting Net Zero Emissions in our four main markets by 2025 LEADING BY EXAMPLE (SDG 5 & 16) HELPING SOCIETY TO THRIVE (SDG 4 & 8 & 9) Building trust capital with our customers, employees, Economic
Slide 16: Conclusion
Conclusion Mr. Ángel Vilá COO
Slide 17: Well on track for 2021 guidance
Well on track for 2021 guidance 2021 guidance Financial Targets 2021 guidance Q1 21 Revenues (y-o-y organic) “Stabilisation” (1.3%) Q1 results in line with expectations OIBDA (y-o-y organic) “Stabilisation” 0.3% Back to normalised level CapEx/Sales (ex spectrum) 13% up to 15% Shareholder remuneratio
Slide 18: Summary
Summary Good progress against all our strategic priorities • Establishing the path to sustainable, profitable growth • Laying the right foundations to generate top line growth with greater capital efficiency • Further progress on ESG objectives, increasing our sustainable finance portfolio with a ne
Slide 19: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 13th May at 9:30 am (CET), 8:30am (BST), 03:30am (EST) Participants from Telefónica: Ángel Vilá (COO), Laura Abasolo (CFCDO & Head of T. Hispam), and Adrián Zunzunegui (Global Director of Investor Relations) Webcast
Slide 20: For further information, please contact: Investor Relations
For further information, please contact: Investor Relations FOLLOW US: 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