Slide 1: ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC
***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC 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. (“Telefónica” or the “Company”, and together with its subsidiaries the “Telefónica Group”) exclusively for its use during the presentation of financial result
Slide 3: Opening Remarks
Opening Remarks Mr. Marc Murtra Chairman & CEO ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 4: Telefónica today: building on strong foundations
Telefónica today: building on strong foundations Strong position in high-quality core markets FY 24 Performance +24 NPS Revenue growth Excellent customer Leading copper shutdown 33 NPS score Spain Brazil satisfaction Market Rank Market Rank +1.6% y-o-y #1 #1 EBITDA growth Most valuable brands +10% T
Slide 5: A new time in Europe
A new time in Europe A new context Priorities Commitments Strategic Autonomy Industrial rationale FCF is king Drive business performance Technological disruption Focus on core markets & activities Via AI and others Efficient capital allocation Conduct strategic review Conclude in H2 25 More Euro-cen
Slide 6: Q4 24 & FY 24 Summary
Q4 24 & FY 24 Summary Mr. Ángel Vilá COO ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 7: 2024: Delivered on guidance
2024: Delivered on guidance 2024 Guidance FY 24 Guidance met; FCF of €2.6bn, +14.1% y-o-y, with all 2024 Revenue ~1% +1.6% guidance metrics achieved y-o-y reported EBITDA 1% to 2% +1.2% Core markets momentum; growth across Spain, Germany, UK y-o-y reported and Brazil with improved customer metrics E
Slide 8: Accomplishments 2024, a stronger Telefónica
Accomplishments 2024, a stronger Telefónica Enhanced Next Generation Efficiency driven CUSTOMER NETWORKS MANAGEMENT experience focus • More customers, +2m y-o-y • More fibre, +10m PPs y-o-y • Decommissioning, copper shutdown in Spain • Outstanding and increasing NPS, +2 p.p y-o-y • More 5G, +12 p.p.
Slide 9: Telefónica Group: resilient performance and FCF focus
Telefónica Group: resilient performance and FCF focus Q4 y-o-y FY y-o-y reported Reported • Improved customer metrics and growth momentum in core units Growth • Ramping up in main T. Hispam metrics on positive FX impacts Revenue +5.4% +1.6% • Consistent growth in B2B, T. Tech a differential driver S
Slide 10: Q4 24 Core Operating Business
Q4 24 Core Operating Business Mr. Ángel Vilá COO ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 11: Spain: increasing customer base, FY revenue and EBITDA growth
Spain: increasing customer base, FY revenue and EBITDA growth Net adds (k) Convergent KPIs ARPU (€) Churn (%) Highlights FBB Postpaid Convergent Pay TV +1.4% +1.6% +0.5% +2.7% Accesses y-o-y • FY growth y-o-y in all accesses, 1st time since 2018 • Best convergent churn (FY 24 0.9%) in more than a de
Slide 12: Brazil: high growth with expanding margins
Brazil: high growth with expanding margins Accesses growth (y-o-y) FTTH Premises passed (m) Contract FTTH Highlights Mobile contract mkt. share • Increased quality of accesses 43.1% 28.3 29.1 • Postpaid ARPU +3% y-o-y, churn below 1% 26.2 26.8 27.3 • FTTH connections +20% y-o-y; lowest-ever 1.5% chu
Slide 13: Germany: sustained operational momentum and strong EBITDA growth
Germany: sustained operational momentum and strong EBITDA growth Contract net adds (k) Fixed ARPU (y-o-y) 2841 Highlights 226 2 226 2 5.2% 215 2 4.9% 157 2 3.8% • Continued O2 brand appeal & enhanced B2P 2.4% • O2 network rated “very good” (connect magazine) 2.2% • 5G pop coverage >97% • O2 contract
Slide 14: VMO2: focus on network evolution and long-term growth
VMO2: focus on network evolution and long-term growth Fixed network build (k new PPs) Mobile contract churn (%) UBB PPs footprint Highlights 486 18.3m • 1.3m PPs in FY 24, record footprint expansion 299 295 1.2% 1.2% 1.2% • Combined fibre reach of 6.4m PPs 281 1.1% 1.1% • Contract churn at low level
Slide 15: Tech: the B2B growth engine
Tech: the B2B growth engine, enhances its scale and sustainability Revenue Commercial performance (€m) y-o-y ~+30% ~+15% +11.1% +10.0% Revenue x3 Bookings Funnel 2,065 since FY 20 vs FY 23 vs FY 23 612 Cross selling to 5.5m B2B Telefónica customers Q4 24 FY 24 Future-proof business • Revenue y-o-y g
Slide 16: Infra: a global connectivity platform
Infra: a global connectivity platform Progressing on FTTH deployment Best-in class international connectivity infrastructure Total FTTH premises passed (m) (via FiberCos) >100km of international fibre connectivity ~30 25 Solid profitability Double-digit traffic growth 21 48% +11% EBITDA margin vs. F
Slide 17: Q4 Hispam / Financials / ESG
Q4 24 Hispam / Financials / ESG Mrs. Laura Abasolo CFCO & Head of Telefónica Hispam ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 18: Hispam: a step forward in strategy execution
Hispam: a step forward in strategy execution Telefonica Peru filed the Ordinary Insolvency Procedure • Right decision to comply with our fiduciary duty of protecting Telefónica shareholders’ interests Sale of Telefónica Argentina for €1.2bn • Simultaneous signing and closing on February 24th, execut
Slide 19: Hispam: towards a more rational industry
Hispam: towards a more rational industry Accesses growth (y-o-y) FTTH & Cable PPs (m) 19.4m FTTH Highlights Contract FTTH & Cable Leading the market 21.6 22.4 23.1 • Focus on executing our strategic plan 20.3 20.9 8% 6% • Avoiding infrastructure overlap 4% 4% 4% • Exploring all options 1.0% 1.0% • I
Slide 20: Solid balance sheet, contained costs and sound liquidity
Solid balance sheet, contained costs and sound liquidity Net Financial Debt -0.02x; -€0.2bn € million ND/EBITDAaL ND/EBITDAaL ND/EBITDAaL 2.60x 2.58x 2.55x 27,349 (2,468) 1,068 (850) 27,161 2,062 €26bn Leverage reduction Dec-23 FCF Shareholder Net financial FX & Dec-24 Dec-24 (1) including spectrum
Slide 21: 2024 FCF; +14.1% y-o-y
2024 FCF; +14.1% y-o-y Clear focus on FCF, improvement along the year € million +14.1% 2023 2024 2,634 2,308 1,501 1,516 901 457 358 242 (9) (25) Q1 Q2 Q3 Q4 FY • FCF back end loaded as expected (Q4: +€615m or +68% q-o-q) • Levers of FCF growth in 2024 • Solid operations underlying performance and l
Slide 22: Responsible digitalisation is at the core of our business
Responsible digitalisation is at the core of our business Environmental Social Governance Green networks Accessible & trustworthy connectivity ESG embedded across the business • On track to be net zero by 2040, SBTi • Rural MBB population coverage: 95% • >72k employees trained in anticorruption alig
Slide 23: Key takeaways
Key takeaways Mr. Marc Murtra Chairman & CEO ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.
Slide 24: 2025 guidance
2025 guidance Revenue EBITDA EBITDAaL-CapEx CapEx / Sales FCF Organic growth Organic growth Organic growth < 12.5% Similar to 2024 Leverage €0.30 DPS reduction • All guidance on unchanged consolidation perimeter as of 31st December 2024 • All operating guidance in organic terms • Includes £175m to £
Slide 25: Key takeaways
Key takeaways 1 Delivered in 2024. Continued strength in Spain, Brazil and Germany 2 Deliberate capital allocation, reducing exposure to Hispam 3 Strengthened balance sheet, attractive dividend 4 Strategic review to reflect on new time in Europe, update in H2 25 5 FCF generation focus and financial
Slide 26: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 27 February at 10:00 AM (CET), 9:00 AM (GMT), and 4:00 AM (EST) Participants from Telefónica • Marc Murtra l Chairman & CEO • Lutz Schüler l CEO Virgin Media O2 • Ángel Vilá l COO • Eduardo Navarro l Chief Corporate
Slide 27: For further information, please contact
Bloomberg ESG Score CDP Climate 2024 ISS ESG Corporate Rating Sustainalytics ESG Social Benchmark #2 in sector A List 2024 #1 in sector #1 in sector Industry Top Rated 2025 1st company worldwide 2024 For further information, please contact: Investor Relations FOLLOW US: Adrián Zunzunegui (adrian.zun