Slide 1: Telefónica Results 2023 Q3
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 in conjunction with its subsidiaries the “Telefónica Group”) exclusively for been used during the presentation
Slide 3: Q3 23 Results
Q3 23 Results Mr. Ángel Vilá COO
Slide 4: We delivered another solid quarter
We delivered another solid quarter Q3 23 Revenue OIBDA OIBDA-CapEX Net Debt y-o-y organic y-o-y organic y-o-y organic Q3 23 -€0.9bn +2.5% +3.0% +9.3% €26.5bn Service revenue +3.1% Increasing OIBDA margin Accelerating in 9M to +4.8% FCF 9M €2.4bn Maintaining strong market position; growth in value Pr
Slide 5: Overview of key financials
Overview of key financials 9M 23 Q3 23 9M 23 Q3 23 Reported + Organic Reported + Organic € in millions Reported Reported Reported Reported € in millions 50% VMO2 JV y-o-y 50% VMO2 JV y-o-y y-o-y y-o-y Revenue 30,499 2.4% 10,321 (0.2%) Revenue 35,048 3.5% 11,885 2.5% OIBDA 9,595 0.0% 3,330 2.5% OIBDA
Slide 6: 2023 guidance and dividend reiterated
2023 guidance and dividend reiterated 2023 guidance Organic Initial 2023 Targets Upgraded 2023 guidance 9M 23 guidance Revenue “Low single digit growth” “ ~4% growth ” 3.5% y-o-y organic FCF 2023 ambition OIBDA ~€4bn ex-spectrum “Low single digit growth” “ ~3% growth ” 2.6% y-o-y organic CapEx/Sales
Slide 7: Ahead of the regulatory curve in ESG with a transparent roadmap
Ahead of the regulatory curve in ESG with a transparent roadmap Environmental Social Governance 1 3 Net-zero by 2040 (SBTi validated) >90% MBB rural coverage by 2024 Parity in top governing bodies by 2030 Key 100% renewables by 2030 33% women executives by 2024 Zero-tolerance of corruption targets 2
Slide 8: Spain
Spain Convergent KPIs Revenue & OIBDA growth (y-o-y organic) CL 9 years ARPU (€) Churn (%) +34% Revenue Retail Rev. OIBDA Growth in convergence and TV +0.5% y-o-y Improved financials 1.7% 2.4% 90.1 90.3 92.6 91.5 90.6 0.9% 1.9% 1.0% 0.2% 0.2% 0.3% 0.3% 1.2% Successful refreshed B2C offer (Q3) 1.0% 0
Slide 9: Brazil
Brazil Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Solid operating & financial Mobile contract share Contract FTTH Revenue OIBDA performance 43.5% 43.7% 43.6% 41.7% 41.8% 12.3% 12.1% 10.6% 10.1% 9.5% 11.1% 11.6% Leading contract & FTTH market share (44% & 17%) 18% 21% 18% 19% 15%
Slide 10: Germany
Germany Postpay net adds (k) Revenue & OIBDA organic growth 396 Revenue OIBDA Robust commercial traction 368 304 302 & improved operating leverage 264 8.0% 6.6% 6.6% 6.0% 4.2% 4.4% Strong trading momentum driven by 3.6% ‘value-over-volume’ focus & 2.8% 2.2% 1.7% normalised churn Q3 22 Q4 22 Q1 23 Q2
Slide 11: Virgin Media O2
Virgin Media O2 Fixed network build (k PPs) Revenue & OIBDA growth (y-o-y organic) UBB PPs 16.7m 251 Revenue OIBDA Improved trading and main 9.9% financials 188 175 8.1% 7.1% 6.2% 6.3% 115 Customer growth in fixed and mobile 108 3.9% 3.7% 1.4% 0.4% 251k PPs, 9M: >500k PPs (0.6%) 5G connectivity >3,2
Slide 12: T. Tech, leading provider of advanced NextGen solutions in B2B
T. Tech, leading provider of advanced NextGen solutions in B2B T. Tech Revenue (€m) Operational Highlights Strong commercial activity & solid position in customers y-o-y 14.4% 30.0% • LTM Bookings growth ~+26% y-o-y 1,327 Continued consolidating new operating model • Global Services Lines to enhance
Slide 13: T. Infra, top-tier infrastructure portfolio
T. Infra, top-tier infrastructure portfolio Boosting penetration in FTTH Best-in class international connectivity infrastructure 19 20 13 15 ~30 10 Total FTTH Premises Passed1 (m) 2026E Dec-21 Dec-22 Mar-23 Jun-23 Sep-23 Valuable portfolio, efficient wholesale vehicles Maintaining solid profitabilit
Slide 14: Q3 23 Results
Q3 23 Results Mrs. Laura Abasolo CFCO & Head of T. Hispam
Slide 15: T. Hispam
T. Hispam Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH & Cable Revenue OIBDA Continued execution 19% 18% 18% 16% 3.8% 12% 2.8% 1.6% Progressing in reducing exposure to the region: 1.2% MOU in COL approved (share mobile infrastructure) 5% 4% 4% (1.5%) (0.4%) 3% 3% (3.9
Slide 16: Strong FCF generation, sound liquidity and contained cost
Strong FCF generation, sound liquidity and contained cost Net Financial Debt ND/OIBDAaL ND/OIBDAaL 2.62x 2.51x 27,479 (1,130) 258 220 (362) 87 (15) 26,537 Jun-23 FCF Shareholder Pre-retirement Hybrids Net financial FX & Sep-23 Remuneration commitments investments Others Comfortable liquidity positio
Slide 17: Conclusions
Conclusions Mr. Ángel Vilá COO
Slide 18: We delivered another solid quarter
We delivered another solid quarter • Steady revenue and OIBDA growth (organic y-o-y) • Accelerating OIBDA-CapEx to +9.3% (organic y-o-y) • Stronger KPIs (FTTH accesses, 5G penetration), improving customer satisfaction (churn, NPS) • Ongoing technology transformation; promoting AI, ML; bringing benef
Slide 19: A List
A List Bloomberg Member of DJSI 1st in sector 1st company worldwide in 2022 2022 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.com) Tors