Slide 1: Investor Factbook Q1 2017
EXHIBIT 99.2 ‘[ --Mobile~ investor Factbook Q1 2017 REWRITING THE RULES. FORCING
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Slide 3: T-Mobile US Reports First Quarter 2017 Results
T-Mobile US, Inc. Investor Factbook T-Mobile US Reports First Quarter 2017 Results T-Mobile Celebrates 4 Years as a Public Company with Industry Leading Customer & Financial Growth and Game-Changing Spectrum Auction Results 1.1 Million Customer Net Additions, Record-Low Churn of 1.18%, and 11% Growt
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Slide 5: Customer Metrics
CUSTOMER METRICS Total Branded Postpaid Net Additions Branded Postpaid Customers (in thousands) ▪ Branded postpaid phone net customer additions were 798,000 in Q1 2017 compared to 933,000 in Q4 2016 and 877,000 in Q1 2016. This is expected to mark the 13th consecutive quarter that T-Mobile has led t
Slide 6: Customer Metrics (continued)
the customers transferred had a higher rate of churn. 3
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Slide 8: Branded Prepaid Net Additions and Customers
Total Branded Prepaid Net Additions Branded Prepaid Customers (in thousands) ▪ Branded prepaid net customer additions were 386,000 in Q1 2017, compared to 541,000 in Q4 2016 and 807,000 in Q1 2016. ▪ The sequential decrease was primarily due to lower gross additions from increased competitive activi
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branded net customer additions surpassed the one million milestone. 4
Slide 10: Wholesale and Total Net Additions
Wholesale Customers Wholesale Net Additions ▪ Wholesale net customer losses were 158,000 in Q1 2017 (in thousands) compared to net additions of 363,000 in Q4 2016 and net additions of 373,000 in Q1 2016. ▪ Sequentially, the decrease was primarily due to lower gross customer additions. ▪ Year-over-ye
Slide 11: Network: Broadcast Incentive Auction Update
NETWORK Depth of T-Mobile's Nationwide Low-Band Broadcast Incentive Auction Update Spectrum (600 MHz and 700 MHz) ▪ On April 13, 2017, the FCC announced the results of the broadcast incentive auction which showed that T-Mobile has committed to purchase a nationwide average of 31 MHz of 600 MHz low-b
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Slide 13: Spectrum Ownership and Growth
T-Mobile Average Spectrum Spectrum Growth Ownership, All Markets ▪ In Q1 2017, T-Mobile closed on the previously announced (Band, in MHz) transaction for 700 MHz A-Block spectrum in Eastern Montana, bringing its total low-band spectrum holdings to 272 million POPs. ▪ At the end of Q1 2017, T-Mobile
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Slide 15: Network Capacity Growth
Network Capacity Growth ▪ T-Mobile continues to expand its capacity through the re- farming of existing spectrum and implementation of new technologies including Voice over LTE ("VoLTE"), Carrier Aggregation, 4x4 MIMO, and 256 Quadrature Amplitude Modulation ("QAM"). ▪ At the end of Q1 2017, approxi
Slide 16: Network Speed Leadership
Average 4G LTE Download and Network Speed Leadership Upload Speeds - 1Q17 (in Mbps, D/L at Base, U/L at Top) ▪ T-Mobile continues to have the fastest nationwide 4G LTE network in the U.S. based on both download and upload speeds from millions of user-generated tests. This is the thirteenth consecuti
Slide 17: Un-carrier Initiatives and Devices
UN-CARRIER INITIATIVES Un-carrier Updates ▪ Un-carrier Next: On January 5, 2017, T-Mobile announced that it would go "All In" on Unlimited by making T-Mobile ONE the only postpaid consumer plan available at the Un-carrier. Existing customers can remain on their current plans at their current pricing
Slide 18: Device Financing
DEVICE FINANCING Total EIP Receivables, net and QoQ Equipment Installment Plans (EIP) Change in Total EIP Receivables ▪ T-Mobile provided $1.339 billion in gross EIP device ($ in millions) financing to its customers in Q1 2017, down 31.5% from $1.956 billion in Q4 2016 and up 7.5% from $1.246 billio
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Slide 20: Leased Devices and Lease Revenues
▪ Leased devices included in property and equipment, net were $1.097 billion at the end of Q1 2017, compared to $1.431 billion at the end of Q4 2016 and $2.223 billion at the end of Q1 2016. ▪ Lease revenues were $324 million in Q1 2017, compared to $354 million in Q4 2016 and $342 million in Q1 201
Slide 21: Customer Quality
CUSTOMER QUALITY Total Bad Debt Expense and Losses from ▪ Total bad debt expense and losses from sales of receivables was $188 million in Q1 2017, compared to $190 Sales of Receivables million in Q4 2016 and $173 million in Q1 2016. ($ in millions, % of Total Revs (1)) ▪ As a percentage of total rev
Slide 22: Operating Metrics: Branded Postpaid Phone ARPU
OPERATING METRICS Branded Postpaid Phone ARPU Branded Postpaid Phone ARPU ($ per month) ▪ Branded postpaid phone ARPU was $47.53 in Q1 2017, down 1.7% from $48.37 in Q4 2016 and up 2.9% from $46.21 in Q1 2016. ▪ Sequentially, the positive impact of growth in T-Mobile ONE rate plans and benefits from
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Slide 24: Customers per Account and Prepaid ARPU
Branded Postpaid Customers per AccountBranded Postpaid Customers per Account ▪ Branded postpaid customers per account was 2.88 at the end of Q1 2017, compared to 2.86 at the end of Q4 2016 and 2.59 at the end of Q1 2016. ▪ Sequentially, the slight increase was primarily due to growth of customers on
Slide 25: Revenues: Service Revenues
REVENUES Service Revenue Growth at Service Revenues Wireless Peers ▪ T-Mobile is expected to once again lead the industry in (YoY % Growth) year-over-year service revenue percentage growth in Q1 th 2017. This is expected to mark the 12 consecutive quarter that T-Mobile has led the industry in this m
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Slide 27: Equipment Revenues
Equipment Revenues Equipment Revenues ($ in millions) ▪ Equipment revenues were $2.043 billion in Q1 2017, down 25.4% from $2.740 billion in Q4 2016 and up 10.4% from $1.851 billion in Q1 2016. Equipment revenues in Q1 2017 were comprised of lease revenues of $324 million and non- lease revenues of
Slide 28: Total Revenues
▪ The year-over-year increase was primarily due to higher service revenues and equipment revenues. 16
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Slide 30: Operating Expenses
OPERATING EXPENSES Cost of Services Cost of Services ($ in millions, % of Service Revs) ▪ Cost of services was $1.408 billion in Q1 2017, down 2.6% from $1.445 billion in Q4 2016 and down 0.9% from $1.421 billion in Q1 2016. ▪ Sequentially, the decreased was primarily due to lower regulatory program
Slide 31: Cost of Equipment Sales (continued)
cost of equipment sales. Returned devices transferred from Property and equipment, net are recorded as inventory and are valued at the lower of cost or market with any write-down to market recognized as cost of equipment sales. 17
Slide 32: SG&A Expense and D&A Expense
SG&A Expense ($ in millions, % of Service Revs) Selling, General and Admin. (SG&A) Expense ▪ SG&A expense was $2.955 billion in Q1 2017, down 0.1% from $2.959 billion in Q4 2016 and up 7.5% from $2.749 billion in Q1 2016. ▪ Sequentially, the slight decrease was primarily due to a seasonally lower vo
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Slide 34: Net Income and Earnings per Share
NET INCOME AND EARNINGS PER Net Income SHARE ($ in millions) ▪ Net income was $698 million in Q1 2017, up 79.0% from $390 million in Q4 2016 and up 45.7% from $479 million in Q1 2016. ▪ Earnings per share was $0.80 in Q1 2017 up from $0.45 in Q4 2016 and $0.56 in Q1 2016. ▪ Sequentially, the increas
Slide 35: Net Income and EPS (continued)
9.5% in Q1 2017 compared to 7.3% in Q1 2016. Net income, excluding the $270 million net tax benefits in Q1 2017 and $23 million after-tax spectrum gains recognized in Q1 2017 and Q1 2016, as a percentage of service revenue was 5.5% in Q1 2017, up from 1.1% in Q1 2016. 19
Slide 36: Adjusted EBITDA
ADJUSTED EBITDA Adjusted EBITDA(1) ▪ Adjusted EBITDA was $2.668 billion in Q1 2017, up 2.3% ($ in millions) from $2.607 billion in Q4 2016 and down 5.2% from $2.814 billion in Q1 2016. ▪ In Q1 2017, we implemented a previously announced change in presentation related to imputed interest associated w
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Slide 38: Capital Expenditures
CAPITAL EXPENDITURES Cash Capital Expenditures ▪ Cash capital expenditures for property and equipment ($ in millions, % of Service Revs) were $1.528 billion in Q1 2017, compared to $0.859 billion in Q4 2016 and $1.335 billion in Q1 2016. The sequential and year-over-year increases were due primarily
Slide 39: Cash Flow
CASH FLOW Net Cash Provided by Operating Activities Operating Activities ($ in millions) ▪ Net cash provided by operating activities was $1.713 billion in Q1 2017, compared to $1.602 billion in Q4 2016 and $1.025 billion in Q1 2016. ▪ Sequentially, the increase was primarily due to changes in workin
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Slide 41: Free Cash Flow
Net Cash Provided by (Used in) Financing Activities Financing Activities ▪ Cash provided by financing activities was an inflow of ($ in millions) $1.838 billion in Q1 2017 compared to an outflow of $160 million in Q4 2016 and an outflow of $100 million in Q1 2016. ▪ Sequentially and year-over-year,
Slide 42: Free Cash Flow (continued)
and accrued liabilities was $651 million in Q1 2017 compared to $492 million in Q1 2016. The increase in cash provided by operating activities was partially offset by higher purchases of property and equipment from the build-out of our 4G LTE network. 23
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Slide 44: Capital Structure
CAPITAL STRUCTURE Total Debt and Net Debt (excl. Tower ▪ Total debt, excluding tower obligations, at the end of Q1 Obligations) 2017 was $30.247 billion and was comprised of short-term (1) ($ in billions, Net Debt to LTM Adj. EBITDA ) debt of $7.542 billion, long-term debt to affiliates of $9.600 bi
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spectrum auction. 24
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Slide 47: Guidance
GUIDANCE 2017 Guidance Outlook ▪ Branded postpaid net customer additions for the full-year 2017 are expected to be between 2.8 and 3.5 million, an Q1 2017 increase from the original guidance range of 2.4 and 3.4 Original Update million. Branded Postpaid Net Additions 2.4 - 3.4 2.8 - 3.5 (in millions
Slide 48: Guidance (continued)
including call premiums of $267 million. Excluding the call premiums, the normalized run-rate for the year will be $1.8 to $1.9 billion. 25
Slide 49: Upcoming Events and Contact Information
UPCOMING EVENTS (All dates and attendance tentative) ▪ 4th Annual MoffettNathanson Media & Communications Summit, May 17-18, New York, NY ▪ 2017 JP Morgan TMT 45th Annual Conference, May 22-24, Boston, MA ▪ Barclays High Yield Bond and Syndicated Loan Conference, June 7-9, Colorado Springs, CO CONTA
Slide 50: Effect of Change in Accounting Principle
T-Mobile US, Inc. Effect of Change in Accounting Principle (Unaudited) Effective January 1, 2017, we began presenting the amortization of the imputed discount on our Equipment Installment Plan (“EIP”) receivables as Other revenue on our Condensed Consolidated Statements of Comprehensive Income. Prio
Slide 51: Condensed Consolidated Balance Sheets
T-Mobile US, Inc. Condensed Consolidated Balance Sheets (Unaudited) March 31, December 31, (in millions, except share and per share amounts) 2017 2016 Assets Current assets Cash and cash equivalents $ 7,501 $ 5,500 Accounts receivable, net of allowances of $100 and $102 1,851 1,896 Equipment install
Slide 52: Condensed Consolidated Statements of Comprehensive Income
T-Mobile US, Inc. Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31, December 31, March 31, 2017 2016 2016 (in millions, except share and per share amounts) As Adjusted (1) As Adjusted (1) Revenues Branded postpaid revenues $ 4,725 $ 4,680 $ 4,302 Bran
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Slide 54: Condensed Consolidated Statements of Cash Flows
T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, December 31, March 31, (in millions) 2017 2016 2016 Operating activities Net income $ 698 $ 390 $ 479 Adjustments to reconcile net income to net cash provided by operating activities Depreciati
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Slide 56: Supplementary Operating and Financial Data
T-Mobile US, Inc. Supplementary Operating and Financial Data Quarter (in thousands) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Customers, end of period Branded postpaid phone customers 30,232 30,878 30,364 31,297 32,095 Branded postpaid mobile broadband customers 2,504 2,748 2,866 3,130 3,246 Total bra
Slide 57: Supplementary Operating and Financial Data (continued)
T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) Quarter Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Financial Metrics Service revenues (in millions) $6,578 $6,888 $7,133 $7,245 $7,329 Total revenues (in millions) (1) $8,664 $9,287 $9,305 $10,234 $9,613 Net income (in millions) $
Slide 58: Reconciliation of Non-GAAP Financial Measures to GAAP
T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (Unaudited) This Investor Factbook includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance
Slide 59: Reconciliation of Non-GAAP Financial Measures (continued)
T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Free cash flow is calculated as follows: Quarter (in millions) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Net cash provided by operating activities $ 1,025 $ 1,768 $ 1,740 $ 1,602 $ 1,713
Slide 60: Definitions of Terms
Definitions of Terms Operating and financial measures are utilized by T-Mobile's management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although companies in the wireless industry may not define measures in precisely the same way, T-Mobile
Slide 61: Forward-Looking Statements
Forward-Looking Statements This Investor Factbook includes "forward-looking statements" within the meaning of the U.S. federal securities laws. Any statements made herein that are not statements of historical fact, including statements about T-Mobile's plans, outlook, beliefs, opinion, projections,