T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q3 2021 Earnings Presentation
23 slides from T-mobile Us's earnings presentation, Nov 2, 2021
Slide 1: Investor Factbook Q3 2021
TOGETHER WE ARE UNSTOPPABLE _INVESTOR m= fm FACTBOOK Q3 2021
Slide 2: Postpaid net customer additions and churn commentary
▪ ▪ ▪ Sequentially, the decrease was primarily due to seasonally higher churn, mostly offset by higher gross additions. ▪ Year-over-year, the decrease was primarily due to elevated gross additions in the prior period related to the public and educational sector during the Pandemic, as well as higher
Slide 3: Postpaid Phone Churn
1.03% — y 9g0 0.96% 0.90% 0.87%
Slide 4: Postpaid phone ARPU and accounts commentary
0.9% partially offset by higher premium services including Magenta MAX. We now expect Postpaid phone ARPU for Q4 2021 to be relatively flat compared to the prior quarter and full-year 2021 to be relatively flat compared to full-year 2020. Year-over-year, the increase was driven by higher premium ser
Slide 5: Postpaid Accounts and Postpaid ARPA
$133.03 $133.08 $132.91 $133.55 $134.54 25,623 25,754 26,014 26,363 26,901 Postpaid Accounts Postpaid ARPA.
Slide 6: Prepaid net additions and churn commentary
ncrease in premium services ▪ elevated gross additions in the prior period related to the public and educational sector during the Pandemic. Prepaid net customer additions were 66 thousand in Q3 2021, compared to net additions of 76 thousand in Q2 2021 and net additions of 56 thousand in Q3 2020. ▪
Slide 7: Total Net Customer Additions
100,362 102,064 103,437 104,789 106,920 2,035 1,702 1,361 1,352 1,325 Total Net Customer Additions Total Customer
Slide 8: Service and equipment revenues commentary
2% $14.5 billion in Q2 2021 and up 4% from $14.1 billion in Q3 2020. ▪ ▪ ▪ ▪ Year-over-year, primarily due to: ▪ Equipment sales: An increase due to a average revenue per device sold, driven by a higher mix of phone versus other devices, and an increase in the number of devices sold, . ▪ Service rev
Slide 9: Equipment sales and lease revenues
$5,973 $5,346 $5,215 $4,953 $1,041 [I so14 [anaunae $4,305 $4,301 $3,603 ata Equipment sales i Lease revenues
Slide 10: Cost of services and equipment sales commentary
tization (D&A), was $3.5 billion in Q3 2021, up 1% from $3.5 billion in Q2 2021 and up 7% from $3.3 billion in Q3 2020. ▪ Sequentially, Cost of services was relatively flat. ▪ Year-over-year, the increase was primarily due to higher Merger-related costs and higher lease expenses related to a new tow
Slide 11: Cost of equipment sales
$5,825 $4,367 121.2% 123.1% 149.0% 124.8% 126.2% é e La eo Cost of Equipment sales, excl. D&A and Merger-related costs Is Merger-related costs —O— % of Equipment sales, excl. D&A and Merger-related costs
Slide 12: SG&A expense and bad debt commentary
as $5.2 billion i ▪ e $440 million i ▪ sequentially and decreased 60 basis points year-over-year. ▪ Tot D&A w $842 million i ▪ ▪ Selling, general and administrative (SG&A) expense w n Q3 2021, up 8% from $4.8 billion in Q2 2021 and up 7% from $4.9 billion in Q3 2020. ▪ Sequentially and year-over-yea
Slide 13: SG&A expense
$4,150 $4,219 $4289 6 97 g4.145 sane I soe se 22.3% 22.8% 23.9% 223% 23.0% es e e —O- © e Non-lease Related HE sLease Related —O— % of Srvc rev, excl. Lease related
Slide 14: Diluted Earnings Per Share (Diluted EPS)
Diluted Earnings Per Share (Diluted EPS)
Slide 15: Net income, diluted EPS and tax rate commentary
▪ partially offset by lower Cost of equipment sales, lower Tax expense and higher Service revenues. ▪ Year-over-year, the decrease in Net income and diluted EPS was primarily driven by higher Cost of equipment sales, higher SG&A, lower Equipment revenues and higher Cost of services, partially offset
Slide 16: Core Adjusted EBITDA and cash flow commentary
excluding Merger-related costs es, mostly offset by lower Equipment revenues, excluding Lease revenues, and higher SG&A expense, excluding Merger-related costs. es and higher Equipment revenues, excluding Lease revenues, mostly offset by excluding Merger-related costs. ▪ ▪ ▪ Core Adjusted EBITDA was
Slide 17: Net cash provided by operating activities
3,661 _ 93,779 3,474 $3,477 $2,772
Slide 18: Cash purchases of property and equipment and Free Cash Flow
▪ Sequentially and year-over year, the decrease was primarily driven by procurement savings from our increased scale and timing of cash payments for equipment. ▪ Sequentially, the decrease was primarily due to lower Net cash provided by operating activities, partially offset by lower Cash purchases
Slide 19: Free Cash Flow
$1,671 $1,559 $1,304 $476 $352
Slide 20: Debt, leverage and financing activity
▪ The ratio of net debt, excluding tower obligations, to Pro Forma Core Adjusted EBITDA for the last twelve months (“LTM”) period was 3.0x at the end of Q3 2021 compared to 3.0x at the end of Q2 2021. ▪ The ratio of net debt, excluding tower obligations, to Pro Forma Adjusted EBITDA for the LTM peri
Slide 21: Further Extending Our 5G Leadership
Further Extending Our 5G Leadership ‘- Mobile 5G Coverage EXTENDED [Wise 3 RANGE 5G cee za =§6=— 308M POPs | . 7M ree er alles} ULTRA AB G CAPACITY MORE 5G geographic coverage Mid-band and Millimeter Wave than Verizon and AT&T combined 1 90M PO Ps 400 Mbps Deliver MID BAND 5G COVERAGE & SPECTRUM DEP
Slide 22: Recognized as the 5G Leader
Recognized as the 5G Leader T-Mobile’s 5G is 2x faster than AT&T and Verizon and has the highest 5G availability globally with average speeds that have increased 36% since last quarter - October 2021 OPENSIGNAL T-Mobile is ranked first or tied for first across all network performance categories meas
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