Telefonica S.A. — Investor Presentation 2022

May 12, 2022

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Q1 22 Results

Mr. Ángel Vilá COO

Strategy execution whilst delivering growth

Another quarter of sustainable revenue growth…

…allowing to manage inflationary pressures at a time of currency support

New operating model adding efficiencies

Reinforced position in core markets

• New miMovistar offer launched to accelerate B2C growth; DAZN agreement in Spain allows for 15% La Liga net cost deflation
• Brazil service revenue growth accelerates, reduced legacy exposure, Oi deal a game-changer
• Synergies starting to kick-off in VMO2; gigabit leadership

• Germany network quality consolidated, CapEx peak passed, growth and profitability momentum

• T. Infra, ongoing conversations with investors for Spain & UK fiberco vehicles

• T. Tech completing build-up of a fastgrowing business, acquisition of BE-terna in DACH market
• In-market consolidation prospects in Spain
• T. Hispam, higher profitability, reduced capital employed, more optionality

Sustained growth momentum delivers strong start to the year

Growth across the board

• Proven pricing power in most markets, protecting value
• B2B continues to thrive; digitalisation paying off
• OIBDA growth accelerates despite inflation

Strong commercial KPIs in key assets: fibre +20%; contract +5% y-o-y

• Increasing relevance of digital care; better productivity and UX

Strong FCF (up €480m vs Q1 21)

FX tailwinds

Key financial metrics

	Q1 22			Q1 22
€ in millions	Reported + 50% VMO2 JV	Organic y-o-y	€ in millions	Reported	Reported y-o-y
	10,883	3.2%	Revenue	9,410	(9.0%)
Revenue			OIBDA	3,199	(6.4%)
	3,753	2.1%	OIBDA Underlying	3,071	(12.1%)
OIBDA			Net Income	706	(20.3%)
OIBDA-CapEx (ex-spectrum)	2,435	6.4%	FCF (incl. leases principal payments)	513	n.s.
			Net Financial Debt ex-leases	27,453	(23.3%)

Positive FX impact FCF €53m, Debt -€1.3bn		Changes to the perimeter (VMO2, TLXS towers, C. Rica, El Salvador)
€ (m)	Q1 22	€ (m)	Q1 22
Revenue	242	Revenue	(1,592)
OIBDA	95	OIBDA	(588)

A stronger Telefonica for uncertain times, beating rising inflation

Well on track for 2022 guidance

2022 guidance

organic and including 50% of the JV in 2022 and 2021

	Targets		2021 Base	2022	Q1 22
	Revenue		€42,452m	"Low single digit growth"	3.2%
	OIBDA		€14,127m	"Low single digit growth"	2.1%
	CapEx/Sales (ex spectrum)		14.7%	Up to 15%	12.0%
	Shareholder remuneration
	2022 Dividend		€0.30/share
	Interim Dec-22		€0.15/sh. (cash)
Final Jun-23				€0.15/sh. (cash)

Progress towards ambitious sustainability goals

Environmental

Net-zero by 2040; Zero-waste by 2030; Avoid 12m tCO² emissions p.a. for customers by 2025

Reducing our carbon footprint:

• Telefónica Forest to absorb ~3,000 tCO²
• Distributed generation; 23 plants now open (80 planned) in Brazil

Promoting the Circular Economy:

• Roadmap launched for zero-waste target

Helping our stakeholders to decarbonise:

• Eco Rating (B2C) launched across all markets
• CDP 2021 Supplier Engagement Rating Leaderboard (TEF + VIVO)

90-97% MBB rural coverage by 2024¹ ; 33% female executives by 2024; Eliminate pay gap by 2050

Social

Connecting the unconnected:

• Continue to deploy FTTH to reach underserved areas
• 1 st time mobile coverage to 32 localities (ARG)
• 5G: towns of <3,000 inhabitants after 700MHz switch-on (Spain)

Committed to retaining and attracting talent:

• Equality Plans (Spain): equal opportunities & pay
• Workforce Disclosure Index (WDI): Only telco receiving special mention across all categories

Governance

(*parity defined o >€10bn sustainable financing; Zero-tolerance of corruption; Parity in main governing bodies by 2030

Increasing sustainability-linked financing:

• KPI-Linked Loan to Movistar Colombia

Highest standards of corporate governance:

• VMO2; equal gender and 25% ethnic background on leadership team by 2027

Leader in transparency:

• 2 nd in IBEX-35; Transparency International (Integrity, Compliance and Human Rights)

Spain

Revenue & OIBDA growth (y-o-y organic)

Q1 21 Q2 21 Q3 21 Q4 21 Q1 22

8

Germany

Postpay net adds (k)

Revenue & OIBDA organic growth

Delivering sustained operational and financial momentum

Contract net adds +30% y-o-y

Network parity

Strong revenue & OIBDA growth

2022 guidance reiterated

Virgin Media O2

Lightning build (k)

Postpay net adds (k)

Revenue & OIBDA growth (y-o-y organic)

Focus on innovation, network investment and synergy realisation

Implemented price rises

5G in 400 towns & cities

Gigabit leader

Stable revenue, OIBDA growth

2022 guidance reiterated

All organic according with Telefonica criteria

Accesses growth (y-o-y) 6% 8% 9% 8% 7% 41% 41% 39% 36% 29% Contract FTTH Q1 21 Q2 21 Q3 21 Q4 21 Q1 22

FTTH Premises passed (m)

Revenue & OIBDA growth (y-o-y organic)

+18.1% revenue / +14.6% OIBDA (€) Stable OIBDA-CapEx margin at 25% Strong reported growth at stable CF margins

Average Mb/s speed +57% y-o-y

Progress in offering best digital solutions

Closed Oi mobile assets acquisition

Oi mobile assets acquisition completed

✓ Acquired Oi mobile assets for a total price of ~€1.0bn (R\$5.4Bn) -including earn out-

• ~€1.0bn synergies NPV (R\$5.4Bn), mainly network and commercial costs & CapEx; not including potential revenue synergies

• In March 2022, Vivo's portion of Oi's assets generated ~€23m of monthly net revenues and we expect OIBDA and OIBDA-CapEx margin above 70%, considering synergies running-rate

• Reaffirming Vivo as LatAm's largest mobile customer base: 38% mobile M.S; 40% contract M.S.

• Consolidating Vivo's leadership in quality of service whilst allowing Vivo to reduce CapEx intensity

Tech build-up

Outstanding Global Capabilities

Tech, outperforming its market

Infra, driving value creation

15 ¹ Constant perimeter, excluding tower business 2 2 nd tranche of the transaction closing in Q2 22

Q1 22 Results

Mrs. Laura Abasolo CFCO & Head of T. Hispam

Hispam

FTTH & Cable Premises passed (m) 3% 8% 9% 8% 6% 25% 28% 26% 25% 22% Contract FTTH Q1 21 Q2 21 Q3 21 Q4 21 Q1 22

Accesses Growth (y-o-y) Revenue & OIBDA growth (y-o-y organic)

Growing while improving cash margins

Revs +9.7% & OIBDA +6.7% (€)(1)

4.4m FTTH connections (+22% y-o-y) on new CapEx models

Revenues growing in all countries

16

(1) Revenue and OIBDA adjusted for organic criteria ex FX related impacts

Strong Balance Sheet, prudent management

(1) Includes €5.5bn syndicated facility, €100m reopening of an existing Telefónica bond, BRL 1,000m bilateral loan signed by T. Brazil and a Cornerstone credit facility by GBP 0.5bn

Conclusions

Mr. Ángel Vilá COO

Strong start to the year

Sequential improvement in organic and reported growth across whole Group

Beating inflationary pressure, worst should be behind

FX tailwinds, Brazil and Hispam growing double-digit in € terms

Synergies materialisation in VMO2; sizeable Oi synergies to start flowing through

Good commercial momentum, boosting FTTH; increasing customer relevance and engagement Targeted CapEx; focused on NGN

Further optionality ahead

Well on track to meet 2022 guidance; 2022 dividend confirmed

Results presentation and Q&A Session

Telefónica's management will host a webcast on 12 May at 10:00 AM (CET), 9:00 AM (BST), and 4:00 AM (EST)

Participants from Telefónica

• Ángel Vilá l COO
• Laura Abasolo l CFCO & Head T. Hispam

• Lutz Schüler l CEO Virgin Media O2

• Eduardo Navarro l Chief Corporate Affairs & Sustainability Officer

• Adrián Zunzunegui l Global Director of Investor Relations

• To access the webcast: click here

• The webcast replay will be available on Telefónica IR's website after the event

• To participate in the Q&A session, please register using the following link to receive the dial in and PIN details. click here.

For further information, please contact: Investor Relations 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