Telefonica S.A.

Investor Presentation • May 9, 2024

Results 2024 Q1

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Q1 24 Summary

Mr. Ángel Vilá COO

Solid start to the year, clear opportunities ahead

Accelerating revenue and EBITDA growth

Sustained momentum; consistent growth in core markets Spain, Brazil and Germany

Record low churn levels in Spain and Brazil, reflecting superior value proposition. Germany at 1%.

Enhancing customer experience through state-of-the-art networks turns into increased satisfaction

Reiterating 2024 outlook

Q1 highlights Near-term opportunities

• New long-term mobile network agreement with DIGI; NB MOU signed

• Negotiation underway on potential Concession to Authorisation regime migration

• Spectrum extension expected scenario

• UK NetCo carve-out advisors appointed, accelerating fibre build and receiving strong interest from infra investors

Stronger Telefonica, Q1 main achievements

Next Generation NETWORKS

Enhanced CUSTOMER experience focus

Leaner OPERATIONS

• Fibre growth, +9m FTTH PPs y-o-y to 77m
• T. Infra FTTH PPs, +7m y-o-y to 22m
• More 5G, 63% coverage core markets
• Al Centre of Excellence in all OBs
• More softwarisation, 1st core function in public cloud (GER)
• Growing customers, +5m y-o-y to 388m
• Higher satisfaction, 31 NPS score
• Lowest ever churn in Spain and Brazil, Germany at 1%
• AI for automation, 650 use cases
• Evolving revenue mix, more digital services and connectivity
• Scaling B2C digital ecosystem
• Spain copper switch-off (4,272 COs closed since 2014)
• T. DE delisting (96.85% stake)
• Higher efficiencies to come from Q2 (costs savings in Spain)

3

Telefonica Group: solid Q1 results

Revenue €10.1bn	Service Revenue €9.1bn	B2B Revenue €2.2bn	B2C Revenue €6.2bn	• Growth • •	High quality accesses (FTTH +12%, mobile contract +3%) Top-line ramping up, +1.4 p.p. q-o-q Service revenue +3.1 p.p. q-o-q
+0.9% y-o-y	+2.3% y-o-y	+2.8% y-o-y	+0.8% y-o-y
	EBITDA	CapEx/		• Profitability • •	Accelerating EBITDA; +0.4 p.p. q-o-q mainly on BZ & GER EBITDAaL-CapEx margin stable y-o-y Higher efficiencies to come from Q2
EBITDA	Margin	Sales	FCF
€3.2bn	31.6%	10.4%	-€41m	•	FCF generation well on track to FY guidance
+1.9% y-o-y	+0.3 p.p.	+0.2 p.p.	+€43m 1 y-o-y	Sustainability • •	Progress on ESG pillars Leading the sector towards a deregulated environment

4

Q1 24 Geographies & Units

Mr. Ángel Vilá COO

Spain: Solid trading and efficiencies to further accelerate EBITDA growth

Highlights

• Growth in main accesses for 3 straight Qs
• Convergent churn at all-time lows, gross adds up y-o-y (1st time since Q2 21)
• Continued revenue growth: solid B2B, stable B2C
• Redundancy savings to fuel higher EBITDA growth from Q2 (savings accounted since 1st of March)
• C. 450k FTTH PPs under contained CapEx (10.8% of revenue)
• New long-term mobile network agreement with DIGI: NB MOU signed

Brazil: Strong operating performance leading growth

FTTH Premises passed (m)

Revenue & EBITDA growth (y-o-y)

Margins

Highlights

• Outstanding growth
• Lowest ever contract churn (0.97%); ARPU +9.4%
• FTTH accesses +12% y-o-y; ARPU +6%
• 1.5m Vivo Total (FTTH+mobile offer): +111%
• Building digital ecosystem: OTT subscriptions +14%
• Contract revenue +16% on commercials & price rises
• OpEx growth < revenue despite digital services' costs
• Benchmark EBITDAaL-CapEx margin at 17.7%

Germany: Ongoing operational and EBITDA momentum

Revenue EBITDA 8.0% 4.4% 2.2% 4.6% (0.1%) 1.7% 2.8% 3.6% 3.7% 5.0%

Revenue & EBITDA growth (y-o-y)

Highlights

• Solid start into the year
• >95% 5G pop coverage
• Strong own brand performance (O² contract churn 1.0%)
• Sustained MSR momentum (+2.3% y-o-y ex MTR)
• Better operating leverage; EBITDA +5.0%, EBITDAaL-CapEx +14.3%
• Improved energy consumption, -83% (from 2015)

Fixed BB net adds (k)

Margins

Virgin Media O2: setting up for 2024 execution with focused investments

Mobile contract churn (%)

Revenue & EBITDA growth (y-o-y)

Margins

Highlights

• Ramping up fibre, 80% increase in build pace y-o-y
• Targeted launch of 5G standalone in 14 cities
• Stabilisation of fixed customer ARPU
• Contract churn remains at low levels of 1.2%
• Improved service revenue growth across mobile and consumer fixed
• Handset revenue decline as primary driver of revenue pressure
• O2 Recycle initiative expanded its scope to new devices

T. Tech, double-digit growth while reinforcing capabilities and credentials

Revenue

Differential profile

Double-digit growth to further improve as from Q2 on strong backlog Well balanced revenue mix (value added services and currency) Strong commercial activity

• Bookings growth driven by Private sector (Financial, Healthcare, Manufacturing)
• Large relevant deals closed in Q1 to support customers' critical processes
• Commercial Funnel growing at double digit, more revenue visibility

Gaining relevance in higher-growth markets, proven skills

• GSL expanding capabilities across markets
  • NextDefense (Cybersecurity) launch in UK and first contract closed
• 6.3k professionals (80% Europe) >85% in delivery & sales; ~4k certifications

New recognitions

Leader: Magic Quadrant Managed IoT Connectivity Services (for 10th consecutive year) Very Strong: Managed Security Services in the Competitive Landscape Assessment

T. Infra, a global connectivity platform to lead change

Accelerating FTTH deployment

Total FTTH Premises Passed¹ (m)

̴30% of 23-26 of TEF's FTTH rollout Increasing network differentiation and capabilities

Critical digital infrastructure

y-o-y

Q1 24 T. Hispam, financials, ESG

Mrs. Laura Abasolo CFCO & Head of T. Hispam

Hispam: Helping to build a more rational ecosystem

Accesses growth (y-o-y)

Revenue & EBITDA growth (y-o-y)

FTTH & Cable PPs (m)

Margins

Highlights

• Pushing towards healthier competition
• Softer mobile commercial activity (rationality focus)
• ONNET Chile agreement with VTR/Claro & Entel
• Leading B2B NPS on better value proposition
• € reported financials hit by FX
• Underlying trends unchanged
• Better trends expected in H2 24 on revenue improvement in Chile and Peru and efficiencies
• Invested capital -32% vs. Dec-19
• COL and MEX growing y-o-y in Revenue & EBITDA

FCF phasing fully aligned with expectations; 2024 guidance reaffirmed

FCF to improve throughout the year; 2024 guidance reaffirmed

• Q1 24 affected by usual EBITDAaL seasonality and working capital consumption

• Q1 23 working capital included +€75m in Brazil from tax assets monetisation
• Q1 fully in-line with expectations and 2024 guidance reaffirmed

Solid balance sheet reflects T. DE shares acquisition

ESG key to realising our GPS targets

• Scope 3 efficiencies

Included on CDP Supplier Engagement Leaderboard for 5th consecutive year

• Growth via eco-solutions

Eco Smart, our portfolio for B2B customers, named Champion Project by ITU

• Talent management via diversity

33.1% women executives; +858 persons with disabilities vs. Q1 23

• Protecting customers from Cyber attacks

Blocked ~320m cybersecurity threats for SMEs and retail customers in Spain

• Shareholder confidence

All BoD proposed resolutions approved at AGM

• Facilitating access to financing

Issuance of a two tranche-senior green bond and a green hybrid

AI governance; building on AI principles since 2018

Key takeaways

Mr. Ángel Vilá COO

Guidance 2024: accelerate FCF delivery even after better 2023

	2024 Guidance	On Track to Deliver	2023-26 CAGR
Revenue y-o-y reported	~1%	✓	~1% B2C ~1.5%; B2B ~5%
EBITDA y-o-y reported	1% to 2%	✓	~2%
EBITDAaL - CapEx y-o-y reported	1% to 2%	✓	5%
CapEx / Sales	Up to 13%	✓	<12%
FCF y-o-y reported	>10%	✓	>10%
Cash Dividend	€0.3/share ✓ 2 tranches €0.15;Dec-24, Jun-25		€0.3/share floor
Leverage	Reduced	✓	2.2-2.5x (2026)

Strong start to the year, near term catalysts

Delivered solid Q1 results, firmly on track for 2024 guidance and 2023-2026 plan (FCF CAGR >10%)

Robust commercial performance, Spain EBITDA improvement, maintaining strength in Brazil & Germany

4

5

Investing in next-generation networks to elevate customer experience and drive growth

Streamlining operations through digitalisation, efficiencies, hyper automation and legacy network shutdowns

Disciplined capital allocation: deleveraging towards targets, sustainable dividend, focused growth CapEx

6 Positive near-term catalysts in all core markets

• Spain: NB MOU signed with DIGI for a new long-term mobile network agreement
• Brazil: Negotiating potential regime migration from Concession to Authorisation
• Germany:spectrum extension as expected scenario
• UK: NetCo carve-out advisors appointed, fibre build accelerating, strong interest from investors

Results presentation and Q&A Session

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

Participants from Telefónica

• Ángel Vilá l COO
• Laura Abasolo l CFCO & Head T. Hispam
• Markus Haas l CEO Telefónica Deutschland
• 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

Climate A List 2023

Bloomberg GEI 2023

Member of DJSI

Europe

Ranking
Digita
Rights

st in sector 2022

1

1 st company worldwide in 2023 Digital Inclusion Benchmark

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

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