Telefonica S.A.

Investor Presentation • Feb 27, 2025

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Disclaimer

This document and any related conference call or webcast (including any related Q&A session) has been prepared by Telefónica, S.A. ("Telefónica" or the "Company", and together with its subsidiaries the "Telefónica Group") exclusively for its use during the presentation of financial results. The Company does not assume any liability for the content of this document if used for any purposes different from the one outlined above.

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Any such forward-looking statements reflect the current views of the Telefónica Group's management and may change over time. They do not intend to be exhaustive, and they have not been verified or audited by any third party. Telefónica's opinions and aspirations with respect to future events do not represent any guarantee of future fulfilment or profitability, and they are subject to risks and uncertainties that could cause the final developments and results to materially differ from those expressed or implied by such forward-looking statements. These risks and uncertainties include those identified in the documents containing more comprehensive information filed by Telefónica with the relevant supervisory authorities of the securities markets in which its shares are listed and, in particular, the Spanish National Securities Market Commission ("CNMV") and the U.S. Securities and Exchange Commission ("SEC").

You are cautioned not to place undue reliance on any forward-looking statements contained in this document and any related conference call or webcast (including any related Q&A session). Except as required by applicable law, Telefónica does not assume any obligation to publicly update the forward-looking statements to adapt them to events or circumstances taking place after the date hereof, including, among others, changes in the Telefónica's Group business, changes in its business development strategy or any other circumstances.

This document and any related conference call or webcast (including any related Q&A session) may contain summarised, non-audited or non-IFRS financial information Such information may not be prepared in accordance with the financial reporting requirements established by the SEC, is presented for supplemental informational purposes only and should not be considered a substitute for audited financial information presented in accordance with IFRS. The Company's non-IFRS financial measures may differ from similarly titled measures used by other companies. In addition, there are material limitations associated with the use of non-IFRS financial measures since they exclude significant expenses and income that are recorded in the Company's financial statements. Information related to any alternative performance measures (APMs) used in this presentation are included in Telefónica's consolidated financial statements and consolidated management report 2024, submitted to the CNMV, in Note 2, page 15 of the .pdf filed. Recipients of this document are invited to read it. This document also contains sustainability information, that may include environmental, social and governance-related metrics, statements, goals, commitments and opinions. The sustainability information has been prepared with various materiality analyses, estimates, assumptions and data collection and verification practices and methodologies, both external and internal, which may differ from those used by other companies.

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Opening Remarks

Mr. Marc Murtra Chairman & CEO

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Telefónica today: building on strong foundations

390m customers World-class infrastructure Management skills and know-how 390m customers World-class infrastructure Management skills and know-how

A new time in Europe

A new context

Strategic Autonomy

Technological disruption Via AI and others

More Euro-centric decisions

Priorities

Industrial rationale

Focus on core markets & activities Efficient capital allocation

Consolidation Driving future growth

Commitments

FCF is king Drive business performance

Conduct strategic review Conclude in H2 25

Financial discipline

To create sustainable shareholder value

Q4 24 & FY 24 Summary

Mr. Ángel Vilá COO

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2024: Delivered on guidance

Guidance met; FCF of €2.6bn, +14.1% y-o-y, with all 2024 guidance metrics achieved

Core markets momentum; growth across Spain, Germany, UK and Brazil with improved customer metrics

Network leadership strengthened; 84.6m PPs with FTTH, 74% 5G coverage across core markets

Operational excellence; Industry-leading CapEx/Revenue ratio of 12.9%, successful legacy network decommissioning

Financial position enhanced: Reduced leverage back to below 2.6x, dividend well covered

	2024 Guidance	FY 24
Revenue y-o-y reported	~1%	+1.6%
EBITDA y-o-y reported	1% to 2%	+1.2%
EBITDAaL - CapEx y-o-y reported	1% to 2%	+1.6%
CapEx / Sales	Up to 13%	12.9%
FCF y-o-y reported	>10%	+14.1%
Cash Dividend	€0.3/share 2 tranches €0.15; 19th Dec-24, Jun-25	Improved coverage
Leverage	Reduced	2.58x

Accomplishments 2024, a stronger Telefónica

Enhanced CUSTOMER experience focus

Next Generation NETWORKS

Efficiency driven MANAGEMENT

• More customers, +2m y-o-y
• Outstanding and increasing NPS, +2 p.p y-o-y
• Improving lifetime value and reducing churn
• More fibre, +10m PPs y-o-y
• More 5G, +12 p.p. y-o-y in core markets
• Pioneers in scaling network autonomy
• Decommissioning, copper shutdown in Spain
• Hispam, sale of Argentina, Peru restructuring
• Optimising internal operations

Telefónica Group: resilient performance and FCF focus

	Q4 y-o-y reported	FY y-o-y Reported
Revenue	+5.4%	+1.6%
Service revenue	+5.9%	+2.5%
B2B revenue	+10.0%	+4.8%
B2C revenue	+6.5%	+2.5%
EBITDA	-0.1%	+1.2%
EBITDAaL - CapEx	-8.4%	+1.6%
CapEx/Sales	15.5%	12.9%
FCF	+0.9%	+14.1%

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Q4 24 Core Operating Business

Mr. Ángel Vilá COO

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Spain: increasing customer base, FY revenue and EBITDA growth

Highlights

• FY growth y-o-y in all accesses, 1st time since 2018
• Best convergent churn (FY 24 0.9%) in more than a decade
• Superior NPS and CLV in the market
• EBITDAaL y-o-y growth in H2 24
• 12.1% CapEx/Sales in FY 24 (-0.5 p.p. y-o-y)
• Stabilised EBITDAaL-CapEx in FY 24

Sustained growth Premium positioning paying-off Deregulation opportunities

Brazil: high growth with expanding margins

Revenue & EBITDA growth (y-o-y)

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FTTH Premises passed (m)

Margins

Highlights

• Increased quality of accesses
  • Postpaid ARPU +3% y-o-y, churn below 1%
  • FTTH connections +20% y-o-y; lowest-ever 1.5% churn
  • Vivo Total accesses: +85% y-o-y
• Higher margins despite commercial acceleration
  • 44.7% EBITDA (+0.3 p.p. y-o-y)
  • 18.4% EBITDAaL-CapEx (+0.5 p.p. y-o-y)
• Local currency growth momentum intact, well above inflation
  • Revenue: +7.7%. New record in fixed (+8.0% y-o-y)
  • EBITDA +7.9%, EBITDAaL-CapEx +9.7%
• Vivo included in the DJ Sustainability World Index

Germany: sustained operational momentum and strong EBITDA growth

Revenue & EBITDA growth (y-o-y) Margins

Fixed ARPU (y-o-y)

Highlights

• Continued O² brand appeal & enhanced B2P
• O² network rated "very good" (connect magazine)
• 5G pop coverage >97%
• O² contract churn stable at low levels; 1.0% in FY24
• Revenue reflecting MTR headwinds, tough handset comps and change of the 1&1 business model
• Improved operating leverage; q-o-q EBITDA growth
• Energy self-sufficient radio tower recognized with environmental award

Final details BNetzA of spectrum extension in Q1 25

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VMO2: focus on network evolution and long-term growth

Revenue & EBITDA growth (y-o-y) Margins

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Highlights

• 1.3m PPs in FY 24, record footprint expansion
• Combined fibre reach of 6.4m PPs
• Contract churn at low levels; -0.1 p.p. y-o-y
• 5G pop. coverage reaches 75%
• Continued fixed growth
  • Another Q of positive net FBB adds (12k)
  • Value growth (ARPU +2.0%)
• £540m annualised synergies achieved ( ~18 months ahead of target)
• Improved revenue performance, flat y-o-y
• EBITDA decline on tough comps, B2B fixed headwinds and investment in IT and digital efficiency programs

Tech: the B2B growth engine, enhances its scale and sustainability

• Revenue y-o-y growth acceleration in Q4, exceeded €2bn in FY 24
• Strong commercial performance in Q4, mostly in the Private sector
• Bookings growing faster than revenue, feeding the backlog for 2025
  • Increased average project's size and value as customers demand multiple projects for their digitisation
  • More recurrent and predictable revenue
• Capturing SMEs opportunity in Spain, adding consulting service (Kit Consulting ERF)
• Global Services Lines, boost operational capabilities in key markets
  • Cyber provider of >70% Ibex-35 companies, UK gain momentum
  • Cloud: Major Player Worldwide UCaaS Service Providers 2024 (by IDC)
  • AI & Data: 10 specialised centres (SP, UK, BRA, HIS, Central Europe)

Infra: a global connectivity platform

Progressing on FTTH deployment

Total FTTH premises passed (m) (via FiberCos)

̴30% of 23-26 of TEF's FTTH rollout executed Increasing differentitation and capabilities

Best-in class international connectivity infrastructure

Closing conditional upon receiving regulatory approvals

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Q4 24 Hispam / Financials / ESG

Mrs. Laura Abasolo CFCO & Head of Telefónica Hispam

Hispam: a step forward in strategy execution

Telefonica Peru filed the Ordinary Insolvency Procedure

• Right decision to comply with our fiduciary duty of protecting Telefónica shareholders' interests

Sale of Telefónica Argentina for €1.2bn

• Simultaneous signing and closing on February 24th , execution risk avoided
• Optimised proceeds

Continued execution of strategy

Hispam: towards a more rational industry

Revenue & EBITDA growth (y-o-y)

Accesses growth (y-o-y)

FTTH & Cable PPs (m)

Margins

Highlights

• Focus on executing our strategic plan
  • Avoiding infrastructure overlap
  • Exploring all options
• Improved commercial results in Q4 24
  • Contract net adds improving in all countries
  • 96% FTTH/FBB accesses (+5 p.p. y-o-y)
• Q4 y-o-y results affected by:
  • (+) ARS devaluation in Q4 23
  • (+) Adoption of IAS 21 on the exchange of Bolivar
  • (-) Q4 23 ONNet-related revenue
• FY 24 Revenue: +7.8%, EBITDA: +3.4%, EBITDAaL +2.4%

Invested capital -44% vs. Dec-19 Preserving T. Group optionality

Solid balance sheet, contained costs and sound liquidity

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2024 FCF; +14.1% y-o-y

Clear focus on FCF, improvement along the year

• FCF back end loaded as expected (Q4: +€615m or +68% q-o-q)
• Levers of FCF growth in 2024
  • Solid operations underlying performance and lower capital intensity
  • Optimisation of all other financial items and benefits from natural hedges

Responsible digitalisation is at the core of our business

Green networks

• On track to be net zero by 2040, SBTi aligned
• Reduced emissions by 52% (Scope 1, 2 & 3) vs. 2015
• 100% renewable energy in 5 markets, 89% overall

Accessible & trustworthy connectivity

• Rural MBB population coverage: 95% Spain, 99% Germany and 84% Brazil
• 0 serious data breaches
• Backed by a motivated (eNPS 75) & diverse team (34% women executives)

ESG embedded across the business

• 72k employees trained in anticorruption

• 20k sustainability-related audits of suppliers

• 37% of financing linked to sustainability indicators

During 2024, Telefónica was recognised by TIME Magazine, Newsweek, World Benchmarking Alliance, and several ESG data providers, including ISS ESG & Bloomberg, for its sector leadership in sustainability

Key takeaways

Mr. Marc Murtra Chairman & CEO

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2025 guidance

• All guidance on unchanged consolidation perimeter as of 31st December 2024
• All operating guidance in organic terms
• Includes £175m to £200m dividend from VMO2

Conduct strategic review, conclude in H2 25

Key takeaways

2

3

Delivered in 2024. Continued strength in Spain, Brazil and Germany

Deliberate capital allocation, reducing exposure to Hispam

Strategic review to reflect on new time in Europe, update in H2 25

4

FCF generation focus and financial discipline

Results presentation and Q&A Session

Telefónica's management will host a webcast on 27 February at 10:00 AM (CET), 9:00 AM (GMT), and 4:00 AM (EST)

Participants from Telefónica

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

• 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

Bloomberg ESG Score #2 in sector

2024 #1 in sector ISS ESG Corporate Rating #1 in sector

Sustainalytics ESG Industry Top Rated 2025

Social Benchmark 1 st company worldwide 2024

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

***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA.

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