Telefonica S.A.

Investor Presentation • May 14, 2025

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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Q1 25 Summary

Mr. Emilio Gayo COO

***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.

Operational progress

CUSTOMER

focus

• Strong customer base, 354m accesses
• Improved P&S portfolio, Fusion Digital 5.0 for SMEs in Spain
• NPS hits new highs, 35 score
• Historic low churn = higher lifetime value

• Expanding fibre, +1.5m PPs q-o-q to 80m

Next Generation

NETWORKS

• 75% 5G coverage (core markets), +11 p.p. y-o-y
• More autonomous and efficient networks (virtualised, open, dissagregated)
• Network availability rate up in core markets (fixed +0.2 p.p., mobile +0.5 p.p. y-o-y)

Efficiency driven MANAGEMENT

• Legacy shutdown (Spain copper completed, 3G Germany, 2G Uruguay)
• CapEx intensity declining (CapEx/Sales-0.4 p.p. y-o-y)
• Executing our plan in Hispam, sale of Argentina, Peru and signing in Colombia

Q1: Resilient core units

Improved traction in Spain; revenue and EBITDAaL growth accelerates to +1.7% and +1.0%

Intact momentum in Brazil (EBITDA +8.0%, EBITDAaL-CapEx +14.5%). Margin expansion (EBITDAaL- CapEx +1.4 p.p.)

Strong EBITDAaL-CapEx in Germany (+4.8%). Revenue and EBITDA reflect B2P transformation and tough comps

Hispam; back to positive contract net adds, 1st time since Q4 23. Financials reflect high competition and reported terms impacted by FX and portfolio changes

Reported results hit by FX. Organic growth aligned with guidance (comps to ease along the year). Net debt reduced and FCF seasonality

y-o-y organic

	Q1 y-o-y reported	Q1 y-o-y organic
Revenue	-2.9%	+1.3%
Service revenue	-2.8%	+1.5%
B2C revenue	-2.9%	+1.8%
B2B revenue	+1.4%	+5.4%
EBITDA	-4.2%	+0.6%
EBITDAaL - CapEx	-4.9%	+0.4%
CapEx/Sales	10.2%	10.1%

Argentina and Peru accounted as discontinued Operations since 1 January 2025 and reflected in the P&L in the line of Net Income from discontinued operations

EBITDA is adjusted and CapEx ex-spectrum

On track to meet 2025 guidance

Constant perimeter of consolidation

***This document is classified as INTERNAL USE by TELEFÓNICA.

Q1 aligned with internal expectations

Q1 25 Operating Business

Mr. Emilio Gayo COO

***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.

Spain: Increasingly resilient growth

Highlights

• Growth in all accesses for 7th Q in a row accelerating
  • Q1 net adds increasing y-o-y
• Revenue +1.7%, service revenue +1.0%
• B2C growth on customer focus and improving portfolio
  • Smart segmentation, valued brands, flexible offer
  • Traction in our digital ecosystem: devices, alarms…
  • Benchmark convergent Customer Lifetime Value
  • Best ARPU and churn, price upgrade in Jan-25
• B2B intact momentum on solid IT and stable comms
• EBITDAaL-CapEx +2.0% y-o-y
• Best-in-class CapEx/Sales at 10.5% with second-to-none premium networks

***Este documento está clasificado como USO INTERNO por TELEFÓNICA.

***This document is classified as INTERNAL USE by TELEFÓNICA.

Q1 25

Q1 25

Brazil: Real growth and strong profitability

***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.

FTTH Premises passed (m)

Highlights

• Continue to grow well above inflation
• Translated into Euro results hit by FX
• Service Revenue: Mobile (+6.5%) & Fixed (+6.2%)
  • Contract: +8.7% & FTTH: 11.1%
  • B2B +14.5% thanks to broad service portfolio
• Maintained commercial momentum
  • Leaders in postpaid & FTTH
  • Vivo Total (fully convergent) accesses +77%
• Digital services penetration accelerates (11% o/total rev)
• Tariff increase in contract & fibre
• Margin expansions y-o-y despite commercial efforts
  • EBITDA (+0.7 p.p.)
  • EBITDAaL-CapEx (+1.4 p.p.)
  • EBITDA +8.0%, EBITDAaL-CapEx +14.5%

Germany: Operating leverage focus

Fixed ARPU (y-o-y)

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

Highlights

• Contract net adds +4.5% y-o-y, stable 1.1% churn
• O2 contract ARPU flattish (friends & family-offers)
• Revenue headwinds (B2P transformation, market weakness for handsets) and tough EBITDA comps
• Focus on efficiency gains & profitable growth
  • Stable EBITDA margin
  • EBITDAaL*-CapEx +4.8%, margin +0.8 p.p

VMO2: Key network programmes of fibre and 5G rollout progress

Fixed network build (k new PPs) Mobile contract churn (%)

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

***This document is classified as INTERNAL USE by TELEFÓNICA.

Highlights

• 5G pop. coverage 77%
• Fixed footprint reaches 18.4m UBB PPs
• Contract churn stable at low levels; 1.1%
• Revenue and EBITDA back to growth (ex. handset & nexfibre)
  • Price rise phasing to service revenue
  • Fixed consumer ARPU +1.6%
  • Cost efficiencies
• EBITDAaL-CapEx +15.2% on lower CapEx (-12.9%)
  • +2.3 p.p. in margin
• Progressing ESG strategy with circularity initiatives

Hispam: Progress in strategic execution

Sale of T. Argentina (€1.2bn), simultaneous signing and closing on February 24th , execution risk avoided

Binding agreement for T. Colombia (~€368m), closing subject to regulatory approvals and agreements with minorities

Sale of Telefonica Peru

• Simultaneous signing and closing on April 13th
• Avoiding future liabilities' payment (SUNAT and financial debt)
• Removing risk of future contingencies and potential additional financing needs
• Positive impacts from deconsolidation at FCF and leverage level

Continued execution of strategy

***Este documento está clasificado como USO INTERNO por TELEFÓNICA.

Hispam: Towards stabilisation while reducing exposure

Accesses growth (y-o-y)

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

FTTH (m)

Highlights

• Focus on executing our strategic plan
• Better commercial net adds in contract & FTTH in Q1 25
  • Positive contract net adds after 5 Qs posting losses
  • Chile, reduced portability thanks to new regulatory rules
  • FTTH/FBB accesses (98%, +6 p.p.)
• Service revenue -3.1%, Mexico +5.0%
• EBITDAaL-CapEx: -30.9% affected by higher leases in Col

Telefónica Tech / Telefónica Infra

Telefónica Tech Revenue (€ million) (y-o-y organic) +6.6% 476 508 Q1 24 Q1 25 €2.1Bn LTM Revenue ~+7% Bookings vs Q1 24 Funnel vs Q1 24 >+15%

Sustainable business

• Commercial activity led by Private Sector in Q1 25
• Strong commercial funnel for the rest of the year
• Strong market recognition, leader position by industry analysts

24 29 Mar-24 Mar-25 FTTH JV premises passed (m) (via FiberCos) Telefonica Infra 36% of TEF's total FTTH footprint

Data Centres:

• Closed sale of 20% in Nabiax
• Analysing opportunities to maintain exposure to DCs

Q1 25 Financials

Mrs. Laura Abasolo CFCO

***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.

Accelerate FCF delivery throughout the year

FCF to improve along the year

Solid balance sheet, sound liquidity and contained costs

Comfortable liquidity position

Contained interest payment cost

Net Financial Debt

***Este documento está clasificado como USO INTERNO por TELEFÓNICA.

***This document is classified as INTERNAL USE by TELEFÓNICA. 1. Including spectrum payments. 2. Including the deconsolidation of T. Colombian net debt 13

Pragmatic ESG management to create value

Renewables to hedge energy costs: PPAs for renewables cover 30% of electricity needs

Helping customers decarbonise: launched AI solutions for urban lighting and fleet management via Telefónica Tech

Connecting communities: 98% 4G population coverage in main markets

Protecting customers: 7.8m cyber-threats blocked (Spain)

Monitoring risk: supplier audits & worker surveys at high-risk sites

Balanced and diverse Board: 40% women, and 53% independent

Shareholder confidence: all resolutions approved at the AGM

Fiscal Transparency report published: €8.4bn paid in taxes globally in 2024

Positive impact: consistent socio-economic contribution aligned with the SDGs

Key takeaways

Mr. Emilio Gayo COO

***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.

Update on strategic review in H2 25

Results presentation and Q&A Session

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Telefónica's management will host a webcast on 14 May at 10:00 AM (CEST), 9:00 AM (BST), and 4:00 AM (EDT)

Participants from Telefónica

• Emilio Gayo l COO
• Laura Abasolo l CFCO
• Markus Haas l CEO Telefónica Deutschland
• Lutz Schüler l CEO Virgin Media O2
• Eduardo Navarro l Chief Corporate Affairs & Sustainability Officer
• Torsten Achtmann l 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

A List 2024

ISS ESG Corporate Rating #1 in sector

Sustainalytics ESG Industry Top Rated 2025 Social Benchmark

st company worldwide 2024

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For further information, please contact: Investor Relations 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 USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.

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