Telefonica S.A. — Investor Presentation 2026

May 14, 2026

Telefónica

RESULTS 2026

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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.

This document and any related conference call or webcast (including any related Q&A session) may contain forward-looking statements. These forward-looking statements may include financial and other forecasts and estimates, as well as statements regarding plans, objectives and expectations of the Telefónica Group. The forward-looking statements can be identified, in certain cases, through the use of words such as "will," "shall," "target," "expect," "aim," "hope," "anticipate," "should," "may," "might," "assume," "estimate," "plan," "risk," "intend," "believe" and similar language or other formulations of a similar meaning or, in each case, the negative formulations thereof. Other forward-looking statements can be identified in the context in which such statements are made or by the forward-looking nature of discussions of strategy, plans, objectives or intentions. These forward-looking statements include statements regarding our intent, belief or current expectations with respect to, among other things, the effect on our results of operations of competition in telecommunications markets; trends affecting our business, financial condition, results of operations or cash flows; ongoing or future acquisitions, investments or divestments; our capital expenditures plan; our estimated availability of funds; our ability to repay debt with estimated future cash flows; our shareholder remuneration policies; supervision and regulation of the telecommunications sectors where we have significant operations; our environmental, social and governance commitments and targets; our existing or future strategic partnerships or joint ventures; the potential for growth and competition in current and anticipated areas of our business; and the outcome of pending or future litigation or other legal proceedings and investigations.

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").

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 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 condensed consolidated financial statements and consolidated management report for 2025, submitted to the CNMV, in Note 2, page 14 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.

Neither this document nor any related conference call or webcast (including any related Q&A session) nor any of their contents constitute an offer to purchase, sell or exchange any security, a solicitation of any offer to purchase, sell or exchange any security, or a recommendation or advice regarding any security, or a solicitation for any vote or approval in any other jurisdiction.

This document and any related conference call or webcast (including any related Q&A session) may include data or references to data provided by third parties. Neither Telefónica, nor any of the members of its senior management, its directors or its employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any means, Telefónica may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one, Telefónica assumes no liability for any discrepancy.

Telefónica

TRANSFORM & GROW

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Telefónica

Summary

Mr. Emilio Gayo
COO

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A strong start to 2026; constant execution

Steady growth of revenue, adj. EBITDA and adj. OpCFaL (improved trends in Spain and Brazil). Appropriate CapEx/Revenue to deliver growth

Net debt reduction (Q1: -€1.5bn). FCF affected by usual seasonality

Solid commercial performance, Spain (best churn in history), Brazil (record total mobile ARPU), Germany (low level $\mathrm{O}_2$ contract churn $1.1\%$ ), VMO2 (fixed base improvement)

Reaping benefits from simplified operating model, initial savings of workforce restructuring (Spain, Global Units), leaner operations generating efficiencies...

Growth focused investments (FTTH, 5G, ...). Global leader in fibre

Earnings momentum continued helped by strategic focus despite challenging geopolitical context

Well on track for 2026 guidance

Progress against Transform & Grow priorities

Metric	2026 Guidance	Q1 26
Revenue1@ constant	1.5%-2.5%	+0.8%	On track
Adj. EBITDA1,2@ constant	1.5%-2.5%	+1.8%	✓
Adj. OpCFaL1,2@ constant	Over 2%	+2.4%	✓
CapEx ex spectrum/Revenue@ constant	12%	+10.7%	✓
FCF3	~€3.0bn	€333m	On track
Dividend4	€0.15/share	Jun-27 (€0.15) Jun 18th2026 (€0.15), 2nd tranche of 2025	✓
Leverage	Declining towards 2028 target	2.72x	On track

Telefónica

1) Constant: assumes constant FX (average FX Q1 25), constant perimeter and excludes the contribution to growth from Venezuela

2) Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts

3) FCF for Guidance includes reported FCF from continuing operations and excludes non-recurring spectrum payments, employee commitments and VMO2 dividends

4) Dividend payable in cash in June of the following year.

TRANSFORM

& GROW

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Consistent execution of Transform & Grow plan in Q1

Telefónica

TRANSFORM & GROW 2

1 DELIVER BEST-IN-CLASS CUSTOMER EXPERIENCE

• Accesses +5% y-o-y (FTTH +9%). Sound NPS (score 34). Hyper-personalisation initiatives
• Spain launched WiFi 7 (+10% customer satisfaction vs. WiFi 6)
• Network quality and coverage improvement. Germany O2 campaigns, UK Starlink agreement

2 EXPAND B2C OFFERING

• Steady growth (revenue +1.5% y-o-y). Growing convergence (e.g. Brazil + Germany)
• Ecosystem expansion: Spain, fraud blocking, new ChatGPT (Germany also). ValeSaude and VivoPay accelerated subscriptions
• Spain, leadership in premium content: FIFA World Cup rights & original content recognition

3 SCALE B2B

• B2B strength (revenue +5.7% y-o-y)
• Portfolio expansion: cybersecurity, IoT, and cloud (Spain-Altim, Titán Connect, Brazil-São Martinho)
• O2 business brand launched in UK

4 EVOLVE TECHNOLOGICAL CAPABILITIES

• More fibre (74.9m PP, +6% y-o-y) and 5G coverage (81%, +6 p.p. in core markets)
• Network investments: Germany (elimination of white spots contributes to mobile connectivity and digital inclusion). Spain (enabled native voice over 5G SA, 13 Edge nodes)
• EURO-3C (EC + consortium led by TEF + >70 European entities), the 1st pan-European sovereign infrastructure (Telco, Edge, Cloud and AI capabilities)

5 SIMPLIFY OPERATING MODEL

• Started copper legacy shut-down in Brazil, progress on 3G shutdown in UK and starting in Spain
• First redundancy programs savings in Spain + Global Units; ~60% of planned exits already done
• Network and operational excellence, e.g., energy and network asset management

6 DEVELOP TALENT

• Implementing an impact-based culture and maintaining >70 eNPS

FOCUS ON PORTFOLIO MANAGEMENT EXECUTION

INVESTING IN CORE MARKETS

4 strong core markets

PROGRESSING IN HISPAN EXIT

Disposed 6 assets over 12 months.
>€4bn firm value across transactions

Signed T. Mexico sale, 7th April (FV €450m). Closing subject to certain conditions and regulatory approvals

Almost all Hispam exit executed, since Feb-25 Argentina, Perú, Ecuador, Uruguay, Colombia and Chile

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Telefónica

Operating Business

Mr. Emilio Gayo
COO

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Spain: Sustained operational momentum and accelerated growth across financials

• Solid trading leveraged on excellence
• Lowest churn ever, improved portability
• Record mobile contract and FBB base

• Tariff upgrade (mid January)

• Accelerated revenue growth

• Higher base and leading ARPU
• Enlarged B2C ecosystem

• B2B digital services strong growth

• Increased profitability and adjusted OpCFaL

• First personnel savings

• Adj. EBITDAaL (+2.0% y-o-y)

• CapEx sustained

• +1.3% y-o-y, 10.5% CapEx/Revenue

• Progress in XGS-PON and 5G

• Sustainable own production

The most secure network in the market
Innovative services launched
(WiFi-7, spam detection, Titán Connect, Future SOC, Euro-3C)

Net adds (k)

Revenue

Adj. EBITDA & margin

Adj. OpCFaL & margin

20%	19%	20%	19%	20%

Telefónica

Constant: assumes constant FX (average FX Q1 25), assumes constant perimeter and excludes the contribution to growth from Venezuela. Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts. CapEx: assumes CapEx ex-spectrum. Postpaid excludes IoT.

TRANSFORM

& GROW

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Brazil: Strong commercial and financial performance

• Consistent commercial value growth
• Vivo Total (fully convergent) +33%
• Highest contract net adds in 5 Qs
• 5G customer base +41% y-o-y to 25m
• Record ever mobile ARPU
• Transformation to FTTH continued
• 31.5m PPs (+1.8m y-o-y)
• Broad portfolio on new digital businesses
• B2C: Electronics (+56.0%); H&W(+67.7%)
• B2B: Cloud (+29.0%) and IoT (+17.3%)
• Accelerated revenue and EBITDA y-o-y
• Both business growing above inflation
• MSR +6.6%; Handsets: +26.6%; Fixed +5.1%
• Solid cost structure
• CapEx/Revenue 13.2%
• ESG: Recognised in the S&P Global Sustainability Yearbook 2026

Impacts from migration to Authorisation (R$4.5bn in synergies; 10% already captured since April 2025)

Net adds (k)

KPIs (local currency)

Revenue

Adj. EBITDA & margin

Adj. OpCFaL & margin

+

Telefónica

Constant: assumes constant FX (average FX Q1 25), assumes constant perimeter and excludes the contribution to growth from Venezuela. Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts. CapEx: assumes CapEx ex-spectrum.

TRANSFORM

& GROW

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Germany: Focus on profitable growth while prioritising efficiencies

• Key strength: Network quality
• O₂ campaigns: Good network or money back, Better than you think network

• 5G roll-out, capacity upgrades for urban centres. >2 new sites per day

• Mature market with more disciplined promos

• Acceleration of FBB momentum
• O₂ shops confirmed ‘very good’ for service quality in connect test

• Partnership with ADAC expanded

• Financials show underlying resilience

• 1&1 customer migration weigh on revenue and adj. EBITDA
• Handset sales reflect seasonality in a weak German handset market
• Fixed revenue maintained growth path

• Continued efficiencies gains and cost control (high single digit underlying EBITDA-growth)

• ESG: Consolidating supply chain governance

• 1&1 effects to annualise along FY 26, while peaking in Q1

Net adds (k)
Net adds exclude 3rd party MNO-accesses

ARPU (y-o-y)
O₂ Postpaid
FBB

Revenue

Adj. EBITDA & margin

Adj. OpCFaL & margin

+

Telefónica

Constant: assumes constant FX (average FX Q1 25), assumes constant perimeter and excludes the contribution to growth from Venezuela. Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts. CapEx: assumes CapEx ex-spectrum.

TRANSFORM

& GROW

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VMO2: Progress against strategy with targeted network investments

• O2 Satellite launch: First UK network to switch on direct-to-device satellite connectivity
• Fixed footprint: 18.8m UBB PPs
• Further trading improvement
• Improved fixed trading for 3rd consecutive Q
• Mobile churn improved q-o-q; ARPU stable

• Leading MVNO market position

• Service Revenue -3.0% & EBITDA adjusted - 3.4% on track for FY 26 guidance

• Revenue -6.5% y-o-y
• Consumer: -3.8% affected by customer loss in LTM and fixed ARPU
• Business: -5.1% due to low margin rev.
• Wholesale: +5.1% thanks to MVNO
• ESG: Strengthened Employee Wellbeing

Most Reliable Broadband Provider at the Uswitch Telecoms Awards

Net adds (k)
Q1 26 Net adds excludes the impact of adjustments made to accesses which had no impact on revenue

ARPU (local currency)

Consumer Fixed Line Consumer Contract Mobile

Revenue

Adj. EBITDA & margin

Adj. OpCFaL & margin

+

Telefónica

Constant: assumes constant FX (average FX Q1 25), assumes constant perimeter and excludes the contribution to growth from Venezuela. Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts. CapEx: assumes CapEx ex-spectrum.

TRANSFORM

& GROW

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Telefónica

Financials / ESG

Mr. Juan Azcue
Chief Financial Officer

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Financial performance: Good Q1, growth in constant and current

	Q1 26
€ in millions	Current	Current y-o-y	Constant y-o-y
Revenue	8,127	0.4%	0.8%
Service revenue	7,405	0.7%	1.1%
B2C revenue	4,808	1.2%	1.5%
B2B revenue	1,932	5.3%	5.7%
Wholesale & Others	1,387	(7.9%)	(7.4%)
Adj. EBITDA	2,836	1.3%	1.8%
Adj. OpCFaL	1,375	1.6%	2.4%
CapEx ex-spectrum / Revenue	10.7%	(0.2 p.p.)	(0.2 p.p.)
FCF	333	(42.9%)
Net Financial Debt	25,342	(6.3%)
Adj. EPS (continuing operations)	0.07	(24.9%)

Growth in constant and current

• Second Q of growth in constant and current

B2B, growth driver of the group

• Continued strong growth from B2B

Margin expansion reflecting operating leverage

• Adj. OpCFaL margin up +0.3 p.p. y-o-y (constant)

Hispam sales

• Discontinued operations in Q1 (Chile and Mexico)

Telefónica

Constant: assumes constant FX (average FX Q1 25), constant perimeter and excludes the contribution to growth from Venezuela

Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts

CapEx: assumes CapEx ex-spectrum

TRANSFORM

& GROW

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FCF Q1 phasing aligned with expectations and history

Q1 performance

• Higher seasonality due to WC variation
• FCF generation aligned with historical patterns

2026 guidance reaffirmed

• Accelerating FCF delivery throughout the year
• Operational delivery drives ~€3.0bn target

Constant execution towards a de-risked FCF

Committed to FCF

• More predictable (after Hispam sales)
• Higher quality (operational driven)
• Cost tailwind (execution of efficiency plan)
• Growing 2026 (2025 exceeded)

Telefónica

TRANSFORM & GROW

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Leverage reduction, sound liquidity and lower interest costs

Highlights

• Leverage reduction in Q1 to 2.72x
• Deleveraging on track towards 2.5x target in 2028
• Committed to investment grade credit rating
• Proactive financing activity has reduced refinancing pressure
• Comfortable liquidity position
• Reduced cost related payments

Net Financial Debt

Proactive Financing management

Financing activity, 2026 YTD (€bn)

Solid liquidity position, Mar-26

Reduced debt-related cost

Total debt related interest payment cost excluding leases

Telefónica

(1) Total FCF (continuing and discontinued operations) including employee commitments, VMO2 dividends and spectrum payments.

TRANSFORM & GROW

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Continued progression in sustainability to boost competitiveness

Environmental

Enhanced efficiency and resilience
-92% energy consumption per unit of traffic since 2015

Digitalisation for carbon transition
Customers avoided >19Mt CO₂e in 2025

Social

Bridging the digital divide
Digital access provided to 1m people in UK (last 3 yrs)

Supporting & attracting talent
Pioneering Technology Scholarship Program (until 2028)

Governance

Balanced and diverse Board
47% women, 67% independent

Fiscal Transparency report published
€7.5bn paid in taxes globally in 2025

Continue to lead in ratings
Included in S&P Sustainability Yearbook and Corporate Knights Global 100

Telefónica

TRANSFORM & GROW
10

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Telefónica

Key takeaways

Mr. Emilio Gayo
COO

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Wrap up: Strong start, constant execution, on track for full year guidance

A strong start to 2026, firmly on track to meet our 2026 guidance and executing against our Transform & Grow plan

Robust commercial performance. On financials, accelerated growth trends in Spain and Brazil (revenue and adj. EBITDA), but Germany challenged (peaking effect of 1&1). VMO2 on track with guidance.

Further deleveraging and committed to FCF. Disciplined towards financial flexibility

Signed the sale of Telefónica Mexico. Successfully executing our Hispam exit; almost complete. 6 assets over the last 12M

Building a stronger Company; more efficient, more profitable, more disciplined, more prepared, faster growing

Plan to become best-in class European Telco by 2030 and worldwide in 2035

Telefónica

TRANSFORM & GROW

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Results presentation and Q&A Session

Calendar

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 | COO
• Juan Azcue | CFDO
• Borja Ochoa | CEO T. Spain
• Santiago Argelich | CEO T. Germany
• Lutz Schüler | CEO Virgin Media O2
• Torsten Achtmann | Global Director of Investor Relations

Webcast

• To access the webcast: click here
• The webcast replay will be available on Telefónica IR’s website after the event

Q&A Session

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

Telefónica

TRANSFORM & GROW

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Telefónica

| Bloomberg | BCDP
EUR | FTSE4Good | ISS ESG | Sustainalytics ESG | World
Benchmarking
Alliance |
| --- | --- | --- | --- | --- | --- |
| Bloomberg ESG Score

4 in sector | CDP

Climate A
List 2025 | 2025

1 in sector | ISS ESG Corporate

Rating

1 in sector | Sustainalytics ESG

Top Quartile Telco
Industry 2025 | Digital Inclusion Benchmark,
Social Benchmark and Ranking
Digital Rights
1^{st} company worldwide 2026 |

For further information, please contact:
Investor Relations

Torsten Achtmann (torsten.achtmann@telefonica.com)
Isabel Beltrán (i.beltran@telefonica.com)
Tel. +34 91 482 87 00
ir@telefonica.com
www.telefonica.com/investors

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TRANSFORM
& GROW