Slides
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Results Q2 2026 July 2026
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2 Cautionary statement This presentation contains forward - looking statements. These forward - looking statements are usually accompanied by words such as ›believe‹, ›intend‹, ›anticipate‹, ›plan‹, ›expect‹ and similar expressions or by ›outlook‹. Actual events may differ materia lly from those anticipated in these forward - looking statements as a result of a number of factors. Forward - looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward - looking statement. Neither Telekom Austria AG nor the A1 Group nor any other person accepts any liability for any such f orward - looking statements. A1 Group will not update these forward - looking statements, whether due to changed factual circumstances, cha nges in assumptions or expectations. Alternative performance measures are used to describe the operational performance. Please therefore also refer to the financi al information presented in the Consolidated Financial Statements, as well as the reconciliation tables provided in the Earnings Re lease. This presentation was created with care and all data has been checked conscientiously. Nevertheless, the possibility of layout and pr inting errors cannot be excluded. The use of automated calculation systems may give rise to rounding differences. This presentation does not constitute a recommendation or invitation to purchase or sell securities of A1 Group. Telekom Aust ria AG is the mother company of the A1 Group. 'International' comprises the segments Bulgaria, Croatia, Belarus, Slovenia, Serbia and North Macedonia and since Q1 2025 also includes A1 Digital in this view.
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3 - 3.6% EUR 374 mn CAPEX + 0 . 7 % EUR 335 mn Free cash flow +4.2% EUR 1,098 mn EBITDA (excl. restructuring) +4.1% EUR 2,795 mn Total revenues Highlights KEY FIGURES H1 2026 Market highlights • Growth in all service revenue categories* in Q2 ‘26 • Beneficial core OPEX development in Austria in Q2 ‘26 • B2C non - core gross service revenue growth of 24% in H1 ’26 yoy • Starting with a sovereign AI stack for further growth Outlook 2026 • Total revenue growth: +2 - 3% yoy • CAPEX excl. spectrum ~ EUR 750 mn +4.3% EUR 562 mn Q2 2026 Q2 2026 +4.2% EUR 1,429 mn * excl. fixed voice Percentage changes: year - on - year growth
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4 Q2 2025 65 Austria 3,358 393 International Q2 2026 28,306 3,751 32,122 + 13.5% +3,816 k Customer development Thereof Postpaid Mobile subscribers A1 Digital CEE Q2 2025 104 Austria 3,358 465 International Q2 2026 24,701 3,823 28,628 + 15.9% +3,927 k A1 Digital CEE International incl. Bulgaria , Croatia , Belarus, Slovenia, Serbia, Macedonia + A1 Digital
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5 Q2 2025 - 51 46 Austria 141 105 International Q2 2026 3,993 - 4 246 4,235 + 6.1% +242 k Customer development Internet@Home Total RGUs BBI Cube Q2 2025 - 61 - 88 Austria 305 - 12 International Q2 2026 6,395 - 148 293 6,540 + 2.3% +145 k BB & TV Voice International incl. Bulgaria , Croatia , Belarus, Slovenia, Serbia, Macedonia + A1 Digital Internet@Home incl. fixed broadband internet (BBI) mobile Wifi router (postpaid + prepaid)
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6 Main Financials Q2 2026 Total Revenues EUR 1,429 mn Service Revenues EUR 1,185 mn EBITDA excl. restructuring EUR 562 mn * A1 Group Austria International 4.2% - 1.9% 9.1% * A1 Group Austria International 3.5% - 3.6% 9.5% A1 Group Austria International 4.3% 4.3% 2.0% 2.0% 6.3% 6.3% reported excl. restructuring * Austria excl. international b usiness; reported values including IB: total revenues - 1.1% in Q2 2026, service revenues - 2.5% in Q2 2026 Restructuring: EUR 18 mn both in Q2 2026 and Q2 2025; no one - off effects
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7 Service revenues Q2 2025 Mobile core Cubes BB + TV Fixed voice IC Sol. & Conn. VR/NR Other Rev. Q2 2026 1,145 1,185 + 3.5% + 40 m EUR 1,185 mn Q2 2026: Growth in all service revenue categories except Voice Cubes: Mobile WIFI routers and data boxes IC: Interconnection; Sol. & Conn: Solutions and connectivity; VR/NR: Visitor and national roaming
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8 EBITDA excl. restructuring Q2 2025 Mobile Fixed Sol. + ICT & Other Equipment margin Core OPEX Q2 2026 539 562 4.3% + 23 m EUR 562 mn Q2 2026: EBITDA growth driven by service revenues and cost control Mobile: Retail mobile service revenues + visitor and national roaming + IC margin mobile – roaming costs Fixed: Retail fixed service revenues + IC margin fixed Sol. + ICT & Other: Solutions & connectivity + Other + IC margin other No one - off effects recorded in Q2 2026 and Q2 2025
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9 9 Free Cash Flow Restructuring: charges, cost of labor obligations Lease paid: principal, interest & prepayments in EUR mn Q2 2026 Q2 2025 Δ H1 2026 H1 2025 Δ EBITDA 544 521 4.3% 1,044 999 4.4% Restructuring 18 18 - 0.1% 55 55 - 0.4% Lease paid - 105 - 101 4.4% - 214 - 205 4.5% Income taxes paid - 42 - 33 27.7% - 61 - 50 23.4% Net interest paid 15 4 n.m. 23 9 144.9% Change working capital & other changes - 121 - 41 192.2% - 126 - 51 147.9% CAPEX - 210 - 166 26.8% - 374 - 387 - 3.6% Social plans new funded 0 - 24 n.a. - 12 - 39 - 69.4% Free cash flow 100 179 - 44.3% 335 333 0.7% FCF/revenues 7.0% 13.1% – 6.1pp 12.0% 12.4% – 0.4pp in H1 2026 • Better operational result, net interest, lower social plan funding and CAPEX • Offset predominantly by less favorable development of working capital and other changes: − EUR 50 mn spectrum payment in June 2026 (2 nd tranche, 5G auction in Dec 2025)
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10 14 Focus Points
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11 Sovereign cloud Exoscale – built in Europe, operated in Europe • EU & AT data centers – data stays under European jurisdiction • Independence from hyperscalers and volatile license models • Aligned with EU Data Act, EUCS path and AI Act readiness • Strategic resilience for critical national infrastructure Sovereign AI A1 Sovereign AI Stack on Exoscale • Open - source data, ML, GenAI & agentic platform • Locally hosted LLMs on Exoscale ( e.g. Mistral, Llama) • Fine - tuned A1 domain LLMs • Hybrid by design – sovereign by default, hyperscaler when needed We build it. We use it. We sell it. A1 is Customer Zero; sold as “Sovereign - AI - as - a - Service” to enterprises, SMEs and the public sector across all of CEE. Largest geographic footprint in DACH & CEE Sovereign cloud & AI – the next growth driver
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12 Successfully scaling B2C non - core services – a strategic growth lever to stay relevant for customers ~5% of ARPH ~10% of ARPH 2025 Ambition 2030 ø Revenue per household Growth Pillars 2 partnerships1 EUR Core Non - core Phones, accessories, merchandise Security SkyShowtime Insurance YouTube Premium Netflix HBO Max Key non - core services activated non - core CAGR 30.8 ~70% ratio of non - core services activated (3.4 mn ) to total households* (4.9 mn ) ~12 % of Group revenue growth from non - core services, 2025 ~24 % non - core gross service revenue growth in H1 2026 vs. H1 2025 ø Revenue per household (B2C) represents 7 core A1 markets All revenues gross consumer postpaid, standalone non - bundled products * as of Dec 31, 2025; figure excluding Belarus
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13 14 Outlook
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14 ~ EUR 750 mn CAPEX Revenue growth +2 - 3 % p.a. excl. spectrum Continuing expansion of fiber and 5G networks, both in Austria and CEE markets Driven by CEE markets & service revenues; Upselling in mobile consumer segment, strong demand for connectivity and ICT solutions, fixed - line business in CEE Guidance 2026
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15 14 Appendix
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16 Mobile subscribers (in thousand) +13. 5 % Mobile subscribers +3.2% br oadband (BB) +15.0% advanced BB +7.4% TV RGUs (in thousand) Customer development Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 28,306 29,289 30,179 31,036 32,122 +13.5% Subscribers 87% 87% 88% 89% 89% Share postpaid 23% 44% 32% Q2 2025 23% 44% 33% Q3 2025 22% 45% 33% Q4 2025 22% 45% 34% Q1 2026 21% 45% 34% Q2 2026 6,395 6,412 6,460 6,498 6,540 +2.3% Fixed Voice Broadband TV@Home 11.7 26.6 11.8 26.3 ARPU op. in LCY ARPL op. in LCY +0.6% - 1.3% Q2 2025 Q2 2026 +0.6% ARPU operative - 1 .3% ARPL operative *operative = excl. M2M in LCY Group ARPU and ARPL op.*
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17 8 Revenues increase • Driven by growth in all markets except Austria. Total OPEX increase • Primarily reflecting higher service and equipment costs ; increases in CEE mitigated by savings in Austria. C ore OPEX stable • Stable total workforce costs and disciplined cost management largely offset higher product - related and electricity costs. EBIT increase • Solid operational result and stable D&A. Financial result improvement • Driven by lower interest expense in financial liabilities. Net result increase by 16% Q2 2026 P&L in EUR mn Q2 2026 Q2 2025 Δ H1 2026 H1 2025 Δ Revenues 1,429 1,370 4.2% 2,795 2,685 4.1% OPEX - 885 - 849 4.2% - 1,751 - 1,685 3.9% EBITDA 544 521 4.3% 1,044 999 4.4% Margin 38.1% 38.0% +0.0pp 37.3% 37.2% +0.1pp Restructuring 18 18 3.0% 54 53 1.0% EBITDA excl. restructuring 562 539 4.3% 1,098 1,053 4.2% Margin 39.3% 39.3% +0.0pp 39.3% 39.2% +0.1pp EBITDAaL 434 414 4.9% 825 785 5.1% Margin 30.4% 30.2% +0.2pp 29.5% 29.2% +0.3pp EBIT 239 217 10.1% 436 401 8.9% EBIT margin 16.7% 15.8% +0.9pp 15.6% 14.9% +0.7pp Financial result - 15 - 20 - 21.0% - 30 - 40 - 24.6% Income taxes - 48 - 46 4.0% - 87 - 84 3.4% Net result 176 151 16.0% 319 277 15.4% Net margin 12.3% 11.1% +1.2pp 11.4% 10.3% +1.1pp
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18 2026 2027 2028 2029 2030 2031 750 15 15 15 Fixed - interest bond, due Dec 2026 • Fitch confirmed A - in 6 /2026 • S&P confirmed A - in 5/2025 • Moody’s confirmed A3 in 10/2025 • Total committed lines: EUR 1,315 mn − Thereof RCF: EUR 1,000 mn − Thereof bilateral credit lines: EUR 315 mn • Undrawn committed credit lines: EUR 1,315 mn • Average term to maturity: 3.82 years Overview Lines of credit Credit ratings Net debt/EBITDA Debt maturity profile • Total financial debt: EUR 795 mn • Average cost of debt: 1.73% • Cash & cash equivalents: EUR 710 mn • Avg. term to maturity: 0.53 years Net debt/EBITDA Net debt (excl.leases)/EBITDAaL FCF 2025 596 Baa1/ BBB+ A3/ A - Conservative financial policy and investment - grade ratings as of June 30, 2026 2019 2020 2021 2022 2023 2024 2025 2026 Moody’s S&P Fitch Baa2/ BBB Financial debt
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Draft for internal discussion 19 End of Presentation